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H.B. 63 Enrolled

             1     

RECODIFICATION OF TITLE 63 STATE

             2     
AFFAIRS IN GENERAL

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Douglas C. Aagard

             6     
Senate Sponsor: Gregory S. Bell

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies Title 63, State Affairs in General, by recodifying and renumbering the
             11      content of the title to other parts of the code.
             12      Highlighted Provisions:
             13          This bill:
             14          .    renumbers and moves almost all chapters in Title 63 to different or new titles,
             15      chapters, and parts of the code;
             16          .    creates new titles into which many chapters of Title 63 are renumbered and moved;
             17          .    renumbers and moves several other chapters to related titles of the code;
             18          .    amends cross-references to coincide with renumbering of sections;
             19          .    repeals certain redundant provisions; and
             20          .    makes technical changes.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      AMENDS:
             27          3-1-6, as last amended by Laws of Utah 1994, Chapter 313
             28          3-1-36, as last amended by Laws of Utah 1994, Chapters 203, and 313
             29          4-1-3.5, as last amended by Laws of Utah 1997, Chapter 82

             30          4-2-2, as last amended by Laws of Utah 2007, Chapter 179
             31          4-2-8.5, as enacted by Laws of Utah 2006, Chapter 71
             32          4-3-2, as last amended by Laws of Utah 1995, Chapter 20
             33          4-3-14, as last amended by Laws of Utah 2007, Chapters 165, and 179
             34          4-4-2, as last amended by Laws of Utah 1995, Chapter 20
             35          4-5-9, as last amended by Laws of Utah 2004, Chapter 358
             36          4-5-9.5, as enacted by Laws of Utah 2007, Chapter 334
             37          4-9-2, as last amended by Laws of Utah 1995, Chapter 20
             38          4-9-15, as last amended by Laws of Utah 2005, Chapter 226
             39          4-10-3, as last amended by Laws of Utah 1995, Chapter 20
             40          4-11-3, as last amended by Laws of Utah 1995, Chapter 20
             41          4-12-3, as last amended by Laws of Utah 1995, Chapter 20
             42          4-14-3, as last amended by Laws of Utah 2007, Chapters 179, and 370
             43          4-14-6, as last amended by Laws of Utah 2007, Chapter 370
             44          4-14-13, as enacted by Laws of Utah 2007, Chapter 370
             45          4-15-3, as last amended by Laws of Utah 1995, Chapter 20
             46          4-16-3, as last amended by Laws of Utah 1995, Chapter 20
             47          4-18-5, as last amended by Laws of Utah 2007, Chapter 179
             48          4-18-6.5, as enacted by Laws of Utah 2001, Chapter 326
             49          4-20-1.5, as last amended by Laws of Utah 2007, Chapter 179
             50          4-22-4.5, as last amended by Laws of Utah 1996, Chapter 79
             51          4-23-5, as last amended by Laws of Utah 1995, Chapter 20
             52          4-24-3, as last amended by Laws of Utah 1995, Chapter 20
             53          4-25-3, as last amended by Laws of Utah 1995, Chapter 20
             54          4-29-1, as last amended by Laws of Utah 1995, Chapter 20
             55          4-30-3, as last amended by Laws of Utah 1995, Chapter 20
             56          4-31-16.5, as last amended by Laws of Utah 2004, Chapter 325
             57          4-31-21, as enacted by Laws of Utah 2000, Chapter 96

             58          4-32-7, as last amended by Laws of Utah 1997, Chapter 302
             59          4-33-4, as last amended by Laws of Utah 1995, Chapter 20
             60          4-37-109, as last amended by Laws of Utah 2007, Chapter 191
             61          4-37-201, as last amended by Laws of Utah 1995, Chapter 28
             62          4-37-301, as last amended by Laws of Utah 1995, Chapter 28
             63          4-37-602, as last amended by Laws of Utah 2007, Chapter 191
             64          4-38-4, as last amended by Laws of Utah 1997, Chapter 135
             65          4-38-6, as enacted by Laws of Utah 1992, Chapter 296
             66          4-38-14, as last amended by Laws of Utah 1993, Chapter 4
             67          4-39-106, as last amended by Laws of Utah 1999, Chapter 378
             68          4-39-203, as enacted by Laws of Utah 1997, Chapter 302
             69          4-39-502, as enacted by Laws of Utah 1997, Chapter 302
             70          7-1-105, as last amended by Laws of Utah 1994, Chapter 200
             71          7-1-301, as last amended by Laws of Utah 2004, Chapter 92
             72          7-1-323, as last amended by Laws of Utah 2005, Chapter 25
             73          7-1-324, as last amended by Laws of Utah 2004, Chapter 92
             74          7-1-325, as enacted by Laws of Utah 2006, Chapter 165
             75          7-1-704, as last amended by Laws of Utah 1994, Chapter 200
             76          7-1-810, as last amended by Laws of Utah 2007, Chapter 277
             77          7-2-9, as last amended by Laws of Utah 2004, Chapter 267
             78          7-2-21, as enacted by Laws of Utah 1986, Fourth Special Session, Chapter 1
             79          7-9-59, as enacted by Laws of Utah 2003, Chapter 177
             80          7-23-103, as last amended by Laws of Utah 2007, Chapter 87
             81          7-23-106, as last amended by Laws of Utah 2007, Chapter 87
             82          7-23-108, as last amended by Laws of Utah 2007, Chapter 87
             83          7-24-201, as last amended by Laws of Utah 2007, Chapter 87
             84          7-24-203, as enacted by Laws of Utah 2003, Chapter 236
             85          7-24-301, as last amended by Laws of Utah 2007, Chapter 87

             86          7-24-303, as last amended by Laws of Utah 2007, Chapter 87
             87          9-1-203, as renumbered and amended by Laws of Utah 1992, Chapter 241
             88          9-1-809, as last amended by Laws of Utah 2004, Chapter 352
             89          9-3-308, as last amended by Laws of Utah 1997, Chapter 10
             90          9-3-410, as last amended by Laws of Utah 2003, Chapter 8
             91          9-4-202, as last amended by Laws of Utah 2005, Chapter 170
             92          9-4-306, as last amended by Laws of Utah 2002, Chapter 286
             93          9-4-307, as last amended by Laws of Utah 2007, Chapter 303
             94          9-4-509, as renumbered and amended by Laws of Utah 1992, Chapter 241
             95          9-4-704, as last amended by Laws of Utah 2006, Chapter 359
             96          9-4-906, as last amended by Laws of Utah 2006, Chapter 14
             97          9-4-917, as last amended by Laws of Utah 2005, Chapter 102
             98          9-4-1103, as last amended by Laws of Utah 2000, Chapter 231
             99          9-4-1301, as last amended by Laws of Utah 2001, Chapter 273
             100          9-4-1404, as last amended by Laws of Utah 2001, Chapter 162
             101          9-4-1406, as enacted by Laws of Utah 2000, Chapter 286
             102          9-6-205, as last amended by Laws of Utah 2005, Chapter 48
             103          9-6-504, as renumbered and amended by Laws of Utah 1992, Chapter 241
             104          9-6-605, as renumbered and amended by Laws of Utah 2006, Chapter 24
             105          9-7-213, as last amended by Laws of Utah 2000, Chapter 136
             106          9-7-302, as renumbered and amended by Laws of Utah 1992, Chapter 241
             107          9-8-203, as last amended by Laws of Utah 1997, Chapters 353, and 371
             108          9-8-305, as last amended by Laws of Utah 2006, Chapter 292
             109          9-8-309, as enacted by Laws of Utah 2007, Chapter 231
             110          9-8-405, as last amended by Laws of Utah 2004, Chapter 352
             111          9-8-704, as last amended by Laws of Utah 1993, Chapter 4
             112          9-9-104, as last amended by Laws of Utah 1999, Chapter 50
             113          9-10-105, as last amended by Laws of Utah 2006, Chapter 14

             114          9-11-102, as last amended by Laws of Utah 2004, Chapter 18
             115          9-11-105, as last amended by Laws of Utah 1998, Chapter 48
             116          9-11-106, as last amended by Laws of Utah 2006, Chapter 14
             117          9-11-107, as last amended by Laws of Utah 2007, Chapter 104
             118          9-12-103, as enacted by Laws of Utah 1998, Chapter 336
             119          9-12-105, as renumbered and amended by Laws of Utah 1998, Chapter 336
             120          10-1-306, as enacted by Laws of Utah 1996, Chapter 280
             121          10-1-308, as enacted by Laws of Utah 1996, Chapter 280
             122          10-1-405, as last amended by Laws of Utah 2007, Chapters 9, and 250
             123          10-3-208, as last amended by Laws of Utah 2007, Chapter 256
             124          10-3-1303, as last amended by Laws of Utah 2006, Chapter 359
             125          10-3-1304, as last amended by Laws of Utah 2005, Chapter 25
             126          10-3-1305, as last amended by Laws of Utah 2005, Chapter 25
             127          10-7-86, as last amended by Laws of Utah 1997, Chapter 123
             128          10-7-87, as last amended by Laws of Utah 2005, Chapter 25
             129          10-8-2, as last amended by Laws of Utah 2007, Chapters 291, and 306
             130          10-8-58.5, as last amended by Laws of Utah 2005, Chapter 102
             131          10-9a-203, as last amended by Laws of Utah 2005, Chapters 169, 245 and renumbered
             132      and amended by Laws of Utah 2005, Chapter 254
             133          10-9a-402, as renumbered and amended by Laws of Utah 2005, Chapter 254
             134          10-18-302, as last amended by Laws of Utah 2005, Chapter 105
             135          11-13-222, as last amended by Laws of Utah 2005, Chapter 102
             136          11-13-302, as last amended by Laws of Utah 2007, Chapter 108
             137          11-13-303, as last amended by Laws of Utah 2006, Chapter 221
             138          11-17-20, as enacted by Laws of Utah 2007, Chapter 167
             139          11-36-201, as last amended by Laws of Utah 2007, Chapter 329
             140          11-36-402, as last amended by Laws of Utah 2004, Chapter 90
             141          11-37-101, as last amended by Laws of Utah 2005, Chapter 25

             142          11-38-102, as last amended by Laws of Utah 2006, Chapter 278
             143          11-38-303, as enacted by Laws of Utah 1999, Chapter 24
             144          11-39-101, as last amended by Laws of Utah 2007, Chapter 329
             145          11-39-107, as last amended by Laws of Utah 2007, Chapter 329
             146          11-42-205, as enacted by Laws of Utah 2007, Chapter 329
             147          12-1-10, as enacted by Laws of Utah 1999, Chapter 235
             148          13-1-2, as last amended by Laws of Utah 2005, Chapter 98
             149          13-1-8.5, as last amended by Laws of Utah 1989, Chapter 225
             150          13-1a-5, as enacted by Laws of Utah 1990, Chapter 9
             151          13-1a-6, as last amended by Laws of Utah 1997, Chapter 10
             152          13-1a-7, as enacted by Laws of Utah 1990, Chapter 9
             153          13-1a-9, as renumbered and amended by Laws of Utah 2001, Chapter 46
             154          13-2-5, as last amended by Laws of Utah 1994, Chapter 177
             155          13-2-6, as last amended by Laws of Utah 1997, Chapter 92
             156          13-2-8, as last amended by Laws of Utah 2005, Chapter 18
             157          13-2-9, as enacted by Laws of Utah 2005, Chapter 281
             158          13-14-104, as last amended by Laws of Utah 2005, Chapter 249
             159          13-14-105, as last amended by Laws of Utah 2005, Chapter 249
             160          13-14-106, as last amended by Laws of Utah 2005, Chapter 249
             161          13-14-107, as last amended by Laws of Utah 2005, Chapter 249
             162          13-15-4, as last amended by Laws of Utah 1995, Chapter 85
             163          13-15-4.5, as enacted by Laws of Utah 1995, Chapter 85
             164          13-21-3, as last amended by Laws of Utah 2001, Chapter 196
             165          13-22-3, as last amended by Laws of Utah 1994, Chapter 185
             166          13-22-6, as last amended by Laws of Utah 2004, Chapter 55
             167          13-22-8, as last amended by Laws of Utah 2004, Chapter 55
             168          13-22-9, as last amended by Laws of Utah 2001, Chapter 210
             169          13-22-12, as last amended by Laws of Utah 2001, Chapter 210

             170          13-23-5, as last amended by Laws of Utah 2005, Chapter 18
             171          13-25a-109, as last amended by Laws of Utah 2004, Chapter 263
             172          13-26-3, as last amended by Laws of Utah 2005, Chapter 18
             173          13-32a-106.5, as enacted by Laws of Utah 2005, Chapter 256
             174          13-32a-111, as last amended by Laws of Utah 2007, Chapter 352
             175          13-34-104, as last amended by Laws of Utah 2005, Chapter 242
             176          13-34-107, as last amended by Laws of Utah 2005, Chapter 242
             177          13-34-113, as last amended by Laws of Utah 2005, Chapter 242
             178          13-35-104, as last amended by Laws of Utah 2005, Chapter 268
             179          13-35-105, as last amended by Laws of Utah 2005, Chapter 268
             180          13-35-106, as last amended by Laws of Utah 2005, Chapter 268
             181          13-35-107, as last amended by Laws of Utah 2005, Chapter 268
             182          13-39-201, as last amended by Laws of Utah 2006, Chapter 336
             183          13-39-203, as last amended by Laws of Utah 2006, Chapter 336
             184          13-41-102, as last amended by Laws of Utah 2006, Chapter 153
             185          13-42-105, as enacted by Laws of Utah 2006, Chapter 154
             186          13-42-109, as enacted by Laws of Utah 2006, Chapter 154
             187          13-42-110, as enacted by Laws of Utah 2006, Chapter 154
             188          13-42-111, as enacted by Laws of Utah 2006, Chapter 154
             189          13-42-112, as enacted by Laws of Utah 2006, Chapter 154
             190          13-42-132, as enacted by Laws of Utah 2006, Chapter 154
             191          13-42-134, as enacted by Laws of Utah 2006, Chapter 154
             192          13-43-203, as enacted by Laws of Utah 2006, Chapter 258
             193          13-43-204, as enacted by Laws of Utah 2006, Chapter 258
             194          13-43-206, as enacted by Laws of Utah 2006, Chapter 258
             195          14-1-18, as last amended by Laws of Utah 2007, Chapter 329
             196          15-9-103, as enacted by Laws of Utah 2001, Chapter 237
             197          15-9-105, as enacted by Laws of Utah 2001, Chapter 237

             198          15-9-106, as enacted by Laws of Utah 2001, Chapter 237
             199          15-9-107, as enacted by Laws of Utah 2001, Chapter 237
             200          15-9-109, as enacted by Laws of Utah 2001, Chapter 237
             201          16-6a-107, as last amended by Laws of Utah 2002, Chapter 197
             202          16-6a-111, as enacted by Laws of Utah 2000, Chapter 300
             203          16-6a-1413, as enacted by Laws of Utah 2000, Chapter 300
             204          16-6a-1502, as last amended by Laws of Utah 2002, Chapter 197
             205          16-6a-1517, as enacted by Laws of Utah 2000, Chapter 300
             206          16-7-11, as last amended by Laws of Utah 1994, Chapter 313
             207          16-10a-122, as last amended by Laws of Utah 1994, Chapter 313
             208          16-10a-1423, as last amended by Laws of Utah 2000, Chapter 131
             209          16-12-3, as last amended by Laws of Utah 1994, Chapter 313
             210          16-13-12, as last amended by Laws of Utah 1994, Chapter 313
             211          16-15-105, as enacted by Laws of Utah 1995, Chapter 310
             212          16-15-107, as enacted by Laws of Utah 1995, Chapter 310
             213          16-15-108, as enacted by Laws of Utah 1995, Chapter 310
             214          17-15-24, as last amended by Laws of Utah 2005, Chapter 25
             215          17-16-21, as last amended by Laws of Utah 2001, Chapter 9 and renumbered and
             216      amended by Laws of Utah 2001, Chapter 46
             217          17-16a-4, as last amended by Laws of Utah 2005, Chapters 25, and 45
             218          17-21-17, as last amended by Laws of Utah 2006, Chapter 38
             219          17-21-19, as last amended by Laws of Utah 2002, Chapter 191
             220          17-27a-203, as last amended by Laws of Utah 2005, Chapters 169, 245 and renumbered
             221      and amended by Laws of Utah 2005, Chapter 254
             222          17-27a-402, as renumbered and amended by Laws of Utah 2005, Chapter 254
             223          17-43-202, as renumbered and amended by Laws of Utah 2003, Chapter 22
             224          17-43-302, as renumbered and amended by Laws of Utah 2003, Chapter 22
             225          17-50-302, as last amended by Laws of Utah 2005, Chapter 254

             226          17-50-401, as last amended by Laws of Utah 2005, Chapter 228
             227          17-53-225, as last amended by Laws of Utah 2004, Chapter 206
             228          17-53-311, as last amended by Laws of Utah 2005, Chapter 102
             229          17-53-313, as renumbered and amended by Laws of Utah 2000, Chapter 133
             230          17B-1-106, as renumbered and amended by Laws of Utah 2007, Chapter 329
             231          17B-1-108, as renumbered and amended by Laws of Utah 2007, Chapter 329
             232          17B-2a-818, as enacted by Laws of Utah 2007, Chapter 329
             233          17C-2-602, as enacted by Laws of Utah 2007, Chapter 379
             234          19-1-201, as last amended by Laws of Utah 1995, Chapters 28, and 324
             235          19-1-301, as enacted by Laws of Utah 1991, Chapter 112
             236          19-1-305, as last amended by Laws of Utah 2007, Chapter 151
             237          19-1-306, as enacted by Laws of Utah 1992, Chapter 280
             238          19-1-403, as last amended by Laws of Utah 2006, Chapters 136, and 223
             239          19-1-404, as last amended by Laws of Utah 2006, Chapters 136, and 223
             240          19-1-405, as enacted by Laws of Utah 2006, Chapter 136
             241          19-2-104, as last amended by Laws of Utah 2006, Chapter 223
             242          19-2-105.3, as last amended by Laws of Utah 2005, Chapter 2
             243          19-2-109.1, as last amended by Laws of Utah 1995, Chapter 28
             244          19-2-109.3, as enacted by Laws of Utah 1992, Chapter 105
             245          19-2-109.5, as enacted by Laws of Utah 1996, Chapter 75
             246          19-2-112, as renumbered and amended by Laws of Utah 1991, Chapter 112
             247          19-2-115, as last amended by Laws of Utah 2003, Chapter 138
             248          19-3-104, as last amended by Laws of Utah 2007, Chapter 26
             249          19-3-106.4, as enacted by Laws of Utah 2001, Chapter 314
             250          19-3-109, as renumbered and amended by Laws of Utah 1991, Chapter 112
             251          19-3-111, as last amended by Laws of Utah 1991, Chapter 87 and renumbered and
             252      amended by Laws of Utah 1991, Chapter 112
             253          19-3-303, as last amended by Laws of Utah 2001, Chapter 107

             254          19-3-308, as last amended by Laws of Utah 2001, Chapter 107
             255          19-3-315, as last amended by Laws of Utah 1999, Chapter 190
             256          19-4-104, as last amended by Laws of Utah 2002, Chapter 295
             257          19-4-109, as last amended by Laws of Utah 1998, Chapter 174
             258          19-5-104, as last amended by Laws of Utah 2006, Chapter 179
             259          19-5-113, as last amended by Laws of Utah 1995, Chapter 114
             260          19-5-120, as enacted by Laws of Utah 1995, Chapter 114
             261          19-5-121, as enacted by Laws of Utah 2001, Chapter 274
             262          19-5-122, as enacted by Laws of Utah 2001, Chapter 274
             263          19-6-102.6, as last amended by Laws of Utah 1996, Chapter 134
             264          19-6-105, as last amended by Laws of Utah 1992, Chapter 282
             265          19-6-108.3, as enacted by Laws of Utah 2007, Chapter 72
             266          19-6-303, as last amended by Laws of Utah 1992, Chapter 280
             267          19-6-321, as last amended by Laws of Utah 2005, Chapter 102
             268          19-6-326, as enacted by Laws of Utah 2005, Chapter 200
             269          19-6-403, as last amended by Laws of Utah 1997, Chapter 172
             270          19-6-405.3, as enacted by Laws of Utah 1994, Chapter 297
             271          19-6-408, as last amended by Laws of Utah 1997, Chapter 172
             272          19-6-410.5, as last amended by Laws of Utah 2006, Chapter 107
             273          19-6-427, as last amended by Laws of Utah 2005, Chapter 102
             274          19-6-704, as enacted by Laws of Utah 1993, Chapter 283
             275          19-6-721, as last amended by Laws of Utah 1994, Chapter 40
             276          19-6-803, as last amended by Laws of Utah 2002, Chapters 249, and 256
             277          19-6-806, as renumbered and amended by Laws of Utah 2000, Chapter 51
             278          19-6-818, as renumbered and amended by Laws of Utah 2000, Chapter 51
             279          19-6-819, as last amended by Laws of Utah 2001, Chapter 165
             280          19-6-821, as last amended by Laws of Utah 2002, Chapter 256
             281          19-6-906, as enacted by Laws of Utah 2004, Chapter 249

             282          19-6-1003, as enacted by Laws of Utah 2006, Chapter 187
             283          19-7-103, as enacted by Laws of Utah 1995, Chapter 304
             284          19-7-104, as last amended by Laws of Utah 1997, Chapter 387
             285          19-8-112, as enacted by Laws of Utah 1997, Chapter 247
             286          19-8-117, as enacted by Laws of Utah 1997, Chapter 247
             287          19-8-120, as enacted by Laws of Utah 2005, Chapter 200
             288          19-9-105, as renumbered and amended by Laws of Utah 2003, Chapter 184
             289          19-10-108, as enacted by Laws of Utah 2003, Chapter 44
             290          20A-1-204, as last amended by Laws of Utah 2004, Chapter 371
             291          20A-2-104, as last amended by Laws of Utah 2007, Chapter 75
             292          20A-3-304.1, as last amended by Laws of Utah 2006, Chapter 264
             293          20A-3-408.5, as enacted by Laws of Utah 2006, Chapter 273
             294          20A-9-206, as enacted by Laws of Utah 2006, Chapter 226
             295          20A-12-104, as last amended by Laws of Utah 2006, Chapter 14
             296          23-14-2.1, as enacted by Laws of Utah 1987, Chapter 161
             297          23-14-18, as last amended by Laws of Utah 2001, Chapter 22
             298          23-14-21, as last amended by Laws of Utah 2003, Chapters 16, and 128
             299          23-16-3.2, as enacted by Laws of Utah 2003, Chapter 228
             300          23-16-4, as last amended by Laws of Utah 2003, Chapter 228
             301          23-19-9, as last amended by Laws of Utah 2007, Chapter 136
             302          23-19-38.2, as last amended by Laws of Utah 2007, Chapter 187
             303          23-21-2.3, as last amended by Laws of Utah 2003, Chapter 16
             304          23-24-1, as last amended by Laws of Utah 2006, Chapter 140
             305          24-1-19, as enacted by Laws of Utah 2004, Chapter 296
             306          26-1-4.1, as enacted by Laws of Utah 1987, Chapter 161
             307          26-1-5, as last amended by Laws of Utah 2001, Chapter 138
             308          26-1-6, as last amended by Laws of Utah 2001, Chapter 49
             309          26-1-7.1, as enacted by Laws of Utah 1987, Chapter 161

             310          26-1-17.5, as last amended by Laws of Utah 1994, Chapter 312
             311          26-1-21, as last amended by Laws of Utah 1990, Chapter 93
             312          26-2-22, as last amended by Laws of Utah 2006, Chapters 55, and 56
             313          26-6b-1, as last amended by Laws of Utah 2006, Chapter 185
             314          26-8a-104, as enacted by Laws of Utah 1999, Chapter 141
             315          26-8a-105, as enacted by Laws of Utah 1999, Chapter 141
             316          26-8a-207, as last amended by Laws of Utah 2002, Fifth Special Session, Chapter 17
             317          26-8a-310, as last amended by Laws of Utah 2007, Chapter 43
             318          26-8a-404, as last amended by Laws of Utah 2003, Chapter 213
             319          26-8a-405.3, as enacted by Laws of Utah 2005, Chapter 205
             320          26-8a-407, as enacted by Laws of Utah 1999, Chapter 141
             321          26-8a-414, as last amended by Laws of Utah 2004, Chapter 350
             322          26-8a-503, as enacted by Laws of Utah 1999, Chapter 141
             323          26-8a-504, as enacted by Laws of Utah 1999, Chapter 141
             324          26-15a-102, as last amended by Laws of Utah 2005, Chapter 192
             325          26-15a-104, as last amended by Laws of Utah 2005, Chapter 192
             326          26-15a-105, as last amended by Laws of Utah 2005, Chapter 192
             327          26-18-3, as last amended by Laws of Utah 2006, Chapter 116
             328          26-18-103, as enacted by Laws of Utah 1992, Chapter 273
             329          26-18-104, as enacted by Laws of Utah 1992, Chapter 273
             330          26-18-304, as enacted by Laws of Utah 1993, Chapter 255
             331          26-18-504, as last amended by Laws of Utah 2006, Chapter 170
             332          26-18a-4, as last amended by Laws of Utah 1997, Chapter 1
             333          26-21-5, as last amended by Laws of Utah 1997, Chapter 209
             334          26-21-9.5, as last amended by Laws of Utah 2007, Chapter 43
             335          26-21-23, as enacted by Laws of Utah 2007, Chapter 24
             336          26-21a-203, as last amended by Laws of Utah 2001, Chapter 286
             337          26-21a-205, as last amended by Laws of Utah 1995, Chapter 28

             338          26-23-2, as last amended by Laws of Utah 1988, Chapter 72
             339          26-23b-110, as last amended by Laws of Utah 2007, Chapter 66
             340          26-25-2, as last amended by Laws of Utah 2003, Chapter 242
             341          26-33a-104, as last amended by Laws of Utah 2007, Chapter 29
             342          26-35a-106, as enacted by Laws of Utah 2004, Chapter 284
             343          26-38-9, as enacted by Laws of Utah 1994, Chapter 281
             344          26-39-108, as enacted by Laws of Utah 1997, Chapter 196
             345          26-39-109, as last amended by Laws of Utah 2006, Chapter 37
             346          26-40-103, as last amended by Laws of Utah 2003, Chapter 16
             347          26-40-110, as last amended by Laws of Utah 2001, Chapter 53
             348          26-41-104, as last amended by Laws of Utah 2007, Chapter 37
             349          26-42-104, as enacted by Laws of Utah 1998, Chapter 319
             350          26-43-103, as enacted by Laws of Utah 1998, Chapter 73
             351          26-46-102, as enacted by Laws of Utah 2002, Chapter 307
             352          26-47-103, as enacted by Laws of Utah 2005, Chapter 273
             353          26-48-102, as enacted by Laws of Utah 2006, Chapter 280
             354          26A-1-108.7, as last amended by Laws of Utah 2005, Chapter 25
             355          30-2-11, as last amended by Laws of Utah 2005, Chapter 102
             356          30-3-11.3, as last amended by Laws of Utah 2006, Chapter 173
             357          30-3-11.4, as enacted by Laws of Utah 2007, Chapter 301
             358          30-3-38, as last amended by Laws of Utah 2004, Chapter 352
             359          31A-1-103, as last amended by Laws of Utah 2005, Chapter 102
             360          31A-1-301, as last amended by Laws of Utah 2007, Chapter 307
             361          31A-2-201, as last amended by Laws of Utah 2005, Chapter 123
             362          31A-2-201.1, as enacted by Laws of Utah 2000, Chapter 114
             363          31A-2-203, as last amended by Laws of Utah 2007, Chapter 309
             364          31A-2-203.5, as enacted by Laws of Utah 1987, Chapter 161
             365          31A-2-204, as last amended by Laws of Utah 2007, Chapter 309

             366          31A-2-207, as last amended by Laws of Utah 2007, Chapter 309
             367          31A-2-209, as last amended by Laws of Utah 1991, Chapter 259
             368          31A-2-217, as last amended by Laws of Utah 2002, Chapter 65
             369          31A-2-302, as last amended by Laws of Utah 1991, Chapter 5
             370          31A-2-306.5, as enacted by Laws of Utah 2003, Chapter 252
             371          31A-2-404, as last amended by Laws of Utah 2007, Chapter 325
             372          31A-3-101, as last amended by Laws of Utah 2005, Chapter 124
             373          31A-3-103, as last amended by Laws of Utah 2006, Chapter 117
             374          31A-3-304, as last amended by Laws of Utah 2006, Chapter 320
             375          31A-4-103, as last amended by Laws of Utah 2003, Chapter 252
             376          31A-5-204, as last amended by Laws of Utah 1996, Second Special Session, Chapter 9
             377          31A-6a-110, as last amended by Laws of Utah 2001, Chapter 116
             378          31A-8a-203, as enacted by Laws of Utah 2005, Chapter 58
             379          31A-8a-210, as enacted by Laws of Utah 2005, Chapter 58
             380          31A-12-107, as last amended by Laws of Utah 2004, Chapter 267
             381          31A-14-217, as last amended by Laws of Utah 2007, Chapter 309
             382          31A-17-503, as enacted by Laws of Utah 1993, Chapter 305
             383          31A-19a-211 (Superseded 07/01/08), as renumbered and amended by Laws of Utah
             384      1999, Chapter 130
             385          31A-19a-211 (Effective 07/01/08), as last amended by Laws of Utah 2007, Chapter
             386      338
             387          31A-19a-304, as renumbered and amended by Laws of Utah 1999, Chapter 130
             388          31A-21-109, as last amended by Laws of Utah 2004, Chapter 92
             389          31A-22-315, as last amended by Laws of Utah 2007, Chapter 262
             390          31A-22-320, as enacted by Laws of Utah 2002, Chapter 221
             391          31A-22-403, as last amended by Laws of Utah 2003, Chapter 252
             392          31A-22-409, as last amended by Laws of Utah 2005, Chapter 125
             393          31A-22-425, as last amended by Laws of Utah 2006, Chapter 175

             394          31A-22-614.5, as enacted by Laws of Utah 1993, Chapter 255
             395          31A-22-625, as last amended by Laws of Utah 2002, Chapter 308
             396          31A-22-1308, as enacted by Laws of Utah 2004, Chapter 266
             397          31A-23a-104, as last amended by Laws of Utah 2007, Chapter 307
             398          31A-23a-111, as last amended by Laws of Utah 2006, Chapter 312
             399          31A-23a-112, as last amended by Laws of Utah 2006, Chapter 312
             400          31A-23a-115, as last amended by Laws of Utah 2005, Chapter 219
             401          31A-23a-202, as last amended by Laws of Utah 2006, Chapter 125
             402          31A-23a-302, as last amended by Laws of Utah 2004, Chapter 173
             403          31A-23a-402, as last amended by Laws of Utah 2007, Chapters 307, and 325
             404          31A-23a-417, as renumbered and amended by Laws of Utah 2003, Chapter 298
             405          31A-23a-809, as renumbered and amended by Laws of Utah 2003, Chapter 298
             406          31A-25-202, as last amended by Laws of Utah 2007, Chapter 307
             407          31A-25-208, as last amended by Laws of Utah 2006, Chapter 312
             408          31A-25-209, as last amended by Laws of Utah 2006, Chapter 312
             409          31A-26-202, as last amended by Laws of Utah 2007, Chapter 307
             410          31A-26-206, as last amended by Laws of Utah 2006, Chapter 125
             411          31A-26-213, as last amended by Laws of Utah 2006, Chapter 312
             412          31A-26-214, as last amended by Laws of Utah 2006, Chapter 312
             413          31A-27a-102, as enacted by Laws of Utah 2007, Chapter 309
             414          31A-27a-116, as enacted by Laws of Utah 2007, Chapter 309
             415          31A-27a-117, as enacted by Laws of Utah 2007, Chapter 309
             416          31A-27a-514, as enacted by Laws of Utah 2007, Chapter 309
             417          31A-27a-515, as enacted by Laws of Utah 2007, Chapter 309
             418          31A-27a-804, as enacted by Laws of Utah 2007, Chapter 309
             419          31A-29-106, as last amended by Laws of Utah 2004, Chapter 329
             420          31A-29-110, as last amended by Laws of Utah 2007, Chapter 40
             421          31A-29-111, as last amended by Laws of Utah 2007, Chapter 40

             422          31A-29-116, as enacted by Laws of Utah 1990, Chapter 232
             423          31A-30-106, as last amended by Laws of Utah 2004, Chapter 108
             424          31A-30-106.7, as last amended by Laws of Utah 2002, Chapter 308
             425          31A-31-104, as last amended by Laws of Utah 2002, Chapter 97
             426          31A-31-106, as last amended by Laws of Utah 1995, Chapter 20
             427          31A-31-108, as last amended by Laws of Utah 2004, Chapter 104
             428          31A-33-104, as last amended by Laws of Utah 2006, Chapter 14
             429          31A-33-107, as last amended by Laws of Utah 2007, Chapter 74
             430          31A-34-104, as enacted by Laws of Utah 1996, Chapter 143
             431          31A-35-301, as last amended by Laws of Utah 2003, Chapter 298
             432          31A-35-401, as last amended by Laws of Utah 2003, Chapter 298
             433          31A-35-405, as last amended by Laws of Utah 2000, Chapter 259
             434          31A-35-406, as last amended by Laws of Utah 2000, Chapter 259
             435          31A-35-502, as last amended by Laws of Utah 2003, Chapter 298
             436          31A-36-104, as last amended by Laws of Utah 2007, Chapter 307
             437          31A-36-115, as enacted by Laws of Utah 2003, Chapter 81
             438          31A-36-117, as last amended by Laws of Utah 2007, Chapter 307
             439          31A-36-119, as last amended by Laws of Utah 2007, Chapter 307
             440          31A-37-106, as last amended by Laws of Utah 2004, Chapter 312
             441          31A-37-202, as last amended by Laws of Utah 2004, Chapter 312
             442          31A-37-503, as enacted by Laws of Utah 2003, Chapter 251
             443          31A-37-602, as enacted by Laws of Utah 2004, Chapter 312
             444          32A-1-115, as last amended by Laws of Utah 2007, Chapter 58
             445          32A-1-118, as last amended by Laws of Utah 2005, Chapter 102
             446          32A-1-119, as last amended by Laws of Utah 2007, Chapter 284
             447          32A-1-120, as last amended by Laws of Utah 2007, Chapter 284
             448          32A-1-603, as enacted by Laws of Utah 2007, Chapter 284
             449          32A-4-103, as last amended by Laws of Utah 2003, Chapter 314

             450          32A-4-203, as last amended by Laws of Utah 2003, Chapter 314
             451          32A-4-304, as enacted by Laws of Utah 2003, Chapter 314
             452          32A-4-403, as enacted by Laws of Utah 2003, Chapter 314
             453          32A-4-406, as last amended by Laws of Utah 2007, Chapters 284, and 341
             454          32A-5-103, as last amended by Laws of Utah 2003, Chapter 314
             455          32A-6-103, as last amended by Laws of Utah 2003, Chapter 314
             456          32A-7-103, as last amended by Laws of Utah 2003, Chapter 314
             457          32A-8-103, as last amended by Laws of Utah 2003, Chapter 314
             458          32A-8-503, as last amended by Laws of Utah 2004, Chapter 268
             459          32A-9-103, as last amended by Laws of Utah 2003, Chapter 314
             460          32A-10-203, as last amended by Laws of Utah 2003, Chapter 314
             461          32A-10-303, as enacted by Laws of Utah 2003, Chapter 314
             462          32A-11-103, as last amended by Laws of Utah 2003, Chapter 314
             463          32A-15a-103, as enacted by Laws of Utah 2003, Chapter 314
             464          32A-15a-201, as enacted by Laws of Utah 2003, Chapter 314
             465          34-20-10, as last amended by Laws of Utah 1997, Chapter 375
             466          34-23-104, as last amended by Laws of Utah 1997, Chapter 375
             467          34-23-401, as last amended by Laws of Utah 1996, Chapter 240
             468          34-28-19, as last amended by Laws of Utah 2003, Chapter 174
             469          34-40-104, as last amended by Laws of Utah 2003, Chapter 151
             470          34-40-105, as last amended by Laws of Utah 1997, Chapter 375
             471          34-40-202, as last amended by Laws of Utah 1996, Chapter 240
             472          34-41-103, as last amended by Laws of Utah 1996, Chapter 197
             473          34A-1-104, as enacted by Laws of Utah 1997, Chapter 375
             474          34A-1-106, as enacted by Laws of Utah 1997, Chapter 375
             475          34A-1-302, as enacted by Laws of Utah 1997, Chapter 375
             476          34A-1-303, as last amended by Laws of Utah 2003, Chapter 28
             477          34A-1-304, as enacted by Laws of Utah 1997, Chapter 375

             478          34A-1-307, as renumbered and amended by Laws of Utah 1997, Chapter 375
             479          34A-1-309, as last amended by Laws of Utah 2001, Chapter 9
             480          34A-1-402, as renumbered and amended by Laws of Utah 1997, Chapter 375
             481          34A-2-111, as last amended by Laws of Utah 2006, Chapter 295
             482          34A-2-203, as last amended by Laws of Utah 2006, Chapter 275
             483          34A-2-205, as last amended by Laws of Utah 2000, Chapter 232
             484          34A-2-211, as last amended by Laws of Utah 2000, Chapter 222
             485          34A-2-407, as last amended by Laws of Utah 2006, Chapter 295
             486          34A-2-704, as last amended by Laws of Utah 2004, Chapter 275
             487          34A-2-801, as last amended by Laws of Utah 2006, Chapter 295
             488          34A-5-102, as last amended by Laws of Utah 2001, Chapter 73
             489          34A-5-107, as last amended by Laws of Utah 2003, Chapter 65
             490          34A-5-108, as last amended by Laws of Utah 2003, Chapter 65
             491          34A-6-103, as renumbered and amended by Laws of Utah 1997, Chapter 375
             492          34A-6-105, as renumbered and amended by Laws of Utah 1997, Chapter 375
             493          34A-6-202, as last amended by Laws of Utah 1997, Chapter 10 and renumbered and
             494      amended by Laws of Utah 1997, Chapter 375
             495          34A-6-301, as last amended by Laws of Utah 2007, Chapter 153
             496          34A-6-304, as renumbered and amended by Laws of Utah 1997, Chapter 375
             497          34A-6-307, as renumbered and amended by Laws of Utah 1997, Chapter 375
             498          34A-7-104, as renumbered and amended by Laws of Utah 1997, Chapter 375
             499          34A-7-203, as enacted by Laws of Utah 1999, Chapter 53
             500          34A-8-111, as renumbered and amended by Laws of Utah 1997, Chapter 375
             501          34A-8-112, as renumbered and amended by Laws of Utah 1997, Chapter 375
             502          35A-1-104, as last amended by Laws of Utah 2002, Chapter 58
             503          35A-1-106, as enacted by Laws of Utah 1996, Chapter 240
             504          35A-1-301, as last amended by Laws of Utah 1997, Chapter 375
             505          35A-1-303, as enacted by Laws of Utah 1996, Chapter 240

             506          35A-3-105, as renumbered and amended by Laws of Utah 1997, Chapter 174
             507          35A-3-111, as last amended by Laws of Utah 2003, Chapter 90
             508          35A-3-207, as last amended by Laws of Utah 1998, Chapter 13
             509          35A-3-302, as last amended by Laws of Utah 2004, Chapter 29
             510          35A-3-310, as last amended by Laws of Utah 2004, Chapter 29
             511          35A-3-602, as renumbered and amended by Laws of Utah 2003, Chapter 90
             512          35A-3-604, as renumbered and amended by Laws of Utah 2003, Chapter 90
             513          35A-4-202, as last amended by Laws of Utah 2006, Chapter 22
             514          35A-4-304, as repealed and reenacted by Laws of Utah 2005, Chapter 12
             515          35A-4-312, as last amended by Laws of Utah 2005, Chapters 81, and 148
             516          35A-4-401, as last amended by Laws of Utah 2007, Chapter 263
             517          35A-4-502, as last amended by Laws of Utah 2002, Chapter 250
             518          35A-4-503, as renumbered and amended by Laws of Utah 1996, Chapter 240
             519          35A-5-102, as last amended by Laws of Utah 2005, Chapter 81
             520          35A-5-202, as renumbered and amended by Laws of Utah 1997, Chapter 375
             521          35A-7-106, as enacted by Laws of Utah 1997, Chapter 232
             522          35A-7-107, as enacted by Laws of Utah 1997, Chapter 232
             523          36-11-102, as last amended by Laws of Utah 2007, Chapter 233
             524          36-11-103, as last amended by Laws of Utah 2003, Chapter 27
             525          36-11-404, as enacted by Laws of Utah 1991, Chapter 280
             526          36-12-13, as last amended by Laws of Utah 2007, Chapters 41, and 329
             527          36-12-15, as last amended by Laws of Utah 2005, Chapter 84
             528          36-23-106, as last amended by Laws of Utah 2007, Chapter 137
             529          38-1-11, as last amended by Laws of Utah 2007, Chapter 332
             530          38-1-27, as last amended by Laws of Utah 2007, Chapter 306
             531          38-1-28, as last amended by Laws of Utah 2005, Chapter 140
             532          38-1-30, as last amended by Laws of Utah 2006, Chapter 297
             533          38-1-31, as last amended by Laws of Utah 2007, Chapter 332

             534          38-1-39, as last amended by Laws of Utah 2007, Chapter 226
             535          38-11-105, as last amended by Laws of Utah 2004, Chapter 42
             536          38-11-108, as last amended by Laws of Utah 1996, Chapter 79
             537          38-11-110, as enacted by Laws of Utah 2004, Chapter 42
             538          38-11-201, as last amended by Laws of Utah 2002, Chapter 256
             539          38-11-202, as last amended by Laws of Utah 2004, Chapter 42
             540          38-11-204, as last amended by Laws of Utah 2007, Chapter 332
             541          38-11-206, as last amended by Laws of Utah 1995, Chapters 28, and 172
             542          38-11-207, as last amended by Laws of Utah 2001, Chapter 198
             543          38-11-301, as last amended by Laws of Utah 2001, Chapter 198
             544          38-11-302, as last amended by Laws of Utah 1995, Chapters 20, and 172
             545          39-5-2, as last amended by Laws of Utah 1997, Chapter 211
             546          39-7-119, as enacted by Laws of Utah 1997, Chapter 306
             547          40-2-1.1, as last amended by Laws of Utah 1997, Chapter 375
             548          40-2-15, as last amended by Laws of Utah 2007, Chapter 222
             549          40-2-16, as last amended by Laws of Utah 2006, Chapter 5
             550          40-6-10, as last amended by Laws of Utah 1987, Chapter 161
             551          40-6-14.5, as last amended by Laws of Utah 2003, Chapter 88
             552          40-8-4, as last amended by Laws of Utah 2002, Chapter 194
             553          40-8-6, as last amended by Laws of Utah 1987, Chapter 161
             554          40-8-7, as last amended by Laws of Utah 2003, Chapter 35
             555          40-10-6, as last amended by Laws of Utah 1989, Chapter 22
             556          40-10-6.5, as last amended by Laws of Utah 1994, Chapter 219
             557          40-10-6.7, as enacted by Laws of Utah 1994, Chapter 219
             558          40-10-13, as last amended by Laws of Utah 1997, Chapter 99
             559          40-10-14, as last amended by Laws of Utah 1994, Chapter 219
             560          40-10-16, as last amended by Laws of Utah 1994, Chapter 219
             561          40-10-21, as last amended by Laws of Utah 2005, Chapter 102

             562          40-10-30, as last amended by Laws of Utah 1994, Chapter 219
             563          41-1a-115, as last amended by Laws of Utah 1994, Chapter 313
             564          41-1a-116, as last amended by Laws of Utah 2004, Chapter 332
             565          41-1a-117, as renumbered and amended by Laws of Utah 1992, Chapter 1
             566          41-1a-119, as renumbered and amended by Laws of Utah 1992, Chapter 1
             567          41-1a-231, as enacted by Laws of Utah 2000, Chapter 244
             568          41-1a-301, as last amended by Laws of Utah 2003, Chapter 268
             569          41-1a-407, as last amended by Laws of Utah 2007, Chapter 52
             570          41-1a-416, as last amended by Laws of Utah 2001, Chapter 34
             571          41-1a-418, as last amended by Laws of Utah 2007, Chapters 173, 217, and 325
             572          41-1a-419, as last amended by Laws of Utah 2007, Chapter 376
             573          41-1a-420, as last amended by Laws of Utah 2005, Chapter 207
             574          41-1a-422, as last amended by Laws of Utah 2007, Chapters 173, 179, and 325
             575          41-1a-522, as last amended by Laws of Utah 1994, Chapter 175
             576          41-1a-712, as enacted by Laws of Utah 2003, Chapter 250
             577          41-1a-1007, as last amended by Laws of Utah 1995, Chapter 28
             578          41-1a-1010, as last amended by Laws of Utah 1995, Chapter 28
             579          41-1a-1101, as last amended by Laws of Utah 2005, Chapters 2, and 56
             580          41-1a-1211, as last amended by Laws of Utah 2007, Chapter 274
             581          41-1a-1212, as last amended by Laws of Utah 1995, Chapter 28
             582          41-1a-1221, as last amended by Laws of Utah 2007, Chapter 281
             583          41-3-105, as last amended by Laws of Utah 2005, Chapter 57
             584          41-3-109, as last amended by Laws of Utah 1992, Chapter 1 and renumbered and
             585      amended by Laws of Utah 1992, Chapter 234
             586          41-3-202, as last amended by Laws of Utah 2003, Chapter 157
             587          41-3-209, as last amended by Laws of Utah 2005, Chapter 144
             588          41-3-301, as last amended by Laws of Utah 2006, Chapter 252
             589          41-3-302, as last amended by Laws of Utah 2006, Chapter 252

             590          41-3-304, as last amended by Laws of Utah 2001, First Special Session, Chapter 12
             591          41-3-306, as enacted by Laws of Utah 2001, First Special Session, Chapter 12
             592          41-3-601, as last amended by Laws of Utah 2007, Chapter 185
             593          41-3-604, as last amended by Laws of Utah 2007, Chapter 281
             594          41-6a-212, as last amended by Laws of Utah 2007, Chapter 52
             595          41-6a-301, as renumbered and amended by Laws of Utah 2005, Chapter 2
             596          41-6a-303, as renumbered and amended by Laws of Utah 2005, Chapter 2
             597          41-6a-403 (Superseded 07/01/08), as renumbered and amended by Laws of Utah 2005,
             598      Chapter 2
             599          41-6a-403 (Effective 07/01/08), as last amended by Laws of Utah 2007, Chapter 338
             600          41-6a-404, as last amended by Laws of Utah 2007, Chapter 312
             601          41-6a-514, as renumbered and amended by Laws of Utah 2005, Chapter 2
             602          41-6a-518, as last amended by Laws of Utah 2006, Chapter 341
             603          41-6a-702, as last amended by Laws of Utah 2005, Chapter 108 and renumbered and
             604      amended by Laws of Utah 2005, Chapter 2
             605          41-6a-1304, as renumbered and amended by Laws of Utah 2005, Chapter 2
             606          41-6a-1307, as renumbered and amended by Laws of Utah 2005, Chapter 2
             607          41-6a-1406, as last amended by Laws of Utah 2005, Chapter 56 and renumbered and
             608      amended by Laws of Utah 2005, Chapter 2
             609          41-6a-1601, as renumbered and amended by Laws of Utah 2005, Chapter 2
             610          41-6a-1617, as renumbered and amended by Laws of Utah 2005, Chapter 2
             611          41-6a-1636, as renumbered and amended by Laws of Utah 2005, Chapter 2
             612          41-6a-1639, as renumbered and amended by Laws of Utah 2005, Chapter 2
             613          41-12a-201, as last amended by Laws of Utah 1987, Chapter 161
             614          41-12a-202, as last amended by Laws of Utah 2005, Chapter 2
             615          41-12a-407, as last amended by Laws of Utah 2005, Chapter 102
             616          41-12a-803, as last amended by Laws of Utah 2007, Chapter 262
             617          41-12a-805, as last amended by Laws of Utah 2003, Chapter 32

             618          41-22-5.1, as last amended by Laws of Utah 2006, Chapter 160
             619          41-22-10.7, as last amended by Laws of Utah 2002, Chapter 148
             620          41-22-19.5, as enacted by Laws of Utah 2007, Chapter 299
             621          41-22-29, as last amended by Laws of Utah 2007, Chapter 306
             622          41-22-31, as last amended by Laws of Utah 2005, Chapter 102
             623          41-22-35, as last amended by Laws of Utah 2004, Chapter 314
             624          41-22-36, as last amended by Laws of Utah 2007, Chapter 281
             625          42-2-10, as last amended by Laws of Utah 1994, Chapter 313
             626          42-3-2, as last amended by Laws of Utah 1997, Chapter 82
             627          42-3-4, as last amended by Laws of Utah 1997, Chapter 82
             628          46-1-3, as last amended by Laws of Utah 2003, Chapter 136
             629          46-4-501, as last amended by Laws of Utah 2005, Chapter 169
             630          46-4-503, as last amended by Laws of Utah 2005, Chapters 148, and 169
             631          48-1-42, as last amended by Laws of Utah 2005, Chapter 71
             632          48-2a-203.5, as last amended by Laws of Utah 2000, Chapter 131
             633          48-2a-206, as last amended by Laws of Utah 1995, Chapter 28
             634          48-2a-1107, as last amended by Laws of Utah 1995, Chapter 28
             635          48-2c-214, as enacted by Laws of Utah 2001, Chapter 260
             636          48-2c-1209, as enacted by Laws of Utah 2001, Chapter 260
             637          49-11-613, as last amended by Laws of Utah 2007, Chapter 130
             638          49-14-201, as last amended by Laws of Utah 2006, Chapter 139
             639          49-15-201, as last amended by Laws of Utah 2006, Chapter 139
             640          51-2a-301, as enacted by Laws of Utah 2004, Chapter 206
             641          51-5-7, as last amended by Laws of Utah 2002, Chapter 256
             642          52-4-203, as last amended by Laws of Utah 2007, Chapters 35, 204, and 329
             643          52-4-206, as last amended by Laws of Utah 2006, Chapter 263 and renumbered and
             644      amended by Laws of Utah 2006, Chapter 14
             645          52-4-304, as renumbered and amended by Laws of Utah 2006, Chapter 14

             646          53-1-105, as last amended by Laws of Utah 2006, Chapter 14
             647          53-1-106, as last amended by Laws of Utah 2007, Chapter 60
             648          53-1-108, as last amended by Laws of Utah 2005, Chapter 2
             649          53-1-110, as last amended by Laws of Utah 1995, Chapter 28
             650          53-1-117, as last amended by Laws of Utah 2000, Chapter 334
             651          53-2-102, as last amended by Laws of Utah 2007, Chapter 66
             652          53-2-102.5, as last amended by Laws of Utah 2007, Chapters 245, and 328
             653          53-2-104, as last amended by Laws of Utah 2007, Chapter 328
             654          53-2-105, as renumbered and amended by Laws of Utah 1993, Chapter 234
             655          53-2-106, as renumbered and amended by Laws of Utah 1993, Chapter 234
             656          53-2-107, as last amended by Laws of Utah 2005, Chapter 71
             657          53-2-110, as enacted by Laws of Utah 2005, Chapter 214
             658          53-2-402, as enacted by Laws of Utah 2007, Chapter 328
             659          53-2-403, as enacted by Laws of Utah 2007, Chapter 328
             660          53-2-404, as enacted by Laws of Utah 2007, Chapter 328
             661          53-2-509, as enacted by Laws of Utah 2007, Chapter 331
             662          53-3-104, as last amended by Laws of Utah 2006, Chapter 201
             663          53-3-106, as last amended by Laws of Utah 2007, Chapter 261
             664          53-3-109, as last amended by Laws of Utah 2006, Chapters 230, and 298
             665          53-3-205, as last amended by Laws of Utah 2007, Chapters 60, and 173
             666          53-3-221 (Superseded 07/01/08), as last amended by Laws of Utah 2007, Chapter 53
             667          53-3-221 (Effective 07/01/08), as last amended by Laws of Utah 2007, Chapters 53,
             668      and 338
             669          53-3-221.5 (Effective 07/01/08), as enacted by Laws of Utah 2007, Chapter 338
             670          53-3-303.5, as last amended by Laws of Utah 2001, Chapters 31, and 85
             671          53-3-304, as renumbered and amended by Laws of Utah 1993, Chapter 234
             672          53-3-505, as last amended by Laws of Utah 2003, Chapter 121
             673          53-3-506, as last amended by Laws of Utah 2006, Chapter 266

             674          53-3-510, as enacted by Laws of Utah 2000, Chapter 239
             675          53-3-805, as last amended by Laws of Utah 2007, Chapters 60, and 173
             676          53-3-903, as last amended by Laws of Utah 1994, Chapter 12
             677          53-5-704, as last amended by Laws of Utah 2006, Chapter 144
             678          53-5-705, as last amended by Laws of Utah 2005, Chapter 282
             679          53-5-708, as last amended by Laws of Utah 2002, Chapter 97
             680          53-6-105, as last amended by Laws of Utah 1995, Chapter 134
             681          53-6-213, as last amended by Laws of Utah 2002, Chapter 256
             682          53-7-204, as last amended by Laws of Utah 2007, Chapter 96
             683          53-7-204.2, as last amended by Laws of Utah 2003, Chapter 252
             684          53-7-216, as last amended by Laws of Utah 1995, Chapter 28
             685          53-7-225.5, as enacted by Laws of Utah 2003, Chapter 103
             686          53-7-225.6, as enacted by Laws of Utah 2006, Chapter 318
             687          53-7-314, as last amended by Laws of Utah 1995, Chapter 28
             688          53-7-407 (Effective 07/01/08), as enacted by Laws of Utah 2007, Chapter 362
             689          53-8-204, as last amended by Laws of Utah 2002, Chapter 143
             690          53-8-211, as last amended by Laws of Utah 1999, Chapter 91
             691          53-9-103, as last amended by Laws of Utah 2007, Chapter 290
             692          53-9-108, as last amended by Laws of Utah 2007, Chapter 290
             693          53-9-113, as last amended by Laws of Utah 1998, Chapter 212
             694          53-9-115, as last amended by Laws of Utah 1998, Chapter 212
             695          53-9-118, as last amended by Laws of Utah 1998, Chapters 212, and 282
             696          53-10-108, as last amended by Laws of Utah 2004, Chapter 122
             697          53-10-406, as last amended by Laws of Utah 2003, Chapter 120
             698          53-10-602, as enacted by Laws of Utah 2004, Chapter 313
             699          53-11-103, as enacted by Laws of Utah 1998, Chapter 257
             700          53-11-118, as enacted by Laws of Utah 1998, Chapter 257
             701          53-11-119, as last amended by Laws of Utah 1999, Chapter 21

             702          53-13-106, as last amended by Laws of Utah 2004, Chapters 156, and 208
             703          53A-1-402.5, as enacted by Laws of Utah 2000, Chapter 276
             704          53A-1-408, as enacted by Laws of Utah 2002, Chapter 259
             705          53A-1-611, as last amended by Laws of Utah 2002, Fifth Special Session, Chapter 7
             706          53A-1-612, as last amended by Laws of Utah 2007, Chapter 244
             707          53A-1-706, as last amended by Laws of Utah 2007, Chapter 306
             708          53A-1a-508, as last amended by Laws of Utah 2007, Chapter 344
             709          53A-1a-509, as last amended by Laws of Utah 2005, Chapter 291
             710          53A-1a-510, as last amended by Laws of Utah 2007, Chapter 344
             711          53A-1a-511, as last amended by Laws of Utah 2007, Chapter 349
             712          53A-1a-513, as last amended by Laws of Utah 2005, Chapters 9, and 291
             713          53A-1a-601, as last amended by Laws of Utah 2007, Chapter 115
             714          53A-1a-602, as last amended by Laws of Utah 2007, Chapter 115
             715          53A-1a-707, as enacted by Laws of Utah 2005, Chapter 35
             716          53A-1a-808, as enacted by Laws of Utah 2007, Chapter 30
             717          53A-1a-902, as enacted by Laws of Utah 2007, Chapter 386
             718          53A-2-123, as last amended by Laws of Utah 2007, Chapter 329
             719          53A-2-206, as last amended by Laws of Utah 2007, Chapter 372
             720          53A-3-303, as enacted by Laws of Utah 1988, Chapter 2
             721          53A-3-402.11, as last amended by Laws of Utah 2002, Chapter 210
             722          53A-3-424, as last amended by Laws of Utah 2002, Chapter 210
             723          53A-3-702, as enacted by Laws of Utah 2004, Chapter 328
             724          53A-6-103, as last amended by Laws of Utah 2004, Chapter 19
             725          53A-6-105, as last amended by Laws of Utah 2004, Chapter 19
             726          53A-6-112, as enacted by Laws of Utah 2006, Chapter 149
             727          53A-6-503, as enacted by Laws of Utah 2000, Chapter 226
             728          53A-11-102.5, as last amended by Laws of Utah 2007, Chapter 81
             729          53A-12-103, as last amended by Laws of Utah 2005, Chapter 119

             730          53A-13-101.6, as last amended by Laws of Utah 2003, Chapter 57
             731          53A-13-106, as last amended by Laws of Utah 1998, Chapters 278, and 282
             732          53A-13-201, as last amended by Laws of Utah 2006, Chapter 201
             733          53A-13-208, as last amended by Laws of Utah 2006, Chapter 201
             734          53A-13-209, as enacted by Laws of Utah 2003, Chapter 23
             735          53A-15-101.5, as enacted by Laws of Utah 2001, Chapter 99
             736          53A-15-104, as enacted by Laws of Utah 2007, Chapter 221
             737          53A-16-101.5, as last amended by Laws of Utah 2005, Chapter 166
             738          53A-17a-105, as last amended by Laws of Utah 1994, Chapter 268
             739          53A-17a-107, as last amended by Laws of Utah 2007, Chapter 306
             740          53A-17a-111, as last amended by Laws of Utah 2003, Chapter 320
             741          53A-17a-120, as last amended by Laws of Utah 2007, Chapter 368
             742          53A-17a-121, as last amended by Laws of Utah 2003, Chapter 320
             743          53A-17a-131.9, as last amended by Laws of Utah 2002, Chapters 258, and 279
             744          53A-17a-131.15, as last amended by Laws of Utah 2003, Chapter 320
             745          53A-17a-131.17, as last amended by Laws of Utah 2005, Chapter 166
             746          53A-17a-153, as enacted by Laws of Utah 2007, Chapter 380
             747          53A-19-105, as last amended by Laws of Utah 2003, Chapter 122
             748          53A-20-101, as last amended by Laws of Utah 2005, Chapter 25
             749          53A-20c-102, as enacted by Laws of Utah 2007, Chapter 335
             750          53A-21-103, as last amended by Laws of Utah 2003, Chapter 320
             751          53A-21-103.5, as last amended by Laws of Utah 2005, Chapters 171, and 184
             752          53A-24-114, as last amended by Laws of Utah 2006, Chapter 139
             753          53A-26a-302, as last amended by Laws of Utah 1995, Chapter 28
             754          53B-2-107, as enacted by Laws of Utah 2002, Chapter 315
             755          53B-2-108, as enacted by Laws of Utah 2002, Fifth Special Session, Chapter 22
             756          53B-6-105, as enacted by Laws of Utah 2001, Chapter 238
             757          53B-6-105.7, as enacted by Laws of Utah 2001, Chapter 238

             758          53B-6-105.9, as last amended by Laws of Utah 2002, Chapter 210
             759          53B-6-106, as enacted by Laws of Utah 2005, Chapter 147
             760          53B-7-502, as last amended by Laws of Utah 2007, Chapters 247, and 356
             761          53B-12-101, as last amended by Laws of Utah 2005, Chapter 81
             762          53B-16-302, as last amended by Laws of Utah 2005, Chapter 201
             763          53B-16-303, as enacted by Laws of Utah 1992, Chapter 280
             764          53B-16-304, as last amended by Laws of Utah 2005, Chapter 201
             765          53B-16-305, as enacted by Laws of Utah 1992, Chapter 280
             766          53B-17-603, as last amended by Laws of Utah 1994, Chapter 294
             767          53C-1-201, as last amended by Laws of Utah 2007, Chapter 306
             768          53C-1-202, as last amended by Laws of Utah 2003, Chapter 192
             769          53C-1-304, as last amended by Laws of Utah 1997, Chapter 72
             770          53C-2-201, as last amended by Laws of Utah 2004, Chapter 63
             771          54-1-2.5, as enacted by Laws of Utah 1987, Chapter 161
             772          54-3-28, as last amended by Laws of Utah 2007, Chapter 329
             773          54-5-1.5, as last amended by Laws of Utah 2001, Chapter 212
             774          54-7-15, as last amended by Laws of Utah 2003, Chapter 200
             775          54-8b-2.1, as enacted by Laws of Utah 1995, Chapter 269
             776          54-8b-10, as last amended by Laws of Utah 2007, Chapter 68
             777          54-14-104, as enacted by Laws of Utah 1997, Chapter 197
             778          54-14-307, as enacted by Laws of Utah 1997, Chapter 197
             779          54-17-102, as enacted by Laws of Utah 2005, Chapter 11
             780          54-17-103, as enacted by Laws of Utah 2005, Chapter 11
             781          54-17-201, as last amended by Laws of Utah 2007, Chapter 289
             782          54-17-202, as enacted by Laws of Utah 2005, Chapter 11
             783          54-17-203, as enacted by Laws of Utah 2005, Chapter 11
             784          54-17-301, as enacted by Laws of Utah 2005, Chapter 11
             785          54-17-302, as last amended by Laws of Utah 2007, Chapter 289

             786          54-17-304, as enacted by Laws of Utah 2005, Chapter 11
             787          54-17-401, as enacted by Laws of Utah 2005, Chapter 11
             788          54-17-402, as enacted by Laws of Utah 2005, Chapter 11
             789          54-17-404, as enacted by Laws of Utah 2005, Chapter 11
             790          54-17-501, as enacted by Laws of Utah 2007, Chapter 289
             791          56-1-22.5, as enacted by Laws of Utah 1987, Chapter 161
             792          56-2-8, as last amended by Laws of Utah 1987, Chapter 161
             793          57-11-3.5, as enacted by Laws of Utah 1987, Chapter 161
             794          57-11-10, as last amended by Laws of Utah 1990, Chapter 199
             795          57-11-13, as repealed and reenacted by Laws of Utah 1991, Chapter 165
             796          57-11-14, as last amended by Laws of Utah 1991, Chapter 165
             797          57-12-9, as last amended by Laws of Utah 2004, Chapter 223
             798          57-19-20, as last amended by Laws of Utah 1991, Chapter 165
             799          57-21-2, as last amended by Laws of Utah 1997, Chapter 375
             800          57-21-8, as last amended by Laws of Utah 1999, Chapter 82
             801          57-21-9, as last amended by Laws of Utah 1999, Chapters 82, and 160
             802          57-21-10, as last amended by Laws of Utah 1999, Chapter 160
             803          57-23-8, as enacted by Laws of Utah 1992, Chapter 169
             804          57-24-101, as enacted by Laws of Utah 2004, Chapter 44
             805          57-25-109, as enacted by Laws of Utah 2006, Chapter 51
             806          58-1-106, as last amended by Laws of Utah 2003, Chapter 54
             807          58-1-108, as enacted by Laws of Utah 1993, Chapter 297
             808          58-1-109, as enacted by Laws of Utah 1993, Chapter 297
             809          58-1-301, as last amended by Laws of Utah 2004, Chapter 90
             810          58-1-308, as last amended by Laws of Utah 2003, Chapter 43
             811          58-1-402, as last amended by Laws of Utah 1996, Chapter 243
             812          58-1-404, as last amended by Laws of Utah 2006, Chapter 14
             813          58-3a-103, as last amended by Laws of Utah 2002, Chapter 256

             814          58-3a-302, as enacted by Laws of Utah 1996, Chapter 260
             815          58-3a-502, as last amended by Laws of Utah 1997, Chapter 10
             816          58-5a-302, as last amended by Laws of Utah 1995, Chapter 28
             817          58-9-302, as last amended by Laws of Utah 2007, Chapter 144
             818          58-9-504, as enacted by Laws of Utah 2003, Chapter 49
             819          58-9-701, as last amended by Laws of Utah 2007, Chapter 144
             820          58-11a-102, as last amended by Laws of Utah 2007, Chapter 209
             821          58-11a-302, as last amended by Laws of Utah 2007, Chapter 209
             822          58-11a-503, as last amended by Laws of Utah 2007, Chapter 209
             823          58-13-5, as enacted by Laws of Utah 1996, Chapter 248
             824          58-15-4, as last amended by Laws of Utah 1994, Chapter 313
             825          58-16a-302, as last amended by Laws of Utah 2001, Chapter 268
             826          58-17b-303, as last amended by Laws of Utah 2005, Chapter 160
             827          58-17b-304, as last amended by Laws of Utah 2007, Chapter 279
             828          58-17b-305, as enacted by Laws of Utah 2004, Chapter 280
             829          58-17b-306, as enacted by Laws of Utah 2004, Chapter 280
             830          58-17b-307, as enacted by Laws of Utah 2004, Chapter 280
             831          58-17b-504, as last amended by Laws of Utah 2007, Chapters 279, and 306
             832          58-17b-701, as enacted by Laws of Utah 2004, Chapter 280
             833          58-20a-302, as last amended by Laws of Utah 1996, Chapter 191
             834          58-22-103, as last amended by Laws of Utah 2002, Chapter 256
             835          58-22-302, as last amended by Laws of Utah 2003, Chapter 50
             836          58-22-503, as last amended by Laws of Utah 1997, Chapter 10
             837          58-26a-102, as enacted by Laws of Utah 2000, Chapter 261
             838          58-26a-302, as enacted by Laws of Utah 2000, Chapter 261
             839          58-26a-306, as last amended by Laws of Utah 2003, Chapter 52
             840          58-26a-307, as enacted by Laws of Utah 2000, Chapter 261
             841          58-28-302, as renumbered and amended by Laws of Utah 2006, Chapter 109

             842          58-28-503, as enacted by Laws of Utah 2006, Chapter 109
             843          58-31b-102, as last amended by Laws of Utah 2007, Chapter 57
             844          58-31b-301.6, as enacted by Laws of Utah 2006, Chapter 291
             845          58-31b-302, as last amended by Laws of Utah 2007, Chapters 49, and 57
             846          58-31b-304, as last amended by Laws of Utah 2006, Chapter 291
             847          58-31b-305, as last amended by Laws of Utah 2007, Chapter 57
             848          58-31b-401, as last amended by Laws of Utah 2006, Chapter 291
             849          58-31b-402, as last amended by Laws of Utah 2002, Chapter 290
             850          58-31b-601, as last amended by Laws of Utah 2006, Chapter 291
             851          58-37-2, as last amended by Laws of Utah 2006, Chapter 8
             852          58-37-6, as last amended by Laws of Utah 2006, Chapters 21, and 281
             853          58-37-21, as enacted by Laws of Utah 1995, Chapter 163
             854          58-37c-3, as last amended by Laws of Utah 2000, Chapters 271, and 272
             855          58-37c-6, as repealed and reenacted by Laws of Utah 1992, Chapter 155
             856          58-37c-8, as last amended by Laws of Utah 2007, Chapter 358
             857          58-37c-14, as enacted by Laws of Utah 1992, Chapter 155
             858          58-39a-5, as last amended by Laws of Utah 1994, Chapter 313
             859          58-40-5, as last amended by Laws of Utah 2004, Chapter 11
             860          58-40a-302, as enacted by Laws of Utah 2006, Chapter 206
             861          58-40a-304, as enacted by Laws of Utah 2006, Chapter 206
             862          58-41-5, as last amended by Laws of Utah 1994, Chapter 313
             863          58-41-13, as last amended by Laws of Utah 1994, Chapter 313
             864          58-42a-302, as last amended by Laws of Utah 2004, Chapter 9
             865          58-44a-102, as last amended by Laws of Utah 1998, Chapter 288
             866          58-44a-302, as last amended by Laws of Utah 2007, Chapter 57
             867          58-44a-402, as enacted by Laws of Utah 1998, Chapter 288
             868          58-46a-302, as last amended by Laws of Utah 2002, Chapter 50
             869          58-47b-302, as last amended by Laws of Utah 2000, Chapter 309

             870          58-53-103, as last amended by Laws of Utah 2002, Chapter 256
             871          58-53-302, as renumbered and amended by Laws of Utah 1998, Chapter 191
             872          58-53-502, as renumbered and amended by Laws of Utah 1998, Chapter 191
             873          58-54-2, as last amended by Laws of Utah 1996, Chapter 232
             874          58-54-5, as last amended by Laws of Utah 1994, Chapters 163, and 313
             875          58-55-103, as last amended by Laws of Utah 2004, Chapters 61, and 90
             876          58-55-302, as last amended by Laws of Utah 2006, Chapter 122
             877          58-55-307, as last amended by Laws of Utah 2002, Chapter 241
             878          58-55-308, as last amended by Laws of Utah 2006, Chapter 73
             879          58-55-503, as last amended by Laws of Utah 2007, Chapter 98
             880          58-56-4, as last amended by Laws of Utah 2005, Chapter 254
             881          58-56-7, as last amended by Laws of Utah 2002, Chapter 75
             882          58-56-9.3, as enacted by Laws of Utah 2007, Chapter 145
             883          58-56-9.5, as enacted by Laws of Utah 2007, Chapter 145
             884          58-56-16, as last amended by Laws of Utah 1999, Chapter 42
             885          58-57-4, as last amended by Laws of Utah 2006, Chapter 106
             886          58-57-14, as enacted by Laws of Utah 2006, Chapter 106
             887          58-59-302, as last amended by Laws of Utah 2007, Chapter 134
             888          58-59-302.5, as enacted by Laws of Utah 2007, Chapter 134
             889          58-59-303, as last amended by Laws of Utah 2003, Chapter 260
             890          58-59-308, as last amended by Laws of Utah 2005, Chapter 102
             891          58-60-115, as last amended by Laws of Utah 2003, Chapter 201
             892          58-60-117, as last amended by Laws of Utah 2004, Chapter 143
             893          58-60-205, as last amended by Laws of Utah 2003, Chapter 201
             894          58-60-305, as last amended by Laws of Utah 2001, Chapter 281
             895          58-60-405, as last amended by Laws of Utah 2001, Chapter 281
             896          58-60-506, as last amended by Laws of Utah 2007, Chapter 283
             897          58-61-304, as last amended by Laws of Utah 2007, Chapter 387

             898          58-63-302, as last amended by Laws of Utah 2005, Chapter 81
             899          58-63-304, as last amended by Laws of Utah 2005, Chapter 307
             900          58-63-503, as enacted by Laws of Utah 2003, Chapter 308
             901          58-64-302, as enacted by Laws of Utah 1995, Chapter 215
             902          58-67-102, as last amended by Laws of Utah 2000, Chapter 1
             903          58-67-302, as last amended by Laws of Utah 2006, Chapter 53
             904          58-67-402, as enacted by Laws of Utah 1996, Chapter 248
             905          58-67-601, as last amended by Laws of Utah 2002, Fifth Special Session, Chapter 8
             906          58-68-102, as last amended by Laws of Utah 2000, Chapter 1
             907          58-68-302, as last amended by Laws of Utah 2006, Chapter 53
             908          58-68-402, as enacted by Laws of Utah 1996, Chapter 248
             909          58-68-601, as last amended by Laws of Utah 2002, Fifth Special Session, Chapter 8
             910          58-69-302, as last amended by Laws of Utah 1998, Chapter 206
             911          58-69-601, as last amended by Laws of Utah 2002, Fifth Special Session, Chapter 8
             912          58-70a-302, as enacted by Laws of Utah 1997, Chapter 229
             913          58-71-102, as last amended by Laws of Utah 2004, Chapter 280
             914          58-71-302, as last amended by Laws of Utah 2005, Chapter 17
             915          58-71-402, as enacted by Laws of Utah 1996, Chapter 282
             916          58-71-601, as last amended by Laws of Utah 2002, Fifth Special Session, Chapter 8
             917          58-72-302, as last amended by Laws of Utah 2007, Chapter 90
             918          58-73-302, as last amended by Laws of Utah 1996, Chapter 175 and renumbered and
             919      amended by Laws of Utah 1996, Chapter 253
             920          58-73-701, as last amended by Laws of Utah 2005, Chapter 102
             921          58-74-302, as last amended by Laws of Utah 2004, Chapter 77
             922          58-75-102, as enacted by Laws of Utah 2001, Chapter 100
             923          58-75-302, as last amended by Laws of Utah 2002, Chapter 305
             924          58-76-103, as enacted by Laws of Utah 2002, Chapter 218
             925          58-76-302, as enacted by Laws of Utah 2002, Chapter 218

             926          58-76-502, as last amended by Laws of Utah 2003, Chapter 131
             927          58-77-302, as enacted by Laws of Utah 2005, Chapter 299
             928          59-1-210, as last amended by Laws of Utah 2007, Chapter 288
             929          59-1-302, as last amended by Laws of Utah 2005, Chapter 198
             930          59-1-304, as enacted by Laws of Utah 2004, Chapter 84
             931          59-1-305, as enacted by Laws of Utah 2007, Chapter 281
             932          59-1-401, as last amended by Laws of Utah 2007, Chapters 175, and 269
             933          59-1-403, as last amended by Laws of Utah 2007, Chapter 250
             934          59-1-404, as last amended by Laws of Utah 2007, Chapter 230
             935          59-1-502.5, as last amended by Laws of Utah 1995, Chapter 55
             936          59-1-601, as last amended by Laws of Utah 1998, Chapter 326
             937          59-1-602, as last amended by Laws of Utah 1998, Chapter 326
             938          59-1-610, as enacted by Laws of Utah 1993, Chapter 248
             939          59-1-1302, as enacted by Laws of Utah 2006, Chapter 237
             940          59-1-1303, as enacted by Laws of Utah 2006, Chapter 237
             941          59-1-1306, as enacted by Laws of Utah 2006, Chapter 237
             942          59-1-1307, as enacted by Laws of Utah 2006, Chapter 237
             943          59-2-102, as last amended by Laws of Utah 2007, Chapters 107, 234, and 329
             944          59-2-103.5, as enacted by Laws of Utah 2002, Chapter 169
             945          59-2-107, as enacted by Laws of Utah 2004, Chapter 303
             946          59-2-202, as last amended by Laws of Utah 1999, Chapter 71
             947          59-2-207, as last amended by Laws of Utah 1999, Chapter 71
             948          59-2-307, as last amended by Laws of Utah 2006, Chapter 39
             949          59-2-309, as last amended by Laws of Utah 1992, Chapter 237
             950          59-2-405.2, as last amended by Laws of Utah 2006, Fifth Special Session, Chapter 3
             951          59-2-406, as last amended by Laws of Utah 2005, Chapters 217, and 244
             952          59-2-503, as last amended by Laws of Utah 2003, Chapter 208
             953          59-2-703, as last amended by Laws of Utah 2001, Chapter 214

             954          59-2-704.5, as enacted by Laws of Utah 1993, Chapter 243
             955          59-2-801, as last amended by Laws of Utah 1999, Chapter 134
             956          59-2-924, as last amended by Laws of Utah 2007, Chapters 107, and 329
             957          59-2-1004, as last amended by Laws of Utah 2001, Chapter 106
             958          59-2-1004.5, as enacted by Laws of Utah 2005, Chapter 182
             959          59-2-1004.6, as enacted by Laws of Utah 2005, Chapter 53
             960          59-2-1007, as last amended by Laws of Utah 2007, Chapter 119
             961          59-2-1102, as last amended by Laws of Utah 2005, Chapter 19
             962          59-2-1105, as last amended by Laws of Utah 2006, Chapter 114
             963          59-2-1115, as last amended by Laws of Utah 2007, Chapter 8
             964          59-2-1202, as last amended by Laws of Utah 2006, Chapter 363
             965          59-5-101, as last amended by Laws of Utah 2006, Chapter 346
             966          59-5-110, as repealed and reenacted by Laws of Utah 1988, Chapter 4
             967          59-5-203, as last amended by Laws of Utah 2005, Chapter 238
             968          59-5-204, as last amended by Laws of Utah 1988, Chapter 183
             969          59-5-210, as enacted by Laws of Utah 1988, Chapter 4
             970          59-6-104, as last amended by Laws of Utah 1988, Chapter 3
             971          59-7-101, as last amended by Laws of Utah 2004, Chapter 54
             972          59-7-311, as last amended by Laws of Utah 2005, Chapter 225
             973          59-7-610, as last amended by Laws of Utah 2005, Chapter 148
             974          59-7-612, as last amended by Laws of Utah 2007, Chapter 288
             975          59-7-613, as last amended by Laws of Utah 1999, Chapter 59
             976          59-7-614.1, as last amended by Laws of Utah 2007, Chapter 122
             977          59-7-703, as last amended by Laws of Utah 2006, Chapter 223
             978          59-8-106, as last amended by Laws of Utah 1988, Chapter 169
             979          59-10-103, as last amended by Laws of Utah 2006, Fourth Special Session, Chapter 2
             980          59-10-114, as last amended by Laws of Utah 2007, Chapter 100
             981          59-10-115, as last amended by Laws of Utah 2006, Fourth Special Session, Chapter 2

             982          59-10-116, as last amended by Laws of Utah 2006, Fourth Special Session, Chapter 2
             983          59-10-117, as last amended by Laws of Utah 2006, Fourth Special Session, Chapter 2
             984          59-10-202, as last amended by Laws of Utah 2007, Chapter 100
             985          59-10-209.1, as enacted by Laws of Utah 2006, Chapter 223
             986          59-10-210, as last amended by Laws of Utah 2006, Chapter 223
             987          59-10-405.5, as last amended by Laws of Utah 2006, Chapter 322
             988          59-10-514, as last amended by Laws of Utah 2007, Chapter 28
             989          59-10-514.1, as enacted by Laws of Utah 2005, Chapter 121
             990          59-10-549, as last amended by Laws of Utah 2005, Chapter 208
             991          59-10-1007, as renumbered and amended by Laws of Utah 2006, Chapter 223
             992          59-10-1012, as last amended by Laws of Utah 2007, Chapter 288
             993          59-10-1013, as renumbered and amended by Laws of Utah 2006, Chapter 223
             994          59-10-1015, as renumbered and amended by Laws of Utah 2006, Chapter 223
             995          59-10-1105, as last amended by Laws of Utah 2007, Chapter 122
             996          59-10-1205, as enacted by Laws of Utah 2006, Fourth Special Session, Chapter 2
             997          59-11-113, as last amended by Laws of Utah 1998, Chapter 299
             998          59-12-102, as last amended by Laws of Utah 2007, Chapters 9, 214, 224, and 288
             999          59-12-104, as last amended by Laws of Utah 2007, Chapters 76, 195, 214, 224, 288,
             1000      295, and 329
             1001          59-12-104.1, as last amended by Laws of Utah 2003, Chapter 312
             1002          59-12-106, as last amended by Laws of Utah 2006, Chapter 322
             1003          59-12-107, as last amended by Laws of Utah 2006, Chapter 253
             1004          59-12-107.1, as last amended by Laws of Utah 2006, Chapter 253
             1005          59-12-108, as last amended by Laws of Utah 2007, Chapter 9
             1006          59-12-110, as last amended by Laws of Utah 2006, Chapter 253
             1007          59-12-114, as last amended by Laws of Utah 1997, Chapter 328
             1008          59-12-207, as last amended by Laws of Utah 2006, Chapter 253
             1009          59-12-208.1, as last amended by Laws of Utah 2004, Chapter 255

             1010          59-12-209, as enacted by Laws of Utah 1994, Chapter 259
             1011          59-12-210, as last amended by Laws of Utah 2006, Chapter 253
             1012          59-12-301, as last amended by Laws of Utah 2007, Chapter 3
             1013          59-12-403, as last amended by Laws of Utah 2007, Chapter 288
             1014          59-12-504, as last amended by Laws of Utah 2007, Chapter 288
             1015          59-12-703, as last amended by Laws of Utah 2007, Chapter 288
             1016          59-12-806, as last amended by Laws of Utah 2004, Chapter 255
             1017          59-12-902, as last amended by Laws of Utah 2004, Chapter 18
             1018          59-12-1001, as last amended by Laws of Utah 2007, Chapters 288, and 329
             1019          59-12-1102, as last amended by Laws of Utah 2006, Chapter 253
             1020          59-12-1302, as last amended by Laws of Utah 2007, Chapter 288
             1021          59-12-1402, as last amended by Laws of Utah 2007, Chapter 288
             1022          59-12-1503, as last amended by Laws of Utah 2007, Chapters 10, 202, 288, and 329
             1023          59-12-1703, as last amended by Laws of Utah 2007, Chapters 201, 288, and 329
             1024          59-12-1803, as enacted by Laws of Utah 2007, Chapter 288
             1025          59-13-201, as last amended by Laws of Utah 2004, Chapter 237
             1026          59-13-201.5, as enacted by Laws of Utah 2000, Chapter 258
             1027          59-13-202.5, as last amended by Laws of Utah 2003, Chapter 178
             1028          59-13-203.1, as last amended by Laws of Utah 2007, Chapter 194
             1029          59-13-301, as last amended by Laws of Utah 2003, Chapters 7, and 268
             1030          59-13-301.5, as last amended by Laws of Utah 2001, Chapter 9
             1031          59-13-302, as last amended by Laws of Utah 2007, Chapter 194
             1032          59-13-322, as last amended by Laws of Utah 2003, Chapter 178
             1033          59-13-404, as enacted by Laws of Utah 2001, Chapter 235
             1034          59-13-502, as enacted by Laws of Utah 1990, Chapter 11
             1035          59-14-204, as last amended by Laws of Utah 2007, Chapter 6
             1036          59-14-407, as last amended by Laws of Utah 2002, Chapters 52, and 175
             1037          59-14-409, as enacted by Laws of Utah 2005, Chapter 135

             1038          59-14-603, as enacted by Laws of Utah 2005, Chapter 204
             1039          59-19-105, as last amended by Laws of Utah 1989, Chapter 242
             1040          59-21-2, as last amended by Laws of Utah 2007, Chapter 303
             1041          59-24-108, as enacted by Laws of Utah 2001, Chapter 314
             1042          59-25-108, as enacted by Laws of Utah 2003, Chapter 295
             1043          59-26-106, as enacted by Laws of Utah 2004, Chapter 300
             1044          59-26-108, as enacted by Laws of Utah 2004, Chapter 300
             1045          59-27-104, as enacted by Laws of Utah 2004, Chapter 214
             1046          61-1-4, as last amended by Laws of Utah 2004, Chapter 90
             1047          61-1-6, as last amended by Laws of Utah 2003, Chapter 36
             1048          61-1-11.1, as enacted by Laws of Utah 2003, Chapter 245
             1049          61-1-12, as last amended by Laws of Utah 1990, Chapter 133
             1050          61-1-13, as last amended by Laws of Utah 2007, Chapters 292, and 307
             1051          61-1-14, as last amended by Laws of Utah 1997, Chapter 160
             1052          61-1-15.5, as enacted by Laws of Utah 1997, Chapter 160
             1053          61-1-18.4, as last amended by Laws of Utah 1994, Chapter 313
             1054          61-1-18.6, as enacted by Laws of Utah 1987, Chapter 161
             1055          61-1-18.7, as last amended by Laws of Utah 2002, Chapter 256
             1056          61-1-23, as last amended by Laws of Utah 1990, Chapter 133
             1057          61-2-5.1, as last amended by Laws of Utah 1997, Chapter 351
             1058          61-2-6, as last amended by Laws of Utah 2007, Chapter 325
             1059          61-2-7.1, as last amended by Laws of Utah 2005, Chapter 199
             1060          61-2-9, as last amended by Laws of Utah 2007, Chapter 325
             1061          61-2-10, as last amended by Laws of Utah 1996, Chapter 102
             1062          61-2-12, as last amended by Laws of Utah 2007, Chapter 325
             1063          61-2-21, as last amended by Laws of Utah 2007, Chapter 325
             1064          61-2-26, as enacted by Laws of Utah 2005, Chapter 257
             1065          61-2-28, as enacted by Laws of Utah 2007, Chapter 325

             1066          61-2b-2, as last amended by Laws of Utah 2005, Chapter 199
             1067          61-2b-6, as last amended by Laws of Utah 2005, Chapter 199
             1068          61-2b-8, as last amended by Laws of Utah 2005, Chapter 199
             1069          61-2b-18, as last amended by Laws of Utah 2005, Chapter 199
             1070          61-2b-21, as last amended by Laws of Utah 2005, Chapter 199
             1071          61-2b-22, as last amended by Laws of Utah 2005, Chapter 199
             1072          61-2b-27, as last amended by Laws of Utah 2005, Chapter 199
             1073          61-2b-28, as last amended by Laws of Utah 2007, Chapter 325
             1074          61-2b-30, as enacted by Laws of Utah 1990, Chapter 212
             1075          61-2b-37, as last amended by Laws of Utah 1995, Chapter 28
             1076          61-2c-102, as last amended by Laws of Utah 2007, Chapter 325
             1077          61-2c-103, as last amended by Laws of Utah 2005, Chapter 199
             1078          61-2c-104, as last amended by Laws of Utah 2007, Chapter 325
             1079          61-2c-105, as last amended by Laws of Utah 2007, Chapter 173
             1080          61-2c-201, as last amended by Laws of Utah 2007, Chapter 325
             1081          61-2c-202, as last amended by Laws of Utah 2007, Chapter 325
             1082          61-2c-205, as last amended by Laws of Utah 2007, Chapter 325
             1083          61-2c-206, as last amended by Laws of Utah 2007, Chapter 325
             1084          61-2c-207, as enacted by Laws of Utah 2004, Chapter 297
             1085          61-2c-208, as last amended by Laws of Utah 2007, Chapter 325
             1086          61-2c-402.1, as enacted by Laws of Utah 2005, Chapter 199
             1087          61-2c-403, as last amended by Laws of Utah 2007, Chapter 325
             1088          62A-1-106, as enacted by Laws of Utah 1988, Chapter 1
             1089          62A-1-108.5, as last amended by Laws of Utah 2003, Chapter 11
             1090          62A-1-111, as last amended by Laws of Utah 2005, Chapter 212
             1091          62A-1-112, as last amended by Laws of Utah 2004, Chapter 352
             1092          62A-1-118, as last amended by Laws of Utah 2006, Chapter 77
             1093          62A-2-105, as last amended by Laws of Utah 2005, Chapter 188

             1094          62A-2-106, as last amended by Laws of Utah 2005, Chapters 188, and 212
             1095          62A-2-108.2, as enacted by Laws of Utah 2005, Chapter 188
             1096          62A-2-108.3, as enacted by Laws of Utah 2005, Chapter 188
             1097          62A-2-109, as last amended by Laws of Utah 2005, Chapter 188
             1098          62A-2-111, as last amended by Laws of Utah 2005, Chapter 188
             1099          62A-2-120, as last amended by Laws of Utah 2007, Chapter 152
             1100          62A-2-121, as last amended by Laws of Utah 2007, Chapter 152
             1101          62A-2-122, as last amended by Laws of Utah 2005, Chapters 60, 107, and 188
             1102          62A-3-104, as last amended by Laws of Utah 2005, Chapter 107
             1103          62A-3-104.1, as last amended by Laws of Utah 2005, Chapters 71, and 107
             1104          62A-3-106.5, as enacted by Laws of Utah 2006, Chapter 31
             1105          62A-3-109, as enacted by Laws of Utah 1988, Chapter 1
             1106          62A-3-205, as enacted by Laws of Utah 1988, Chapter 1
             1107          62A-3-311, as repealed and reenacted by Laws of Utah 2002, Chapter 108
             1108          62A-3-311.1, as last amended by Laws of Utah 2005, Chapter 50
             1109          62A-3-312, as repealed and reenacted by Laws of Utah 2002, Chapter 108
             1110          62A-4a-102, as last amended by Laws of Utah 2005, Chapter 188
             1111          62A-4a-112, as renumbered and amended by Laws of Utah 1994, Chapter 260
             1112          62A-4a-115, as renumbered and amended by Laws of Utah 1994, Chapter 260
             1113          62A-4a-119, as enacted by Laws of Utah 2000, Chapter 274
             1114          62A-4a-120, as last amended by Laws of Utah 2006, Chapter 281
             1115          62A-4a-206, as last amended by Laws of Utah 2002, Chapter 306
             1116          62A-4a-207, as last amended by Laws of Utah 2006, Chapter 14
             1117          62A-4a-208, as enacted by Laws of Utah 1998, Chapter 274
             1118          62A-4a-303, as renumbered and amended by Laws of Utah 1994, Chapter 260
             1119          62A-4a-304, as last amended by Laws of Utah 1996, Chapter 242
             1120          62A-4a-410, as last amended by Laws of Utah 2005, Chapter 102
             1121          62A-4a-412, as last amended by Laws of Utah 2006, Chapters 77, and 281

             1122          62A-4a-906, as enacted by Laws of Utah 2001, Chapter 115
             1123          62A-4a-1003, as last amended by Laws of Utah 2007, Chapter 152
             1124          62A-4a-1006, as renumbered and amended by Laws of Utah 2006, Chapter 77
             1125          62A-4a-1009, as renumbered and amended by Laws of Utah 2006, Chapter 77
             1126          62A-5-103, as last amended by Laws of Utah 2005, Chapter 60
             1127          62A-5-103.1, as enacted by Laws of Utah 2006, Chapter 133
             1128          62A-5-103.2, as enacted by Laws of Utah 2007, Chapter 135
             1129          62A-5-105, as last amended by Laws of Utah 2004, Chapter 114
             1130          62A-5-313, as last amended by Laws of Utah 1991, Chapter 207
             1131          62A-5a-104, as last amended by Laws of Utah 1996, Chapter 179
             1132          62A-7-202, as last amended by Laws of Utah 2005, Chapter 13
             1133          62A-11-104.1, as last amended by Laws of Utah 1995, Chapter 258
             1134          62A-11-105, as enacted by Laws of Utah 1988, Chapter 1
             1135          62A-11-303, as last amended by Laws of Utah 2000, Chapter 161
             1136          62A-11-304.1, as repealed and reenacted by Laws of Utah 1997, Chapter 232
             1137          62A-11-304.2, as last amended by Laws of Utah 2002, Chapter 60
             1138          62A-11-304.4, as last amended by Laws of Utah 2006, Chapter 77
             1139          62A-11-326.3, as enacted by Laws of Utah 1990, Chapter 166
             1140          62A-11-333, as enacted by Laws of Utah 2000, Chapter 161
             1141          62A-11-407, as last amended by Laws of Utah 1997, Chapter 232
             1142          62A-11-603 (Effective 07/01/08), as enacted by Laws of Utah 2007, Chapter 338
             1143          62A-13-105, as last amended by Laws of Utah 2003, Chapter 246
             1144          62A-14-105, as enacted by Laws of Utah 1999, Chapter 69
             1145          62A-14-106, as last amended by Laws of Utah 2003, Chapter 246
             1146          62A-14-108, as enacted by Laws of Utah 1999, Chapter 69
             1147          62A-14-109, as enacted by Laws of Utah 1999, Chapter 69
             1148          62A-15-103, as last amended by Laws of Utah 2003, Chapters 22, 100, and 303
             1149          62A-15-105, as last amended by Laws of Utah 2005, Chapter 2

             1150          62A-15-401, as last amended by Laws of Utah 2007, Chapter 284
             1151          62A-15-704, as renumbered and amended by Laws of Utah 2002, Fifth Special Session,
             1152      Chapter 8
             1153          62A-15-707, as renumbered and amended by Laws of Utah 2002, Fifth Special Session,
             1154      Chapter 8
             1155          62A-15-902, as last amended by Laws of Utah 2004, Chapter 49
             1156          63-11-12, as enacted by Laws of Utah 1967, Chapter 176
             1157          63-11-17, as last amended by Laws of Utah 2003, Chapter 328
             1158          63-11a-503, as enacted by Laws of Utah 1997, Chapter 321
             1159          63-34-3.1, as last amended by Laws of Utah 1990, Chapter 93
             1160          63-34-5 (Contingently Effective), as last amended by Laws of Utah 2003, Chapter 144
             1161          63-34-15, as last amended by Laws of Utah 2004, Chapter 352
             1162          63-34-17, as last amended by Laws of Utah 2004, Chapter 352
             1163          63-63c-101, as enacted by Laws of Utah 2003, Chapter 340
             1164          63-73-4, as enacted by Laws of Utah 1988, Chapter 137
             1165          63-73-6, as last amended by Laws of Utah 2005, Chapter 294
             1166          63A-1-105.5, as enacted by Laws of Utah 2006, Chapter 52
             1167          63A-1-112, as last amended by Laws of Utah 1999, Chapter 24
             1168          63A-1-114, as last amended by Laws of Utah 2006, Chapter 14
             1169          63A-2-103, as last amended by Laws of Utah 2004, Chapter 34
             1170          63A-3-306, as renumbered and amended by Laws of Utah 1993, Chapter 212
             1171          63A-4-102, as last amended by Laws of Utah 2004, Chapter 34
             1172          63A-4-204, as last amended by Laws of Utah 2005, Chapters 102, and 285
             1173          63A-4-204.5, as last amended by Laws of Utah 2005, Chapters 102, and 285
             1174          63A-4-207, as renumbered and amended by Laws of Utah 1994, Chapter 12
             1175          63A-5-103, as last amended by Laws of Utah 2007, Chapter 322
             1176          63A-5-104, as last amended by Laws of Utah 2007, Chapter 12
             1177          63A-5-204, as last amended by Laws of Utah 2006, Chapters 123, and 278

             1178          63A-5-205, as last amended by Laws of Utah 2004, Chapter 347
             1179          63A-5-206, as last amended by Laws of Utah 2007, Chapter 12
             1180          63A-5-208, as last amended by Laws of Utah 2005, Chapter 25
             1181          63A-5-302, as enacted by Laws of Utah 1995, Chapter 113
             1182          63A-8-201, as last amended by Laws of Utah 2006, Chapter 65
             1183          63A-8-204, as last amended by Laws of Utah 2006, Chapter 65
             1184          63A-9-401, as last amended by Laws of Utah 2007, Chapters 106, and 329
             1185          63A-9-801, as last amended by Laws of Utah 2006, Chapter 139
             1186          63A-9-808, as last amended by Laws of Utah 2006, Chapter 6
             1187          63A-11-107, as enacted by Laws of Utah 2004, Chapter 356
             1188          63A-11-202, as enacted by Laws of Utah 2004, Chapter 356
             1189          63A-11-204, as last amended by Laws of Utah 2006, Chapter 76
             1190          63B-1a-401, as enacted by Laws of Utah 2003, Chapter 2
             1191          63B-2-102, as last amended by Laws of Utah 2005, Chapter 25
             1192          63B-2-105, as enacted by Laws of Utah 1993, Chapter 304
             1193          63B-2-205, as enacted by Laws of Utah 1993, Chapter 304
             1194          63B-2-301, as last amended by Laws of Utah 2003, Chapter 16
             1195          63B-3-102, as last amended by Laws of Utah 2005, Chapter 25
             1196          63B-3-105, as enacted by Laws of Utah 1994, Chapter 300
             1197          63B-3-205, as enacted by Laws of Utah 1994, Chapter 300
             1198          63B-3-301, as last amended by Laws of Utah 2003, Chapter 171
             1199          63B-4-102, as last amended by Laws of Utah 2005, Chapter 25
             1200          63B-4-105, as enacted by Laws of Utah 1995, Chapter 329
             1201          63B-4-201, as last amended by Laws of Utah 2003, Chapter 16
             1202          63B-4-301, as last amended by Laws of Utah 2003, Chapter 16
             1203          63B-5-102, as last amended by Laws of Utah 2005, Chapter 25
             1204          63B-5-105, as enacted by Laws of Utah 1996, Chapter 335
             1205          63B-6-102, as last amended by Laws of Utah 2005, Chapter 25

             1206          63B-6-105, as enacted by Laws of Utah 1997, Chapter 391
             1207          63B-6-205, as enacted by Laws of Utah 1997, Chapter 270
             1208          63B-6-402, as last amended by Laws of Utah 2005, Chapter 25
             1209          63B-6-405, as enacted by Laws of Utah 1997, Chapter 391
             1210          63B-6-501, as last amended by Laws of Utah 1998, Chapter 67
             1211          63B-7-102, as last amended by Laws of Utah 2005, Chapter 25
             1212          63B-7-105, as enacted by Laws of Utah 1998, Chapter 67
             1213          63B-7-205, as enacted by Laws of Utah 1998, Chapter 316
             1214          63B-7-402, as last amended by Laws of Utah 2005, Chapter 25
             1215          63B-7-405, as enacted by Laws of Utah 1998, Chapter 67
             1216          63B-7-501, as last amended by Laws of Utah 2003, Chapter 171
             1217          63B-7-503, as enacted by Laws of Utah 1998, Chapter 314
             1218          63B-8-102, as last amended by Laws of Utah 2005, Chapter 25
             1219          63B-8-105, as enacted by Laws of Utah 1999, Chapter 309
             1220          63B-8-205, as enacted by Laws of Utah 1999, Chapter 331
             1221          63B-8-402, as last amended by Laws of Utah 2005, Chapter 25
             1222          63B-8-405, as enacted by Laws of Utah 1999, Chapter 309
             1223          63B-8-501, as enacted by Laws of Utah 1999, Chapter 309
             1224          63B-9-102, as enacted by Laws of Utah 2000, Chapter 350
             1225          63B-9-103, as last amended by Laws of Utah 2005, Chapter 25
             1226          63B-9-205, as enacted by Laws of Utah 2000, Chapter 354
             1227          63B-10-105, as enacted by Laws of Utah 2001, Chapter 321
             1228          63B-10-301, as last amended by Laws of Utah 2001, Second Special Session, Chapter 8
             1229          63B-10-302, as enacted by Laws of Utah 2001, Chapter 239
             1230          63B-11-105, as enacted by Laws of Utah 2002, Chapter 199
             1231          63B-11-202, as last amended by Laws of Utah 2006, Chapter 169
             1232          63B-11-205, as enacted by Laws of Utah 2002, Chapter 252
             1233          63B-11-305, as enacted by Laws of Utah 2002, Chapter 278

             1234          63B-11-505, as enacted by Laws of Utah 2002, Chapter 266
             1235          63B-11-701, as enacted by Laws of Utah 2002, Chapter 199
             1236          63B-12-201, as enacted by Laws of Utah 2003, Chapter 302
             1237          63C-4-101, as last amended by Laws of Utah 2006, Chapter 14
             1238          63C-4-102, as last amended by Laws of Utah 2004, Chapter 345
             1239          63C-4-103, as last amended by Laws of Utah 2007, Chapter 303
             1240          63C-7-210, as enacted by Laws of Utah 1997, Chapter 136
             1241          63C-8-105, as last amended by Laws of Utah 2005, Chapter 157
             1242          63C-8-106, as enacted by Laws of Utah 2005, Chapter 157
             1243          63C-9-301, as last amended by Laws of Utah 2007, Chapter 322
             1244          63C-11-202, as enacted by Laws of Utah 2007, Chapter 361
             1245          63C-11-302, as renumbered and amended by Laws of Utah 2007, Chapter 361
             1246          63C-11-304, as renumbered and amended by Laws of Utah 2007, Chapter 361
             1247          63C-11-308, as renumbered and amended by Laws of Utah 2007, Chapter 361
             1248          63C-11-310, as renumbered and amended by Laws of Utah 2007, Chapter 361
             1249          63C-11-311, as renumbered and amended by Laws of Utah 2007, Chapter 361
             1250          63C-11-315, as renumbered and amended by Laws of Utah 2007, Chapter 361
             1251          63C-11-316, as renumbered and amended by Laws of Utah 2007, Chapter 361
             1252          63C-11-317, as renumbered and amended by Laws of Utah 2007, Chapter 361
             1253          63C-11-318, as renumbered and amended by Laws of Utah 2007, Chapter 361
             1254          63D-2-103, as enacted by Laws of Utah 2004, Chapter 175
             1255          63E-1-102, as last amended by Laws of Utah 2007, Chapter 329
             1256          63E-2-109, as last amended by Laws of Utah 2006, Chapter 14
             1257          63F-1-103, as enacted by Laws of Utah 2005, Chapter 169
             1258          63F-1-204, as enacted by Laws of Utah 2005, Chapter 169
             1259          63F-1-205, as last amended by Laws of Utah 2007, Chapter 306
             1260          63F-1-206, as last amended by Laws of Utah 2006, Chapter 21
             1261          63F-1-207, as last amended by Laws of Utah 2007, Chapter 117

             1262          63F-1-209, as enacted by Laws of Utah 2005, Chapter 169
             1263          63F-1-301, as enacted by Laws of Utah 2005, Chapter 169
             1264          63F-1-302, as last amended by Laws of Utah 2006, Chapter 14
             1265          63F-1-509, as last amended by Laws of Utah 2007, Chapter 257
             1266          64-9b-6, as last amended by Laws of Utah 1999, Chapter 21
             1267          64-13-10, as last amended by Laws of Utah 1994, Chapter 48
             1268          64-13-14.7, as last amended by Laws of Utah 1996, Chapter 242
             1269          64-13-17, as last amended by Laws of Utah 2004, Chapter 36
             1270          64-13-20, as last amended by Laws of Utah 1995, Chapter 352
             1271          64-13-21, as last amended by Laws of Utah 2002, Chapter 140
             1272          64-13-25, as last amended by Laws of Utah 1987, Chapter 116
             1273          64-13-38, as last amended by Laws of Utah 1997, Chapter 110
             1274          64-13-39.5, as last amended by Laws of Utah 2007, Chapter 343
             1275          64-13-41, as enacted by Laws of Utah 2000, Chapter 200
             1276          64-13a-13, as last amended by Laws of Utah 1989, Chapter 224
             1277          65A-1-4, as last amended by Laws of Utah 2007, Chapter 136
             1278          65A-8-105, as renumbered and amended by Laws of Utah 2007, Chapter 136
             1279          65A-8-207, as renumbered and amended by Laws of Utah 2007, Chapter 136
             1280          65A-8a-103, as enacted by Laws of Utah 2001, Chapter 80
             1281          67-1-2, as last amended by Laws of Utah 2004, Chapter 291
             1282          67-1a-2.5, as renumbered and amended by Laws of Utah 2001, Chapter 46
             1283          67-3-1, as last amended by Laws of Utah 2007, Chapter 329
             1284          67-4a-703, as last amended by Laws of Utah 2007, Chapter 18
             1285          67-5-15, as last amended by Laws of Utah 1992, Third Special Session, Chapter 4
             1286          67-5-18, as last amended by Laws of Utah 2002, Chapter 130
             1287          67-5a-8, as last amended by Laws of Utah 2002, Chapter 256
             1288          67-5b-107, as last amended by Laws of Utah 2005, Chapter 102
             1289          67-16-3, as last amended by Laws of Utah 1992, Chapter 280

             1290          67-16-4, as last amended by Laws of Utah 2005, Chapters 25, and 45
             1291          67-16-5, as last amended by Laws of Utah 2007, Chapter 233
             1292          67-16-5.3, as last amended by Laws of Utah 2005, Chapter 25
             1293          67-16-6, as last amended by Laws of Utah 2005, Chapter 25
             1294          67-18-5, as last amended by Laws of Utah 1991, Chapter 259
             1295          67-19-5, as last amended by Laws of Utah 2006, Chapter 139
             1296          67-19-6, as last amended by Laws of Utah 2006, Chapter 139
             1297          67-19-6.7, as last amended by Laws of Utah 2006, Chapter 139
             1298          67-19-11, as last amended by Laws of Utah 2006, Chapter 139
             1299          67-19-12.5, as last amended by Laws of Utah 2006, Chapter 139
             1300          67-19-14, as last amended by Laws of Utah 2006, Chapter 139
             1301          67-19-30, as last amended by Laws of Utah 1994, Chapter 145
             1302          67-19-31, as last amended by Laws of Utah 2006, Chapter 139
             1303          67-19-34, as last amended by Laws of Utah 2006, Chapter 139
             1304          67-19a-202, as last amended by Laws of Utah 1991, Chapters 101, and 204
             1305          67-19a-203, as enacted by Laws of Utah 1989, Chapter 191
             1306          69-2-5.6, as last amended by Laws of Utah 2007, Chapter 241
             1307          70-3a-201, as enacted by Laws of Utah 2002, Chapter 318
             1308          70-3a-203, as last amended by Laws of Utah 2007, Chapter 365
             1309          70-3a-303, as enacted by Laws of Utah 2002, Chapter 318
             1310          70A-9a-526, as enacted by Laws of Utah 2000, Chapter 252
             1311          70C-8-104, as last amended by Laws of Utah 2006, Chapter 165
             1312          70D-1-14, as last amended by Laws of Utah 2006, Chapter 165
             1313          70D-1-16, as enacted by Laws of Utah 1990, Chapter 172
             1314          70D-1-17, as enacted by Laws of Utah 1990, Chapter 172
             1315          71-7-3, as last amended by Laws of Utah 2007, Chapter 173
             1316          71-8-2, as last amended by Laws of Utah 2007, Chapter 173
             1317          71-11-5, as last amended by Laws of Utah 2007, Chapter 173

             1318          72-1-201, as last amended by Laws of Utah 1999, Chapter 325
             1319          72-1-211, as enacted by Laws of Utah 2005, Chapter 245
             1320          72-1-303, as last amended by Laws of Utah 2007, Chapter 329
             1321          72-1-304, as enacted by Laws of Utah 2005, Chapter 245
             1322          72-2-109, as renumbered and amended by Laws of Utah 1998, Chapter 270
             1323          72-2-111, as renumbered and amended by Laws of Utah 1998, Chapter 270
             1324          72-2-113, as renumbered and amended by Laws of Utah 1998, Chapter 270
             1325          72-2-117, as last amended by Laws of Utah 2007, Chapter 201
             1326          72-2-122, as enacted by Laws of Utah 2002, Chapter 98
             1327          72-2-123, as enacted by Laws of Utah 2004, Chapter 8
             1328          72-2-202, as renumbered and amended by Laws of Utah 1998, Chapter 270
             1329          72-2-203, as renumbered and amended by Laws of Utah 1998, Chapter 270
             1330          72-2-204, as last amended by Laws of Utah 2005, Chapter 105
             1331          72-3-109, as last amended by Laws of Utah 2001, Chapter 61
             1332          72-3-207, as last amended by Laws of Utah 2007, Chapter 126
             1333          72-4-102, as last amended by Laws of Utah 2006, Chapter 20
             1334          72-4-102.5, as last amended by Laws of Utah 2005, Chapter 245
             1335          72-4-303, as enacted by Laws of Utah 2004, Chapter 172
             1336          72-5-203, as last amended by Laws of Utah 2003, Chapter 192
             1337          72-5-306, as last amended by Laws of Utah 2005, Chapter 102
             1338          72-5-309, as last amended by Laws of Utah 2006, Chapter 9
             1339          72-5-405, as enacted by Laws of Utah 2000, Chapter 34
             1340          72-5-406, as enacted by Laws of Utah 2000, Chapter 34
             1341          72-6-107, as last amended by Laws of Utah 2005, Chapter 25
             1342          72-6-108, as last amended by Laws of Utah 1999, Chapter 365
             1343          72-6-111, as last amended by Laws of Utah 1998, Chapter 335 and renumbered and
             1344      amended by Laws of Utah 1998, Chapter 270
             1345          72-6-116, as last amended by Laws of Utah 2000, Chapter 347

             1346          72-6-118, as last amended by Laws of Utah 2006, Chapter 36
             1347          72-6-119, as enacted by Laws of Utah 2001, Chapter 51
             1348          72-6-120, as enacted by Laws of Utah 2007, Chapter 333
             1349          72-6-204, as enacted by Laws of Utah 2006, Chapter 36
             1350          72-6-205, as enacted by Laws of Utah 2006, Chapter 36
             1351          72-7-102, as last amended by Laws of Utah 2003, Chapter 253
             1352          72-7-104, as renumbered and amended by Laws of Utah 1998, Chapter 270
             1353          72-7-107, as last amended by Laws of Utah 2005, Chapter 2
             1354          72-7-108, as last amended by Laws of Utah 2003, Chapter 253
             1355          72-7-203, as renumbered and amended by Laws of Utah 1998, Chapter 270
             1356          72-7-205, as renumbered and amended by Laws of Utah 1998, Chapter 270
             1357          72-7-206, as last amended by Laws of Utah 2004, Chapter 352
             1358          72-7-207, as last amended by Laws of Utah 2004, Chapter 352
             1359          72-7-209, as renumbered and amended by Laws of Utah 1998, Chapter 270
             1360          72-7-402, as last amended by Laws of Utah 2002, Chapter 151
             1361          72-7-406, as last amended by Laws of Utah 2006, Chapter 212
             1362          72-7-407, as last amended by Laws of Utah 2005, Chapter 2
             1363          72-7-504, as last amended by Laws of Utah 2005, Chapter 148
             1364          72-7-506, as renumbered and amended by Laws of Utah 1998, Chapter 270
             1365          72-7-507, as renumbered and amended by Laws of Utah 1998, Chapter 270
             1366          72-7-508, as last amended by Laws of Utah 2006, Chapter 45
             1367          72-9-103, as renumbered and amended by Laws of Utah 1998, Chapter 270
             1368          72-9-502, as last amended by Laws of Utah 2005, Chapter 161
             1369          72-9-602, as last amended by Laws of Utah 2005, Chapter 2
             1370          72-9-603, as last amended by Laws of Utah 2005, Chapter 2
             1371          72-10-103, as last amended by Laws of Utah 1998, Chapter 365 and renumbered and
             1372      amended by Laws of Utah 1998, Chapter 270
             1373          72-10-107, as renumbered and amended by Laws of Utah 1998, Chapter 270

             1374          72-10-116, as last amended by Laws of Utah 1998, Chapter 365 and renumbered and
             1375      amended by Laws of Utah 1998, Chapter 270
             1376          72-10-117, as last amended by Laws of Utah 1998, Chapter 365 and renumbered and
             1377      amended by Laws of Utah 1998, Chapter 270
             1378          72-11-203, as renumbered and amended by Laws of Utah 1999, Chapter 195
             1379          72-11-208, as renumbered and amended by Laws of Utah 1999, Chapter 195
             1380          72-11-210, as renumbered and amended by Laws of Utah 1999, Chapter 195
             1381          73-1-4, as last amended by Laws of Utah 2007, Chapters 136, and 329
             1382          73-2-1, as last amended by Laws of Utah 2007, Chapter 329
             1383          73-2-1.5, as last amended by Laws of Utah 2005, Chapter 33
             1384          73-2-14, as last amended by Laws of Utah 2007, Chapter 314
             1385          73-2-25, as last amended by Laws of Utah 2007, Chapter 136
             1386          73-3-14, as last amended by Laws of Utah 1987, Chapter 161
             1387          73-3-25, as last amended by Laws of Utah 2004, Chapter 191
             1388          73-3-29, as last amended by Laws of Utah 2005, Chapter 215
             1389          73-3a-104, as enacted by Laws of Utah 1991, Chapter 234
             1390          73-3a-105, as enacted by Laws of Utah 1991, Chapter 234
             1391          73-3b-104, as enacted by Laws of Utah 1991, Chapter 146
             1392          73-3b-105, as enacted by Laws of Utah 1991, Chapter 146
             1393          73-3b-201, as last amended by Laws of Utah 1995, Chapter 28
             1394          73-3b-204, as last amended by Laws of Utah 1995, Chapter 28
             1395          73-3b-302, as last amended by Laws of Utah 1995, Chapter 28
             1396          73-3c-301, as enacted by Laws of Utah 2006, Chapter 179
             1397          73-3c-302, as enacted by Laws of Utah 2006, Chapter 179
             1398          73-5-15, as last amended by Laws of Utah 2007, Chapters 179, and 329
             1399          73-10-27, as last amended by Laws of Utah 2005, Chapter 25
             1400          73-10c-4.1, as enacted by Laws of Utah 2001, Chapter 12
             1401          73-10c-4.2, as enacted by Laws of Utah 2001, Chapter 12

             1402          73-10c-4.5, as last amended by Laws of Utah 2007, Chapter 142
             1403          73-10c-8, as last amended by Laws of Utah 1991, Chapter 112
             1404          73-10c-10, as enacted by Laws of Utah 2007, Chapter 142
             1405          73-18-4, as last amended by Laws of Utah 1998, Chapter 205
             1406          73-18-7, as last amended by Laws of Utah 2007, Chapter 15
             1407          73-18-13.5, as last amended by Laws of Utah 2006, Chapter 211
             1408          73-18-19, as last amended by Laws of Utah 1987, Chapter 99
             1409          73-18-25, as last amended by Laws of Utah 2007, Chapter 281
             1410          73-18a-4, as last amended by Laws of Utah 1991, Chapter 112
             1411          73-18a-5, as last amended by Laws of Utah 1991, Chapter 112
             1412          73-18a-12, as last amended by Laws of Utah 1991, Chapter 112
             1413          73-18c-201, as enacted by Laws of Utah 1997, Chapter 348
             1414          73-18c-306, as last amended by Laws of Utah 2006, Chapter 211
             1415          73-22-5, as last amended by Laws of Utah 1987, Chapter 161
             1416          73-23-3, as enacted by Laws of Utah 1986, Second Special Session, Chapter 6
             1417          73-26-402, as enacted by Laws of Utah 1991, Chapter 251
             1418          73-26-403, as last amended by Laws of Utah 2005, Chapter 102
             1419          73-28-104, as enacted by Laws of Utah 2006, Chapter 216
             1420          73-28-404, as enacted by Laws of Utah 2006, Chapter 216
             1421          75-2a-106, as enacted by Laws of Utah 2007, Chapter 31
             1422          76-6-513, as last amended by Laws of Utah 2004, Chapter 267
             1423          76-7-317.1, as enacted by Laws of Utah 1991, Chapter 288
             1424          76-8-311.3, as last amended by Laws of Utah 2004, Chapters 36, and 280
             1425          76-8-317, as enacted by Laws of Utah 2006, Chapter 286
             1426          76-8-1101, as last amended by Laws of Utah 2004, Chapter 67
             1427          76-10-526, as last amended by Laws of Utah 2004, Chapter 360
             1428          76-10-1209, as last amended by Laws of Utah 1995, Chapter 28
             1429          76-10-1231, as last amended by Laws of Utah 2007, Chapter 337

             1430          76-10-1234, as enacted by Laws of Utah 2007, Chapter 322
             1431          76-10-1311, as last amended by Laws of Utah 2005, Chapter 102
             1432          76-10-1602, as last amended by Laws of Utah 2007, Chapter 129
             1433          77-2-4.2, as last amended by Laws of Utah 2006, Chapter 315
             1434          77-2a-3, as last amended by Laws of Utah 2006, Chapter 341
             1435          77-10a-5, as repealed and reenacted by Laws of Utah 1994, Chapter 218
             1436          77-18-1, as last amended by Laws of Utah 2007, Chapter 218
             1437          77-18-11, as last amended by Laws of Utah 2004, Chapter 228
             1438          77-18-15, as last amended by Laws of Utah 1999, Chapter 227
             1439          77-19-6, as last amended by Laws of Utah 2004, Chapters 6, and 51
             1440          77-19-9, as last amended by Laws of Utah 2004, Chapter 6
             1441          77-19-202, as last amended by Laws of Utah 2004, Chapter 6 and renumbered and
             1442      amended by Laws of Utah 2004, Chapter 137
             1443          77-22-2, as last amended by Laws of Utah 2000, Chapter 223
             1444          77-27-7, as last amended by Laws of Utah 2001, First Special Session, Chapter 4
             1445          77-27-9, as last amended by Laws of Utah 2007, Chapter 218
             1446          77-27-10, as last amended by Laws of Utah 1996, Chapter 100
             1447          77-27-21.5, as last amended by Laws of Utah 2007, Chapter 337
             1448          77-28c-104, as enacted by Laws of Utah 2004, Chapter 239
             1449          77-37-3, as last amended by Laws of Utah 2005, Chapter 13
             1450          77-37-5, as last amended by Laws of Utah 2007, Chapter 300
             1451          77-38-3, as last amended by Laws of Utah 2003, Chapter 171
             1452          77-38a-401, as enacted by Laws of Utah 2001, Chapter 137
             1453          78-2-2, as last amended by Laws of Utah 2001, Chapter 302
             1454          78-2a-3, as last amended by Laws of Utah 2001, Chapters 255, and 302
             1455          78-2a-6, as last amended by Laws of Utah 2005, Chapter 102
             1456          78-3-4, as last amended by Laws of Utah 2004, Chapter 201
             1457          78-3-24.1, as enacted by Laws of Utah 2005, First Special Session, Chapter 4

             1458          78-3a-104, as last amended by Laws of Utah 2006, Chapters 55, 132, and 281
             1459          78-3a-113, as last amended by Laws of Utah 2006, Chapter 281
             1460          78-3a-114, as last amended by Laws of Utah 2006, Chapter 281
             1461          78-3a-116, as last amended by Laws of Utah 2006, Chapters 55, and 281
             1462          78-3a-118, as last amended by Laws of Utah 2006, Chapters 75, and 281
             1463          78-3a-504, as last amended by Laws of Utah 2005, Chapter 156
             1464          78-3a-505, as repealed and reenacted by Laws of Utah 1997, Chapter 365
             1465          78-3a-904, as last amended by Laws of Utah 2006, Chapter 281
             1466          78-3a-912, as last amended by Laws of Utah 2006, Chapter 281
             1467          78-3g-102, as last amended by Laws of Utah 2003, Chapter 94
             1468          78-5-116, as last amended by Laws of Utah 2004, Chapters 273, and 349
             1469          78-5-116.5, as enacted by Laws of Utah 2004, Chapter 301
             1470          78-6-14, as last amended by Laws of Utah 2001, Chapter 46
             1471          78-7-35, as last amended by Laws of Utah 2007, Chapters 301, and 326
             1472          78-8-107, as last amended by Laws of Utah 2006, Chapter 34
             1473          78-12-29, as last amended by Laws of Utah 2006, Chapter 274
             1474          78-14-12, as last amended by Laws of Utah 2002, Chapter 256
             1475          78-17-3, as last amended by Laws of Utah 2004, Chapter 267
             1476          78-19-1, as last amended by Laws of Utah 2004, Chapter 267
             1477          78-27-37, as last amended by Laws of Utah 2005, Chapter 102
             1478          78-27-43, as last amended by Laws of Utah 2005, Chapter 102
             1479          78-27a-6, as enacted by Laws of Utah 1983, Chapter 298
             1480          78-31b-8, as last amended by Laws of Utah 2004, Chapter 90
             1481          78-31c-106, as enacted by Laws of Utah 2006, Chapter 33
             1482          78-31c-108, as enacted by Laws of Utah 2006, Chapter 33
             1483          78-32-17, as last amended by Laws of Utah 2001, Chapter 255
             1484          78-35a-202, as enacted by Laws of Utah 1997, Chapter 76
             1485          78-45-7.3, as last amended by Laws of Utah 2000, Chapter 161

             1486          78-45g-104, as enacted by Laws of Utah 2005, Chapter 150
             1487          78-45g-313, as enacted by Laws of Utah 2005, Chapter 150
             1488          78-45g-407, as enacted by Laws of Utah 2005, Chapter 150
             1489          78-45g-511, as enacted by Laws of Utah 2005, Chapter 150
             1490          78-45g-601, as enacted by Laws of Utah 2005, Chapter 150
             1491          78-57-108, as enacted by Laws of Utah 1999, Chapter 94
             1492          78-61-101, as enacted by Laws of Utah 2004, Chapter 368
             1493      ENACTS:
             1494          51-9-101, Utah Code Annotated 1953
             1495          52-6-101, Utah Code Annotated 1953
             1496          52-7-101, Utah Code Annotated 1953
             1497          63G-1-101, Utah Code Annotated 1953
             1498          63G-6-101, Utah Code Annotated 1953
             1499          63G-8-101, Utah Code Annotated 1953
             1500          63G-9-101, Utah Code Annotated 1953
             1501          63G-10-101, Utah Code Annotated 1953
             1502          63I-2-101, Utah Code Annotated 1953
             1503          63I-4-101, Utah Code Annotated 1953
             1504          63J-5-101, Utah Code Annotated 1953
             1505          63J-6-101, Utah Code Annotated 1953
             1506          63K-2-101, Utah Code Annotated 1953
             1507          63K-3-101, Utah Code Annotated 1953
             1508          63K-4-101, Utah Code Annotated 1953
             1509          63L-1-101, Utah Code Annotated 1953
             1510          63L-2-101, Utah Code Annotated 1953
             1511          63L-4-101, Utah Code Annotated 1953
             1512          63M-3-101, Utah Code Annotated 1953
             1513          63M-5-101, Utah Code Annotated 1953

             1514          63M-6-101, Utah Code Annotated 1953
             1515          63M-7-101, Utah Code Annotated 1953
             1516          63M-8-101, Utah Code Annotated 1953
             1517      RENUMBERS AND AMENDS:
             1518          19-11-101, (Renumbered from 63-41-1, as enacted by Laws of Utah 1969, First Special
             1519      Session, Chapter 6)
             1520          19-11-102, (Renumbered from 63-41-2, as enacted by Laws of Utah 1969, First Special
             1521      Session, Chapter 6)
             1522          19-11-201, (Renumbered from 63-41-3, as enacted by Laws of Utah 1969, First Special
             1523      Session, Chapter 6)
             1524          19-11-301, (Renumbered from 63-41-4, as last amended by Laws of Utah 1979,
             1525      Chapter 220)
             1526          19-11-302, (Renumbered from 63-41-5, as last amended by Laws of Utah 1984,
             1527      Chapter 67)
             1528          19-11-401, (Renumbered from 63-41-6, as enacted by Laws of Utah 1969, First Special
             1529      Session, Chapter 6)
             1530          51-7-3.5, (Renumbered from 63-13-1, Utah Code Annotated 1953)
             1531          51-9-201, (Renumbered from 63-97-201, as last amended by Laws of Utah 2005,
             1532      Chapter 275)
             1533          51-9-202, (Renumbered from 63-97-301, as last amended by Laws of Utah 2007,
             1534      Chapter 384)
             1535          51-9-203, (Renumbered from 63-97-401, as last amended by Laws of Utah 2002,
             1536      Chapter 119)
             1537          51-9-301, (Renumbered from 63-97a-101, as enacted by Laws of Utah 2007, Chapter
             1538      384)
             1539          51-9-302, (Renumbered from 63-97a-102, as enacted by Laws of Utah 2007, Chapter
             1540      384)
             1541          51-9-303, (Renumbered from 63-97a-201, as enacted by Laws of Utah 2007, Chapter

             1542      384)
             1543          51-9-304, (Renumbered from 63-97a-202, as enacted by Laws of Utah 2007, Chapter
             1544      384)
             1545          51-9-401, (Renumbered from 63-63a-1, as last amended by Laws of Utah 2005, Chapter
             1546      2)
             1547          51-9-402, (Renumbered from 63-63a-2, as last amended by Laws of Utah 2007, Chapter
             1548      330)
             1549          51-9-403, (Renumbered from 63-63a-3, as last amended by Laws of Utah 1999, Chapter
             1550      141)
             1551          51-9-404, (Renumbered from 63-63a-4, as last amended by Laws of Utah 2002, Fifth
             1552      Special Session, Chapter 12)
             1553          51-9-405, (Renumbered from 63-63a-5, as last amended by Laws of Utah 1998, Chapter
             1554      171)
             1555          51-9-406, (Renumbered from 63-63a-6, as last amended by Laws of Utah 1993, Chapter
             1556      156)
             1557          51-9-407, (Renumbered from 63-63a-7, as last amended by Laws of Utah 2002, Fifth
             1558      Special Session, Chapter 8)
             1559          51-9-408, (Renumbered from 63-63a-8, as last amended by Laws of Utah 2007, Chapter
             1560      326)
             1561          51-9-409, (Renumbered from 63-63a-8.5, as enacted by Laws of Utah 1997, Chapter
             1562      194)
             1563          51-9-410, (Renumbered from 63-63a-9, as last amended by Laws of Utah 1998, Chapter
             1564      263)
             1565          51-9-411, (Renumbered from 63-63a-10, as enacted by Laws of Utah 2007, Chapter
             1566      330)
             1567          51-9-501, (Renumbered from 63-88-101, as last amended by Laws of Utah 2000,
             1568      Chapter 281)
             1569          51-9-502, (Renumbered from 63-88-102, as last amended by Laws of Utah 2001,

             1570      Chapter 175)
             1571          51-9-503, (Renumbered from 63-88-103, as last amended by Laws of Utah 2005,
             1572      Chapter 258)
             1573          51-9-504, (Renumbered from 63-88-104, as last amended by Laws of Utah 1993,
             1574      Chapter 4)
             1575          51-9-505, (Renumbered from 63-88-105, as last amended by Laws of Utah 2000,
             1576      Chapter 281)
             1577          51-9-506, (Renumbered from 63-88-106, as last amended by Laws of Utah 2000,
             1578      Chapter 281)
             1579          51-9-507, (Renumbered from 63-88-107, as last amended by Laws of Utah 2006,
             1580      Chapters 14, and 296)
             1581          51-9-601, (Renumbered from 63-12-1, Utah Code Annotated 1953)
             1582          51-9-602, (Renumbered from 63-12-2, Utah Code Annotated 1953)
             1583          51-9-603, (Renumbered from 63-12-4, as last amended by Laws of Utah 1993, Chapter
             1584      227)
             1585          52-6-102, (Renumbered from 63-30a-1, as enacted by Laws of Utah 1977, Chapter 245)
             1586          52-6-201, (Renumbered from 63-30a-2, as last amended by Laws of Utah 1998, Chapter
             1587      307)
             1588          52-6-202, (Renumbered from 63-30a-3, as last amended by Laws of Utah 2004, Chapter
             1589      267)
             1590          52-7-102, (Renumbered from 63-30c-1, as last amended by Laws of Utah 1996, Chapter
             1591      198)
             1592          52-7-201, (Renumbered from 63-30c-2, as enacted by Laws of Utah 1987, First Special
             1593      Session, Chapter 19)
             1594          52-7-202, (Renumbered from 63-30c-3, as enacted by Laws of Utah 1987, First Special
             1595      Session, Chapter 19)
             1596          52-7-203, (Renumbered from 63-30c-4, as enacted by Laws of Utah 1987, First Special
             1597      Session, Chapter 19)

             1598          52-7-204, (Renumbered from 63-30c-5, as enacted by Laws of Utah 1987, First Special
             1599      Session, Chapter 19)
             1600          52-7-301, (Renumbered from 63-30c-6, as enacted by Laws of Utah 1987, First Special
             1601      Session, Chapter 19)
             1602          52-8-101, (Renumbered from 63-93-101, as enacted by Laws of Utah 1997, Chapter
             1603      256)
             1604          52-8-102, (Renumbered from 63-93-102, as last amended by Laws of Utah 2007,
             1605      Chapter 329)
             1606          52-8-201, (Renumbered from 63-93-201, as last amended by Laws of Utah 1998,
             1607      Chapter 310)
             1608          52-8-202, (Renumbered from 63-93-202, as last amended by Laws of Utah 1998,
             1609      Chapter 310)
             1610          52-9-101, (Renumbered from 63-96-101, as enacted by Laws of Utah 1998, Chapter
             1611      341)
             1612          52-9-102, (Renumbered from 63-96-102, as last amended by Laws of Utah 2007,
             1613      Chapter 329)
             1614          52-9-201, (Renumbered from 63-96-103, as last amended by Laws of Utah 1999,
             1615      Chapter 45)
             1616          53-5a-101, (Renumbered from 63-98-101, as enacted by Laws of Utah 2004, Chapter
             1617      264)
             1618          53-5a-102, (Renumbered from 63-98-102, as enacted by Laws of Utah 2004, Chapter
             1619      264)
             1620          53-15-101, (Renumbered from 63-94-101, as enacted by Laws of Utah 1997, Chapter
             1621      320)
             1622          53-15-102, (Renumbered from 63-94-102, as enacted by Laws of Utah 1997, Chapter
             1623      320)
             1624          53-15-201, (Renumbered from 63-94-103, as enacted by Laws of Utah 1997, Chapter
             1625      320)

             1626          53-15-202, (Renumbered from 63-94-104, as enacted by Laws of Utah 1997, Chapter
             1627      320)
             1628          63A-5-501, (Renumbered from 63-9-21, as enacted by Laws of Utah 1965, Chapter
             1629      146)
             1630          63A-5-502, (Renumbered from 63-9-22, as enacted by Laws of Utah 1965, Chapter
             1631      146)
             1632          63A-5-601, (Renumbered from 63-9-63, as last amended by Laws of Utah 2006,
             1633      Chapter 278)
             1634          63A-5-701, (Renumbered from 63-9-67, as last amended by Laws of Utah 2006,
             1635      Chapter 278)
             1636          63A-5-801, (Renumbered from 63-9-68, as enacted by Laws of Utah 2007, Chapter
             1637      118)
             1638          63A-12-101, (Renumbered from 63-2-901, as last amended by Laws of Utah 2007,
             1639      Chapter 249)
             1640          63A-12-102, (Renumbered from 63-2-902, as last amended by Laws of Utah 1996,
             1641      Chapter 31)
             1642          63A-12-103, (Renumbered from 63-2-903, as last amended by Laws of Utah 2006,
             1643      Chapter 300)
             1644          63A-12-104, (Renumbered from 63-2-904, as last amended by Laws of Utah 1992,
             1645      Chapter 280)
             1646          63A-12-105, (Renumbered from 63-2-905, as last amended by Laws of Utah 1994,
             1647      Chapter 99)
             1648          63A-12-106, (Renumbered from 63-2-906, as last amended by Laws of Utah 1992,
             1649      Chapter 280)
             1650          63A-12-107, (Renumbered from 63-2-907, as enacted by Laws of Utah 1991, Chapter
             1651      259)
             1652          63A-12-108, (Renumbered from 63-2-908, as last amended by Laws of Utah 1997,
             1653      Chapter 135)

             1654          63B-1b-101, (Renumbered from 63-65-1, as enacted by Laws of Utah 1986, Chapter
             1655      35)
             1656          63B-1b-102, (Renumbered from 63-65-2, as last amended by Laws of Utah 2007,
             1657      Chapter 306)
             1658          63B-1b-201, (Renumbered from 63-65-3, as last amended by Laws of Utah 2003,
             1659      Chapter 313)
             1660          63B-1b-202, (Renumbered from 63-65-4, as last amended by Laws of Utah 2005,
             1661      Chapters 151, and 200)
             1662          63B-1b-301, (Renumbered from 63-65-5, as last amended by Laws of Utah 2003,
             1663      Chapter 313)
             1664          63B-1b-302, (Renumbered from 63-65-6, as last amended by Laws of Utah 2003,
             1665      Chapter 313)
             1666          63B-1b-401, (Renumbered from 63-65-7, as last amended by Laws of Utah 2003,
             1667      Chapter 313)
             1668          63B-1b-402, (Renumbered from 63-65-8, as last amended by Laws of Utah 2003,
             1669      Chapter 313)
             1670          63B-1b-501, (Renumbered from 63-65-8.1, as enacted by Laws of Utah 2003, Chapter
             1671      313)
             1672          63B-1b-601, (Renumbered from 63-65-8.2, as last amended by Laws of Utah 2004,
             1673      Chapter 25)
             1674          63B-1b-701, (Renumbered from 63-65-9, as last amended by Laws of Utah 2003,
             1675      Chapter 313)
             1676          63G-1-201, (Renumbered from 63-13-1.5, as enacted by Statewide Initiative A, Nov. 7,
             1677      2000)
             1678          63G-1-301, (Renumbered from 63-13-2, as last amended by Laws of Utah 2006,
             1679      Chapter 139)
             1680          63G-1-401, (Renumbered from 63-13-5.6, as last amended by Laws of Utah 2007,
             1681      Chapters 16, and 173)

             1682          63G-1-501, (Renumbered from 63-13-5, Utah Code Annotated 1953)
             1683          63G-1-601, (Renumbered from 63-13-5.5, as last amended by Laws of Utah 2003,
             1684      Chapter 152)
             1685          63G-2-101, (Renumbered from 63-2-101, as enacted by Laws of Utah 1991, Chapter
             1686      259)
             1687          63G-2-102, (Renumbered from 63-2-102, as last amended by Laws of Utah 1992,
             1688      Chapter 280)
             1689          63G-2-103, (Renumbered from 63-2-103, as last amended by Laws of Utah 2007,
             1690      Chapter 329)
             1691          63G-2-104, (Renumbered from 63-2-104, as last amended by Laws of Utah 1992,
             1692      Chapter 280)
             1693          63G-2-105, (Renumbered from 63-2-105, as enacted by Laws of Utah 1992, Chapter
             1694      280)
             1695          63G-2-106, (Renumbered from 63-2-106, as enacted by Laws of Utah 2002, Chapter
             1696      166)
             1697          63G-2-107, (Renumbered from 63-2-107, as enacted by Laws of Utah 2003, Chapter
             1698      64)
             1699          63G-2-201, (Renumbered from 63-2-201, as last amended by Laws of Utah 2006,
             1700      Chapter 174)
             1701          63G-2-202, (Renumbered from 63-2-202, as last amended by Laws of Utah 2005,
             1702      Chapter 201)
             1703          63G-2-203, (Renumbered from 63-2-203, as last amended by Laws of Utah 2006,
             1704      Chapter 174)
             1705          63G-2-204, (Renumbered from 63-2-204, as last amended by Laws of Utah 2006,
             1706      Chapter 64)
             1707          63G-2-205, (Renumbered from 63-2-205, as last amended by Laws of Utah 1992,
             1708      Chapter 280)
             1709          63G-2-206, (Renumbered from 63-2-206, as last amended by Laws of Utah 2006,

             1710      Chapter 174)
             1711          63G-2-207, (Renumbered from 63-2-207, as last amended by Laws of Utah 1998,
             1712      Chapter 303)
             1713          63G-2-301, (Renumbered from 63-2-301, as last amended by Laws of Utah 2006,
             1714      Chapters 2, and 14)
             1715          63G-2-302, (Renumbered from 63-2-302, as last amended by Laws of Utah 2006,
             1716      Chapter 2)
             1717          63G-2-303, (Renumbered from 63-2-302.5, as last amended by Laws of Utah 2003,
             1718      Chapter 216)
             1719          63G-2-304, (Renumbered from 63-2-303, as last amended by Laws of Utah 1992,
             1720      Chapter 280)
             1721          63G-2-305, (Renumbered from 63-2-304, as last amended by Laws of Utah 2007,
             1722      Chapters 66, and 352)
             1723          63G-2-306, (Renumbered from 63-2-305, as last amended by Laws of Utah 1992,
             1724      Chapter 280)
             1725          63G-2-307, (Renumbered from 63-2-306, as last amended by Laws of Utah 1992,
             1726      Chapter 280)
             1727          63G-2-308, (Renumbered from 63-2-307, as last amended by Laws of Utah 1992,
             1728      Chapter 280)
             1729          63G-2-309, (Renumbered from 63-2-308, as last amended by Laws of Utah 2005,
             1730      Chapter 201)
             1731          63G-2-310, (Renumbered from 63-2-909, as last amended by Laws of Utah 1995,
             1732      Chapter 198)
             1733          63G-2-401, (Renumbered from 63-2-401, as last amended by Laws of Utah 1992,
             1734      Chapter 280)
             1735          63G-2-402, (Renumbered from 63-2-402, as last amended by Laws of Utah 1992,
             1736      Chapter 280)
             1737          63G-2-403, (Renumbered from 63-2-403, as last amended by Laws of Utah 2006,

             1738      Chapter 284)
             1739          63G-2-404, (Renumbered from 63-2-404, as last amended by Laws of Utah 1995,
             1740      Chapter 133)
             1741          63G-2-405, (Renumbered from 63-2-405, as enacted by Laws of Utah 1992, Chapter
             1742      280)
             1743          63G-2-501, (Renumbered from 63-2-501, as last amended by Laws of Utah 2003,
             1744      Chapter 153)
             1745          63G-2-502, (Renumbered from 63-2-502, as last amended by Laws of Utah 1995,
             1746      Chapter 133)
             1747          63G-2-601, (Renumbered from 63-2-601, as last amended by Laws of Utah 2006,
             1748      Chapter 261)
             1749          63G-2-602, (Renumbered from 63-2-602, as last amended by Laws of Utah 1992,
             1750      Chapter 280)
             1751          63G-2-603, (Renumbered from 63-2-603, as last amended by Laws of Utah 1992,
             1752      Chapter 280)
             1753          63G-2-604, (Renumbered from 63-2-604, as enacted by Laws of Utah 2006, Chapter
             1754      261)
             1755          63G-2-701, (Renumbered from 63-2-701, as last amended by Laws of Utah 1994,
             1756      Chapter 99)
             1757          63G-2-702, (Renumbered from 63-2-702, as last amended by Laws of Utah 2006,
             1758      Chapter 261)
             1759          63G-2-703, (Renumbered from 63-2-703, as last amended by Laws of Utah 2006,
             1760      Chapter 261)
             1761          63G-2-801, (Renumbered from 63-2-801, as last amended by Laws of Utah 2006,
             1762      Chapter 174)
             1763          63G-2-802, (Renumbered from 63-2-802, as last amended by Laws of Utah 2005,
             1764      Chapter 102)
             1765          63G-2-803, (Renumbered from 63-2-803, as last amended by Laws of Utah 2002,

             1766      Chapter 191)
             1767          63G-2-804, (Renumbered from 63-2-804, as enacted by Laws of Utah 1992, Chapter
             1768      280)
             1769          63G-2-901, (Renumbered from 63-2-1001, as enacted by Laws of Utah 2001, Chapter
             1770      254)
             1771          63G-3-101, (Renumbered from 63-46a-1, as enacted by Laws of Utah 1985, Chapter
             1772      158)
             1773          63G-3-102, (Renumbered from 63-46a-2, as last amended by Laws of Utah 2007,
             1774      Chapter 102)
             1775          63G-3-201, (Renumbered from 63-46a-3, as last amended by Laws of Utah 2001,
             1776      Chapter 138)
             1777          63G-3-202, (Renumbered from 63-46a-3.5, as enacted by Laws of Utah 2003, Chapter
             1778      197)
             1779          63G-3-301, (Renumbered from 63-46a-4, as last amended by Laws of Utah 2007,
             1780      Chapters 102, and 168)
             1781          63G-3-302, (Renumbered from 63-46a-5, as last amended by Laws of Utah 1987,
             1782      Chapter 241)
             1783          63G-3-303, (Renumbered from 63-46a-6, as last amended by Laws of Utah 2001,
             1784      Chapter 138)
             1785          63G-3-304, (Renumbered from 63-46a-7, as last amended by Laws of Utah 2005,
             1786      Chapter 48)
             1787          63G-3-305, (Renumbered from 63-46a-9, as last amended by Laws of Utah 1998,
             1788      Chapters 13, and 332)
             1789          63G-3-401, (Renumbered from 63-46a-9.5, as enacted by Laws of Utah 1987, Chapter
             1790      241)
             1791          63G-3-402, (Renumbered from 63-46a-10, as last amended by Laws of Utah 2001,
             1792      Chapter 138)
             1793          63G-3-403, (Renumbered from 63-46a-10.5, as last amended by Laws of Utah 2005,

             1794      Chapter 48)
             1795          63G-3-501, (Renumbered from 63-46a-11, as last amended by Laws of Utah 2002,
             1796      Chapter 185)
             1797          63G-3-502, (Renumbered from 63-46a-11.5, as last amended by Laws of Utah 1998,
             1798      Chapter 332)
             1799          63G-3-601, (Renumbered from 63-46a-12, as last amended by Laws of Utah 2006,
             1800      Chapter 141)
             1801          63G-3-602, (Renumbered from 63-46a-12.1, as last amended by Laws of Utah 2001,
             1802      Chapter 138)
             1803          63G-3-603, (Renumbered from 63-46a-14, as last amended by Laws of Utah 1998,
             1804      Chapter 332)
             1805          63G-3-701, (Renumbered from 63-46a-16, as last amended by Laws of Utah 1992,
             1806      Chapter 261)
             1807          63G-3-702, (Renumbered from 63-46a-9.6, as enacted by Laws of Utah 1996, Chapter
             1808      60)
             1809          63G-4-101, (Renumbered from 63-46b-0.5, as enacted by Laws of Utah 1991, Chapter
             1810      87)
             1811          63G-4-102, (Renumbered from 63-46b-1, as last amended by Laws of Utah 2006,
             1812      Chapter 187)
             1813          63G-4-103, (Renumbered from 63-46b-2, as last amended by Laws of Utah 1988,
             1814      Chapter 169)
             1815          63G-4-104, (Renumbered from 63-46b-2.1, as enacted by Laws of Utah 2004, Chapter
             1816      344)
             1817          63G-4-105, (Renumbered from 63-46b-22, as last amended by Laws of Utah 1991,
             1818      Chapter 5)
             1819          63G-4-201, (Renumbered from 63-46b-3, as last amended by Laws of Utah 2007,
             1820      Chapter 306)
             1821          63G-4-202, (Renumbered from 63-46b-4, as enacted by Laws of Utah 1987, Chapter

             1822      161)
             1823          63G-4-203, (Renumbered from 63-46b-5, as last amended by Laws of Utah 1988,
             1824      Chapter 72)
             1825          63G-4-204, (Renumbered from 63-46b-6, as last amended by Laws of Utah 2001,
             1826      Chapter 138)
             1827          63G-4-205, (Renumbered from 63-46b-7, as enacted by Laws of Utah 1987, Chapter
             1828      161)
             1829          63G-4-206, (Renumbered from 63-46b-8, as last amended by Laws of Utah 2007,
             1830      Chapter 306)
             1831          63G-4-207, (Renumbered from 63-46b-9, as last amended by Laws of Utah 2001,
             1832      Chapter 138)
             1833          63G-4-208, (Renumbered from 63-46b-10, as last amended by Laws of Utah 2001,
             1834      Chapter 138)
             1835          63G-4-209, (Renumbered from 63-46b-11, as last amended by Laws of Utah 1988,
             1836      Chapter 72)
             1837          63G-4-301, (Renumbered from 63-46b-12, as last amended by Laws of Utah 2001,
             1838      Chapter 138)
             1839          63G-4-302, (Renumbered from 63-46b-13, as last amended by Laws of Utah 2001,
             1840      Chapter 138)
             1841          63G-4-401, (Renumbered from 63-46b-14, as last amended by Laws of Utah 1988,
             1842      Chapter 72)
             1843          63G-4-402, (Renumbered from 63-46b-15, as last amended by Laws of Utah 2001,
             1844      Chapters 120, and 138)
             1845          63G-4-403, (Renumbered from 63-46b-16, as last amended by Laws of Utah 1988,
             1846      Chapter 72)
             1847          63G-4-404, (Renumbered from 63-46b-17, as enacted by Laws of Utah 1987, Chapter
             1848      161)
             1849          63G-4-405, (Renumbered from 63-46b-18, as enacted by Laws of Utah 1987, Chapter

             1850      161)
             1851          63G-4-501, (Renumbered from 63-46b-19, as enacted by Laws of Utah 1987, Chapter
             1852      161)
             1853          63G-4-502, (Renumbered from 63-46b-20, as enacted by Laws of Utah 1987, Chapter
             1854      161)
             1855          63G-4-503, (Renumbered from 63-46b-21, as last amended by Laws of Utah 1988,
             1856      Chapter 72)
             1857          63G-4-601, (Renumbered from 63-46b-23, as enacted by Laws of Utah 2001, Chapter
             1858      138)
             1859          63G-5-101, (Renumbered from 63-46c-101, as enacted by Laws of Utah 2001, Chapter
             1860      173)
             1861          63G-5-102, (Renumbered from 63-46c-102, as enacted by Laws of Utah 2001, Chapter
             1862      173)
             1863          63G-5-201, (Renumbered from 63-46c-103, as enacted by Laws of Utah 2001, Chapter
             1864      173)
             1865          63G-5-301, (Renumbered from 63-46c-104, as enacted by Laws of Utah 2001, Chapter
             1866      173)
             1867          63G-6-102, (Renumbered from 63-56-101, as renumbered and amended by Laws of
             1868      Utah 2005, Chapter 25)
             1869          63G-6-103, (Renumbered from 63-56-105, as last amended by Laws of Utah 2005,
             1870      Chapter 71 and renumbered and amended by Laws of Utah 2005, Chapter 25)
             1871          63G-6-104, (Renumbered from 63-56-102, as last amended by Laws of Utah 2007,
             1872      Chapter 329)
             1873          63G-6-105, (Renumbered from 63-56-103, as renumbered and amended by Laws of
             1874      Utah 2005, Chapter 25)
             1875          63G-6-106, (Renumbered from 63-56-104, as renumbered and amended by Laws of
             1876      Utah 2005, Chapter 25)
             1877          63G-6-201, (Renumbered from 63-56-201, as last amended by Laws of Utah 2007,

             1878      Chapter 329)
             1879          63G-6-202, (Renumbered from 63-56-202, as renumbered and amended by Laws of
             1880      Utah 2005, Chapter 25)
             1881          63G-6-203, (Renumbered from 63-56-203, as renumbered and amended by Laws of
             1882      Utah 2005, Chapter 25)
             1883          63G-6-204, (Renumbered from 63-56-204, as last amended by Laws of Utah 2005,
             1884      Chapter 169 and renumbered and amended by Laws of Utah 2005, Chapter 25)
             1885          63G-6-205, (Renumbered from 63-56-205, as renumbered and amended by Laws of
             1886      Utah 2005, Chapter 25)
             1887          63G-6-206, (Renumbered from 63-56-206, as renumbered and amended by Laws of
             1888      Utah 2005, Chapter 25)
             1889          63G-6-207, (Renumbered from 63-56-207, as renumbered and amended by Laws of
             1890      Utah 2005, Chapter 25)
             1891          63G-6-208, (Renumbered from 63-56-208, as renumbered and amended by Laws of
             1892      Utah 2005, Chapter 25)
             1893          63G-6-209, (Renumbered from 63-56-209, as renumbered and amended by Laws of
             1894      Utah 2005, Chapter 25)
             1895          63G-6-301, (Renumbered from 63-56-301, as renumbered and amended by Laws of
             1896      Utah 2005, Chapter 25)
             1897          63G-6-302, (Renumbered from 63-56-302, as renumbered and amended by Laws of
             1898      Utah 2005, Chapter 25)
             1899          63G-6-303, (Renumbered from 63-56-303, as renumbered and amended by Laws of
             1900      Utah 2005, Chapter 25)
             1901          63G-6-401, (Renumbered from 63-56-401, as renumbered and amended by Laws of
             1902      Utah 2005, Chapter 25)
             1903          63G-6-402, (Renumbered from 63-56-402, as renumbered and amended by Laws of
             1904      Utah 2005, Chapter 25)
             1905          63G-6-403, (Renumbered from 63-56-403, as renumbered and amended by Laws of

             1906      Utah 2005, Chapter 25)
             1907          63G-6-404, (Renumbered from 63-56-404, as renumbered and amended by Laws of
             1908      Utah 2005, Chapter 25)
             1909          63G-6-405, (Renumbered from 63-56-405, as renumbered and amended by Laws of
             1910      Utah 2005, Chapter 25)
             1911          63G-6-406, (Renumbered from 63-56-406, as renumbered and amended by Laws of
             1912      Utah 2005, Chapter 25)
             1913          63G-6-407, (Renumbered from 63-56-407, as renumbered and amended by Laws of
             1914      Utah 2005, Chapter 25)
             1915          63G-6-408, (Renumbered from 63-56-408, as renumbered and amended by Laws of
             1916      Utah 2005, Chapter 25)
             1917          63G-6-409, (Renumbered from 63-56-409, as last amended by Laws of Utah 2006,
             1918      Chapter 46)
             1919          63G-6-410, (Renumbered from 63-56-410, as renumbered and amended by Laws of
             1920      Utah 2005, Chapter 25)
             1921          63G-6-411, (Renumbered from 63-56-411, as renumbered and amended by Laws of
             1922      Utah 2005, Chapter 25)
             1923          63G-6-412, (Renumbered from 63-56-412, as renumbered and amended by Laws of
             1924      Utah 2005, Chapter 25)
             1925          63G-6-413, (Renumbered from 63-56-413, as renumbered and amended by Laws of
             1926      Utah 2005, Chapter 25)
             1927          63G-6-414, (Renumbered from 63-56-414, as renumbered and amended by Laws of
             1928      Utah 2005, Chapter 25)
             1929          63G-6-415, (Renumbered from 63-56-415, as renumbered and amended by Laws of
             1930      Utah 2005, Chapter 25)
             1931          63G-6-416, (Renumbered from 63-56-416, as renumbered and amended by Laws of
             1932      Utah 2005, Chapter 25)
             1933          63G-6-417, (Renumbered from 63-56-417, as renumbered and amended by Laws of

             1934      Utah 2005, Chapter 25)
             1935          63G-6-418, (Renumbered from 63-56-418, as renumbered and amended by Laws of
             1936      Utah 2005, Chapter 25)
             1937          63G-6-419, (Renumbered from 63-56-419, as renumbered and amended by Laws of
             1938      Utah 2005, Chapter 25)
             1939          63G-6-420, (Renumbered from 63-56-420, as renumbered and amended by Laws of
             1940      Utah 2005, Chapter 25)
             1941          63G-6-421, (Renumbered from 63-56-421, as renumbered and amended by Laws of
             1942      Utah 2005, Chapter 25)
             1943          63G-6-422, (Renumbered from 63-56-422, as renumbered and amended by Laws of
             1944      Utah 2005, Chapter 25)
             1945          63G-6-423, (Renumbered from 63-56-423, as renumbered and amended by Laws of
             1946      Utah 2005, Chapter 25)
             1947          63G-6-424, (Renumbered from 63-56-424, as renumbered and amended by Laws of
             1948      Utah 2005, Chapter 25)
             1949          63G-6-425, (Renumbered from 63-56-425, as last amended by Laws of Utah 2006,
             1950      Chapter 32)
             1951          63G-6-426, (Renumbered from 63-56-426, as enacted by Laws of Utah 2006, Chapter
             1952      66)
             1953          63G-6-501, (Renumbered from 63-56-501, as renumbered and amended by Laws of
             1954      Utah 2005, Chapter 25)
             1955          63G-6-502, (Renumbered from 63-56-502, as last amended by Laws of Utah 2006,
             1956      Chapter 319)
             1957          63G-6-503, (Renumbered from 63-56-502.5, as enacted by Laws of Utah 2006, Chapter
             1958      36)
             1959          63G-6-504, (Renumbered from 63-56-503, as renumbered and amended by Laws of
             1960      Utah 2005, Chapter 25)
             1961          63G-6-505, (Renumbered from 63-56-504, as renumbered and amended by Laws of

             1962      Utah 2005, Chapter 25)
             1963          63G-6-506, (Renumbered from 63-56-505, as renumbered and amended by Laws of
             1964      Utah 2005, Chapter 25)
             1965          63G-6-507, (Renumbered from 63-56-506, as renumbered and amended by Laws of
             1966      Utah 2005, Chapter 25)
             1967          63G-6-601, (Renumbered from 63-56-601, as renumbered and amended by Laws of
             1968      Utah 2005, Chapter 25)
             1969          63G-6-602, (Renumbered from 63-56-602, as renumbered and amended by Laws of
             1970      Utah 2005, Chapter 25)
             1971          63G-6-701, (Renumbered from 63-56-701, as renumbered and amended by Laws of
             1972      Utah 2005, Chapter 25)
             1973          63G-6-702, (Renumbered from 63-56-702, as renumbered and amended by Laws of
             1974      Utah 2005, Chapter 25)
             1975          63G-6-703, (Renumbered from 63-56-703, as renumbered and amended by Laws of
             1976      Utah 2005, Chapter 25)
             1977          63G-6-704, (Renumbered from 63-56-704, as renumbered and amended by Laws of
             1978      Utah 2005, Chapter 25)
             1979          63G-6-705, (Renumbered from 63-56-705, as renumbered and amended by Laws of
             1980      Utah 2005, Chapter 25)
             1981          63G-6-801, (Renumbered from 63-56-801, as renumbered and amended by Laws of
             1982      Utah 2005, Chapter 25)
             1983          63G-6-802, (Renumbered from 63-56-802, as renumbered and amended by Laws of
             1984      Utah 2005, Chapter 25)
             1985          63G-6-803, (Renumbered from 63-56-803, as renumbered and amended by Laws of
             1986      Utah 2005, Chapter 25)
             1987          63G-6-804, (Renumbered from 63-56-804, as renumbered and amended by Laws of
             1988      Utah 2005, Chapter 25)
             1989          63G-6-805, (Renumbered from 63-56-805, as renumbered and amended by Laws of

             1990      Utah 2005, Chapter 25)
             1991          63G-6-806, (Renumbered from 63-56-806, as last amended by Laws of Utah 2007,
             1992      Chapter 306)
             1993          63G-6-807, (Renumbered from 63-56-807, as renumbered and amended by Laws of
             1994      Utah 2005, Chapter 25)
             1995          63G-6-808, (Renumbered from 63-56-808, as renumbered and amended by Laws of
             1996      Utah 2005, Chapter 25)
             1997          63G-6-809, (Renumbered from 63-56-809, as renumbered and amended by Laws of
             1998      Utah 2005, Chapter 25)
             1999          63G-6-810, (Renumbered from 63-56-810, as renumbered and amended by Laws of
             2000      Utah 2005, Chapter 25)
             2001          63G-6-811, (Renumbered from 63-56-811, as renumbered and amended by Laws of
             2002      Utah 2005, Chapter 25)
             2003          63G-6-812, (Renumbered from 63-56-812, as renumbered and amended by Laws of
             2004      Utah 2005, Chapter 25)
             2005          63G-6-813, (Renumbered from 63-56-813, as renumbered and amended by Laws of
             2006      Utah 2005, Chapter 25)
             2007          63G-6-814, (Renumbered from 63-56-814, as renumbered and amended by Laws of
             2008      Utah 2005, Chapter 25)
             2009          63G-6-815, (Renumbered from 63-56-815, as renumbered and amended by Laws of
             2010      Utah 2005, Chapter 25)
             2011          63G-6-816, (Renumbered from 63-56-816, as renumbered and amended by Laws of
             2012      Utah 2005, Chapter 25)
             2013          63G-6-817, (Renumbered from 63-56-817, as renumbered and amended by Laws of
             2014      Utah 2005, Chapter 25)
             2015          63G-6-818, (Renumbered from 63-56-818, as renumbered and amended by Laws of
             2016      Utah 2005, Chapter 25)
             2017          63G-6-819, (Renumbered from 63-56-819, as renumbered and amended by Laws of

             2018      Utah 2005, Chapter 25)
             2019          63G-6-820, (Renumbered from 63-56-820, as renumbered and amended by Laws of
             2020      Utah 2005, Chapter 25)
             2021          63G-6-901, (Renumbered from 63-56-901, as renumbered and amended by Laws of
             2022      Utah 2005, Chapter 25)
             2023          63G-6-902, (Renumbered from 63-56-902, as renumbered and amended by Laws of
             2024      Utah 2005, Chapter 25)
             2025          63G-6-903, (Renumbered from 63-56-903, as renumbered and amended by Laws of
             2026      Utah 2005, Chapter 25)
             2027          63G-6-904, (Renumbered from 63-56-904, as renumbered and amended by Laws of
             2028      Utah 2005, Chapter 25)
             2029          63G-6-905, (Renumbered from 63-56-905, as renumbered and amended by Laws of
             2030      Utah 2005, Chapter 25)
             2031          63G-6-906, (Renumbered from 63-56-906, as renumbered and amended by Laws of
             2032      Utah 2005, Chapter 25)
             2033          63G-6-907, (Renumbered from 63-56-907, as renumbered and amended by Laws of
             2034      Utah 2005, Chapter 25)
             2035          63G-6-1001, (Renumbered from 63-56-1001, as renumbered and amended by Laws of
             2036      Utah 2005, Chapter 25)
             2037          63G-6-1002, (Renumbered from 63-56-1002, as renumbered and amended by Laws of
             2038      Utah 2005, Chapter 25)
             2039          63G-7-101, (Renumbered from 63-30d-101, as enacted by Laws of Utah 2004, Chapter
             2040      267)
             2041          63G-7-102, (Renumbered from 63-30d-102, as last amended by Laws of Utah 2007,
             2042      Chapter 329)
             2043          63G-7-201, (Renumbered from 63-30d-201, as enacted by Laws of Utah 2004, Chapter
             2044      267)
             2045          63G-7-202, (Renumbered from 63-30d-202, as enacted by Laws of Utah 2004, Chapter

             2046      267)
             2047          63G-7-203, (Renumbered from 63-30d-203, as last amended by Laws of Utah 2007,
             2048      Chapter 306)
             2049          63G-7-301, (Renumbered from 63-30d-301, as last amended by Laws of Utah 2007,
             2050      Chapter 357)
             2051          63G-7-302, (Renumbered from 63-30d-302, as enacted by Laws of Utah 2004, Chapter
             2052      267)
             2053          63G-7-401, (Renumbered from 63-30d-401, as last amended by Laws of Utah 2007,
             2054      Chapter 329)
             2055          63G-7-402, (Renumbered from 63-30d-402, as enacted by Laws of Utah 2004, Chapter
             2056      267)
             2057          63G-7-403, (Renumbered from 63-30d-403, as enacted by Laws of Utah 2004, Chapter
             2058      267)
             2059          63G-7-501, (Renumbered from 63-30d-501, as enacted by Laws of Utah 2004, Chapter
             2060      267)
             2061          63G-7-502, (Renumbered from 63-30d-502, as enacted by Laws of Utah 2004, Chapter
             2062      267)
             2063          63G-7-601, (Renumbered from 63-30d-601, as enacted by Laws of Utah 2004, Chapter
             2064      267)
             2065          63G-7-602, (Renumbered from 63-30d-602, as enacted by Laws of Utah 2004, Chapter
             2066      267)
             2067          63G-7-603, (Renumbered from 63-30d-603, as enacted by Laws of Utah 2004, Chapter
             2068      267)
             2069          63G-7-604, (Renumbered from 63-30d-604, as last amended by Laws of Utah 2007,
             2070      Chapter 71)
             2071          63G-7-701, (Renumbered from 63-30d-701, as enacted by Laws of Utah 2004, Chapter
             2072      267)
             2073          63G-7-702, (Renumbered from 63-30d-702, as enacted by Laws of Utah 2004, Chapter

             2074      267)
             2075          63G-7-703, (Renumbered from 63-30d-703, as enacted by Laws of Utah 2004, Chapter
             2076      267)
             2077          63G-7-704, (Renumbered from 63-30d-704, as enacted by Laws of Utah 2004, Chapter
             2078      267)
             2079          63G-7-801, (Renumbered from 63-30d-801, as enacted by Laws of Utah 2004, Chapter
             2080      267)
             2081          63G-7-802, (Renumbered from 63-30d-802, as enacted by Laws of Utah 2004, Chapter
             2082      267)
             2083          63G-7-803, (Renumbered from 63-30d-803, as enacted by Laws of Utah 2004, Chapter
             2084      267)
             2085          63G-7-804, (Renumbered from 63-30d-804, as enacted by Laws of Utah 2004, Chapter
             2086      267)
             2087          63G-7-805, (Renumbered from 63-30d-805, as enacted by Laws of Utah 2004, Chapter
             2088      267)
             2089          63G-7-901, (Renumbered from 63-30d-901, as enacted by Laws of Utah 2004, Chapter
             2090      267)
             2091          63G-7-902, (Renumbered from 63-30d-902, as enacted by Laws of Utah 2004, Chapter
             2092      267)
             2093          63G-7-903, (Renumbered from 63-30d-903, as enacted by Laws of Utah 2004, Chapter
             2094      267)
             2095          63G-7-904, (Renumbered from 63-30d-904, as enacted by Laws of Utah 2004, Chapter
             2096      267)
             2097          63G-8-102, (Renumbered from 63-30b-1, as enacted by Laws of Utah 1979, Chapter
             2098      93)
             2099          63G-8-201, (Renumbered from 63-30b-2, as enacted by Laws of Utah 1979, Chapter
             2100      92)
             2101          63G-8-202, (Renumbered from 63-30b-3, as last amended by Laws of Utah 2005,

             2102      Chapter 102)
             2103          63G-8-301, (Renumbered from 63-30b-4, as enacted by Laws of Utah 1979, Chapter
             2104      93)
             2105          63G-9-201, (Renumbered from 63-6-1, as last amended by Laws of Utah 2007, Chapter
             2106      329)
             2107          63G-9-202, (Renumbered from 63-6-1.5, as enacted by Laws of Utah 1987, Chapter
             2108      161)
             2109          63G-9-203, (Renumbered from 63-6-2, as last amended by Laws of Utah 1963, Chapter
             2110      150)
             2111          63G-9-204, (Renumbered from 63-6-3, Utah Code Annotated 1953)
             2112          63G-9-205, (Renumbered from 63-6-4, Utah Code Annotated 1953)
             2113          63G-9-206, (Renumbered from 63-6-5, Utah Code Annotated 1953)
             2114          63G-9-207, (Renumbered from 63-6-6, Utah Code Annotated 1953)
             2115          63G-9-301, (Renumbered from 63-6-10, as last amended by Laws of Utah 1987,
             2116      Chapter 61)
             2117          63G-9-302, (Renumbered from 63-6-11, as last amended by Laws of Utah 2006,
             2118      Chapter 357)
             2119          63G-9-303, (Renumbered from 63-6-12, as last amended by Laws of Utah 1995,
             2120      Chapter 20)
             2121          63G-9-304, (Renumbered from 63-6-13, as last amended by Laws of Utah 2006,
             2122      Chapter 357)
             2123          63G-9-305, (Renumbered from 63-6-14, Utah Code Annotated 1953)
             2124          63G-9-306, (Renumbered from 63-6-16, as last amended by Laws of Utah 2006,
             2125      Chapter 357)
             2126          63G-9-401, (Renumbered from 63-6-17, Utah Code Annotated 1953)
             2127          63G-10-102, (Renumbered from 63-38b-101, as last amended by Laws of Utah 2004,
             2128      Chapter 60)
             2129          63G-10-103, (Renumbered from 63-38b-102, as last amended by Laws of Utah 2002,

             2130      Chapter 235)
             2131          63G-10-201, (Renumbered from 63-38b-201, as renumbered and amended by Laws of
             2132      Utah 2002, Chapter 235)
             2133          63G-10-202, (Renumbered from 63-38b-202, as renumbered and amended by Laws of
             2134      Utah 2002, Chapter 235)
             2135          63G-10-301, (Renumbered from 63-38b-301, as enacted by Laws of Utah 2002,
             2136      Chapter 235)
             2137          63G-10-302, (Renumbered from 63-38b-302, as enacted by Laws of Utah 2002,
             2138      Chapter 235)
             2139          63G-10-303, (Renumbered from 63-38b-303, as enacted by Laws of Utah 2002,
             2140      Chapter 235)
             2141          63G-10-401, (Renumbered from 63-38b-401, as renumbered and amended by Laws of
             2142      Utah 2002, Chapter 235)
             2143          63I-1-101, (Renumbered from 63-55-101, as last amended by Laws of Utah 1997,
             2144      Chapter 15)
             2145          63I-1-102, (Renumbered from 63-55-102, as last amended by Laws of Utah 1997,
             2146      Chapter 15)
             2147          63I-1-103, (Renumbered from 63-55-103, as last amended by Laws of Utah 1997,
             2148      Chapter 15)
             2149          63I-1-104, (Renumbered from 63-55-104, as renumbered and amended by Laws of Utah
             2150      1990, Chapter 1)
             2151          63I-1-105, (Renumbered from 63-55-105, as last amended by Laws of Utah 1993,
             2152      Chapter 13)
             2153          63I-1-106, (Renumbered from 63-55-106, as last amended by Laws of Utah 1993,
             2154      Chapter 13)
             2155          63I-1-209, (Renumbered from 63-55-209, as last amended by Laws of Utah 2006,
             2156      Chapters 82, 86, and 223)
             2157          63I-1-210, (Renumbered from 63-55-210, as last amended by Laws of Utah 2004,

             2158      Chapter 90)
             2159          63I-1-213, (Renumbered from 63-55-213, as last amended by Laws of Utah 2007,
             2160      Chapter 216)
             2161          63I-1-219, (Renumbered from 63-55-219, as last amended by Laws of Utah 2006,
             2162      Chapters 82, and 187)
             2163          63I-1-220, (Renumbered from 63-55-220, as last amended by Laws of Utah 2004,
             2164      Chapter 37)
             2165          63I-1-223, (Renumbered from 63-55-223, as last amended by Laws of Utah 2004,
             2166      Chapter 90)
             2167          63I-1-226, (Renumbered from 63-55-226, as last amended by Laws of Utah 2007,
             2168      Chapter 24)
             2169          63I-1-230, (Renumbered from 63-55-230, Utah Code Annotated 1953)
             2170          63I-1-231, (Renumbered from 63-55-231, as last amended by Laws of Utah 2007,
             2171      Chapter 216)
             2172          63I-1-232, (Renumbered from 63-55-232, as last amended by Laws of Utah 1998,
             2173      Chapter 175)
             2174          63I-1-234, (Renumbered from 63-55-234, as last amended by Laws of Utah 2005,
             2175      Chapter 289)
             2176          63I-1-235, (Renumbered from 63-55-235, as last amended by Laws of Utah 2007,
             2177      Chapter 216)
             2178          63I-1-236, (Renumbered from 63-55-236, as last amended by Laws of Utah 2007,
             2179      Chapters 39, and 216)
             2180          63I-1-238, (Renumbered from 63-55-238, as enacted by Laws of Utah 2004, Chapter
             2181      250)
             2182          63I-1-241, (Renumbered from 63-55-241, as last amended by Laws of Utah 2005,
             2183      Chapters 2, and 108)
             2184          63I-1-253, (Renumbered from 63-55-253, as last amended by Laws of Utah 2007,
             2185      Chapter 386)

             2186          63I-1-254, (Renumbered from 63-55-254, as last amended by Laws of Utah 2000,
             2187      Chapter 1)
             2188          63I-1-258, (Renumbered from 63-55-258, as last amended by Laws of Utah 2007,
             2189      Chapter 216)
             2190          63I-1-259, (Renumbered from 63-55-259, as last amended by Laws of Utah 2007,
             2191      Chapters 216, and 306)
             2192          63I-1-261, (Renumbered from 63-55-261, as last amended by Laws of Utah 1999,
             2193      Chapter 242)
             2194          63I-1-262, (Renumbered from 63-55-262, as last amended by Laws of Utah 2007,
             2195      Chapter 135)
             2196          63I-1-263, (Renumbered from 63-55-263, as last amended by Laws of Utah 2007,
             2197      Chapters 216, 306, and 317)
             2198          63I-1-267, (Renumbered from 63-55-267, as last amended by Laws of Utah 2007,
             2199      Chapters 39, and 216)
             2200          63I-1-269, (Renumbered from 63-55-269, as enacted by Laws of Utah 2004, Chapter
             2201      313)
             2202          63I-1-272, (Renumbered from 63-55-272, as last amended by Laws of Utah 2004,
             2203      Chapter 90)
             2204          63I-1-273, (Renumbered from 63-55-273, as last amended by Laws of Utah 2003,
             2205      Chapter 254)
             2206          63I-1-277, (Renumbered from 63-55-277, as last amended by Laws of Utah 2004,
             2207      Chapter 37)
             2208          63I-1-278, (Renumbered from 63-55-278, as last amended by Laws of Utah 2007,
             2209      Chapters 216, and 324)
             2210          63I-2-210, (Renumbered from 63-55b-110, as last amended by Laws of Utah 2005,
             2211      Chapter 28)
             2212          63I-2-220, (Renumbered from 63-55b-120, as last amended by Laws of Utah 2003,
             2213      Chapters 131, and 159)

             2214          63I-2-223, (Renumbered from 63-55b-123, as last amended by Laws of Utah 2003,
             2215      Chapter 131)
             2216          63I-2-226, (Renumbered from 63-55b-126, as last amended by Laws of Utah 2007,
             2217      Chapter 216)
             2218          63I-2-231, (Renumbered from 63-55b-131, as last amended by Laws of Utah 2006,
             2219      Chapter 82)
             2220          63I-2-232, (Renumbered from 63-55b-132, as last amended by Laws of Utah 2005,
             2221      Chapter 152)
             2222          63I-2-234, (Renumbered from 63-55b-134, as last amended by Laws of Utah 2003,
             2223      Chapter 131)
             2224          63I-2-253, (Renumbered from 63-55b-153, as last amended by Laws of Utah 2007,
             2225      Chapter 216)
             2226          63I-2-254, (Renumbered from 63-55b-154, as last amended by Laws of Utah 2007,
             2227      Chapter 306)
             2228          63I-2-258, (Renumbered from 63-55b-158, as last amended by Laws of Utah 2006,
             2229      Chapters 46, and 291)
             2230          63I-2-259, (Renumbered from 63-55b-159, as last amended by Laws of Utah 2007,
             2231      Chapter 306)
             2232          63I-2-263, (Renumbered from 63-55b-163, as last amended by Laws of Utah 2007,
             2233      Chapter 306)
             2234          63I-2-264, (Renumbered from 63-55b-164, as last amended by Laws of Utah 2007,
             2235      Chapter 353)
             2236          63I-2-267, (Renumbered from 63-55b-167, as last amended by Laws of Utah 2004,
             2237      Chapter 90)
             2238          63I-2-272, (Renumbered from 63-55b-172, as last amended by Laws of Utah 2005,
             2239      Second Special Session, Chapter 1)
             2240          63I-2-276, (Renumbered from 63-55b-176, as last amended by Laws of Utah 2004,
             2241      Chapter 90)

             2242          63I-2-277, (Renumbered from 63-55b-177, as last amended by Laws of Utah 2006,
             2243      Chapter 341)
             2244          63I-2-278, (Renumbered from 63-55b-178, as last amended by Laws of Utah 2007,
             2245      Chapters 216, 306, and 354)
             2246          63I-3-101, (Renumbered from 63-54-101, as enacted by Laws of Utah 2006, Chapter
             2247      248)
             2248          63I-3-102, (Renumbered from 63-54-102, as enacted by Laws of Utah 2006, Chapter
             2249      248)
             2250          63I-3-201, (Renumbered from 63-54-103, as last amended by Laws of Utah 2007,
             2251      Chapter 273)
             2252          63I-3-202, (Renumbered from 63-54-104, as renumbered and amended by Laws of Utah
             2253      2006, Chapter 248)
             2254          63I-3-203, (Renumbered from 63-54-105, as renumbered and amended by Laws of Utah
             2255      2006, Chapter 248)
             2256          63I-3-204, (Renumbered from 63-54-106, as renumbered and amended by Laws of Utah
             2257      2006, Chapter 248)
             2258          63I-3-205, (Renumbered from 63-54-107, as renumbered and amended by Laws of Utah
             2259      2006, Chapter 248)
             2260          63I-3-206, (Renumbered from 63-54-108, as renumbered and amended by Laws of Utah
             2261      2006, Chapter 248)
             2262          63I-3-207, (Renumbered from 63-54-109, as renumbered and amended by Laws of Utah
             2263      2006, Chapter 248)
             2264          63I-4-102, (Renumbered from 63-55a-1, as last amended by Laws of Utah 2003,
             2265      Chapter 193)
             2266          63I-4-201, (Renumbered from 63-55a-2, as last amended by Laws of Utah 2003,
             2267      Chapter 193)
             2268          63I-4-202, (Renumbered from 63-55a-3, as last amended by Laws of Utah 2003,
             2269      Chapter 193)

             2270          63I-5-101, (Renumbered from 63-91-101, as enacted by Laws of Utah 1995, Chapter
             2271      280)
             2272          63I-5-102, (Renumbered from 63-91-102, as last amended by Laws of Utah 2007,
             2273      Chapter 329)
             2274          63I-5-201, (Renumbered from 63-91-201, as last amended by Laws of Utah 2007,
             2275      Chapter 356)
             2276          63I-5-301, (Renumbered from 63-91-301, as last amended by Laws of Utah 1996,
             2277      Chapter 293)
             2278          63I-5-302, (Renumbered from 63-91-302, as last amended by Laws of Utah 1996,
             2279      Chapter 293)
             2280          63I-5-401, (Renumbered from 63-91-401, as last amended by Laws of Utah 1996,
             2281      Chapter 293)
             2282          63J-1-101, (Renumbered from 63-38-1, as enacted by Laws of Utah 1969, Chapter 207)
             2283          63J-1-103, (Renumbered from 63-38-9.5, as last amended by Laws of Utah 2005,
             2284      Chapter 71)
             2285          63J-1-201, (Renumbered from 63-38-2, as last amended by Laws of Utah 2007,
             2286      Chapter 179)
             2287          63J-1-202, (Renumbered from 63-38-2.5, as last amended by Laws of Utah 2003,
             2288      Chapters 88, and 319)
             2289          63J-1-203, (Renumbered from 63-38-2.6, as last amended by Laws of Utah 2007,
             2290      Chapter 122)
             2291          63J-1-204, (Renumbered from 63-38-2.7, as enacted by Laws of Utah 2007, Chapter
             2292      328)
             2293          63J-1-301, (Renumbered from 63-38-3, as last amended by Laws of Utah 2006,
             2294      Chapter 278)
             2295          63J-1-302, (Renumbered from 63-38-3.1, as enacted by Laws of Utah 2001, Chapter
             2296      267)
             2297          63J-1-303, (Renumbered from 63-38-3.2, as last amended by Laws of Utah 2003,

             2298      Chapter 16)
             2299          63J-1-304, (Renumbered from 63-38-3.3, as last amended by Laws of Utah 2007,
             2300      Chapter 329)
             2301          63J-1-305, (Renumbered from 63-38-3.4, as enacted by Laws of Utah 2001, Chapter
             2302      191)
             2303          63J-1-306, (Renumbered from 63-38-3.5, as last amended by Laws of Utah 2003,
             2304      Chapter 5)
             2305          63J-1-307, (Renumbered from 63-38-3.6, as enacted by Laws of Utah 2002, Fifth
             2306      Special Session, Chapter 20)
             2307          63J-1-308, (Renumbered from 63-38-4, as enacted by Laws of Utah 1969, Chapter 207)
             2308          63J-1-309, (Renumbered from 63-38-5, as last amended by Laws of Utah 1987,
             2309      Chapter 92)
             2310          63J-1-310, (Renumbered from 63-38-6, as last amended by Laws of Utah 2001,
             2311      Chapter 175)
             2312          63J-1-311, (Renumbered from 63-38-7, as last amended by Laws of Utah 1997,
             2313      Chapter 169)
             2314          63J-1-401, (Renumbered from 63-38-8, as last amended by Laws of Utah 2004,
             2315      Chapter 179)
             2316          63J-1-402, (Renumbered from 63-38-8.1, as last amended by Laws of Utah 2006,
             2317      Chapter 278)
             2318          63J-1-403, (Renumbered from 63-38-8.2, as enacted by Laws of Utah 2004, Chapter
             2319      226)
             2320          63J-1-404, (Renumbered from 63-38-9, as last amended by Laws of Utah 2007,
             2321      Chapter 122)
             2322          63J-1-405, (Renumbered from 63-38-10, as last amended by Laws of Utah 1987,
             2323      Chapter 61)
             2324          63J-1-406, (Renumbered from 63-38-11, as last amended by Laws of Utah 1994,
             2325      Chapter 216)

             2326          63J-1-407, (Renumbered from 63-38-11.5, as enacted by Laws of Utah 2004, Chapter
             2327      352)
             2328          63J-1-408, (Renumbered from 63-38-12, as enacted by Laws of Utah 1969, Chapter
             2329      207)
             2330          63J-1-409, (Renumbered from 63-38-13, as enacted by Laws of Utah 1969, Chapter
             2331      207)
             2332          63J-1-501, (Renumbered from 63-38-14, as last amended by Laws of Utah 2003,
             2333      Chapter 16)
             2334          63J-1-502, (Renumbered from 63-38-15, as last amended by Laws of Utah 2003,
             2335      Chapter 16)
             2336          63J-1-503, (Renumbered from 63-38-16, as enacted by Laws of Utah 1983, Chapter 10)
             2337          63J-2-101, (Renumbered from 63-38a-101, as enacted by Laws of Utah 1992, Chapter
             2338      259)
             2339          63J-2-102, (Renumbered from 63-38a-102, as last amended by Laws of Utah 2005,
             2340      Chapter 71)
             2341          63J-2-201, (Renumbered from 63-38a-103, as enacted by Laws of Utah 1992, Chapter
             2342      259)
             2343          63J-2-202, (Renumbered from 63-38a-104, as last amended by Laws of Utah 1994,
             2344      Chapter 211)
             2345          63J-3-101, (Renumbered from 63-38c-101, as renumbered and amended by Laws of
             2346      Utah 1996, Chapter 275)
             2347          63J-3-102, (Renumbered from 63-38c-102, as last amended by Laws of Utah 2004,
             2348      Chapter 318)
             2349          63J-3-103, (Renumbered from 63-38c-103, as last amended by Laws of Utah 2007,
             2350      Chapters 122, 206, and 328)
             2351          63J-3-201, (Renumbered from 63-38c-201, as last amended by Laws of Utah 2004,
             2352      Chapter 318)
             2353          63J-3-202, (Renumbered from 63-38c-202, as last amended by Laws of Utah 2004,

             2354      Chapter 318)
             2355          63J-3-203, (Renumbered from 63-38c-203, as renumbered and amended by Laws of
             2356      Utah 1996, Chapter 275)
             2357          63J-3-204, (Renumbered from 63-38c-204, as renumbered and amended by Laws of
             2358      Utah 1996, Chapter 275)
             2359          63J-3-205, (Renumbered from 63-38c-205, as renumbered and amended by Laws of
             2360      Utah 1996, Chapter 275)
             2361          63J-3-301, (Renumbered from 63-38c-301, as renumbered and amended by Laws of
             2362      Utah 1996, Chapter 275)
             2363          63J-3-401, (Renumbered from 63-38c-401, as renumbered and amended by Laws of
             2364      Utah 1996, Chapter 275)
             2365          63J-3-402, (Renumbered from 63-38c-402, as last amended by Laws of Utah 2007,
             2366      Chapters 201, and 206)
             2367          63J-4-101, (Renumbered from 63-38d-101, as enacted by Laws of Utah 2003, Chapter
             2368      16)
             2369          63J-4-102, (Renumbered from 63-38d-102, as last amended by Laws of Utah 2007,
             2370      Chapter 329)
             2371          63J-4-201, (Renumbered from 63-38d-201, as enacted by Laws of Utah 2003, Chapter
             2372      16)
             2373          63J-4-202, (Renumbered from 63-38d-202, as enacted by Laws of Utah 2003, Chapter
             2374      16)
             2375          63J-4-301, (Renumbered from 63-38d-301, as last amended by Laws of Utah 2004,
             2376      Chapter 352)
             2377          63J-4-401, (Renumbered from 63-38d-401, as last amended by Laws of Utah 2005,
             2378      Chapter 179)
             2379          63J-4-501, (Renumbered from 63-38d-501, as enacted by Laws of Utah 2003, Chapter
             2380      16)
             2381          63J-4-502, (Renumbered from 63-38d-502, as last amended by Laws of Utah 2007,

             2382      Chapter 66)
             2383          63J-4-503, (Renumbered from 63-38d-503, as enacted by Laws of Utah 2003, Chapter
             2384      16)
             2385          63J-4-504, (Renumbered from 63-38d-504, as enacted by Laws of Utah 2003, Chapter
             2386      16)
             2387          63J-4-505, (Renumbered from 63-38d-505, as enacted by Laws of Utah 2003, Chapter
             2388      16)
             2389          63J-4-601, (Renumbered from 63-38d-601, as last amended by Laws of Utah 2007,
             2390      Chapter 329)
             2391          63J-4-602, (Renumbered from 63-38d-602, as enacted by Laws of Utah 2005, Chapter
             2392      298)
             2393          63J-4-603, (Renumbered from 63-38d-603, as last amended by Laws of Utah 2006,
             2394      Chapter 292)
             2395          63J-4-604, (Renumbered from 63-38d-604, as enacted by Laws of Utah 2005, Chapter
             2396      298)
             2397          63J-4-605, (Renumbered from 63-38d-605, as enacted by Laws of Utah 2005, Chapter
             2398      298)
             2399          63J-5-102, (Renumbered from 63-38e-101, as enacted by Laws of Utah 2004, Chapter
             2400      352)
             2401          63J-5-103, (Renumbered from 63-38e-102, as enacted by Laws of Utah 2004, Chapter
             2402      352)
             2403          63J-5-201, (Renumbered from 63-38e-201, as enacted by Laws of Utah 2004, Chapter
             2404      352)
             2405          63J-5-202, (Renumbered from 63-38e-202, as enacted by Laws of Utah 2004, Chapter
             2406      352)
             2407          63J-5-203, (Renumbered from 63-38e-203, as enacted by Laws of Utah 2004, Chapter
             2408      352)
             2409          63J-5-204, (Renumbered from 63-38e-204, as enacted by Laws of Utah 2004, Chapter

             2410      352)
             2411          63J-6-201, (Renumbered from 63-61-1, as enacted by Laws of Utah 1984, Chapter 5)
             2412          63J-6-202, (Renumbered from 63-61-2, as last amended by Laws of Utah 1987,
             2413      Chapter 202)
             2414          63J-6-203, (Renumbered from 63-61-3, as last amended by Laws of Utah 1987,
             2415      Chapter 202)
             2416          63J-6-204, (Renumbered from 63-61-4, as enacted by Laws of Utah 1984, Chapter 5)
             2417          63K-1-101, (Renumbered from 63-5b-101, as enacted by Laws of Utah 1992, Chapter
             2418      294)
             2419          63K-1-102, (Renumbered from 63-5b-102, as last amended by Laws of Utah 2007,
             2420      Chapter 66)
             2421          63K-1-201, (Renumbered from 63-5b-201, as enacted by Laws of Utah 1992, Chapter
             2422      294)
             2423          63K-1-202, (Renumbered from 63-5b-202, as enacted by Laws of Utah 1992, Chapter
             2424      294)
             2425          63K-1-301, (Renumbered from 63-5b-301, as last amended by Laws of Utah 2007,
             2426      Chapter 66)
             2427          63K-1-302, (Renumbered from 63-5b-302, as enacted by Laws of Utah 1992, Chapter
             2428      294)
             2429          63K-1-401, (Renumbered from 63-5b-401, as last amended by Laws of Utah 2006,
             2430      Chapter 286)
             2431          63K-1-501, (Renumbered from 63-5b-501, as enacted by Laws of Utah 1992, Chapter
             2432      294)
             2433          63K-1-502, (Renumbered from 63-5b-502, as enacted by Laws of Utah 1992, Chapter
             2434      294)
             2435          63K-1-503, (Renumbered from 63-5b-503, as enacted by Laws of Utah 1992, Chapter
             2436      294)
             2437          63K-1-504, (Renumbered from 63-5b-504, as enacted by Laws of Utah 1992, Chapter

             2438      294)
             2439          63K-1-601, (Renumbered from 63-5b-601, as enacted by Laws of Utah 1992, Chapter
             2440      294)
             2441          63K-1-602, (Renumbered from 63-5b-602, as enacted by Laws of Utah 1992, Chapter
             2442      294)
             2443          63K-2-102, (Renumbered from 63-53a-2, as enacted by Laws of Utah 1980, Chapter
             2444      23)
             2445          63K-2-103, (Renumbered from 63-53a-1, as enacted by Laws of Utah 1980, Chapter
             2446      23)
             2447          63K-2-201, (Renumbered from 63-53a-3, as enacted by Laws of Utah 1980, Chapter
             2448      23)
             2449          63K-2-202, (Renumbered from 63-53a-4, as enacted by Laws of Utah 1980, Chapter
             2450      23)
             2451          63K-2-203, (Renumbered from 63-53a-5, as enacted by Laws of Utah 1980, Chapter
             2452      23)
             2453          63K-2-204, (Renumbered from 63-53a-6, as last amended by Laws of Utah 2005,
             2454      Chapter 214)
             2455          63K-2-205, (Renumbered from 63-53a-7, as enacted by Laws of Utah 1980, Chapter
             2456      23)
             2457          63K-2-206, (Renumbered from 63-53a-10, as enacted by Laws of Utah 1980, Chapter
             2458      23)
             2459          63K-2-301, (Renumbered from 63-53a-8, as enacted by Laws of Utah 1980, Chapter
             2460      23)
             2461          63K-2-302, (Renumbered from 63-53a-9, as enacted by Laws of Utah 1980, Chapter
             2462      23)
             2463          63K-2-303, (Renumbered from 63-53a-11, as enacted by Laws of Utah 1980, Chapter
             2464      23)
             2465          63K-3-102, (Renumbered from 63-5-2, as enacted by Laws of Utah 1981, Chapter 254)

             2466          63K-3-201, (Renumbered from 63-5-4, as last amended by Laws of Utah 2007, Chapter
             2467      66)
             2468          63K-3-301, (Renumbered from 63-5-5, as last amended by Laws of Utah 1996, Chapter
             2469      243)
             2470          63K-4-102, (Renumbered from 63-5a-1, as last amended by Laws of Utah 1994,
             2471      Chapter 12)
             2472          63K-4-103, (Renumbered from 63-5a-2, as last amended by Laws of Utah 2006,
             2473      Chapter 286)
             2474          63K-4-201, (Renumbered from 63-5a-3, as last amended by Laws of Utah 1994,
             2475      Chapter 12)
             2476          63K-4-202, (Renumbered from 63-5a-4, as last amended by Laws of Utah 2006,
             2477      Chapter 286)
             2478          63K-4-203, (Renumbered from 63-5a-5, as enacted by Laws of Utah 1981, Chapter
             2479      253)
             2480          63K-4-301, (Renumbered from 63-5a-6, as last amended by Laws of Utah 2006,
             2481      Chapter 286)
             2482          63K-4-401, (Renumbered from 63-5a-7, as last amended by Laws of Utah 2007,
             2483      Chapter 177)
             2484          63K-4-402, (Renumbered from 63-5a-8, as last amended by Laws of Utah 2007,
             2485      Chapters 66, and 328)
             2486          63K-4-403, (Renumbered from 63-5a-9, as enacted by Laws of Utah 1981, Chapter
             2487      253)
             2488          63K-4-404, (Renumbered from 63-5a-11, as enacted by Laws of Utah 1981, Chapter
             2489      253)
             2490          63L-1-201, (Renumbered from 63-8-1, as last amended by Laws of Utah 1981, Chapter
             2491      262)
             2492          63L-1-202, (Renumbered from 63-8-2, Utah Code Annotated 1953)
             2493          63L-1-203, (Renumbered from 63-8-3, Utah Code Annotated 1953)

             2494          63L-1-204, (Renumbered from 63-8-4, as last amended by Laws of Utah 1980, Chapter
             2495      71)
             2496          63L-1-205, (Renumbered from 63-8-5, as last amended by Laws of Utah 1983, Chapter
             2497      292)
             2498          63L-1-206, (Renumbered from 63-8-6, as enacted by Laws of Utah 1985, Chapter 233)
             2499          63L-1-207, (Renumbered from 63-8-7, as enacted by Laws of Utah 1997, Chapter 239)
             2500          63L-2-201, (Renumbered from 63-34b-101, as enacted by Laws of Utah 2001, Chapter
             2501      287)
             2502          63L-3-101, (Renumbered from 63-90-1, as renumbered and amended by Laws of Utah
             2503      1994, Chapter 91)
             2504          63L-3-102, (Renumbered from 63-90-2, as last amended by Laws of Utah 2007,
             2505      Chapter 306)
             2506          63L-3-201, (Renumbered from 63-90-3, as last amended by Laws of Utah 1997,
             2507      Chapter 293)
             2508          63L-3-202, (Renumbered from 63-90-4, as renumbered and amended by Laws of Utah
             2509      1994, Chapter 91)
             2510          63L-4-102, (Renumbered from 63-90a-1, as last amended by Laws of Utah 2007,
             2511      Chapter 329)
             2512          63L-4-103, (Renumbered from 63-90a-2, as enacted by Laws of Utah 1994, Chapter
             2513      91)
             2514          63L-4-201, (Renumbered from 63-90a-3, as enacted by Laws of Utah 1994, Chapter
             2515      91)
             2516          63L-4-301, (Renumbered from 63-90a-4, as last amended by Laws of Utah 1998,
             2517      Chapters 295, and 321)
             2518          63L-5-101, (Renumbered from 63-90b-101, as enacted by Laws of Utah 2005, Chapter
             2519      99)
             2520          63L-5-102, (Renumbered from 63-90b-102, as last amended by Laws of Utah 2007,
             2521      Chapter 329)

             2522          63L-5-201, (Renumbered from 63-90b-201, as enacted by Laws of Utah 2005, Chapter
             2523      99)
             2524          63L-5-301, (Renumbered from 63-90b-301, as enacted by Laws of Utah 2005, Chapter
             2525      99)
             2526          63L-5-302, (Renumbered from 63-90b-302, as enacted by Laws of Utah 2005, Chapter
             2527      99)
             2528          63L-5-401, (Renumbered from 63-90b-401, as enacted by Laws of Utah 2005, Chapter
             2529      99)
             2530          63L-5-402, (Renumbered from 63-90b-402, as enacted by Laws of Utah 2005, Chapter
             2531      99)
             2532          63L-5-403, (Renumbered from 63-90b-403, as enacted by Laws of Utah 2005, Chapter
             2533      99)
             2534          63M-1-101, (Renumbered from 63-38f-101, as renumbered and amended by Laws of
             2535      Utah 2005, Chapter 148)
             2536          63M-1-102, (Renumbered from 63-38f-102, as renumbered and amended by Laws of
             2537      Utah 2005, Chapter 148)
             2538          63M-1-201, (Renumbered from 63-38f-201, as enacted by Laws of Utah 2005, Chapter
             2539      148)
             2540          63M-1-202, (Renumbered from 63-38f-202, as renumbered and amended by Laws of
             2541      Utah 2005, Chapter 148)
             2542          63M-1-203, (Renumbered from 63-38f-203, as renumbered and amended by Laws of
             2543      Utah 2005, Chapter 148)
             2544          63M-1-204, (Renumbered from 63-38f-204, as renumbered and amended by Laws of
             2545      Utah 2005, Chapter 148)
             2546          63M-1-205, (Renumbered from 63-38f-205, as renumbered and amended by Laws of
             2547      Utah 2005, Chapter 148)
             2548          63M-1-301, (Renumbered from 63-38f-301, as renumbered and amended by Laws of
             2549      Utah 2005, Chapter 148)

             2550          63M-1-302, (Renumbered from 63-38f-302, as renumbered and amended by Laws of
             2551      Utah 2005, Chapter 148)
             2552          63M-1-303, (Renumbered from 63-38f-303, as last amended by Laws of Utah 2006,
             2553      Chapter 52)
             2554          63M-1-304, (Renumbered from 63-38f-304, as renumbered and amended by Laws of
             2555      Utah 2005, Chapter 148)
             2556          63M-1-401, (Renumbered from 63-38f-401, as renumbered and amended by Laws of
             2557      Utah 2005, Chapter 148)
             2558          63M-1-402, (Renumbered from 63-38f-402, as last amended by Laws of Utah 2006,
             2559      Chapter 223)
             2560          63M-1-403, (Renumbered from 63-38f-403, as renumbered and amended by Laws of
             2561      Utah 2005, Chapter 148)
             2562          63M-1-404, (Renumbered from 63-38f-404, as renumbered and amended by Laws of
             2563      Utah 2005, Chapter 148)
             2564          63M-1-405, (Renumbered from 63-38f-405, as renumbered and amended by Laws of
             2565      Utah 2005, Chapter 148)
             2566          63M-1-406, (Renumbered from 63-38f-406, as renumbered and amended by Laws of
             2567      Utah 2005, Chapter 148)
             2568          63M-1-407, (Renumbered from 63-38f-407, as renumbered and amended by Laws of
             2569      Utah 2005, Chapter 148)
             2570          63M-1-408, (Renumbered from 63-38f-408, as renumbered and amended by Laws of
             2571      Utah 2005, Chapter 148)
             2572          63M-1-409, (Renumbered from 63-38f-409, as renumbered and amended by Laws of
             2573      Utah 2005, Chapter 148)
             2574          63M-1-410, (Renumbered from 63-38f-410, as renumbered and amended by Laws of
             2575      Utah 2005, Chapter 148)
             2576          63M-1-411, (Renumbered from 63-38f-411, as renumbered and amended by Laws of
             2577      Utah 2005, Chapter 148)

             2578          63M-1-412, (Renumbered from 63-38f-412, as last amended by Laws of Utah 2006,
             2579      Chapter 223)
             2580          63M-1-413, (Renumbered from 63-38f-413, as last amended by Laws of Utah 2006,
             2581      Chapter 223)
             2582          63M-1-414, (Renumbered from 63-38f-414, as renumbered and amended by Laws of
             2583      Utah 2005, Chapter 148)
             2584          63M-1-415, (Renumbered from 63-38f-415, as renumbered and amended by Laws of
             2585      Utah 2005, Chapter 148)
             2586          63M-1-416, (Renumbered from 63-38f-416, as last amended by Laws of Utah 2006,
             2587      Chapter 52)
             2588          63M-1-501, (Renumbered from 63-38f-501, as last amended by Laws of Utah 2007,
             2589      Chapter 306)
             2590          63M-1-502, (Renumbered from 63-38f-501.5, as enacted by Laws of Utah 2006,
             2591      Chapter 52)
             2592          63M-1-503, (Renumbered from 63-38f-502, as last amended by Laws of Utah 2006,
             2593      Chapter 223)
             2594          63M-1-504, (Renumbered from 63-38f-503, as last amended by Laws of Utah 2006,
             2595      Chapter 223)
             2596          63M-1-601, (Renumbered from 63-38f-601, as renumbered and amended by Laws of
             2597      Utah 2005, Chapter 148)
             2598          63M-1-602, (Renumbered from 63-38f-602, as renumbered and amended by Laws of
             2599      Utah 2005, Chapter 148)
             2600          63M-1-603, (Renumbered from 63-38f-603, as renumbered and amended by Laws of
             2601      Utah 2005, Chapter 148)
             2602          63M-1-604, (Renumbered from 63-38f-604, as renumbered and amended by Laws of
             2603      Utah 2005, Chapter 148)
             2604          63M-1-605, (Renumbered from 63-38f-605, as renumbered and amended by Laws of
             2605      Utah 2005, Chapter 148)

             2606          63M-1-606, (Renumbered from 63-38f-606, as renumbered and amended by Laws of
             2607      Utah 2005, Chapter 148)
             2608          63M-1-607, (Renumbered from 63-38f-607, as renumbered and amended by Laws of
             2609      Utah 2005, Chapter 148)
             2610          63M-1-608, (Renumbered from 63-38f-608, as last amended by Laws of Utah 2007,
             2611      Chapter 286)
             2612          63M-1-701, (Renumbered from 63-38f-702, as last amended by Laws of Utah 2007,
             2613      Chapter 11)
             2614          63M-1-702, (Renumbered from 63-38f-701, as renumbered and amended by Laws of
             2615      Utah 2005, Chapter 148)
             2616          63M-1-703, (Renumbered from 63-38f-703, as last amended by Laws of Utah 2007,
             2617      Chapter 11)
             2618          63M-1-704, (Renumbered from 63-38f-704, as last amended by Laws of Utah 2007,
             2619      Chapter 11)
             2620          63M-1-705, (Renumbered from 63-38f-705, as enacted by Laws of Utah 2007, Chapter
             2621      11)
             2622          63M-1-801, (Renumbered from 63-38f-801, as renumbered and amended by Laws of
             2623      Utah 2005, Chapter 148)
             2624          63M-1-802, (Renumbered from 63-38f-802, as renumbered and amended by Laws of
             2625      Utah 2005, Chapter 148)
             2626          63M-1-901, (Renumbered from 63-38f-901, as renumbered and amended by Laws of
             2627      Utah 2005, Chapter 148)
             2628          63M-1-902, (Renumbered from 63-38f-902, as renumbered and amended by Laws of
             2629      Utah 2005, Chapter 148)
             2630          63M-1-903, (Renumbered from 63-38f-903, as renumbered and amended by Laws of
             2631      Utah 2005, Chapter 148)
             2632          63M-1-904, (Renumbered from 63-38f-903.5, as enacted by Laws of Utah 2007,
             2633      Chapter 50)

             2634          63M-1-905, (Renumbered from 63-38f-904, as last amended by Laws of Utah 2007,
             2635      Chapter 328)
             2636          63M-1-906, (Renumbered from 63-38f-905, as renumbered and amended by Laws of
             2637      Utah 2005, Chapter 148)
             2638          63M-1-907, (Renumbered from 63-38f-906, as renumbered and amended by Laws of
             2639      Utah 2005, Chapter 148)
             2640          63M-1-908, (Renumbered from 63-38f-907, as renumbered and amended by Laws of
             2641      Utah 2005, Chapter 148)
             2642          63M-1-909, (Renumbered from 63-38f-908, as renumbered and amended by Laws of
             2643      Utah 2005, Chapter 148)
             2644          63M-1-910, (Renumbered from 63-38f-909, as renumbered and amended by Laws of
             2645      Utah 2005, Chapter 148)
             2646          63M-1-1001, (Renumbered from 63-38f-1001, as renumbered and amended by Laws of
             2647      Utah 2005, Chapter 148)
             2648          63M-1-1002, (Renumbered from 63-38f-1002, as renumbered and amended by Laws of
             2649      Utah 2005, Chapter 148)
             2650          63M-1-1003, (Renumbered from 63-38f-1003, as renumbered and amended by Laws of
             2651      Utah 2005, Chapter 148)
             2652          63M-1-1101, (Renumbered from 63-38f-1101, as renumbered and amended by Laws of
             2653      Utah 2005, Chapter 148)
             2654          63M-1-1102, (Renumbered from 63-38f-1102, as last amended by Laws of Utah 2006,
             2655      Chapter 223)
             2656          63M-1-1103, (Renumbered from 63-38f-1103, as renumbered and amended by Laws of
             2657      Utah 2005, Chapter 148)
             2658          63M-1-1104, (Renumbered from 63-38f-1104, as renumbered and amended by Laws of
             2659      Utah 2005, Chapter 148)
             2660          63M-1-1105, (Renumbered from 63-38f-1105, as renumbered and amended by Laws of
             2661      Utah 2005, Chapter 148)

             2662          63M-1-1106, (Renumbered from 63-38f-1106, as renumbered and amended by Laws of
             2663      Utah 2005, Chapter 148)
             2664          63M-1-1107, (Renumbered from 63-38f-1107, as renumbered and amended by Laws of
             2665      Utah 2005, Chapter 148)
             2666          63M-1-1108, (Renumbered from 63-38f-1108, as renumbered and amended by Laws of
             2667      Utah 2005, Chapter 148)
             2668          63M-1-1109, (Renumbered from 63-38f-1109, as renumbered and amended by Laws of
             2669      Utah 2005, Chapter 148)
             2670          63M-1-1110, (Renumbered from 63-38f-1110, as last amended by Laws of Utah 2006,
             2671      Chapter 223)
             2672          63M-1-1111, (Renumbered from 63-38f-1111, as last amended by Laws of Utah 2006,
             2673      Chapter 52)
             2674          63M-1-1112, (Renumbered from 63-38f-1112, as renumbered and amended by Laws of
             2675      Utah 2005, Chapter 148)
             2676          63M-1-1201, (Renumbered from 63-38f-1201, as renumbered and amended by Laws of
             2677      Utah 2005, Chapter 148)
             2678          63M-1-1202, (Renumbered from 63-38f-1202, as last amended by Laws of Utah 2005,
             2679      Chapter 14 and renumbered and amended by Laws of Utah 2005, Chapter 148)
             2680          63M-1-1203, (Renumbered from 63-38f-1203, as last amended by Laws of Utah 2006,
             2681      Chapter 223)
             2682          63M-1-1204, (Renumbered from 63-38f-1204, as renumbered and amended by Laws of
             2683      Utah 2005, Chapter 148)
             2684          63M-1-1205, (Renumbered from 63-38f-1205, as last amended by Laws of Utah 2006,
             2685      Chapter 14)
             2686          63M-1-1206, (Renumbered from 63-38f-1206, as last amended by Laws of Utah 2006,
             2687      Chapter 52)
             2688          63M-1-1207, (Renumbered from 63-38f-1207, as renumbered and amended by Laws of
             2689      Utah 2005, Chapter 148)

             2690          63M-1-1208, (Renumbered from 63-38f-1208, as renumbered and amended by Laws of
             2691      Utah 2005, Chapter 148)
             2692          63M-1-1209, (Renumbered from 63-38f-1209, as renumbered and amended by Laws of
             2693      Utah 2005, Chapter 148)
             2694          63M-1-1210, (Renumbered from 63-38f-1210, as renumbered and amended by Laws of
             2695      Utah 2005, Chapter 148)
             2696          63M-1-1211, (Renumbered from 63-38f-1211, as last amended by Laws of Utah 2006,
             2697      Chapters 46, and 52)
             2698          63M-1-1212, (Renumbered from 63-38f-1212, as renumbered and amended by Laws of
             2699      Utah 2005, Chapter 148)
             2700          63M-1-1213, (Renumbered from 63-38f-1213, as renumbered and amended by Laws of
             2701      Utah 2005, Chapter 148)
             2702          63M-1-1214, (Renumbered from 63-38f-1214, as renumbered and amended by Laws of
             2703      Utah 2005, Chapter 148)
             2704          63M-1-1215, (Renumbered from 63-38f-1215, as last amended by Laws of Utah 2005,
             2705      Chapter 14 and renumbered and amended by Laws of Utah 2005, Chapter 148)
             2706          63M-1-1216, (Renumbered from 63-38f-1216, as renumbered and amended by Laws of
             2707      Utah 2005, Chapter 148)
             2708          63M-1-1217, (Renumbered from 63-38f-1217, as renumbered and amended by Laws of
             2709      Utah 2005, Chapter 148)
             2710          63M-1-1218, (Renumbered from 63-38f-1218, as last amended by Laws of Utah 2005,
             2711      Chapter 14 and renumbered and amended by Laws of Utah 2005, Chapter 148)
             2712          63M-1-1219, (Renumbered from 63-38f-1219, as last amended by Laws of Utah 2005,
             2713      Chapter 14 and renumbered and amended by Laws of Utah 2005, Chapter 148)
             2714          63M-1-1220, (Renumbered from 63-38f-1220, as last amended by Laws of Utah 2005,
             2715      Chapter 14 and renumbered and amended by Laws of Utah 2005, Chapter 148)
             2716          63M-1-1221, (Renumbered from 63-38f-1221, as renumbered and amended by Laws of
             2717      Utah 2005, Chapter 148)

             2718          63M-1-1222, (Renumbered from 63-38f-1222, as renumbered and amended by Laws of
             2719      Utah 2005, Chapter 148)
             2720          63M-1-1223, (Renumbered from 63-38f-1223, as renumbered and amended by Laws of
             2721      Utah 2005, Chapter 148)
             2722          63M-1-1224, (Renumbered from 63-38f-1224, as last amended by Laws of Utah 2006,
             2723      Chapter 14)
             2724          63M-1-1301, (Renumbered from 63-38f-1301, as renumbered and amended by Laws of
             2725      Utah 2005, Chapter 148)
             2726          63M-1-1302, (Renumbered from 63-38f-1302, as renumbered and amended by Laws of
             2727      Utah 2005, Chapter 148)
             2728          63M-1-1303, (Renumbered from 63-38f-1303, as last amended by Laws of Utah 2005,
             2729      Chapter 3 and renumbered and amended by Laws of Utah 2005, Chapter 148)
             2730          63M-1-1304, (Renumbered from 63-38f-1304, as last amended by Laws of Utah 2006,
             2731      Chapter 52)
             2732          63M-1-1305, (Renumbered from 63-38f-1305, as last amended by Laws of Utah 2006,
             2733      Chapter 52)
             2734          63M-1-1306, (Renumbered from 63-38f-1306, as renumbered and amended by Laws of
             2735      Utah 2005, Chapter 148)
             2736          63M-1-1307, (Renumbered from 63-38f-1307, as last amended by Laws of Utah 2006,
             2737      Chapter 52)
             2738          63M-1-1308, (Renumbered from 63-38f-1308, as renumbered and amended by Laws of
             2739      Utah 2005, Chapter 148)
             2740          63M-1-1309, (Renumbered from 63-38f-1309, as last amended by Laws of Utah 2005,
             2741      Chapter 272 and renumbered and amended by Laws of Utah 2005, Chapter 148)
             2742          63M-1-1401, (Renumbered from 63-38f-1406, as last amended by Laws of Utah 2005,
             2743      First Special Session, Chapter 12)
             2744          63M-1-1402, (Renumbered from 63-38f-1407, as last amended by Laws of Utah 2005,
             2745      First Special Session, Chapter 12)

             2746          63M-1-1403, (Renumbered from 63-38f-1408, as last amended by Laws of Utah 2005,
             2747      First Special Session, Chapter 12)
             2748          63M-1-1404, (Renumbered from 63-38f-1409, as last amended by Laws of Utah 2005,
             2749      First Special Session, Chapter 12)
             2750          63M-1-1405, (Renumbered from 63-38f-1410, as renumbered and amended by Laws of
             2751      Utah 2005, Chapter 148)
             2752          63M-1-1406, (Renumbered from 63-38f-1411, as last amended by Laws of Utah 2007,
             2753      Chapter 128)
             2754          63M-1-1501, (Renumbered from 63-38f-1501, as renumbered and amended by Laws of
             2755      Utah 2005, Chapter 148)
             2756          63M-1-1502, (Renumbered from 63-38f-1502, as renumbered and amended by Laws of
             2757      Utah 2005, Chapter 148)
             2758          63M-1-1503, (Renumbered from 63-38f-1503, as renumbered and amended by Laws of
             2759      Utah 2005, Chapter 148)
             2760          63M-1-1504, (Renumbered from 63-38f-1504, as renumbered and amended by Laws of
             2761      Utah 2005, Chapter 148)
             2762          63M-1-1505, (Renumbered from 63-38f-1505, as renumbered and amended by Laws of
             2763      Utah 2005, Chapter 148)
             2764          63M-1-1601, (Renumbered from 63-38f-1601, as renumbered and amended by Laws of
             2765      Utah 2005, Chapter 148)
             2766          63M-1-1602, (Renumbered from 63-38f-1602, as renumbered and amended by Laws of
             2767      Utah 2005, Chapter 148)
             2768          63M-1-1603, (Renumbered from 63-38f-1603, as renumbered and amended by Laws of
             2769      Utah 2005, Chapter 148)
             2770          63M-1-1604, (Renumbered from 63-38f-1604, as last amended by Laws of Utah 2006,
             2771      Chapter 52)
             2772          63M-1-1605, (Renumbered from 63-38f-1605, as renumbered and amended by Laws of
             2773      Utah 2005, Chapter 148)

             2774          63M-1-1606, (Renumbered from 63-38f-1606, as renumbered and amended by Laws of
             2775      Utah 2005, Chapter 148)
             2776          63M-1-1701, (Renumbered from 63-38f-1701, as enacted by Laws of Utah 2005,
             2777      Chapter 272)
             2778          63M-1-1702, (Renumbered from 63-38f-1702, as enacted by Laws of Utah 2005,
             2779      Chapter 272)
             2780          63M-1-1703, (Renumbered from 63-38f-1703, as enacted by Laws of Utah 2005,
             2781      Chapter 272)
             2782          63M-1-1704, (Renumbered from 63-38f-1704, as enacted by Laws of Utah 2005,
             2783      Chapter 272)
             2784          63M-1-1705, (Renumbered from 63-38f-1705, as enacted by Laws of Utah 2005,
             2785      Chapter 272)
             2786          63M-1-1706, (Renumbered from 63-38f-1706, as enacted by Laws of Utah 2005,
             2787      Chapter 272)
             2788          63M-1-1801, (Renumbered from 63-38f-1801, as enacted by Laws of Utah 2005,
             2789      Chapter 210)
             2790          63M-1-1802, (Renumbered from 63-38f-1802, as enacted by Laws of Utah 2005,
             2791      Chapter 210)
             2792          63M-1-1803, (Renumbered from 63-38f-1803, as enacted by Laws of Utah 2005,
             2793      Chapter 210)
             2794          63M-1-1804, (Renumbered from 63-38f-1804, as enacted by Laws of Utah 2005,
             2795      Chapter 210)
             2796          63M-1-1805, (Renumbered from 63-38f-1805, as enacted by Laws of Utah 2005,
             2797      Chapter 210)
             2798          63M-1-1901, (Renumbered from 63-38f-1901, as enacted by Laws of Utah 2005,
             2799      Chapter 191)
             2800          63M-1-2001, (Renumbered from 63-38f-2001, as enacted by Laws of Utah 2005,
             2801      Chapter 151)

             2802          63M-1-2002, (Renumbered from 63-38f-2002, as last amended by Laws of Utah 2007,
             2803      Chapter 329)
             2804          63M-1-2003, (Renumbered from 63-38f-2003, as enacted by Laws of Utah 2005,
             2805      Chapter 151)
             2806          63M-1-2004, (Renumbered from 63-38f-2004, as enacted by Laws of Utah 2005,
             2807      Chapter 151)
             2808          63M-1-2005, (Renumbered from 63-38f-2005, as enacted by Laws of Utah 2005,
             2809      Chapter 151)
             2810          63M-1-2006, (Renumbered from 63-38f-2006, as enacted by Laws of Utah 2005,
             2811      Chapter 151)
             2812          63M-1-2101, (Renumbered from 63-38f-2101, as enacted by Laws of Utah 2006,
             2813      Chapter 146)
             2814          63M-1-2201, (Renumbered from 63-38f-2201, as enacted by Laws of Utah 2007,
             2815      Chapter 3)
             2816          63M-1-2202, (Renumbered from 63-38f-2202, as enacted by Laws of Utah 2007,
             2817      Chapter 3)
             2818          63M-1-2203, (Renumbered from 63-38f-2203, as enacted by Laws of Utah 2007,
             2819      Chapter 3)
             2820          63M-1-2301, (Renumbered from 63-38f-2301, as enacted by Laws of Utah 2007,
             2821      Chapter 327)
             2822          63M-1-2302, (Renumbered from 63-38f-2302, as enacted by Laws of Utah 2007,
             2823      Chapter 327)
             2824          63M-1-2303, (Renumbered from 63-38f-2303, as enacted by Laws of Utah 2007,
             2825      Chapter 327)
             2826          63M-1-2304, (Renumbered from 63-38f-2304, as enacted by Laws of Utah 2007,
             2827      Chapter 327)
             2828          63M-1-2305, (Renumbered from 63-38f-2305, as enacted by Laws of Utah 2007,
             2829      Chapter 327)

             2830          63M-1-2306, (Renumbered from 63-38f-2306, as enacted by Laws of Utah 2007,
             2831      Chapter 327)
             2832          63M-2-101, (Renumbered from 63-38g-101, as enacted by Laws of Utah 2006, Chapter
             2833      123)
             2834          63M-2-102, (Renumbered from 63-38g-102, as enacted by Laws of Utah 2006, Chapter
             2835      123)
             2836          63M-2-201, (Renumbered from 63-38g-201, as enacted by Laws of Utah 2006, Chapter
             2837      123)
             2838          63M-2-202, (Renumbered from 63-38g-202, as enacted by Laws of Utah 2006, Chapter
             2839      123)
             2840          63M-2-203, (Renumbered from 63-38g-203, as enacted by Laws of Utah 2006, Chapter
             2841      123)
             2842          63M-2-204, (Renumbered from 63-38g-204, as enacted by Laws of Utah 2006, Chapter
             2843      123)
             2844          63M-2-301, (Renumbered from 63-38g-301, as enacted by Laws of Utah 2006, Chapter
             2845      123)
             2846          63M-2-302, (Renumbered from 63-38g-302, as enacted by Laws of Utah 2006, Chapter
             2847      123)
             2848          63M-2-303, (Renumbered from 63-38g-303, as enacted by Laws of Utah 2006, Chapter
             2849      123)
             2850          63M-3-102, (Renumbered from 63-45a-1, as last amended by Laws of Utah 1987,
             2851      Chapter 92)
             2852          63M-3-103, (Renumbered from 63-45a-2, as last amended by Laws of Utah 1994,
             2853      Chapter 12)
             2854          63M-3-201, (Renumbered from 63-45a-3, as enacted by Laws of Utah 1980, Chapter
             2855      26)
             2856          63M-3-202, (Renumbered from 63-45a-4, as enacted by Laws of Utah 1980, Chapter
             2857      26)

             2858          63M-4-101, (Renumbered from 63-53b-101, as enacted by Laws of Utah 2006, Chapter
             2859      180)
             2860          63M-4-102, (Renumbered from 63-53b-102, as enacted by Laws of Utah 2006, Chapter
             2861      180)
             2862          63M-4-201, (Renumbered from 63-53b-201, as last amended by Laws of Utah 2007,
             2863      Chapter 66)
             2864          63M-4-202, (Renumbered from 63-53b-202, as enacted by Laws of Utah 2006, Chapter
             2865      180)
             2866          63M-4-203, (Renumbered from 63-53b-203, as enacted by Laws of Utah 2006, Chapter
             2867      180)
             2868          63M-4-301, (Renumbered from 63-53b-301, as last amended by Laws of Utah 2007,
             2869      Chapter 346)
             2870          63M-4-302, (Renumbered from 63-53b-302, as enacted by Laws of Utah 2006, Chapter
             2871      180)
             2872          63M-5-102, (Renumbered from 63-51-1, as last amended by Laws of Utah 1981,
             2873      Chapter 242)
             2874          63M-5-103, (Renumbered from 63-51-2, as last amended by Laws of Utah 2007,
             2875      Chapter 329)
             2876          63M-5-201, (Renumbered from 63-51-3, as last amended by Laws of Utah 1988,
             2877      Chapter 3)
             2878          63M-5-202, (Renumbered from 63-51-4, as last amended by Laws of Utah 2006,
             2879      Chapter 253)
             2880          63M-5-301, (Renumbered from 63-51-5, as last amended by Laws of Utah 1991,
             2881      Chapter 137)
             2882          63M-5-302, (Renumbered from 63-51-6, as last amended by Laws of Utah 1994,
             2883      Chapter 120)
             2884          63M-5-303, (Renumbered from 63-51-7, as last amended by Laws of Utah 1987,
             2885      Chapter 5)

             2886          63M-5-304, (Renumbered from 63-51-8, as last amended by Laws of Utah 1994,
             2887      Chapter 120)
             2888          63M-5-305, (Renumbered from 63-51-9, as enacted by Laws of Utah 1975, Chapter
             2889      133)
             2890          63M-5-306, (Renumbered from 63-51-10, as last amended by Laws of Utah 2005,
             2891      Chapter 148)
             2892          63M-6-201, (Renumbered from 63-49a-1, as last amended by Laws of Utah 2005,
             2893      Chapter 148)
             2894          63M-6-202, (Renumbered from 63-49a-2, as last amended by Laws of Utah 2005,
             2895      Chapter 148)
             2896          63M-6-203, (Renumbered from 63-49a-3, as last amended by Laws of Utah 2005,
             2897      Chapter 148)
             2898          63M-7-201, (Renumbered from 63-25a-101, as last amended by Laws of Utah 1999,
             2899      Chapter 270)
             2900          63M-7-202, (Renumbered from 63-25a-102, as last amended by Laws of Utah 2007,
             2901      Chapter 330)
             2902          63M-7-203, (Renumbered from 63-25a-103, as last amended by Laws of Utah 2002,
             2903      Chapter 176)
             2904          63M-7-204, (Renumbered from 63-25a-104, as last amended by Laws of Utah 2007,
             2905      Chapter 330)
             2906          63M-7-205, (Renumbered from 63-25a-104.5, as last amended by Laws of Utah 1999,
             2907      Chapter 270)
             2908          63M-7-206, (Renumbered from 63-25a-105, as renumbered and amended by Laws of
             2909      Utah 1996, Chapter 242)
             2910          63M-7-207, (Renumbered from 63-25a-106, as renumbered and amended by Laws of
             2911      Utah 1996, Chapter 242 and repealed and reenacted by Laws of Utah 1996, Chapter
             2912      243)
             2913          63M-7-301, (Renumbered from 63-25a-201, as last amended by Laws of Utah 2003,

             2914      Chapter 171)
             2915          63M-7-302, (Renumbered from 63-25a-202, as last amended by Laws of Utah 2002,
             2916      Chapter 115)
             2917          63M-7-303, (Renumbered from 63-25a-203, as last amended by Laws of Utah 2007,
             2918      Chapter 218)
             2919          63M-7-304, (Renumbered from 63-25a-205, as last amended by Laws of Utah 2002,
             2920      Chapter 115)
             2921          63M-7-305, (Renumbered from 63-25a-205.5, as last amended by Laws of Utah 2007,
             2922      Chapter 218)
             2923          63M-7-306, (Renumbered from 63-25a-207, as last amended by Laws of Utah 2002,
             2924      Chapter 115)
             2925          63M-7-401, (Renumbered from 63-25a-301, as last amended by Laws of Utah 2003,
             2926      Chapter 171)
             2927          63M-7-402, (Renumbered from 63-25a-302, as last amended by Laws of Utah 1997,
             2928      Chapter 276)
             2929          63M-7-403, (Renumbered from 63-25a-303, as renumbered and amended by Laws of
             2930      Utah 1996, Chapter 242)
             2931          63M-7-404, (Renumbered from 63-25a-304, as last amended by Laws of Utah 1997,
             2932      Chapter 342)
             2933          63M-7-405, (Renumbered from 63-25a-305, as last amended by Laws of Utah 1996,
             2934      Chapter 243 and renumbered and amended by Laws of Utah 1996, Chapter 242)
             2935          63M-7-406, (Renumbered from 63-25a-306, as renumbered and amended by Laws of
             2936      Utah 1996, Chapter 242)
             2937          63M-7-501, (Renumbered from 63-25a-401, as renumbered and amended by Laws of
             2938      Utah 1996, Chapter 242)
             2939          63M-7-502, (Renumbered from 63-25a-402, as last amended by Laws of Utah 2002,
             2940      Chapter 256)
             2941          63M-7-503, (Renumbered from 63-25a-403, as last amended by Laws of Utah 2002,

             2942      Chapter 35)
             2943          63M-7-504, (Renumbered from 63-25a-404, as last amended by Laws of Utah 2002,
             2944      Chapter 176)
             2945          63M-7-505, (Renumbered from 63-25a-405, as last amended by Laws of Utah 2002,
             2946      Chapter 256)
             2947          63M-7-506, (Renumbered from 63-25a-406, as last amended by Laws of Utah 2007,
             2948      Chapter 300)
             2949          63M-7-507, (Renumbered from 63-25a-407, as last amended by Laws of Utah 2002,
             2950      Chapter 256)
             2951          63M-7-508, (Renumbered from 63-25a-408, as renumbered and amended by Laws of
             2952      Utah 1996, Chapter 242)
             2953          63M-7-509, (Renumbered from 63-25a-409, as last amended by Laws of Utah 2000,
             2954      Chapter 235)
             2955          63M-7-510, (Renumbered from 63-25a-410, as last amended by Laws of Utah 2000,
             2956      Chapters 28, and 235)
             2957          63M-7-511, (Renumbered from 63-25a-411, as last amended by Laws of Utah 2002,
             2958      Chapters 35, and 256)
             2959          63M-7-512, (Renumbered from 63-25a-412, as last amended by Laws of Utah 2000,
             2960      Chapter 235)
             2961          63M-7-513, (Renumbered from 63-25a-413, as last amended by Laws of Utah 2001,
             2962      Chapter 116)
             2963          63M-7-514, (Renumbered from 63-25a-414, as last amended by Laws of Utah 2002,
             2964      Chapter 256)
             2965          63M-7-515, (Renumbered from 63-25a-415, as last amended by Laws of Utah 2000,
             2966      Chapter 235)
             2967          63M-7-516, (Renumbered from 63-25a-416, as renumbered and amended by Laws of
             2968      Utah 1996, Chapter 242)
             2969          63M-7-517, (Renumbered from 63-25a-417, as renumbered and amended by Laws of

             2970      Utah 1996, Chapter 242)
             2971          63M-7-518, (Renumbered from 63-25a-418, as renumbered and amended by Laws of
             2972      Utah 1996, Chapter 242)
             2973          63M-7-519, (Renumbered from 63-25a-419, as last amended by Laws of Utah 2002,
             2974      Chapter 256)
             2975          63M-7-520, (Renumbered from 63-25a-420, as renumbered and amended by Laws of
             2976      Utah 1996, Chapter 242)
             2977          63M-7-521, (Renumbered from 63-25a-421, as renumbered and amended by Laws of
             2978      Utah 1996, Chapter 242)
             2979          63M-7-522, (Renumbered from 63-25a-422, as renumbered and amended by Laws of
             2980      Utah 1996, Chapter 242)
             2981          63M-7-523, (Renumbered from 63-25a-423, as renumbered and amended by Laws of
             2982      Utah 1996, Chapter 242)
             2983          63M-7-524, (Renumbered from 63-25a-424, as renumbered and amended by Laws of
             2984      Utah 1996, Chapter 242)
             2985          63M-7-525, (Renumbered from 63-25a-428, as last amended by Laws of Utah 2002,
             2986      Chapter 256)
             2987          63M-7-601, (Renumbered from 63-25a-601, as enacted by Laws of Utah 2007, Chapter
             2988      300)
             2989          63M-7-602, (Renumbered from 63-25a-602, as enacted by Laws of Utah 2007, Chapter
             2990      300)
             2991          63M-7-603, (Renumbered from 63-25a-603, as enacted by Laws of Utah 2007, Chapter
             2992      300)
             2993          63M-7-604, (Renumbered from 63-25a-604, as enacted by Laws of Utah 2007, Chapter
             2994      300)
             2995          63M-7-605, (Renumbered from 63-25a-605, as enacted by Laws of Utah 2007, Chapter
             2996      300)
             2997          63M-8-201, (Renumbered from 63-47-1, as last amended by Laws of Utah 2004,

             2998      Chapter 238)
             2999          63M-8-202, (Renumbered from 63-47-2, as last amended by Laws of Utah 2004,
             3000      Chapter 238)
             3001          63M-8-203, (Renumbered from 63-47-3, as last amended by Laws of Utah 2004,
             3002      Chapter 238)
             3003          63M-8-204, (Renumbered from 63-47-4, as enacted by Laws of Utah 1973, Chapter
             3004      173)
             3005          63M-8-301, (Renumbered from 63-47-5, as last amended by Laws of Utah 2004,
             3006      Chapter 238)
             3007          63M-8-302, (Renumbered from 63-47-7, as last amended by Laws of Utah 2004,
             3008      Chapters 238, and 352)
             3009          63M-8-303, (Renumbered from 63-47-8, as enacted by Laws of Utah 1973, Chapter
             3010      173)
             3011          63M-9-101, (Renumbered from 63-75-1, as last amended by Laws of Utah 1996,
             3012      Chapter 136)
             3013          63M-9-102, (Renumbered from 63-75-2, as last amended by Laws of Utah 1999,
             3014      Chapter 104)
             3015          63M-9-103, (Renumbered from 63-75-3, as last amended by Laws of Utah 2003,
             3016      Chapter 171)
             3017          63M-9-104, (Renumbered from 63-75-8, as enacted by Laws of Utah 1996, Chapter
             3018      136)
             3019          63M-9-201, (Renumbered from 63-75-4, as last amended by Laws of Utah 1999,
             3020      Chapter 104)
             3021          63M-9-202, (Renumbered from 63-75-5, as last amended by Laws of Utah 2003,
             3022      Chapter 171)
             3023          63M-9-203, (Renumbered from 63-75-5.5, as enacted by Laws of Utah 1993, Chapter
             3024      12)
             3025          63M-9-301, (Renumbered from 63-75-5.7, as last amended by Laws of Utah 1996,

             3026      Chapter 136)
             3027          63M-9-401, (Renumbered from 63-75-6, as last amended by Laws of Utah 2005,
             3028      Chapter 81)
             3029          63M-9-402, (Renumbered from 63-75-6.5, as enacted by Laws of Utah 1996, Chapter
             3030      136)
             3031          63M-9-501, (Renumbered from 63-75-7, as last amended by Laws of Utah 2002,
             3032      Chapter 210)
             3033          63M-10-101, (Renumbered from 63-92-1, as enacted by Laws of Utah 1996, Chapter
             3034      165)
             3035          63M-10-201, (Renumbered from 63-92-2, as last amended by Laws of Utah 1999,
             3036      Chapter 304)
             3037          63M-10-202, (Renumbered from 63-92-3, as last amended by Laws of Utah 2003,
             3038      Chapter 171)
             3039          63M-11-101, (Renumbered from 63-99-101, as enacted by Laws of Utah 2005, Chapter
             3040      279)
             3041          63M-11-102, (Renumbered from 63-99-103, as enacted by Laws of Utah 2005, Chapter
             3042      279)
             3043          63M-11-103, (Renumbered from 63-99-102, as last amended by Laws of Utah 2007,
             3044      Chapter 317)
             3045          63M-11-201, (Renumbered from 63-99-104, as last amended by Laws of Utah 2007,
             3046      Chapter 317)
             3047          63M-11-202, (Renumbered from 63-99-105, as last amended by Laws of Utah 2007,
             3048      Chapter 317)
             3049          63M-11-203, (Renumbered from 63-99-106, as enacted by Laws of Utah 2005, Chapter
             3050      279)
             3051          63M-11-204, (Renumbered from 63-99-107, as enacted by Laws of Utah 2005, Chapter
             3052      279)
             3053          63M-11-205, (Renumbered from 63-99-108, as enacted by Laws of Utah 2005, Chapter

             3054      279)
             3055          63M-11-206, (Renumbered from 63-99-109, as enacted by Laws of Utah 2005, Chapter
             3056      279)
             3057          63M-11-207, (Renumbered from 63-99-110, as repealed and reenacted by Laws of Utah
             3058      2007, Chapter 317)
             3059      REPEALS:
             3060          63-46a-17, as enacted by Laws of Utah 2001, Chapter 138
             3061          63-97-101, as last amended by Laws of Utah 2000, Chapters 293, and 351
             3062     
             3063      Be it enacted by the Legislature of the state of Utah:
             3064          Section 1. Section 3-1-6 is amended to read:
             3065           3-1-6. Filing articles of incorporation -- Certificate of incorporation -- Fees --
             3066      Constructive notice.
             3067          (1) The articles of incorporation shall be filed with the Division of Corporations and
             3068      Commercial Code, which shall thereupon issue a certificate of incorporation. This certificate or
             3069      a certified copy of the same shall be prima facie evidence of the due incorporation of the
             3070      association. Upon the issuance of such certificate of incorporation, the corporate existence
             3071      begins.
             3072          (2) The Division of Corporations and Commercial Code shall establish a fee pursuant to
             3073      Section [ 63-38-3.2 ] 63J-1-303 for filing articles of incorporation with the division, for securing
             3074      a certified copy of the articles, for the issuance of a certificate of incorporation, and for filing
             3075      amendments to the articles, whether incorporated with or without stock.
             3076          (3) No person dealing with the association may be charged with constructive notice of
             3077      the contents of the articles or amendments thereto by reason of such filing or recording.
             3078          Section 2. Section 3-1-36 is amended to read:
             3079           3-1-36. Articles of merger or consolidation -- Execution, contents, and filing of
             3080      articles -- Issuance of certificate of merger or consolidation -- Fees.
             3081          (1) Upon approval, articles of merger or consolidation shall be signed in duplicate by

             3082      each party to the merger or consolidation by its president or a vice president and by its secretary
             3083      or an assistant secretary and verified by one of the officers of each association and corporation
             3084      signing the articles.
             3085          (2) The articles shall set forth:
             3086          (a) the plan of merger or consolidation;
             3087          (b) a statement:
             3088          (i) of the date of the meeting at which the plan of merger or consolidation was
             3089      considered and voted upon;
             3090          (ii) that a quorum was present at the meeting; and
             3091          (iii) that notice of the meeting was given to all members and shareholders entitled to
             3092      notice;
             3093          (c) the number of members entitled to vote and the number of shares outstanding
             3094      entitled to vote; and
             3095          (d) the number of members who voted for and against the plan, respectively, and the
             3096      number of shares voted for and against the plan, respectively.
             3097          (3) (a) Duplicate originals of the articles of merger or consolidation shall be delivered to
             3098      the Division of Corporations and Commercial Code and the fee established under Section
             3099      [ 63-38-3.2 ] 63J-1-303 shall be paid.
             3100          (b) If the Division of Corporations and Commercial Code finds that the articles conform
             3101      to law, it shall, after the fees have been paid:
             3102          (i) endorse on each of the duplicate originals the word "filed" and the month, day, and
             3103      year of the filing;
             3104          (ii) file one of the duplicate originals in its office; and
             3105          (iii) issue a certificate of merger or consolidation, attach the other duplicate original,
             3106      and return the certificate to the surviving or new corporation, or its representative.
             3107          Section 3. Section 4-1-3.5 is amended to read:
             3108           4-1-3.5. Procedures -- Adjudicative proceedings.
             3109          The Department of Agriculture and Food and its divisions shall comply with the

             3110      procedures and requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             3111      Procedures Act, in their adjudicative proceedings.
             3112          Section 4. Section 4-2-2 is amended to read:
             3113           4-2-2. Functions, powers, and duties of department -- Fees for services --
             3114      Marketing orders -- Procedure.
             3115          (1) The department shall:
             3116          (a) inquire into and promote the interests and products of agriculture and its allied
             3117      industries;
             3118          (b) promote methods for increasing the production and facilitating the distribution of
             3119      the agricultural products of the state;
             3120          (c) (i) inquire into the cause of contagious, infectious, and communicable diseases
             3121      among livestock and the means for their prevention and cure; and
             3122          (ii) initiate, implement, and administer plans and programs to prevent the spread of
             3123      diseases among livestock;
             3124          (d) encourage experiments designed to determine the best means and methods for the
             3125      control of diseases among domestic and wild animals;
             3126          (e) issue marketing orders for any designated agricultural product to:
             3127          (i) promote orderly market conditions for any product;
             3128          (ii) give the producer a fair return on the producer's investment at the marketplace; and
             3129          (iii) only promote and not restrict or restrain the marketing of Utah agricultural
             3130      commodities;
             3131          (f) administer and enforce all laws assigned to the department by the Legislature;
             3132          (g) establish standards and grades for agricultural products and fix and collect
             3133      reasonable fees for services performed by the department in conjunction with the grading of
             3134      agricultural products;
             3135          (h) establish operational standards for any establishment that manufactures, processes,
             3136      produces, distributes, stores, sells, or offers for sale any agricultural product;
             3137          (i) adopt, according to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah

             3138      Administrative Rulemaking Act, rules necessary for the effective administration of the
             3139      agricultural laws of the state;
             3140          (j) when necessary, make investigations, subpoena witnesses and records, conduct
             3141      hearings, issue orders, and make recommendations concerning all matters related to agriculture;
             3142          (k) (i) inspect any nursery, orchard, farm, garden, park, cemetery, greenhouse, or any
             3143      private or public place that may become infested or infected with harmful insects, plant diseases,
             3144      noxious or poisonous weeds, or other agricultural pests;
             3145          (ii) establish and enforce quarantines;
             3146          (iii) issue and enforce orders and rules for the control and eradication of pests, wherever
             3147      they may exist within the state; and
             3148          (iv) perform other duties relating to plants and plant products considered advisable and
             3149      not contrary to law;
             3150          (l) inspect apiaries for diseases inimical to bees and beekeeping;
             3151          (m) take charge of any agricultural exhibit within the state, if considered necessary by
             3152      the department, and award premiums at that exhibit;
             3153          (n) assist the Conservation Commission in the administration of Title 4, Chapter 18,
             3154      Conservation Commission Act, and administer and disburse any funds available to assist
             3155      conservation districts in the state in the conservation of the state's soil and water resources; and
             3156          (o) perform any additional functions, powers, and duties provided by law.
             3157          (2) The department, by following the procedures and requirements of Section
             3158      [ 63-38-3.2 ] 63J-1-303 , may adopt a schedule of fees assessed for services provided by the
             3159      department.
             3160          (3) (a) No marketing order issued under Subsection (1)(e) shall take effect until:
             3161          (i) the department gives notice of the proposed order to the producers and handlers of
             3162      the affected product;
             3163          (ii) the commissioner conducts a hearing on the proposed order; and
             3164          (iii) at least 50% of the registered producers and handlers of the affected products vote
             3165      in favor of the proposed order.

             3166          (b) (i) The department may establish boards of control to administer marketing orders
             3167      and the proceeds derived from any order.
             3168          (ii) The board of control shall:
             3169          (A) ensure that all proceeds are placed in an account in the board of control's name in a
             3170      depository institution; and
             3171          (B) ensure that the account is annually audited by an accountant approved by the
             3172      commissioner.
             3173          (4) Funds collected by grain grading, as provided by Subsection (1)(g), shall be
             3174      deposited in the General Fund as nonlapsing dedicated credits for the grain grading program.
             3175          Section 5. Section 4-2-8.5 is amended to read:
             3176           4-2-8.5. Salinity Offset Fund.
             3177          (1) As used in this section, "Colorado River Salinity Offset Program" means a program,
             3178      administered by the Division of Water Quality, allowing oil, gas, or mining companies and other
             3179      entities to provide funds to finance salinity reduction projects in the Colorado River Basin by
             3180      purchasing salinity credits as offsets against discharges made by the company under permits
             3181      issued by the Division of Water Quality.
             3182          (2) (a) There is created a restricted special revenue fund known as the "Salinity Offset
             3183      Fund."
             3184          (b) The fund shall consist of:
             3185          (i) monies received from the Division of Water Quality that have been collected as part
             3186      of the Colorado River Salinity Offset Program;
             3187          (ii) grants from local governments, the state, or the federal government;
             3188          (iii) grants from private entities; and
             3189          (iv) interest on fund monies.
             3190          (3) Any unallocated balance in the fund at the end of a fiscal year is nonlapsing.
             3191          (4) (a) The department shall:
             3192          (i) subject to the rules established under Subsection (4)(a)(ii), distribute fund monies to
             3193      farmers, ranchers, mutual irrigation companies, and other entities in the state to assist in

             3194      financing irrigation, rangeland, and watershed improvement projects that will, in accordance
             3195      with the Colorado River Salinity Offset Program, reduce salinity in the Colorado River; and
             3196          (ii) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             3197      Administrative Rulemaking Act, make rules establishing:
             3198          (A) a project funding application process;
             3199          (B) project funding requirements;
             3200          (C) project approval criteria; and
             3201          (D) standards for evaluating the effectiveness of funded projects in reducing salinity in
             3202      the Colorado River.
             3203          (b) The department may require entities seeking fund monies to provide matching
             3204      funds.
             3205          (c) The department shall submit to the Water Quality Board's executive secretary
             3206      proposed funding projects for the executive secretary's review and approval.
             3207          (5) The department may use fund monies for the administration of the fund, but this
             3208      amount may not exceed 10% of the annual receipts to the fund.
             3209          Section 6. Section 4-3-2 is amended to read:
             3210           4-3-2. Authority to make and enforce rules.
             3211          The department is authorized and directed, subject to [Title 63, Chapter 46a] Title 63G,
             3212      Chapter 3, Utah Administrative Rulemaking Act, to make and enforce such rules as may in its
             3213      judgment and discretion be necessary to carry out the purposes of this chapter.
             3214          Section 7. Section 4-3-14 is amended to read:
             3215           4-3-14. Sale of raw milk -- Suspension of producer's permit -- Severability not
             3216      permitted.
             3217          (1) As used in this section:
             3218          (a) "Batch" means all the milk emptied from one bulk tank and bottled in a single day.
             3219          (b) "Self-owned retail store" means a retail store:
             3220          (i) of which the producer owns at least 51% of the value of the real property and
             3221      tangible personal property used in the operations of the retail store; or

             3222          (ii) for which the producer has the power to vote at least 51% of any class of voting
             3223      shares or ownership interest in the business entity that operates the retail store.
             3224          (2) Raw milk may be sold if:
             3225          (a) the producer obtains a permit from the department to produce milk under
             3226      Subsection 4-3-8 (5);
             3227          (b) the sale and delivery of the milk is made upon the premises where the milk is
             3228      produced, except as provided by Subsection (3);
             3229          (c) it is sold to consumers for household use and not for resale;
             3230          (d) it is bottled or packaged under sanitary conditions and in sanitary containers on the
             3231      premises where the milk is produced;
             3232          (e) it is labeled "raw milk" and meets the labeling requirements under 21 C.F.R. Parts
             3233      101 and 131 and rules established by the department;
             3234          (f) it is:
             3235          (i) cooled to 50 degrees Fahrenheit or a lower temperature within one hour after being
             3236      drawn from the animal;
             3237          (ii) further cooled to 41 degrees Fahrenheit within two hours of being drawn from the
             3238      animal; and
             3239          (iii) maintained at 41 degrees Fahrenheit or a lower temperature until it is delivered to
             3240      the consumer;
             3241          (g) the bacterial count of the milk does not exceed 20,000 colony forming units per
             3242      milliliter;
             3243          (h) the bacterial plate count and the coliform count of the milk meet the bacterial and
             3244      coliform enforcement standards for grade A pasteurized milk;
             3245          (i) the production of the milk conforms to departmental rules for the production of
             3246      grade A milk;
             3247          (j) all dairy animals on the premises are:
             3248          (i) permanently and individually identifiable; and
             3249          (ii) free of tuberculosis, brucellosis, and other diseases carried through milk; and

             3250          (k) any person on the premises performing any work in connection with the production,
             3251      bottling, handling, or sale of the milk is free from communicable disease.
             3252          (3) A producer may sell raw whole milk at a self-owned retail store, which is properly
             3253      staffed, if, in addition to the requirements of Subsection (2), the producer:
             3254          (a) transports the milk from the premises where the milk is produced to the self-owned
             3255      retail store in a refrigerated truck where the milk is maintained at 41 degrees Fahrenheit or a
             3256      lower temperature;
             3257          (b) retains ownership of the milk until it is sold to the final consumer, including
             3258      transporting the milk from the premises where the milk is produced to the self-owned retail
             3259      store without any:
             3260          (i) intervening storage;
             3261          (ii) change of ownership; or
             3262          (iii) loss of physical control;
             3263          (c) stores the milk at 41 degrees Fahrenheit or a lower temperature in a display case
             3264      equipped with a properly calibrated thermometer at the self-owned retail store;
             3265          (d) places a sign above the display case at the self-owned retail store that reads, "Raw
             3266      Unpasteurized Milk";
             3267          (e) labels the milk with:
             3268          (i) a date, no more than nine days after the milk is produced, by which the milk should
             3269      be sold;
             3270          (ii) the statement "Raw milk, no matter how carefully produced, may be unsafe.";
             3271          (iii) handling instructions to preserve quality and avoid contamination or spoilage; and
             3272          (iv) any other information required by rule;
             3273          (f) refrains from offering the milk for sale until:
             3274          (i) each batch of milk is tested for standard plate count and coliform count from an
             3275      official sample taken at the self-owned retail store and tested by a third party certified by the
             3276      department; and
             3277          (ii) the test results meet the minimum standards established for those tests;

             3278          (g) (i) maintains a database of the milk sales; and
             3279          (ii) makes the database available to the Department of Health during the self-owned
             3280      retail store's business hours for purposes of epidemiological investigation;
             3281          (h) refrains from offering any pasteurized milk at the self-owned retail store;
             3282          (i) ensures that the plant and retail store complies with Title 4, Chapter 5, Utah
             3283      Wholesome Food Act, and the rules governing food establishments enacted under Section
             3284      4-5-9 ;
             3285          (j) participates in a hazard analysis critical control point system as established by the
             3286      United States Food and Drug Administration;
             3287          (k) conducts monthly tests on a sample taken from a batch of milk for:
             3288          (i) Listeria monocytogenes;
             3289          (ii) Salmonella typhimurium;
             3290          (iii) Salmonella dublin;
             3291          (iv) Campylobacter jejuni; and
             3292          (v) E.Coli 0157:H7; and
             3293          (l) complies with all applicable rules adopted as authorized by this chapter.
             3294          (4) The person conducting the tests required by Subsection (3) shall send a copy of the
             3295      test results to the department as soon as the test results are available.
             3296          (5) (a) The department shall adopt rules, as authorized by Section 4-3-2 , governing the
             3297      sale of raw whole milk at a self-owned retail store.
             3298          (b) The rules adopted by the department shall include rules regarding:
             3299          (i) permits;
             3300          (ii) building and premises requirements;
             3301          (iii) sanitation and operating requirements, including bulk milk tanks requirements;
             3302          (iv) additional tests, including a test for pathogens;
             3303          (v) frequency of inspections, including random cooler checks;
             3304          (vi) recordkeeping; and
             3305          (vii) packaging and labeling.

             3306          (c) (i) The department shall establish a fee for the tests and inspections required by this
             3307      section and by rule by following the procedures and requirements of Section [ 63-38-3.2 ]
             3308      63J-1-303 .
             3309          (ii) Notwithstanding Section [ 63-38-3.2 ] 63J-1-303 , the department shall retain the fees
             3310      as dedicated credits and may only use the fees to administer and enforce this section.
             3311          (6) (a) The department shall suspend a permit issued under Section 4-3-8 if a producer
             3312      violates any provision of this section or any rules adopted as authorized by this section.
             3313          (b) The department may reissue a permit that has been suspended under Subsection
             3314      (6)(a) if the producer has complied with all of the requirements of this section and rules adopted
             3315      as authorized by this section.
             3316          (7) For 2008 and 2009, the Department of Health and the Department of Agriculture
             3317      and Food shall report on or before November 30th to the Natural Resources, Agriculture, and
             3318      Environment Interim Committee and the Health and Human Services Interim Committee on any
             3319      health problems resulting from the sale of raw whole milk at self-owned retail stores.
             3320          (8) (a) If any subsection of this section or the application of any subsection to any
             3321      person or circumstance is held invalid by a final decision of a court of competent jurisdiction,
             3322      the remainder of the section may not be given effect without the invalid subsection or
             3323      application.
             3324          (b) The provisions of this section may not be severed.
             3325          Section 8. Section 4-4-2 is amended to read:
             3326           4-4-2. Authority to make and enforce rules.
             3327          The department is authorized, subject to [Title 63, Chapter 46a] Title 63G, Chapter 3,
             3328      Utah Administrative Rulemaking Act, to make and enforce such rules as in its judgment are
             3329      necessary to administer and enforce this chapter.
             3330          Section 9. Section 4-5-9 is amended to read:
             3331           4-5-9. Registration of food establishments -- Fee -- Suspension and reinstatement
             3332      of registration -- Inspection for compliance.
             3333          (1) (a) Pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative

             3334      Rulemaking Act, the department shall establish rules providing for the registration of food
             3335      establishments to protect public health and ensure a safe food supply.
             3336          (b) The owner or operator of a food establishment shall register with the department
             3337      before operating a food establishment.
             3338          (c) Prior to granting a registration to the owner or operator of a food establishment, the
             3339      department shall inspect and assess the food establishment to determine whether it complies
             3340      with the rules established under Subsection (1)(a).
             3341          (d) An applicant shall register with the department, in writing, using forms required by
             3342      the department.
             3343          (e) The department shall issue a registration to an applicant, if the department
             3344      determines that the applicant meets the qualifications of registration established under
             3345      Subsection (1)(a).
             3346          (f) If the applicant does not meet the qualifications of registration, the department shall
             3347      notify the applicant, in writing, that the applicant's registration is denied.
             3348          (g) (i) If an applicant submits an incomplete application, a written notice of conditional
             3349      denial of registration shall be provided to an applicant.
             3350          (ii) The applicant must correct the deficiencies within the time period specified in the
             3351      notice to receive a registration.
             3352          (h) (i) The department may, as provided under Subsection 4-2-2 (2), charge the food
             3353      establishment a registration fee.
             3354          (ii) The department shall retain the fees as dedicated credits and shall use the fees to
             3355      administer the registration of food establishments.
             3356          (2) (a) A registration, issued under this section, shall be valid from the date the
             3357      department issues the registration, to December 31 of the year the registration is issued.
             3358          (b) A registration may be renewed for the following year by applying for renewal by
             3359      December 31 of the year the registration expires.
             3360          (3) A registration, issued under this section, shall specify:
             3361          (a) the name and address of the food establishment;

             3362          (b) the name of the owner or operator of the food establishment; and
             3363          (c) the registration issuance and expiration date.
             3364          (4) (a) The department may immediately suspend a registration, issued under this
             3365      section, if any of the conditions of registration have been violated.
             3366          (b) (i) The holder of a registration suspended under Subsection (4)(a) may apply for the
             3367      reinstatement of a registration.
             3368          (ii) If the department determines that all registration requirements have been met, the
             3369      department shall reinstate the registration.
             3370          (5) (a) A food establishment, registered under this section, shall allow the department to
             3371      have access to the food establishment to determine if the food establishment is complying with
             3372      the registration requirements.
             3373          (b) If a food establishment denies access for an inspection required under Subsection
             3374      (5)(a), the department may suspend the food establishment's registration until the department is
             3375      allowed access to the food establishment's premises.
             3376          Section 10. Section 4-5-9.5 is amended to read:
             3377           4-5-9.5. Cottage food production operations.
             3378          (1) For purposes of this chapter:
             3379          (a) "Cottage food production operation" means a person, who in the person's home,
             3380      produces a food product that is not a potentially hazardous food or a food that requires
             3381      time/temperature controls for safety.
             3382          (b) "Home" means a primary residence:
             3383          (i) occupied by the individual who is operating a cottage food production operation;
             3384      and
             3385          (ii) which contains:
             3386          (A) a kitchen designed for common residential usage; and
             3387          (B) appliances designed for common residential usage.
             3388          (c) "Potentially hazardous food" or "food that requires time/temperature controls for
             3389      safety":

             3390          (i) means a food that requires time and or temperature control for safety to limit
             3391      pathogenic microorganism growth or toxin formation and is in a form capable of supporting:
             3392          (A) the rapid and progressive growth of infections or toxigenic microorganisms;
             3393          (B) the growth and toxin production of Clostridium botulinum; or
             3394          (C) in shell eggs, the growth of Salmonella enteritidis;
             3395          (ii) includes:
             3396          (A) an animal food;
             3397          (B) a food of animal origin that is raw or heat treated;
             3398          (C) a food of plant origin that is heat treated or consists of raw seed sprouts;
             3399          (D) cut melons;
             3400          (E) cut tomatoes; and
             3401          (F) garlic and oil mixtures that are not acidified or otherwise modified at a food
             3402      establishment in a way that results in mixtures that do not support growth as specified under
             3403      Subsection (1)(c)(i); and
             3404          (iii) does not include:
             3405          (A) an air-cooled hard-boiled egg with shell intact;
             3406          (B) a food with an actual weight or water activity value of 0.85 or less;
             3407          (C) a food with pH level of 4.6 or below when measured at 24 degrees Centigrade;
             3408          (D) a food, in an unopened hermetically sealed container, that is processed to achieve
             3409      and maintain sterility under conditions of nonrefrigerated storage and distribution;
             3410          (E) a food for which laboratory evidence demonstrates that the rapid and progressive
             3411      growth of items listed in Subsection (1)(c)(i) cannot occur, such as a food that:
             3412          (I) has an actual weight and a pH level that are above the levels specified under
             3413      Subsections (1)(c)(iii)(B) and (C); or
             3414          (II) contains a preservative or other barrier to the growth of microorganisms, or a
             3415      combination of barriers that inhibit the growth of microorganisms; or
             3416          (F) a food that does not support the growth of microorganisms as specified under
             3417      Subsection (1)(c)(i) even though the food may contain an infectious or toxigenic microorganism

             3418      or chemical or physical contaminant at a level sufficient to cause illness.
             3419          (2) (a) The department shall adopt rules pursuant to [Title 63, Chapter 46a] Title 63G,
             3420      Chapter 3, Utah Administrative Rulemaking Act, as necessary to protect public health and
             3421      ensure a safe food supply.
             3422          (b) Rules adopted pursuant to this Subsection (2) shall provide for:
             3423          (i) the registration of cottage food production operations as food establishments under
             3424      this chapter;
             3425          (ii) the labeling of products from a cottage food production operation as "Home
             3426      Produced"; and
             3427          (iii) other exceptions to the chapter that the department determines are appropriate and
             3428      that are consistent with this section.
             3429          (3) Rules adopted pursuant to Subsection (2):
             3430          (a) may not require:
             3431          (i) the use of commercial surfaces such as stainless steel counters or cabinets;
             3432          (ii) the use of a commercial grade:
             3433          (A) sink;
             3434          (B) dishwasher; or
             3435          (C) oven;
             3436          (iii) a separate kitchen for the cottage food production operation; or
             3437          (iv) the submission of plans and specifications before construction of, or remodel of, a
             3438      cottage food production operation; and
             3439          (b) may require:
             3440          (i) an inspection of a cottage food production operation:
             3441          (A) prior to issuing a registration for the cottage food production operation; and
             3442          (B) at other times if the department has reason to believe the cottage food production
             3443      operation is operating:
             3444          (I) in violation of this chapter or an administrative rule adopted pursuant to this section;
             3445      or

             3446          (II) in an unsanitary manner; and
             3447          (ii) the use of finished and cleanable surfaces.
             3448          (4) (a) The operator of a cottage food production operation shall:
             3449          (i) register with the department as a cottage food production operation before operating
             3450      as a cottage food production operation; and
             3451          (ii) hold a valid food handler's permit.
             3452          (b) Notwithstanding the provisions of Subsections 4-5-9 (1)(a) and (c), the department
             3453      shall issue a registration to an applicant for a cottage food production operation if the applicant
             3454      for the registration:
             3455          (i) passes the inspection required by Subsection (3)(b);
             3456          (ii) pays the fees required by the department; and
             3457          (iii) meets the requirements of this section.
             3458          (5) Notwithstanding the provisions of Section 26A-1-114 , a local health department:
             3459          (a) does not have jurisdiction to regulate the production of food at a cottage food
             3460      production operation operating in compliance with this section, as long as the products are not
             3461      offered to the public for consumption on the premises; and
             3462          (b) does have jurisdiction to investigate a cottage food production operation in any
             3463      investigation into the cause of a food born illness outbreak.
             3464          (6) A food service establishment as defined in Section 26-15a-102 may not use a
             3465      product produced in a cottage food production operation as an ingredient in any food that is
             3466      prepared by the food establishment and offered by the food establishment to the public for
             3467      consumption.
             3468          Section 11. Section 4-9-2 is amended to read:
             3469           4-9-2. Authority to promulgate rules.
             3470          The department is authorized, subject to [Title 63, Chapter 46a] Title 63G, Chapter 3,
             3471      Utah Administrative Rulemaking Act, to make and enforce such rules as in its judgment are
             3472      necessary to administer and enforce this chapter.
             3473          Section 12. Section 4-9-15 is amended to read:

             3474           4-9-15. Registration of commercial establishments using weights and measures --
             3475      Approved weights and measures inspectors -- Application -- Fee -- Expiration -- Renewal.
             3476          (1) (a) Pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             3477      Rulemaking Act, the department shall establish rules providing for the registration of weights
             3478      and measures users and issuance of certification of weights and measures devices to ensure the
             3479      use of correct weights and measures in commerce or trade.
             3480          (b) The division may:
             3481          (i) determine whether weights and measures are correct through:
             3482          (A) inspection and testing by department employees; or
             3483          (B) acceptance of an inspection and testing report prepared by a registered weights and
             3484      measures service person;
             3485          (ii) establish standards and qualifications for registered weights and measures service
             3486      persons; and
             3487          (iii) determine the form and content of an inspection and testing report.
             3488          (c) A weights and measures user shall register with the department.
             3489          (d) Prior to granting a registration to a weights and measures user, the department shall
             3490      determine whether the weights and measures user complies with the rules established under
             3491      Subsection (1)(a).
             3492          (e) An applicant shall register with the department, in writing, using forms required by
             3493      the department.
             3494          (f) The department shall issue a registration to an applicant, if the department
             3495      determines that the applicant meets the qualifications of registration established under
             3496      Subsection (1)(a).
             3497          (g) If the applicant does not meet the qualifications of registration, the department shall
             3498      notify the applicant, in writing, that the applicant's registration is denied.
             3499          (h) (i) If an applicant submits an incomplete application, a written notice of conditional
             3500      denial of registration shall be provided to an applicant.
             3501          (ii) The applicant must correct the deficiencies within the time period specified in the

             3502      notice to receive a registration.
             3503          (i) (i) The department may, as provided under Subsection 4-2-2 (2), charge the weights
             3504      and measures user a registration fee.
             3505          (ii) The department shall retain the fees as dedicated credits and shall use the fees to
             3506      administer the registration of weights and measures users.
             3507          (2) (a) A registration, issued under this section, shall be valid from the date the
             3508      department issues the registration, to December 31 of the year the registration is issued.
             3509          (b) A registration may be renewed for the following year by applying for renewal by
             3510      December 31 of the year the registration expires.
             3511          (3) A registration, issued under this section, shall specify:
             3512          (a) the name and address of the weights and measures user;
             3513          (b) the registration issuance and expiration date; and
             3514          (c) the number and type of weights and measures devices to be certified.
             3515          (4) (a) The department may immediately suspend a registration, issued under this
             3516      section, if any of the requirements of Section 4-9-12 are violated.
             3517          (b) (i) The holder of a registration suspended under Subsection (4)(a) may apply for the
             3518      reinstatement of a registration.
             3519          (ii) If the department determines that all requirements under Section 4-9-12 are being
             3520      met, the department shall reinstate the registration.
             3521          (5) (a) A weights and measures user, registered under this section, shall allow the
             3522      department access to the weights and measures user's place of business to determine if the
             3523      weights and measures user is complying with the registration requirements.
             3524          (b) If a weights and measures user denies access for an inspection required under
             3525      Subsection (5)(a), the department may suspend the weights and measures user's registration
             3526      until the department is allowed access to the weights and measures user's place of business.
             3527          Section 13. Section 4-10-3 is amended to read:
             3528           4-10-3. Authority to make and enforce rules.
             3529          The department is authorized, subject to [Title 63, Chapter 46a] Title 63G, Chapter 3,

             3530      Utah Administrative Rulemaking Act, to make and enforce such rules as in its judgment are
             3531      necessary to administer and enforce this chapter.
             3532          Section 14. Section 4-11-3 is amended to read:
             3533           4-11-3. Department authorized to make and enforce rules.
             3534          The department is authorized, subject to [Title 63, Chapter 46a] Title 63G, Chapter 3,
             3535      Utah Administrative Rulemaking Act, to make and enforce such rules as it considers necessary
             3536      for the administration and enforcement of this chapter. Such rules shall include provisions for
             3537      the identification of each apiary within the state.
             3538          Section 15. Section 4-12-3 is amended to read:
             3539           4-12-3. Department authorized to make and enforce rules -- Cooperation with
             3540      state and federal agencies authorized.
             3541          The department is authorized, subject to [Title 63, Chapter 46a] Title 63G, Chapter 3,
             3542      Utah Administrative Rulemaking Act, to make and enforce such rules as in its judgment are
             3543      necessary to administer and enforce this chapter and may cooperate with, or enter into
             3544      agreements with, other agencies of this state, other states, and agencies of the United States in
             3545      the administration and enforcement of this chapter.
             3546          Section 16. Section 4-14-3 is amended to read:
             3547           4-14-3. Registration required for distribution -- Application -- Fees -- Renewal --
             3548      Local needs registration -- Distributor or applicator license -- Fees -- Renewal.
             3549          (1) (a) No person may distribute a pesticide in this state that is not registered with the
             3550      department.
             3551          (b) Application for registration shall be made to the department upon forms prescribed
             3552      and furnished by it accompanied with an annual registration fee determined by the department
             3553      pursuant to Subsection 4-2-2 (2) for each pesticide registered.
             3554          (c) Upon receipt by the department of a proper application and payment of the
             3555      appropriate fee, the commissioner shall issue a registration to the applicant allowing distribution
             3556      of the registered pesticide in this state through June 30 of each year, subject to suspension or
             3557      revocation for cause.

             3558          (d) (i) Each registration is renewable for a period of one year upon the payment of an
             3559      annual registration renewal fee in an amount equal to the current applicable original registration
             3560      fee.
             3561          (ii) Each renewal fee shall be paid on or before June 30 of each year.
             3562          (2) The application shall include the following information:
             3563          (a) the name and address of the applicant and the name and address of the person
             3564      whose name will appear on the label, if other than the applicant's name;
             3565          (b) the name of the pesticide;
             3566          (c) a complete copy of the label which will appear on the pesticide; and
             3567          (d) any information prescribed by rule of the department considered necessary for the
             3568      safe and effective use of the pesticide.
             3569          (3) (a) Forms for the renewal of registration shall be mailed to registrants at least 30
             3570      days before their registration expires.
             3571          (b) A registration in effect on June 30 for which a renewal application has been filed and
             3572      the registration fee tendered shall continue in effect until the applicant is notified either that the
             3573      registration is renewed or that it is suspended or revoked pursuant to Section 4-14-8 .
             3574          (4) The department may, before approval of any registration, require the applicant to
             3575      submit the complete formula of any pesticide including active and inert ingredients and may
             3576      also, for any pesticide not registered according to 7 U.S.C. Sec. 136a or for any pesticide on
             3577      which restrictions are being considered, require a complete description of all tests and test
             3578      results that support the claims made by the applicant or the manufacturer of the pesticide.
             3579          (5) A registrant who desires to register a pesticide to meet special local needs according
             3580      to 7 U.S.C. Sec. 136a(c) shall, in addition to complying with Subsections (1) and (2), satisfy the
             3581      department that:
             3582          (a) a special local need exists;
             3583          (b) the pesticide warrants the claims made for it;
             3584          (c) the pesticide, if used in accordance with commonly accepted practices, will not
             3585      cause unreasonable adverse effects on the environment; and

             3586          (d) the proposed classification for use conforms with 7 U.S.C. Sec. 136a(d).
             3587          (6) No registration is required for a pesticide distributed in this state pursuant to an
             3588      experimental use permit issued by the EPA or under Section 4-14-5 .
             3589          (7) No pesticide dealer may distribute a restricted use pesticide in this state without a
             3590      license.
             3591          (8) A person must receive a license before applying:
             3592          (a) a restricted use pesticide; or
             3593          (b) a general use pesticide for hire or in exchange for compensation.
             3594          (9) (a) A license to engage in an activity listed in Subsection (7) or (8) may be obtained
             3595      by:
             3596          (i) submitting an application on a form provided by the department;
             3597          (ii) paying the license fee determined by the department according to Subsection
             3598      4-2-2 (2); and
             3599          (iii) complying with the rules adopted as authorized by this chapter.
             3600          (b) A person may apply for a license that expires on December 31:
             3601          (i) of the calendar year in which the license is issued; or
             3602          (ii) of the second calendar year after the calendar year in which the license is issued.
             3603          (c) (i) Notwithstanding Section [ 63-38-3.2 ] 63J-1-303 , the department shall retain the
             3604      fees as dedicated credits and may only use the fees to administer and enforce this chapter.
             3605          (ii) The Legislature may annually designate the revenue generated from the fee as
             3606      nonlapsing in an appropriations act.
             3607          Section 17. Section 4-14-6 is amended to read:
             3608           4-14-6. Department authorized to make and enforce rules.
             3609          The department may, by following the procedures and requirements of [Title 63,
             3610      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, adopt rules to:
             3611          (1) declare as a pest any form of plant or animal life that is injurious to health or the
             3612      environment, except:
             3613          (a) a human being; or

             3614          (b) a bacteria, virus, or other microorganism on or in a living person or animal;
             3615          (2) establish, in accordance with the regulations promulgated by the EPA under 7
             3616      U.S.C. Sec. 136w(c)(2), whether pesticides registered for special local needs under the
             3617      authority of 7 U.S.C. Sec. 136v(c) are highly toxic to man;
             3618          (3) establish, consistent with EPA regulations, that certain pesticides or quantities of
             3619      substances contained in these pesticides are injurious to the environment;
             3620          (4) adopt a list of "restricted use pesticides" for the state or designated areas within the
             3621      state if it determines upon substantial evidence presented at a public hearing and upon
             3622      recommendation of the pesticide committee that restricted use is necessary to prevent damage
             3623      to property or to the environment;
             3624          (5) establish qualifications for a pesticide applicator business; and
             3625          (6) adopt any rule, not inconsistent with federal regulations promulgated under FIFRA,
             3626      considered necessary to administer and enforce this chapter, including rules relating to the sale,
             3627      distribution, use, and disposition of pesticides if necessary to prevent damage and to protect the
             3628      public health.
             3629          Section 18. Section 4-14-13 is amended to read:
             3630           4-14-13. Registration required for a pesticide business.
             3631          (1) A pesticide applicator business shall register with the department by:
             3632          (a) submitting an application on a form provided by the department;
             3633          (b) paying the registration fee; and
             3634          (c) certifying that the business is in compliance with this chapter and departmental rules
             3635      authorized by this chapter.
             3636          (2) (a) By following the procedures and requirements of Section [ 63-38-3.2 ] 63J-1-303 ,
             3637      the department shall establish a registration fee based on the number of pesticide applicators
             3638      employed by the pesticide applicator business.
             3639          (b) (i) Notwithstanding Section [ 63-38-3.2 ] 63J-1-303 , the department shall retain the
             3640      fees as dedicated credits and may only use the fees to administer and enforce this chapter.
             3641          (ii) The Legislature may annually designate the revenue generated from the fee as

             3642      nonlapsing in an appropriations act.
             3643          (3) (a) The department shall issue a pesticide applicator business a registration
             3644      certificate if the pesticide applicator business:
             3645          (i) has complied with the requirements of this section; and
             3646          (ii) meets the qualifications established by rule.
             3647          (b) The department shall notify the pesticide applicator business in writing that the
             3648      registration is denied if the pesticide applicator business does not meet the registration
             3649      qualifications.
             3650          (4) A registration certificate expires on December 31 of the second calendar year after
             3651      the calendar year in which the registration certificate is issued.
             3652          (5) (a) The department may suspend a registration certificate if the pesticide applicator
             3653      business violates this chapter or any rules authorized by it.
             3654          (b) A pesticide applicator business whose registration certificate has been suspended
             3655      may apply to the department for reinstatement of the registration certificate by demonstrating
             3656      compliance with this chapter and rules authorized by it.
             3657          (6) A pesticide applicator business shall:
             3658          (a) only employ a pesticide applicator who has received a license from the department,
             3659      as required by Section 4-14-3 ; and
             3660          (b) ensure that all employees comply with this chapter and the rules authorized by it.
             3661          Section 19. Section 4-15-3 is amended to read:
             3662           4-15-3. Department authorized to make and enforce rules.
             3663          The department is authorized, subject to [Title 63, Chapter 46a] Title 63G, Chapter 3,
             3664      Utah Administrative Rulemaking Act, to make and enforce such rules as in its judgment are
             3665      necessary to administer and enforce this chapter.
             3666          Section 20. Section 4-16-3 is amended to read:
             3667           4-16-3. Department authorized to make and enforce rules -- Cooperation with
             3668      state and federal agencies authorized.
             3669          The department is authorized, subject to [Title 63, Chapter 46a] Title 63G, Chapter 3,

             3670      Utah Administrative Rulemaking Act, to make and enforce such rules as in its judgment are
             3671      deemed necessary to administer and enforce this chapter; and, in conjunction with its
             3672      administration and enforcement, it is authorized to cooperate with other state agencies, other
             3673      states, and with the United States Department of Agriculture or other departments or agencies
             3674      of the federal government.
             3675          Section 21. Section 4-18-5 is amended to read:
             3676           4-18-5. Conservation commission -- Functions and duties.
             3677          (1) The commission shall:
             3678          (a) facilitate the development and implementation of the strategies and programs
             3679      necessary to protect, conserve, utilize, and develop the soil and water resources of the state;
             3680          (b) disseminate information regarding districts' activities and programs;
             3681          (c) supervise the formation, reorganization, or dissolution of districts according to the
             3682      requirements of Title 17A, Chapter 3, Part 8, Conservation Districts;
             3683          (d) prescribe uniform accounting and recordkeeping procedures for districts and require
             3684      each district to submit annually an audit of its funds to the commission;
             3685          (e) approve and make loans for agricultural purposes, from the Agriculture Resource
             3686      Development Fund for:
             3687          (i) nonfederal rangeland improvement and management projects;
             3688          (ii) watershed protection and flood prevention projects;
             3689          (iii) agricultural cropland soil and water conservation projects; and
             3690          (iv) programs designed to promote energy efficient farming practices;
             3691          (f) administer federal or state funds in accordance with applicable federal or state
             3692      guidelines and make loans or grants from those funds to land occupiers for the conservation of
             3693      soil or water resources;
             3694          (g) seek to coordinate soil and water protection, conservation, and development
             3695      activities and programs of state agencies, local governmental units, other states, special interest
             3696      groups, and federal agencies; and
             3697          (h) plan watershed and flood control projects in cooperation with appropriate local,

             3698      state, and federal authorities and coordinate flood control projects in the state.
             3699          (2) The commission may:
             3700          (a) employ, with the approval of the department, an administrator and necessary
             3701      technical experts and employees;
             3702          (b) execute contracts or other instruments necessary to exercise its powers;
             3703          (c) sue and be sued; and
             3704          (d) adopt rules, in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             3705      Administrative Rulemaking Act, necessary to carry out the powers and duties specified in
             3706      Subsections (1)(d), (e), (f), and (2)(b).
             3707          Section 22. Section 4-18-6.5 is amended to read:
             3708           4-18-6.5. Grants to improve manure management or control runoff at animal
             3709      feeding operations.
             3710          (1) (a) The commission may make grants to owners or operators of animal feeding
             3711      operations to pay for costs of plans or projects to improve manure management or control
             3712      surface water runoff, including costs of preparing or implementing comprehensive nutrient
             3713      management plans.
             3714          (b) The commission shall make the grants described in Subsection (1)(a) from funds
             3715      appropriated by the Legislature for that purpose.
             3716          (2) (a) In awarding grants, the commission shall consider the following criteria:
             3717          (i) the ability of the grantee to pay for costs of plans or projects to improve manure
             3718      management or control surface water runoff;
             3719          (ii) the availability of:
             3720          (A) matching funds provided by the grantee or another source; or
             3721          (B) material, labor, or other items of value provided in lieu of money by the grantee or
             3722      another source; and
             3723          (iii) the benefits that accrue to the general public by the awarding of a grant.
             3724          (b) The commission may establish by rule additional criteria for the awarding of grants.
             3725          (3) The commission shall make rules in accordance with [Title 63, Chapter 46a] Title

             3726      63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this section.
             3727          Section 23. Section 4-20-1.5 is amended to read:
             3728           4-20-1.5. State Grazing Advisory Board -- Duties.
             3729          (1) (a) There is created within the department the State Grazing Advisory Board.
             3730          (b) The commissioner shall appoint the following members:
             3731          (i) one member from each regional board;
             3732          (ii) one member from the Conservation Commission created in Section 4-18-4 ;
             3733          (iii) one representative of the Department of Natural Resources;
             3734          (iv) two livestock producers at-large; and
             3735          (v) one representative of the oil, gas, or mining industry.
             3736          (2) The term of office for a state board member is four years.
             3737          (3) Members of the state board shall elect a chair, who shall serve for two years.
             3738          (4) (a) (i) A member who is not a government employee may not receive compensation
             3739      or benefits for the member's service, but may receive per diem and expenses incurred in the
             3740      performance of the member's official duties at the rates established by the Division of Finance
             3741      under Sections 63A-3-106 and 63A-3-107 .
             3742          (ii) A member may decline to receive per diem and expenses for the member's service.
             3743          (b) (i) A state government officer and employee member who does not receive salary,
             3744      per diem, or expenses from the agency the member represents for the member's service may
             3745      receive per diem and expenses incurred in the performance of the member's official duties at the
             3746      rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             3747          (ii) A state government officer and employee member may decline to receive per diem
             3748      and expenses for the member's service.
             3749          (c) (i) A local government member who does not receive salary, per diem, or expenses
             3750      from the entity that the member represents for the member's service may receive per diem and
             3751      expenses incurred in the performance of the member's official duties at the rates established by
             3752      the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             3753          (ii) A local government member may decline to receive per diem and expenses for the

             3754      member's service.
             3755          (5) The state board shall:
             3756          (a) receive:
             3757          (i) advice and recommendations from a regional board concerning:
             3758          (A) management plans for public lands, state lands, and school and institutional trust
             3759      lands as defined in Section 53C-1-103 , within the regional board's region; and
             3760          (B) any issue that impacts grazing on private lands, public lands, state lands, or school
             3761      and institutional trust lands as defined in Section 53C-1-103 , in its region; and
             3762          (ii) requests for fund monies from the entities described in Subsections (5)(c)(i) through
             3763      (iv);
             3764          (b) recommend state policy positions and cooperative agency participation in federal
             3765      and state land management plans to the department and to the Public Lands Policy Coordinating
             3766      Office created under Section [ 63-38d-602 ] 63J-4-602 ; and
             3767          (c) advise the department on the requests and recommendations of:
             3768          (i) regional boards;
             3769          (ii) county weed control boards created under Section 4-17-4 ;
             3770          (iii) cooperative weed management associations; and
             3771          (iv) conservation districts created under the authority of Title 17A, Chapter 3, Part 8,
             3772      Conservation Districts.
             3773          Section 24. Section 4-22-4.5 is amended to read:
             3774           4-22-4.5. Exemption from certain operational requirements.
             3775          The commission is exempt from:
             3776          (1) Title 51, Chapter 5, Funds Consolidation Act;
             3777          (2) Title 51, Chapter 7, State Money Management Act;
             3778          (3) [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures Act;
             3779          (4) Title 63A, Utah Administrative Services Code; and
             3780          (5) Title 67, Chapter 19, Utah State Personnel Management Act.
             3781          Section 25. Section 4-23-5 is amended to read:

             3782           4-23-5. Board responsibilities -- Damage prevention policy -- Rules -- Methods to
             3783      control predators and depredating birds and animals.
             3784          (1) The board is responsible for the formulation of the agricultural and wildlife damage
             3785      prevention policy of the state and in conjunction with its responsibility may, consistent with
             3786      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, adopt rules
             3787      to implement its policy which shall be administered by the department.
             3788          (2) In its policy deliberations the board shall:
             3789          (a) specify programs designed to prevent damage to livestock, poultry, and agricultural
             3790      crops; and
             3791          (b) specify methods for the prevention of damage and for the selective control of
             3792      predators and depredating birds and animals including, but not limited to, hunting, trapping,
             3793      chemical toxicants, and the use of aircraft.
             3794          (3) The board may also:
             3795          (a) specify bounties on designated predatory animals and recommend procedures for the
             3796      payment of bounty claims, recommend bounty districts, recommend persons not authorized to
             3797      receive bounty, and recommend to the department other actions it [deems] considers advisable
             3798      for the enforcement of its policies; and
             3799          (b) cooperate with federal, state, and local governments, educational institutions, and
             3800      private persons or organizations, through agreement or otherwise, to effectuate its policies.
             3801          Section 26. Section 4-24-3 is amended to read:
             3802           4-24-3. Department authorized to make and enforce rules.
             3803          The department is authorized, subject to [Title 63, Chapter 46a] Title 63G, Chapter 3,
             3804      Utah Administrative Rulemaking Act, to make and enforce such rules as in its judgment are
             3805      necessary to administer and enforce this chapter.
             3806          Section 27. Section 4-25-3 is amended to read:
             3807           4-25-3. Department authorized to make and enforce rules.
             3808          The department is authorized, subject to [Title 63, Chapter 46a] Title 63G, Chapter 3,
             3809      Utah Administrative Rulemaking Act, to make and enforce such rules as in its judgment are

             3810      necessary to administer and enforce this chapter.
             3811          Section 28. Section 4-29-1 is amended to read:
             3812           4-29-1. Department authorized to make and enforce rules.
             3813          The department is authorized, subject to [Title 63, Chapter 46a] Title 63G, Chapter 3,
             3814      Utah Administrative Rulemaking Act, to make and enforce such rules as it considers necessary
             3815      for the administration and enforcement of this chapter.
             3816          Section 29. Section 4-30-3 is amended to read:
             3817           4-30-3. Department authorized to make and enforce rules.
             3818          The department is authorized, subject to [Title 63, Chapter 46a] Title 63G, Chapter 3,
             3819      Utah Administrative Rulemaking Act, to make and enforce such rules as in its judgment are
             3820      necessary to administer and enforce this chapter.
             3821          Section 30. Section 4-31-16.5 is amended to read:
             3822           4-31-16.5. Brucellosis -- Vaccination required for certain cattle -- Testing
             3823      required to import certain cattle.
             3824          (1) As used in this section, "test-eligible" has the meaning defined in 9 C.F.R. Sec. 78.1.
             3825          (2) (a) Instate origin replacement cattle that are kept for breeding stock must be official
             3826      calfhood vaccinated for brucellosis.
             3827          (b) Female cattle from within the state that are not kept for breeding stock will not be
             3828      required to be vaccinated.
             3829          (c) For purposes of this Subsection (2), the department may make rules in accordance
             3830      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             3831      governing non-legible brucellosis tattoos and may accept brucellosis vaccination record forms as
             3832      evidence that brucellosis vaccinations were performed.
             3833          (3) All female beef-breed cattle imported into the state are required to be official
             3834      calfhood vaccinated for brucellosis except female cattle:
             3835          (a) less than four months of age;
             3836          (b) going directly to slaughter;
             3837          (c) going to a qualified feedlot; or

             3838          (d) going to an approved auction to be vaccinated on arrival or designated for slaughter
             3839      only.
             3840          (4) (a) Test-eligible cattle imported from states designated as brucellosis-free under 9
             3841      C.F.R. Sec. 78.43, that are acquired directly from the farm of origin are not required to be
             3842      tested for brucellosis before movement into the state.
             3843          (b) Test-eligible cattle imported from states designated as brucellosis-free under 9
             3844      C.F.R. Sec. 78.43, that are acquired through trading channels must test negative for brucellosis
             3845      within 30 days before movement into the state.
             3846          (5) Test-eligible cattle imported from states that have not been designated as
             3847      brucellosis-free under 9 C.F.R. Sec. 78.43, must test negative for brucellosis within 30 days
             3848      before movement into the state.
             3849          (6) The department may investigate situations where fees for brucellosis vaccinations
             3850      are considered to be excessive.
             3851          (7) The department may make rules in accordance with [Title 63, Chapter 46a] Title
             3852      63G, Chapter 3, Utah Administrative Rulemaking Act, for beef-breed cattle that are acquired
             3853      for specialized breeding purposes, and may exempt those cattle from brucellosis vaccination
             3854      requirements.
             3855          (8) The department shall make rules in accordance with [Title 63, Chapter 46a] Title
             3856      63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this section.
             3857          Section 31. Section 4-31-21 is amended to read:
             3858           4-31-21. Trichomoniasis -- Department to make rules.
             3859          The department shall make rules for the prevention and control of trichomoniasis in
             3860      cattle and bison in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             3861      Administrative Rulemaking Act.
             3862          Section 32. Section 4-32-7 is amended to read:
             3863           4-32-7. Mandatory functions, powers, and duties of department prescribed.
             3864          The department shall make rules pursuant to [Title 63, Chapter 46a] Title 63G, Chapter
             3865      3, Utah Administrative Rulemaking Act, regarding the following functions, powers, and duties,

             3866      in addition to those specified in Title 4, Chapter 1, Utah Agricultural Code, for the
             3867      administration and enforcement of this chapter:
             3868          (1) The department shall require antemortem and postmortem inspections, quarantine,
             3869      segregation, and reinspections by inspectors appointed for those purposes with respect to the
             3870      slaughter of livestock and poultry and the preparation of livestock and poultry products at
             3871      official establishments, except as provided in Subsection 4-32-8 (13).
             3872          (2) The department shall require that:
             3873          (a) livestock and poultry be identified for inspection purposes;
             3874          (b) livestock or poultry products, or their containers be marked or labeled as:
             3875          (i) "Utah Inspected and Passed" if, upon inspection, the products are found to be
             3876      unadulterated; and
             3877          (ii) "Utah Inspected and Condemned" if, upon inspection, the products are found to be
             3878      adulterated; and
             3879          (c) condemned products, which otherwise would be used for human consumption, be
             3880      destroyed under the supervision of an inspector.
             3881          (3) The department shall prohibit or limit livestock products, poultry products, or other
             3882      materials not prepared under inspection procedures provided in this chapter, from being brought
             3883      into official establishments.
             3884          (4) The department shall require that labels and containers for livestock and poultry
             3885      products:
             3886          (a) bear all information required under Section 4-32-3 if the product leaves the official
             3887      establishment; and
             3888          (b) be approved prior to sale or transportation.
             3889          (5) For official establishments required to be inspected under Subsection (1), the
             3890      department shall:
             3891          (a) prescribe sanitary standards;
             3892          (b) require experts in sanitation or other competent investigators to investigate sanitary
             3893      conditions; and

             3894          (c) refuse to provide inspection service if the sanitary conditions allow adulteration of
             3895      any livestock or poultry product.
             3896          (6) (a) The department shall require that any person engaged in a business referred to in
             3897      Subsection (6)(b) shall:
             3898          (i) keep accurate records disclosing all pertinent business transactions;
             3899          (ii) allow inspection of the business premises at reasonable times and examination of
             3900      inventory, records, and facilities; and
             3901          (iii) allow inventory samples to be taken after payment of their fair market value.
             3902          (b) Subsection (6)(a) shall refer to any person who:
             3903          (i) slaughters livestock or poultry;
             3904          (ii) prepares, freezes, packages, labels, buys, sells, transports, or stores any livestock or
             3905      poultry products for human or animal consumption;
             3906          (iii) renders livestock or poultry; or
             3907          (iv) buys, sells, or transports any dead, dying, disabled, or diseased livestock or poultry,
             3908      or parts of their carcasses that died by a method other than slaughter.
             3909          (7) (a) The department shall:
             3910          (i) adopt by reference rules and regulations under federal acts with changes that the
             3911      commissioner considers appropriate to make the rules and regulations applicable to operations
             3912      and transactions subject to this chapter; and
             3913          (ii) promulgate any other rules considered necessary for the efficient execution of the
             3914      provisions of this chapter, including rules of practice providing an opportunity for hearing in
             3915      connection with the issuance of orders under Subsection (5) or under Subsection 4-32-8 (1), (2),
             3916      or (3) and prescribing procedures for proceedings in these cases.
             3917          (b) These procedures shall not preclude requiring that a label or container be withheld
             3918      from use, or inspection be refused under Subsections (1) and (5), or Subsection 4-32-8 (3),
             3919      pending issuance of a final order in the proceeding.
             3920          (8) (a) To prevent the inhumane slaughtering of livestock and poultry, inspectors shall
             3921      be appointed to examine and inspect methods of handling and slaughtering livestock and

             3922      poultry.
             3923          (b) Inspection of new slaughtering establishments may be refused or temporarily
             3924      suspended if livestock or poultry have been slaughtered or handled by any method not in
             3925      accordance with the Humane Methods of Slaughter Act of 1978, Public Law 95-445.
             3926          (9) (a) The department shall require all livestock and poultry showing symptoms of
             3927      disease during antemortem inspection, performed by an inspector appointed for that purpose, to
             3928      be set apart and slaughtered separately from other livestock and poultry.
             3929          (b) When slaughtered, the carcasses of livestock and poultry shall be subject to careful
             3930      examination and inspection in accordance with rules prescribed by the commissioner.
             3931          Section 33. Section 4-33-4 is amended to read:
             3932           4-33-4. Administrative and enforcement powers of department.
             3933          The department shall administer and enforce this chapter and may:
             3934          (1) make and enforce such rules, subject to [Title 63, Chapter 46a] Title 63G, Chapter
             3935      3, Utah Administrative Rulemaking Act, as it considers necessary for the effective
             3936      administration and enforcement of this chapter;
             3937          (2) acquire and test motor fuel samples to determine compliance with this chapter;
             3938          (3) maintain and staff a laboratory to test motor fuel samples;
             3939          (4) enter public or private premises during normal working hours to enforce this
             3940      chapter;
             3941          (5) stop and detain any commercial vehicle transporting motor fuel to inspect its
             3942      contents and applicable documents or to acquire motor fuel samples; and
             3943          (6) require that records applicable to this chapter be available for examination and
             3944      review upon request by the department.
             3945          Section 34. Section 4-37-109 is amended to read:
             3946           4-37-109. Department to make rules.
             3947          (1) The department shall make rules in accordance with [Title 63, Chapter 46a] Title
             3948      63G, Chapter 3, Utah Administrative Rulemaking Act:
             3949          (a) specifying procedures for the application and renewal of certificates of registration

             3950      for operating an aquaculture or fee fishing facility; and
             3951          (b) governing the disposal or removal of aquatic animals from an aquaculture or fee
             3952      fishing facility for which the certificate of registration has lapsed or been revoked.
             3953          (2) (a) The department may make other rules consistent with its responsibilities set forth
             3954      in Section 4-37-104 .
             3955          (b) Except as provided by this chapter, the rules authorized by Subsection (2)(a) must
             3956      be consistent with the suggested procedures for the detection and identification of pathogens
             3957      published by the American Fisheries Society's Fish Health Section.
             3958          Section 35. Section 4-37-201 is amended to read:
             3959           4-37-201. Certificate of registration required to operate an aquaculture facility.
             3960          (1) A person may not operate an aquaculture facility without first obtaining a certificate
             3961      of registration from the department.
             3962          (2) (a) Each application for a certificate of registration to operate an aquaculture facility
             3963      shall be accompanied by a fee.
             3964          (b) The fee shall be established by the department in accordance with Section
             3965      [ 63-38-3.2 ] 63J-1-303 .
             3966          (3) The department shall coordinate with the Division of Wildlife Resources:
             3967          (a) on the suitability of the proposed site relative to potential impacts on adjacent
             3968      aquatic wildlife populations; and
             3969          (b) in determining which species the holder of the certificate of registration may
             3970      propagate, possess, transport, or sell.
             3971          (4) The department shall list on the certificate of registration the species which the
             3972      holder may propagate, possess, transport, or sell.
             3973          Section 36. Section 4-37-301 is amended to read:
             3974           4-37-301. Certificate of registration required to operate a fee fishing facility.
             3975          (1) A person may not operate a fee fishing facility without first obtaining a certificate of
             3976      registration from the department.
             3977          (2) (a) Each application for a certificate of registration to operate a fee fishing facility

             3978      shall be accompanied by a fee.
             3979          (b) The fee shall be established by the department in accordance with Section
             3980      [ 63-38-3.2 ] 63J-1-303 .
             3981          (3) The department shall coordinate with the Division of Wildlife Resources:
             3982          (a) on the suitability of the proposed site relative to potential impacts on adjacent
             3983      aquatic wildlife populations; and
             3984          (b) in determining which species the holder of the certificate of registration may possess
             3985      or transport to or stock into the facility.
             3986          (4) The department shall list on the certificate of registration the species which the
             3987      holder may possess or transport to or stock into the facility.
             3988          (5) A person holding a certificate of registration for an aquaculture facility may also
             3989      operate a fee fishing facility without obtaining an additional certificate of registration, if the fee
             3990      fishing facility:
             3991          (a) is in a body of water meeting the criteria of Section 4-37-111 which is connected
             3992      with the aquaculture facility;
             3993          (b) contains only those aquatic animals specified on the certificate of registration for the
             3994      aquaculture facility; and
             3995          (c) is designated on the certificate of registration for the aquaculture facility.
             3996          Section 37. Section 4-37-602 is amended to read:
             3997           4-37-602. Adjudicative proceedings -- Presiding officer.
             3998          (1) Adjudicative proceedings under this chapter shall be conducted in accordance with
             3999      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             4000          (2) The revocation of an aquaculture facility's certificate of registration, the denial of an
             4001      aquaculture facility's future certificate of registration, and a denial or cancellation of an
             4002      aquaculture facility's health approval number is a state agency action governed by [Title 63,
             4003      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             4004          (3) (a) An owner or operator of an aquaculture facility may ask for an agency review,
             4005      as provided by Section [ 63-46b-12 ] 63G-4-301 , of an agency action specified in Subsection (2).

             4006          (b) The presiding officer, as defined in Section [ 63-46b-2 ] 63G-4-103 , conducting the
             4007      agency review shall consist of three members as follows:
             4008          (i) the person representing sport fishermen, appointed under Subsection
             4009      4-37-503 (4)(a)(i)(C);
             4010          (ii) one person representing the aquaculture industry, appointed by the governor from
             4011      names submitted by a nonprofit corporation, as defined in Section 16-6a-102 , that promotes the
             4012      efficient production, distribution, and marketing of aquaculture products and the welfare of all
             4013      persons engaged in aquaculture; and
             4014          (iii) one person, appointed by the governor, who is knowledgeable about aquatic
             4015      diseases and is employed by an institution of higher education.
             4016          (c) If the governor rejects all the names submitted under Subsection (3)(b)(ii), the
             4017      recommending nonprofit corporation shall submit additional names.
             4018          (d) The final decision of the presiding officer shall be adopted upon approval of at least
             4019      two of the members.
             4020          (e) The term and compensation for the member listed in Subsection (3)(b)(i) shall be the
             4021      same as provided in Section 4-37-503 .
             4022          (f) The term for the members appointed under Subsections (3)(b)(ii) and (iii) shall be
             4023      four years.
             4024          (g) (i) (A) A higher education member who does not receive salary, per diem, or
             4025      expenses from the entity that the member represents for the member's service may receive per
             4026      diem and expenses incurred in the performance of the member's official duties at the rates
             4027      established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             4028          (B) A higher education member may decline to receive per diem and expenses for the
             4029      member's service.
             4030          (ii) (A) A member who is not a government employee may not receive compensation or
             4031      benefits for the member's service, but may receive per diem and expenses incurred in
             4032      performance of the member's official duties at rates established by the Division of Finance under
             4033      Sections 63A-3-106 and 63A-3-107 .

             4034          (B) A member may decline to receive per diem and expenses for the member's service.
             4035          Section 38. Section 4-38-4 is amended to read:
             4036           4-38-4. Powers and duties of commission.
             4037          (1) The commission shall:
             4038          (a) license, regulate, and supervise all persons involved in the racing of horses as
             4039      provided in this chapter;
             4040          (b) license, regulate, and supervise all recognized race meets held in this state under the
             4041      terms of this chapter;
             4042          (c) cause the various places where recognized race meets are held to be visited and
             4043      inspected at least once a year;
             4044          (d) assist in procuring public liability insurance coverage from a private insurance
             4045      company for those licensees unable to otherwise obtain the insurance required under this
             4046      chapter;
             4047          (e) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             4048      Administrative Rulemaking Act, to govern race meets, including rules:
             4049          (i) to resolve scheduling conflicts and settle disputes among licensees;
             4050          (ii) to supervise, discipline, suspend, fine, and bar from events all persons required to be
             4051      licensed by this chapter; and
             4052          (iii) to hold, conduct, and operate all recognized race meets conducted pursuant to this
             4053      chapter;
             4054          (f) determine which persons participating, directly or indirectly, in recognized race
             4055      meets require licenses;
             4056          (g) announce the time, place, and duration of recognized race meets for which licenses
             4057      shall be required; and
             4058          (h) establish reasonable fees for all licenses provided for under this chapter.
             4059          (2) The commission may:
             4060          (a) grant, suspend, or revoke licenses issued under this chapter;
             4061          (b) impose fines as provided in this chapter;

             4062          (c) access criminal history record information for all licensees and commission
             4063      employees; and
             4064          (d) exclude from any racetrack facility in this state any person who the commission
             4065      considers detrimental to the best interests of racing or any person who violates any provisions of
             4066      this chapter or any rule or order of the commission.
             4067          Section 39. Section 4-38-6 is amended to read:
             4068           4-38-6. Public records.
             4069          All records of the commission shall be subject to [Title 63, Chapter 2] Title 63G,
             4070      Chapter 2, Government Records Access and Management Act.
             4071          Section 40. Section 4-38-14 is amended to read:
             4072           4-38-14. Hearings.
             4073          (1) Except as otherwise provided in this section, all proceedings before the commission
             4074      or its hearing officer with respect to the denial, suspension, or revocation of licenses or the
             4075      imposition of fines shall be conducted pursuant to [Title 63, Chapter 46b] Title 63G, Chapter 4,
             4076      Administrative Procedures Act.
             4077          (2) These proceedings shall be held in the county where the commission has its office or
             4078      in any other place the commission designates. The commission shall notify the applicant or
             4079      licensee by mailing, by first class mail, a copy of the written notice required to the last address
             4080      furnished by the application or licensee to the commission at least seven days in advance of the
             4081      hearing.
             4082          (3) The commission may delegate its authority to conduct hearings with respect to the
             4083      denial or suspension of licenses or the imposition of a fine to a hearing officer.
             4084          (4) Proceedings before the board of stewards need not be governed by the procedural
             4085      or other requirements of the Administrative Procedures Act, but rather shall be conducted in
             4086      accordance with rules adopted by the commission.
             4087          (5) The commission and the board of stewards may administer oaths and affirmations,
             4088      sign and issue subpoenas, order the production of documents and other evidence, and regulate
             4089      the course of the hearing pursuant to rules adopted by it.

             4090          (6) Any person aggrieved by a final order or ruling issued by a board of stewards may
             4091      appeal the order or ruling to the commission pursuant to procedural rules adopted by the
             4092      commission. The aggrieved party may petition the commission for a stay of execution pending
             4093      appeal to the commission.
             4094          Section 41. Section 4-39-106 is amended to read:
             4095           4-39-106. Department to make rules.
             4096          (1) The department shall make rules in accordance with [Title 63, Chapter 46a] Title
             4097      63G, Chapter 3, Utah Administrative Rulemaking Act, after considering the recommendations
             4098      of the advisory council:
             4099          (a) specifying procedures for the application and renewal of licenses for operating a
             4100      domesticated elk facility;
             4101          (b) governing the disposal or removal of domesticated elk from a domesticated elk
             4102      facility for which the license has lapsed or been revoked;
             4103          (c) setting standards and requirements for operating a domesticated elk facility;
             4104          (d) setting health requirements and standards for health inspections; and
             4105          (e) governing the possession, transportation, and accompanying documentation of
             4106      domesticated elk carcasses.
             4107          (2) The department may make other rules consistent with its responsibilities set forth in
             4108      Section 4-39-103 .
             4109          Section 42. Section 4-39-203 is amended to read:
             4110           4-39-203. License required to operate a domesticated elk facility.
             4111          (1) A person may not operate a domesticated elk facility without first obtaining a
             4112      license from the department.
             4113          (2) (a) Each application for a license to operate a domesticated elk facility shall be
             4114      accompanied by a fee.
             4115          (b) The fee shall be established by the department in accordance with Section
             4116      [ 63-38-3.2 ] 63J-1-303 .
             4117          (3) Each applicant for a domesticated elk facility license shall submit an application

             4118      providing all information in the form and manner as required by the department.
             4119          (4) (a) No license shall be issued until the department has inspected and approved the
             4120      facility.
             4121          (b) The department shall:
             4122          (i) notify the Division of Wildlife Resources at least 48 hours prior to a scheduled
             4123      inspection so that a Division of Wildlife Resources representative may be present at the
             4124      inspection; and
             4125          (ii) provide the Division of Wildlife Resources with copies of all licensing and
             4126      inspection reports.
             4127          (5) Each separate location of the domesticated elk operation shall be licensed
             4128      separately.
             4129          (6) (a) If a domesticated elk facility is operated under more than one business name
             4130      from a single location, the name of each operation shall be listed with the department in the
             4131      form and manner required by the department.
             4132          (b) The department shall require that a separate fee be paid for each business name
             4133      listed.
             4134          (c) If a domesticated elk facility operates under more than one business name from a
             4135      single location, the facility shall maintain separate records.
             4136          (7) Each person or business entity with an equity interest in the domesticated elk shall
             4137      be listed on the application for license.
             4138          (8) Each domesticated elk facility license shall expire on July 1 in the year following the
             4139      year of issuance.
             4140          (9) Each licensee shall report to the department, in the form and manner required by the
             4141      department, any change in the information provided in the licensee's application or in the reports
             4142      previously submitted, within 15 days of each change.
             4143          (10) Licenses issued pursuant to this section are not transferable.
             4144          Section 43. Section 4-39-502 is amended to read:
             4145           4-39-502. Adjudicative proceedings.

             4146          Adjudicative proceedings under this chapter shall be conducted in accordance with [Title
             4147      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             4148          Section 44. Section 7-1-105 is amended to read:
             4149           7-1-105. Procedures -- Adjudicative proceedings.
             4150          The commissioner and the department shall, except to the extent exempted, comply with
             4151      the procedures and requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             4152      Administrative Procedures Act, in their adjudicative proceedings.
             4153          Section 45. Section 7-1-301 is amended to read:
             4154           7-1-301. Powers and duties of commissioner -- Rulemaking.
             4155          Without limiting the other powers, duties, and responsibilities specified in this title, the
             4156      commissioner has all the functions, powers, duties, and responsibilities with respect to
             4157      institutions, persons, or businesses subject to the jurisdiction of the department contained in this
             4158      title, including all of the functions, powers, duties, and responsibilities described in Subsections
             4159      (1) through (15).
             4160          (1) The commissioner may govern the administration and operation of the department.
             4161          (2) The commissioner may supervise the conduct, operation, management, examination,
             4162      and statements and reports of examinations of financial institutions and other persons subject to
             4163      the jurisdiction of the department.
             4164          (3) (a) The commissioner may authorize a state chartered depository institution to
             4165      engage in any activity it could engage in, and to grant to that institution all additional rights,
             4166      powers, privileges, benefits, or immunities it would possess, if it were chartered under the laws
             4167      of the United States.
             4168          (b) The commissioner may authorize a depository institution chartered by this state to
             4169      engage in any activity that a Utah branch of an out-of-state depository institution of the same
             4170      class can engage in, and to grant to the Utah institution all additional rights, powers, privileges,
             4171      benefits, or immunities it needs to engage in the activity.
             4172          (c) In granting authority under this Subsection (3), the commissioner shall consider:
             4173          (i) the need for competitive equality between institutions chartered by this state and

             4174      institutions operating in this state that are chartered by another state or by the federal
             4175      government; and
             4176          (ii) the adverse effect on shareholders, members, depositors, and other customers of
             4177      financial institutions chartered by this state if equal power and protection of those institutions,
             4178      compared with federally chartered or out-of-state institutions of the same class, are not
             4179      promptly available.
             4180          (4) The commissioner may safeguard the interest of shareholders, members, depositors,
             4181      and other customers of institutions and other persons subject to the jurisdiction of the
             4182      department.
             4183          (5) (a) The commissioner may establish criteria consistent with this title to be applied in
             4184      granting applications for approval of:
             4185          (i) a new institution;
             4186          (ii) a new branch;
             4187          (iii) the relocation of an office or branch;
             4188          (iv) a merger;
             4189          (v) a consolidation;
             4190          (vi) a change in control of an institution or other person subject to the jurisdiction of the
             4191      department; and
             4192          (vii) other applications specified in this title.
             4193          (b) The criteria established under Subsection (5)(a) may not be applied to make it more
             4194      difficult for a state chartered institution to obtain approval of an application than for a federally
             4195      chartered institution in the same class to obtain approval from the appropriate federal regulatory
             4196      agency or administrator.
             4197          (6) (a) The commissioner may protect the privacy of the records of any institution
             4198      subject to the jurisdiction of the department pertaining to a particular depositor or other
             4199      customer of the institution. Rules adopted under this Subsection (6) shall be consistent with
             4200      federal laws and regulations applicable to the institution.
             4201          (b) Any institution that consents to produce records or that is required to produce

             4202      records in compliance with a subpoena or other order of a court of competent jurisdiction or in
             4203      compliance with an order obtained pursuant to Sections 78-27-45 through 78-27-50.5 shall be
             4204      reimbursed for the cost of retrieval and reproduction of the records by the party seeking the
             4205      information. The commissioner may by rule establish the rates and conditions under which
             4206      reimbursement is made.
             4207          (7) (a) The commissioner may classify all records kept by institutions subject to the
             4208      jurisdiction of the department and to prescribe the period for which each class of records is
             4209      retained.
             4210          (b) Rules adopted under this Subsection (7) for any class of financial institution shall be
             4211      consistent with federal laws and regulations applicable to the class.
             4212          (c) Rules made under this Subsection (7) shall provide that:
             4213          (i) An institution may dispose of any record after retaining it for the period prescribed
             4214      by the commissioner for retention of records of its class. If an institution disposes of a record
             4215      after the prescribed period, the institution has no duty to produce it in any action or proceeding
             4216      and is not liable to any person by reason of that disposition.
             4217          (ii) Any institution may keep records in its custody in the form of microfilm or
             4218      equivalent reproduction. Any such reproduction shall have the same force and effect as the
             4219      original and shall be admissible into evidence as if it were the original.
             4220          (d) In adopting rules under this Subsection (7), the commissioner shall take into
             4221      consideration:
             4222          (i) actions at law and administrative proceedings in which the production of the records
             4223      might be necessary or desirable;
             4224          (ii) state and federal statutes of limitation applicable to the actions or proceedings;
             4225          (iii) the availability from other sources of information contained in these records; and
             4226          (iv) other matters the commissioner considers pertinent in formulating rules that require
             4227      institutions to retain their records for as short a period as commensurate with the interest in
             4228      having the records available of:
             4229          (A) customers, members, depositors, and shareholders of the institutions; and

             4230          (B) the people of this state.
             4231          (8) (a) The commissioner may establish reasonable classes of depository and other
             4232      financial institutions including separate classes for:
             4233          (i) savings and loan associations and related institutions;
             4234          (ii) banks and related institutions;
             4235          (iii) credit unions; and
             4236          (iv) industrial banks.
             4237          (b) If the restrictions or requirements the commissioner imposes are not more stringent
             4238      than those applicable under federal law or regulation to federally chartered institutions of the
             4239      same class, the commissioner may establish the following for each class in a manner consistent
             4240      with this title:
             4241          (i) eligible classes and types of investments for the deposits and other funds of those
             4242      financial institutions;
             4243          (ii) minimum standards, in amounts sufficient to protect depositors and other creditors,
             4244      for the amount and types of capital required to engage in the business conducted by each class
             4245      or to obtain a license or to establish a branch or additional office of an institution of each class;
             4246          (iii) eligible obligations, reserves, and other accounts to be included in the computation
             4247      of capital;
             4248          (iv) minimum liquidity requirements for financial institutions within each class in
             4249      amounts sufficient to meet the demands of depositors and other creditors for liquid funds;
             4250          (v) limitations on the amount and type of borrowings by each class of financial
             4251      institution in relation to the amount of its capital and the character and condition of its assets
             4252      and its deposits and other liabilities;
             4253          (vi) limitations on the amount and nature of loans and extensions of credit to any person
             4254      or related persons by each class of financial institution in relation to the amount of its capital;
             4255      and
             4256          (vii) limitations on the amount and nature of loans and extensions of credit by a
             4257      financial institution or other person within each class to an executive officer, director, or

             4258      principal shareholder of:
             4259          (A) the institution or other person;
             4260          (B) any company of which the institution or other person is a subsidiary;
             4261          (C) any subsidiary of the institution or other person;
             4262          (D) any affiliate of the institution; and
             4263          (E) a company controlled by an executive officer, director, or principal shareholder of
             4264      the institution.
             4265          (9) The commissioner may define unfair trade practices of financial institutions and
             4266      other persons subject to the jurisdiction of the department and to prohibit or restrict these
             4267      practices.
             4268          (10) The commissioner may establish reasonable standards to promote the fair and
             4269      truthful advertising of:
             4270          (a) services offered by a financial institution;
             4271          (b) the charges for the services advertised under Subsection (10)(a);
             4272          (c) the interest or other compensation to be paid on deposits or any debt instrument
             4273      offered for sale by the institution;
             4274          (d) the nature and extent of any:
             4275          (i) insurance on deposits;
             4276          (ii) savings accounts;
             4277          (iii) share accounts;
             4278          (iv) certificates of deposit;
             4279          (v) time deposit accounts;
             4280          (vi) NOW accounts;
             4281          (vii) share draft accounts;
             4282          (viii) transaction accounts; or
             4283          (ix) any evidence of indebtedness issued, offered for sale, offered to sell or sold by any
             4284      financial institution or other person subject to the jurisdiction of the department; and
             4285          (e) the safety or financial soundness of any financial institution or other person subject

             4286      to the jurisdiction of the department.
             4287          (11) The commissioner may define what constitutes an impairment of capital for each
             4288      class of financial institution or other person subject to the jurisdiction of the department.
             4289          (12) The commissioner may designate days on which depository institutions are closed
             4290      in accordance with Section 7-1-808 .
             4291          (13) The commissioner may regulate the issuance, advertising, offer for sale, and sale of
             4292      a security to the extent authorized by Section 7-1-503 .
             4293          (14) The commissioner may require the officers of any institution or other person
             4294      subject to the commissioner's jurisdiction to open and keep a standard set of books, computer
             4295      records, or both for the purpose of keeping accurate and convenient records of the transactions
             4296      and accounts of the institution in a manner to enable the commissioner, supervisors, and
             4297      department examiners to readily ascertain the institution's true condition. These requirements
             4298      shall be consistent with generally accepted accounting principles for financial institutions.
             4299          (15) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             4300      Administrative Rulemaking Act, the commissioner may adopt and issue rules consistent with the
             4301      purposes and provisions of this title, and may revise, amend, or repeal the rules adopted.
             4302          Section 46. Section 7-1-323 is amended to read:
             4303           7-1-323. Regulation of interstate operations -- Coordination of efforts.
             4304          (1) The commissioner may:
             4305          (a) examine, supervise, and regulate a branch operated in this state by a depository
             4306      institution chartered by another state and take any action or issue any order with regard to that
             4307      branch;
             4308          (b) examine, supervise, and regulate a branch operated in another state by a depository
             4309      institution chartered by this state and take any action or issue any order with regard to that
             4310      branch; and
             4311          (c) coordinate these activities with any other state or federal agency that shares
             4312      jurisdiction over the institution.
             4313          (2) The commissioner may coordinate the examination, supervision, and regulation of

             4314      any depository institution chartered by this state with the examination, supervision, and
             4315      regulation of an affiliated depository institution operating in another state.
             4316          (3) The commissioner may take any reasonable and lawful action in furtherance of
             4317      coordinating the regulation of interstate operations, including:
             4318          (a) negotiating and entering into cooperative agreements with an agency of another
             4319      state or of the federal government;
             4320          (b) sharing information and reports in accordance with Section 7-1-802 with an agency
             4321      that shares jurisdiction over the institution;
             4322          (c) accepting as sufficient, if appropriate, examination reports and other information
             4323      compiled or generated by or for an agency that shares jurisdiction over the institution;
             4324          (d) contracting with an agency that shares jurisdiction over the institution to engage the
             4325      services of its examiners at a reasonable rate of compensation;
             4326          (e) offering the services of the department's examiners at a reasonable rate of
             4327      compensation to an agency that shares jurisdiction over the institution;
             4328          (f) collecting fees on behalf of, or receiving payment of fees through, an agency that
             4329      shares jurisdiction over the institution; and
             4330          (g) cooperating in any other way with other supervisory agencies and professional
             4331      associations to promote the efficient, safe, and sound operation and regulation of interstate
             4332      depository institution activities, including the formulation of interstate examination policies and
             4333      procedures and the drafting of model laws, rules, and agreements.
             4334          (4) A contract between the department and an agency that shares jurisdiction over a
             4335      depository institution to provide examiners to aid in interstate examination and regulation is
             4336      considered a sole source contract under Section [ 63-56-410 ] 63G-6-410 .
             4337          Section 47. Section 7-1-324 is amended to read:
             4338           7-1-324. Debt cancellation agreements and debt suspension agreements.
             4339          (1) As used in this section:
             4340          (a) "Class of depository institution" means a class consisting of:
             4341          (i) banks;

             4342          (ii) credit unions;
             4343          (iii) industrial banks;
             4344          (iv) savings and loan associations; or
             4345          (v) wholly owned subsidiaries of a depository institution listed in this Subsection (1)(a).
             4346          (b) "Debt cancellation agreement" is as defined in Section 31A-21-109 .
             4347          (c) "Debt suspension agreement" is as defined in Section 31A-21-109 .
             4348          (2) Subject to the other provisions of this section, the commissioner may by rule, made
             4349      in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             4350      Rulemaking Act:
             4351          (a) authorize any member of a class of depository institution that is subject to the
             4352      jurisdiction of the department to issue:
             4353          (i) a debt cancellation agreement; or
             4354          (ii) a debt suspension agreement; and
             4355          (b) regulate the issuance of a debt cancellation agreement or a debt suspension
             4356      agreement issued in this state by a member of a class of depository institution.
             4357          (3) (a) Any rule adopted by the commissioner under this section as applied to a class of
             4358      depository institution shall be substantially similar to any federal regulation applying to the same
             4359      class of depository institution.
             4360          (b) Any rule adopted by the commissioner applicable to a class of depository institution
             4361      described in this Subsection (3)(b) shall be substantially similar to any federal regulation
             4362      applicable to a bank if no federal regulation authorizes or regulates the issuance of a debt
             4363      cancellation agreement or debt suspension agreement for that class of depository institution.
             4364          (4) (a) An out-of-state depository institution may issue a debt cancellation agreement or
             4365      debt suspension agreement in this state if:
             4366          (i) the home state of the out-of-state depository institution authorizes and regulates the
             4367      issuance of a debt cancellation agreement or debt suspension agreement by the out-of-state
             4368      depository institution; and
             4369          (ii) subject to Subsection (4)(b), the out-of-state depository institution complies with

             4370      regulations from the out-of-state depository institution's home state that regulate the issuance of
             4371      a debt cancellation agreement or a debt suspension agreement.
             4372          (b) Notwithstanding Subsection (4)(a), an out-of-state depository institution described
             4373      in Subsection (4)(a) shall comply with rules adopted by the commissioner under this section that
             4374      regulate the issuance of a debt cancellation agreement or a debt suspension agreement in this
             4375      state by the class of depository institution to which the out-of-state depository institution
             4376      belongs if the regulations of the out-of-state depository institution's home state do not provide
             4377      at least the same level of protection with respect to a debt cancellation agreement or debt
             4378      suspension agreement as the rules adopted by the commissioner under this section with respect
             4379      to the same class of depository institution:
             4380          (i) for the safety and soundness of the depository institution; and
             4381          (ii) for consumer protections for the borrowers of the depository institution.
             4382          Section 48. Section 7-1-325 is amended to read:
             4383           7-1-325. Compliance with applicable federal law.
             4384          (1) As used in this section, "federal law" means:
             4385          (a) a statute passed by the Congress of the United States; or
             4386          (b) a final regulation:
             4387          (i) adopted by an administrative agency of the United States government; and
             4388          (ii) published in the code of federal regulations or the federal register.
             4389          (2) (a) An institution subject to the jurisdiction of the department violates this title if the
             4390      institution violates a federal law:
             4391          (i) that is applicable to the institution; and
             4392          (ii) pursuant to the terms of the federal law in effect on the day the institution violates
             4393      the federal law.
             4394          (b) The department shall by rule, made in accordance with [Title 63, Chapter 46a] Title
             4395      63G, Chapter 3, Utah Administrative Rulemaking Act, and consistent with this title, designate
             4396      which one or more federal laws are applicable to an institution subject to the jurisdiction of the
             4397      department.

             4398          (3) Except for criminal penalties, the department may enforce a violation described in
             4399      Subsection (2) by taking any action:
             4400          (a) permitted by:
             4401          (i) this part;
             4402          (ii) Chapter 2, Possession of Depository Institution by Commissioner;
             4403          (iii) Chapter 19, Acquisition of Failing Depository Institutions or Holding Companies;
             4404          (iv) in the case of a check casher, Chapter 23, Check Cashing Registration Act; or
             4405          (v) in the case of a title lender, Chapter 24, Title Lending Registration Act; and
             4406          (b) including bringing an action permitted under this title in state court.
             4407          Section 49. Section 7-1-704 is amended to read:
             4408           7-1-704. Authorization required to engage in business -- Exemptions --
             4409      Procedure.
             4410          (1) (a) An institution subject to the jurisdiction of the department may maintain an
             4411      office in this state or engage in the activities of a financial institution in this state only if it is
             4412      authorized to do so by the department.
             4413          (b) This Subsection (1) does not apply to:
             4414          (i) any person who is lawfully engaging in the activities of a financial institution in this
             4415      state on July 1, 1981, unless the institution was not subject to the jurisdiction of the department
             4416      before that date;
             4417          (ii) an application to establish a branch or additional office; or
             4418          (iii) the establishment of a service corporation or service organization.
             4419          (2) An applicant for authorization to become an institution subject to the jurisdiction of
             4420      the department shall pay to the department the appropriate filing fee, as provided in Section
             4421      7-1-401 , and shall file with the commissioner:
             4422          (a) its undertaking to pay all expenses incurred in conducting any administrative
             4423      proceedings forming part of the department's consideration of the application;
             4424          (b) its proposed articles of incorporation and by-laws;
             4425          (c) an application in a form prescribed by the commissioner that includes all information

             4426      the commissioner requires about the source of the proposed original capital and about the
             4427      identity, personal history, business background and experience, financial condition, and
             4428      participation in any litigation or administrative proceeding of the organizers, the proposed
             4429      members of the board of directors, and the principal officers; and
             4430          (d) any other information the commissioner requires.
             4431          (3) In addition to the requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             4432      Administrative Procedures Act, the commissioner shall, at the expense of the applicant:
             4433          (a) give notice of the application by publication in three successive issues of a
             4434      newspaper of general circulation in the county where the principal place of business is to be
             4435      established;
             4436          (b) give notice of the application to other institutions subject to the jurisdiction of the
             4437      department in a manner and to an extent the commissioner considers appropriate;
             4438          (c) cause the appropriate supervisor to make a careful investigation and examination of
             4439      the following:
             4440          (i) the character, reputation, and financial standing and ability of the organizers;
             4441          (ii) the character, financial responsibility, experience, and business qualifications of
             4442      those proposed as officers;
             4443          (iii) the character and standing in the community of those proposed as directors,
             4444      principal stockholders, or owners;
             4445          (iv) the need in the service area where the institution would be located, giving particular
             4446      consideration to the adequacy of existing financial facilities and the effect the proposed
             4447      institution would have on existing institutions in the area;
             4448          (v) the ability of the proposed service area to support the proposed institution, including
             4449      the extent and nature of existing competition, the economic history and future prospects of the
             4450      community, and the opportunity for profitable employment of financial institution funds; and
             4451          (vi) other facts and circumstances bearing on the proposed institution that the
             4452      supervisor considers relevant.
             4453          (4) (a) The supervisor shall submit findings and recommendations in writing to the

             4454      commissioner.
             4455          (b) The application, any additional information furnished by the applicant, and the
             4456      findings and recommendations of the supervisor may be inspected by any person at the
             4457      department's office, except those portions of the application or report the commissioner declares
             4458      to be confidential, pursuant to the applicant's request, in order to prevent a clearly unwarranted
             4459      invasion of privacy.
             4460          (5) (a) If a hearing is held, the applicant shall publish notice of the hearing at the
             4461      applicant's expense in a newspaper of general circulation within the county where the proposed
             4462      institution is to be located at least once a week for three successive weeks before the date of
             4463      hearing.
             4464          (b) The notice shall include the date, time, and place of the hearing and any other
             4465      information required by the commissioner.
             4466          (c) The commissioner shall act on the record before him within 30 days after receipt of
             4467      the transcript of the hearing.
             4468          (6) If no hearing is held, the commissioner may, within 90 days of acceptance of the
             4469      application as complete, approve or disapprove the application based on the papers filed with
             4470      him, together with the supervisor's findings and recommendations.
             4471          (7) (a) The commissioner may not approve the application unless [he] the commissioner
             4472      finds that the applicant has established by the preponderance of the evidence that:
             4473          (i) in light of the need for financial services in the area, the adequacy of existing
             4474      facilities, and the effect the proposed institution would have on existing institutions in the area,
             4475      the public need and convenience will be promoted by the establishment of the proposed
             4476      institution;
             4477          (ii) in light of the ability of the proposed service area to support the proposed
             4478      institution, including the extent and nature of existing competition, the economic history and
             4479      future prospects of the community, and the opportunity for profitable employment of financial
             4480      institution funds, conditions in the service area in which the proposed institution would transact
             4481      business afford reasonable promise of a successful operation;

             4482          (iii) the institution is being formed only for legitimate purposes allowed by the laws of
             4483      this state;
             4484          (iv) the proposed capital equals or exceeds the required minimum and is adequate in
             4485      light of current and prospective conditions;
             4486          (v) if the applicant is seeking authority to accept deposits, the deposits will be insured
             4487      or guaranteed by an agency of the federal government;
             4488          (vi) the proposed officers and directors have sufficient experience, ability, and standing
             4489      to afford reasonable promise of a successful operation;
             4490          (vii) the name of the proposed financial institution does not resemble the name of any
             4491      other institution transacting business in this state so closely as to cause confusion;
             4492          (viii) the applicants have complied with all of the provisions of law; and
             4493          (ix) no properly managed and soundly operated existing institutions offering
             4494      substantially similar services in the service area to which the application relates will be unduly
             4495      injured by approval of the application.
             4496          (b) The commissioner may condition approval of the application on the institution's
             4497      acceptance of requirements or conditions with respect to insurance that the commissioner
             4498      considers necessary to protect depositors.
             4499          (8) (a) The commissioner shall provide written findings and conclusions on the
             4500      application.
             4501          (b) Upon approving an application, the commissioner shall:
             4502          (i) endorse the approval on the articles of incorporation;
             4503          (ii) file one copy with the Division of Corporations and Commercial Code;
             4504          (iii) retain one file copy; and
             4505          (iv) return one copy to the applicant within ten days after the date of [his] the
             4506      commissioner's decision approving the application.
             4507          (c) Upon disapproving an application, the commissioner shall mail notice of the
             4508      disapproval to the applicant within ten days.
             4509          (d) The commissioner may approve an application subject to conditions [he] the

             4510      commissioner considers appropriate to protect the public interest and carry out the purposes of
             4511      this title.
             4512          (e) The commissioner shall give written notice of the decision to all persons who have
             4513      filed a protest to the application.
             4514          (9) Upon approval of an application for authorization to conduct a business subject to
             4515      the jurisdiction of the department, the commissioner shall issue a license, permit, or other
             4516      appropriate certificate of authority if:
             4517          (a) except in the case of credit unions, all of the capital of the institution being formed
             4518      has been paid in; and
             4519          (b) all the conditions and other requirements for approval of the application have been
             4520      met.
             4521          (10) (a) Any approval by the commissioner of an application under this section is
             4522      considered revoked unless the business is open and operating within one year from the date of
             4523      the approval.
             4524          (b) The commissioner, on written application made before the expiration of that period,
             4525      and for good cause shown, may extend the date for activation for additional periods not to
             4526      exceed six months each.
             4527          (11) No person may obtain, for the purpose of resale, a certificate of approval to
             4528      operate any institution under the jurisdiction of the department.
             4529          (12) The commissioner may approve an application without any notice to other
             4530      financial institutions to respond to an emergency arising from the insolvency of an existing
             4531      institution or to prevent the failure of an existing institution if the commissioner makes the
             4532      findings required by Subsection (7).
             4533          Section 50. Section 7-1-810 is amended to read:
             4534           7-1-810. Limited liability companies.
             4535          (1) Notwithstanding any other provision of this title and subject to Subsection (8), if the
             4536      conditions of this section are met, the following may be organized as or convert to a limited
             4537      liability company under Title 48, Chapter 2c, Utah Revised Limited Liability Company Act:

             4538          (a) an industrial bank chartered under Chapter 8, Industrial Banks;
             4539          (b) an industrial loan company as defined in Section 7-8-21 ; or
             4540          (c) any of the following if the institution is an S Corporation, as defined in Section
             4541      1361, Internal Revenue Code, immediately before becoming a limited liability company:
             4542          (i) a bank chartered under Chapter 3, Banks;
             4543          (ii) a savings and loan association chartered under Chapter 7, Savings and Loan
             4544      Associations Act; or
             4545          (iii) a depository institution holding company.
             4546          (2) (a) Before an institution described in Subsection (1) may organize as or convert to a
             4547      limited liability company, the institution shall obtain approval of the commissioner.
             4548          (b) (i) To obtain the approval under this section from the commissioner, the institution
             4549      shall file a request for approval with the commissioner at least 30 days before the day on which
             4550      the institution becomes a limited liability company.
             4551          (ii) If the commissioner does not disapprove the request for approval within 30 days
             4552      from the day on which the commissioner receives the request, the request is considered
             4553      approved.
             4554          (iii) When taking action on a request for approval filed under this section, the
             4555      commissioner may:
             4556          (A) approve the request;
             4557          (B) approve the request subject to terms and conditions the commissioner considers
             4558      necessary; or
             4559          (C) disapprove the request.
             4560          (3) To approve a request for approval, the commissioner shall find:
             4561          (a) for an institution described in Subsection (1) that is required to be insured by a
             4562      federal deposit insurance agency, that the institution:
             4563          (i) will operate in a safe and sound manner;
             4564          (ii) has the following characteristics:
             4565          (A) the institution is not subject to automatic termination, dissolution, or suspension

             4566      upon the happening of some event other than the passage of time;
             4567          (B) the exclusive authority to manage the institution is vested in a board of managers or
             4568      directors that:
             4569          (I) is elected or appointed by the owners;
             4570          (II) is not required to have owners of the institution included on the board;
             4571          (III) possesses adequate independence and authority to supervise the operation of the
             4572      institution; and
             4573          (IV) operates with substantially the same rights, powers, privileges, duties, and
             4574      responsibilities as the board of directors of a corporation;
             4575          (C) neither state law, nor the institution's operating agreement, bylaws, or other
             4576      organizational documents provide that an owner of the institution is liable for the debts,
             4577      liabilities, and obligations of the institution in excess of the amount of the owner's investment;
             4578      and
             4579          (D) (I) neither state law, nor the institution's operating agreement, bylaws, or other
             4580      organizational documents require the consent of any other owner of the institution in order for
             4581      any owner to transfer an ownership interest in the institution, including voting rights; and
             4582          (II) the institution is able to obtain new investment funding if needed to maintain
             4583      adequate capital; and
             4584          (iii) is able to comply with all legal and regulatory requirements for an insured
             4585      depository institution under applicable federal and state law; and
             4586          (b) for an institution described in Subsection (1) that is not required to be insured by a
             4587      federal deposit insurance agency, that the institution will operate in a safe and sound manner.
             4588          (4) An institution described in Subsection (3)(a) that is organized as a limited liability
             4589      company shall maintain the characteristics listed in Subsection (3)(a)(ii) during such time as it is
             4590      authorized to conduct business under this title as a limited liability company.
             4591          (5) (a) All rights, privileges, powers, duties, and obligations of an institution described
             4592      in Subsection (1) that is organized as a limited liability company and its members and managers
             4593      shall be governed by Title 48, Chapter 2c, Utah Revised Limited Liability Company Act, except:

             4594          (i) the following sections do not apply to an institution that is described in Subsection
             4595      (3)(a):
             4596          (A) Subsection 48-2c-402 (2)(a)(ii);
             4597          (B) Section 48-2c-604 ;
             4598          (C) Section 48-2c-703 ;
             4599          (D) Section 48-2c-708 ;
             4600          (E) Subsection 48-2c-801 (2);
             4601          (F) Section 48-2c-1102 ;
             4602          (G) Section 48-2c-1104 ; and
             4603          (H) Subsections 48-2c-1201 (2) through (5); and
             4604          (ii) as otherwise provided in this title.
             4605          (b) Notwithstanding Subsection (5)(a), for an institution that is described in Subsection
             4606      (3)(a):
             4607          (i) for purposes of transferring a member's interests in the institution, a member's
             4608      interest in the institution shall be treated like a share of stock in a corporation; and
             4609          (ii) if a member's interest in the institution is transferred voluntarily or involuntarily to
             4610      another person, the person who receives the member's interest shall obtain the member's entire
             4611      rights associated with the member's interest in the institution including:
             4612          (A) all economic rights; and
             4613          (B) all voting rights.
             4614          (c) An institution described in Subsection (3)(a) may not by agreement or otherwise
             4615      change the application of Subsection (5)(a) to the institution.
             4616          (6) Unless the context requires otherwise, for the purpose of applying this title to an
             4617      institution described in Subsection (1) that is organized as a limited liability company:
             4618          (a) a citation to Title 16, Chapter 10a, Utah Revised Business Corporation Act,
             4619      includes the equivalent citation to Title 48, Chapter 2c, Utah Revised Limited Liability
             4620      Company Act;
             4621          (b) "articles of incorporation" includes a limited liability company's articles of

             4622      organization as that term is used in Section 48-2c-403 ;
             4623          (c) "board of directors" includes one or more persons who have, with respect to an
             4624      institution described in Subsection (1), authority substantially similar to that of a board of
             4625      directors of a corporation;
             4626          (d) "bylaws" includes a limited liability company's operating agreement as that term is
             4627      defined in Section 48-2c-102 ;
             4628          (e) "corporation" includes a limited liability company organized under Title 48, Chapter
             4629      2c, Utah Revised Limited Liability Company Act;
             4630          (f) "director" includes any of the following of a limited liability company:
             4631          (i) a manager;
             4632          (ii) a director; or
             4633          (iii) other person who has with respect to the institution described in Subsection (1),
             4634      authority substantially similar to that of a director of a corporation;
             4635          (g) "dividend" includes distributions made by a limited liability company under Title 48,
             4636      Chapter 2c, Part 10, Distributions;
             4637          (h) "incorporator" includes the organizers of a limited liability company as provided in
             4638      Title 48, Chapter 2c, Part 4, Formation;
             4639          (i) "officer" includes any of the following of an institution described in Subsection (1):
             4640          (i) an officer; or
             4641          (ii) other person who has with respect to the institution described in Subsection (1)
             4642      authority substantially similar to that of an officer of a corporation;
             4643          (j) "security," "shares," or "stock" of a corporation includes:
             4644          (i) a membership interest in a limited liability company as provided in Title 48, Chapter
             4645      2c, Part 7, Members; and
             4646          (ii) any certificate or other evidence of an ownership interest in a limited liability
             4647      company; and
             4648          (k) "stockholder" or "shareholder" includes an owner of an interest in an institution
             4649      described in Subsection (1) including a member as provided in Title 48, Chapter 2c, Part 7,

             4650      Members.
             4651          (7) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             4652      Administrative Rulemaking Act, the commissioner shall make rules governing the form of a
             4653      request for approval filed under this section.
             4654          (8) A depository institution organized under the laws of this state may not be organized
             4655      as or converted to a series of members, managers, or interests in a limited liability company as
             4656      provided in Section 48-2c-606 .
             4657          Section 51. Section 7-2-9 is amended to read:
             4658           7-2-9. Conservatorship, receivership, or liquidation of institution -- Appointment
             4659      of receiver -- Review of actions.
             4660          (1) Upon taking possession of the institution, the commissioner may appoint a receiver
             4661      to perform the duties of the commissioner. Subject to any limitations, conditions, or
             4662      requirements specified by the commissioner and approved by the court, a receiver shall have all
             4663      the powers and duties of the commissioner under this chapter and the laws of this state to act as
             4664      a conservator, receiver, or liquidator of the institution. Actions of the commissioner in
             4665      appointing a receiver shall be subject to review only as provided in Section 7-2-2 .
             4666          (2) (a) If the deposits of the institution are to any extent insured by a federal deposit
             4667      insurance agency, the commissioner may appoint that agency as receiver. After receiving notice
             4668      in writing of the acceptance of the appointment, the commissioner shall file a certificate of
             4669      appointment in [his] the commissioner's office and with the clerk of the district court. After the
             4670      filing of the certificate, the possession of all assets, business, and property of the institution is
             4671      considered transferred from the institution and the commissioner to the agency, and title to all
             4672      assets, business, and property of the institution is vested in the agency without the execution of
             4673      any instruments of conveyance, assignment, transfer, or endorsement.
             4674          (b) If a federal deposit insurance agency accepts an appointment as receiver, it has all
             4675      the powers and privileges provided by the laws of this state and the United States with respect
             4676      to the conservatorship, receivership, or liquidation of an institution and the rights of its
             4677      depositors, and other creditors, including authority to make an agreement for the purchase of

             4678      assets and assumption of deposit and other liabilities by another depository institution or take
             4679      other action authorized by Title 12 of the United States Code to maintain the stability of the
             4680      banking system. Such action by a federal deposit insurance agency may be taken upon approval
             4681      by the court, with or without prior notice. Such actions or agreements may be disapproved,
             4682      amended, or rescinded only upon a finding by the court that the decisions or actions of the
             4683      receiver are arbitrary, capricious, fraudulent, or contrary to law. In the event of any conflict
             4684      between state and federal law, including provisions for adjudicating claims against the institution
             4685      or receiver, the receiver shall comply with the federal law and any resulting violation of state
             4686      law shall not by itself constitute grounds for the court to disapprove the actions of the receiver
             4687      or impose any penalty for such violation.
             4688          (c) The commissioner or any receiver appointed by him shall possess all the rights and
             4689      claims of the institution against any person whose breach of fiduciary duty or violations of the
             4690      laws of this state or the United States applicable to depository institutions may have caused or
             4691      contributed to a condition which resulted in any loss incurred by the institution or to its assets in
             4692      the possession of the commissioner or receiver. As used in this Subsection (2)(c), fiduciary
             4693      duty includes those duties and standards applicable under statutes and laws of this state and the
             4694      United States to a director, officer, or other party employed by or rendering professional
             4695      services to a depository institution whose deposits are insured by a federal deposit insurance
             4696      agency. Upon taking possession of an institution, no person other than the commissioner or
             4697      receiver shall have standing to assert any such right or claim of the institution, including its
             4698      depositors, creditors, or shareholders unless the right or claim has been abandoned by the
             4699      commissioner or receiver with approval of the court. Any judgment based on the rights and
             4700      claims of the commissioner or receiver shall have priority in payment from the assets of the
             4701      judgment debtors.
             4702          (d) For the purposes of this section, the term "federal deposit insurance agency" shall
             4703      include the Federal Deposit Insurance Corporation, the National Credit Union Administration
             4704      and any departments thereof or successors thereto, and any other federal agency authorized by
             4705      federal law to act as a conservator, receiver, and liquidator of a federally insured depository

             4706      institution, including the Resolution Trust Corporation and any department thereof or successor
             4707      thereto.
             4708          (3) The receiver may employ assistants, agents, accountants, and legal counsel. If the
             4709      receiver is not a federal deposit insurance agency, the compensation to be paid such assistants,
             4710      agents, accountants, and legal counsel shall be approved by the commissioner. All expenses
             4711      incident to the receivership shall be paid out of the assets of the institution. If a receiver is not a
             4712      federal deposit insurance agency, the receiver and any assistants and agents shall provide bond
             4713      or other security specified by the commissioner and approved by the court for the faithful
             4714      discharge of all duties and responsibilities in connection with the receivership including the
             4715      accounting for money received and paid. The cost of the bond shall be paid from the assets of
             4716      the institution. Suit may be maintained on the bond by the commissioner or by any person
             4717      injured by a breach of the condition of the bond.
             4718          (4) (a) Upon the appointment of a receiver for an institution in possession pursuant to
             4719      this chapter, the commissioner and the department are exempt from liability or damages for any
             4720      act or omission of any receiver appointed pursuant to this section.
             4721          (b) This section does not limit the right of the commissioner to prescribe and enforce
             4722      rules regulating a receiver in carrying out its duties with respect to an institution subject to the
             4723      jurisdiction of the department.
             4724          (c) Any act or omission of the commissioner or of any federal deposit insurance agency
             4725      as a receiver appointed by him while acting pursuant to this chapter shall be deemed to be the
             4726      exercise of a discretionary function within the meaning of Section [ 63-30d-301 ] 63G-7-301 of
             4727      the laws of this state or Section 28 U.S.C. 2680(a) of the laws of the United States.
             4728          (5) Actions, decisions, or agreements of a receiver under this chapter, other than
             4729      allowance or disallowance of claims under Section 7-2-6 , shall be subject to judicial review only
             4730      as follows:
             4731          (a) A petition for review shall be filed with the court having jurisdiction under Section
             4732      7-2-2 not more than 90 days after the date the act, decision, or agreement became effective or
             4733      its terms are filed with the court.

             4734          (b) The petition shall state in simple, concise, and direct terms the facts and principles
             4735      of law upon which the petitioner claims the act, decision, or agreement of the receiver was or
             4736      would be arbitrary, capricious, fraudulent, or contrary to law and how the petitioner is or may
             4737      be damaged thereby. The court shall dismiss any petition which fails to allege that the petitioner
             4738      would be directly injured or damaged by the act, decision, or agreement which is the subject of
             4739      the petition. Rule 11 of the Utah Rules of Civil Procedure shall apply to all parties with respect
             4740      to the allegations set forth in a petition or response.
             4741          (c) The receiver shall have 30 days after service of the petition within which to respond.
             4742          (d) All further proceedings are to be conducted in accordance with the Utah Rules of
             4743      Civil Procedure.
             4744          (6) All notices required under this section shall be made in accordance with the Utah
             4745      Rules of Civil Procedure and served upon the attorney general of the state of Utah, the
             4746      commissioner of financial institutions, the receiver of the institution appointed under this
             4747      chapter, and upon the designated representative of any party in interest who requests in writing
             4748      such notice.
             4749          Section 52. Section 7-2-21 is amended to read:
             4750           7-2-21. Applicability of Utah Procurement Code.
             4751          No action of the commissioner taken under this chapter or Chapter 19 is subject to the
             4752      provisions of [Title 63, Chapter 56, the] Title 63G, Chapter 6, Utah Procurement Code.
             4753          Section 53. Section 7-9-59 is amended to read:
             4754           7-9-59. Credit union service organizations -- Limitations on providing services
             4755      through other entities.
             4756          (1) This section applies to a credit union service organization in which a credit union
             4757      organized under this chapter has an ownership interest.
             4758          (2) (a) A credit union service organization may provide a service only if the service is:
             4759          (i) (A) listed in Subsection (2)(b); or
             4760          (B) approved by the commissioner in accordance with Subsection (4)(b); and
             4761          (ii) (A) except for the extension of credit by the credit union service organization,

             4762      limited primarily to:
             4763          (I) credit unions that hold an ownership interest in the credit union service organization;
             4764          (II) members of credit unions that hold an ownership interest in the credit union service
             4765      organization;
             4766          (III) members of credit unions that contract with the credit union service organization;
             4767      or
             4768          (IV) credit unions that contract with the credit union service organization but do not
             4769      hold an ownership interest in the credit union service organization; or
             4770          (B) for purposes of the extension of credit by the credit union service organization,
             4771      limited to members of a credit union that holds an ownership interest in the credit union service
             4772      organization.
             4773          (b) Subsection (2)(a) applies to:
             4774          (i) the following checking and currency services:
             4775          (A) check cashing;
             4776          (B) coin and currency services; and
             4777          (C) services related to:
             4778          (I) a money order;
             4779          (II) a savings bond;
             4780          (III) a travelers check; or
             4781          (IV) the purchase and sale of United States Mint commemorative coins;
             4782          (ii) the following clerical, professional, and management services:
             4783          (A) accounting services;
             4784          (B) courier services;
             4785          (C) credit analysis;
             4786          (D) facsimile transmission and copying services;
             4787          (E) services related to conducting an internal audit for a credit union;
             4788          (F) locator services;
             4789          (G) services related to management and personnel training and support;

             4790          (H) marketing services;
             4791          (I) research services; or
             4792          (J) services related to a supervisory committee audit;
             4793          (iii) consumer mortgage loan origination;
             4794          (iv) the following electronic transaction services:
             4795          (A) automated teller machine services;
             4796          (B) credit card services;
             4797          (C) debit card services;
             4798          (D) data processing services;
             4799          (E) electronic fund transfer services;
             4800          (F) services related to electronic income tax filings;
             4801          (G) payment item processing;
             4802          (H) wire transfer services; or
             4803          (I) cyber financial services;
             4804          (v) the following financial counseling services:
             4805          (A) developing and administering personnel benefit plans including:
             4806          (I) individual retirement accounts;
             4807          (II) Keogh plans; or
             4808          (III) deferred compensation plans;
             4809          (B) estate planning;
             4810          (C) financial planning and counseling;
             4811          (D) income tax preparation;
             4812          (E) investment counseling; or
             4813          (F) retirement counseling;
             4814          (vi) fixed asset services related to the:
             4815          (A) management, development, sale, or lease of fixed assets; or
             4816          (B) sale, lease, or servicing of computer hardware or software;
             4817          (vii) the following insurance brokerage or agency services:

             4818          (A) operating as an agency for sale of insurance;
             4819          (B) providing vehicle warranty programs; or
             4820          (C) providing group purchasing programs;
             4821          (viii) the following leasing services:
             4822          (A) leasing of personal property; or
             4823          (B) real estate leasing of excess credit union service organization property;
             4824          (ix) the following loan support services:
             4825          (A) debt collection services;
             4826          (B) loan processing, servicing, and sales; or
             4827          (C) sale of repossessed collateral;
             4828          (x) the extension of credit including member-business loans;
             4829          (xi) the following record retention, security, and disaster recovery services:
             4830          (A) alarm-monitoring and other security services;
             4831          (B) disaster recovery services;
             4832          (C) services related to:
             4833          (I) microfilm;
             4834          (II) microfiche;
             4835          (III) optical and electronic imaging; or
             4836          (IV) CD-ROM data storage retrieval;
             4837          (D) providing forms and supplies; or
             4838          (E) services related to record retention and storage;
             4839          (xii) securities brokerage services;
             4840          (xiii) operation of shared credit union branch services, including service centers;
             4841          (xiv) student loan origination;
             4842          (xv) travel agency services;
             4843          (xvi) the following trust and trust-related services:
             4844          (A) acting as an administrator for a prepaid legal service plan;
             4845          (B) acting in a fiduciary capacity including as:

             4846          (I) trustee;
             4847          (II) guardian;
             4848          (III) conservator; or
             4849          (IV) estate administrator; or
             4850          (C) trust services; or
             4851          (xvii) making credit union service organization investments in noncredit union service
             4852      organization service providers.
             4853          (3) (a) One or more credit unions organized under this chapter may form a credit union
             4854      service organization on or after the day on which each credit union forming the credit union
             4855      service organization obtains in accordance with this section the approval by the commissioner
             4856      for the formation of the credit union service organization.
             4857          (b) To obtain approval from the commissioner for the formation of a credit union
             4858      service organization, each credit union that is forming a credit union service organization shall
             4859      file an application with the commissioner that specifies:
             4860          (i) whether the credit union meets the capital and surplus standards established by rule
             4861      by the commissioner;
             4862          (ii) the services to be provided by the credit union service organization; and
             4863          (iii) any information required by rule by the commissioner.
             4864          (c) The commissioner may by rule establish the requirements for forming of a credit
             4865      union service organization to ensure that:
             4866          (i) the credit union service organization as formed:
             4867          (A) has the financial capacity to provide the services described in the application
             4868      requesting the formation of the credit union service organization in a safe and sound manner;
             4869      and
             4870          (B) has the managerial expertise to provide the services described in the application
             4871      requesting the formation of the credit union service organization in a safe and sound manner;
             4872      and
             4873          (ii) any potential harm that granting the approval may have on other institutions subject

             4874      to the jurisdiction of the department does not clearly outweigh the probable beneficial effect of
             4875      the credit union service organization providing the services.
             4876          (4) (a) A credit union service organization may provide a service that is described in
             4877      Subsection (2)(b) but not listed in the application requesting the formation of the credit union
             4878      service organization by filing written notice with the commissioner at least 30 days before the
             4879      day on which the credit union service organization first provides the service.
             4880          (b) A credit union service organization may provide a service not described in
             4881      Subsection (2)(b) if:
             4882          (i) the credit union service organization files a written request for approval to provide
             4883      the service with the commissioner; and
             4884          (ii) the commissioner approves the credit union service organization providing that
             4885      service.
             4886          (c) The commissioner may at any time limit the services engaged in by a credit union
             4887      service organization on the basis of:
             4888          (i) a supervisory reason;
             4889          (ii) a legal reason; or
             4890          (iii) a safety and soundness reason.
             4891          (5) The commissioner may conduct examinations of a credit union service organization
             4892      in accordance with Section 7-1-314 .
             4893          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             4894      Administrative Rulemaking Act, the commissioner may make rules for purposes of this section:
             4895          (a) defining what constitutes an ownership interest held by a credit union;
             4896          (b) specifying the information required to be included in an application seeking to form
             4897      a credit union service organization;
             4898          (c) specifying in accordance with Subsection (3), the requirements for forming a credit
             4899      union service organization;
             4900          (d) specifying the procedure for obtaining approval to provide a service under
             4901      Subsection (4)(a); and

             4902          (e) specifying the conditions under which a credit union service organization may
             4903      provide a service described in Subsection (2).
             4904          (7) (a) Except as provided in Subsection (7)(b), a credit union may not provide any
             4905      service to a member of the credit union through:
             4906          (i) a person who is controlled by or is under common control with the credit union
             4907      whether or not the control is exercised:
             4908          (A) directly; or
             4909          (B) indirectly through one or more intermediary controls; or
             4910          (ii) an entity in which the credit union holds an ownership interest.
             4911          (b) Notwithstanding Subsection (7)(a), a credit union may provide services to a member
             4912      of a credit union:
             4913          (i) through a credit union service organization to the extent permitted by this section; or
             4914          (ii) through a loan production office to the extent those services are authorized by
             4915      Section 7-1-715 .
             4916          (c) Notwithstanding Section 7-1-103 , for purposes of this section, "control" means the
             4917      power, directly, or indirectly, to:
             4918          (i) direct or exercise a controlling influence over:
             4919          (A) the management or policies of an entity; or
             4920          (B) the election of a majority of the directors or trustees of an entity;
             4921          (ii) vote 20% or more of any class of voting securities of an entity by an individual; or
             4922          (iii) vote more than 5% of any class of voting securities of an entity by a person other
             4923      than an individual.
             4924          (d) Nothing within this section may be interpreted as prohibiting a credit union from
             4925      entering into a contract or agreement to provide services to members of the credit union if the
             4926      person with whom the credit union enters into the contract agreement is not a person described
             4927      in Subsection (7)(a).
             4928          (8) (a) A credit union holding an ownership interest in a credit union service
             4929      organization operating on May 5, 2003 is not required to file an application requesting to form

             4930      that credit union service organization.
             4931          (b) A credit union service organization operating on May 5, 2003:
             4932          (i) shall provide the commissioner written notice of the services the credit union service
             4933      organization provides by no later than July 1, 2003; and
             4934          (ii) may provide a service not described in Subsection (2)(b) on or after July 1, 2003
             4935      only if the credit union service organization has obtained approval from the commissioner in
             4936      accordance with Subsection (4).
             4937          Section 54. Section 7-23-103 is amended to read:
             4938           7-23-103. Registration -- Rulemaking.
             4939          (1) (a) It is unlawful for a person to engage in the business of a check casher in Utah or
             4940      with a Utah resident unless the person:
             4941          (i) registers with the department in accordance with this chapter; and
             4942          (ii) maintains a valid registration.
             4943          (b) It is unlawful for a person to operate a mobile facility in this state to engage in the
             4944      business of a check casher.
             4945          (2) (a) A registration and a renewal of a registration expires on April 30 of each year
             4946      unless on or before that date the person renews the registration.
             4947          (b) To register under this section, a person shall:
             4948          (i) pay an original registration fee established under Subsection 7-1-401 (8); and
             4949          (ii) submit a registration statement containing the information described in Subsection
             4950      (2)(d).
             4951          (c) To renew a registration under this section, a person shall:
             4952          (i) pay the annual fee established under Subsection 7-1-401 (5); and
             4953          (ii) submit a renewal statement containing the information described in Subsection
             4954      (2)(d).
             4955          (d) A registration or renewal statement shall state:
             4956          (i) the name of the person;
             4957          (ii) the name in which the business will be transacted if different from that required in

             4958      Subsection (2)(d)(i);
             4959          (iii) the address of the person's principal business office, which may be outside this
             4960      state;
             4961          (iv) the addresses of all offices in this state at which the person conducts the business of
             4962      a check casher;
             4963          (v) if the person conducts the business of a check casher in this state but does not
             4964      maintain an office in this state, a brief description of the manner in which the business is
             4965      conducted;
             4966          (vi) the name and address in this state of a designated agent upon whom service of
             4967      process may be made;
             4968          (vii) disclosure of any injunction, judgment, administrative order, or conviction of any
             4969      crime involving moral turpitude with respect to that person or any officer, director, manager,
             4970      operator, or principal of that person; and
             4971          (viii) any other information required by the rules of the department.
             4972          (e) (i) The commissioner may impose an administrative fine determined under
             4973      Subsection (2)(e)(ii) on a person if:
             4974          (A) the person is required to be registered under this chapter;
             4975          (B) the person fails to register or renew a registration in accordance with this chapter;
             4976          (C) the department notifies the person that the person is in violation of this chapter for
             4977      failure to be registered; and
             4978          (D) the person fails to register within 30 days after the day on which the person receives
             4979      the notice described in Subsection (2)(e)(i)(C).
             4980          (ii) Subject to Subsection (2)(e)(iii), the administrative fine imposed under this section
             4981      is:
             4982          (A) $500 if the person:
             4983          (I) has no office in this state at which the person conducts the business of a check
             4984      casher; or
             4985          (II) has one office in this state at which the person conducts the business of a check

             4986      casher; or
             4987          (B) if the person has two or more offices in this state at which the person conducts the
             4988      business of a check casher, $500 for each office at which the person conducts the business of a
             4989      check casher.
             4990          (iii) The commissioner may reduce or waive a fine imposed under this Subsection (2)(e)
             4991      if the person shows good cause.
             4992          (3) If the information in a registration or renewal statement required under Subsection
             4993      (2) becomes inaccurate after filing, a person is not required to notify the department until:
             4994          (a) that person is required to renew the registration; or
             4995          (b) the department specifically requests earlier notification.
             4996          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             4997      Administrative Rulemaking Act, the department may make rules consistent with this section
             4998      providing for the form, content, and filing of a registration and renewal statement.
             4999          Section 55. Section 7-23-106 is amended to read:
             5000           7-23-106. Enforcement by department -- Rulemaking.
             5001          (1) Subject to the requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             5002      Administrative Procedures Act, the department may:
             5003          (a) receive and act on complaints;
             5004          (b) take action designed to obtain voluntary compliance with this chapter;
             5005          (c) commence administrative or judicial proceedings on its own initiative to enforce
             5006      compliance with this chapter; or
             5007          (d) take action against any check casher that fails to:
             5008          (i) respond to the department, in writing within 30 business days of the day on which
             5009      the check casher receives notice from the department of a complaint filed with the department;
             5010      or
             5011          (ii) submit information as requested by the department.
             5012          (2) The department may:
             5013          (a) counsel persons and groups on their rights and duties under this chapter;

             5014          (b) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             5015      Administrative Rulemaking Act, to:
             5016          (i) restrict or prohibit lending or servicing practices that are misleading, unfair, or
             5017      abusive;
             5018          (ii) promote or assure fair and full disclosure of the terms and conditions of agreements
             5019      and communications between check cashers and customers; or
             5020          (iii) promote or assure uniform application of or to resolve ambiguities in applicable
             5021      state or federal laws or federal regulations; and
             5022          (c) employ hearing examiners, clerks, and other employees and agents as necessary to
             5023      perform the department's duties under this chapter.
             5024          Section 56. Section 7-23-108 is amended to read:
             5025           7-23-108. Penalties.
             5026          (1) A person who violates this chapter or who files materially false information with a
             5027      registration or renewal under Section 7-23-103 is:
             5028          (a) guilty of a class B misdemeanor, except for a violation of:
             5029          (i) Subsection 7-23-105 (1)(f)(i), (ii), or (iii); or
             5030          (ii) rules made under Subsection 7-23-106 (2)(b); and
             5031          (b) subject to revocation of a person's registration under this chapter.
             5032          (2) Subject to [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures
             5033      Act, if the department determines that a person is engaging in the business of cashing checks in
             5034      violation of this chapter, the department may:
             5035          (a) revoke that person's registration under this chapter;
             5036          (b) issue a cease and desist order from committing any further violations;
             5037          (c) prohibit the person from continuing to engage in the business of a check casher;
             5038          (d) impose an administrative fine not to exceed $1,000 per violation, except that:
             5039          (i) a fine imposed under Subsection 7-23-103 (2)(e) shall comply with Subsection
             5040      7-23-103 (2)(e); and
             5041          (ii) the aggregate total of fines imposed under this chapter against a person in a calendar

             5042      year may not exceed $30,000 for that calendar year; or
             5043          (e) take any combination of actions listed under this Subsection (2).
             5044          Section 57. Section 7-24-201 is amended to read:
             5045           7-24-201. Registration -- Rulemaking.
             5046          (1) (a) It is unlawful for a person to extend a title loan in Utah or with a Utah resident
             5047      unless the person:
             5048          (i) registers with the department in accordance with this chapter; and
             5049          (ii) maintains a valid registration.
             5050          (b) It is unlawful for a person to operate a mobile facility in this state to extend a title
             5051      loan.
             5052          (2) (a) A registration and a renewal of a registration expires on April 30 of each year
             5053      unless on or before that date the person renews the registration.
             5054          (b) To register under this section, a person shall:
             5055          (i) pay an original registration fee established under Subsection 7-1-401 (8); and
             5056          (ii) submit a registration statement containing the information described in Subsection
             5057      (2)(d).
             5058          (c) To renew a registration under this section, a person shall:
             5059          (i) pay the annual fee established under Subsection 7-1-401 (5); and
             5060          (ii) submit a renewal statement containing the information described in Subsection
             5061      (2)(d).
             5062          (d) A registration or renewal statement shall state:
             5063          (i) the name of the person;
             5064          (ii) the name in which the business will be transacted if different from that required in
             5065      Subsection (2)(d)(i);
             5066          (iii) the address of the person's principal business office, which may be outside this
             5067      state;
             5068          (iv) the addresses of all offices in this state at which the person extends title loans;
             5069          (v) if the person extends title loans in this state but does not maintain an office in this

             5070      state, a brief description of the manner in which the business is conducted;
             5071          (vi) the name and address in this state of a designated agent upon whom service of
             5072      process may be made;
             5073          (vii) disclosure of any injunction, judgment, administrative order, or conviction of any
             5074      crime involving moral turpitude with respect to that person or any officer, director, manager,
             5075      operator, or principal of that person; and
             5076          (viii) any other information required by the rules of the department.
             5077          (e) (i) The commissioner may impose an administrative fine determined under
             5078      Subsection (2)(e)(ii) on a person if:
             5079          (A) the person is required to be registered under this chapter;
             5080          (B) the person fails to register or renew a registration in accordance with this chapter;
             5081          (C) the department notifies the person that the person is in violation of this chapter for
             5082      failure to be registered; and
             5083          (D) the person fails to register within 30 days after the day on which the person receives
             5084      the notice described in Subsection (2)(e)(i)(C).
             5085          (ii) Subject to Subsection (2)(e)(iii), the administrative fine imposed under this
             5086      Subsection (2)(e) is:
             5087          (A) $500 if the person:
             5088          (I) has no office in this state at which the person extends a title loan; or
             5089          (II) has one office in this state at which the person extends a title loan; or
             5090          (B) if the person has two or more offices in this state at which the person extends a title
             5091      loan, $500 for each office at which the person extends a title loan.
             5092          (iii) The commissioner may reduce or waive a fine imposed under this Subsection (2)(e)
             5093      if the person shows good cause.
             5094          (3) If the information in a registration or renewal statement required under Subsection
             5095      (2) becomes inaccurate after filing, a person is not required to notify the department until:
             5096          (a) that person is required to renew the registration; or
             5097          (b) the department specifically requests earlier notification.

             5098          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             5099      Administrative Rulemaking Act, the department may make rules consistent with this section
             5100      providing for the form, content, and filing of a registration and renewal statement.
             5101          Section 58. Section 7-24-203 is amended to read:
             5102           7-24-203. Disclosure form for title loans.
             5103          (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             5104      Administrative Rulemaking Act, the department shall adopt a disclosure form for title loans that
             5105      complies with this section.
             5106          (2) The department shall specify by rule:
             5107          (a) the information to be provided in the disclosure form including:
             5108          (i) the costs of obtaining a title loan;
             5109          (ii) the consequences of defaulting on a title loan;
             5110          (iii) generally available alternatives to a title loan; and
             5111          (iv) methods of obtaining credit counseling or other financial advice;
             5112          (b) the type size of the disclosure form; and
             5113          (c) the manner in which a title lender shall conspicuously provide the disclosure form to
             5114      a person seeking a title loan.
             5115          Section 59. Section 7-24-301 is amended to read:
             5116           7-24-301. Enforcement by department -- Rulemaking.
             5117          (1) Subject to the requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             5118      Administrative Procedures Act, the department may:
             5119          (a) receive and act on complaints;
             5120          (b) take action designed to obtain voluntary compliance with this chapter; or
             5121          (c) commence administrative or judicial proceedings on its own initiative to enforce
             5122      compliance with this chapter.
             5123          (2) The department may:
             5124          (a) counsel persons and groups on their rights and duties under this chapter;
             5125          (b) make rules to:

             5126          (i) restrict or prohibit lending or servicing practices that are misleading, unfair, or
             5127      abusive;
             5128          (ii) promote or assure fair and full disclosure of the terms and conditions of agreements
             5129      and communications between title lenders and customers; or
             5130          (iii) promote or assure uniform application of or to resolve ambiguities in applicable
             5131      state or federal laws or federal regulations; and
             5132          (c) employ hearing examiners, clerks, and other employees and agents as necessary to
             5133      perform the department's duties under this chapter.
             5134          Section 60. Section 7-24-303 is amended to read:
             5135           7-24-303. Penalties.
             5136          (1) A person who violates this chapter or who files materially false information with a
             5137      registration or renewal under Section 7-24-201 is:
             5138          (a) guilty of a class B misdemeanor except for a violation of:
             5139          (i) Subsection 7-24-202 (1)(e)(i), (ii), or (iii); or
             5140          (ii) rules made under Subsection 7-24-301 (2)(b); and
             5141          (b) subject to revocation of a person's registration under this chapter.
             5142          (2) Subject to [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures
             5143      Act, if the department determines that a person is extending title loans in violation of this
             5144      chapter, the department may:
             5145          (a) revoke that person's registration under this chapter;
             5146          (b) issue a cease and desist order from committing any further violations;
             5147          (c) prohibit the person from continuing to extend title loans;
             5148          (d) impose an administrative fine not to exceed $1,000 per violation, except that:
             5149          (i) a fine imposed under Subsection 7-24-201 (2)(e) shall comply with Subsection
             5150      7-24-201 (2)(e); and
             5151          (ii) the aggregate total of fines imposed under this chapter against a person in a calendar
             5152      year may not exceed $30,000 for that calendar year; or
             5153          (e) take any combination of actions listed under this Subsection (2).

             5154          (3) A person is not subject to the penalties under this section for a violation of this
             5155      chapter that was not willful or intentional, including a violation resulting from a clerical error.
             5156          Section 61. Section 9-1-203 is amended to read:
             5157           9-1-203. Compliance with Administrative Procedures Act.
             5158          The department and all of its divisions, boards, offices, bureaus, commissions, and other
             5159      entities shall comply with the procedures and requirements of [Title 63, Chapter 46b] Title 63G,
             5160      Chapter 4, Administrative Procedures Act, in their adjudicative proceedings.
             5161          Section 62. Section 9-1-809 is amended to read:
             5162           9-1-809. Commission duties.
             5163          (1) The commission shall, in the performance of its tasks and functions:
             5164          (a) ensure that its funding decisions meet all federal and state statutory requirements;
             5165          (b) recommend innovative, creative, statewide service programs to increase volunteer
             5166      participation in all age groups and community-based problem-solving among diverse
             5167      participants;
             5168          (c) develop and implement a centralized, organized system of obtaining information and
             5169      technical support concerning volunteerism and community service recruitment, projects, training
             5170      methods, materials, and activities throughout the state and share such information and support
             5171      upon request;
             5172          (d) promote strong interagency collaboration as an avenue for maximizing resources
             5173      and providing that model on the state level;
             5174          (e) provide public recognition and support of individual volunteer efforts and successful
             5175      or promising private sector initiatives and public/private partnerships that address community
             5176      needs;
             5177          (f) stimulate increased community awareness of the impact of volunteer services in the
             5178      state;
             5179          (g) utilize local, state, and, subject to [Title 63, Chapter 38e] Title 63J, Chapter 5,
             5180      Federal Funds Procedures, federal resources to reinforce, expand, and initiate quality service
             5181      programs;

             5182          (h) assist in the planning and implementation of volunteer programs;
             5183          (i) serve as the state's liaison and voice to appropriate national and state organizations
             5184      that support its mission;
             5185          (j) develop a three-year comprehensive state and community service plan and establish
             5186      state priorities;
             5187          (k) preselect programs and prepare applications to the corporation pursuant to the act;
             5188          (l) prepare service learning applications;
             5189          (m) administer the grants program and oversee and monitor the performance and
             5190      progress of funded programs;
             5191          (n) implement comprehensive, nonduplicative evaluation and monitoring systems;
             5192          (o) provide technical assistance to local nonprofit organizations and other entities;
             5193          (p) assist in the development of programs established in the act;
             5194          (q) develop mechanisms for recruitment and placement of people interested in
             5195      participating in national service programs;
             5196          (r) assist in the provision of health care and child care benefits to participants under the
             5197      act;
             5198          (s) make priority program recommendations to the corporation;
             5199          (t) coordinate its activities with the activities of other state agencies that administer
             5200      federal block grants; and
             5201          (u) coordinate its activities with the activities of other volunteer service programs.
             5202          (2) The commission may not directly operate or run any national service program
             5203      receiving financial assistance, in any form, from the corporation.
             5204          (3) The commission may, subject to [Title 63, Chapter 38e] Title 63J, Chapter 5,
             5205      Federal Funds Procedures, receive and accept federal funds, and may receive and accept private
             5206      gifts, donations, or funds from any source. All moneys shall be deposited with the state and
             5207      shall be continuously available to the commission to carry out the purposes of this part.
             5208          (4) (a) The commission shall establish a community volunteer training program to assist
             5209      the state's school districts in implementing the literacy programs required under Section

             5210      53A-1-801 .
             5211          (b) The program shall focus on:
             5212          (i) recruitment of volunteers to assist public schools in reading improvement programs;
             5213          (ii) providing for the training of volunteers recruited under Subsection (4)(b)(i), which
             5214      may include training in teaching phonetic decoding skills and phonemic awareness, to assist
             5215      public schools and community based, not-for-profit literacy programs in accomplishing the
             5216      literacy goals established in Section 53A-1-801 ;
             5217          (iii) providing grants to entities whose primary purpose is to support literacy by
             5218      working with either school districts or individual schools to accomplish their literacy goals; and
             5219          (iv) providing materials and supplies which may be used by the commission or the
             5220      public schools or both to help public education accomplish its literacy goals under Section
             5221      53A-1-801 .
             5222          (c) The commission shall coordinate its activities under this Subsection (4) with other
             5223      state and community entities engaged in child literacy programs.
             5224          (d) (i) The commission shall make an annual report to the State Board of Education on:
             5225          (A) how public monies were spent on the programs authorized under this Subsection
             5226      (4); and
             5227          (B) the number of volunteers recruited for and participating in the program.
             5228          (ii) The commission shall make its report by July 1, with the first report required by July
             5229      1, 2000.
             5230          Section 63. Section 9-3-308 is amended to read:
             5231           9-3-308. Relation to certain acts.
             5232          (1) The authority is exempt from:
             5233          (a) Title 51, Chapter 5, Funds Consolidation Act;
             5234          (b) [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures Act;
             5235          (c) [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code;
             5236          (d) Title 63A, Chapter 1, Utah Administrative Services Code; and
             5237          (e) Title 67, Chapter 19, Utah State Personnel Management Act.

             5238          (2) The authority shall be subject to audit by the state auditor pursuant to Title 67,
             5239      Chapter 3, and by the legislative auditor general pursuant to Section 36-12-15 .
             5240          Section 64. Section 9-3-410 is amended to read:
             5241           9-3-410. Relation to certain acts.
             5242          (1) The authority is exempt from:
             5243          (a) Title 51, Chapter 5, Funds Consolidation Act;
             5244          (b) [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures Act;
             5245          (c) [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code;
             5246          (d) Title 63A, Chapter 1, Utah Administrative Services Code; and
             5247          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             5248          (2) The authority shall be subject to audit by:
             5249          (a) the state auditor pursuant to Title 67, Chapter 3, Auditor; and
             5250          (b) the legislative auditor general pursuant to Section 36-12-15 .
             5251          (3) The authority shall annually report to the Retirement and Independent Entities
             5252      Committee created under Section 63E-1-201 concerning the authority's implementation of this
             5253      part.
             5254          Section 65. Section 9-4-202 is amended to read:
             5255           9-4-202. Powers and duties of division.
             5256          (1) The division shall:
             5257          (a) assist local governments and citizens in the planning, development, and maintenance
             5258      of necessary public infrastructure and services;
             5259          (b) cooperate with, and provide technical assistance to, counties, cities, towns, regional
             5260      planning commissions, area-wide clearinghouses, zoning commissions, parks or recreation
             5261      boards, community development groups, community action agencies, and other agencies
             5262      created for the purpose of aiding and encouraging an orderly, productive, and coordinated
             5263      development of the state and its political subdivisions;
             5264          (c) assist the governor in coordinating the activities of state agencies which have an
             5265      impact on the solution of community development problems and the implementation of

             5266      community plans;
             5267          (d) serve as a clearinghouse for information, data, and other materials which may be
             5268      helpful to local governments in discharging their responsibilities and provide information on
             5269      available federal and state financial and technical assistance;
             5270          (e) carry out continuing studies and analyses of the problems faced by communities
             5271      within the state and develop such recommendations for administrative or legislative action as
             5272      appear necessary;
             5273          (f) assist in funding affordable housing and addressing problems of homelessness;
             5274          (g) support economic development activities through grants, loans, and direct programs
             5275      financial assistance;
             5276          (h) certify project funding at the local level in conformance with federal, state, and other
             5277      requirements;
             5278          (i) utilize the capabilities and facilities of public and private universities and colleges
             5279      within the state in carrying out its functions;
             5280          (j) assist and support local governments, community action agencies, and citizens in the
             5281      planning, development, and maintenance of home weatherization, energy efficiency, and
             5282      antipoverty activities; and
             5283          (k) assist and support volunteer efforts in the state.
             5284          (2) The division may:
             5285          (a) by following the procedures and requirements of [Title 63, Chapter 38e] Title 63J,
             5286      Chapter 5, Federal Funds Procedures, seek federal grants, loans, or participation in federal
             5287      programs;
             5288          (b) if any federal program requires the expenditure of state funds as a condition to
             5289      participation by the state in any fund, property, or service, with the governor's approval, expend
             5290      whatever funds are necessary out of the money provided by the Legislature for the use of the
             5291      department;
             5292          (c) in accordance with Part 13, Domestic Violence Shelters, assist in developing,
             5293      constructing, and improving shelters for victims of domestic violence, as described in Section

             5294      77-36-1 , through loans and grants to nonprofit and governmental entities; and
             5295          (d) assist, when requested by a county or municipality, in the development of accessible
             5296      housing.
             5297          (3) (a) The division is recognized as an issuing authority as defined in Subsection
             5298      9-4-502 (7), entitled to issue bonds from the Small Issue Bond Account created in Subsection
             5299      9-4-506 (1)(c) as a part of the state's private activity bond volume cap authorized by the Internal
             5300      Revenue Code of 1986 and computed under Section 146 of the code.
             5301          (b) To promote and encourage the issuance of bonds from the Small Issue Bond
             5302      Account for manufacturing projects, the division may:
             5303          (i) develop campaigns and materials that inform qualified small manufacturing
             5304      businesses about the existence of the program and the application process;
             5305          (ii) assist small businesses in applying for and qualifying for these bonds; or
             5306          (iii) develop strategies to lower the cost to small businesses of applying for and
             5307      qualifying for these bonds, including making arrangements with financial advisors, underwriters,
             5308      bond counsel, and other professionals involved in the issuance process to provide their services
             5309      at a reduced rate when the division can provide them with a high volume of applicants or issues.
             5310          Section 66. Section 9-4-306 is amended to read:
             5311           9-4-306. Powers.
             5312          The impact board may:
             5313          (1) appoint, where it considers this appropriate, a hearing examiner or administrative
             5314      law judge with authority to conduct any hearings, make determinations, and enter appropriate
             5315      findings of facts, conclusions of law, and orders under authority of the impact board under
             5316      Sections 11-13-306 and 11-13-307 ;
             5317          (2) appoint additional professional and administrative staff necessary to effectuate
             5318      Sections 11-13-306 and 11-13-307 ;
             5319          (3) make independent studies regarding matters submitted to it under Sections
             5320      11-13-306 and 11-13-307 that the impact board, in its discretion, considers necessary, which
             5321      studies shall be made a part of the record and may be considered in the impact board's

             5322      determination; and
             5323          (4) make rules under [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             5324      Rulemaking Act it considers necessary to perform its responsibilities under Sections 11-13-306
             5325      and 11-13-307 .
             5326          Section 67. Section 9-4-307 is amended to read:
             5327           9-4-307. Impact fund administered by impact board -- Eligibility for assistance --
             5328      Review by board -- Administration costs -- Annual report.
             5329          (1) (a) The impact board shall:
             5330          (i) administer the impact fund in a manner that will keep a portion of the impact fund
             5331      revolving;
             5332          (ii) determine provisions for repayment of loans; and
             5333          (iii) establish criteria for determining eligibility for assistance under this part.
             5334          (b) (i) Criteria for awarding loans or grants made from funds described in Subsection
             5335      9-4-303 (5) shall be consistent with Subsection 9-4-303 (5).
             5336          (ii) Criteria for awarding grants made from funds described in Subsection 9-4-303
             5337      (2)(c) shall be consistent with Subsection 9-4-303 (6).
             5338          (c) In order to receive assistance under this part, subdivisions and interlocal agencies
             5339      shall submit formal applications containing the information that the impact board requires.
             5340          (2) In determining eligibility for loans and grants under this part, the impact board shall
             5341      consider the following:
             5342          (a) the subdivision's or interlocal agency's current mineral lease production;
             5343          (b) the feasibility of the actual development of a resource that may impact the
             5344      subdivision or interlocal agency directly or indirectly;
             5345          (c) current taxes being paid by the subdivision's or interlocal agency's residents;
             5346          (d) the borrowing capacity of the subdivision or interlocal agency, its ability and
             5347      willingness to sell bonds or other securities in the open market, and its current and authorized
             5348      indebtedness;
             5349          (e) all possible additional sources of state and local revenue, including utility user

             5350      charges;
             5351          (f) the availability of federal assistance funds;
             5352          (g) probable growth of population due to actual or prospective natural resource
             5353      development in an area;
             5354          (h) existing public facilities and services;
             5355          (i) the extent of the expected direct or indirect impact upon public facilities and services
             5356      of the actual or prospective natural resource development in an area; and
             5357          (j) the extent of industry participation in an impact alleviation plan, either as specified in
             5358      [Title 63, Chapter 51] Title 63M, Chapter 5, Resource Development, or otherwise.
             5359          (3) The impact board may not fund any education project that could otherwise have
             5360      reasonably been funded by a school district through a program of annual budgeting, capital
             5361      budgeting, bonded indebtedness, or special assessments.
             5362          (4) The impact board may restructure all or part of the agency's or subdivision's liability
             5363      to repay loans for extenuating circumstances.
             5364          (5) The impact board shall:
             5365          (a) review the proposed uses of the impact fund for loans or grants before approving
             5366      them and may condition its approval on whatever assurances that the impact board considers to
             5367      be necessary to ensure that the proceeds of the loan or grant will be used in accordance with the
             5368      Leasing Act and this part; and
             5369          (b) ensure that each loan specifies the terms for repayment and is evidenced by general
             5370      obligation, special assessment, or revenue bonds, notes, or other obligations of the appropriate
             5371      subdivision or interlocal agency issued to the impact board under whatever authority for the
             5372      issuance of those bonds, notes, or obligations exists at the time of the loan.
             5373          (6) The impact board shall allocate from the impact fund to the department those funds
             5374      that are appropriated by the Legislature for the administration of the impact fund, but this
             5375      amount may not exceed 2% of the annual receipts to the impact fund.
             5376          (7) The department shall make an annual report to the Legislature concerning the
             5377      number and type of loans and grants made as well as a list of subdivisions and interlocal

             5378      agencies that received this assistance.
             5379          Section 68. Section 9-4-509 is amended to read:
             5380           9-4-509. Procedures -- Adjudicative proceedings.
             5381          The board of review shall comply with the procedures and requirements of [Title 63,
             5382      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
             5383      proceedings.
             5384          Section 69. Section 9-4-704 is amended to read:
             5385           9-4-704. Distribution of fund moneys.
             5386          (1) The executive director shall:
             5387          (a) make grants and loans from the fund for any of the activities authorized by Section
             5388      9-4-705 , as directed by the board;
             5389          (b) establish the criteria with the approval of the board by which loans and grants will
             5390      be made; and
             5391          (c) determine with the approval of the board the order in which projects will be funded.
             5392          (2) The executive director shall distribute, as directed by the board, any federal moneys
             5393      contained in the fund according to the procedures, conditions, and restrictions placed upon the
             5394      use of those moneys by the federal government.
             5395          (3) (a) The executive director shall distribute, as directed by the board, any funds
             5396      received pursuant to Section 17C-1-412 to pay the costs of providing income targeted housing
             5397      within the community that created the community development and renewal agency under Title
             5398      17C, Limited Purpose Local Government Entities - Community Development and Renewal
             5399      Agencies.
             5400          (b) As used in Subsection (3)(a):
             5401          (i) "Community" has the meaning as defined in Section 17C-1-102 .
             5402          (ii) "Income targeted housing" has the meaning as defined in Section 17C-1-102 .
             5403          (4) Except federal money and money received under Section 17C-1-412 , the executive
             5404      director shall distribute, as directed by the board, all other moneys from the fund according to
             5405      the following requirements:

             5406          (a) Not less than 30% of all fund moneys shall be distributed to rural areas of the state.
             5407          (b) At least 50% of the moneys in the fund shall be distributed as loans to be repaid to
             5408      the fund by the entity receiving them.
             5409          (i) (A) Of the fund moneys distributed as loans, at least 50% shall be distributed to
             5410      benefit persons whose annual income is at or below 50% of the median family income for the
             5411      state.
             5412          (B) The remaining loan moneys shall be distributed to benefit persons whose annual
             5413      income is at or below 80% of the median family income for the state.
             5414          (ii) The executive director or [his] the executive director's designee shall lend moneys in
             5415      accordance with this Subsection (4) at a rate based upon the borrower's ability to pay.
             5416          (c) Any fund moneys not distributed as loans shall be distributed as grants.
             5417          (i) At least 90% of the fund moneys distributed as grants shall be distributed to benefit
             5418      persons whose annual income is at or below 50% of the median family income for the state.
             5419          (ii) The remaining fund moneys distributed as grants may be used by the executive
             5420      director to obtain federal matching funds or for other uses consistent with the intent of this part,
             5421      including the payment of reasonable loan servicing costs, but no more than 3% of the revenues
             5422      of the fund may be used to offset other department or board administrative expenses.
             5423          (5) The executive director may with the approval of the board:
             5424          (a) enact rules to establish procedures for the grant and loan process by following the
             5425      procedures and requirements of [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             5426      Administrative Rulemaking Act; and
             5427          (b) service or contract, pursuant to [Title 63, Chapter 56] Title 63G, Chapter 6, Utah
             5428      Procurement Code, for the servicing of loans made by the fund.
             5429          Section 70. Section 9-4-906 is amended to read:
             5430           9-4-906. Relation to certain acts.
             5431          (1) The corporation is exempt from:
             5432          (a) Title 51, Chapter 5, Funds Consolidation Act;
             5433          (b) Title 51, Chapter 7, State Money Management Act;

             5434          (c) [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures Act;
             5435          (d) [Title 63, Chapter 38a] Title 63J, Chapter 2, Revenue Procedures and Control Act;
             5436          (e) [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code;
             5437          (f) Title 63A, Utah Administrative Services Code; and
             5438          (g) Title 67, Chapter 19, Utah State Personnel Management Act.
             5439          (2) The corporation shall comply with:
             5440          (a) Title 52, Chapter 4, Open and Public Meetings Act; and
             5441          (b) [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             5442      Management Act.
             5443          Section 71. Section 9-4-917 is amended to read:
             5444           9-4-917. Notes, bonds, other obligations -- Not debt liability -- Expenses payable
             5445      from funds provided -- Corporation without authority to incur liability on behalf of state
             5446      -- Relationship to Governmental Immunity Act of Utah.
             5447          (1) (a) Notes, bonds, and other obligations issued under this part do not constitute a
             5448      debt or liability of this state or of any county, city, town, village, school district, or any other
             5449      political subdivision of the state, nor shall the notes, bonds, or other obligations constitute the
             5450      loaning of credit of the state or of any county, city, town, township, district, or any other
             5451      political subdivision of the state, nor may the notes, bonds, or other obligations be payable from
             5452      funds other than those of the corporation.
             5453          (b) All notes, bonds, or other obligations shall contain on their face a statement to the
             5454      effect that:
             5455          (i) the corporation is obligated to pay the note, bond, or obligation solely from the
             5456      revenues or other funds of the corporation;
             5457          (ii) neither this state nor any political subdivision of it is obligated to pay the note, bond,
             5458      or obligation; and
             5459          (iii) neither the faith and credit nor the taxing power of this state or any political
             5460      subdivision of it is pledged to the payment of principal, or redemption price of, or the interest
             5461      on the notes, bonds, or other obligations.

             5462          (2) All expenses incurred in carrying out this act shall be payable solely from funds
             5463      provided under this part, and nothing in this part shall be construed to authorize the corporation
             5464      to incur indebtedness or liability on behalf of or payable by this state or any political subdivision
             5465      of it.
             5466          (3) (a) [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of
             5467      Utah, shall apply to the corporation.
             5468          (b) Notwithstanding Subsection (3)(a), no claim may be brought against the state, any
             5469      public official or employee of the state, another public entity, or any public official or employee
             5470      of another public entity, based on or arising from:
             5471          (i) any failure or alleged failure to fulfill a contractual obligation of the corporation;
             5472          (ii) any act or failure to act of the corporation or any of its trustees, officers, employees,
             5473      agents, or representatives; or
             5474          (iii) any failure of the corporation to comply with the requirements of any law or
             5475      regulation.
             5476          (c) The provisions of Subsection (3)(b) do not apply to a claim of a current or former
             5477      officer or employee of the corporation for the retirement or insurance benefits.
             5478          Section 72. Section 9-4-1103 is amended to read:
             5479           9-4-1103. Utah State Fair Corporation -- Legal status -- Powers.
             5480          (1) There is created an independent public nonprofit corporation known as the "Utah
             5481      State Fair Corporation."
             5482          (2) The board shall file articles of incorporation for the corporation with the Division of
             5483      Corporations and Commercial Code.
             5484          (3) The corporation shall, subject to this part, have all powers and authority permitted
             5485      nonprofit corporations by law.
             5486          (4) The corporation shall, subject to approval of the board:
             5487          (a) have general management, supervision, and control over all activities relating to the
             5488      state fair and have charge of all state expositions except as otherwise provided by statute;
             5489          (b) for public entertainment, displays, and exhibits or similar events:

             5490          (i) provide, sponsor, or arrange the events;
             5491          (ii) publicize and promote the events; and
             5492          (iii) secure funds to cover the cost of the exhibits from:
             5493          (A) private contributions;
             5494          (B) public appropriations;
             5495          (C) admission charges; and
             5496          (D) other lawful means;
             5497          (c) establish the time, place, and purpose of state expositions; and
             5498          (d) acquire and designate exposition sites.
             5499          (5) (a) The corporation shall:
             5500          (i) use generally accepted accounting principals in accounting for its assets, liabilities,
             5501      and operations;
             5502          (ii) seek corporate sponsorships for the state fair park and for individual buildings or
             5503      facilities within the fair park;
             5504          (iii) work with county and municipal governments, the Salt Lake Convention and
             5505      Visitor's Bureau, the Utah Travel Council, and other entities to develop and promote
             5506      expositions and the use of the state fair park;
             5507          (iv) develop and maintain a marketing program to promote expositions and the use of
             5508      the state fair park;
             5509          (v) in cooperation with the Division of Facilities Construction and Management,
             5510      maintain the physical appearance and structural integrity of the state fair park and the buildings
             5511      located at the state fair park;
             5512          (vi) hold an annual exhibition that:
             5513          (A) is called the state fair or a similar name;
             5514          (B) includes expositions of livestock, poultry, agricultural, domestic science,
             5515      horticultural, floricultural, mineral, and industrial products, manufactured articles, and domestic
             5516      animals that, in the corporation's opinion will best stimulate agricultural, industrial, artistic, and
             5517      educational pursuits and the sharing of talents among the people of Utah;

             5518          (C) includes the award of premiums for the best specimens of the exhibited articles and
             5519      animals;
             5520          (D) permits competition by livestock exhibited by citizens of other states and territories
             5521      of the United States; and
             5522          (E) is arranged according to plans approved by the board;
             5523          (vii) fix the conditions of entry to the exposition described in Subsection (5)(a)(vi); and
             5524          (viii) publish a list of premiums that will be awarded at the exhibition described in
             5525      Subsection (5)(a)(vi) for the best specimens of exhibited articles and animals.
             5526          (b) In addition to the state fair to be held in accordance with Subsection (5)(a)(vi), the
             5527      corporation may hold other exhibitions of livestock, poultry, agricultural, domestic science,
             5528      horticultural, floricultural, mineral, and industrial products, manufactured articles, and domestic
             5529      animals that, in its opinion, will best stimulate agricultural, industrial, artistic, and educational
             5530      pursuits and the sharing of talents among the people of Utah.
             5531          (6) The corporation may:
             5532          (a) employ advisers, consultants, and agents, including financial experts and
             5533      independent legal counsel, and fix their compensation;
             5534          (b) procure insurance against any loss in connection with its property and other assets,
             5535      including mortgage loans;
             5536          (c) receive and accept aid or contributions of money, property, labor, or other things of
             5537      value from any source, including any grants or appropriations from any department, agency, or
             5538      instrumentality of the United States or Utah;
             5539          (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
             5540      purposes of the corporation, subject to the conditions, if any, upon which the aid and
             5541      contributions were made;
             5542          (e) enter into management agreements with any person or entity for the performance of
             5543      its functions or powers;
             5544          (f) establish whatever accounts and procedures as necessary to budget, receive, and
             5545      disburse, account for, and audit all funds received, appropriated, or generated;

             5546          (g) enter into agreements for the leasing of any of the facilities at the state fair park, if
             5547      approved by the board; and
             5548          (h) sponsor events as approved by the board.
             5549          (7) (a) Except as provided in Subsection (7)(c), as an independent agency of Utah, the
             5550      corporation is exempt from:
             5551          (i) [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures Act;
             5552          (ii) Title 51, Chapter 7, State Money Management Act;
             5553          (iii) Title 63A, Utah Administrative Services Code;
             5554          (iv) Title 51, Chapter 5, Funds Consolidation Act;
             5555          (v) [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code; and
             5556          (vi) Title 67, Chapter 19, Utah State Personnel Management Act.
             5557          (b) The board shall adopt policies parallel to and consistent with:
             5558          (i) [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures Act;
             5559          (ii) Title 51, Chapter 7, State Money Management Act;
             5560          (iii) Title 63A, Utah Administrative Services Code;
             5561          (iv) Title 51, Chapter 5, Funds Consolidation Act; and
             5562          (v) [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code.
             5563          (c) The corporation shall comply with the legislative approval requirements for new
             5564      facilities established in Subsection 63A-5-104 (3).
             5565          Section 73. Section 9-4-1301 is amended to read:
             5566           9-4-1301. Assistance to domestic violence shelters -- Rulemaking authority.
             5567          (1) The Division of Child and Family Services within the Department of Human
             5568      Services has statutory responsibility to provide violence services, including temporary shelter, to
             5569      victims of domestic violence pursuant to the provisions of Sections 62A-4a-101 and
             5570      62A-4a-105 . The division may assist the Division of Child and Family Services by providing for
             5571      the development, construction, and improvement of shelters for victims of domestic violence, as
             5572      described in Section 77-36-1 , through loans and grants to nonprofit and governmental entities.
             5573          (2) No later than July 1, 2001, the division shall, in accordance with [Title 63, Chapter

             5574      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules establishing:
             5575          (a) procedures for applying for loans and grants;
             5576          (b) criteria for awarding loans and grants; and
             5577          (c) requirements for the repayment of loans.
             5578          (3) The division may appoint an advisory panel to:
             5579          (a) assist the division in developing rules under Subsection (2); and
             5580          (b) recommend how available funds should be disbursed.
             5581          (4) The division shall make loans and grants with monies specifically appropriated for
             5582      that purpose.
             5583          (5) The division shall coordinate with the Division of Child and Family Services in
             5584      complying with the provisions of this section.
             5585          Section 74. Section 9-4-1404 is amended to read:
             5586           9-4-1404. Duties of office.
             5587          The office shall:
             5588          (1) coordinate state activities designed to reduce poverty;
             5589          (2) encourage entities in the private sector to participate in efforts to ameliorate poverty
             5590      in the community;
             5591          (3) cooperate with agencies of local, state, and federal government in reducing poverty
             5592      and implementing community, social, and economic programs;
             5593          (4) receive and expend funds for the purposes outlined in this part;
             5594          (5) enter into contracts with and award grants to public and private nonprofit agencies
             5595      and organizations;
             5596          (6) develop a state plan based on needs identified by community action agencies and
             5597      community action statewide organizations;
             5598          (7) designate community action agencies to receive funds through the Community
             5599      Services Block Grant program;
             5600          (8) fund community action agencies and community action statewide organizations;
             5601          (9) make rules in conjunction with the division pursuant to [Title 63, Chapter 46a] Title

             5602      63G, Chapter 3, Utah Administrative Rulemaking Act, to carry out the purposes of this part;
             5603          (10) provide assistance to local governments or private organizations for the purpose of
             5604      establishing and operating a community action agency;
             5605          (11) provide technical assistance to community action agencies to improve program
             5606      planning, program development, administration, and the mobilization of public and private
             5607      resources;
             5608          (12) convene public meetings which provide citizens the opportunity to comment on
             5609      public policies and programs to reduce poverty;
             5610          (13) advise the governor and Legislature of the nature and extent of poverty in the state
             5611      and make recommendations concerning changes in state and federal policies and programs;
             5612          (14) encourage Utah's nonprofit humanitarian assistance agencies serving low-income
             5613      persons by facilitating, coordinating, training, partnerships, and providing technical assistance in
             5614      addressing Utah's low-income persons by enhancing management, improving service and
             5615      program delivery, and preserving flexibility and local initiative;
             5616          (15) develop and implement management goals which fulfill the Community Services
             5617      Block Grant mission, state requirements, and the mandates of federal legislation;
             5618          (16) prepare a Community Services Block Grant plan which contains provisions
             5619      describing how the state will carry out the assurances of the Community Services Block Grant
             5620      Act;
             5621          (17) act as the state agency responsible for the evaluation and improvement of
             5622      emergency food assistance services in the state;
             5623          (18) monitor the impact of social policies on the emergency food network;
             5624          (19) provide training and technical assistance to all grantees to assist them in program
             5625      development and implementation, compliance with state and federal regulations, and reporting
             5626      and management information systems;
             5627          (20) certify, monitor, and decertify qualified emergency food agencies for purposes of
             5628      the sales tax refund under Section 59-12-902 ; and
             5629          (21) administer other programs to alleviate poverty assigned to the office.

             5630          Section 75. Section 9-4-1406 is amended to read:
             5631           9-4-1406. Evaluations -- Reports.
             5632          (1) The office shall periodically evaluate grantees of Community Services Block Grant
             5633      funds as established by rule by the division in accordance with [Title 63, Chapter 46a] Title
             5634      63G, Chapter 3, Utah Administrative Rulemaking Act.
             5635          (2) Grantees of Community Services Block Grant funds shall submit to the office a
             5636      year-end report, covering a reporting period consistent with the federal fiscal year, which
             5637      provides an account of all programs operated with or supported by Community Services Block
             5638      Grant funds, including:
             5639          (a) types of programs operated by that grantee;
             5640          (b) the program outcomes;
             5641          (c) the number of persons served;
             5642          (d) the number of times service was given; and
             5643          (e) an accounting of all Community Services Block Grant funds expended by the
             5644      grantee.
             5645          (3) The office shall report annually to the appropriate legislative appropriations
             5646      subcommittee on the distribution and expenditure of Community Services Block Grant funds.
             5647          Section 76. Section 9-6-205 is amended to read:
             5648           9-6-205. Board powers and duties.
             5649          (1) The board may:
             5650          (a) make, amend, or repeal rules for the conduct of its business in governing the
             5651      institute and the division in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             5652      Administrative Rulemaking Act;
             5653          (b) receive gifts, bequests, and property; and
             5654          (c) issue certificates and offer and confer prizes, certificates, and awards for works of
             5655      art and achievement in the arts.
             5656          (2) The board shall make policy for the institute and for the division.
             5657          Section 77. Section 9-6-504 is amended to read:

             5658           9-6-504. Duties of board.
             5659          The board shall:
             5660          (1) allocate moneys from the state fund to the endowment fund created by a qualifying
             5661      organization under Section 9-6-503 ;
             5662          (2) determine the eligibility of each qualifying organization to receive moneys from the
             5663      state fund into the endowment fund of the qualifying organization and be the final arbiter of
             5664      eligibility;
             5665          (3) determine the matching amount each qualifying organization must raise in order to
             5666      qualify to receive moneys from the state fund;
             5667          (4) establish a date by which each qualifying organization must provide its matching
             5668      funds;
             5669          (5) verify that matching funds have been provided by each qualifying organization by
             5670      the date determined in Subsection (4); and
             5671          (6) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             5672      Administrative Rulemaking Act, establish criteria by rule not otherwise prescribed in this
             5673      chapter for determining the eligibility of qualifying organizations to receive moneys from the
             5674      state fund.
             5675          Section 78. Section 9-6-605 is amended to read:
             5676           9-6-605. Board -- Duties.
             5677          (1) The board is the policymaking body for the office.
             5678          (2) The board shall, in consultation with the director of the office:
             5679          (a) set policies and, in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             5680      Utah Administrative Rulemaking Act, make rules governing:
             5681          (i) the office grants program; and
             5682          (ii) the awarding of grants to assist Utah's eligible museums; and
             5683          (b) set eligibility guidelines for grants administered through the office.
             5684          Section 79. Section 9-7-213 is amended to read:
             5685           9-7-213. Rulemaking.

             5686          The division may make rules in accordance with [Title 63, Chapter 46a] Title 63G,
             5687      Chapter 3, Utah Administrative Rulemaking Act, necessary to implement and administer the
             5688      provisions of this chapter including:
             5689          (1) standards which must be met by libraries to obtain and retain a designation as a
             5690      depository library;
             5691          (2) the method by which grants are made to individual libraries, but not including
             5692      appropriations made directly to any other agency or institution;
             5693          (3) standards for the certification of public librarians; and
             5694          (4) standards for the public library online access policy required in Section 9-7-215 .
             5695          Section 80. Section 9-7-302 is amended to read:
             5696           9-7-302. Public access -- Rules.
             5697          (1) The public shall have access to the State Law Library.
             5698          (2) The board of control may make rules in accordance with [Title 63, Chapter 46a]
             5699      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and not inconsistent with the
             5700      provisions of this part.
             5701          Section 81. Section 9-8-203 is amended to read:
             5702           9-8-203. Division duties.
             5703          (1) The division shall:
             5704          (a) stimulate research, study, and activity in the field of Utah history and related history;
             5705          (b) maintain a specialized history library;
             5706          (c) mark and preserve historic sites, areas, and remains;
             5707          (d) collect, preserve, and administer historical records relating to the history of Utah;
             5708          (e) administer, collect, preserve, document, interpret, develop, and exhibit historical
             5709      artifacts, documentary materials, and other objects relating to the history of Utah for
             5710      educational and cultural purposes;
             5711          (f) edit and publish historical records;
             5712          (g) cooperate with local, state, and federal agencies and schools and museums to
             5713      provide coordinated and organized activities for the collection, documentation, preservation,

             5714      interpretation, and exhibition of historical artifacts related to the state;
             5715          (h) provide grants and technical assistance as necessary and appropriate; and
             5716          (i) comply with the procedures and requirements of [Title 63, Chapter 46b] Title 63G,
             5717      Chapter 4, Administrative Procedures Act, in its adjudicative proceedings.
             5718          (2) The division may acquire or produce reproductions of historical artifacts and
             5719      documentary materials for educational and cultural use.
             5720          (3) To promote an appreciation of Utah history and to increase heritage tourism in the
             5721      state, the division shall:
             5722          (a) (i) create and maintain an inventory of all historic markers and monuments that are
             5723      accessible to the public throughout the state;
             5724          (ii) enter into cooperative agreements with other groups and organizations to collect
             5725      and maintain the information needed for the inventory;
             5726          (iii) encourage the use of volunteers to help collect the information and to maintain the
             5727      inventory;
             5728          (iv) publicize the information in the inventory in a variety of forms and media, especially
             5729      to encourage Utah citizens and tourists to visit the markers and monuments;
             5730          (v) work with public and private landowners, heritage organizations, and volunteer
             5731      groups to help maintain, repair, and landscape around the markers and monuments; and
             5732          (vi) make the inventory available upon request to all other public and private history
             5733      and heritage organizations, tourism organizations and businesses, and others;
             5734          (b) (i) create and maintain an inventory of all active and inactive cemeteries throughout
             5735      the state;
             5736          (ii) enter into cooperative agreements with local governments and other groups and
             5737      organizations to collect and maintain the information needed for the inventory;
             5738          (iii) encourage the use of volunteers to help collect the information and to maintain the
             5739      inventory;
             5740          (iv) encourage cemetery owners to create and maintain geographic information systems
             5741      to record burial sites and encourage volunteers to do so for inactive and small historic

             5742      cemeteries;
             5743          (v) publicize the information in the inventory in a variety of forms and media, especially
             5744      to encourage Utah citizens to participate in the care and upkeep of historic cemeteries;
             5745          (vi) work with public and private cemeteries, heritage organizations, genealogical
             5746      groups, and volunteer groups to help maintain, repair, and landscape cemeteries, grave sites,
             5747      and tombstones; and
             5748          (vii) make the inventory available upon request to all other public and private history
             5749      and heritage organizations, tourism organizations and businesses, and others; and
             5750          (c) (i) create and maintain a computerized record of cemeteries and burial locations in a
             5751      state-coordinated and publicly accessible information system;
             5752          (ii) gather information for the information system created and maintained under
             5753      Subsection (3)(c)(i) by providing matching grants, upon approval by the board, to:
             5754          (A) municipal cemeteries;
             5755          (B) cemetery maintenance districts;
             5756          (C) endowment care cemeteries;
             5757          (D) private nonprofit cemeteries;
             5758          (E) genealogical associations; and
             5759          (F) other nonprofit groups with an interest in cemeteries; and
             5760          (iii) adopt rules, pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             5761      Administrative Rulemaking Act, for granting matching funds under Subsection (3)(c)(ii) to
             5762      assure that:
             5763          (A) professional standards are met; and
             5764          (B) projects are cost effective.
             5765          (4) This chapter may not be construed to authorize the division to acquire by purchase
             5766      any historical artifacts, documentary materials, or specimens that are restricted from sale by
             5767      federal law or the laws of any state, territory, or foreign nation.
             5768          Section 82. Section 9-8-305 is amended to read:
             5769           9-8-305. Permit required to survey or excavate on state lands -- Public Lands

             5770      Policy Coordinating Office to issue permits and make rules -- Ownership of collections
             5771      and resources -- Revocation or suspension of permits -- Criminal penalties.
             5772          (1) (a) Except as provided by Subsections (1)(d) and (3)(c), each principal investigator
             5773      who wishes to survey or excavate on any lands owned or controlled by the state, its political
             5774      subdivisions, or by the School and Institutional Trust Lands Administration shall obtain a survey
             5775      or excavation permit from the Public Lands Policy Coordinating Office.
             5776          (b) A principal investigator who holds a valid permit under this section may allow other
             5777      individuals to assist the principal investigator in a survey or excavation if the principal
             5778      investigator ensures that all the individuals comply with the law, the rules, the permit, and the
             5779      appropriate professional standards.
             5780          (c) A person, other than a principal investigator, may not survey or excavate on any
             5781      lands owned or controlled by the state, its political subdivisions, or by the School and
             5782      Institutional Trust Lands Administration unless the person works under the direction of a
             5783      principal investigator who holds a valid permit.
             5784          (d) A permit obtained before July 1, 2006 shall continue until the permit terminates on
             5785      its own terms.
             5786          (2) (a) To obtain a survey permit, a principal investigator shall:
             5787          (i) submit a permit application on a form furnished by the Public Lands Policy
             5788      Coordinating Office;
             5789          (ii) except as provided in Subsection (2)(b), possess a graduate degree in anthropology,
             5790      archaeology, or history;
             5791          (iii) have one year of full-time professional experience or equivalent specialized training
             5792      in archaeological research, administration, or management; and
             5793          (iv) have one year of supervised field and analytical experience in Utah prehistoric or
             5794      historic archaeology.
             5795          (b) In lieu of the graduate degree required by Subsection (2)(a)(ii), a principal
             5796      investigator may submit evidence of training and experience equivalent to a graduate degree.
             5797          (c) Unless the permit is revoked or suspended, a survey permit is valid for the time

             5798      period specified in the permit by the Public Lands Policy Coordinating Office, which may not
             5799      exceed three years.
             5800          (3) (a) Except as provided by Subsection (3)(c), to obtain an excavation permit, a
             5801      principal investigator shall, in addition to complying with Subsection (2)(a), submit:
             5802          (i) a research design to the Public Lands Policy Coordinating Office and the Antiquities
             5803      Section that:
             5804          (A) states the questions to be addressed;
             5805          (B) states the reasons for conducting the work;
             5806          (C) defines the methods to be used;
             5807          (D) describes the analysis to be performed;
             5808          (E) outlines the expected results and the plan for reporting;
             5809          (F) evaluates expected contributions of the proposed work to archaeological or
             5810      anthropological science; and
             5811          (G) estimates the cost and the time of the work that the principal investigator believes is
             5812      necessary to provide the maximum amount of historic, scientific, archaeological,
             5813      anthropological, and educational information; and
             5814          (ii) proof of permission from the landowner to enter the property for the purposes of
             5815      the permit.
             5816          (b) An excavation permit is valid for the amount of time specified in the permit, unless
             5817      the permit is revoked according to Subsection (9).
             5818          (c) The Public Lands Policy Coordinating Office may delegate to an agency the
             5819      authority to issue excavation permits if the agency:
             5820          (i) requests the delegation; and
             5821          (ii) employs or has a long-term contract with a principal investigator with a valid survey
             5822      permit.
             5823          (d) The Public Lands Policy Coordinating Office shall conduct an independent review
             5824      of the delegation authorized by Subsection (3)(c) every three years and may revoke the
             5825      delegation at any time without cause.

             5826          (4) The Public Lands Policy Coordinating Office shall:
             5827          (a) grant a survey permit to a principal investigator who meets the requirements of this
             5828      section;
             5829          (b) grant an excavation permit to a principal investigator after approving, in
             5830      consultation with the Antiquities Section, the research design for the project; and
             5831          (c) assemble a committee of qualified individuals to advise the Public Lands Policy
             5832      Coordinating Office in its duties under this section.
             5833          (5) By following the procedures and requirements of [Title 63, Chapter 46a] Title 63G,
             5834      Chapter 3, Utah Administrative Rulemaking Act, the Public Lands Policy Coordinating Office
             5835      shall, after consulting with the Antiquities Section, make rules to:
             5836          (a) establish survey methodology;
             5837          (b) standardize report and data preparation and submission;
             5838          (c) require other permit application information that the Public Lands Policy
             5839      Coordinating Office finds necessary, including proof of consultation with the appropriate Native
             5840      American tribe;
             5841          (d) establish what training and experience is equivalent to a graduate degree;
             5842          (e) establish requirements for a person authorized by Subsection (1)(b) to assist the
             5843      principal investigator;
             5844          (f) establish requirements for a principal investigator's employer, if applicable; and
             5845          (g) establish criteria, that if met, would allow the Public Lands Policy Coordinating
             5846      Office to reinstate a suspended permit.
             5847          (6) Each principal investigator shall submit a summary report of the work for each
             5848      project to the Antiquities Section in a form prescribed by a rule established under Subsection
             5849      (5)(b), which shall include copies of all:
             5850          (a) site forms;
             5851          (b) data;
             5852          (c) maps;
             5853          (d) drawings;

             5854          (e) photographs; and
             5855          (f) descriptions of specimens.
             5856          (7) (a) Except as provided in Subsection (7)(c), a person may not remove from Utah
             5857      any specimen, site, or portion of any site from lands owned or controlled by the state or its
             5858      political subdivisions, other than school and institutional trust lands, without permission from
             5859      the Antiquities Section, and prior consultation with the landowner and any other agencies
             5860      managing other interests in the land.
             5861          (b) Except as provided in Subsection (7)(c), a person may not remove from Utah any
             5862      specimen, site, or portion of any site from school and institutional trust lands without
             5863      permission from the School and Institutional Trust Lands Administration, granted after
             5864      consultation with the Antiquities Section.
             5865          (c) If a specimen, site, or portion of a site is placed in a repository or curation facility, a
             5866      person may remove it by following the procedures established by the repository or curation
             5867      facility.
             5868          (8) (a) Collections recovered from school and institutional trust lands are owned by the
             5869      respective trust.
             5870          (b) Collections recovered from lands owned or controlled by the state or its
             5871      subdivisions, other than school and institutional trust lands, are owned by the state.
             5872          (c) Within a reasonable time after the completion of fieldwork, each permit holder shall
             5873      deposit all collections at the museum, a curation facility, or a repository.
             5874          (d) The repository or curation facility for collections from lands owned or controlled by
             5875      the state or its subdivisions shall be designated according to the rules made under the authority
             5876      of Section 53B-17-603 .
             5877          (9) (a) Upon complaint by an agency, the Public Lands Policy Coordinating Office shall
             5878      investigate a principal investigator and the work conducted under a permit.
             5879          (b) By following the procedures and requirements of [Title 63, Chapter 46b] Title 63G,
             5880      Chapter 4, Administrative Procedures Act, the Public Lands Policy Coordinating Office may
             5881      revoke or suspend a permit if the principal investigator fails to conduct a survey or excavation

             5882      according to law, the rules enacted by the Public Lands Policy Coordinating Office, or permit
             5883      provisions.
             5884          (10) (a) Any person violating this section is guilty of a class B misdemeanor.
             5885          (b) A person convicted of violating this section, or found to have violated the rules
             5886      authorized by this section, shall, in addition to any other penalties imposed, forfeit all
             5887      archaeological resources discovered by or through the person's efforts to the state or the
             5888      respective trust.
             5889          (11) The division may enter into memoranda of agreement to issue project numbers or
             5890      to retain other data for federal lands or Native American lands within the state.
             5891          Section 83. Section 9-8-309 is amended to read:
             5892           9-8-309. Ancient human remains on nonfederal lands that are not state lands.
             5893          (1) (a) After April 30, 2007, if a person knows or has reason to know that the person
             5894      discovered ancient human remains on nonfederal land that is not state land:
             5895          (i) the person shall:
             5896          (A) cease activity in the area of the discovery until activity may be resumed in
             5897      accordance with Subsection (1)(d);
             5898          (B) notify a local law enforcement agency in accordance with Section 76-9-704 ; and
             5899          (C) notify the person who owns or controls the nonfederal land, if that person is
             5900      different than the person who discovers the ancient human remains; and
             5901          (ii) the person who owns or controls the nonfederal land shall:
             5902          (A) require that activity in the area of the discovery cease until activity may be resumed
             5903      in accordance with Subsection (1)(d); and
             5904          (B) make a reasonable effort to protect the discovered ancient human remains before
             5905      activity may be resumed in accordance with Subsection (1)(d).
             5906          (b) (i) If the local law enforcement agency believes after being notified under this
             5907      Subsection (1) that a person may have discovered ancient human remains, the local law
             5908      enforcement agency shall contact the Antiquities Section.
             5909          (ii) The Antiquities Section shall:

             5910          (A) within two business days of the day on which the Antiquities Section is notified by
             5911      local law enforcement, notify the landowner that the Antiquities Section may excavate and
             5912      retrieve the human remains with the landowner's permission; and
             5913          (B) if the landowner gives the landowner's permission, excavate the human remains by
             5914      no later than:
             5915          (I) five business days from the day on which the Antiquities Section obtains the
             5916      permission of the landowner under this Subsection (1); or
             5917          (II) if extraordinary circumstances exist as provided in Subsection (1)(c), within the
             5918      time period designated by the director not to exceed 30 days from the day on which the
             5919      Antiquities Section obtains the permission of the landowner under this Subsection (1).
             5920          (c) (i) The director may grant the Antiquities Section an extension of time for
             5921      excavation and retrieval of ancient human remains not to exceed 30 days from the day on which
             5922      the Antiquities Section obtains the permission of the landowner under this Subsection (1), if the
             5923      director determines that extraordinary circumstances exist on the basis of objective criteria such
             5924      as:
             5925          (A) the unusual scope of the ancient human remains;
             5926          (B) the complexity or difficulty of excavation or retrieval of the ancient human remains;
             5927      or
             5928          (C) the landowner's concerns related to the excavation or retrieval of the ancient human
             5929      remains.
             5930          (ii) If the landowner objects to the time period designated by the director, the
             5931      landowner may appeal the decision to the executive director of the department in writing.
             5932          (iii) If the executive director receives an appeal from the landowner under this
             5933      Subsection (1)(c), the executive director shall:
             5934          (A) decide on the appeal within two business days; and
             5935          (B) (I) uphold the decision of the director; or
             5936          (II) designate a shorter time period than the director designated for the excavation and
             5937      retrieval of the ancient human remains.

             5938          (iv) An appeal under this Subsection (1)(c) may not be the cause for the delay of the
             5939      excavation and retrieval of the ancient human remains.
             5940          (v) A decision and appeal under this Subsection (1)(c) is exempt from [Title 63,
             5941      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             5942          (d) A person that owns or controls nonfederal land that is not state land may engage in
             5943      or permit others to engage in activities in the area of the discovery without violating this part or
             5944      Section 76-9-704 if once notified of the discovery of ancient human remains on the nonfederal
             5945      land, the person:
             5946          (i) consents to the Antiquities Section excavating and retrieving the ancient human
             5947      remains; and
             5948          (ii) engages in or permits others to engage in activities in the area of the discovery only
             5949      after:
             5950          (A) the day on which the Antiquities Section removes the ancient human remains from
             5951      the nonfederal land; or
             5952          (B) the time period described in Subsection (1)(b)(ii)(B).
             5953          (2) A person that owns or controls nonfederal land that is not state land may not be
             5954      required to pay any costs incurred by the state associated with the ancient human remains,
             5955      including costs associated with the costs of the:
             5956          (a) discovery of ancient human remains;
             5957          (b) excavation or retrieval of ancient human remains; or
             5958          (c) determination of ownership or disposition of ancient human remains.
             5959          (3) For nonfederal land that is not state land, nothing in this section limits or prohibits
             5960      the Antiquities Section and a person who owns or controls the nonfederal land from entering
             5961      into an agreement addressing the ancient human remains that allows for different terms than
             5962      those provided in this section.
             5963          (4) The ownership and control of ancient human remains that are the ancient human
             5964      remains of a Native American shall be determined in accordance with Chapter 9, Part 4, Native
             5965      American Grave Protection and Repatriation Act:

             5966          (a) if the ancient human remains are in possession of the state;
             5967          (b) if the ancient human remains are not known to have been discovered on lands
             5968      owned, controlled, or held in trust by the federal government; and
             5969          (c) regardless of when the ancient human remains are discovered.
             5970          (5) This section:
             5971          (a) does not apply to ancient human remains that are subject to the provisions and
             5972      procedures of:
             5973          (i) federal law; or
             5974          (ii) Part 4, Historic Sites; and
             5975          (b) does not modify any property rights of a person that owns or controls nonfederal
             5976      land except as to the ownership of the ancient human remains.
             5977          (6) The division, Antiquities Section, or Division of Indian Affairs may not make rules
             5978      that impose any requirement on a person who discovers ancient human remains or who owns or
             5979      controls nonfederal land that is not state land on which ancient human remains are discovered
             5980      that is not expressly provided for in this section.
             5981          Section 84. Section 9-8-405 is amended to read:
             5982           9-8-405. Federal funds -- Agreements on standards and procedures.
             5983          By following the procedures and requirements of [Title 63, Chapter 38e] Title 63J,
             5984      Chapter 5, Federal Funds Procedures, the division may accept and administer federal funds
             5985      provided under the provisions of the National Historic Preservation Act of 1966, the Land and
             5986      Water Conservation Act as amended, and subsequent legislation directed toward the
             5987      encouragement of historic preservation, and to enter into those agreements on professional
             5988      standards and procedures required by participation in the National Historic Preservation Act of
             5989      1966 and the National Register Office.
             5990          Section 85. Section 9-8-704 is amended to read:
             5991           9-8-704. Division duties.
             5992          The division shall, according to policy established by the board:
             5993          (1) allocate monies from the state fund to the endowment fund created by a qualifying

             5994      organization under Section 9-8-703 ;
             5995          (2) determine the eligibility of each qualifying organization to receive monies from the
             5996      state fund into the endowment fund of the qualifying organization;
             5997          (3) determine the matching amount each qualifying organization must raise in order to
             5998      qualify to receive monies from the state fund;
             5999          (4) establish a date by which each qualifying organization must provide its matching
             6000      funds;
             6001          (5) verify that matching funds have been provided by each qualifying organization by
             6002      the date determined in Subsection (4); and
             6003          (6) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             6004      Administrative Rulemaking Act, establish criteria by rule not otherwise prescribed in this
             6005      chapter for determining the eligibility of qualifying organizations to receive monies from the
             6006      state fund.
             6007          Section 86. Section 9-9-104 is amended to read:
             6008           9-9-104. Duties and powers.
             6009          (1) The division shall:
             6010          (a) have all of the functions, powers, duties, rights, and responsibilities granted to it by
             6011      this chapter;
             6012          (b) staff those committees or boards as specified in this chapter; and
             6013          (c) in accordance with policies set by state government, coordinate relations between:
             6014          (i) the state;
             6015          (ii) tribal governments;
             6016          (iii) other Indian groups; and
             6017          (iv) federal agencies.
             6018          (2) The division may:
             6019          (a) contract with public and private entities to provide services or facilities;
             6020          (b) acquire and hold funds or other property for the administration of the programs
             6021      outlined in this chapter;

             6022          (c) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             6023      Administrative Rulemaking Act, that are necessary to carry out the duties of the division;
             6024          (d) accept gifts, grants, devises, and property, in cash or in kind, for the benefit of
             6025      Indians; and
             6026          (e) apply or dispose of those gifts, grants, devises, and property received under
             6027      Subsection (2)(d) for the use and benefit of Indians within the state.
             6028          Section 87. Section 9-10-105 is amended to read:
             6029           9-10-105. Powers.
             6030          (1) The board may:
             6031          (a) appoint a hearing examiner or administrative law judge with authority to conduct
             6032      any hearings, make determinations, and enter appropriate findings of facts, conclusions of law,
             6033      and orders under authority of the Interlocal Cooperation Act; and
             6034          (b) make rules under [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             6035      Rulemaking Act, if necessary to perform its responsibilities.
             6036          (2) The board shall:
             6037          (a) be subject to the procedures and requirements under Title 52, Chapter 4, Open and
             6038      Public Meetings Act; and
             6039          (b) be subject to the procedures and requirements under Title 51, Chapter 7, State
             6040      Money Management Act.
             6041          Section 88. Section 9-11-102 is amended to read:
             6042           9-11-102. Definitions.
             6043          As used in this chapter:
             6044          (1) "Board" means the Navajo Revitalization Fund Board.
             6045          (2) "Capital projects" means expenditures for land, improvements on the land, and
             6046      equipment intended to have long-term beneficial use.
             6047          (3) "Division" means the Division of Housing and Community Development.
             6048          (4) "Eligible entities" means:
             6049          (a) the Navajo Nation;

             6050          (b) a department or division of the Navajo Nation;
             6051          (c) a Utah Navajo Chapter, as defined in Section [ 63-88-101 ] 51-9-501 ;
             6052          (d) the Navajo Utah Commission;
             6053          (e) an agency of the state or a political subdivision of the state;
             6054          (f) the Navajo Trust Fund established under [Title 63, Chapter 88] Title 51, Chapter 9,
             6055      Part 5, Navajo Trust Fund; or
             6056          (g) a nonprofit corporation.
             6057          (5) "Navajo Utah Commission" means the commission created by Resolution
             6058      IGRJN-134-92 of the Intergovernmental Relations Committee of the Navajo Nation Council.
             6059          (6) "Revitalization fund" or "fund" means the Navajo Revitalization Fund.
             6060          Section 89. Section 9-11-105 is amended to read:
             6061           9-11-105. Navajo Revitalization Fund Board created -- Members -- Terms --
             6062      Chair -- Expenses.
             6063          (1) There is created within the division the Navajo Revitalization Board composed of
             6064      five members as follows:
             6065          (a) the governor or the governor's designee;
             6066          (b) the two members of the San Juan County commission whose districts include
             6067      portions of the Navajo Reservation;
             6068          (c) the chair of the Navajo Utah Commission or a member of the commission
             6069      designated by the chair; and
             6070          (d) the chair of the Utah Dineh Committee, as created in Section [ 63-88-107 ] 51-9-507 ,
             6071      or a member of the committee designated by the chair.
             6072          (2) The terms of office for the members of the board shall run concurrently with the
             6073      terms of office for the governor, county commissioners, member of the Navajo Utah
             6074      Commission, and member of the Utah Dineh Committee.
             6075          (3) The governor, or the governor's designee, shall be the chair of the board and the
             6076      chair is responsible to call necessary meetings.
             6077          (4) (a) (i) Members who are not government employees of the state or local government

             6078      shall receive no compensation or benefits for their services, but may receive per diem and
             6079      expenses incurred in the performance of the member's official duties at the rates established by
             6080      the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             6081          (ii) Members may decline to receive per diem and expenses for their service.
             6082          (b) (i) State government officer and employee members who do not receive salary, per
             6083      diem, or expenses from their agency for their service may receive per diem and expenses
             6084      incurred in the performance of their official duties from the board at the rates established by the
             6085      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             6086          (ii) State government officer and employee members may decline to receive per diem
             6087      and expenses for their service.
             6088          (c) (i) Local government members who do not receive salary, per diem, or expenses
             6089      from the entity that they represent for their service may receive per diem and expenses incurred
             6090      in the performance of their official duties at the rates established by the Division of Finance
             6091      under Sections 63A-3-106 and 63A-3-107 .
             6092          (ii) Local government members may decline to receive per diem and expenses for their
             6093      service.
             6094          (d) The per diem and expenses permitted under this Subsection (4) may be included as
             6095      costs of administration of the fund.
             6096          (5) Four board members are a quorum.
             6097          (6) Any board decisions related to monies in or disbursed from the fund requires the
             6098      affirmative vote of each member of the board present at a meeting when a quorum is present.
             6099          Section 90. Section 9-11-106 is amended to read:
             6100           9-11-106. Powers -- Duties.
             6101          (1) The board shall:
             6102          (a) direct the division regarding grants and loans from the revitalization fund to eligible
             6103      entities to serve persons that are or may be socially or economically impacted, directly or
             6104      indirectly, by mineral resource development;
             6105          (b) establish procedures for application for an award of grants and loans including

             6106      eligibility criteria;
             6107          (c) coordinate projects and programs with other projects and programs funded by
             6108      federal, state, and local government entities;
             6109          (d) determine the order in which projects will be funded; and
             6110          (e) be subject to the procedures and requirements under Title 52, Chapter 4, Open and
             6111      Public Meetings Act.
             6112          (2) The board may:
             6113          (a) qualify for, accept, and administer grants, gifts, loans, or other funds from the
             6114      federal government and from other sources, public or private; and
             6115          (b) make rules under [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             6116      Rulemaking Act, if necessary to perform its responsibilities.
             6117          Section 91. Section 9-11-107 is amended to read:
             6118           9-11-107. Revitalization fund administered by board -- Eligibility for assistance --
             6119      Review by board -- Restrictions on loans and grants -- Division to distribute monies.
             6120          (1) (a) If an eligible entity wishes to receive a loan or grant from the board, the eligible
             6121      entity shall apply to the board. The application shall contain the information required by the
             6122      board.
             6123          (b) The board shall review each application for a loan or grant before approving the
             6124      loan or grant.
             6125          (c) The board may approve loan or grant applications subject to the applicant's
             6126      compliance with certain conditions established by the board.
             6127          (2) In determining whether an eligible entity may receive a loan or grant, the board shall
             6128      give priority to:
             6129          (a) capital projects and infrastructure, including electrical power, water, and other one
             6130      time need projects;
             6131          (b) housing projects that consist of:
             6132          (i) the purchase of new housing;
             6133          (ii) the construction of new housing; or

             6134          (iii) a significant remodeling of existing housing; or
             6135          (c) matching educational endowments that:
             6136          (i) promote economic development within the Utah portion of the Navajo Reservation;
             6137          (ii) promote the preservation of Navajo culture, history, and language; or
             6138          (iii) support postsecondary educational opportunities for Navajo students enrolled in
             6139      courses or programs taught within the Utah portion of the Navajo Reservation.
             6140          (3) A loan or grant issued under this chapter may not fund:
             6141          (a) start-up or operational costs of private business ventures;
             6142          (b) general operating budgets of the eligible entities; or
             6143          (c) a project or program that will operate or be located outside of the Navajo
             6144      Reservation in San Juan County, Utah, except for educational endowments approved by the
             6145      board under Subsection (2)(c).
             6146          (4) (a) The board may not approve a loan unless the loan:
             6147          (i) specifies the terms for repayment; and
             6148          (ii) is secured by proceeds from a general obligation, special assessment, or revenue
             6149      bond, note, or other obligation.
             6150          (b) Any loan repayment or interest on a loan issued under this chapter shall be
             6151      deposited into the fund.
             6152          (5) The board may not approve a loan or grant unless the loan or grant provides for
             6153      matching monies or in-kind services from:
             6154          (a) the Navajo Nation;
             6155          (b) the Navajo Trust Fund;
             6156          (c) San Juan County;
             6157          (d) the state;
             6158          (e) the federal government;
             6159          (f) a Utah Navajo Chapter, as defined in Section [ 63-88-101 ] 51-9-501 ; or
             6160          (g) other private or public organization.
             6161          (6) The division shall distribute loan and grant monies:

             6162          (a) if the loan or grant is approved by the board;
             6163          (b) in accordance with the instructions of the board, except that the board may not
             6164      instruct that monies be distributed in a manner:
             6165          (i) inconsistent with this chapter; or
             6166          (ii) in violation of rules and procedures of the department; and
             6167          (c) in the case of a loan, in accordance with Section 63A-3-205 .
             6168          Section 92. Section 9-12-103 is amended to read:
             6169           9-12-103. Eligibility criteria.
             6170          In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             6171      Rulemaking Act, the department may make rules establishing eligibility criteria for recipients of
             6172      assistance under this chapter. A recipient of assistance under this chapter must demonstrate:
             6173          (1) that the recipient's family, household, or individual income is 150% of the federal
             6174      poverty level or less;
             6175          (2) that the recipient is responsible for paying the recipient's home energy costs; and
             6176          (3) compliance with any rules established by the department under this section.
             6177          Section 93. Section 9-12-105 is amended to read:
             6178           9-12-105. Payment method.
             6179          Direct payments for home energy costs shall be made jointly to the responsible
             6180      householder and to the vendor of energy services to whom the family or individual served owes
             6181      a payment except in certain cases, as established by rule by the department in accordance with
             6182      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, where
             6183      payments may be made directly to the responsible householder.
             6184          Section 94. Section 10-1-306 is amended to read:
             6185           10-1-306. Rules for delivered value and point of sale.
             6186          (1) The delivered value of taxable energy under this part shall be established pursuant to
             6187      rules made by the commission in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             6188      Utah Administrative Rulemaking Act.
             6189          (2) The rules made by the commission under Subsection (1):

             6190          (a) shall provide that an arm's length sales price for taxable energy sold or used by a
             6191      taxpayer in the municipality is the delivered value, unless the sales price does not include some
             6192      portion of the taxable energy or component of delivered value;
             6193          (b) shall establish one or more default methods for determining the delivered value for
             6194      each customer class one time per calendar year on or before January 31 for taxable energy when
             6195      the commission determines that the sales price does not accurately reflect delivered value; and
             6196          (c) shall provide that for purposes of determining the point of sale or use of taxable
             6197      energy the location of the meter is normally the point of sale or use unless the taxpayer
             6198      demonstrates that the use is not in a municipality imposing the municipal energy sales and use
             6199      tax.
             6200          (3) In establishing a default method under Subsection (2)(b), the commission:
             6201          (a) shall take into account quantity discounts and other reductions or increases in value
             6202      that are generally available in the marketplace for various grades or types of property and
             6203      classes of services; and
             6204          (b) may consider:
             6205          (i) generally applicable tariffs for various classes of utility services approved by the
             6206      Public Service Commission or other governmental entity;
             6207          (ii) posted prices;
             6208          (iii) spot-market prices;
             6209          (iv) trade publications;
             6210          (v) market data; and
             6211          (vi) other information and data prescribed by the commission.
             6212          Section 95. Section 10-1-308 is amended to read:
             6213           10-1-308. Report of tax collections -- Allocation when location of taxpayer cannot
             6214      be accurately determined.
             6215          (1) All municipal energy sales and use taxes collected under this part shall be reported
             6216      to the commission on forms that accurately identify the municipality where the taxpayer is
             6217      located.

             6218          (2) The commission shall make rules, in accordance with [Title 63, Chapter 46a] Title
             6219      63G, Chapter 3, Utah Administrative Rulemaking Act, to proportionally distribute all taxes
             6220      collected if the municipality where the taxpayer is located cannot be accurately determined.
             6221          Section 96. Section 10-1-405 is amended to read:
             6222           10-1-405. Collection of taxes by commission -- Uniform interlocal agreement --
             6223      Rulemaking authority -- Charge for services.
             6224          (1) Subject to the other provisions of this section, the commission shall collect, enforce,
             6225      and administer any municipal telecommunications license tax imposed under this part pursuant
             6226      to:
             6227          (a) the same procedures used in the administration, collection, and enforcement of the
             6228      state sales and use tax under:
             6229          (i) Title 59, Chapter 1, General Taxation Policies; and
             6230          (ii) Title 59, Chapter 12, Part 1, Tax Collection:
             6231          (A) except for:
             6232          (I) Subsection 59-12-103 (2)(h);
             6233          (II) Section 59-12-104 ;
             6234          (III) Section 59-12-104.1 ;
             6235          (IV) Section 59-12-104.2 ; and
             6236          (V) Section 59-12-107.1 ; and
             6237          (B) except that for purposes of Section 59-12-110 , the term "taxpayer" may include a
             6238      customer from whom a municipal telecommunications license tax is recovered in accordance
             6239      with Subsection 10-1-403 (2); and
             6240          (b) a uniform interlocal agreement:
             6241          (i) between:
             6242          (A) the municipality that imposes the municipal telecommunications license tax; and
             6243          (B) the commission;
             6244          (ii) that is executed under Title 11, Chapter 13, Interlocal Cooperation Act;
             6245          (iii) that complies with Subsection (2)(a); and

             6246          (iv) that is developed by rule in accordance with Subsection (2)(b).
             6247          (2) (a) The uniform interlocal agreement described in Subsection (1) shall provide that
             6248      the commission shall:
             6249          (i) transmit monies collected under this part:
             6250          (A) monthly; and
             6251          (B) by electronic funds transfer by the commission to the municipality;
             6252          (ii) conduct audits of the municipal telecommunications license tax;
             6253          (iii) charge the municipality for the commission's services under this section in an
             6254      amount:
             6255          (A) sufficient to reimburse the commission for the cost to the commission in rendering
             6256      the services; and
             6257          (B) that may not exceed an amount equal to 1.5% of the municipal telecommunications
             6258      license tax imposed by the ordinance of the municipality; and
             6259          (iv) collect, enforce, and administer the municipal telecommunications license tax
             6260      authorized under this part pursuant to the same procedures used in the administration,
             6261      collection, and enforcement of the state sales and use tax as provided in Subsection (1)(a).
             6262          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             6263      Administrative Rulemaking Act, the commission shall develop a uniform interlocal agreement
             6264      that meets the requirements of this section.
             6265          (3) The administrative fee charged under Subsection (2)(a) shall be:
             6266          (a) deposited in the Sales and Use Tax Administrative Fees Account; and
             6267          (b) used for administration of municipal telecommunications license taxes under this
             6268      part.
             6269          (4) If, on July 1, 2007, a municipality has in effect an ordinance that levies a municipal
             6270      telecommunications license tax under this part at a rate that exceeds 3.5%:
             6271          (a) except as provided in Subsection (4)(b), beginning on July 1, 2007, the commission
             6272      shall collect the municipal telecommunications license tax:
             6273          (i) within the municipality;

             6274          (ii) at a rate of 3.5%; and
             6275          (iii) from a telecommunications provider required to pay the municipal
             6276      telecommunications license tax on or after July 1, 2007; and
             6277          (b) the commission shall collect a municipal telecommunications license tax within the
             6278      municipality at the rate imposed by the municipality if:
             6279          (i) after July 1, 2007, the municipality has in effect an ordinance that levies a municipal
             6280      telecommunications license tax under this part at a rate of up to 3.5%;
             6281          (ii) the municipality meets the requirements of Subsection 10-1-403 (3)(b) in changing
             6282      the rate of the municipal telecommunications license tax; and
             6283          (iii) a telecommunications provider is required to pay the municipal telecommunications
             6284      license tax on or after the day on which the ordinance described in Subsection (4)(b)(ii) takes
             6285      effect.
             6286          Section 97. Section 10-3-208 is amended to read:
             6287           10-3-208. Campaign finance statement in municipal election.
             6288          (1) As used in this section:
             6289          (a) "Reporting date" means:
             6290          (i) ten days before a municipal general election, for a campaign finance statement
             6291      required to be filed no later than seven days before a municipal general election; and
             6292          (ii) the day of filing, for a campaign finance statement required to be filed no later than
             6293      30 days after a municipal primary or general election.
             6294          (b) "Reporting limit" means:
             6295          (i) $50; or
             6296          (ii) an amount lower than $50 that is specified in an ordinance of the municipality.
             6297          (2) (a) (i) Each candidate for municipal office who is not eliminated at a municipal
             6298      primary election shall file with the municipal clerk or recorder a campaign finance statement:
             6299          (A) no later than seven days before the date of the municipal general election; and
             6300          (B) no later than 30 days after the date of the municipal general election.
             6301          (ii) Each candidate for municipal office who is eliminated at a municipal primary

             6302      election shall file with the municipal clerk or recorder a campaign finance statement no later
             6303      than 30 days after the date of the municipal primary election.
             6304          (b) Each campaign finance statement under Subsection (2)(a) shall:
             6305          (i) except as provided in Subsection (2)(b)(ii):
             6306          (A) report all of the candidate's itemized and total:
             6307          (I) campaign contributions, including in-kind and other nonmonetary contributions,
             6308      received before the close of the reporting date; and
             6309          (II) campaign expenditures made through the close of the reporting date; and
             6310          (B) identify:
             6311          (I) for each contribution that exceeds the reporting limit, the amount of the contribution
             6312      and the name of the donor;
             6313          (II) the aggregate total of all contributions that individually do not exceed the reporting
             6314      limit; and
             6315          (III) for each campaign expenditure, the amount of the expenditure and the name of the
             6316      recipient of the expenditure; or
             6317          (ii) report the total amount of all campaign contributions and expenditures if the
             6318      candidate receives $500 or less in campaign contributions and spends $500 or less on the
             6319      candidate's campaign.
             6320          (3) (a) A municipality may, by ordinance:
             6321          (i) provide a reporting limit lower than $50;
             6322          (ii) require greater disclosure of campaign contributions and expenditures than is
             6323      required in this section; and
             6324          (iii) impose additional penalties on candidates who fail to comply with the applicable
             6325      requirements beyond those imposed by this section.
             6326          (b) A candidate for municipal office is subject to the provisions of this section and not
             6327      the provisions of an ordinance adopted by the municipality under Subsection (3)(a) if:
             6328          (i) the municipal ordinance establishes requirements or penalties that differ from those
             6329      established in this section; and

             6330          (ii) the municipal clerk or recorder fails to notify the candidate of the provisions of the
             6331      ordinance as required in Subsection (4).
             6332          (4) Each municipal clerk or recorder shall, at the time the candidate for municipal office
             6333      files a declaration of candidacy, and again 14 days before each municipal general election, notify
             6334      the candidate in writing of:
             6335          (a) the provisions of statute or municipal ordinance governing the disclosure of
             6336      campaign contributions and expenditures;
             6337          (b) the dates when the candidate's campaign finance statement is required to be filed;
             6338      and
             6339          (c) the penalties that apply for failure to file a timely campaign finance statement,
             6340      including the statutory provision that requires removal of the candidate's name from the ballot
             6341      for failure to file the required campaign finance statement when required.
             6342          (5) Notwithstanding any provision of [Title 63, Chapter 2] Title 63G, Chapter 2,
             6343      Government Records Access and Management Act, the municipal clerk or recorder shall make
             6344      each campaign finance statement filed by a candidate available for public inspection and copying
             6345      no later than one business day after the statement is filed.
             6346          (6) (a) If a candidate fails to file a campaign finance statement before the municipal
             6347      general election by the deadline specified in Subsection (2)(a)(i)(A), the municipal clerk or
             6348      recorder shall inform the appropriate election official who:
             6349          (i) shall:
             6350          (A) if practicable, remove the candidate's name from the ballot by blacking out the
             6351      candidate's name before the ballots are delivered to voters; or
             6352          (B) if removing the candidate's name from the ballot is not practicable, inform the
             6353      voters by any practicable method that the candidate has been disqualified and that votes cast for
             6354      the candidate will not be counted; and
             6355          (ii) may not count any votes for that candidate.
             6356          (b) Notwithstanding Subsection (6)(a), a candidate who files a campaign finance
             6357      statement seven days before a municipal general election is not disqualified if:

             6358          (i) the statement details accurately and completely the information required under
             6359      Subsection (2)(b), except for inadvertent omissions or insignificant errors or inaccuracies; and
             6360          (ii) the omissions, errors, or inaccuracies are corrected in an amended report or in the
             6361      next scheduled report.
             6362          (7) A campaign finance statement required under this section is considered filed if it is
             6363      received in the municipal clerk or recorder's office by 5 p.m. on the date that is it due.
             6364          (8) (a) A private party in interest may bring a civil action in district court to enforce the
             6365      provisions of this section or an ordinance adopted under this section.
             6366          (b) In a civil action under Subsection (8)(a), the court may award costs and attorney's
             6367      fees to the prevailing party.
             6368          Section 98. Section 10-3-1303 is amended to read:
             6369           10-3-1303. Definitions.
             6370          As used in this part:
             6371          (1) "Appointed officer" means any person appointed to any statutory office or position
             6372      or any other person appointed to any position of employment with a city or with a community
             6373      development and renewal agency under Title 17C, Limited Purpose Local Government Entities
             6374      - Community Development and Renewal Agencies. Appointed officers include, but are not
             6375      limited to, persons serving on special, regular, or full-time committees, agencies, or boards
             6376      whether or not such persons are compensated for their services. The use of the word "officer"
             6377      in this part is not intended to make appointed persons or employees "officers" of the
             6378      municipality.
             6379          (2) "Assist" means to act, or offer or agree to act, in such a way as to help, represent,
             6380      aid, advise, furnish information to, or otherwise provide assistance to a person or business
             6381      entity, believing that such action is of help, aid, advice, or assistance to such person or business
             6382      entity and with the intent to assist such person or business entity.
             6383          (3) "Business entity" means a sole proprietorship, partnership, association, joint
             6384      venture, corporation, firm, trust, foundation, or other organization or entity used in carrying on
             6385      a business.

             6386          (4) "Compensation" means anything of economic value, however designated, which is
             6387      paid, loaned, granted, given, donated, or transferred to any person or business entity by anyone
             6388      other than the governmental employer for or in consideration of personal services, materials,
             6389      property, or any other thing whatsoever.
             6390          (5) "Elected officer" means any person elected or appointed to the office of mayor,
             6391      commissioner, or council member.
             6392          (6) "Improper disclosure" means disclosure of private, controlled, or protected
             6393      information to any person who does not have both the right and the need to receive the
             6394      information.
             6395          (7) "Municipal employee" means a person who is not an elected or appointed officer
             6396      who is employed on a full or part-time basis by a municipality or by a community development
             6397      and renewal agency under Title 17C, Limited Purpose Local Government Entities - Community
             6398      Development and Renewal Agencies.
             6399          (8) "Private, controlled, or protected information" means information classified as
             6400      private, controlled, or protected under [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             6401      Records Access and Management Act or other applicable provision of law.
             6402          (9) "Substantial interest" means the ownership, either legally or equitably, by an
             6403      individual, [his] the individual's spouse, or [his] the individual's minor children, of at least 10%
             6404      of the outstanding shares of a corporation or 10% interest in any other business entity.
             6405          Section 99. Section 10-3-1304 is amended to read:
             6406           10-3-1304. Use of office for personal benefit prohibited.
             6407          (1) As used in this section, "economic benefit tantamount to a gift" includes:
             6408          (a) a loan at an interest rate that is substantially lower than the commercial rate then
             6409      currently prevalent for similar loans; and
             6410          (b) compensation received for private services rendered at a rate substantially exceeding
             6411      the fair market value of the services.
             6412          (2) It is an offense for an elected or appointed officer or municipal employee, under
             6413      circumstances not amounting to a violation of Section [ 63-56-1001 ] 63G-6-1001 or 76-8-105 ,

             6414      to:
             6415          (a) disclose or improperly use private, controlled, or protected information acquired by
             6416      reason of [his] the officer's or employee's official position or in the course of official duties in
             6417      order to further substantially the officer's or employee's personal economic interest or to secure
             6418      special privileges or exemptions for [himself] the officer or employee or for others;
             6419          (b) use or attempt to use [his] the officer's or employee's official position to:
             6420          (i) further substantially the officer's or employee's personal economic interest; or
             6421          (ii) secure special privileges for [himself] the officer or employee or for others; or
             6422          (c) knowingly receive, accept, take, seek, or solicit, directly or indirectly, for [himself]
             6423      the officer or employee or for another, a gift of substantial value or a substantial economic
             6424      benefit tantamount to a gift that:
             6425          (i) would tend improperly to influence a reasonable person in the person's position to
             6426      depart from the faithful and impartial discharge of the person's public duties; or
             6427          (ii) the person knows or that a reasonable person in that position should know under the
             6428      circumstances is primarily for the purpose of rewarding the person for official action taken.
             6429          (3) Subsection (2)(c) does not apply to:
             6430          (a) an occasional nonpecuniary gift having a value of less than $50;
             6431          (b) an award publicly presented in recognition of public services;
             6432          (c) any bona fide loan made in the ordinary course of business; or
             6433          (d) a political campaign contribution.
             6434          Section 100. Section 10-3-1305 is amended to read:
             6435           10-3-1305. Compensation for assistance in transaction involving municipality --
             6436      Public disclosure and filing required.
             6437          (1) As used in this section, "municipal body" means any public board, commission,
             6438      committee, or other public group organized to make public policy decisions or to advise persons
             6439      who make public policy decisions.
             6440          (2) It is an offense for an elected officer, or appointed officer, who is a member of a
             6441      public body, under circumstances not amounting to a violation of Section [ 63-56-1001 ]

             6442      63G-6-1001 or 76-8-105 , to receive or agree to receive compensation for assisting any person
             6443      or business entity in any transaction involving the municipality in which [he] the member is an
             6444      officer unless [he] the member:
             6445          (a) files with the mayor a sworn statement giving the information required by this
             6446      section; and
             6447          (b) discloses the information required by Subsection (5) in an open meeting to the
             6448      members of the body of which [he] the officer is a member immediately before the discussion.
             6449          (3) It is an offense for an appointed officer who is not a member of a public body or a
             6450      municipal employee to receive or agree to receive compensation for assisting any person or
             6451      business entity in any transaction involving the municipality by which [he] the person is
             6452      employed unless the officer or employee:
             6453          (a) files with the mayor a sworn statement giving the information required by this
             6454      section; and
             6455          (b) discloses the information required by Subsection (5) to:
             6456          (i) [his] the officer or employee's immediate supervisor; and
             6457          (ii) any other municipal officer or employee who may rely upon the employee's
             6458      representations in evaluating or approving the transaction.
             6459          (4) (a) The officer or employee shall file the statement required to be filed by this
             6460      section ten days before the date of any agreement between the elected or appointed officer or
             6461      municipal employee and the person or business entity being assisted or ten days before the
             6462      receipt of compensation by the officer or employee, whichever is earlier.
             6463          (b) The statement is public information and shall be available for examination by the
             6464      public.
             6465          (5) The statement and disclosure shall contain:
             6466          (a) the name and address of the officer or municipal employee;
             6467          (b) the name and address of the person or business entity being or to be assisted or in
             6468      which the appointed or elected official or municipal employee has a substantial interest; and
             6469          (c) a brief description of the transaction as to which service is rendered or is to be

             6470      rendered and of the nature of the service performed or to be performed.
             6471          Section 101. Section 10-7-86 is amended to read:
             6472           10-7-86. Municipality may adopt Utah Procurement Code -- Hiring of
             6473      professional architect, engineer, or surveyor.
             6474          (1) The governing body of any municipality may adopt any or all of the provisions of
             6475      [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code, or the rules promulgated
             6476      pursuant to that code.
             6477          (2) Notwithstanding Subsection (1), the governing body of each municipality that
             6478      engages the services of a professional architect, engineer, or surveyor and considers more than
             6479      one such professional for the engagement:
             6480          (a) shall consider, as a minimum, in the selection process:
             6481          (i) the qualifications, experience, and background of each firm submitting a proposal;
             6482          (ii) the specific individuals assigned to the project and the time commitments of each to
             6483      the project; and
             6484          (iii) the project schedule and the approach to the project that the firm will take; and
             6485          (b) may engage the services of a professional architect, engineer, or surveyor based on
             6486      the criteria under Subsection (2)(a) rather than solely on lowest cost.
             6487          Section 102. Section 10-7-87 is amended to read:
             6488           10-7-87. Procurement -- Use of recycled goods.
             6489          The procurement officer or other person responsible for purchasing supplies for each
             6490      municipality shall:
             6491          (1) maintain for reference a copy of the current listing of recycled items available on
             6492      state contracts as issued by the chief procurement officer under Section [ 63-56-204 ]
             6493      63G-6-204 ; and
             6494          (2) give recycled items consideration when inviting bids and purchasing supplies, in
             6495      compliance with Section 11-37-101 .
             6496          Section 103. Section 10-8-2 is amended to read:
             6497           10-8-2. Appropriations -- Acquisition and disposal of property -- Municipal

             6498      authority -- Corporate purpose -- Procedure -- Notice of intent to acquire real property.
             6499          (1) (a) A municipal legislative body may:
             6500          (i) appropriate money for corporate purposes only;
             6501          (ii) provide for payment of debts and expenses of the corporation;
             6502          (iii) subject to Subsections (4) and (5), purchase, receive, hold, sell, lease, convey, and
             6503      dispose of real and personal property for the benefit of the municipality, whether the property is
             6504      within or without the municipality's corporate boundaries, if the action is in the public interest
             6505      and complies with other law;
             6506          (iv) improve, protect, and do any other thing in relation to this property that an
             6507      individual could do; and
             6508          (v) subject to Subsection (2) and after first holding a public hearing, authorize municipal
             6509      services or other nonmonetary assistance to be provided to or waive fees required to be paid by
             6510      a nonprofit entity, whether or not the municipality receives consideration in return.
             6511          (b) A municipality may:
             6512          (i) furnish all necessary local public services within the municipality;
             6513          (ii) purchase, hire, construct, own, maintain and operate, or lease public utilities located
             6514      and operating within and operated by the municipality; and
             6515          (iii) subject to Subsection (1)(c), acquire by eminent domain, or otherwise, property
             6516      located inside or outside the corporate limits of the municipality and necessary for any of the
             6517      purposes stated in Subsections (1)(b)(i) and (ii), subject to restrictions imposed by Title 78,
             6518      Chapter 34, Eminent Domain, and general law for the protection of other communities.
             6519          (c) Each municipality that intends to acquire property by eminent domain under
             6520      Subsection (1)(b) shall, upon the first contact with the owner of the property sought to be
             6521      acquired, deliver to the owner a copy of a booklet or other materials provided by the Office of
             6522      the Property Rights Ombudsman, created under Section 13-43-201 , dealing with the property
             6523      owner's rights in an eminent domain proceeding.
             6524          (d) Subsection (1)(b) may not be construed to diminish any other authority a
             6525      municipality may claim to have under the law to acquire by eminent domain property located

             6526      inside or outside the municipality.
             6527          (2) (a) Services or assistance provided pursuant to Subsection (1)(a)(v) is not subject to
             6528      the provisions of Subsection (3).
             6529          (b) The total amount of services or other nonmonetary assistance provided or fees
             6530      waived under Subsection (1)(a)(v) in any given fiscal year may not exceed 1% of the
             6531      municipality's budget for that fiscal year.
             6532          (3) It is considered a corporate purpose to appropriate money for any purpose that, in
             6533      the judgment of the municipal legislative body, provides for the safety, health, prosperity, moral
             6534      well-being, peace, order, comfort, or convenience of the inhabitants of the municipality subject
             6535      to the following:
             6536          (a) The net value received for any money appropriated shall be measured on a
             6537      project-by-project basis over the life of the project.
             6538          (b) The criteria for a determination under this Subsection (3) shall be established by the
             6539      municipality's legislative body. A determination of value received, made by the municipality's
             6540      legislative body, shall be presumed valid unless it can be shown that the determination was
             6541      arbitrary, capricious, or illegal.
             6542          (c) The municipality may consider intangible benefits received by the municipality in
             6543      determining net value received.
             6544          (d) Prior to the municipal legislative body making any decision to appropriate any funds
             6545      for a corporate purpose under this section, a public hearing shall be held. Notice of the hearing
             6546      shall be published in a newspaper of general circulation at least 14 days prior to the date of the
             6547      hearing, or, if there is no newspaper of general circulation, by posting notice in at least three
             6548      conspicuous places within the municipality for the same time period.
             6549          (e) A study shall be performed before notice of the public hearing is given and shall be
             6550      made available at the municipality for review by interested parties at least 14 days immediately
             6551      prior to the public hearing, setting forth an analysis and demonstrating the purpose for the
             6552      appropriation. In making the study, the following factors shall be considered:
             6553          (i) what identified benefit the municipality will receive in return for any money or

             6554      resources appropriated;
             6555          (ii) the municipality's purpose for the appropriation, including an analysis of the way the
             6556      appropriation will be used to enhance the safety, health, prosperity, moral well-being, peace,
             6557      order, comfort, or convenience of the inhabitants of the municipality; and
             6558          (iii) whether the appropriation is necessary and appropriate to accomplish the
             6559      reasonable goals and objectives of the municipality in the area of economic development, job
             6560      creation, affordable housing, blight elimination, job preservation, the preservation of historic
             6561      structures and property, and any other public purpose.
             6562          (f) (i) An appeal may be taken from a final decision of the municipal legislative body, to
             6563      make an appropriation.
             6564          (ii) The appeal shall be filed within 30 days after the date of that decision, to the district
             6565      court.
             6566          (iii) Any appeal shall be based on the record of the proceedings before the legislative
             6567      body.
             6568          (iv) A decision of the municipal legislative body shall be presumed to be valid unless the
             6569      appealing party shows that the decision was arbitrary, capricious, or illegal.
             6570          (g) The provisions of this Subsection (3) apply only to those appropriations made after
             6571      May 6, 2002.
             6572          (h) This section applies only to appropriations not otherwise approved pursuant to Title
             6573      10, Chapter 5, Uniform Fiscal Procedures Act for Utah Towns, or Title 10, Chapter 6, Uniform
             6574      Fiscal Procedures Act for Utah Cities.
             6575          (4) (a) Before a municipality may dispose of a significant parcel of real property, the
             6576      municipality shall:
             6577          (i) provide reasonable notice of the proposed disposition at least 14 days before the
             6578      opportunity for public comment under Subsection (4)(a)(ii); and
             6579          (ii) allow an opportunity for public comment on the proposed disposition.
             6580          (b) Each municipality shall, by ordinance, define what constitutes:
             6581          (i) a significant parcel of real property for purposes of Subsection (4)(a); and

             6582          (ii) reasonable notice for purposes of Subsection (4)(a)(i).
             6583          (5) (a) Except as provided in Subsection (5)(d), each municipality intending to acquire
             6584      real property for the purpose of expanding the municipality's infrastructure or other facilities
             6585      used for providing services that the municipality offers or intends to offer shall provide written
             6586      notice, as provided in this Subsection (5), of its intent to acquire the property if:
             6587          (i) the property is located:
             6588          (A) outside the boundaries of the municipality; and
             6589          (B) in a county of the first or second class; and
             6590          (ii) the intended use of the property is contrary to:
             6591          (A) the anticipated use of the property under the general plan of the county in whose
             6592      unincorporated area or the municipality in whose boundaries the property is located; or
             6593          (B) the property's current zoning designation.
             6594          (b) Each notice under Subsection (5)(a) shall:
             6595          (i) indicate that the municipality intends to acquire real property;
             6596          (ii) identify the real property; and
             6597          (iii) be sent to:
             6598          (A) each county in whose unincorporated area and each municipality in whose
             6599      boundaries the property is located; and
             6600          (B) each affected entity.
             6601          (c) A notice under this Subsection (5) is a protected record as provided in Subsection
             6602      [ 63-2-304 ] 63G-2-305 (7).
             6603          (d) (i) The notice requirement of Subsection (5)(a) does not apply if the municipality
             6604      previously provided notice under Section 10-9a-203 identifying the general location within the
             6605      municipality or unincorporated part of the county where the property to be acquired is located.
             6606          (ii) If a municipality is not required to comply with the notice requirement of Subsection
             6607      (5)(a) because of application of Subsection (5)(d)(i), the municipality shall provide the notice
             6608      specified in Subsection (5)(a) as soon as practicable after its acquisition of the real property.
             6609          Section 104. Section 10-8-58.5 is amended to read:

             6610           10-8-58.5. Contracting for management, maintenance, operation, or construction
             6611      of jails.
             6612          (1) (a) The governing body of a city or town may contract with private contractors for
             6613      management, maintenance, operation, and construction of city jails.
             6614          (b) The governing body may include a provision in the contract that requires that any
             6615      jail facility meet any federal, state, or local standards for the construction of jails.
             6616          (2) If the governing body contracts only for the management, maintenance, or operation
             6617      of a jail, the governing body shall include provisions in the contract that:
             6618          (a) require the private contractor to post a performance bond in the amount set by the
             6619      governing body;
             6620          (b) establish training standards that must be met by jail personnel;
             6621          (c) require the private contractor to provide and fund training for jail personnel so that
             6622      the personnel meet the standards established in the contract and any other federal, state, or local
             6623      standards for the operation of jails and the treatment of jail prisoners;
             6624          (d) require the private contractor to indemnify the city or town for errors, omissions,
             6625      defalcations, and other activities committed by the private contractor that result in liability to the
             6626      city or town;
             6627          (e) require the private contractor to show evidence of liability insurance protecting the
             6628      city or town and its officers, employees, and agents from liability arising from the construction,
             6629      operation, or maintenance of the jail, in an amount not less than those specified in [Title 63,
             6630      Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah;
             6631          (f) require the private contractor to:
             6632          (i) receive all prisoners committed to the jail by competent authority; and
             6633          (ii) provide them with necessary food, clothing, and bedding in the manner prescribed
             6634      by the governing body; and
             6635          (g) prohibit the use of inmates by the private contractor for private business purposes of
             6636      any kind.
             6637          (3) A contractual provision requiring the private contractor to maintain liability

             6638      insurance in an amount not less than the liability limits established by [Title 63, Chapter 30d]
             6639      Title 63G, Chapter 7, Governmental Immunity Act of Utah, may not be construed as waiving
             6640      the limitation on damages recoverable from a governmental entity or its employees established
             6641      by that chapter.
             6642          Section 105. Section 10-9a-203 is amended to read:
             6643           10-9a-203. Notice of intent to prepare a general plan or comprehensive general
             6644      plan amendments in certain municipalities.
             6645          (1) Before preparing a proposed general plan or a comprehensive general plan
             6646      amendment, each municipality within a county of the first or second class shall provide ten
             6647      calendar days notice of its intent to prepare a proposed general plan or a comprehensive general
             6648      plan amendment to:
             6649          (a) each affected entity;
             6650          (b) the Automated Geographic Reference Center created in Section 63F-1-506 ;
             6651          (c) the association of governments, established pursuant to an interlocal agreement
             6652      under Title 11, Chapter 13, Interlocal Cooperation Act, of which the municipality is a member;
             6653      and
             6654          (d) the state planning coordinator appointed under Section [ 63-38d-202 ] 63J-4-202 .
             6655          (2) Each notice under Subsection (1) shall:
             6656          (a) indicate that the municipality intends to prepare a general plan or a comprehensive
             6657      general plan amendment, as the case may be;
             6658          (b) describe or provide a map of the geographic area that will be affected by the general
             6659      plan or amendment;
             6660          (c) be sent by mail, e-mail, or other effective means;
             6661          (d) invite the affected entities to provide information for the municipality to consider in
             6662      the process of preparing, adopting, and implementing a general plan or amendment concerning:
             6663          (i) impacts that the use of land proposed in the proposed general plan or amendment
             6664      may have; and
             6665          (ii) uses of land within the municipality that the affected entity is considering that may

             6666      conflict with the proposed general plan or amendment; and
             6667          (e) include the address of an Internet website, if the municipality has one, and the name
             6668      and telephone number of a person where more information can be obtained concerning the
             6669      municipality's proposed general plan or amendment.
             6670          Section 106. Section 10-9a-402 is amended to read:
             6671           10-9a-402. Information and technical assistance from the state.
             6672          Each state official, department, and agency shall:
             6673          (1) promptly deliver any data and information requested by a municipality unless the
             6674      disclosure is prohibited by [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             6675      Access and Management Act; and
             6676          (2) furnish any other technical assistance and advice that they have available to the
             6677      municipality without additional cost to the municipality.
             6678          Section 107. Section 10-18-302 is amended to read:
             6679           10-18-302. Bonding authority.
             6680          (1) In accordance with Title 11, Chapter 14, Local Government Bonding Act, the
             6681      legislative body of a municipality may by resolution determine to issue one or more revenue
             6682      bonds or general obligation bonds to finance the capital costs for facilities necessary to provide
             6683      to subscribers:
             6684          (a) a cable television service; or
             6685          (b) a public telecommunications service.
             6686          (2) The resolution described in Subsection (1) shall:
             6687          (a) describe the purpose for which the indebtedness is to be created; and
             6688          (b) specify the dollar amount of the one or more bonds proposed to be issued.
             6689          (3) (a) A revenue bond issued under this section shall be secured and paid for:
             6690          (i) from the revenues generated by the municipality from providing:
             6691          (A) cable television services with respect to revenue bonds issued to finance facilities
             6692      for the municipality's cable television services; and
             6693          (B) public telecommunications services with respect to revenue bonds issued to finance

             6694      facilities for the municipality's public telecommunications services; and
             6695          (ii) notwithstanding Subsection (3)(b) and Subsection 10-18-303 (3)(a), from revenues
             6696      generated under Title 59, Chapter 12, Sales and Use Tax Act, if:
             6697          (A) notwithstanding Subsection 11-14-201 (3) and except as provided in Subsections
             6698      (4) and (5), the revenue bond is approved by the registered voters in an election held:
             6699          (I) except as provided in Subsection (3)(a)(ii)(A)(II), pursuant to the provisions of Title
             6700      11, Chapter 14, Local Government Bonding Act, that govern bond elections; and
             6701          (II) notwithstanding Subsection 11-14-203 (2), at a regular general election;
             6702          (B) the revenues described in this Subsection (3)(a)(ii) are pledged as security for the
             6703      revenue bond; and
             6704          (C) the municipality or municipalities annually appropriate the revenues described in this
             6705      Subsection (3)(a)(ii) to secure and pay the revenue bond issued under this section.
             6706          (b) Except as provided in Subsection (3)(a)(ii), a municipality may not pay the
             6707      origination, financing, or other carrying costs associated with the one or more revenue bonds
             6708      issued under this section from the general funds or other enterprise funds of the municipality.
             6709          (4) (a) As used in this Subsection (4), "municipal entity" means an entity created
             6710      pursuant to an agreement:
             6711          (i) under Title 11, Chapter 13, Interlocal Cooperation Act; and
             6712          (ii) to which a municipality is a party.
             6713          (b) The requirements of Subsection (3)(a)(ii)(A) do not apply to a municipality or
             6714      municipal entity that issues revenue bonds, or to a municipality that is a member of a municipal
             6715      entity that issues revenue bonds, if:
             6716          (i) on or before March 2, 2004, the municipality that is issuing revenue bonds or that is
             6717      a member of a municipal entity that is issuing revenue bonds has published the first notice
             6718      described in Subsection (4)(b)(iii);
             6719          (ii) on or before April 15, 2004, the municipality that is issuing revenue bonds or that is
             6720      a member of a municipal entity that is issuing revenue bonds makes the decision to pledge the
             6721      revenues described in Subsection (3)(a)(ii) as security for the revenue bonds described in this

             6722      Subsection (4)(b)(ii);
             6723          (iii) the municipality that is issuing the revenue bonds or the municipality that is a
             6724      member of the municipal entity that is issuing the revenue bonds has:
             6725          (A) held a public hearing for which public notice was given by publication of the notice
             6726      in a newspaper published in the municipality or in a newspaper of general circulation within the
             6727      municipality for two consecutive weeks, with the first publication being not less than 14 days
             6728      before the public hearing; and
             6729          (B) the notice identifies:
             6730          (I) that the notice is given pursuant to Title 11, Chapter 14, Local Government Bonding
             6731      Act;
             6732          (II) the purpose for the bonds to be issued;
             6733          (III) the maximum amount of the revenues described in Subsection (3)(a)(ii) that will be
             6734      pledged in any fiscal year;
             6735          (IV) the maximum number of years that the pledge will be in effect; and
             6736          (V) the time, place, and location for the public hearing;
             6737          (iv) the municipal entity that issues revenue bonds:
             6738          (A) adopts a final financing plan; and
             6739          (B) in accordance with [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             6740      Records Access and Management Act, makes available to the public at the time the municipal
             6741      entity adopts the final financing plan:
             6742          (I) the final financing plan; and
             6743          (II) all contracts entered into by the municipal entity, except as protected by [Title 63,
             6744      Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act;
             6745          (v) any municipality that is a member of a municipal entity described in Subsection
             6746      (4)(b)(iv):
             6747          (A) not less than 30 calendar days after the municipal entity complies with Subsection
             6748      (4)(b)(iv)(B), holds a final public hearing;
             6749          (B) provides notice, at the time the municipality schedules the final public hearing, to

             6750      any person who has provided to the municipality a written request for notice; and
             6751          (C) makes all reasonable efforts to provide fair opportunity for oral testimony by all
             6752      interested parties; and
             6753          (vi) except with respect to a municipality that issued bonds prior to March 1, 2004, not
             6754      more than 50% of the average annual debt service of all revenue bonds described in this section
             6755      to provide service throughout the municipality or municipal entity may be paid from the
             6756      revenues described in Subsection (3)(a)(ii).
             6757          (5) On or after July 1, 2007, the requirements of Subsection (3)(a)(ii)(A) do not apply
             6758      to a municipality that issues revenue bonds if:
             6759          (a) the municipality that is issuing the revenue bonds has:
             6760          (i) held a public hearing for which public notice was given by publication of the notice
             6761      in a newspaper published in the municipality or in a newspaper of general circulation within the
             6762      municipality for two consecutive weeks, with the first publication being not less than 14 days
             6763      before the public hearing; and
             6764          (ii) the notice identifies:
             6765          (A) that the notice is given pursuant to Title 11, Chapter 14, Local Government
             6766      Bonding Act;
             6767          (B) the purpose for the bonds to be issued;
             6768          (C) the maximum amount of the revenues described in Subsection (3)(a)(ii) that will be
             6769      pledged in any fiscal year;
             6770          (D) the maximum number of years that the pledge will be in effect; and
             6771          (E) the time, place, and location for the public hearing; and
             6772          (b) except with respect to a municipality that issued bonds prior to March 1, 2004, not
             6773      more than 50% of the average annual debt service of all revenue bonds described in this section
             6774      to provide service throughout the municipality or municipal entity may be paid from the
             6775      revenues described in Subsection (3)(a)(ii).
             6776          (6) A municipality that issues bonds pursuant to this section may not make or grant any
             6777      undue or unreasonable preference or advantage to itself or to any private provider of:

             6778          (a) cable television services; or
             6779          (b) public telecommunications services.
             6780          Section 108. Section 11-13-222 is amended to read:
             6781           11-13-222. Officers and employees performing services under agreements.
             6782          (1) Each officer and employee performing services for two or more public agencies
             6783      under an agreement under this chapter shall be considered to be:
             6784          (a) an officer or employee of the public agency employing the officer or employee's
             6785      services even though the officer or employee performs those functions outside of the territorial
             6786      limits of any one of the contracting public agencies; and
             6787          (b) an officer or employee of the public agencies under the provisions of [Title 63,
             6788      Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah.
             6789          (2) Unless otherwise provided in an agreement that creates an interlocal entity, each
             6790      employee of a public agency that is a party to the agreement shall:
             6791          (a) remain an employee of that public agency, even though assigned to perform services
             6792      for another public agency under the agreement; and
             6793          (b) continue to be governed by the rules, rights, entitlements, and status that apply to an
             6794      employee of that public agency.
             6795          (3) All of the privileges, immunities from liability, exemptions from laws, ordinances,
             6796      and rules, pensions and relief, disability, workers compensation, and other benefits that apply to
             6797      an officer, agent, or employee of a public agency while performing functions within the
             6798      territorial limits of the public agency apply to the same degree and extent when the officer,
             6799      agent, or employee performs functions or duties under the agreement outside the territorial
             6800      limits of that public agency.
             6801          Section 109. Section 11-13-302 is amended to read:
             6802           11-13-302. Payment of fee in lieu of ad valorem property tax by certain energy
             6803      suppliers -- Method of calculating -- Collection -- Extent of tax lien.
             6804          (1) (a) Each project entity created under this chapter that owns a project and that sells
             6805      any capacity, service, or other benefit from it to an energy supplier or suppliers whose tangible

             6806      property is not exempted by Utah Constitution Article XIII, Section 3, from the payment of ad
             6807      valorem property tax, shall pay an annual fee in lieu of ad valorem property tax as provided in
             6808      this section to each taxing jurisdiction within which the project or any part of it is located.
             6809          (b) For purposes of this section, "annual fee" means the annual fee described in
             6810      Subsection (1)(a) that is in lieu of ad valorem property tax.
             6811          (c) The requirement to pay an annual fee shall commence:
             6812          (i) with respect to each taxing jurisdiction that is a candidate receiving the benefit of
             6813      impact alleviation payments under contracts or determination orders provided for in Sections
             6814      11-13-305 and 11-13-306 , with the fiscal year of the candidate following the fiscal year of the
             6815      candidate in which the date of commercial operation of the last generating unit, other than any
             6816      generating unit providing additional project capacity, of the project occurs, or, in the case of
             6817      any facilities providing additional project capacity, with the fiscal year of the candidate
             6818      following the fiscal year of the candidate in which the date of commercial operation of the
             6819      generating unit providing the additional project capacity occurs; and
             6820          (ii) with respect to any taxing jurisdiction other than a taxing jurisdiction described in
             6821      Subsection (1)(c)(i), with the fiscal year of the taxing jurisdiction in which construction of the
             6822      project commences, or, in the case of facilities providing additional project capacity, with the
             6823      fiscal year of the taxing jurisdiction in which construction of those facilities commences.
             6824          (d) The requirement to pay an annual fee shall continue for the period of the useful life
             6825      of the project or facilities.
             6826          (2) (a) The annual fees due a school district shall be as provided in Subsection (2)(b)
             6827      because the ad valorem property tax imposed by a school district and authorized by the
             6828      Legislature under Section 53A-17a-135 represents both:
             6829          (i) a levy mandated by the state for the state minimum school program under Section
             6830      53A-17a-135 ; and
             6831          (ii) local levies for capital outlay, maintenance, transportation, and other purposes under
             6832      Sections 11-2-7 , 53A-16-107 , 53A-16-110 , 53A-17a-126 , 53A-17a-127 , 53A-17a-133 ,
             6833      53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 .

             6834          (b) The annual fees due a school district shall be as follows:
             6835          (i) the project entity shall pay to the school district an annual fee for the state minimum
             6836      school program at the rate imposed by the school district and authorized by the Legislature
             6837      under Subsection 53A-17a-135 (1); and
             6838          (ii) for all other local property tax levies authorized to be imposed by a school district,
             6839      the project entity shall pay to the school district either:
             6840          (A) an annual fee; or
             6841          (B) impact alleviation payments under contracts or determination orders provided for in
             6842      Sections 11-13-305 and 11-13-306 .
             6843          (3) (a) An annual fee due a taxing jurisdiction for a particular year shall be calculated by
             6844      multiplying the tax rate or rates of the jurisdiction for that year by the product obtained by
             6845      multiplying the fee base or value determined in accordance with Subsection (4) for that year of
             6846      the portion of the project located within the jurisdiction by the percentage of the project which
             6847      is used to produce the capacity, service, or other benefit sold to the energy supplier or suppliers.
             6848          (b) As used in this section, "tax rate," when applied in respect to a school district,
             6849      includes any assessment to be made by the school district under Subsection (2) or Section
             6850      [ 63-51-6 ] 63M-5-302 .
             6851          (c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
             6852      an amount equal to the debt service, if any, payable in that year by the project entity on bonds,
             6853      the proceeds of which were used to provide public facilities and services for impact alleviation
             6854      in the taxing jurisdiction in accordance with Sections 11-13-305 and 11-13-306 .
             6855          (d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
             6856          (i) take into account the fee base or value of the percentage of the project located
             6857      within the taxing jurisdiction determined in accordance with Subsection (4) used to produce the
             6858      capacity, service, or other benefit sold to the supplier or suppliers; and
             6859          (ii) reflect any credit to be given in that year.
             6860          (4) (a) Except as otherwise provided in this section, the annual fees required by this
             6861      section shall be paid, collected, and distributed to the taxing jurisdiction as if:

             6862          (i) the annual fees were ad valorem property taxes; and
             6863          (ii) the project were assessed at the same rate and upon the same measure of value as
             6864      taxable property in the state.
             6865          (b) (i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by this
             6866      section, the fee base of a project may be determined in accordance with an agreement among:
             6867          (A) the project entity; and
             6868          (B) any county that:
             6869          (I) is due an annual fee from the project entity; and
             6870          (II) agrees to have the fee base of the project determined in accordance with the
             6871      agreement described in this Subsection (4).
             6872          (ii) The agreement described in Subsection (4)(b)(i):
             6873          (A) shall specify each year for which the fee base determined by the agreement shall be
             6874      used for purposes of an annual fee; and
             6875          (B) may not modify any provision of this chapter except the method by which the fee
             6876      base of a project is determined for purposes of an annual fee.
             6877          (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
             6878      described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
             6879      Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
             6880      jurisdiction.
             6881          (iv) (A) If there is not agreement as to the fee base of a portion of a project for any
             6882      year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
             6883      portion of the project for which there is not an agreement:
             6884          (I) for that year; and
             6885          (II) using the same measure of value as is used for taxable property in the state.
             6886          (B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax
             6887      Commission in accordance with rules made by the State Tax Commission.
             6888          (c) Payments of the annual fees shall be made from:
             6889          (i) the proceeds of bonds issued for the project; and

             6890          (ii) revenues derived by the project entity from the project.
             6891          (d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
             6892      other benefits of the project whose tangible property is not exempted by Utah Constitution
             6893      Article XIII, Section 3, from the payment of ad valorem property tax shall require each
             6894      purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,
             6895      its share, determined in accordance with the terms of the contract, of these fees.
             6896          (ii) It is the responsibility of the project entity to enforce the obligations of the
             6897      purchasers.
             6898          (5) (a) The responsibility of the project entity to make payment of the annual fees is
             6899      limited to the extent that there is legally available to the project entity, from bond proceeds or
             6900      revenues, monies to make these payments, and the obligation to make payments of the annual
             6901      fees is not otherwise a general obligation or liability of the project entity.
             6902          (b) No tax lien may attach upon any property or money of the project entity by virtue of
             6903      any failure to pay all or any part of an annual fee.
             6904          (c) The project entity or any purchaser may contest the validity of an annual fee to the
             6905      same extent as if the payment was a payment of the ad valorem property tax itself.
             6906          (d) The payments of an annual fee shall be reduced to the extent that any contest is
             6907      successful.
             6908          (6) (a) The annual fee described in Subsection (1):
             6909          (i) shall be paid by a public agency that:
             6910          (A) is not a project entity; and
             6911          (B) owns an interest in a facility providing additional project capacity if the interest is
             6912      otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3; and
             6913          (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
             6914      accordance with Subsection (6)(b).
             6915          (b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax
             6916      rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:
             6917          (i) the fee base or value of the facility providing additional project capacity located

             6918      within the jurisdiction;
             6919          (ii) the percentage of the ownership interest of the public agency in the facility; and
             6920          (iii) the portion, expressed as a percentage, of the public agency's ownership interest
             6921      that is attributable to the capacity, service, or other benefit from the facility that is sold by the
             6922      public agency to an energy supplier or suppliers whose tangible property is not exempted by
             6923      Utah Constitution, Article XIII, Section 3, from the payment of ad valorem property tax.
             6924          (c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
             6925      obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect
             6926      to its ownership interest as though it were a project entity.
             6927          Section 110. Section 11-13-303 is amended to read:
             6928           11-13-303. Source of project entity's payment of sales and use tax -- Gross
             6929      receipts taxes for facilities providing additional project capacity.
             6930          (1) A project entity is not exempt from sales and use taxes under Title 59, Chapter 12,
             6931      Sales and Use Tax Act, to the extent provided in Subsection 59-12-104 (2).
             6932          (2) A project entity may make payments or prepayments of sales and use taxes, as
             6933      provided in [Title 63, Chapter 51] Title 63M, Chapter 5, Resource Development, from the
             6934      proceeds of revenue bonds issued under Section 11-13-218 or other revenues of the project
             6935      entity.
             6936          (3) (a) This Subsection (3) applies with respect to facilities providing additional project
             6937      capacity.
             6938          (b) (i) The in lieu excise tax imposed under Title 59, Chapter 8, Gross Receipts Tax on
             6939      Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, shall be
             6940      imposed collectively on all gross receipts derived with respect to the ownership interests of all
             6941      project entities and other public agencies in facilities providing additional project capacity as
             6942      though all such ownership interests were held by a single project entity.
             6943          (ii) The in lieu excise tax shall be calculated as though the gross receipts derived with
             6944      respect to all such ownership interests were received by a single taxpayer that has no other
             6945      gross receipts.

             6946          (iii) The gross receipts attributable to such ownership interests shall consist solely of
             6947      gross receipts that are expended by each project entity and other public agency holding an
             6948      ownership interest in the facilities for the operation or maintenance of or ordinary repairs or
             6949      replacements to the facilities.
             6950          (iv) For purposes of calculating the in lieu excise tax, the determination of whether
             6951      there is a tax rate and, if so, what the tax rate is shall be governed by Section 59-8-104 , except
             6952      that the $10,000,000 figures in Section 59-8-104 indicating the amount of gross receipts that
             6953      determine the applicable tax rate shall be replaced with $5,000,000.
             6954          (c) Each project entity and public agency owning an interest in the facilities providing
             6955      additional project capacity shall be liable only for the portion of the gross receipts tax referred
             6956      to in Subsection (3)(b) that is proportionate to its percentage ownership interest in the facilities
             6957      and may not be liable for any other gross receipts taxes with respect to its percentage ownership
             6958      interest in the facilities.
             6959          (d) No project entity or other public agency that holds an ownership interest in the
             6960      facilities may be subject to the taxes imposed under Title 59, Chapter 7, Corporate Franchise
             6961      and Income Taxes, with respect to those facilities.
             6962          (4) For purposes of calculating the gross receipts tax imposed on a project entity or
             6963      other public agency under Title 59, Chapter 8, Gross Receipts Tax on Certain Corporations Not
             6964      Required to Pay Corporate Franchise or Income Tax Act, or Subsection (3), gross receipts
             6965      include only gross receipts from the first sale of capacity, services, or other benefits and do not
             6966      include gross receipts from any subsequent sale, resale, or layoff of the capacity, services, or
             6967      other benefits.
             6968          Section 111. Section 11-17-20 is amended to read:
             6969           11-17-20. Power of the State Charter School Finance Authority.
             6970          (1) The State Charter School Finance Authority may exercise the powers granted to
             6971      municipalities and counties by this chapter, subject to the same limitations as that imposed on a
             6972      municipality or county under the chapter, except as provided by Title 53A, Chapter 20b, State
             6973      Charter School Finance Authority Act.

             6974          (2) As used in this chapter, "governing body" when applied to the State Charter School
             6975      Finance Authority means the authority's governing board as described in Section 53A-20b-103 .
             6976          (3) Notwithstanding Section 11-17-15 , a charter school that receives financing under
             6977      this chapter is subject to [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code.
             6978          Section 112. Section 11-36-201 is amended to read:
             6979           11-36-201. Impact fees -- Analysis -- Capital facilities plan -- Notice of plan --
             6980      Summary -- Exemptions.
             6981          (1) (a) Each local political subdivision and private entity shall comply with the
             6982      requirements of this chapter before establishing or modifying any impact fee.
             6983          (b) A local political subdivision may not:
             6984          (i) establish any new impact fees that are not authorized by this chapter; or
             6985          (ii) impose or charge any other fees as a condition of development approval unless
             6986      those fees are a reasonable charge for the service provided.
             6987          (c) Notwithstanding any other requirements of this chapter, each local political
             6988      subdivision shall ensure that each existing impact fee that is charged for any public facility not
             6989      authorized by Subsection 11-36-102 (12) is repealed by July 1, 1995.
             6990          (d) (i) Existing impact fees for public facilities authorized in Subsection 11-36-102 (12)
             6991      that are charged by local political subdivisions need not comply with the requirements of this
             6992      chapter until July 1, 1997.
             6993          (ii) By July 1, 1997, each local political subdivision shall:
             6994          (A) review any impact fees in existence as of the effective date of this act, and prepare
             6995      and approve the analysis required by this section for each of those impact fees; and
             6996          (B) ensure that the impact fees comply with the requirements of this chapter.
             6997          (2) (a) Before imposing impact fees, each local political subdivision shall prepare a
             6998      capital facilities plan.
             6999          (b) (i) As used in this Subsection (2)(b):
             7000          (A) (I) "Affected entity" means each county, municipality, local district under Title 17B,
             7001      Limited Purpose Local Government Entities - Local Districts, special service district under Title

             7002      17A, Chapter 2, Part 13, Utah Special Service District Act, school district, interlocal
             7003      cooperation entity established under Chapter 13, Interlocal Cooperation Act, and specified
             7004      public utility:
             7005          (Aa) whose services or facilities are likely to require expansion or significant
             7006      modification because of the facilities proposed in the proposed capital facilities plan; or
             7007          (Bb) that has filed with the local political subdivision or private entity a copy of the
             7008      general or long-range plan of the county, municipality, local district, special service district,
             7009      school district, interlocal cooperation entity, or specified public utility.
             7010          (II) "Affected entity" does not include the local political subdivision or private entity
             7011      that is required under this Subsection (2) to provide notice.
             7012          (B) "Specified public utility" means an electrical corporation, gas corporation, or
             7013      telephone corporation, as those terms are defined in Section 54-2-1 .
             7014          (ii) Before preparing a capital facilities plan for facilities proposed on land located
             7015      within a county of the first or second class, each local political subdivision and each private
             7016      entity shall provide written notice, as provided in this Subsection (2)(b), of its intent to prepare
             7017      a capital facilities plan.
             7018          (iii) Each notice under Subsection (2)(b)(ii) shall:
             7019          (A) indicate that the local political subdivision or private entity intends to prepare a
             7020      capital facilities plan;
             7021          (B) describe or provide a map of the geographic area where the proposed capital
             7022      facilities will be located;
             7023          (C) be sent to:
             7024          (I) each county in whose unincorporated area and each municipality in whose
             7025      boundaries is located the land on which the proposed facilities will be located;
             7026          (II) each affected entity;
             7027          (III) the Automated Geographic Reference Center created in Section 63F-1-506 ;
             7028          (IV) the association of governments, established pursuant to an interlocal agreement
             7029      under Title 11, Chapter 13, Interlocal Cooperation Act, in which the facilities are proposed to

             7030      be located; and
             7031          (V) the state planning coordinator appointed under Section [ 63-38d-202 ] 63J-4-202 ;
             7032      and
             7033          (D) with respect to the notice to affected entities, invite the affected entities to provide
             7034      information for the local political subdivision or private entity to consider in the process of
             7035      preparing, adopting, and implementing a capital facilities plan concerning:
             7036          (I) impacts that the facilities proposed in the capital facilities plan may have on the
             7037      affected entity; and
             7038          (II) facilities or uses of land that the affected entity is planning or considering that may
             7039      conflict with the facilities proposed in the capital facilities plan.
             7040          (c) The plan shall identify:
             7041          (i) demands placed upon existing public facilities by new development activity; and
             7042          (ii) the proposed means by which the local political subdivision will meet those
             7043      demands.
             7044          (d) Municipalities and counties need not prepare a separate capital facilities plan if the
             7045      general plan required by Sections 10-9a-401 and 17-27a-401 contains the elements required by
             7046      Subsection (2)(c).
             7047          (e) (i) If a local political subdivision prepares an independent capital facilities plan rather
             7048      than including a capital facilities element in the general plan, the local political subdivision shall,
             7049      before adopting the capital facilities plan:
             7050          (A) give public notice of the plan according to this Subsection (2)(e);
             7051          (B) at least 14 days before the date of the public hearing:
             7052          (I) make a copy of the plan, together with a summary designed to be understood by a
             7053      lay person, available to the public; and
             7054          (II) place a copy of the plan and summary in each public library within the local political
             7055      subdivision; and
             7056          (C) hold a public hearing to hear public comment on the plan.
             7057          (ii) Municipalities shall comply with the notice and hearing requirements of, and, except

             7058      as provided in Subsection 11-36-401 (4)(f), receive the protections of Sections 10-9a-205 and
             7059      10-9a-801 and Subsection 10-9a-502 (2).
             7060          (iii) Counties shall comply with the notice and hearing requirements of, and, except as
             7061      provided in Subsection 11-36-401 (4)(f), receive the protections of Sections 17-27a-205 and
             7062      17-27a-801 and Subsection 17-27a-502 (2).
             7063          (iv) Local districts, special service districts, and private entities shall comply with the
             7064      notice and hearing requirements of, and receive the protections of, Section 17B-1-111 .
             7065          (v) Nothing contained in this Subsection (2)(e) or in the subsections referenced in
             7066      Subsections (2)(e)(ii) and (iii) may be construed to require involvement by a planning
             7067      commission in the capital facilities planning process.
             7068          (f) (i) Local political subdivisions with a population or serving a population of less than
             7069      5,000 as of the last federal census need not comply with the capital facilities plan requirements
             7070      of this part, but shall ensure that the impact fees imposed by them are based upon a reasonable
             7071      plan.
             7072          (ii) Subsection (2)(f)(i) does not apply to private entities.
             7073          (3) In preparing the plan, each local political subdivision shall generally consider all
             7074      revenue sources, including impact fees, to finance the impacts on system improvements.
             7075          (4) A local political subdivision may only impose impact fees on development activities
             7076      when its plan for financing system improvements establishes that impact fees are necessary to
             7077      achieve an equitable allocation to the costs borne in the past and to be borne in the future, in
             7078      comparison to the benefits already received and yet to be received.
             7079          (5) (a) Each local political subdivision imposing impact fees shall prepare a written
             7080      analysis of each impact fee that:
             7081          (i) identifies the impact on system improvements required by the development activity;
             7082          (ii) demonstrates how those impacts on system improvements are reasonably related to
             7083      the development activity;
             7084          (iii) estimates the proportionate share of the costs of impacts on system improvements
             7085      that are reasonably related to the new development activity; and

             7086          (iv) based upon those factors and the requirements of this chapter, identifies how the
             7087      impact fee was calculated.
             7088          (b) In analyzing whether or not the proportionate share of the costs of public facilities
             7089      are reasonably related to the new development activity, the local political subdivision shall
             7090      identify, if applicable:
             7091          (i) the cost of existing public facilities;
             7092          (ii) the manner of financing existing public facilities, such as user charges, special
             7093      assessments, bonded indebtedness, general taxes, or federal grants;
             7094          (iii) the relative extent to which the newly developed properties and the other properties
             7095      in the municipality have already contributed to the cost of existing public facilities, by such
             7096      means as user charges, special assessments, or payment from the proceeds of general taxes;
             7097          (iv) the relative extent to which the newly developed properties and the other properties
             7098      in the municipality will contribute to the cost of existing public facilities in the future;
             7099          (v) the extent to which the newly developed properties are entitled to a credit because
             7100      the municipality is requiring their developers or owners, by contractual arrangement or
             7101      otherwise, to provide common facilities, inside or outside the proposed development, that have
             7102      been provided by the municipality and financed through general taxation or other means, apart
             7103      from user charges, in other parts of the municipality;
             7104          (vi) extraordinary costs, if any, in servicing the newly developed properties; and
             7105          (vii) the time-price differential inherent in fair comparisons of amounts paid at different
             7106      times.
             7107          (c) Each local political subdivision that prepares a written analysis under this Subsection
             7108      (5) on or after July 1, 2000 shall also prepare a summary of the written analysis, designed to be
             7109      understood by a lay person.
             7110          (6) Each local political subdivision that adopts an impact fee enactment under Section
             7111      11-36-202 on or after July 1, 2000 shall, at least 14 days before adopting the enactment, submit
             7112      to each public library within the local political subdivision:
             7113          (a) a copy of the written analysis required by Subsection (5)(a); and

             7114          (b) a copy of the summary required by Subsection (5)(c).
             7115          (7) Nothing in this chapter may be construed to repeal or otherwise eliminate any
             7116      impact fee in effect on the effective date of this chapter that is pledged as a source of revenues
             7117      to pay bonded indebtedness that was incurred before the effective date of this chapter.
             7118          Section 113. Section 11-36-402 is amended to read:
             7119           11-36-402. Challenging an impact fee by arbitration -- Procedure -- Appeal --
             7120      Costs.
             7121          (1) Each person or entity intending to challenge an impact fee under Subsection
             7122      11-36-401 (4)(c)(ii) shall file a written request for arbitration with the local political subdivision
             7123      within the time limitation provided in Subsection 11-36-401 (4)(b) for the applicable type of
             7124      challenge.
             7125          (2) If a person or entity files a written request for arbitration under Subsection (1), an
             7126      arbitrator or arbitration panel shall be selected as follows:
             7127          (a) the local political subdivision and the person or entity filing the request may agree
             7128      on a single arbitrator within ten days after the day the request for arbitration is filed; or
             7129          (b) if a single arbitrator is not agreed to in accordance with Subsection (2)(a), an
             7130      arbitration panel shall be created with the following members:
             7131          (i) each party shall select an arbitrator within 20 days after the date the request is filed;
             7132      and
             7133          (ii) the arbitrators selected under Subsection (2)(b)(i) shall select a third arbitrator.
             7134          (3) The arbitration panel shall hold a hearing on the challenge within 30 days after the
             7135      date:
             7136          (a) the single arbitrator is agreed on under Subsection (2)(a); or
             7137          (b) the two arbitrators are selected under Subsection (2)(b)(i).
             7138          (4) The arbitrator or arbitration panel shall issue a decision in writing within ten days
             7139      from the date the hearing under Subsection (3) is completed.
             7140          (5) Except as provided in this section, each arbitration shall be governed by Title 78,
             7141      Chapter 31a, Utah Uniform Arbitration Act.

             7142          (6) The parties may agree to:
             7143          (a) binding arbitration;
             7144          (b) formal, nonbinding arbitration; or
             7145          (c) informal, nonbinding arbitration.
             7146          (7) If the parties agree in writing to binding arbitration:
             7147          (a) the arbitration shall be binding;
             7148          (b) the decision of the arbitration panel shall be final;
             7149          (c) neither party may appeal the decision of the arbitration panel; and
             7150          (d) notwithstanding Subsection (10), the person or entity challenging the impact fee
             7151      may not also challenge the impact fee under Subsection 11-36-401 (1), (4)(c)(i), or (4)(c)(iii).
             7152          (8) (a) Except as provided in Subsection (8)(b), if the parties agree to formal,
             7153      nonbinding arbitration, the arbitration shall be governed by the provisions of [Title 63, Chapter
             7154      46b] Title 63G, Chapter 4, Administrative Procedures Act.
             7155          (b) For purposes of applying [Title 63, Chapter 46b] Title 63G, Chapter 4,
             7156      Administrative Procedures Act, to a formal, nonbinding arbitration under this section,
             7157      notwithstanding Section [ 63-46b-20 ] 63G-4-502 , "agency" means a local political subdivision.
             7158          (9) (a) An appeal from a decision in an informal, nonbinding arbitration may be filed
             7159      with the district court in which the local political subdivision is located.
             7160          (b) Each appeal under Subsection (9)(a) shall be filed within 30 days after the date the
             7161      arbitration panel issues a decision under Subsection (4).
             7162          (c) The district court shall consider de novo each appeal filed under this Subsection (9).
             7163          (d) Notwithstanding Subsection (10), a person or entity that files an appeal under this
             7164      Subsection (9) may not also challenge the impact fee under Subsection 11-36-401 (1), (4)(c)(i),
             7165      or (4)(c)(iii).
             7166          (10) (a) Except as provided in Subsections (7)(d) and (9)(d), this section may not be
             7167      construed to prohibit a person or entity from challenging an impact fee as provided in
             7168      Subsection 11-36-401 (1), (4)(c)(i), or (4)(c)(iii).
             7169          (b) The filing of a written request for arbitration within the required time in accordance

             7170      with Subsection (1) tolls all time limitations under Section 11-36-401 until the date the
             7171      arbitration panel issues a decision.
             7172          (11) The person or entity filing a request for arbitration and the local political
             7173      subdivision shall equally share all costs of an arbitration proceeding under this section.
             7174          Section 114. Section 11-37-101 is amended to read:
             7175           11-37-101. Definition -- Procurement -- Use of recycled goods.
             7176          (1) "Local government entity" means:
             7177          (a) municipalities, cities, and counties;
             7178          (b) entities created under Title 26A, Chapter 1, Local Health Departments; and
             7179          (c) political subdivisions created by cities or counties, including entities created under:
             7180          (i) Title 9, Chapter 4, Part 9, Utah Housing Corporation Act; and
             7181          (ii) Title 11, Chapter 13, Interlocal Cooperation Act.
             7182          (2) The procurement officer or other person responsible for purchasing supplies for
             7183      each local government entity shall:
             7184          (a) maintain for reference a copy of the current listing of recycled items available on
             7185      state contract as issued by the chief procurement officer under Section [ 63-56-204 ] 63G-6-204 ;
             7186      and
             7187          (b) give recycled items consideration when inviting bids and purchasing supplies.
             7188          Section 115. Section 11-38-102 is amended to read:
             7189           11-38-102. Definitions.
             7190          As used in this chapter:
             7191          (1) "Affordable housing" means housing occupied or reserved for occupancy by
             7192      households with a gross household income equal to or less than 80% of the median gross
             7193      income of the applicable municipal or county statistical area for households of the same size.
             7194          (2) "Agricultural land" has the same meaning as "land in agricultural use" under Section
             7195      59-2-502 .
             7196          (3) "Brownfield sites" means abandoned, idled, or underused commercial or industrial
             7197      land where expansion or redevelopment is complicated by real or perceived environmental

             7198      contamination.
             7199          (4) "Commission" means the Quality Growth Commission established in Section
             7200      11-38-201 .
             7201          (5) "Fund" means the LeRay McAllister Critical Land Conservation Fund established in
             7202      Section 11-38-301 .
             7203          (6) "Infill development" means residential, commercial, or industrial development on
             7204      unused or underused land, excluding open land and agricultural land, within existing, otherwise
             7205      developed urban areas.
             7206          (7) "Local entity" means a county, city, or town.
             7207          (8) "OPB" means the Governor's Office of Planning and Budget established under
             7208      Section [ 63-38d-201 ] 63J-4-201 .
             7209          (9) (a) "Open land" means land that is:
             7210          (i) preserved in or restored to a predominantly natural, open, and undeveloped
             7211      condition; and
             7212          (ii) used for:
             7213          (A) wildlife habitat;
             7214          (B) cultural or recreational use;
             7215          (C) watershed protection; or
             7216          (D) another use consistent with the preservation of the land in or restoration of the land
             7217      to a predominantly natural, open, and undeveloped condition.
             7218          (b) (i) "Open land" does not include land whose predominant use is as a developed
             7219      facility for active recreational activities, including baseball, tennis, soccer, golf, or other sporting
             7220      or similar activity.
             7221          (ii) The condition of land does not change from a natural, open, and undeveloped
             7222      condition because of the development or presence on the land of facilities, including trails,
             7223      waterways, and grassy areas, that:
             7224          (A) enhance the natural, scenic, or aesthetic qualities of the land; or
             7225          (B) facilitate the public's access to or use of the land for the enjoyment of its natural,

             7226      scenic, or aesthetic qualities and for compatible recreational activities.
             7227          (10) "Surplus land" means real property owned by the Department of Administrative
             7228      Services, the Department of Agriculture and Food, the Department of Natural Resources, or the
             7229      Department of Transportation that the individual department determines not to be necessary for
             7230      carrying out the mission of the department.
             7231          Section 116. Section 11-38-303 is amended to read:
             7232           11-38-303. Commission expenses -- Division of Finance responsibilities --
             7233      Investment of monies into the fund -- Interest to accrue to the fund.
             7234          (1) Commission expenses and the costs of administering loans from the fund, as
             7235      provided in Subsection (2), shall be paid from the fund.
             7236          (2) (a) The Division of Finance shall be responsible for the care, custody, safekeeping,
             7237      collection, and accounting for loans issued by the commission as provided in Section [ 63-65-4 ]
             7238      63B-1b-202 .
             7239          (b) The Division of Finance may charge to the fund the administrative costs incurred in
             7240      discharging the responsibilities imposed by Subsection (2)(a).
             7241          (3) The state treasurer shall invest all monies deposited into the fund, and all interest
             7242      from investing the monies shall accrue to the fund.
             7243          Section 117. Section 11-39-101 is amended to read:
             7244           11-39-101. Definitions.
             7245          As used in this chapter:
             7246          (1) "Bid limit" means:
             7247          (a) for a building improvement:
             7248          (i) for the year 2003, $40,000; and
             7249          (ii) for each year after 2003, the amount of the bid limit for the previous year, plus an
             7250      amount calculated by multiplying the amount of the bid limit for the previous year by the lesser
             7251      of 3% or the actual percent change in the Consumer Price Index during the previous calendar
             7252      year; and
             7253          (b) for a public works project:

             7254          (i) for the year 2003, $125,000; and
             7255          (ii) for each year after 2003, the amount of the bid limit for the previous year, plus an
             7256      amount calculated by multiplying the amount of the bid limit for the previous year by the lesser
             7257      of 3% or the actual percent change in the Consumer Price Index during the previous calendar
             7258      year.
             7259          (2) "Building improvement":
             7260          (a) means the construction or repair of a public building or structure; and
             7261          (b) does not include construction or repair at an international airport.
             7262          (3) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers
             7263      as published by the Bureau of Labor Statistics of the United States Department of Labor.
             7264          (4) "Design-build project":
             7265          (a) means a building improvement or public works project costing over $250,000 with
             7266      respect to which both the design and construction are provided for in a single contract with a
             7267      contractor or combination of contractors capable of providing design-build services; and
             7268          (b) does not include a building improvement or public works project:
             7269          (i) that is undertaken by a local entity under contract with a construction manager that
             7270      guarantees the contract price and is at risk for any amount over the contract price; and
             7271          (ii) each component of which is competitively bid.
             7272          (5) "Design-build services" means the engineering, architectural, and other services
             7273      necessary to formulate and implement a design-build project, including its actual construction.
             7274          (6) "Emergency repairs" means a building improvement or public works project
             7275      undertaken on an expedited basis to:
             7276          (a) eliminate an imminent risk of damage to or loss of public or private property;
             7277          (b) remedy a condition that poses an immediate physical danger; or
             7278          (c) reduce a substantial, imminent risk of interruption of an essential public service.
             7279          (7) "Governing body" means:
             7280          (a) for a county, city, or town, the legislative body of the county, city, or town;
             7281          (b) for a local district, the board of trustees of the local district; and

             7282          (c) for a special service district:
             7283          (i) the legislative body of the county, city, or town that established the special service
             7284      district, if no administrative control board has been appointed under Section 17A-2-1326 ; or
             7285          (ii) the administrative control board of the special service district, if an administrative
             7286      control board has been appointed under Section 17A-2-1326 .
             7287          (8) "Local district" has the same meaning as defined in Section 17B-1-102 .
             7288          (9) "Local entity" means a county, city, town, local district, or special service district.
             7289          (10) "Lowest responsive responsible bidder" means a prime contractor who:
             7290          (a) has submitted a bid in compliance with the invitation to bid and within the
             7291      requirements of the plans and specifications for the building improvement or public works
             7292      project;
             7293          (b) is the lowest bidder that satisfies the local entity's criteria relating to financial
             7294      strength, past performance, integrity, reliability, and other factors that the local entity uses to
             7295      assess the ability of a bidder to perform fully and in good faith the contract requirements;
             7296          (c) has furnished a bid bond or equivalent in money as a condition to the award of a
             7297      prime contract; and
             7298          (d) furnishes a payment and performance bond as required by law.
             7299          (11) "Procurement code" means the provisions of [Title 63, Chapter 56] Title 63G,
             7300      Chapter 6, Utah Procurement Code.
             7301          (12) "Public works project":
             7302          (a) means the construction of:
             7303          (i) a park or recreational facility; or
             7304          (ii) a pipeline, culvert, dam, canal, or other system for water, sewage, storm water, or
             7305      flood control; and
             7306          (b) does not include:
             7307          (i) the replacement or repair of existing infrastructure on private property;
             7308          (ii) construction commenced before June 1, 2003; and
             7309          (iii) construction or repair at an international airport.

             7310          (13) "Special service district" means a special service district under Title 17A, Chapter
             7311      2, Part 13, Utah Special Service District Act.
             7312          Section 118. Section 11-39-107 is amended to read:
             7313           11-39-107. Procurement code.
             7314          (1) This chapter may not be construed to:
             7315          (a) prohibit a county legislative body from adopting the procedures of the procurement
             7316      code; or
             7317          (b) limit the application of the procurement code to a local district or special service
             7318      district.
             7319          (2) (a) In seeking bids and awarding a contract for a building improvement or public
             7320      works project, a county legislative body may elect to follow the provisions of the procurement
             7321      code, as the county legislative body considers appropriate under the circumstances, for
             7322      specification preparation, source selection, or contract formation.
             7323          (b) A county legislative body's election to adopt the procedures of the procurement
             7324      code may not excuse the county from complying with the requirements to award a contract for
             7325      work in excess of the bid limit and to publish notice of the intent to award.
             7326          (c) An election under Subsection (2)(a) may be made on a case-by-case basis, unless the
             7327      county has previously adopted the procurement code as permitted by Subsection [ 63-56-102 ]
             7328      63G-6-104 (3)(e).
             7329          (d) The county legislative body shall:
             7330          (i) make each election under Subsection (2)(a) in an open meeting; and
             7331          (ii) specify in its action the portions of the procurement code to be followed.
             7332          (3) If the estimated cost of the building improvement or public works project proposed
             7333      by a local district or special service district exceeds the bid limit, the governing body of the local
             7334      district or special service district may, if it determines to proceed with the building improvement
             7335      or public works project, use the competitive procurement procedures of the procurement code
             7336      in place of the comparable provisions of this chapter.
             7337          Section 119. Section 11-42-205 is amended to read:

             7338           11-42-205. Unimproved property.
             7339          (1) A local entity may not designate an assessment area in which more than 75% of the
             7340      property proposed to be assessed consists of unimproved property unless the local entity:
             7341          (a) has obtained an appraisal of the unimproved property from an appraiser who is a
             7342      member of the Appraisal Institute, verifying that the market value of the property, after
             7343      completion of the proposed improvements, is at least three times the amount of the assessment
             7344      proposed to be levied against the unimproved property;
             7345          (b) has obtained from each owner of unimproved property:
             7346          (i) financial information acceptable to the governing body demonstrating the owner's
             7347      ability to pay the proposed assessment; or
             7348          (ii) a financial institution's commitment securing, to the governing body's satisfaction,
             7349      the owner's obligation to pay the proposed assessment; and
             7350          (c) has prepared a development plan, approved by a qualified, independent third party,
             7351      describing the plan of development and the financial feasibility of the plan, taking into account
             7352      growth trends, absorption studies, and other demographic information applicable to the
             7353      unimproved property.
             7354          (2) Information that an owner provides to a local entity under Subsection (1)(b)(i) is
             7355      not a record for purposes of [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             7356      Access and Management Act.
             7357          Section 120. Section 12-1-10 is amended to read:
             7358           12-1-10. Applications -- Fees.
             7359          (1) Each application for registration under this chapter shall be made on a form
             7360      provided by the Division of Corporations and Commercial Code.
             7361          (2) Each applicant shall pay to the Division of Corporations and Commercial Code an
             7362      application fee determined under Section [ 63-38-3.2 ] 63J-1-303 .
             7363          Section 121. Section 13-1-2 is amended to read:
             7364           13-1-2. Creation and functions of department -- Divisions created -- Fees.
             7365          (1) (a) There is created the Department of Commerce.

             7366          (b) The department shall execute and administer state laws regulating business activities
             7367      and occupations affecting the public interest.
             7368          (2) Within the department the following divisions are created:
             7369          (a) the Division of Occupational and Professional Licensing;
             7370          (b) the Division of Real Estate;
             7371          (c) the Division of Securities;
             7372          (d) the Division of Public Utilities;
             7373          (e) the Division of Consumer Protection; and
             7374          (f) the Division of Corporations and Commercial Code.
             7375          (3) (a) Unless otherwise provided by statute, the department may adopt a schedule of
             7376      fees assessed for services provided by the department by following the procedures and
             7377      requirements of Section [ 63-38-3.2 ] 63J-1-303 .
             7378          (b) The department shall submit each fee established in this manner to the Legislature
             7379      for its approval as part of the department's annual appropriations request.
             7380          (c) (i) All fees collected by each division and by the department shall be deposited in a
             7381      restricted account within the General Fund known as the Commerce Service Fund.
             7382          (ii) At the end of each fiscal year, the director of the Division of Finance shall transfer
             7383      into the General Fund any fee collections that are greater than the legislative appropriations
             7384      from the Commerce Service Fund for that year.
             7385          (d) The department may not charge or collect any fee nor expend monies from this fund
             7386      without approval by the Legislature.
             7387          Section 122. Section 13-1-8.5 is amended to read:
             7388           13-1-8.5. Procedures -- Adjudicative proceedings.
             7389          (1) The Department of Commerce and its divisions shall comply with the procedures
             7390      and requirements of [Title 63, Chapter 46b,] Title 63G, Chapter 4, Administrative Procedures
             7391      Act, in their adjudicative proceedings.
             7392          (2) The department may contract with other state agencies or departments to conduct
             7393      hearings in its name or in the name of its divisions or agencies.

             7394          Section 123. Section 13-1a-5 is amended to read:
             7395           13-1a-5. Authority of director.
             7396          The director has authority:
             7397          (1) to make rules in accordance with [Title 63, Chapter 46a, the] Title 63G, Chapter 3,
             7398      Utah Administrative Rulemaking Act, to administer the responsibilities of the division;
             7399          (2) to investigate, upon complaint, the corporation and commercial code filings and
             7400      compliance governed by the laws administered and enforced by the division; and
             7401          (3) under the provisions of [Title 63, Chapter 46b, the] Title 63G, Chapter 4, Utah
             7402      Administrative Procedures Act, to take administrative action against persons in violation of the
             7403      division rules and the laws administered by it, including the issuance of cease and desist orders.
             7404          Section 124. Section 13-1a-6 is amended to read:
             7405           13-1a-6. Powers of Division of Corporations and Commercial Code -- Document
             7406      retention.
             7407          (1) The Division of Corporations and Commercial Code shall have the power and
             7408      authority reasonably necessary to enable it to efficiently administer the laws and rules for which
             7409      it is responsible and to perform the duties imposed upon it by law.
             7410          (2) The division has authority under [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             7411      Administrative Rulemaking Act, to make rules and procedures for the processing, retention, and
             7412      disposal of filed documents to efficiently utilize electronic and computerized document image
             7413      storage and retrieval.
             7414          (3) Notwithstanding the provisions of Section [ 63-2-905 ] 63A-12-105 , original
             7415      documents filed in the division offices shall not be considered property of the state if electronic
             7416      image reproductions thereof which comply with the provisions of [Title 63, Chapter 2,] Title
             7417      63G, Chapter 2, Government Records Access and Management Act, are retained by the
             7418      division.
             7419          Section 125. Section 13-1a-7 is amended to read:
             7420           13-1a-7. Hearing powers.
             7421          (1) The director, in accordance with [Title 63, Chapter 46b, the] Title 63G, Chapter 4,

             7422      Administrative Procedures Act, may hold or cause to be held administrative hearings regarding
             7423      any matter affecting the division or the incorporation or registration activities of any business
             7424      governed by the laws administered by the division.
             7425          (2) The director or [his] the director's designee, for the purposes outlined in this chapter
             7426      or any chapter administered by the division, may administer oaths, issue subpoenas, compel the
             7427      attendance of witnesses, and compel the production of papers, books, accounts, documents, and
             7428      evidence.
             7429          Section 126. Section 13-1a-9 is amended to read:
             7430           13-1a-9. Fees of Division of Corporations and Commercial Code.
             7431          In addition to the fees prescribed by Title 16, Chapter 6a, Utah Revised Nonprofit
             7432      Corporation Act, and Title 16, Chapter 10a, Utah Revised Business Corporation Act, the
             7433      Division of Corporations and Commercial Code shall receive and determine fees pursuant to
             7434      Section [ 63-38-3.2 ] 63J-1-303 for filing articles of incorporation or amendments of insurance
             7435      corporations, of canal or irrigation corporations organized for furnishing water to lands owned
             7436      by the members thereof exclusively, or of water users' associations organized in conformity with
             7437      the requirements of the United States under the Reclamation Act of June 17, 1902, and which
             7438      are authorized to furnish water only to their stockholders. No license fee may be imposed on
             7439      insurance corporations, canal or irrigation corporations organized for furnishing water to lands
             7440      owned by the members thereof exclusively, or water users' associations organized in conformity
             7441      with the requirements of the United States under the Reclamation Act of June 17, 1902, and
             7442      which are authorized to furnish water only to the stockholders at the time any such corporation
             7443      files its articles of incorporation, articles of amendment increasing the number of authorized
             7444      shares, or articles of merger or consolidation, any provision of Title 16, Chapter 10a, Utah
             7445      Revised Business Corporation Act, to the contrary notwithstanding.
             7446          Section 127. Section 13-2-5 is amended to read:
             7447           13-2-5. Powers of director.
             7448          The director has authority to:
             7449          (1) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah

             7450      Administrative Rulemaking Act, issue rules to administer and enforce the chapters listed in
             7451      Section 13-2-1 ;
             7452          (2) investigate the activities of any business governed by the laws administered and
             7453      enforced by the division;
             7454          (3) take administrative and judicial action against persons in violation of the division
             7455      rules and the laws administered and enforced by it, including the issuance of cease and desist
             7456      orders;
             7457          (4) coordinate, cooperate, and assist with business and industry desiring or attempting
             7458      to correct unfair business practices between competitors;
             7459          (5) provide consumer information and education to the public and assist any
             7460      organization providing such services; and
             7461          (6) coordinate with, assist, and utilize the assistance of federal, state, and local agencies
             7462      in the performance of [his] the director's duties and the protection of the public.
             7463          Section 128. Section 13-2-6 is amended to read:
             7464           13-2-6. Enforcement powers.
             7465          (1) In accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             7466      Procedures Act, the division shall have authority to convene administrative hearings, issue cease
             7467      and desist orders, and impose fines under all the chapters identified in Section 13-2-1 .
             7468          (2) Any person who intentionally violates a final cease and desist order entered by the
             7469      division of which [he] the person has notice is guilty of a third degree felony.
             7470          (3) If the division has reasonable cause to believe that any person is engaged in violating
             7471      any chapter listed in Section 13-2-1 , the division may promptly issue the alleged violator a
             7472      citation signed by the division's director or [his] the director's designee.
             7473          (a) Each citation shall be in writing and shall:
             7474          (i) set forth with particularity the nature of the violation, including a reference to the
             7475      statutory or administrative rule provision being violated;
             7476          (ii) state that any request for review of the citation must be made in writing and be
             7477      received by the division no more than ten days following issuance;

             7478          (iii) state the consequences of failing to make a timely request for review; and
             7479          (iv) state all other information required by Subsection [ 63-46b-3 ] 63G-4-201 (2).
             7480          (b) In computing any time period prescribed by this section, the following days may not
             7481      be included:
             7482          (i) the day a citation is issued by the division;
             7483          (ii) the day the division received a request for review of a citation;
             7484          (iii) Saturdays and Sundays; and
             7485          (iv) a legal holiday set forth in Subsection [ 63-13-2 ] 63G-1-301 (1)(a).
             7486          (c) If the recipient of a citation makes a timely request for review, within ten days of
             7487      receiving the request, the division shall convene an adjudicative proceeding in accordance with
             7488      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             7489          (d) (i) If the presiding officer finds that there is not substantial evidence that the
             7490      recipient violated a chapter listed in Section 13-2-1 at the time the citation was issued, the
             7491      citation may not become final, and the division shall immediately vacate the citation and
             7492      promptly notify the recipient in writing.
             7493          (ii) If the presiding officer finds there is substantial evidence that the recipient violated a
             7494      chapter listed in Section 13-2-1 at the time the citation was issued, the citation shall become
             7495      final and the division may enter a cease and desist order against the recipient.
             7496          (e) A citation issued under this chapter may be personally served upon any person upon
             7497      whom a summons may be served in accordance with the Utah Rules of Civil Procedure. A
             7498      citation also may be served by first-class mail, postage prepaid.
             7499          (f) If the recipient fails to make a timely request for review, the citation shall become
             7500      the final order of the division. The period to contest the citation may be extended by the
             7501      director for good cause shown.
             7502          (g) If the chapter violated allows for an administrative fine, after a citation becomes
             7503      final, the director may impose the administrative fine.
             7504          (4) (a) A person violating a chapter identified in Section 13-2-1 is subject to the
             7505      division's jurisdiction if:

             7506          (i) the violation or attempted violation is committed either wholly or partly within the
             7507      state;
             7508          (ii) conduct committed outside the state constitutes an attempt to commit a violation
             7509      within the state; or
             7510          (iii) transactional resources located within the state are used by the offender to directly
             7511      or indirectly facilitate a violation or attempted violation.
             7512          (b) As used in this section, "transactional resources" means:
             7513          (i) any mail drop or mail box, whether or not located on the premises of a United States
             7514      Post Office;
             7515          (ii) any telephone or facsimile transmission device;
             7516          (iii) any internet connection by a resident or inhabitant of this state with either a resident
             7517      or nonresident maintained internet site;
             7518          (iv) any business office or private residence used for a business-related purpose;
             7519          (v) any account with or services of a financial institution;
             7520          (vi) the services of a common or private carrier; or
             7521          (vii) the use of any city, county, or state asset or facility, including any road or highway.
             7522          (5) The director or [his] the director's designee, for the purposes outlined in any chapter
             7523      administered by the division, may administer oaths, issue subpoenas, compel the attendance of
             7524      witnesses, and compel the production of papers, books, accounts, documents, and evidence.
             7525          Section 129. Section 13-2-8 is amended to read:
             7526           13-2-8. Consumer Protection Education and Training Fund.
             7527          (1) There is created a restricted special revenue fund known as the "Consumer
             7528      Protection Education and Training Fund."
             7529          (2) (a) Unless otherwise provided by a chapter listed in Section 13-2-1 , all money not
             7530      distributed as consumer restitution that is received by the division from administrative fines and
             7531      settlements, from criminal restitution, or from civil damages, forfeitures, penalties, and
             7532      settlements when the division receives the monies on its own behalf and not in a representative
             7533      capacity, shall be deposited into the fund.

             7534          (b) Any portion of the fund may be maintained in an interest-bearing account.
             7535          (c) All interest earned on fund monies shall be deposited into the fund.
             7536          (3) Notwithstanding [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures
             7537      Act, the division may use the fund with the approval of the executive director of the Department
             7538      of Commerce in a manner consistent with the duties of the division under this chapter for:
             7539          (a) consumer protection education for members of the public;
             7540          (b) equipment for and training of division personnel;
             7541          (c) publication of consumer protection brochures, laws, policy statements, or other
             7542      material relevant to the division's enforcement efforts; and
             7543          (d) investigation and litigation undertaken by the division.
             7544          (4) If the balance in the fund exceeds $100,000 at the close of any fiscal year, the excess
             7545      shall be transferred to the General Fund.
             7546          Section 130. Section 13-2-9 is amended to read:
             7547           13-2-9. Internet -- Consumer education.
             7548          (1) The Division of Consumer Protection shall, subject to appropriation, contract with a
             7549      person to make public service announcements advising consumers about the dangers of using
             7550      the Internet, especially:
             7551          (a) material harmful to minors;
             7552          (b) steps a consumer may take to learn more about the dangers of using the Internet;
             7553          (c) information about how a service provider can help a consumer learn more about the
             7554      dangers of using the Internet, including the service provider's duties created by this bill; and
             7555          (d) how a consumer can monitor the Internet usage of family members.
             7556          (2) Monies appropriated under Subsection (1) shall be paid by the Division of
             7557      Consumer Protection to a person only if:
             7558          (a) the person is a nonprofit organization; and
             7559          (b) the person agrees to spend private monies amounting to two times the amount of
             7560      monies provided by the Division of Consumer Protection during each fiscal year in accordance
             7561      with Subsection (1).

             7562          (3) In administering any monies appropriated for use under this section, the Division of
             7563      Consumer Protection shall comply with [Title 63, Chapter 56] Title 63G, Chapter 6, Utah
             7564      Procurement Code.
             7565          Section 131. Section 13-14-104 is amended to read:
             7566           13-14-104. Powers and duties of the advisory board and the executive director.
             7567          (1) (a) Except as provided in Subsection 13-14-106 (3), the advisory board shall make
             7568      recommendations to the executive director on the administration and enforcement of this
             7569      chapter, including adjudicative and rulemaking proceedings.
             7570          (b) The executive director shall:
             7571          (i) consider the advisory board's recommendations; and
             7572          (ii) issue any final decision by the department.
             7573          (2) The executive director, in consultation with the advisory board, shall make rules for
             7574      the administration of this chapter in accordance with [Title 63, Chapter 46a] Title 63G, Chapter
             7575      3, Utah Administrative Rulemaking Act.
             7576          (3) (a) An adjudicative proceeding under this chapter shall be conducted in accordance
             7577      with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             7578          (b) In an adjudicative proceeding under this chapter, any order issued by the executive
             7579      director:
             7580          (i) shall comply with Section [ 63-46b-10 ] 63G-4-208 , whether the proceeding is a
             7581      formal or an informal adjudicative proceeding under [Title 63, Chapter 46b] Title 63G, Chapter
             7582      4, Administrative Procedures Act; and
             7583          (ii) if the order modifies or rejects a finding of fact in a recommendation from the
             7584      advisory board, shall be made on the basis of information learned from the executive director's:
             7585          (A) personal attendance at the hearing; or
             7586          (B) review of the record developed at the hearing.
             7587          Section 132. Section 13-14-105 is amended to read:
             7588           13-14-105. Registration -- Fees.
             7589          (1) A franchisee or franchisor doing business in this state shall:

             7590          (a) annually register or renew its registration with the department in a manner
             7591      established by the department; and
             7592          (b) pay an annual registration fee in an amount determined by the department in
             7593      accordance with Sections 13-1-2 and [ 63-38-3.2 ] 63J-1-303 .
             7594          (2) The department shall register or renew the registration of a franchisee or franchisor
             7595      if the franchisee or franchisor complies with this chapter and rules made by the department
             7596      under this chapter.
             7597          (3) A franchisee or franchisor registered under this section shall comply with this
             7598      chapter and any rules made by the department under this chapter including any amendments to
             7599      this chapter or the rules made after a franchisee or franchisor enter into a franchise agreement.
             7600          (4) The fee imposed under Subsection (1)(b) shall be collected by the department and
             7601      deposited into the Commerce Service Fund.
             7602          (5) Notwithstanding Subsection (1), an agent, officer, or field or area representative of
             7603      a franchisor does not need to be registered under this section if the franchisor is registered under
             7604      this section.
             7605          Section 133. Section 13-14-106 is amended to read:
             7606           13-14-106. Administrative proceedings commenced by the agency.
             7607          (1) Except as provided in Subsection (3), after a hearing and after receipt of the
             7608      advisory board's recommendation, if the executive director finds that a person has violated this
             7609      chapter or any rule made under this chapter, the executive director may:
             7610          (a) issue a cease and desist order; and
             7611          (b) assess an administrative fine.
             7612          (2) (a) In determining the amount and appropriateness of an administrative fine under
             7613      Subsection (1), the executive director shall consider:
             7614          (i) the gravity of the violation;
             7615          (ii) any history of previous violations; and
             7616          (iii) any attempt made by the person to retaliate against another person for seeking relief
             7617      under this chapter or other federal or state law relating to the motor vehicle industry.

             7618          (b) In addition to any other action permitted under Subsection (1), the department may
             7619      file an action with a court seeking to enforce the executive director's order and pursue the
             7620      executive director's assessment of a fine in an amount not to exceed $5,000 for each day a
             7621      person violates an order of the executive director.
             7622          (3) (a) In addition to the grounds for issuing an order on an emergency basis listed in
             7623      Subsection [ 63-46b-20 ] 63G-4-502 (1), the executive director may issue an order on an
             7624      emergency basis if the executive director determines that irreparable damage is likely to occur if
             7625      immediate action is not taken.
             7626          (b) In issuing an emergency order under Subsection (3)(a) the executive director shall
             7627      comply with the requirements of Subsections [ 63-46b-20 ] 63G-4-502 (2) and (3).
             7628          Section 134. Section 13-14-107 is amended to read:
             7629           13-14-107. Administrative proceedings -- Request for agency action.
             7630          (1) (a) A person may commence an adjudicative proceeding in accordance with this
             7631      chapter and [with Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act
             7632      to:
             7633          (i) remedy a violation of this chapter;
             7634          (ii) obtain approval of an act regulated by this chapter; or
             7635          (iii) obtain any determination that this chapter specifically authorizes that person to
             7636      request.
             7637          (b) A person shall commence an adjudicative proceeding by filing a request for agency
             7638      action in accordance with Section [ 63-46b-3 ] 63G-4-201 .
             7639          (2) After receipt of the advisory board's recommendation, the executive director shall
             7640      apportion in a fair and equitable manner between the parties any costs of the adjudicative
             7641      proceeding, including reasonable [attorney's] attorney fees.
             7642          Section 135. Section 13-15-4 is amended to read:
             7643           13-15-4. Information to be filed by seller -- Representations.
             7644          (1) Any seller of an assisted marketing plan shall file the following information with the
             7645      division:

             7646          (a) the name, address, and principal place of business of the seller, and the name,
             7647      address, and principal place of business of the parent or holding company of the seller, if any,
             7648      who is responsible for statements made by the seller;
             7649          (b) all trademarks, trade names, service marks, or advertising or other commercial
             7650      symbols that identify the products, equipment, supplies, or services to be offered, sold, or
             7651      distributed by the prospective purchaser;
             7652          (c) an individual detailed statement covering the past five years of the business
             7653      experience of each of the seller's current directors and executive officers and an individual
             7654      statement covering the same period for the seller and the seller's parent company, if any,
             7655      including the length of time each:
             7656          (i) has conducted a business of the type advertised or solicited for operation by a
             7657      prospective purchaser;
             7658          (ii) has offered or sold the assisted marketing plan; and
             7659          (iii) has offered for sale or sold assisted marketing plans in other lines of business,
             7660      together with a description of the other lines of business;
             7661          (d) a statement of the total amount that must be paid by the purchaser to obtain or
             7662      commence the business opportunity such as initial fees, deposits, down payments, prepaid rent,
             7663      and equipment and inventory purchases; provided, that if all or part of these fees or deposits are
             7664      returnable, the conditions under which they are returnable shall also be disclosed;
             7665          (e) a complete statement of the actual services the seller will perform for the purchaser;
             7666          (f) a complete statement of all oral, written, or visual representations that will be made
             7667      to prospective purchasers about specific levels of potential sales, income, gross and net profits,
             7668      or any other representations that suggest a specific level;
             7669          (g) a complete description of the type and length of any training promised to
             7670      prospective purchasers;
             7671          (h) a complete description of any services promised to be performed by the seller in
             7672      connection with the placement of the equipment, products, or supplies at any location from
             7673      which they will be sold or used; and a complete description of those services together with any

             7674      agreements that will be made by the seller with the owner or manager of the location where the
             7675      purchaser's equipment, products, or supplies will be placed;
             7676          (i) a statement that discloses any person identified in Subsection (1)(a) who:
             7677          (i) has been convicted of a felony or misdemeanor or pleaded nolo contendere to a
             7678      felony or misdemeanor charge if the felony or misdemeanor involved fraud, embezzlement,
             7679      fraudulent conversion, or misappropriation of property;
             7680          (ii) has been held liable or consented to the entry of a stipulated judgment in any civil
             7681      action based upon fraud, embezzlement, fraudulent conversion, misappropriation of property, or
             7682      the use of untrue or misleading representations in the sale or attempted sale of any real or
             7683      personal property, or upon the use of any unfair, unlawful or deceptive business practice; or
             7684          (iii) is subject to an injunction or restrictive order relating to business activity as the
             7685      result of an action brought by a public agency;
             7686          (j) a financial statement of the seller signed by one of the seller's officers, directors,
             7687      trustees, or general or limited partners, under a declaration that certifies that to the signatory's
             7688      knowledge and belief the information in the financial statement is true and accurate; a financial
             7689      statement that is more than 13 months old is unacceptable;
             7690          (k) a copy of the entire marketing plan contract;
             7691          (l) the number of marketing plans sold to date, and the number of plans under
             7692      negotiation;
             7693          (m) geographical information including all states in which the seller's assisted marketing
             7694      plans have been sold, and the number of plans in each such state;
             7695          (n) the total number of marketing plans that were cancelled by the seller in the past 12
             7696      months; and
             7697          (o) the number of marketing plans that were voluntarily terminated by purchasers within
             7698      the past 12 months and the total number of such voluntary terminations to date.
             7699          (2) The seller of an assisted marketing plan filing information under Subsection (1) shall
             7700      pay a fee as determined by the department in accordance with Section [ 63-38-3.2 ] 63J-1-303 .
             7701          (3) Before commencing business in this state, the seller of an assisted marketing plan

             7702      shall file the information required under Subsection (1) and receive from the division proof of
             7703      receipt of the filing.
             7704          (4) A seller of an assisted marketing plan claiming an exemption from filing under this
             7705      chapter shall file a notice of claim of exemption from filing with the division. A seller claiming
             7706      an exemption from filing bears the burden of proving the exemption. The division shall collect a
             7707      fee for filing a notice of claim of exemption, as determined by the department in accordance
             7708      with Section [ 63-38-3.2 ] 63J-1-303 .
             7709          (5) A representation described in Subsection (1)(f) shall be relevant to the geographic
             7710      market in which the business opportunity is to be located. When the statements or
             7711      representations are made, a warning after the representation in not less than 12 point upper and
             7712      lower case boldface type shall appear as follows:
             7713     
CAUTION

             7714          No guarantee of earnings or ranges of earnings can be made. The number of purchasers
             7715      who have earned through this business an amount in excess of the amount of their initial
             7716      payment is at least _____ which represents _____% of the total number of purchasers of this
             7717      business opportunity.
             7718          Section 136. Section 13-15-4.5 is amended to read:
             7719           13-15-4.5. Notice of exemption filing.
             7720          (1) (a) Any franchise exempt from this chapter pursuant to Subsection
             7721      13-15-2 (1)(b)(iii) shall, prior to offering for sale or selling a franchise to be located in this state
             7722      or to a resident of this state, file with the division a notice that the franchisor is in substantial
             7723      compliance with the requirements of the Federal Trade Commission rule found at Title 16,
             7724      Chapter I, Subchapter d, Trade Regulation Rules, Part 436, Disclosure Requirements and
             7725      Prohibitions Concerning Franchising and Business Opportunity Ventures, together with a filing
             7726      fee determined by the department pursuant to Section [ 63-38-3.2 ] 63J-1-303 , not to exceed
             7727      $100.
             7728          (b) The notice shall state:
             7729          (i) the name of the applicant;

             7730          (ii) the name of the franchise;
             7731          (iii) the name under which the applicant intends to or does transact business, if different
             7732      than the name of the franchise;
             7733          (iv) the applicant's principal business address; and
             7734          (v) the applicant's federal employer identification number.
             7735          (2) (a) The initial exemption granted under this section is for a period of one year from
             7736      the date of filing the notice.
             7737          (b) The exemption may be renewed each year for an additional one-year period upon
             7738      filing a notice for renewal and paying a renewal fee determined pursuant to Section [ 63-38-3.2 ]
             7739      63J-1-303 , not to exceed $100.
             7740          (3) The division may make rules to implement this section.
             7741          Section 137. Section 13-21-3 is amended to read:
             7742           13-21-3. Credit services organizations -- Prohibitions.
             7743          (1) A credit services organization, its salespersons, agents, and representatives, and
             7744      independent contractors who sell or attempt to sell the services of a credit services organization
             7745      may not do any of the following:
             7746          (a) conduct any business regulated by this chapter without first:
             7747          (i) securing a certificate of registration from the division; and
             7748          (ii) unless exempted under Section 13-21-4 , posting a bond, letter of credit, or
             7749      certificate of deposit with the division in the amount of $100,000;
             7750          (b) make a false statement, or fail to state a material fact, in connection with an
             7751      application for registration with the division;
             7752          (c) charge or receive any money or other valuable consideration prior to full and
             7753      complete performance of the services the credit services organization has agreed to perform for
             7754      the buyer;
             7755          (d) dispute or challenge, or assist a person in disputing or challenging an entry in a
             7756      credit report prepared by a consumer reporting agency without a factual basis for believing and
             7757      obtaining a written statement for each entry from the person stating that that person believes

             7758      that the entry contains a material error or omission, outdated information, inaccurate
             7759      information, or unverifiable information;
             7760          (e) charge or receive any money or other valuable consideration solely for referral of
             7761      the buyer to a retail seller who will or may extend credit to the buyer, if the credit that is or will
             7762      be extended to the buyer is upon substantially the same terms as those available to the general
             7763      public;
             7764          (f) make, or counsel or advise any buyer to make, any statement that is untrue or
             7765      misleading and that is known, or that by the exercise of reasonable care should be known, to be
             7766      untrue or misleading, to a credit reporting agency or to any person who has extended credit to a
             7767      buyer or to whom a buyer is applying for an extension of credit, with respect to a buyer's
             7768      creditworthiness, credit standing, or credit capacity;
             7769          (g) make or use any untrue or misleading representations in the offer or sale of the
             7770      services of a credit services organization or engage, directly or indirectly, in any act, practice, or
             7771      course of business that operates or would operate as fraud or deception upon any person in
             7772      connection with the offer or sale of the services of a credit services organization; and
             7773          (h) transact any business as a credit services organization, as defined in Section
             7774      13-21-2 , without first having registered with the division by paying an annual fee set pursuant to
             7775      Section [ 63-38-3.2 ] 63J-1-303 and filing proof that it has obtained a bond or letter of credit as
             7776      required by Subsection (1).
             7777          (2) (a) A bond, letter of credit from a Utah depository, or certificate of deposit posted
             7778      with the division shall be used to cover the losses of any person arising from a violation of this
             7779      chapter by the posting credit services organization. A bond, letter of credit, or certificate of
             7780      deposit may also be used to satisfy administrative fines and civil damages arising from any
             7781      enforcement action against the posting credit service organization.
             7782          (b) A bond, letter of credit, or certificate of deposit shall remain in force:
             7783          (i) until replaced by a bond, letter of credit, or certificate of deposit of identical or
             7784      superior coverage; or
             7785          (ii) for one year after the credit servicing organization notifies the division in writing

             7786      that it has ceased all activities regulated by this chapter.
             7787          Section 138. Section 13-22-3 is amended to read:
             7788           13-22-3. Investigative and enforcement powers -- Education.
             7789          (1) The division may make any investigation it considers necessary to determine
             7790      whether any person is violating, has violated, or is about to violate any provision of this chapter
             7791      or any rule made or order issued under this chapter. As part of the investigation, the division
             7792      may:
             7793          (a) require a person to file a statement in writing;
             7794          (b) administer oaths, subpoena witnesses and compel their attendance, take evidence,
             7795      and examine under oath any person in connection with an investigation; and
             7796          (c) require the production of any books, papers, documents, merchandise, or other
             7797      material relevant to the investigation.
             7798          (2) Whenever it appears to the director that substantial evidence exists that any person
             7799      has engaged in, is engaging in, or is about to engage in any act or practice prohibited in this
             7800      chapter or constituting a violation of this chapter or any rule made or order issued under this
             7801      chapter, the director may do any of the following in addition to other specific duties under this
             7802      chapter:
             7803          (a) in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             7804      Procedures Act, the director may issue an order to cease and desist from engaging in the act or
             7805      practice or from doing any act in furtherance of the activity; or
             7806          (b) the director may bring an action in the appropriate district court of this state to
             7807      enjoin the acts or practices constituting the violation or to enforce compliance with this chapter
             7808      or any rule made or order issued under this chapter.
             7809          (3) Whenever it appears to the director by a preponderance of the evidence that a
             7810      person has engaged in or is engaging in any act or practice prohibited in this chapter or
             7811      constituting a violation of this chapter or any rule made or order issued under this chapter, the
             7812      director may assess an administrative fine of up to $500 per violation up to $10,000 for any
             7813      series of violations arising out of the same operative facts.

             7814          (4) Upon a proper showing, the court hearing an action brought under Subsection
             7815      (2)(b) may:
             7816          (a) issue an injunction;
             7817          (b) enter a declaratory judgment;
             7818          (c) appoint a receiver for the defendant or the defendant's assets;
             7819          (d) order disgorgement of any money received in violation of this chapter;
             7820          (e) order rescission of agreements violating this chapter;
             7821          (f) impose a fine of not more than $2,000 for each violation of this chapter; and
             7822          (g) impose a civil penalty, or any other relief the court considers just.
             7823          (5) (a) In assessing the amount of a fine or penalty under Subsection (3), (4)(f), or
             7824      (4)(g), the director or court imposing the fine or penalty shall consider the gravity of the
             7825      violation and the intent of the violator.
             7826          (b) If it does not appear by a preponderance of the evidence that the violator acted in
             7827      bad faith or with intent to harm the public, the director or court shall excuse payment of the fine
             7828      or penalty.
             7829          (6) The division may provide or contract to provide public education and voluntary
             7830      education for applicants and registrants under this chapter. The education may be in the form of
             7831      publications, advertisements, seminars, courses, or other appropriate means. The scope of the
             7832      education may include:
             7833          (a) the requirements, prohibitions, and regulated practices under this chapter;
             7834          (b) suggestions for effective financial and organizational practices for charitable
             7835      organizations;
             7836          (c) charitable giving and solicitation;
             7837          (d) potential problems with solicitations and fraudulent or deceptive practices; and
             7838          (e) any other matter relevant to the subject of this chapter.
             7839          Section 139. Section 13-22-6 is amended to read:
             7840           13-22-6. Application for registration.
             7841          (1) An applicant for registration or renewal of registration as a charitable organization

             7842      shall:
             7843          (a) pay an application fee as determined under Section [ 63-38-3.2 ] 63J-1-303 ; and
             7844          (b) submit an application on a form approved by the division which shall include:
             7845          (i) the organization's name, address, telephone number, facsimile number, if any, and the
             7846      names and addresses of any organizations or persons controlled by, controlling, or affiliated
             7847      with the applicant;
             7848          (ii) the specific legal nature of the organization, that is, whether it is an individual, joint
             7849      venture, partnership, limited liability company, corporation, association, or other entity;
             7850          (iii) the names and residence addresses of the officers and directors of the organization;
             7851          (iv) the name and address of the registered agent for service of process and a consent to
             7852      service of process;
             7853          (v) the purpose of the solicitation and use of the contributions to be solicited;
             7854          (vi) the method by which the solicitation will be conducted and the projected length of
             7855      time it is to be conducted;
             7856          (vii) the anticipated expenses of the solicitation, including all commissions, costs of
             7857      collection, salaries, and any other items;
             7858          (viii) a statement of what percentage of the contributions collected as a result of the
             7859      solicitation are projected to remain available for application to the charitable purposes declared
             7860      in the application, including a satisfactory statement of the factual basis for the projected
             7861      percentage;
             7862          (ix) a statement of total contributions collected or received by the organization within
             7863      the calendar year immediately preceding the date of the application, including a description of
             7864      the expenditures made from or the use made of the contributions;
             7865          (x) a copy of any written agreements with any professional fund raiser involved with the
             7866      solicitation;
             7867          (xi) disclosure of any injunction, judgment, or administrative order or conviction of any
             7868      crime involving moral turpitude with respect to any officer, director, manager, operator, or
             7869      principal of the organization;

             7870          (xii) a copy of all agreements to which the applicant is, or proposes to be, a party
             7871      regarding the use of proceeds for the solicitation or fundraising;
             7872          (xiii) a statement of whether or not the charity, or its parent foundation, will be using
             7873      the services of a professional fund raiser or of a professional fund raising counsel or consultant;
             7874          (xiv) if either the charity or its parent foundation will be using the services of a
             7875      professional fund raiser or a professional fund raising counsel or consultant:
             7876          (A) a copy of all agreements related to the services; and
             7877          (B) an acknowledgment that fund raising in the state will not commence until both the
             7878      charitable organization, its parent foundation, if any, and the professional fund raiser or
             7879      professional fund raising counsel or consultant are registered and in compliance with this
             7880      chapter; and
             7881          (xv) any additional information the division may require by rule.
             7882          (2) If any information contained in the application for registration becomes incorrect or
             7883      incomplete, the applicant or registrant shall, within 30 days after the information becomes
             7884      incorrect or incomplete, correct the application or file the complete information required by the
             7885      division.
             7886          (3) In addition to the registration fee, an organization failing to file a registration
             7887      application or renewal by the due date or filing an incomplete registration application or renewal
             7888      shall pay an additional fee of $25 for each month or part of a month after the date on which the
             7889      registration application or renewal were due to be filed.
             7890          Section 140. Section 13-22-8 is amended to read:
             7891           13-22-8. Exemptions.
             7892          (1) Section 13-22-5 does not apply to:
             7893          (a) a solicitation that an organization conducts among its own established and bona fide
             7894      membership exclusively through the voluntarily donated efforts of other members or officers of
             7895      the organization;
             7896          (b) a bona fide religious, ecclesiastical, or denominational organization if:
             7897          (i) the solicitation is made for a church, missionary, religious, or humanitarian purpose;

             7898      and
             7899          (ii) the organization is either:
             7900          (A) a lawfully organized corporation, institution, society, church, or established physical
             7901      place of worship, at which nonprofit religious services and activities are regularly conducted and
             7902      carried on;
             7903          (B) a bona fide religious group:
             7904          (I) that does not maintain specific places of worship;
             7905          (II) that is not subject to federal income tax; and
             7906          (III) not required to file an IRS Form 990 under any circumstance; or
             7907          (C) a separate group or corporation that is an integral part of an institution that is an
             7908      income tax exempt organization under 26 U.S.C. Sec. 501(c)(3) and is not primarily supported
             7909      by funds solicited outside its own membership or congregation;
             7910          (c) a solicitation by a broadcast media owned or operated by an educational institution
             7911      or governmental entity, or any entity organized solely for the support of that broadcast media;
             7912          (d) except as provided in Subsection 13-22-21 (1), a solicitation for the relief of any
             7913      person sustaining a life-threatening illness or injury specified by name at the time of solicitation
             7914      if the entire amount collected without any deduction is turned over to the named person;
             7915          (e) a political party authorized to transact its affairs within this state and any candidate
             7916      and campaign worker of the party if the content and manner of any solicitation make clear that
             7917      the solicitation is for the benefit of the political party or candidate;
             7918          (f) a political action committee or group soliciting funds relating to issues or candidates
             7919      on the ballot if the committee or group is required to file financial information with a federal or
             7920      state election commission;
             7921          (g) any school accredited by the state, any accredited institution of higher learning, or
             7922      club or parent, teacher, or student organization within and authorized by the school in support
             7923      of the operations or extracurricular activities of the school;
             7924          (h) a public or higher education foundation established under Title 53A or 53B;
             7925          (i) a television station, radio station, or newspaper of general circulation that donates air

             7926      time or print space for no consideration as part of a cooperative solicitation effort on behalf of a
             7927      charitable organization, whether or not that organization is required to register under this
             7928      chapter;
             7929          (j) a volunteer fire department, rescue squad, or local civil defense organization whose
             7930      financial oversight is under the control of a local governmental entity;
             7931          (k) any governmental unit of any state or the United States; and
             7932          (l) any corporation:
             7933          (i) established by an act of the United States Congress; and
             7934          (ii) that is required by federal law to submit an annual report:
             7935          (A) on the activities of the corporation, including an itemized report of all receipts and
             7936      expenditures of the corporation; and
             7937          (B) to the United States Secretary of Defense to be:
             7938          (I) audited; and
             7939          (II) submitted to the United States Congress.
             7940          (2) Any organization claiming an exemption under this section bears the burden of
             7941      proving its eligibility for, or the applicability of, the exemption claimed.
             7942          (3) Each organization exempt from registration pursuant to this section that makes a
             7943      material change in its legal status, officers, address, or similar changes shall file a report
             7944      informing the division of its current legal status, business address, business phone, officers, and
             7945      primary contact person within 30 days of the change.
             7946          (4) The division may by rule:
             7947          (a) require organizations exempt from registration pursuant to this section to file a
             7948      notice of claim of exemption;
             7949          (b) prescribe the contents of the notice of claim; and
             7950          (c) require a filing fee for the notice, as determined under Section [ 63-38-3.2 ]
             7951      63J-1-303 .
             7952          Section 141. Section 13-22-9 is amended to read:
             7953           13-22-9. Professional fund raiser's or fund raising counsel's or consultant's

             7954      permit.
             7955          (1) It is unlawful for any person or entity to act as a professional fund raiser or
             7956      professional fund raising counsel or consultant, whether or not representing an organization
             7957      exempt from registration under Section 13-22-8 , without first obtaining a permit from the
             7958      division by complying with all of the following application requirements:
             7959          (a) pay an application fee as determined under Section [ 63-38-3.2 ] 63J-1-303 ; and
             7960          (b) submit a written application, verified under oath, on a form approved by the division
             7961      that includes:
             7962          (i) the applicant's name, address, telephone number, facsimile number, if any;
             7963          (ii) the name and address of any organization or person controlled by, controlling, or
             7964      affiliated with the applicant;
             7965          (iii) the applicant's business, occupation, or employment for the three-year period
             7966      immediately preceding the date of the application;
             7967          (iv) whether it is an individual, joint venture, partnership, limited liability company,
             7968      corporation, association, or other entity;
             7969          (v) the names and residence addresses of any officer or director of the applicant;
             7970          (vi) the name and address of the registered agent for service of process and a consent to
             7971      service of process;
             7972          (vii) if a professional fund raiser:
             7973          (A) the purpose of the solicitation and use of the contributions to be solicited;
             7974          (B) the method by which the solicitation will be conducted and the projected length of
             7975      time it is to be conducted;
             7976          (C) the anticipated expenses of the solicitation, including all commissions, costs of
             7977      collection, salaries, and any other items;
             7978          (D) a statement of what percentage of the contributions collected as a result of the
             7979      solicitation are projected to remain available to the charitable organization declared in the
             7980      application, including a satisfactory statement of the factual basis for the projected percentage
             7981      and projected anticipated revenues provided to the charitable organization, and if a flat fee is

             7982      charged, documentation to support the reasonableness of the flat fee; and
             7983          (E) a statement of total contributions collected or received by the professional fund
             7984      raiser within the calendar year immediately preceding the date of the application, including a
             7985      description of the expenditures made from or the use made of the contributions;
             7986          (viii) if a professional fund raising counsel or consultant:
             7987          (A) the purpose of the plan, management, advise, counsel or preparation of materials
             7988      for, or respect to the solicitation and use of the contributions solicited;
             7989          (B) the method by which the plan, management, advise, counsel, or preparation of
             7990      materials for, or respect to the solicitation will be organized or coordinated and the projected
             7991      length of time of the solicitation;
             7992          (C) the anticipated expenses of the plan, management, advise, counsel, or preparation
             7993      of materials for, or respect to the solicitation, including all commissions, costs of collection,
             7994      salaries, and any other items;
             7995          (D) a statement of total fees to be earned or received from the charitable organization
             7996      declared in the application, and what percentage of the contributions collected as a result of the
             7997      plan, management, advise, counsel, or preparation of materials for, or respect to the solicitation
             7998      are projected after deducting the total fees to be earned or received remain available to the
             7999      charitable organization declared in the application, including a satisfactory statement of the
             8000      factual basis for the projected percentage and projected anticipated revenues provided to the
             8001      charitable organization, and if a flat fee is charged, documentation to support the reasonableness
             8002      of such flat fee; and
             8003          (E) a statement of total net fees earned or received within the calendar year immediately
             8004      preceding the date of the application, including a description of the expenditures made from or
             8005      the use of the net earned or received fees in the planning, management, advising, counseling, or
             8006      preparation of materials for, or respect to the solicitation and use of the contributions solicited
             8007      for the charitable organization;
             8008          (ix) disclosure of any injunction, judgment, or administrative order against the applicant
             8009      or the applicant's conviction of any crime involving moral turpitude;

             8010          (x) a copy of any written agreements with any charitable organization;
             8011          (xi) the disclosure of any injunction, judgment, or administrative order or conviction of
             8012      any crime involving moral turpitude with respect to any officer, director, manager, operator, or
             8013      principal of the applicant;
             8014          (xii) a copy of all agreements to which the applicant is, or proposes to be, a party
             8015      regarding the use of proceeds;
             8016          (xiii) an acknowledgment that fund raising in the state will not commence until both the
             8017      professional fund raiser or professional fund raising counsel or consultant and the charity, its
             8018      parent foundation, if any, are registered and in compliance with this chapter; and
             8019          (xiv) any additional information the division may require by rule.
             8020          (2) If any information contained in the application for a permit becomes incorrect or
             8021      incomplete, the applicant or registrant shall, within 30 days after the information becomes
             8022      incorrect or incomplete, correct the application or file the complete information required by the
             8023      division.
             8024          (3) In addition to the permit fee, an applicant failing to file a permit application or
             8025      renewal by the due date or filing an incomplete permit application or renewal shall pay an
             8026      additional fee of $25 for each month or part of a month after the date on which the permit
             8027      application or renewal were due to be filed.
             8028          Section 142. Section 13-22-12 is amended to read:
             8029           13-22-12. Grounds for denial, suspension, or revocation.
             8030          (1) The director may, in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4,
             8031      Administrative Procedures Act, issue an order to deny, suspend, or revoke an application,
             8032      registration, permit, or information card, upon a finding that the order is in the public interest
             8033      and that:
             8034          (a) the application for registration or renewal is incomplete or misleading in any
             8035      material respect;
             8036          (b) the applicant or registrant or any officer, director, agent, or employee of the
             8037      applicant or registrant has:

             8038          (i) violated this chapter or committed any of the prohibited acts and practices described
             8039      in this chapter;
             8040          (ii) been enjoined by any court, or is the subject of an administrative order issued in this
             8041      or another state, if the injunction or order includes a finding or admission of fraud, breach of
             8042      fiduciary duty, material misrepresentation, or if the injunction or order was based on a finding of
             8043      lack of integrity, truthfulness, or mental competence of the applicant;
             8044          (iii) been convicted of a crime involving moral turpitude;
             8045          (iv) obtained or attempted to obtain a registration or a permit by misrepresentation;
             8046          (v) materially misrepresented or caused to be misrepresented the purpose and manner in
             8047      which contributed funds and property will be used in connection with any solicitation;
             8048          (vi) caused or allowed any paid solicitor to violate any rule made or order issued under
             8049      this chapter by the division;
             8050          (vii) failed to take corrective action with its solicitors who have violated this chapter or
             8051      committed any of the prohibited acts and practices of this chapter;
             8052          (viii) used, or attempted to use a name that either is deceptively similar to a name used
             8053      by an existing registered or exempt charitable organization, or appears reasonably likely to
             8054      cause confusion of names;
             8055          (ix) failed to timely file with the division any report required in this chapter or by rules
             8056      made under this chapter; or
             8057          (x) failed to pay a fine imposed by the division in accordance with Section 13-22-3 ; or
             8058          (c) the applicant for registration or renewal has no charitable purpose.
             8059          (2) The director may, in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4,
             8060      Administrative Procedures Act, issue an order to revoke or suspend a claim of exemption filed
             8061      under Subsection 13-22-8 (4), upon a finding that the order is in the public interest and that:
             8062          (a) the notice of claim of exemption is incomplete or false or misleading in any material
             8063      respect; or
             8064          (b) any provision of this chapter, or any rule made or order issued by the division under
             8065      this chapter has been violated in connection with a charitable solicitation by any exempt

             8066      organization.
             8067          Section 143. Section 13-23-5 is amended to read:
             8068           13-23-5. Registration -- Bond, letter of credit, or certificate of deposit required --
             8069      Penalties.
             8070          (1) (a) (i) It is unlawful for any health spa facility to operate in this state unless the
             8071      facility is registered with the division.
             8072          (ii) Registration is effective for one year. If the health spa facility renews its
             8073      registration, the registration shall be renewed at least 30 days prior to its expiration.
             8074          (iii) The division shall provide by rule for the form, content, application process, and
             8075      renewal process of the registration.
             8076          (b) Each health spa registering in this state shall designate a registered agent for
             8077      receiving service of process. The registered agent shall be reasonably available from 8 a.m. until
             8078      5 p.m. during normal working days.
             8079          (c) The division shall charge and collect a fee for registration under guidelines provided
             8080      in Section [ 63-38-3.2 ] 63J-1-303 .
             8081          (d) If an applicant fails to file a registration application or renewal by the due date, or
             8082      files an incomplete registration application or renewal, the applicant shall pay a fee of $25 for
             8083      each month or part of a month after the date on which the registration application or renewal
             8084      were due to be filed, in addition to the registration fee described in Subsection (1)(c).
             8085          (2) (a) Each health spa shall obtain and maintain:
             8086          (i) a performance bond issued by a surety authorized to transact surety business in this
             8087      state;
             8088          (ii) an irrevocable letter of credit issued by a financial institution authorized to do
             8089      business in this state; or
             8090          (iii) a certificate of deposit.
             8091          (b) The bond, letter of credit, or certificate of deposit shall be payable to the division for
             8092      the benefit of any consumer who incurs damages as the result of:
             8093          (i) the health spa's violation of this chapter; or

             8094          (ii) the health spa's going out of business or relocating and failing to offer an alternate
             8095      location within five miles.
             8096          (c) (i) The division may recover from the bond, letter of credit, or certificate of deposit
             8097      the costs of collecting and distributing funds under this section, up to 10% of the face value of
             8098      the bond, letter of credit, or certificate of deposit but only if the consumers have fully recovered
             8099      their damages first.
             8100          (ii) The total liability of the issuer of the bond, letter of credit, or certificate of deposit
             8101      may not exceed the amount of the bond, letter of credit, or certificate of deposit.
             8102          (iii) The health spa shall maintain a bond, letter of credit, or certificate of deposit in
             8103      force for one year after it notifies the division in writing that it has ceased all activities regulated
             8104      by this chapter.
             8105          (d) A health spa providing services at more than one location shall comply with the
             8106      requirements of Subsection (2)(a) for each separate location.
             8107          (e) The division may impose a fine against a health spa that fails to comply with the
             8108      requirements of Subsection (2)(a) of up to $100 per day that the health spa remains out of
             8109      compliance. All penalties received shall be deposited into the Consumer Protection Education
             8110      and Training Fund created in Section 13-2-8 .
             8111          (3) (a) The minimum principal amount of the bond, letter of credit, or certificate of
             8112      credit required under Subsection (2) shall be based on the number of unexpired contracts for
             8113      health spa services to which the health spa is a party, in accordance with the following schedule:
             8114      Principal Amount of                     Number of Contracts
             8115      Bond, Letter of Credit,                
             8116      or Certificate of Deposit                
             8117          $15,000                                500 or fewer
             8118           35,000                                501 to 1,500
             8119           50,000                                1,500 to 3,000
             8120           75,000                                3,001 or more
             8121          (b) A health spa that is not exempt under Section 13-23-6 shall comply with Subsection

             8122      (3)(a) with respect to all of the health spa's unexpired contracts for health spa services,
             8123      regardless of whether a portion of those contracts satisfy the criteria in Section 13-23-6 .
             8124          (4) Each health spa shall obtain the bond, letter of credit, or certificate of deposit and
             8125      furnish a certified copy of the bond, letter of credit, or certificate of deposit to the division prior
             8126      to selling, offering or attempting to sell, soliciting the sale of, or becoming a party to any
             8127      contract to provide health spa services. A health spa is considered to be in compliance with this
             8128      section only if the proof provided to the division shows that the bond, letter of credit, or
             8129      certificate of credit is current.
             8130          (5) Each health spa shall:
             8131          (a) maintain accurate records of the bond, letter of credit, or certificate of credit and of
             8132      any payments made, due, or to become due to the issuer; and
             8133          (b) open the records to inspection by the division at any time during normal business
             8134      hours.
             8135          (6) If a health spa changes ownership, ceases operation, discontinues facilities, or
             8136      relocates and fails to offer an alternate location within five miles within 30 days after its closing,
             8137      the health spa is subject to the requirements of this section as if it were a new health spa coming
             8138      into being at the time the health spa changed ownership. The former owner may not release,
             8139      cancel, or terminate the owner's liability under any bond, letter of credit, or certificate of
             8140      deposit previously filed with the division, unless:
             8141          (a) the new owner has filed a new bond, letter of credit, or certificate of deposit for the
             8142      benefit of consumers covered under the previous owner's bond, letter of credit, or certificate of
             8143      deposit; or
             8144          (b) the former owner has refunded all unearned payments to consumers.
             8145          (7) If a health spa ceases operation or relocates and fails to offer an alternative location
             8146      within five miles, the health spa shall provide the division with 45 days prior notice.
             8147          Section 144. Section 13-25a-109 is amended to read:
             8148           13-25a-109. No-call database.
             8149          (1) (a) In accordance with Subsection (1)(b), the division shall establish and provide for

             8150      the operation of a no-call database to compile a list of telephone numbers of persons who have
             8151      provided notice of the person's objection to receiving an unsolicited telephone call.
             8152          (b) The no-call database described in Subsection (1)(a) shall consist of the Utah
             8153      telephone numbers contained in the national "do-not-call" registry established and maintained by
             8154      the Federal Trade Commission pursuant to 16 C.F.R. 310.4(b)(1)(iii)(B).
             8155          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             8156      Administrative Rulemaking Act, the division may adopt rules to:
             8157          (a) define the improper use of the no-call database;
             8158          (b) define administrative fines for the improper use of the no-call database, which may
             8159      not be greater than those imposed for a violation of the national "do-not-call" registry described
             8160      in Subsection (1)(b); and
             8161          (c) define administrative fines against a person that registers another person to the
             8162      no-call database without that person's consent.
             8163          (3) Information contained in the no-call database maintained under this section shall be
             8164      classified as private under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             8165      Access and Management Act, and shall be used only for purposes of:
             8166          (a) compliance with this chapter; or
             8167          (b) a proceeding or action to enforce this chapter.
             8168          Section 145. Section 13-26-3 is amended to read:
             8169           13-26-3. Registration and bond required.
             8170          (1) (a) Unless exempt under Section 13-26-4 , each telephone soliciting business shall
             8171      register annually with the division before engaging in telephone solicitations if:
             8172          (i) the telephone soliciting business engages in telephone solicitations that:
             8173          (A) originate in Utah; or
             8174          (B) are received in Utah; or
             8175          (ii) the telephone soliciting business conducts any business operations in Utah.
             8176          (b) The registration form shall designate an agent residing in this state who is
             8177      authorized by the telephone soliciting business to receive service of process in any action

             8178      brought by this state or a resident of this state.
             8179          (c) If a telephone soliciting business fails to designate an agent to receive service or fails
             8180      to appoint a successor to the agent:
             8181          (i) the business' application for an initial or renewal registration shall be denied; and
             8182          (ii) any current registration shall be suspended until an agent is designated.
             8183          (2) The division may impose an annual registration fee set pursuant to Section
             8184      [ 63-38-3.2 ] 63J-1-303 .
             8185          (3) (a) Each telephone soliciting business engaging in telephone solicitation or sales in
             8186      this state shall obtain and maintain the following security:
             8187          (i) a performance bond issued by a surety authorized to transact surety business in this
             8188      state;
             8189          (ii) an irrevocable letter of credit issued by a financial institution authorized to do
             8190      business in this state; or
             8191          (iii) a certificate of deposit held in this state in a depository institution regulated by the
             8192      Department of Financial Institutions.
             8193          (b) The bond, letter of credit, or certificate of deposit shall be payable to the division for
             8194      the benefit of any consumer who incurs damages as the result of any telephone solicitation or
             8195      sales violation of this chapter.
             8196          (c) The division may recover from the bond, letter of credit, or certificate of deposit
             8197      investigative costs, attorneys' fees, and other costs of collecting and distributing funds under this
             8198      section and the costs of promoting consumer education, but only if the consumer has first
             8199      recovered full damages.
             8200          (d) A telephone soliciting business shall keep a bond, certificate of deposit, or letter of
             8201      credit in force for one year after it notifies the division in writing that it has ceased all activities
             8202      regulated by this chapter.
             8203          (e) The amount to be posted in the form of a bond, irrevocable letter of credit, or
             8204      certificate of deposit shall be:
             8205          (i) $25,000 if:

             8206          (A) neither the telephone soliciting business nor any affiliated person has violated this
             8207      chapter within three years preceding the date of the application; and
             8208          (B) the telephone soliciting business has fewer than ten employees;
             8209          (ii) $50,000 if:
             8210          (A) neither the telephone soliciting business nor any affiliated person has violated this
             8211      chapter within three years preceding the date of the application; and
             8212          (B) the telephone soliciting business has ten or more employees; or
             8213          (iii) $75,000 if the telephone soliciting business or any affiliated person has violated this
             8214      chapter within three years preceding the date of the application.
             8215          (f) For purposes of Subsection (3)(e) an "affiliated person" means a contractor,
             8216      director, employee, officer, owner, or partner of the telephone soliciting business.
             8217          (4) The division may establish by rule the registration requirements for telephone
             8218      soliciting businesses under the terms of [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             8219      Administrative Rulemaking Act. An administrative proceeding conducted by the division under
             8220      this chapter shall comply with the requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             8221      Administrative Procedures Act.
             8222          (5) The division director may revoke a registration under this section for any violation
             8223      of this chapter.
             8224          Section 146. Section 13-32a-106.5 is amended to read:
             8225           13-32a-106.5. Confidentiality of pawn and purchase transactions.
             8226          (1) All pawn and purchase transaction records delivered to a local law enforcement
             8227      official or transmitted to the central database pursuant to Section 13-32a-106 are protected
             8228      records under Section [ 63-2-304 ] 63G-2-305 . These records may be used only by law
             8229      enforcement officials and the division and only for the law enforcement and administrative
             8230      enforcement purposes of:
             8231          (a) investigating possible criminal conduct involving the property delivered to the
             8232      pawnbroker in a pawn or purchase transaction;
             8233          (b) investigating a pawnbroker's possible violation of the record keeping or reporting

             8234      requirements of this chapter when the local law enforcement official, based on a review of the
             8235      records and information received, has reason to believe that a violation has occurred;
             8236          (c) responding to an inquiry from a person claiming ownership of described property by
             8237      searching the database to determine if property matching the description has been delivered to a
             8238      pawnbroker by another person in a pawn or purchase transaction and if so, obtaining from the
             8239      database:
             8240          (i) a description of the property;
             8241          (ii) the name and address of the pawnbroker who received the property; and
             8242          (iii) the name, address, and date of birth of the conveying person; and
             8243          (d) take enforcement action under Section 13-2-5 against a pawnbroker.
             8244          (2) (a) A person may not knowingly and intentionally use, release, publish, or otherwise
             8245      make available to any person or entity any information obtained from the database for any
             8246      purpose other than those specified in Subsection (1).
             8247          (b) Each separate violation of this Subsection (2) is subject to a civil penalty not to
             8248      exceed $250.
             8249          Section 147. Section 13-32a-111 is amended to read:
             8250           13-32a-111. Fees to fund training and central database.
             8251          (1) On and after January 1, 2005, each pawnshop or secondhand merchandise dealer in
             8252      operation shall annually pay $250 to the division, to be deposited in the account.
             8253          (2) On and after January 1, 2005, each law enforcement agency that participates in the
             8254      use of the database shall annually pay to the division a fee of $2 per sworn law enforcement
             8255      officer who is employed by the agency as of January 1 of that year. The fee shall be deposited
             8256      in the account.
             8257          (3) The fees under Subsections (1) and (2) shall be paid to the account annually on or
             8258      before January 30.
             8259          (4) (a) If a law enforcement agency outside Utah requests access to the central
             8260      database, the requesting agency shall pay a yearly fee of $750 for the fiscal year beginning July
             8261      1, 2006, which shall be deposited in the account.

             8262          (b) The board may establish the fee amount for fiscal years beginning on and after July
             8263      1, 2007 under Section [ 63-38-3.2 ] 63J-1-303 .
             8264          Section 148. Section 13-34-104 is amended to read:
             8265           13-34-104. Prohibited acts -- Exceptions -- Responsibilities of proprietary schools.
             8266          (1) Except as provided in this chapter, a proprietary school may not offer, sell, or award
             8267      a degree or any other type of educational credential unless the student has enrolled in and
             8268      successfully completed a prescribed program of study as outlined in the proprietary school's
             8269      catalogue.
             8270          (2) The prohibition described in Subsection (1) does not apply to:
             8271          (a) honorary credentials clearly designated as such on the front side of a diploma; or
             8272          (b) certificates and awards by a proprietary school that offers other educational
             8273      credentials requiring enrollment in and successful completion of a prescribed program of study
             8274      in compliance with the requirements of this chapter.
             8275          (3) A proprietary school must provide bona fide instruction through student-faculty
             8276      interaction.
             8277          (4) A proprietary school may not enroll a student in a program unless the proprietary
             8278      school has made a good-faith determination that the student has the ability to benefit from the
             8279      program.
             8280          (5) A proprietary school may not make or cause to be made any oral, written, or visual
             8281      statement or representation that an institution described in Subsection 13-34-107 (2)(a)(ii)
             8282      knows or should know to be:
             8283          (a) false;
             8284          (b) deceptive;
             8285          (c) substantially inaccurate; or
             8286          (d) misleading.
             8287          (6) The division shall establish standards and criteria by rule made in accordance with
             8288      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the
             8289      following:

             8290          (a) the awarding of educational credentials;
             8291          (b) bona fide instruction through student-faculty interaction; and
             8292          (c) determination of the ability of a student to benefit from a program.
             8293          Section 149. Section 13-34-107 is amended to read:
             8294           13-34-107. Advertising, recruiting, or operating a proprietary school -- Required
             8295      registration statement or exemption -- Certificate of registration -- Registration does not
             8296      constitute endorsement.
             8297          (1) (a) Unless an institution complies with Subsection (1)(b), the institution may not do
             8298      any of the following in this state:
             8299          (i) advertise a proprietary school;
             8300          (ii) recruit students for a proprietary school; or
             8301          (iii) operate a proprietary school.
             8302          (b) An institution may not engage in an activity described in Subsection (1)(a) unless
             8303      the institution:
             8304          (i) (A) files with the division a registration statement relating to the proprietary school
             8305      that is in compliance with:
             8306          (I) applicable rules made by the division; and
             8307          (II) the requirements set forth in this chapter; and
             8308          (B) obtains a certificate of registration; or
             8309          (ii) establishes an exemption with the division.
             8310          (2) (a) The registration statement or exemption described in Subsection (1) shall be:
             8311          (i) verified by the oath or affirmation of the owner or a responsible officer of the
             8312      proprietary school filing the registration statement or exemption; and
             8313          (ii) include a certification as to whether any of the following has violated laws, federal
             8314      regulations, or state rules as determined in a criminal, civil, or administrative proceeding:
             8315          (A) the proprietary school; or
             8316          (B) any of the following with respect to the proprietary school:
             8317          (I) an owner;

             8318          (II) an officer;
             8319          (III) a director;
             8320          (IV) an administrator;
             8321          (V) a faculty member;
             8322          (VI) a staff member; or
             8323          (VII) an agent.
             8324          (b) The proprietary school shall:
             8325          (i) make available, upon request, a copy of the registration statement, showing the date
             8326      upon which it was filed; and
             8327          (ii) display the certificate of registration obtained from the division in a conspicuous
             8328      place on the proprietary school's premises.
             8329          (3) (a) A registration statement and the accompanying certificate of registration are not
             8330      transferable.
             8331          (b) In the event of a change in ownership or in the governing body of the proprietary
             8332      school, the new owner or governing body, within 30 days after the change, shall file a new
             8333      registration statement.
             8334          (4) Except as provided in Subsection (3)(b), a registration statement or a renewal
             8335      statement and the accompanying certificate of registration are effective for a period of two years
             8336      after the date of filing and issuance.
             8337          (5) (a) The division shall establish a graduated fee structure for the filing of registration
             8338      statements by various classifications of institutions pursuant to Section [ 63-38-3.2 ] 63J-1-303 .
             8339          (b) Fees are not refundable.
             8340          (c) Fees shall be deposited in the Commerce Service Fund pursuant to Section 13-1-2 .
             8341          (6) (a) Each proprietary school shall:
             8342          (i) demonstrate fiscal responsibility at the time the proprietary school files its
             8343      registration statement as prescribed by rules of the division; and
             8344          (ii) provide evidence to the division that the proprietary school:
             8345          (A) is financially sound; and

             8346          (B) can reasonably fulfill commitments to and obligations the proprietary school has
             8347      incurred with students and creditors.
             8348          (b) A proprietary school applying for an initial certificate of registration to operate shall
             8349      prepare and submit financial statements and supporting documentation as requested by the
             8350      division.
             8351          (c) A proprietary school applying for renewal of a certificate of registration to operate
             8352      or renewal under new ownership must provide audited financial statements.
             8353          (d) The division may require evidence of financial status at other times when it is in the
             8354      best interest of students to require such information.
             8355          (7) (a) A proprietary school applying for an initial certificate of registration or seeking
             8356      renewal shall provide in a form approved by the division:
             8357          (i) a surety bond;
             8358          (ii) a certificate of deposit; or
             8359          (iii) an irrevocable letter of credit.
             8360          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             8361      Administrative Rulemaking Act, the division may make rules providing for:
             8362          (i) the amount of the bond, certificate, or letter of credit required under Subsection
             8363      (7)(a), not to exceed in amount the anticipated tuition and fees to be received by the proprietary
             8364      school during a school year;
             8365          (ii) the execution of the bond, certificate, or letter of credit;
             8366          (iii) cancellation of the bond, certificate, or letter of credit during or at the end of the
             8367      registration term; and
             8368          (iv) any other matters related to providing the bond, certificate, or letter of credit
             8369      required under Subsection (7)(a).
             8370          (c) The bond, certificate, or letter of credit shall be used as a protection against loss of
             8371      advanced tuition, book fees, supply fees, or equipment fees:
             8372          (i) collected by the proprietary school from a student or a student's parent, guardian, or
             8373      sponsor prior to the completion of the program or courses for which it was collected; or

             8374          (ii) for which the student is liable.
             8375          (8) (a) Except as provided in Section 13-34-113 , the division may not refuse acceptance
             8376      of a registration statement that is:
             8377          (i) tendered for filing and, based on a preliminary review, appears to be in compliance
             8378      with Subsections (1), (2), and (6); and
             8379          (ii) accompanied by:
             8380          (A) the required fee; and
             8381          (B) one of the following required by Subsection (7):
             8382          (I) surety bond;
             8383          (II) certificate of deposit; or
             8384          (III) irrevocable letter of credit.
             8385          (b) A certificate of registration is effective upon the date of issuance.
             8386          (c) The responsibility of compliance is upon the proprietary school and not upon the
             8387      division.
             8388          (d) (i) If it appears to the division that a registration statement on file may not be in
             8389      compliance with this chapter, the division may advise the proprietary school as to the apparent
             8390      deficiencies.
             8391          (ii) After a proprietary school has been notified of a deficiency under Subsection
             8392      (8)(d)(i), a new or amended statement may be presented for filing by the proprietary school,
             8393      accompanied by:
             8394          (A) the required fee; and
             8395          (B) one of the following required by Subsection (7):
             8396          (I) surety bond;
             8397          (II) certificate of deposit; or
             8398          (III) irrevocable letter of credit.
             8399          (9) The following does not constitute and may not be represented by any person to
             8400      constitute, an endorsement or approval of the proprietary school by either the division or the
             8401      state:

             8402          (a) an acceptance of:
             8403          (i) a registration statement;
             8404          (ii) a renewal statement; or
             8405          (iii) an amended registration statement; and
             8406          (b) issuance of a certificate of registration.
             8407          Section 150. Section 13-34-113 is amended to read:
             8408           13-34-113. Denial, suspension, or revocation of a certificate of registration --
             8409      Limitations.
             8410          (1) In accordance with Chapter 2, Division of Consumer Protection, and [Title 63,
             8411      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, the division may initiate
             8412      proceedings to deny, suspend, or revoke a certificate of registration to operate a proprietary
             8413      school under this chapter if:
             8414          (a) the division finds that the order is in the public interest; and
             8415          (b) (i) the registration statement or renewal statement is incomplete, false, or misleading
             8416      in any respect;
             8417          (ii) the division determines that the educational credential associated with the
             8418      proprietary school represents the undertaking or completion of educational achievement that has
             8419      not been undertaken and earned; or
             8420          (iii) the proprietary school or an individual described in Subsection
             8421      13-34-107 (2)(a)(ii)(B) has:
             8422          (A) violated any provision of:
             8423          (I) this chapter;
             8424          (II) the rules made by the division pursuant to this chapter; or
             8425          (III) a commitment made in a registration statement for a certificate of registration to
             8426      operate the proprietary school;
             8427          (B) caused or allowed to occur a violation of any provision of:
             8428          (I) this chapter;
             8429          (II) the rules made by the division pursuant to this chapter; or

             8430          (III) a commitment made in a registration statement for a certificate of registration to
             8431      operate the proprietary school;
             8432          (C) been enjoined by any court, or is the subject of an administrative or judicial order
             8433      issued in this or another state, if the injunction or order:
             8434          (I) includes a finding or admission of fraud, breach of fiduciary duty, or material
             8435      misrepresentation; or
             8436          (II) was based on a finding of lack of integrity, truthfulness, or mental competence;
             8437          (D) been convicted of a crime involving moral turpitude;
             8438          (E) obtained or attempted to obtain a certificate of registration under this chapter by
             8439      misrepresentation;
             8440          (F) failed to timely file with the division any report required by:
             8441          (I) this chapter; or
             8442          (II) rules made by the division pursuant to this chapter;
             8443          (G) failed to furnish information requested by the division; or
             8444          (H) failed to pay an administrative fine imposed by the division in accordance with this
             8445      chapter.
             8446          (2) Division staff may place reasonable limits upon a proprietary school's continued
             8447      certificate of registration to operate if:
             8448          (a) there are serious concerns about the proprietary school's ability to provide the
             8449      training in the manner approved by the division; and
             8450          (b) limitation is warranted to protect the students' interests.
             8451          (3) The division may:
             8452          (a) conduct a criminal background check on an individual described in Subsection
             8453      13-34-107 (2)(a)(ii)(B); and
             8454          (b) require a proprietary school to provide to the division any information necessary to
             8455      conduct a criminal background check on an individual described in Subsection
             8456      13-34-107 (2)(a)(ii)(B).
             8457          Section 151. Section 13-35-104 is amended to read:

             8458           13-35-104. Powers and duties of the advisory board and the executive director.
             8459          (1) (a) Except as provided in Subsection 13-35-106 (3), the advisory board shall make
             8460      recommendations to the executive director on the administration and enforcement of this
             8461      chapter, including adjudicative and rulemaking proceedings.
             8462          (b) The executive director shall:
             8463          (i) consider the advisory board's recommendations; and
             8464          (ii) issue any final decision by the department.
             8465          (2) The executive director, in consultation with the advisory board, shall make rules for
             8466      the administration of this chapter in accordance with [Title 63, Chapter 46a] Title 63G, Chapter
             8467      3, Utah Administrative Rulemaking Act.
             8468          (3) (a) An adjudicative proceeding under this chapter shall be conducted in accordance
             8469      with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             8470          (b) In an adjudicative proceeding under this chapter, any order issued by the executive
             8471      director:
             8472          (i) shall comply with Section [ 63-46b-10 ] 63G-4-208 , whether the proceeding is a
             8473      formal or an informal adjudicative proceeding under [Title 63, Chapter 46b] Title 63G, Chapter
             8474      4, Administrative Procedures Act; and
             8475          (ii) if the order modifies or rejects a finding of fact in a recommendation from the
             8476      advisory board, shall be made on the basis of information learned from the executive director's:
             8477          (A) personal attendance at the hearing; or
             8478          (B) review of the record developed at the hearing.
             8479          Section 152. Section 13-35-105 is amended to read:
             8480           13-35-105. Registration -- Fees.
             8481          (1) A franchisee or franchisor doing business in this state shall:
             8482          (a) annually register or renew its registration with the department in a manner
             8483      established by the department; and
             8484          (b) pay an annual registration fee in an amount determined by the department in
             8485      accordance with Sections 13-1-2 and [ 63-38-3.2 ] 63J-1-303 .

             8486          (2) The department shall register or renew the registration of a franchisee or franchisor
             8487      if the franchisee or franchisor complies with this chapter and rules made by the department
             8488      under this chapter.
             8489          (3) A franchisee or franchisor registered under this section shall comply with this
             8490      chapter and any rules made by the department under this chapter including any amendments to
             8491      this chapter or the rules made after a franchisee or franchisor enter into a franchise agreement.
             8492          (4) The fee imposed under Subsection (1)(b) shall be collected by the department and
             8493      deposited into the Commerce Service Fund.
             8494          (5) Notwithstanding Subsection (1), an agent, officer, or field or area representative of
             8495      a franchisor does not need to be registered under this section if the franchisor is registered under
             8496      this section.
             8497          Section 153. Section 13-35-106 is amended to read:
             8498           13-35-106. Administrative proceedings commenced by the agency.
             8499          (1) Except as provided in Subsection (3), after a hearing and after receipt of the
             8500      advisory board's recommendation, if the executive director finds that a person has violated this
             8501      chapter or any rule made under this chapter, the executive director may:
             8502          (a) issue a cease and desist order; and
             8503          (b) assess an administrative fine.
             8504          (2) (a) In determining the amount and appropriateness of an administrative fine under
             8505      Subsection (1), the executive director shall consider:
             8506          (i) the gravity of the violation;
             8507          (ii) any history of previous violations; and
             8508          (iii) any attempt made by the person to retaliate against another person for seeking relief
             8509      under this chapter or other federal or state law relating to the motor vehicle industry.
             8510          (b) In addition to any other action permitted under Subsection (1), the department may
             8511      file an action with a court seeking to enforce the executive director's order and pursue the
             8512      executive director's assessment of a fine in an amount not to exceed $5,000 for each day a
             8513      person violates an order of the executive director.

             8514          (3) (a) In addition to the grounds for issuing an order on an emergency basis listed in
             8515      Subsection [ 63-46b-20 ] 63G-4-502 (1), the executive director may issue an order on an
             8516      emergency basis if the executive director determines that irreparable damage is likely to occur if
             8517      immediate action is not taken.
             8518          (b) In issuing an emergency order under Subsection (3)(a), the executive director shall
             8519      comply with the requirements of Subsections [ 63-46b-20 ] 63G-4-502 (2) and (3).
             8520          Section 154. Section 13-35-107 is amended to read:
             8521           13-35-107. Administrative proceedings -- Request for agency action.
             8522          (1) (a) A person may commence an adjudicative proceeding in accordance with this
             8523      chapter and with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act,
             8524      to:
             8525          (i) remedy a violation of this chapter;
             8526          (ii) obtain approval of an act regulated by this chapter; or
             8527          (iii) obtain any determination that this chapter specifically authorizes that person to
             8528      request.
             8529          (b) A person shall commence an adjudicative proceeding by filing a request for agency
             8530      action in accordance with Section [ 63-46b-3 ] 63G-4-201 .
             8531          (2) After receipt of the advisory board's recommendation, the executive director shall
             8532      apportion in a fair and equitable manner between the parties any costs of the adjudicative
             8533      proceeding, including reasonable [attorney's] attorney fees.
             8534          Section 155. Section 13-39-201 is amended to read:
             8535           13-39-201. Establishment of child protection registry.
             8536          (1) The division shall:
             8537          (a) establish and operate a child protection registry to compile and secure a list of
             8538      contact points the division has received pursuant to this section; or
             8539          (b) contract with a third party to establish and secure the registry described in
             8540      Subsection (1)(a).
             8541          (2) (a) The division shall implement the registry described in this section with respect to

             8542      email addresses beginning on July 1, 2005.
             8543          (b) The division shall implement the registry described in this section with respect to
             8544      instant message identities.
             8545          (c) The division shall implement the registry described in this section with respect to
             8546      mobile or other telephone numbers.
             8547          (3) (a) A person may register a contact point with the division pursuant to rules
             8548      established by the division under Subsection 13-39-203 (1) if:
             8549          (i) the contact point belongs to a minor;
             8550          (ii) a minor has access to the contact point; or
             8551          (iii) the contact point is used in a household in which a minor is present.
             8552          (b) A school or other institution that primarily serves minors may register its domain
             8553      name with the division pursuant to rules made by the division under Subsection 13-39-203 (1).
             8554          (c) The division shall provide a disclosure in a confirmation message sent to a person
             8555      who registers a contact point under this section that reads: "No solution is completely secure.
             8556      The most effective way to protect children on the Internet is to supervise use and review all
             8557      email messages and other correspondence. Under law, theft of a contact point from the Child
             8558      Protection Registry is a second degree felony. While every attempt will be made to secure the
             8559      Child Protection Registry, registrants and their guardians should be aware that their contact
             8560      points may be at a greater risk of being misappropriated by marketers who choose to disobey
             8561      the law."
             8562          (4) A person desiring to send a communication described in Subsection 13-39-202 (1) to
             8563      a contact point or domain shall:
             8564          (a) use a mechanism established by rule made by the division under Subsection
             8565      13-39-203 (2); and
             8566          (b) pay a fee for use of the mechanism described in Subsection (4)(a) determined by the
             8567      division in accordance with Section [ 63-38-3.2 ] 63J-1-303 .
             8568          (5) The division may implement a program to offer discounted compliance fees to
             8569      senders who meet enhanced security conditions established and verified by the division, the third

             8570      party registry provider, or a designee.
             8571          (6) The contents of the registry, and any complaint filed about a sender who violates
             8572      this chapter, are not subject to public disclosure under [Title 63, Chapter 2] Title 63G, Chapter
             8573      2, Government Records Access and Management Act.
             8574          (7) The state shall promote the registry on the state's official Internet website.
             8575          Section 156. Section 13-39-203 is amended to read:
             8576           13-39-203. Rulemaking authority.
             8577          In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             8578      Rulemaking Act, the division shall make rules to establish procedures under which:
             8579          (1) (a) a person may register a contact point with the division under Section 13-39-201 ,
             8580      including:
             8581          (i) the information necessary to register an instant message identity; and
             8582          (ii) for purposes of Subsection 13-39-102 (1)(b)(iv), an electronic address that is similar
             8583      to a contact point listed in Subsection 13-39-102 (1); and
             8584          (b) a school or other institution that primarily serves minors may register its domain
             8585      name with the division under Section 13-39-201 ;
             8586          (2) the division shall:
             8587          (a) provide a mechanism under which a person described in Subsection 13-39-201 (4)
             8588      may verify compliance with the registry to remove registered contact points from the person's
             8589      communications; and
             8590          (b) establish the mechanism described in Subsection (2)(a) in a manner that protects the
             8591      privacy and security of a contact point registered with the division under Section 13-39-201 ;
             8592      and
             8593          (3) the division may:
             8594          (a) implement a program offering discounted fees to a sender who meets enhanced
             8595      security conditions established and verified by the division, the third party registry provider, or a
             8596      designee; and
             8597          (b) allow the third party registry provider to assist in any public or industry awareness

             8598      campaign promoting the registry.
             8599          Section 157. Section 13-41-102 is amended to read:
             8600           13-41-102. Definitions.
             8601          For purposes of this chapter:
             8602          (1) "Consumer" means a person who acquires a good or service for consumption.
             8603          (2) "Division" means the Division of Consumer Protection.
             8604          (3) (a) "Emergency territory" means the geographical area:
             8605          (i) for which there has been a state of emergency declared; and
             8606          (ii) that is directly affected by the events giving rise to a state of emergency.
             8607          (b) "Emergency territory" does not include a geographical area that is affected by the
             8608      events giving rise to a state of emergency only by economic market forces.
             8609          (4) "Excessive price" means a price for a good or service that exceeds by more than
             8610      10% the average price charged by that person for that good or service in the 30-day period
             8611      immediately preceding the day on which the state of emergency is declared.
             8612          (5) "Good" means any personal property displayed, held, or offered for sale by a
             8613      merchant that is necessary for consumption or use as a direct result of events giving rise to a
             8614      state of emergency.
             8615          (6) "Retail" means the level of distribution where a good or service is typically sold
             8616      directly, or otherwise provided, to a member of the public who is an end-user and does not
             8617      resell the good or service.
             8618          (7) "Service" means any activity that is performed in whole or in part for the purpose of
             8619      financial gain including, but not limited to, personal service, professional service, rental, leasing,
             8620      or licensing for use that is necessary for consumption or use as a direct result of events giving
             8621      rise to a state of emergency.
             8622          (8) "State of emergency" means a declaration of:
             8623          (a) an emergency or major disaster by the President of the United States of America; or
             8624          (b) a state of emergency by the governor under Section [ 63-5a-5 ] 63K-4-203 .
             8625          Section 158. Section 13-42-105 is amended to read:

             8626           13-42-105. Application for registration -- Form, fee, and accompanying
             8627      documents.
             8628          (1) An application for registration as a provider must be in a form prescribed by the
             8629      administrator.
             8630          (2) Subject to adjustment of dollar amounts pursuant to Subsection 13-42-132 (6), an
             8631      application for registration as a provider must be accompanied by:
             8632          (a) the fee established by the administrator in accordance with Section [ 63-38-3.2 ]
             8633      63J-1-303 ;
             8634          (b) the bond required by Section 13-42-113 ;
             8635          (c) identification of all trust accounts required by Section 13-42-122 and an irrevocable
             8636      consent authorizing the administrator to review and examine the trust accounts;
             8637          (d) evidence of insurance in the amount of $250,000:
             8638          (i) against the risks of dishonesty, fraud, theft, and other misconduct on the part of the
             8639      applicant or a director, employee, or agent of the applicant;
             8640          (ii) issued by an insurance company authorized to do business in this state and rated at
             8641      least A by a nationally recognized rating organization;
             8642          (iii) with no deductible;
             8643          (iv) payable to the applicant, the individuals who have agreements with the applicant,
             8644      and this state, as their interests may appear; and
             8645          (v) not subject to cancellation by the applicant without the approval of the
             8646      administrator;
             8647          (e) a record consenting to the jurisdiction of this state containing:
             8648          (i) the name, business address, and other contact information of its registered agent in
             8649      this state for purposes of service of process; or
             8650          (ii) the appointment of the administrator as agent of the provider for purposes of service
             8651      of process; and
             8652          (f) if the applicant is organized as a not-for-profit entity or is exempt from taxation,
             8653      evidence of not-for-profit and tax-exempt status applicable to the applicant under the Internal

             8654      Revenue Code, 26 U.S.C. Section 501.
             8655          Section 159. Section 13-42-109 is amended to read:
             8656           13-42-109. Certification of registration -- Issuance or denial.
             8657          (1) Except as otherwise provided in Subsections (2) and (3), the administrator shall
             8658      issue a certificate of registration as a provider to a person that complies with Sections
             8659      13-42-105 and 13-42-106 .
             8660          (2) The administrator may deny registration if:
             8661          (a) the application contains information that is materially erroneous or incomplete;
             8662          (b) an officer, director, or owner of the applicant has been convicted of a crime, or
             8663      suffered a civil judgment, involving dishonesty or the violation of state or federal securities
             8664      laws;
             8665          (c) the applicant or any of its officers, directors, or owners has defaulted in the payment
             8666      of money collected for others; or
             8667          (d) the administrator finds that the financial responsibility, experience, character, or
             8668      general fitness of the applicant or its owners, directors, employees, or agents does not warrant
             8669      belief that the business will be operated in compliance with this chapter.
             8670          (3) The administrator shall deny registration if:
             8671          (a) the application is not accompanied by the fee established by the administrator in
             8672      accordance with Section [ 63-38-3.2 ] 63J-1-303 ; or
             8673          (b) with respect to an applicant that is organized as a not-for-profit entity or has
             8674      obtained tax-exempt status under the Internal Revenue Code, 26 U.S.C. Section 501, the
             8675      applicant's board of directors is not independent of the applicant's employees and agents.
             8676          (4) Subject to adjustment of the dollar amount pursuant to Subsection 13-42-132 (6), a
             8677      board of directors is not independent for purposes of Subsection (3) if more than one-fourth of
             8678      its members:
             8679          (a) are affiliates of the applicant, as defined in Subsection 13-42-102 (2)(a) or
             8680      13-42-102 (2)(b)(i), (ii), (iv), (v), (vi), or (vii); or
             8681          (b) after the date ten years before first becoming a director of the applicant, were

             8682      employed by or directors of a person that received from the applicant more than $25,000 in
             8683      either the current year or the preceding year.
             8684          Section 160. Section 13-42-110 is amended to read:
             8685           13-42-110. Certificate of registration -- Timing.
             8686          (1) The administrator shall approve or deny an initial registration as a provider within
             8687      120 days after an application is filed. In connection with a request pursuant to Subsection
             8688      13-42-106 (19) for additional information, the administrator may extend the 120-day period for
             8689      not more than 60 days. Within seven days after denying an application, the administrator, in a
             8690      record, shall inform the applicant of the reasons for the denial.
             8691          (2) If the administrator denies an application for registration as a provider or does not
             8692      act on an application within the time prescribed in Subsection (1), the applicant may appeal and
             8693      request a hearing pursuant to [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             8694      Procedures Act.
             8695          (3) Subject to Subsection 13-42-111 (4) and Section 13-42-134 , a registration as a
             8696      provider is valid for one year.
             8697          Section 161. Section 13-42-111 is amended to read:
             8698           13-42-111. Renewal of registration.
             8699          (1) A provider must obtain a renewal of its registration annually.
             8700          (2) An application for renewal of registration as a provider must be in a form prescribed
             8701      by the administrator, signed under penalty of perjury, and:
             8702          (a) be filed no fewer than 30 and no more than 60 days before the registration expires;
             8703          (b) be accompanied by the fee established by the administrator in accordance with
             8704      Section [ 63-38-3.2 ] 63J-1-303 and the bond required by Section 13-42-113 ;
             8705          (c) contain the matter required for initial registration as a provider by Subsections
             8706      13-42-106 (8) and (9) and a financial statement, audited by an accountant licensed to conduct
             8707      audits, for the applicant's fiscal year immediately preceding the application;
             8708          (d) disclose any changes in the information contained in the applicant's application for
             8709      registration or its immediately previous application for renewal, as applicable;

             8710          (e) supply evidence of insurance in an amount equal to the larger of $250,000 or the
             8711      highest daily balance in the trust account required by Section 13-42-122 during the six-month
             8712      period immediately preceding the application:
             8713          (i) against risks of dishonesty, fraud, theft, and other misconduct on the part of the
             8714      applicant or a director, employee, or agent of the applicant;
             8715          (ii) issued by an insurance company authorized to do business in this state and rated at
             8716      least A by a nationally recognized rating organization;
             8717          (iii) with no deductible;
             8718          (iv) payable to the applicant, the individuals who have agreements with the applicant,
             8719      and this state, as their interests may appear; and
             8720          (v) not subject to cancellation by the applicant without the approval of the
             8721      administrator;
             8722          (f) disclose the total amount of money received by the applicant pursuant to plans
             8723      during the preceding 12 months from or on behalf of individuals who reside in this state and the
             8724      total amount of money distributed to creditors of those individuals during that period;
             8725          (g) disclose, to the best of the applicant's knowledge, the gross amount of money
             8726      accumulated during the preceding 12 months pursuant to plans by or on behalf of individuals
             8727      who reside in this state and with whom the applicant has agreements; and
             8728          (h) provide any other information that the administrator reasonably requires to perform
             8729      the administrator's duties under this section.
             8730          (3) Except for the information required by Subsections 13-42-106 (7), (14), and (17)
             8731      and the addresses required by Subsection 13-42-106 (4), the administrator shall make the
             8732      information in an application for renewal of registration as a provider available to the public.
             8733          (4) If a registered provider files a timely and complete application for renewal of
             8734      registration, the registration remains effective until the administrator, in a record, notifies the
             8735      applicant of a denial and states the reasons for the denial.
             8736          (5) If the administrator denies an application for renewal of registration as a provider,
             8737      the applicant, within 30 days after receiving notice of the denial, may appeal and request a

             8738      hearing pursuant to [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures
             8739      Act. Subject to Section 13-42-134 , while the appeal is pending the applicant shall continue to
             8740      provide debt-management services to individuals with whom it has agreements. If the denial is
             8741      affirmed, subject to the administrator's order and Section 13-42-134 , the applicant shall
             8742      continue to provide debt-management services to individuals with whom it has agreements until,
             8743      with the approval of the administrator, it transfers the agreements to another registered provider
             8744      or returns to the individuals all unexpended money that is under the applicant's control.
             8745          Section 162. Section 13-42-112 is amended to read:
             8746           13-42-112. Registration in another state -- Rulemaking.
             8747          (1) (a) Subject to rules made by the administrator, if a provider holds a license or
             8748      certificate of registration in another state authorizing it to provide debt-management services,
             8749      the provider may submit a copy of that license or certificate and the application for it instead of
             8750      an application in the form prescribed by Subsection 13-42-105 (1), Section 13-42-106 , or
             8751      Subsection 13-42-111 (2).
             8752          (b) The administrator shall accept the application and the license or certificate from the
             8753      other state as an application for registration as a provider or for renewal of registration as a
             8754      provider, as appropriate, in this state if:
             8755          (i) the application in the other state contains information substantially similar to or more
             8756      comprehensive than that required in an application submitted in this state;
             8757          (ii) the applicant provides the information required by Subsections 13-42-106 (1), (3),
             8758      (10), (12), and (13);
             8759          (iii) the applicant, under penalty of perjury, certifies that the information contained in
             8760      the application is current or, to the extent it is not current, supplements the application to make
             8761      the information current; and
             8762          (iv) the applicant files a surety bond or substitute in accordance with Section 13-42-113
             8763      or 13-42-114 that is solely payable or available to this state and to individuals who reside in this
             8764      state.
             8765          (2) The administrator, in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,

             8766      Utah Administrative Rulemaking Act, shall make rules designating the states in which a provider
             8767      may have a license or certificate that may be submitted to the administrator in compliance with
             8768      this section.
             8769          Section 163. Section 13-42-132 is amended to read:
             8770           13-42-132. Powers of administrator.
             8771          (1) The administrator may act on its own initiative or in response to complaints and may
             8772      receive complaints, take action to obtain voluntary compliance with this chapter, refer cases to
             8773      the attorney general, and seek or provide remedies as provided in this chapter.
             8774          (2) The administrator may investigate and examine, in this state or elsewhere, by
             8775      subpoena or otherwise, the activities, books, accounts, and records of a person that provides or
             8776      offers to provide debt-management services, or a person to which a provider has delegated its
             8777      obligations under an agreement or this chapter, to determine compliance with this chapter.
             8778      Information that identifies individuals who have agreements with the provider shall not be
             8779      disclosed to the public. In connection with the investigation, the administrator may:
             8780          (a) charge the person the reasonable expenses necessarily incurred to conduct the
             8781      examination;
             8782          (b) require or permit a person to file a statement under oath as to all the facts and
             8783      circumstances of a matter to be investigated; and
             8784          (c) seek a court order authorizing seizure from a bank at which the person maintains a
             8785      trust account required by Section 13-42-122 , any or all money, books, records, accounts, and
             8786      other property of the provider that is in the control of the bank and relates to individuals who
             8787      reside in this state.
             8788          (3) The administrator may adopt rules to implement the provisions of this chapter in
             8789      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             8790      Act.
             8791          (4) The administrator may enter into cooperative arrangements with any other federal
             8792      or state agency having authority over providers and may exchange with any of those agencies
             8793      information about a provider, including information obtained during an examination of the

             8794      provider.
             8795          (5) The administrator shall establish fees in accordance with Section [ 63-38-3.2 ]
             8796      63J-1-303 to be paid by providers for the expense of administering this chapter.
             8797          (6) The administrator, by rule, shall adopt dollar amounts instead of those specified in
             8798      Sections 13-42-102 , 13-42-105 , 13-42-109 , 13-42-113 , 13-42-123 , 13-42-133 , and 13-42-135
             8799      to reflect inflation, as measured by the United States Bureau of Labor Statistics Consumer Price
             8800      Index for All Urban Consumers or, if that index is not available, another index adopted by rule
             8801      by the administrator. The administrator shall adopt a base year and adjust the dollar amounts,
             8802      effective on July 1 of each year, if the change in the index from the base year, as of December
             8803      31 of the preceding year, is at least 10%. The dollar amount must be rounded to the nearest
             8804      $100, except that the amounts in Section 13-42-123 must be rounded to the nearest dollar.
             8805          (7) The administrator shall notify registered providers of any change in dollar amounts
             8806      made pursuant to Subsection (6) and make that information available to the public.
             8807          Section 164. Section 13-42-134 is amended to read:
             8808           13-42-134. Suspension, revocation, or nonrenewal of registration.
             8809          (1) In this section, "insolvent" means:
             8810          (a) having generally ceased to pay debts in the ordinary course of business other than as
             8811      a result of good-faith dispute;
             8812          (b) being unable to pay debts as they become due; or
             8813          (c) being insolvent within the meaning of the federal bankruptcy law, 11 U.S.C. Section
             8814      101 et seq.
             8815          (2) The administrator may suspend, revoke, or deny renewal of a provider's registration
             8816      if:
             8817          (a) a fact or condition exists that, if it had existed when the registrant applied for
             8818      registration as a provider, would have been a reason for denying registration;
             8819          (b) the provider has committed a material violation of this chapter or a rule or order of
             8820      the administrator under this chapter;
             8821          (c) the provider is insolvent;

             8822          (d) the provider or an employee or affiliate of the provider has refused to permit the
             8823      administrator to make an examination authorized by this chapter, failed to comply with
             8824      Subsection 13-42-132 (2)(b) within 15 days after request, or made a material misrepresentation
             8825      or omission in complying with Subsection 13-42-132 (2)(b); or
             8826          (e) the provider has not responded within a reasonable time and in an appropriate
             8827      manner to communications from the administrator.
             8828          (3) If a provider does not comply with Subsection 13-42-122 (6) or if the administrator
             8829      otherwise finds that the public health or safety or general welfare requires emergency action, the
             8830      administrator may order a summary suspension of the provider's registration, effective on the
             8831      date specified in the order.
             8832          (4) If the administrator suspends, revokes, or denies renewal of the registration of a
             8833      provider, the administrator may seek a court order authorizing seizure of any or all of the
             8834      money in a trust account required by Section 13-42-122 , books, records, accounts, and other
             8835      property of the provider which are located in this state.
             8836          (5) If the administrator suspends or revokes a provider's registration, the provider may
             8837      appeal and request a hearing pursuant to [Title 63, Chapter 46b] Title 63G, Chapter 4,
             8838      Administrative Procedures Act.
             8839          Section 165. Section 13-43-203 is amended to read:
             8840           13-43-203. Office of the Property Rights Ombudsman -- Duties.
             8841          (1) The Office of the Property Rights Ombudsman shall:
             8842          (a) develop and maintain expertise in and understanding of takings, eminent domain,
             8843      and land use law;
             8844          (b) assist state agencies and local governments in developing the guidelines required by
             8845      [Title 63, Chapter 90a] Title 63L, Chapter 4, Constitutional Taking Issues;
             8846          (c) at the request of a state agency or local government, assist the state agency or local
             8847      government, in analyzing actions with potential takings implications or other land use issues;
             8848          (d) advise real property owners who have a legitimate potential or actual takings claim
             8849      against a state or local government entity or have questions about takings, eminent domain, and

             8850      land use law;
             8851          (e) identify state or local government actions that have potential takings implications
             8852      and, if appropriate, advise those state or local government entities about those implications; and
             8853          (f) provide information to private citizens, civic groups, government entities, and other
             8854      interested parties about takings, eminent domain, and land use law and their rights and
             8855      responsibilities under the takings, eminent domain, or land use laws through seminars and
             8856      publications, and by other appropriate means.
             8857          (2) The Office of the Property Rights Ombudsman may not represent private property
             8858      owners, state agencies, or local governments in court or in adjudicative proceedings under [Title
             8859      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             8860          (3) No member of the Office of the Property Rights Ombudsman nor a neutral third
             8861      party rendering an advisory opinion under Section 13-43-205 or 13-43-206 , may be compelled
             8862      to testify in a civil action filed concerning the subject matter of any review, mediation, or
             8863      arbitration by, or arranged through, the office.
             8864          (4) (a) Except as provided in Subsection (4)(b), evidence of a review by the Office of
             8865      the Property Rights Ombudsman and the opinions, writings, findings, and determinations of the
             8866      Office of the Property Rights Ombudsman are not admissible as evidence in a judicial action.
             8867          (b) Subsection (4)(a) does not apply to:
             8868          (i) actions brought under authority of Title 78, Chapter 6, Small Claims Courts;
             8869          (ii) a judicial confirmation or review of the arbitration itself as authorized in Title 78,
             8870      Chapter 31a, Utah Uniform Arbitration Act;
             8871          (iii) actions for de novo review of an arbitration award or issue brought under the
             8872      authority of Subsection 13-43-204 (3)(a)(i); or
             8873          (iv) advisory opinions provided for in Sections 13-43-205 and 13-43-206 .
             8874          Section 166. Section 13-43-204 is amended to read:
             8875           13-43-204. Office of Property Rights Ombudsman -- Arbitration or mediation of
             8876      takings or eminent domain disputes.
             8877          (1) If requested by the private property owner and otherwise appropriate, the Office of

             8878      the Property Rights Ombudsman shall mediate, or conduct or arrange arbitration for, disputes
             8879      between private property owners and government entities that involve:
             8880          (a) takings or eminent domain issues;
             8881          (b) actions for eminent domain under Title 78, Chapter 34, Eminent Domain; or
             8882          (c) disputes about relocation assistance under Title 57, Chapter 12, Utah Relocation
             8883      Assistance Act.
             8884          (2) If arbitration or mediation is requested by a private property owner under this
             8885      section, Section 57-12-14 or 78-34-21 , and arranged by the Office of the Property Rights
             8886      Ombudsman, the government entity or condemning entity shall participate in the mediation or
             8887      arbitration as if the matter were ordered to mediation or arbitration by a court.
             8888          (3) (a) (i) In conducting or arranging for arbitration under Subsection (1), the Office of
             8889      the Property Rights Ombudsman shall follow the procedures and requirements of Title 78,
             8890      Chapter 31a, Utah Uniform Arbitration Act.
             8891          (ii) In applying Title 78, Chapter 31a, Utah Uniform Arbitration Act, the arbitrator and
             8892      parties shall treat the matter as if:
             8893          (A) it were ordered to arbitration by a court; and
             8894          (B) the Office of the Property Rights Ombudsman or other arbitrator chosen as
             8895      provided for in this section was appointed as arbitrator by the court.
             8896          (iii) For the purpose of an arbitration conducted under this section, if the dispute to be
             8897      arbitrated is not already the subject of legal action, the district court having jurisdiction over the
             8898      county where the private property involved in the dispute is located is the court referred to in
             8899      Title 78, Chapter 31a, Utah Uniform Arbitration Act.
             8900          (iv) An arbitration award under this chapter may not be vacated under the provisions of
             8901      Subsection 78-31a-124 (1)(e) because of the lack of an arbitration agreement between the
             8902      parties.
             8903          (b) The Office of the Property Rights Ombudsman shall issue a written statement
             8904      declining to arbitrate or to appoint an arbitrator when, in the opinion of the Office of the
             8905      Property Rights Ombudsman:

             8906          (i) the issues are not ripe for review;
             8907          (ii) assuming the alleged facts are true, no cause of action exists under United States or
             8908      Utah law;
             8909          (iii) all issues raised are beyond the scope of the Office of the Property Rights
             8910      Ombudsman's statutory duty to review; or
             8911          (iv) the arbitration is otherwise not appropriate.
             8912          (c) (i) The Office of the Property Rights Ombudsman shall appoint another person to
             8913      arbitrate a dispute when:
             8914          (A) either party objects to the Office of the Property Rights Ombudsman serving as the
             8915      arbitrator and agrees to pay for the services of another arbitrator;
             8916          (B) the Office of the Property Rights Ombudsman declines to arbitrate the dispute for a
             8917      reason other than those stated in Subsection (3)(b) and one or both parties are willing to pay for
             8918      the services of another arbitrator; or
             8919          (C) the Office of the Property Rights Ombudsman determines that it is appropriate to
             8920      appoint another person to arbitrate the dispute with no charge to the parties for the services of
             8921      the appointed arbitrator.
             8922          (ii) In appointing another person to arbitrate a dispute, the Office of the Property Rights
             8923      Ombudsman shall appoint an arbitrator who is agreeable to:
             8924          (A) both parties; or
             8925          (B) the Office of the Property Rights Ombudsman and the party paying for the
             8926      arbitrator.
             8927          (iii) The Office of the Property Rights Ombudsman may, on its own initiative or upon
             8928      agreement of both parties, appoint a panel of arbitrators to conduct the arbitration.
             8929          (iv) The Department of Commerce may pay an arbitrator per diem and reimburse
             8930      expenses incurred in the performance of the arbitrator's duties at the rates established by the
             8931      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             8932          (d) In arbitrating a dispute, the arbitrator shall apply the relevant statutes, case law,
             8933      regulations, and rules of Utah and the United States in conducting the arbitration and in

             8934      determining the award.
             8935          (e) The property owner and government entity may agree in advance of arbitration that
             8936      the arbitration is binding and that no de novo review may occur.
             8937          (f) Arbitration by or through the Office of the Property Rights Ombudsman is not
             8938      necessary before bringing legal action to adjudicate any claim.
             8939          (g) The lack of arbitration by or through the Office of the Property Rights Ombudsman
             8940      does not constitute, and may not be interpreted as constituting, a failure to exhaust available
             8941      administrative remedies or as a bar to bringing legal action.
             8942          (h) Arbitration under this section is not subject to [Title 63, Chapter 46b] Title 63G,
             8943      Chapter 4, Administrative Procedures Act, or Title 78, Chapter 31b, Alternative Dispute
             8944      Resolution Act.
             8945          (i) Within 30 days after an arbitrator issues a final award, and except as provided in
             8946      Subsection (3)(e), any party may submit the award, or any issue upon which the award is based,
             8947      to the district court for de novo review.
             8948          (4) The filing with the Office of the Property Rights Ombudsman of a request for
             8949      mediation or arbitration of a constitutional taking issue does not stay any county or municipal
             8950      land use decision, including the decision of a board of adjustment.
             8951          (5) Members of the Office of the Property Rights Ombudsman may not be compelled to
             8952      testify in a civil action filed concerning the subject matter of any review, mediation, or
             8953      arbitration by the Office of the Property Rights Ombudsman.
             8954          Section 167. Section 13-43-206 is amended to read:
             8955           13-43-206. Advisory opinion -- Process.
             8956          (1) A request for an advisory opinion under Section 13-43-205 shall be:
             8957          (a) filed with the Office of the Property Rights Ombudsman; and
             8958          (b) accompanied by a filing fee of $150.
             8959          (2) The Office of the Property Rights Ombudsman may establish policies providing for
             8960      partial fee waivers for a person who is financially unable to pay the entire fee.
             8961          (3) A person requesting an advisory opinion need not exhaust administrative remedies,

             8962      including remedies described under Section 10-9a-801 or 17-27a-801 , before requesting an
             8963      advisory opinion.
             8964          (4) The Office of the Property Rights Ombudsman shall:
             8965          (a) deliver notice of the request to opposing parties indicated in the request;
             8966          (b) inquire of all parties if there are other necessary parties to the dispute; and
             8967          (c) deliver notice to all necessary parties.
             8968          (5) If a governmental entity is an opposing party, the Office of the Property Rights
             8969      Ombudsman shall deliver the request in the manner provided for in Section [ 63-30d-301 ]
             8970      63G-7-301 .
             8971          (6) (a) The Office of the Property Rights Ombudsman shall promptly determine if the
             8972      parties can agree to a neutral third party to issue an advisory opinion.
             8973          (b) If no agreement can be reached within four business days after notice is delivered
             8974      pursuant to Subsections (4) and (5), the Office of the Property Rights Ombudsman shall appoint
             8975      a neutral third party to issue an advisory opinion.
             8976          (7) All parties that are the subject of the request for advisory opinion shall:
             8977          (a) share equally in the cost of the advisory opinion; and
             8978          (b) provide financial assurance for payment that the neutral third party requires.
             8979          (8) The neutral third party shall comply with the provisions of Section 78-31a-109 , and
             8980      shall promptly:
             8981          (a) seek a response from all necessary parties to the issues raised in the request for
             8982      advisory opinion;
             8983          (b) investigate and consider all responses; and
             8984          (c) issue a written advisory opinion within 15 business days after the appointment of the
             8985      neutral third party under Subsection (6)(b), unless:
             8986          (i) the parties agree to extend the deadline; or
             8987          (ii) the neutral third party determines that the matter is complex and requires additional
             8988      time to render an opinion, which may not exceed 30 calendar days.
             8989          (9) An advisory opinion shall include a statement of the facts and law supporting the

             8990      opinion's conclusions.
             8991          (10) (a) Copies of any advisory opinion issued by the Office of the Property Rights
             8992      Ombudsman shall be delivered as soon as practicable to all necessary parties.
             8993          (b) A copy of the advisory opinion shall be delivered to the government entity in the
             8994      manner provided for in Section [ 63-30d-401 ] 63G-7-401 .
             8995          (11) An advisory opinion issued by the Office of the Property Rights Ombudsman is not
             8996      binding on any party to, nor admissible as evidence in, a dispute involving land use law except
             8997      as provided in Subsection (12).
             8998          (12) (a) If the same issue that is the subject of an advisory opinion is listed as a cause of
             8999      action in litigation, and that cause of action is litigated on the same facts and circumstances and
             9000      is resolved consistent with the advisory opinion, the substantially prevailing party on that cause
             9001      of action may collect reasonable attorney fees and court costs pertaining to the development of
             9002      that cause of action from the date of the delivery of the advisory opinion to the date of the
             9003      court's resolution.
             9004          (b) Nothing in this Subsection (12) is intended to create any new cause of action under
             9005      land use law.
             9006          (13) Unless filed by the local government, a request for an advisory opinion under
             9007      Section 13-43-205 does not stay the progress of a land use application, or the effect of a land
             9008      use decision.
             9009          Section 168. Section 14-1-18 is amended to read:
             9010           14-1-18. Definitions -- Application of Procurement Code to payment and
             9011      performance bonds.
             9012          (1) (a) For purposes of this chapter, "political subdivision" means any county, city,
             9013      town, school district, local district, special service district, community development and renewal
             9014      agency, public corporation, institution of higher education of the state, public agency of any
             9015      political subdivision, and, to the extent provided by law, any other entity which expends public
             9016      funds for construction.
             9017          (b) For purposes of applying Section [ 63-56-504 ] 63G-6-505 to a political subdivision,

             9018      "state" includes "political subdivision."
             9019          (2) Section [ 63-56-504 ] 63G-6-505 applies to all contracts for the construction,
             9020      alteration, or repair of any public building or public work of the state or a political subdivision
             9021      of the state.
             9022          Section 169. Section 15-9-103 is amended to read:
             9023           15-9-103. Administration -- Rulemaking -- Service of process -- Athlete Agents
             9024      Licensing Board.
             9025          (1) (a) This chapter shall be administered by the Division of Occupational and
             9026      Professional Licensing and is subject to the requirements of Title 58, Chapter 1, Division of
             9027      Occupational and Professional Licensing Act, so long as the requirements of Title 58, Chapter
             9028      1, are not inconsistent with the requirements of this chapter.
             9029          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             9030      Administrative Rulemaking Act, the division may make rules necessary to implement the
             9031      provisions of this chapter.
             9032          (2) By acting as an athlete agent in this state, a nonresident individual appoints the
             9033      director of the division as the individual's agent for service of process in any civil action in this
             9034      state related to the individual's acting as an athlete agent in this state.
             9035          (3) (a) There is created the Athlete Agents Licensing Board consisting of four athlete
             9036      agents and one member of the general public.
             9037          (b) The Athlete Agents Licensing Board shall be appointed and serve in accordance
             9038      with Section 58-1-201 .
             9039          (c) The duties and responsibilities of the Athlete Agents Licensing Board are in
             9040      accordance with Sections 58-1-202 and 58-1-203 .
             9041          (d) In addition, the Athlete Agents Licensing Board shall designate one of its members
             9042      on a permanent or rotating basis to:
             9043          (i) assist the division in reviewing complaints concerning the unlawful or unprofessional
             9044      conduct of a licensee; and
             9045          (ii) advise the division in its investigation of these complaints.

             9046          (e) A member of the Athlete Agents Licensing Board who has, under Subsection (3)(d),
             9047      reviewed a complaint or advised in its investigation may be disqualified from participating with
             9048      the board when the board serves as a presiding officer in an adjudicative proceeding concerning
             9049      the complaint.
             9050          Section 170. Section 15-9-105 is amended to read:
             9051           15-9-105. Registration as an athlete agent -- Form -- Requirements.
             9052          (1) An applicant for registration shall submit an application for registration to the
             9053      division in a form prescribed by the division. An application filed under this section is a public
             9054      record under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             9055      Management Act. The application must be in the name of an individual and, except as
             9056      otherwise provided in Subsection (2), signed or otherwise authenticated by the applicant under
             9057      penalty of perjury and state or contain:
             9058          (a) the name of the applicant and the address of the applicant's principal place of
             9059      business;
             9060          (b) the name of the applicant's business or employer, if applicable;
             9061          (c) any business or occupation engaged in by the applicant for the five years
             9062      immediately preceding the date of submission of the application;
             9063          (d) a description of the applicant's:
             9064          (i) formal training as an athlete agent;
             9065          (ii) practical experience as an athlete agent; and
             9066          (iii) educational background relating to the applicant's activities as an athlete agent;
             9067          (e) the names and addresses of three individuals not related to the applicant who are
             9068      willing to serve as references;
             9069          (f) the name, sport, and last-known team for each individual for whom the applicant
             9070      acted as an athlete agent during the five years next preceding the date of submission of the
             9071      application;
             9072          (g) the names and addresses of all persons who are:
             9073          (i) with respect to the athlete agent's business if it is not a corporation, the partners,

             9074      members, officers, managers, associates, or profit-sharers of the business; and
             9075          (ii) with respect to a corporation employing the athlete agent, the officers, directors,
             9076      and any shareholder of the corporation having an interest of 5% or greater;
             9077          (h) whether the applicant or any person named pursuant to Subsection (1)(g) has been
             9078      convicted of a crime that, if committed in this state, would be a crime involving moral turpitude
             9079      or a felony, and identify the crime;
             9080          (i) whether there has been any administrative or judicial determination that the applicant
             9081      or any person named pursuant to Subsection (1)(g) has made a false, misleading, deceptive, or
             9082      fraudulent representation;
             9083          (j) any instance in which the conduct of the applicant or any person named pursuant to
             9084      Subsection (1)(g) resulted in the imposition of a sanction, suspension, or declaration of
             9085      ineligibility to participate in an interscholastic or intercollegiate athletic event on a
             9086      student-athlete or educational institution;
             9087          (k) any sanction, suspension, or disciplinary action taken against the applicant or any
             9088      person named pursuant to Subsection (1)(g) arising out of occupational or professional
             9089      conduct; and
             9090          (l) whether there has been any denial of an application for, suspension or revocation of,
             9091      or refusal to renew, the registration or licensure of the applicant or any person named pursuant
             9092      to Subsection (1)(g) as an athlete agent in any state.
             9093          (2) An individual who has submitted an application for, and holds a certificate of,
             9094      registration or licensure as an athlete agent in another state, may submit a copy of the
             9095      application and certificate in lieu of submitting an application in the form prescribed pursuant to
             9096      Subsection (1). The division shall accept the application and the certificate from the other state
             9097      as an application for registration in this state if the application to the other state:
             9098          (a) was submitted in the other state within six months immediately preceding the
             9099      submission of the application in this state and the applicant certifies that the information
             9100      contained in the application is current;
             9101          (b) contains information substantially similar to or more comprehensive than that

             9102      required in an application submitted in this state; and
             9103          (c) was signed by the applicant under penalty of perjury.
             9104          Section 171. Section 15-9-106 is amended to read:
             9105           15-9-106. Certificate of registration -- Issuance or denial -- Renewal.
             9106          (1) Except as otherwise provided in Subsection (2), the division shall issue a certificate
             9107      of registration to an individual who complies with Subsection 15-9-105 (1) or whose application
             9108      has been accepted under Subsection 15-9-105 (2).
             9109          (2) The division may refuse to issue a certificate of registration if the division
             9110      determines that the applicant has engaged in conduct that has a significant adverse effect on the
             9111      applicant's fitness to act as an athlete agent. In making the determination, the division may
             9112      consider whether the applicant has:
             9113          (a) been convicted of a crime that, if committed in this state, would be a crime involving
             9114      moral turpitude or a felony;
             9115          (b) made a materially false, misleading, deceptive, or fraudulent representation in the
             9116      application or as an athlete agent;
             9117          (c) engaged in conduct that would disqualify the applicant from serving in a fiduciary
             9118      capacity;
             9119          (d) engaged in conduct prohibited by Section 15-9-114 ;
             9120          (e) had a registration or licensure as an athlete agent suspended, revoked, or denied or
             9121      been refused renewal of registration or licensure as an athlete agent in any state;
             9122          (f) engaged in conduct the consequence of which was that a sanction, suspension, or
             9123      declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event was
             9124      imposed on a student-athlete or educational institution; or
             9125          (g) engaged in conduct that significantly, adversely reflects on the applicant's credibility,
             9126      honesty, or integrity.
             9127          (3) In making a determination under Subsection (2), the division shall consider:
             9128          (a) how recently the conduct occurred;
             9129          (b) the nature of the conduct and the context in which it occurred; and

             9130          (c) any other relevant conduct of the applicant.
             9131          (4) An athlete agent may apply to renew a registration by submitting an application for
             9132      renewal in a form prescribed by the division. An application filed under this section is a public
             9133      record under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             9134      Management Act. The application for renewal must be signed by the applicant under penalty of
             9135      perjury and must contain current information on all matters required in an original registration.
             9136          (5) An individual who has submitted an application for renewal of registration or
             9137      licensure in another state, in lieu of submitting an application for renewal in the form prescribed
             9138      pursuant to Subsection (4), may file a copy of the application for renewal and a valid certificate
             9139      of registration or licensure from the other state. The division shall accept the application for
             9140      renewal from the other state as an application for renewal in this state if the application to the
             9141      other state:
             9142          (a) was submitted in the other state within six months immediately preceding the filing
             9143      in this state and the applicant certifies the information contained in the application for renewal is
             9144      current;
             9145          (b) contains information substantially similar to or more comprehensive than that
             9146      required in an application for renewal submitted in this state; and
             9147          (c) was signed by the applicant under penalty of perjury.
             9148          (6) A certificate of registration or a renewal of a registration is valid for two years.
             9149          Section 172. Section 15-9-107 is amended to read:
             9150           15-9-107. Suspension, revocation, or refusal to renew registration.
             9151          (1) The division may suspend, revoke, or refuse to renew a registration for conduct that
             9152      would have justified denial of registration under Subsection 15-9-106 (2).
             9153          (2) The division may suspend, revoke, or refuse to renew a certificate of registration or
             9154      licensure only after proper notice and an opportunity for a hearing. [Title 63, Chapter 46b]
             9155      Title 63G, Chapter 4, Administrative Procedures Act, applies to this chapter.
             9156          Section 173. Section 15-9-109 is amended to read:
             9157           15-9-109. Registration and renewal fees.

             9158          (1) An application for registration or renewal of registration must be accompanied by a
             9159      fee in an amount determined by the division in accordance with Section [ 63-38-3.2 ] 63J-1-303 .
             9160          (2) The division shall establish fees for:
             9161          (a) an initial application for registration;
             9162          (b) an application for registration based upon a certificate of registration or licensure
             9163      issued by another state;
             9164          (c) an application for renewal of registration; and
             9165          (d) an application for renewal of registration based upon an application for renewal of
             9166      registration or licensure submitted in another state.
             9167          Section 174. Section 16-6a-107 is amended to read:
             9168           16-6a-107. Fees.
             9169          (1) Unless otherwise provided by statute, the division shall charge and collect a fee for
             9170      services established by the division in accordance with Section [ 63-38-3.2 ] 63J-1-303 including
             9171      fees:
             9172          (a) for furnishing a certified copy of any document, instrument, or paper relating to a
             9173      domestic or foreign nonprofit corporation; and
             9174          (b) for the certificate and affixing the seal to a certified copy described in Subsection
             9175      (1)(a).
             9176          (2) (a) The division shall provide expedited, 24-hour processing of any item under this
             9177      section upon request.
             9178          (b) The division shall charge and collect additional fees established by the division in
             9179      accordance with Section [ 63-38-3.2 ] 63J-1-303 for expedited service provided under
             9180      Subsection (2)(a).
             9181          (3) (a) The division shall charge and collect a fee determined by the division in
             9182      accordance with Section [ 63-38-3.2 ] 63J-1-303 at the time of any service of process on the
             9183      director of the division as resident agent of a domestic or foreign nonprofit corporation.
             9184          (b) The fee paid under Subsection (3)(a) may be recovered as taxable costs by the party
             9185      to the suit or action causing the service to be made if the party prevails in the suit or action.

             9186          Section 175. Section 16-6a-111 is amended to read:
             9187           16-6a-111. Appeal from division's refusal to file document.
             9188          If the division refuses to file a document delivered to it for filing, in accordance with
             9189      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, the following may
             9190      appeal the refusal to the executive director:
             9191          (1) the domestic or foreign nonprofit corporation for which the filing was requested; or
             9192          (2) the representative of the domestic or foreign nonprofit corporation for which filing
             9193      was requested.
             9194          Section 176. Section 16-6a-1413 is amended to read:
             9195           16-6a-1413. Appeal from denial of reinstatement.
             9196          (1) If the division denies a nonprofit corporation's application for reinstatement
             9197      following administrative dissolution under Section 16-6a-1411 , the division shall mail to the
             9198      nonprofit corporation in the manner provided in Subsection 16-6a-1411 (6) written notice:
             9199          (a) setting forth the reasons for denying the application; and
             9200          (b) stating that the nonprofit corporation has the right to appeal the division's
             9201      determination to the executive director as provided in Subsection (2).
             9202          (2) If the division denies a nonprofit corporation's application for reinstatement
             9203      following administrative dissolution, in accordance with [Title 63, Chapter 46b] Title 63G,
             9204      Chapter 4, Administrative Procedures Act, the following may appeal the denial to the executive
             9205      director:
             9206          (a) the nonprofit corporation for which the reinstatement was requested; or
             9207          (b) the representative of the nonprofit corporation for which reinstatement was
             9208      requested.
             9209          Section 177. Section 16-6a-1502 is amended to read:
             9210           16-6a-1502. Consequences of conducting affairs without authority.
             9211          (1) A foreign nonprofit corporation, its successor, or anyone acting on its behalf,
             9212      conducting affairs in this state without authority may not be permitted to maintain a proceeding
             9213      in any court in this state until an application for authority to conduct affairs is filed.

             9214          (2) (a) A foreign nonprofit corporation or successor that conducts affairs in this state
             9215      without authority shall be liable to this state in an amount equal to the sum of:
             9216          (i) all fees imposed by this chapter or prior law that would have been paid for all years
             9217      or portions of years during which it conducted affairs in this state without authority; and
             9218          (ii) all penalties imposed by the division for failure to pay the fees described in
             9219      Subsection (2)(a)(i).
             9220          (b) An application for authority to conduct affairs may not be filed until payment of the
             9221      amounts due under this Subsection (2) is made.
             9222          (3) (a) A court may stay a proceeding commenced by a foreign nonprofit corporation,
             9223      its successor, or assignee until it determines whether the foreign nonprofit corporation, its
             9224      successor, or assignee is required to file an application for authority to conduct affairs.
             9225          (b) If the court determines that a foreign nonprofit corporation, its successor, or
             9226      assignee is required to file an application for authority to conduct affairs, the court may further
             9227      stay the proceeding until the required application for authority to conduct affairs has been filed
             9228      with the division.
             9229          (4) (a) A foreign nonprofit corporation that conducts affairs in this state without
             9230      authority is subject to a civil penalty, payable to this state, of $100 for each day in which it
             9231      transacts business in this state without authority.
             9232          (b) Notwithstanding Subsection (4)(a), the civil penalty imposed under Subsection
             9233      (4)(a) may not exceed a total of $5,000 for each year.
             9234          (c) The following are subject to a civil penalty payable to the state not exceeding
             9235      $1,000:
             9236          (i) each officer of a foreign nonprofit corporation who authorizes, directs, or
             9237      participates in the conducting of affairs in this state without authority; and
             9238          (ii) each agent of a foreign nonprofit corporation who transacts business in this state on
             9239      behalf of a foreign nonprofit corporation that is not authorized.
             9240          (d) The division may make rules to carry out the provisions of this Subsection (4),
             9241      including procedures to request the division to abate for reasonable cause a penalty imposed

             9242      under this Subsection (4).
             9243          (e) If the division imposes a civil penalty under this Subsection (4) on a foreign
             9244      nonprofit corporation, in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4,
             9245      Administrative Procedures Act, the following may appeal the civil penalty to the executive
             9246      director:
             9247          (i) the foreign nonprofit corporation; or
             9248          (ii) the representative of the foreign nonprofit corporation.
             9249          (5) (a) The civil penalties set forth in Subsection (4) may be recovered in an action
             9250      brought:
             9251          (i) in an appropriate court in Salt Lake County; or
             9252          (ii) in any other county in this state in which the foreign nonprofit corporation:
             9253          (A) has a registered, principal, or business office; or
             9254          (B) has conducted affairs.
             9255          (b) Upon a finding by the court that a foreign nonprofit corporation or any of its
             9256      officers or agents have conducted affairs in this state in violation of this part, in addition to or
             9257      instead of a civil penalty, the court shall issue an injunction restraining:
             9258          (i) the further conducting of affairs of the foreign nonprofit corporation; and
             9259          (ii) the further exercise of any corporate rights and privileges in this state.
             9260          (c) Upon issuance of the injunction described in Subsection (5)(b), the foreign nonprofit
             9261      corporation shall be enjoined from conducting affairs in this state until:
             9262          (i) all civil penalties have been paid, plus any interest and court costs assessed by the
             9263      court; and
             9264          (ii) the foreign nonprofit corporation has otherwise complied with the provisions of this
             9265      part.
             9266          (6) Notwithstanding Subsections (1) and (2), the failure of a foreign nonprofit
             9267      corporation to have authority to conduct affairs in this state does not:
             9268          (a) impair the validity of its corporate acts; or
             9269          (b) prevent the foreign nonprofit corporation from defending any proceeding in this

             9270      state.
             9271          Section 178. Section 16-6a-1517 is amended to read:
             9272           16-6a-1517. Appeal from revocation.
             9273          If the division revokes the authority of a foreign nonprofit corporation to conduct affairs
             9274      in this state, in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             9275      Procedures Act, the following may appeal the refusal to the executive director:
             9276          (1) the foreign nonprofit corporation; or
             9277          (2) the representative of the foreign nonprofit corporation.
             9278          Section 179. Section 16-7-11 is amended to read:
             9279           16-7-11. Fees for filing documents and issuing certificates.
             9280          The division shall charge and collect a fee determined by it pursuant to Section
             9281      [ 63-38-3.2 ] 63J-1-303 for:
             9282          (1) filing articles of incorporation of a corporation sole and issuing a certificate of
             9283      incorporation;
             9284          (2) filing articles of amendment and issuing a certificate of amendment;
             9285          (3) issuing each additional certificate of incorporation or amendment;
             9286          (4) filing a certificate of authorized agent and issuing the agent's certificate;
             9287          (5) filing a revocation of authority;
             9288          (6) furnishing a certified copy of any document, instrument, or paper relating to a
             9289      corporation sole and affixing its seal;
             9290          (7) issuing a certificate of dissolution; and
             9291          (8) issuing a certificate of merger or consolidation.
             9292          Section 180. Section 16-10a-122 is amended to read:
             9293           16-10a-122. Fees.
             9294          Unless otherwise provided by statute, the division shall charge and collect fees for
             9295      services as provided in Section [ 63-38-3.2 ] 63J-1-303 .
             9296          Section 181. Section 16-10a-1423 is amended to read:
             9297           16-10a-1423. Appeal from denial of reinstatement.

             9298          If the division denies a corporation's application for reinstatement under Section
             9299      16-10a-1422 following administrative dissolution, the division shall mail to the corporation in
             9300      the manner provided in Subsection 16-10a-1421 (6) written notice:
             9301          (1) setting forth the reasons for denying the application; and
             9302          (2) stating that the corporation has the right to appeal the division's determination to the
             9303      executive director of the Department of Commerce in accordance with [Title 63, Chapter 46b]
             9304      Title 63G, Chapter 4, Administrative Procedures Act.
             9305          Section 182. Section 16-12-3 is amended to read:
             9306           16-12-3. Declaration of trust -- Filing fee.
             9307          An original and one copy of the declaration of trust of a real estate investment trust shall
             9308      be delivered to the Division of Corporations and Commercial Code, and [he] the division shall
             9309      endorse on the original and one copy the word "filed." The Division of Corporations and
             9310      Commercial Code shall file the original in [his] the division's office, and shall return the copy to
             9311      the trustees or their representatives. The Division of Corporations and Commercial Code may
             9312      charge a fee pursuant to Section [ 63-38-3.2 ] 63J-1-303 for the filing.
             9313          Section 183. Section 16-13-12 is amended to read:
             9314           16-13-12. Licensing, supervision, and examination by commissioner of financial
             9315      institutions -- Fees.
             9316          A development corporation shall be licensed, supervised, and examined by the
             9317      commissioner of financial institutions and shall make such report of its condition from time to
             9318      time as the commissioner shall require. A development corporation shall pay a fee determined
             9319      by the commissioner pursuant to Section [ 63-38-3.2 ] 63J-1-303 for a license and for each
             9320      examination.
             9321          Section 184. Section 16-15-105 is amended to read:
             9322           16-15-105. Filing of certificate -- Fees.
             9323          (1) A business trust is registered when two copies of the certificate of registration are
             9324      filed with the division. The documents to be filed shall be true copies made by photographic,
             9325      xerographic, electronic, or other process that provides similar copy accuracy of a document that

             9326      has been properly executed.
             9327          (2) The division shall endorse the original and one copy of a certificate of registration
             9328      and:
             9329          (a) file the original in the division office; and
             9330          (b) return the copy to the trustee or the trustee's representative.
             9331          (3) The division may charge a fee in accordance with Section [ 63-38-3.2 ] 63J-1-303 for
             9332      the filing.
             9333          Section 185. Section 16-15-107 is amended to read:
             9334           16-15-107. Expiration of filing -- Notice.
             9335          (1) A filing under this chapter shall be effective for a period of three years from the date
             9336      of filing plus the notice period provided in Subsection (2).
             9337          (2) (a) If no new filing is made by or on behalf of the trust who made the original filing
             9338      within three years of the date of filing, the division shall send a notice by regular mail, postage
             9339      prepaid, to the address shown for the registered office in the filing indicating that it will expire
             9340      30 days after the division mailed the notice.
             9341          (b) If no new filing is made within 30 days after the date of the division mailing the
             9342      notice, the business trust's registration expires.
             9343          (3) If the registration of a business trust has expired or has been canceled for failure to
             9344      maintain a registered agent, the business trust may not conduct business in this state until it has
             9345      newly registered with the division under this chapter.
             9346          (4) The division may charge a fee in accordance with Section [ 63-38-3.2 ] 63J-1-303 for
             9347      the renewal of a registration.
             9348          Section 186. Section 16-15-108 is amended to read:
             9349           16-15-108. When amendments are required.
             9350          (1) An amended certificate shall be filed with the division not later than 30 days after
             9351      any change in:
             9352          (a) any person acting as a trustee of the trust, or the address of any trustee;
             9353          (b) the registered agent of the trust;

             9354          (c) the registered office of the business trust; or
             9355          (d) in any information required to be filed with the division under this chapter.
             9356          (2) The amended certificate shall be signed by each trustee of the business trust and
             9357      filed in the same manner as a certificate of registration under Section 16-15-105 .
             9358          (3) The division may charge a fee in accordance with Section [ 63-38-3.2 ] 63J-1-303 for
             9359      amending a certificate of registration.
             9360          Section 187. Section 17-15-24 is amended to read:
             9361           17-15-24. Procurement -- Use of recycled goods.
             9362          The procurement officer or other person responsible for purchasing supplies for each
             9363      county and each entity created by a county or joined by a county shall:
             9364          (1) maintain for reference a copy of the current listing of recycled items available on a
             9365      state contract as issued by the chief procurement officer appointed under Section [ 63-56-204 ]
             9366      63G-6-204 ; and
             9367          (2) give recycled items consideration when inviting bids and purchasing supplies, in
             9368      compliance with Section 11-37-101 .
             9369          Section 188. Section 17-16-21 is amended to read:
             9370           17-16-21. Fees of county officers.
             9371          (1) As used in this section, "county officer" means all of the county officers enumerated
             9372      in Section 17-53-101 except county recorders, county constables, and county sheriffs.
             9373          (2) (a) Each county officer shall collect, in advance, for exclusive county use and
             9374      benefit:
             9375          (i) all fees established by the county legislative body under Section 17-53-211 ; and
             9376          (ii) any other fees authorized or required by law.
             9377          (b) As long as the displaced homemaker program is authorized by Section 35A-3-114 ,
             9378      the county clerk shall:
             9379          (i) assess $20 in addition to whatever fee for a marriage license is established under
             9380      authority of this section; and
             9381          (ii) transmit $20 from each marriage license fee to the Division of Finance to be credited

             9382      to the displaced homemaker program.
             9383          (c) As long as the Children's Legal Defense Account is authorized by Section
             9384      [ 63-63a-8 ] 51-9-408 , the county clerk shall:
             9385          (i) assess $10 in addition to whatever fee for a marriage license is established under
             9386      authority of this section and in addition to the $20 assessed for the displaced homemaker
             9387      program; and
             9388          (ii) transmit $10 from each marriage license fee to the Division of Finance for deposit in
             9389      the Children's Legal Defense Account.
             9390          (3) This section does not apply to any fees currently being assessed by the state but
             9391      collected by county officers.
             9392          Section 189. Section 17-16a-4 is amended to read:
             9393           17-16a-4. Prohibited use of official position -- Exception.
             9394          (1) Except as provided in Subsection (3), it is an offense for an elected or appointed
             9395      officer, under circumstances not amounting to a violation of Section [ 63-56-1001 ] 63G-6-1001
             9396      or 76-8-105 , to:
             9397          (a) disclose confidential information acquired by reason of [his] the officer's official
             9398      position or use that information to secure special privileges or exemptions for himself or others;
             9399          (b) use or attempt to use [his] the officer's official position to secure special privileges
             9400      for [himself] the officer or for others; or
             9401          (c) knowingly receive, accept, take, seek or solicit, directly or indirectly, any gift or
             9402      loan for [himself] the officer or for another, if the gift or loan tends to influence [him] the officer
             9403      in the discharge of [his] the officer's official duties.
             9404          (2) This section is inapplicable to:
             9405          (a) an occasional nonpecuniary gift having a value of less than $50;
             9406          (b) an award publicly presented;
             9407          (c) any bona fide loan made in the ordinary course of business; or
             9408          (d) political campaign contributions actually used in a political campaign.
             9409          (3) A member of a county legislative body who is also a member of the governing board

             9410      of a provider of mental health or substance abuse services under contract with the county does
             9411      not commit an offense under Subsection (1)(a) or (b) by discharging, in good faith, the duties
             9412      and responsibilities of each position, if the county legislative body member does not participate
             9413      in the process of selecting the mental health or substance abuse service provider.
             9414          Section 190. Section 17-21-17 is amended to read:
             9415           17-21-17. Prohibited acts.
             9416          (1) Upon acceptance of an instrument entitled to be recorded, the recorder may not:
             9417          (a) record the instrument in any manner other than the manner required by this chapter;
             9418      or
             9419          (b) alter, change, obliterate, or insert any new matter in any instrument of record.
             9420          (2) A recorder does not violate this section by:
             9421          (a) denying access to:
             9422          (i) an instrument of record that has been classified as private under Section [ 63-2-302 ]
             9423      63G-2-302 ; or
             9424          (ii) a portion of an instrument of record that has been classified as private under Section
             9425      [ 63-2-302 ] 63G-2-302 ; or
             9426          (b) placing an endorsement, reference, or other note on a document in the course of the
             9427      recorder's work.
             9428          Section 191. Section 17-21-19 is amended to read:
             9429           17-21-19. Records open to inspection -- Copies.
             9430          (1) Unless otherwise classified as private under Section [ 63-2-302 ] 63G-2-302 , all
             9431      instruments of record and all indexes required by this chapter are open to public inspection
             9432      during office hours.
             9433          (2) Upon payment of the applicable fee, a person may obtain copies of a public record.
             9434          Section 192. Section 17-27a-203 is amended to read:
             9435           17-27a-203. Notice of intent to prepare a general plan or comprehensive general
             9436      plan amendments in certain counties.
             9437          (1) Before preparing a proposed general plan or a comprehensive general plan

             9438      amendment, each county of the first or second class shall provide ten calendar days notice of its
             9439      intent to prepare a proposed general plan or a comprehensive general plan amendment to:
             9440          (a) each affected entity;
             9441          (b) the Automated Geographic Reference Center created in Section 63F-1-506 ;
             9442          (c) the association of governments, established pursuant to an interlocal agreement
             9443      under Title 11, Chapter 13, Interlocal Cooperation Act, of which the county is a member; and
             9444          (d) the state planning coordinator appointed under Section [ 63-38d-202 ] 63J-4-202 .
             9445          (2) Each notice under Subsection (1) shall:
             9446          (a) indicate that the county intends to prepare a general plan or a comprehensive
             9447      general plan amendment, as the case may be;
             9448          (b) describe or provide a map of the geographic area that will be affected by the general
             9449      plan or amendment;
             9450          (c) be sent by mail, e-mail, or other effective means;
             9451          (d) invite the affected entities to provide information for the county to consider in the
             9452      process of preparing, adopting, and implementing a general plan or amendment concerning:
             9453          (i) impacts that the use of land proposed in the proposed general plan or amendment
             9454      may have; and
             9455          (ii) uses of land within the county that the affected entity is considering that may
             9456      conflict with the proposed general plan or amendment; and
             9457          (e) include the address of an Internet website, if the county has one, and the name and
             9458      telephone number of a person where more information can be obtained concerning the county's
             9459      proposed general plan or amendment.
             9460          Section 193. Section 17-27a-402 is amended to read:
             9461           17-27a-402. Information and technical assistance from the state.
             9462          Each state official, department, and agency shall:
             9463          (1) promptly deliver any data and information requested by a county, unless the
             9464      disclosure is prohibited by [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             9465      Access and Management Act; and

             9466          (2) furnish any other technical assistance and advice that they have available to the
             9467      county without additional cost to the county.
             9468          Section 194. Section 17-43-202 is amended to read:
             9469           17-43-202. Local substance abuse authorities -- Requirements prior to
             9470      distributing public funds.
             9471          (1) Each local substance abuse authority shall award all public funds in compliance
             9472      with:
             9473          (a) the requirements of [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement
             9474      Code; or
             9475          (b) a county procurement ordinance that requires similar procurement practices.
             9476          (2) If all initial bids on the project are rejected, the authority shall publish a new
             9477      invitation to bid. If no satisfactory bid is received by the authority when the bids received from
             9478      the second invitation are opened, the authority may execute a contract without requiring
             9479      competitive bidding.
             9480          (3) A local substance abuse authority need not comply with the procurement provisions
             9481      of this section when it disburses public funds to another political subdivision of the state or an
             9482      institution of higher education of the state.
             9483          (4) Each contract awarded by a local substance abuse authority shall be for a fixed
             9484      amount and limited period. A contract may be modified due to changes in available funding for
             9485      the same contract purpose without competition.
             9486          Section 195. Section 17-43-302 is amended to read:
             9487           17-43-302. Local mental health authorities -- Requirements prior to distributing
             9488      public funds.
             9489          (1) Each local mental health authority shall award all public funds by complying with
             9490      the requirements of [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code, or by
             9491      complying with a county procurement ordinance which requires similar procurement practices.
             9492          (2) If all initial bids on the project are rejected, the authority shall publish a new
             9493      invitation to bid in the manner specified in this section. If no satisfactory bid is received by the

             9494      authority when the bids received from the second invitation are opened, the authority may
             9495      execute a contract without requiring competitive bidding.
             9496          (3) The local mental health authority need not comply with the procurement provisions
             9497      of this section when it disburses public funds to another political subdivision of the state or an
             9498      institution of higher education of the state.
             9499          (4) Each contract awarded by a local mental health authority shall be for a fixed amount
             9500      and limited period. A contract may be modified due to changes in available funding for the same
             9501      contract purpose without competition.
             9502          Section 196. Section 17-50-302 is amended to read:
             9503           17-50-302. General county powers.
             9504          (1) A county may:
             9505          (a) as prescribed by statute, levy, assess, and collect taxes, borrow money, and levy and
             9506      collect special assessments for benefits conferred; and
             9507          (b) provide services, exercise powers, and perform functions that are reasonably related
             9508      to the safety, health, morals, and welfare of their inhabitants, except as limited or prohibited by
             9509      statute.
             9510          (2) (a) A county may:
             9511          (i) sue and be sued;
             9512          (ii) subject to Subsection (2)(c), acquire real property by tax sale, purchase, lease,
             9513      contract, or gift, and hold the real property as necessary and proper for county purposes;
             9514          (iii) (A) subject to Subsection (2)(b), acquire real property by condemnation, as
             9515      provided in Title 78, Chapter 34, Eminent Domain; and
             9516          (B) hold the real property as necessary and proper for county purposes;
             9517          (iv) as may be necessary to the exercise of its powers, acquire personal property by
             9518      purchase, lease, contract, or gift, and hold such personal property; and
             9519          (v) manage and dispose of its property as the interests of its inhabitants may require.
             9520          (b) (i) For purposes of Subsection (2)(a)(iii), water rights that are not appurtenant to
             9521      land do not constitute real property that may be acquired by the county through condemnation.

             9522          (ii) Nothing in Subsection (2)(a)(iii) may be construed to authorize a county to acquire
             9523      by condemnation the rights to water unless the land to which those water rights are appurtenant
             9524      is acquired by condemnation.
             9525          (c) (i) Except as provided in Subsection (2)(c)(iv), each county intending to acquire real
             9526      property for the purpose of expanding the county's infrastructure or other facilities used for
             9527      providing services that the county offers or intends to offer shall provide written notice, as
             9528      provided in this Subsection (2)(c), of its intent to acquire the property if:
             9529          (A) the property is located:
             9530          (I) outside the boundaries of the unincorporated area of the county; and
             9531          (II) in a county of the first or second class; and
             9532          (B) the intended use of the property is contrary to:
             9533          (I) the anticipated use of the property under the general plan of the county in whose
             9534      unincorporated area or the municipality in whose boundaries the property is located; or
             9535          (II) the property's current zoning designation.
             9536          (ii) Each notice under Subsection (2)(c)(i) shall:
             9537          (A) indicate that the county intends to acquire real property;
             9538          (B) identify the real property; and
             9539          (C) be sent to:
             9540          (I) each county in whose unincorporated area and each municipality in whose
             9541      boundaries the property is located; and
             9542          (II) each affected entity.
             9543          (iii) A notice under this Subsection (2)(c) is a protected record as provided in
             9544      Subsection [ 63-2-304 ] 63G-2-305 (7).
             9545          (iv) (A) The notice requirement of Subsection (2)(c)(i) does not apply if the county
             9546      previously provided notice under Section 17-27a-203 identifying the general location within the
             9547      municipality or unincorporated part of the county where the property to be acquired is located.
             9548          (B) If a county is not required to comply with the notice requirement of Subsection
             9549      (2)(c)(i) because of application of Subsection (2)(c)(iv)(A), the county shall provide the notice

             9550      specified in Subsection (2)(c)(i) as soon as practicable after its acquisition of the real property.
             9551          Section 197. Section 17-50-401 is amended to read:
             9552           17-50-401. Review of claims by county executive -- Auditor review -- Attorney
             9553      review -- Claim requirements -- Approval or disapproval of claim -- Written explanation
             9554      of claim process.
             9555          (1) Subject to Subsection (3), each county executive shall review each claim against the
             9556      county and disapprove or, if payment appears to the county executive to be just, lawful, and
             9557      properly due and owing, approve the claim.
             9558          (2) Upon receiving a notice of claim under Section [ 63-30d-401 ] 63G-7-401 , the
             9559      county clerk shall deliver the notice of claim to the county executive.
             9560          (3) (a) The county executive shall forward all claims regarding liability to the county
             9561      attorney, or, in a county that has a district attorney but not a county attorney, to the district
             9562      attorney for the attorney's review and recommendation to the county executive regarding
             9563      liability and payment.
             9564          (b) Except as provided in Section 17-50-405 , the county executive shall forward all
             9565      claims requesting payment for goods or services to the county auditor for the auditor's review
             9566      and recommendation to the county executive.
             9567          (4) Each claim for goods or services against a county shall:
             9568          (a) itemize the claim, giving applicable names, dates, and particular goods provided or
             9569      services rendered;
             9570          (b) if the claim is for service of process, state the character of process served, upon
             9571      whom served, the number of days engaged, and the number of miles traveled;
             9572          (c) be duly substantiated as to its correctness and as to the fact that it is justly due;
             9573          (d) if the claim is for materials furnished, state to whom the materials were furnished, by
             9574      whom ordered, and the quantity and price agreed upon; and
             9575          (e) be presented to the county executive within a year after the last item of the account
             9576      or credit accrued.
             9577          (5) If the county executive refuses to hear or consider a claim because it is not properly

             9578      made out, the county executive shall cause notice of the refusal to be given to the claimant or
             9579      the claimant's agent and shall allow a reasonable amount of time for the claim to be properly
             9580      itemized and substantiated.
             9581          (6) Each county shall prepare and make available to a person submitting or intending to
             9582      submit a claim under this part a written explanation, in simple and easy to understand language,
             9583      of how to submit a claim to the county and of the county's process for receiving, reviewing, and
             9584      deciding a claim.
             9585          (7) Nothing in this section may be construed to modify the requirements of Section
             9586      [ 63-30d-401 ] 63G-7-401 .
             9587          Section 198. Section 17-53-225 is amended to read:
             9588           17-53-225. County legislative body may adopt Utah Procurement Code --
             9589      Retention of records.
             9590          (1) A county legislative body may adopt any or all of the provisions of [Title 63,
             9591      Chapter 56] Title 63G, Chapter 6, Utah Procurement Code, or the rules promulgated pursuant
             9592      to that code.
             9593          (2) Whenever any county is required by law to receive bids for purchases, construction,
             9594      repairs, or any other purpose requiring the expenditure of funds, that county shall keep on file
             9595      all bids received, together with proof of advertisement by publication or otherwise, for:
             9596          (a) at least three years following the letting of any contract pursuant to those bids; or
             9597          (b) three years following the first advertisement for the bids, if all bids pursuant to that
             9598      advertisement are rejected.
             9599          Section 199. Section 17-53-311 is amended to read:
             9600           17-53-311. Contracting for management, maintenance, operation, or construction
             9601      of jails.
             9602          (1) (a) With the approval of the sheriff, a county executive may contract with private
             9603      contractors for management, maintenance, operation, and construction of county jails.
             9604          (b) A county executive may include a provision in the contract that allows use of a
             9605      building authority created under the provisions of Title 17A, Chapter 3, Part 9, Municipal

             9606      Building Authorities, to construct or acquire a jail facility.
             9607          (c) A county executive may include a provision in the contract that requires that any jail
             9608      facility meet any federal, state, or local standards for the construction of jails.
             9609          (2) If a county executive contracts only for the management, maintenance, or operation
             9610      of a jail, the county executive shall include provisions in the contract that:
             9611          (a) require the private contractor to post a performance bond in the amount set by the
             9612      county legislative body;
             9613          (b) establish training standards that must be met by jail personnel;
             9614          (c) require the private contractor to provide and fund training for jail personnel so that
             9615      the personnel meet the standards established in the contract and any other federal, state, or local
             9616      standards for the operation of jails and the treatment of jail prisoners;
             9617          (d) require the private contractor to indemnify the county for errors, omissions,
             9618      defalcations, and other activities committed by the private contractor that result in liability to the
             9619      county;
             9620          (e) require the private contractor to show evidence of liability insurance protecting the
             9621      county and its officers, employees, and agents from liability arising from the construction,
             9622      operation, or maintenance of the jail, in an amount not less than those specified in [Title 63,
             9623      Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah;
             9624          (f) require the private contractor to:
             9625          (i) receive all prisoners committed to the jail by competent authority; and
             9626          (ii) provide them with necessary food, clothing, and bedding in the manner prescribed
             9627      by the governing body; and
             9628          (g) prohibit the use of inmates by the private contractor for private business purposes of
             9629      any kind.
             9630          (3) A contractual provision requiring the private contractor to maintain liability
             9631      insurance in an amount not less than the liability limits established by [Title 63, Chapter 30d]
             9632      Title 63G, Chapter 7, Governmental Immunity Act of Utah, may not be construed as waiving
             9633      the limitation on damages recoverable from a governmental entity or its employees established

             9634      by that chapter.
             9635          Section 200. Section 17-53-313 is amended to read:
             9636           17-53-313. Hiring of professional architect, engineer, or surveyor.
             9637          Notwithstanding the adoption of some or all of the provisions of [Title 63, Chapter 56]
             9638      Title 63G, Chapter 6, Utah Procurement Code, under Section 17-53-225 , each county executive
             9639      that engages the services of a professional architect, engineer, or surveyor and considers more
             9640      than one such professional for the engagement:
             9641          (1) shall consider, as a minimum, in the selection process:
             9642          (a) the qualifications, experience, and background of each firm submitting a proposal;
             9643          (b) the specific individuals assigned to the project and the time commitments of each to
             9644      the project; and
             9645          (c) the project schedule and the approach to the project that the firm will take; and
             9646          (2) may engage the services of a professional architect, engineer, or surveyor based on
             9647      the criteria under Subsection (1) rather than solely on lowest cost.
             9648          Section 201. Section 17B-1-106 is amended to read:
             9649           17B-1-106. Notice before preparing or amending a long-range plan or acquiring
             9650      certain property.
             9651          (1) As used in this section:
             9652          (a) (i) "Affected entity" means each county, municipality, local district under this title,
             9653      special service district, school district, interlocal cooperation entity established under Title 11,
             9654      Chapter 13, Interlocal Cooperation Act, and specified public utility:
             9655          (A) whose services or facilities are likely to require expansion or significant
             9656      modification because of an intended use of land; or
             9657          (B) that has filed with the local district a copy of the general or long-range plan of the
             9658      county, municipality, local district, school district, interlocal cooperation entity, or specified
             9659      public utility.
             9660          (ii) "Affected entity" does not include the local district that is required under this section
             9661      to provide notice.

             9662          (b) "Specified public utility" means an electrical corporation, gas corporation, or
             9663      telephone corporation, as those terms are defined in Section 54-2-1 .
             9664          (2) (a) If a local district under this title located in a county of the first or second class
             9665      prepares a long-range plan regarding its facilities proposed for the future or amends an already
             9666      existing long-range plan, the local district shall, before preparing a long-range plan or
             9667      amendments to an existing long-range plan, provide written notice, as provided in this section,
             9668      of its intent to prepare a long-range plan or to amend an existing long-range plan.
             9669          (b) Each notice under Subsection (2)(a) shall:
             9670          (i) indicate that the local district intends to prepare a long-range plan or to amend a
             9671      long-range plan, as the case may be;
             9672          (ii) describe or provide a map of the geographic area that will be affected by the
             9673      long-range plan or amendments to a long-range plan;
             9674          (iii) be sent to:
             9675          (A) each county in whose unincorporated area and each municipality in whose
             9676      boundaries is located the land on which the proposed long-range plan or amendments to a
             9677      long-range plan are expected to indicate that the proposed facilities will be located;
             9678          (B) each affected entity;
             9679          (C) the Automated Geographic Reference Center created in Section 63F-1-506 ;
             9680          (D) each association of governments, established pursuant to an interlocal agreement
             9681      under Title 11, Chapter 13, Interlocal Cooperation Act, of which a county or municipality
             9682      described in Subsection (2)(b)(iii)(A) is a member; and
             9683          (E) the state planning coordinator appointed under Section [ 63-38d-202 ] 63J-4-202 ;
             9684          (iv) with respect to the notice to counties and municipalities described in Subsection
             9685      (2)(b)(iii)(A) and affected entities, invite them to provide information for the local district to
             9686      consider in the process of preparing, adopting, and implementing the long-range plan or
             9687      amendments to a long-range plan concerning:
             9688          (A) impacts that the use of land proposed in the proposed long-range plan or
             9689      amendments to a long-range plan may have on the county, municipality, or affected entity; and

             9690          (B) uses of land that the county, municipality, or affected entity is planning or
             9691      considering that may conflict with the proposed long-range plan or amendments to a long-range
             9692      plan; and
             9693          (v) include the address of an Internet website, if the local district has one, and the name
             9694      and telephone number of a person where more information can be obtained concerning the local
             9695      district's proposed long-range plan or amendments to a long-range plan.
             9696          (3) (a) Except as provided in Subsection (3)(d), each local district intending to acquire
             9697      real property in a county of the first or second class for the purpose of expanding the district's
             9698      infrastructure or other facilities used for providing the services that the district is authorized to
             9699      provide shall provide written notice, as provided in this Subsection (3), of its intent to acquire
             9700      the property if the intended use of the property is contrary to:
             9701          (i) the anticipated use of the property under the county or municipality's general plan; or
             9702          (ii) the property's current zoning designation.
             9703          (b) Each notice under Subsection (3)(a) shall:
             9704          (i) indicate that the local district intends to acquire real property;
             9705          (ii) identify the real property; and
             9706          (iii) be sent to:
             9707          (A) each county in whose unincorporated area and each municipality in whose
             9708      boundaries the property is located; and
             9709          (B) each affected entity.
             9710          (c) A notice under this Subsection (3) is a protected record as provided in Subsection
             9711      [ 63-2-304 ] 63G-2-305 (7).
             9712          (d) (i) The notice requirement of Subsection (3)(a) does not apply if the local district
             9713      previously provided notice under Subsection (2) identifying the general location within the
             9714      municipality or unincorporated part of the county where the property to be acquired is located.
             9715          (ii) If a local district is not required to comply with the notice requirement of
             9716      Subsection (3)(a) because of application of Subsection (3)(d)(i), the local district shall provide
             9717      the notice specified in Subsection (3)(a) as soon as practicable after its acquisition of the real

             9718      property.
             9719          Section 202. Section 17B-1-108 is amended to read:
             9720           17B-1-108. Restrictions on local district procurement of architect-engineer
             9721      services.
             9722          (1) As used in this section:
             9723          (a) "Architect-engineer services" means those professional services within the scope of
             9724      the practice of architecture as defined in Section 58-3a-102 .
             9725          (b) "Engineer services" means those professional services within the scope of the
             9726      practice of professional engineering as defined in Section 58-22-102 .
             9727          (2) When a local district elects to obtain architect services or engineering services by
             9728      using a competitive procurement process and has provided public notice of its competitive
             9729      procurement process:
             9730          (a) a higher education entity, or any part of one, may not submit a proposal in response
             9731      to the local district's competitive procurement process; and
             9732          (b) the local district may not award a contract to perform the architect services or
             9733      engineering services solicited in the competitive procurement process to a higher education
             9734      entity or any part of one.
             9735          (3) Notwithstanding Subsection [ 63-56-102 ] 63G-6-104 (3)(d), each local district board
             9736      that engages the services of a professional architect, engineer, or surveyor and considers more
             9737      than one such professional for the engagement:
             9738          (a) shall consider, as a minimum, in the selection process:
             9739          (i) the qualifications, experience, and background of each firm submitting a proposal;
             9740          (ii) the specific individuals assigned to the project and the time commitments of each to
             9741      the project; and
             9742          (iii) the project schedule and the approach to the project that the firm will take; and
             9743          (b) may engage the services of a professional architect, engineer, or surveyor based on
             9744      the criteria under Subsection (3)(a) rather than solely on lowest cost.
             9745          Section 203. Section 17B-2a-818 is amended to read:

             9746           17B-2a-818. Requirements applicable to public transit district contracts.
             9747          (1) If the expenditure required to construct district facilities or works exceeds $25,000,
             9748      the construction shall be let as provided in [Title 63, Chapter 56] Title 63G, Chapter 6, Utah
             9749      Procurement Code.
             9750          (2) (a) The board of trustees of a public transit district shall advertise each bid or
             9751      proposal through public notice as the board determines.
             9752          (b) A notice under Subsection (2)(a) may:
             9753          (i) include publication in:
             9754          (A) a newspaper of general circulation in the district;
             9755          (B) a trade journal; or
             9756          (C) other method determined by the board; and
             9757          (ii) be made at least once, not less than ten days before the expiration of the period
             9758      within which bids or proposals are received.
             9759          (3) (a) The board of trustees may, in its discretion:
             9760          (i) reject any or all bids or proposals; and
             9761          (ii) readvertise or give notice again.
             9762          (b) If, after rejecting bids or proposals, the board of trustees determines and declares by
             9763      a two-thirds vote of all members present that in the board's opinion the supplies, equipment, and
             9764      materials may be purchased at a lower price in the open market, the board may purchase the
             9765      supplies, equipment, and materials in the open market, notwithstanding any provisions requiring
             9766      contracts, bids, proposals, advertisement, or notice.
             9767          (4) The board of trustees of a public transit district may let a contract without
             9768      advertising for or inviting bids if:
             9769          (a) the board finds, upon a two-thirds vote of all members present, that a repair,
             9770      alteration, or other work or the purchase of materials, supplies, equipment, or other property is
             9771      of urgent necessity; or
             9772          (b) the district's general manager certifies by affidavit that there is only one source for
             9773      the required supplies, equipment, materials, or construction items.

             9774          (5) If a public transit district retains or withholds any payment on a contract with a
             9775      private contractor to construct facilities under this section, the board shall retain or withhold
             9776      and release the payment as provided in Section 13-8-5 .
             9777          Section 204. Section 17C-2-602 is amended to read:
             9778           17C-2-602. Prerequisites to the acquisition of property by eminent domain --
             9779      Civil action authorized -- Record of good faith negotiations to be retained.
             9780          (1) Before an agency may acquire property by eminent domain, the agency shall:
             9781          (a) negotiate in good faith with the affected record property owner;
             9782          (b) provide to each affected record property owner a written declaration that includes:
             9783          (i) an explanation of the eminent domain process and the reasons for using it, including:
             9784          (A) the need for the agency to obtain an independent appraisal that indicates the fair
             9785      market value of the property and how the fair market value was determined;
             9786          (B) a statement that the agency may adopt a resolution authorizing the agency to make
             9787      an offer to the record property owner to purchase the property for the fair market value amount
             9788      determined by the appraiser and that, if the offer is rejected, the agency has the right to acquire
             9789      the property through an eminent domain proceeding; and
             9790          (C) a statement that the agency will prepare an offer that will include the price the
             9791      agency is offering for the property, an explanation of how the agency determined the price being
             9792      offered, the legal description of the property, conditions of the offer, and the time at which the
             9793      offer will expire;
             9794          (ii) an explanation of the record property owner's relocation rights under Title 57,
             9795      Chapter 12, Utah Relocation Assistance Act, and how to receive relocation assistance; and
             9796          (iii) a statement that the owner has the right to receive just compensation and an
             9797      explanation of how to obtain it; and
             9798          (c) provide to the affected record property owner or the owner's designated
             9799      representative a notice that is printed in a type size of at least ten-point type that contains:
             9800          (i) a description of the property to be acquired;
             9801          (ii) the name of the agency acquiring the property and the agency's contact person and

             9802      telephone number; and
             9803          (iii) a copy of Title 57, Chapter 12, Utah Relocation Assistance Act.
             9804          (2) A person may bring a civil action against an agency for a violation of Subsection
             9805      (1)(b) that results in damage to that person.
             9806          (3) Each agency shall keep a record and evidence of the good faith negotiations
             9807      required under Subsection (1)(a) and retain the record and evidence as provided in:
             9808          (a) [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             9809      Management Act; or
             9810          (b) an ordinance or policy that the agency had adopted under Section [ 63-2-701 ]
             9811      63G-2-701 .
             9812          (4) A record property owner whose property is being taken by an agency through the
             9813      exercise of eminent domain may elect to receive for the real property being taken:
             9814          (a) fair market value; or
             9815          (b) replacement property under Section 57-12-7 .
             9816          Section 205. Section 19-1-201 is amended to read:
             9817           19-1-201. Powers of department.
             9818          (1) The department shall:
             9819          (a) enter into cooperative agreements with the Department of Health to delineate
             9820      specific responsibilities to assure that assessment and management of risk to human health from
             9821      the environment are properly administered;
             9822          (b) consult with the Department of Health and enter into cooperative agreements, as
             9823      needed, to ensure efficient use of resources and effective response to potential health and safety
             9824      threats from the environment, and to prevent gaps in protection from potential risks from the
             9825      environment to specific individuals or population groups; and
             9826          (c) coordinate implementation of environmental programs to maximize efficient use of
             9827      resources by developing, with local health departments, a Comprehensive Environmental
             9828      Service Delivery Plan that:
             9829          (i) recognizes that the department and local health departments are the foundation for

             9830      providing environmental health programs in the state;
             9831          (ii) delineates the responsibilities of the department and each local health department for
             9832      the efficient delivery of environmental programs using federal, state, and local authorities,
             9833      responsibilities, and resources;
             9834          (iii) provides for the delegation of authority and pass through of funding to local health
             9835      departments for environmental programs, to the extent allowed by applicable law, identified in
             9836      the plan, and requested by the local health department; and
             9837          (iv) is reviewed and updated annually.
             9838          (2) The department may:
             9839          (a) investigate matters affecting the environment;
             9840          (b) investigate and control matters affecting the public health when caused by
             9841      environmental hazards;
             9842          (c) prepare, publish, and disseminate information to inform the public concerning issues
             9843      involving environmental quality;
             9844          (d) establish and operate programs, as authorized by this title, necessary for protection
             9845      of the environment and public health from environmental hazards;
             9846          (e) use local health departments in the delivery of environmental health programs to the
             9847      extent provided by law;
             9848          (f) enter into contracts with local health departments or others to meet responsibilities
             9849      established under this title;
             9850          (g) acquire real and personal property by purchase, gift, devise, and other lawful means;
             9851          (h) prepare and submit to the governor a proposed budget to be included in the budget
             9852      submitted by the governor to the Legislature;
             9853          (i) (i) establish a schedule of fees that may be assessed for actions and services of the
             9854      department according to the procedures and requirements of Section [ 63-38-3.2 ] 63J-1-303 ;
             9855      and
             9856          (ii) in accordance with Section [ 63-38-3.2 ] 63J-1-303 , all fees shall be reasonable, fair,
             9857      and reflect the cost of services provided;

             9858          (j) prescribe by rule reasonable requirements not inconsistent with law relating to
             9859      environmental quality for local health departments;
             9860          (k) perform the administrative functions of the boards established by Section 19-1-106 ,
             9861      including the acceptance and administration of grants from the federal government and from
             9862      other sources, public or private, to carry out the board's functions; and
             9863          (l) upon the request of any board or the executive secretary, provide professional,
             9864      technical, and clerical staff and field and laboratory services, the extent of which are limited by
             9865      the funds available to the department for the staff and services.
             9866          Section 206. Section 19-1-301 is amended to read:
             9867           19-1-301. Adjudicative proceedings.
             9868          The department and its boards shall comply with the procedures and requirements of
             9869      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             9870          Section 207. Section 19-1-305 is amended to read:
             9871           19-1-305. Administrative enforcement proceedings -- Tolling of limitation period.
             9872          Issuing a notice of a violation, an order, or a notice of agency action under this title tolls
             9873      the running of the period of limitation for commencing a civil action to assess or collect a
             9874      penalty until the sooner of:
             9875          (1) the day on which the notice of violation, order, or agency action becomes final
             9876      under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act; or
             9877          (2) three years from the day on which the department issues a notice or order described
             9878      in this section.
             9879          Section 208. Section 19-1-306 is amended to read:
             9880           19-1-306. Records of the department.
             9881          (1) Except as provided in this section, records of the department shall be subject to
             9882      [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act.
             9883          (2) (a) The standards of the federal Freedom of Information Act, 5 U.S.C. Sec. 552,
             9884      and not the standards of Subsections [ 63-2-304 ] 63G-2-305 (1) and (2), shall govern access to
             9885      records of the department for which business confidentiality has been claimed under Section

             9886      [ 63-2-308 ] 63G-2-309 , to the extent those records relate to a program:
             9887          (i) that is delegated, authorized, or for which primacy has been granted to the state;
             9888          (ii) for which the state is seeking delegation, authorization, or primacy; or
             9889          (iii) under the federal Comprehensive Environmental Response, Compensation, and
             9890      Liability Act.
             9891          (b) The regulation of the United States Environmental Protection Agency interpreting
             9892      the federal Freedom of Information Act, as it appeared at 40 C.F.R. Part 2 on January 1, 1992,
             9893      shall also apply to the records described in Subsection (1).
             9894          (3) (a) The department may, upon request, make trade secret and confidential business
             9895      records available to the United States Environmental Protection Agency insofar as they relate to
             9896      a delegated program, to a program for which the state is seeking delegation, or to a program
             9897      under the federal Comprehensive Environmental Response, Compensation and Liability Act.
             9898          (b) In the event a record is released to the United States Environmental Protection
             9899      Agency under Subsection (3)(a), the department shall convey any claim of confidentiality to the
             9900      United States Environmental Protection Agency and shall notify the person who submitted the
             9901      information of its release.
             9902          (4) Trade secret and confidential business records under Subsection (2) shall be
             9903      managed as protected records under the Government Records Access and Management Act,
             9904      and all provisions of that act shall apply except Subsections [ 63-2-304 ] 63G-2-305 (1) and (2).
             9905          (5) Records obtained from the United States Environmental Protection Agency and
             9906      requested by that agency to be kept confidential shall be managed as protected records under
             9907      the Government Records Access and Management Act, and all provisions of that act shall apply
             9908      except to the extent they conflict with this [subsection] section.
             9909          Section 209. Section 19-1-403 is amended to read:
             9910           19-1-403. Clean Fuels and Vehicle Technology Fund -- Contents -- Loans or
             9911      grants made with fund monies.
             9912          (1) (a) There is created a revolving fund known as the Clean Fuels and Vehicle
             9913      Technology Fund.

             9914          (b) The fund consists of:
             9915          (i) appropriations to the fund;
             9916          (ii) other public and private contributions made under Subsection (1)(d);
             9917          (iii) interest earnings on cash balances; and
             9918          (iv) all monies collected for loan repayments and interest on loans.
             9919          (c) All money appropriated to the fund is nonlapsing.
             9920          (d) The department may accept contributions from other public and private sources for
             9921      deposit into the fund.
             9922          (2) (a) Except as provided in Subsection (3), the department may make a loan or a
             9923      grant with monies available in the fund for:
             9924          (i) the conversion of a private sector business vehicle or a government vehicle to use a
             9925      clean fuel, if certified by the Air Quality Board under Subsection 19-1-405 (1)(a);
             9926          (ii) the purchase of:
             9927          (A) an OEM vehicle for use as a private sector business vehicle or government vehicle;
             9928      or
             9929          (B) a vehicle, certified by the Air Quality Board under Subsection 19-1-405 (1)(d), for
             9930      use as a private sector business vehicle or government vehicle;
             9931          (iii) the retrofit, certified by the Air Quality Board under Subsection 19-1-405 (1)(d), of
             9932      a private sector business vehicle or government vehicle;
             9933          (iv) a fuel system, certified by the Air Quality Board under Subsection 19-1-405 (1)(d),
             9934      for a private sector business vehicle or government vehicle; or
             9935          (v) a state match of a federal or nonfederal grant for any item under this Subsection
             9936      (2)(a).
             9937          (b) The amount of a loan for any vehicle under Subsection (2)(a)(i) or (2)(a)(ii)(A) may
             9938      not exceed:
             9939          (i) the actual cost of the vehicle conversion;
             9940          (ii) the incremental cost of purchasing the OEM vehicle; or
             9941          (iii) the cost of purchasing the OEM vehicle if there is no documented incremental cost.

             9942          (c) The amount of a grant for any vehicle under Subsection (2)(a)(i) or (2)(a)(ii)(A)
             9943      may not exceed:
             9944          (i) 50% of the actual cost of the vehicle conversion minus the amount of any tax credit
             9945      claimed under Section 59-7-605 or 59-10-1009 for the vehicle for which a grant is requested; or
             9946          (ii) 50% of the incremental cost of purchasing an OEM vehicle minus the amount of any
             9947      tax credit claimed under Section 59-7-605 or 59-10-1009 for the vehicle for which a grant is
             9948      requested.
             9949          (d) (i) Except as provided in Subsection (3) and subject to the availability of monies in
             9950      the fund, the department may make a loan for the purchase of vehicle refueling equipment for a
             9951      private sector business vehicle or a government vehicle.
             9952          (ii) The maximum amount loaned per installation of refueling equipment may not
             9953      exceed the actual cost of the refueling equipment.
             9954          (iii) Except as provided in Subsection (3) and subject to the availability of monies in the
             9955      fund, the department may make a grant for a state match of a federal or nonfederal grant for the
             9956      purchase of vehicle refueling equipment for a private sector business vehicle or a government
             9957      vehicle.
             9958          (3) The department may not make a loan or grant under this part for an electric-hybrid
             9959      vehicle.
             9960          (4) The department may:
             9961          (a) reimburse itself for the costs incurred in administering the fund from:
             9962          (i) the fund; or
             9963          (ii) application fees; and
             9964          (b) establish an application fee for a loan or grant from the fund by following the
             9965      procedures and requirements of Section [ 63-38-3.2 ] 63J-1-303 .
             9966          (5) (a) The fund balance may not exceed $10,000,000.
             9967          (b) Interest on cash balances and repayment of loans in excess of the amount necessary
             9968      to maintain the fund balance at $10,000,000 shall be deposited in the General Fund.
             9969          (6) (a) Loans made from monies in the fund shall be supported by loan documents

             9970      evidencing the intent of the borrower to repay the loan.
             9971          (b) The original loan documents shall be filed with the Division of Finance and a copy
             9972      shall be filed with the department.
             9973          Section 210. Section 19-1-404 is amended to read:
             9974           19-1-404. Department duties -- Rulemaking -- Loan repayment.
             9975          (1) The department shall:
             9976          (a) administer the fund created in Section 19-1-403 to encourage government officials
             9977      and private sector business vehicle owners and operators to obtain and use clean fuel vehicles;
             9978      and
             9979          (b) by following the procedures and requirements of [Title 63, Chapter 46a] Title 63G,
             9980      Chapter 3, Utah Administrative Rulemaking Act, make rules:
             9981          (i) specifying the amount of money in the fund to be dedicated annually for grants;
             9982          (ii) limiting the amount of a grant given to any person claiming a tax credit under
             9983      Section 59-7-605 or 59-10-1009 for the motor vehicle for which a grant is requested to assure
             9984      that the sum of the tax credit and grant does not exceed:
             9985          (A) 50% of the incremental cost of the OEM vehicle; or
             9986          (B) 50% of the cost of conversion equipment;
             9987          (iii) limiting the number of motor vehicles per fleet operator that may be eligible for a
             9988      grant in a year;
             9989          (iv) specifying criteria the department shall consider in prioritizing and awarding loans
             9990      and grants;
             9991          (v) specifying repayment periods;
             9992          (vi) specifying procedures for:
             9993          (A) awarding loans and grants; and
             9994          (B) collecting loans;
             9995          (vii) requiring all loan and grant applicants to:
             9996          (A) apply on forms provided by the department;
             9997          (B) agree in writing to use the clean fuel for which each vehicle is converted or

             9998      purchased using loan or grant proceeds for a minimum of 70% of the vehicle miles traveled
             9999      beginning from the time of conversion or purchase of the vehicle;
             10000          (C) agree in writing to notify the department if a vehicle converted or purchased using
             10001      loan or grant proceeds becomes inoperable through mechanical failure or accident and to pursue
             10002      a remedy outlined in department rules;
             10003          (D) provide reasonable data to the department on a vehicle converted or purchased with
             10004      loan or grant proceeds; and
             10005          (E) submit a vehicle converted or purchased with loan or grant proceeds to inspections
             10006      by the department as required in department rules and as necessary for administration of the
             10007      loan and grant program; and
             10008          (viii) specifying the criteria for awarding a state match under Subsection 19-1-403 (2).
             10009          (2) (a) When developing repayment schedules for the loans, the department shall
             10010      consider the projected savings from use of the clean fuel vehicle.
             10011          (b) A repayment schedule may not exceed ten years.
             10012          (c) The department shall make a loan from the fund for a private sector vehicle at an
             10013      interest rate equal to the annual return earned in the state treasurer's Public Treasurer's Pool as
             10014      determined the month immediately preceding the closing date of the loan.
             10015          (d) The department shall make a loan from the fund for a government vehicle with no
             10016      interest rate.
             10017          (3) The Division of Finance shall:
             10018          (a) collect and account for the loans; and
             10019          (b) have custody of all loan documents, including all notes and contracts, evidencing the
             10020      indebtedness of the fund.
             10021          Section 211. Section 19-1-405 is amended to read:
             10022           19-1-405. Air Quality Board duties -- Rulemaking.
             10023          (1) By following the procedures and requirements of [Title 63, Chapter 46a] Title 63G,
             10024      Chapter 3, Utah Administrative Rulemaking Act, the Air Quality Board may make rules to:
             10025          (a) certify a motor vehicle on which conversion equipment has been installed if:

             10026          (i) before the installation of conversion equipment, the motor vehicle does not exceed
             10027      the emission cut points for:
             10028          (A) a transient test driving cycle, as specified in 40 CFR 51, Appendix E to Subpart S;
             10029      or
             10030          (B) an equivalent test for the make, model, and year of the motor vehicle; and
             10031          (ii) the motor vehicle's emissions of regulated pollutants, when operating with clean
             10032      fuel, is less than the emissions were before the installation of conversion equipment;
             10033          (b) recognize a test or standard that demonstrates a reduction in emissions;
             10034          (c) recognize a certification standard from another state;
             10035          (d) certify a fuel, vehicle, retrofit, or fuel system if it is at least as effective in reducing
             10036      air pollution as fuels under Subsection 19-1-402 (1)(a) or vehicles under Subsection
             10037      19-1-402 (2); or
             10038          (e) establish criteria for determining the effectiveness of a fuel, vehicle, retrofit, or fuel
             10039      system in reducing air pollution.
             10040          (2) A reduction in emissions under Subsection (1)(a)(ii) is demonstrated by:
             10041          (a) certification of the conversion equipment by the federal Environmental Protection
             10042      Agency or by a state whose certification standards are recognized by the Air Quality Board;
             10043          (b) testing the motor vehicle, before and after the installation of the conversion
             10044      equipment, in accordance with 40 CFR 86, Control of Air Pollution from New and In-use
             10045      Motor Vehicle Engines: Certification and Test Procedures, using all fuel the motor vehicle is
             10046      capable of using; or
             10047          (c) any other test or standard recognized by the Air Quality Board in rule.
             10048          Section 212. Section 19-2-104 is amended to read:
             10049           19-2-104. Powers of board.
             10050          (1) The board may make rules in accordance with [Title 63, Chapter 46a] Title 63G,
             10051      Chapter 3, Utah Administrative Rulemaking Act:
             10052          (a) regarding the control, abatement, and prevention of air pollution from all sources
             10053      and the establishment of the maximum quantity of air contaminants that may be emitted by any

             10054      air contaminant source;
             10055          (b) establishing air quality standards;
             10056          (c) requiring persons engaged in operations which result in air pollution to:
             10057          (i) install, maintain, and use emission monitoring devices, as the board finds necessary;
             10058          (ii) file periodic reports containing information relating to the rate, period of emission,
             10059      and composition of the air contaminant; and
             10060          (iii) provide access to records relating to emissions which cause or contribute to air
             10061      pollution;
             10062          (d) implementing 15 U.S.C.A. 2601 et seq. Toxic Substances Control Act, Subchapter
             10063      II - Asbestos Hazard Emergency Response, and reviewing and approving asbestos management
             10064      plans submitted by local education agencies under that act;
             10065          (e) establishing a requirement for a diesel emission opacity inspection and maintenance
             10066      program for diesel-powered motor vehicles;
             10067          (f) implementing an operating permit program as required by and in conformity with
             10068      Titles IV and V of the federal Clean Air Act Amendments of 1990;
             10069          (g) establishing requirements for county emissions inspection and maintenance
             10070      programs after obtaining agreement from the counties that would be affected by the
             10071      requirements;
             10072          (h) with the approval of the governor, implementing in air quality nonattainment areas
             10073      employer-based trip reduction programs applicable to businesses having more than 100
             10074      employees at a single location and applicable to federal, state, and local governments to the
             10075      extent necessary to attain and maintain ambient air quality standards consistent with the state
             10076      implementation plan and federal requirements under the standards set forth in Subsection (2);
             10077      and
             10078          (i) implementing lead-based paint remediation training, certification, and performance
             10079      requirements in accordance with 15 U.S.C.A. 2601 et seq., Toxic Substances Control Act,
             10080      Subchapter IV -- Lead Exposure Reduction, Sections 402 and 406.
             10081          (2) When implementing Subsection (1)(h) the board shall take into consideration:

             10082          (a) the impact of the business on overall air quality; and
             10083          (b) the need of the business to use automobiles in order to carry out its business
             10084      purposes.
             10085          (3) The board may:
             10086          (a) hold hearings relating to any aspect of or matter in the administration of this chapter
             10087      and compel the attendance of witnesses and the production of documents and other evidence,
             10088      administer oaths and take testimony, and receive evidence as necessary;
             10089          (b) issue orders necessary to enforce the provisions of this chapter, enforce the orders
             10090      by appropriate administrative and judicial proceedings, and institute judicial proceedings to
             10091      secure compliance with this chapter;
             10092          (c) settle or compromise any civil action initiated to compel compliance with this
             10093      chapter and the rules made under this chapter;
             10094          (d) secure necessary scientific, technical, administrative, and operational services,
             10095      including laboratory facilities, by contract or otherwise;
             10096          (e) prepare and develop a comprehensive plan or plans for the prevention, abatement,
             10097      and control of air pollution in this state;
             10098          (f) encourage voluntary cooperation by persons and affected groups to achieve the
             10099      purposes of this chapter;
             10100          (g) encourage local units of government to handle air pollution within their respective
             10101      jurisdictions on a cooperative basis and provide technical and consultative assistance to them;
             10102          (h) encourage and conduct studies, investigations, and research relating to air
             10103      contamination and air pollution and their causes, effects, prevention, abatement, and control;
             10104          (i) determine by means of field studies and sampling the degree of air contamination and
             10105      air pollution in all parts of the state;
             10106          (j) monitor the effects of the emission of air contaminants from motor vehicles on the
             10107      quality of the outdoor atmosphere in all parts of this state and take appropriate action with
             10108      respect to them;
             10109          (k) collect and disseminate information and conduct educational and training programs

             10110      relating to air contamination and air pollution;
             10111          (l) advise, consult, contract, and cooperate with other agencies of the state, local
             10112      governments, industries, other states, interstate or interlocal agencies, the federal government,
             10113      and with interested persons or groups;
             10114          (m) consult, upon request, with any person proposing to construct, install, or otherwise
             10115      acquire an air contaminant source in the state concerning the efficacy of any proposed control
             10116      device, or system for this source, or the air pollution problem which may be related to the
             10117      source, device, or system, but a consultation does not relieve any person from compliance with
             10118      this chapter, the rules adopted under it, or any other provision of law;
             10119          (n) accept, receive, and administer grants or other funds or gifts from public and private
             10120      agencies, including the federal government, for the purpose of carrying out any of the functions
             10121      of this chapter;
             10122          (o) require the owner and operator of each new source which directly emits or has the
             10123      potential to emit 100 tons per year or more of any air contaminant or the owner or operator of
             10124      each existing source which by modification will increase emissions or have the potential of
             10125      increasing emissions by 100 tons per year or more of any air contaminant, to pay a fee sufficient
             10126      to cover the reasonable costs of:
             10127          (i) reviewing and acting upon the notice required under Section 19-2-108 ; and
             10128          (ii) implementing and enforcing requirements placed on the sources by any approval
             10129      order issued pursuant to notice, not including any court costs associated with any enforcement
             10130      action;
             10131          (p) assess and collect noncompliance penalties as required in Section 120 of the federal
             10132      Clean Air Act, 42 U.S.C. Sec. 7420;
             10133          (q) meet the requirements of federal air pollution laws;
             10134          (r) establish work practice, certification, and clearance air sampling requirements for
             10135      persons who:
             10136          (i) contract for hire to conduct demolition, renovation, salvage, encapsulation work
             10137      involving friable asbestos-containing materials, or asbestos inspections;

             10138          (ii) conduct work described in Subsection (3)(r)(i) in areas to which the general public
             10139      has unrestrained access or in school buildings that are subject to the federal Asbestos Hazard
             10140      Emergency Response Act of 1986;
             10141          (iii) conduct asbestos inspections in facilities subject to 15 U.S.C.A. 2601 et seq., Toxic
             10142      Substances Control Act, Subchapter II - Asbestos Hazard Emergency Response; or
             10143          (iv) conduct lead paint inspections in facilities subject to 15 U.S.C.A. 2601 et seq.,
             10144      Toxic Substances Control Act, Subchapter IV -- Lead Exposure Reduction;
             10145          (s) establish certification requirements for persons required under 15 U.S.C.A. 2601 et
             10146      seq., Toxic Substances Control Act, Subchapter II - Asbestos Hazard Emergency Response, to
             10147      be accredited as inspectors, management planners, abatement project designers, asbestos
             10148      abatement contractors and supervisors, or asbestos abatement workers;
             10149          (t) establish certification requirements for asbestos project monitors, which shall
             10150      provide for experience-based certification of persons who, prior to establishment of the
             10151      certification requirements, had received relevant asbestos training, as defined by rule, and had
             10152      acquired at least 1,000 hours of experience as project monitors;
             10153          (u) establish certification procedures and requirements for certification of the
             10154      conversion of a motor vehicle to a clean-fuel vehicle, certifying the vehicle is eligible for the tax
             10155      credit granted in Section 59-7-605 or 59-10-1009 ;
             10156          (v) establish a program to certify private sector air quality permitting professionals
             10157      (AQPP), as described in Section 19-2-109.5 ; and
             10158          (w) establish certification requirements for persons required under 15 U.S.C.A. 2601 et
             10159      seq., Toxic Control Act, Subchapter IV -- Lead Exposure Reduction, to be accredited as
             10160      inspectors, risk assessors, supervisors, project designers, or abatement workers.
             10161          (4) Any rules adopted under this chapter shall be consistent with provisions of federal
             10162      laws, if any, relating to control of motor vehicles or motor vehicle emissions.
             10163          (5) Nothing in this chapter authorizes the board to require installation of or payment for
             10164      any monitoring equipment by the owner or operator of a source if the owner or operator has
             10165      installed or is operating monitoring equipment that is equivalent to equipment which the board

             10166      would require under this section.
             10167          Section 213. Section 19-2-105.3 is amended to read:
             10168           19-2-105.3. Clean fuel requirements for fleets.
             10169          (1) As used in this section:
             10170          (a) "1990 Clean Air Act" means the federal Clean Air Act as amended in 1990.
             10171          (b) "Clean fuel" means:
             10172          (i) propane, compressed natural gas, or electricity;
             10173          (ii) other fuel the Air Quality Board created in Title 19, Chapter 2, Air Conservation
             10174      Act, determines annually on or before July 1 is at least as effective as fuels under Subsection
             10175      (1)(b)(i) in reducing air pollution; and
             10176          (iii) other fuel that meets the clean fuel vehicle standards in the 1990 Clean Air Act.
             10177          (c) "Fleet" means ten or more vehicles:
             10178          (i) owned or operated by a single entity as defined by board rule; and
             10179          (ii) capable of being fueled or that are fueled at a central location.
             10180          (d) "Fleet" does not include motor vehicles that are:
             10181          (i) held for lease or rental to the general public;
             10182          (ii) held for sale or used as demonstration vehicles by motor vehicle dealers;
             10183          (iii) used by motor vehicle manufacturers for product evaluations or tests;
             10184          (iv) authorized emergency vehicles as defined in Section 41-6a-102 ;
             10185          (v) registered under Title 41, Chapter 1a, Part 2, Registration, as farm vehicles;
             10186          (vi) special mobile equipment as defined in Section 41-1a-102 ;
             10187          (vii) heavy duty trucks with a gross vehicle weight rating of more than 26,000 pounds;
             10188          (viii) regularly used by employees to drive to and from work, parked at the employees'
             10189      personal residences when they are not at their employment, and not practicably fueled at a
             10190      central location;
             10191          (ix) owned, operated, or leased by public transit districts; or
             10192          (x) exempted by board rule.
             10193          (2) (a) After evaluation of reasonably available pollution control strategies, and as part

             10194      of the state implementation plan demonstrating attainment of the national ambient air quality
             10195      standards, the board may by rule, subject to Subsection (2)(c), require fleets in specified
             10196      geographical areas to use clean fuels if the board determines fleet use of clean fuels is:
             10197          (i) necessary to demonstrate attainment of the national ambient air quality standards in
             10198      any area where they are required; and
             10199          (ii) reasonably cost effective when compared to other similarly beneficial control
             10200      strategies for demonstrating attainment of the national ambient air quality standards.
             10201          (b) State implementation plans developed prior to July 1, 1995, may require fleets to
             10202      use clean fuels no earlier than July 1, 1995, unless the board determines fleet use of clean fuels
             10203      is necessary prior to July 1, 1995, to demonstrate attainment of the national ambient air quality
             10204      standards in any area by an attainment date established by federal law.
             10205          (c) The board may not require more than 50% of those trucks in a fleet that are heavy
             10206      duty trucks having a gross vehicle weight rating of more than 8,500 pounds and not more than
             10207      26,000 pounds to convert to clean fuels under Subsection (2)(b).
             10208          (3) (a) After evaluation of reasonably available pollution control strategies, and as part
             10209      of a state implementation plan demonstrating only maintenance of the national ambient air
             10210      quality standards, the board may by rule, subject to Subsection (3)(b), require fleets in specified
             10211      geographical areas to use clean fuels if the board determines fleet use of clean fuels is:
             10212          (i) necessary to demonstrate maintenance of the national ambient air quality standards in
             10213      any area where they are required; and
             10214          (ii) reasonably cost effective as compared with other similarly beneficial control
             10215      strategies for demonstrating maintenance of the national ambient air quality standards.
             10216          (b) Under Subsection (3)(a) the board may require no more than:
             10217          (i) 30% of a fleet to use clean fuels before January 1, 1998;
             10218          (ii) 50% of a fleet to use clean fuels before January 1, 1999; and
             10219          (iii) 70% of a fleet to use clean fuels before January 1, 2000.
             10220          (c) The board may not require more than 50% of those trucks in a fleet that are heavy
             10221      duty trucks having a gross vehicle weight rating of more than 8,500 pounds and not more than

             10222      26,000 pounds to convert to clean fuels under Subsection (3)(b).
             10223          (4) Rules the board makes under this section may include:
             10224          (a) dates by which fleets are required to convert to clean fuels under the provisions of
             10225      this section;
             10226          (b) definitions of fleet owners or operators;
             10227          (c) definitions of vehicles exempted from this section by rule;
             10228          (d) certification requirements for persons who install clean fuel conversion equipment,
             10229      including testing and certification standards regarding installers; and
             10230          (e) certification fees for installers, established under Section [ 63-38-3.2 ] 63J-1-303 .
             10231          (5) Implementation of this section and rules made under this section are subject to the
             10232      reasonable availability of clean fuel in the local market as determined by the board.
             10233          Section 214. Section 19-2-109.1 is amended to read:
             10234           19-2-109.1. Operating permit required -- Emissions fee -- Implementation.
             10235          (1) As used in this section and Sections 19-2-109.2 and 19-2-109.3 :
             10236          (a) "EPA" means the federal Environmental Protection Agency.
             10237          (b) "1990 Clean Air Act" means the federal Clean Air Act as amended in 1990.
             10238          (c) "Operating permit" means a permit issued by the executive secretary to sources of
             10239      air pollution that meet the requirements of Titles IV and V of the 1990 Clean Air Act.
             10240          (d) "Program" means the air pollution operating permit program established under this
             10241      section to comply with Title V of the 1990 Clean Air Act.
             10242          (e) "Regulated pollutant" has the same meaning as defined in Title V of the 1990 Clean
             10243      Air Act and implementing federal regulations.
             10244          (2) (a) A person may not operate any source of air pollution required to have a permit
             10245      under Title V of the 1990 Clean Air Act without having obtained an operating permit from the
             10246      executive secretary under procedures the board establishes by rule.
             10247          (b) A person is not required to submit an operating permit application until the
             10248      governor has submitted an operating permit program to the EPA.
             10249          (c) Any operating permit issued under this section may not become effective until the

             10250      day after the EPA issues approval of the permit program or November 15, 1995, whichever
             10251      occurs first.
             10252          (3) (a) Operating permits issued under this section shall be for a period of five years
             10253      unless the board makes a written finding, after public comment and hearing, and based on
             10254      substantial evidence in the record, that an operating permit term of less than five years is
             10255      necessary to protect the public health and the environment of the state.
             10256          (b) The executive secretary may issue, modify, or renew an operating permit only after
             10257      providing public notice, an opportunity for public comment, and an opportunity for a public
             10258      hearing.
             10259          (c) The executive secretary shall, in conformity with the 1990 Clean Air Act and
             10260      implementing federal regulations, revise the conditions of issued operating permits to
             10261      incorporate applicable federal regulations in conformity with Section 502(b)(9) of the 1990
             10262      Clean Air Act, if the remaining period of the permit is three or more years.
             10263          (d) The executive secretary may terminate, modify, revoke, or reissue an operating
             10264      permit for cause.
             10265          (4) (a) The board shall establish a proposed annual emissions fee that conforms with
             10266      Title V of the 1990 Clean Air Act for each ton of regulated pollutant, applicable to all sources
             10267      required to obtain a permit. The emissions fee established under this section is in addition to
             10268      fees assessed under Section 19-2-108 for issuance of an approval order.
             10269          (b) In establishing the fee the board shall comply with the provisions of Section
             10270      [ 63-38-3.2 ] 63J-1-303 that require a public hearing and require the established fee to be
             10271      submitted to the Legislature for its approval as part of the department's annual appropriations
             10272      request.
             10273          (c) The fee shall cover all reasonable direct and indirect costs required to develop and
             10274      administer the program and the small business assistance program established under Section
             10275      19-2-109.2 . The board shall prepare an annual report of the emissions fees collected and the
             10276      costs covered by those fees under this Subsection (4).
             10277          (d) The fee shall be established uniformly for all sources required to obtain an operating

             10278      permit under the program and for all regulated pollutants.
             10279          (e) The fee may not be assessed for emissions of any regulated pollutant if the emissions
             10280      are already accounted for within the emissions of another regulated pollutant.
             10281          (f) An emissions fee may not be assessed for any amount of a regulated pollutant
             10282      emitted by any source in excess of 4,000 tons per year of that regulated pollutant.
             10283          (5) Emissions fees for the period:
             10284          (a) of July 1, 1992, through June 30, 1993, shall be based on the most recent emissions
             10285      inventory prepared by the executive secretary; and
             10286          (b) on and after July 1, 1993, but prior to issuance of an operating permit, shall be
             10287      based on the most recent emissions inventory, unless a source elects prior to July 1, 1992, to
             10288      base the fee on allowable emissions, if applicable for a regulated pollutant.
             10289          (6) After an operating permit is issued the emissions fee shall be based on actual
             10290      emissions for a regulated pollutant unless a source elects, prior to the issuance or renewal of a
             10291      permit, to base the fee during the period of the permit on allowable emissions for that regulated
             10292      pollutant.
             10293          (7) If the owner or operator of a source subject to this section fails to timely pay an
             10294      annual emissions fee, the executive secretary may:
             10295          (a) impose a penalty of not more than 50% of the fee, in addition to the fee, plus
             10296      interest on the fee computed at 12% annually; or
             10297          (b) revoke the operating permit.
             10298          (8) The owner or operator of a source subject to this section may contest an emissions
             10299      fee assessment or associated penalty in an adjudicative hearing under the [Title 63, Chapter 46b]
             10300      Title 63G, Chapter 4, Administrative Procedures Act, as provided in this Subsection (8).
             10301          (a) The owner or operator must pay the fee under protest prior to being entitled to a
             10302      hearing. Payment of an emissions fee or penalty under protest is not a waiver of the right to
             10303      contest the fee or penalty under this [subsection] section.
             10304          (b) A request for a hearing under this subsection shall be made after payment of the
             10305      emissions fee and within six months after the emissions fee was due.

             10306          (9) To reinstate an operating permit revoked under Subsection (7) the owner or
             10307      operator shall pay all outstanding emissions fees, a penalty of not more than 50% of all
             10308      outstanding fees, and interest on the outstanding emissions fees computed at 12% annually.
             10309          (10) All emissions fees and penalties collected by the department under this section shall
             10310      be deposited in the General Fund as the Air Pollution Operating Permit Program dedicated
             10311      credit to be used solely to pay for the reasonable direct and indirect costs incurred by the
             10312      department in developing and administering the program and the small business assistance
             10313      program under Section 19-2-109.2 .
             10314          (11) Failure of the executive secretary to act on any operating permit application or
             10315      renewal is a final administrative action only for the purpose of obtaining judicial review by any
             10316      of the following persons to require the executive secretary to take action on the permit or its
             10317      renewal without additional delay:
             10318          (a) the applicant;
             10319          (b) any person who participated in the public comment process; or
             10320          (c) any other person who could obtain judicial review of that action under applicable
             10321      law.
             10322          Section 215. Section 19-2-109.3 is amended to read:
             10323           19-2-109.3. Public access to information.
             10324          A copy of each permit application, compliance plan, emissions or compliance monitoring
             10325      report, certification, and each operating permit issued under this chapter shall be made available
             10326      to the public in accordance with [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             10327      Records Access and Management Act.
             10328          Section 216. Section 19-2-109.5 is amended to read:
             10329           19-2-109.5. Private sector air quality permitting professionals certification
             10330      program.
             10331          (1) As used in this section, "AQPP" means an air quality permitting professional.
             10332          (2) The board may establish a program to certify private sector AQPPs, including
             10333      consultants and employees of companies that may seek air quality permits from the division.

             10334      Any program established under this section shall include:
             10335          (a) a training program established and operated by the department, which describes and
             10336      explains the state law and rules regarding the air quality permit application and approval
             10337      procedure under this chapter;
             10338          (b) the requirement to pass an exam to measure qualifications of AQPP applicants;
             10339          (c) an option for certification of an AQPP by passing the exam without undergoing any
             10340      training required under the program;
             10341          (d) an application process, including a fee established under Section [ 63-38-3.2 ]
             10342      63J-1-303 that covers the costs of the training, testing, and application process and the
             10343      department's maintenance of a list of certified AQPPs;
             10344          (e) certification of qualified AQPP applicants;
             10345          (f) maintenance by the department of a current list of certified AQPPs, which is
             10346      available to the public; [and]
             10347          (g) procedures for the expedited review by the department of air quality permit
             10348      applications submitted by certified AQPPs; and
             10349          (h) professional standards for AQPPs.
             10350          (3) The board may not require AQPP certification as a condition of preparing or
             10351      submitting a notice of intent or operating permit application under this chapter.
             10352          (4) Any program under this section shall provide for revocation of any certification
             10353      issued under this section if the department determines, through an administrative hearing
             10354      conducted under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act,
             10355      that the AQPP:
             10356          (a) knowingly or negligently submitted false information or data as part of an air quality
             10357      permit application;
             10358          (b) prepared more than three air quality permit applications in one calendar year in a
             10359      manner that each did not substantially comply with department application requirements; or
             10360          (c) prepared any air quality permit application in violation of the professional standards
             10361      defined by department rule.

             10362          Section 217. Section 19-2-112 is amended to read:
             10363           19-2-112. Generalized condition of air pollution creating emergency -- Sources
             10364      causing imminent danger to health -- Powers of executive director -- Declaration of
             10365      emergency.
             10366          (1) (a) [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act,
             10367      and any other provision of law to the contrary notwithstanding, if the executive director finds
             10368      that a generalized condition of air pollution exists and that it creates an emergency requiring
             10369      immediate action to protect human health or safety, the executive director, with the concurrence
             10370      of the governor, shall order persons causing or contributing to the air pollution to reduce or
             10371      discontinue immediately the emission of air contaminants.
             10372          (b) The order shall fix a place and time, not later than 24 hours after its issuance, for a
             10373      hearing to be held before the governor.
             10374          (c) Not more than 24 hours after the commencement of this hearing, and without
             10375      adjournment of it, the governor shall affirm, modify, or set aside the order of the executive
             10376      director.
             10377          (2) In the absence of a generalized condition of air pollution referred to in Subsection
             10378      (1), but if the executive director finds that emissions from the operation of one or more air
             10379      contaminant sources is causing imminent danger to human health or safety, [he] the executive
             10380      director may commence adjudicative proceedings under Section [ 63-46b-20 ] 63G-4-502 .
             10381          (3) Nothing in this section limits any power that the governor or any other officer has to
             10382      declare an emergency and act on the basis of that declaration.
             10383          Section 218. Section 19-2-115 is amended to read:
             10384           19-2-115. Violations -- Penalties -- Reimbursement for expenses.
             10385          (1) As used in this section, the terms "knowingly," "willfully," and "criminal negligence"
             10386      shall mean as defined in Section 76-2-103 .
             10387          (2) (a) A person who violates this chapter, or any rule, order, or permit issued or made
             10388      under this chapter is subject in a civil proceeding to a penalty not to exceed $10,000 per day for
             10389      each violation.

             10390          (b) Subsection (2)(a) also applies to rules made under the authority of Section
             10391      19-2-104 , for implementation of 15 U.S.C.A. 2601 et seq., Toxic Substances Control Act,
             10392      Subchapter II - Asbestos Hazard Emergency Response.
             10393          (c) Penalties assessed for violations described in 15 U.S.C.A. 2647, Toxic Substances
             10394      Control Act, Subchapter II - Asbestos Hazard Emergency Response, may not exceed the
             10395      amounts specified in that section and shall be used in accordance with that section.
             10396          (3) A person is guilty of a class A misdemeanor and is subject to imprisonment under
             10397      Section 76-3-204 and a fine of not more than $25,000 per day of violation if that person
             10398      knowingly violates any of the following under this chapter:
             10399          (a) an applicable standard or limitation;
             10400          (b) a permit condition; or
             10401          (c) a fee or filing requirement.
             10402          (4) A person is guilty of a third degree felony and is subject to imprisonment under
             10403      Section 76-3-203 and a fine of not more than $25,000 per day of violation who knowingly:
             10404          (a) makes any false material statement, representation, or certification, in any notice or
             10405      report required by permit; or
             10406          (b) renders inaccurate any monitoring device or method required to be maintained by
             10407      this chapter or applicable rules made under this chapter.
             10408          (5) Any fine or penalty assessed under Subsections (2) or (3) is in lieu of any penalty
             10409      under Section 19-2-109.1 .
             10410          (6) A person who willfully violates Section 19-2-120 is guilty of a class A
             10411      misdemeanor.
             10412          (7) A person who knowingly violates any requirement of an applicable implementation
             10413      plan adopted by the board, more than 30 days after having been notified in writing by the
             10414      executive secretary that the person is violating the requirement, knowingly violates an order
             10415      issued under Subsection 19-2-110 (1)(a), or knowingly handles or disposes of asbestos in
             10416      violation of a rule made under this chapter is guilty of a third degree felony and subject to
             10417      imprisonment under Section 76-3-203 and a fine of not more than $25,000 per day of violation

             10418      in the case of the first offense, and not more than $50,000 per day of violation in the case of
             10419      subsequent offenses.
             10420          (8) (a) As used in this section:
             10421          (i) "Hazardous air pollutant" means any hazardous air pollutant listed under 42 USC
             10422      7412 or any extremely hazardous substance listed under 42 USC 11002(a)(2).
             10423          (ii) "Organization" means a legal entity, other than a government, established or
             10424      organized for any purpose, and includes a corporation, company, association, firm, partnership,
             10425      joint stock company, foundation, institution, trust, society, union, or any other association of
             10426      persons.
             10427          (iii) "Serious bodily injury" means bodily injury which involves a substantial risk of
             10428      death, unconsciousness, extreme physical pain, protracted and obvious disfigurement, or
             10429      protracted loss or impairment of the function of a bodily member, organ, or mental faculty.
             10430          (b) (i) A person is guilty of a class A misdemeanor and subject to imprisonment under
             10431      Section 76-3-204 and a fine of not more than $25,000 per day of violation if that person with
             10432      criminal negligence:
             10433          (A) releases into the ambient air any hazardous air pollutant; and
             10434          (B) places another person in imminent danger of death or serious bodily injury.
             10435          (ii) As used in this Subsection (8)(b), "person" does not include an employee who is
             10436      carrying out the employee's normal activities and who is not a part of senior management
             10437      personnel or a corporate officer.
             10438          (c) A person is guilty of a second degree felony and is subject to imprisonment under
             10439      Section 76-3-203 and a fine of not more than $50,000 per day of violation if that person:
             10440          (i) knowingly releases into the ambient air any hazardous air pollutant; and
             10441          (ii) knows at the time that [he] the person is placing another person in imminent danger
             10442      of death or serious bodily injury.
             10443          (d) If a person is an organization, it shall, upon conviction of violating Subsection
             10444      (8)(c), be subject to a fine of not more than $1,000,000.
             10445          (e) (i) A defendant who is an individual is considered to have acted knowingly under

             10446      Subsections (8)(c) and (d), if:
             10447          (A) the defendant's conduct placed another person in imminent danger of death or
             10448      serious bodily injury; and
             10449          (B) the defendant was aware of or believed that there was an imminent danger of death
             10450      or serious bodily injury to another person.
             10451          (ii) Knowledge possessed by a person other than the defendant may not be attributed to
             10452      the defendant.
             10453          (iii) Circumstantial evidence may be used to prove that the defendant possessed actual
             10454      knowledge, including evidence that the defendant took affirmative steps to be shielded from
             10455      receiving relevant information.
             10456          (f) (i) It is an affirmative defense to prosecution under this Subsection (8) that the
             10457      conduct charged was freely consented to by the person endangered and that the danger and
             10458      conduct charged were reasonably foreseeable hazards of:
             10459          (A) an occupation, a business, a profession; or
             10460          (B) medical treatment or medical or scientific experimentation conducted by
             10461      professionally approved methods and the other person was aware of the risks involved prior to
             10462      giving consent.
             10463          (ii) The defendant has the burden of proof to establish any affirmative defense under this
             10464      Subsection (8)(f) and must prove that defense by a preponderance of the evidence.
             10465          (9) (a) Except as provided in Subsection (9)(b), and unless prohibited by federal law, all
             10466      penalties assessed and collected under the authority of this section shall be deposited in the
             10467      General Fund.
             10468          (b) The department may reimburse itself and local governments from monies collected
             10469      from civil penalties for extraordinary expenses incurred in environmental enforcement activities.
             10470          (c) The department shall regulate reimbursements by making rules in accordance with
             10471      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
             10472          (i) define qualifying environmental enforcement activities; and
             10473          (ii) define qualifying extraordinary expenses.

             10474          Section 219. Section 19-3-104 is amended to read:
             10475           19-3-104. Registration and licensing of radiation sources by department --
             10476      Assessment of fees -- Rulemaking authority and procedure -- Siting criteria.
             10477          (1) As used in this section:
             10478          (a) "Decommissioning" includes financial assurance.
             10479          (b) "Source material" and "byproduct material" have the same definitions as in 42
             10480      U.S.C.A. 2014, Atomic Energy Act of 1954, as amended.
             10481          (2) The board may require the registration or licensing of radiation sources that
             10482      constitute a significant health hazard.
             10483          (3) All sources of ionizing radiation, including ionizing radiation producing machines,
             10484      shall be registered or licensed by the department.
             10485          (4) The board may make rules:
             10486          (a) necessary for controlling exposure to sources of radiation that constitute a
             10487      significant health hazard;
             10488          (b) to meet the requirements of federal law relating to radiation control to ensure the
             10489      radiation control program under this part is qualified to maintain primacy from the federal
             10490      government;
             10491          (c) to establish:
             10492          (i) board accreditation requirements and procedures for mammography facilities; and
             10493          (ii) certification procedure and qualifications for persons who survey mammography
             10494      equipment and oversee quality assurance practices at mammography facilities; and
             10495          (d) as necessary regarding the possession, use, transfer, or delivery of source and
             10496      byproduct material and the disposal of byproduct material to establish requirements for:
             10497          (i) the licensing, operation, decontamination, and decommissioning, including financial
             10498      assurances; and
             10499          (ii) the reclamation of sites, structures, and equipment used in conjunction with the
             10500      activities described in this Subsection (4).
             10501          (5) (a) On and after January 1, 2003, a fee is imposed for the regulation of source and

             10502      byproduct material and the disposal of byproduct material at uranium mills or commercial waste
             10503      facilities, as provided in this Subsection (5).
             10504          (b) On and after January 1, 2003 through March 30, 2003:
             10505          (i) $6,667 per month for uranium mills or commercial sites disposing of or reprocessing
             10506      byproduct material; and
             10507          (ii) $4,167 per month for those uranium mills the executive secretary has determined are
             10508      on standby status.
             10509          (c) On and after March 31, 2003 through June 30, 2003 the same fees as in Subsection
             10510      (5)(b) apply, but only if the federal Nuclear Regulatory Commission grants to Utah an
             10511      amendment for agreement state status for uranium recovery regulation on or before March 30,
             10512      2003.
             10513          (d) If the Nuclear Regulatory Commission does not grant the amendment for state
             10514      agreement status on or before March 30, 2003, fees under Subsection (5)(e) do not apply and
             10515      are not required to be paid until on and after the later date of:
             10516          (i) October 1, 2003; or
             10517          (ii) the date the Nuclear Regulatory Commission grants to Utah an amendment for
             10518      agreement state status for uranium recovery regulation.
             10519          (e) For the payment periods beginning on and after July 1, 2003, the department shall
             10520      establish the fees required under Subsection (5)(a) under Section [ 63-38-3.2 ] 63J-1-303 , subject
             10521      to the restrictions under Subsection (5)(d).
             10522          (f) The department shall deposit fees it receives under this Subsection (5) into the
             10523      Environmental Quality Restricted Account created in Section 19-1-108 .
             10524          (6) (a) The department shall assess fees for registration, licensing, and inspection of
             10525      radiation sources under this section.
             10526          (b) The department shall comply with the requirements of Section [ 63-38-3.2 ]
             10527      63J-1-303 in assessing fees for licensure and registration.
             10528          (7) The department shall coordinate its activities with the Department of Health rules
             10529      made under Section 26-21a-203 .

             10530          (8) (a) Except as provided in Subsection (9), the board may not adopt rules, for the
             10531      purpose of the state assuming responsibilities from the United States Nuclear Regulatory
             10532      Commission with respect to regulation of sources of ionizing radiation, that are more stringent
             10533      than the corresponding federal regulations which address the same circumstances.
             10534          (b) In adopting those rules, the board may incorporate corresponding federal
             10535      regulations by reference.
             10536          (9) (a) The board may adopt rules more stringent than corresponding federal
             10537      regulations for the purpose described in Subsection (8) only if it makes a written finding after
             10538      public comment and hearing and based on evidence in the record that corresponding federal
             10539      regulations are not adequate to protect public health and the environment of the state.
             10540          (b) Those findings shall be accompanied by an opinion referring to and evaluating the
             10541      public health and environmental information and studies contained in the record which form the
             10542      basis for the board's conclusion.
             10543          (10) (a) The board shall by rule:
             10544          (i) authorize independent qualified experts to conduct inspections required under this
             10545      chapter of x-ray facilities registered with the division; and
             10546          (ii) establish qualifications and certification procedures necessary for independent
             10547      experts to conduct these inspections.
             10548          (b) Independent experts under this Subsection (10) are not considered employees or
             10549      representatives of the division or the state when conducting the inspections.
             10550          (11) (a) The board may by rule establish criteria for siting commercial low-level
             10551      radioactive waste treatment or disposal facilities, subject to the prohibition imposed by Section
             10552      19-3-103.7 .
             10553          (b) Subject to Subsection 19-3-105 (10), any facility under Subsection (11)(a) for which
             10554      a radioactive material license is required by this section shall comply with those criteria.
             10555          (c) Subject to Subsection 19-3-105 (10), a facility may not receive a radioactive material
             10556      license until siting criteria have been established by the board. The criteria also apply to
             10557      facilities that have applied for but not received a radioactive material license.

             10558          (12) The board shall by rule establish financial assurance requirements for closure and
             10559      postclosure care of radioactive waste land disposal facilities, taking into account existing
             10560      financial assurance requirements.
             10561          Section 220. Section 19-3-106.4 is amended to read:
             10562           19-3-106.4. Generator site access permits.
             10563          (1) A generator or broker may not transfer radioactive waste to a commercial
             10564      radioactive waste treatment or disposal facility in the state without first obtaining a generator
             10565      site access permit from the executive secretary.
             10566          (2) The board may make rules pursuant to Section 19-3-104 governing a generator site
             10567      access permit program.
             10568          (3) (a) Except as provided in Subsection (3)(b), the department shall establish fees for
             10569      generator site access permits in accordance with Section [ 63-38-3.2 ] 63J-1-303 .
             10570          (b) On and after July 1, 2001 through June 30, 2002, the fees are:
             10571          (i) $1,300 for generators transferring 1,000 or more cubic feet of radioactive waste per
             10572      year;
             10573          (ii) $500 for generators transferring less than 1,000 cubic feet of radioactive waste per
             10574      year; and
             10575          (iii) $5,000 for brokers.
             10576          (c) The department shall deposit fees received under this section into the Environmental
             10577      Quality Restricted Account created in Section 19-1-108 .
             10578          (4) This section does not apply to a generator or broker transferring radioactive waste
             10579      to a uranium mill licensed under 10 C.F.R. Part 40, Domestic Licensing of Source Material.
             10580          Section 221. Section 19-3-109 is amended to read:
             10581           19-3-109. Civil penalties -- Appeals.
             10582          (1) A person who violates any provision of Sections 19-3-104 through 19-3-113 , any
             10583      rule or order issued under the authority of those sections, or the terms of a license, permit, or
             10584      registration certificate issued under the authority of those sections is subject to a civil penalty
             10585      not to exceed $5,000 for each violation.

             10586          (2) The board may assess and make a demand for payment of a penalty under this
             10587      section and may compromise or remit that penalty.
             10588          (3) In order to make demand for payment of a penalty assessed under this section, the
             10589      board shall issue a notice of agency action, specifying, in addition to the requirements for
             10590      notices of agency action contained in [Title 63, Chapter 46b] Title 63G, Chapter 4,
             10591      Administrative Procedures Act:
             10592          (a) the date, facts, and nature of each act or omission charged;
             10593          (b) the provision of the statute, rule, order, license, permit, or registration certificate
             10594      that is alleged to have been violated;
             10595          (c) each penalty that the bureau proposes to impose, together with the amount and date
             10596      of effect of that penalty; and
             10597          (d) that failure to pay the penalty or respond may result in a civil action for collection.
             10598          (4) A person notified according to Subsection (3) may request an adjudicative
             10599      proceeding.
             10600          (5) Upon request by the board, the attorney general may institute a civil action to
             10601      collect a penalty imposed under this section.
             10602          (6) (a) Except as provided in Subsection (b), the department shall deposit all monies
             10603      collected from civil penalties imposed under this section into the General Fund.
             10604          (b) The department may reimburse itself and local governments from monies collected
             10605      from civil penalties for extraordinary expenses incurred in environmental enforcement activities.
             10606          (c) The department shall regulate reimbursements by making rules that:
             10607          (i) define qualifying environmental enforcement activities; and
             10608          (ii) define qualifying extraordinary expenses.
             10609          Section 222. Section 19-3-111 is amended to read:
             10610           19-3-111. Impounding of radioactive material.
             10611          (1) The board may impound the radioactive material of any person if:
             10612          (a) the material poses an imminent threat or danger to the public health or safety; or
             10613          (b) that person is violating:

             10614          (i) any provision of Sections 19-3-104 through 19-3-113 ;
             10615          (ii) any rules or orders enacted or issued under the authority of those sections; or
             10616          (iii) the terms of a license, permit, or registration certificate issued under the authority
             10617      of those sections.
             10618          (2) Before any dispositive action may be taken with regard to impounded radioactive
             10619      materials, the board shall comply with the procedures and requirements of [Title 63, Chapter
             10620      46b] Title 63G, Chapter 4, Administrative Procedures Act.
             10621          Section 223. Section 19-3-303 is amended to read:
             10622           19-3-303. Definitions.
             10623          As used in this part:
             10624          (1) "Final judgment" means a final ruling or judgment, including any supporting
             10625      opinion, that determines the rights of the parties and concerning which all appellate remedies
             10626      have been exhausted or the time for appeal has expired.
             10627          (2) "Goods" means any materials or supplies, whether raw, processed, or manufactured.
             10628          (3) "Greater than class C radioactive waste" means low-level radioactive waste that has
             10629      higher concentrations of specific radionuclides than allowed for class C waste.
             10630          (4) "Gross value of the contract" means the totality of the consideration received for
             10631      any goods, services, or municipal-type services delivered or rendered in the state without any
             10632      deduction for expense paid or accrued with respect to it.
             10633          (5) "High-level nuclear waste" has the same meaning as in Section 19-3-102 .
             10634          (6) "Municipal-type services" includes, but is not limited to:
             10635          (a) fire protection service;
             10636          (b) waste and garbage collection and disposal;
             10637          (c) planning and zoning;
             10638          (d) street lighting;
             10639          (e) life support and paramedic services;
             10640          (f) water;
             10641          (g) sewer;

             10642          (h) electricity;
             10643          (i) natural gas or other fuel; or
             10644          (j) law enforcement.
             10645          (7) "Organization" means a corporation, limited liability company, partnership, limited
             10646      liability partnership, joint venture, consortium, association, trust, or other entity formed to
             10647      undertake an enterprise, whether or not for profit.
             10648          (8) "Placement" means transportation, transfer, storage, decay in storage, treatment, or
             10649      disposal.
             10650          (9) "Political subdivision" means any county, city, town, school district, public transit
             10651      district, redevelopment agency, special improvement or taxing district, or other governmental
             10652      subdivision or public corporation.
             10653          (10) "Rule" means a rule made by the department under [Title 63, Chapter 46a] Title
             10654      63G, Chapter 3, Utah Administrative Rulemaking Act.
             10655          (11) "Service" or "services" means any work or governmental program which provides
             10656      a benefit.
             10657          (12) "Storage facility" means any facility which stores, holds, or otherwise provides for
             10658      the emplacement of waste regardless of the intent to recover that waste for subsequent use,
             10659      processing, or disposal.
             10660          (13) "Transfer facility" means any facility which transfers waste from and between
             10661      transportation modes, vehicles, cars, or other units, and includes rail terminals and intermodal
             10662      transfer points.
             10663          (14) "Waste" or "wastes" means high-level nuclear waste and greater than class C
             10664      radioactive waste.
             10665          Section 224. Section 19-3-308 is amended to read:
             10666           19-3-308. Application fee and annual fees.
             10667          (1) (a) Any application for a waste transfer, storage, decay in storage, treatment, or
             10668      disposal facility shall be accompanied by an initial fee of $5,000,000.
             10669          (b) The applicant shall subsequently pay an additional fee to cover the costs to the state

             10670      associated with review of the application, including costs to the state and the state's contractors
             10671      for permitting, technical, administrative, legal, safety, and emergency response reviews,
             10672      planning, training, infrastructure, and other impact analyses, studies, and services required to
             10673      evaluate a proposed facility.
             10674          (2) For the purpose of funding the state oversight and inspection of any waste transfer,
             10675      storage, decay in storage, treatment, or disposal facility, and to establish state infrastructure,
             10676      including, but not limited to providing for state Department of Environmental Quality, state
             10677      Department of Transportation, state Department of Public Safety, and other state agencies'
             10678      technical, administrative, legal, infrastructure, maintenance, training, safety, socio-economic,
             10679      law enforcement, and emergency resources necessary to respond to these facilities, the owner or
             10680      operator shall pay to the state a fee as established by department rule under Section [ 63-38-3.2 ]
             10681      63J-1-303 , to be assessed:
             10682          (a) per ton of storage cask and high level nuclear waste per year for storage, decay in
             10683      storage, treatment, or disposal of high level nuclear waste;
             10684          (b) per ton of transportation cask and high level nuclear waste for each transfer of high
             10685      level nuclear waste;
             10686          (c) per ton of storage cask and greater than class C radioactive waste for the storage,
             10687      decay in storage, treatment, or disposal of greater than class C radioactive waste; and
             10688          (d) per ton of transportation cask and greater than class C radioactive waste for each
             10689      transfer of greater than class C radioactive waste.
             10690          (3) Funds collected under Subsection (2) shall be placed in the Nuclear Accident and
             10691      Hazard Compensation Account, created in Subsection 19-3-309 (3).
             10692          (4) The owner or operator of the facility shall pay the fees imposed under this section to
             10693      the department on or before the 15th day of the month following the month in which the fee
             10694      accrued.
             10695          (5) Annual fees due under this part accrue on July 1 of each year and shall be paid to
             10696      the department by July 15 of that year.
             10697          Section 225. Section 19-3-315 is amended to read:

             10698           19-3-315. Transportation requirements.
             10699          (1) A person may not transport wastes in the state, including on highways, roads, rail,
             10700      by air, or otherwise, without:
             10701          (a) having received approval from the state Department of Transportation; and
             10702          (b) having demonstrated compliance with rules of the state Department of
             10703      Transportation.
             10704          (2) The Department of Transportation may:
             10705          (a) make rules requiring a transport and route approval permit, weight restrictions,
             10706      tracking systems, and state escort; and
             10707          (b) assess appropriate fees as established under Section [ 63-38-3.2 ] 63J-1-303 for each
             10708      shipment of waste, consistent with the requirements and limitations of federal law.
             10709          (3) The Department of Environmental Quality shall establish any other transportation
             10710      rules as necessary to protect the public health, safety, and environment.
             10711          (4) Unless expressly authorized by the governor, with the concurrence of the
             10712      Legislature, an easement or other interest in property may not be granted upon any lands within
             10713      the state for a right of way for any carrier transportation system that:
             10714          (a) is not a class I common or contract rail carrier organized and doing business prior to
             10715      January 1, 1999; and
             10716          (b) transports high level nuclear waste or greater than class C radioactive waste to a
             10717      storage facility within the state.
             10718          Section 226. Section 19-4-104 is amended to read:
             10719           19-4-104. Powers of board.
             10720          (1) The board may:
             10721          (a) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             10722      Administrative Rulemaking Act:
             10723          (i) establishing standards that prescribe the maximum contaminant levels in any public
             10724      water system and provide for monitoring, record-keeping, and reporting of water quality related
             10725      matters;

             10726          (ii) governing design, construction, operation, and maintenance of public water systems;
             10727          (iii) granting variances and exemptions to the requirements established under this
             10728      chapter that are not less stringent than those allowed under federal law;
             10729          (iv) protecting watersheds and water sources used for public water systems; and
             10730          (v) governing capacity development in compliance with Section 1420 of the federal
             10731      Safe Drinking Water Act, 42 U.S.C.A. 300f et seq.;
             10732          (b) issue orders necessary to enforce the provisions of this chapter, enforce the orders
             10733      by appropriate administrative and judicial proceedings, and institute judicial proceedings to
             10734      secure compliance with this chapter;
             10735          (c) (i) hold hearings relating to the administration of this chapter and compel the
             10736      attendance of witnesses, the production of documents and other evidence, administer oaths and
             10737      take testimony, and receive evidence as necessary; or
             10738          (ii) appoint hearing officers and authorize them to exercise powers under this
             10739      Subsection (1)(c);
             10740          (d) require the submission to the executive secretary of plans and specifications for
             10741      construction of, substantial addition to, or alteration of public water systems for review and
             10742      approval by the board before that action begins and require any modifications or impose any
             10743      conditions that may be necessary to carry out the purposes of this chapter;
             10744          (e) advise, consult, cooperate with, provide technical assistance to, and enter into
             10745      agreements, contracts, or cooperative arrangements with state, federal, or interstate agencies,
             10746      municipalities, local health departments, educational institutions, or others necessary to carry
             10747      out the purposes of this chapter and to support the laws, ordinances, rules, and regulations of
             10748      local jurisdictions;
             10749          (f) request and accept financial assistance from other public agencies, private entities,
             10750      and the federal government to carry out the purposes of this chapter;
             10751          (g) develop and implement an emergency plan to protect the public when declining
             10752      drinking water quality or quantity creates a serious health risk and issue emergency orders if a
             10753      health risk is imminent;

             10754          (h) authorize employees or agents of the department, after reasonable notice and
             10755      presentation of credentials, to enter any part of a public water system at reasonable times to
             10756      inspect the facilities and water quality records required by board rules, conduct sanitary surveys,
             10757      take samples, and investigate the standard of operation and service delivered by public water
             10758      systems;
             10759          (i) meet the requirements of federal law related or pertaining to drinking water; and
             10760          (j) exercise all other incidental powers necessary to carry out the purpose of this
             10761      chapter.
             10762          (2) (a) The board may adopt and enforce standards and establish fees for certification of
             10763      operators of any public water system.
             10764          (b) The board may not require certification of operators for a water system serving a
             10765      population of 800 or less except:
             10766          (i) to the extent required for compliance with Section 1419 of the federal Safe Drinking
             10767      Water Act, 42 U.S.C.A. 300f et seq.; and
             10768          (ii) for a system that is required to treat its drinking water.
             10769          (c) The certification program shall be funded from certification and renewal fees.
             10770          (3) Routine extensions or repairs of existing public water systems that comply with the
             10771      rules and do not alter the system's ability to provide an adequate supply of water are exempt
             10772      from the provisions of Subsection (1)(d).
             10773          (4) (a) The board may adopt and enforce standards and establish fees for certification of
             10774      persons engaged in administering cross connection control programs or backflow prevention
             10775      assembly training, repair, and maintenance testing.
             10776          (b) The certification program shall be funded from certification and renewal fees.
             10777          Section 227. Section 19-4-109 is amended to read:
             10778           19-4-109. Violations -- Penalties -- Reimbursement for expenses.
             10779          (1) Any person that violates any rule or order made or issued pursuant to this chapter is
             10780      subject to a civil penalty of not more than $1,000 per day for each day of violation. The board
             10781      may assess and make a demand for payment of a penalty under this section by directing the

             10782      executive secretary to issue a notice of agency action under [Title 63, Chapter 46b] Title 63G,
             10783      Chapter 4, Administrative Procedures Act.
             10784          (2) (a) Any person that willfully violates any rule or order made or issued pursuant to
             10785      this chapter, or that willfully fails to take any corrective action required by such an order, is
             10786      guilty of a class B misdemeanor and subject to a fine of not more than $5,000 per day for each
             10787      day of violation.
             10788          (b) In addition, the person is subject, in a civil proceeding, to a penalty of not more than
             10789      $5,000 per day for each day of violation.
             10790          (3) (a) Except as provided in Subsection (b), all penalties assessed and collected under
             10791      the authority of this section shall be deposited in the General Fund.
             10792          (b) The department may reimburse itself and local governments from monies collected
             10793      from civil penalties for extraordinary expenses incurred in environmental enforcement activities.
             10794          (c) The department shall regulate reimbursements by making rules that:
             10795          (i) define qualifying environmental enforcement activities; and
             10796          (ii) define qualifying extraordinary expenses.
             10797          Section 228. Section 19-5-104 is amended to read:
             10798           19-5-104. Powers and duties of board.
             10799          (1) The board has the following powers and duties, but the board shall give priority to
             10800      pollution that results in hazards to the public health:
             10801          (a) develop programs for the prevention, control, and abatement of new or existing
             10802      pollution of the waters of the state;
             10803          (b) advise, consult, and cooperate with other agencies of the state, the federal
             10804      government, other states, and interstate agencies, and with affected groups, political
             10805      subdivisions, and industries to further the purposes of this chapter;
             10806          (c) encourage, participate in, or conduct studies, investigations, research, and
             10807      demonstrations relating to water pollution and causes of water pollution as the board finds
             10808      necessary to discharge its duties;
             10809          (d) collect and disseminate information relating to water pollution and the prevention,

             10810      control, and abatement of water pollution;
             10811          (e) adopt, modify, or repeal standards of quality of the waters of the state and classify
             10812      those waters according to their reasonable uses in the interest of the public under conditions the
             10813      board may prescribe for the prevention, control, and abatement of pollution;
             10814          (f) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             10815      Administrative Rulemaking Act, taking into account Subsection (2), to:
             10816          (i) implement the awarding of construction loans to political subdivisions and municipal
             10817      authorities under Section 11-8-2 , including:
             10818          (A) requirements pertaining to applications for loans;
             10819          (B) requirements for determination of eligible projects;
             10820          (C) requirements for determination of the costs upon which loans are based, which
             10821      costs may include engineering, financial, legal, and administrative expenses necessary for the
             10822      construction, reconstruction, and improvement of sewage treatment plants, including major
             10823      interceptors, collection systems, and other facilities appurtenant to the plant;
             10824          (D) a priority schedule for awarding loans, in which the board may consider in addition
             10825      to water pollution control needs any financial needs relevant, including per capita cost, in
             10826      making a determination of priority; and
             10827          (E) requirements for determination of the amount of the loan;
             10828          (ii) implement the awarding of loans for nonpoint source projects pursuant to Section
             10829      73-10c-4.5 ;
             10830          (iii) set effluent limitations and standards subject to Section 19-5-116 ;
             10831          (iv) implement or effectuate the powers and duties of the board; and
             10832          (v) protect the public health for the design, construction, operation, and maintenance of
             10833      underground wastewater disposal systems, liquid scavenger operations, and vault and earthen
             10834      pit privies;
             10835          (g) issue, modify, or revoke orders:
             10836          (i) prohibiting or abating discharges;
             10837          (ii) requiring the construction of new treatment works or any parts of them, or requiring

             10838      the modification, extension, or alteration of existing treatment works as specified by board rule
             10839      or any parts of them, or the adoption of other remedial measures to prevent, control, or abate
             10840      pollution;
             10841          (iii) setting standards of water quality, classifying waters or evidencing any other
             10842      determination by the board under this chapter; and
             10843          (iv) requiring compliance with this chapter and with rules made under this chapter;
             10844          (h) review plans, specifications, or other data relative to disposal systems or any part of
             10845      disposal systems, and issue construction permits for the installation or modification of treatment
             10846      works or any parts of them;
             10847          (i) after public notice and opportunity for a public hearing, issue, continue in effect,
             10848      revoke, modify, or deny discharge permits under reasonable conditions the board may prescribe
             10849      to control the management of sewage sludge or to prevent or control the discharge of
             10850      pollutants, including effluent limitations for the discharge of wastes into the waters of the state;
             10851          (j) give reasonable consideration in the exercise of its powers and duties to the
             10852      economic impact of water pollution control on industry and agriculture;
             10853          (k) exercise all incidental powers necessary to carry out the purposes of this chapter,
             10854      including delegation to the department of its duties as appropriate to improve administrative
             10855      efficiency;
             10856          (l) meet the requirements of federal law related to water pollution;
             10857          (m) establish and conduct a continuing planning process for control of water pollution
             10858      including the specification and implementation of maximum daily loads of pollutants;
             10859          (n) make rules governing inspection, monitoring, recordkeeping, and reporting
             10860      requirements for underground injections and require permits for them, to protect drinking water
             10861      sources, except for wells, pits, and ponds covered by Section 40-6-5 regarding gas and oil,
             10862      recognizing that underground injection endangers drinking water sources if:
             10863          (i) injection may result in the presence of any contaminant in underground water which
             10864      supplies or can reasonably be expected to supply any public water system, as defined in Section
             10865      19-4-102 ; and

             10866          (ii) the presence of the contaminant may result in the public water system not complying
             10867      with any national primary drinking water standards or may otherwise adversely affect the health
             10868      of persons;
             10869          (o) make rules governing sewage sludge management, including permitting, inspecting,
             10870      monitoring, recordkeeping, and reporting requirements;
             10871          (p) adopt and enforce rules and establish fees to cover the costs of testing for
             10872      certification of operators of treatment works and sewerage systems operated by political
             10873      subdivisions;
             10874          (q) notwithstanding the provisions of Section 19-4-112 , make rules governing design
             10875      and construction of irrigation systems which convey sewage treatment facility effluent of human
             10876      origin in pipelines under pressure, unless contained in surface pipes wholly on private property
             10877      and for agricultural purposes, and which are constructed after May 4, 1998; and
             10878          (r) (i) approve, approve in part, approve with conditions, or deny, in writing, an
             10879      application for water reuse under Title 73, Chapter 3c, Wastewater Reuse Act; and
             10880          (ii) issue an operating permit for water reuse under Title 73, Chapter 3c, Wastewater
             10881      Reuse Act.
             10882          (2) In determining eligible project costs and in establishing priorities pursuant to
             10883      Subsection (1)(f)(i), the board shall take into consideration the availability of federal grants.
             10884          (3) In establishing certification rules under Subsection (1)(p), the board shall:
             10885          (a) base the requirements for certification on the size, treatment process type, and
             10886      complexity of the treatment works and sewerage systems operated by political subdivisions;
             10887          (b) allow operators until three years after the date of adoption of the rules to obtain
             10888      initial certification;
             10889          (c) allow new operators one year from the date they are hired by a treatment plant or
             10890      sewerage system or three years after the date of adoption of the rules, whichever occurs later,
             10891      to obtain certification;
             10892          (d) issue certification upon application and without testing, at a grade level comparable
             10893      to the grade of current certification to operators who are currently certified under the voluntary

             10894      certification plan for wastewater works operators as recognized by the board; and
             10895          (e) issue a certification upon application and without testing that is valid only at the
             10896      treatment works or sewerage system where that operator is currently employed if the operator:
             10897          (i) is in charge of and responsible for the treatment works or sewerage system on March
             10898      16, 1991;
             10899          (ii) has been employed at least ten years in the operation of that treatment works or
             10900      sewerage system prior to March 16, 1991; and
             10901          (iii) demonstrates to the board [his] the operator's capability to operate the treatment
             10902      works or sewerage system at which [he] the operator is currently employed by providing
             10903      employment history and references as required by the board.
             10904          Section 229. Section 19-5-113 is amended to read:
             10905           19-5-113. Power of board to enter property for investigation -- Records and
             10906      reports required of owners or operators.
             10907          (1) The board or its authorized representative has, after presentation of credentials, the
             10908      authority to enter at reasonable times upon any private or public property for the purpose of:
             10909          (a) sampling, inspecting, or investigating matters or conditions relating to pollution or
             10910      the possible pollution of any waters of the state, effluents or effluent sources, monitoring
             10911      equipment, or sewage sludge; and
             10912          (b) reviewing and copying records required to be maintained under this chapter.
             10913          (2) (a) The board may require a person managing sewage sludge, or the owner or
             10914      operator of a disposal system, including a system discharging into publicly[-]owned treatment
             10915      works, to:
             10916          (i) establish and maintain reasonable records and make reports relating to the operation
             10917      of the system or the management of the sewage sludge;
             10918          (ii) install, use, and maintain monitoring equipment or methods;
             10919          (iii) sample, and analyze effluents or sewage sludges; and
             10920          (iv) provide other information reasonably required.
             10921          (b) The records, reports, and information shall be available to the public except as

             10922      provided in Subsection 19-1-306 (2) or Subsections [ 63-2-304 ] 63G-2-305 (1) and (2),
             10923      Government Records Access and Management Act, as appropriate, for other than effluent
             10924      information.
             10925          Section 230. Section 19-5-120 is amended to read:
             10926           19-5-120. Sewage permit program fee.
             10927          (1) The department may assess a fee established under Section [ 63-38-3.2 ] 63J-1-303
             10928      against persons required to obtain a permit under Section 19-5-108 for the management of
             10929      sewage sludge, to be applied to the costs of administering the sewage permit program required
             10930      by this chapter.
             10931          (2) The total of the combined fees assessed against all permittees under this section may
             10932      not be more than $28,000 annually.
             10933          (3) In establishing the fee for each sludge disposal permit holder, the department shall
             10934      take into account the proportionate size of the population served by the permit holder.
             10935          (4) All proceeds from the fee shall be applied to the administering of the sewage permit
             10936      program required by this chapter.
             10937          Section 231. Section 19-5-121 is amended to read:
             10938           19-5-121. Underground wastewater disposal systems -- Certification required to
             10939      design, inspect, maintain, or conduct percolation or soil tests -- Exemptions -- Rules --
             10940      Fees.
             10941          (1) As used in this section, "maintain" does not include the pumping of an underground
             10942      wastewater disposal system.
             10943          (2) (a) Except as provided in Subsections (2)(b) and (2)(c), beginning January 1, 2002,
             10944      a person may not design, inspect, maintain, or conduct percolation or soil tests for an
             10945      underground wastewater disposal system, without first obtaining certification from the board.
             10946          (b) An individual is not required to obtain certification from the board to maintain an
             10947      underground wastewater disposal system that serves a noncommercial, private residence owned
             10948      by the individual or a member of the individual's family and in which the individual or a member
             10949      of the individual's family resides or an employee of the individual resides without payment of

             10950      rent.
             10951          (c) The board shall make rules allowing an uncertified individual to conduct percolation
             10952      or soil tests for an underground wastewater disposal system that serves a noncommercial,
             10953      private residence owned by the individual and in which the individual resides or intends to
             10954      reside, or which is intended for use by an employee of the individual without payment of rent, if
             10955      the individual:
             10956          (i) has the capability of properly conducting the tests; and
             10957          (ii) is supervised by a certified individual when conducting the tests.
             10958          (3) (a) The board shall adopt and enforce rules for the certification and recertification of
             10959      individuals who design, inspect, maintain, or conduct percolation or soil tests for underground
             10960      wastewater disposal systems.
             10961          (b) (i) The rules shall specify requirements for education and training and the type and
             10962      duration of experience necessary to obtain certification.
             10963          (ii) The rules shall recognize the following in meeting the requirements for certification:
             10964          (A) the experience of a contractor licensed under Title 58, Chapter 55, Utah
             10965      Construction Trades Licensing Act, who has five or more years of experience installing
             10966      underground wastewater disposal systems;
             10967          (B) the experience of an environmental health scientist licensed under Title 58, Chapter
             10968      20a, Environmental Health Scientist Act; or
             10969          (C) the educational background of a professional engineer licensed under Title 58,
             10970      Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act.
             10971          (iii) If eligibility for certification is based on experience, the applicant for certification
             10972      must show proof of experience.
             10973          (4) The department may establish fees in accordance with Section [ 63-38-3.2 ]
             10974      63J-1-303 for the testing and certification of individuals who design, inspect, maintain, or
             10975      conduct percolation or soil tests for underground wastewater disposal systems.
             10976          Section 232. Section 19-5-122 is amended to read:
             10977           19-5-122. Underground wastewater disposal systems -- Fee imposed on new

             10978      systems.
             10979          (1) Beginning July 1, 2001, a one-time fee is imposed on each new underground
             10980      wastewater disposal system installed.
             10981          (2) (a) From July 1, 2001 through June 30, 2002, the fee shall be $25.
             10982          (b) Beginning July 1, 2002, the fee shall be established by the department in accordance
             10983      with Section [ 63-38-3.2 ] 63J-1-303 .
             10984          (3) (a) The fee shall be paid when plans and specifications for the construction of a new
             10985      underground wastewater disposal system are approved by the local health department or the
             10986      Department of Environmental Quality.
             10987          (b) A local health department shall remit the fee revenue to the Division of Finance
             10988      quarterly.
             10989          (4) The fee revenue shall be:
             10990          (a) deposited into the Underground Wastewater Disposal Restricted Account created in
             10991      Section 19-5-123 ; and
             10992          (b) used to pay for costs of underground wastewater disposal system training programs.
             10993          Section 233. Section 19-6-102.6 is amended to read:
             10994           19-6-102.6. Legislative participation in landfill siting disputes.
             10995          (1) (a) Upon the Legislature's receipt of a written request by a county governing body
             10996      or a member of the Legislature whose district is involved in a landfill siting dispute, the
             10997      president of the Senate and the speaker of the House shall appoint a committee as described
             10998      under Subsection (2) and volunteers under Subsection (3) to actively seek an acceptable
             10999      location for a municipal landfill if there is a dispute between two or more counties regarding the
             11000      proposed site of a municipal landfill.
             11001          (b) The president and the speaker shall consult with the legislators appointed under this
             11002      subsection regarding their appointment of members of the committee under Subsection (2), and
             11003      volunteers under Subsection (3).
             11004          (2) The committee shall consist of the following members, appointed jointly by the
             11005      president and the speaker:

             11006          (a) two members from the Senate:
             11007          (i) one member from the county where the proposed landfill site is located; and
             11008          (ii) one member from the other county involved in the dispute, but if more than one
             11009      other county is involved, still only one senator from one of those counties;
             11010          (b) two members from the House:
             11011          (i) one member from the county where the proposed landfill site is located; and
             11012          (ii) one member from the other county involved in the dispute, but if more than one
             11013      other county is involved, still only one representative from one of those counties;
             11014          (c) one individual whose current principal residence is within a community located
             11015      within 20 miles of any exterior boundary of the proposed landfill site, but if no community is
             11016      located within 20 miles of the community, then an individual whose current residence is in the
             11017      community nearest the proposed landfill site;
             11018          (d) two resident citizens from the county where the proposed landfill site is located; and
             11019          (e) three resident citizens from the other county involved in the dispute, but if more
             11020      than one other county is involved, still only three citizen representatives from those counties.
             11021          (3) Two volunteers shall be appointed under Subsection (1). The volunteers shall be
             11022      individuals who agree to assist, as requested, the committee members who represent the
             11023      interests of the county where the proposed landfill site is located.
             11024          (4) (a) Funding and staffing for the committee shall be provided jointly and equally by
             11025      the Senate and the House.
             11026          (b) The Department of Environmental Quality shall, at the request of the committee and
             11027      as funds are available within the department's existing budget, provide support in arranging for
             11028      committee hearings to receive public input and secretarial staff to make a record of those
             11029      hearings.
             11030          (5) The committee shall:
             11031          (a) appoint a chair from among its members; and
             11032          (b) meet as necessary, but not less often than once per month, until its work is
             11033      completed.

             11034          (6) The committee shall report in writing the results of its work and any
             11035      recommendations it may have for legislative action to the interim committees of the Legislature
             11036      as directed by the Legislative Management Committee.
             11037          (7) (a) All action by the division, the executive secretary, or the division board of the
             11038      Department of Environmental Quality regarding any proposed municipal landfill site, regarding
             11039      which a request has been submitted under Subsection (1), is tolled for one year from the date
             11040      the request is submitted, or until the committee completes its work under this section,
             11041      whichever occurs first. This Subsection (7) also tolls the time limits imposed by Subsection
             11042      19-6-108 (13).
             11043          (b) This Subsection (7) applies to any proposed landfill site regarding which the
             11044      department has not granted final approval on or before March 21, 1995.
             11045          (c) As used in this Subsection (7), "final approval" means final agency action taken after
             11046      conclusion of proceedings under Sections [ 63-46b-9 ] 63G-4-207 through [ 63-46b-18 ]
             11047      63G-4-405 .
             11048          (8) This section does not apply to a municipal solid waste facility that is, on or before
             11049      March 23, 1994:
             11050          (a) operating under an existing permit or the renewal of an existing permit issued by the
             11051      local health department or other authority granted by the Department of Environmental Quality;
             11052      or
             11053          (b) operating under the approval of the local health department, regardless of whether a
             11054      formal permit has been issued.
             11055          Section 234. Section 19-6-105 is amended to read:
             11056           19-6-105. Rules of board.
             11057          (1) The board may make rules in accordance with [Title 63, Chapter 46a] Title 63G,
             11058      Chapter 3, Utah Administrative Rulemaking Act:
             11059          (a) establishing minimum standards for protection of human health and the
             11060      environment, for the storage, collection, transport, recovery, treatment, and disposal of solid
             11061      waste, including requirements for the approval of plans for the construction, extension,

             11062      operation, and closure of solid waste disposal sites;
             11063          (b) identifying wastes which are determined to be hazardous, including wastes
             11064      designated as hazardous under Sec. 3001 of the Resource Conservation and Recovery Act of
             11065      1976, 42 U.S.C., Sec. 6921, et seq.;
             11066          (c) governing generators and transporters of hazardous wastes and owners and
             11067      operators of hazardous waste treatment, storage, and disposal facilities, including requirements
             11068      for keeping records, monitoring, submitting reports, and using a manifest, without treating
             11069      high-volume wastes such as cement kiln dust, mining wastes, utility waste, gas and oil drilling
             11070      muds, and oil production brines in a manner more stringent than they are treated under federal
             11071      standards;
             11072          (d) requiring an owner or operator of a treatment, storage, or disposal facility that is
             11073      subject to a plan approval under Section 19-6-108 or which received waste after July 26, 1982,
             11074      to take appropriate corrective action or other response measures for releases of hazardous
             11075      waste or hazardous waste constituents from the facility, including releases beyond the
             11076      boundaries of the facility;
             11077          (e) specifying the terms and conditions under which the board shall approve,
             11078      disapprove, revoke, or review hazardous wastes operation plans;
             11079          (f) governing public hearings and participation under this part;
             11080          (g) establishing standards governing underground storage tanks, in accordance with
             11081      Title 19, Chapter 6, Part 4, Underground Storage Tank Act;
             11082          (h) relating to the collection, transportation, processing, treatment, storage, and
             11083      disposal of infectious waste in health facilities in accordance with the requirements of Section
             11084      19-6-106 ;
             11085          (i) defining closure plans as major or minor;
             11086          (j) defining modification plans as major or minor; and
             11087          (k) prohibiting refuse, offal, garbage, dead animals, decaying vegetable matter, or
             11088      organic waste substance of any kind to be thrown, or remain upon or in any street, road, ditch,
             11089      canal, gutter, public place, private premises, vacant lot, watercourse, lake, pond, spring, or well.

             11090          (2) If any of the following are determined to be hazardous waste and are therefore
             11091      subjected to the provisions of this part, the board shall, in the case of landfills or surface
             11092      impoundments that receive the solid wastes, take into account the special characteristics of the
             11093      wastes, the practical difficulties associated with applying requirements for other wastes to the
             11094      wastes, and site specific characteristics, including the climate, geology, hydrology, and soil
             11095      chemistry at the site, if the modified requirements assure protection of human health and the
             11096      environment and are no more stringent than federal standards applicable to wastes:
             11097          (a) solid waste from the extraction, beneficiation, or processing of ores and minerals,
             11098      including phosphate rock and overburden from the mining of uranium;
             11099          (b) fly ash waste, bottom ash waste, slag waste, and flue gas emission control waste
             11100      generated primarily from the combustion of coal or other fossil fuels; and
             11101          (c) cement kiln dust waste.
             11102          (3) The board shall establish criteria for siting commercial hazardous waste treatment,
             11103      storage, and disposal facilities, including commercial hazardous waste incinerators. Those
             11104      criteria shall apply to any facility or incinerator for which plan approval is required under
             11105      Section 19-6-108 .
             11106          Section 235. Section 19-6-108.3 is amended to read:
             11107           19-6-108.3. Executive secretary to issue written assurances, make determinations,
             11108      and partition operation plans -- Board to make rules.
             11109          (1) Based upon risk to human health or the environment from potential exposure to
             11110      hazardous waste, the executive secretary may:
             11111          (a) even if corrective action is incomplete, issue an enforceable written assurance to a
             11112      person acquiring an interest in real property covered by an operation plan that the person to
             11113      whom the assurance is issued:
             11114          (i) is not a permittee under the operation plan; and
             11115          (ii) will not be subject to an enforcement action under this part for contamination that
             11116      exists or for violations under this part that occurred before the person acquired the interest in
             11117      the real property covered by the operation plan;

             11118          (b) determine that corrective action to the real property covered by the operation plan
             11119      is:
             11120          (i) complete;
             11121          (ii) incomplete;
             11122          (iii) unnecessary with an environmental covenant; or
             11123          (iv) unnecessary without an environmental covenant; and
             11124          (c) partition from an operation plan a portion of real property subject to the operation
             11125      plan after determining that corrective action for that portion of real property is:
             11126          (i) complete;
             11127          (ii) unnecessary with an environmental covenant; or
             11128          (iii) unnecessary without an environmental covenant.
             11129          (2) If the executive secretary determines that an environmental covenant is necessary
             11130      under Subsection (1)(b) or (c), the executive secretary shall require that the real property be
             11131      subject to an environmental covenant according to Title 57, Chapter 25, Uniform Environmental
             11132      Covenants Act.
             11133          (3) An assurance issued under Subsection (1) protects the person to whom the
             11134      assurance is issued from any cost recovery and contribution action under state law.
             11135          (4) By following the procedures and requirements of [Title 63, Chapter 46b] Title 63G,
             11136      Chapter 4, Administrative Procedures Act, the board may adopt rules to administer this section.
             11137          Section 236. Section 19-6-303 is amended to read:
             11138           19-6-303. Rulemaking provisions.
             11139          The executive director may regulate hazardous substances releases by making rules in
             11140      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             11141      Act, consistent with the substantive requirements of CERCLA, to establish the requirements for
             11142      remedial investigation studies and remedial action plans.
             11143          Section 237. Section 19-6-321 is amended to read:
             11144           19-6-321. Construction with other state and federal laws -- Governmental
             11145      immunity.

             11146          (1) Except as provided in Subsection (2), nothing in this part affects or modifies in any
             11147      way the obligations or liability of any person under a contract or any other provision of this part
             11148      or state or federal law, including common law, for damages, indemnification, injury, or loss
             11149      associated with a hazardous material or substance release or a substantial threat of a hazardous
             11150      material or substance release.
             11151          (2) In addition to the governmental immunity granted in [Title 63, Chapter 30d] Title
             11152      63G, Chapter 7, Governmental Immunity Act of Utah, the state and its political subdivisions are
             11153      not liable for actions performed under this part except as a result of intentional misconduct or
             11154      gross negligence including reckless, willful, or wanton misconduct.
             11155          (3) Nothing in this part affects, limits, or modifies in any way the authority granted to
             11156      the state, any state agency, or any political subdivision under other state or federal law.
             11157          Section 238. Section 19-6-326 is amended to read:
             11158           19-6-326. Written assurances.
             11159          (1) Based upon risk to human health or the environment from potential exposure to
             11160      hazardous substances or materials, the executive director may issue enforceable written
             11161      assurances to a bona fide prospective purchaser, contiguous property owner, or innocent
             11162      landowner of real property that no enforcement action under this part may be initiated regarding
             11163      that real property against the person to whom the assurances are issued.
             11164          (2) An assurance granted under Subsection (1) grants the person to whom the
             11165      assurance is issued protection from imposition of any state law cost recovery and contribution
             11166      actions under this part.
             11167          (3) The executive director may make rules in accordance with [Title 63, Chapter 46a]
             11168      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, as necessary for the administration
             11169      of this section.
             11170          Section 239. Section 19-6-403 is amended to read:
             11171           19-6-403. Powers and duties of board.
             11172          (1) (a) The board shall regulate underground storage tanks and petroleum storage tanks
             11173      by applying the provisions of this part and by making rules for:

             11174          (i) certification of tank installers, inspectors, testers, and removers;
             11175          (ii) registration of tanks;
             11176          (iii) administration of the petroleum storage tank program;
             11177          (iv) format and required information regarding records to be kept by tank owners or
             11178      operators who are participating in the fund;
             11179          (v) voluntary participation in the fund for above ground petroleum storage tanks and
             11180      tanks exempt from regulation under 40 C.F.R., Part 280, Subpart (B), and specified in Section
             11181      19-6-415 ; and
             11182          (vi) certification of underground storage tank consultants, including requirements for
             11183      minimum education or experience, which rules shall recognize the educational background of a
             11184      professional engineer licensed under Title 58, Chapter 22, Professional Engineers and Land
             11185      Surveyors Licensing Act, as meeting the education requirements for certification, but shall
             11186      require proof of experience that meets certification requirements.
             11187          (b) The board shall make rules in accordance with [Title 63, Chapter 46a] Title 63G,
             11188      Chapter 3, Utah Administrative Rulemaking Act, adopting requirements for underground
             11189      storage tanks contained in Subtitle I of the Resource Conservation and Recovery Act, 42
             11190      U.S.C. Section 6991c, et seq., and other future applicable final federal regulations.
             11191          (2) The board shall ensure that the rules made under the authority of Subsection (1)
             11192      meet federal requirements for the state's assumption of primacy in the regulation of
             11193      underground storage tanks, as provided in Section 9004 of the Resource Conservation and
             11194      Recovery Act, 42 U.S.C. Section 6991c, et seq.
             11195          Section 240. Section 19-6-405.3 is amended to read:
             11196           19-6-405.3. Creation of Petroleum Storage Tank Loan Fund -- Purposes -- Loan
             11197      eligibility -- Loan restrictions -- Rulemaking.
             11198          (1) There is created the revolving loan fund entitled the Petroleum Storage Tank Loan
             11199      Fund.
             11200          (2) The sources of monies for the loan fund are:
             11201          (a) appropriations to the loan fund;

             11202          (b) principal and interest received from the repayment of loans made by the executive
             11203      secretary under Subsection (3); and
             11204          (c) all investment income derived from money in the fund.
             11205          (3) The executive secretary may loan, in accordance with this section, monies available
             11206      in the loan fund to persons to be used for:
             11207          (a) upgrading petroleum storage tanks and associated piping with corrosion protection,
             11208      or spill and overfill prevention equipment as necessary to meet the federal deadline required
             11209      under 40 CFR 280.21;
             11210          (b) replacing underground storage tanks; or
             11211          (c) permanently closing underground storage tanks.
             11212          (4) A person may apply to the executive secretary for a loan under Subsection (3) if all
             11213      tanks owned or operated by that person are in substantial compliance with all state and federal
             11214      requirements or will be brought into substantial compliance using money from the loan fund.
             11215          (5) The executive secretary shall consider loan applications under Subsection (4) to
             11216      meet the following objectives:
             11217          (a) support availability of gasoline in rural parts of the state;
             11218          (b) support small businesses; and
             11219          (c) reduce the threat of a petroleum release endangering the environment.
             11220          (6) Loans made under this section shall:
             11221          (a) be for no more than $45,000 for all tanks at any one facility;
             11222          (b) be for no more than $15,000 per tank;
             11223          (c) be for no more than 80% of the total cost of:
             11224          (i) upgrading a tank and associated piping to meet requirements of 40 CFR 280.21;
             11225          (ii) replacing the underground storage tank; or
             11226          (iii) permanently closing the underground storage tank;
             11227          (d) have a fixed annual interest rate of 3%;
             11228          (e) have a term no longer than ten years;
             11229          (f) be made on the condition the loan applicant obtains adequate security for the loan as

             11230      established by board rule under Subsection (7); and
             11231          (g) comply with rules made by the board under Subsection (7).
             11232          (7) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             11233      Administrative Rulemaking Act, the board shall make rules establishing:
             11234          (a) form, content, and procedure for loan applications;
             11235          (b) criteria and procedures for prioritizing loan applications;
             11236          (c) requirements and procedures for securing loans;
             11237          (d) procedures for making the loans;
             11238          (e) procedures for administering and ensuring repayment of loans, including late
             11239      payment penalties; and
             11240          (f) procedures for recovering on defaulted loans.
             11241          (8) The decisions of the executive secretary in loaning money from the loan fund and
             11242      otherwise administering the loan fund are not subject to [Title 63, Chapter 46b] Title 63G,
             11243      Chapter 4, Administrative Procedures Act.
             11244          (9) The Legislature shall appropriate monies for administration of the loan fund to the
             11245      department from the loan fund.
             11246          (10) The executive secretary may enter into agreements with public entities or private
             11247      organizations to perform any tasks associated with administration of the loan fund.
             11248          Section 241. Section 19-6-408 is amended to read:
             11249           19-6-408. Underground storage tank registration fee -- Processing fee for tanks
             11250      not in the program.
             11251          (1) The department may assess an annual underground storage tank registration fee
             11252      against owners or operators of underground storage tanks that have not been closed. These
             11253      fees shall be:
             11254          (a) billed per facility;
             11255          (b) due on July 1 annually;
             11256          (c) deposited with the department as dedicated credits;
             11257          (d) used by the department for the administration of the underground storage tank

             11258      program outlined in this part; and
             11259          (e) established under Section [ 63-38-3.2 ] 63J-1-303 .
             11260          (2) (a) In addition to the fee under Subsection (1), an owner or operator who elects to
             11261      demonstrate financial assurance through a mechanism other than the Environmental Assurance
             11262      Program shall pay a processing fee of:
             11263          (i) for fiscal year 1997-98, $1,000 for each financial assurance mechanism document
             11264      submitted to the division for review; and
             11265          (ii) on and after July 1, 1998, a processing fee established under Section [ 63-38-3.2 ]
             11266      63J-1-303 .
             11267          (b) If a combination of financial assurance mechanisms is used to demonstrate financial
             11268      assurance, the fee under Subsection (2)(a) shall be paid for each document submitted.
             11269          (c) As used in this Subsection (2), "financial assurance mechanism document" may be a
             11270      single document that covers more than one facility through a single financial assurance
             11271      mechanism.
             11272          (3) Any funds provided for administration of the underground storage tank program
             11273      under this section that are not expended at the end of the fiscal year lapse into the Petroleum
             11274      Storage Tank Restricted Account created in Section 19-6-405.5 .
             11275          (4) The executive secretary shall provide all owners or operators who pay the annual
             11276      underground storage tank registration fee a certificate of registration.
             11277          (5) (a) The executive secretary may issue a notice of agency action assessing a civil
             11278      penalty of $1,000 per facility if an owner or operator of an underground storage tank facility
             11279      fails to pay the required fee within 60 days after the July 1 due date.
             11280          (b) The registration fee and late payment penalty accrue interest at 12% per annum.
             11281          (c) If the registration fee, late payment penalty, and interest accrued under this
             11282      Subsection (5) are not paid in full within 60 days after the July 1 due date any certificate of
             11283      compliance issued prior to the July 1 due date lapses. The executive secretary may not reissue
             11284      the certificate of compliance until full payment under this Subsection (5) is made to the
             11285      department.

             11286          (d) The executive secretary may waive any penalty assessed under this Subsection (5) if
             11287      no fuel has been dispensed from the tank on or after July 1, 1991.
             11288          Section 242. Section 19-6-410.5 is amended to read:
             11289           19-6-410.5. Environmental assurance program -- Participant fee.
             11290          (1) As used in this section:
             11291          (a) "Cash balance" means cash plus investments and current accounts receivable minus
             11292      current accounts payable, excluding the liabilities estimated by the state risk manager.
             11293          (b) "Commission" means the State Tax Commission, as defined in Section 59-1-101 .
             11294          (2) (a) There is created an Environmental Assurance Program.
             11295          (b) The program shall provide to participating owners and operators, upon payment of
             11296      the fee imposed under Subsection (4), assistance with satisfying the financial responsibility
             11297      requirements of 40 CFR, Part 280, Subpart H, by providing funds from the Petroleum Storage
             11298      Tank Trust Fund established in Section 19-6-409 , subject to the terms and conditions of
             11299      Chapter 6, Part 4, Underground Storage Tank Act, and rules implemented under that part.
             11300          (3) (a) Subject to Subsection (3)(b), participation in the program is voluntary.
             11301          (b) Each owner and operator seeking to satisfy financial responsibility requirements
             11302      through the program shall use the program for all petroleum underground storage tanks that the
             11303      owner or operator owns or operates.
             11304          (4) (a) There is assessed an environmental assurance fee of 1/2 cent per gallon on the
             11305      first sale or use of petroleum products in the state.
             11306          (b) The environmental assurance fee and any other revenue collected under this section
             11307      shall be deposited in the Petroleum Storage Tank Trust Fund created in Section 19-6-409 and
             11308      used solely for the purposes listed in Section 19-6-409 .
             11309          (5) (a) The commission shall collect the environmental assurance fee and any penalties
             11310      and interest imposed under this section.
             11311          (b) By following the procedures and requirements of [Title 63, Chapter 46a] Title 63G,
             11312      Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules to establish:
             11313          (i) the method of payment of the environmental assurance fee;

             11314          (ii) the procedure for reimbursement or exemption of owners or operators who do not
             11315      participate in the program, including owners and operators of above ground storage tanks; and
             11316          (iii) the procedure for confirming with the department those owners and operators who
             11317      qualify for reimbursement or exemption under Subsection (5)(b)(ii).
             11318          (c) The commission may retain an amount not to exceed 2.5% of fees collected under
             11319      this section for the cost to it of rendering its services.
             11320          (6) (a) The person or entity responsible for payment of the fee under this section shall,
             11321      by the last day of the month following the month in which the sale occurs:
             11322          (i) complete and submit the form prescribed by the commission; and
             11323          (ii) pay the fee to the commission.
             11324          (b) (i) The penalties and interest for failure to file the form or to pay the environmental
             11325      assurance fee are the same as the penalties and interest under Sections 59-1-401 and 59-1-402 .
             11326          (ii) The commission shall deposit penalties and interest collected under this section in
             11327      the Petroleum Storage Tank Trust Fund.
             11328          (c) The commission shall report to the department any person or entity who is
             11329      delinquent in payment of the fee under this section.
             11330          (7) (a) (i) If the cash balance of the Petroleum Storage Tank Trust Fund on June 30 of
             11331      any year exceeds $20,000,000, the assessment of the environmental assurance fee as provided in
             11332      Subsection (4) is reduced to 1/4 cent per gallon beginning November 1.
             11333          (ii) The reduction shall remain in effect until modified by the Legislature in a general or
             11334      special session.
             11335          (b) The commission shall determine the cash balance of the fund each year as of June
             11336      30.
             11337          (c) Before September 1 of each year, the department shall provide the commission with
             11338      the accounts payable of the fund as of June 30.
             11339          Section 243. Section 19-6-427 is amended to read:
             11340           19-6-427. Liability of any person under other laws -- Additional state and
             11341      governmental immunity -- Exceptions.

             11342          (1) Except as provided in Subsection (2), nothing in this part affects or modifies in any
             11343      way:
             11344          (a) the obligations or liability of any person under any other provision of this part or
             11345      state or federal law, including common law, for damages, injury, or loss resulting from a release
             11346      or substantial threat of a release of petroleum from an underground storage tank or a petroleum
             11347      storage tank; or
             11348          (b) the liability of any person for costs incurred except as provided in this part.
             11349          (2) In addition to the governmental immunity granted in [Title 63, Chapter 30d] Title
             11350      63G, Chapter 7, Governmental Immunity Act of Utah, the state and its political subdivisions are
             11351      not liable for actions performed under this part except as a result of intentional misconduct or
             11352      gross negligence including reckless, willful, or wanton misconduct.
             11353          Section 244. Section 19-6-704 is amended to read:
             11354           19-6-704. Powers and duties of the board.
             11355          (1) The board shall make rules under [Title 63, Chapter 46a] Title 63G, Chapter 3,
             11356      Utah Administrative Rulemaking Act, as necessary to administer this part and to comply with
             11357      40 CFR 279, Standards for the Management of Used Oil, to ensure the state's primacy to
             11358      manage used oil under 40 CFR 279. For these purposes the board shall:
             11359          (a) conduct adjudicative hearings as required in this part under [Title 63, Chapter 46b]
             11360      Title 63G, Chapter 4, Administrative Procedures Act;
             11361          (b) establish by rule conditions and procedures for registration and revocation of
             11362      registration as a used oil collection center, used oil aggregation point, or DIYer used oil
             11363      collection center;
             11364          (c) provide by rule that used oil aggregation points that do not accept DIYer used oil
             11365      are required to comply with used oil collection standards under this part, but are not required to
             11366      be permitted or registered;
             11367          (d) establish by rule conditions and fees required to obtain permits and operate as used
             11368      oil transporters, used oil transfer facilities, used oil processors and rerefiners, and used oil fuel
             11369      marketers;

             11370          (e) establish by rule the amount of liability insurance or other financial responsibility the
             11371      applicant shall have to qualify for a permit under Subsection (1)(d);
             11372          (f) establish by rule the form and amount of reclamation surety required for reclamation
             11373      of any site or facility required to be permitted under this part;
             11374          (g) after public notice and opportunity for a public hearing, hear and act on permit
             11375      issues appealed under Subsection 19-6-712 (2);
             11376          (h) establish by rule standards for tracking, analysis, and recordkeeping regarding used
             11377      oil subject to regulation under this part, including:
             11378          (i) manifests for handling and transferring used oil;
             11379          (ii) analyses necessary to determine if used oil is on-specification or off-specification;
             11380          (iii) records documenting date, quantities, and character of used oil transported,
             11381      processed, transferred, or sold;
             11382          (iv) records documenting persons between whom transactions under this subsection
             11383      occurred; and
             11384          (v) exemption of DIYer used oil collection centers from this subsection except as
             11385      necessary to verify volumes of used oil picked up by a permitted transporter and the
             11386      transporter's name and federal EPA identification number;
             11387          (i) authorize inspections and audits of facilities, centers, and operations subject to
             11388      regulation under this part;
             11389          (j) establish by rule standards for:
             11390          (i) used oil generators;
             11391          (ii) used oil collection centers;
             11392          (iii) DIYer used oil collection centers;
             11393          (iv) aggregation points;
             11394          (v) curbside used oil collection programs;
             11395          (vi) used oil transporters;
             11396          (vii) used oil transfer facilities;
             11397          (viii) used oil burners;

             11398          (ix) used oil processors and rerefiners; and
             11399          (x) used oil marketers;
             11400          (k) establish by rule standards for determining on-specification and off-specification
             11401      used oil and specified mixtures of used oil, subject to Section 19-6-707 regarding rebuttable
             11402      presumptions;
             11403          (l) establish by rule standards for closure, remediation, and response to releases
             11404      involving used oil; and
             11405          (m) establish a public education program to promote used oil recycling and use of used
             11406      oil collection centers.
             11407          (2) The board may:
             11408          (a) hold hearings relating to any aspect of or matter in the administration of this part
             11409      and compel the attendance of witnesses and the production of documents and other evidence,
             11410      administer oaths and take testimony, and receive evidence as necessary;
             11411          (b) require retention and submission of records required under this part; and
             11412          (c) require audits of records and recordkeeping procedures required under this part and
             11413      rules made under this part, except that audits of records regarding the fee imposed and collected
             11414      by the commission under Sections 19-6-714 and 19-6-715 are the responsibility of the
             11415      commission under Section 19-6-716 .
             11416          Section 245. Section 19-6-721 is amended to read:
             11417           19-6-721. Violations -- Proceedings -- Orders.
             11418          (1) A person who violates any provision of this part or any order, permit, rule, or other
             11419      requirement issued or adopted under this part is subject in a civil proceeding to a penalty of not
             11420      more than $10,000 per day for each day of violation, in addition to any fine otherwise imposed
             11421      for violation of this part.
             11422          (2) (a) The board may bring suit in the name of the state to restrain the person from
             11423      continuing the violation and to require the person to perform necessary remediation.
             11424          (b) Suit under Subsection (2)(a) may be brought in any court in the state having
             11425      jurisdiction in the county of residence of the person charged or in the county where the violation

             11426      is alleged to have occurred.
             11427          (c) The court may grant prohibitory and mandatory injunctions, including temporary
             11428      restraining orders.
             11429          (3) When the executive secretary finds a situation exists in violation of this part that
             11430      presents an immediate threat to the public health or welfare, the executive secretary may issue
             11431      an emergency order under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             11432      Procedures Act.
             11433          (4) All penalties collected under this section shall be deposited in the account created in
             11434      Section 19-6-719 .
             11435          Section 246. Section 19-6-803 is amended to read:
             11436           19-6-803. Definitions.
             11437          As used in this part:
             11438          (1) "Abandoned waste tire pile" means a waste tire pile regarding which the local
             11439      department of health has not been able to:
             11440          (a) locate the persons responsible for the tire pile; or
             11441          (b) cause the persons responsible for the tire pile to remove it.
             11442          (2) (a) "Beneficial use" means the use of chipped tires in a manner that is not recycling,
             11443      storage, or disposal, but that serves as a replacement for another product or material for specific
             11444      purposes.
             11445          (b) "Beneficial use" includes the use of chipped tires:
             11446          (i) as daily landfill cover;
             11447          (ii) for civil engineering purposes;
             11448          (iii) as low-density, light-weight aggregate fill; or
             11449          (iv) for septic or drain field construction.
             11450          (c) "Beneficial use" does not include the use of waste tires or material derived from
             11451      waste tires:
             11452          (i) in the construction of fences; or
             11453          (ii) as fill, other than low-density, light-weight aggregate fill.

             11454          (3) "Board" means the Solid and Hazardous Waste Control Board created under
             11455      Section 19-1-106 .
             11456          (4) "Chip" or "chipped tire" means a two inch square or smaller piece of a waste tire.
             11457          (5) "Commission" means the Utah State Tax Commission.
             11458          (6) (a) "Consumer" means a person who purchases a new tire to satisfy a direct need,
             11459      rather than for resale.
             11460          (b) "Consumer" includes a person who purchases a new tire for a motor vehicle to be
             11461      rented or leased.
             11462          (7) "Crumb rubber" means waste tires that have been ground, shredded, or otherwise
             11463      reduced in size such that the particles are less than or equal to 3/8 inch in diameter and are 98%
             11464      wire free by weight.
             11465          (8) "Disposal" means the deposit, dumping, or permanent placement of any waste tire in
             11466      or on any land or in any water in the state.
             11467          (9) "Dispose of" means to deposit, dump, or permanently place any waste tire in or on
             11468      any land or in any water in the state.
             11469          (10) "Division" means the Division of Solid and Hazardous Waste created in Section
             11470      19-1-105 , within the Department of Environmental Quality.
             11471          (11) "Executive secretary" means the executive secretary of the Solid and Hazardous
             11472      Waste Control Board created in Section 19-1-106 .
             11473          (12) "Fund" means the Waste Tire Recycling Fund created in Section 19-6-807 .
             11474          (13) "Landfill waste tire pile" means a waste tire pile:
             11475          (a) located within the permitted boundary of a landfill operated by a governmental
             11476      entity; and
             11477          (b) consisting solely of waste tires brought to a landfill for disposal and diverted from
             11478      the landfill waste stream to the waste tire pile.
             11479          (14) "Local health department" means the local health department, as defined in Section
             11480      26A-1-102 , with jurisdiction over the recycler.
             11481          (15) "Materials derived from waste tires" means tire sections, tire chips, tire shreddings,

             11482      rubber, steel, fabric, or other similar materials derived from waste tires.
             11483          (16) "Mobile facility" means a mobile facility capable of cutting waste tires on site so
             11484      the waste tires may be effectively disposed of by burial, such as in a landfill.
             11485          (17) "New motor vehicle" means a motor vehicle which has never been titled or
             11486      registered.
             11487          (18) "Passenger tire equivalent" means a measure of mixed sizes of tires where each 25
             11488      pounds of whole tires or material derived from waste tires is equal to one waste tire.
             11489          (19) "Proceeds of the fee" means the money collected by the commission from payment
             11490      of the recycling fee including interest and penalties on delinquent payments.
             11491          (20) "Recycler" means a person who:
             11492          (a) annually uses, or can reasonably be expected within the next year to use, a minimum
             11493      of 100,000 waste tires generated in the state or 1,000 tons of waste tires generated in the state
             11494      to recover energy or produce energy, crumb rubber, chipped tires, or an ultimate product; and
             11495          (b) is registered as a recycler in accordance with Section 19-6-806 .
             11496          (21) "Recycling fee" means the fee provided for in Section 19-6-805 .
             11497          (22) "Shredded waste tires" means waste tires or material derived from waste tires that
             11498      has been reduced to a six inch square or smaller.
             11499          (23) (a) "Storage" means the placement of waste tires in a manner that does not
             11500      constitute disposal of the waste tires.
             11501          (b) "Storage" does not include:
             11502          (i) the use of waste tires as ballast to maintain covers on agricultural materials or to
             11503      maintain covers at a construction site; or
             11504          (ii) the storage for five or fewer days of waste tires or material derived from waste tires
             11505      that are to be recycled or applied to a beneficial use.
             11506          (24) (a) "Store" means to place waste tires in a manner that does not constitute disposal
             11507      of the waste tires.
             11508          (b) "Store" does not include:
             11509          (i) to use waste tires as ballast to maintain covers on agricultural materials or to

             11510      maintain covers at a construction site; or
             11511          (ii) to store for five or fewer days waste tires or material derived from waste tires that
             11512      are to be recycled or applied to a beneficial use.
             11513          (25) "Tire" means a pneumatic rubber covering designed to encircle the wheel of a
             11514      vehicle in which a person or property is or may be transported or drawn upon a highway.
             11515          (26) "Tire retailer" means any person engaged in the business of selling new tires either
             11516      as replacement tires or as part of a new vehicle sale.
             11517          (27) (a) "Ultimate product" means a product that has as a component materials derived
             11518      from waste tires and that the executive secretary finds has a demonstrated market.
             11519          (b) "Ultimate product" includes pyrolized materials derived from:
             11520          (i) waste tires; or
             11521          (ii) chipped tires.
             11522          (c) "Ultimate product" does not include a product regarding which a waste tire remains
             11523      after the product is disposed of or disassembled.
             11524          (28) "Waste tire" means a tire that is no longer suitable for its original intended purpose
             11525      because of wear, damage, or defect.
             11526          (29) "Waste tire pile" means a pile of 1,000 or more waste tires at one location.
             11527          (30) (a) "Waste tire transporter" means a person or entity engaged in picking up or
             11528      transporting at one time more than ten whole waste tires, or the equivalent amount of material
             11529      derived from waste tires, generated in Utah for the purpose of storage, processing, or disposal.
             11530          (b) "Waste tire transporter" includes any person engaged in the business of collecting,
             11531      hauling, or transporting waste tires or who performs these functions for another person, except
             11532      as provided in Subsection (30)(c).
             11533          (c) "Waste tire transporter" does not include:
             11534          (i) a person transporting waste tires generated solely by:
             11535          (A) that person's personal vehicles;
             11536          (B) a commercial vehicle fleet owned or operated by that person or that person's
             11537      employer;

             11538          (C) vehicles sold, leased, or purchased by a motor vehicle dealership owned or operated
             11539      by that person or that person's employer; or
             11540          (D) a retail tire business owned or operated by that person or that person's employer;
             11541          (ii) a solid waste collector operating under a license issued by a unit of local
             11542      government as defined in Section [ 63-51-2 ] 63M-5-103 , or a local health department;
             11543          (iii) a recycler of waste tires;
             11544          (iv) a person transporting tires by rail as a common carrier subject to federal regulation;
             11545      or
             11546          (v) a person transporting processed or chipped tires.
             11547          Section 247. Section 19-6-806 is amended to read:
             11548           19-6-806. Registration of waste tire transporters and recyclers.
             11549          (1) (a) The executive secretary shall register each applicant for registration to act as a
             11550      waste tire transporter if the applicant meets the requirements of this section.
             11551          (b) An applicant for registration as a waste tire transporter shall:
             11552          (i) submit an application in a form prescribed by the executive secretary;
             11553          (ii) pay a fee as determined by the board under Section [ 63-38-3.2 ] 63J-1-303 ;
             11554          (iii) provide the name and business address of the operator;
             11555          (iv) provide proof of liability insurance or other form of financial responsibility in an
             11556      amount determined by board rule, but not more than $300,000, for any liability the waste tire
             11557      transporter may incur in transporting waste tires; and
             11558          (v) meet requirements established by board rule.
             11559          (c) The holder of a registration under this section shall advise the executive secretary in
             11560      writing of any changes in application information provided to the executive secretary within 20
             11561      days of the change.
             11562          (d) If the executive secretary has reason to believe a waste tire transporter has disposed
             11563      of tires other than as allowed under this part, the executive secretary shall conduct an
             11564      investigation and, after complying with the procedural requirements of [Title 63, Chapter 46b]
             11565      Title 63G, Chapter 4, Administrative Procedures Act, may revoke the registration.

             11566          (2) (a) The executive secretary shall register each applicant for registration to act as a
             11567      waste tire recycler if the applicant meets the requirements of this section.
             11568          (b) An applicant for registration as a waste tire recycler shall:
             11569          (i) submit an application in a form prescribed by the executive secretary;
             11570          (ii) pay a fee as determined by the board under Section [ 63-38-3.2 ] 63J-1-303 ;
             11571          (iii) provide the name and business address of the operator of the recycling business;
             11572          (iv) provide proof of liability insurance or other form of financial responsibility in an
             11573      amount determined by board rule, but not more than $300,000, for any liability the waste tire
             11574      recycler may incur in storing and recycling waste tires;
             11575          (v) engage in activities as described under the definition of recycler in Section 19-6-803 ;
             11576      and
             11577          (vi) meet requirements established by board rule.
             11578          (c) The holder of a registration under this section shall advise the executive secretary in
             11579      writing of any changes in application information provided to the executive secretary within 20
             11580      days of the change.
             11581          (d) If the executive secretary has reason to believe a waste tire recycler has falsified any
             11582      information provided in an application for partial reimbursement under this section, the
             11583      executive secretary shall, after complying with the procedural requirements of [Title 63, Chapter
             11584      46b] Title 63G, Chapter 4, Administrative Procedures Act, revoke the registration.
             11585          (3) The board shall establish a uniform fee for registration which shall be imposed by
             11586      any unit of local government or local health department that requires a registration fee as part of
             11587      the registration of waste tire transporters or waste tire recyclers.
             11588          Section 248. Section 19-6-818 is amended to read:
             11589           19-6-818. Local health department rules.
             11590          (1) In accordance with Section 26A-1-121 , the local health department shall make
             11591      regulations to:
             11592          (a) develop an application form; and
             11593          (b) establish the procedure to apply for reimbursement.

             11594          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             11595      Administrative Rulemaking Act, the commission shall make rules to implement this part.
             11596          (3) The local health departments shall take into consideration the removal schedule of
             11597      tire transporters or recyclers in a geographical area when making regulations governing the
             11598      storage of waste tires at any business that generates waste tires, pending removal of those waste
             11599      tires for recycling.
             11600          Section 249. Section 19-6-819 is amended to read:
             11601           19-6-819. Powers and duties of the board.
             11602          (1) The board shall make rules under [Title 63, Chapter 46a] Title 63G, Chapter 3,
             11603      Utah Administrative Rulemaking Act, as necessary to administer this part. For these purposes
             11604      the board shall establish by rule:
             11605          (a) conditions and procedures for acting to issue or revoke a registration as a waste tire
             11606      recycler or transporter under Section 19-6-806 ;
             11607          (b) the amount of liability insurance or other financial responsibility the applicant is
             11608      required to have to qualify for registration under Section 19-6-806 , which amount may not be
             11609      more than $300,000 for any liability the waste tire transporter or recycler may incur in recycling
             11610      or transporting waste tires;
             11611          (c) the form and amount of financial assurance required for a site or facility used to
             11612      store waste tires, which amount shall be sufficient to ensure the cleanup or removal of waste
             11613      tires from that site or facility;
             11614          (d) standards and required documentation for tracking and record keeping of waste
             11615      tires subject to regulation under this part, including:
             11616          (i) manifests for handling and transferring waste tires;
             11617          (ii) records documenting date, quantities, and size or type of waste tires transported,
             11618      processed, transferred, or sold;
             11619          (iii) records documenting persons between whom transactions under this Subsection
             11620      (1)(d) occurred and the amounts of waste tires involved in those transactions; and
             11621          (iv) requiring that documentation under this Subsection (1)(d) be submitted on a

             11622      quarterly basis, and that this documentation be made available for public inspection;
             11623          (e) authorize inspections and audits of waste tire recycling, transportation, or storage
             11624      facilities and operations subject to this part;
             11625          (f) standards for payments authorized under Sections 19-6-809 , 19-6-810 , 19-6-811 ,
             11626      and 19-6-812 ;
             11627          (g) regarding applications to the executive secretary for reimbursements under Section
             11628      19-6-811 , the content of the reimbursement application form and the procedure to apply for
             11629      reimbursement;
             11630          (h) requirements for the storage of waste tires, including permits for storage;
             11631          (i) the types of energy recovery or other appropriate environmentally compatible uses
             11632      eligible for reimbursement, which:
             11633          (i) shall include pyrolization, but not retreading; and
             11634          (ii) shall apply to all waste tire recycling and beneficial use reimbursements within the
             11635      state;
             11636          (j) the applications of waste tires that are not eligible for reimbursement;
             11637          (k) the applications of waste tires that are considered to be the storage or disposal of
             11638      waste tires; and
             11639          (l) provisions governing the storage or disposal of waste tires, including the process for
             11640      issuing permits for waste tire storage sites.
             11641          (2) The board may:
             11642          (a) require retention and submission of the records required under this part;
             11643          (b) require audits of the records and record keeping procedures required under this part
             11644      and rules made under this part, except that audits of records regarding the fee imposed and
             11645      collected by the commission under Sections 19-6-805 and 19-6-808 are the responsibility of the
             11646      commission; and
             11647          (c) as necessary, make rules requiring additional information as the board determines
             11648      necessary to effectively administer Section 19-6-812 , which rules may not place an undue
             11649      burden on the operation of landfills.

             11650          Section 250. Section 19-6-821 is amended to read:
             11651           19-6-821. Violations -- Civil proceedings and penalties -- Orders.
             11652          (1) A person who violates any provision of this part or any order, permit, plan approval,
             11653      or rule issued or adopted under this part is subject to a civil penalty of not more than $10,000
             11654      per day for each day of violation as determined in a civil hearing under [Title 63, Chapter 46b]
             11655      Title 63G, Chapter 4, Administrative Procedures Act, except:
             11656          (a) any violation of Subsection 19-6-804 (1) or (3), regarding landfills, is subject to the
             11657      penalty under Subsection 19-6-804 (4) rather than the penalties under this section; and
             11658          (b) any violation of Subsection 19-6-808 (1), (2), or (3) regarding payment of the
             11659      recycling fee by the tire retailer is subject to penalties as provided in Subsection 19-6-808 (4)
             11660      rather than the penalties under this section.
             11661          (2) The board may bring an action in the name of the state to restrain a person from
             11662      continuing a violation of this part and to require the person to perform necessary remediation
             11663      regarding a violation of this part.
             11664          (3) When the executive secretary finds a situation exists in violation of this part that
             11665      presents an immediate threat to the public health or welfare, the executive secretary may issue
             11666      an emergency order under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             11667      Procedures Act.
             11668          (4) The executive secretary may revoke the registration of a waste tire recycler or
             11669      transporter who violates any provision of this part or any order, plan approval, permit, or rule
             11670      issued or adopted under this part.
             11671          (5) The executive secretary may revoke the tire storage permit for a storage facility that
             11672      is in violation of any provision of this part or any order, plan approval, permit, or rule issued or
             11673      adopted under this part.
             11674          (6) If a person has been convicted of violating a provision of this part prior to a finding
             11675      by the executive secretary of a violation of the same provision in an administrative hearing, the
             11676      executive secretary may not assess a civil monetary penalty under this section for the same
             11677      offense for which the conviction was obtained.

             11678          (7) All penalties collected under this section shall be deposited in the fund.
             11679          Section 251. Section 19-6-906 is amended to read:
             11680           19-6-906. Decontamination standards -- Specialist certification standards --
             11681      Rulemaking.
             11682          (1) The Department of Health shall make rules under [Title 63, Chapter 46a] Title 63G,
             11683      Chapter 3, Utah Administrative Rulemaking Act, in consultation with the local health
             11684      departments and the Department of Environmental Quality, to establish:
             11685          (a) decontamination and sampling standards and best management practices for the
             11686      inspection and decontamination of property and the disposal of contaminated debris under this
             11687      part;
             11688          (b) appropriate methods for the testing of buildings and interior surfaces, and
             11689      furnishings, soil, and septic tanks for contamination; and
             11690          (c) when testing for contamination may be required.
             11691          (2) The Department of Environmental Quality Solid and Hazardous Waste Control
             11692      Board shall make rules under [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             11693      Rulemaking Act, in consultation with the Department of Health and local health departments, to
             11694      establish within the Department of Environmental Quality Division of Environmental Response
             11695      and Remediation:
             11696          (a) certification standards for any private person, firm, or entity involved in the
             11697      decontamination of contaminated property; and
             11698          (b) a process for revoking the certification of a decontamination specialist who fails to
             11699      maintain the certification standards.
             11700          (3) All rules made under this part shall be consistent with other state and federal
             11701      requirements.
             11702          (4) The board has authority to enforce the provisions under Subsection (2).
             11703          Section 252. Section 19-6-1003 is amended to read:
             11704           19-6-1003. Board and executive secretary powers.
             11705          (1) By following the procedures and requirements of [Title 63, Chapter 46a] Title 63G,

             11706      Chapter 3, Utah Administrative Rulemaking Act, the board shall make rules:
             11707          (a) governing administrative proceedings under this part;
             11708          (b) specifying the terms and conditions under which the executive secretary shall
             11709      approve, disapprove, revoke, or review a plan submitted by a manufacturer; and
             11710          (c) governing reports and educational materials required by this part.
             11711          (2) These rules shall include:
             11712          (a) time requirements for plan submission, review, approval, and implementation;
             11713          (b) a public notice and comment period for a proposed plan; and
             11714          (c) safety standards for the collection, packaging, transportation, storage, recycling, and
             11715      disposal of mercury switches.
             11716          (3) The board may request the attorney general to bring an action for injunctive relief
             11717      and enforcement of this part, including, without limitation, imposition of the penalty provided in
             11718      Section 19-6-1006 .
             11719          (4) As authorized by the board, the executive secretary may:
             11720          (a) review and approve or disapprove plans, specifications, or other data related to
             11721      mercury switch removal;
             11722          (b) enforce a rule by issuing a notice, an order, or both, which may be subsequently
             11723      amended or revoked by the board; and
             11724          (c) initiate an administrative action to compel compliance with this part and any rules
             11725      adopted under this part.
             11726          (5) The executive secretary shall establish a fee to cover the costs of a plan's review by
             11727      following the procedures and requirements of Section [ 63-38-3.2 ] 63J-1-303 .
             11728          Section 253. Section 19-7-103 is amended to read:
             11729           19-7-103. Definitions.
             11730          As used in this chapter:
             11731          (1) "Administrative proceeding" means an adjudicatory proceeding conducted by the
             11732      department or other government entity with authority to enforce any environmental law,
             11733      including any notice of violation proceeding, any department proceeding listed in Section

             11734      19-1-305 , or any proceeding conducted pursuant to [Title 63, Chapter 46b] Title 63G, Chapter
             11735      4, Administrative Procedures Act.
             11736          (2) "Environmental audit report" means any document, information, report, finding,
             11737      communication, note, drawing, graph, chart, photograph, survey, suggestion, or opinion,
             11738      whether in preliminary, draft, or final form, prepared as the result of or in response to an
             11739      environmental self-evaluation.
             11740          (3) "Environmental law" means any requirement contained in this title, or in rules made
             11741      under this title, or in any rules, orders, permits, licenses, or closure plans issued or approved by
             11742      the department, or in any other provision or ordinance addressing protection of the
             11743      environment.
             11744          (4) "Environmental self-evaluation" means a self-initiated assessment, audit, or review,
             11745      not otherwise expressly required by an environmental law, that is performed to determine
             11746      whether a person is in compliance with environmental laws. A person may perform an
             11747      environmental self-evaluation through the use of employees or the use of outside consultants.
             11748          Section 254. Section 19-7-104 is amended to read:
             11749           19-7-104. Unlawful disclosure -- Environmental audit report.
             11750          (1) Information that is divulged, disseminated, or otherwise disclosed in violation of
             11751      Utah Rules of Evidence, Rule 508, may not be admitted as evidence in an administrative or
             11752      judicial proceeding.
             11753          (2) If any person, including a department employee or a presiding hearing officer,
             11754      divulges or disseminates any part of the information contained in an environmental audit report
             11755      and that report is privileged under Utah Rules of Evidence, Rule 508, the privilege is not waived
             11756      except as provided under Utah Rules of Evidence, Rule 508(d)(1).
             11757          (3) An environmental audit report obtained pursuant to an in camera review is a
             11758      protected record for purposes of [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             11759      Records Access and Management Act, and a department employee or attorney representing the
             11760      department may not disclose the report except in accordance with the provisions of [Title 63,
             11761      Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act.

             11762          Section 255. Section 19-8-112 is amended to read:
             11763           19-8-112. Denial of certificate of completion -- Appeal.
             11764          (1) If the executive director determines the applicant has not successfully completed a
             11765      voluntary cleanup in accordance with an agreement entered into under this chapter, the
             11766      executive director shall:
             11767          (a) notify the applicant and the current owner of the property that is the subject of the
             11768      agreement of the denial of a certificate of completion; and
             11769          (b) provide to the applicant a list in writing of the reasons for the denial.
             11770          (2) The applicant may appeal the determination of the executive director as provided in
             11771      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             11772          Section 256. Section 19-8-117 is amended to read:
             11773           19-8-117. Program report and budget allocations -- Fee schedule.
             11774          (1) (a) For applications submitted on or after May 5, 1997 through June 30, 1998, the
             11775      application fee under this chapter is $2,000.
             11776          (b) Regarding applications submitted on and after July 1, 1998, the executive director
             11777      shall annually calculate the costs to administer the voluntary cleanup program under this chapter
             11778      and shall establish the fees for the program under Section [ 63-38-3.2 ] 63J-1-303 .
             11779          (2) All fees under Subsection (1) shall be deposited in the account created under
             11780      Section 19-8-103 .
             11781          Section 257. Section 19-8-120 is amended to read:
             11782           19-8-120. Creation of Brownfields Fund -- Purposes -- Loan and grant eligibility
             11783      -- Loan restrictions -- Rulemaking.
             11784          (1) As used in this section, "brownfield" has the same meaning as in 42 U.S.C. Sec.
             11785      9601(39).
             11786          (2) There is created an enterprise fund known as the Brownfields Fund.
             11787          (3) The fund is created to enable the state to use federal funding as available to provide
             11788      capital for a revolving loan fund and to provide funds for grants to carry out cleanup activities
             11789      at brownfield sites.

             11790          (4) The sources of fund monies are:
             11791          (a) federal grant monies;
             11792          (b) principal and interest received from the repayment of loans made under this section;
             11793      and
             11794          (c) all investment income derived from fund monies.
             11795          (5) The executive director may make loans and grants in accordance with this section
             11796      from the fund to applicants who meet the criteria under the terms of the federal grant monies in
             11797      the fund.
             11798          (6) The executive director shall consider loan and grant applications under Subsection
             11799      (5) to determine whether the application meets the objectives established by the federal grant.
             11800          (7) Loans made under this section shall:
             11801          (a) be for no greater amount than allowed by the federal grant;
             11802          (b) have a fixed annual interest rate as allowed by the federal grant;
             11803          (c) have a term as allowed by the federal grant;
             11804          (d) be made on the condition the loan applicant obtains adequate security for the loan as
             11805      established by administrative rules made under Subsection (9); and
             11806          (e) comply with administrative rules made under Subsection (9).
             11807          (8) Grants made under this section shall:
             11808          (a) be for no greater amount than allowed by the federal grant; and
             11809          (b) comply with administrative rules made under Subsection (9).
             11810          (9) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             11811      Administrative Rulemaking Act, the executive director shall make rules establishing:
             11812          (a) form, content, and procedure for loan and grant applications;
             11813          (b) criteria and procedures for prioritizing loan and grant applications;
             11814          (c) requirements and procedures for securing loans and grants;
             11815          (d) procedures for making the loans;
             11816          (e) procedures for administering and ensuring repayment of loans, including late
             11817      payment penalties; and

             11818          (f) procedures for recovering on defaulted loans.
             11819          (10) The decisions of the executive director in loaning money from the fund, making
             11820      grants, and otherwise administering the fund are not subject to [Title 63, Chapter 46b] Title
             11821      63G, Chapter 4, Administrative Procedures Act.
             11822          (11) Funding for the cost of administration of the fund shall be consistent with the terms
             11823      of the federal grant.
             11824          (12) The executive director may enter into agreements with public entities or private
             11825      funding organizations to perform any task associated with administration of the fund.
             11826          Section 258. Section 19-9-105 is amended to read:
             11827           19-9-105. Powers of authority.
             11828          The authority is a body corporate and politic that may:
             11829          (1) sue and be sued in its own name;
             11830          (2) have a seal and alter the seal at will;
             11831          (3) borrow money and issue obligations, including refunding obligations, and provide
             11832      for the rights of holders of those obligations;
             11833          (4) establish hazardous waste treatment, disposal, or storage surcharge schedules for
             11834      facilities operated by, or under authority of, the authority, and require all private facility
             11835      operators who contract with the authority to collect fees for all hazardous waste received for
             11836      treatment, disposal, or storage by those private facilities;
             11837          (5) promulgate rules pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             11838      Administrative Rulemaking Act, governing the exercise of its powers and fulfillment of its
             11839      purposes;
             11840          (6) enter into contracts and leases and execute all instruments necessary, convenient, or
             11841      desirable;
             11842          (7) acquire, purchase, hold, lease, use, or dispose of any property or any interest in
             11843      property that is necessary, convenient, or desirable to carry out the purposes of this chapter, and
             11844      sell, lease, transfer, and dispose of any property or interest in property at any time required in
             11845      the exercise of its power, including, but not limited to, the sale, transfer, or disposal of any

             11846      materials, substances, or sources or forms of energy derived from any activity engaged in by the
             11847      authority;
             11848          (8) contract with experts, advisers, consultants, and agents for needed services;
             11849          (9) appoint officers and employees required for the performance of its duties, and fix
             11850      and determine their qualifications and duties;
             11851          (10) make, or contract for, plans, surveys, and studies necessary, convenient, or
             11852      desirable to effectuate its purposes and powers and prepare any recommendations with respect
             11853      to those plans, surveys, or studies;
             11854          (11) receive and accept aid or contributions from any source, including the United
             11855      States or the state, in the form of money, property, labor, or other things of value to be held,
             11856      used, and applied to carry out the purposes of this chapter, subject to the conditions imposed
             11857      upon that aid or contributions consistent with this chapter;
             11858          (12) enter into agreements with any department, agency, or instrumentality of the
             11859      United States or this state, or any financial institution, or contractor for the purpose of leasing
             11860      and operating any facility;
             11861          (13) consent to the modification of any obligation with the holder of that obligation, to
             11862      the extent permitted by the obligation, relating to rates of interest or to the time and payment of
             11863      any installment of principal or interest, or to the modification of any other contract, mortgage,
             11864      mortgage loan, mortgage loan commitment, or agreement of any kind to which it is a party;
             11865          (14) pledge revenues from any hazardous waste treatment, disposal, and storage facility
             11866      to secure payment of any obligations relating to that facility, including interest on, and
             11867      redemption of, those obligations;
             11868          (15) execute or cause to be executed, mortgages, trust deeds, indentures, pledge
             11869      agreements, assignments, security agreements, and financing statements that encumber property
             11870      acquired, constructed, reconstructed, renovated, or repaired with the proceeds from the sale of
             11871      such obligations;
             11872          (16) exercise the power of eminent domain;
             11873          (17) do all other things necessary to comply with the requirements of 42 U.S.C.

             11874      Sections 6901-6986, the Resource Conservation and Recovery Act of 1976, and this part;
             11875          (18) contract for the construction, operation, and maintenance of hazardous waste
             11876      treatment, storage, and disposal facilities, including plants, works, instrumentalities, or parts
             11877      thereof, for the collection, conveyance, treatment, exchange, storage, and disposal of hazardous
             11878      waste, subject to approval by the board; and
             11879          (19) exercise any other powers or duties necessary or appropriate to carry out and
             11880      effectuate this chapter.
             11881          Section 259. Section 19-10-108 is amended to read:
             11882           19-10-108. Appeals of institutional control decisions.
             11883          Any determination by the executive director under this chapter may be appealed as
             11884      provided in [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             11885          Section 260. Section 19-11-101 , which is renumbered from Section 63-41-1 is
             11886      renumbered and amended to read:
             11887     
CHAPTER 11. WESTERN INTERSTATE NUCLEAR COMPACT

             11888     
Part 1. General Provisions

             11889           [63-41-1].     19-11-101. Title.
             11890          This [act shall be known and may be cited] chapter is known as the "Western Interstate
             11891      Nuclear Compact."
             11892          Section 261. Section 19-11-102 , which is renumbered from Section 63-41-2 is
             11893      renumbered and amended to read:
             11894           [63-41-2].     19-11-102. Definitions.
             11895          As used in this act:
             11896          (1) The words "the compact" or "this compact" mean the Western Interstate Nuclear
             11897      Compact.
             11898          (2) The words "the board" mean the Western Interstate Nuclear Board.
             11899          Section 262. Section 19-11-201 , which is renumbered from Section 63-41-3 is
             11900      renumbered and amended to read:
             11901     
Part 2. Compact

             11902           [63-41-3].     19-11-201. Text of compact.
             11903          The Western Interstate Nuclear Compact is hereby enacted into law in the state of Utah
             11904      and entered into with all other states legally joining therein, in the form substantially as follows:
             11905     
ARTICLE I. POLICY AND PURPOSE

             11906          The party states recognize that the proper employment of scientific and technological
             11907      discoveries and advances in nuclear and related fields and direct and collateral application and
             11908      adaptation of processes and techniques developed in connection therewith, properly correlated
             11909      with the other resources of the region, can assist substantially in the industrial progress of the
             11910      West and the further development of the economy of the region. They also recognize that
             11911      optimum benefit from nuclear and related scientific or technological resources, facilities and
             11912      skills requires systematic encouragement, guidance, assistance, and promotion from the party
             11913      states on a co-operative basis. It is the policy of the party states to undertake such co-operation
             11914      on a continuing basis. It is the purpose of this compact to provide the instruments and
             11915      framework for such a co-operative effort in nuclear and related fields, to enhance the economy
             11916      of the West and contribute to the individual and community well-being and the region's people.
             11917     
ARTICLE II. THE BOARD

             11918          (a) There is hereby created an agency of the party states to be known as the Western
             11919      Interstate Nuclear Board. The board shall be composed of one member from each party state
             11920      designated or appointed in accordance with the law of the state which [he] the member
             11921      represents and serving and subject to removal in accordance with such law. Any member of the
             11922      board may provide for the discharge of [his] the member's duties and the performance of [his]
             11923      the member's functions thereon (either for the duration of [his] the member's membership or for
             11924      any lesser period of time) by a deputy or assistant, if the laws of [his] the member's state make
             11925      specific provisions therefor. The federal government may be represented without vote if
             11926      provision is made by federal law for such representation.
             11927          (b) The board members of the party states shall each be entitled to one vote on the
             11928      board. No action of the board shall be binding unless taken at a meeting at which a majority of
             11929      all members representing the party states are present and unless a majority of the total number

             11930      of votes on the board are cast in favor thereof.
             11931          (c) The board shall have a seal.
             11932          (d) The board shall elect annually, from among its members, a chairman, a
             11933      vice-chairman, and treasurer. The board shall appoint and fix the compensation of an executive
             11934      director who shall serve at its pleasure and who shall also act as secretary, and who, together
             11935      with the treasurer, and such other personnel as the board may direct, shall be bonded in such
             11936      amounts as the board may require.
             11937          (e) The executive director, with the approval of the board, shall appoint and remove or
             11938      discharge such personnel as may be necessary for the performance of the board's functions
             11939      irrespective of the civil service, personnel or other merit system laws of any of the party states.
             11940          (f) The board may establish and maintain, independently or in conjunction with any one
             11941      or more of the party states, or its institutions or subdivisions, a suitable retirement system for its
             11942      full-time employees. Employees of the board shall be eligible for social security coverage in
             11943      respect of old age and survivors insurance provided that the board takes such steps as may be
             11944      necessary pursuant to federal law to participate in such program of insurance as a governmental
             11945      agency or unit. The board may establish and maintain or participate in such additional programs
             11946      of employee benefits as may be appropriate.
             11947          (g) The board may borrow, accept, or contract for the services of personnel from any
             11948      state or the United States or any subdivision or agency thereof, from any interstate agency, or
             11949      from any institution, person, firm or corporation.
             11950          (h) The board may accept for any of its purposes and functions under this compact any
             11951      and all donations, and grants of money, equipment, supplies, materials and services (conditional
             11952      or otherwise) from any state or the United States or any subdivision or agency thereof, or
             11953      interstate agency, or from any institution, person, firm, or corporation, and may receive, utilize,
             11954      and dispose of the same. The nature, amount and conditions, if any, attendant upon any
             11955      donation or grant accepted pursuant to this paragraph or upon any borrowing pursuant to
             11956      paragraph (g) of this Article, together with the identity of the donor, grantor or lender, shall be
             11957      detailed in the annual report of the board.

             11958          (i) The board may establish and maintain such facilities as may be necessary for the
             11959      transacting of its business. The board may acquire, hold, and convey real and personal property
             11960      and any interest therein.
             11961          (j) The board shall adopt bylaws, rules, and regulations for the conduct of its business,
             11962      and shall have the power to amend and rescind these bylaws, rules, and regulations. The board
             11963      shall publish its bylaws, rules, and regulations in convenient form and shall file a copy thereof,
             11964      and shall also file a copy of any amendment thereto, with the appropriate agency or officer in
             11965      each of the party states.
             11966          (k) The board annually shall make to the governor of each party state, a report covering
             11967      the activities of the board for the preceding year, and embodying such recommendations as may
             11968      have been adopted by the board, which report shall be transmitted to the legislature of said
             11969      state. The board may issue such additional reports as it may deem desirable.
             11970     
ARTICLE III. FINANCES

             11971          (a) The board shall submit to the governor or designated officer or officers of each
             11972      party state a budget of its estimated expenditures for such period as may be required by the laws
             11973      of that jurisdiction for presentation to the legislature thereof.
             11974          (b) Each of the board's budgets of estimated expenditures shall contain specific
             11975      recommendations of the amount or amounts to be appropriated by each of the party states.
             11976      Each of the board's requests for appropriations pursuant to a budget of estimated expenditures
             11977      shall be apportioned equally among the party states. Subject to appropriation by their respective
             11978      legislatures, the board shall be provided with such funds by each of the party states as are
             11979      necessary to provide the means of establishing and maintaining facilities, a staff of personnel,
             11980      and such activities as may be necessary to fulfill the powers and duties imposed upon and
             11981      entrusted to the board.
             11982          (c) The board may meet any of its obligations in whole or in part with funds available to
             11983      it under Article II(h) of this compact, provided that the board takes specific action setting aside
             11984      such funds prior to the incurring of any obligation to be met in whole or in part in this manner.
             11985      Except where the board makes use of funds available to it under Article II(h) hereof, the board

             11986      shall not incur any obligation prior to the allotment of funds by the party jurisdictions adequate
             11987      to meet the same.
             11988          (d) Any expenses and any other costs for each member of the board in attending board
             11989      meetings shall be met by the board.
             11990          (e) The board shall keep accurate accounts of all receipts and disbursements. The
             11991      receipts and disbursements of the board shall be subject to the audit and accounting procedures
             11992      established under its bylaws. However, all receipts and disbursements of funds handled by the
             11993      board shall be audited yearly by a certified or licensed public accountant and the report of the
             11994      audit shall be included in and become a part of the annual report of the board.
             11995          (f) The accounts of the board shall be open at any reasonable time for inspection to
             11996      persons authorized by the board, and duly designated representatives of governments
             11997      contributing to the board's support.
             11998     
ARTICLE IV. ADVISORY COMMITTEES

             11999          The board may establish such advisory and technical committees as it may deem
             12000      necessary, membership on which may include but not be limited to private citizens, expert and
             12001      lay personnel, representatives of industry, labor, commerce, agriculture, civic associations,
             12002      medicine, education, voluntary health agencies, and officials of local, state and federal
             12003      government, and may co-operate with and use the services of any such committees and the
             12004      organizations which they represent in furthering any of its activities under this compact.
             12005     
ARTICLE V. POWERS

             12006          The board shall have power to:
             12007          (a) Encourage and promote co-operation among the party states in the development
             12008      and utilization of nuclear and related technologies and their application to industry and other
             12009      fields.
             12010          (b) Ascertain and analyze on a continuing basis the position of the West with respect to
             12011      the employment in industry of nuclear and related scientific findings and technologies.
             12012          (c) Encourage the development and use of scientific advances and discoveries in nuclear
             12013      facilities, energy, materials, products, by-products, and all other appropriate adaptations of

             12014      scientific and technological advances and discoveries.
             12015          (d) Collect, correlate, and disseminate information relating to the peaceful uses of
             12016      nuclear energy, materials, and products, and other products and processes resulting from the
             12017      application of related science and technology.
             12018          (e) Encourage the development and use of nuclear energy, facilities, installations, and
             12019      products as part of a balanced economy.
             12020          (f) Conduct, or co-operate in conducting, programs of training for state and local
             12021      personnel engaged in any aspects of:
             12022          1. Nuclear industry, medicine, or education, or the promotion or regulation thereof.
             12023          2. Applying nuclear scientific advances or discoveries, and any industrial, commercial or
             12024      other processes resulting therefrom.
             12025          3. The formulation or administration of measures designed to promote safety in any
             12026      matter related to the development, use or disposal of nuclear energy, materials, products,
             12027      by-products, installations, or wastes, or to safety in the production, use and disposal of any
             12028      other substances peculiarly related thereto.
             12029          (g) Organize and conduct, or assist and co-operate in organizing and conducting,
             12030      demonstrations or research in any of the scientific, technological or industrial fields to which
             12031      this compact relates.
             12032          (h) Undertake such nonregulatory functions with respect to non-nuclear sources of
             12033      radiation as may promote the economic development and general welfare of the West.
             12034          (i) Study industrial, health, safety, and other standards, laws, codes, rules, regulations,
             12035      and administrative practices in or related to nuclear fields.
             12036          (j) Recommend such changes in, or amendments or additions to the laws, codes, rules,
             12037      regulations, administrative procedures and practices or local laws or ordinances of the party
             12038      states or their subdivisions in nuclear and related fields, as in its judgment may be appropriate.
             12039      Any such recommendations shall be made through the appropriate state agency, with due
             12040      consideration of the desirability of uniformity but shall also give appropriate weight to any
             12041      special circumstances which may justify variations to meet local conditions.

             12042          (k) Consider and make recommendations designed to facilitate the transportation of
             12043      nuclear equipment, materials, products, by-products, wastes, and any other nuclear or related
             12044      substances, in such manner and under such conditions as will make their availability or disposal
             12045      practicable on an economic and efficient basis.
             12046          (l) Consider and make recommendations with respect to the assumption of and
             12047      protection against liability actually or potentially incurred in any phase of operations in nuclear
             12048      and related fields.
             12049          (m) Advise and consult with the federal government concerning the common position of
             12050      the party states or assist party states with regard to individual problems where appropriate in
             12051      respect to nuclear and related fields.
             12052          (n) Cooperate with the Atomic Energy Commission, the National Aeronautics and
             12053      Space Administration, the Office of Science and Technology, or any agencies successor thereto,
             12054      and other officer or agency of the United States, and any other governmental unit or agency or
             12055      officer thereof, and with any private persons or agencies in any of the fields of its interest.
             12056          (o) Act as licensee, contractor or subcontractor of the United States Government or
             12057      any party state with respect to the conduct of any research activity requiring such license or
             12058      contract and operate such research facility or undertake any program pursuant thereto, provided
             12059      that this power shall be exercised only in connection with the implementation of one or more
             12060      other powers conferred upon the board by this compact.
             12061          (p) Prepare, publish and distribute (with or without charge) such reports, bulletins,
             12062      newsletters or other materials as it deems appropriate.
             12063          (q) Ascertain from time to time such methods, practices, circumstances, and conditions
             12064      as may bring about the prevention and control of nuclear incidents in the area comprising the
             12065      party states, to co-ordinate the nuclear incident prevention and control plans and the work
             12066      relating thereto of the appropriate agencies of the party states and to facilitate the rendering of
             12067      aid by the party states to each other in coping with nuclear incidents.
             12068          The board may formulate and, in accordance with need from time to time, revise a
             12069      regional plan or regional plans for coping with nuclear incidents within the territory of the party

             12070      states as a whole or within any subregion or subregions of the geographic area covered by this
             12071      compact.
             12072          Any nuclear incident plan in force pursuant to this paragraph shall designate the official
             12073      or agency in each party state covered by the plan who shall co-ordinate requests for aid
             12074      pursuant to Article VI of this compact and the furnishing of aid in response thereto.
             12075          Unless the party states concerned expressly otherwise agree, the board shall not
             12076      administer the summoning and dispatching of aid, but this function shall be undertaken directly
             12077      by the designated agencies and officers of the party states.
             12078          However, the plan or plans of the board in force pursuant to this paragraph shall provide
             12079      for reports to the board concerning the occurrence of nuclear incidents and the requests for aid
             12080      on account thereof, together with summaries of the actual working and effectiveness of mutual
             12081      aid in particular instances.
             12082          From time to time, the board shall analyze the information gathered from reports of aid
             12083      pursuant to Article VI and such other instances of mutual aid as may have come to its attention,
             12084      so that experience in the rendering of such aid may be available.
             12085          (r) Prepare, maintain, and implement a regional plan or regional plans for carrying out
             12086      the duties, powers, or functions conferred upon the board by this compact.
             12087          (s) Undertake responsibilities imposed or necessarily involved with regional
             12088      participation pursuant to such co-operative programs of the federal government as are useful in
             12089      connection with the fields covered by this compact.
             12090     
ARTICLE VI. MUTUAL AID

             12091          (a) Whenever a party state, or any state or local governmental authorities therein,
             12092      request aid from any other party state pursuant to this compact in coping with a nuclear
             12093      incident, it shall be the duty of the requested state to render all possible aid to the requesting
             12094      state which is consonant with the maintenance of protection of its own people.
             12095          (b) Whenever the officers or employees of any party state are rendering outside aid
             12096      pursuant to the request of another party state under this compact, the officers or employees of
             12097      such state shall, under the direction of the authorities of the state to which they are rendering

             12098      aid, have the same powers, duties, rights, privileges and immunities as comparable officers and
             12099      employees of the state to which they are rendering aid.
             12100          (c) No party state or its officers or employees rendering outside aid pursuant to this
             12101      compact shall be liable on account of any act or omission on their part while so engaged, or on
             12102      account of the maintenance or use of any equipment or supplies in connection therewith.
             12103          (d) All liability that may arise either under the laws of the requesting state or under the
             12104      laws of the aiding state or under the laws of a third state on account of or in connection with a
             12105      request for aid, shall be assumed and borne by the requesting state.
             12106          (e) Any party state rendering outside aid pursuant to this compact shall be reimbursed
             12107      by the party state receiving such aid for any loss or damage to, or expense incurred in the
             12108      operation of any equipment answering a request for aid, and for the cost of all materials,
             12109      transportation, wages, salaries and maintenance of officers, employees and equipment incurred
             12110      in connection with such requests: provided that nothing herein contained shall prevent any
             12111      assisting party state from assuming such loss, damage, expense or other cost or from loaning
             12112      such equipment or from donating such services to the receiving party state without charge or
             12113      cost.
             12114          (f) Each party state shall provide for the payment of compensation and death benefits to
             12115      injured officers and employees and the representatives of deceased officers and employees in
             12116      case officers or employees sustain injuries or death while rendering outside aid pursuant to this
             12117      compact, in the same manner and on the same terms as if the injury or death were sustained
             12118      within the state by or in which the officer or employee was regularly employed.
             12119     
ARTICLE VII. SUPPLEMENTARY AGREEMENTS

             12120          (a) To the extent that the board has not undertaken an activity or project which would
             12121      be within its power under the provisions of Article V of this compact, any two or more of the
             12122      party states (acting by their duly constituted administrative officials) may enter into
             12123      supplementary agreements for the undertaking and continuance of such an activity or project.
             12124      Any such agreement shall specify the purpose or purposes; its duration and the procedure for
             12125      termination thereof or withdrawal therefrom; the method of financing and allocating the costs of

             12126      the activity or project; and such other matters as may be necessary or appropriate.
             12127          No such supplementary agreement entered into pursuant to this article shall become
             12128      effective prior to its submission to and approval by the board. The board shall give such
             12129      approval unless it finds that the supplementary agreement or activity or project contemplated
             12130      thereby is inconsistent with the provisions of this compact or a program or activity conducted
             12131      by or participated in by the board.
             12132          (b) Unless all of the party states participate in a supplementary agreement, any cost or
             12133      costs thereof shall be borne separately by the states party thereto. However, the board may
             12134      administer or otherwise assist in the operation of any supplementary agreement.
             12135          (c) No party to a supplementary agreement entered into pursuant to this article shall be
             12136      relieved thereby of any obligation or duty assumed by said party state under or pursuant to this
             12137      compact, except that timely and proper performance of such obligation or duty by means of the
             12138      supplementary agreement may be offered as performance pursuant to the compact.
             12139          (d) The provisions to this Article shall apply to supplementary agreements and activities
             12140      thereunder, but shall not be construed to repeal or impair any authority which officers or
             12141      agencies of party states may have pursuant to other laws to undertake cooperative arrangements
             12142      or projects.
             12143     
ARTICLE VIII. OTHER LAWS AND RELATIONS

             12144          Nothing in this compact shall be construed to:
             12145          (a) Permit or require any person or other entity to avoid or refuse compliance with any
             12146      law, rule, regulation, order or ordinance of a party state or subdivision thereof now or hereafter
             12147      made, enacted or in force.
             12148          (b) Limit, diminish, or otherwise impair jurisdiction exercised by the Atomic Energy
             12149      Commission, any agency successor thereto, or any other federal department, agency or officer
             12150      pursuant to and in conformity with any valid and operative act of Congress; nor limit, diminish,
             12151      affect, or otherwise impair, jurisdiction exercised by any officer or agency of a party state,
             12152      except to the extent that the provisions of this compact may provide therefor.
             12153          (c) Alter the relations between and respective internal responsibilities of the government

             12154      of a party state and its subdivisions.
             12155          (d) Permit or authorize the board to own or operate any facility, reactor, or installation
             12156      for industrial or commercial purposes.
             12157     
ARTICLE IX. ELIGIBLE PARTIES,

             12158     
ENTRY INTO FORCE AND WITHDRAWAL

             12159          (a) Any or all of the states of Alaska, Arizona, California, Colorado, Hawaii, Idaho,
             12160      Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming shall be eligible to
             12161      become party to this compact.
             12162          (b) As to any eligible party state, this compact shall become effective when its
             12163      legislature shall have enacted the same into law: provided, that it shall not become initially
             12164      effective until enacted into law by five states.
             12165          (c) Any party state may withdraw from this compact by enacting a statute repealing the
             12166      same, but no such withdrawal shall take effect until two years after the governor of the
             12167      withdrawing state has given notice in writing of the withdrawal to the governors of all other
             12168      party states. No withdrawal shall affect any liability already incurred by or chargeable to a party
             12169      state prior to the time of such withdrawal.
             12170          (d) Guam and American Samoa, or either of them may participate in the compact to
             12171      such extent as may be mutually agreed by the board and the duly constituted authorities of
             12172      Guam or American Samoa, as the case may be. However, such participation shall not include
             12173      the furnishing or receipt of mutual aid pursuant to Article VI, unless that Article has been
             12174      enacted or otherwise adopted so as to have the full force and effect of law in the jurisdiction
             12175      affected. Neither Guam nor American Samoa shall be entitled to voting participation on the
             12176      board, unless it has become a full party to the compact.
             12177     
ARTICLE X. SEVERABILITY AND CONSTRUCTION

             12178          The provisions of this compact and of any supplementary agreement entered into
             12179      hereunder shall be severable and if any phrase, clause, sentence or provision of this compact or
             12180      such supplementary agreement is declared to be contrary to the constitution of any participating
             12181      state or of the United States or the applicability thereof to any government, agency, person, or

             12182      circumstance is held invalid, the validity of the remainder of this compact or such supplementary
             12183      agreement and the applicability thereof to any government, agency, person or circumstance shall
             12184      not be affected thereby. If this compact or any supplementary agreement entered into hereunder
             12185      shall be held contrary to the constitution of any state participating therein, the compact or such
             12186      supplementary agreement shall remain in full force and effect as to the remaining states and in
             12187      full force and effect as to the state affected as to all severable matters. The provisions of this
             12188      compact and of any supplementary agreement entered into pursuant thereto shall be liberally
             12189      construed to effectuate the purposes thereof.
             12190          Section 263. Section 19-11-301 , which is renumbered from Section 63-41-4 is
             12191      renumbered and amended to read:
             12192     
Part 3. Utah Board Members

             12193           [63-41-4].     19-11-301. Utah member of board -- Designation.
             12194          The member of the board representing the state of Utah shall be designated by the
             12195      governor of the state of Utah.
             12196          Section 264. Section 19-11-302 , which is renumbered from Section 63-41-5 is
             12197      renumbered and amended to read:
             12198           [63-41-5].     19-11-302. Alternate member.
             12199          The alternate required pursuant to Article II(a) of the compact shall be designated by the
             12200      board member representing this state and shall serve at [his] the board member's pleasure.
             12201          Section 265. Section 19-11-401 , which is renumbered from Section 63-41-6 is
             12202      renumbered and amended to read:
             12203     
Part 4. Board Bylaws

             12204           [63-41-6].     19-11-401. Bylaws of board to be filed.
             12205          Pursuant to Article II(j) of the compact, the board shall file copies of its bylaws and any
             12206      amendments thereto with the Division of Archives.
             12207          Section 266. Section 20A-1-204 is amended to read:
             12208           20A-1-204. Date of special election -- Legal effect.
             12209          (1) (a) The governor, Legislature, or the legislative body of a local political subdivision

             12210      calling a statewide special election or local special election under Section 20A-1-203 shall
             12211      schedule the special election to be held on:
             12212          (i) the fourth Tuesday in June; or
             12213          (ii) the first Tuesday after the first Monday in November.
             12214          (b) Except as provided in Subsection (1)(c), the governor, Legislature, or the legislative
             12215      body of a local political subdivision calling a statewide special election or local special election
             12216      under Section 20A-1-203 may not schedule a special election to be held on any other date.
             12217          (c) (i) Notwithstanding the requirements of Subsection (1)(b), the legislative body of a
             12218      local political subdivision may call a local special election on a date other than those specified in
             12219      this section if the legislative body:
             12220          (A) determines and declares that there is a disaster, as defined in Section [ 63-5-2 ]
             12221      63K-3-102 , requiring that a special election be held on a date other than the ones authorized in
             12222      statute;
             12223          (B) identifies specifically the nature of the disaster, as defined in Section [ 63-5-2 ]
             12224      63K-3-102 , and the reasons for holding the special election on that other date; and
             12225          (C) votes unanimously to hold the special election on that other date.
             12226          (ii) The legislative body of a local political subdivision may not call a local special
             12227      election for the date established in Title 20A, Chapter 9, Part 8, Western States Presidential
             12228      Primary, for Utah's Western States Presidential Primary.
             12229          (d) Nothing in this section prohibits:
             12230          (i) the governor or Legislature from submitting a matter to the voters at the regular
             12231      general election if authorized by law; or
             12232          (ii) a local government from submitting a matter to the voters at the regular municipal
             12233      election if authorized by law.
             12234          (2) (a) Two or more entities shall comply with Subsection (2)(b) if those entities hold a
             12235      special election within a county on the same day as:
             12236          (i) another special election;
             12237          (ii) a regular general election; or

             12238          (iii) a municipal general election.
             12239          (b) Entities described in Subsection (2)(a) shall, to the extent practicable, coordinate:
             12240          (i) polling places;
             12241          (ii) ballots;
             12242          (iii) election officials; and
             12243          (iv) other administrative and procedural matters connected with the election.
             12244          Section 267. Section 20A-2-104 is amended to read:
             12245           20A-2-104. Voter registration form -- Registered voter lists -- Fees for copies.
             12246          (1) Every person applying to be registered shall complete a registration form printed in
             12247      substantially the following form:
             12248      ----------------------------------------------------------------------------------------------------------------
             12249      -
             12250     
UTAH ELECTION REGISTRATION FORM

             12251      Are you a citizen of the United States of America? Yes No
             12252      Will you be 18 years old on or before election day? Yes No
             12253      If you checked "no" to either of the above two questions, do not complete this form.
             12254      Name of Voter
             12255      _________________________________________________________________
             12256                      First             Middle          Last
             12257      Driver License or Identification Card Number____________________________
             12258      State of issuance of Driver License or Identification Card
             12259      Date of Birth ______________________________________________________
             12260      Street Address of Principal Place of Residence
             12261      ____________________________________________________________________________
             12262          City          County          State          Zip Code
             12263      Telephone Number (optional) _________________________
             12264      Last four digits of Social Security Number ______________________
             12265      Last former address at which I was registered to vote (if

             12266      known)__________________________
             12267      ____________________________________________________________________________
             12268          City            County            State         Zip Code
             12269     
             12270      Political Party
             12271     
             12272      (a listing of each registered political party, as defined in Section 20A-8-101 and maintained by
             12273      the lieutenant governor under Section 67-1a-2 , with each party's name preceded by a checkbox)
             12274      .Unaffiliated (no political party preference) .Other (Please specify)___________________
             12275          I do swear (or affirm), subject to penalty of law for false statements, that the information
             12276      contained in this form is true, and that I am a citizen of the United States and a resident of the
             12277      state of Utah, residing at the above address. I will be at least 18 years old and will have resided
             12278      in Utah for 30 days immediately before the next election. I am not a convicted felon currently
             12279      incarcerated for commission of a felony.
             12280          Signed and sworn
             12281          __________________________________________________________
             12282                          Voter's Signature
             12283          _______________(month/day/year).
             12284     
CITIZENSHIP AFFIDAVIT

             12285      Name:
             12286      Name at birth, if different:
             12287      Place of birth:
             12288      Date of birth:
             12289      Date and place of naturalization (if applicable):
             12290          I hereby swear and affirm, under penalties for voting fraud set forth below, that I am a
             12291      citizen and that to the best of my knowledge and belief the information above is true and
             12292      correct.
             12293      ____________________________

             12294      Signature of Applicant
             12295          In accordance with Section 20A-2-401 , the penalty for willfully causing, procuring, or
             12296      allowing yourself to be registered to vote if you know you are not entitled to register to vote is
             12297      up to one year in jail and a fine of up to $2,500.
             12298      NOTICE: IN ORDER TO BE ALLOWED TO VOTE IN A VOTING PRECINCT FOR THE
             12299      FIRST TIME OR TO VOTE DURING THE EARLY VOTING PERIOD BEFORE THE
             12300      DATE OF THE ELECTION, YOU MUST PRESENT VALID VOTER IDENTIFICATION
             12301      TO THE POLL WORKER BEFORE VOTING AS FOLLOWS:
             12302      (1) A VALID FORM OF PHOTO IDENTIFICATION THAT SHOWS YOUR NAME,
             12303      PHOTOGRAPH, AND CURRENT ADDRESS; OR
             12304      (2) TWO DIFFERENT FORMS OF IDENTIFICATION THAT SHOW YOUR NAME AND
             12305      CURRENT ADDRESS.
             12306      FOR OFFICIAL USE ONLY
             12307                              Type of I.D. ____________________________
             12308                              Voting Precinct _________________________
             12309                              Voting I.D. Number _____________________
             12310      ----------------------------------------------------------------------------------------------------------------
             12311      ---
             12312          (2) The county clerk shall retain a copy in a permanent countywide alphabetical file,
             12313      which may be electronic or some other recognized system.
             12314          (3) (a) Each county clerk shall retain lists of currently registered voters.
             12315          (b) The lieutenant governor shall maintain a list of registered voters in electronic form.
             12316          (c) If there are any discrepancies between the two lists, the county clerk's list is the
             12317      official list.
             12318          (d) The lieutenant governor and the county clerks may charge the fees established under
             12319      the authority of Subsection [ 63-2-203 ] 63G-2-203 (10) to individuals who wish to obtain a copy
             12320      of the list of registered voters.
             12321          (4) When political parties not listed on the voter registration form qualify as registered

             12322      political parties under Title 20A, Chapter 8, Political Party Formation and Procedures, the
             12323      lieutenant governor shall inform the county clerks about the name of the new political party and
             12324      direct the county clerks to ensure that the voter registration form is modified to include that
             12325      political party.
             12326          (5) Upon receipt of a voter registration form from an applicant, the county clerk or the
             12327      clerk's designee shall:
             12328          (a) review each voter registration form for completeness and accuracy; and
             12329          (b) if the county clerk believes, based upon a review of the form, that a person may be
             12330      seeking to register to vote who is not legally entitled to register to vote, refer the form to the
             12331      county attorney for investigation and possible prosecution.
             12332          Section 268. Section 20A-3-304.1 is amended to read:
             12333           20A-3-304.1. Election officer to provide voting history information and status.
             12334          (1) As used in this section:
             12335          (a) "Qualified absentee ballot application" means an absentee ballot application filed
             12336      under Section 20A-3-304 from a voter who the election officer determines is eligible to receive
             12337      an absentee ballot.
             12338          (b) "Voting history record" means the information about the existence and status of
             12339      absentee ballot requests required by this section.
             12340          (2) (a) Each election officer shall maintain, in the election officer's office, a voting
             12341      history record of those voters that have cast a vote by:
             12342          (i) absentee ballot; and
             12343          (ii) early voting.
             12344          (b) The voting history record is a public record under [Title 63, Chapter 2] Title 63G,
             12345      Chapter 2, Government Records Access and Management Act.
             12346          (3) The election officer shall ensure that the voting history record for each voting
             12347      precinct contains:
             12348          (a) for absentee voting:
             12349          (i) the name and address of each person who has filed a qualified absentee ballot

             12350      application;
             12351          (ii) the date that the application was received; and
             12352          (iii) the current status of each qualified absentee ballot application including specifically:
             12353          (A) the date that the absentee ballot was mailed to the voter; and
             12354          (B) the date that the voted absentee ballot was received by the election officer; and
             12355          (b) for early voting:
             12356          (i) the name and address of each person who has voted during the early voting period;
             12357      and
             12358          (ii) the date the person's vote was cast.
             12359          (4) (a) Notwithstanding the time limits for response to a request for records under
             12360      Section [ 63-2-204 ] 63G-2-204 or the time limits for a request for records established in any
             12361      ordinance, the election officer shall ensure that the information required by this section is
             12362      recorded and made available to the public no later than one business day after its receipt in the
             12363      election officer's office.
             12364          (b) Notwithstanding the fee requirements of Section [ 63-2-203 ] 63G-2-203 or the fee
             12365      requirements established in any ordinance, the election officer shall make copies of the voting
             12366      history record available to the public for the actual cost of production or copying.
             12367          Section 269. Section 20A-3-408.5 is amended to read:
             12368           20A-3-408.5. Electronic registration and voting by military and overseas citizen
             12369      voters in a hostile fire zone -- Procedures for accepting and processing a federal postcard
             12370      application form -- Returned ballot.
             12371          (1) A military voter, an overseas citizen voter, or other voter covered under the federal
             12372      Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA) shall be allowed to transmit
             12373      their federal postcard application form electronically to the county clerk in their county of
             12374      residence if the voter is currently deployed in:
             12375          (a) a hostile fire zone; or
             12376          (b) other area where the mail service is unreliable and not sufficient to accommodate
             12377      timely mail service.

             12378          (2) A voter covered under Subsection (1), shall file the federal postcard application
             12379      form no later than 20 days before the day of the election in accordance with Subsection
             12380      20A-3-304 (3)(a)(ii).
             12381          (3) Upon receiving a federal postcard application form under this section a county clerk
             12382      shall review the federal postcard application form to verify:
             12383          (a) compliance with this section; and
             12384          (b) that the form has been properly completed and signed.
             12385          (4) Upon a determination of compliance under Subsection (3), a county clerk shall:
             12386          (a) register the voter, unless the voter is already registered;
             12387          (b) process the absentee ballot request; and
             12388          (c) electronically transmit a ballot to the voter who filed the federal postcard application
             12389      form.
             12390          (5) A voter who receives a ballot under this section may transmit the ballot
             12391      electronically to the county clerk in their county of residence if the voter:
             12392          (a) agrees to waive the right to a secret ballot in accordance with this section; and
             12393          (b) affirms in writing that the voter is currently deployed in:
             12394          (i) a hostile fire zone; or
             12395          (ii) other area where the mail service is unreliable and not sufficient to accommodate
             12396      timely mail service.
             12397          (6) The electronically transmitted ballot shall be accompanied by the following
             12398      statements: "I understand that by electronically transmitting my voted ballot I am voluntarily
             12399      waiving my right to a secret ballot. Signature of voter ________________ Date _______"; and
             12400          "I affirm that I am currently deployed in a hostile fire zone" or
             12401          "I affirm that I am currently deployed in an area where mail service is unreliable and not
             12402      sufficient to accommodate timely mail service."
             12403          (7) Notwithstanding the provisions of Subsections (5) and (6), the completed ballot
             12404      transmitted under this section is considered a private record under [Title 63, Chapter 2] Title
             12405      63G, Chapter 2, Government Records Access and Management Act.

             12406          (8) A ballot transmitted under Subsection (5) shall be:
             12407          (a) transmitted no later than the date that is one day before the election day in
             12408      accordance with Section 20A-3-406 ; and
             12409          (b) received by the county clerk before the date of the official canvass in accordance
             12410      with Subsection 20A-3-306 (2)(b).
             12411          (9) Upon the receipt of an electronically transmitted ballot under this section, a county
             12412      clerk shall:
             12413          (a) verify the voter's signature from the federal postcard application form and ensure
             12414      that it matches the voter's signature on the return ballot;
             12415          (b) duplicate the electronically transmitted ballot onto a regular ballot used by the
             12416      county for resident voters; and
             12417          (c) maintain the electronically transmitted ballot for 22 months in accordance with
             12418      Subsection 20A-4-202 (2).
             12419          Section 270. Section 20A-9-206 is amended to read:
             12420           20A-9-206. Fair campaign practices -- Voluntary pledge -- Pledge is a public
             12421      record -- Retention requirements.
             12422          (1) Each person seeking to become a candidate for any elective office that is to be filled
             12423      at the next election shall be provided with a copy of the pledge of fair campaign practices.
             12424          (2) The pledge shall be in the following form:
             12425          "PLEDGE OF FAIR CAMPAIGN PRACTICES
             12426          There are basic principles of decency, honesty, and fair play which every candidate for
             12427      public office in the State of Utah has a moral obligation to observe and uphold, in order that,
             12428      after vigorously contested but fairly conducted campaigns, our citizens may exercise their right
             12429      to a free election, and that the will of the people may be fully and clearly expressed on the
             12430      issues.
             12431          THEREFORE:
             12432          I SHALL conduct my campaign openly and publicly, discussing the issues as I see them,
             12433      presenting my record and policies with sincerity and frankness, and criticizing, without fear or

             12434      favor, the record and policies of my opponents that I believe merit criticism.
             12435          I SHALL NOT use nor shall I permit the use of scurrilous attacks on any candidate or
             12436      the candidate's immediate family. I shall not participate in or nor shall I permit the use of
             12437      defamation, libel, or slander against any candidate or the candidate's immediate family. I shall
             12438      not participate in nor shall I permit the use of any other criticism of any candidate or the
             12439      candidate's immediate family that I do not believe to be truthful, provable, and relevant to my
             12440      campaign.
             12441          I SHALL NOT use nor shall I permit the use of any practice that tends to corrupt or
             12442      undermine our American system of free elections, or that hinders or prevents the free expression
             12443      of the will of the voters, including practices intended to hinder or prevent any eligible person
             12444      from registering to vote or voting.
             12445          I SHALL NOT coerce election help or campaign contributions for myself or for any
             12446      other candidate from my employees or volunteers.
             12447          I SHALL immediately and publicly repudiate support deriving from any individual or
             12448      group which resorts, on behalf of my candidacy or in opposition to that of an opponent, to
             12449      methods in violation of the letter or spirit of this pledge. I shall accept responsibility to take
             12450      firm action against any subordinate who violates any provision of this pledge or the laws
             12451      governing elections.
             12452          I SHALL defend and uphold the right of every qualified American voter to full and
             12453      equal participation in the electoral process.
             12454          I, the undersigned, candidate for election to public office in the State of Utah, hereby
             12455      voluntarily endorse, subscribe to, and solemnly pledge myself to conduct my campaign in
             12456      accordance with the above principles and practices."
             12457          Name: ________________________________
             12458          Signature: _____________________________ Date: _________
             12459          (3) The filing officer shall print, or cause to be printed, blank forms of the pledge to be
             12460      distributed to persons filing a declaration of candidacy.
             12461          (4) A pledge that is submitted for filing by a candidate is a public record under [Title

             12462      63, Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act.
             12463          (5) The filing officer shall:
             12464          (a) accept all signed pledges that are submitted for filing; and
             12465          (b) retain each filed pledge for public inspection for 30 calendar days after the election.
             12466          (6) A candidate may not be required to subscribe to, endorse, or sign the pledge of fair
             12467      campaign practices.
             12468          Section 271. Section 20A-12-104 is amended to read:
             12469           20A-12-104. Procedures governing meetings of judicial nominating commissions.
             12470          (1) The Judicial Council shall:
             12471          (a) enact rules establishing procedures governing the meetings of the judicial
             12472      nominating commissions; and
             12473          (b) ensure that those procedures include:
             12474          (i) a minimum recruitment period of 30 days and a procedure to extend that period for
             12475      an additional 30 days if fewer than nine applications are received for a judicial vacancy;
             12476          (ii) standards for maintaining the confidentiality of the applications and related
             12477      documents;
             12478          (iii) standards governing the release of applicant names before nomination;
             12479          (iv) standards for destroying the records of the names of applicants, applications, and
             12480      related documents upon completion of the nominating process;
             12481          (v) an opportunity for public comment concerning the nominating process,
             12482      qualifications for judicial office, and individual applicants;
             12483          (vi) evaluation criteria for the selection of judicial nominees;
             12484          (vii) procedures for taking summary minutes at nominating commission meetings;
             12485          (viii) procedures for simultaneously forwarding the names of nominees to the governor,
             12486      the president of the Senate, and the Office of Legislative Research and General Counsel; and
             12487          (ix) standards governing a nominating commissioner's disqualification and inability to
             12488      serve.
             12489          (2) (a) (i) Except as provided in this Subsection (2)(a)(ii), if a judicial nominating

             12490      commission receives 15 or more applications to fill a judicial vacancy, the nominating
             12491      commission shall submit at least five names to the governor.
             12492          (ii) Notwithstanding Subsection (2)(a)(i), if five applicants do not receive the required
             12493      number of votes as specified in Subsection (2)(c) from the nominating commission, the
             12494      commission shall submit only the names of applicants that received the required number of
             12495      votes, but must submit the names of at least three applicants.
             12496          (b) In determining whether or not to submit an applicant's name to the governor, a
             12497      commission may not decline to consider an applicant merely because:
             12498          (i) the nominating commission had declined to submit that candidate's name to the
             12499      governor to fill a previous vacancy;
             12500          (ii) a previous nominating commission had declined to submit that candidate's name to
             12501      the governor; or
             12502          (iii) that nominating commission or a previous nominating commission had submitted
             12503      the applicant's name to the governor and the governor selected someone else to fill the vacancy.
             12504          (c) The vote required to submit an applicant's name to the governor is as follows:
             12505          (i) if all seven members of the nominating commission are present and considering
             12506      applicants, a vote in favor of the applicant by four commissioners submits the candidate's name
             12507      to the governor;
             12508          (ii) if only six members of the nominating commission are present and considering
             12509      applicants because one member is unable to attend, has recused himself or is otherwise
             12510      disqualified, a vote in favor of the applicant by four commissioners submits the candidate's name
             12511      to the governor;
             12512          (iii) if only five members of the nominating commission are present and considering
             12513      applicants because two members are unable to attend, have recused themselves, or are
             12514      otherwise disqualified, a vote in favor of the applicant by three commissioners submits the
             12515      candidate's name to the governor; and
             12516          (iv) if only four members of the nominating commission are present and considering
             12517      applicants because three members are unable to attend, have recused themselves, or are

             12518      otherwise disqualified, a vote in favor of the applicant by three commissioners submits the
             12519      candidate's name to the governor.
             12520          (3) A judicial nominating commission may not nominate a justice or judge who was not
             12521      retained by the voters for the office for which the justice or judge was defeated until after the
             12522      expiration of that term of office.
             12523          (4) Judicial nominating commissions are exempt from the requirements of Title 52,
             12524      Chapter 4, Open and Public Meetings Act, and [Title 63, Chapter 46a] Title 63G, Chapter 3,
             12525      Utah Administrative Rulemaking Act.
             12526          Section 272. Section 23-14-2.1 is amended to read:
             12527           23-14-2.1. Procedures -- Adjudicative proceedings.
             12528          The Division of Wildlife Resources shall comply with the procedures and requirements
             12529      of [Title 63, Chapter 46b,] Title 63G, Chapter 4, Administrative Procedures Act, in its
             12530      adjudicative proceedings.
             12531          Section 273. Section 23-14-18 is amended to read:
             12532           23-14-18. Establishment of seasons, locations, limits, and regulations by Wildlife
             12533      Board.
             12534          (1) To provide an adequate and flexible system of protection, propagation,
             12535      introduction, increase, control, harvest, management, and conservation of protected wildlife in
             12536      this state and to provide for the use and development of protected wildlife for public recreation
             12537      and food supply while maintaining a sustainable population of protected wildlife, the Wildlife
             12538      Board shall determine the circumstances, time, location, means, and the amounts, and numbers
             12539      of protected wildlife which may be taken.
             12540          (2) The Wildlife Board shall, except as otherwise specified in this code:
             12541          (a) fix seasons and shorten, extend, or close seasons on any species of protected wildlife
             12542      in any locality, or in the entire state, if the board finds that the action is necessary to effectuate
             12543      proper wildlife management and control;
             12544          (b) close or open areas to fishing, trapping, or hunting;
             12545          (c) establish refuges and preserves;

             12546          (d) regulate and prescribe the means by which protected wildlife may be taken;
             12547          (e) regulate the transportation and storage of protected wildlife, or their parts, within
             12548      the boundaries of the state and the shipment or transportation out of the state;
             12549          (f) establish or change bag limits and possession limits;
             12550          (g) prescribe safety measures and establish other regulations as may be considered
             12551      necessary in the interest of wildlife conservation and the safety and welfare of hunters, trappers,
             12552      fishermen, landowners, and the public;
             12553          (h) (i) prescribe when licenses, permits, tags, and certificates of registration shall be
             12554      required and procedures for their issuance and use; and
             12555          (ii) establish forms and fees for licenses, permits, tags, and certificates of registration;
             12556      and
             12557          (i) prescribe rules and regulations as it may consider necessary to control the use and
             12558      harvest of protected wildlife by private associations, clubs, partnerships, or corporations,
             12559      provided the rules and regulations do not preclude the landowner from personally controlling
             12560      trespass upon the owner's properties nor from charging a fee to trespass for purposes of hunting
             12561      or fishing.
             12562          (3) The Wildlife Board may allow a season on protected wildlife to commence on any
             12563      day of the week except Sunday.
             12564          (4) The Wildlife Board shall establish fees for licenses, permits, tags, and certificates of
             12565      registration in accordance with Section [ 63-38-3.2 ] 63J-1-303 .
             12566          Section 274. Section 23-14-21 is amended to read:
             12567           23-14-21. Transplants of big game, turkeys, wolves, or sensitive species.
             12568          (1) The division may transplant big game, turkeys, wolves, or sensitive species only in
             12569      accordance with:
             12570          (a) a list of sites for the transplant of a particular species that is prepared and adopted in
             12571      accordance with Subsections (2) through (5);
             12572          (b) a species management plan, such as a deer or elk management plan adopted under
             12573      Section 23-16-7 or a recovery plan for a threatened or endangered species, provided that:

             12574          (i) the plan identifies sites for the transplant of the species or the lands or waters the
             12575      species are expected to occupy; and
             12576          (ii) the public has had an opportunity to comment and make recommendations on the
             12577      plan; or
             12578          (c) a legal agreement between the state and a tribal government that identifies potential
             12579      transplants; and
             12580          (d) the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             12581          (2) The division shall:
             12582          (a) consult with the landowner in determining the suitability of a site for the transplant
             12583      of a species;
             12584          (b) prepare a list of proposed sites for the transplant of species;
             12585          (c) provide notification of proposed sites for the transplant of species to:
             12586          (i) local government officials having jurisdiction over areas that may be affected by a
             12587      transplant; and
             12588          (ii) the Resource Development Coordinating Committee created in Section
             12589      [ 63-38d-501 ] 63J-4-501 .
             12590          (3) After receiving comments from local government officials and the Resource
             12591      Development Coordinating Committee, the division shall submit the list of proposed transplant
             12592      sites, or a revised list, to regional advisory councils for regions that may be affected by the
             12593      transplants of species.
             12594          (4) Each regional advisory council reviewing a list of proposed sites for the transplant
             12595      of species may submit recommendations to the Wildlife Board.
             12596          (5) The Wildlife Board shall approve, modify, or reject each proposal for the transplant
             12597      of a species.
             12598          (6) Each list of proposed transplant sites approved by the Wildlife Board shall have a
             12599      termination date after which a transplant may not occur.
             12600          Section 275. Section 23-16-3.2 is amended to read:
             12601           23-16-3.2. Mitigation review panel.

             12602          (1) A mitigation review panel may be convened to review the depredation mitigation
             12603      plans.
             12604          (2) Membership of the mitigation review panel shall consist of:
             12605          (a) the division director or the director's designee;
             12606          (b) (i) the commissioner of the Department of Agriculture and Food or the
             12607      commissioner's designee; or
             12608          (ii) a representative of agricultural interests appointed by the commissioner of the
             12609      Department of Agriculture and Food; and
             12610          (c) a representative of Utah State University Extension Service appointed by the Vice
             12611      President and Dean for University Extension.
             12612          (3) (a) The division director shall convene a mitigation review panel if:
             12613          (i) a landowner or lessee appeals a depredation mitigation plan under Subsection
             12614      23-16-3.1 (2)(b)(ii); or
             12615          (ii) the division director requests review of a depredation mitigation plan.
             12616          (b) Within five business days of an appeal under Subsection 23-16-3.1 (2)(b)(ii) or a
             12617      division request for review under Subsection 23-16-3.1 (3)(b), the mitigation review panel shall
             12618      review the depredation mitigation plan and approve or modify the plan.
             12619          (4) Judicial review of a mitigation review panel action shall be governed by [Title 63,
             12620      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             12621          Section 276. Section 23-16-4 is amended to read:
             12622           23-16-4. Compensation for damage to crops, fences, or irrigation equipment --
             12623      Limitations -- Appeals.
             12624          (1) The division may provide compensation to claimants for damage caused by big
             12625      game to:
             12626          (a) cultivated crops from or on cleared and planted land;
             12627          (b) fences on private land; or
             12628          (c) irrigation equipment on private land.
             12629          (2) To be eligible to receive compensation as provided in this section, the claimant:

             12630          (a) must notify the division of the damage within 72 hours after the damage is
             12631      discovered; and
             12632          (b) allow division personnel reasonable access to the property to verify and alleviate the
             12633      depredation problem.
             12634          (3) (a) The appraisal of the damage shall be made by the claimant and the division as
             12635      soon after notification as possible.
             12636          (b) In determining damage payment, the division and claimant shall consider:
             12637          (i) the extent of damage experienced; and
             12638          (ii) any revenue the landowner derives from:
             12639          (A) participation in a cooperative wildlife management unit;
             12640          (B) use of landowner association permits;
             12641          (C) use of mitigation permits; and
             12642          (D) charging for hunter access.
             12643          (c) In determining how to assess and compensate for damages to cultivated crops, the
             12644      division's determination shall be based on the:
             12645          (i) full replacement value in the local market of the cultivated crops that actually have
             12646      been or will be damaged or consumed by big game animals; and
             12647          (ii) cost of delivery of a replacement crop to the location of the damaged crop or other
             12648      location that is not farther from the source of the replacement crop.
             12649          (d) If the claimant and the division are unable to agree on a fair and equitable damage
             12650      payment, they shall designate a third party, consisting of one or more persons familiar with the
             12651      crops, fences, or irrigation equipment and the type of game animals doing the damage, to
             12652      appraise the damage.
             12653          (4) (a) Notwithstanding Section [ 63-38-3.2 ] 63J-1-303 , the total amount of
             12654      compensation that may be provided by the division pursuant to this section and the total cost of
             12655      fencing materials provided by the division to prevent crop damage may not exceed the
             12656      legislative appropriation for fencing material and compensation for damaged crops, fences, and
             12657      irrigation equipment.

             12658          (b) (i) Any claim of $1,000 or less may be paid after appraisal of the damage as
             12659      provided in Subsection (3), unless the claim brings the total amount of claims submitted by the
             12660      claimant in the fiscal year to an amount in excess of $1,000.
             12661          (ii) Any claim for damage to irrigation equipment may be paid after appraisal of the
             12662      damage as provided in Subsection (3).
             12663          (c) (i) Any claim in excess of $1,000, or claim that brings the total amount of claims
             12664      submitted by the claimant in the fiscal year to an amount in excess of $1,000, shall be treated as
             12665      follows:
             12666          (A) $1,000 may be paid pursuant to the conditions of this section; and
             12667          (B) the amount in excess of $1,000 may not be paid until the total amount of the
             12668      approved claims of all the claimants and expenses for fencing materials for the fiscal year are
             12669      determined.
             12670          (ii) If the total exceeds the amount appropriated by the Legislature pursuant to
             12671      Subsection (4)(a), claims in excess of $1,000, or any claim that brings the total amount of a
             12672      claimant's claims in a fiscal year to an amount in excess of $1,000, shall be prorated.
             12673          (5) The division may deny or limit compensation if the claimant:
             12674          (a) has failed to exercise reasonable care and diligence to avoid the loss or minimize the
             12675      damage; or
             12676          (b) has unreasonably restricted hunting on land under the claimant's control or passage
             12677      through the land to access public lands for the purpose of hunting, after receiving written
             12678      notification from the division of the necessity of allowing such hunting or access to control or
             12679      mitigate damage by big game.
             12680          (6) (a) The Wildlife Board shall make rules specifying procedures for the appeal of
             12681      division actions under this section.
             12682          (b) Upon the petition of an aggrieved party to a final division action, the Wildlife Board
             12683      may review the action on the record and issue an order modifying or rescinding the division
             12684      action.
             12685          (c) A qualified hearing examiner may be appointed for purposes of taking evidence and

             12686      making recommendations for a board order. The board shall consider the recommendations of
             12687      the examiner in making decisions.
             12688          (d) Board review of final agency action and judicial review of final board action shall be
             12689      governed by [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             12690          Section 277. Section 23-19-9 is amended to read:
             12691           23-19-9. Suspension of license or permit privileges -- Suspension of certificates of
             12692      registration.
             12693          (1) As used in this section, "license or permit privileges" means the privilege of applying
             12694      for, purchasing, and exercising the benefits conferred by a license or permit issued by the
             12695      division.
             12696          (2) A hearing officer, appointed by the division, may suspend a person's license or
             12697      permit privileges if:
             12698          (a) in a court of law, the person:
             12699          (i) is convicted of:
             12700          (A) violating this title or a rule of the Wildlife Board;
             12701          (B) killing or injuring domestic livestock while engaged in an activity regulated under
             12702      this title; or
             12703          (C) violating Section 76-10-508 while engaged in an activity regulated under this title;
             12704          (ii) enters into a plea in abeyance agreement, in which the person pleads guilty or no
             12705      contest to an offense listed in Subsection (2)(a)(i), and the plea is held in abeyance; or
             12706          (iii) is charged with committing an offense listed in Subsection (2)(a)(i), and the person
             12707      enters into a diversion agreement which suspends the prosecution of the offense; and
             12708          (b) the hearing officer determines the person committed the offense intentionally,
             12709      knowingly, or recklessly, as defined in Section 76-2-103 .
             12710          (3) (a) The Wildlife Board shall make rules establishing guidelines that a hearing officer
             12711      shall consider in determining:
             12712          (i) the type of license or permit privileges to suspend; and
             12713          (ii) the duration of the suspension.

             12714          (b) The Wildlife Board shall ensure that the guidelines established under Subsection
             12715      (3)(a) are consistent with Subsections (4), (5), and (6).
             12716          (4) Except as provided in Subsections (5) and (6), a hearing officer may suspend a
             12717      person's license or permit privileges according to Subsection (2) for a period of time not to
             12718      exceed:
             12719          (a) seven years for:
             12720          (i) a felony conviction;
             12721          (ii) a plea of guilty or no contest to an offense punishable as a felony, which plea is held
             12722      in abeyance pursuant to a plea in abeyance agreement; or
             12723          (iii) being charged with an offense punishable as a felony, the prosecution of which is
             12724      suspended pursuant to a diversion agreement;
             12725          (b) five years for:
             12726          (i) a class A misdemeanor conviction;
             12727          (ii) a plea of guilty or no contest to an offense punishable as a class A misdemeanor,
             12728      which plea is held in abeyance pursuant to a plea in abeyance agreement; or
             12729          (iii) being charged with an offense punishable as a class A misdemeanor, the
             12730      prosecution of which is suspended pursuant to a diversion agreement;
             12731          (c) three years for:
             12732          (i) a class B misdemeanor conviction;
             12733          (ii) a plea of guilty or no contest to an offense punishable as a class B misdemeanor
             12734      when the plea is held in abeyance according to a plea in abeyance agreement; or
             12735          (iii) being charged with an offense punishable as a class B misdemeanor, the prosecution
             12736      of which is suspended pursuant to a diversion agreement; and
             12737          (d) one year for:
             12738          (i) a class C misdemeanor conviction;
             12739          (ii) a plea of guilty or no contest to an offense punishable as a class C misdemeanor,
             12740      when the plea is held in abeyance according to a plea in abeyance agreement; or
             12741          (iii) being charged with an offense punishable as a class C misdemeanor, the prosecution

             12742      of which is suspended according to a diversion agreement.
             12743          (5) The hearing officer may double a suspension period established in Subsection (4) for
             12744      offenses:
             12745          (a) committed in violation of an existing suspension or revocation order issued by the
             12746      courts, division, or Wildlife Board; or
             12747          (b) involving the unlawful taking of a trophy animal, as defined in Section 23-13-2 .
             12748          (6) (a) A hearing officer may suspend, according to Subsection (2), a person's license or
             12749      permit privileges for a particular license or permit only once for each single criminal episode, as
             12750      defined in Section 76-1-401 .
             12751          (b) If a hearing officer addresses two or more single criminal episodes in a hearing, the
             12752      suspension periods of any license or permit privileges of the same type suspended, according to
             12753      Subsection (2), may run consecutively.
             12754          (c) If a hearing officer suspends, according to Subsection (2), license or permit
             12755      privileges of the type that have been previously suspended by a court, a hearing officer, or the
             12756      Wildlife Board and the suspension period has not expired, the suspension periods may run
             12757      consecutively.
             12758          (7) (a) A hearing officer, appointed by the division, may suspend a person's privilege of
             12759      applying for, purchasing, and exercising the benefits conferred by a certificate of registration if:
             12760          (i) the hearing officer determines the person intentionally, knowingly, or recklessly, as
             12761      defined in Section 76-2-103 , violated:
             12762          (A) this title;
             12763          (B) a rule or order of the Wildlife Board;
             12764          (C) the terms of a certificate of registration; or
             12765          (D) the terms of a certificate of registration application or agreement; or
             12766          (ii) the person, in a court of law:
             12767          (A) is convicted of an offense that the hearing officer determines bears a reasonable
             12768      relationship to the person's ability to safely and responsibly perform the activities authorized by
             12769      the certificate of registration;

             12770          (B) pleads guilty or no contest to an offense that the hearing officer determines bears a
             12771      reasonable relationship to the person's ability to safely and responsibly perform the activities
             12772      authorized by the certificate of registration, and the plea is held in abeyance in accordance with
             12773      a plea in abeyance agreement; or
             12774          (C) is charged with an offense that the hearing officer determines bears a reasonable
             12775      relationship to the person's ability to safely and responsibly perform the activities authorized by
             12776      the certificate of registration, and prosecution of the offense is suspended in accordance with a
             12777      diversion agreement.
             12778          (b) All certificates of registration for the harvesting of brine shrimp eggs, as defined in
             12779      Section 59-23-3 , shall be suspended by a hearing officer, if the hearing officer determines the
             12780      holder of the certificates of registration has violated Section 59-23-5 .
             12781          (8) (a) The director shall appoint a qualified person as a hearing officer to perform the
             12782      adjudicative functions provided in this section.
             12783          (b) The director may not appoint a division employee who investigates or enforces
             12784      wildlife violations.
             12785          (9) (a) The courts may suspend, in criminal sentencing, a person's privilege to apply for,
             12786      purchase, or exercise the benefits conferred by a license, permit, or certificate of registration.
             12787          (b) The courts shall promptly notify the division of any suspension orders or
             12788      recommendations entered.
             12789          (c) The division, upon receiving notification of suspension from the courts, shall
             12790      prohibit the person from applying for, purchasing, or exercising the benefits conferred by a
             12791      license, permit, or certification of registration for the duration and of the type specified in the
             12792      court order.
             12793          (d) The hearing officer shall consider any recommendation made by a sentencing court
             12794      concerning suspension before issuing a suspension order.
             12795          (10) (a) A person may not apply for, purchase, possess, or attempt to exercise the
             12796      benefits conferred by any permit, license, or certificate of registration specified in an order of
             12797      suspension while that order is in effect.

             12798          (b) Any license possessed or obtained in violation of the order shall be considered
             12799      invalid.
             12800          (c) A person who violates Subsection (10)(a) is guilty of a class B misdemeanor.
             12801          (11) Before suspension under this section, a person must be:
             12802          (a) given written notice of any action the division intends to take; and
             12803          (b) provided with an opportunity for a hearing.
             12804          (12) (a) A person may file an appeal of a hearing officer's decision with the Wildlife
             12805      Board.
             12806          (b) The Wildlife Board shall review the hearing officer's findings and conclusions and
             12807      any written documentation submitted at the hearing.
             12808          (c) The Wildlife Board may:
             12809          (i) take no action;
             12810          (ii) vacate or remand the decision; or
             12811          (iii) amend the period or type of suspension.
             12812          (13) The division shall suspend and reinstate all hunting, fishing, trapping, and falconry
             12813      privileges consistent with Title 23, Chapter 25, Wildlife Violator Compact.
             12814          (14) The Wildlife Board may make rules to implement this section in accordance with
             12815      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             12816          Section 278. Section 23-19-38.2 is amended to read:
             12817           23-19-38.2. Refunds for armed forces or public health or safety organization
             12818      members -- Criteria.
             12819          (1) A member of the United States Armed Forces or public health or public safety
             12820      organization who is mobilized or deployed on order in the interest of national defense or
             12821      emergency and is precluded from using a purchased license, certificate, tag, or permit, may, as
             12822      provided in Subsection (2):
             12823          (a) receive a refund from the division; and
             12824          (b) if the person has drawn a permit, have all opportunities to draw that permit in a
             12825      future draw reinstated.

             12826          (2) To qualify, the person or a legal representative must:
             12827          (a) notify the division within a reasonable amount of time that the person is applying for
             12828      a refund;
             12829          (b) surrender the license, certificate, tag, or permit to the division; and
             12830          (c) furnish satisfactory proof to the division that the person:
             12831          (i) is a member of:
             12832          (A) the United States Armed Forces;
             12833          (B) a public health organization; or
             12834          (C) a public safety organization; and
             12835          (ii) was precluded from using the license, certificate, tag, or permit as a result of being
             12836      called to active duty.
             12837          (3) The Wildlife Board may adopt rules in accordance with [Title 63, Chapter 46a] Title
             12838      63G, Chapter 3, Utah Administrative Rulemaking Act, necessary to administer this section
             12839      including allowing retroactive refund to September 11, 2001.
             12840          Section 279. Section 23-21-2.3 is amended to read:
             12841           23-21-2.3. Review and adoption of management plans.
             12842          (1) The division shall submit the draft management plan to the Resource Development
             12843      Coordinating Committee created in Section [ 63-38d-501 ] 63J-4-501 and the Habitat Council
             12844      created by the division for their review and recommendations.
             12845          (2) The division shall submit the draft management plan and any recommendations
             12846      received from the Resource Development Coordinating Committee and the Habitat Council to:
             12847          (a) the regional advisory council for the wildlife region in which the lands covered by
             12848      the management plan are located; and
             12849          (b) the regional advisory council for any wildlife region that may be affected by the
             12850      management plan.
             12851          (3) Each regional advisory council reviewing the draft management plan may make
             12852      recommendations to the division director.
             12853          (4) The division director has authority to adopt the management plan, adopt the plan

             12854      with amendments, or reject the plan.
             12855          (5) At the request of the division director or any member of the Wildlife Board, the
             12856      Wildlife Board may review a management plan to determine whether the plan is consistent with
             12857      board policies.
             12858          (6) The division director may amend a management plan in accordance with
             12859      recommendations made by the Wildlife Board.
             12860          Section 280. Section 23-24-1 is amended to read:
             12861           23-24-1. Procedure to obtain compensation for livestock damage done by bear,
             12862      mountain lion, or eagle.
             12863          (1) As used in this section:
             12864          (a) "Damage" means injury or loss to livestock.
             12865          (b) "Division" means the Division of Wildlife Resources.
             12866          (c) "Livestock" means cattle, sheep, goats, or turkeys.
             12867          (2) (a) When livestock are damaged by a bear, mountain lion, or an eagle, the owner
             12868      may receive compensation for the fair market value of the damage.
             12869          (b) To obtain this compensation, the owner of the damaged livestock shall notify the
             12870      division of the damage as soon as possible, but no later than four days after the damage is
             12871      discovered.
             12872          (c) The owner must notify the division each time any damage is discovered.
             12873          (3) The livestock owner shall file a proof of loss form, provided by the division, no later
             12874      than 30 days after the original notification of damage was given to the division by the owner.
             12875          (4) (a) (i) The division, with the assistance of the Department of Agriculture and Food
             12876      shall:
             12877          (A) within 30 days after the owner files the proof of loss form, either accept or deny the
             12878      claim for damages; and
             12879          (B) subject to Subsections (4)(a)(ii) through (4)(a)(iv), pay all accepted claims to the
             12880      extent money appropriated by the Legislature is available for this purpose.
             12881          (ii) Money appropriated from the Wildlife Resources Account may be used to provide

             12882      compensation for only up to 50% of the fair market value of any damaged livestock.
             12883          (iii) Money appropriated from the Wildlife Resources Account may not be used to
             12884      provide compensation for livestock damaged by an eagle.
             12885          (iv) The division may not pay any eagle damage claim until the division has paid all
             12886      accepted mountain lion and bear damage claims for the fiscal year.
             12887          (b) The division may not pay mountain lion, bear, or eagle damage claims to a livestock
             12888      owner unless the owner has filed a completed livestock form and the appropriate fee as outlined
             12889      in Section 4-23-7 for the immediately preceding and current year.
             12890          (c) (i) Unless the division denies a claim for the reason identified in Subsection (4)(b),
             12891      the owner may appeal the decision to a panel consisting of one person selected by the owner,
             12892      one person selected by the division, and a third person selected by the first two panel members.
             12893          (ii) The panel shall decide whether the division should pay all of the claim, a portion of
             12894      the claim, or none of the claim.
             12895          (5) By following the procedures and requirements of [Title 63, Chapter 46a] Title 63G,
             12896      Chapter 3, Utah Administrative Rulemaking Act, the Wildlife Board may make and enforce
             12897      rules to administer and enforce this section.
             12898          Section 281. Section 24-1-19 is amended to read:
             12899           24-1-19. Crime Reduction Assistance Program.
             12900          (1) There is created the Crime Reduction Assistance Program.
             12901          (2) The program shall fund crime prevention and law enforcement activities that have
             12902      the purpose of:
             12903          (a) deterring crime by depriving criminals of the profits and proceeds of their illegal
             12904      activities;
             12905          (b) weakening criminal enterprises by removing the instrumentalities of crime;
             12906          (c) reducing crimes involving substance abuse by supporting the creation,
             12907      administration, or operation of drug court programs throughout the state;
             12908          (d) encouraging cooperation between local, state, and multijurisdictional law
             12909      enforcement agencies;

             12910          (e) allowing the costs and expenses of law enforcement to be defrayed by the forfeited
             12911      proceeds of crime; and
             12912          (f) increasing the equitability and accountability of the use of forfeited property used to
             12913      assist law enforcement in reducing and preventing crime.
             12914          (3) (a) When property is forfeited under this chapter and transferred to the fund, the
             12915      Commission on Criminal and Juvenile Justice shall make awards of monies from the fund to
             12916      state, local, or multijurisdictional law enforcement agencies or political subdivisions of the state
             12917      in compliance with this section and to further the program purposes under Subsection (2).
             12918          (b) In granting the awards, the Commission on Criminal and Juvenile Justice shall
             12919      ensure that the amount of each award takes into consideration:
             12920          (i) the demonstrated needs of the agency;
             12921          (ii) the demonstrated ability of the agency to appropriately use the award;
             12922          (iii) the degree to which the agency's need is offset through the agency's participation in
             12923      federal equitable sharing or through other federal and state grant programs; and
             12924          (iv) the agency's cooperation with other state and local agencies and task forces.
             12925          (4) Agencies or political subdivisions shall apply for program awards by completing and
             12926      submitting forms specified by the Commission on Criminal and Juvenile Justice.
             12927          (5) Applying agencies or political subdivisions shall demonstrate compliance with all
             12928      reporting and policy requirements applicable under this chapter and under [Title 63, Chapter
             12929      25a] Title 63M, Chapter 7, Criminal Justice and Substance Abuse, in order to qualify as a
             12930      potential award recipient.
             12931          (6) Recipient law enforcement agencies may only use program award monies after
             12932      approval or appropriation by the agency's legislative body, and the award monies are
             12933      nonlapsing.
             12934          (7) A recipient law enforcement agency or political subdivision shall use program
             12935      awards only for law enforcement or controlled substance law enforcement purposes as
             12936      described in Subsection (8), and only as these purposes are specified by the agency or political
             12937      subdivision in its application for the award.

             12938          (8) Permissible law enforcement purposes for which award monies may be used include:
             12939          (a) controlled substance interdiction and enforcement activities;
             12940          (b) drug court programs;
             12941          (c) activities calculated to enhance future investigations;
             12942          (d) law enforcement training that includes:
             12943          (i) implementation of the Fourth Amendment of the federal constitution and Utah
             12944      Constitution Article I, Section 7, and addresses the protection of the individual's rights of due
             12945      process;
             12946          (ii) protection of the rights of innocent property holders; and
             12947          (iii) the Tenth Amendment of the federal constitution regarding states' sovereignty and
             12948      the states' reserved rights;
             12949          (e) law enforcement or detention facilities;
             12950          (f) law enforcement operations or equipment which are not routine costs or operational
             12951      expenses;
             12952          (g) drug, gang, or crime prevention education programs which are sponsored in whole
             12953      or in part by the law enforcement agency or its legislative body; and
             12954          (h) matching funds for other state or federal law enforcement grants.
             12955          (9) Law enforcement purposes for which award monies may not be granted or used
             12956      include:
             12957          (a) payment of salaries, retirement benefits, or bonuses to any person;
             12958          (b) payment of enforcement expenses not related to law enforcement;
             12959          (c) uses not specified in the agency's award application;
             12960          (d) uses not approved or appropriated by the agency's legislative body;
             12961          (e) payments, transfers, or pass-through funding to entities other than law enforcement
             12962      agencies; or
             12963          (f) uses, payments, or expenses that are not within the scope of the agency's functions.
             12964          (10) For each fiscal year, any state, local, or multijurisdictional agency or political
             12965      subdivision that received a program award shall prepare, and file with the Utah Commission on

             12966      Criminal and Juvenile Justice and the state auditor, a report in a form specified by the Utah
             12967      Commission on Criminal and Juvenile Justice. The report shall include the following regarding
             12968      each award:
             12969          (a) the agency's name;
             12970          (b) the amount of the award;
             12971          (c) the date of the award;
             12972          (d) how the award has been used; and
             12973          (e) a statement signed by both the agency's or political subdivision's executive officer or
             12974      designee and by the agency's legal counsel, that:
             12975          (i) the agency or political subdivision has complied with all inventory, policy, and
             12976      reporting requirements of this chapter;
             12977          (ii) all program awards were used for crime reduction or law enforcement purposes as
             12978      specified in the application; and
             12979          (iii) and only upon approval or appropriation by the agency's or political subdivision's
             12980      legislative body.
             12981          (11) The Utah Commission on Criminal and Juvenile Justice shall report in writing to
             12982      the legislative Law Enforcement and Criminal Justice Interim Committee annually regarding the
             12983      forfeited property transferred to the fund, awards made by the program, uses of program
             12984      awards, and any equitable share of property forfeited by the federal government as reported by
             12985      agencies pursuant to Subsection 24-1-15 (3).
             12986          Section 282. Section 26-1-4.1 is amended to read:
             12987           26-1-4.1. Department procedures -- Adjudicative proceedings.
             12988          The Department of Health shall comply with the procedures and requirements of [Title
             12989      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
             12990      proceedings.
             12991          Section 283. Section 26-1-5 is amended to read:
             12992           26-1-5. Rules of department.
             12993          (1) Except in areas regulated by statutory committees created by this title, the

             12994      department shall have the power to adopt, amend, or rescind rules necessary to carry out the
             12995      provisions of this title.
             12996          (2) Rules shall have the force and effect of law and may deal with matters which
             12997      materially affect the security of health or the preservation and improvement of public health in
             12998      the state, and any matters as to which jurisdiction is conferred upon the department by this title.
             12999          (3) Every rule adopted by the department pursuant to this section, or a committee
             13000      established under Section 26-1-7 or 26-1-7.5 , shall be subject to [Title 63, Chapter 46a] Title
             13001      63G, Chapter 3, Utah Administrative Rulemaking Act and shall become effective at the time and
             13002      in the manner provided in that act.
             13003          (4) If, at the next general session of the legislature following the filing of a rule with the
             13004      legislative research director, the legislature passes a bill disapproving such rule, the rule shall be
             13005      null and void.
             13006          (5) The department or a committee created under Section 26-1-7 or 26-1-7.5 , shall not
             13007      adopt a rule identical to a rule disapproved under Subsection (4) of this section, before the
             13008      beginning of the next general session of the legislature following the general session at which
             13009      the rule was disapproved.
             13010          Section 284. Section 26-1-6 is amended to read:
             13011           26-1-6. Fee schedule adopted by department.
             13012          (1) The department may adopt a schedule of fees that may be assessed for services
             13013      rendered by the department, provided that the fees are:
             13014          (a) reasonable and fair; and
             13015          (b) submitted to the Legislature as part of the department's annual appropriations
             13016      request.
             13017          (2) When the department submits a fee schedule to the Legislature, the Legislature, in
             13018      accordance with Section [ 63-38-3.2 ] 63J-1-303 , may:
             13019          (a) approve the fee;
             13020          (b) increase or decrease and approve the fee; or
             13021          (c) reject any fee submitted to it.

             13022          (3) Fees approved by the Legislature pursuant to this section shall be paid into the state
             13023      treasury in accordance with Section [ 63-38-9 ] 63J-1-404 .
             13024          Section 285. Section 26-1-7.1 is amended to read:
             13025           26-1-7.1. Committee procedures -- Adjudicative proceedings.
             13026          All committees created by Section 26-1-7 shall comply with the procedures and
             13027      requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in
             13028      their adjudicative proceedings.
             13029          Section 286. Section 26-1-17.5 is amended to read:
             13030           26-1-17.5. Confidential records.
             13031          (1) A record classified as confidential under this title shall remain confidential, and be
             13032      released according to the provisions of this title, notwithstanding Section [ 63-2-909 ]
             13033      63G-2-310 .
             13034          (2) In addition to those persons granted access to records described in Subsection
             13035      [ 63-2-302 ] 63G-2-302 (1)(b), immunization records may be shared among schools, school
             13036      districts, and local and state health departments and the state Department of Human Services as
             13037      necessary to assure compliance with Section 53A-11-301 and to prevent, investigate, and
             13038      control the causes of epidemic, infectious, communicable, and other diseases affecting the public
             13039      health.
             13040          Section 287. Section 26-1-21 is amended to read:
             13041           26-1-21. Disposal of property by department.
             13042          (1) The department may dispose of any personal property owned by it or any of the
             13043      entities created under Section 26-1-13 , in the manner provided in [Title 63, Chapter 17] Title
             13044      63A, Chapter 9, Part 8, Surplus Property Service.
             13045          (2) The department may dispose of any real property owned by it or any of the entities
             13046      created under Section 26-1-13 , in the manner provided in Title 65A, Chapter 4.
             13047          Section 288. Section 26-2-22 is amended to read:
             13048           26-2-22. Inspection of vital records.
             13049          (1) (a) The vital records shall be open to inspection, but only in compliance with the

             13050      provisions of this chapter, department rules, and Section 78-30-18 .
             13051          (b) It is unlawful for any state or local officer or employee to disclose data contained in
             13052      vital records contrary to this chapter or department rule.
             13053          (c) A custodian of vital records may permit inspection of a vital record or issue a
             13054      certified copy of a record or a part of a record when the custodian is satisfied that the applicant
             13055      has demonstrated a direct, tangible, and legitimate interest.
             13056          (2) A direct, tangible, and legitimate interest in a vital record is present only if:
             13057          (a) the request is from the subject, a member of the subject's immediate family, the
             13058      guardian of the subject, or a designated legal representative;
             13059          (b) the request involves a personal or property right of the subject of the record;
             13060          (c) the request is for official purposes of a state, local, or federal governmental agency;
             13061          (d) the request is for a statistical or medical research program and prior consent has
             13062      been obtained from the state registrar; or
             13063          (e) the request is a certified copy of an order of a court of record specifying the record
             13064      to be examined or copied.
             13065          (3) For purposes of Subsection (2):
             13066          (a) "immediate family member" means a spouse, child, parent, sibling, grandparent, or
             13067      grandchild;
             13068          (b) a designated legal representative means an attorney, physician, funeral service
             13069      director, genealogist, or other agent of the subject or the subject's immediate family who has
             13070      been delegated the authority to access vital records;
             13071          (c) except as provided in Title 78, Chapter 30, Adoption, a parent, or the immediate
             13072      family member of a parent, who does not have legal or physical custody of or visitation or
             13073      parent-time rights for a child because of the termination of parental rights pursuant to Title 78,
             13074      Chapter 3a, Juvenile Court Act of 1996, or by virtue of consenting to or relinquishing a child
             13075      for adoption pursuant to Title 78, Chapter 30, Adoption, may not be considered as having a
             13076      direct, tangible, and legitimate interest; and
             13077          (d) a commercial firm or agency requesting names, addresses, or similar information

             13078      may not be considered as having a direct, tangible, and legitimate interest.
             13079          (4) Upon payment of a fee established in accordance with Section [ 63-38-3.2 ]
             13080      63J-1-303 , the following records shall be available to the public:
             13081          (a) except as provided in Subsection 26-2-10 (4)(b), a birth record, excluding
             13082      confidential information collected for medical and health use, if 100 years or more have passed
             13083      since the date of birth;
             13084          (b) a death record if 50 years or more have passed since the date of death; and
             13085          (c) a vital record not subject to Subsection (4)(a) or (b) if 75 years or more have passed
             13086      since the date of the event upon which the record is based.
             13087          Section 289. Section 26-6b-1 is amended to read:
             13088           26-6b-1. Applicability of chapter -- Administrative procedures.
             13089          (1) This chapter applies to involuntary examination, treatment, isolation, and quarantine
             13090      actions applied to individuals or groups of individuals by the department or a local health
             13091      department.
             13092          (2) The provisions of this chapter supersede the provisions of [Title 63, Chapter 46b]
             13093      Title 63G, Chapter 4, Administrative Procedures Act.
             13094          (3) The Department of Health may adopt rules in accordance with [Title 63, Chapter
             13095      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, as necessary to administer the
             13096      provisions of this chapter.
             13097          Section 290. Section 26-8a-104 is amended to read:
             13098           26-8a-104. Committee powers.
             13099          The committee shall adopt rules in accordance with [Title 63, Chapter 46a] Title 63G,
             13100      Chapter 3, Utah Administrative Rulemaking Act, that:
             13101          (1) establish certification and reciprocity requirements under Section 26-8a-302 ;
             13102          (2) establish designation requirements under Section 26-8a-303 ;
             13103          (3) promote the development of a statewide emergency medical services system under
             13104      Section 26-8a-203 ;
             13105          (4) establish insurance requirements for ambulance providers;

             13106          (5) provide guidelines for requiring patient data under Section 26-8a-203 ;
             13107          (6) establish criteria for awarding grants under Section 26-8a-207 ;
             13108          (7) establish requirements for the coordination of emergency medical services and the
             13109      medical supervision of emergency medical service providers under Section 26-8a-306 ; and
             13110          (8) are necessary to carry out the responsibilities of the committee as specified in other
             13111      sections of this chapter.
             13112          Section 291. Section 26-8a-105 is amended to read:
             13113           26-8a-105. Department powers.
             13114          The department shall:
             13115          (1) coordinate the emergency medical services within the state;
             13116          (2) administer this chapter and the rules established pursuant to it;
             13117          (3) establish a voluntary task force representing a diversity of emergency medical
             13118      service providers to advise the department and the committee on rules; and
             13119          (4) adopt rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             13120      Administrative Rulemaking Act, to:
             13121          (a) license ambulance providers and paramedic providers;
             13122          (b) permit ambulances and emergency response vehicles;
             13123          (c) establish application, submission, and procedural requirements for licenses,
             13124      designations, certificates, and permits; and
             13125          (d) establish and implement the programs, plans, and responsibilities as specified in
             13126      other sections of this chapter.
             13127          Section 292. Section 26-8a-207 is amended to read:
             13128           26-8a-207. Emergency medical services grant program.
             13129          (1) (a) The department shall receive as dedicated credits the amount established in
             13130      Section [ 63-63a-3 ] 51-9-403 . That amount shall be transferred to the department by the
             13131      Division of Finance from funds generated by the surcharge imposed under [Title 63, Chapter
             13132      63a] Title 51, Chapter 9, Part 4, Crime Victims Reparations Trust, Public Safety Support
             13133      Funds, Substance Abuse Prevention Account, and Services for Victims of Domestic Violence

             13134      Account.
             13135          (b) Funds transferred to the department under this section shall be used for
             13136      improvement of statewide delivery of emergency medical services and administrative costs as
             13137      described in Subsection (2)(a). Appropriations to the department for the purposes enumerated
             13138      in this section shall be made from those dedicated credits.
             13139          (c) All funding for the program created by this section shall be nonlapsing.
             13140          (2) (a) The department may use the funds transferred to it under Subsection (1):
             13141          (i) to provide staff support; and
             13142          (ii) for other expenses incurred in:
             13143          (A) administration of grant funds; and
             13144          (B) other department administrative costs under this chapter.
             13145          (b) After funding staff support, administrative expenses, and trauma system
             13146      development, the department and the committee shall make emergency medical services grants
             13147      from the remaining funds received as dedicated credits under Subsection (1). A recipient of a
             13148      grant under this Subsection (2)(b) must actively provide emergency medical services within the
             13149      state.
             13150          (i) The department shall distribute 42-1/2% as per capita block grants for use specifically
             13151      related to the provision of emergency medical services to nonprofit prehospital emergency
             13152      medical services providers that are either licensed or designated and to emergency medical
             13153      services that are the primary emergency medical services for a service area. The department
             13154      shall determine the grant amounts by prorating available funds on a per capita basis by county as
             13155      described in department rule.
             13156          (ii) The committee shall award 42-1/2% of the remaining funds as competitive grants for
             13157      use specifically related to the provision of emergency medical services based upon rules
             13158      established by the committee.
             13159          (iii) The committee shall use 15% of the remaining funds to fund high school emergency
             13160      medical training programs.
             13161          Section 293. Section 26-8a-310 is amended to read:

             13162           26-8a-310. Criminal background check.
             13163          (1) At the time of application for, or renewal of, a certificate, the department shall
             13164      obtain, at the applicant's expense, information from a criminal history record or warrant of
             13165      arrest information maintained by the Department of Public Safety pursuant to Title 53, Chapter
             13166      10, Part 2, Bureau of Criminal Identification, to determine whether the individual has been
             13167      convicted of a crime that bears upon [his] the individual's fitness to be certified or to have
             13168      responsibility for the safety and well-being of children, the elderly, or persons with disabilities.
             13169          (2) (a) An applicant who has not had residency in the state for the last five years shall
             13170      submit fingerprints and other identifying information.
             13171          (b) The department shall submit fingerprints obtained under Subsection (2)(a) to the
             13172      Department of Public Safety to be forwarded to the Federal Bureau of Investigation for a
             13173      nationwide criminal history record check to determine whether the individual has been
             13174      convicted of a crime that bears upon [his] the individual's fitness to be certified or to have
             13175      responsibility for the safety and well-being of children, the elderly, or persons with disabilities.
             13176          (3) The department shall have access to juvenile court records to determine whether the
             13177      applicant has been adjudicated in juvenile court of committing an act which if committed by an
             13178      adult would be a felony or misdemeanor and that bears upon the applicant's fitness to be
             13179      certified or to have responsibility for the safety and well-being of children, the elderly, or
             13180      persons with disabilities if:
             13181          (a) the applicant is under the age of 28; or
             13182          (b) the applicant is over the age of 28 and has been convicted, has pleaded no contest,
             13183      or is currently subject to a plea in abeyance or diversion agreement for a felony or misdemeanor.
             13184          (4) Information obtained pursuant to Subsections (1) through (3) may be used to:
             13185          (a) withhold certification or renewal;
             13186          (b) commence or substantiate disciplinary action under Section 26-8a-503 ;
             13187          (c) enforce the provisions of this chapter; and
             13188          (d) notify the individual's employer as necessary to protect the public.
             13189          (5) The department shall adopt rules under [Title 63, Chapter 46a] Title 63G, Chapter

             13190      3, Utah Administrative Rulemaking Act, consistent with this chapter, defining the circumstances
             13191      under which an applicant who has been convicted of a criminal offense may receive a
             13192      certification under this chapter.
             13193          Section 294. Section 26-8a-404 is amended to read:
             13194           26-8a-404. Ground ambulance and paramedic licenses -- Application and
             13195      department review.
             13196          (1) Except as provided in Section 26-8a-413 , an applicant for a ground ambulance or
             13197      paramedic license shall apply to the department for a license only by:
             13198          (a) submitting a completed application;
             13199          (b) providing information in the format required by the department; and
             13200          (c) paying the required fees, including the cost of the hearing officer.
             13201          (2) The department shall make rules establishing minimum qualifications and
             13202      requirements for:
             13203          (a) personnel;
             13204          (b) capital reserves;
             13205          (c) equipment;
             13206          (d) a business plan;
             13207          (e) operational procedures;
             13208          (f) medical direction agreements;
             13209          (g) management and control; and
             13210          (h) other matters that may be relevant to an applicant's ability to provide ground
             13211      ambulance or paramedic service.
             13212          (3) An application for a license to provide ground ambulance service or paramedic
             13213      service shall be for all ground ambulance services or paramedic services arising within the
             13214      geographic service area, except that an applicant may apply for a license for less than all ground
             13215      ambulance services or all paramedic services arising within an exclusive geographic area if it can
             13216      demonstrate how the remainder of that area will be served.
             13217          (4) (a) A ground ambulance service licensee may apply to the department for a license

             13218      to provide a higher level of service as defined by department rule if:
             13219          (i) the application for the license is limited to non-911 ambulance or paramedic services;
             13220      and
             13221          (ii) the application includes:
             13222          (A) a copy of the new treatment protocols for the higher level of service approved by
             13223      the off-line medical director;
             13224          (B) an assessment of field performance by the applicant's off-line director; and
             13225          (C) an updated plan of operation demonstrating the ability of the applicant to provide
             13226      the higher level of service.
             13227          (b) If the department determines that the applicant has demonstrated the ability to
             13228      provide the higher level of service in accordance with Subsection (4)(a), the department shall
             13229      issue a revised license reflecting the higher level of service and the requirements of Section
             13230      26-8a-408 do not apply.
             13231          (5) Upon receiving a completed application and the required fees, the department shall
             13232      review the application and determine whether the application meets the minimum qualifications
             13233      and requirements for licensure.
             13234          (6) The department may deny an application if it finds that it contains any materially
             13235      false or misleading information, is incomplete, or if the application demonstrates that the
             13236      applicant fails to meet the minimum qualifications and requirements for licensure under
             13237      Subsection (2).
             13238          (7) If the department denies an application, it shall notify the applicant in writing setting
             13239      forth the grounds for the denial. A denial may be appealed under [Title 63, Chapter 46b] Title
             13240      63G, Chapter 4, Administrative Procedures Act.
             13241          Section 295. Section 26-8a-405.3 is amended to read:
             13242           26-8a-405.3. Use of competitive sealed proposals -- Procedure -- Appeal rights.
             13243          (1) (a) Competitive sealed proposals for paramedic or 911 ambulance services under
             13244      Section 26-8a-405.2 shall be solicited through a request for proposal and the provisions of this
             13245      section.

             13246          (b) The governing body of the political subdivision shall approve the request for
             13247      proposal prior to the notice of the request for proposals under Subsection (1)(c).
             13248          (c) Notice of the request for proposals must be published at least once a week for three
             13249      consecutive weeks in a newspaper of general circulation published in the county, or if there is
             13250      no such newspaper, then notice must be posted for at least 20 days in at least five public places
             13251      in the county.
             13252          (2) (a) Proposals shall be opened so as to avoid disclosure of contents to competing
             13253      offerors during the process of negotiations.
             13254          (b) (i) Subsequent to the published notice, and prior to selecting an applicant, the
             13255      political subdivision must hold a presubmission conference with interested applicants for the
             13256      purpose of assuring full understanding of, and responsiveness to, solicitation requirements.
             13257          (ii) A political subdivision shall allow at least 90 days from the presubmission
             13258      conference for the proposers to submit proposals.
             13259          (c) Subsequent to the presubmission conference, the political subdivision may issue
             13260      addenda to the request for proposals. An addenda to a request for proposal must be finalized
             13261      and posted by the political subdivision at least 45 days prior to the date on which the proposal
             13262      must be submitted.
             13263          (d) Offerors to the request for proposals shall be accorded fair and equal treatment with
             13264      respect to any opportunity for discussion and revisions of proposals, and revisions may be
             13265      permitted after submission and before a contract is awarded for the purpose of obtaining best
             13266      and final offers.
             13267          (e) In conducting discussions, there shall be no disclosures of any information derived
             13268      from proposals submitted by competing offerors.
             13269          (3) (a) (i) A political subdivision may select an applicant approved by the department
             13270      under Section 26-8a-404 to provide 911 ambulance or paramedic services by contract to the
             13271      most responsible offeror as defined in Subsection [ 63-56-105 ] 63G-6-103 (24).
             13272          (ii) An award under Subsection (3)(a)(i) shall be made to the responsible offeror whose
             13273      proposal is determined in writing to be the most advantageous to the political subdivision,

             13274      taking into consideration price and the evaluation factors set forth in the request for proposal.
             13275          (b) The applicants who are approved under Section 26-8a-405 and who are selected
             13276      under this section may be the political subdivision issuing the request for competitive sealed
             13277      proposals, or any other public entity or entities, any private person or entity, or any combination
             13278      thereof.
             13279          (c) A political subdivision may reject all of the competitive proposals.
             13280          (4) In seeking competitive sealed proposals and awarding contracts under this section, a
             13281      political subdivision:
             13282          (a) shall apply the public convenience and necessity factors listed in Subsections
             13283      26-8a-408 (2) through (6);
             13284          (b) shall require the applicant responding to the proposal to disclose how the applicant
             13285      will meet performance standards in the request for proposal;
             13286          (c) may not require or restrict an applicant to a certain method of meeting the
             13287      performance standards, including:
             13288          (i) requiring ambulance medical personnel to also be a firefighter; or
             13289          (ii) mandating that offerors use fire stations or dispatch services of the political
             13290      subdivision;
             13291          (d) (i) shall require an applicant to submit the proposal based on full cost accounting in
             13292      accordance with generally accepted accounting principals; and
             13293          (ii) if the applicant is a governmental entity, in addition to the requirements of
             13294      Subsection (4)(e)(i), in accordance with generally accepted government auditing standards and
             13295      in compliance with the State of Utah Legal Compliance Audit Guide; and
             13296          (e) shall set forth in the request for proposal:
             13297          (i) the method for determining full cost accounting in accordance with generally
             13298      accepted accounting principles, and require an applicant to submit the proposal based on such
             13299      full cost accounting principles;
             13300          (ii) guidelines established to further competition and provider accountability; and
             13301          (iii) a list of the factors that will be considered by the political subdivision in the award

             13302      of the contract, including by percentage, the relative weight of the factors established under this
             13303      Subsection (4)(e), which may include such things as:
             13304          (A) response times;
             13305          (B) staging locations;
             13306          (C) experience;
             13307          (D) quality of care; and
             13308          (E) cost, consistent with the cost accounting method in Subsection (4)(e)(i).
             13309          (5) (a) Notwithstanding the provisions of Subsection [ 63-56-102 ] 63G-6-104 (3), the
             13310      provisions of [Title 63, Chapter 56] Title 63G, Chapter 6, Part 8, Legal and Contractual
             13311      Remedies, apply to the procurement process required by this section, except as provided in
             13312      Subsection (5)(c).
             13313          (b) The Procurement Appeals Board created in Section [ 63-56-807 ] 63G-6-807 shall
             13314      have jurisdiction to review and determine an appeal of an offeror under this section in the same
             13315      manner as provided in Section [ 63-56-810 ] 63G-6-810 .
             13316          (c) (i) An offeror may appeal the solicitation or award as provided by the political
             13317      subdivision's procedures. After all political subdivision appeal rights are exhausted, the offeror
             13318      may appeal under the provisions of Subsections (5)(a) and (b).
             13319          (ii) The factual determination required by Subsection [ 63-56-813 ] 63G-6-813 (1) shall
             13320      be based on whether the solicitation or award was made in accordance with the procedures set
             13321      forth in this section and Section 26-8a-405.2 .
             13322          (d) The determination of an issue of fact by the appeals board shall be final and
             13323      conclusive unless arbitrary and capricious or clearly erroneous as provided in Section
             13324      [ 63-56-813 ] 63G-6-813 .
             13325          Section 296. Section 26-8a-407 is amended to read:
             13326           26-8a-407. Ground ambulance and paramedic licenses -- Proceedings.
             13327          (1) The presiding officer shall:
             13328          (a) commence an informal adjudicative proceeding within 120 days of receiving a
             13329      completed application;

             13330          (b) meet with the applicant and objecting interested parties and provide no less than 120
             13331      days for a negotiated resolution, consistent with the criteria in Section 26-8a-408 ;
             13332          (c) set aside a separate time during the proceedings to accept public comment on the
             13333      application; and
             13334          (d) present a written decision to the executive director if a resolution has been reached
             13335      that satisfies the criteria in Section 26-8a-408 .
             13336          (2) At any time during an informal adjudicative proceeding under Subsection (1), any
             13337      party may request conversion of the informal adjudicative proceeding to a formal adjudicative
             13338      proceeding in accordance with Section [ 63-46b-4 ] 63G-4-202 .
             13339          (3) Upon conversion to a formal adjudicative proceeding, a hearing officer shall be
             13340      assigned to the application as provided in Section 26-8a-409 . The hearing office shall:
             13341          (a) set aside a separate time during the proceedings to accept public comment on the
             13342      application;
             13343          (b) apply the criteria established in Section 26-8a-408 ; and
             13344          (c) present a recommended decision to the executive director in writing.
             13345          (4) The executive director may, as set forth in a final written order, accept, modify,
             13346      reject, or remand the decision of a presiding or hearing officer after:
             13347          (a) reviewing the record;
             13348          (b) giving due deference to the officer's decision; and
             13349          (c) determining whether the criteria in Section 26-8a-408 have been satisfied.
             13350          Section 297. Section 26-8a-414 is amended to read:
             13351           26-8a-414. Annexations.
             13352          (1) A municipality shall comply with the provisions of this section if the municipality is
             13353      licensed under this chapter and desires to provide service to an area that is:
             13354          (a) included in a petition for annexation under Title 10, Chapter 2, Part 4, Annexation;
             13355      and
             13356          (b) currently serviced by another provider licensed under this chapter.
             13357          (2) (a) (i) At least 45 days prior to approving a petition for annexation, the municipality

             13358      shall certify to the department that by the time of the approval of the annexation the
             13359      municipality can meet or exceed the current level of service provided by the existing licensee for
             13360      the annexed area by meeting the requirements of Subsections (2)(b)(ii)(A) through (D); and
             13361          (ii) no later than three business days after the municipality files a petition for annexation
             13362      in accordance with Section 10-2-403 , provide written notice of the petition for annexation to:
             13363          (A) the existing licensee providing service to the area included in the petition of
             13364      annexation; and
             13365          (B) the department.
             13366          (b) (i) After receiving a certification under Subsection (2)(a), but prior to the
             13367      municipality approving a petition for annexation, the department may audit the municipality only
             13368      to verify the requirements of Subsections (2)(b)(ii)(A) through (D).
             13369          (ii) If the department elects to conduct an audit, the department shall make a finding
             13370      that the municipality can meet or exceed the current level of service provided by the existing
             13371      licensee for the annexed area if the department finds that the municipality has or will have by the
             13372      time of the approval of the annexation:
             13373          (A) adequate trained personnel to deliver basic and advanced life support services;
             13374          (B) adequate apparatus and equipment to deliver emergency medical services;
             13375          (C) adequate funding for personnel and equipment; and
             13376          (D) appropriate medical controls, such as a medical director and base hospital.
             13377          (iii) The department shall submit the results of the audit in writing to the municipal
             13378      legislative body.
             13379          (3) (a) If the department audit finds that the municipality meets the requirements of
             13380      Subsection (2)(b)(ii), the department shall issue an amended license to the municipality and all
             13381      other affected licensees to reflect the municipality's new boundaries after the department
             13382      receives notice of the approval of the petition for annexation from the municipality in
             13383      accordance with Section 10-2-425 .
             13384          (b) (i) Notwithstanding the provisions of Subsection [ 63-46b-1 ] 63G-4-102 (2)(k), if the
             13385      department audit finds that the municipality fails to meet the requirements of Subsection

             13386      (2)(b)(ii), the municipality may request an adjudicative proceeding under the provisions of [Title
             13387      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act. The municipality may
             13388      approve the petition for annexation while an adjudicative proceeding requested under this
             13389      Subsection (3)(b)(i) is pending.
             13390          (ii) The department shall conduct an adjudicative proceeding when requested under
             13391      Subsection (3)(b)(i).
             13392          (iii) Notwithstanding the provisions of Sections 26-8a-404 through 26-8a-409 , in any
             13393      adjudicative proceeding held under the provisions of Subsection (3)(b)(i), the department bears
             13394      the burden of establishing that the municipality cannot, by the time of the approval of the
             13395      annexation, meet the requirements of Subsection (2)(b)(ii).
             13396          (c) If, at the time of the approval of the annexation, an adjudicative proceeding is
             13397      pending under the provisions of Subsection (3)(b)(i), the department shall issue amended
             13398      licenses if the municipality prevails in the adjudicative proceeding.
             13399          Section 298. Section 26-8a-503 is amended to read:
             13400           26-8a-503. Discipline of emergency medical services personnel.
             13401          (1) The department may refuse to issue a certificate or renewal, or revoke, suspend,
             13402      restrict, or place on probation an individual's certificate if:
             13403          (a) the individual does not meet the qualifications for certification under Section
             13404      26-8a-302 ;
             13405          (b) the individual has engaged in conduct, as defined by committee rule, that:
             13406          (i) is unprofessional;
             13407          (ii) is adverse to the public health, safety, morals, or welfare; or
             13408          (iii) would adversely affect public trust in the emergency medical service system;
             13409          (c) the individual has violated Section 26-8a-502 or other provision of this chapter;
             13410          (d) a court of competent jurisdiction has determined the individual to be mentally
             13411      incompetent for any reason; or
             13412          (e) the individual is unable to provide emergency medical services with reasonable skill
             13413      and safety because of illness, drunkenness, use of drugs, narcotics, chemicals, or any other type

             13414      of material, or as a result of any other mental or physical condition, when the individual's
             13415      condition demonstrates a clear and unjustifiable threat or potential threat to oneself, coworkers,
             13416      or the public health, safety, or welfare that cannot be reasonably mitigated.
             13417          (2) (a) An action to revoke, suspend, restrict, or place a certificate on probation shall be
             13418      done in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             13419      Procedures Act.
             13420          (b) Notwithstanding Subsection (2)(a), the department may issue a cease and desist
             13421      order under Section 26-8a-507 to immediately suspend an individual's certificate pending an
             13422      administrative proceeding to be held within 30 days if there is evidence to show that the
             13423      individual poses a clear, immediate, and unjustifiable threat or potential threat to the public
             13424      health, safety, or welfare.
             13425          (3) An individual whose certificate has been suspended, revoked, or restricted may
             13426      apply for reinstatement of the certificate at reasonable intervals and upon compliance with any
             13427      conditions imposed upon the certificate by statute, committee rule, or the terms of the
             13428      suspension, revocation, or restriction.
             13429          (4) In addition to taking disciplinary action under Subsection (1), the department may
             13430      impose sanctions in accordance with Section 26-23-6 .
             13431          Section 299. Section 26-8a-504 is amended to read:
             13432           26-8a-504. Discipline of designated and licensed providers.
             13433          (1) The department may refuse to issue a license or designation or a renewal, or revoke,
             13434      suspend, restrict, or place on probation, an emergency medical service provider's license or
             13435      designation if the provider has:
             13436          (a) failed to abide by terms of the license or designation;
             13437          (b) violated statute or rule;
             13438          (c) failed to provide services at the level or in the exclusive geographic service area
             13439      required by the license or designation;
             13440          (d) failed to submit a renewal application in a timely fashion as required by department
             13441      rule;

             13442          (e) failed to follow operational standards established by the committee; or
             13443          (f) committed an act in the performance of a professional duty that endangered the
             13444      public or constituted gross negligence.
             13445          (2) (a) An action to revoke, suspend, restrict, or place a license or designation on
             13446      probation shall be done in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4,
             13447      Administrative Procedures Act.
             13448          (b) Notwithstanding Subsection (2)(a), the department may issue a cease and desist
             13449      order under Section 26-8a-507 to immediately suspend a license or designation pending an
             13450      administrative proceeding to be held within 30 days if there is evidence to show that the
             13451      provider or facility poses a clear, immediate, and unjustifiable threat or potential threat to the
             13452      public health, safety, or welfare.
             13453          (3) In addition to taking disciplinary action under Subsection (1), the department may
             13454      impose sanctions in accordance with Section 26-23-6 .
             13455          Section 300. Section 26-15a-102 is amended to read:
             13456           26-15a-102. Definitions.
             13457          (1) "Back country food service establishment" means a federal or state licensed back
             13458      country guiding or outfitting business that:
             13459          (a) provides food services; and
             13460          (b) meets department recognized federal or state food service safety regulations for
             13461      food handlers.
             13462          (2) "Certified food safety manager" means a manager of a food service establishment
             13463      who:
             13464          (a) passes successfully a department-approved examination;
             13465          (b) successfully completes, every three years, renewal requirements established by
             13466      department rule consistent with original certification requirements; and
             13467          (c) submits to the appropriate local health department the documentation required by
             13468      Section 26-15a-106 .
             13469          (3) "Food service establishment" means any place or area within a business or

             13470      organization where potentially hazardous foods are prepared and intended for individual portion
             13471      service and consumption by the general public, whether the consumption is on or off the
             13472      premises, and whether or not a fee is charged for the food.
             13473          (4) "Local health department" means a local health department as defined in Subsection
             13474      26A-1-102 (5).
             13475          (5) "Potentially hazardous foods" shall be defined by the department by administrative
             13476      rule adopted in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             13477      Administrative Rulemaking Act.
             13478          Section 301. Section 26-15a-104 is amended to read:
             13479           26-15a-104. Food service establishment requirements -- Enforcement -- Right of
             13480      appeal.
             13481          (1) Each food service establishment in the state shall be managed by at least one
             13482      full-time certified food safety manager at each establishment site, who need not be present at the
             13483      establishment site during all its hours of operation.
             13484          (2) Within 60 days of the termination of a certified food safety manager's employment
             13485      that results in the food service establishment no longer being in compliance with Subsection (1),
             13486      the food service establishment shall:
             13487          (a) employ a new certified food safety manager; or
             13488          (b) designate another employee to become the establishment's certified food safety
             13489      manager who shall commence a department-approved food safety manager training course.
             13490          (3) Compliance with the 60-day time period provided in Subsection (2) may be
             13491      extended by the local health department for reasonable cause, as determined by the department
             13492      by rule.
             13493          (4) (a) The local health department may determine whether a food service establishment
             13494      is in compliance with this section by visiting the establishment during regular business hours and
             13495      requesting information and documentation about the employment of a certified food safety
             13496      manager.
             13497          (b) If a violation of this section is identified, the local health department shall propose

             13498      remedial action to bring the food service establishment into compliance.
             13499          (c) A food service establishment receiving notice of a violation and proposed remedial
             13500      action from a local health department may appeal the notice of violation and proposed remedial
             13501      action pursuant to procedures established by the local health department, which shall be
             13502      essentially consistent with the provisions of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             13503      Administrative Procedures Act. Notwithstanding the provisions of Section [ 63-46b-15 ]
             13504      63G-4-402 , an appeal of a local health department decision to a district court shall be conducted
             13505      as an original, independent proceeding, and not as a review of the proceedings conducted by the
             13506      local health department. The district court shall give no deference to the findings or conclusions
             13507      of the local health department.
             13508          Section 302. Section 26-15a-105 is amended to read:
             13509           26-15a-105. Exemptions to food service establishment requirements.
             13510          (1) The following are not subject to the provisions of Section 26-15a-104 :
             13511          (a) special events sponsored by municipal or nonprofit civic organizations, including
             13512      food booths at school sporting events and little league athletic events and church functions;
             13513          (b) temporary event food services approved by a local health department;
             13514          (c) vendors and other food service establishments that serve only commercially
             13515      prepackaged foods and beverages as defined by the department by rule;
             13516          (d) private homes not used as a commercial food service establishment;
             13517          (e) health care facilities licensed under Chapter 21, Health Care Facility Licensing and
             13518      Inspection Act;
             13519          (f) bed and breakfast establishments at which the only meal served is a continental
             13520      breakfast as defined by the department by rule;
             13521          (g) residential child care providers;
             13522          (h) child care providers and programs licensed under Chapter 39, Utah Child Care
             13523      Licensing Act;
             13524          (i) back country food service establishments; and
             13525          (j) a lowest risk or permitted food establishment category determined by a risk

             13526      assessment evaluation established by the department by administrative rule adopted in
             13527      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             13528      Act.
             13529          (2) Nothing in this section may be construed as exempting a food service establishment
             13530      described in Subsection (1) from any other applicable food safety laws of this state.
             13531          Section 303. Section 26-18-3 is amended to read:
             13532           26-18-3. Administration of Medicaid program by department -- Disciplinary
             13533      measures and sanctions -- Funds collected.
             13534          (1) The department shall be the single state agency responsible for the administration of
             13535      the Medicaid program in connection with the United States Department of Health and Human
             13536      Services pursuant to Title XIX of the Social Security Act.
             13537          (2) (a) The department shall implement the Medicaid program through administrative
             13538      rules in conformity with this chapter, [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             13539      Administrative Rulemaking Act, the requirements of Title XIX, and applicable federal
             13540      regulations.
             13541          (b) (i) The rules adopted under Subsection (2)(a) shall include, in addition to other rules
             13542      necessary to implement the program, the standards used by the department for determining
             13543      eligibility for Medicaid services, the services and benefits to be covered by the Medicaid
             13544      program, and reimbursement methodologies for providers under the Medicaid program.
             13545          (ii) If the department implements a change in the Medicaid State Plan, initiates a new
             13546      Medicaid waiver, initiates an amendment to an existing Medicaid waiver, or initiates a rate
             13547      change requiring public notice under state or federal law, the department shall, prior to adopting
             13548      the change, report to either the Legislative Executive Appropriations Committee or the
             13549      Legislative Health and Human Services Appropriations Subcommittee and include in the report:
             13550          (A) the proposed change in services or reimbursement;
             13551          (B) the effect of an increase or decrease in services or benefits on individuals and
             13552      families;
             13553          (C) the degree to which any proposed cut may result in cost-shifting to more expensive

             13554      services in health or human service programs; and
             13555          (D) the effect of any proposed increase of benefits or reimbursement on current and
             13556      future appropriations from the Legislature to the department.
             13557          (iii) Any rules adopted by the department under this Subsection (2) are subject to
             13558      review and reauthorization by the Legislature in accordance with Section [ 63-46a-11.5 ]
             13559      63G-3-502 .
             13560          (3) The department may, in its discretion, contract with the Department of Human
             13561      Services or other qualified agencies for services in connection with the administration of the
             13562      Medicaid program, including but not limited to the determination of the eligibility of individuals
             13563      for the program, recovery of overpayments, and enforcement of fraud and abuse laws,
             13564      consistent with Section 26-20-13 , to the extent permitted by law and quality control services.
             13565          (4) The department shall provide, by rule, disciplinary measures and sanctions for
             13566      Medicaid providers who fail to comply with the rules and procedures of the program, provided
             13567      that sanctions imposed administratively may not extend beyond:
             13568          (a) termination from the program;
             13569          (b) recovery of claim reimbursements incorrectly paid; and
             13570          (c) those specified in Section 1919 of Title XIX of the federal Social Security Act.
             13571          (5) Funds collected as a result of a sanction imposed under Section 1919 of Title XIX
             13572      of the federal Social Security Act shall be deposited in the General Fund as nonlapsing
             13573      dedicated credits to be used by the division in accordance with the requirements of that section.
             13574          (6) (a) In determining whether an applicant or recipient is eligible for a service or
             13575      benefit under this part or Chapter 40, Utah Children's Health Insurance Act, the department
             13576      shall, if Subsection (6)(b) is satisfied, exclude from consideration one passenger vehicle
             13577      designated by the applicant or recipient.
             13578          (b) Before Subsection (6)(a) may be applied:
             13579          (i) the federal government must:
             13580          (A) determine that Subsection (6)(a) may be implemented within the state's existing
             13581      public assistance-related waivers as of January 1, 1999;

             13582          (B) extend a waiver to the state permitting the implementation of Subsection (6)(a); or
             13583          (C) determine that the state's waivers that permit dual eligibility determinations for cash
             13584      assistance and Medicaid are no longer valid; and
             13585          (ii) the department must determine that Subsection (6)(a) can be implemented within
             13586      existing funding.
             13587          (7) (a) For purposes of this Subsection (7):
             13588          (i) "aged, blind, or disabled" shall be defined by administrative rule; and
             13589          (ii) "spend down" means an amount of income in excess of the allowable income
             13590      standard that must be paid in cash to the department or incurred through the medical services
             13591      not paid by Medicaid.
             13592          (b) In determining whether an applicant or recipient who is aged, blind, or disabled is
             13593      eligible for a service or benefit under this chapter, the department shall use 100% of the federal
             13594      poverty level as:
             13595          (i) the allowable income standard for eligibility for services or benefits; and
             13596          (ii) the allowable income standard for eligibility as a result of spend down.
             13597          Section 304. Section 26-18-103 is amended to read:
             13598           26-18-103. DUR Board -- Responsibilities.
             13599          The board shall:
             13600          (1) develop rules necessary to carry out its responsibilities as defined in this part;
             13601          (2) oversee the implementation of a Medicaid retrospective and prospective DUR
             13602      program in accordance with this part, including responsibility for approving provisions of
             13603      contractual agreements between the Medicaid program and any other entity that will process
             13604      and review Medicaid drug claims and profiles for the DUR program in accordance with this
             13605      part;
             13606          (3) develop and apply predetermined criteria and standards to be used in retrospective
             13607      and prospective DUR, ensuring that the criteria and standards are based on the compendia, and
             13608      that they are developed with professional input, in a consensus fashion, with provisions for
             13609      timely revision and assessment as necessary. The DUR standards developed by the board shall

             13610      reflect the local practices of physicians in order to monitor:
             13611          (a) therapeutic appropriateness;
             13612          (b) overutilization or underutilization;
             13613          (c) therapeutic duplication;
             13614          (d) drug-disease contraindications;
             13615          (e) drug-drug interactions;
             13616          (f) incorrect drug dosage or duration of drug treatment; and
             13617          (g) clinical abuse and misuse;
             13618          (4) develop, select, apply, and assess interventions and remedial strategies for
             13619      physicians, pharmacists, and recipients that are educational and not punitive in nature, in order
             13620      to improve the quality of care;
             13621          (5) disseminate information to physicians and pharmacists to ensure that they are aware
             13622      of the board's duties and powers;
             13623          (6) provide written, oral, or electronic reminders of patient-specific or drug-specific
             13624      information, designed to ensure recipient, physician, and pharmacist confidentiality, and suggest
             13625      changes in prescribing or dispensing practices designed to improve the quality of care;
             13626          (7) utilize face-to-face discussions between experts in drug therapy and the prescriber
             13627      or pharmacist who has been targeted for educational intervention;
             13628          (8) conduct intensified reviews or monitoring of selected prescribers or pharmacists;
             13629          (9) create an educational program using data provided through DUR to provide active
             13630      and ongoing educational outreach programs to improve prescribing and dispensing practices,
             13631      either directly or by contract with other governmental or private entities;
             13632          (10) provide a timely evaluation of intervention to determine if those interventions have
             13633      improved the quality of care;
             13634          (11) publish an annual report, subject to public comment prior to its issuance, and
             13635      submit that report to the United States Department of Health and Human Services by December
             13636      1 of each year. That report shall also be submitted to legislative leadership, the executive
             13637      director, the president of the Utah Pharmaceutical Association, and the president of the Utah

             13638      Medical Association by December 1 of each year. The report shall include:
             13639          (a) an overview of the activities of the board and the DUR program;
             13640          (b) a description of interventions used and their effectiveness, specifying whether the
             13641      intervention was a result of underutilization or overutilization of drugs, without disclosing the
             13642      identities of individual physicians, pharmacists, or recipients;
             13643          (c) the costs of administering the DUR program;
             13644          (d) any fiscal savings resulting from the DUR program;
             13645          (e) an overview of the fiscal impact of the DUR program to other areas of the Medicaid
             13646      program such as hospitalization or long-term care costs;
             13647          (f) a quantifiable assessment of whether DUR has improved the recipient's quality of
             13648      care;
             13649          (g) a review of the total number of prescriptions, by drug therapeutic class;
             13650          (h) an assessment of the impact of educational programs or interventions on prescribing
             13651      or dispensing practices; and
             13652          (i) recommendations for DUR program improvement;
             13653          (12) develop a working agreement with related boards or agencies, including the State
             13654      Board of Pharmacy, Physicians' Licensing Board, and SURS staff within the division, in order to
             13655      clarify areas of responsibility for each, where those areas may overlap;
             13656          (13) establish a grievance process for physicians and pharmacists under this part, in
             13657      accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act;
             13658          (14) publish and disseminate educational information to physicians and pharmacists
             13659      concerning the board and the DUR program, including information regarding:
             13660          (a) identification and reduction of the frequency of patterns of fraud, abuse, gross
             13661      overuse, inappropriate, or medically unnecessary care among physicians, pharmacists, and
             13662      recipients;
             13663          (b) potential or actual severe or adverse reactions to drugs;
             13664          (c) therapeutic appropriateness;
             13665          (d) overutilization or underutilization;

             13666          (e) appropriate use of generics;
             13667          (f) therapeutic duplication;
             13668          (g) drug-disease contraindications;
             13669          (h) drug-drug interactions;
             13670          (i) incorrect drug dosage and duration of drug treatment;
             13671          (j) drug allergy interactions; and
             13672          (k) clinical abuse and misuse;
             13673          (15) develop and publish, with the input of the State Board of Pharmacy, guidelines and
             13674      standards to be used by pharmacists in counseling Medicaid recipients in accordance with this
             13675      part. The guidelines shall ensure that the recipient may refuse counseling and that the refusal is
             13676      to be documented by the pharmacist. Items to be discussed as part of that counseling include:
             13677          (a) the name and description of the medication;
             13678          (b) administration, form, and duration of therapy;
             13679          (c) special directions and precautions for use;
             13680          (d) common severe side effects or interactions, and therapeutic interactions, and how to
             13681      avoid those occurrences;
             13682          (e) techniques for self-monitoring drug therapy;
             13683          (f) proper storage;
             13684          (g) prescription refill information; and
             13685          (h) action to be taken in the event of a missed dose; and
             13686          (16) establish procedures in cooperation with the State Board of Pharmacy for
             13687      pharmacists to record information to be collected under this part. The recorded information
             13688      shall include:
             13689          (a) the name, address, age, and gender of the recipient;
             13690          (b) individual history of the recipient where significant, including disease state, known
             13691      allergies and drug reactions, and a comprehensive list of medications and relevant devices;
             13692          (c) the pharmacist's comments on the individual's drug therapy;
             13693          (d) name of prescriber; and

             13694          (e) name of drug, dose, duration of therapy, and directions for use.
             13695          Section 305. Section 26-18-104 is amended to read:
             13696           26-18-104. Confidentiality of records.
             13697          (1) Information obtained under this part shall be treated as confidential or controlled
             13698      information under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             13699      Management Act.
             13700          (2) The board shall establish procedures insuring that the information described in
             13701      Subsection 26-18-103 (16) is held confidential by the pharmacist, being provided to the
             13702      physician only upon request.
             13703          (3) The board shall adopt and implement procedures designed to ensure the
             13704      confidentiality of all information collected, stored, retrieved, assessed, or analyzed by the board,
             13705      staff to the board, or contractors to the DUR program, that identifies individual physicians,
             13706      pharmacists, or recipients. The board may have access to identifying information for purposes
             13707      of carrying out intervention activities, but that identifying information may not be released to
             13708      anyone other than a member of the board. The board may release cumulative nonidentifying
             13709      information for research purposes.
             13710          Section 306. Section 26-18-304 is amended to read:
             13711           26-18-304. Process and criteria for awarding grants.
             13712          The department shall establish rules in accordance with [Title 63, Chapter 46a] Title
             13713      63G, Chapter 3, Utah Administrative Rulemaking Act, governing the application form, process,
             13714      and criteria it will use in awarding grants under this chapter. In awarding grants, the department
             13715      shall consider the extent to which the applicant:
             13716          (1) demonstrates that the area or a population group to be served under the application
             13717      has a shortage of primary health care and that the services will be located so that they will
             13718      provide assistance to the greatest number of persons residing in such area or included in such
             13719      population group;
             13720          (2) utilizes other sources of funding, including private funding, to provide primary
             13721      health care;

             13722          (3) demonstrates the ability and expertise to serve traditionally medically underserved
             13723      populations including persons of limited English-speaking ability, single heads of households,
             13724      the elderly, persons with low incomes, and persons with chronic diseases;
             13725          (4) demonstrates that it will assume financial risk for a specified number of medically
             13726      underserved persons within its catchment area for a predetermined level of care on a prepaid
             13727      capitation basis; and
             13728          (5) meets other criteria determined by the department.
             13729          Section 307. Section 26-18-504 is amended to read:
             13730           26-18-504. Appeals of division decision -- Rulemaking authority -- Application of
             13731      act.
             13732          (1) A decision by the director under this part to deny Medicaid certification for a
             13733      nursing care facility program or to deny additional bed capacity for an existing certified program
             13734      is subject to review under the procedures and requirements of [Title 63, Chapter 46b] Title
             13735      63G, Chapter 4, Administrative Procedures Act.
             13736          (2) The department shall make rules to administer and enforce this part in accordance
             13737      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             13738          (3) A nursing care facility may receive Medicaid certification under the rules in effect
             13739      prior to July 1, 2004 if the nursing care facility, prior to May 4, 2004:
             13740          (a) paid applicable fees to the department; and
             13741          (b) submits construction plans to the department; or
             13742          (c) is in a current phase of construction approved by the department.
             13743          (4) In the event the department is at risk for a federal disallowance with regard to a
             13744      Medicaid recipient being served in a nursing care facility program that is not Medicaid certified,
             13745      the department may grant temporary Medicaid certification to that facility for up to 24 months.
             13746      The department may place conditions on the certification, such as not allowing additional
             13747      admissions of Medicaid recipients to the program.
             13748          Section 308. Section 26-18a-4 is amended to read:
             13749           26-18a-4. Creation of Kurt Oscarson Children's Organ Transplant Trust

             13750      Account.
             13751          (1) There is created a restricted account within the General Fund pursuant to Section
             13752      51-5-4 known as the Kurt Oscarson Children's Organ Transplant Trust Account. Private
             13753      contributions received under this section and Section 59-10-550 shall be deposited into the trust
             13754      account to be used only for the programs and purposes described in Section 26-18a-3 .
             13755          (2) Money shall be appropriated from the trust account to the committee in accordance
             13756      with [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures Act.
             13757          (3) In addition to funds received under Section 59-10-550 , the committee may accept
             13758      transfers, grants, gifts, bequests, or any money made available from any source to implement
             13759      this chapter.
             13760          Section 309. Section 26-21-5 is amended to read:
             13761           26-21-5. Duties of committee.
             13762          The committee shall:
             13763          (1) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             13764      Administrative Rulemaking Act:
             13765          (a) for the licensing of health-care facilities; and
             13766          (b) requiring the submission of architectural plans and specifications for any proposed
             13767      new health-care facility or renovation to the department for review;
             13768          (2) approve the information for applications for licensure pursuant to Section 26-21-9 ;
             13769          (3) advise the department as requested concerning the interpretation and enforcement
             13770      of the rules established under this chapter; and
             13771          (4) advise, consult, cooperate with, and provide technical assistance to other agencies
             13772      of the state and federal government, and other states and affected groups or persons in carrying
             13773      out the purposes of this chapter.
             13774          Section 310. Section 26-21-9.5 is amended to read:
             13775           26-21-9.5. Criminal background check and Licensing Information System check.
             13776          (1) For purposes of this section:
             13777          (a) "Covered health care facility" means:

             13778          (i) home health care agencies;
             13779          (ii) hospices;
             13780          (iii) nursing care facilities;
             13781          (iv) assisted-living facilities;
             13782          (v) small health care facilities; and
             13783          (vi) end stage renal disease facilities.
             13784          (b) "Covered person" includes:
             13785          (i) the following people who provide direct patient care:
             13786          (A) employees;
             13787          (B) volunteers; and
             13788          (C) people under contract with the facility; and
             13789          (ii) for residential settings, any individual residing in the home where the assisted living
             13790      or small health care program is to be licensed who:
             13791          (A) is 18 years of age or older; or
             13792          (B) is a child between the age of 12 and 17 years of age; however, the identifying
             13793      information required for a child between the age of 12 and 17 does not include fingerprints.
             13794          (2) In addition to the licensing requirements of Sections 26-21-8 and 26-21-9 , a
             13795      covered health care facility at the time of initial application for a license and license renewal
             13796      shall:
             13797          (a) submit the name and other identifying information of each covered person at the
             13798      covered facility who:
             13799          (i) provides direct care to a patient; and
             13800          (ii) has been the subject of a criminal background check within the preceding three-year
             13801      period by a public or private entity recognized by the department; and
             13802          (b) submit the name and other identifying information, which may include fingerprints,
             13803      of each covered person at the covered facility who has not been the subject of a criminal
             13804      background check in accordance with Subsection (1)(a)(ii).
             13805          (3) (a) The department shall forward the information received under Subsection (2)(b)

             13806      to the Criminal Investigations and Technical Services Division of the Department of Public
             13807      Safety for processing to determine whether the covered individual has been convicted of any
             13808      crime.
             13809          (b) Except for individuals described in Subsection (1)(b)(ii)(B), if an individual has not
             13810      had residency in Utah for the last five years, the individual shall submit fingerprints for an FBI
             13811      national criminal history record check. The fingerprints shall be submitted to the FBI through
             13812      the Criminal Investigations and Technical Services Division. The individual or licensee is
             13813      responsible for the cost of the fingerprinting and national criminal history check.
             13814          (4) The department may determine whether:
             13815          (a) an individual whose name and other identifying information has been submitted
             13816      pursuant to Subsection (2) and who provides direct care to children is listed in the Licensing
             13817      Information System described in Section 62A-4a-1006 or has a substantiated finding by a court
             13818      of a severe type of child abuse or neglect under Section 78-3a-320 , if identification as a possible
             13819      perpetrator of child abuse or neglect is relevant to the employment activities of that individual;
             13820          (b) an individual whose name and other identifying information has been submitted
             13821      pursuant to Subsection (2) and who provides direct care to disabled or elder adults, or who is
             13822      residing in a residential home that is a facility licensed to provide direct care to disabled or elder
             13823      adults has a substantiated finding of abuse, neglect, or exploitation of a disabled or elder adult
             13824      by accessing in accordance with Subsection (5) the database created in Section 62A-3-311.1 if
             13825      identification as a possible perpetrator of disabled or elder adult abuse, neglect, or exploitation
             13826      is relevant to the employment activities or residence of that person; or
             13827          (c) an individual whose name or other identifying information has been submitted
             13828      pursuant to Subsection (2) has been adjudicated in a juvenile court of committing an act which
             13829      if committed by an adult would be a felony or a misdemeanor if:
             13830          (i) the individual is under the age of 28 years; or
             13831          (ii) the individual is over the age of 28 and has been convicted, has pleaded no contest,
             13832      or is currently subject to a plea in abeyance or diversion agreement for any felony or
             13833      misdemeanor.

             13834          (5) (a) The department shall:
             13835          (i) designate two persons within the department to access:
             13836          (A) the Licensing Information System described in Section 62A-4a-1006 ;
             13837          (B) court records under Subsection 78-3a-320 (6);
             13838          (C) the database described in Subsection (4)(b); and
             13839          (D) juvenile court records as permitted by Subsection (4)(c); and
             13840          (ii) adopt measures to:
             13841          (A) protect the security of the Licensing Information System, the court records, and the
             13842      database; and
             13843          (B) strictly limit access to the Licensing Information System, the court records, and the
             13844      database to those designated under Subsection (5)(a)(i).
             13845          (b) Those designated under Subsection (5)(a)(i) shall receive training from the
             13846      Department of Human Services with respect to:
             13847          (i) accessing the Licensing Information System, the court records, and the database;
             13848          (ii) maintaining strict security; and
             13849          (iii) the criminal provisions in Section 62A-4a-412 for the improper release of
             13850      information.
             13851          (c) Those designated under Subsection (5)(a)(i):
             13852          (i) are the only ones in the department with the authority to access the Licensing
             13853      Information System, the court records, and database; and
             13854          (ii) may only access the Licensing Information System, the court records, and the
             13855      database for the purpose of licensing and in accordance with the provisions of Subsection (4).
             13856          (6) Within ten days of initially hiring a covered individual, a covered health care facility
             13857      shall submit the covered individual's information to the department in accordance with
             13858      Subsection (2).
             13859          (7) The department shall adopt rules under [Title 63, Chapter 46a] Title 63G, Chapter
             13860      3, Utah Administrative Rulemaking Act, consistent with this chapter, defining the circumstances
             13861      under which a person who has been convicted of a criminal offense, or a person described in

             13862      Subsection (4), may provide direct care to a patient in a covered health care facility, taking into
             13863      account the nature of the criminal conviction or substantiated finding and its relation to patient
             13864      care.
             13865          (8) The department may, in accordance with Section 26-1-6 , assess reasonable fees for
             13866      a criminal background check processed pursuant to this section.
             13867          (9) The department may inform the covered health care facility of information
             13868      discovered under Subsection (4) with respect to a covered individual.
             13869          (10) A covered health care facility is not civilly liable for submitting information to the
             13870      department as required by this section.
             13871          Section 311. Section 26-21-23 is amended to read:
             13872           26-21-23. Licensing of non-Medicaid nursing care facility beds.
             13873          (1) Notwithstanding the provisions of Section 26-21-2 , for purposes of this section
             13874      "nursing care facility" and "small health care facility":
             13875          (a) mean the following facilities licensed by the department under this chapter:
             13876          (i) skilled nursing homes;
             13877          (ii) intermediate care facilities; or
             13878          (iii) small health care facilities with four to sixteen beds functioning as a skilled nursing
             13879      home; and
             13880          (b) does not mean:
             13881          (i) an intermediate care facility for the mentally retarded;
             13882          (ii) a critical access hospital that meets the criteria of 42 U.S.C. 1395i-4(c)(2) (1998);
             13883          (iii) a small health care facility which is hospital based; or
             13884          (iv) a small health care facility other than a skilled nursing home with 16 beds or less.
             13885          (2) Except as provided in Subsection (5), a new nursing care facility shall be approved
             13886      for a health facility license only if the applicant proves to the division that:
             13887          (a) the facility will be Medicaid certified under the provisions of Section 26-18-503 ;
             13888          (b) the facility will have at least 120 beds; or
             13889          (c) (i) the facility's projected Medicare inpatient revenues do not exceed 49% of the

             13890      facility's revenues;
             13891          (ii) the facility has identified projected non-Medicare inpatient revenue sources; and
             13892          (iii) the non-Medicare inpatient revenue sources identified in this Subsection (2)(c)(iii)
             13893      will constitute at least 51% of the revenues as demonstrated through an independently certified
             13894      feasibility study submitted and paid for by the facility and provided to the division.
             13895          (3) The division may not approve the addition of licensed beds in an existing nursing
             13896      care facility unless the nursing care facility satisfies the criteria established in Subsection (2).
             13897          (4) The department may make rules to administer and enforce this part in accordance
             13898      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             13899          (5) The provisions of Subsection (2) do not apply to a nursing care facility that has:
             13900          (a) filed an application with the department and paid all applicable fees to the
             13901      department on or before February 28, 2007; and
             13902          (b) submitted to the department the working drawings, as defined by the department by
             13903      administrative rule, on or before July 1, 2008.
             13904          Section 312. Section 26-21a-203 is amended to read:
             13905           26-21a-203. Department rulemaking authority.
             13906          The department shall make rules under [Title 63, Chapter 46a] Title 63G, Chapter 3,
             13907      Utah Administrative Rulemaking Act:
             13908          (1) establishing quality assurance standards for all facilities performing screening or
             13909      diagnostic mammography and developing mammogram x-ray films, including procedures for
             13910      clinical follow-up of abnormal mammograms; and
             13911          (2) providing for:
             13912          (a) collection and periodic reporting of mammography examinations and clinical
             13913      follow-up data to the department;
             13914          (b) certification and revocation of certification of mammogram facilities;
             13915          (c) inspection of mammogram facilities, including entry of agents of the department into
             13916      the facilities for inspections;
             13917          (d) setting fees for certification; and

             13918          (e) an appeal process regarding department certification decisions.
             13919          Section 313. Section 26-21a-205 is amended to read:
             13920           26-21a-205. Department duties.
             13921          The department shall:
             13922          (1) enforce rules established under this part;
             13923          (2) authorize qualified department agents to conduct inspections of mammogram
             13924      facilities under department rules;
             13925          (3) collect and credit fees for certification under Section [ 63-38-3.2 ] 63J-1-303 ; and
             13926          (4) provide necessary administrative and staff support to the committee.
             13927          Section 314. Section 26-23-2 is amended to read:
             13928           26-23-2. Administrative review of actions of department or director.
             13929          Any person aggrieved by any action or inaction of the department or its executive
             13930      director may request an adjudicative proceeding by following the procedures and requirements
             13931      of [Title 63, Chapter 46b, the] Title 63G, Chapter 4, Administrative Procedures Act.
             13932          Section 315. Section 26-23b-110 is amended to read:
             13933           26-23b-110. Information sharing with public safety authorities.
             13934          (1) For purposes of this section, "public safety authority" means a local, state, or federal
             13935      law enforcement authority including the Division of Homeland Security, emergency medical
             13936      services personnel, and firefighters.
             13937          (2) Notwithstanding the provisions of [Title 63, Chapter 2] Title 63G, Chapter 2,
             13938      Government Records Access and Management Act:
             13939          (a) whenever a public safety authority suspects a case of a reportable illness or
             13940      condition under the provisions of this chapter, it shall immediately notify the department;
             13941          (b) whenever the department learns of a case of a reportable illness or condition under
             13942      this chapter that it reasonably believes has the potential to be caused by one of the factors listed
             13943      in Subsection 26-23b-103 (1), it shall immediately notify the appropriate public safety authority;
             13944      and
             13945          (c) sharing of information reportable under the provisions of this chapter between

             13946      persons authorized by this chapter shall be limited to information necessary for the treatment,
             13947      control, investigation, and prevention of a public health emergency.
             13948          (3) Except to the extent inconsistent with this chapter, Sections 26-6-27 and 26-6-28
             13949      apply to this chapter.
             13950          Section 316. Section 26-25-2 is amended to read:
             13951           26-25-2. Restrictions on use of data.
             13952          (1) The information described in Subsection 26-25-1 (1) that is provided to the entities
             13953      described in Subsection 26-25-1 (2) shall:
             13954          (a) be used and disclosed by the entities described in Subsection 26-25-1 (2) in
             13955      accordance with this chapter; and
             13956          (b) is not subject to [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             13957      Access and Management Act.
             13958          (2) The Division of Substance Abuse and Mental Health within the Department of
             13959      Human Services, scientific and health care research organizations affiliated with institutions of
             13960      higher education, the Utah Medical Association or any of its allied medical societies, peer
             13961      review committees, professional review organizations, professional societies and associations,
             13962      or any health facility's in-house staff committee may only use or publish the information or
             13963      material received or gathered under Section 26-25-1 for the purpose of study and advancing
             13964      medical research or medical education in the interest of reducing the incidence of disease,
             13965      morbidity, or mortality, except that a summary of studies conducted in accordance with Section
             13966      26-25-1 may be released by those groups for general publication.
             13967          Section 317. Section 26-33a-104 is amended to read:
             13968           26-33a-104. Purpose, powers, and duties of the committee.
             13969          (1) The purpose of the committee is to direct a statewide effort to collect, analyze, and
             13970      distribute health care data to facilitate the promotion and accessibility of quality and
             13971      cost-effective health care and also to facilitate interaction among those with concern for health
             13972      care issues.
             13973          (2) The committee shall:

             13974          (a) develop and adopt by rule, following public hearing and comment, a health data plan
             13975      that shall among its elements:
             13976          (i) identify the key health care issues, questions, and problems amenable to resolution or
             13977      improvement through better data, more extensive or careful analysis, or improved dissemination
             13978      of health data;
             13979          (ii) document existing health data activities in the state to collect, organize, or make
             13980      available types of data pertinent to the needs identified in Subsection (2)(a)(i);
             13981          (iii) describe and prioritize the actions suitable for the committee to take in response to
             13982      the needs identified in Subsection (2)(a)(i) in order to obtain or to facilitate the obtaining of
             13983      needed data, and to encourage improvements in existing data collection, interpretation, and
             13984      reporting activities, and indicate how those actions relate to the activities identified under
             13985      Subsection (2)(a)(ii);
             13986          (iv) detail the types of data needed for the committee's work, the intended data
             13987      suppliers, and the form in which such data are to be supplied, noting the consideration given to
             13988      the potential alternative sources and forms of such data and to the estimated cost to the
             13989      individual suppliers as well as to the department of acquiring these data in the proposed manner;
             13990      the plan shall reasonably demonstrate that the committee has attempted to maximize
             13991      cost-effectiveness in the data acquisition approaches selected;
             13992          (v) describe the types and methods of validation to be performed to assure data validity
             13993      and reliability;
             13994          (vi) explain the intended uses of and expected benefits to be derived from the data
             13995      specified in Subsection (2)(a)(iv), including the contemplated tabulation formats and analysis
             13996      methods; the benefits described must demonstrably relate to one or more of the following:
             13997      promoting quality health care, managing health care costs, or improving access to health care
             13998      services;
             13999          (vii) describe the expected processes for interpretation and analysis of the data flowing
             14000      to the committee; noting specifically the types of expertise and participation to be sought in
             14001      those processes; and

             14002          (viii) describe the types of reports to be made available by the committee and the
             14003      intended audiences and uses;
             14004          (b) have the authority to collect, validate, analyze, and present health data in
             14005      accordance with the plan while protecting individual privacy through the use of a control
             14006      number as the health data identifier;
             14007          (c) evaluate existing identification coding methods and, if necessary, require by rule that
             14008      health data suppliers use a uniform system for identification of patients, health care facilities,
             14009      and health care providers on health data they submit under this chapter;
             14010          (d) report biennially to the governor and the Legislature on how the committee is
             14011      meeting its responsibilities under this chapter; and
             14012          (e) advise, consult, contract, and cooperate with any corporation, association, or other
             14013      entity for the collection, analysis, processing, or reporting of health data identified by control
             14014      number only in accordance with the plan.
             14015          (3) The committee may adopt rules to carry out the provisions of this chapter in
             14016      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             14017      Act.
             14018          (4) Except for data collection, analysis, and validation functions described in this
             14019      section, nothing in this chapter shall be construed to authorize or permit the committee to
             14020      perform regulatory functions which are delegated by law to other agencies of the state or
             14021      federal governments or to perform quality assurance or medical record audit functions that
             14022      health care facilities, health care providers, or third party payors are required to conduct to
             14023      comply with federal or state law. The committee shall not recommend or determine whether a
             14024      health care provider, health care facility, third party payor, or self-funded employer is in
             14025      compliance with federal or state laws including but not limited to federal or state licensure,
             14026      insurance, reimbursement, tax, malpractice, or quality assurance statutes or common law.
             14027          (5) Nothing in this chapter shall be construed to require a data supplier to supply health
             14028      data identifying a patient by name or describing detail on a patient beyond that needed to
             14029      achieve the approved purposes included in the plan.

             14030          (6) No request for health data shall be made of health care providers and other data
             14031      suppliers until a plan for the use of such health data has been adopted.
             14032          (7) If a proposed request for health data imposes unreasonable costs on a data supplier,
             14033      due consideration shall be given by the committee to altering the request. If the request is not
             14034      altered, the committee shall pay the costs incurred by the data supplier associated with satisfying
             14035      the request that are demonstrated by the data supplier to be unreasonable.
             14036          (8) After a plan is adopted as provided in Section 26-33a-106.1 , the committee may
             14037      require any data supplier to submit fee schedules, maximum allowable costs, area prevailing
             14038      costs, terms of contracts, discounts, fixed reimbursement arrangements, capitations, or other
             14039      specific arrangements for reimbursement to a health care provider.
             14040          (9) The committee shall not publish any health data collected under Subsection (8)
             14041      which would disclose specific terms of contracts, discounts, or fixed reimbursement
             14042      arrangements, or other specific reimbursement arrangements between an individual provider and
             14043      a specific payer.
             14044          (10) Nothing in Subsection (8) shall prevent the committee from requiring the
             14045      submission of health data on the reimbursements actually made to health care providers from
             14046      any source of payment, including consumers.
             14047          Section 318. Section 26-35a-106 is amended to read:
             14048           26-35a-106. Restricted account -- Creation -- Deposits.
             14049          (1) (a) There is created a restricted account in the General Fund known as the "Nursing
             14050      Care Facilities Account" consisting of:
             14051          (i) proceeds from the assessment imposed by Section 26-35a-104 which shall be
             14052      deposited in the restricted account to be used for the purpose described in Subsection (1)(b);
             14053          (ii) money appropriated or otherwise made available by the Legislature; and
             14054          (iii) any interest earned on the account.
             14055          (b) (i) Money in the account shall only be used:
             14056          (A) to the extent authorized by federal law, to obtain federal financial participation in
             14057      the Medicaid program; and

             14058          (B) in the manner described in Subsection (1)(b)(ii).
             14059          (ii) The money appropriated from the restricted account to the department:
             14060          (A) shall be used only to increase the rates paid prior to the effective date of this act to
             14061      nursing care facilities for providing services pursuant to the Medicaid program and for
             14062      administrative expenses as described in Subsection (1)(b)(ii)(C);
             14063          (B) may not be used to replace existing state expenditures paid to nursing care facilities
             14064      for providing services pursuant to the Medicaid program; and
             14065          (C) may be used for administrative expenses for implementation of this act, if the
             14066      administrative expenses for the fiscal year do not exceed 3% of the money deposited into the
             14067      restricted account during the fiscal year.
             14068          (2) Money shall be appropriated from the restricted account to the department for the
             14069      purposes described in Subsection (1)(b) in accordance with [Title 63, Chapter 38] Title 63J,
             14070      Chapter 1, Budgetary Procedures Act.
             14071          Section 319. Section 26-38-9 is amended to read:
             14072           26-38-9. Enforcement of chapter.
             14073          (1) The state Department of Health and local health departments shall:
             14074          (a) enforce this chapter and shall coordinate their efforts to promote the most effective
             14075      enforcement of this chapter; and
             14076          (b) impose the penalties under Subsection 26-38-8 in accordance with this section.
             14077          (2) When enforcing this chapter, the state Department of Health and the local health
             14078      departments shall notify persons of alleged violations of this chapter, conduct hearings, and
             14079      impose penalties in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4,
             14080      Administrative Procedures Act.
             14081          (3) Civil penalties collected under this section by:
             14082          (a) a local health department shall be paid to the treasurer of the county in which the
             14083      violation was committed; and
             14084          (b) the state Department of Health shall be deposited in the General Fund.
             14085          Section 320. Section 26-39-108 is amended to read:

             14086           26-39-108. License violations -- Penalties.
             14087          (1) The department may deny or revoke a license and otherwise invoke disciplinary
             14088      penalties if it finds:
             14089          (a) evidence of committing or of aiding, abetting, or permitting the commission of any
             14090      illegal act on the premises of the child care facility;
             14091          (b) a failure to meet the qualifications for licensure; or
             14092          (c) conduct adverse to the public health, morals, welfare, and safety of children under
             14093      its care.
             14094          (2) The department may also place a department representative as a monitor in a
             14095      facility, and may assess the cost of that monitoring to the facility, until the licensee has remedied
             14096      the deficiencies that brought about the department action.
             14097          (3) The department may impose civil monetary penalties in accordance with [Title 63,
             14098      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, if there has been a failure to
             14099      comply with the provisions of this chapter, or rules promulgated pursuant to this chapter, as
             14100      follows:
             14101          (a) if significant problems exist that are likely to lead to the harm of a child, the
             14102      department may impose a civil penalty of $50 to $1,000 per day; and
             14103          (b) if significant problems exist that result in actual harm to a child, the department may
             14104      impose a civil penalty of $1,050 to $5,000 per day.
             14105          Section 321. Section 26-39-109 is amended to read:
             14106           26-39-109. Investigations -- Records.
             14107          (1) The department may conduct investigations necessary to enforce the provisions of
             14108      this chapter.
             14109          (2) For purposes of this section:
             14110          (a) "Anonymous complainant" means a complainant for whom the department does not
             14111      have the minimum personal identifying information necessary, including the complainant's full
             14112      name, to attempt to communicate with the complainant after a complaint has been made.
             14113          (b) "Confidential complainant" means a complainant for whom the department has the

             14114      minimum personal identifying information necessary, including the complainant's full name, to
             14115      attempt to communicate with the complainant after a complaint has been made, but who elects
             14116      under Subsection (3)(c) not to be identified to the subject of the complaint.
             14117          (c) "Subject of the complaint" means the licensee or certificate holder about whom the
             14118      complainant is informing the department.
             14119          (3) (a) If the department receives a complaint about a child care program or residential
             14120      child care, the department shall:
             14121          (i) solicit information from the complainant to determine whether the complaint
             14122      suggests actions or conditions which could pose a serious risk to the safety or well-being of a
             14123      child;
             14124          (ii) as necessary:
             14125          (A) encourage the complainant to disclose the minimum personal identifying
             14126      information necessary, including the complainant's full name, for the department to attempt to
             14127      subsequently communicate with the complainant;
             14128          (B) inform the complainant that the department may not investigate an anonymous
             14129      complaint;
             14130          (C) inform the complainant that the identity of a confidential complainant may be
             14131      withheld from the subject of a complaint only as provided in Subsection (3)(c)(ii); and
             14132          (D) inform the complainant that the department may be limited in its use of information
             14133      provided by a confidential complainant, as provided in Subsection (3)(c)(ii)(B); and
             14134          (iii) inform the complainant that a person is guilty of a class B misdemeanor under
             14135      Section 76-8-506 if the person gives false information to the department with a purpose of
             14136      inducing a change in that person's or another person's licensing or certification status.
             14137          (b) If the complainant elects to be an anonymous complainant, or if the complaint
             14138      concerns events which occurred more than six weeks before the complainant contacted the
             14139      department:
             14140          (i) shall refer the information in the complaint to the Division of Child and Family
             14141      Services within the Department of Human Services, law enforcement, or any other appropriate

             14142      agency, if the complaint suggests actions or conditions which could pose a serious risk to the
             14143      safety or well-being of a child;
             14144          (ii) may not investigate or substantiate the complaint; and
             14145          (iii) may, during a regularly scheduled annual survey, inform the licensee or certificate
             14146      holder who is the subject of the complaint of allegations or concerns raised by:
             14147          (A) the anonymous complainant; or
             14148          (B) the complainant who reported events more than six weeks after the events
             14149      occurred.
             14150          (c) (i) If the complainant elects to be a confidential complainant, the department shall
             14151      determine whether the complainant wishes to remain confidential:
             14152          (A) only until the investigation of the complaint has been completed; or
             14153          (B) indefinitely.
             14154          (ii) (A) If the complainant elects to remain confidential only until the investigation of
             14155      the complaint has been completed, the department shall disclose the name of the complainant to
             14156      the subject of the complaint at the completion of the investigation, but no sooner.
             14157          (B) If the complainant elects to remain confidential indefinitely, the department:
             14158          (I) notwithstanding Subsection [ 63-2-201 ] 63G-2-201 (5)(b), may not disclose the name
             14159      of the complainant, including to the subject of the complaint; and
             14160          (II) may not use information provided by the complainant to substantiate an alleged
             14161      violation of state law or department rule unless the department independently corroborates the
             14162      information.
             14163          (4) (a) Prior to conducting an investigation of a child care program or residential child
             14164      care in response to a complaint, a department investigator shall review the complaint with the
             14165      investigator's supervisor.
             14166          (b) The investigator may proceed with the investigation only if:
             14167          (i) the supervisor determines the complaint is credible;
             14168          (ii) the complaint is not from an anonymous complainant; and
             14169          (iii) prior to the investigation, the investigator informs the subject of the complaint of:

             14170          (A) except as provided in Subsection (3)(c), the name of the complainant; and
             14171          (B) except as provided in Subsection (4)(c), the substance of the complaint.
             14172          (c) An investigator is not required to inform the subject of a complaint of the substance
             14173      of the complaint prior to an investigation if doing so would jeopardize the investigation.
             14174      However, the investigator shall inform the subject of the complaint of the substance of the
             14175      complaint as soon as doing so will no longer jeopardize the investigation.
             14176          (5) If the department is unable to substantiate a complaint, any record related to the
             14177      complaint or the investigation of the complaint:
             14178          (a) shall be classified under [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             14179      Records Access and Management Act, as:
             14180          (i) a private or controlled record if appropriate under Section [ 63-2-302 ] 63G-2-302 or
             14181      [ 63-2-303 ] 63G-2-304 ; or
             14182          (ii) a protected record under Section [ 63-2-304 ] 63G-2-305 ; and
             14183          (b) if disclosed in accordance with Subsection [ 63-2-201 ] 63G-2-201 (5)(b), may not
             14184      identify an individual child care program, licensee, certificate holder, or complainant.
             14185          (6) Any record of the department related to a complaint by an anonymous complainant
             14186      is a protected record under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             14187      Access and Management Act, and, notwithstanding Subsection [ 63-2-201 ] 63G-2-201 (5)(b),
             14188      may not be disclosed in a manner that identifies an individual child care program, licensee,
             14189      certificate holder, or complainant.
             14190          Section 322. Section 26-40-103 is amended to read:
             14191           26-40-103. Creation and administration of the Utah Children's Health Insurance
             14192      Program.
             14193          (1) There is created the Utah Children's Health Insurance Program to be administered
             14194      by the department in accordance with the provisions of:
             14195          (a) this chapter; and
             14196          (b) the State Children's Health Insurance Program, 42 U.S.C. Sec. 1397aa et seq.
             14197          (2) The department shall:

             14198          (a) prepare and submit the state's children's health insurance plan before May 1, 1998,
             14199      and any amendments to the federal Department of Health and Human Services in accordance
             14200      with 42 U.S.C. Sec. 1397ff; and
             14201          (b) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             14202      Administrative Rulemaking Act regarding:
             14203          (i) eligibility requirements consistent with Subsection 26-18-3 (6);
             14204          (ii) program benefits;
             14205          (iii) the level of coverage for each program benefit;
             14206          (iv) cost-sharing requirements for enrollees, which may not:
             14207          (A) exceed the guidelines set forth in 42 U.S.C. Sec. 1397ee; or
             14208          (B) impose deductible, copayment, or coinsurance requirements on an enrollee for
             14209      well-child, well-baby, and immunizations; and
             14210          (v) the administration of the program.
             14211          Section 323. Section 26-40-110 is amended to read:
             14212           26-40-110. Managed care -- Contracting for services.
             14213          (1) Services provided to enrollees under the program shall be delivered in a managed
             14214      care system if services are available within 30 paved road miles of where the enrollee lives or
             14215      resides. Otherwise, the program may provide services to enrollees through fee for service plans.
             14216          (2) Before awarding a contract to a managed care system or fee for service plan to
             14217      provide services under Subsection (1) or determining that no bid or proposal received in
             14218      response to such a request is acceptable, the executive director shall report that information to
             14219      and seek recommendations from the Health Advisory Council created in Section 26-1-7.5 .
             14220          (3) If after seeking the recommendation of the Health Advisory Council under
             14221      Subsection (2), the executive director determines that no bid or proposal received in response to
             14222      such a request is acceptable or if no bid or proposal has been received in response to such a
             14223      request, the department may contract with the Group Insurance Division within the Utah State
             14224      Retirement Office to provide services under Subsection (1).
             14225          (4) [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code, shall apply to

             14226      this section.
             14227          Section 324. Section 26-41-104 is amended to read:
             14228           26-41-104. Training in use of epinephrine auto-injector.
             14229          (1) Each primary and secondary school in the state, both public and private, may
             14230      designate one or more school personnel who volunteers to receive initial and annual refresher
             14231      training from the school nurse or other qualified person designated by the school district
             14232      physician, the medical director of the local health department, or the local emergency medical
             14233      services director regarding the storage and emergency use of an epinephrine auto-injector.
             14234          (2) A person who provides training under Subsection (1) or (6) shall include in the
             14235      training:
             14236          (a) techniques for recognizing symptoms of anaphylaxis;
             14237          (b) standards and procedures for the storage and emergency use of epinephrine
             14238      auto-injectors;
             14239          (c) emergency follow-up procedures, including calling the emergency 911 number and
             14240      contacting, if possible, the student's parent and physician; and
             14241          (d) written materials covering the information required under this Subsection (2).
             14242          (3) A designated person shall retain for reference the written materials prepared in
             14243      accordance with Subsection (2)(d).
             14244          (4) A public school shall permit a student to possess an epinephrine auto-injector or
             14245      possess and self-administer an epinephrine auto-injector if:
             14246          (a) the student's parent or guardian signs a statement:
             14247          (i) authorizing the student to possess or possess and self-administer an epinephrine
             14248      auto-injector; and
             14249          (ii) acknowledging that the student is responsible for, and capable of, possessing or
             14250      possessing and self-administering an epinephrine auto-injector; and
             14251          (b) the student's health care provider provides a written statement that states that it is
             14252      medically appropriate for the student to possess or possess and self-administer an epinephrine
             14253      auto-injector and the student should be in possession of the epinephrine auto-injector at all

             14254      times.
             14255          (5) The Utah Department of Health, in cooperation with the state superintendent of
             14256      public instruction, shall design forms to be used by public schools for the parental and health
             14257      care providers statements described in Subsection (6).
             14258          (6) (a) The department:
             14259          (i) shall approve educational programs conducted by other persons, to train people
             14260      under Subsection (6)(b) of this section, regarding the use and storage of emergency epinephrine
             14261      auto-injectors; and
             14262          (ii) may, as funding is available, conduct educational programs to train people regarding
             14263      the use of and storage of emergency epinephrine auto-injectors.
             14264          (b) A person designated to receive training to administer an epinephrine auto-injector
             14265      under the provisions of this Subsection (6) must demonstrate a need for the training to the
             14266      department, which may be based upon occupational, volunteer, or family circumstances, and
             14267      shall include:
             14268          (i) camp counselors;
             14269          (ii) scout leaders;
             14270          (iii) forest rangers;
             14271          (iv) tour guides; and
             14272          (v) other persons who have or reasonably expect to have responsibility for at least one
             14273      other person as a result of the person's occupational or volunteer status.
             14274          (7) The department shall adopt rules in accordance with [Title 63, Chapter 46a] Title
             14275      63G, Chapter 3, Utah Administrative Rulemaking Act, to:
             14276          (a) establish and approve training programs in accordance with this section; and
             14277          (b) establish a procedure for determining the need for training under Subsection
             14278      (6)(b)(v).
             14279          Section 325. Section 26-42-104 is amended to read:
             14280           26-42-104. Enforcement by state and local health departments.
             14281          The state Department of Health and the local health departments shall enforce this

             14282      chapter under the procedures of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             14283      Procedures Act, as an informal adjudicative proceeding, including:
             14284          (1) notifying licensees of alleged violations of Section 26-42-103 ;
             14285          (2) conducting hearings;
             14286          (3) determining violations of this chapter; and
             14287          (4) imposing civil monetary administrative penalties.
             14288          Section 326. Section 26-43-103 is amended to read:
             14289           26-43-103. Disclosure of information.
             14290          Information obtained by the department under this chapter is a public record and may be
             14291      disclosed in accordance with Section [ 63-2-201 ] 63G-2-201 and disseminated generally by the
             14292      department.
             14293          Section 327. Section 26-46-102 is amended to read:
             14294           26-46-102. Creation of program -- Duties of department.
             14295          (1) There is created within the department the Utah Health Care Workforce Financial
             14296      Assistance Program to provide professional education scholarships and loan repayment
             14297      assistance to health care professionals who locate or continue to practice in underserved areas.
             14298          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             14299      Administrative Rulemaking Act, the department shall make rules governing the administration
             14300      of the program, including rules that address:
             14301          (a) application procedures;
             14302          (b) eligibility criteria;
             14303          (c) selection criteria;
             14304          (d) service conditions, which at a minimum shall include professional service in an
             14305      underserved area for a minimum period of time by any person receiving a scholarship or loan
             14306      repayment assistance;
             14307          (e) penalties for failure to comply with service conditions or other terms of a
             14308      scholarship or loan repayment contract;
             14309          (f) criteria for modifying or waiving service conditions or penalties in case of extreme

             14310      hardship or other good cause; and
             14311          (g) administration of contracts entered into before the effective date of this act, between
             14312      the department and scholarship or loan repayment recipients under Title 26, Chapter 9, Part 2,
             14313      Physicians and Physician Assistants Grant and Scholarship Program, Title 26, Chapter 9d,
             14314      Nurse Education Financial Assistance, or Title 26, Chapter 9e, Special Population Health Care
             14315      Provider Financial Assistance and Retention Act.
             14316          (3) The department shall seek and consider the recommendations of the Utah Health
             14317      Care Workforce Financial Assistance Program Advisory Committee created under Section
             14318      26-46-103 as it develops and modifies rules to administer the program.
             14319          (4) Funding for the program shall be a line item within the appropriations act, shall be
             14320      nonlapsing unless designated otherwise, and may be used to cover administrative costs of the
             14321      program, including reimbursement expenses of the Utah Health Care Workforce Financial
             14322      Assistance Program Advisory Committee created under Section 26-46-103 .
             14323          (5) Loan repayments and payments resulting from breach of contract are dedicated
             14324      credits to the program.
             14325          (6) The department shall prepare an annual report on the revenues, expenditures, and
             14326      outcomes of the program.
             14327          Section 328. Section 26-47-103 is amended to read:
             14328           26-47-103. Department to award grants for assistance to persons with bleeding
             14329      disorders.
             14330          (1) For purposes of this section:
             14331          (a) "Hemophilia services" means a program for medical care, including the costs of
             14332      blood transfusions, and the use of blood derivatives and blood clotting factors.
             14333          (b) "Person with a bleeding disorder" means a person:
             14334          (i) who is medically diagnosed with hemophilia or a bleeding disorder;
             14335          (ii) who is not eligible for Medicaid or the Children's Health Insurance Program; and
             14336          (iii) who has either:
             14337          (A) insurance coverage that excludes coverage for hemophilia services;

             14338          (B) exceeded [his] the person's insurance plan's annual maximum benefits;
             14339          (C) exceeded [his] the person's annual or lifetime maximum benefits payable under Title
             14340      31A, Chapter 29, Comprehensive Health Insurance Pool Act; or
             14341          (D) insurance coverage available under either private health insurance, Title 31A,
             14342      Chapter 29, Comprehensive Health Insurance Pool Act, Utah mini COBRA coverage under
             14343      Section 31A-22-722 , or federal COBRA coverage, but the premiums for that coverage are
             14344      greater than a percentage of the person's annual adjusted gross income as established by the
             14345      department by administrative rule.
             14346          (2) (a) Within appropriations specified by the Legislature for this purpose, the
             14347      department shall make grants to public and nonprofit entities who assist persons with bleeding
             14348      disorders with the cost of obtaining hemophilia services or the cost of insurance premiums for
             14349      coverage of hemophilia services.
             14350          (b) Applicants for grants under this section:
             14351          (i) must be submitted to the department in writing; and
             14352          (ii) must comply with Subsection (3).
             14353          (3) Applications for grants under this section shall include:
             14354          (a) a statement of specific, measurable objectives, and the methods to be used to assess
             14355      the achievement of those objectives;
             14356          (b) a description of the personnel responsible for carrying out the activities of the grant
             14357      along with a statement justifying the use of any grant funds for the personnel;
             14358          (c) letters and other forms of evidence showing that efforts have been made to secure
             14359      financial and professional assistance and support for the services to be provided under the grant;
             14360          (d) a list of services to be provided by the applicant;
             14361          (e) the schedule of fees to be charged by the applicant; and
             14362          (f) other provisions as determined by the department.
             14363          (4) The department may accept grants, gifts, and donations of money or property for
             14364      use by the grant program.
             14365          (5) (a) The department shall establish rules in accordance with [Title 63, Chapter 46a]

             14366      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, governing the application form,
             14367      process, and criteria it will use in awarding grants under this section.
             14368          (b) The department shall report to the Health and Human Services Interim Committee
             14369      and to the Legislative Executive Appropriations Committee by November 1, 2006, and every
             14370      year thereafter on the implementation of the grant program.
             14371          Section 329. Section 26-48-102 is amended to read:
             14372           26-48-102. Cat and Dog Community Spay and Neuter Program Restricted
             14373      Account -- Interest -- Use of contributions and interest.
             14374          (1) There is created within the General Fund the Cat and Dog Community Spay and
             14375      Neuter Program Restricted Account.
             14376          (2) The account shall be funded by contributions deposited into the Cat and Dog
             14377      Community Spay and Neuter Program Restricted Account in accordance with Section
             14378      59-10-550.2 .
             14379          (3) (a) The Cat and Dog Community Spay and Neuter Program Restricted Account
             14380      shall earn interest.
             14381          (b) Interest earned on the Cat and Dog Community Spay and Neuter Program
             14382      Restricted Account shall be deposited into the Cat and Dog Community Spay and Neuter
             14383      Program Restricted Account.
             14384          (4) The department shall distribute contributions and interest deposited into the Cat and
             14385      Dog Community Spay and Neuter Program Restricted Account to one or more organizations
             14386      that:
             14387          (a) are exempt from federal income taxation under Section 501(c)(3), Internal Revenue
             14388      Code;
             14389          (b) operate a mobile spay and neuter clinic for cats and dogs;
             14390          (c) provide annual spay and neuter services at the mobile spay and neuter clinic
             14391      described in Subsection (4)(b):
             14392          (i) to one or more communities in at least 20 counties in the state; and
             14393          (ii) by veterinarians who are licensed by Title 58, Chapter 28, Veterinary Practice Act;

             14394      and
             14395          (d) (i) spay and neuter cats and dogs owned by persons having low incomes; and
             14396          (ii) have established written guidelines for determining what constitutes a person having
             14397      a low income in accordance with any rules made by the department as authorized by Subsection
             14398      (5)(c).
             14399          (5) (a) An organization described in Subsection (4) may apply to the department to
             14400      receive a distribution in accordance with Subsection (4).
             14401          (b) An organization that receives a distribution from the department in accordance with
             14402      Subsection (4):
             14403          (i) shall expend the distribution only to spay or neuter dogs and cats:
             14404          (A) owned by persons having low incomes;
             14405          (B) by veterinarians who are licensed by Title 58, Chapter 28, Veterinary Practice Act;
             14406          (C) through a statewide voucher program; and
             14407          (D) at a location that:
             14408          (I) is not a mobile spay and neuter clinic; and
             14409          (II) does not receive any funding from a governmental entity; and
             14410          (ii) may not expend the distribution for any administrative cost relating to an
             14411      expenditure authorized by Subsection (5)(b)(i).
             14412          (c) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             14413      Administrative Rulemaking Act, the department may make rules:
             14414          (i) providing procedures and requirements for an organization to apply to the
             14415      department to receive a distribution in accordance with Subsection (4); and
             14416          (ii) to define what constitutes a person having a low income.
             14417          Section 330. Section 26A-1-108.7 is amended to read:
             14418           26A-1-108.7. Procurement -- Use of recycled goods.
             14419          The procurement officer or other person responsible for purchasing supplies for each
             14420      local health department shall:
             14421          (1) maintain for reference a copy of the current listing of recycled items available on

             14422      state contract as issued by the chief procurement officer under Section [ 63-56-204 ] 63G-6-204 ;
             14423      and
             14424          (2) give recycled items consideration when inviting bids and purchasing supplies, in
             14425      compliance with Section 11-37-101 .
             14426          Section 331. Section 30-2-11 is amended to read:
             14427           30-2-11. Action for consortium due to personal injury.
             14428          (1) For purposes of this section:
             14429          (a) "injury" or "injured" means a significant permanent injury to a person that
             14430      substantially changes that person's lifestyle and includes the following:
             14431          (i) a partial or complete paralysis of one or more of the extremities;
             14432          (ii) significant disfigurement; or
             14433          (iii) incapability of the person of performing the types of jobs the person performed
             14434      before the injury; and
             14435          (b) "spouse" means the legal relationship:
             14436          (i) established between a man and a woman as recognized by the laws of this state; and
             14437          (ii) existing at the time of the person's injury.
             14438          (2) The spouse of a person injured by a third party on or after May 4, 1997, may
             14439      maintain an action against the third party to recover for loss of consortium.
             14440          (3) A claim for loss of consortium begins on the date of injury to the spouse. The
             14441      statute of limitations applicable to the injured person shall also apply to the spouse's claim of
             14442      loss of consortium.
             14443          (4) A claim for the spouse's loss of consortium shall be:
             14444          (a) made at the time the claim of the injured person is made and joinder of actions shall
             14445      be compulsory; and
             14446          (b) subject to the same defenses, limitations, immunities, and provisions applicable to
             14447      the claims of the injured person.
             14448          (5) The spouse's action for loss of consortium:
             14449          (a) shall be derivative from the cause of action existing in behalf of the injured person;

             14450      and
             14451          (b) may not exist in cases where the injured person would not have a cause of action.
             14452          (6) Fault of the spouse of the injured person, as well as fault of the injured person, shall
             14453      be compared with the fault of all other parties, pursuant to Sections 78-27-37 through
             14454      78-27-43 , for purposes of reducing or barring any recovery by the spouse for loss of
             14455      consortium.
             14456          (7) Damages awarded for loss of consortium, when combined with any award to the
             14457      injured person for general damages, may not exceed any applicable statutory limit on
             14458      noneconomic damages, including Section 78-14-7.1 .
             14459          (8) Damages awarded for loss of consortium which a governmental entity is required to
             14460      pay, when combined with any award to the injured person which a governmental entity is
             14461      required to pay, may not exceed the liability limit for one person in any one occurrence under
             14462      [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah.
             14463          Section 332. Section 30-3-11.3 is amended to read:
             14464           30-3-11.3. Mandatory educational course for divorcing parents -- Purpose --
             14465      Curriculum -- Exceptions.
             14466          (1) There is established a mandatory course for divorcing parents as a pilot program in
             14467      the third and fourth judicial districts to be administered by the Administrative Office of the
             14468      Courts from July 1, 1992, to June 30, 1994. On July 1, 1994, an approved course shall be
             14469      implemented in all judicial districts. The mandatory course is designed to educate and sensitize
             14470      divorcing parties to their children's needs both during and after the divorce process.
             14471          (2) The Judicial Council shall adopt rules to implement and administer this program.
             14472          (3) As a prerequisite to receiving a divorce decree, both parties are required to attend a
             14473      mandatory course on their children's needs after filing a complaint for divorce and receiving a
             14474      docket number, unless waived under Section 30-3-4 . If that requirement is waived, the court
             14475      may permit the divorce action to proceed.
             14476          (4) The court may require unmarried parents to attend this educational course when
             14477      those parents are involved in a visitation or custody proceeding before the court.

             14478          (5) The mandatory course shall instruct both parties about divorce and its impacts on:
             14479          (a) their child or children;
             14480          (b) their family relationship;
             14481          (c) their financial responsibilities for their child or children; and
             14482          (d) that domestic violence has a harmful effect on children and family relationships.
             14483          (6) The Administrative Office of the Courts shall administer the course pursuant to
             14484      [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code, through private or public
             14485      contracts and organize the program in each of Utah's judicial districts. The contracts shall
             14486      provide for the recoupment of administrative expenses through the costs charged to individual
             14487      parties, pursuant to Subsection (8).
             14488          (7) A certificate of completion constitutes evidence to the court of course completion
             14489      by the parties.
             14490          (8) (a) Each party shall pay the costs of the course to the independent contractor
             14491      providing the course at the time and place of the course. A fee of $8 shall be collected, as part
             14492      of the course fee paid by each participant, and deposited in the Children's Legal Defense
             14493      Account, described in Section [ 63-63a-8 ] 51-9-408 .
             14494          (b) Each party who is unable to pay the costs of the course may attend the course
             14495      without payment upon a prima facie showing of impecuniosity as evidenced by an affidavit of
             14496      impecuniosity filed in the district court. In those situations, the independent contractor shall be
             14497      reimbursed for its costs from the appropriation to the Administrative Office of the Courts for
             14498      "Mandatory Educational Course for Divorcing Parents Program." Before a decree of divorce
             14499      may be entered, the court shall make a final review and determination of impecuniosity and may
             14500      order the payment of the costs if so determined.
             14501          (9) Appropriations from the General Fund to the Administrative Office of the Courts
             14502      for the "Mandatory Educational Course for Divorcing Parents Program" shall be used to pay the
             14503      costs of an indigent parent who makes a showing as provided in Subsection (8)(b).
             14504          (10) The Administrative Office of the Courts shall adopt a program to evaluate the
             14505      effectiveness of the mandatory educational course. Progress reports shall be provided annually

             14506      to the Judiciary Interim Committee.
             14507          Section 333. Section 30-3-11.4 is amended to read:
             14508           30-3-11.4. Mandatory orientation course for divorcing parties -- Purpose --
             14509      Curriculum -- Exceptions.
             14510          (1) There is established a mandatory divorce orientation course for all parties with
             14511      minor children who file a petition for temporary separation or for a divorce. A couple with no
             14512      minor children are not required, but may choose to attend the course. The purpose of the
             14513      course shall be to educate parties about the divorce process and reasonable alternatives.
             14514          (2) A petitioner shall attend a divorce orientation course no more than 60 days after
             14515      filing a petition for divorce.
             14516          (3) The respondent shall attend the divorce orientation course no more than 30 days
             14517      after being served with a petition for divorce.
             14518          (4) The clerk of the court shall provide notice to a petitioner of the requirement for the
             14519      course, and information regarding the course shall be included with the petition or motion, when
             14520      served on the respondent.
             14521          (5) The divorce orientation course shall be neutral, unbiased, at least one hour in
             14522      duration, and include:
             14523          (a) options available as alternatives to divorce;
             14524          (b) resources available from courts and administrative agencies for resolving custody
             14525      and support issues without filing for divorce;
             14526          (c) resources available to improve or strengthen the marriage;
             14527          (d) a discussion of the positive and negative consequences of divorce;
             14528          (e) a discussion of the process of divorce;
             14529          (f) options available for proceeding with a divorce, including:
             14530          (i) mediation;
             14531          (ii) collaborative law; and
             14532          (iii) litigation; and
             14533          (g) a discussion of post-divorce resources.

             14534          (6) The course may be provided in conjunction with the mandatory course for divorcing
             14535      parents required by Section 30-3-11.3 .
             14536          (7) The Administrative Office of the Courts shall administer the course pursuant to
             14537      [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code, through private or public
             14538      contracts.
             14539          (8) Each participant shall pay the costs of the course, which may not exceed $20, to the
             14540      independent contractor providing the course at the time and place of the course.
             14541          (a) A fee of $5 shall be collected, as part of the course fee paid by each participant, and
             14542      deposited in the Children's Legal Defense Account described in Section [ 63-63a-8 ] 51-9-408 .
             14543          (b) A participant who is unable to pay the costs of the course may attend without
             14544      payment and request an Affidavit of Impecuniosity from the provider to be filed with the
             14545      petition or motion. The provider shall be reimbursed for its costs by the Administrative Office
             14546      of the Courts. A petitioner who is later determined not to meet the qualifications for
             14547      impecuniosity may be ordered to pay the costs of the course.
             14548          (9) Appropriations from the General Fund to the Administrative Office of the Courts
             14549      for the divorce orientation course shall be used to pay the costs of an indigent petitioner who is
             14550      determined to be impecunious as provided in Subsection (8)(b).
             14551          (10) The Online Court Assistance Program shall include instructions with the forms for
             14552      divorce which inform the petitioner of the requirement of this section.
             14553          (11) Both parties shall attend a divorce orientation course before a divorce decree may
             14554      be entered, unless waived by the court. A certificate of completion constitutes evidence to the
             14555      court of course completion by the parties.
             14556          (12) It shall be an affirmative defense in all divorce actions that the divorce orientation
             14557      requirement was not complied with, and the action may not continue until a party has complied.
             14558          (13) The Administrative Office of the Courts shall adopt a program to evaluate the
             14559      effectiveness of the mandatory educational course. Progress reports shall be provided annually
             14560      to the Judiciary Interim Committee.
             14561          Section 334. Section 30-3-38 is amended to read:

             14562           30-3-38. Pilot Program for Expedited Parent-time Enforcement.
             14563          (1) There is established an Expedited Parent-time Enforcement Pilot Program in the
             14564      third judicial district to be administered by the Administrative Office of the Courts from July 1,
             14565      2003, to July 1, 2007.
             14566          (2) As used in this section:
             14567          (a) "Mediator" means a person who:
             14568          (i) is qualified to mediate parent-time disputes under criteria established by the
             14569      Administrative Office of the Courts; and
             14570          (ii) agrees to follow billing guidelines established by the Administrative Office of the
             14571      Courts and this section.
             14572          (b) "Services to facilitate parent-time" or "services" means services designed to assist
             14573      families in resolving parent-time problems through:
             14574          (i) counseling;
             14575          (ii) supervised parent-time;
             14576          (iii) neutral drop-off and pick-up;
             14577          (iv) educational classes; and
             14578          (v) other related activities.
             14579          (3) (a) Under this pilot program, if a parent files a motion in the third district court
             14580      alleging that court-ordered parent-time rights are being violated, the clerk of the court, after
             14581      assigning the case to a judge, shall refer the case to the administrator of this pilot program for
             14582      assignment to a mediator.
             14583          (b) Upon receipt of a case, the mediator shall:
             14584          (i) meet with the parents to address parent-time issues within 15 days of the motion
             14585      being filed;
             14586          (ii) assess the situation;
             14587          (iii) facilitate an agreement on parent-time between the parents; and
             14588          (iv) determine whether a referral to a service provider under Subsection (3)(c) is
             14589      warranted.

             14590          (c) While a case is in mediation, a mediator may refer the parents to a service provider
             14591      designated by the Department of Human Services for services to facilitate parent-time if:
             14592          (i) the services may be of significant benefit to the parents; or
             14593          (ii) (A) a mediated agreement between the parents is unlikely; and
             14594          (B) the services may facilitate an agreement.
             14595          (d) At any time during mediation, a mediator shall terminate mediation and transfer the
             14596      case to the administrator of the pilot program for referral to the judge or court commissioner to
             14597      whom the case was assigned under Subsection (3)(a) if:
             14598          (i) a written agreement between the parents is reached; or
             14599          (ii) the parents are unable to reach an agreement through mediation and:
             14600          (A) the parents have received services to facilitate parent-time;
             14601          (B) both parents object to receiving services to facilitate parent-time; or
             14602          (C) the parents are unlikely to benefit from receiving services to facilitate parent-time.
             14603          (e) Upon receiving a case from the administrator of the pilot program, a judge or court
             14604      commissioner may:
             14605          (i) review the agreement of the parents and, if acceptable, sign it as an order;
             14606          (ii) order the parents to receive services to facilitate parent-time;
             14607          (iii) proceed with the case; or
             14608          (iv) take other appropriate action.
             14609          (4) (a) If a parent makes a particularized allegation of physical or sexual abuse of a child
             14610      who is the subject of a parent-time order against the other parent or a member of the other
             14611      parent's household to a mediator or service provider, the mediator or service provider shall
             14612      immediately report that information to:
             14613          (i) the judge assigned to the case who may immediately issue orders and take other
             14614      appropriate action to resolve the allegation and protect the child; and
             14615          (ii) the Division of Child and Family Services within the Department of Human Services
             14616      in the manner required by Title 62A, Chapter 4a, Part 4, Child Abuse or Neglect Reporting
             14617      Requirements.

             14618          (b) If an allegation under Subsection (4)(a) is made against a parent with parent-time
             14619      rights or a member of that parent's household, parent-time by that parent shall, pursuant to an
             14620      order of the court, be supervised until:
             14621          (i) the allegation has been resolved; or
             14622          (ii) a court orders otherwise.
             14623          (c) Notwithstanding an allegation under Subsection (4)(a), a mediator may continue to
             14624      mediate parent-time problems and a service provider may continue to provide services to
             14625      facilitate parent-time unless otherwise ordered by a court.
             14626          (5) (a) The Department of Human Services may contract with one or more entities in
             14627      accordance with [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code, to
             14628      provide:
             14629          (i) services to facilitate parent-time;
             14630          (ii) case management services; and
             14631          (iii) administrative services.
             14632          (b) An entity who contracts with the Department of Human Services under Subsection
             14633      (5)(a) shall:
             14634          (i) be qualified to provide one or more of the services listed in Subsection (5)(a); and
             14635          (ii) agree to follow billing guidelines established by the Department of Human Services
             14636      and this section.
             14637          (6) (a) Except as provided in Subsection (6)(b), the cost of mediation shall be:
             14638          (i) reduced to a sum certain;
             14639          (ii) divided equally between the parents; and
             14640          (iii) charged against each parent taking into account the ability of that parent to pay
             14641      under billing guidelines adopted in accordance with this section.
             14642          (b) A judge may order a parent to pay an amount in excess of that provided for in
             14643      Subsection (6)(a) if the parent:
             14644          (i) failed to participate in good faith in mediation or services to facilitate parent-time; or
             14645          (ii) made an unfounded assertion or claim of physical or sexual abuse of a child.

             14646          (c) (i) The cost of mediation and services to facilitate parent-time may be charged to
             14647      parents at periodic intervals.
             14648          (ii) Mediation and services to facilitate parent-time may only be terminated on the
             14649      ground of nonpayment if both parents are delinquent.
             14650          (7) If a parent fails to cooperate in good faith in mediation or services to facilitate
             14651      parent-time, a court may order, in subsequent proceedings, a temporary change in custody or
             14652      parent-time.
             14653          (8) (a) The Judicial Council may make rules to implement and administer the provisions
             14654      of this pilot program related to mediation.
             14655          (b) The Department of Human Services may make rules to implement and administer
             14656      the provisions of this pilot program related to services to facilitate parent-time.
             14657          (9) (a) The Administrative Office of the Courts shall adopt outcome measures to
             14658      evaluate the effectiveness of the mediation component of this pilot program. Progress reports
             14659      shall be provided to the Judiciary Interim Committee as requested by the committee. At least
             14660      once during this pilot program, the Administrative Office of the Courts shall present to the
             14661      committee the results of a survey that measures the effectiveness of the program in terms of
             14662      increased compliance with parent-time orders and the responses of interested persons.
             14663          (b) The Department of Human Services shall adopt outcome measures to evaluate the
             14664      effectiveness of the services component of this pilot program. Progress reports shall be
             14665      provided to the Judiciary Interim Committee as requested by the committee.
             14666          (c) The Administrative Office of the Courts and the Department of Human Services
             14667      may adopt joint outcome measures and file joint reports to satisfy the requirements of
             14668      Subsections (8)(a) and (b).
             14669          (10) (a) The Department of Human Services shall, by following the procedures and
             14670      requirements of [Title 63, Chapter 38e] Title 63J, Chapter 5, Federal Funds Procedures, apply
             14671      for federal funds as available.
             14672          (b) This pilot program shall be funded through funds received under Subsection (10)(a).
             14673          Section 335. Section 31A-1-103 is amended to read:

             14674           31A-1-103. Scope and applicability of title.
             14675          (1) This title does not apply to:
             14676          (a) a retainer contract made by an attorney-at-law:
             14677          (i) with an individual client; and
             14678          (ii) under which fees are based on estimates of the nature and amount of services to be
             14679      provided to the specific client;
             14680          (b) a contract similar to a contract described in Subsection (1)(a) made with a group of
             14681      clients involved in the same or closely related legal matters;
             14682          (c) an arrangement for providing benefits that do not exceed a limited amount of
             14683      consultations, advice on simple legal matters, either alone or in combination with referral
             14684      services, or the promise of fee discounts for handling other legal matters;
             14685          (d) limited legal assistance on an informal basis involving neither an express contractual
             14686      obligation nor reasonable expectations, in the context of an employment, membership,
             14687      educational, or similar relationship;
             14688          (e) legal assistance by employee organizations to their members in matters relating to
             14689      employment; or
             14690          (f) death, accident, health, or disability benefits provided to a person by an organization
             14691      or its affiliate if:
             14692          (i) the organization is tax exempt under Section 501(c)(3) of the Internal Revenue Code
             14693      and has had its principal place of business in Utah for at least five years;
             14694          (ii) the person is not an employee of the organization; and
             14695          (iii) (A) substantially all the person's time in the organization is spent providing
             14696      voluntary services:
             14697          (I) in furtherance of the organization's purposes;
             14698          (II) for a designated period of time; and
             14699          (III) for which no compensation, other than expenses, is paid; or
             14700          (B) the time since the service under Subsection (1)(f)(iii)(A) was completed is no more
             14701      than 18 months.

             14702          (2) (a) This title restricts otherwise legitimate business activity.
             14703          (b) What this title does not prohibit is permitted unless contrary to other provisions of
             14704      Utah law.
             14705          (3) Except as otherwise expressly provided, this title does not apply to:
             14706          (a) those activities of an insurer where state jurisdiction is preempted by Section 514 of
             14707      the federal Employee Retirement Income Security Act of 1974, as amended;
             14708          (b) ocean marine insurance;
             14709          (c) death, accident, health, or disability benefits provided by an organization if the
             14710      organization:
             14711          (i) has as its principal purpose to achieve charitable, educational, social, or religious
             14712      objectives rather than to provide death, accident, health, or disability benefits;
             14713          (ii) does not incur a legal obligation to pay a specified amount; and
             14714          (iii) does not create reasonable expectations of receiving a specified amount on the part
             14715      of an insured person;
             14716          (d) other business specified in rules adopted by the commissioner on a finding that:
             14717          (i) the transaction of the business in this state does not require regulation for the
             14718      protection of the interests of the residents of this state; or
             14719          (ii) it would be impracticable to require compliance with this title;
             14720          (e) except as provided in Subsection (4), a transaction independently procured through
             14721      negotiations under Section 31A-15-104 ;
             14722          (f) self-insurance;
             14723          (g) reinsurance;
             14724          (h) subject to Subsection (5), employee and labor union group or blanket insurance
             14725      covering risks in this state if:
             14726          (i) the policyholder exists primarily for purposes other than to procure insurance;
             14727          (ii) the policyholder:
             14728          (A) is not a resident of this state;
             14729          (B) is not a domestic corporation; or

             14730          (C) does not have its principal office in this state;
             14731          (iii) no more than 25% of the certificate holders or insureds are residents of this state;
             14732          (iv) on request of the commissioner, the insurer files with the department a copy of the
             14733      policy and a copy of each form or certificate; and
             14734          (v) (A) the insurer agrees to pay premium taxes on the Utah portion of its business, as if
             14735      it were authorized to do business in this state; and
             14736          (B) the insurer provides the commissioner with the security the commissioner considers
             14737      necessary for the payment of premium taxes under Title 59, Chapter 9, Taxation of Admitted
             14738      Insurers;
             14739          (i) to the extent provided in Subsection (6):
             14740          (i) a manufacturer's or seller's warranty; and
             14741          (ii) a manufacturer's or seller's service contract; or
             14742          (j) except to the extent provided in Subsection (7), a public agency insurance mutual.
             14743          (4) A transaction described in Subsection (3)(e) is subject to taxation under Section
             14744      31A-3-301 .
             14745          (5) (a) After a hearing, the commissioner may order an insurer of certain group or
             14746      blanket contracts to transfer the Utah portion of the business otherwise exempted under
             14747      Subsection (3)(h) to an authorized insurer if the contracts have been written by an unauthorized
             14748      insurer.
             14749          (b) If the commissioner finds that the conditions required for the exemption of a group
             14750      or blanket insurer are not satisfied or that adequate protection to residents of this state is not
             14751      provided, the commissioner may require:
             14752          (i) the insurer to be authorized to do business in this state; or
             14753          (ii) that any of the insurer's transactions be subject to this title.
             14754          (6) (a) As used in Subsection (3)(i) and this Subsection (6):
             14755          (i) "manufacturer's or seller's service contract" means a service contract:
             14756          (A) made available by:
             14757          (I) a manufacturer of a product;

             14758          (II) a seller of a product; or
             14759          (III) an affiliate of a manufacturer or seller of a product;
             14760          (B) made available:
             14761          (I) on one or more specific products; or
             14762          (II) on products that are components of a system; and
             14763          (C) under which the person described in Subsection (6)(a)(i)(A) is liable for services to
             14764      be provided under the service contract including, if the manufacturer's or seller's service
             14765      contract designates, providing parts and labor;
             14766          (ii) "manufacturer's or seller's warranty" means the guaranty of:
             14767          (A) (I) the manufacturer of a product;
             14768          (II) a seller of a product; or
             14769          (III) an affiliate of a manufacturer or seller of a product;
             14770          (B) (I) on one or more specific products; or
             14771          (II) on products that are components of a system; and
             14772          (C) under which the person described in Subsection (6)(a)(ii)(A) is liable for services to
             14773      be provided under the warranty, including, if the manufacturer's or seller's warranty designates,
             14774      providing parts and labor; and
             14775          (iii) "service contract" is as defined in Section 31A-6a-101 .
             14776          (b) A manufacturer's or seller's warranty may be designated as:
             14777          (i) a warranty;
             14778          (ii) a guaranty; or
             14779          (iii) a term similar to a term described in Subsection (6)(b)(i) or (ii).
             14780          (c) This title does not apply to:
             14781          (i) a manufacturer's or seller's warranty;
             14782          (ii) a manufacturer's or seller's service contract paid for with consideration that is in
             14783      addition to the consideration paid for the product itself; and
             14784          (iii) a service contract that is not a manufacturer's or seller's warranty or manufacturer's
             14785      or seller's service contract if:

             14786          (A) the service contract is paid for with consideration that is in addition to the
             14787      consideration paid for the product itself;
             14788          (B) the service contract is for the repair or maintenance of goods;
             14789          (C) the cost of the product is equal to an amount determined in accordance with
             14790      Subsection (6)(e); and
             14791          (D) the product is not a motor vehicle.
             14792          (d) This title does not apply to a manufacturer's or seller's warranty or service contract
             14793      paid for with consideration that is in addition to the consideration paid for the product itself
             14794      regardless of whether the manufacturer's or seller's warranty or service contract is sold:
             14795          (i) at the time of the purchase of the product; or
             14796          (ii) at a time other than the time of the purchase of the product.
             14797          (e) (i) For fiscal year 2001-02, the amount described in Subsection (6)(c)(iii)(C) shall be
             14798      equal to $3,700 or less.
             14799          (ii) For each fiscal year after fiscal year 2001-02, the commissioner shall annually
             14800      determine whether the amount described in Subsection (6)(c)(iii)(C) should be adjusted in
             14801      accordance with changes in the Consumer Price Index published by the United States Bureau of
             14802      Labor Statistics selected by the commissioner by rule, between:
             14803          (A) the Consumer Price Index for the February immediately preceding the adjustment;
             14804      and
             14805          (B) the Consumer Price Index for February 2001.
             14806          (iii) If under Subsection (6)(e)(ii) the commissioner determines that an adjustment
             14807      should be made, the commissioner shall make the adjustment by rule.
             14808          (7) (a) For purposes of this Subsection (7), "public agency insurance mutual" means an
             14809      entity formed by two or more political subdivisions or public agencies of the state:
             14810          (i) under Title 11, Chapter 13, Interlocal Cooperation Act; and
             14811          (ii) for the purpose of providing for the political subdivisions or public agencies:
             14812          (A) subject to Subsection (7)(b), insurance coverage; or
             14813          (B) risk management.

             14814          (b) Notwithstanding Subsection (7)(a)(ii)(A), a public agency insurance mutual may not
             14815      provide health insurance unless the public agency insurance mutual provides the health
             14816      insurance using:
             14817          (i) a third party administrator licensed under Chapter 25, Third Party Administrators;
             14818          (ii) an admitted insurer; or
             14819          (iii) a program authorized by Title 49, Chapter 20, Public Employees' Benefit and
             14820      Insurance Program Act.
             14821          (c) Except for this Subsection (7), a public agency insurance mutual is exempt from this
             14822      title.
             14823          (d) A public agency insurance mutual is considered to be a governmental entity and
             14824      political subdivision of the state with all of the rights, privileges, and immunities of a
             14825      governmental entity or political subdivision of the state including all the rights and benefits of
             14826      [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah.
             14827          Section 336. Section 31A-1-301 is amended to read:
             14828           31A-1-301. Definitions.
             14829          As used in this title, unless otherwise specified:
             14830          (1) (a) "Accident and health insurance" means insurance to provide protection against
             14831      economic losses resulting from:
             14832          (i) a medical condition including:
             14833          (A) medical care expenses; or
             14834          (B) the risk of disability;
             14835          (ii) accident; or
             14836          (iii) sickness.
             14837          (b) "Accident and health insurance":
             14838          (i) includes a contract with disability contingencies including:
             14839          (A) an income replacement contract;
             14840          (B) a health care contract;
             14841          (C) an expense reimbursement contract;

             14842          (D) a credit accident and health contract;
             14843          (E) a continuing care contract; and
             14844          (F) a long-term care contract; and
             14845          (ii) may provide:
             14846          (A) hospital coverage;
             14847          (B) surgical coverage;
             14848          (C) medical coverage; or
             14849          (D) loss of income coverage.
             14850          (c) "Accident and health insurance" does not include workers' compensation insurance.
             14851          (2) "Actuary" is as defined by the commissioner by rule, made in accordance with [Title
             14852      63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             14853          (3) "Administrator" is defined in Subsection (157).
             14854          (4) "Adult" means a natural person who has attained the age of at least 18 years.
             14855          (5) "Affiliate" means any person who controls, is controlled by, or is under common
             14856      control with, another person. A corporation is an affiliate of another corporation, regardless of
             14857      ownership, if substantially the same group of natural persons manages the corporations.
             14858          (6) "Agency" means:
             14859          (a) a person other than an individual, including a sole proprietorship by which a natural
             14860      person does business under an assumed name; and
             14861          (b) an insurance organization licensed or required to be licensed under Section
             14862      31A-23a-301 .
             14863          (7) "Alien insurer" means an insurer domiciled outside the United States.
             14864          (8) "Amendment" means an endorsement to an insurance policy or certificate.
             14865          (9) "Annuity" means an agreement to make periodical payments for a period certain or
             14866      over the lifetime of one or more natural persons if the making or continuance of all or some of
             14867      the series of the payments, or the amount of the payment, is dependent upon the continuance of
             14868      human life.
             14869          (10) "Application" means a document:

             14870          (a) (i) completed by an applicant to provide information about the risk to be insured;
             14871      and
             14872          (ii) that contains information that is used by the insurer to evaluate risk and decide
             14873      whether to:
             14874          (A) insure the risk under:
             14875          (I) the coverages as originally offered; or
             14876          (II) a modification of the coverage as originally offered; or
             14877          (B) decline to insure the risk; or
             14878          (b) used by the insurer to gather information from the applicant before issuance of an
             14879      annuity contract.
             14880          (11) "Articles" or "articles of incorporation" means the original articles, special laws,
             14881      charters, amendments, restated articles, articles of merger or consolidation, trust instruments,
             14882      and other constitutive documents for trusts and other entities that are not corporations, and
             14883      amendments to any of these.
             14884          (12) "Bail bond insurance" means a guarantee that a person will attend court when
             14885      required, up to and including surrender of the person in execution of any sentence imposed
             14886      under Subsection 77-20-7 (1), as a condition to the release of that person from confinement.
             14887          (13) "Binder" is defined in Section 31A-21-102 .
             14888          (14) "Blanket insurance policy" means a group policy covering classes of persons
             14889      without individual underwriting, where the persons insured are determined by definition of the
             14890      class with or without designating the persons covered.
             14891          (15) "Board," "board of trustees," or "board of directors" means the group of persons
             14892      with responsibility over, or management of, a corporation, however designated.
             14893          (16) "Business entity" means a corporation, association, partnership, limited liability
             14894      company, limited liability partnership, or other legal entity.
             14895          (17) "Business of insurance" is defined in Subsection (84).
             14896          (18) "Business plan" means the information required to be supplied to the commissioner
             14897      under Subsections 31A-5-204 (2)(i) and (j), including the information required when these

             14898      subsections are applicable by reference under:
             14899          (a) Section 31A-7-201 ;
             14900          (b) Section 31A-8-205 ; or
             14901          (c) Subsection 31A-9-205 (2).
             14902          (19) "Bylaws" means the rules adopted for the regulation or management of a
             14903      corporation's affairs, however designated and includes comparable rules for trusts and other
             14904      entities that are not corporations.
             14905          (20) "Captive insurance company" means:
             14906          (a) an insurance company:
             14907          (i) owned by another organization; and
             14908          (ii) whose exclusive purpose is to insure risks of the parent organization and affiliated
             14909      companies; or
             14910          (b) in the case of groups and associations, an insurance organization:
             14911          (i) owned by the insureds; and
             14912          (ii) whose exclusive purpose is to insure risks of:
             14913          (A) member organizations;
             14914          (B) group members; and
             14915          (C) affiliates of:
             14916          (I) member organizations; or
             14917          (II) group members.
             14918          (21) "Casualty insurance" means liability insurance as defined in Subsection (96).
             14919          (22) "Certificate" means evidence of insurance given to:
             14920          (a) an insured under a group insurance policy; or
             14921          (b) a third party.
             14922          (23) "Certificate of authority" is included within the term "license."
             14923          (24) "Claim," unless the context otherwise requires, means a request or demand on an
             14924      insurer for payment of benefits according to the terms of an insurance policy.
             14925          (25) "Claims-made coverage" means an insurance contract or provision limiting

             14926      coverage under a policy insuring against legal liability to claims that are first made against the
             14927      insured while the policy is in force.
             14928          (26) (a) "Commissioner" or "commissioner of insurance" means Utah's insurance
             14929      commissioner.
             14930          (b) When appropriate, the terms listed in Subsection (26)(a) apply to the equivalent
             14931      supervisory official of another jurisdiction.
             14932          (27) (a) "Continuing care insurance" means insurance that:
             14933          (i) provides board and lodging;
             14934          (ii) provides one or more of the following services:
             14935          (A) personal services;
             14936          (B) nursing services;
             14937          (C) medical services; or
             14938          (D) other health-related services; and
             14939          (iii) provides the coverage described in Subsection (27)(a)(i) under an agreement
             14940      effective:
             14941          (A) for the life of the insured; or
             14942          (B) for a period in excess of one year.
             14943          (b) Insurance is continuing care insurance regardless of whether or not the board and
             14944      lodging are provided at the same location as the services described in Subsection (27)(a)(ii).
             14945          (28) (a) "Control," "controlling," "controlled," or "under common control" means the
             14946      direct or indirect possession of the power to direct or cause the direction of the management
             14947      and policies of a person. This control may be:
             14948          (i) by contract;
             14949          (ii) by common management;
             14950          (iii) through the ownership of voting securities; or
             14951          (iv) by a means other than those described in Subsections (28)(a)(i) through (iii).
             14952          (b) There is no presumption that an individual holding an official position with another
             14953      person controls that person solely by reason of the position.

             14954          (c) A person having a contract or arrangement giving control is considered to have
             14955      control despite the illegality or invalidity of the contract or arrangement.
             14956          (d) There is a rebuttable presumption of control in a person who directly or indirectly
             14957      owns, controls, holds with the power to vote, or holds proxies to vote 10% or more of the
             14958      voting securities of another person.
             14959          (29) "Controlled insurer" means a licensed insurer that is either directly or indirectly
             14960      controlled by a producer.
             14961          (30) "Controlling person" means any person that directly or indirectly has the power to
             14962      direct or cause to be directed, the management, control, or activities of a reinsurance
             14963      intermediary.
             14964          (31) "Controlling producer" means a producer who directly or indirectly controls an
             14965      insurer.
             14966          (32) (a) "Corporation" means an insurance corporation, except when referring to:
             14967          (i) a corporation doing business:
             14968          (A) as:
             14969          (I) an insurance producer;
             14970          (II) a limited line producer;
             14971          (III) a consultant;
             14972          (IV) a managing general agent;
             14973          (V) a reinsurance intermediary;
             14974          (VI) a third party administrator; or
             14975          (VII) an adjuster; and
             14976          (B) under:
             14977          (I) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
             14978      Reinsurance Intermediaries;
             14979          (II) Chapter 25, Third Party Administrators; or
             14980          (III) Chapter 26, Insurance Adjusters; or
             14981          (ii) a noninsurer that is part of a holding company system under Chapter 16, Insurance

             14982      Holding Companies.
             14983          (b) "Stock corporation" means a stock insurance corporation.
             14984          (c) "Mutual" or "mutual corporation" means a mutual insurance corporation.
             14985          (33) "Creditable coverage" has the same meaning as provided in federal regulations
             14986      adopted pursuant to the Health Insurance Portability and Accountability Act of 1996, Pub. L.
             14987      104-191, 110 Stat. 1936.
             14988          (34) "Credit accident and health insurance" means insurance on a debtor to provide
             14989      indemnity for payments coming due on a specific loan or other credit transaction while the
             14990      debtor is disabled.
             14991          (35) (a) "Credit insurance" means insurance offered in connection with an extension of
             14992      credit that is limited to partially or wholly extinguishing that credit obligation.
             14993          (b) "Credit insurance" includes:
             14994          (i) credit accident and health insurance;
             14995          (ii) credit life insurance;
             14996          (iii) credit property insurance;
             14997          (iv) credit unemployment insurance;
             14998          (v) guaranteed automobile protection insurance;
             14999          (vi) involuntary unemployment insurance;
             15000          (vii) mortgage accident and health insurance;
             15001          (viii) mortgage guaranty insurance; and
             15002          (ix) mortgage life insurance.
             15003          (36) "Credit life insurance" means insurance on the life of a debtor in connection with
             15004      an extension of credit that pays a person if the debtor dies.
             15005          (37) "Credit property insurance" means insurance:
             15006          (a) offered in connection with an extension of credit; and
             15007          (b) that protects the property until the debt is paid.
             15008          (38) "Credit unemployment insurance" means insurance:
             15009          (a) offered in connection with an extension of credit; and

             15010          (b) that provides indemnity if the debtor is unemployed for payments coming due on a:
             15011          (i) specific loan; or
             15012          (ii) credit transaction.
             15013          (39) "Creditor" means a person, including an insured, having any claim, whether:
             15014          (a) matured;
             15015          (b) unmatured;
             15016          (c) liquidated;
             15017          (d) unliquidated;
             15018          (e) secured;
             15019          (f) unsecured;
             15020          (g) absolute;
             15021          (h) fixed; or
             15022          (i) contingent.
             15023          (40) (a) "Customer service representative" means a person that provides insurance
             15024      services and insurance product information:
             15025          (i) for the customer service representative's:
             15026          (A) producer; or
             15027          (B) consultant employer; and
             15028          (ii) to the customer service representative's employer's:
             15029          (A) customer;
             15030          (B) client; or
             15031          (C) organization.
             15032          (b) A customer service representative may only operate within the scope of authority of
             15033      the customer service representative's producer or consultant employer.
             15034          (41) "Deadline" means the final date or time:
             15035          (a) imposed by:
             15036          (i) statute;
             15037          (ii) rule; or

             15038          (iii) order; and
             15039          (b) by which a required filing or payment must be received by the department.
             15040          (42) "Deemer clause" means a provision under this title under which upon the
             15041      occurrence of a condition precedent, the commissioner is deemed to have taken a specific
             15042      action. If the statute so provides, the condition precedent may be the commissioner's failure to
             15043      take a specific action.
             15044          (43) "Degree of relationship" means the number of steps between two persons
             15045      determined by counting the generations separating one person from a common ancestor and
             15046      then counting the generations to the other person.
             15047          (44) "Department" means the Insurance Department.
             15048          (45) "Director" means a member of the board of directors of a corporation.
             15049          (46) "Disability" means a physiological or psychological condition that partially or
             15050      totally limits an individual's ability to:
             15051          (a) perform the duties of:
             15052          (i) that individual's occupation; or
             15053          (ii) any occupation for which the individual is reasonably suited by education, training,
             15054      or experience; or
             15055          (b) perform two or more of the following basic activities of daily living:
             15056          (i) eating;
             15057          (ii) toileting;
             15058          (iii) transferring;
             15059          (iv) bathing; or
             15060          (v) dressing.
             15061          (47) "Disability income insurance" is defined in Subsection (75).
             15062          (48) "Domestic insurer" means an insurer organized under the laws of this state.
             15063          (49) "Domiciliary state" means the state in which an insurer:
             15064          (a) is incorporated;
             15065          (b) is organized; or

             15066          (c) in the case of an alien insurer, enters into the United States.
             15067          (50) (a) "Eligible employee" means:
             15068          (i) an employee who:
             15069          (A) works on a full-time basis; and
             15070          (B) has a normal work week of 30 or more hours; or
             15071          (ii) a person described in Subsection (50)(b).
             15072          (b) "Eligible employee" includes, if the individual is included under a health benefit plan
             15073      of a small employer:
             15074          (i) a sole proprietor;
             15075          (ii) a partner in a partnership; or
             15076          (iii) an independent contractor.
             15077          (c) "Eligible employee" does not include, unless eligible under Subsection (50)(b):
             15078          (i) an individual who works on a temporary or substitute basis for a small employer;
             15079          (ii) an employer's spouse; or
             15080          (iii) a dependent of an employer.
             15081          (51) "Employee" means any individual employed by an employer.
             15082          (52) "Employee benefits" means one or more benefits or services provided to:
             15083          (a) employees; or
             15084          (b) dependents of employees.
             15085          (53) (a) "Employee welfare fund" means a fund:
             15086          (i) established or maintained, whether directly or through trustees, by:
             15087          (A) one or more employers;
             15088          (B) one or more labor organizations; or
             15089          (C) a combination of employers and labor organizations; and
             15090          (ii) that provides employee benefits paid or contracted to be paid, other than income
             15091      from investments of the fund, by or on behalf of an employer doing business in this state or for
             15092      the benefit of any person employed in this state.
             15093          (b) "Employee welfare fund" includes a plan funded or subsidized by user fees or tax

             15094      revenues.
             15095          (54) "Endorsement" means a written agreement attached to a policy or certificate to
             15096      modify one or more of the provisions of the policy or certificate.
             15097          (55) "Enrollment date," with respect to a health benefit plan, means the first day of
             15098      coverage or, if there is a waiting period, the first day of the waiting period.
             15099          (56) (a) "Escrow" means:
             15100          (i) a real estate settlement or real estate closing conducted by a third party pursuant to
             15101      the requirements of a written agreement between the parties in a real estate transaction; or
             15102          (ii) a settlement or closing involving:
             15103          (A) a mobile home;
             15104          (B) a grazing right;
             15105          (C) a water right; or
             15106          (D) other personal property authorized by the commissioner.
             15107          (b) "Escrow" includes the act of conducting a:
             15108          (i) real estate settlement; or
             15109          (ii) real estate closing.
             15110          (57) "Escrow agent" means:
             15111          (a) an insurance producer with:
             15112          (i) a title insurance line of authority; and
             15113          (ii) an escrow subline of authority; or
             15114          (b) a person defined as an escrow agent in Section 7-22-101 .
             15115          (58) "Excludes" is not exhaustive and does not mean that other things are not also
             15116      excluded. The items listed are representative examples for use in interpretation of this title.
             15117          (59) "Expense reimbursement insurance" means insurance:
             15118          (a) written to provide payments for expenses relating to hospital confinements resulting
             15119      from illness or injury; and
             15120          (b) written:
             15121          (i) as a daily limit for a specific number of days in a hospital; and

             15122          (ii) to have a one or two day waiting period following a hospitalization.
             15123          (60) "Fidelity insurance" means insurance guaranteeing the fidelity of persons holding
             15124      positions of public or private trust.
             15125          (61) (a) "Filed" means that a filing is:
             15126          (i) submitted to the department as required by and in accordance with any applicable
             15127      statute, rule, or filing order;
             15128          (ii) received by the department within the time period provided in the applicable statute,
             15129      rule, or filing order; and
             15130          (iii) accompanied by the appropriate fee in accordance with:
             15131          (A) Section 31A-3-103 ; or
             15132          (B) rule.
             15133          (b) "Filed" does not include a filing that is rejected by the department because it is not
             15134      submitted in accordance with Subsection (61)(a).
             15135          (62) "Filing," when used as a noun, means an item required to be filed with the
             15136      department including:
             15137          (a) a policy;
             15138          (b) a rate;
             15139          (c) a form;
             15140          (d) a document;
             15141          (e) a plan;
             15142          (f) a manual;
             15143          (g) an application;
             15144          (h) a report;
             15145          (i) a certificate;
             15146          (j) an endorsement;
             15147          (k) an actuarial certification;
             15148          (l) a licensee annual statement;
             15149          (m) a licensee renewal application; or

             15150          (n) an advertisement.
             15151          (63) "First party insurance" means an insurance policy or contract in which the insurer
             15152      agrees to pay claims submitted to it by the insured for the insured's losses.
             15153          (64) "Foreign insurer" means an insurer domiciled outside of this state, including an
             15154      alien insurer.
             15155          (65) (a) "Form" means one of the following prepared for general use:
             15156          (i) a policy;
             15157          (ii) a certificate;
             15158          (iii) an application; or
             15159          (iv) an outline of coverage.
             15160          (b) "Form" does not include a document specially prepared for use in an individual case.
             15161          (66) "Franchise insurance" means individual insurance policies provided through a mass
             15162      marketing arrangement involving a defined class of persons related in some way other than
             15163      through the purchase of insurance.
             15164          (67) "General lines of authority" include:
             15165          (a) the general lines of insurance in Subsection (68);
             15166          (b) title insurance under one of the following sublines of authority:
             15167          (i) search, including authority to act as a title marketing representative;
             15168          (ii) escrow, including authority to act as a title marketing representative;
             15169          (iii) search and escrow, including authority to act as a title marketing representative;
             15170      and
             15171          (iv) title marketing representative only;
             15172          (c) surplus lines;
             15173          (d) workers' compensation; and
             15174          (e) any other line of insurance that the commissioner considers necessary to recognize
             15175      in the public interest.
             15176          (68) "General lines of insurance" include:
             15177          (a) accident and health;

             15178          (b) casualty;
             15179          (c) life;
             15180          (d) personal lines;
             15181          (e) property; and
             15182          (f) variable contracts, including variable life and annuity.
             15183          (69) "Group health plan" means an employee welfare benefit plan to the extent that the
             15184      plan provides medical care:
             15185          (a) (i) to employees; or
             15186          (ii) to a dependent of an employee; and
             15187          (b) (i) directly;
             15188          (ii) through insurance reimbursement; or
             15189          (iii) through any other method.
             15190          (70) (a) "Group insurance policy" means a policy covering a group of persons that is
             15191      issued:
             15192          (i) to a policyholder on behalf of the group; and
             15193          (ii) for the benefit of group members who are selected under procedures defined in:
             15194          (A) the policy; or
             15195          (B) agreements which are collateral to the policy.
             15196          (b) A group insurance policy may include members of the policyholder's family or
             15197      dependents.
             15198          (71) "Guaranteed automobile protection insurance" means insurance offered in
             15199      connection with an extension of credit that pays the difference in amount between the insurance
             15200      settlement and the balance of the loan if the insured automobile is a total loss.
             15201          (72) (a) Except as provided in Subsection (72)(b), "health benefit plan" means a policy
             15202      or certificate that:
             15203          (i) provides health care insurance;
             15204          (ii) provides major medical expense insurance; or
             15205          (iii) is offered as a substitute for hospital or medical expense insurance such as:

             15206          (A) a hospital confinement indemnity; or
             15207          (B) a limited benefit plan.
             15208          (b) "Health benefit plan" does not include a policy or certificate that:
             15209          (i) provides benefits solely for:
             15210          (A) accident;
             15211          (B) dental;
             15212          (C) income replacement;
             15213          (D) long-term care;
             15214          (E) a Medicare supplement;
             15215          (F) a specified disease;
             15216          (G) vision; or
             15217          (H) a short-term limited duration; or
             15218          (ii) is offered and marketed as supplemental health insurance.
             15219          (73) "Health care" means any of the following intended for use in the diagnosis,
             15220      treatment, mitigation, or prevention of a human ailment or impairment:
             15221          (a) professional services;
             15222          (b) personal services;
             15223          (c) facilities;
             15224          (d) equipment;
             15225          (e) devices;
             15226          (f) supplies; or
             15227          (g) medicine.
             15228          (74) (a) "Health care insurance" or "health insurance" means insurance providing:
             15229          (i) health care benefits; or
             15230          (ii) payment of incurred health care expenses.
             15231          (b) "Health care insurance" or "health insurance" does not include accident and health
             15232      insurance providing benefits for:
             15233          (i) replacement of income;

             15234          (ii) short-term accident;
             15235          (iii) fixed indemnity;
             15236          (iv) credit accident and health;
             15237          (v) supplements to liability;
             15238          (vi) workers' compensation;
             15239          (vii) automobile medical payment;
             15240          (viii) no-fault automobile;
             15241          (ix) equivalent self-insurance; or
             15242          (x) any type of accident and health insurance coverage that is a part of or attached to
             15243      another type of policy.
             15244          (75) "Income replacement insurance" or "disability income insurance" means insurance
             15245      written to provide payments to replace income lost from accident or sickness.
             15246          (76) "Indemnity" means the payment of an amount to offset all or part of an insured
             15247      loss.
             15248          (77) "Independent adjuster" means an insurance adjuster required to be licensed under
             15249      Section 31A-26-201 who engages in insurance adjusting as a representative of insurers.
             15250          (78) "Independently procured insurance" means insurance procured under Section
             15251      31A-15-104 .
             15252          (79) "Individual" means a natural person.
             15253          (80) "Inland marine insurance" includes insurance covering:
             15254          (a) property in transit on or over land;
             15255          (b) property in transit over water by means other than boat or ship;
             15256          (c) bailee liability;
             15257          (d) fixed transportation property such as bridges, electric transmission systems, radio
             15258      and television transmission towers and tunnels; and
             15259          (e) personal and commercial property floaters.
             15260          (81) "Insolvency" means that:
             15261          (a) an insurer is unable to pay its debts or meet its obligations as they mature;

             15262          (b) an insurer's total adjusted capital is less than the insurer's mandatory control level
             15263      RBC under Subsection 31A-17-601 (8)(c); or
             15264          (c) an insurer is determined to be hazardous under this title.
             15265          (82) (a) "Insurance" means:
             15266          (i) an arrangement, contract, or plan for the transfer of a risk or risks from one or more
             15267      persons to one or more other persons; or
             15268          (ii) an arrangement, contract, or plan for the distribution of a risk or risks among a
             15269      group of persons that includes the person seeking to distribute that person's risk.
             15270          (b) "Insurance" includes:
             15271          (i) risk distributing arrangements providing for compensation or replacement for
             15272      damages or loss through the provision of services or benefits in kind;
             15273          (ii) contracts of guaranty or suretyship entered into by the guarantor or surety as a
             15274      business and not as merely incidental to a business transaction; and
             15275          (iii) plans in which the risk does not rest upon the person who makes the arrangements,
             15276      but with a class of persons who have agreed to share it.
             15277          (83) "Insurance adjuster" means a person who directs the investigation, negotiation, or
             15278      settlement of a claim under an insurance policy other than life insurance or an annuity, on behalf
             15279      of an insurer, policyholder, or a claimant under an insurance policy.
             15280          (84) "Insurance business" or "business of insurance" includes:
             15281          (a) providing health care insurance, as defined in Subsection (74), by organizations that
             15282      are or should be licensed under this title;
             15283          (b) providing benefits to employees in the event of contingencies not within the control
             15284      of the employees, in which the employees are entitled to the benefits as a right, which benefits
             15285      may be provided either:
             15286          (i) by single employers or by multiple employer groups; or
             15287          (ii) through trusts, associations, or other entities;
             15288          (c) providing annuities, including those issued in return for gifts, except those provided
             15289      by persons specified in Subsections 31A-22-1305 (2) and (3);

             15290          (d) providing the characteristic services of motor clubs as outlined in Subsection (112);
             15291          (e) providing other persons with insurance as defined in Subsection (82);
             15292          (f) making as insurer, guarantor, or surety, or proposing to make as insurer, guarantor,
             15293      or surety, any contract or policy of title insurance;
             15294          (g) transacting or proposing to transact any phase of title insurance, including:
             15295          (i) solicitation;
             15296          (ii) negotiation preliminary to execution;
             15297          (iii) execution of a contract of title insurance;
             15298          (iv) insuring; and
             15299          (v) transacting matters subsequent to the execution of the contract and arising out of
             15300      the contract, including reinsurance; and
             15301          (h) doing, or proposing to do, any business in substance equivalent to Subsections
             15302      (84)(a) through (g) in a manner designed to evade the provisions of this title.
             15303          (85) "Insurance consultant" or "consultant" means a person who:
             15304          (a) advises other persons about insurance needs and coverages;
             15305          (b) is compensated by the person advised on a basis not directly related to the insurance
             15306      placed; and
             15307          (c) except as provided in Section 31A-23a-501 , is not compensated directly or
             15308      indirectly by an insurer or producer for advice given.
             15309          (86) "Insurance holding company system" means a group of two or more affiliated
             15310      persons, at least one of whom is an insurer.
             15311          (87) (a) "Insurance producer" or "producer" means a person licensed or required to be
             15312      licensed under the laws of this state to sell, solicit, or negotiate insurance.
             15313          (b) With regards to the selling, soliciting, or negotiating of an insurance product to an
             15314      insurance customer or an insured:
             15315          (i) "producer for the insurer" means a producer who is compensated directly or
             15316      indirectly by an insurer for selling, soliciting, or negotiating any product of that insurer; and
             15317          (ii) "producer for the insured" means a producer who:

             15318          (A) is compensated directly and only by an insurance customer or an insured; and
             15319          (B) receives no compensation directly or indirectly from an insurer for selling, soliciting,
             15320      or negotiating any product of that insurer to an insurance customer or insured.
             15321          (88) (a) "Insured" means a person to whom or for whose benefit an insurer makes a
             15322      promise in an insurance policy and includes:
             15323          (i) policyholders;
             15324          (ii) subscribers;
             15325          (iii) members; and
             15326          (iv) beneficiaries.
             15327          (b) The definition in Subsection (88)(a):
             15328          (i) applies only to this title; and
             15329          (ii) does not define the meaning of this word as used in insurance policies or certificates.
             15330          (89) (a) (i) "Insurer" means any person doing an insurance business as a principal
             15331      including:
             15332          (A) fraternal benefit societies;
             15333          (B) issuers of gift annuities other than those specified in Subsections 31A-22-1305 (2)
             15334      and (3);
             15335          (C) motor clubs;
             15336          (D) employee welfare plans; and
             15337          (E) any person purporting or intending to do an insurance business as a principal on that
             15338      person's own account.
             15339          (ii) "Insurer" does not include a governmental entity to the extent it is engaged in the
             15340      activities described in Section 31A-12-107 .
             15341          (b) "Admitted insurer" is defined in Subsection (161)(b).
             15342          (c) "Alien insurer" is defined in Subsection (7).
             15343          (d) "Authorized insurer" is defined in Subsection (161)(b).
             15344          (e) "Domestic insurer" is defined in Subsection (48).
             15345          (f) "Foreign insurer" is defined in Subsection (64).

             15346          (g) "Nonadmitted insurer" is defined in Subsection (161)(a).
             15347          (h) "Unauthorized insurer" is defined in Subsection (161)(a).
             15348          (90) "Interinsurance exchange" is defined in Subsection (141).
             15349          (91) "Involuntary unemployment insurance" means insurance:
             15350          (a) offered in connection with an extension of credit;
             15351          (b) that provides indemnity if the debtor is involuntarily unemployed for payments
             15352      coming due on a:
             15353          (i) specific loan; or
             15354          (ii) credit transaction.
             15355          (92) "Large employer," in connection with a health benefit plan, means an employer
             15356      who, with respect to a calendar year and to a plan year:
             15357          (a) employed an average of at least 51 eligible employees on each business day during
             15358      the preceding calendar year; and
             15359          (b) employs at least two employees on the first day of the plan year.
             15360          (93) "Late enrollee," with respect to an employer health benefit plan, means an
             15361      individual whose enrollment is a late enrollment.
             15362          (94) "Late enrollment," with respect to an employer health benefit plan, means
             15363      enrollment of an individual other than:
             15364          (a) on the earliest date on which coverage can become effective for the individual under
             15365      the terms of the plan; or
             15366          (b) through special enrollment.
             15367          (95) (a) Except for a retainer contract or legal assistance described in Section
             15368      31A-1-103 , "legal expense insurance" means insurance written to indemnify or pay for specified
             15369      legal expenses.
             15370          (b) "Legal expense insurance" includes arrangements that create reasonable
             15371      expectations of enforceable rights.
             15372          (c) "Legal expense insurance" does not include the provision of, or reimbursement for,
             15373      legal services incidental to other insurance coverages.

             15374          (96) (a) "Liability insurance" means insurance against liability:
             15375          (i) for death, injury, or disability of any human being, or for damage to property,
             15376      exclusive of the coverages under:
             15377          (A) Subsection (106) for medical malpractice insurance;
             15378          (B) Subsection (133) for professional liability insurance; and
             15379          (C) Subsection (166) for workers' compensation insurance;
             15380          (ii) for medical, hospital, surgical, and funeral benefits to persons other than the insured
             15381      who are injured, irrespective of legal liability of the insured, when issued with or supplemental
             15382      to insurance against legal liability for the death, injury, or disability of human beings, exclusive
             15383      of the coverages under:
             15384          (A) Subsection (106) for medical malpractice insurance;
             15385          (B) Subsection (133) for professional liability insurance; and
             15386          (C) Subsection (166) for workers' compensation insurance;
             15387          (iii) for loss or damage to property resulting from accidents to or explosions of boilers,
             15388      pipes, pressure containers, machinery, or apparatus;
             15389          (iv) for loss or damage to any property caused by the breakage or leakage of sprinklers,
             15390      water pipes and containers, or by water entering through leaks or openings in buildings; or
             15391          (v) for other loss or damage properly the subject of insurance not within any other kind
             15392      or kinds of insurance as defined in this chapter, if such insurance is not contrary to law or public
             15393      policy.
             15394          (b) "Liability insurance" includes:
             15395          (i) vehicle liability insurance as defined in Subsection (163);
             15396          (ii) residential dwelling liability insurance as defined in Subsection (144); and
             15397          (iii) making inspection of, and issuing certificates of inspection upon, elevators, boilers,
             15398      machinery, and apparatus of any kind when done in connection with insurance on them.
             15399          (97) (a) "License" means the authorization issued by the commissioner to engage in
             15400      some activity that is part of or related to the insurance business.
             15401          (b) "License" includes certificates of authority issued to insurers.

             15402          (98) (a) "Life insurance" means insurance on human lives and insurances pertaining to
             15403      or connected with human life.
             15404          (b) The business of life insurance includes:
             15405          (i) granting death benefits;
             15406          (ii) granting annuity benefits;
             15407          (iii) granting endowment benefits;
             15408          (iv) granting additional benefits in the event of death by accident;
             15409          (v) granting additional benefits to safeguard the policy against lapse; and
             15410          (vi) providing optional methods of settlement of proceeds.
             15411          (99) "Limited license" means a license that:
             15412          (a) is issued for a specific product of insurance; and
             15413          (b) limits an individual or agency to transact only for that product or insurance.
             15414          (100) "Limited line credit insurance" includes the following forms of insurance:
             15415          (a) credit life;
             15416          (b) credit accident and health;
             15417          (c) credit property;
             15418          (d) credit unemployment;
             15419          (e) involuntary unemployment;
             15420          (f) mortgage life;
             15421          (g) mortgage guaranty;
             15422          (h) mortgage accident and health;
             15423          (i) guaranteed automobile protection; and
             15424          (j) any other form of insurance offered in connection with an extension of credit that:
             15425          (i) is limited to partially or wholly extinguishing the credit obligation; and
             15426          (ii) the commissioner determines by rule should be designated as a form of limited line
             15427      credit insurance.
             15428          (101) "Limited line credit insurance producer" means a person who sells, solicits, or
             15429      negotiates one or more forms of limited line credit insurance coverage to individuals through a

             15430      master, corporate, group, or individual policy.
             15431          (102) "Limited line insurance" includes:
             15432          (a) bail bond;
             15433          (b) limited line credit insurance;
             15434          (c) legal expense insurance;
             15435          (d) motor club insurance;
             15436          (e) rental car-related insurance;
             15437          (f) travel insurance; and
             15438          (g) any other form of limited insurance that the commissioner determines by rule should
             15439      be designated a form of limited line insurance.
             15440          (103) "Limited lines authority" includes:
             15441          (a) the lines of insurance listed in Subsection (102); and
             15442          (b) a customer service representative.
             15443          (104) "Limited lines producer" means a person who sells, solicits, or negotiates limited
             15444      lines insurance.
             15445          (105) (a) "Long-term care insurance" means an insurance policy or rider advertised,
             15446      marketed, offered, or designated to provide coverage:
             15447          (i) in a setting other than an acute care unit of a hospital;
             15448          (ii) for not less than 12 consecutive months for each covered person on the basis of:
             15449          (A) expenses incurred;
             15450          (B) indemnity;
             15451          (C) prepayment; or
             15452          (D) another method;
             15453          (iii) for one or more necessary or medically necessary services that are:
             15454          (A) diagnostic;
             15455          (B) preventative;
             15456          (C) therapeutic;
             15457          (D) rehabilitative;

             15458          (E) maintenance; or
             15459          (F) personal care; and
             15460          (iv) that may be issued by:
             15461          (A) an insurer;
             15462          (B) a fraternal benefit society;
             15463          (C) (I) a nonprofit health hospital; and
             15464          (II) a medical service corporation;
             15465          (D) a prepaid health plan;
             15466          (E) a health maintenance organization; or
             15467          (F) an entity similar to the entities described in Subsections (105)(a)(iv)(A) through (E)
             15468      to the extent that the entity is otherwise authorized to issue life or health care insurance.
             15469          (b) "Long-term care insurance" includes:
             15470          (i) any of the following that provide directly or supplement long-term care insurance:
             15471          (A) a group or individual annuity or rider; or
             15472          (B) a life insurance policy or rider;
             15473          (ii) a policy or rider that provides for payment of benefits based on:
             15474          (A) cognitive impairment; or
             15475          (B) functional capacity; or
             15476          (iii) a qualified long-term care insurance contract.
             15477          (c) "Long-term care insurance" does not include:
             15478          (i) a policy that is offered primarily to provide basic Medicare supplement coverage;
             15479          (ii) basic hospital expense coverage;
             15480          (iii) basic medical/surgical expense coverage;
             15481          (iv) hospital confinement indemnity coverage;
             15482          (v) major medical expense coverage;
             15483          (vi) income replacement or related asset-protection coverage;
             15484          (vii) accident only coverage;
             15485          (viii) coverage for a specified:

             15486          (A) disease; or
             15487          (B) accident;
             15488          (ix) limited benefit health coverage; or
             15489          (x) a life insurance policy that accelerates the death benefit to provide the option of a
             15490      lump sum payment:
             15491          (A) if the following are not conditioned on the receipt of long-term care:
             15492          (I) benefits; or
             15493          (II) eligibility; and
             15494          (B) the coverage is for one or more the following qualifying events:
             15495          (I) terminal illness;
             15496          (II) medical conditions requiring extraordinary medical intervention; or
             15497          (III) permanent institutional confinement.
             15498          (106) "Medical malpractice insurance" means insurance against legal liability incident to
             15499      the practice and provision of medical services other than the practice and provision of dental
             15500      services.
             15501          (107) "Member" means a person having membership rights in an insurance corporation.
             15502          (108) "Minimum capital" or "minimum required capital" means the capital that must be
             15503      constantly maintained by a stock insurance corporation as required by statute.
             15504          (109) "Mortgage accident and health insurance" means insurance offered in connection
             15505      with an extension of credit that provides indemnity for payments coming due on a mortgage
             15506      while the debtor is disabled.
             15507          (110) "Mortgage guaranty insurance" means surety insurance under which mortgagees
             15508      and other creditors are indemnified against losses caused by the default of debtors.
             15509          (111) "Mortgage life insurance" means insurance on the life of a debtor in connection
             15510      with an extension of credit that pays if the debtor dies.
             15511          (112) "Motor club" means a person:
             15512          (a) licensed under:
             15513          (i) Chapter 5, Domestic Stock and Mutual Insurance Corporations;

             15514          (ii) Chapter 11, Motor Clubs; or
             15515          (iii) Chapter 14, Foreign Insurers; and
             15516          (b) that promises for an advance consideration to provide for a stated period of time:
             15517          (i) legal services under Subsection 31A-11-102 (1)(b);
             15518          (ii) bail services under Subsection 31A-11-102 (1)(c); or
             15519          (iii) (A) trip reimbursement;
             15520          (B) towing services;
             15521          (C) emergency road services;
             15522          (D) stolen automobile services;
             15523          (E) a combination of the services listed in Subsections (112)(b)(iii)(A) through (D); or
             15524          (F) any other services given in Subsections 31A-11-102 (1)(b) through (f).
             15525          (113) "Mutual" means a mutual insurance corporation.
             15526          (114) "Network plan" means health care insurance:
             15527          (a) that is issued by an insurer; and
             15528          (b) under which the financing and delivery of medical care is provided, in whole or in
             15529      part, through a defined set of providers under contract with the insurer, including the financing
             15530      and delivery of items paid for as medical care.
             15531          (115) "Nonparticipating" means a plan of insurance under which the insured is not
             15532      entitled to receive dividends representing shares of the surplus of the insurer.
             15533          (116) "Ocean marine insurance" means insurance against loss of or damage to:
             15534          (a) ships or hulls of ships;
             15535          (b) goods, freight, cargoes, merchandise, effects, disbursements, profits, moneys,
             15536      securities, choses in action, evidences of debt, valuable papers, bottomry, respondentia interests,
             15537      or other cargoes in or awaiting transit over the oceans or inland waterways;
             15538          (c) earnings such as freight, passage money, commissions, or profits derived from
             15539      transporting goods or people upon or across the oceans or inland waterways; or
             15540          (d) a vessel owner or operator as a result of liability to employees, passengers, bailors,
             15541      owners of other vessels, owners of fixed objects, customs or other authorities, or other persons

             15542      in connection with maritime activity.
             15543          (117) "Order" means an order of the commissioner.
             15544          (118) "Outline of coverage" means a summary that explains an accident and health
             15545      insurance policy.
             15546          (119) "Participating" means a plan of insurance under which the insured is entitled to
             15547      receive dividends representing shares of the surplus of the insurer.
             15548          (120) "Participation," as used in a health benefit plan, means a requirement relating to
             15549      the minimum percentage of eligible employees that must be enrolled in relation to the total
             15550      number of eligible employees of an employer reduced by each eligible employee who voluntarily
             15551      declines coverage under the plan because the employee has other group health care insurance
             15552      coverage.
             15553          (121) "Person" includes an individual, partnership, corporation, incorporated or
             15554      unincorporated association, joint stock company, trust, limited liability company, reciprocal,
             15555      syndicate, or any similar entity or combination of entities acting in concert.
             15556          (122) "Personal lines insurance" means property and casualty insurance coverage sold
             15557      for primarily noncommercial purposes to:
             15558          (a) individuals; and
             15559          (b) families.
             15560          (123) "Plan sponsor" is as defined in 29 U.S.C. Sec. 1002(16)(B).
             15561          (124) "Plan year" means:
             15562          (a) the year that is designated as the plan year in:
             15563          (i) the plan document of a group health plan; or
             15564          (ii) a summary plan description of a group health plan;
             15565          (b) if the plan document or summary plan description does not designate a plan year or
             15566      there is no plan document or summary plan description:
             15567          (i) the year used to determine deductibles or limits;
             15568          (ii) the policy year, if the plan does not impose deductibles or limits on a yearly basis; or
             15569          (iii) the employer's taxable year if:

             15570          (A) the plan does not impose deductibles or limits on a yearly basis; and
             15571          (B) (I) the plan is not insured; or
             15572          (II) the insurance policy is not renewed on an annual basis; or
             15573          (c) in a case not described in Subsection (124)(a) or (b), the calendar year.
             15574          (125) (a) "Policy" means any document, including attached endorsements and riders,
             15575      purporting to be an enforceable contract, which memorializes in writing some or all of the terms
             15576      of an insurance contract.
             15577          (b) "Policy" includes a service contract issued by:
             15578          (i) a motor club under Chapter 11, Motor Clubs;
             15579          (ii) a service contract provided under Chapter 6a, Service Contracts; and
             15580          (iii) a corporation licensed under:
             15581          (A) Chapter 7, Nonprofit Health Service Insurance Corporations; or
             15582          (B) Chapter 8, Health Maintenance Organizations and Limited Health Plans.
             15583          (c) "Policy" does not include:
             15584          (i) a certificate under a group insurance contract; or
             15585          (ii) a document that does not purport to have legal effect.
             15586          (126) "Policyholder" means the person who controls a policy, binder, or oral contract
             15587      by ownership, premium payment, or otherwise.
             15588          (127) "Policy illustration" means a presentation or depiction that includes
             15589      nonguaranteed elements of a policy of life insurance over a period of years.
             15590          (128) "Policy summary" means a synopsis describing the elements of a life insurance
             15591      policy.
             15592          (129) "Preexisting condition," with respect to a health benefit plan:
             15593          (a) means a condition that was present before the effective date of coverage, whether or
             15594      not any medical advice, diagnosis, care, or treatment was recommended or received before that
             15595      day; and
             15596          (b) does not include a condition indicated by genetic information unless an actual
             15597      diagnosis of the condition by a physician has been made.

             15598          (130) (a) "Premium" means the monetary consideration for an insurance policy.
             15599          (b) "Premium" includes, however designated:
             15600          (i) assessments;
             15601          (ii) membership fees;
             15602          (iii) required contributions; or
             15603          (iv) monetary consideration.
             15604          (c) (i) Consideration paid to third party administrators for their services is not
             15605      "premium."
             15606          (ii) Amounts paid by third party administrators to insurers for insurance on the risks
             15607      administered by the third party administrators are "premium."
             15608          (131) "Principal officers" of a corporation means the officers designated under
             15609      Subsection 31A-5-203 (3).
             15610          (132) "Proceedings" includes actions and special statutory proceedings.
             15611          (133) "Professional liability insurance" means insurance against legal liability incident to
             15612      the practice of a profession and provision of any professional services.
             15613          (134) (a) Except as provided in Subsection (134)(b), "property insurance" means
             15614      insurance against loss or damage to real or personal property of every kind and any interest in
             15615      that property:
             15616          (i) from all hazards or causes; and
             15617          (ii) against loss consequential upon the loss or damage including vehicle comprehensive
             15618      and vehicle physical damage coverages.
             15619          (b) "Property insurance" does not include:
             15620          (i) inland marine insurance as defined in Subsection (80); and
             15621          (ii) ocean marine insurance as defined under Subsection (116).
             15622          (135) "Qualified long-term care insurance contract" or "federally tax qualified long-term
             15623      care insurance contract" means:
             15624          (a) an individual or group insurance contract that meets the requirements of Section
             15625      7702B(b), Internal Revenue Code; or

             15626          (b) the portion of a life insurance contract that provides long-term care insurance:
             15627          (i) (A) by rider; or
             15628          (B) as a part of the contract; and
             15629          (ii) that satisfies the requirements of Sections 7702B(b) and (e), Internal Revenue Code.
             15630          (136) "Qualified United States financial institution" means an institution that:
             15631          (a) is:
             15632          (i) organized under the laws of the United States or any state; or
             15633          (ii) in the case of a United States office of a foreign banking organization, licensed
             15634      under the laws of the United States or any state;
             15635          (b) is regulated, supervised, and examined by United States federal or state authorities
             15636      having regulatory authority over banks and trust companies; and
             15637          (c) meets the standards of financial condition and standing that are considered necessary
             15638      and appropriate to regulate the quality of financial institutions whose letters of credit will be
             15639      acceptable to the commissioner as determined by:
             15640          (i) the commissioner by rule; or
             15641          (ii) the Securities Valuation Office of the National Association of Insurance
             15642      Commissioners.
             15643          (137) (a) "Rate" means:
             15644          (i) the cost of a given unit of insurance; or
             15645          (ii) for property-casualty insurance, that cost of insurance per exposure unit either
             15646      expressed as:
             15647          (A) a single number; or
             15648          (B) a pure premium rate, adjusted before any application of individual risk variations
             15649      based on loss or expense considerations to account for the treatment of:
             15650          (I) expenses;
             15651          (II) profit; and
             15652          (III) individual insurer variation in loss experience.
             15653          (b) "Rate" does not include a minimum premium.

             15654          (138) (a) Except as provided in Subsection (138)(b), "rate service organization" means
             15655      any person who assists insurers in rate making or filing by:
             15656          (i) collecting, compiling, and furnishing loss or expense statistics;
             15657          (ii) recommending, making, or filing rates or supplementary rate information; or
             15658          (iii) advising about rate questions, except as an attorney giving legal advice.
             15659          (b) "Rate service organization" does not mean:
             15660          (i) an employee of an insurer;
             15661          (ii) a single insurer or group of insurers under common control;
             15662          (iii) a joint underwriting group; or
             15663          (iv) a natural person serving as an actuarial or legal consultant.
             15664          (139) "Rating manual" means any of the following used to determine initial and renewal
             15665      policy premiums:
             15666          (a) a manual of rates;
             15667          (b) classifications;
             15668          (c) rate-related underwriting rules; and
             15669          (d) rating formulas that describe steps, policies, and procedures for determining initial
             15670      and renewal policy premiums.
             15671          (140) "Received by the department" means:
             15672          (a) except as provided in Subsection (140)(b), the date delivered to and stamped
             15673      received by the department, whether delivered:
             15674          (i) in person; or
             15675          (ii) electronically; and
             15676          (b) if delivered to the department by a delivery service, the delivery service's postmark
             15677      date or pick-up date unless otherwise stated in:
             15678          (i) statute;
             15679          (ii) rule; or
             15680          (iii) a specific filing order.
             15681          (141) "Reciprocal" or "interinsurance exchange" means any unincorporated association

             15682      of persons:
             15683          (a) operating through an attorney-in-fact common to all of them; and
             15684          (b) exchanging insurance contracts with one another that provide insurance coverage on
             15685      each other.
             15686          (142) "Reinsurance" means an insurance transaction where an insurer, for
             15687      consideration, transfers any portion of the risk it has assumed to another insurer. In referring to
             15688      reinsurance transactions, this title sometimes refers to:
             15689          (a) the insurer transferring the risk as the "ceding insurer"; and
             15690          (b) the insurer assuming the risk as the:
             15691          (i) "assuming insurer"; or
             15692          (ii) "assuming reinsurer."
             15693          (143) "Reinsurer" means any person licensed in this state as an insurer with the
             15694      authority to assume reinsurance.
             15695          (144) "Residential dwelling liability insurance" means insurance against liability resulting
             15696      from or incident to the ownership, maintenance, or use of a residential dwelling that is a
             15697      detached single family residence or multifamily residence up to four units.
             15698          (145) "Retrocession" means reinsurance with another insurer of a liability assumed
             15699      under a reinsurance contract. A reinsurer "retrocedes" when it reinsures with another insurer
             15700      part of a liability assumed under a reinsurance contract.
             15701          (146) "Rider" means an endorsement to:
             15702          (a) an insurance policy; or
             15703          (b) an insurance certificate.
             15704          (147) (a) "Security" means any:
             15705          (i) note;
             15706          (ii) stock;
             15707          (iii) bond;
             15708          (iv) debenture;
             15709          (v) evidence of indebtedness;

             15710          (vi) certificate of interest or participation in any profit-sharing agreement;
             15711          (vii) collateral-trust certificate;
             15712          (viii) preorganization certificate or subscription;
             15713          (ix) transferable share;
             15714          (x) investment contract;
             15715          (xi) voting trust certificate;
             15716          (xii) certificate of deposit for a security;
             15717          (xiii) certificate of interest of participation in an oil, gas, or mining title or lease or in
             15718      payments out of production under such a title or lease;
             15719          (xiv) commodity contract or commodity option;
             15720          (xv) certificate of interest or participation in, temporary or interim certificate for, receipt
             15721      for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed in
             15722      Subsections (147)(a)(i) through (xiv); or
             15723          (xvi) other interest or instrument commonly known as a security.
             15724          (b) "Security" does not include:
             15725          (i) any of the following under which an insurance company promises to pay money in a
             15726      specific lump sum or periodically for life or some other specified period:
             15727          (A) insurance;
             15728          (B) endowment policy; or
             15729          (C) annuity contract; or
             15730          (ii) a burial certificate or burial contract.
             15731          (148) "Self-insurance" means any arrangement under which a person provides for
             15732      spreading its own risks by a systematic plan.
             15733          (a) Except as provided in this Subsection (148), "self-insurance" does not include an
             15734      arrangement under which a number of persons spread their risks among themselves.
             15735          (b) "Self-insurance" includes:
             15736          (i) an arrangement by which a governmental entity undertakes to indemnify its
             15737      employees for liability arising out of the employees' employment; and

             15738          (ii) an arrangement by which a person with a managed program of self-insurance and
             15739      risk management undertakes to indemnify its affiliates, subsidiaries, directors, officers, or
             15740      employees for liability or risk which is related to the relationship or employment.
             15741          (c) "Self-insurance" does not include any arrangement with independent contractors.
             15742          (149) "Sell" means to exchange a contract of insurance:
             15743          (a) by any means;
             15744          (b) for money or its equivalent; and
             15745          (c) on behalf of an insurance company.
             15746          (150) "Short-term care insurance" means any insurance policy or rider advertised,
             15747      marketed, offered, or designed to provide coverage that is similar to long-term care insurance
             15748      but that provides coverage for less than 12 consecutive months for each covered person.
             15749          (151) "Significant break in coverage" means a period of 63 consecutive days during
             15750      each of which an individual does not have any creditable coverage.
             15751          (152) "Small employer," in connection with a health benefit plan, means an employer
             15752      who, with respect to a calendar year and to a plan year:
             15753          (a) employed an average of at least two employees but not more than 50 eligible
             15754      employees on each business day during the preceding calendar year; and
             15755          (b) employs at least two employees on the first day of the plan year.
             15756          (153) "Special enrollment period," in connection with a health benefit plan, has the
             15757      same meaning as provided in federal regulations adopted pursuant to the Health Insurance
             15758      Portability and Accountability Act of 1996, Pub. L. No. 104-191, 110 Stat. 1936.
             15759          (154) (a) "Subsidiary" of a person means an affiliate controlled by that person either
             15760      directly or indirectly through one or more affiliates or intermediaries.
             15761          (b) "Wholly owned subsidiary" of a person is a subsidiary of which all of the voting
             15762      shares are owned by that person either alone or with its affiliates, except for the minimum
             15763      number of shares the law of the subsidiary's domicile requires to be owned by directors or
             15764      others.
             15765          (155) Subject to Subsection (82)(b), "surety insurance" includes:

             15766          (a) a guarantee against loss or damage resulting from failure of principals to pay or
             15767      perform their obligations to a creditor or other obligee;
             15768          (b) bail bond insurance; and
             15769          (c) fidelity insurance.
             15770          (156) (a) "Surplus" means the excess of assets over the sum of paid-in capital and
             15771      liabilities.
             15772          (b) (i) "Permanent surplus" means the surplus of a mutual insurer that has been
             15773      designated by the insurer as permanent.
             15774          (ii) Sections 31A-5-211 , 31A-7-201 , 31A-8-209 , 31A-9-209 , and 31A-14-209 require
             15775      that mutuals doing business in this state maintain specified minimum levels of permanent
             15776      surplus.
             15777          (iii) Except for assessable mutuals, the minimum permanent surplus requirement is
             15778      essentially the same as the minimum required capital requirement that applies to stock insurers.
             15779          (c) "Excess surplus" means:
             15780          (i) for life or accident and health insurers, health organizations, and property and
             15781      casualty insurers as defined in Section 31A-17-601 , the lesser of:
             15782          (A) that amount of an insurer's or health organization's total adjusted capital, as defined
             15783      in Subsection (159), that exceeds the product of:
             15784          (I) 2.5; and
             15785          (II) the sum of the insurer's or health organization's minimum capital or permanent
             15786      surplus required under Section 31A-5-211 , 31A-9-209 , or 31A-14-205 ; or
             15787          (B) that amount of an insurer's or health organization's total adjusted capital, as defined
             15788      in Subsection (159), that exceeds the product of:
             15789          (I) 3.0; and
             15790          (II) the authorized control level RBC as defined in Subsection 31A-17-601 (8)(a); and
             15791          (ii) for monoline mortgage guaranty insurers, financial guaranty insurers, and title
             15792      insurers, that amount of an insurer's paid-in-capital and surplus that exceeds the product of:
             15793          (A) 1.5; and

             15794          (B) the insurer's total adjusted capital required by Subsection 31A-17-609 (1).
             15795          (157) "Third party administrator" or "administrator" means any person who collects
             15796      charges or premiums from, or who, for consideration, adjusts or settles claims of residents of
             15797      the state in connection with insurance coverage, annuities, or service insurance coverage,
             15798      except:
             15799          (a) a union on behalf of its members;
             15800          (b) a person administering any:
             15801          (i) pension plan subject to the federal Employee Retirement Income Security Act of
             15802      1974;
             15803          (ii) governmental plan as defined in Section 414(d), Internal Revenue Code; or
             15804          (iii) nonelecting church plan as described in Section 410(d), Internal Revenue Code;
             15805          (c) an employer on behalf of the employer's employees or the employees of one or more
             15806      of the subsidiary or affiliated corporations of the employer;
             15807          (d) an insurer licensed under Chapter 5, 7, 8, 9, or 14, but only for a line of insurance
             15808      for which the insurer holds a license in this state; or
             15809          (e) a person:
             15810          (i) licensed or exempt from licensing under:
             15811          (A) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
             15812      Reinsurance Intermediaries; or
             15813          (B) Chapter 26, Insurance Adjusters; and
             15814          (ii) whose activities are limited to those authorized under the license the person holds or
             15815      for which the person is exempt.
             15816          (158) "Title insurance" means the insuring, guaranteeing, or indemnifying of owners of
             15817      real or personal property or the holders of liens or encumbrances on that property, or others
             15818      interested in the property against loss or damage suffered by reason of liens or encumbrances
             15819      upon, defects in, or the unmarketability of the title to the property, or invalidity or
             15820      unenforceability of any liens or encumbrances on the property.
             15821          (159) "Total adjusted capital" means the sum of an insurer's or health organization's

             15822      statutory capital and surplus as determined in accordance with:
             15823          (a) the statutory accounting applicable to the annual financial statements required to be
             15824      filed under Section 31A-4-113 ; and
             15825          (b) any other items provided by the RBC instructions, as RBC instructions is defined in
             15826      Section 31A-17-601 .
             15827          (160) (a) "Trustee" means "director" when referring to the board of directors of a
             15828      corporation.
             15829          (b) "Trustee," when used in reference to an employee welfare fund, means an individual,
             15830      firm, association, organization, joint stock company, or corporation, whether acting individually
             15831      or jointly and whether designated by that name or any other, that is charged with or has the
             15832      overall management of an employee welfare fund.
             15833          (161) (a) "Unauthorized insurer," "unadmitted insurer," or "nonadmitted insurer" means
             15834      an insurer:
             15835          (i) not holding a valid certificate of authority to do an insurance business in this state; or
             15836          (ii) transacting business not authorized by a valid certificate.
             15837          (b) "Admitted insurer" or "authorized insurer" means an insurer:
             15838          (i) holding a valid certificate of authority to do an insurance business in this state; and
             15839          (ii) transacting business as authorized by a valid certificate.
             15840          (162) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.
             15841          (163) "Vehicle liability insurance" means insurance against liability resulting from or
             15842      incident to ownership, maintenance, or use of any land vehicle or aircraft, exclusive of vehicle
             15843      comprehensive and vehicle physical damage coverages under Subsection (134).
             15844          (164) "Voting security" means a security with voting rights, and includes any security
             15845      convertible into a security with a voting right associated with the security.
             15846          (165) "Waiting period" for a health benefit plan means the period that must pass before
             15847      coverage for an individual, who is otherwise eligible to enroll under the terms of the health
             15848      benefit plan, can become effective.
             15849          (166) "Workers' compensation insurance" means:

             15850          (a) insurance for indemnification of employers against liability for compensation based
             15851      on:
             15852          (i) compensable accidental injuries; and
             15853          (ii) occupational disease disability;
             15854          (b) employer's liability insurance incidental to workers' compensation insurance and
             15855      written in connection with workers' compensation insurance; and
             15856          (c) insurance assuring to the persons entitled to workers' compensation benefits the
             15857      compensation provided by law.
             15858          Section 337. Section 31A-2-201 is amended to read:
             15859           31A-2-201. General duties and powers.
             15860          (1) The commissioner shall administer and enforce this title.
             15861          (2) The commissioner has all powers specifically granted, and all further powers that
             15862      are reasonable and necessary to enable the commissioner to perform the duties imposed by this
             15863      title.
             15864          (3) (a) The commissioner may make rules to implement the provisions of this title
             15865      according to the procedures and requirements of [Title 63, Chapter 46a] Title 63G, Chapter 3,
             15866      Utah Administrative Rulemaking Act.
             15867          (b) In addition to the notice requirements of Section [ 63-46a-4 ] 63G-3-301 , the
             15868      commissioner shall provide notice under Section 31A-2-303 of hearings concerning insurance
             15869      department rules.
             15870          (4) (a) The commissioner shall issue prohibitory, mandatory, and other orders as
             15871      necessary to secure compliance with this title. An order by the commissioner is not effective
             15872      unless the order:
             15873          (i) is in writing; and
             15874          (ii) is signed by the commissioner or under the commissioner's authority.
             15875          (b) On request of any person who would be affected by an order under Subsection
             15876      (4)(a), the commissioner may issue a declaratory order to clarify the person's rights or duties.
             15877          (5) (a) The commissioner may hold informal adjudicative proceedings and public

             15878      meetings, for the purpose of:
             15879          (i) investigation;
             15880          (ii) ascertainment of public sentiment; or
             15881          (iii) informing the public.
             15882          (b) An effective rule or order may not result from informal hearings and meetings unless
             15883      the requirement of a hearing under this section is satisfied.
             15884          (6) The commissioner shall inquire into violations of this title and may conduct any
             15885      examinations and investigations of insurance matters, in addition to examinations and
             15886      investigations expressly authorized, that the commissioner considers proper to determine:
             15887          (a) whether or not any person has violated any provision of this title; or
             15888          (b) to secure information useful in the lawful administration of this title.
             15889          (7) (a) Each year, the commissioner shall:
             15890          (i) conduct an evaluation of the state's health insurance market;
             15891          (ii) report the findings of the evaluation to the Health and Human Services Interim
             15892      Committee before October 1; and
             15893          (iii) publish the findings of the evaluation on the department website.
             15894          (b) The evaluation required by Subsection (7)(a) shall:
             15895          (i) analyze the effectiveness of the insurance regulations and statutes in promoting a
             15896      healthy, competitive health insurance market that meets the needs of Utahns by assessing such
             15897      things as:
             15898          (A) the availability and marketing of individual and group products;
             15899          (B) rate charges;
             15900          (C) coverage and demographic changes;
             15901          (D) benefit trends;
             15902          (E) market share changes; and
             15903          (F) accessibility;
             15904          (ii) assess complaint ratios and trends within the health insurance market, which
             15905      assessment shall integrate complaint data from the Office of Consumer Health Assistance within

             15906      the department;
             15907          (iii) contain recommendations for action to improve the overall effectiveness of the
             15908      health insurance market, administrative rules, and statutes; and
             15909          (iv) include claims loss ratio data for each insurance company doing business in the
             15910      state.
             15911          (c) When preparing the evaluation required by this Subsection (7), the commissioner
             15912      may seek the input of insurers, employers, insured persons, providers, and others with an
             15913      interest in the health insurance market.
             15914          Section 338. Section 31A-2-201.1 is amended to read:
             15915           31A-2-201.1. General filing requirements.
             15916          Except as otherwise provided in this title, the commissioner may set by rule made in
             15917      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             15918      Act, specific requirements for filing any of the following required by this title:
             15919          (1) a form;
             15920          (2) a rate; or
             15921          (3) a report.
             15922          Section 339. Section 31A-2-203 is amended to read:
             15923           31A-2-203. Examinations and alternatives.
             15924          (1) (a) Whenever the commissioner considers it necessary in order to inform the
             15925      commissioner about any matter related to the enforcement of this title, the commissioner may
             15926      examine the affairs and condition of:
             15927          (i) a licensee under this title;
             15928          (ii) an applicant for a license under this title;
             15929          (iii) a person or organization of persons doing or in process of organizing to do an
             15930      insurance business in this state; or
             15931          (iv) a person who is not, but should be, licensed under this title.
             15932          (b) When reasonably necessary for an examination under Subsection (1)(a), the
             15933      commissioner may examine:

             15934          (i) so far as they relate to the examinee, the accounts, records, documents, or evidences
             15935      of transactions of:
             15936          (A) the insurer or other licensee;
             15937          (B) any officer or other person who has executive authority over or is in charge of any
             15938      segment of the examinee's affairs; or
             15939          (C) any affiliate of the examinee; or
             15940          (ii) any third party model or product used by the examinee.
             15941          (c) (i) On demand, each examinee under Subsection (1)(a) shall make available to the
             15942      commissioner for examination:
             15943          (A) any of the examinee's own accounts, records, files, documents, or evidences of
             15944      transactions; and
             15945          (B) to the extent reasonably necessary for an examination, the accounts, records, files,
             15946      documents, or evidences of transactions of any persons under Subsection (1)(b).
             15947          (ii) Except as provided in Subsection (1)(c)(iii), failure to make the documents
             15948      described in Subsection (1)(c)(i) available is concealment of records under Subsection
             15949      31A-27a-207 (1)(e).
             15950          (iii) If the examinee is unable to obtain accounts, records, files, documents, or evidences
             15951      of transactions from persons under Subsection (1)(b), that failure is not concealment of records
             15952      if the examinee immediately terminates the relationship with the other person.
             15953          (d) (i) Neither the commissioner nor an examiner may remove any account, record, file,
             15954      document, evidence of transaction, or other property of the examinee from the examinee's
             15955      offices unless:
             15956          (A) the examinee consents in writing; or
             15957          (B) a court grants permission.
             15958          (ii) The commissioner may make and remove copies or abstracts of the following
             15959      described in Subsection (1)(d)(i):
             15960          (A) an account;
             15961          (B) a record;

             15962          (C) a file;
             15963          (D) a document;
             15964          (E) evidence of transaction; or
             15965          (F) other property.
             15966          (2) (a) Subject to the other provisions of this section, the commissioner shall examine as
             15967      needed and as otherwise provided by law:
             15968          (i) every insurer, both domestic and nondomestic;
             15969          (ii) every licensed rate service organization; and
             15970          (iii) any other licensee.
             15971          (b) The commissioner shall examine insurers, both domestic and nondomestic, no less
             15972      frequently than once every five years, but the commissioner may use in lieu examinations under
             15973      Subsection (4) to satisfy this requirement.
             15974          (c) The commissioner shall revoke the certificate of authority of an insurer or the
             15975      license of a rate service organization that has not been examined, or submitted an acceptable in
             15976      lieu report under Subsection (4), within the past five years.
             15977          (d) (i) Any 25 persons who are policyholders, shareholders, or creditors of a domestic
             15978      insurer may by verified petition demand a hearing under Section 31A-2-301 to determine
             15979      whether the commissioner should conduct an unscheduled examination of the insurer.
             15980          (ii) Persons demanding the hearing under this Subsection (2)(d) shall be given an
             15981      opportunity in the hearing to present evidence that an examination of the insurer is necessary.
             15982          (iii) If the evidence justifies an examination, the commissioner shall order an
             15983      examination.
             15984          (e) (i) When the board of directors of a domestic insurer requests that the commissioner
             15985      examine the insurer, the commissioner shall examine the insurer as soon as reasonably possible.
             15986          (ii) If the examination requested under this Subsection (2)(e) is conducted within two
             15987      years after completion of a comprehensive examination by the commissioner, costs of the
             15988      requested examination may not be deducted from premium taxes under Section 59-9-102 unless
             15989      the commissioner's order specifically provides for the deduction.

             15990          (f) Bail bond surety companies as defined in Section 31A-35-102 are exempted from:
             15991          (i) the five-year examination requirement in Subsection (2)(b);
             15992          (ii) the revocation under Subsection (2)(c); and
             15993          (iii) Subsections (2)(d) and (2)(e).
             15994          (3) (a) The commissioner may order an independent audit or examination by technical
             15995      experts, including certified public accountants and actuaries:
             15996          (i) in lieu of all or part of an examination under Subsection (1) or (2); or
             15997          (ii) in addition to an examination under Subsection (1) or (2).
             15998          (b) Any audit or evaluation under this Subsection (3) is subject to Subsection (5),
             15999      Section 31A-2-204 , and Subsection 31A-2-205 (4).
             16000          (4) (a) In lieu of all or any part of an examination under this section, the commissioner
             16001      may accept the report of an examination made by:
             16002          (i) the insurance department of another state; or
             16003          (ii) another government agency in:
             16004          (A) this state;
             16005          (B) the federal government; or
             16006          (C) another state.
             16007          (b) An examination by the commissioner under Subsection (1) or (2) or accepted by the
             16008      commissioner under this Subsection (4) may use:
             16009          (i) an audit already made by a certified public accountant; or
             16010          (ii) an actuarial evaluation made by an actuary approved by the commissioner.
             16011          (5) (a) An examination may be comprehensive or limited with respect to the examinee's
             16012      affairs and condition. The commissioner shall determine the nature and scope of each
             16013      examination, taking into account all relevant factors, including:
             16014          (i) the length of time the examinee has been licensed in this state;
             16015          (ii) the nature of the business being examined;
             16016          (iii) the nature of the accounting or other records available;
             16017          (iv) reports from:

             16018          (A) independent auditors; and
             16019          (B) self-certification entities; and
             16020          (v) the nature of examinations performed elsewhere.
             16021          (b) The examination of an alien insurer shall be limited to insurance transactions and
             16022      assets in the United States, unless the commissioner orders otherwise after finding that
             16023      extraordinary circumstances necessitate a broader examination.
             16024          (6) To effectively administer this section, the commissioner:
             16025          (a) shall:
             16026          (i) maintain effective financial condition and market regulation surveillance systems
             16027      including:
             16028          (A) financial and market analysis; and
             16029          (B) review of insurance regulatory information system reports;
             16030          (ii) employ a priority scheduling method that focuses on insurers and other licensees
             16031      most in need of examination; and
             16032          (iii) use examination management techniques similar to those outlined in the Financial
             16033      Condition Examination Handbook of the National Association of Insurance Commissioners; and
             16034          (b) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             16035      Administrative Rulemaking Act, may make rules pertaining to the financial condition and
             16036      market regulation surveillance systems.
             16037          Section 340. Section 31A-2-203.5 is amended to read:
             16038           31A-2-203.5. Procedures -- Adjudicative proceedings.
             16039          The commissioner of insurance shall comply with the procedures and requirements of
             16040      [Title 63, Chapter 46b,] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
             16041      proceedings.
             16042          Section 341. Section 31A-2-204 is amended to read:
             16043           31A-2-204. Conducting examinations.
             16044          (1) (a) For each examination under Section 31A-2-203 , the commissioner shall issue an
             16045      order:

             16046          (i) stating the scope of the examination; and
             16047          (ii) designating the examiner in charge.
             16048          (b) The commissioner need not give advance notice of an examination to an examinee.
             16049          (c) The examiner in charge shall give the examinee a copy of the order issued under this
             16050      Subsection (1).
             16051          (d) (i) The commissioner may alter the scope or nature of an examination at any time
             16052      without advance notice to the examinee.
             16053          (ii) If the commissioner amends an order described in this Subsection (1), the
             16054      commissioner shall provide a copy of any amended order to the examinee.
             16055          (e) Statements in the commissioner's examination order concerning examination scope
             16056      are for the examiner's guidance only.
             16057          (f) Examining relevant matters not mentioned in an order issued under this Subsection
             16058      (1) is not a violation of this title.
             16059          (2) The commissioner shall, whenever practicable, cooperate with the insurance
             16060      regulators of other states by conducting joint examinations of:
             16061          (a) multistate insurers doing business in this state; or
             16062          (b) other multistate licensees doing business in this state.
             16063          (3) An examiner authorized by the commissioner shall, when necessary to the purposes
             16064      of the examination, have access at all reasonable hours to the premises and to any books,
             16065      records, files, securities, documents, or property of:
             16066          (a) the examinee; and
             16067          (b) any of the following if the premises, books, records, files, securities, documents, or
             16068      property relate to the affairs of the examinee:
             16069          (i) an officer of the examinee;
             16070          (ii) any other person who:
             16071          (A) has executive authority over the examinee; or
             16072          (B) is in charge of any segment of the examinee's affairs; or
             16073          (iii) any affiliate of the examinee under Subsection 31A-2-203 (1)(b).

             16074          (4) (a) The officers, employees, and agents of the examinee and of persons under
             16075      Subsection 31A-2-203 (1)(b) shall comply with every reasonable request of the examiners for
             16076      assistance in any matter relating to the examination.
             16077          (b) A person may not obstruct or interfere with the examination except by legal process.
             16078          (5) If the commissioner finds the accounts or records to be inadequate for proper
             16079      examination of the condition and affairs of the examinee or improperly kept or posted, the
             16080      commissioner may employ experts to rewrite, post, or balance the accounts or records at the
             16081      expense of the examinee.
             16082          (6) (a) The examiner in charge of an examination shall make a report of the examination
             16083      no later than 60 days after the completion of the examination that shall include:
             16084          (i) the information and analysis ordered under Subsection (1); and
             16085          (ii) the examiner's recommendations.
             16086          (b) At the option of the examiner in charge, preparation of the report may include
             16087      conferences with the examinee or representatives of the examinee.
             16088          (c) The report is confidential until the report becomes a public document under
             16089      Subsection (7), except the commissioner may use information from the report as a basis for
             16090      action under Chapter 27a, Insurer Receivership Act.
             16091          (7) (a) The commissioner shall serve a copy of the examination report described in
             16092      Subsection (6) upon the examinee.
             16093          (b) Within 20 days after service, the examinee shall:
             16094          (i) accept the examination report as written; or
             16095          (ii) request agency action to modify the examination report.
             16096          (c) The report is considered accepted under this Subsection (7) if the examinee does not
             16097      file a request for agency action to modify the report within 20 days after service of the report.
             16098          (d) If the examination report is accepted:
             16099          (i) the examination report immediately becomes a public document; and
             16100          (ii) the commissioner shall distribute the examination report to all jurisdictions in which
             16101      the examinee is authorized to do business.

             16102          (e) (i) Any adjudicative proceeding held as a result of the examinee's request for agency
             16103      action shall, upon the examinee's demand, be closed to the public, except that the commissioner
             16104      need not exclude any participating examiner from this closed hearing.
             16105          (ii) Within 20 days after the hearing held under this Subsection (7)(e), the commissioner
             16106      shall:
             16107          (A) adopt the examination report with any necessary modifications; and
             16108          (B) serve a copy of the adopted report upon the examinee.
             16109          (iii) Unless the examinee seeks judicial relief, the adopted examination report:
             16110          (A) shall become a public document ten days after service; and
             16111          (B) may be distributed as described in this section.
             16112          (f) Notwithstanding [Title 63, Chapter 46b,] Title 63G, Chapter 4, Administrative
             16113      Procedures Act, to the extent that this section is in conflict with [Title 63, Chapter 46b] Title
             16114      63G, Chapter 4, Administrative Procedures Act, this section governs:
             16115          (i) a request for agency action under this section; or
             16116          (ii) adjudicative proceeding under this section.
             16117          (8) The examinee shall promptly furnish copies of the adopted examination report
             16118      described in Subsection (7) to each member of the examinee's board.
             16119          (9) After an examination report becomes a public document under Subsection (7), the
             16120      commissioner may furnish, without cost or at a reasonable price set under Section 31A-3-103 , a
             16121      copy of the examination report to interested persons, including:
             16122          (a) a member of the board of the examinee; or
             16123          (b) one or more newspapers in this state.
             16124          (10) (a) In a proceeding by or against the examinee, or any officer or agent of the
             16125      examinee, the examination report as adopted by the commissioner is admissible as evidence of
             16126      the facts stated in the report.
             16127          (b) In any proceeding commenced under Chapter 27a, Insurer Receivership Act, the
             16128      examination report, whether adopted by the commissioner or not, is admissible as evidence of
             16129      the facts stated in the examination report.

             16130          Section 342. Section 31A-2-207 is amended to read:
             16131           31A-2-207. Commissioner's records and reports -- Protection from disclosure of
             16132      certain records.
             16133          (1) The commissioner shall maintain all department records that are:
             16134          (a) required by law;
             16135          (b) necessary for the effective operation of the department; or
             16136          (c) necessary to maintain a full record of department activities.
             16137          (2) The records of the department may be preserved, managed, stored, and made
             16138      available for review consistent with:
             16139          (a) another Utah statute;
             16140          (b) the rules made under Section [ 63-2-904 ] 63A-12-104 ;
             16141          (c) the decisions of the State Records Committee made under [Title 63, Chapter 2]
             16142      Title 63G, Chapter 2, Government Records Access and Management Act; or
             16143          (d) the needs of the public.
             16144          (3) A department record may not be destroyed, damaged, or disposed of without:
             16145          (a) authorization of the commissioner; and
             16146          (b) compliance with all other applicable laws.
             16147          (4) The commissioner shall maintain a permanent record of the commissioner's
             16148      proceedings and important activities, including:
             16149          (a) a concise statement of the condition of each insurer examined by the commissioner;
             16150      and
             16151          (b) a record of all certificates of authority and licenses issued by the commissioner.
             16152          (5) (a) Prior to October 1 of each year, the commissioner shall prepare an annual report
             16153      to the governor which shall include, for the preceding calendar year, the information concerning
             16154      the department and the insurance industry which the commissioner believes will be useful to the
             16155      governor and the public.
             16156          (b) The report required by this Subsection (5) shall include the information required
             16157      under Chapter 27a, Insurer Receivership Act, and Subsections 31A-2-106 (2), 31A-2-205 (3),

             16158      and 31A-2-208 (3).
             16159          (c) The commissioner shall make the report required by this Subsection (5) available to
             16160      the public and industry in electronic format.
             16161          (6) All department records and reports are open to public inspection unless specifically
             16162      provided otherwise by statute or by [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             16163      Records Access and Management Act.
             16164          (7) On request, the commissioner shall provide to any person certified or uncertified
             16165      copies of any record in the department that is open to public inspection.
             16166          (8) Notwithstanding Subsection (6) and [Title 63, Chapter 2] Title 63G, Chapter 2,
             16167      Government Records Access and Management Act, the commissioner shall protect from
             16168      disclosure any record, as defined in Section [ 63-2-103 ] 63G-2-103 , or other document received
             16169      from an insurance regulator of another jurisdiction:
             16170          (a) at least to the same extent the record or document is protected from disclosure
             16171      under the laws applicable to the insurance regulator providing the record or document; or
             16172          (b) under the same terms and conditions of confidentiality as the National Association
             16173      of Insurance Commissioners requires as a condition of participating in any of the National
             16174      Association of Insurance Commissioners' programs.
             16175          Section 343. Section 31A-2-209 is amended to read:
             16176           31A-2-209. Access to state records.
             16177          Subject to [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             16178      Management Act, the commissioner shall have access to the records of any agency of the state
             16179      government or of any political subdivision of the state which [he] the commissioner may consult
             16180      in discharging [his] the commissioner's duties.
             16181          Section 344. Section 31A-2-217 is amended to read:
             16182           31A-2-217. Coordination with other states.
             16183          (1) (a) Subject to Subsection (1)(b), the commissioner, by rule, may adopt one or more
             16184      agreements with another governmental regulatory agency, within and outside of this state, or
             16185      with the National Association of Insurance Commissioners to address:

             16186          (i) licensing of insurance companies;
             16187          (ii) licensing of agents;
             16188          (iii) regulation of premium rates and policy forms; and
             16189          (iv) regulation of insurer insolvency and insurance receiverships.
             16190          (b) An agreement described in Subsection (1)(a), may authorize the commissioner to
             16191      modify a requirement of this title if the commissioner determines that the requirements under the
             16192      agreement provide protections similar to or greater than the requirements under this title.
             16193          (2) (a) The commissioner may negotiate an interstate compact that addresses issuing
             16194      certificates of authority, if the commissioner determines that:
             16195          (i) each state participating in the compact has requirements for issuing certificates of
             16196      authority that provide protections similar to or greater than the requirements of this title; or
             16197          (ii) the interstate compact contains requirements for issuing certificates of authority that
             16198      provide protections similar to or greater than the requirements of this title.
             16199          (b) If an interstate compact described in Subsection (2)(a) is adopted by the Legislature,
             16200      the commissioner may issue certificates of authority to insurers in accordance with the terms of
             16201      the interstate compact.
             16202          (3) If any provision of this title conflicts with a provision of the annual statement
             16203      instructions or the National Association of Insurance Commissioners Accounting Practices and
             16204      Procedures Manual, the commissioner may, by rule, resolve the conflict in favor of the annual
             16205      statement instructions or the National Association of Insurance Commissioners Accounting
             16206      Practices and Procedures Manual.
             16207          (4) The commissioner may, by rule, accept the information prescribed by the National
             16208      Association of Insurance Commissioners instead of the documents required to be filed with an
             16209      application for a certificate of authority under:
             16210          (a) Section 31A-4-103 , 31A-5-204 , 31A-8-205 , or 31A-14-201 ; or
             16211          (b) rules made by the commissioner.
             16212          (5) Before November 30, 2001, the commissioner shall report to the Business and
             16213      Labor Interim Committee regarding the status of:

             16214          (a) any agreements entered into under Subsection (1);
             16215          (b) any interstate compact entered into under Subsection (2); and
             16216          (c) any rule made under Subsections (3) and (4).
             16217          (6) This section shall be repealed in accordance with Section [ 63-55-231 ] 63I-1-231 .
             16218          Section 345. Section 31A-2-302 is amended to read:
             16219           31A-2-302. Commissioner's disapproval.
             16220          (1) When the law requires the commissioner's approval for a certain action without a
             16221      deemer clause, that approval must be express. The commissioner's disapproval of an action is
             16222      assumed if the commissioner does not act within 60 days after receiving the application for
             16223      approval or give notice of [his] the comissioner's reasonable extension of that time period with
             16224      [his] the commissioner's reasons for the extension. Assumed disapproval under this subsection
             16225      entitles the aggrieved person to request agency action under Section [ 63-46b-3 ] 63G-4-201 .
             16226          (2) When the law provides that a certain action is not effective if disapproved by the
             16227      commissioner within a certain period, the affirmative approval by the commissioner may make
             16228      the action effective at a designated earlier date, but not earlier than the date of the
             16229      commissioner's affirmative approval.
             16230          (3) Subsections (1) and (2) do not apply to the extent that the law specifically provides
             16231      otherwise.
             16232          Section 346. Section 31A-2-306.5 is amended to read:
             16233           31A-2-306.5. Stay of commissioner's decision pending administrative review or
             16234      judicial appeal.
             16235          (1) An order of the commissioner or a designee of the commissioner is not stayed by a
             16236      petition for:
             16237          (a) administrative review;
             16238          (b) rehearing; or
             16239          (c) judicial review.
             16240          (2) A person seeking to stay an order of the commissioner or a designee of the
             16241      commissioner shall seek a stay in accordance with:

             16242          (a) rules made by the commissioner in accordance with [Title 63, Chapter 46a] Title
             16243      63G, Chapter 3, Utah Administrative Rulemaking Act, pending a petition for:
             16244          (i) administrative review; or
             16245          (ii) rehearing; or
             16246          (b) Section [ 63-46b-18 ] 63G-4-405 , pending judicial review.
             16247          Section 347. Section 31A-2-404 is amended to read:
             16248           31A-2-404. Duties of the commissioner and Title and Escrow Commission.
             16249          (1) Notwithstanding the other provisions of this chapter, to the extent provided in this
             16250      part, the commissioner shall administer and enforce the provisions in this title related to:
             16251          (a) title insurance; and
             16252          (b) escrow conducted by a title licensee or title insurer.
             16253          (2) The commission shall:
             16254          (a) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             16255      Administrative Rulemaking Act, and subject to Subsection (3), make rules for the administration
             16256      of the provisions in this title related to title insurance including rules related to:
             16257          (i) rating standards and rating methods for title agencies and producers as provided in
             16258      Section 31A-19a-209 ;
             16259          (ii) the licensing for a title licensee including the licensing requirements of Sections
             16260      31A-23a-203 and 31A-23a-204 ;
             16261          (iii) continuing education requirements of Section 31A-23a-202 ;
             16262          (iv) examination procedures, after consultation with the department and the
             16263      department's test administrator when required by Section 31A-23a-204 ; and
             16264          (v) standards of conduct for a title licensee;
             16265          (b) concur in the issuance and renewal of licenses in accordance with Section
             16266      31A-23a-105 or 31A-26-203 ;
             16267          (c) in accordance with Section 31A-3-103 , establish, with the concurrence of the
             16268      department, all fees imposed by this title on a title licensee;
             16269          (d) in accordance with Section 31A-23a-415 determine, after consulting with the

             16270      commissioner, the assessment on a title insurer as defined in Section 31A-23a-415 ;
             16271          (e) conduct all administrative hearings not delegated by the commission to an
             16272      administrative law judge related to the:
             16273          (i) licensing of any applicant;
             16274          (ii) conduct of any title licensee; or
             16275          (iii) approval of continuing education programs required by Section 31A-23a-202 ;
             16276          (f) with the concurrence of the commissioner, approve assets that can be included in a
             16277      reserve fund required by Section 31A-23a-204 ;
             16278          (g) with the concurrence of the commissioner, approve continuing education programs
             16279      required by Section 31A-23a-202 ;
             16280          (h) with the concurrence of the commissioner, impose penalties:
             16281          (i) under this title related to:
             16282          (A) title insurance; or
             16283          (B) escrow conducted by a title licensee;
             16284          (ii) after investigation by the department in accordance with Part 3, Procedures and
             16285      Enforcement; and
             16286          (iii) that are enforced by the commissioner;
             16287          (i) advise the commissioner on the administration and enforcement of any matters
             16288      affecting the title insurance industry;
             16289          (j) advise the commissioner on matters affecting the department's budget related to title
             16290      insurance; and
             16291          (k) perform other duties as provided in this title.
             16292          (3) The commission may make a rule under this title only if at the time the commission
             16293      files its proposed rule and rule analysis with the Division of Administrative Rules in accordance
             16294      with Section [ 63-46a-4 ] 63G-3-301 , the commission provides the Real Estate Commission that
             16295      same information.
             16296          (4) (a) The commissioner shall annually report the information described in Subsection
             16297      (4)(b) in writing to:

             16298          (i) the commission; and
             16299          (ii) the Business and Labor Interim Committee.
             16300          (b) The information required to be reported under this Subsection (4):
             16301          (i) may not identify a person; and
             16302          (ii) shall include:
             16303          (A) the number of complaints the department receives with regard to transactions
             16304      involving title insurance or a title licensee during the calendar year immediately proceeding the
             16305      report;
             16306          (B) the type of complaints described in Subsection (4)(b)(ii)(A); and
             16307          (C) for each complaint described in Subsection (4)(b)(ii)(A):
             16308          (I) any action taken by the department with regard to the complaint; and
             16309          (II) the time-period beginning the day on which a complaint is made and ending the day
             16310      on which the department determines it will take no further action with regard to the complaint.
             16311          Section 348. Section 31A-3-101 is amended to read:
             16312           31A-3-101. General finance provisions.
             16313          (1) The department's expenses shall be paid from the General Fund. Department
             16314      expenditures shall conform to the Legislature's appropriation adopted under [Title 63, Chapter
             16315      38] Title 63J, Chapter 1, Budgetary Procedures Act.
             16316          (2) Except as provided in Section 31A-2-206 , or as otherwise specifically provided in
             16317      this title, all monies collected by the commissioner shall be deposited without deduction in the
             16318      General Fund.
             16319          Section 349. Section 31A-3-103 is amended to read:
             16320           31A-3-103. Fees.
             16321          (1) For purposes of this section:
             16322          (a) "Regulatory fee" is as defined in Section [ 63-38-3.2 ] 63J-1-303 .
             16323          (b) "Services" means functions that are reasonable and necessary to enable the
             16324      commissioner to perform the duties imposed by this title including:
             16325          (i) issuing and renewing licenses and certificates of authority;

             16326          (ii) filing policy forms;
             16327          (iii) reporting agent appointments and terminations; and
             16328          (iv) filing annual statements.
             16329          (c) Fees related to the renewal of licenses may be imposed no more frequently than
             16330      once each year.
             16331          (2) (a) A regulatory fee charged by the department shall be set in accordance with
             16332      Section [ 63-38-3.2 ] 63J-1-303 .
             16333          (b) Fees shall be set and collected for services provided by the department.
             16334          (3) (a) For a fee authorized by this chapter that is not a regulatory fee, the department
             16335      may adopt a schedule of fees provided that each fee in the schedule of fees is:
             16336          (i) reasonable and fair; and
             16337          (ii) submitted to the Legislature as part of the department's annual appropriations
             16338      request.
             16339          (b) If a fee schedule described in Subsection (3)(a) is submitted as part of the
             16340      department's annual appropriations request, the Legislature may, in a manner substantially
             16341      similar to Section [ 63-38-3.2 ] 63J-1-303 :
             16342          (i) approve any fee in the fee schedule;
             16343          (ii) (A) increase or decrease any fee in the fee schedule; and
             16344          (B) approve any fee in the fee schedule as changed by the Legislature; or
             16345          (iii) reject any fee in the fee schedule.
             16346          (c) (i) Except as provided in Subsection (3)(c)(ii), a fee approved by the Legislature
             16347      pursuant to this Subsection (3) shall be deposited into the General Fund for appropriation by the
             16348      Legislature.
             16349          (ii) A fee approved by the Legislature pursuant to this Subsection (3) that relates to the
             16350      use of electronic or other similar technology to provide the services of the department shall be
             16351      deposited into the General Fund as a dedicated credit to be used by the department to provide
             16352      services through use of electronic commerce or other similar technology.
             16353          (4) The commissioner shall separately publish the schedule of fees approved by the

             16354      Legislature and make it available upon request for $1 per copy. This fee schedule shall also be
             16355      included in any compilation of rules promulgated by the commissioner.
             16356          (5) The commissioner shall, by rule, establish the deadlines for payment of any fee
             16357      established by the department in accordance with this section.
             16358          Section 350. Section 31A-3-304 is amended to read:
             16359           31A-3-304. Annual fees -- Other taxes or fees prohibited.
             16360          (1) (a) A captive insurance company shall pay an annual fee imposed under this section
             16361      to obtain or renew a certificate of authority.
             16362          (b) The commissioner shall:
             16363          (i) determine the annual fee pursuant to Sections 31A-3-103 and [ 63-38-3.2 ]
             16364      63J-1-303 ; and
             16365          (ii) consider whether the annual fee is competitive with fees imposed by other states on
             16366      captive insurance companies.
             16367          (2) A captive insurance company that fails to pay the fee required by this section is
             16368      subject to the relevant sanctions of this title.
             16369          (3) (a) Except as provided in Subsection (3)(b) and notwithstanding Title 59, Chapter
             16370      9, Taxation of Admitted Insurers, the fee provided for in this section constitutes the sole tax or
             16371      fee under the laws of this state that may be otherwise levied or assessed on a captive insurance
             16372      company, and no other occupation tax or other tax or fee may be levied or collected from a
             16373      captive insurance company by the state or a county, city, or municipality within this state.
             16374          (b) Notwithstanding Subsection (3)(a), a captive insurance company is subject to real
             16375      and personal property taxes.
             16376          (4) A captive insurance company shall pay the fee imposed by this section to the
             16377      department by March 31 of each year.
             16378          (5) (a) The funds received pursuant to Subsection (2) shall be deposited into the
             16379      General Fund as a dedicated credit to be used by the department to:
             16380          (i) administer and enforce Chapter 37, Captive Insurance Companies Act; and
             16381          (ii) promote the captive insurance industry in Utah.

             16382          (b) At the end of each fiscal year, funds received by the department in excess of
             16383      $250,000 shall be treated as free revenue in the General Fund.
             16384          Section 351. Section 31A-4-103 is amended to read:
             16385           31A-4-103. Certificate of authority.
             16386          (1) Each certificate of authority issued by the commissioner shall specify:
             16387          (a) the name of the insurer;
             16388          (b) the kinds of insurance the insurer is authorized to transact in Utah; and
             16389          (c) any other information the commissioner requires.
             16390          (2) A certificate of authority issued under this chapter remains in force until:
             16391          (a) the certificate is not renewed; or
             16392          (b) under Subsection (3), the certificate of authority is:
             16393          (i) revoked; or
             16394          (ii) suspended.
             16395          (3) (a) After an adjudicative proceeding under [Title 63, Chapter 46b] Title 63G,
             16396      Chapter 4, Administrative Procedures Act, if the commissioner makes a finding described in
             16397      Subsection (3)(b), the commissioner may:
             16398          (i) revoke a certificate of authority;
             16399          (ii) suspend a certificate of authority for a period not to exceed 12 months; or
             16400          (iii) limit a certificate of authority.
             16401          (b) The commissioner may take any action described in Subsection (3)(a) if the
             16402      commissioner finds the insurer has:
             16403          (i) failed to pay when due any fee due under Section 31A-3-103 ;
             16404          (ii) violated or failed to comply with:
             16405          (A) this title;
             16406          (B) a rule made under Subsection 31A-2-201 (3); or
             16407          (C) an order issued under Subsection 31A-2-201 (4); or
             16408          (iii) engaged in methods and practices in the conduct of business that endanger the
             16409      legitimate interests of customers and the public.

             16410          (c) An order suspending a certificate of authority shall specify:
             16411          (i) the conditions and terms imposed on the insurer during the suspension; and
             16412          (ii) the conditions and procedures for reinstatement from suspension.
             16413          (d) The commissioner may place limitations on a certificate of authority at the time the
             16414      certificate of authority is issued based on information contained in the application for the
             16415      certificate of authority.
             16416          (e) An order limiting a certificate of authority that is issued under Subsection (3)(a) or
             16417      (3)(d) shall specify:
             16418          (i) the period of the limitation;
             16419          (ii) the conditions of the limitation; and
             16420          (iii) the procedures for removing the limitation.
             16421          (4) Subject to the requirements of this section and in accordance with [Title 63, Chapter
             16422      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commissioner may by rule
             16423      prescribe procedures to renew or reinstate a certificate of authority.
             16424          (5) An insurer under this chapter whose certificate of authority is suspended or
             16425      revoked, but that continues to act as an authorized insurer, is subject to the penalties for acting
             16426      as an insurer without a certificate of authority.
             16427          (6) Any insurer holding a certificate of authority in this state shall immediately report to
             16428      the commissioner a suspension or revocation of that insurer's certificate of authority in any:
             16429          (a) state;
             16430          (b) the District of Columbia; or
             16431          (c) a territory of the United States.
             16432          (7) (a) An order revoking a certificate of authority under Subsection (3) may specify a
             16433      time within which the former authorized insurer may not apply for a new certificate of authority,
             16434      except that the time may not exceed five years from the date on which the certificate of
             16435      authority is revoked.
             16436          (b) If no time is specified in an order revoking a certificate of authority under
             16437      Subsection (3), the former authorized insurer may not apply for a new certificate of authority

             16438      for five years from the date on which the certificate of authority is revoked without express
             16439      approval by the commissioner.
             16440          (8) (a) Subject to Subsection (8)(b), the insurer shall pay all fees under Section
             16441      31A-3-103 that would have been payable if the certificate of authority had not been suspended
             16442      or revoked, unless the commissioner, in accordance with rule, waives the payment of the fees by
             16443      no later than the day on which:
             16444          (i) a suspension under Subsection (3) of an insurer's certificate of authority ends; or
             16445          (ii) a new certificate of authority is issued to an insurer whose certificate of authority is
             16446      revoked under Subsection (3).
             16447          (b) If a new certificate of authority is issued more than three years after the day on
             16448      which a similar certificate of authority was revoked, this Subsection (8) applies only to the fees
             16449      that would have accrued during the three years immediately following the revocation.
             16450          Section 352. Section 31A-5-204 is amended to read:
             16451           31A-5-204. Organization permit -- Certificate of incorporation.
             16452          (1) Subject to Section 31A-5-213 , a person, including a stock insurance corporation,
             16453      insurance holding company, stock corporation to finance an insurer or insurance production for
             16454      an insurer, corporation to provide management or administrative services for any of the entities
             16455      named above, or mutual insurer, may not solicit subscriptions for its securities, or in the case of
             16456      a mutual insurance corporation, solicit applications for qualifying insurance policies or
             16457      subscriptions for mutual bonds or contribution notes, until the commissioner has issued an
             16458      organization permit.
             16459          (2) The application for an organization permit shall give the name of the insurer to be
             16460      formed and shall be signed and acknowledged by or on behalf of each incorporator. The
             16461      application shall include or have attached:
             16462          (a) the names, and for the preceding ten years all addresses, and all occupations of the
             16463      incorporators and the proposed directors and officers;
             16464          (b) for all persons planned by the incorporators to own 10% or more of the capital
             16465      stock of the corporation, their annual financial statements and reports for the three most recent

             16466      years, and if the planned shareholders are corporations, their articles and bylaws, and a list of
             16467      the names, addresses, and occupations of all their directors and principal officers;
             16468          (c) the proposed articles, which shall be signed and acknowledged by or on behalf of
             16469      each incorporator, and the proposed bylaws;
             16470          (d) all agreements relating to the corporation to which any incorporator, proposed
             16471      director, or officer is a party;
             16472          (e) the amount and sources of the funds available for organization expenses and the
             16473      proposed arrangements for reimbursement and compensation of incorporators or other persons;
             16474          (f) the plan for solicitation of applications for qualifying insurance policies and for the
             16475      corporation's securities;
             16476          (g) the forms to be used for stock subscriptions, certificates for shares, applications for
             16477      qualifying insurance policies, subscriptions for mutual bonds and contribution notes, and the
             16478      forms for bonds and notes;
             16479          (h) the capital and initial paid in surplus in the case of a stock insurer, or the minimum
             16480      permanent surplus and the additional surplus in the case of a mutual insurer;
             16481          (i) the plan for conducting the insurance business, including:
             16482          (i) the geographical area in which business is intended to be done in the first two years;
             16483          (ii) the types of insurance intended to be written in the first two years;
             16484          (iii) the proposed marketing methods;
             16485          (iv) when requested by the commissioner, the proposed method for establishing
             16486      premium rates; and
             16487          (v) the proposed aggregate compensation of the five highest compensated officers,
             16488      directors, and employees;
             16489          (j) a projection certified by a member of the American Academy of Actuaries of the
             16490      anticipated operating results of the corporation at the end of each of the first two years of
             16491      operation, based on reasonable assumptions of loss experience, premium and other income,
             16492      operating expenses, and acquisition costs; and
             16493          (k) any other relevant document or information the commissioner reasonably requires.

             16494          (3) The commissioner shall issue an organization permit if:
             16495          (a) all the requirements of law have been met, including the payment of fees;
             16496          (b) all the incorporators, persons listed in Subsection (2)(b), and the proposed directors
             16497      and officers of the corporation being formed, are trustworthy and collectively have the
             16498      competence and experience to engage in the particular insurance business proposed;
             16499          (c) the business plan is consistent with the interests of the corporation's potential
             16500      insureds and the public; and
             16501          (d) the bond required by Section 31A-5-205 is filed.
             16502          (4) If the commissioner denies the application for a permit, the commissioner shall state
             16503      the reasons for the denial.
             16504          (5) (a) The organization permit shall:
             16505          (i) specify the minimum capital or minimum permanent surplus required under Section
             16506      31A-5-211 ; and
             16507          (ii) describe the securities or policies to be solicited under the permit.
             16508          (b) The organization permit may contain any other information the commissioner
             16509      considers necessary.
             16510          (6) The director of the Division of Corporations and Commercial Code shall accept the
             16511      filing of the corporation's articles of incorporation upon notice from the insurance commissioner
             16512      that all the applicable requirements of law have been met, including the payment of fees.
             16513          (7) (a) When the director of the Division of Corporations and Commercial Code
             16514      accepts the articles of incorporation:
             16515          (i) the legal existence of the corporation begins;
             16516          (ii) the articles and bylaws become effective; and
             16517          (iii) the proposed directors and officers take office.
             16518          (b) The certificate is conclusive evidence of compliance with this section, except in a
             16519      proceeding by the state against the corporation.
             16520          (8) Notwithstanding [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             16521      Access and Management Act, the permit applicant may request that any part of the information

             16522      supplied under Subsection (2) be kept confidential. The information shall then be kept
             16523      confidential unless the commissioner expressly finds, after a hearing, that the interest of the
             16524      corporation or the public requires that the information be open to the public.
             16525          Section 353. Section 31A-6a-110 is amended to read:
             16526           31A-6a-110. Rulemaking.
             16527          (1) Pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             16528      Rulemaking Act, the commissioner may make rules necessary to assist in the enforcement of
             16529      this chapter.
             16530          (2) The commissioner may by rule or order, after a hearing, exempt certain service
             16531      contract providers or service contract providers for a specific class of service contracts that are
             16532      not otherwise exempt under Subsection 31A-1-103 (3) from any provision of this title. The
             16533      commissioner may order substitute requirements on a finding that a particular provision of this
             16534      title is not necessary for the protection of the public or that the substitute requirement is
             16535      reasonably certain to provide equivalent protection to the public.
             16536          Section 354. Section 31A-8a-203 is amended to read:
             16537           31A-8a-203. Information filed with the department.
             16538          (1) Prior to operating a health discount program, a person must submit the following to
             16539      the commissioner:
             16540          (a) a copy of contract forms used by the health discount program for:
             16541          (i) health care providers or health care provider networks participating in the health
             16542      discount program, including the discounts for medical services provided to enrollees;
             16543          (ii) marketing;
             16544          (iii) administration of the health discount program;
             16545          (iv) enrollment;
             16546          (v) investment management for the health discount programs; and
             16547          (vi) subcontracts for any services;
             16548          (b) the program's proposed marketing plan; and
             16549          (c) dispute resolution procedures for program holders.

             16550          (2) The company must file prior to use:
             16551          (a) the form of contracts used by the health discount program operator;
             16552          (b) the marketing plan; and
             16553          (c) dispute resolution procedures.
             16554          (3) The commissioner may adopt rules in accordance with [Title 63, Chapter 46a] Title
             16555      63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this section.
             16556          Section 355. Section 31A-8a-210 is amended to read:
             16557           31A-8a-210. Rulemaking authority.
             16558          The commissioner has authority to adopt administrative rules in accordance with [Title
             16559      63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             16560          (1) to enforce this chapter; and
             16561          (2) as necessary to protect the public interest.
             16562          Section 356. Section 31A-12-107 is amended to read:
             16563           31A-12-107. Governmental immunity.
             16564          Notwithstanding any other provision of this title, a governmental entity is not an insurer
             16565      for purposes of this title and is not engaged in the business of insurance to the extent that it is:
             16566          (1) covering its own liabilities under [Title 63, Chapter 30d] Title 63G, Chapter 7,
             16567      Governmental Immunity Act of Utah; or
             16568          (2) engaging in other related risk management activities related to the normal course of
             16569      its activities.
             16570          Section 357. Section 31A-14-217 is amended to read:
             16571           31A-14-217. Revocation of certificate of authority.
             16572          Whenever there would be grounds for delinquency proceedings under Chapter 27a,
             16573      Insurer Receivership Act, against a foreign insurer, if the foreign insurer were a domestic
             16574      insurer, the commissioner may, after any proceeding authorized by [Title 63, Chapter 46b] Title
             16575      63G, Chapter 4, Administrative Procedures Act, revoke, suspend, or limit the foreign insurer's
             16576      certificate of authority. This action does not affect insurance which has already been issued.
             16577      The insurer remains subject to regulation until released under Section 31A-14-216 .

             16578          Section 358. Section 31A-17-503 is amended to read:
             16579           31A-17-503. Actuarial opinion of reserves.
             16580          (1) This section becomes operative on December 31, 1993.
             16581          (2) General: Every life insurance company doing business in this state shall annually
             16582      submit the opinion of a qualified actuary as to whether the reserves and related actuarial items
             16583      held in support of the policies and contracts specified by the commissioner by rule are computed
             16584      appropriately, are based on assumptions which satisfy contractual provisions, are consistent
             16585      with prior reported amounts, and comply with applicable laws of this state. The commissioner
             16586      by rule shall define the specifics of this opinion and add any other items considered to be
             16587      necessary to its scope.
             16588          (3) Actuarial analysis of reserves and assets supporting reserves:
             16589          (a) Every life insurance company, except as exempted by or pursuant to rule, shall also
             16590      annually include in the opinion required by Subsection (2), an opinion of the same qualified
             16591      actuary as to whether the reserves and related actuarial items held in support of the policies and
             16592      contracts specified by the commissioner by rule, when considered in light of the assets held by
             16593      the company with respect to the reserves and related actuarial items, including but not limited to
             16594      the investment earnings on the assets and the considerations anticipated to be received and
             16595      retained under the policies and contracts, make adequate provision for the company's
             16596      obligations under the policies and contracts, including but not limited to the benefits under the
             16597      expenses associated with the policies and contracts.
             16598          (b) The commissioner may provide by rule for a transition period for establishing any
             16599      higher reserves which the qualified actuary may consider necessary in order to render the
             16600      opinion required by this section.
             16601          (4) Requirement for opinion under Subsection (3): Each opinion required by Subsection
             16602      (3) shall be governed by the following provisions:
             16603          (a) A memorandum, in form and substance acceptable to the commissioner as specified
             16604      by rule, shall be prepared to support each actuarial opinion.
             16605          (b) If the insurance company fails to provide a supporting memorandum at the request

             16606      of the commissioner within a period specified by rule or the commissioner determines that the
             16607      supporting memorandum provided by the insurance company fails to meet the standards
             16608      prescribed by the rule or is otherwise unacceptable to the commissioner, the commissioner may
             16609      engage a qualified actuary at the expense of the company to review the opinion and the basis for
             16610      the opinion and prepare such supporting memorandum as is required by the commissioner.
             16611          (5) Requirement for all opinions: Every opinion shall be governed by the following
             16612      provisions:
             16613          (a) The opinion shall be submitted with the annual statement reflecting the valuation of
             16614      the reserve liabilities for each year ending on or after December 31, 1993.
             16615          (b) The opinion shall apply to all business in force including individual and group health
             16616      insurance plans, in form and substance acceptable to the commissioner as specified by rule.
             16617          (c) The opinion shall be based on standards adopted from time to time by the Actuarial
             16618      Standards Board and on such additional standards as the commissioner may by rule prescribe.
             16619          (d) In the case of an opinion required to be submitted by a foreign or alien company, the
             16620      commissioner may accept the opinion filed by that company with the insurance supervisory
             16621      official of another state if the commissioner determines that the opinion reasonably meets the
             16622      requirements applicable to a company domiciled in this state.
             16623          (e) For the purposes of this section, "qualified actuary" means a member in good
             16624      standing of the American Academy of Actuaries who meets the requirements set forth by
             16625      department rule.
             16626          (f) Except in cases of fraud or willful misconduct, the qualified actuary is not liable for
             16627      damages to any person, other than the insurance company and the commissioner, for any act,
             16628      error, omission, decision, or conduct with respect to the actuary's opinion.
             16629          (g) Disciplinary action by the commissioner against the company or the qualified
             16630      actuary shall be defined in rules by the commissioner.
             16631          (h) Any memorandum in support of the opinion, and any other material provided by the
             16632      company to the commissioner in connection therewith, are considered protected records under
             16633      Section [ 63-2-304 ] 63G-2-305 and may not be made public and are not subject to subpoena

             16634      under Subsection [ 63-2-202 ] 63G-2-202 (7), other than for the purpose of defending an action
             16635      seeking damages from any person by reason of any action required by this section or rules
             16636      promulgated under this section. However, the memorandum or other material may otherwise be
             16637      released by the commissioner (i) with the written consent of the company or (ii) to the
             16638      American Academy of Actuaries upon request stating that the memorandum or other material is
             16639      required for the purpose of professional disciplinary proceedings and setting forth procedures
             16640      satisfactory to the commissioner for preserving the confidentiality of the memorandum or other
             16641      material. Once any portion of the confidential memorandum is cited in its marketing or is cited
             16642      before any governmental agency other than the department or is released to the news media, all
             16643      portions of the memorandum are no longer confidential.
             16644          Section 359. Section 31A-19a-211 (Superseded 07/01/08) is amended to read:
             16645           31A-19a-211 (Superseded 07/01/08). Premium rate reduction for seniors -- Motor
             16646      vehicle accident prevention course -- Curriculum -- Certificate -- Exception.
             16647          (1) (a) Each rate, rating schedule, and rating manual for the liability, personal injury
             16648      protection, and collision coverages of private passenger motor vehicle insurance policies
             16649      submitted to or filed with the commissioner shall provide for an appropriate reduction in
             16650      premium charges for those coverages if the principal operator of the covered vehicle:
             16651          (i) is a named insured who is 55 years of age or older; and
             16652          (ii) has successfully completed a motor vehicle accident prevention course as outlined in
             16653      Subsection (2).
             16654          (b) Any premium reduction provided by an insurer under this section is presumed to be
             16655      appropriate unless credible data demonstrates otherwise.
             16656          (2) (a) The curriculum for a motor vehicle accident prevention course under this section
             16657      shall include:
             16658          (i) how impairment of visual and audio perception affects driving performance and how
             16659      to compensate for that impairment;
             16660          (ii) the effects of fatigue, medications, and alcohol on driving performance, when
             16661      experienced alone or in combination, and precautionary measures to prevent or offset ill effects;

             16662          (iii) updates on rules of the road and equipment, including safety belts and safe, efficient
             16663      driving techniques under present day road and traffic conditions;
             16664          (iv) how to plan travel time and select routes for safety and efficiency; and
             16665          (v) how to make crucial decisions in dangerous, hazardous, and unforeseen situations.
             16666          (b) (i) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             16667      Administrative Rulemaking Act, the Department of Public Safety may make rules to establish
             16668      and clarify standards pertaining to the curriculum and teaching methods of a course under this
             16669      section.
             16670          (ii) These rules may include provisions allowing the department to conduct on-site visits
             16671      to ensure compliance with agency rules and this chapter.
             16672          (iii) These rules shall be specific as to time and manner of visits and provide for
             16673      methods to prohibit or remedy forcible visits.
             16674          (3) (a) The premium reduction required by this section shall be effective for a named
             16675      insured for a three-year period after successful completion of the course outlined in Subsection
             16676      (2).
             16677          (b) The insurer may require, as a condition of maintaining the premium reduction, that
             16678      the named insured not be convicted or plead guilty or nolo contendere to a moving traffic
             16679      violation for which points may be assessed against the named insured's driver license except for
             16680      a violation under Subsection 53-3-221 (11).
             16681          (4) Each person who successfully completes the course outlined in Subsection (2) shall
             16682      be issued a certificate by the organization offering the course. The certificate qualifies the
             16683      person for the premium reduction required by this section.
             16684          (5) This section does not apply if the approved course outlined in Subsection (2) is
             16685      attended as a penalty imposed by a court or other governmental entity for a moving traffic
             16686      violation.
             16687          Section 360. Section 31A-19a-211 (Effective 07/01/08) is amended to read:
             16688           31A-19a-211 (Effective 07/01/08). Premium rate reduction for seniors -- Motor
             16689      vehicle accident prevention course -- Curriculum -- Certificate -- Exception.

             16690          (1) (a) Each rate, rating schedule, and rating manual for the liability, personal injury
             16691      protection, and collision coverages of private passenger motor vehicle insurance policies
             16692      submitted to or filed with the commissioner shall provide for an appropriate reduction in
             16693      premium charges for those coverages if the principal operator of the covered vehicle:
             16694          (i) is a named insured who is 55 years of age or older; and
             16695          (ii) has successfully completed a motor vehicle accident prevention course as outlined in
             16696      Subsection (2).
             16697          (b) Any premium reduction provided by an insurer under this section is presumed to be
             16698      appropriate unless credible data demonstrates otherwise.
             16699          (2) (a) The curriculum for a motor vehicle accident prevention course under this section
             16700      shall include:
             16701          (i) how impairment of visual and audio perception affects driving performance and how
             16702      to compensate for that impairment;
             16703          (ii) the effects of fatigue, medications, and alcohol on driving performance, when
             16704      experienced alone or in combination, and precautionary measures to prevent or offset ill effects;
             16705          (iii) updates on rules of the road and equipment, including safety belts and safe, efficient
             16706      driving techniques under present day road and traffic conditions;
             16707          (iv) how to plan travel time and select routes for safety and efficiency; and
             16708          (v) how to make crucial decisions in dangerous, hazardous, and unforeseen situations.
             16709          (b) (i) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             16710      Administrative Rulemaking Act, the Department of Public Safety may make rules to establish
             16711      and clarify standards pertaining to the curriculum and teaching methods of a course under this
             16712      section.
             16713          (ii) These rules may include provisions allowing the department to conduct on-site visits
             16714      to ensure compliance with agency rules and this chapter.
             16715          (iii) These rules shall be specific as to time and manner of visits and provide for
             16716      methods to prohibit or remedy forcible visits.
             16717          (3) (a) The premium reduction required by this section shall be effective for a named

             16718      insured for a three-year period after successful completion of the course outlined in Subsection
             16719      (2).
             16720          (b) The insurer may require, as a condition of maintaining the premium reduction, that
             16721      the named insured not be convicted or plead guilty or nolo contendere to a moving traffic
             16722      violation for which points may be assessed against the named insured's driver license except for
             16723      a violation under Subsection 53-3-221 (12).
             16724          (4) Each person who successfully completes the course outlined in Subsection (2) shall
             16725      be issued a certificate by the organization offering the course. The certificate qualifies the
             16726      person for the premium reduction required by this section.
             16727          (5) This section does not apply if the approved course outlined in Subsection (2) is
             16728      attended as a penalty imposed by a court or other governmental entity for a moving traffic
             16729      violation.
             16730          Section 361. Section 31A-19a-304 is amended to read:
             16731           31A-19a-304. Probation.
             16732          (1) (a) In any circumstances that would justify a suspension under Section
             16733      31A-19a-303 , instead of a suspension, the commissioner may, after a hearing, put the licensee
             16734      on probation for a specified period not to exceed 12 months from the date of probation.
             16735          (b) The probation order shall state the conditions for retention of the license, which
             16736      shall be reasonable.
             16737          (2) Violation of the probation constitutes grounds for revocation pursuant to a
             16738      proceeding authorized under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             16739      Procedures Act.
             16740          Section 362. Section 31A-21-109 is amended to read:
             16741           31A-21-109. Debt cancellation agreements and debt suspension agreements.
             16742          (1) As used in this section:
             16743          (a) "Debt cancellation agreement" means a contract between a lender and a borrower
             16744      where the lender, for a separately stated consideration, agrees to waive all or part of the debt in
             16745      the event of a fortuitous event such as death, disability, or the destruction of the lender's

             16746      collateral.
             16747          (b) "Debt suspension agreement" means a contract between a lender and a borrower
             16748      where the lender, for a separately stated consideration, agrees to suspend scheduled installment
             16749      payments for an agreed period of time in the event of a:
             16750          (i) fortuitous event such as involuntary unemployment or accident; or
             16751          (ii) fortuitous condition such as sickness.
             16752          (c) "Institution" means:
             16753          (i) a bank as defined in Section 7-1-103 ;
             16754          (ii) a credit union as defined in Section 7-1-103 ;
             16755          (iii) an industrial bank as defined in Section 7-1-103 ; or
             16756          (iv) a savings and loan association as defined in Section 7-1-103 .
             16757          (d) "Regulate the issuance" includes regulation of the following with respect to a debt
             16758      cancellation agreement or a debt suspension agreement:
             16759          (i) terms;
             16760          (ii) conditions;
             16761          (iii) rates;
             16762          (iv) forms; and
             16763          (v) claims.
             16764          (e) "Subsidiary" is as defined in Section 7-1-103 .
             16765          (2) Except as provided in Subsection (6), the commissioner has sole jurisdiction over
             16766      the regulation of a debt cancellation agreement or debt suspension agreement.
             16767          (3) Subject to this section, the commissioner may by rule, made in accordance with
             16768      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             16769          (a) authorize an insurer to issue:
             16770          (i) a debt cancellation agreement; or
             16771          (ii) a debt suspension agreement; and
             16772          (b) regulate the issuance of:
             16773          (i) a debt cancellation agreement; or

             16774          (ii) a debt suspension agreement.
             16775          (4) Except as provided in Subsection (6), a debt cancellation agreement or a debt
             16776      suspension agreement may be issued only by an insurer authorized to issue a debt cancellation
             16777      agreement or debt suspension agreement under this section.
             16778          (5) (a) The rules promulgated by the commissioner under this section shall regulate the
             16779      issuance of a debt cancellation agreement or debt suspension agreement according to the
             16780      functional insurance equivalent of each type of debt cancellation agreement or debt suspension
             16781      agreement.
             16782          (b) Except as provided in Subsection (5)(c), in accordance with [Title 63, Chapter 46a]
             16783      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commissioner may by rule
             16784      determine the functional insurance equivalent of each type of debt cancellation agreement or
             16785      debt suspension agreement.
             16786          (c) Notwithstanding Subsection (5)(b), the functional insurance equivalent of a debt
             16787      cancellation agreement that provides for the cancellation of indebtedness at death is credit life
             16788      insurance.
             16789          (6) Notwithstanding the other provisions of this section, the issuance of a debt
             16790      cancellation agreement or a debt suspension agreement by an institution or a subsidiary of an
             16791      institution is:
             16792          (a) not subject to this section; and
             16793          (b) subject to the jurisdiction of the primary regulator of:
             16794          (i) the institution; or
             16795          (ii) the subsidiary of an institution.
             16796          Section 363. Section 31A-22-315 is amended to read:
             16797           31A-22-315. Motor vehicle insurance reporting -- Penalty.
             16798          (1) (a) As used in this section, "commercial motor vehicle insurance coverage" means
             16799      an insurance policy that:
             16800          (i) includes motor vehicle liability coverage, uninsured motorist coverage, underinsured
             16801      motorist coverage, or personal injury coverage; and

             16802          (ii) is defined by the department.
             16803          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             16804      Administrative Rulemaking Act, the department shall make rules defining commercial motor
             16805      vehicle insurance coverage.
             16806          (2) (a) Except as provided in Subsections (2)(b) and (c), each insurer that issues a
             16807      policy that includes motor vehicle liability coverage, uninsured motorist coverage, underinsured
             16808      motorist coverage, or personal injury coverage under this part shall before the seventh and
             16809      twenty-first day of each calendar month provide to the Department of Public Safety's designated
             16810      agent selected in accordance with Title 41, Chapter 12a, Part 8, Uninsured Motorist
             16811      Identification Database Program, a record of each motor vehicle insurance policy in effect for
             16812      vehicles registered or garaged in Utah as of the previous submission that was issued by the
             16813      insurer.
             16814          (b) Each insurer that issues commercial motor vehicle insurance coverage shall before
             16815      the seventh day of each calendar month provide to the Department of Public Safety's designated
             16816      agent selected in accordance with Title 41, Chapter 12a, Part 8, Uninsured Motorist
             16817      Identification Database Program, a record of each commercial motor vehicle insurance policy in
             16818      effect for vehicles registered or garaged in Utah as of the previous month that was issued by the
             16819      insurer.
             16820          (c) An insurer that issues a policy that includes motor vehicle liability coverage,
             16821      uninsured motorist coverage, underinsured motorist coverage, or personal injury coverage
             16822      under this part is not required to provide a record of a motor vehicle insurance policy in effect
             16823      for a vehicle to the Department of Public Safety's designated agent under Subsection (2)(a) or
             16824      (b) if the policy covers a vehicle that is registered under Section 41-1a-221 , 41-1a-222 , or
             16825      41-1a-301 .
             16826          (d) This Subsection (2) does not preclude more frequent reporting.
             16827          (3) (a) A record provided by an insurer under Subsection (2)(a) shall include:
             16828          (i) the name, date of birth, and driver license number, if the insured provides a driver
             16829      license number to the insurer, of each insured owner or operator, and the address of the named

             16830      insured;
             16831          (ii) the make, year, and vehicle identification number of each insured vehicle; and
             16832          (iii) the policy number, effective date, and expiration date of each policy.
             16833          (b) A record provided by an insurer under Subsection (2)(b) shall include:
             16834          (i) the named insured;
             16835          (ii) the policy number, effective date, and expiration date of each policy; and
             16836          (iii) the following information, if available:
             16837          (A) the name, date of birth, and driver license number of each insured owner or
             16838      operator, and the address of the named insured; and
             16839          (B) the make, year, and vehicle identification number of each insured vehicle.
             16840          (4) Each insurer shall provide this information by an electronic means or by another
             16841      form the Department of Public Safety's designated agent agrees to accept.
             16842          (5) (a) The commissioner may, following procedures set forth in [Title 63, Chapter 46b]
             16843      Title 63G, Chapter 4, Administrative Procedures Act, assess a fine against an insurer of up to
             16844      $250 for each day the insurer fails to comply with this section.
             16845          (b) If an insurer shows that the failure to comply with this section was inadvertent,
             16846      accidental, or the result of excusable neglect, the commissioner shall excuse the fine.
             16847          Section 364. Section 31A-22-320 is amended to read:
             16848           31A-22-320. Use of credit information.
             16849          (1) For purposes of this section:
             16850          (a) "Credit information" means:
             16851          (i) a consumer report;
             16852          (ii) a credit score;
             16853          (iii) any information obtained by the insurer from a consumer report;
             16854          (iv) any part of a consumer report; or
             16855          (v) any part of a credit score.
             16856          (b) (i) Except as provided in Subsection (1)(b)(ii), "consumer report" is as defined in 15
             16857      U.S.C. 1681a.

             16858          (ii) "Consumer report" does not include:
             16859          (A) a motor vehicle record obtained from a state or an agency of a state; or
             16860          (B) any information regarding an applicant's or insured's insurance claim history.
             16861          (c) (i) "Credit score" means a numerical value or a categorization that is:
             16862          (A) derived from information in a consumer report;
             16863          (B) derived from a statistical tool or modeling system; and
             16864          (C) developed to predict the likelihood of:
             16865          (I) future insurance claims behavior; or
             16866          (II) credit behavior.
             16867          (ii) "Credit score" includes:
             16868          (A) a risk predictor; or
             16869          (B) a risk score.
             16870          (iii) A numerical value or a categorization described in Subsection (1)(c)(i) is a credit
             16871      score if it is developed to predict the behavior described in Subsection (1)(c)(i)(C) regardless of
             16872      whether it is developed to predict other factors in addition to predicting the behavior described
             16873      in Subsection (1)(c)(i)(C).
             16874          (d) "Motor vehicle related insurance policy" means:
             16875          (i) a motor vehicle liability policy;
             16876          (ii) a policy that contains uninsured motorist coverage;
             16877          (iii) a policy that contains underinsured motorist coverage;
             16878          (iv) a policy that contains property damage coverage under this part; or
             16879          (v) a policy that contains personal injury coverage under this part.
             16880          (2) An insurer that issues a motor vehicle related insurance policy:
             16881          (a) except as provided in Subsection (2)(b), may not use credit information for the
             16882      purpose of determining for the motor vehicle related insurance policy:
             16883          (i) renewal;
             16884          (ii) nonrenewal;
             16885          (iii) termination;

             16886          (iv) eligibility;
             16887          (v) underwriting; or
             16888          (vi) rating; and
             16889          (b) notwithstanding Subsection (2)(a), may use credit information for the purpose of:
             16890          (i) if risk related factors other than credit information are considered, determining initial
             16891      underwriting; or
             16892          (ii) providing to an insured:
             16893          (A) a reduction in rates paid by the insured for the motor vehicle related insurance
             16894      policy; or
             16895          (B) any other discount similar to the reduction in rates described in Subsection
             16896      (2)(b)(ii)(A).
             16897          (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             16898      Administrative Rulemaking Act, the commissioner may make rules necessary to enforce this
             16899      section.
             16900          Section 365. Section 31A-22-403 is amended to read:
             16901           31A-22-403. Incontestability.
             16902          (1) This section does not apply to group policies.
             16903          (2) (a) Except as provided in Subsection (3), a life insurance policy is incontestable
             16904      after the policy has been in force for a period of two years from the policy's date of issue:
             16905          (i) during the lifetime of the insured; or
             16906          (ii) for a survivorship life insurance policy, during the lifetime of the surviving insured.
             16907          (b) A life insurance policy shall state that the life insurance policy is incontestable after
             16908      the time period described in Subsection (2)(a).
             16909          (3) (a) A life insurance policy described in Subsection (2) may be contested for
             16910      nonpayment of premiums.
             16911          (b) A life insurance policy described in Subsection (2) may be contested as to:
             16912          (i) provisions relating to accident and health benefits allowed under Section
             16913      31A-22-609 ; and

             16914          (ii) additional benefits in the event of death by accident.
             16915          (c) If a life insurance policy described in Subsection (2) allows the insured, after the
             16916      policy's issuance and for an additional premium, to obtain a death benefit that is larger than
             16917      when the policy was originally issued, the payment of the additional increment of benefit is
             16918      contestable:
             16919          (i) until two years after the incremental increase of benefits; and
             16920          (ii) based only on a ground that may arise in connection with the incremental increase.
             16921          (4) (a) A reinstated life insurance policy may be contested:
             16922          (i) for two years following reinstatement on the same basis as at original issuance; and
             16923          (ii) only as to matters arising in connection with the reinstatement.
             16924          (b) Any grounds for contest available at original issuance continue to be available for
             16925      contest until the policy has been in force for a total of two years:
             16926          (i) during the lifetime of the insured; and
             16927          (ii) for a survivorship life insurance policy, during the lifetime of the surviving insured.
             16928          (5) (a) The limitations on incontestability under this section:
             16929          (i) preclude only a contest of the validity of the policy; and
             16930          (ii) do not preclude the good faith assertion at any time of defenses based upon
             16931      provisions in the policy that exclude or qualify coverage, whether or not those qualifications or
             16932      exclusions are specifically excepted in the policy's incontestability clause.
             16933          (b) A provision on which the contestable period would normally run may not be
             16934      reformulated as a coverage exclusion or restriction to take advantage of this Subsection (5).
             16935          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             16936      Administrative Rulemaking Act, the commissioner may make rules to implement this section.
             16937          Section 366. Section 31A-22-409 is amended to read:
             16938           31A-22-409. Standard Nonforfeiture Law for Individual Deferred Annuities.
             16939          (1) This section is known as the "Standard Nonforfeiture Law for Individual Deferred
             16940      Annuities."
             16941          (2) This section does not apply to:

             16942          (a) any reinsurance;
             16943          (b) a group annuity purchased under a retirement plan or plan of deferred
             16944      compensation:
             16945          (i) established or maintained by:
             16946          (A) an employer, including a partnership or sole proprietorship;
             16947          (B) an employee organization; or
             16948          (C) both an employer and an employee organization; and
             16949          (ii) other than a plan providing individual retirement accounts or individual retirement
             16950      annuities under Section 408, Internal Revenue Code;
             16951          (c) a premium deposit fund;
             16952          (d) a variable annuity;
             16953          (e) an investment annuity;
             16954          (f) an immediate annuity;
             16955          (g) a deferred annuity contract after annuity payments have commenced;
             16956          (h) a reversionary annuity; or
             16957          (i) any contract that shall be delivered outside this state through an agent or other
             16958      representative of the company issuing the contract.
             16959          (3) (a) If a policy is issued after this section takes effect as set forth in Subsection (15),
             16960      a contract of annuity, except as stated in Subsection (2), may not be delivered or issued for
             16961      delivery in this state unless the contract of annuity contains in substance:
             16962          (i) the provisions described in Subsection (3)(b); or
             16963          (ii) provisions corresponding to the provisions described in Subsection (3)(b) that in the
             16964      opinion of the commissioner are at least as favorable to the contractholder, governing cessation
             16965      of payment of consideration under the contract.
             16966          (b) Subsection (3)(a)(i) requires the following provisions:
             16967          (i) the company shall grant a paid-up annuity benefit on a plan stipulated in the contract
             16968      of such a value as specified in Subsections (7), (8), (9), (10), and (12):
             16969          (A) upon cessation of payment of consideration under a contract; or

             16970          (B) upon a written request of the contract owner;
             16971          (ii) if a contract provides for a lump-sum settlement at maturity, or at any other time,
             16972      upon surrender of the contract at or before the commencement of any annuity payments, the
             16973      company shall pay in lieu of any paid-up annuity benefit a cash surrender benefit of such amount
             16974      as is specified in Subsections (7), (8), (10), and (12);
             16975          (iii) a statement of the mortality table, if any, and interest rates used in calculating any
             16976      of the following that are guaranteed under the contract:
             16977          (A) minimum paid-up annuity benefits;
             16978          (B) cash surrender benefits; or
             16979          (C) death benefits;
             16980          (iv) sufficient information to determine the amounts of the benefits described in
             16981      Subsection (3)(b)(iii);
             16982          (v) a statement that any paid-up annuity, cash surrender, or death benefits that may be
             16983      available under the contract are not less than the minimum benefits required by any statute of
             16984      the state in which the contract is delivered; and
             16985          (vi) an explanation of the manner in which the benefits described in Subsection (3)(b)(v)
             16986      are altered by the existence of any:
             16987          (A) additional amounts credited by the company to the contract;
             16988          (B) indebtedness to the company on the contract; or
             16989          (C) prior withdrawals from or partial surrender of the contract.
             16990          (c) Notwithstanding the requirements of this Subsection (3), any deferred annuity
             16991      contract may provide that if no consideration has been received under a contract for a period of
             16992      two full years and the portion of the paid-up annuity benefit at maturity on the plan stipulated in
             16993      the contract arising from consideration paid before the period would be less than $20 monthly:
             16994          (i) the company may at the company's option terminate the contract by payment in cash
             16995      of the then present value of such portion of the paid-up annuity benefit, calculated on the basis
             16996      of the mortality table specified in the contract, if any, and the interest rate specified in the
             16997      contract for determining the paid-up annuity benefit; and

             16998          (ii) the payment described in Subsection (3)(c)(i), relieves the company of any further
             16999      obligation under the contract.
             17000          (d) A company may reserve the right to defer the payment of cash surrender benefit for
             17001      a period not to exceed six months after demand for the payment of the cash surrender benefit
             17002      with surrender of the contract.
             17003          (4) For a policy issued before June 1, 2006, the minimum values as specified in
             17004      Subsections (7), (8), (9), (10), and (12) of any paid-up annuity, cash surrender, or death benefits
             17005      available under an annuity contract shall be based upon minimum nonforfeiture amounts as
             17006      established in this Subsection (4).
             17007          (a) (i) With respect to contracts providing for flexible considerations, the minimum
             17008      nonforfeiture amount at any time at or before the commencement of any annuity payments shall
             17009      be equal to an accumulation up to such time, at a rate of interest of 3% per annum of
             17010      percentages of the net considerations paid prior to such time:
             17011          (A) decreased by the sum of:
             17012          (I) any prior withdrawals from or partial surrenders of the contract accumulated at a
             17013      rate of interest of 3% per annum; and
             17014          (II) the amount of any indebtedness to the company on the contract, including interest
             17015      due and accrued; and
             17016          (B) increased by any existing additional amounts credited by the company to the
             17017      contract.
             17018          (ii) For purposes of this Subsection (4)(a), the net consideration for a given contract
             17019      year used to define the minimum nonforfeiture amount shall be:
             17020          (A) an amount not less than zero; and
             17021          (B) equal to the corresponding gross considerations credited to the contract during that
             17022      contract year less:
             17023          (I) an annual contract charge of $30; and
             17024          (II) a collection charge of $1.25 per consideration credited to the contract during that
             17025      contract year.

             17026          (iii) The percentages of net considerations shall be:
             17027          (A) 65% of the net consideration for the first contract year; and
             17028          (B) 87-1/2% of the net considerations for the second and later contract years.
             17029          (iv) Notwithstanding Subsection (4)(a)(iii), the percentage shall be 65% of the portion
             17030      of the total net consideration for any renewal contract year that exceeds by not more than two
             17031      times the sum of those portions of the net considerations in all prior contract years for which the
             17032      percentage was 65%.
             17033          (b) (i) Except as provided in Subsections (4)(b)(ii) and (iii), with respect to contracts
             17034      providing for fixed scheduled consideration, minimum nonforfeiture amounts shall be:
             17035          (A) calculated on the assumption that considerations are paid annually in advance; and
             17036          (B) defined as for contracts with flexible considerations that are paid annually.
             17037          (ii) The portion of the net consideration for the first contract year to be accumulated
             17038      shall be equal to an amount that is the sum of:
             17039          (A) 65% of the net consideration for the first contract year; and
             17040          (B) 22-1/2% of the excess of the net consideration for the first contract year over the
             17041      lesser of the net considerations for:
             17042          (I) the second contract year; and
             17043          (II) the third contract year.
             17044          (iii) The annual contract charge shall be the lesser of $30 or 10% of the gross annual
             17045      consideration.
             17046          (c) With respect to contracts providing for a single consideration payment, minimum
             17047      nonforfeiture amounts shall be defined as for contracts with flexible considerations except that:
             17048          (i) the percentage of net consideration used to determine the minimum nonforfeiture
             17049      amount shall be equal to 90%; and
             17050          (ii) the net consideration shall be the gross consideration less a contract charge of $75.
             17051          (5) For a policy issued on or after June 1, 2006, the minimum values as specified in
             17052      Subsections (7), (8), (9), (10), and (12) of any paid-up annuity, cash surrender, or death benefits
             17053      available under an annuity contract shall be based upon minimum nonforfeiture amounts as

             17054      established in this Subsection (5).
             17055          (a) The minimum nonforfeiture amount at any time at or before the commencement of
             17056      any annuity payments shall be equal to an accumulation up to such time, at rates of interest as
             17057      indicated in Subsection (5)(b), of 87-1/2% of the gross considerations paid before such time
             17058      decreased by the sum of:
             17059          (i) any prior withdrawals from or partial surrenders of the contract accumulated at rates
             17060      of interest as indicated in Subsection (5)(b);
             17061          (ii) an annual contract charge of $50, accumulated at rates of interest as indicated in
             17062      Subsection (5)(b);
             17063          (iii) any premium tax paid by the company for the contract, accumulated at rates of
             17064      interest as indicated in Subsection (5)(b); and
             17065          (iv) the amount of any indebtedness to the company on the contract, including interest
             17066      due and accrued.
             17067          (b) (i) The interest rate used in determining minimum nonforfeiture amounts shall be an
             17068      annual rate of interest determined as the lesser of:
             17069          (A) 3% per annum; and
             17070          (B) the five-year Constant Maturity Treasury Rate reported by the Federal Reserve,
             17071      rounded to the nearest 1/20th of 1%, as of a date or average over a period no longer than 15
             17072      months prior to the contract issue date or redetermination date under Subsection (5)(b)(iii):
             17073          (I) reduced by 125 basis points; and
             17074          (II) where the resulting interest rate is not less than 1%.
             17075          (ii) The interest rate shall apply for an initial period and may be redetermined for
             17076      additional periods.
             17077          (iii) (A) If the interest rate will be reset, the contract shall state:
             17078          (I) the initial period;
             17079          (II) the redetermination date;
             17080          (III) the redetermination basis; and
             17081          (IV) the redetermination period.

             17082          (B) The basis is the date or average over a specified period that produces the value of
             17083      the five-year Constant Maturity Treasury Rate to be used at each redetermination date.
             17084          (c) (i) During the period or term that a contract provides substantive participation in an
             17085      equity indexed benefit, the reduction described in Subsection (5)(b)(i)(B)(I) may be increased by
             17086      up to an additional 100 basis points to reflect the value of the equity index benefit.
             17087          (ii) The present value of the additional reduction at the contract issue date and at each
             17088      redetermination date may not exceed the market value of the benefit.
             17089          (iii) (A) The commissioner may require a demonstration that the present value of the
             17090      additional reduction does not exceed the market value of the benefit.
             17091          (B) If the demonstration required under Subsection (5)(c)(iii)(A) is not made to the
             17092      satisfaction of the commissioner, the commissioner may disallow or limit the additional
             17093      reduction.
             17094          (6) Notwithstanding Subsection (4), for a policy issued on or after June 1, 2004 and
             17095      before June 1, 2006, at the election of a company, on a contract form-by-contract form basis,
             17096      the minimum values as specified in Subsections (7), (8), (9), (10), and (12) of any paid-up
             17097      annuity, cash surrender, or death benefits available under an annuity contract may be based upon
             17098      minimum nonforfeiture amounts as established in Subsection (5).
             17099          (7) (a) Any paid-up annuity benefit available under a contract shall be such that the
             17100      contract's present value on the date annuity payments are to commence is at least equal to the
             17101      minimum nonforfeiture amount on that date.
             17102          (b) The present value described in Subsection (7)(a) shall be computed using the
             17103      mortality table, if any, and the interest rate specified in the contract for determining the
             17104      minimum paid-up annuity benefits guaranteed in the contract.
             17105          (8) (a) For contracts that provide cash surrender benefits, the cash surrender benefits
             17106      available before maturity may not be less than the present value as of the date of surrender of
             17107      that portion of the cash surrender value that would be provided under the contract at maturity
             17108      arising from considerations paid before the time of cash surrender:
             17109          (i) decreased by the amount appropriate to reflect any prior withdrawals from or partial

             17110      surrender of the contract;
             17111          (ii) decreased by the amount of any indebtedness to the company on the contract,
             17112      including interest due and accrued; and
             17113          (iii) increased by any existing additional amounts credited by the company to the
             17114      contract.
             17115          (b) For purposes of this Subsection (8), the present value being calculated on the basis
             17116      of an interest rate not more than 1% higher than the interest rate specified in the contract for
             17117      accumulating the net considerations to determine the maturity value.
             17118          (c) In no event shall any cash surrender benefit be less than the minimum nonforfeiture
             17119      amount at that time.
             17120          (d) The death benefit under a contract described in Subsection (8)(a) shall be at least
             17121      equal to the cash surrender benefit.
             17122          (9) (a) For contracts that do not provide cash surrender benefits, the present value of
             17123      any paid-up annuity benefit available as a nonforfeiture option at any time prior to maturity may
             17124      not be less than the present value of that portion of the maturity value of the paid-up annuity
             17125      benefit provided under the contract arising from considerations paid before the time the contract
             17126      is surrendered in exchange for, or changed to, a deferred paid-up annuity increased by any
             17127      existing additional amounts credited by the company to the contract.
             17128          (b) For purposes of this Subsection (9), the present value being calculated for the
             17129      period prior to the maturity date on the basis of the interest rate specified in the contract for
             17130      accumulating the net considerations to determine maturity value.
             17131          (c) For contracts that do not provide any death benefits before commencement of any
             17132      annuity payments, the present values shall be calculated on the basis of the interest rate and the
             17133      mortality table specified in the contract for determining the maturity value of the paid-up
             17134      annuity benefit.
             17135          (d) In no event shall the present value of a paid-up annuity benefit be less than the
             17136      minimum nonforfeiture amount at that time.
             17137          (10) (a) For the purpose of determining the benefits calculated under Subsections (8)

             17138      and (9), the maturity date shall be considered to be the latest date permitted by the contract,
             17139      except that it may not be considered to be later than the later of:
             17140          (i) the anniversary of the contract next following the annuitant's 70th birthday; or
             17141          (ii) the tenth anniversary of the contract.
             17142          (b) For a contract that provides cash surrender benefits, the cash surrender value on or
             17143      past the maturity date shall be equal to the amount used to determine the annuity benefit
             17144      payments.
             17145          (c) A surrender charge may not be imposed on or past maturity.
             17146          (11) Any contract that does not provide cash surrender benefits or does not provide
             17147      death benefits at least equal to the minimum nonforfeiture amount before the commencement of
             17148      any annuity payments shall include a statement in a prominent place in the contract that these
             17149      benefits are not provided.
             17150          (12) Any paid-up annuity, cash surrender, or death benefits available at any time, other
             17151      than on the contract anniversary under any contract with fixed scheduled considerations, shall
             17152      be calculated with allowance for the lapse of time and the payment of any scheduled
             17153      considerations beyond the beginning of the contract year in which cessation of payment of
             17154      considerations under the contract occurs.
             17155          (13) (a) For any contract that provides, within the same contract by rider or
             17156      supplemental contract provisions, both annuity benefits and life insurance benefits that are in
             17157      excess of the greater of cash surrender benefits or a return of the gross considerations with
             17158      interest, the minimum nonforfeiture benefits shall:
             17159          (i) be equal to the sum of:
             17160          (A) the minimum nonforfeiture benefits for the annuity portion; and
             17161          (B) the minimum nonforfeiture benefits, if any, for the life insurance portion; and
             17162          (ii) computed as if each portion were a separate contract.
             17163          (b) (i) Notwithstanding Subsections (7), (8), (9), (10), and (12), additional benefits
             17164      payable, as described in Subsection (13)(b)(ii), and consideration for the additional benefits
             17165      payable, shall be disregarded in ascertaining, if required by this section:

             17166          (A) the minimum nonforfeiture amounts;
             17167          (B) paid-up annuity;
             17168          (C) cash surrender; and
             17169          (D) death benefits.
             17170          (ii) For purposes of this Subsection (13), an additional benefit is a benefit payable:
             17171          (A) in the event of total and permanent disability;
             17172          (B) as reversionary annuity or deferred reversionary annuity benefits; or
             17173          (C) as other policy benefits additional to life insurance, endowment, and annuity
             17174      benefits.
             17175          (iii) The inclusion of the additional benefits described in this Subsection (13) may not be
             17176      required in any paid-up benefits, unless the additional benefits separately would require:
             17177          (A) minimum nonforfeiture amounts;
             17178          (B) paid-up annuity;
             17179          (C) cash surrender; and
             17180          (D) death benefits.
             17181          (14) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             17182      Administrative Rulemaking Act, the commissioner may adopt rules necessary to implement this
             17183      section, including:
             17184          (a) ensuring that any additional reduction under Subsection (5)(c) is consistent with the
             17185      requirements imposed by Subsection (5)(c); and
             17186          (b) providing for adjustments in addition to the adjustments allowed under Subsection
             17187      (5)(c) to the calculation of minimum nonforfeiture amounts for:
             17188          (i) contracts that provide substantive participation in an equity index benefit; and
             17189          (ii) other contracts for which the commissioner determines adjustments are justified.
             17190          (15) (a) After this section takes effect, any company may file with the commissioner a
             17191      written notice of its election to comply with this section after a specified date before July 1,
             17192      1988.
             17193          (b) This section applies to annuity contracts of a company issued on or after the date

             17194      the company specifies in the notice.
             17195          (c) If a company makes no election under Subsection (15)(a), the operative date of this
             17196      section for such company is July 1, 1988.
             17197          Section 367. Section 31A-22-425 is amended to read:
             17198           31A-22-425. Rulemaking authority for standards related to life insurance and
             17199      annuities.
             17200          In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             17201      Rulemaking Act, the commissioner may make rules to establish standards for any of the
             17202      following:
             17203          (1) if used in connection with the solicitation or sale of life insurance policies and
             17204      contracts:
             17205          (a) a buyer's guide;
             17206          (b) a disclosure;
             17207          (c) an illustration;
             17208          (d) a policy summary; or
             17209          (e) a recommendation; and
             17210          (2) in a life insurance policy, annuity contract, or life insurance or annuity certificate:
             17211          (a) a definition of a term;
             17212          (b) a disclosure;
             17213          (c) an exclusion; or
             17214          (d) a limitation.
             17215          Section 368. Section 31A-22-614.5 is amended to read:
             17216           31A-22-614.5. Uniform claims processing.
             17217          (1) Beginning July 1, 1993, all insurers offering health insurance shall use a uniform
             17218      claim form and uniform billing and claim codes.
             17219          (2) The uniform claim forms and billing codes shall be adopted and approved by the
             17220      commissioner in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             17221      Administrative Rulemaking Act. The commissioner shall consult with the director of the

             17222      Division of Health Care Financing, the National Uniform Claim Form Task Force, and the
             17223      National Uniform Billing Committee when adopting the uniform claims and billing codes.
             17224          (3) (a) Beginning July 1, 1995, all insurers shall offer compatible systems of electronic
             17225      billing approved by the commissioner in accordance with [Title 63, Chapter 46a] Title 63G,
             17226      Chapter 3, Utah Administrative Rulemaking Act. The systems approved by the commissioner
             17227      may include monitoring and disseminating information concerning eligibility and coverage of
             17228      individuals.
             17229          (b) The commissioner shall regulate any fees charged by insurers to the providers for
             17230      uniform claim forms or electronic billing.
             17231          Section 369. Section 31A-22-625 is amended to read:
             17232           31A-22-625. Catastrophic coverage of mental health conditions.
             17233          (1) As used in this section:
             17234          (a) (i) "Catastrophic mental health coverage" means coverage in a health insurance
             17235      policy or health maintenance organization contract that does not impose any lifetime limit,
             17236      annual payment limit, episodic limit, inpatient or outpatient service limit, or maximum
             17237      out-of-pocket limit that places a greater financial burden on an insured for the evaluation and
             17238      treatment of a mental health condition than for the evaluation and treatment of a physical health
             17239      condition.
             17240          (ii) "Catastrophic mental health coverage" may include a restriction on cost sharing
             17241      factors, such as deductibles, copayments, or coinsurance, prior to reaching any maximum
             17242      out-of-pocket limit.
             17243          (iii) "Catastrophic mental health coverage" may include one maximum out-of-pocket
             17244      limit for physical health conditions and another maximum out-of-pocket limit for mental health
             17245      conditions, provided that, if separate out-of-pocket limits are established, the out-of-pocket
             17246      limit for mental health conditions may not exceed the out-of-pocket limit for physical health
             17247      conditions.
             17248          (b) (i) "50/50 mental health coverage" means coverage in a health insurance policy or
             17249      health maintenance organization contract that pays for at least 50% of covered services for the

             17250      diagnosis and treatment of mental health conditions.
             17251          (ii) "50/50 mental health coverage" may include a restriction on episodic limits,
             17252      inpatient or outpatient service limits, or maximum out-of-pocket limits.
             17253          (c) "Large employer" is as defined in Section 31A-1-301 .
             17254          (d) (i) "Mental health condition" means any condition or disorder involving mental
             17255      illness that falls under any of the diagnostic categories listed in the Diagnostic and Statistical
             17256      Manual, as periodically revised.
             17257          (ii) "Mental health condition" does not include the following when diagnosed as the
             17258      primary or substantial reason or need for treatment:
             17259          (A) marital or family problem;
             17260          (B) social, occupational, religious, or other social maladjustment;
             17261          (C) conduct disorder;
             17262          (D) chronic adjustment disorder;
             17263          (E) psychosexual disorder;
             17264          (F) chronic organic brain syndrome;
             17265          (G) personality disorder;
             17266          (H) specific developmental disorder or learning disability; or
             17267          (I) mental retardation.
             17268          (e) "Small employer" is as defined in Section 31A-1-301 .
             17269          (2) (a) At the time of purchase and renewal, an insurer shall offer to each small
             17270      employer that it insures or seeks to insure a choice between catastrophic mental health coverage
             17271      and 50/50 mental health coverage.
             17272          (b) In addition to Subsection (2)(a), an insurer may offer to provide:
             17273          (i) catastrophic mental health coverage, 50/50 mental health coverage, or both at levels
             17274      that exceed the minimum requirements of this section; or
             17275          (ii) coverage that excludes benefits for mental health conditions.
             17276          (c) A small employer may, at its option, choose either catastrophic mental health
             17277      coverage, 50/50 mental health coverage, or coverage offered under Subsection (2)(b),

             17278      regardless of the employer's previous coverage for mental health conditions.
             17279          (d) An insurer is exempt from the 30% index rating restriction in Subsection
             17280      31A-30-106 (1)(b) and, for the first year only that catastrophic mental health coverage is chosen,
             17281      the 15% annual adjustment restriction in Subsection 31A-30-106 (1)(c)(ii), for any small
             17282      employer with 20 or less enrolled employees who chooses coverage that meets or exceeds
             17283      catastrophic mental health coverage.
             17284          (3) (a) At the time of purchase and renewal, an insurer shall offer catastrophic mental
             17285      health coverage to each large employer that it insures or seeks to insure.
             17286          (b) In addition to Subsection (3)(a), an insurer may offer to provide catastrophic mental
             17287      health coverage at levels that exceed the minimum requirements of this section.
             17288          (c) A large employer may, at its option, choose either catastrophic mental health
             17289      coverage, coverage that excludes benefits for mental health conditions, or coverage offered
             17290      under Subsection (3)(b).
             17291          (4) (a) An insurer may provide catastrophic mental health coverage through a managed
             17292      care organization or system in a manner consistent with the provisions in Chapter 8, Health
             17293      Maintenance Organizations and Limited Health Plans, regardless of whether the policy or
             17294      contract uses a managed care organization or system for the treatment of physical health
             17295      conditions.
             17296          (b) (i) Notwithstanding any other provision of this title, an insurer may:
             17297          (A) establish a closed panel of providers for catastrophic mental health coverage; and
             17298          (B) refuse to provide any benefit to be paid for services rendered by a nonpanel
             17299      provider unless:
             17300          (I) the insured is referred to a nonpanel provider with the prior authorization of the
             17301      insurer; and
             17302          (II) the nonpanel provider agrees to follow the insurer's protocols and treatment
             17303      guidelines.
             17304          (ii) If an insured receives services from a nonpanel provider in the manner permitted by
             17305      Subsection (4)(b)(i)(B), the insurer shall reimburse the insured for not less than 75% of the

             17306      average amount paid by the insurer for comparable services of panel providers under a
             17307      noncapitated arrangement who are members of the same class of health care providers.
             17308          (iii) Nothing in this Subsection (4)(b) may be construed as requiring an insurer to
             17309      authorize a referral to a nonpanel provider.
             17310          (c) To be eligible for catastrophic mental health coverage, a diagnosis or treatment of a
             17311      mental health condition must be rendered:
             17312          (i) by a mental health therapist as defined in Section 58-60-102 ; or
             17313          (ii) in a health care facility licensed or otherwise authorized to provide mental health
             17314      services pursuant to Title 26, Chapter 21, Health Care Facility Licensing and Inspection Act, or
             17315      Title 62A, Chapter 2, Licensure of Programs and Facilities, that provides a program for the
             17316      treatment of a mental health condition pursuant to a written plan.
             17317          (5) The commissioner may disapprove any policy or contract that provides mental
             17318      health coverage in a manner that is inconsistent with the provisions of this section.
             17319          (6) The commissioner shall:
             17320          (a) adopt rules as necessary to ensure compliance with this section; and
             17321          (b) provide general figures on the percentage of contracts and policies that include no
             17322      mental health coverage, 50/50 mental health coverage, catastrophic mental health coverage, and
             17323      coverage that exceeds the minimum requirements of this section.
             17324          (7) The Health and Human Services Interim Committee shall review:
             17325          (a) the impact of this section on insurers, employers, providers, and consumers of
             17326      mental health services before January 1, 2004; and
             17327          (b) make a recommendation as to whether the provisions of this section should be
             17328      modified and whether the cost-sharing requirements for mental health conditions should be the
             17329      same as for physical health conditions.
             17330          (8) (a) An insurer shall offer catastrophic mental health coverage as part of a health
             17331      maintenance organization contract that is governed by Chapter 8, Health Maintenance
             17332      Organizations and Limited Health Plans, that is in effect on or after January 1, 2001.
             17333          (b) An insurer shall offer catastrophic mental health coverage as a part of a health

             17334      insurance policy that is not governed by Chapter 8, Health Maintenance Organizations and
             17335      Limited Health Plans, that is in effect on or after July 1, 2001.
             17336          (c) This section does not apply to the purchase or renewal of an individual insurance
             17337      policy or contract.
             17338          (d) Notwithstanding Subsection (8)(c), nothing in this section may be construed as
             17339      discouraging or otherwise preventing insurers from continuing to provide mental health
             17340      coverage in connection with an individual policy or contract.
             17341          (9) This section shall be repealed in accordance with Section [ 63-55-231 ] 63I-1-231 .
             17342          Section 370. Section 31A-22-1308 is amended to read:
             17343           31A-22-1308. Use of loss history by insurers.
             17344          (1) For purposes of this section:
             17345          (a) "Adverse eligibility or rate decision" means:
             17346          (i) declining insurance coverage;
             17347          (ii) terminating insurance coverage;
             17348          (iii) not renewing insurance coverage; or
             17349          (iv) the charging of a higher rate for insurance coverage.
             17350          (b) (i) "Loss reporting agency" means any person who regularly engages, in whole or in
             17351      part, in the business of assembling or collecting information for the primary purpose of
             17352      providing the information to insurers or insurance producers for insurance transactions including
             17353      assembling or collecting loss or claims information.
             17354          (ii) Notwithstanding Subsection (1)(b)(i), the following persons are not loss reporting
             17355      agents:
             17356          (A) a governmental entity;
             17357          (B) an insurer;
             17358          (C) an insurance producer;
             17359          (D) an insurance consultant;
             17360          (E) a medical care institution or professional; or
             17361          (F) a peer review committee.

             17362          (iii) Notwithstanding Subsection (1)(b)(i), the following are not considered a report
             17363      from a loss reporting agency:
             17364          (A) a report specifically provided for fraud prevention; and
             17365          (B) that portion of a report that includes information related to consumer credit
             17366      behavior.
             17367          (iv) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             17368      Administrative Rulemaking Act, the department may define by rule what constitutes:
             17369          (A) a report specifically provided for fraud prevention; and
             17370          (B) information related to consumer credit behavior.
             17371          (c) (i) "Score" means a numerical value, categorization, or classification that is:
             17372          (A) derived from a statistical tool, modeling system, or method; and
             17373          (B) developed to predict the likelihood of future insurance claims.
             17374          (ii) A numerical value, categorization, or classification described in Subsection (1)(c)(i)
             17375      is a score if it is developed to predict the likelihood of future insurance claims regardless of
             17376      whether it is developed to predict other factors in addition to predicting future insurance claims.
             17377          (2) (a) An insurer may not make an adverse eligibility or rate decision related to
             17378      personal lines insurance in whole or in part on the basis of:
             17379          (i) a report by a loss reporting agency of a loss if the loss did not result in the insured
             17380      requesting the payment of a claim;
             17381          (ii) a telephone call or other inquiry by an insured of a loss if the loss did not result in
             17382      the insured requesting payment of a claim;
             17383          (iii) a loss that occurred when real property covered by the personal lines insurance was
             17384      owned by a person other than the:
             17385          (A) insured; or
             17386          (B) person seeking insurance; or
             17387          (iv) a score if the score is determined in whole or in part on the basis of information
             17388      described in Subsection (2)(a)(i), (ii), or (iii).
             17389          (b) Notwithstanding Subsection (2)(a), an insurer may:

             17390          (i) use the information described in Subsection (2)(a)(iii) to require a review of the
             17391      condition of the premises; and
             17392          (ii) make an adverse eligibility or rate decision on the basis of the condition of the
             17393      premises.
             17394          (3) (a) If an insurer uses a score that is derived from information obtained from a loss
             17395      reporting agency or an insured, the insurer shall file with the department a certification that the
             17396      method used to derive the score complies with the provisions of Subsection (2)(a)(iv).
             17397          (b) the insurer shall file a certification required under Subsection (3)(a) within 30 days
             17398      of the day on which the score described in Subsection (3)(a) is first used by the insurer.
             17399          (c) The department shall classify a certification filed under this Subsection (3) as a
             17400      protected record under Subsection [ 63-2-304 ] 63G-2-305 (2) except that the insurer is not
             17401      required to file the information specified in Section [ 63-2-308 ] 63G-2-309 .
             17402          (d) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             17403      Administrative Rulemaking Act, the commissioner shall make rules providing for the form and
             17404      procedure of filing the certification required by Subsection (3)(a).
             17405          Section 371. Section 31A-23a-104 is amended to read:
             17406           31A-23a-104. Application for individual license -- Application for agency license.
             17407          (1) This section applies to an initial or renewal license as a:
             17408          (a) producer;
             17409          (b) limited line producer;
             17410          (c) customer service representative;
             17411          (d) consultant;
             17412          (e) managing general agent; or
             17413          (f) reinsurance intermediary.
             17414          (2) (a) Subject to Subsection (2)(b), an initial or renewal individual license shall be:
             17415          (i) made to the commissioner on forms and in a manner the commissioner prescribes;
             17416      and
             17417          (ii) accompanied by a license fee that is not refunded if the application:

             17418          (A) is denied; or
             17419          (B) if incomplete, is never completed by the applicant.
             17420          (b) An application described in this Subsection (2) shall provide:
             17421          (i) information about the applicant's identity;
             17422          (ii) the applicant's Social Security number;
             17423          (iii) the applicant's personal history, experience, education, and business record;
             17424          (iv) whether the applicant is 18 years of age or older;
             17425          (v) whether the applicant has committed an act that is a ground for denial, suspension,
             17426      or revocation as set forth in Section 31A-23a-105 or 31A-23a-111 ; and
             17427          (vi) any other information the commissioner reasonably requires.
             17428          (3) The commissioner may require any documents reasonably necessary to verify the
             17429      information contained in an application filed under this section.
             17430          (4) An applicant's Social Security number contained in an application filed under this
             17431      section is a private record under Section [ 63-2-302 ] 63G-2-302 .
             17432          (5) (a) Subject to Subsection (5)(b), an application for an initial or renewal agency
             17433      license shall be:
             17434          (i) made to the commissioner on forms and in a manner the commissioner prescribes;
             17435      and
             17436          (ii) accompanied by a license fee that is not refunded if the application:
             17437          (A) is denied; or
             17438          (B) if incomplete, is never completed by the applicant.
             17439          (b) An application described in Subsection (5)(a) shall provide:
             17440          (i) information about the applicant's identity;
             17441          (ii) the applicant's federal employer identification number;
             17442          (iii) the designated responsible licensed producer;
             17443          (iv) the identity of all owners, partners, officers, and directors;
             17444          (v) whether the applicant has committed an act that is a ground for denial, suspension,
             17445      or revocation as set forth in Section 31A-23a-105 or 31A-23a-111 ; and

             17446          (vi) any other information the commissioner reasonably requires.
             17447          Section 372. Section 31A-23a-111 is amended to read:
             17448           31A-23a-111. Revocation, suspension, surrender, lapsing, limiting, or otherwise
             17449      terminating a license -- Rulemaking for renewal or reinstatement.
             17450          (1) A license type issued under this chapter remains in force until:
             17451          (a) revoked or suspended under Subsection (5);
             17452          (b) surrendered to the commissioner and accepted by the commissioner in lieu of
             17453      administrative action;
             17454          (c) the licensee dies or is adjudicated incompetent as defined under:
             17455          (i) Title 75, Chapter 5, Part 3, Guardians of Incapacitated Persons; or
             17456          (ii) Title 75, Chapter 5, Part 4, Protection of Property of Persons Under Disability and
             17457      Minors;
             17458          (d) lapsed under Section 31A-23a-113 ; or
             17459          (e) voluntarily surrendered.
             17460          (2) The following may be reinstated within one year after the day on which the license is
             17461      inactivated:
             17462          (a) a lapsed license; or
             17463          (b) a voluntarily surrendered license.
             17464          (3) Unless otherwise stated in the written agreement for the voluntary surrender of a
             17465      license, submission and acceptance of a voluntary surrender of a license does not prevent the
             17466      department from pursuing additional disciplinary or other action authorized under:
             17467          (a) this title; or
             17468          (b) rules made under this title in accordance with [Title 63, Chapter 46a] Title 63G,
             17469      Chapter 3, Utah Administrative Rulemaking Act.
             17470          (4) A line of authority issued under this chapter remains in force until:
             17471          (a) the qualifications pertaining to a line of authority are no longer met by the licensee;
             17472      or
             17473          (b) the supporting license type:

             17474          (i) is revoked or suspended under Subsection (5); or
             17475          (ii) is surrendered to the commissioner and accepted by the commissioner in lieu of
             17476      administrative action.
             17477          (5) (a) If the commissioner makes a finding under Subsection (5)(b), after an
             17478      adjudicative proceeding under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             17479      Procedures Act, the commissioner may:
             17480          (i) revoke:
             17481          (A) a license; or
             17482          (B) a line of authority;
             17483          (ii) suspend for a specified period of 12 months or less:
             17484          (A) a license; or
             17485          (B) a line of authority; or
             17486          (iii) limit in whole or in part:
             17487          (A) a license; or
             17488          (B) a line of authority.
             17489          (b) The commissioner may take an action described in Subsection (5)(a) if the
             17490      commissioner finds that the licensee:
             17491          (i) is unqualified for a license or line of authority under Sections 31A-23a-104 and
             17492      31A-23a-105 ;
             17493          (ii) has violated:
             17494          (A) an insurance statute;
             17495          (B) a rule that is valid under Subsection 31A-2-201 (3); or
             17496          (C) an order that is valid under Subsection 31A-2-201 (4);
             17497          (iii) is insolvent or the subject of receivership, conservatorship, rehabilitation, or other
             17498      delinquency proceedings in any state;
             17499          (iv) fails to pay any final judgment rendered against the person in this state within 60
             17500      days after the day on which the judgment became final;
             17501          (v) fails to meet the same good faith obligations in claims settlement that is required of

             17502      admitted insurers;
             17503          (vi) is affiliated with and under the same general management or interlocking
             17504      directorate or ownership as another insurance producer that transacts business in this state
             17505      without a license;
             17506          (vii) refuses:
             17507          (A) to be examined; or
             17508          (B) to produce its accounts, records, and files for examination;
             17509          (viii) has an officer who refuses to:
             17510          (A) give information with respect to the insurance producer's affairs; or
             17511          (B) perform any other legal obligation as to an examination;
             17512          (ix) provides information in the license application that is:
             17513          (A) incorrect;
             17514          (B) misleading;
             17515          (C) incomplete; or
             17516          (D) materially untrue;
             17517          (x) has violated any insurance law, valid rule, or valid order of another state's insurance
             17518      department;
             17519          (xi) has obtained or attempted to obtain a license through misrepresentation or fraud;
             17520          (xii) has improperly withheld, misappropriated, or converted any monies or properties
             17521      received in the course of doing insurance business;
             17522          (xiii) has intentionally misrepresented the terms of an actual or proposed:
             17523          (A) insurance contract; or
             17524          (B) application for insurance;
             17525          (xiv) has been convicted of a felony;
             17526          (xv) has admitted or been found to have committed any insurance unfair trade practice
             17527      or fraud;
             17528          (xvi) in the conduct of business in this state or elsewhere has:
             17529          (A) used fraudulent, coercive, or dishonest practices; or

             17530          (B) demonstrated incompetence, untrustworthiness, or financial irresponsibility;
             17531          (xvii) has had an insurance license, or its equivalent, denied, suspended, or revoked in
             17532      any other state, province, district, or territory;
             17533          (xviii) has forged another's name to:
             17534          (A) an application for insurance; or
             17535          (B) a document related to an insurance transaction;
             17536          (xix) has improperly used notes or any other reference material to complete an
             17537      examination for an insurance license;
             17538          (xx) has knowingly accepted insurance business from an individual who is not licensed;
             17539          (xxi) has failed to comply with an administrative or court order imposing a child
             17540      support obligation;
             17541          (xxii) has failed to:
             17542          (A) pay state income tax; or
             17543          (B) comply with any administrative or court order directing payment of state income
             17544      tax;
             17545          (xxiii) has violated or permitted others to violate the federal Violent Crime Control and
             17546      Law Enforcement Act of 1994, 18 U.S.C. Secs. 1033 and 1034; or
             17547          (xxiv) has engaged in methods and practices in the conduct of business that endanger
             17548      the legitimate interests of customers and the public.
             17549          (c) For purposes of this section, if a license is held by an agency, both the agency itself
             17550      and any natural person named on the license are considered to be the holders of the license.
             17551          (d) If a natural person named on the agency license commits any act or fails to perform
             17552      any duty that is a ground for suspending, revoking, or limiting the natural person's license, the
             17553      commissioner may suspend, revoke, or limit the license of:
             17554          (i) the natural person;
             17555          (ii) the agency, if the agency:
             17556          (A) is reckless or negligent in its supervision of the natural person; or
             17557          (B) knowingly participated in the act or failure to act that is the ground for suspending,

             17558      revoking, or limiting the license; or
             17559          (iii) (A) the natural person; and
             17560          (B) the agency if the agency meets the requirements of Subsection (5)(d)(ii).
             17561          (6) A licensee under this chapter is subject to the penalties for acting as a licensee
             17562      without a license if:
             17563          (a) the licensee's license is:
             17564          (i) revoked;
             17565          (ii) suspended;
             17566          (iii) limited;
             17567          (iv) surrendered in lieu of administrative action;
             17568          (v) lapsed; or
             17569          (vi) voluntarily surrendered; and
             17570          (b) the licensee:
             17571          (i) continues to act as a licensee; or
             17572          (ii) violates the terms of the license limitation.
             17573          (7) A licensee under this chapter shall immediately report to the commissioner:
             17574          (a) a revocation, suspension, or limitation of the person's license in any other state,
             17575      District of Columbia, or territory of the United States;
             17576          (b) the imposition of a disciplinary sanction imposed on that person by any other state,
             17577      District of Columbia, or territory of the United States; or
             17578          (c) a judgment or injunction entered against that person on the basis of conduct
             17579      involving:
             17580          (i) fraud;
             17581          (ii) deceit;
             17582          (iii) misrepresentation; or
             17583          (iv) a violation of an insurance law or rule.
             17584          (8) (a) An order revoking a license under Subsection (5) or an agreement to surrender a
             17585      license in lieu of administrative action may specify a time, not to exceed five years, within which

             17586      the former licensee may not apply for a new license.
             17587          (b) If no time is specified in the order or agreement described in Subsection (8)(a), the
             17588      former licensee may not apply for a new license for five years from the day on which the order
             17589      or agreement is made without the express approval by the commissioner.
             17590          (9) The commissioner shall promptly withhold, suspend, restrict, or reinstate the use of
             17591      a license issued under this part if so ordered by a court.
             17592          (10) The commissioner shall by rule prescribe the license renewal and reinstatement
             17593      procedures in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             17594      Administrative Rulemaking Act.
             17595          Section 373. Section 31A-23a-112 is amended to read:
             17596           31A-23a-112. Probation -- Grounds for revocation.
             17597          (1) The commissioner may place a licensee on probation for a period not to exceed 24
             17598      months as follows:
             17599          (a) after an adjudicative proceeding under [Title 63, Chapter 46b] Title 63G, Chapter 4,
             17600      Administrative Procedures Act, for any circumstances that would justify a suspension under
             17601      Section 31A-23a-111 ; or
             17602          (b) at the issuance of a new license:
             17603          (i) with an admitted violation under 18 U.S.C. Sections 1033 and 1034; or
             17604          (ii) with a response to background information questions on a new license application
             17605      indicating that:
             17606          (A) the person has been convicted of a crime, that is listed by rule made in accordance
             17607      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, as a
             17608      crime that is grounds for probation;
             17609          (B) the person is currently charged with a crime, that is listed by rule made in
             17610      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             17611      Act, as a crime that is grounds for probation regardless of whether adjudication is withheld;
             17612          (C) the person has been involved in an administrative proceeding regarding any
             17613      professional or occupational license; or

             17614          (D) any business in which the person is or was an owner, partner, officer, or director
             17615      has been involved in an administrative proceeding regarding any professional or occupational
             17616      license.
             17617          (2) The commissioner may place a licensee on probation for a specified period no
             17618      longer than 24 months if the licensee has admitted to a violation under 18 U.S.C. Sections 1033
             17619      and 1034.
             17620          (3) The probation order shall state the conditions for retention of the license, which
             17621      shall be reasonable.
             17622          (4) Any violation of the probation is grounds for revocation pursuant to any proceeding
             17623      authorized under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             17624          Section 374. Section 31A-23a-115 is amended to read:
             17625           31A-23a-115. Appointment of individual and agency insurance producer, limited
             17626      line producer, or managing general agent -- Reports and lists.
             17627          (1) (a) An insurer shall appoint a natural person or agency that has an insurance
             17628      producer, limited line producer, or managing general agent license to act as an insurance
             17629      producer, limited line producer, or managing general agent on the insurer's behalf prior to any
             17630      producer, limited line producer, or managing general agent doing business for the insurer in this
             17631      state.
             17632          (b) An insurer shall report to the commissioner, at intervals and in the form the
             17633      commissioner establishes by rule:
             17634          (i) all new appointments; and
             17635          (ii) all terminations of appointments.
             17636          (2) (a) (i) An insurer shall report to the commissioner the cause of termination of an
             17637      appointment.
             17638          (ii) The information provided to the commissioner under this Subsection (2) is a private
             17639      record under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             17640      Management Act.
             17641          (b) An insurer is immune from civil action, civil penalty, or damages if the insurer

             17642      complies in good faith with this Subsection (2) in reporting to the commissioner the cause of
             17643      termination of an appointment.
             17644          (c) Notwithstanding any other provision in this section, an insurer is not immune from
             17645      any action or resulting penalty imposed on the reporting insurer as a result of proceedings
             17646      brought by or on behalf of the department if the action is based on evidence other than the
             17647      report submitted in compliance with this Subsection (2).
             17648          (3) If an insurer appoints an agency, the insurer need not appoint, report, or pay
             17649      appointment reporting fees for natural persons designated on the agency's license under Section
             17650      31A-23a-302 .
             17651          (4) If an insurer lists a licensee in a report submitted under Subsection (2), there is a
             17652      rebuttable presumption that in placing a risk with the insurer the appointed licensee or any of
             17653      the licensee's licensed employees acted on behalf of the insurer.
             17654          Section 375. Section 31A-23a-202 is amended to read:
             17655           31A-23a-202. Continuing education requirements.
             17656          (1) Pursuant to this section, the commissioner shall by rule prescribe the continuing
             17657      education requirements for a producer and a consultant.
             17658          (2) (a) The commissioner may not state a continuing education requirement in terms of
             17659      formal education.
             17660          (b) The commissioner may state a continuing education requirement in terms of
             17661      classroom hours, or their equivalent, of insurance-related instruction received.
             17662          (c) Insurance-related formal education may be a substitute, in whole or in part, for
             17663      classroom hours, or their equivalent, required under Subsection (2)(b).
             17664          (3) (a) The commissioner shall impose continuing education requirements in accordance
             17665      with a two-year licensing period in which the licensee meets the requirements of this Subsection
             17666      (3).
             17667          (b) (i) Except as provided in this section, the continuing education requirements shall
             17668      require:
             17669          (A) that a licensee complete 24 credit hours of continuing education for every two-year

             17670      licensing period;
             17671          (B) that three of the 24 credit hours described in Subsection (3)(b)(i)(A) be ethics
             17672      courses; and
             17673          (C) that the licensee complete at least half of the required hours through classroom
             17674      hours of insurance-related instruction.
             17675          (ii) The hours not completed through classroom hours in accordance with Subsection
             17676      (3)(b)(i)(C) may be obtained through:
             17677          (A) home study;
             17678          (B) video recording;
             17679          (C) experience credit; or
             17680          (D) other methods provided by rule.
             17681          (iii) (A) Notwithstanding Subsections (3)(b)(i)(A) and (B), a title insurance producer is
             17682      required to complete 12 credit hours of continuing education for every two-year licensing
             17683      period, with three of the credit hours being ethics courses unless the title insurance producer has
             17684      been licensed in this state as a title insurance producer for 20 or more consecutive years.
             17685          (B) If a title insurance producer has been licensed in this state as a title insurance
             17686      producer for 20 or more consecutive years, the title insurance producer is required to complete
             17687      six credit hours of continuing education for every two-year licensing period, with three of the
             17688      credit hours being ethics courses.
             17689          (C) Notwithstanding Subsection (3)(b)(iii)(A) or (B), a title insurance producer is
             17690      considered to have met the continuing education requirements imposed under Subsection
             17691      (3)(b)(iii)(A) or (B) if the title insurance producer:
             17692          (I) is an active member in good standing with the Utah State Bar;
             17693          (II) is in compliance with the continuing education requirements of the Utah State Bar;
             17694      and
             17695          (III) if requested by the department, provides the department evidence that the title
             17696      insurance producer complied with the continuing education requirements of the Utah State Bar.
             17697          (c) A licensee may obtain continuing education hours at any time during the two-year

             17698      licensing period.
             17699          (d) (i) Beginning May 3, 1999, a licensee is exempt from continuing education
             17700      requirements under this section if:
             17701          (A) the licensee was first licensed before April 1, 1970;
             17702          (B) the licensee requests an exemption from the department; and
             17703          (C) the department approves the exemption.
             17704          (ii) If the department approves the exemption under Subsection (3)(d)(i), the licensee is
             17705      not required to apply again for the exemption.
             17706          (e) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             17707      Administrative Rulemaking Act, the commissioner shall, by rule:
             17708          (i) publish a list of insurance professional designations whose continuing education
             17709      requirements can be used to meet the requirements for continuing education under Subsection
             17710      (3)(b); and
             17711          (ii) authorize continuing education providers and professional producer or consultant
             17712      associations to:
             17713          (A) offer qualified programs for all license types and lines of authority on a
             17714      geographically accessible basis; and
             17715          (B) collect reasonable fees for funding and administration of the continuing education
             17716      program, subject to the review and approval of the commissioner.
             17717          (iii) The fees permitted under Subsection (3)(e)(ii)(B) that are charged for attendance at
             17718      a professional producer or consultant association program may be less for an association
             17719      member, based on the member's affiliation expense, but shall preserve the right of a nonmember
             17720      to attend without affiliation.
             17721          (4) The commissioner shall approve continuing education providers and continuing
             17722      education courses that satisfy the requirements of this section.
             17723          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             17724      Administrative Rulemaking Act, the commissioner shall by rule set the processes and
             17725      procedures for continuing education provider registration and course approval.

             17726          (6) The requirements of this section apply only to producers or consultants who are
             17727      natural persons.
             17728          (7) A nonresident producer or consultant is considered to have satisfied this state's
             17729      continuing education requirements if the nonresident producer or consultant satisfies the
             17730      nonresident producer's or consultant's home state's continuing education requirements for a
             17731      licensed insurance producer or consultant.
             17732          (8) A producer or consultant subject to this section shall keep documentation of
             17733      completing the continuing education requirements of this section for two years after the end of
             17734      the two-year licensing period to which the continuing education applies.
             17735          Section 376. Section 31A-23a-302 is amended to read:
             17736           31A-23a-302. Agency designations.
             17737          (1) An agency shall designate a natural person that has a producer, limited line
             17738      producer, customer service representative, consultant, managing general agent, or reinsurance
             17739      intermediary license to act on its behalf prior to the licensee doing business for the agency.
             17740          (2) An agency shall report to the commissioner, at intervals and in the form the
             17741      commissioner establishes by rule:
             17742          (a) all new designations; and
             17743          (b) all terminated designations.
             17744          (3) (a) An agency licensed under this chapter shall report to the commissioner the cause
             17745      of termination of a designation.
             17746          (b) The information provided the commissioner under Subsection (3)(a) is a private
             17747      record under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             17748      Management Act.
             17749          (c) An agency is immune from civil action, civil penalty, or damages if the agency
             17750      complies in good faith with this Subsection (3) in reporting to the commissioner the cause of
             17751      termination of a designation.
             17752          (d) Notwithstanding any other provision in this section, an agency is not immune from
             17753      any action or resulting penalty imposed on the reporting agency as a result of proceedings

             17754      brought by or on behalf of the department if the action is based on evidence other than the
             17755      report submitted in compliance with this Subsection (3).
             17756          (4) An agency licensed under this chapter may act in the capacities for which it is
             17757      licensed only through natural persons who are licensed under this chapter to act in the same
             17758      capacities.
             17759          (5) An agency licensed under this chapter shall report to the commissioner by rule the
             17760      name of at least one natural person who has authority to act on behalf of the agency in all
             17761      matters pertaining to compliance with this title and orders of the commissioner.
             17762          (6) If an agency designates a licensee in reports submitted under Subsection (2), there is
             17763      a rebuttable presumption that the designated licensee acted on behalf of the agency.
             17764          Section 377. Section 31A-23a-402 is amended to read:
             17765           31A-23a-402. Unfair marketing practices -- Communication -- Inducement --
             17766      Unfair discrimination -- Coercion or intimidation -- Restriction on choice.
             17767          (1) (a) (i) Any of the following may not make or cause to be made any communication
             17768      that contains false or misleading information, relating to an insurance product or contract, any
             17769      insurer, or any licensee under this title, including information that is false or misleading because
             17770      it is incomplete:
             17771          (A) a person who is or should be licensed under this title;
             17772          (B) an employee or producer of a person described in Subsection (1)(a)(i)(A);
             17773          (C) a person whose primary interest is as a competitor of a person licensed under this
             17774      title; and
             17775          (D) a person on behalf of any of the persons listed in this Subsection (1)(a)(i).
             17776          (ii) As used in this Subsection (1), "false or misleading information" includes:
             17777          (A) assuring the nonobligatory payment of future dividends or refunds of unused
             17778      premiums in any specific or approximate amounts, but reporting fully and accurately past
             17779      experience is not false or misleading information; and
             17780          (B) with intent to deceive a person examining it:
             17781          (I) filing a report;

             17782          (II) making a false entry in a record; or
             17783          (III) wilfully refraining from making a proper entry in a record.
             17784          (iii) A licensee under this title may not:
             17785          (A) use any business name, slogan, emblem, or related device that is misleading or likely
             17786      to cause the insurer or other licensee to be mistaken for another insurer or other licensee already
             17787      in business; or
             17788          (B) use any advertisement or other insurance promotional material that would cause a
             17789      reasonable person to mistakenly believe that a state or federal government agency:
             17790          (I) is responsible for the insurance sales activities of the person;
             17791          (II) stands behind the credit of the person;
             17792          (III) guarantees any returns on insurance products of or sold by the person; or
             17793          (IV) is a source of payment of any insurance obligation of or sold by the person.
             17794          (iv) A person who is not an insurer may not assume or use any name that deceptively
             17795      implies or suggests that person is an insurer.
             17796          (v) A person other than persons licensed as health maintenance organizations under
             17797      Chapter 8 may not use the term "Health Maintenance Organization" or "HMO" in referring to
             17798      itself.
             17799          (b) A licensee's violation creates a rebuttable presumption that the violation was also
             17800      committed by the insurer if:
             17801          (i) the licensee under this title distributes cards or documents, exhibits a sign, or
             17802      publishes an advertisement that violates Subsection (1)(a), with reference to a particular insurer:
             17803          (A) that the licensee represents; or
             17804          (B) for whom the licensee processes claims; and
             17805          (ii) the cards, documents, signs, or advertisements are supplied or approved by that
             17806      insurer.
             17807          (2) (a) (i) A licensee under this title, or an officer or employee of a licensee may not
             17808      induce any person to enter into or continue an insurance contract or to terminate an existing
             17809      insurance contract by offering benefits not specified in the policy to be issued or continued,

             17810      including premium or commission rebates.
             17811          (ii) An insurer may not make or knowingly allow any agreement of insurance that is not
             17812      clearly expressed in the policy to be issued or renewed.
             17813          (iii) This Subsection (2)(a) does not preclude:
             17814          (A) an insurer from reducing premiums because of expense savings;
             17815          (B) an insurer from providing to a policyholder or insured one or more incentives to
             17816      participate in programs or activities designed to reduce claims or claim expenses;
             17817          (C) the usual kinds of social courtesies not related to particular transactions; or
             17818          (D) an insurer from receiving premiums under an installment payment plan.
             17819          (iv) The commissioner may adopt rules in accordance with [Title 63, Chapter 46a] Title
             17820      63G, Chapter 3, Utah Administrative Rulemaking Act, to define what constitutes an incentive
             17821      described in Subsection (2)(a)(iii)(B).
             17822          (b) A licensee under this title may not absorb the tax under Section 31A-3-301 .
             17823          (c) (i) A title insurer or producer or any officer or employee of either may not pay,
             17824      allow, give, or offer to pay, allow, or give, directly or indirectly, as an inducement to obtaining
             17825      any title insurance business:
             17826          (A) any rebate, reduction, or abatement of any rate or charge made incident to the
             17827      issuance of the title insurance;
             17828          (B) any special favor or advantage not generally available to others; or
             17829          (C) any money or other consideration, except if approved under Section 31A-2-405 ; or
             17830          (D) material inducement.
             17831          (ii) "Charge made incident to the issuance of the title insurance" includes escrow
             17832      charges, and any other services that are prescribed in rule by the Title and Escrow Commission
             17833      after consultation with the commissioner and subject to Section 31A-2-404 .
             17834          (iii) An insured or any other person connected, directly or indirectly, with the
             17835      transaction, including a mortgage lender, real estate broker, builder, attorney, or any officer,
             17836      employee, or agent of any of them, may not knowingly receive or accept, directly or indirectly,
             17837      any benefit referred to in Subsection (2)(c)(i).

             17838          (3) (a) An insurer may not unfairly discriminate among policyholders by charging
             17839      different premiums or by offering different terms of coverage, except on the basis of
             17840      classifications related to the nature and the degree of the risk covered or the expenses involved.
             17841          (b) Rates are not unfairly discriminatory if they are averaged broadly among persons
             17842      insured under a group, blanket, or franchise policy, and the terms of those policies are not
             17843      unfairly discriminatory merely because they are more favorable than in similar individual
             17844      policies.
             17845          (4) (a) This Subsection (4) applies to:
             17846          (i) a person who is or should be licensed under this title;
             17847          (ii) an employee of that licensee or person who should be licensed;
             17848          (iii) a person whose primary interest is as a competitor of a person licensed under this
             17849      title; and
             17850          (iv) one acting on behalf of any person described in Subsections (4)(a)(i) through (iii).
             17851          (b) A person described in Subsection (4)(a) may not commit or enter into any
             17852      agreement to participate in any act of boycott, coercion, or intimidation that:
             17853          (i) tends to produce:
             17854          (A) an unreasonable restraint of the business of insurance; or
             17855          (B) a monopoly in that business; or
             17856          (ii) results in an applicant purchasing or replacing an insurance contract.
             17857          (5) (a) (i) Subject to Subsection (5)(a)(ii), a person may not restrict in the choice of an
             17858      insurer or licensee under this chapter, another person who is required to pay for insurance as a
             17859      condition for the conclusion of a contract or other transaction or for the exercise of any right
             17860      under a contract.
             17861          (ii) A person requiring coverage may reserve the right to disapprove the insurer or the
             17862      coverage selected on reasonable grounds.
             17863          (b) The form of corporate organization of an insurer authorized to do business in this
             17864      state is not a reasonable ground for disapproval, and the commissioner may by rule specify
             17865      additional grounds that are not reasonable. This Subsection (5) does not bar an insurer from

             17866      declining an application for insurance.
             17867          (6) A person may not make any charge other than insurance premiums and premium
             17868      financing charges for the protection of property or of a security interest in property, as a
             17869      condition for obtaining, renewing, or continuing the financing of a purchase of the property or
             17870      the lending of money on the security of an interest in the property.
             17871          (7) (a) A licensee under this title may not refuse or fail to return promptly all indicia of
             17872      agency to the principal on demand.
             17873          (b) A licensee whose license is suspended, limited, or revoked under Section
             17874      31A-2-308 , 31A-23a-111 , or 31A-23a-112 may not refuse or fail to return the license to the
             17875      commissioner on demand.
             17876          (8) (a) A person may not engage in any other unfair method of competition or any other
             17877      unfair or deceptive act or practice in the business of insurance, as defined by the commissioner
             17878      by rule, after a finding that they:
             17879          (i) are misleading;
             17880          (ii) are deceptive;
             17881          (iii) are unfairly discriminatory;
             17882          (iv) provide an unfair inducement; or
             17883          (v) unreasonably restrain competition.
             17884          (b) Notwithstanding Subsection (8)(a), for purpose of the title insurance industry, the
             17885      Title and Escrow Commission shall make rules, subject to Section 31A-2-404 , that define any
             17886      other unfair method of competition or any other unfair or deceptive act or practice after a
             17887      finding that they:
             17888          (i) are misleading;
             17889          (ii) are deceptive;
             17890          (iii) are unfairly discriminatory;
             17891          (iv) provide an unfair inducement; or
             17892          (v) unreasonably restrain competition.
             17893          Section 378. Section 31A-23a-417 is amended to read:

             17894           31A-23a-417. Financial services insurance activities regulation.
             17895          (1) It is the intent of the Legislature that the regulation of insurance activities of any
             17896      person in this state be based on functional regulation principles established in the
             17897      Gramm-Leach-Bliley Act of 1999, Pub. L. No. 106-102.
             17898          (2) The insurance activities of any person in this state shall be functionally regulated by
             17899      the commissioner subject to Sections 104, 301-308, 501-507, and 509 of the
             17900      Gramm-Leach-Bliley Act of 1999, Pub. L. No. 106-102.
             17901          (3) Under [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             17902      Rulemaking Act, the commissioner may adopt rules consistent with Section 104(d) of the
             17903      Gramm-Leach-Bliley Act of 1999, Pub. L. No. 106-102, and the functional regulation of
             17904      insurance activities of any person otherwise subject to the jurisdiction of the commissioner in
             17905      this state described in Subsection (2).
             17906          (4) The commissioner shall consult and coordinate with the commissioner of the
             17907      Department of Financial Institutions and the director of the Division of Securities for the
             17908      purpose of assuring, to the extent possible, that the rules prescribed by the department are
             17909      consistent and comparable with federal regulations governing the insurance, banking, and
             17910      securities industries.
             17911          Section 379. Section 31A-23a-809 is amended to read:
             17912           31A-23a-809. Penalties and liabilities.
             17913          (1) A reinsurance intermediary, insurer, or reinsurer found by the commissioner, after a
             17914      hearing conducted in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4,
             17915      Administrative Procedures Act, to be in violation of any provisions of this title, shall:
             17916          (a) for each separate violation, pay a civil penalty in an amount not exceeding $5,000;
             17917          (b) be subject to revocation or suspension of its license; and
             17918          (c) if a violation was committed by the reinsurance intermediary, the reinsurance
             17919      intermediary shall make restitution to the insurer, reinsurer, rehabilitator, or liquidator of the
             17920      insurer or reinsurer for the net losses incurred by the insurer or reinsurer attributable to the
             17921      violation.

             17922          (2) Nothing contained in this section affects the right of the commissioner to impose
             17923      any other penalties provided in this title.
             17924          (3) Nothing contained in this part is intended to, or in any manner limits or restricts the
             17925      rights of policyholders, claimants, creditors, or other third parties; nor does it confer any rights
             17926      to such persons.
             17927          Section 380. Section 31A-25-202 is amended to read:
             17928           31A-25-202. Application for license.
             17929          (1) (a) An application for a license as a third party administrator shall be:
             17930          (i) made to the commissioner on forms and in a manner the commissioner prescribes;
             17931      and
             17932          (ii) accompanied by the applicable fee, which is not refundable if the application is
             17933      denied.
             17934          (b) The application for a license as a third party administrator shall:
             17935          (i) state the applicant's:
             17936          (A) Social Security number; or
             17937          (B) federal employer identification number;
             17938          (ii) provide information about:
             17939          (A) the applicant's identity;
             17940          (B) the applicant's personal history, experience, education, and business record;
             17941          (C) if the applicant is a natural person, whether the applicant is 18 years of age or older;
             17942      and
             17943          (D) whether the applicant has committed an act that is a ground for denial, suspension,
             17944      or revocation as set forth in Section 31A-25-208 ; and
             17945          (iii) any other information as the commissioner reasonably requires.
             17946          (2) The commissioner may require documents reasonably necessary to verify the
             17947      information contained in the application.
             17948          (3) An applicant's Social Security number contained in an application filed under this
             17949      section is a private record under Section [ 63-2-302 ] 63G-2-302 .

             17950          Section 381. Section 31A-25-208 is amended to read:
             17951           31A-25-208. Revocation, suspension, surrender, lapsing, limiting, or otherwise
             17952      terminating a license -- Rulemaking for renewal and reinstatement.
             17953          (1) A license type issued under this chapter remains in force until:
             17954          (a) revoked or suspended under Subsection (4);
             17955          (b) surrendered to the commissioner and accepted by the commissioner in lieu of
             17956      administrative action;
             17957          (c) the licensee dies or is adjudicated incompetent as defined under:
             17958          (i) Title 75, Chapter 5, Part 3, Guardians of Incapacitated Persons; or
             17959          (ii) Title 75, Chapter 5, Part 4, Protection of Property of Persons Under Disability and
             17960      Minors;
             17961          (d) lapsed under Section 31A-25-210 ; or
             17962          (e) voluntarily surrendered.
             17963          (2) The following may be reinstated within one year after the day on which the license is
             17964      inactivated:
             17965          (a) a lapsed license; or
             17966          (b) a voluntarily surrendered license.
             17967          (3) Unless otherwise stated in the written agreement for the voluntary surrender of a
             17968      license, submission and acceptance of a voluntary surrender of a license does not prevent the
             17969      department from pursuing additional disciplinary or other action authorized under:
             17970          (a) this title; or
             17971          (b) rules made under this title in accordance with [Title 63, Chapter 46a] Title 63G,
             17972      Chapter 3, Utah Administrative Rulemaking Act.
             17973          (4) (a) If the commissioner makes a finding under Subsection (4)(b), after an
             17974      adjudicative proceeding under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             17975      Procedures Act, the commissioner may:
             17976          (i) revoke a license;
             17977          (ii) suspend a license for a specified period of 12 months or less; or

             17978          (iii) limit a license in whole or in part.
             17979          (b) The commissioner may take an action described in Subsection (4)(a) if the
             17980      commissioner finds that the licensee:
             17981          (i) is unqualified for a license under Sections 31A-25-202 and 31A-25-203 ;
             17982          (ii) has violated:
             17983          (A) an insurance statute;
             17984          (B) a rule that is valid under Subsection 31A-2-201 (3); or
             17985          (C) an order that is valid under Subsection 31A-2-201 (4);
             17986          (iii) is insolvent or the subject of receivership, conservatorship, rehabilitation, or other
             17987      delinquency proceedings in any state;
             17988          (iv) fails to pay any final judgment rendered against the person in this state within 60
             17989      days after the day on which the judgment became final;
             17990          (v) fails to meet the same good faith obligations in claims settlement that is required of
             17991      admitted insurers;
             17992          (vi) is affiliated with and under the same general management or interlocking
             17993      directorate or ownership as another third party administrator that transacts business in this state
             17994      without a license;
             17995          (vii) refuses:
             17996          (A) to be examined; or
             17997          (B) to produce its accounts, records, and files for examination;
             17998          (viii) has an officer who refuses to:
             17999          (A) give information with respect to the third party administrator's affairs; or
             18000          (B) perform any other legal obligation as to an examination;
             18001          (ix) provides information in the license application that is:
             18002          (A) incorrect;
             18003          (B) misleading;
             18004          (C) incomplete; or
             18005          (D) materially untrue;

             18006          (x) has violated an insurance law, valid rule, or valid order of another state's insurance
             18007      department;
             18008          (xi) has obtained or attempted to obtain a license through misrepresentation or fraud;
             18009          (xii) has improperly withheld, misappropriated, or converted any monies or properties
             18010      received in the course of doing insurance business;
             18011          (xiii) has intentionally misrepresented the terms of an actual or proposed:
             18012          (A) insurance contract; or
             18013          (B) application for insurance;
             18014          (xiv) has been convicted of a felony;
             18015          (xv) has admitted or been found to have committed any insurance unfair trade practice
             18016      or fraud;
             18017          (xvi) in the conduct of business in this state or elsewhere has:
             18018          (A) used fraudulent, coercive, or dishonest practices; or
             18019          (B) demonstrated incompetence, untrustworthiness, or financial irresponsibility;
             18020          (xvii) has had an insurance license or its equivalent, denied, suspended, or revoked in
             18021      any other state, province, district, or territory;
             18022          (xviii) has forged another's name to:
             18023          (A) an application for insurance; or
             18024          (B) a document related to an insurance transaction;
             18025          (xix) has improperly used notes or any other reference material to complete an
             18026      examination for an insurance license;
             18027          (xx) has knowingly accepted insurance business from an individual who is not licensed;
             18028          (xxi) has failed to comply with an administrative or court order imposing a child
             18029      support obligation;
             18030          (xxii) has failed to:
             18031          (A) pay state income tax; or
             18032          (B) comply with any administrative or court order directing payment of state income
             18033      tax;

             18034          (xxiii) has violated or permitted others to violate the federal Violent Crime Control and
             18035      Law Enforcement Act of 1994, 18 U.S.C. Secs. 1033 and 1034; or
             18036          (xxiv) has engaged in methods and practices in the conduct of business that endanger
             18037      the legitimate interests of customers and the public.
             18038          (c) For purposes of this section, if a license is held by an agency, both the agency itself
             18039      and any natural person named on the license are considered to be the holders of the license.
             18040          (d) If a natural person named on the agency license commits any act or fails to perform
             18041      any duty that is a ground for suspending, revoking, or limiting the natural person's license, the
             18042      commissioner may suspend, revoke, or limit the license of:
             18043          (i) the natural person;
             18044          (ii) the agency if the agency:
             18045          (A) is reckless or negligent in its supervision of the natural person; or
             18046          (B) knowingly participated in the act or failure to act that is the ground for suspending,
             18047      revoking, or limiting the license; or
             18048          (iii) (A) the natural person; and
             18049          (B) the agency if the agency meets the requirements of Subsection (4)(d)(ii).
             18050          (5) A licensee under this chapter is subject to the penalties for acting as a licensee
             18051      without a license if:
             18052          (a) the licensee's license is:
             18053          (i) revoked;
             18054          (ii) suspended;
             18055          (iii) limited;
             18056          (iv) surrendered in lieu of administrative action;
             18057          (v) lapsed; or
             18058          (vi) voluntarily surrendered; and
             18059          (b) the licensee:
             18060          (i) continues to act as a licensee; or
             18061          (ii) violates the terms of the license limitation.

             18062          (6) A licensee under this chapter shall immediately report to the commissioner:
             18063          (a) a revocation, suspension, or limitation of the person's license in any other state, the
             18064      District of Columbia, or a territory of the United States;
             18065          (b) the imposition of a disciplinary sanction imposed on that person by any other state,
             18066      the District of Columbia, or a territory of the United States; or
             18067          (c) a judgment or injunction entered against the person on the basis of conduct
             18068      involving:
             18069          (i) fraud;
             18070          (ii) deceit;
             18071          (iii) misrepresentation; or
             18072          (iv) a violation of an insurance law or rule.
             18073          (7) (a) An order revoking a license under Subsection (4) or an agreement to surrender a
             18074      license in lieu of administrative action may specify a time, not to exceed five years, within which
             18075      the former licensee may not apply for a new license.
             18076          (b) If no time is specified in the order or agreement described in Subsection (7)(a), the
             18077      former licensee may not apply for a new license for five years from the day on which the order
             18078      or agreement is made without the express approval of the commissioner.
             18079          (8) The commissioner shall promptly withhold, suspend, restrict, or reinstate the use of
             18080      a license issued under this part if so ordered by the court.
             18081          (9) The commissioner shall by rule prescribe the license renewal and reinstatement
             18082      procedures in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             18083      Administrative Rulemaking Act.
             18084          Section 382. Section 31A-25-209 is amended to read:
             18085           31A-25-209. Probation -- Grounds for revocation.
             18086          (1) The commissioner may place a licensee on probation for a period not to exceed 24
             18087      months as follows:
             18088          (a) after an adjudicative proceeding under [Title 63, Chapter 46b] Title 63G, Chapter 4,
             18089      Administrative Procedures Act, for any circumstances that would justify a suspension under

             18090      Section 31A-25-208 ; or
             18091          (b) at the issuance of a new license:
             18092          (i) with an admitted violation under 18 U.S.C. Sections 1033 and 1034; or
             18093          (ii) with a response to a background information question on a new license application
             18094      indicating that:
             18095          (A) the person has been convicted of a crime that is listed by rule made in accordance
             18096      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, as a
             18097      crime that is grounds for probation;
             18098          (B) the person is currently charged with a crime that is listed by rule made in
             18099      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             18100      Act, as a crime that is grounds for probation regardless of whether adjudication is withheld;
             18101          (C) the person has been involved in an administrative proceeding regarding any
             18102      professional or occupational license; or
             18103          (D) any business in which the person is or was an owner, partner, officer, or director
             18104      has been involved in an administrative proceeding regarding any professional or occupational
             18105      license.
             18106          (2) The commissioner may place a licensee on probation for a specified period no
             18107      longer than 24 months if the licensee has admitted to a violation under 18 U.S.C. Sections 1033
             18108      and 1034.
             18109          (3) A probation order under this section shall state the conditions for retention of the
             18110      license, which shall be reasonable.
             18111          (4) A violation of the probation is grounds for revocation pursuant to any proceeding
             18112      authorized under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             18113          Section 383. Section 31A-26-202 is amended to read:
             18114           31A-26-202. Application for license.
             18115          (1) (a) The application for a license as an independent adjuster or public adjuster shall
             18116      be:
             18117          (i) made to the commissioner on forms and in a manner the commissioner prescribes;

             18118      and
             18119          (ii) accompanied by the applicable fee, which is not refunded if the application is denied.
             18120          (b) The application shall provide:
             18121          (i) information about the applicant's identity, including:
             18122          (A) the applicant's:
             18123          (I) Social Security number; or
             18124          (II) federal employer identification number;
             18125          (B) the applicant's personal history, experience, education, and business record;
             18126          (C) if the applicant is a natural person, whether the applicant is 18 years of age or older;
             18127      and
             18128          (D) whether the applicant has committed an act that is a ground for denial, suspension,
             18129      or revocation as set forth in Section 31A-25-208 ; and
             18130          (ii) any other information as the commissioner reasonably requires.
             18131          (2) The commissioner may require documents reasonably necessary to verify the
             18132      information contained in the application.
             18133          (3) An applicant's Social Security number contained in an application filed under this
             18134      section is a private record under Section [ 63-2-302 ] 63G-2-302 .
             18135          Section 384. Section 31A-26-206 is amended to read:
             18136           31A-26-206. Continuing education requirements.
             18137          (1) Pursuant to this section, the commissioner shall by rule prescribe continuing
             18138      education requirements for each class of license under Section 31A-26-204 .
             18139          (2) (a) The commissioner shall impose continuing education requirements in accordance
             18140      with a two-year licensing period in which the licensee meets the requirements of this Subsection
             18141      (2).
             18142          (b) (i) Except as provided in Subsection (2)(b)(iii), the continuing education
             18143      requirements shall require:
             18144          (A) that a licensee complete 24 credit hours of continuing education for every two-year
             18145      licensing period;

             18146          (B) that three of the 24 credit hours described in Subsection (2)(b)(i)(A) be ethics
             18147      courses; and
             18148          (C) that the licensee complete at least half of the required hours through classroom
             18149      hours of insurance-related instruction.
             18150          (ii) The hours not completed through classroom hours in accordance with Subsection
             18151      (2)(b)(i)(C) may be obtained through:
             18152          (A) home study;
             18153          (B) video recording;
             18154          (C) experience credit; or
             18155          (D) other methods provided by rule.
             18156          (iii) Notwithstanding Subsections (2)(b)(i)(A) and (B), a title insurance adjuster is
             18157      required to complete 12 credit hours of continuing education for every two-year licensing
             18158      period, with three of the credit hours being ethics courses.
             18159          (c) A licensee may obtain continuing education hours at any time during the two-year
             18160      licensing period.
             18161          (d) (i) Beginning May 3, 1999, a licensee is exempt from the continuing education
             18162      requirements of this section if:
             18163          (A) the licensee was first licensed before April 1, 1970;
             18164          (B) the licensee requests an exemption from the department; and
             18165          (C) the department approves the exemption.
             18166          (ii) If the department approves the exemption under Subsection (2)(d)(i), the licensee is
             18167      not required to apply again for the exemption.
             18168          (e) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             18169      Administrative Rulemaking Act, the commissioner shall by rule:
             18170          (i) publish a list of insurance professional designations whose continuing education
             18171      requirements can be used to meet the requirements for continuing education under Subsection
             18172      (2)(b); and
             18173          (ii) authorize professional adjuster associations to:

             18174          (A) offer qualified programs for all classes of licenses on a geographically accessible
             18175      basis; and
             18176          (B) collect reasonable fees for funding and administration of the continuing education
             18177      programs, subject to the review and approval of the commissioner.
             18178          (f) (i) The fees permitted under Subsection (2)(e)(ii)(B) that are charged to fund and
             18179      administer a program shall reasonably relate to the costs of administering the program.
             18180          (ii) Nothing in this section shall prohibit a provider of continuing education programs or
             18181      courses from charging fees for attendance at courses offered for continuing education credit.
             18182          (iii) The fees permitted under Subsection (2)(e)(ii)(B) that are charged for attendance
             18183      at an association program may be less for an association member, based on the member's
             18184      affiliation expense, but shall preserve the right of a nonmember to attend without affiliation.
             18185          (3) The requirements of this section apply only to licensees who are natural persons.
             18186          (4) The requirements of this section do not apply to members of the Utah State Bar.
             18187          (5) The commissioner shall designate courses that satisfy the requirements of this
             18188      section, including those presented by insurers.
             18189          (6) A nonresident adjuster is considered to have satisfied this state's continuing
             18190      education requirements if:
             18191          (a) the nonresident adjuster satisfies the nonresident producer's home state's continuing
             18192      education requirements for a licensed insurance adjuster; and
             18193          (b) on the same basis the nonresident adjuster's home state considers satisfaction of
             18194      Utah's continuing education requirements for a producer as satisfying the continuing education
             18195      requirements of the home state.
             18196          (7) A licensee subject to this section shall keep documentation of completing the
             18197      continuing education requirements of this section for two years after the end of the two-year
             18198      licensing period to which the continuing education requirement applies.
             18199          Section 385. Section 31A-26-213 is amended to read:
             18200           31A-26-213. Revocation, suspension, surrender, lapsing, limiting, or otherwise
             18201      terminating a license -- Rulemaking for renewal or reinstatement.

             18202          (1) A license type issued under this chapter remains in force until:
             18203          (a) revoked or suspended under Subsection (5);
             18204          (b) surrendered to the commissioner and accepted by the commissioner in lieu of
             18205      administrative action;
             18206          (c) the licensee dies or is adjudicated incompetent as defined under:
             18207          (i) Title 75, Chapter 5, Part 3, Guardians of Incapacitated Persons; or
             18208          (ii) Title 75, Chapter 5, Part 4, Protection of Property of Persons Under Disability and
             18209      Minors;
             18210          (d) lapsed under Section 31A-26-214.5 ; or
             18211          (e) voluntarily surrendered.
             18212          (2) The following may be reinstated within one year after the day on which the license is
             18213      inactivated:
             18214          (a) a lapsed license; or
             18215          (b) a voluntarily surrendered license.
             18216          (3) Unless otherwise stated in the written agreement for the voluntary surrender of a
             18217      license, submission and acceptance of a voluntary surrender of a license does not prevent the
             18218      department from pursuing additional disciplinary or other action authorized under:
             18219          (a) this title; or
             18220          (b) rules made under this title in accordance with [Title 63, Chapter 46a] Title 63G,
             18221      Chapter 3, Utah Administrative Rulemaking Act.
             18222          (4) A license classification issued under this chapter remains in force until:
             18223          (a) the qualifications pertaining to a license classification are no longer met by the
             18224      licensee; or
             18225          (b) the supporting license type:
             18226          (i) is revoked or suspended under Subsection (5); or
             18227          (ii) is surrendered to the commissioner and accepted by the commissioner in lieu of
             18228      administrative action.
             18229          (5) (a) If the commissioner makes a finding under Subsection (5)(b) after an

             18230      adjudicative proceeding under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             18231      Procedures Act, the commissioner may:
             18232          (i) revoke:
             18233          (A) a license; or
             18234          (B) a license classification;
             18235          (ii) suspend for a specified period of 12 months or less:
             18236          (A) a license; or
             18237          (B) a license classification; or
             18238          (iii) limit in whole or in part:
             18239          (A) a license; or
             18240          (B) a license classification.
             18241          (b) The commissioner may take an action described in Subsection (5)(a) if the
             18242      commissioner finds that the licensee:
             18243          (i) is unqualified for a license or license classification under Sections 31A-26-202 ,
             18244      31A-26-203 , and 31A-26-204 ;
             18245          (ii) has violated:
             18246          (A) an insurance statute;
             18247          (B) a rule that is valid under Subsection 31A-2-201 (3); or
             18248          (C) an order that is valid under Subsection 31A-2-201 (4);
             18249          (iii) is insolvent, or the subject of receivership, conservatorship, rehabilitation, or other
             18250      delinquency proceedings in any state;
             18251          (iv) fails to pay any final judgment rendered against the person in this state within 60
             18252      days after the judgment became final;
             18253          (v) fails to meet the same good faith obligations in claims settlement that is required of
             18254      admitted insurers;
             18255          (vi) is affiliated with and under the same general management or interlocking
             18256      directorate or ownership as another insurance adjuster that transacts business in this state
             18257      without a license;

             18258          (vii) refuses:
             18259          (A) to be examined; or
             18260          (B) to produce its accounts, records, and files for examination;
             18261          (viii) has an officer who refuses to:
             18262          (A) give information with respect to the insurance adjuster's affairs; or
             18263          (B) perform any other legal obligation as to an examination;
             18264          (ix) provides information in the license application that is:
             18265          (A) incorrect;
             18266          (B) misleading;
             18267          (C) incomplete; or
             18268          (D) materially untrue;
             18269          (x) has violated any insurance law, valid rule, or valid order of another state's insurance
             18270      department;
             18271          (xi) has obtained or attempted to obtain a license through misrepresentation or fraud;
             18272          (xii) has improperly withheld, misappropriated, or converted any monies or properties
             18273      received in the course of doing insurance business;
             18274          (xiii) has intentionally misrepresented the terms of an actual or proposed:
             18275          (A) insurance contract; or
             18276          (B) application for insurance;
             18277          (xiv) has been convicted of a felony;
             18278          (xv) has admitted or been found to have committed any insurance unfair trade practice
             18279      or fraud;
             18280          (xvi) in the conduct of business in this state or elsewhere has:
             18281          (A) used fraudulent, coercive, or dishonest practices; or
             18282          (B) demonstrated incompetence, untrustworthiness, or financial irresponsibility;
             18283          (xvii) has had an insurance license, or its equivalent, denied, suspended, or revoked in
             18284      any other state, province, district, or territory;
             18285          (xviii) has forged another's name to:

             18286          (A) an application for insurance; or
             18287          (B) any document related to an insurance transaction;
             18288          (xix) has improperly used notes or any other reference material to complete an
             18289      examination for an insurance license;
             18290          (xx) has knowingly accepted insurance business from an individual who is not licensed;
             18291          (xxi) has failed to comply with an administrative or court order imposing a child
             18292      support obligation;
             18293          (xxii) has failed to:
             18294          (A) pay state income tax; or
             18295          (B) comply with any administrative or court order directing payment of state income
             18296      tax;
             18297          (xxiii) has violated or permitted others to violate the federal Violent Crime Control and
             18298      Law Enforcement Act of 1994, 18 U.S.C. Secs. 1033 and 1034; or
             18299          (xxiv) has engaged in methods and practices in the conduct of business that endanger
             18300      the legitimate interests of customers and the public.
             18301          (c) For purposes of this section, if a license is held by an agency, both the agency itself
             18302      and any natural person named on the license are considered to be the holders of the license.
             18303          (d) If a natural person named on the agency license commits any act or fails to perform
             18304      any duty that is a ground for suspending, revoking, or limiting the natural person's license, the
             18305      commissioner may suspend, revoke, or limit the license of:
             18306          (i) the natural person;
             18307          (ii) the agency, if the agency:
             18308          (A) is reckless or negligent in its supervision of the natural person; or
             18309          (B) knowingly participated in the act or failure to act that is the ground for suspending,
             18310      revoking, or limiting the license; or
             18311          (iii) (A) the natural person; and
             18312          (B) the agency if the agency meets the requirements of Subsection (5)(d)(ii).
             18313          (6) A licensee under this chapter is subject to the penalties for conducting an insurance

             18314      business without a license if:
             18315          (a) the licensee's license is:
             18316          (i) revoked;
             18317          (ii) suspended;
             18318          (iii) limited;
             18319          (iv) surrendered in lieu of administrative action;
             18320          (v) lapsed; or
             18321          (vi) voluntarily surrendered; and
             18322          (b) the licensee:
             18323          (i) continues to act as a licensee; or
             18324          (ii) violates the terms of the license limitation.
             18325          (7) A licensee under this chapter shall immediately report to the commissioner:
             18326          (a) a revocation, suspension, or limitation of the person's license in any other state, the
             18327      District of Columbia, or a territory of the United States;
             18328          (b) the imposition of a disciplinary sanction imposed on that person by any other state,
             18329      the District of Columbia, or a territory of the United States; or
             18330          (c) a judgment or injunction entered against that person on the basis of conduct
             18331      involving:
             18332          (i) fraud;
             18333          (ii) deceit;
             18334          (iii) misrepresentation; or
             18335          (iv) a violation of an insurance law or rule.
             18336          (8) (a) An order revoking a license under Subsection (5) or an agreement to surrender a
             18337      license in lieu of administrative action may specify a time not to exceed five years within which
             18338      the former licensee may not apply for a new license.
             18339          (b) If no time is specified in the order or agreement described in Subsection (8)(a), the
             18340      former licensee may not apply for a new license for five years without the express approval of
             18341      the commissioner.

             18342          (9) The commissioner shall promptly withhold, suspend, restrict, or reinstate the use of
             18343      a license issued under this part if so ordered by a court.
             18344          (10) The commissioner shall by rule prescribe the license renewal and reinstatement
             18345      procedures in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             18346      Administrative Rulemaking Act.
             18347          Section 386. Section 31A-26-214 is amended to read:
             18348           31A-26-214. Probation -- Grounds for revocation.
             18349          (1) The commissioner may place a licensee on probation for a period not to exceed 24
             18350      months as follows:
             18351          (a) after an adjudicative proceeding under [Title 63, Chapter 46b] Title 63G, Chapter 4,
             18352      Administrative Procedures Act, for any circumstances that would justify a suspension under
             18353      Section 31A-26-213 ; or
             18354          (b) at the issuance of a new license:
             18355          (i) with an admitted violation under 18 U.S.C. Sections 1033 and 1034; or
             18356          (ii) with a response to a background information question on any new license
             18357      application indicating that:
             18358          (A) the person has been convicted of a crime, that is listed by rule made in accordance
             18359      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, as a
             18360      crime that is grounds for probation;
             18361          (B) the person is currently charged with a crime, that is listed by rule made in
             18362      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             18363      Act, as a crime that is grounds for probation regardless of whether adjudication was withheld;
             18364          (C) the person has been involved in an administrative proceeding regarding any
             18365      professional or occupational license; or
             18366          (D) any business in which the person is or was an owner, partner, officer, or director
             18367      has been involved in an administrative proceeding regarding any professional or occupational
             18368      license.
             18369          (2) The commissioner may put a licensee on probation for a specified period no longer

             18370      than 24 months if the licensee has admitted to violations under 18 U.S.C. Sections 1033 and
             18371      1034.
             18372          (3) A probation order under this section shall state the conditions for retention of the
             18373      license, which shall be reasonable.
             18374          (4) A violation of the probation is grounds for revocation pursuant to any proceeding
             18375      authorized under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             18376          Section 387. Section 31A-27a-102 is amended to read:
             18377           31A-27a-102. Definitions.
             18378          As used in this chapter:
             18379          (1) "Admitted assets" is as defined by and is measured in accordance with the National
             18380      Association of Insurance Commissioner's Statements of Statutory Accounting Principles, as
             18381      incorporated in this state by rules made by the department in accordance with [Title 63, Chapter
             18382      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the purposes of Subsection
             18383      31A-4-113 (1)(b)(ii).
             18384          (2) "Affected guaranty association" means a guaranty association that is or may become
             18385      liable for payment of a covered claim.
             18386          (3) "Affiliate" is as defined in Section 31A-1-301 .
             18387          (4) Notwithstanding Section 31A-1-301 , "alien insurer" means an insurer incorporated
             18388      or organized under the laws of a jurisdiction that is not a state.
             18389          (5) Notwithstanding Section 31A-1-301 , "claimant" or "creditor" means a person
             18390      having a claim against an insurer whether the claim is:
             18391          (a) matured or not matured;
             18392          (b) liquidated or unliquidated;
             18393          (c) secured or unsecured;
             18394          (d) absolute; or
             18395          (e) fixed or contingent.
             18396          (6) "Commissioner" is as defined in Section 31A-1-301 .
             18397          (7) "Commodity contract" means:

             18398          (a) a contract for the purchase or sale of a commodity for future delivery on, or subject
             18399      to the rules of:
             18400          (i) a board of trade or contract market under the Commodity Exchange Act, 7 U.S.C.
             18401      Sec. 1 et seq.; or
             18402          (ii) a board of trade outside the United States;
             18403          (b) an agreement that is:
             18404          (i) subject to regulation under Section 19 of the Commodity Exchange Act, 7 U.S.C.
             18405      Sec. 1 et seq.; and
             18406          (ii) commonly known to the commodities trade as:
             18407          (A) a margin account;
             18408          (B) a margin contract;
             18409          (C) a leverage account; or
             18410          (D) a leverage contract;
             18411          (c) an agreement or transaction that is:
             18412          (i) subject to regulation under Section 4c(b) of the Commodity Exchange Act, 7 U.S.C.
             18413      Sec. 1 et seq.; and
             18414          (ii) commonly known to the commodities trade as a commodity option;
             18415          (d) a combination of the agreements or transactions referred to in this Subsection (7);
             18416      or
             18417          (e) an option to enter into an agreement or transaction referred to in this Subsection
             18418      (7).
             18419          (8) "Control" is as defined in Section 31A-1-301 .
             18420          (9) "Delinquency proceeding" means a:
             18421          (a) proceeding instituted against an insurer for the purpose of rehabilitating or
             18422      liquidating the insurer; and
             18423          (b) summary proceeding under Section 31A-27a-201 .
             18424          (10) "Department" is as defined in Section 31A-1-301 unless the context requires
             18425      otherwise.

             18426          (11) "Doing business," "doing insurance business," and "business of insurance" includes
             18427      any of the following acts, whether effected by mail, electronic means, or otherwise:
             18428          (a) issuing or delivering a contract, certificate, or binder relating to insurance or
             18429      annuities:
             18430          (i) to a person who is resident in this state; or
             18431          (ii) covering a risk located in this state;
             18432          (b) soliciting an application for the contract, certificate, or binder described in
             18433      Subsection (11)(a);
             18434          (c) negotiating preliminary to the execution of the contract, certificate, or binder
             18435      described in Subsection (11)(a);
             18436          (d) collecting premiums, membership fees, assessments, or other consideration for the
             18437      contract, certificate, or binder described in Subsection (11)(a);
             18438          (e) transacting matters:
             18439          (i) subsequent to execution of the contract, certificate, or binder described in
             18440      Subsection (11)(a); and
             18441          (ii) arising out of the contract, certificate, or binder described in Subsection (11)(a);
             18442          (f) operating as an insurer under a license or certificate of authority issued by the
             18443      department; or
             18444          (g) engaging in an act identified in Chapter 15, Unauthorized Insurers, Surplus Lines,
             18445      and Risk Retention Groups.
             18446          (12) Notwithstanding Section 31A-1-301 , "domiciliary state" means the state in which
             18447      an insurer is incorporated or organized, except that "domiciliary state" means:
             18448          (a) in the case of an alien insurer, its state of entry; or
             18449          (b) in the case of a risk retention group, the state in which the risk retention group is
             18450      chartered as contemplated in the Liability Risk Retention Act, 15 U.S.C. Sec. 3901 et seq.
             18451          (13) "Estate" has the same meaning as "property of the insurer" as defined in
             18452      Subsection (30).
             18453          (14) "Fair consideration" is given for property or an obligation:

             18454          (a) when in exchange for the property or obligation, as a fair equivalent for it, and in
             18455      good faith:
             18456          (i) property is conveyed;
             18457          (ii) services are rendered;
             18458          (iii) an obligation is incurred; or
             18459          (iv) an antecedent debt is satisfied; or
             18460          (b) when the property or obligation is received in good faith to secure a present
             18461      advance or an antecedent debt in amount not disproportionately small compared to the value of
             18462      the property or obligation obtained.
             18463          (15) Notwithstanding Section 31A-1-301 , "foreign insurer" means an insurer domiciled
             18464      in another state.
             18465          (16) "Formal delinquency proceeding" means a rehabilitation or liquidation proceeding.
             18466          (17) "Forward contract" is as defined in the Federal Deposit Insurance Act, 12 U.S.C.
             18467      Sec. 1821(e)(8)(D).
             18468          (18) (a) "General assets" include all property of the estate that is not:
             18469          (i) subject to a properly perfected secured claim;
             18470          (ii) subject to a valid and existing express trust for the security or benefit of a specified
             18471      person or class of person; or
             18472          (iii) required by the insurance laws of this state or any other state to be held for the
             18473      benefit of a specified person or class of person.
             18474          (b) "General assets" include all property of the estate or its proceeds in excess of the
             18475      amount necessary to discharge a claim described in Subsection (18)(a).
             18476          (19) "Good faith" means honesty in fact and intention, and in regard to Part 5, Asset
             18477      Recovery, also requires the absence of:
             18478          (a) information that would lead a reasonable person in the same position to know that
             18479      the insurer is financially impaired or insolvent; and
             18480          (b) knowledge regarding the imminence or pendency of a delinquency proceeding
             18481      against the insurer.

             18482          (20) "Guaranty association" means:
             18483          (a) a mechanism mandated by Chapter 28, Guaranty Associations; or
             18484          (b) a similar mechanism in another state that is created for the payment of claims or
             18485      continuation of policy obligations of a financially impaired or insolvent insurer.
             18486          (21) "Impaired" means that an insurer:
             18487          (a) does not have admitted assets at least equal to the sum of:
             18488          (i) all its liabilities; and
             18489          (ii) the minimum surplus required to be maintained by Section 31A-5-211 or
             18490      31A-8-209 ; or
             18491          (b) has a total adjusted capital that is less than its authorized control level RBC, as
             18492      defined in Section 31A-17-601 .
             18493          (22) "Insolvency" or "insolvent" means that an insurer:
             18494          (a) is unable to pay its obligations when they are due;
             18495          (b) does not have admitted assets at least equal to all of its liabilities; or
             18496          (c) has a total adjusted capital that is less than its mandatory control level RBC, as
             18497      defined in Section 31A-17-601 .
             18498          (23) Notwithstanding Section 31A-1-301 , "insurer" means a person who:
             18499          (a) is doing, has done, purports to do, or is licensed to do the business of insurance;
             18500          (b) is or has been subject to the authority of, or to rehabilitation, liquidation,
             18501      reorganization, supervision, or conservation by an insurance commissioner; or
             18502          (c) is included under Section 31A-27a-104 .
             18503          (24) "Liabilities" is as defined by and is measured in accordance with the National
             18504      Association of Insurance Commissioner's Statements of Statutory Accounting Principles, as
             18505      incorporated in this state by rules made by the department in accordance with [Title 63, Chapter
             18506      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the purposes of Subsection
             18507      31A-4-113 (1)(b)(ii).
             18508          (25) (a) Subject to Subsection (21)(b), "netting agreement" means:
             18509          (i) a contract or agreement that:

             18510          (A) documents one or more transactions between the parties to the agreement for or
             18511      involving one or more qualified financial contracts; and
             18512          (B) provides for the netting, liquidation, setoff, termination, acceleration, or close out
             18513      under or in connection with:
             18514          (I) one or more qualified financial contracts; or
             18515          (II) present or future payment or delivery obligations or payment or delivery
             18516      entitlements under the agreement, including liquidation or close-out values relating to the
             18517      obligations or entitlements, among the parties to the netting agreement;
             18518          (ii) a master agreement or bridge agreement for one or more master agreements
             18519      described in Subsection (25)(a)(i); or
             18520          (iii) any of the following related to a contract or agreement described in Subsection
             18521      (25)(a)(i) or (ii):
             18522          (A) a security agreement;
             18523          (B) a security arrangement;
             18524          (C) other credit enhancement or guarantee; or
             18525          (D) a reimbursement obligation.
             18526          (b) If a contract or agreement described in Subsection (25)(a)(i) or (ii) relates to an
             18527      agreement or transaction that is not a qualified financial contract, the contract or agreement
             18528      described in Subsection (25)(a)(i) or (ii) is considered a netting agreement only with respect to
             18529      an agreement or transaction that is a qualified financial contract.
             18530          (c) "Netting agreement" includes:
             18531          (i) a term or condition incorporated by reference in the contract or agreement described
             18532      in Subsection (25)(a); or
             18533          (ii) a master agreement described in Subsection (25)(a).
             18534          (d) A master agreement described in Subsection (25)(a), together with all schedules,
             18535      confirmations, definitions, and addenda to that master agreement and transactions under any of
             18536      the items described in this Subsection (25)(d), are treated as one netting agreement.
             18537          (26) (a) "New value" means:

             18538          (i) money;
             18539          (ii) money's worth in goods, services, or new credit; or
             18540          (iii) release by a transferee of property previously transferred to the transferee in a
             18541      transaction that is neither void nor voidable by the insurer or the receiver under any applicable
             18542      law, including proceeds of the property.
             18543          (b) "New value" does not include an obligation substituted for an existing obligation.
             18544          (27) "Party in interest" means:
             18545          (a) the commissioner;
             18546          (b) a nondomiciliary commissioner in whose state the insurer has outstanding claims
             18547      liabilities;
             18548          (c) an affected guaranty association; and
             18549          (d) the following parties if the party files a request with the receivership court for
             18550      inclusion as a party in interest and to be on the service list:
             18551          (i) an insurer that ceded to or assumed business from the insurer;
             18552          (ii) a policyholder;
             18553          (iii) a third party claimant;
             18554          (iv) a creditor;
             18555          (v) a 10% or greater equity security holder in the insolvent insurer; and
             18556          (vi) a person, including an indenture trustee, with a financial or regulatory interest in the
             18557      delinquency proceeding.
             18558          (28) (a) Notwithstanding Section 31A-1-301 , "policy" means, notwithstanding what it
             18559      is called:
             18560          (i) a written contract of insurance;
             18561          (ii) a written agreement for or affecting insurance; or
             18562          (iii) a certificate of a written contract or agreement described in this Subsection (28)(a).
             18563          (b) "Policy" includes all clauses, riders, endorsements, and papers that are a part of a
             18564      policy.
             18565          (c) "Policy" does not include a contract of reinsurance.

             18566          (29) "Preference" means a transfer of property of an insurer to or for the benefit of a
             18567      creditor:
             18568          (a) for or on account of an antecedent debt, made or allowed by the insurer within one
             18569      year before the day on which a successful petition for rehabilitation or liquidation is filed under
             18570      this chapter;
             18571          (b) the effect of which transfer may enable the creditor to obtain a greater percentage of
             18572      the creditor's debt than another creditor of the same class would receive; and
             18573          (c) if a liquidation order is entered while the insurer is already subject to a rehabilitation
             18574      order and the transfer otherwise qualifies, that is made or allowed within the shorter of:
             18575          (i) one year before the day on which a successful petition for rehabilitation is filed; or
             18576          (ii) two years before the day on which a successful petition for liquidation is filed.
             18577          (30) "Property of the insurer" or "property of the estate" includes:
             18578          (a) a right, title, or interest of the insurer in property:
             18579          (i) whether:
             18580          (A) legal or equitable;
             18581          (B) tangible or intangible; or
             18582          (C) choate or inchoate; and
             18583          (ii) including choses in action, contract rights, and any other interest recognized under
             18584      the laws of this state;
             18585          (b) entitlements that exist before the entry of an order of rehabilitation or liquidation;
             18586          (c) entitlements that may arise by operation of this chapter or other provisions of law
             18587      allowing the receiver to avoid prior transfers or assert other rights; and
             18588          (d) (i) records or data that is otherwise the property of the insurer; and
             18589          (ii) records or data similar to those described in Subsection (30)(d)(i) that are within the
             18590      possession, custody, or control of a managing general agent, a third party administrator, a
             18591      management company, a data processing company, an accountant, an attorney, an affiliate, or
             18592      other person.
             18593          (31) Subject to Subsection 31A-27a-611 (10), "qualified financial contract" means any

             18594      of the following:
             18595          (a) a commodity contract;
             18596          (b) a forward contract;
             18597          (c) a repurchase agreement;
             18598          (d) a securities contract;
             18599          (e) a swap agreement; or
             18600          (f) any similar agreement that the commissioner determines by rule or order to be a
             18601      qualified financial contract for purposes of this chapter.
             18602          (32) As the context requires, "receiver" means a rehabilitator, liquidator, or ancillary
             18603      receiver.
             18604          (33) As the context requires, "receivership" means a rehabilitation, liquidation, or
             18605      ancillary receivership.
             18606          (34) Unless the context requires otherwise, "receivership court" refers to the court in
             18607      which a delinquency proceeding is pending.
             18608          (35) "Reciprocal state" means any state other than this state that:
             18609          (a) enforces a law substantially similar to this chapter;
             18610          (b) requires the commissioner to be the receiver of a delinquent insurer; and
             18611          (c) has laws for the avoidance of fraudulent conveyances and preferential transfers by
             18612      the receiver of a delinquent insurer.
             18613          (36) "Record," when used as a noun, means any information or data, in whatever form
             18614      maintained, including:
             18615          (a) a book;
             18616          (b) a document;
             18617          (c) a paper;
             18618          (d) a file;
             18619          (e) an application file;
             18620          (f) a policyholder list;
             18621          (g) policy information;

             18622          (h) a claim or claim file;
             18623          (i) an account;
             18624          (j) a voucher;
             18625          (k) a litigation file;
             18626          (l) a premium record;
             18627          (m) a rate book;
             18628          (n) an underwriting manual;
             18629          (o) a personnel record;
             18630          (p) a financial record; or
             18631          (q) other material.
             18632          (37) "Reinsurance" means a transaction or contract under which an assuming insurer
             18633      agrees to indemnify a ceding insurer against all, or a part, of any loss that the ceding insurer may
             18634      sustain under the one or more policies that the ceding insurer issues or will issue.
             18635          (38) "Repurchase agreement" is as defined in the Federal Deposit Insurance Act, 12
             18636      U.S.C. Sec. 1821(e)(8)(D).
             18637          (39) (a) "Secured claim" means, subject to Subsection (39)(b):
             18638          (i) a claim secured by an asset that is not a general asset; or
             18639          (ii) the right to set off as provided in Section 31A-27a-510 .
             18640          (b) "Secured claim" does not include:
             18641          (i) a special deposit claim;
             18642          (ii) a claim based on mere possession; or
             18643          (iii) a claim arising from a constructive or resulting trust.
             18644          (40) "Securities contract" is as defined in the Federal Deposit Insurance Act, 12 U.S.C.
             18645      Sec. 1821(e)(8)(D).
             18646          (41) "Special deposit" means a deposit established pursuant to statute for the security
             18647      or benefit of a limited class or classes of persons.
             18648          (42) (a) Subject to Subsection (42)(b), "special deposit claim" means a claim secured by
             18649      a special deposit.

             18650          (b) "Special deposit claim" does not include a claim against the general assets of the
             18651      insurer.
             18652          (43) "State" means a state, district, or territory of the United States.
             18653          (44) "Subsidiary" is as defined in Section 31A-1-301 .
             18654          (45) "Swap agreement" is as defined in the Federal Deposit Insurance Act, 12 U.S.C.
             18655      Sec. 1821(e)(8)(D).
             18656          (46) (a) "Transfer" includes the sale and every other and different mode of disposing of
             18657      or parting with property or with an interest in property, whether:
             18658          (i) directly or indirectly;
             18659          (ii) absolutely or conditionally;
             18660          (iii) voluntarily or involuntarily; or
             18661          (iv) by or without judicial proceedings.
             18662          (b) An interest in property includes:
             18663          (i) a set off;
             18664          (ii) having possession of the property; or
             18665          (iii) fixing a lien on the property or on an interest in the property.
             18666          (c) The retention of a security title in property delivered to an insurer and foreclosure of
             18667      the insurer's equity of redemption is considered a transfer suffered by the insurer.
             18668          (47) Notwithstanding Section 31A-1-301 , "unauthorized insurer" means an insurer
             18669      transacting the business of insurance in this state that has not received a certificate of authority
             18670      from this state, or some other type of authority that allows for the transaction of the business of
             18671      insurance in this state.
             18672          Section 388. Section 31A-27a-116 is amended to read:
             18673           31A-27a-116. Financial reporting.
             18674          (1) (a) The receiver shall comply with all requirements for receivership financial
             18675      reporting as specified by the commissioner by rule within:
             18676          (i) 180 days after the day on which the receivership court enters an order of
             18677      receivership; and

             18678          (ii) 45 days following each calendar quarter after the period specified in Subsection
             18679      (1)(a)(i).
             18680          (b) The rule described in this Subsection (1) shall:
             18681          (i) comply with this section;
             18682          (ii) be made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             18683      Administrative Rulemaking Act; and
             18684          (iii) require the receiver to file any financial report with the receivership court in
             18685      addition to any other person specified in the rule.
             18686          (c) A financial report shall include, at a minimum, a statement of:
             18687          (i) the assets and liabilities of the insurer;
             18688          (ii) the changes in those assets and liabilities; and
             18689          (iii) all funds received or disbursed by the receiver during that reporting period.
             18690          (d) The receiver may qualify a financial report or provide notes to the financial
             18691      statement for further explanation.
             18692          (e) The receivership court may order the receiver to provide any additional information
             18693      as the receivership court considers appropriate.
             18694          (2) Each affected guaranty association shall file one or more reports with the liquidator:
             18695          (a) (i) within 180 days after the day on which the receivership court enters an order of
             18696      liquidation; and
             18697          (ii) (A) within 45 days following each calendar quarter after the period described in
             18698      Subsection (2)(a)(i); or
             18699          (B) at an interval:
             18700          (I) agreed to between the liquidator and the affected guaranty association; or
             18701          (II) required by the receivership court; and
             18702          (b) in no event less than annually.
             18703          (3) For good cause shown, the receivership court may grant:
             18704          (a) relief for an extension or modification of time to comply with Subsection (1) or (2);
             18705      or

             18706          (b) such other relief as may be appropriate.
             18707          Section 389. Section 31A-27a-117 is amended to read:
             18708           31A-27a-117. Records.
             18709          (1) (a) Upon entry of an order of rehabilitation or liquidation, the receiver is vested with
             18710      title to all of the records of the insurer:
             18711          (i) of whatever nature;
             18712          (ii) in whatever medium;
             18713          (iii) wherever located; and
             18714          (iv) regardless of whether the item is in the custody and control of:
             18715          (A) a third party administrator;
             18716          (B) a managing general agent;
             18717          (C) an attorney; or
             18718          (D) other representatives of the insurer.
             18719          (b) The receiver may immediately take possession and control of:
             18720          (i) all of the records of the insurer; and
             18721          (ii) the premises where the records are located.
             18722          (c) At the request of the receiver, a third party administrator, managing general agent,
             18723      attorney, or other representatives of the insurer shall release all records of the insurer to:
             18724          (i) the receiver; or
             18725          (ii) the receiver's designee.
             18726          (d) With the receiver's approval, an affected guaranty association with an obligation
             18727      under a policy issued by the insurer may take actions necessary to obtain directly from a third
             18728      party administrator, managing general agent, attorney, or other representative of the insurer all
             18729      records pertaining to the insurer's business that are appropriate or necessary for the affected
             18730      guaranty association to fulfill its statutory obligations.
             18731          (2) The receiver may certify a record of a delinquent insurer described in Subsection (1)
             18732      and a record of the receiver's office created and maintained in connection with a delinquent
             18733      insurer, as follows:

             18734          (a) a record of a delinquent insurer may be certified by the receiver in an affidavit
             18735      stating that the record is a true and correct copy of the record of the insurer that is received
             18736      from the custody of the insurer, or found among the insurer's effects; or
             18737          (b) a record created by or filed with the receiver's office in connection with a delinquent
             18738      insurer may be certified by the receiver's affidavit stating that the record is a true and correct
             18739      copy of the record maintained by the receiver's office.
             18740          (3) (a) An original record or copy of a record certified under Subsection (2):
             18741          (i) when admitted in evidence is prima facie evidence of the facts disclosed; and
             18742          (ii) is admissible in evidence in the same manner as a document described in Utah Rules
             18743      of Evidence, Rule 902(1).
             18744          (b) The receivership court may consider the certification of a record by the receiver
             18745      pursuant to this section as satisfying the requirements of Utah Rules of Evidence, Rule 803(6).
             18746          (4) A record of a delinquent insurer held by the receiver:
             18747          (a) is not a record of the department for any purposes; and
             18748          (b) not subject to [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             18749      Access and Management Act.
             18750          Section 390. Section 31A-27a-514 is amended to read:
             18751           31A-27a-514. Recovery of premiums owed.
             18752          (1) (a) An insured shall pay any unpaid earned premium or retrospectively rated
             18753      premium due the insurer:
             18754          (i) directly to the receiver; or
             18755          (ii) to an agent that pays or is obligated to pay the receiver on behalf of the insured.
             18756          (b) (i) Premium on surety business is considered earned at inception if no policy term
             18757      can be determined.
             18758          (ii) All premium other than that described in Subsection (1)(b)(i) is considered earned
             18759      and is prorated equally over the determined policy term, regardless of any provision in the bond,
             18760      guaranty, contract, or other agreement.
             18761          (2) (a) A person, other than the insured, responsible for the remittance of a premium,

             18762      shall turn over to the receiver any unpaid premium due and owing as shown on the records of
             18763      the insurer for the full policy term due the insurer at the time of the entry of the receivership
             18764      order:
             18765          (i) including any amount representing commissions; and
             18766          (ii) whether earned or unearned based on the termination of coverage under Sections
             18767      31A-27a-402 and 31A-27a-403 .
             18768          (b) The unpaid premium due the receiver from any person other than the insured
             18769      excludes any premium not collected from the insured and not earned based on the termination of
             18770      coverage under Sections 31A-27a-402 and 31A-27a-403 .
             18771          (3) (a) A person, other than the insured, responsible for the remittance of a premium,
             18772      shall turn over to the receiver any unearned commission of that person based on the termination
             18773      of coverage under Sections 31A-27a-402 and 31A-27a-403 .
             18774          (b) A credit, setoff, or both may not be allowed to an agent, broker, premium finance
             18775      company, or any other person for an:
             18776          (i) amount advanced to the insurer by the person on behalf of, but in the absence of a
             18777      payment by, the insured; or
             18778          (ii) other amount paid by the person to any other person after the day on which the
             18779      order of receivership is entered.
             18780          (4) Regardless of any provision to the contrary in an agency contract or other
             18781      agreement, a person that collects premium or finances premium under a premium finance
             18782      contract, that is due the insurer in receivership is considered to:
             18783          (a) hold that premium in trust as a fiduciary for the benefit of the insurer; and
             18784          (b) have availed itself of the laws of this state.
             18785          (5) (a) A premium finance company is obligated to pay an amount due the insurer from
             18786      a premium finance contract, whether the premium is earned or unearned.
             18787          (b) The receiver may collect an unpaid financed premium directly from:
             18788          (i) the premium finance company by taking an assignment of the underlying premium
             18789      finance contract; or

             18790          (ii) the insured that is a party to the premium finance contract.
             18791          (6) Upon satisfactory evidence of a violation of this section by a person other than an
             18792      insured, the commissioner may pursue one or more of the following courses of action:
             18793          (a) suspend, revoke, or refuse to renew the license of an offending party;
             18794          (b) impose a penalty of not more than $1,000 for each act in violation of this section by
             18795      a party; and
             18796          (c) impose any other sanction or penalty allowed for by law.
             18797          (7) (a) Before the commissioner may take an action set forth in Subsection (6), written
             18798      notice shall be given to the person accused of violating the law:
             18799          (i) stating specifically the nature of the alleged violation; and
             18800          (ii) fixing a time and place, at least ten days after the day on which the notice is sent,
             18801      when a hearing on the matter is to be held.
             18802          (b) After a hearing, or upon failure of the accused to appear at a hearing, the
             18803      commissioner, if a violation is found, shall impose the penalties under Subsection (6) that the
             18804      commissioner considers advisable.
             18805          (c) If the commissioner takes action under this Subsection (7), the party aggrieved may
             18806      appeal from that action as provided in [Title 63, Chapter 46b] Title 63G, Chapter 4,
             18807      Administrative Procedures Act.
             18808          Section 391. Section 31A-27a-515 is amended to read:
             18809           31A-27a-515. Commutation and release agreements.
             18810          (1) For purposes of this section, "casualty claims" means the insurer's aggregate claims
             18811      arising out of insurance contracts in the following lines:
             18812          (a) farm owner multiperil;
             18813          (b) homeowner multiperil;
             18814          (c) commercial multiperil;
             18815          (d) medical malpractice;
             18816          (e) workers' compensation;
             18817          (f) other liability;

             18818          (g) products liability;
             18819          (h) auto liability;
             18820          (i) aircraft, all peril; and
             18821          (j) international, for lines listed in Subsections (1)(a) through (i).
             18822          (2) (a) Notwithstanding Section 31A-27a-512 , the liquidator and a reinsurer may
             18823      negotiate a voluntary commutation and release of all obligations arising from a reinsurance
             18824      agreement in which the insurer is the ceding party.
             18825          (b) A commutation and release agreement voluntarily entered into by the parties shall be
             18826      commercially reasonable, actuarially sound, and in the best interests of the creditors of the
             18827      insurer.
             18828          (c) (i) An agreement subject to this Subsection (2) that has a gross consideration in
             18829      excess of $250,000 shall be submitted pursuant to Section 31A-27a-107 to the receivership
             18830      court for approval.
             18831          (ii) An agreement described in this Subsection (2)(c) shall be approved by the
             18832      receivership court if it meets the standards described in this Subsection (2).
             18833          (3) Without derogating from Section 31A-27a-512 , if the liquidator is unable to
             18834      negotiate a voluntary commutation with a reinsurer with respect to a reinsurance agreement
             18835      between the insurer and that reinsurer, the liquidator may, in addition to any other remedy
             18836      available under applicable law, apply to the receivership court, with notice to the reinsurer, for
             18837      an order requiring that the parties submit commutation proposals with respect to the reinsurance
             18838      agreement to a panel of three arbitrators:
             18839          (a) at any time after 75% of the actuarially estimated ultimate incurred liability for all of
             18840      the casualty claims against the liquidation estate is reached by allowance of claims in the
             18841      liquidation estate pursuant to Sections 31A-27a-603 and 31A-27a-605 , calculated:
             18842          (i) as of the day on which the order of liquidation is entered by or at the instance of the
             18843      liquidator; and
             18844          (ii) for purposes of this Subsection (3), not performed during the five-year period
             18845      subsequent to the day on which the order of liquidation is entered; or

             18846          (b) at any time in regard to a reinsurer if that reinsurer has a total adjusted capital that is
             18847      less than 250% of its authorized control level RBC as defined in Section 31A-17-601 .
             18848          (4) Venue for the arbitration is within the district of the receivership court's jurisdiction
             18849      or at another location agreed to by the parties.
             18850          (5) (a) If the liquidator determines that commutation would be in the best interests of
             18851      the creditors of the liquidation estate, the liquidator may petition the receivership court to order
             18852      arbitration.
             18853          (b) If the liquidator petitions the receivership court under Subsection (5)(a), the
             18854      receivership court shall require that the liquidator and the reinsurer each appoint an arbitrator
             18855      within 30 days after the day on which the order for arbitration is entered.
             18856          (c) If either party fails to appoint an arbitrator within the 30-day period, the other party
             18857      may appoint both arbitrators and the appointments are binding on the parties.
             18858          (d) The two arbitrators shall be active or retired executive officers of insurance or
             18859      reinsurance companies, not under the control of or affiliated with the insurer or the reinsurer.
             18860          (e) (i) Within 30 days after the day on which both arbitrators have been appointed, the
             18861      two arbitrators shall agree to the appointment of a third independent, impartial, disinterested
             18862      arbitrator.
             18863          (ii) If agreement to the disinterested arbitrator is not reached within the 30-day period,
             18864      the third arbitrator shall be appointed by the receivership court.
             18865          (f) The disinterested arbitrator shall be a person who:
             18866          (i) is or, if retired, has been, an executive officer of a United States domiciled insurance
             18867      or reinsurance company that is not under the control of or affiliated with either of the parties;
             18868      and
             18869          (ii) has at least 15 years experience in the reinsurance industry.
             18870          (6) (a) The arbitration panel may choose to retain as an expert to assist the panel in its
             18871      determinations, a retired, disinterested executive officer of a United States domiciled insurance
             18872      or reinsurance company having at least 15 years loss reserving actuarial experience.
             18873          (b) If the arbitration panel is unable to unanimously agree on the identity of the expert

             18874      within 14 days of the day on which the disinterested arbitrator is appointed, the expert shall be:
             18875          (i) designated by the commissioner:
             18876          (A) by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             18877      Administrative Rulemaking Act; and
             18878          (B) on the basis of recommendations made by a nationally recognized society of
             18879      actuaries; and
             18880          (ii) a disinterested person that has knowledge, experience, and training applicable to the
             18881      line of insurance that is the subject of the arbitration.
             18882          (c) The expert:
             18883          (i) may not vote in the proceeding; and
             18884          (ii) shall issue a written report and recommendations to the arbitration panel within 60
             18885      days after the day on which the arbitration panel receives the commutation proposals submitted
             18886      by the parties pursuant to Subsection (7), which report shall:
             18887          (A) be included as part of the arbitration record; and
             18888          (B) accompany the award issued by the arbitration panel pursuant to Subsection (8).
             18889          (d) The cost of the expert is to be paid equally by the parties.
             18890          (7) Within 90 days after the day on which the disinterested arbitrator is appointed under
             18891      Subsection (5), each party shall submit to the arbitration panel:
             18892          (a) the party's commutation proposals; and
             18893          (b) other documents and information relevant to the determination of the parties' rights
             18894      and obligations under the reinsurance agreement to be commuted, including:
             18895          (i) a written review of any disputed paid claim balances;
             18896          (ii) any open claim files and related case reserves at net present value; and
             18897          (iii) any actuarial estimates with the basis of computation of any other reserves and any
             18898      incurred-but-not-reported losses at net present value.
             18899          (8) (a) Within 90 days after the day on which the parties submit the information
             18900      required by Subsection (7), the arbitration panel:
             18901          (i) shall issue an award, determined by a majority of the arbitration panel, specifying the

             18902      terms of a commercially reasonable and actuarially sound commutation agreement between the
             18903      parties; or
             18904          (ii) may issue an award declining commutation between the parties for a period not to
             18905      exceed two years if a majority of the arbitration panel determines that it is unable to derive a
             18906      commercially reasonable and actuarially sound commutation on the basis of:
             18907          (A) the submissions of the parties; and
             18908          (B) if applicable, the report and recommendation of the expert retained in accordance
             18909      with Subsection (6).
             18910          (b) Following the expiration of the two-year period described in Subsection (8)(a), the
             18911      liquidator may again invoke arbitration in accordance with Subsection (2), in which event
             18912      Subsections (2) through (9) apply to the renewed proceeding, except that the arbitration panel is
             18913      obliged to issue an award under Subsection (8)(a).
             18914          (9) Once an award is issued, the liquidator shall promptly submit the award to the
             18915      receivership court for confirmation.
             18916          (10) (a) Within 30 days of the day on which the receivership court confirms the award,
             18917      the reinsurer shall give notice to the receiver that the reinsurer:
             18918          (i) will commute the reinsurer's liabilities to the insurer for the amount of the award in
             18919      return for a full and complete release of all liabilities between the parties, whether past, present,
             18920      or future; or
             18921          (ii) will not commute the reinsurer's liabilities to the insurer.
             18922          (b) If the reinsurer's liabilities are not commuted under Subsection (10)(a), the reinsurer
             18923      shall:
             18924          (i) establish and maintain in accordance with Section 31A-27a-516 a reinsurance
             18925      recoverable trust in the amount of 102% of the award; and
             18926          (ii) pay the costs and fees associated with establishing and maintaining the trust
             18927      established under this Subsection (10)(b).
             18928          (11) (a) If the reinsurer notifies the liquidator that it will commute the reinsurer's
             18929      liabilities pursuant to Subsection (10)(a)(i), the liquidator has 30 days from the day on which the

             18930      reinsurer notifies the liquidator to:
             18931          (i) tender to the reinsurer a proposed commutation and release agreement:
             18932          (A) providing for a full and complete release of all liabilities between the parties,
             18933      whether past, present, or future;
             18934          (B) that requires that the reinsurer make payment of the commutation amount within 14
             18935      days from the day on which the agreement is consummated; or
             18936          (ii) reject the commutation in writing, subject to receivership court approval.
             18937          (b) If the liquidator rejects the commutation subject to approval of the receivership
             18938      court in accordance with Subsection (11)(a)(ii), the reinsurer shall establish and maintain a
             18939      reinsurance recoverable trust in accordance with Section 31A-27a-516 .
             18940          (c) The liquidator and the reinsurer shall share equally in the costs and fees associated
             18941      with establishing and maintaining the trust established under Subsection (11)(b).
             18942          (12) Except for the period provided in Subsection (8)(b), the time periods established in
             18943      Subsections (6), (7), (8), (10), and (11) may be extended:
             18944          (a) upon the consent of the parties; or
             18945          (b) by order of the receivership court, for good cause shown.
             18946          (13) Subject to Subsection (14), this section may not be construed to supersede or
             18947      impair any provision in a reinsurance agreement that establishes a commercially reasonable and
             18948      actuarially sound method for valuing and commuting the obligations of the parties to the
             18949      reinsurance agreement by providing in the contract the specific methodology to be used for
             18950      valuing and commuting the obligations between the parties.
             18951          (14) (a) A commutation provision in a reinsurance agreement is not effective if it is
             18952      demonstrated to the receivership court that the provision is entered into in contemplation of the
             18953      insolvency of one or more of the parties.
             18954          (b) A contractual commutation provision entered into within one year of the day on
             18955      which the liquidation order of the insurer is entered is rebuttably presumed to have been entered
             18956      into in contemplation of insolvency.
             18957          Section 392. Section 31A-27a-804 is amended to read:

             18958           31A-27a-804. Disposition of records during and after termination of liquidation.
             18959          (1) Whenever it appears to the receiver that records of the insurer in receivership are no
             18960      longer useful, the receiver may recommend to the receivership court, and the receivership court
             18961      shall direct what records shall be destroyed.
             18962          (2) (a) If the receiver determines that records should be maintained after the closing of
             18963      the delinquency proceeding, the receiver may reserve property from the receivership estate for
             18964      the maintenance of the records.
             18965          (b) Any amounts retained under this Subsection (2) are an administrative expense of the
             18966      estate under Subsection 31A-27a-701 (2)(a).
             18967          (c) Any records retained pursuant to this Subsection (2) shall be transferred to the
             18968      custody of the commissioner, and the commissioner may retain or dispose of the records as
             18969      appropriate, at the commissioner's discretion.
             18970          (d) Records of a delinquent insurer that are transferred to the commissioner:
             18971          (i) may not be considered a record of the department for any purpose; and
             18972          (ii) are not subject to [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             18973      Access and Management Act.
             18974          Section 393. Section 31A-29-106 is amended to read:
             18975           31A-29-106. Powers of board.
             18976          (1) The board shall have the general powers and authority granted under the laws of
             18977      this state to insurance companies licensed to transact health care insurance business. In
             18978      addition, the board shall have the specific authority to:
             18979          (a) enter into contracts to carry out the provisions and purposes of this chapter,
             18980      including, with the approval of the commissioner, contracts with:
             18981          (i) similar pools of other states for the joint performance of common administrative
             18982      functions; or
             18983          (ii) persons or other organizations for the performance of administrative functions;
             18984          (b) sue or be sued, including taking such legal action necessary to avoid the payment of
             18985      improper claims against the pool or the coverage provided through the pool;

             18986          (c) establish appropriate rates, rate schedules, rate adjustments, expense allowances,
             18987      agents' referral fees, claim reserve formulas, and any other actuarial function appropriate to the
             18988      operation of the pool;
             18989          (d) issue policies of insurance in accordance with the requirements of this chapter;
             18990          (e) retain an executive director and appropriate legal, actuarial, and other personnel as
             18991      necessary to provide technical assistance in the operations of the pool;
             18992          (f) establish rules, conditions, and procedures for reinsuring risks under this chapter;
             18993          (g) cause the pool to have an annual audit of its operations by the state auditor;
             18994          (h) coordinate with the Department of Health in seeking to obtain from the Centers for
             18995      Medicare and Medicaid Services, or other appropriate office or agency of government, all
             18996      appropriate waivers, authority, and permission needed to coordinate the coverage available
             18997      from the pool with coverage available under Medicaid, either before or after Medicaid
             18998      coverage, or as a conversion option upon completion of Medicaid eligibility, without the
             18999      necessity for requalification by the enrollee;
             19000          (i) provide for and employ cost containment measures and requirements including
             19001      preadmission certification, concurrent inpatient review, and individual case management for the
             19002      purpose of making the pool more cost-effective;
             19003          (j) offer pool coverage through contracts with health maintenance organizations,
             19004      preferred provider organizations, and other managed care systems that will manage costs while
             19005      maintaining quality care;
             19006          (k) establish annual limits on benefits payable under the pool to or on behalf of any
             19007      enrollee;
             19008          (l) exclude from coverage under the pool specific benefits, medical conditions, and
             19009      procedures for the purpose of protecting the financial viability of the pool;
             19010          (m) administer the Pool Fund;
             19011          (n) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             19012      Administrative Rulemaking Act, to implement this chapter; and
             19013          (o) adopt, trademark, and copyright a trade name for the pool for use in marketing and

             19014      publicizing the pool and its products.
             19015          (2) (a) The board shall prepare and submit an annual report to the Legislature which
             19016      shall include:
             19017          (i) the net premiums anticipated;
             19018          (ii) actuarial projections of payments required of the pool;
             19019          (iii) the expenses of administration; and
             19020          (iv) the anticipated reserves or losses of the pool.
             19021          (b) The budget for operation of the pool is subject to the approval of the board.
             19022          (c) The administrative budget of the board and the commissioner under this chapter
             19023      shall comply with the requirements of [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary
             19024      Procedures Act, and is subject to review and approval by the Legislature.
             19025          (3) (a) The board shall on or before September 1, 2004, require the plan administrator
             19026      or an independent actuarial consultant retained by the plan administrator to redetermine the
             19027      reasonable equivalent of the criteria for uninsurability required under Subsection
             19028      31A-30-106 (1)(j) that is used by the board to determine eligibility for coverage in the pool.
             19029          (b) The board shall redetermine the criteria established in Subsection (3)(a) at least
             19030      every five years thereafter.
             19031          Section 394. Section 31A-29-110 is amended to read:
             19032           31A-29-110. Pool administrator -- Selection -- Powers.
             19033          (1) The board shall select a pool administrator in accordance with [Title 63, Chapter
             19034      56] Title 63G, Chapter 6, Utah Procurement Code. The board shall evaluate bids based on
             19035      criteria established by the board, which shall include:
             19036          (a) ability to manage medical expenses;
             19037          (b) proven ability to handle accident and health insurance;
             19038          (c) efficiency of claim paying procedures;
             19039          (d) marketing and underwriting;
             19040          (e) proven ability for managed care and quality assurance;
             19041          (f) provider contracting and discounts;

             19042          (g) pharmacy benefit management;
             19043          (h) an estimate of total charges for administering the pool; and
             19044          (i) ability to administer the pool in a cost-efficient manner.
             19045          (2) A pool administrator may be:
             19046          (a) a health insurer;
             19047          (b) a health maintenance organization;
             19048          (c) a third-party administrator; or
             19049          (d) any person or entity which has demonstrated ability to meet the criteria in
             19050      Subsection (1).
             19051          (3) (a) The pool administrator shall serve for a period of three years, with two one-year
             19052      extension options, subject to the terms, conditions, and limitations of the contract between the
             19053      board and the administrator.
             19054          (b) At least one year prior to the expiration of the contract between the board and the
             19055      pool administrator, the board shall invite all interested parties, including the current pool
             19056      administrator, to submit bids to serve as the pool administrator.
             19057          (c) Selection of the pool administrator for a succeeding period shall be made at least six
             19058      months prior to the expiration of the period of service under Subsection (3)(a).
             19059          (4) The pool administrator is responsible for all operational functions of the pool and
             19060      shall:
             19061          (a) have access to all nonpatient specific experience data, statistics, treatment criteria,
             19062      and guidelines compiled or adopted by the Medicaid program, the Public Employees Health
             19063      Plan, the Department of Health, or the Insurance Department, and which are not otherwise
             19064      declared by statute to be confidential;
             19065          (b) perform all marketing, eligibility, enrollment, member agreements, and
             19066      administrative claim payment functions relating to the pool;
             19067          (c) establish, administer, and operate a monthly premium billing procedure for
             19068      collection of premiums from enrollees;
             19069          (d) perform all necessary functions to assure timely payment of benefits to enrollees,

             19070      including:
             19071          (i) making information available relating to the proper manner of submitting a claim for
             19072      benefits to the pool administrator and distributing forms upon which submission shall be made;
             19073      and
             19074          (ii) evaluating the eligibility of each claim for payment by the pool;
             19075          (e) submit regular reports to the board regarding the operation of the pool, the
             19076      frequency, content, and form of which reports shall be determined by the board;
             19077          (f) following the close of each calendar year, determine net written and earned
             19078      premiums, the expense of administration, and the paid and incurred losses for the year and
             19079      submit a report of this information to the board, the commissioner, and the Division of Finance
             19080      on a form prescribed by the commissioner; and
             19081          (g) be paid as provided in the plan of operation for expenses incurred in the
             19082      performance of the pool administrator's services.
             19083          Section 395. Section 31A-29-111 is amended to read:
             19084           31A-29-111. Eligibility -- Limitations.
             19085          (1) (a) Except as provided in Subsection (1)(b), an individual who is not HIPAA
             19086      eligible is eligible for pool coverage if the individual:
             19087          (i) pays the established premium;
             19088          (ii) is a resident of this state; and
             19089          (iii) meets the health underwriting criteria under Subsection (5)(a).
             19090          (b) Notwithstanding Subsection (1)(a), an individual who is not HIPAA eligible is not
             19091      eligible for pool coverage if one or more of the following conditions apply:
             19092          (i) the individual is eligible for health care benefits under Medicaid or Medicare, except
             19093      as provided in Section 31A-29-112 ;
             19094          (ii) the individual has terminated coverage in the pool, unless:
             19095          (A) 12 months have elapsed since the termination date; or
             19096          (B) the individual demonstrates that creditable coverage has been involuntarily
             19097      terminated for any reason other than nonpayment of premium;

             19098          (iii) the pool has paid the maximum lifetime benefit to or on behalf of the individual;
             19099          (iv) the individual is an inmate of a public institution;
             19100          (v) the individual is eligible for a public health plan, as defined in federal regulations
             19101      adopted pursuant to 42 U.S.C. 300gg;
             19102          (vi) the individual's health condition does not meet the criteria established under
             19103      Subsection (5);
             19104          (vii) the individual is eligible for coverage under an employer group that offers health
             19105      insurance or a self-insurance arrangement to its eligible employees, dependents, or members as:
             19106          (A) an eligible employee;
             19107          (B) a dependent of an eligible employee; or
             19108          (C) a member;
             19109          (viii) the individual:
             19110          (A) has coverage substantially equivalent to a pool policy, as established by the board in
             19111      administrative rule, either as an insured or a covered dependent; or
             19112          (B) would be eligible for the substantially equivalent coverage if the individual elected
             19113      to obtain the coverage;
             19114          (ix) at the time of application, the individual has not resided in Utah for at least 12
             19115      consecutive months preceding the date of application; or
             19116          (x) the individual's employer pays any part of the individual's health insurance premium,
             19117      either as an insured or a dependent, for pool coverage.
             19118          (2) (a) Except as provided in Subsection (2)(b), an individual who is HIPAA eligible is
             19119      eligible for pool coverage if the individual:
             19120          (i) pays the established premium; and
             19121          (ii) is a resident of this state.
             19122          (b) Notwithstanding Subsection (2)(a), a HIPAA eligible individual is not eligible for
             19123      pool coverage if one or more of the following conditions apply:
             19124          (i) the individual is eligible for health care benefits under Medicaid or Medicare, except
             19125      as provided in Section 31A-29-112 ;

             19126          (ii) the individual is eligible for a public health plan, as defined in federal regulations
             19127      adopted pursuant to 42 U.S.C. 300gg;
             19128          (iii) the individual is covered under any other health insurance;
             19129          (iv) the individual is eligible for coverage under an employer group that offers health
             19130      insurance or self-insurance arrangements to its eligible employees, dependents, or members as:
             19131          (A) an eligible employee;
             19132          (B) a dependent of an eligible employee; or
             19133          (C) a member;
             19134          (v) the pool has paid the maximum lifetime benefit to or on behalf of the individual;
             19135          (vi) the individual is an inmate of a public institution; or
             19136          (vii) the individual's employer pays any part of the individual's health insurance
             19137      premium, either as an insured or a dependent, for pool coverage.
             19138          (3) (a) Notwithstanding Subsection (1)(b)(ix), if otherwise eligible under Subsection
             19139      (1)(a), an individual whose health insurance coverage from a state high risk pool with similar
             19140      coverage is terminated because of nonresidency in another state is eligible for coverage under
             19141      the pool subject to the conditions of Subsections (1)(b)(i) through (viii).
             19142          (b) Coverage sought under Subsection (3)(a) shall be applied for within 63 days after
             19143      the termination date of the previous high risk pool coverage.
             19144          (c) The effective date of this state's pool coverage shall be the date of termination of the
             19145      previous high risk pool coverage.
             19146          (d) The waiting period of an individual with a preexisting condition applying for
             19147      coverage under this chapter shall be waived:
             19148          (i) to the extent to which the waiting period was satisfied under a similar plan from
             19149      another state; and
             19150          (ii) if the other state's benefit limitation was not reached.
             19151          (4) (a) If an eligible individual applies for pool coverage within 30 days of being denied
             19152      coverage by an individual carrier, the effective date for pool coverage shall be no later than the
             19153      first day of the month following the date of submission of the completed insurance application

             19154      to the carrier.
             19155          (b) Notwithstanding Subsection (4)(a), for individuals eligible for coverage under
             19156      Subsection (3), the effective date shall be the date of termination of the previous high risk pool
             19157      coverage.
             19158          (5) (a) The board shall establish and adjust, as necessary, health underwriting criteria
             19159      based on:
             19160          (i) health condition; and
             19161          (ii) expected claims so that the expected claims are anticipated to remain within
             19162      available funding.
             19163          (b) The board, with approval of the commissioner, may contract with one or more
             19164      providers under [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code, to
             19165      develop underwriting criteria under Subsection (5)(a).
             19166          (c) If an individual is denied coverage by the pool under the criteria established in
             19167      Subsection (5)(a), the pool shall issue a certificate of insurability to the individual for coverage
             19168      under Subsection 31A-30-108 (3).
             19169          Section 396. Section 31A-29-116 is amended to read:
             19170           31A-29-116. Notice of availability.
             19171          The commissioner shall establish rules in accordance with [Title 63, Chapter 46a] Title
             19172      63G, Chapter 3, Utah Administrative Rulemaking Act, governing notice of availability which is
             19173      to be given by insurers to potential enrollees in the pool.
             19174          Section 397. Section 31A-30-106 is amended to read:
             19175           31A-30-106. Premiums -- Rating restrictions -- Disclosure.
             19176          (1) Premium rates for health benefit plans under this chapter are subject to the
             19177      provisions of this Subsection (1).
             19178          (a) The index rate for a rating period for any class of business may not exceed the index
             19179      rate for any other class of business by more than 20%.
             19180          (b) (i) For a class of business, the premium rates charged during a rating period to
             19181      covered insureds with similar case characteristics for the same or similar coverage, or the rates

             19182      that could be charged to such employers under the rating system for that class of business, may
             19183      not vary from the index rate by more than 30% of the index rate, except as provided in Section
             19184      31A-22-625 .
             19185          (ii) A covered carrier that offers individual and small employer health benefit plans may
             19186      use the small employer index rates to establish the rate limitations for individual policies, even if
             19187      some individual policies are rated below the small employer base rate.
             19188          (c) The percentage increase in the premium rate charged to a covered insured for a new
             19189      rating period, adjusted pro rata for rating periods less than a year, may not exceed the sum of
             19190      the following:
             19191          (i) the percentage change in the new business premium rate measured from the first day
             19192      of the prior rating period to the first day of the new rating period;
             19193          (ii) any adjustment, not to exceed 15% annually and adjusted pro rata for rating periods
             19194      of less than one year, due to the claim experience, health status, or duration of coverage of the
             19195      covered individuals as determined from the covered carrier's rate manual for the class of
             19196      business, except as provided in Section 31A-22-625 ; and
             19197          (iii) any adjustment due to change in coverage or change in the case characteristics of
             19198      the covered insured as determined from the covered carrier's rate manual for the class of
             19199      business.
             19200          (d) (i) Adjustments in rates for claims experience, health status, and duration from issue
             19201      may not be charged to individual employees or dependents.
             19202          (ii) Any adjustment described in Subsection (1)(d)(i) shall be applied uniformly to the
             19203      rates charged for all employees and dependents of the small employer.
             19204          (e) A covered carrier may use industry as a case characteristic in establishing premium
             19205      rates, provided that the highest rate factor associated with any industry classification does not
             19206      exceed the lowest rate factor associated with any industry classification by more than 15%.
             19207          (f) (i) Covered carriers shall apply rating factors, including case characteristics,
             19208      consistently with respect to all covered insureds in a class of business.
             19209          (ii) Rating factors shall produce premiums for identical groups that:

             19210          (A) differ only by the amounts attributable to plan design; and
             19211          (B) do not reflect differences due to the nature of the groups assumed to select
             19212      particular health benefit products.
             19213          (iii) A covered carrier shall treat all health benefit plans issued or renewed in the same
             19214      calendar month as having the same rating period.
             19215          (g) For the purposes of this Subsection (1), a health benefit plan that uses a restricted
             19216      network provision may not be considered similar coverage to a health benefit plan that does not
             19217      use such a network, provided that use of the restricted network provision results in substantial
             19218      difference in claims costs.
             19219          (h) The covered carrier may not, without prior approval of the commissioner, use case
             19220      characteristics other than:
             19221          (i) age;
             19222          (ii) gender;
             19223          (iii) industry;
             19224          (iv) geographic area;
             19225          (v) family composition; and
             19226          (vi) group size.
             19227          (i) (i) The commissioner may establish rules in accordance with [Title 63, Chapter 46a]
             19228      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to:
             19229          (A) implement this chapter; and
             19230          (B) assure that rating practices used by covered carriers are consistent with the
             19231      purposes of this chapter.
             19232          (ii) The rules described in Subsection (1)(i)(i) may include rules that:
             19233          (A) assure that differences in rates charged for health benefit products by covered
             19234      carriers are reasonable and reflect objective differences in plan design, not including differences
             19235      due to the nature of the groups assumed to select particular health benefit products;
             19236          (B) prescribe the manner in which case characteristics may be used by covered carriers;
             19237          (C) implement the individual enrollment cap under Section 31A-30-110 , including

             19238      specifying:
             19239          (I) the contents for certification;
             19240          (II) auditing standards;
             19241          (III) underwriting criteria for uninsurable classification; and
             19242          (IV) limitations on high risk enrollees under Section 31A-30-111 ; and
             19243          (D) establish the individual enrollment cap under Subsection 31A-30-110 (1).
             19244          (j) Before implementing regulations for underwriting criteria for uninsurable
             19245      classification, the commissioner shall contract with an independent consulting organization to
             19246      develop industry-wide underwriting criteria for uninsurability based on an individual's expected
             19247      claims under open enrollment coverage exceeding 200% of that expected for a standard
             19248      insurable individual with the same case characteristics.
             19249          (k) The commissioner shall revise rules issued for Sections 31A-22-602 and
             19250      31A-22-605 regarding individual accident and health policy rates to allow rating in accordance
             19251      with this section.
             19252          (2) For purposes of Subsection (1)(c)(i), if a health benefit product is a health benefit
             19253      product into which the covered carrier is no longer enrolling new covered insureds, the covered
             19254      carrier shall use the percentage change in the base premium rate, provided that the change does
             19255      not exceed, on a percentage basis, the change in the new business premium rate for the most
             19256      similar health benefit product into which the covered carrier is actively enrolling new covered
             19257      insureds.
             19258          (3) (a) A covered carrier may not transfer a covered insured involuntarily into or out of
             19259      a class of business.
             19260          (b) A covered carrier may not offer to transfer a covered insured into or out of a class
             19261      of business unless the offer is made to transfer all covered insureds in the class of business
             19262      without regard:
             19263          (i) to case characteristics;
             19264          (ii) claim experience;
             19265          (iii) health status; or

             19266          (iv) duration of coverage since issue.
             19267          (4) (a) Each covered carrier shall maintain at the covered carrier's principal place of
             19268      business a complete and detailed description of its rating practices and renewal underwriting
             19269      practices, including information and documentation that demonstrate that the covered carrier's
             19270      rating methods and practices are:
             19271          (i) based upon commonly accepted actuarial assumptions; and
             19272          (ii) in accordance with sound actuarial principles.
             19273          (b) (i) Each covered carrier shall file with the commissioner, on or before April 1 of
             19274      each year, in a form, manner, and containing such information as prescribed by the
             19275      commissioner, an actuarial certification certifying that:
             19276          (A) the covered carrier is in compliance with this chapter; and
             19277          (B) the rating methods of the covered carrier are actuarially sound.
             19278          (ii) A copy of the certification required by Subsection (4)(b)(i) shall be retained by the
             19279      covered carrier at the covered carrier's principal place of business.
             19280          (c) A covered carrier shall make the information and documentation described in this
             19281      Subsection (4) available to the commissioner upon request.
             19282          (d) Records submitted to the commissioner under this section shall be maintained by the
             19283      commissioner as protected records under [Title 63, Chapter 2] Title 63G, Chapter 2,
             19284      Government Records Access and Management Act.
             19285          Section 398. Section 31A-30-106.7 is amended to read:
             19286           31A-30-106.7. Surcharge for groups changing carriers.
             19287          (1) (a) Except as provided in Subsection (1)(b), if prior notice is given, a covered
             19288      carrier may impose upon a small group that changes coverage to that carrier from another
             19289      carrier a one-time surcharge of up to 25% of the annualized premium that the carrier could
             19290      otherwise charge under Section 31A-30-106 .
             19291          (b) A covered carrier may not impose the surcharge described in Subsection (1)(a) if:
             19292          (i) the change in carriers occurs on the anniversary of the plan year, as defined in
             19293      Section 31A-1-301 ;

             19294          (ii) the previous coverage was terminated under Subsection 31A-30-107 (3)(e); or
             19295          (iii) employees from an existing group form a new business.
             19296          (2) A covered carrier may not impose the surcharge described in Subsection (1) if the
             19297      offer to cover the group occurs at a time other than the anniversary of the plan year because:
             19298          (a) (i) the application for coverage is made prior to the anniversary date in accordance
             19299      with the covered carrier's published policies; and
             19300          (ii) the offer to cover the group is not issued until after the anniversary date; or
             19301          (b) (i) the application for coverage is made prior to the anniversary date in accordance
             19302      with the covered carrier's published policies; and
             19303          (ii) additional underwriting or rating information requested by the covered carrier is not
             19304      received until after the anniversary date.
             19305          (3) If a covered carrier chooses to apply a surcharge under Subsection (1), the
             19306      application of the surcharge and the criteria for incurring or avoiding the surcharge shall be
             19307      clearly stated in the:
             19308          (a) written application materials provided to the applicant at the time of application; and
             19309          (b) written producer guidelines.
             19310          (4) The commissioner shall adopt rules in accordance with [Title 63, Chapter 46a] Title
             19311      63G, Chapter 3, Utah Administrative Rulemaking Act, to ensure compliance with this section.
             19312          Section 399. Section 31A-31-104 is amended to read:
             19313           31A-31-104. Disclosure of information.
             19314          (1) (a) Subject to Subsection (2), upon written request by an insurer to an authorized
             19315      agency, the authorized agency may release to the insurer information or evidence that is relevant
             19316      to any suspected insurance fraud.
             19317          (b) Upon written request by an authorized agency to an insurer, the insurer or an agent
             19318      authorized by the insurer to act on the insurer's behalf shall release to the authorized agency
             19319      information or evidence that is relevant to any suspected insurance fraud.
             19320          (2) (a) Any information or evidence furnished to an authorized agency under this
             19321      section may be classified as a protected record in accordance with Subsection [ 63-2-304 ]

             19322      63G-2-305 (9).
             19323          (b) Any information or evidence furnished to an insurer under this section is not subject
             19324      to discovery in a civil proceeding unless, after reasonable notice to any insurer, agent, or any
             19325      authorized agency that has an interest in the information and subsequent hearing, a court
             19326      determines that the public interest and any ongoing criminal investigation will not be
             19327      jeopardized by the disclosure.
             19328          (c) An insurer shall report to the department agency terminations based upon a violation
             19329      of this chapter.
             19330          Section 400. Section 31A-31-106 is amended to read:
             19331           31A-31-106. Disciplinary action.
             19332          (1) If, after giving notice and a hearing conducted pursuant to [Title 63, Chapter 46b]
             19333      Title 63G, Chapter 4, Administrative Procedures Act, the commissioner finds by a
             19334      preponderance of the evidence that a person licensed under Title 31A has committed a
             19335      fraudulent insurance act, the commissioner may suspend or revoke the license issued under Title
             19336      31A.
             19337          (2) If the appropriate licensing authority finds by a preponderance of the evidence that a
             19338      service provider violated Section 31A-31-103 , the service provider is subject to revocation or
             19339      suspension of the service provider's license.
             19340          (3) The commissioner may notify the appropriate licensing authority of conduct by a
             19341      service provider that the commissioner believes may constitute a fraudulent insurance act.
             19342          Section 401. Section 31A-31-108 is amended to read:
             19343           31A-31-108. Assessment of insurers.
             19344          (1) For purposes of this section:
             19345          (a) The commissioner shall by rule made in accordance with [Title 63, Chapter 46a]
             19346      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, define:
             19347          (i) "annuity consideration";
             19348          (ii) "membership fees";
             19349          (iii) "other fees";

             19350          (iv) "deposit-type contract funds"; and
             19351          (v) "other considerations in Utah."
             19352          (b) "Utah consideration" means:
             19353          (i) the total premiums written for Utah risks;
             19354          (ii) annuity consideration;
             19355          (iii) membership fees collected by the insurer;
             19356          (iv) other fees collected by the insurer;
             19357          (v) deposit-type contract funds; and
             19358          (vi) other considerations in Utah.
             19359          (c) "Utah risks" means insurance coverage on the lives, health, or against the liability of
             19360      persons residing in Utah, or on property located in Utah, other than property temporarily in
             19361      transit through Utah.
             19362          (2) To implement this chapter, Section 34A-2-110 , and Section 76-6-521 , the
             19363      commissioner may assess each admitted insurer and each nonadmitted insurer transacting
             19364      insurance under Chapter 15, Parts 1 and 2, an annual fee as follows:
             19365          (a) $150 for an insurer if the sum of the Utah consideration for that insurer is less than
             19366      or equal to $1,000,000;
             19367          (b) $400 for an insurer if the sum of the Utah consideration for that insurer is greater
             19368      than $1,000,000 but is less than or equal to $2,500,000;
             19369          (c) $700 for an insurer if the sum of the Utah consideration for that insurer is greater
             19370      than $2,500,000 but is less than or equal to $5,000,000;
             19371          (d) $1,350 for an insurer if the sum of the Utah consideration for that insurer is greater
             19372      than $5,000,000 but less than or equal to $10,000,000;
             19373          (e) $5,150 for an insurer if the sum of the Utah consideration for that insurer is greater
             19374      than $10,000,000 but less than $50,000,000; and
             19375          (f) $12,350 for an insurer if the sum of the Utah consideration for that insurer equals or
             19376      exceeds $50,000,000.
             19377          (3) (a) All money received by the state under this section shall be deposited in the

             19378      General Fund as a dedicated credit of the department for the purpose of providing funds to pay
             19379      for any costs and expenses incurred by the department in the administration, investigation, and
             19380      enforcement of this chapter, Section 34A-2-110 , and Section 76-6-521 .
             19381          (b) All monies received by the department to pay for the costs and expenses incurred by
             19382      the department in the administration, investigation, and enforcement of this chapter, Section
             19383      34A-2-110 , and Section 76-6-521 shall be nonlapsing.
             19384          Section 402. Section 31A-33-104 is amended to read:
             19385           31A-33-104. Workers' Compensation Fund exempted.
             19386          (1) The Workers' Compensation Fund is exempt from the provisions of:
             19387          (a) Title 52, Chapter 4, Open and Public Meetings Act;
             19388          (b) [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             19389      Management Act; and
             19390          (c) Title 63A, Utah Administrative Services Code.
             19391          (2) The board may specifically exempt the Workers' Compensation Fund from any
             19392      provisions of:
             19393          (a) Title 67, Chapter 19, Utah State Personnel Management Act; and
             19394          (b) [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code.
             19395          (3) The provisions of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             19396      Procedures Act, do not govern the initial determination of any person's eligibility for benefits
             19397      under Title 34A, Chapter 2, Workers' Compensation Act, and Title 34A, Chapter 3, Utah
             19398      Occupational Disease Act.
             19399          Section 403. Section 31A-33-107 is amended to read:
             19400           31A-33-107. Duties of board -- Creation of subsidiaries -- Entering into joint
             19401      enterprises.
             19402          (1) The board shall:
             19403          (a) appoint a chief executive officer to administer the Workers' Compensation Fund;
             19404          (b) receive and act upon financial, management, and actuarial reports covering the
             19405      operations of the Workers' Compensation Fund;

             19406          (c) ensure that the Workers' Compensation Fund is administered according to law;
             19407          (d) examine and approve an annual operating budget for the Workers' Compensation
             19408      Fund;
             19409          (e) serve as investment trustees and fiduciaries of the Injury Fund;
             19410          (f) receive and act upon recommendations of the chief executive officer;
             19411          (g) develop broad policy for the long-term operation of the Workers' Compensation
             19412      Fund, consistent with its mission and fiduciary responsibility;
             19413          (h) subject to Chapter 19a, Part 4, Workers' Compensation Rates, approve any rating
             19414      plans that would modify a policyholder's premium;
             19415          (i) subject to Chapter 19a, Part 4, Workers' Compensation Rates, approve the amount
             19416      of deviation, if any, from standard insurance rates;
             19417          (j) approve the amount of the dividends, if any, to be returned to policyholders;
             19418          (k) adopt a procurement policy consistent with the provisions of [Title 63, Chapter 56]
             19419      Title 63G, Chapter 6, Utah Procurement Code;
             19420          (l) develop and publish an annual report to policyholders, the governor, the Legislature,
             19421      and interested parties that describes the financial condition of the Injury Fund, including a
             19422      statement of expenses and income and what measures were taken or will be necessary to keep
             19423      the Injury Fund actuarially sound;
             19424          (m) establish a fiscal year;
             19425          (n) determine and establish an actuarially sound price for insurance offered by the fund;
             19426          (o) establish conflict of interest requirements that govern the board, officers, and
             19427      employees;
             19428          (p) establish compensation and reasonable expenses to be paid to directors on the board
             19429      subject to the requirements of Section 31A-33-106 , so that the board may not approve
             19430      compensation that exceeds the amount described in Subsection 31A-33-106 (18)(a)(i)(B); and
             19431          (q) perform all other acts necessary for the policymaking and oversight of the Workers'
             19432      Compensation Fund.
             19433          (2) Subject to board review and its responsibilities under Subsection (1)(e), the board

             19434      may delegate authority to make daily investment decisions.
             19435          (3) The fund may form or acquire a subsidiary or enter into a joint enterprise:
             19436          (a) only if that action is approved by the board; and
             19437          (b) subject to the limitations in Section 31A-33-103.5 .
             19438          Section 404. Section 31A-34-104 is amended to read:
             19439           31A-34-104. Alliance -- Required license.
             19440          (1) A person must be licensed as an alliance pursuant to this chapter to directly or
             19441      indirectly make available or otherwise arrange for health insurance through multiple unaffiliated
             19442      insurers through the use of coordinated actuarial models, coordinated underwriting, or
             19443      coordinated marketing methodologies.
             19444          (2) (a) A person may not hold itself out as a health insurance purchasing alliance,
             19445      purchasing alliance, health insurance purchasing cooperative, purchasing cooperative, or
             19446      otherwise use a similar name unless licensed by the commissioner as an alliance.
             19447          (b) Notwithstanding Subsection (2)(a), a person may hold itself out as a voluntary
             19448      health insurance purchasing association without being licensed by the commissioner as provided
             19449      in Section 31A-34-105 .
             19450          (3) To apply for licensure as an alliance, a person shall complete an application in a
             19451      form designated by the commissioner and file it with the commissioner, together with the
             19452      applicable filing fees determined by the commissioner under Section [ 63-38-3.2 ] 63J-1-303 .
             19453          Section 405. Section 31A-35-301 is amended to read:
             19454           31A-35-301. The commissioner's authority.
             19455          (1) The commissioner shall:
             19456          (a) make rules as necessary for the administration of this chapter;
             19457          (b) with information as provided by the board, issue or deny licensure under this
             19458      chapter;
             19459          (c) take action regarding a license, including suspension or revocation; and
             19460          (d) maintain and publish a current list of licensed bail bond surety companies and
             19461      producers.

             19462          (2) The commissioner may establish fees for the issuance, renewal, and reinstatement of
             19463      a bail bond surety company license in accordance with Section [ 63-38-3.2 ] 63J-1-303 .
             19464          Section 406. Section 31A-35-401 is amended to read:
             19465           31A-35-401. Requirement for license or certificate of authority -- Process -- Fees
             19466      -- Limitations.
             19467          (1) (a) A person may not engage in the bail bond surety insurance business unless that
             19468      person:
             19469          (i) is a bail bond surety company licensed under this chapter;
             19470          (ii) is a surety insurer that is granted a certificate under this section in the same manner
             19471      as other insurers doing business in this state are granted certificates of authority under this title;
             19472      or
             19473          (iii) is a bail bond producer licensed in accordance with this section.
             19474          (b) A bail bond surety company shall be licensed under this chapter as an agency.
             19475          (c) A bail bond producer shall be licensed under Chapter 23a, Insurance Marketing -
             19476      Licensing Producers, Consultants, and Reinsurance Intermediaries, as a limited lines producer.
             19477          (2) A person applying for a bail bond surety company license under this chapter shall
             19478      submit to the commissioner:
             19479          (a) a completed application form as prescribed by the commissioner;
             19480          (b) a fee as determined by the commissioner in accordance with Section [ 63-38-3.2 ]
             19481      63J-1-303 ; and
             19482          (c) any additional information required by rule.
             19483          (3) Fees required under this section are not refundable.
             19484          (4) Fees collected from a bail bond surety company shall be deposited in a restricted
             19485      account created in Section 31A-35-407 .
             19486          (5) (a) A bail bond surety company shall be domiciled in Utah.
             19487          (b) A bail bond producer shall be a resident of Utah.
             19488          (c) A foreign surety insurer that is granted a certificate to issue bail bonds may only
             19489      issue bail bonds through a bail bond surety company licensed under this chapter.

             19490          Section 407. Section 31A-35-405 is amended to read:
             19491           31A-35-405. Issuance of license -- Denial -- Right of appeal.
             19492          (1) Upon a determination by the board that a person applying for a bail bond surety
             19493      company license meets the requirements for issuance of a license under this chapter, the
             19494      commissioner shall issue to that person a bail bond surety company license.
             19495          (2) (a) If the commissioner denies an application for a bail bond surety company license
             19496      under this chapter, the commissioner shall provide prompt written notification to the person
             19497      applying for licensure:
             19498          (i) stating the grounds for denial; and
             19499          (ii) notifying the person applying for licensure as a bail bond company that:
             19500          (A) the person is entitled to a hearing if that person wants to contest the denial; and
             19501          (B) if the person wants a hearing, the person shall submit the request in writing to the
             19502      commissioner within 30 days after the issuance of the denial.
             19503          (b) The hearing described in Subsection (2)(a) shall be scheduled not later than 60 days
             19504      after the commissioner's receipt of the request.
             19505          (c) The department shall hear the appeal, and may:
             19506          (i) return the case to the commissioner for reconsideration;
             19507          (ii) modify the commissioner's decision; or
             19508          (iii) reverse the commissioner's decision.
             19509          (3) A decision under this section is subject to review under [Title 63, Chapter 46b] Title
             19510      63G, Chapter 4, Administrative Procedures Act.
             19511          Section 408. Section 31A-35-406 is amended to read:
             19512           31A-35-406. Renewal and reinstatement.
             19513          (1) (a) To renew its license under this chapter, on or before the last day of the month in
             19514      which the license expires a bail bond surety company shall:
             19515          (i) complete and submit a renewal application to the department; and
             19516          (ii) pay the department the applicable renewal fee established in accordance with
             19517      Section [ 63-38-3.2 ] 63J-1-303 .

             19518          (b) A bail bond surety company shall renew its license under this chapter annually as
             19519      established by department rule, regardless of when the license is issued.
             19520          (2) A bail bond surety company may renew a bail bond surety company license not
             19521      renewed under Subsection (1) within 30 days after the expiration date by:
             19522          (a) submitting a renewal application required by Subsection (1); and
             19523          (b) paying a late renewal fee established in accordance with Section [ 63-38-3.2 ]
             19524      63J-1-303 .
             19525          (3) A bail bond surety company may apply for reinstatement of an expired bail bond
             19526      surety company license between 31 days and six months following the expiration of the license
             19527      under Subsection (1) by:
             19528          (a) submitting the renewal application required by Subsection (1); and
             19529          (b) paying a license reinstatement fee established in accordance with Section [ 63-38-3.2 ]
             19530      63J-1-303 .
             19531          (4) If a bail bond surety company license has been expired for more than six months, the
             19532      person applying for reinstatement of the bail bond surety license shall:
             19533          (a) submit an application form to the commissioner; and
             19534          (b) pay the application fee established in accordance with Section [ 63-38-3.2 ]
             19535      63J-1-303 .
             19536          (5) If a bail bond surety company license is suspended, the applicant may not submit an
             19537      application for a bail bond surety company license until after the end of the period of
             19538      suspension.
             19539          (6) Fees collected under this section shall be deposited in the restricted account created
             19540      in Section 31A-35-407 .
             19541          Section 409. Section 31A-35-502 is amended to read:
             19542           31A-35-502. Notification of violation of chapter.
             19543          If the commissioner has reason to believe a person licensed as a bail bond surety
             19544      company or a bail bond producer has violated this chapter, written notice shall be sent to that
             19545      person, advising the person of:

             19546          (1) the alleged violation;
             19547          (2) the commissioner's authority to take action against the person's license;
             19548          (3) the person's right to an administrative hearing under [Title 63, Chapter 46b] Title
             19549      63G, Chapter 4, Administrative Procedures Act; and
             19550          (4) the period of time within which the hearing described in Subsection (3) shall be
             19551      requested if the person requests a hearing.
             19552          Section 410. Section 31A-36-104 is amended to read:
             19553           31A-36-104. License requirements, revocation, and denial.
             19554          (1) (a) A person may not, without first obtaining a license from the commissioner,
             19555      operate in or from this state as:
             19556          (i) a viatical settlement provider; or
             19557          (ii) a viatical settlement producer.
             19558          (b) Viatical settlements are included within the scope of the life insurance producer line
             19559      of authority.
             19560          (2) (a) To obtain a license as a viatical settlement provider, an applicant shall:
             19561          (i) comply with Section 31A-23a-117 ;
             19562          (ii) file an application; and
             19563          (iii) pay the license fee.
             19564          (b) If an applicant complies with Subsection (2)(a), the commissioner shall investigate
             19565      the applicant and issue a license if the commissioner finds that the applicant is competent and
             19566      trustworthy to engage in the business of providing viatical settlements by experience, training,
             19567      or education.
             19568          (3) In addition to the requirements in Sections 31A-23a-111 , 31A-23a-112 and
             19569      31A-23a-113 , the commissioner may refuse to issue, suspend, revoke, or refuse to renew the
             19570      license of a viatical settlement provider or viatical settlement producer if the commissioner finds
             19571      that:
             19572          (a) a viatical settlement provider demonstrates a pattern of unreasonable payments to
             19573      viators;

             19574          (b) the applicant, the licensee, an officer, partner, or member, or key management
             19575      personnel:
             19576          (i) has, whether or not a judgment of conviction has been entered by the court, been
             19577      found guilty of, or pleaded guilty or nolo contendere to:
             19578          (A) a felony; or
             19579          (B) a misdemeanor involving fraud or moral turpitude;
             19580          (ii) violated any provision of this chapter; or
             19581          (iii) has been subject to a final administrative action by another state or federal
             19582      jurisdiction.
             19583          (c) a viatical settlement provider has entered into a viatical settlement not approved
             19584      under this chapter;
             19585          (d) a viatical settlement provider has failed to honor obligations of a viatical settlement;
             19586          (e) a viatical settlement provider has assigned, transferred, or pledged a viaticated
             19587      policy to a person other than:
             19588          (i) a viatical settlement provider licensed under this chapter;
             19589          (ii) a viatical settlement purchaser;
             19590          (iii) an accredited investor as defined in Regulation D, Rule 501, 17 C.F.R. Sec.
             19591      230.501;
             19592          (iv) a qualified institutional buyer as defined in Rule 144A, 17 C.F.R. Sec. 230.144A;
             19593          (v) a financing entity;
             19594          (vi) a special purpose entity; or
             19595          (vii) a related provider trust; or
             19596          (f) a viatical settlement provider has failed to maintain a standard set forth in Subsection
             19597      (2)(b).
             19598          (4) If the commissioner denies a license application or suspends, revokes, or refuses to
             19599      renew the license of a viatical settlement provider or viatical settlement producer, the
             19600      commissioner shall conduct an adjudicative proceeding under [Title 63, Chapter 46b] Title 63G,
             19601      Chapter 4, Administrative Procedures Act.

             19602          Section 411. Section 31A-36-115 is amended to read:
             19603           31A-36-115. Confidentiality.
             19604          (1) The following shall be classified as protected records under [Title 63, Chapter 2]
             19605      Title 63G, Chapter 2, Government Records Access and Management Act:
             19606          (a) a document or information furnished pursuant to Section 31A-36-114 ; and
             19607          (b) a document or information obtained by the commissioner in an investigation of a
             19608      violation of Section 31A-36-113 .
             19609          (2) Subsection (1) does not prohibit the commissioner from disclosing documents or
             19610      evidence so furnished or obtained:
             19611          (a) in an administrative or judicial proceeding to enforce laws administered by the
             19612      commissioner;
             19613          (b) to federal, state, or local law enforcement or regulatory agencies;
             19614          (c) to an organization established to detect and prevent fraudulent viatical settlement
             19615      acts;
             19616          (d) to the National Association of Insurance Commissioners; or
             19617          (e) to a person engaged in the business of viatical settlements that is aggrieved by the
             19618      violation.
             19619          (3) Disclosure of a document or evidence under Subsection (2) does not abrogate or
             19620      modify the privilege granted in Subsection (1).
             19621          Section 412. Section 31A-36-117 is amended to read:
             19622           31A-36-117. Antifraud initiatives.
             19623          (1) The following shall establish and maintain antifraud initiatives which are reasonably
             19624      calculated to prevent, detect, and assist in the prosecution of violations of Section 31A-36-113 :
             19625          (a) a viatical settlement provider; and
             19626          (b) an agency that is a viatical settlement producer.
             19627          (2) The commissioner may order, or a licensee may request and the commissioner may
             19628      approve, modifications of the measures otherwise required under this section, more or less
             19629      restrictive than those measures, as necessary to protect against fraud.

             19630          (3) Antifraud initiatives shall include:
             19631          (a) fraud investigators, that may be either:
             19632          (i) employees of a viatical settlement provider or viatical settlement producer; or
             19633          (ii) independent contractors;
             19634          (b) an antifraud plan submitted to the commissioner, which shall include:
             19635          (i) a description of the procedures for:
             19636          (A) detecting and investigating possible violations of Section 31A-36-113 ; and
             19637          (B) resolving material inconsistencies between medical records and applications for
             19638      insurance;
             19639          (ii) a description of the procedures for reporting possible violations to the
             19640      commissioner;
             19641          (iii) a description of the plan for educating and training underwriters and other
             19642      personnel against fraud; and
             19643          (iv) a description or chart of the organizational arrangement of the personnel
             19644      responsible for detecting and investigating possible violations of Section 31A-36-113 and for
             19645      resolving material inconsistencies between medical records and applications for insurance.
             19646          (4) A plan submitted to the commissioner shall be classified as a protected record under
             19647      [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act.
             19648          Section 413. Section 31A-36-119 is amended to read:
             19649           31A-36-119. Authority to make rules.
             19650          In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             19651      Rulemaking Act, the commissioner may adopt rules to:
             19652          (1) establish the requirements for the annual statement required under Section
             19653      31A-36-106 ;
             19654          (2) establish standards for evaluating the reasonableness of payments under viatical
             19655      settlements;
             19656          (3) establish appropriate licensing requirements, fees, and standards for continued
             19657      licensure for:

             19658          (a) a viatical settlement provider; and
             19659          (b) a viatical settlement producer;
             19660          (4) require a bond or otherwise ensure financial accountability of:
             19661          (a) a viatical settlement provider; and
             19662          (b) a viatical settlement producer;
             19663          (5) govern the relationship of insurers with a viatical settlement provider or viatical
             19664      settlement producer during the viatication of a policy;
             19665          (6) determine the specific disclosures required under Section 31A-36-108 ;
             19666          (7) determine whether advertising for viatical settlements violates Section 31A-36-112 ;
             19667          (8) determine the information to be provided to the commissioner under Section
             19668      31A-36-114 and the manner of providing the information;
             19669          (9) determine additional acts or practices that are prohibited under Section 31A-36-111 ;
             19670          (10) establish payment requirements for the payments in Section 31A-36-110 ; and
             19671          (11) establish the filing procedure for the forms listed in Subsection 31A-36-105 (1).
             19672          Section 414. Section 31A-37-106 is amended to read:
             19673           31A-37-106. Authority to make rules -- Authority to issue orders.
             19674          (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             19675      Administrative Rulemaking Act, the commissioner may adopt rules to:
             19676          (a) determine circumstances under which a branch captive insurance company is not
             19677      required to be a pure captive insurance company;
             19678          (b) determine any statement, document, or information a captive insurance company
             19679      must provide to the commissioner to obtain a certificate of authority;
             19680          (c) determine any factors a captive insurance company shall provide evidence of under
             19681      Subsection 31A-37-202 (4)(c);
             19682          (d) prescribe capital requirements for a captive insurance company in addition to those
             19683      required under Section 31A-37-204 based on the type, volume, and nature of insurance business
             19684      transacted by the captive insurance company;
             19685          (e) establish:

             19686          (i) the amount of capital or surplus required to be retained under Subsection
             19687      31A-37-205 (4) at the payment of a dividend or other distribution by a captive insurance
             19688      company; or
             19689          (ii) a formula to determine the amount described in Subsection 31A-37-205 (4);
             19690          (f) waive or modify the requirements for public notice and hearing for any of the
             19691      following by a captive insurance company:
             19692          (i) merger;
             19693          (ii) consolidation;
             19694          (iii) conversion;
             19695          (iv) mutualization; or
             19696          (v) redomestication;
             19697          (g) approve the use of alternative reliable methods of valuation and rating for:
             19698          (i) an association captive insurance company;
             19699          (ii) a sponsored captive insurance company; or
             19700          (iii) an industrial insured group;
             19701          (h) prohibit or limit an investment that threatens the solvency or liquidity of:
             19702          (i) a pure captive insurance company; or
             19703          (ii) an industrial insured captive insurance company;
             19704          (i) determine the financial reports a sponsored captive insurance company shall annually
             19705      file with the commissioner;
             19706          (j) determine the required forms and reports under Section 31A-37-501 ; and
             19707          (k) establish standards to ensure that a parent or affiliate of a pure captive insurance
             19708      company is able to exercise control of the risk management function of any controlled
             19709      unaffiliated business to be insured by the pure captive insurance company.
             19710          (2) Notwithstanding Subsection (1)(k), until the commissioner adopts the rules
             19711      authorized under Subsection (1)(k), the commissioner may by temporary order grant authority
             19712      to a pure captive insurance company to insure risks.
             19713          (3) The commissioner may issue prohibitory, mandatory, and other orders relating to

             19714      captive insurance companies as necessary to enable the commissioner to secure compliance with
             19715      this chapter.
             19716          Section 415. Section 31A-37-202 is amended to read:
             19717           31A-37-202. Permissive areas of insurance.
             19718          (1) (a) Except as provided in Subsection (1)(b), when permitted by its articles of
             19719      incorporation or charter, a captive insurance company may apply to the commissioner for a
             19720      certificate of authority to do all insurance authorized by this title except workers' compensation
             19721      insurance.
             19722          (b) Notwithstanding Subsection (1)(a):
             19723          (i) a pure captive insurance company may not insure any risks other than those of its:
             19724          (A) parent and affiliates;
             19725          (B) controlled unaffiliated business; or
             19726          (C) a combination of Subsections (1)(b)(i)(A) and (B);
             19727          (ii) an association captive insurance company may not insure any risks other than those
             19728      of the:
             19729          (A) member organizations of its association; and
             19730          (B) affiliates of the member organizations of its association;
             19731          (iii) an industrial insured captive insurance company may not insure any risks other than
             19732      those of the:
             19733          (A) industrial insureds that comprise the industrial insured group; and
             19734          (B) affiliates of the industrial insureds that comprise the industrial insured group;
             19735          (iv) a special purpose captive insurance company may only insure the risk of its parent;
             19736          (v) a captive insurance company may not provide personal motor vehicle or
             19737      homeowner's insurance coverage or any component of these coverages; and
             19738          (vi) a captive insurance company may not accept or cede reinsurance except as
             19739      provided in Section 31A-37-303 .
             19740          (c) Notwithstanding Subsection (1)(b)(iv), for risks approved by the commissioner a
             19741      special purpose captive insurance company may provide:

             19742          (i) insurance;
             19743          (ii) reinsurance; or
             19744          (iii) both insurance and reinsurance.
             19745          (2) To conduct insurance business in this state a captive insurance company shall:
             19746          (a) obtain from the commissioner a certificate of authority authorizing it to conduct
             19747      insurance business in this state;
             19748          (b) hold at least once each year in this state:
             19749          (i) a board of directors meeting; or
             19750          (ii) in the case of a reciprocal insurer, a subscriber's advisory committee meeting;
             19751          (c) maintain in this state:
             19752          (i) the principal place of business of the captive insurance company; or
             19753          (ii) in the case of a branch captive insurance company, the principal place of business
             19754      for the branch operations of the branch captive insurance company; and
             19755          (d) except as provided in Subsection (3), appoint a resident registered agent to accept
             19756      service of process and to otherwise act on behalf of the captive insurance company in this state.
             19757          (3) Notwithstanding Subsection (2)(d), in the case of a captive insurance company
             19758      formed as a corporation or a reciprocal insurer, whenever the registered agent cannot with
             19759      reasonable diligence be found at the registered office of the captive insurance company, the
             19760      commissioner shall be an agent of the captive insurance company upon whom any process,
             19761      notice, or demand may be served.
             19762          (4) (a) Before receiving a certificate of authority, a captive insurance company:
             19763          (i) formed as a corporation shall file with the commissioner:
             19764          (A) a certified copy of:
             19765          (I) articles of incorporation or the charter of the corporation; and
             19766          (II) bylaws of the corporation;
             19767          (B) a statement under oath of the president and secretary of the corporation showing
             19768      the financial condition of the corporation; and
             19769          (C) any other statement or document required by the commissioner under Section

             19770      31A-37-106 ;
             19771          (ii) formed as a reciprocal shall:
             19772          (A) file with the commissioner:
             19773          (I) a certified copy of the power of attorney of the attorney-in-fact of the reciprocal;
             19774          (II) a certified copy of the subscribers' agreement of the reciprocal;
             19775          (III) a statement under oath of the attorney-in-fact of the reciprocal showing the
             19776      financial condition of the reciprocal; and
             19777          (IV) any other statement or document required by the commissioner under Section
             19778      31A-37-106 ; and
             19779          (B) submit to the commissioner for approval a description of the:
             19780          (I) coverages;
             19781          (II) deductibles;
             19782          (III) coverage limits;
             19783          (IV) rates; and
             19784          (V) any other information the commissioner requires under Section 31A-37-106 .
             19785          (b) (i) If there is a subsequent material change in an item in the description required
             19786      under Subsection (4)(a)(ii)(B) for a reciprocal captive insurance company, the reciprocal captive
             19787      insurance company shall submit to the commissioner for approval an appropriate revision to the
             19788      description required under Subsection (4)(a)(ii)(B).
             19789          (ii) A reciprocal captive insurance company that is required to submit a revision under
             19790      Subsection (4)(b)(i) may not offer any additional kinds of insurance until the commissioner
             19791      approves a revision of the description.
             19792          (iii) A reciprocal captive insurance company shall inform the commissioner of any
             19793      material change in rates within 30 days of the adoption of the change.
             19794          (c) In addition to the information required by Subsection (4)(a), an applicant captive
             19795      insurance company shall file with the commissioner evidence of:
             19796          (i) the amount and liquidity of the assets of the applicant captive insurance company
             19797      relative to the risks to be assumed by the applicant captive insurance company;

             19798          (ii) the adequacy of the expertise, experience, and character of the person who will
             19799      manage the applicant captive insurance company;
             19800          (iii) the overall soundness of the plan of operation of the applicant captive insurance
             19801      company;
             19802          (iv) the adequacy of the loss prevention programs of the applicant captive insurance
             19803      company's parent, member organizations, or industrial insureds, as applicable; and
             19804          (v) any other factors the commissioner:
             19805          (A) adopts by rule under Section 31A-37-106 ; and
             19806          (B) considers relevant in ascertaining whether the applicant captive insurance company
             19807      will be able to meet the policy obligations of the applicant captive insurance company.
             19808          (d) In addition to the information required by Subsections (4)(a), (b), and (c), an
             19809      applicant sponsored captive insurance company shall file with the commissioner:
             19810          (i) a business plan at the level of detail required by the commissioner under Section
             19811      31A-37-106 demonstrating:
             19812          (A) the manner in which the applicant sponsored captive insurance company will
             19813      account for the losses and expenses of each protected cell; and
             19814          (B) the manner in which the applicant sponsored captive insurance company will report
             19815      to the commissioner the financial history, including losses and expenses, of each protected cell;
             19816          (ii) a statement acknowledging that all financial records of the applicant sponsored
             19817      captive insurance company, including records pertaining to any protected cell, shall be made
             19818      available for inspection or examination by the commissioner;
             19819          (iii) any contract or sample contract between the applicant sponsored captive insurance
             19820      company and any participant; and
             19821          (iv) evidence that expenses will be allocated to each protected cell in an equitable
             19822      manner.
             19823          (e) Information submitted pursuant to this Subsection (4) shall be classified as a
             19824      protected record under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access
             19825      and Management Act.

             19826          (f) Notwithstanding [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             19827      Access and Management Act, the commissioner may disclose information submitted pursuant to
             19828      this Subsection (4) to a public official having jurisdiction over the regulation of insurance in
             19829      another state if:
             19830          (i) the public official receiving the information agrees in writing to maintain the
             19831      confidentiality of the information; and
             19832          (ii) the laws of the state in which the public official serves require the information to be
             19833      confidential.
             19834          (g) Subsections (4)(e) and (4)(f) do not apply to information provided by an industrial
             19835      insured captive insurance company insuring the risks of an industrial insured group.
             19836          (5) (a) A captive insurance company shall pay to the department the following
             19837      nonrefundable fees established by the department under Sections 31A-3-103 and [ 63-38-3.2 ]
             19838      63J-1-303 :
             19839          (i) a fee for examining, investigating, and processing, by department employees, of an
             19840      application for a certificate of authority made by a captive insurance company;
             19841          (ii) a fee for obtaining a certificate of authority for the year the captive insurance
             19842      company is issued a certificate of authority by the department; and
             19843          (iii) a certificate of authority renewal fee.
             19844          (b) The commissioner may retain legal, financial, and examination services from outside
             19845      the department to perform the services under Subsection (5)(a) and Section 31A-37-502 and
             19846      charge the reasonable cost of those services against the applicant captive insurance company.
             19847          (6) If the commissioner is satisfied that the documents and statements filed by the
             19848      applicant captive insurance company comply with the provisions of this chapter, the
             19849      commissioner may grant a certificate of authority authorizing the company to do insurance
             19850      business in this state.
             19851          (7) A certificate of authority granted under this section expires annually and must be
             19852      renewed by July 1 of each year.
             19853          Section 416. Section 31A-37-503 is amended to read:

             19854           31A-37-503. Classification and use of records.
             19855          (1) The following shall be classified as a protected record under [Title 63, Chapter 2]
             19856      Title 63G, Chapter 2, Government Records Access and Management Act:
             19857          (a) examination reports under this section;
             19858          (b) preliminary examination reports or results under this section;
             19859          (c) working papers for an examination conducted under this section;
             19860          (d) recorded information for an examination conducted under this section; and
             19861          (e) documents and copies of documents produced by, obtained by, or disclosed to the
             19862      commissioner or any other person in the course of an examination conducted under this section.
             19863          (2) This section does not prevent the commissioner from using the information provided
             19864      under this section in furtherance of the commissioner's regulatory authority under this title.
             19865          (3) Notwithstanding other provisions of this section, the commissioner may grant
             19866      access to the information provided under this section to:
             19867          (a) public officers having jurisdiction over the regulation of insurance in any other state
             19868      or country; or
             19869          (b) law enforcement officers of this state or any other state or agency of the federal
             19870      government, if the officers receiving the information agree in writing to hold the information in
             19871      a manner consistent with this section.
             19872          Section 417. Section 31A-37-602 is amended to read:
             19873           31A-37-602. Requirements of a captive reinsurance company.
             19874          (1) (a) If permitted by its articles of incorporation or charter, a captive reinsurance
             19875      company may apply to the commissioner for a license to write reinsurance covering:
             19876          (i) property and casualty insurance; or
             19877          (ii) reinsurance contracts.
             19878          (b) A captive reinsurance company authorized by the commissioner may write
             19879      reinsurance contracts covering risks in any state.
             19880          (2) To conduct business in this state, a captive reinsurance company shall:
             19881          (a) obtain from the commissioner a license authorizing it to conduct business as a

             19882      captive reinsurance company in this state;
             19883          (b) hold at least one board of directors' meeting each year in this state;
             19884          (c) maintain its principal place of business in this state; and
             19885          (d) appoint a registered agent to accept service of process and act otherwise on its
             19886      behalf in this state.
             19887          (3) Before receiving a license, a captive reinsurance company shall file with the
             19888      commissioner:
             19889          (a) a certified copy of its:
             19890          (i) (A) articles of incorporation; or
             19891          (B) charter; and
             19892          (ii) bylaws;
             19893          (b) a statement under oath of its president and secretary showing its financial condition;
             19894      and
             19895          (c) other documents required by the commissioner.
             19896          (4) In addition to the information required by Subsection (3), the applicant captive
             19897      reinsurance company shall file with the commissioner evidence of:
             19898          (a) the amount and liquidity of the captive reinsurance company's assets relative to the
             19899      risks to be assumed;
             19900          (b) the adequacy of the expertise, experience, and character of the person who manages
             19901      the captive reinsurance company;
             19902          (c) the overall soundness of the captive reinsurance company's plan of operation; and
             19903          (d) other overall factors considered relevant by the commissioner in ascertaining if the
             19904      proposed captive reinsurance company is able to meet its policy obligations.
             19905          (5) (a) Notwithstanding [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             19906      Records Access and Management Act, information submitted pursuant to this section is
             19907      confidential and may not be made public by the commissioner or an agent or employee of the
             19908      commissioner without the written consent of the company, except that:
             19909          (i) information may be discoverable by a party in a civil action or contested case to

             19910      which the submitting captive reinsurance company is a party, upon a showing by the party
             19911      seeking to discover the information that:
             19912          (A) the information sought is relevant to and necessary for the furtherance of the action
             19913      or case;
             19914          (B) the information sought is unavailable from other nonconfidential sources; and
             19915          (C) a subpoena issued by a judicial or administrative law officer of competent
             19916      jurisdiction has been submitted to the commissioner; and
             19917          (ii) the commissioner may disclose the information to the public officer having
             19918      jurisdiction over the regulation of insurance in another state if:
             19919          (A) the public official agrees in writing to maintain the confidentiality of the
             19920      information; and
             19921          (B) the laws of the state in which the public official serves require the information to be
             19922      confidential.
             19923          (b) This Subsection (5) does not apply to an industrial insured captive reinsurance
             19924      company insuring the risks of an industrial insured group.
             19925          Section 418. Section 32A-1-115 is amended to read:
             19926           32A-1-115. Alcoholic Beverage Enforcement and Treatment Restricted Account
             19927      -- Distribution.
             19928          (1) As used in this section:
             19929          (a) "Account" means the Alcoholic Beverage Enforcement and Treatment Restricted
             19930      Account created in this section.
             19931          (b) "Alcohol-related offense" means:
             19932          (i) a violation of:
             19933          (A) Section 41-6a-502 ; or
             19934          (B) an ordinance that complies with the requirements of:
             19935          (I) Subsection 41-6a-510 (1); or
             19936          (II) Section 76-5-207 ; or
             19937          (ii) an offense involving the:

             19938          (A) illegal sale of alcohol;
             19939          (B) illegal distribution of alcohol;
             19940          (C) illegal transportation of alcohol;
             19941          (D) illegal possession of alcohol; or
             19942          (E) illegal consumption of alcohol.
             19943          (c) "Annual conviction time period" means the time period that:
             19944          (i) begins on July 1 and ends on June 30; and
             19945          (ii) immediately precedes the fiscal year for which an appropriation under this section is
             19946      made.
             19947          (d) "Coordinating council" means the Utah Substance Abuse and Anti-Violence
             19948      Coordinating Council created in Section [ 63-25a-201 ] 63M-7-301 .
             19949          (e) "Municipality" means:
             19950          (i) a city; or
             19951          (ii) a town.
             19952          (2) (a) There is created in the General Fund a restricted account called the "Alcoholic
             19953      Beverage Enforcement and Treatment Restricted Account."
             19954          (b) The account shall be funded from:
             19955          (i) amounts deposited by the state treasurer in accordance with Section 59-15-109 ;
             19956          (ii) any appropriations made to the account by the Legislature; and
             19957          (iii) interest described in Subsection (2)(c).
             19958          (c) Interest earned on the account shall be deposited into the account.
             19959          (d) (i) Consistent with the policies provided in Subsection 32A-1-104 (4)(b), the
             19960      revenues in the account shall be used for statewide public purposes including promoting the
             19961      reduction of the harmful effects of over consumption of alcoholic beverages by adults and
             19962      alcohol consumption by minors by funding exclusively programs or projects related to
             19963      prevention, treatment, detection, prosecution, and control of violations of this title and other
             19964      offenses in which alcohol is a contributing factor except as provided in Subsection (2)(d)(ii).
             19965          (ii) The portion distributed under this section to counties may also be used for the

             19966      confinement or treatment of persons arrested for or convicted of offenses in which alcohol is a
             19967      contributing factor.
             19968          (iii) Any municipality or county entitled to receive funds shall use the funds exclusively
             19969      as required by this Subsection (2)(d).
             19970          (iv) The appropriations provided for under Subsection (3) are:
             19971          (A) intended to supplement the budget of the appropriate agencies of each municipality
             19972      and county within the state to enable the municipalities and counties to more effectively fund the
             19973      programs and projects described in this Subsection (2)(d); and
             19974          (B) not intended to replace funds that would otherwise be allocated for the programs
             19975      and projects in this Subsection (2)(d).
             19976          (3) (a) The revenues deposited into the account shall be distributed to municipalities
             19977      and counties:
             19978          (i) to the extent appropriated by the Legislature except that the Legislature shall
             19979      appropriate each fiscal year an amount equal to at least the amount deposited in the account in
             19980      accordance with Section 59-15-109 ; and
             19981          (ii) as provided in this Subsection (3).
             19982          (b) The amount appropriated from the account shall be distributed as follows:
             19983          (i) 25% to municipalities and counties based upon the percentage of the state
             19984      population residing in each municipality and county;
             19985          (ii) 30% to municipalities and counties based upon each municipality's and county's
             19986      percentage of the statewide convictions for all alcohol-related offenses;
             19987          (iii) 20% to municipalities and counties based upon the percentage of all state stores,
             19988      package agencies, liquor licensees, and beer licensees in the state that are located in each
             19989      municipality and county; and
             19990          (iv) 25% to the counties for confinement and treatment purposes authorized by this
             19991      section based upon the percentage of the state population located in each county.
             19992          (c) (i) Except as provided in Subsection (3)(c)(iii), a municipality that does not have a
             19993      law enforcement agency may not receive monies under this section.

             19994          (ii) The State Tax Commission:
             19995          (A) may not distribute the monies the municipality would receive but for the
             19996      municipality not having a law enforcement agency to that municipality; and
             19997          (B) shall distribute the monies that the municipality would have received but for it not
             19998      having a law enforcement agency to the county in which the municipality is located for use by
             19999      the county in accordance with this section.
             20000          (iii) Notwithstanding Subsections (3)(c)(i) and (ii), if the coordinating council finds that
             20001      a municipality described in Subsection (3)(c)(i) demonstrates that the municipality can use the
             20002      monies that the municipality is otherwise eligible to receive in accordance with this section, the
             20003      coordinating council may direct the State Tax Commission to distribute the money to the
             20004      municipality.
             20005          (4) To determine the distributions required by Subsection (3)(b)(ii), the State Tax
             20006      Commission shall annually:
             20007          (a) for an annual conviction time period:
             20008          (i) multiply by two the total number of convictions in the state obtained during the
             20009      annual conviction time period for violation of:
             20010          (A) Section 41-6a-502 ; or
             20011          (B) an ordinance that complies with the requirements of Subsection 41-6a-510 (1) or
             20012      Section 76-5-207 ; and
             20013          (ii) add to the number calculated under Subsection (4)(a)(i) the number of convictions
             20014      obtained during the annual conviction time period for all alcohol-related offenses other than the
             20015      alcohol-related offenses described in Subsection (4)(a)(i);
             20016          (b) divide an amount equal to 30% of the appropriation for that fiscal year by the sum
             20017      obtained in Subsection (4)(a); and
             20018          (c) multiply the amount calculated under Subsection (4)(b), by the number of
             20019      convictions obtained in each municipality and county during the annual conviction time period
             20020      for alcohol-related offenses.
             20021          (5) For purposes of this section:

             20022          (a) the number of state stores, package agencies, and licensees located within the limits
             20023      of each municipality and county:
             20024          (i) is the number determined by the department to be so located;
             20025          (ii) includes all:
             20026          (A) private clubs;
             20027          (B) restaurants;
             20028          (C) limited restaurants;
             20029          (D) on-premise banquet licenses;
             20030          (E) airport lounges;
             20031          (F) package agencies; and
             20032          (G) state stores; and
             20033          (iii) does not include on-premise beer retailer licensees;
             20034          (b) the number of state stores, package agencies, and licensees in a county consists only
             20035      of that number located within unincorporated areas of the county;
             20036          (c) population figures shall be determined according to the most current population
             20037      estimates prepared by the Utah Population Estimates Committee;
             20038          (d) a county's population figure for the 25% distribution to municipalities and counties
             20039      under Subsection (3)(b)(i) shall be determined only with reference to the population in the
             20040      unincorporated areas of the county;
             20041          (e) a county's population figure under Subsection (3)(b)(iv) for the 25% distribution to
             20042      counties only shall be determined with reference to the total population in the county, including
             20043      that of municipalities;
             20044          (f) a conviction occurs in the municipality or county that actually prosecutes the offense
             20045      to judgment; and
             20046          (g) in the case of a conviction based upon a guilty plea, the conviction is considered to
             20047      occur in the municipality or county that, except for the guilty plea, would have prosecuted the
             20048      offense.
             20049          (6) By not later than September 1 each year:

             20050          (a) the state court administrator shall certify to the State Tax Commission the number
             20051      of convictions obtained for alcohol-related offenses in each municipality or county in the state
             20052      during the annual conviction time period; and
             20053          (b) the coordinating council shall notify the State Tax Commission of any municipality
             20054      that does not have a law enforcement agency.
             20055          (7) By not later than December 1 of each year, the coordinating council shall notify the
             20056      State Tax Commission for the fiscal year of appropriation of:
             20057          (a) any municipality that may receive a distribution under Subsection (3)(c)(iii);
             20058          (b) any county that may receive a distribution allocated to a municipality described in
             20059      Subsection (3)(c)(ii);
             20060          (c) any municipality or county that may not receive a distribution because the
             20061      coordinating council has suspended the payment under Subsection (10)(a)(i); and
             20062          (d) any municipality or county that receives a distribution because the suspension of
             20063      payment has been cancelled under Subsection (10)(a)(ii).
             20064          (8) (a) By not later than January 1 of the fiscal year of appropriation, the State Tax
             20065      Commission shall annually distribute to each municipality and county the portion of the
             20066      appropriation that the municipality or county is eligible to receive under this section, except for
             20067      any municipality or county that the coordinating council notifies the State Tax Commission in
             20068      accordance with Subsection (7) may not receive a distribution in that fiscal year.
             20069          (b) (i) The State Tax Commission shall prepare forms for use by municipalities and
             20070      counties in applying for distributions under this section.
             20071          (ii) The forms described in this Subsection (8) may require the submission of
             20072      information the State Tax Commission considers necessary to enable the State Tax Commission
             20073      to comply with this section.
             20074          (9) A municipality or county that receives any monies under this section during a fiscal
             20075      year shall by no later than October 1 following the fiscal year:
             20076          (a) report to the coordinating council:
             20077          (i) the programs or projects of the municipality or county that receive monies under this

             20078      section;
             20079          (ii) if the monies for programs or projects were exclusively used as required by
             20080      Subsection (2)(d);
             20081          (iii) indicators of whether the programs or projects that receive monies under this
             20082      section are effective; and
             20083          (iv) if any monies received under this section were not expended by the municipality or
             20084      county; and
             20085          (b) provide the coordinating council a statement signed by the chief executive officer of
             20086      the county or municipality attesting that the monies received under this section were used in
             20087      addition to any monies appropriated or otherwise available for the county's or municipality's law
             20088      enforcement and were not used to supplant those monies.
             20089          (10) (a) The coordinating council may, by a majority vote:
             20090          (i) suspend future payments under Subsection (8) to a municipality or county that:
             20091          (A) does not file a report that meets the requirements of Subsection (9); or
             20092          (B) the coordinating council finds does not use the monies as required by Subsection
             20093      (2)(d) on the basis of the report filed by the municipality or county under Subsection (9); and
             20094          (ii) cancel a suspension under Subsection (10)(a)(i).
             20095          (b) The State Tax Commission shall:
             20096          (i) retain monies that a municipality or county does not receive under Subsection
             20097      (10)(a); and
             20098          (ii) notify the coordinating council of the balance of retained monies under this
             20099      Subsection (10)(b) after the annual distribution under Subsection (8).
             20100          (11) (a) Subject to the requirements of this Subsection (11), the coordinating council
             20101      shall award the balance of retained monies under Subsection (10)(b):
             20102          (i) as prioritized by majority vote of the coordinating council; and
             20103          (ii) as grants to:
             20104          (A) a county;
             20105          (B) a municipality;

             20106          (C) the Department of Alcoholic Beverage Control;
             20107          (D) the Department of Human Services;
             20108          (E) the Department of Public Safety; or
             20109          (F) the Utah State Office of Education.
             20110          (b) By not later than May 30 of the fiscal year of the appropriation, the coordinating
             20111      council shall notify the State Tax Commission of any grants awarded under this Subsection
             20112      (11).
             20113          (c) The State Tax Commission shall make payments of grants:
             20114          (i) upon receiving notice as provided under Subsection (11)(b); and
             20115          (ii) by not later than June 30 of the fiscal year of the appropriation.
             20116          (d) An entity that receives a grant under this Subsection (11) shall use the grant monies
             20117      exclusively for programs or projects described in Subsection (2)(d).
             20118          Section 419. Section 32A-1-118 is amended to read:
             20119           32A-1-118. Liability insurance -- Governmental immunity.
             20120          (1) The department shall maintain insurance against loss on each motor vehicle operated
             20121      by it on any public highway. Each motor vehicle shall be covered for:
             20122          (a) any liability imposed by law upon the department for damages from bodily injuries
             20123      suffered by any person or persons by reason of the ownership, maintenance, or use of the motor
             20124      vehicle; and
             20125          (b) any liability or loss from damage to or destruction of property of any description,
             20126      including liability of the department for the resultant loss of use of the property, which results
             20127      from accident due to the ownership, maintenance, or use of the motor vehicle.
             20128          (2) The department is liable to respond in damages in all cases if a private corporation
             20129      under the same circumstances would be liable.
             20130          (3) The provisions of [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental
             20131      Immunity Act of Utah, apply in all actions commenced against the department in any action for
             20132      damages sustained as a result of department ownership, maintenance, or use of motor vehicles
             20133      under Subsections (1) and (2). Immunity from suit against the commission or any member of

             20134      the commission, is in all respects retained in any such action.
             20135          Section 420. Section 32A-1-119 is amended to read:
             20136           32A-1-119. Disciplinary proceedings -- Procedure.
             20137          (1) (a) As used in this section and Section 32A-1-120 , "disciplinary proceeding" means
             20138      an adjudicative proceeding permitted under this title:
             20139          (i) against:
             20140          (A) a permittee;
             20141          (B) a licensee;
             20142          (C) a manufacturer;
             20143          (D) a supplier;
             20144          (E) an importer;
             20145          (F) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
             20146      or
             20147          (G) an officer, employee, or agent of:
             20148          (I) a person listed in Subsections (1)(a)(i)(A) through (F); or
             20149          (II) a package agent; and
             20150          (ii) that is brought on the basis of a violation of this title.
             20151          (b) As used in Subsection (4), "final adjudication" means an adjudication for which a
             20152      final unappealable judgment or order has been issued.
             20153          (2) (a) The following may conduct adjudicative proceedings to inquire into any matter
             20154      necessary and proper for the administration of this title and rules adopted under this title:
             20155          (i) the commission;
             20156          (ii) a hearing examiner appointed by the commission for the purposes provided in
             20157      Subsection 32A-1-107 (3);
             20158          (iii) the director; and
             20159          (iv) the department.
             20160          (b) Except as provided in this section or Section 32A-3-106 , the following shall comply
             20161      with the procedures and requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4,

             20162      Administrative Procedures Act, in adjudicative proceedings:
             20163          (i) the commission;
             20164          (ii) a hearing examiner appointed by the commission;
             20165          (iii) the director; and
             20166          (iv) the department.
             20167          (c) Except where otherwise provided by law, all adjudicative proceedings before the
             20168      commission or its appointed hearing examiner shall be:
             20169          (i) video or audio recorded; and
             20170          (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
             20171      Open and Public Meetings Act.
             20172          (d) All adjudicative proceedings concerning departmental personnel shall be conducted
             20173      in accordance with Title 67, Chapter 19, Utah State Personnel Management Act.
             20174          (e) All hearings that are informational, fact gathering, and nonadversarial in nature shall
             20175      be conducted in accordance with rules, policies, and procedures promulgated by the
             20176      commission, director, or department.
             20177          (3) (a) A disciplinary proceeding shall be conducted under the authority of the
             20178      commission, which is responsible for rendering a final decision and order on any disciplinary
             20179      matter.
             20180          (b) (i) Nothing in this section precludes the commission from appointing necessary
             20181      officers, including hearing examiners, from within or without the department, to administer the
             20182      disciplinary proceeding process.
             20183          (ii) A hearing examiner appointed by the commission:
             20184          (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
             20185          (B) shall submit to the commission a report including:
             20186          (I) findings of fact determined on the basis of a preponderance of the evidence
             20187      presented at the hearing;
             20188          (II) conclusions of law; and
             20189          (III) recommendations.

             20190          (c) Nothing in this section precludes the commission, after the commission has rendered
             20191      its final decision and order, from having the director prepare, issue, and cause to be served on
             20192      the parties the final written order on behalf of the commission.
             20193          (4) (a) The department may initiate a disciplinary proceeding described in Subsection
             20194      (4)(b) when the department receives:
             20195          (i) a report from any government agency, peace officer, examiner, or investigator
             20196      alleging that any person listed in Subsections (1)(a)(i)(A) through (G) has violated this title or
             20197      the rules of the commission;
             20198          (ii) a final adjudication of criminal liability against any person listed in Subsections
             20199      (1)(a)(i)(A) through (G) based on an alleged violation of this title; or
             20200          (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
             20201      Liability, against any person listed in Subsections (1)(a)(i)(A) through (G) based on an alleged
             20202      violation of this title.
             20203          (b) The department may initiate a disciplinary proceeding if the department receives an
             20204      item listed in Subsection (4)(a) to determine:
             20205          (i) whether any person listed in Subsections (1)(a)(i)(A) through (G) violated this title
             20206      or rules of the commission; and
             20207          (ii) if a violation is found, the appropriate sanction to be imposed.
             20208          (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
             20209          (i) if required by law;
             20210          (ii) before revoking or suspending any permit, license, or certificate of approval issued
             20211      under this title; or
             20212          (iii) before imposing a fine against any person listed in Subsections (1)(a)(i)(A) through
             20213      (G).
             20214          (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
             20215      hearing after receiving proper notice is an admission of the charged violation.
             20216          (c) The validity of a disciplinary proceeding is not affected by the failure of any person
             20217      to attend or remain in attendance.

             20218          (d) All disciplinary proceeding hearings shall be presided over by the commission or an
             20219      appointed hearing examiner.
             20220          (e) A disciplinary proceeding hearing may be closed only after the commission or
             20221      hearing examiner makes a written finding that the public interest in an open hearing is clearly
             20222      outweighed by factors enumerated in the closure order.
             20223          (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
             20224      hearing may:
             20225          (A) administer oaths or affirmations;
             20226          (B) take evidence;
             20227          (C) take depositions within or without this state; and
             20228          (D) require by subpoena from any place within this state:
             20229          (I) the testimony of any person at a hearing; and
             20230          (II) the production of any books, records, papers, contracts, agreements, documents, or
             20231      other evidence considered relevant to the inquiry.
             20232          (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
             20233      produce any books, papers, documents, or tangible things as required in the subpoena.
             20234          (iii) Any witness subpoenaed or called to testify or produce evidence who claims a
             20235      privilege against self-incrimination may not be compelled to testify, but the commission or the
             20236      hearing examiner shall file a written report with the county attorney or district attorney in the
             20237      jurisdiction where the privilege was claimed or where the witness resides setting forth the
             20238      circumstance of the claimed privilege.
             20239          (iv) (A) A person is not excused from obeying a subpoena without just cause.
             20240          (B) Any district court within the judicial district in which a person alleged to be guilty
             20241      of willful contempt of court or refusal to obey a subpoena is found or resides, upon application
             20242      by the party issuing the subpoena, may issue an order requiring the person to:
             20243          (I) appear before the issuing party; and
             20244          (II) (Aa) produce documentary evidence if so ordered; or
             20245          (Bb) give evidence regarding the matter in question.

             20246          (C) Failure to obey an order of the court may be punished by the court as contempt.
             20247          (g) (i) In all disciplinary proceeding hearings heard by a hearing examiner, the hearing
             20248      examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
             20249          (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
             20250      recommend a penalty more severe than that initially sought by the department in the notice of
             20251      agency action.
             20252          (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
             20253      shall be served upon the respective parties.
             20254          (iv) The respondent and the department shall be given reasonable opportunity to file any
             20255      written objections to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
             20256      before final commission action.
             20257          (h) In all cases heard by the commission, it shall issue its final decision and order in
             20258      accordance with Subsection (3).
             20259          (6) (a) The commission shall:
             20260          (i) render a final decision and order on any disciplinary action; and
             20261          (ii) cause its final order to be prepared in writing, issued, and served on all parties.
             20262          (b) Any order of the commission is considered final on the date the order becomes
             20263      effective.
             20264          (c) If the commission is satisfied that a person listed in Subsections (1)(a)(i)(A) through
             20265      (G) has committed a violation of this title or the commission's rules, in accordance with [Title
             20266      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, the commission may:
             20267          (i) suspend or revoke the permit, license, or certificate of approval;
             20268          (ii) impose a fine against a person listed in Subsections (1)(a)(i)(A) through (G);
             20269          (iii) assess the administrative costs of any disciplinary proceeding to the permittee, the
             20270      licensee, or certificate holder; or
             20271          (iv) any combination of Subsections (6)(c)(i) through (iii).
             20272          (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
             20273      32A-1-107 (1)(p) and (4).

             20274          (e) (i) If a permit or license is suspended under this Subsection (6), a sign provided by
             20275      the department shall be prominently posted:
             20276          (A) during the suspension;
             20277          (B) by the permittee or licensee; and
             20278          (C) at the entrance of the premises of the permittee or licensee.
             20279          (ii) The sign required by this Subsection (6)(e) shall:
             20280          (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
             20281      alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be sold,
             20282      served, furnished, or consumed on these premises during the period of suspension."; and
             20283          (B) include the dates of the suspension period.
             20284          (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
             20285      to be posted under this Subsection (6)(e) during the suspension period.
             20286          (f) If a permit or license is revoked, the commission may order the revocation of any
             20287      compliance bond posted by the permittee or licensee.
             20288          (g) Any permittee or licensee whose permit or license is revoked may not reapply for a
             20289      permit or license under this title for three years from the date on which the permit or license is
             20290      revoked.
             20291          (h) All costs assessed by the commission shall be transferred into the General Fund in
             20292      accordance with Section 32A-1-113 .
             20293          (7) (a) In addition to any action taken against a permittee, licensee, or certificate holder
             20294      under this section, the department may initiate disciplinary action against an officer, employee,
             20295      or agent of a permittee, licensee, or certificate holder.
             20296          (b) If any officer, employee, or agent is found to have violated this title, the commission
             20297      may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing,
             20298      wholesaling, warehousing, or handling alcoholic beverages in the course of employment with
             20299      any permittee, licensee, or certificate holder under this title for a period determined by the
             20300      commission.
             20301          (8) (a) The department may initiate a disciplinary proceeding for an alleged violation of

             20302      this title or the rules of the commission against:
             20303          (i) a manufacturer, supplier, or importer of alcoholic beverages; or
             20304          (ii) an officer, employee, agent, or representative of a person listed in Subsection
             20305      (8)(a)(i).
             20306          (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
             20307      commission may, in addition to other penalties prescribed by this title, order:
             20308          (A) the removal of the manufacturer's, supplier's, or importer's products from the
             20309      department's sales list; and
             20310          (B) a suspension of the department's purchase of the products described in Subsection
             20311      (8)(b)(i)(A) for a period determined by the commission.
             20312          (ii) The commission may take the action described in Subsection (8)(b)(i) if:
             20313          (A) any manufacturer, supplier, or importer of liquor, wine, or heavy beer or its officer,
             20314      employee, agent, or representative violates any provision of this title; and
             20315          (B) the manufacturer, supplier, or importer:
             20316          (I) directly committed the violation; or
             20317          (II) solicited, requested, commanded, encouraged, or intentionally aided another to
             20318      engage in the violation.
             20319          (9) (a) The department may initiate a disciplinary proceeding against a brewer holding a
             20320      certificate of approval under Section 32A-8-101 for an alleged violation of this title or the rules
             20321      of the commission.
             20322          (b) If the commission makes a finding that the brewer holding a certificate of approval
             20323      violates this title or rules of the commission, the commission may take any action against the
             20324      brewer holding a certificate of approval that the commission could take against a licensee
             20325      including:
             20326          (i) suspension or revocation of the certificate of approval; and
             20327          (ii) imposition of a fine.
             20328          (10) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
             20329      the commission or a hearing examiner appointed by the commission shall proceed formally in

             20330      accordance with Sections [ 63-46b-6 ] 63G-4-204 through [ 63-46b-11 ] 63G-4-209 in any case
             20331      where:
             20332          (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
             20333      and welfare;
             20334          (ii) the alleged violation involves:
             20335          (A) selling, serving, or otherwise furnishing alcoholic products to a minor;
             20336          (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
             20337      Entertainment Act;
             20338          (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
             20339      of the respondent;
             20340          (D) interfering or refusing to cooperate with:
             20341          (I) an authorized official of the department or the state in the discharge of the official's
             20342      duties in relation to the enforcement of this title; or
             20343          (II) a peace officer in the discharge of the peace officer's duties in relation to the
             20344      enforcement of this title;
             20345          (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
             20346          (F) unlawful importation of alcoholic products; or
             20347          (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
             20348      32A-12-601 (2), to any person other than the department or a military installation, except to the
             20349      extent permitted by this title; or
             20350          (iii) the department determines to seek in a disciplinary proceeding hearing:
             20351          (A) an administrative fine exceeding $3,000;
             20352          (B) a suspension of a license, permit, or certificate of approval of more than ten days;
             20353      or
             20354          (C) a revocation of a license, permit, or certificate of approval.
             20355          (b) The commission shall make rules in accordance with [Title 63, Chapter 46a] Title
             20356      63G, Chapter 3, Utah Administrative Rulemaking Act, to provide a procedure to implement this
             20357      Subsection (10).

             20358          Section 421. Section 32A-1-120 is amended to read:
             20359           32A-1-120. Judicial review -- Enforcement.
             20360          (1) In a disciplinary proceeding, as defined in Section 32A-1-119 , a respondent found in
             20361      a final order of the commission to have violated this title or rules of the commission made under
             20362      this title may seek judicial review in a court of competent jurisdiction pursuant to the judicial
             20363      review provisions of Sections [ 63-46b-14 ] 63G-4-401 through [ 63-46b-18 ] 63G-4-405 .
             20364          (2) Notwithstanding Subsection [ 63-46b-16 ] 63G-4-403 (4)(g), an appellate court may
             20365      not grant relief on the basis that a finding of fact by the commission in a formal disciplinary
             20366      proceeding is not supported, if the commission's finding of fact is supported by any evidence of
             20367      substance in the record of the formal disciplinary proceeding when viewed in light of the whole
             20368      record before the court.
             20369          (3) In addition to any other remedy provided by law, the commission may seek
             20370      enforcement of a commission order in a disciplinary proceeding by seeking civil enforcement in
             20371      a state district court in accordance with Section [ 63-46b-19 ] 63G-4-501 .
             20372          Section 422. Section 32A-1-603 is amended to read:
             20373           32A-1-603. Sexually oriented entertainer.
             20374          (1) Subject to the restrictions of this section, live entertainment is permitted on a
             20375      premises or at an event regulated by the commission.
             20376          (2) Notwithstanding Subsection (1), a licensee or permittee may not permit a person to:
             20377          (a) appear or perform in a state of nudity;
             20378          (b) perform or simulate an act of:
             20379          (i) sexual intercourse;
             20380          (ii) masturbation;
             20381          (iii) sodomy;
             20382          (iv) bestiality;
             20383          (v) oral copulation;
             20384          (vi) flagellation; or
             20385          (v) a sexual act that is prohibited by Utah law; or

             20386          (c) touch, caress, or fondle the breast, buttocks, anus, or genitals.
             20387          (3) A sexually oriented entertainer may perform in a state of seminudity:
             20388          (a) only in a tavern or class D private club; and
             20389          (b) only if:
             20390          (i) all windows, doors, and other apertures to the premises are darkened or otherwise
             20391      constructed to prevent anyone outside the premises from seeing the performance; and
             20392          (ii) the outside entrance doors of the premises remain unlocked.
             20393          (4) A sexually oriented entertainer may perform only upon a stage or in a designated
             20394      performance area that is:
             20395          (a) approved by the commission in accordance with rules made by the commission in
             20396      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             20397      Act;
             20398          (b) configured so as to preclude a patron from:
             20399          (i) touching the sexually oriented entertainer; or
             20400          (ii) placing any money or object on or within the costume or the person of the sexually
             20401      oriented entertainer; and
             20402          (c) configured so as to preclude the sexually oriented entertainer from touching a
             20403      patron.
             20404          (5) A sexually oriented entertainer may not touch a patron:
             20405          (a) during the sexually oriented entertainer's performance; or
             20406          (b) while the sexually oriented entertainer is dressed in performance attire or costume.
             20407          (6) A sexually oriented entertainer, while in the portion of the premises used by patrons,
             20408      must be dressed in opaque clothing which covers and conceals the sexually oriented entertainer's
             20409      performance attire or costume from the top of the breast to the knee.
             20410          (7) A patron may not be on the stage or in the performance area while a sexually
             20411      oriented entertainer is appearing or performing on the stage or in the performance area.
             20412          (8) A patron may not:
             20413          (a) touch a sexually oriented entertainer:

             20414          (i) during the sexually oriented entertainer's performance; or
             20415          (ii) while the sexually oriented entertainer is dressed in performance attire or costume;
             20416      or
             20417          (b) place money or any other object on or within the costume or the person of the
             20418      sexually oriented entertainer.
             20419          (9) A minor may not be on a premises described in Subsection (3) when a sexually
             20420      oriented entertainer is performing on the premises.
             20421          (10) A person who appears or performs for the entertainment of patrons on a premises
             20422      or at an event regulated by the commission that is not a tavern or class D private club:
             20423          (a) may not appear or perform in a state of nudity or a state of seminudity; and
             20424          (b) may appear or perform in opaque clothing that completely covers the person's
             20425      genitals, pubic area, and anus if the covering:
             20426          (i) is not less than the following at its widest point:
             20427          (A) four inches coverage width in the front of the human body; and
             20428          (B) five inches coverage width in the back of the human body;
             20429          (ii) does not taper to less than one inch wide at the narrowest point; and
             20430          (iii) if covering a female, completely covers the breast below the top of the areola.
             20431          Section 423. Section 32A-4-103 is amended to read:
             20432           32A-4-103. Qualifications.
             20433          (1) (a) The commission may not grant a restaurant liquor license to any person who has
             20434      been convicted of:
             20435          (i) a felony under any federal or state law;
             20436          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             20437      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             20438          (iii) any crime involving moral turpitude; or
             20439          (iv) on two or more occasions within the five years before the day on which the license
             20440      is granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol
             20441      and any drug.

             20442          (b) In the case of a partnership, corporation, or limited liability company the
             20443      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             20444      offense described in Subsection (1)(a):
             20445          (i) a partner;
             20446          (ii) a managing agent;
             20447          (iii) a manager;
             20448          (iv) an officer;
             20449          (v) a director;
             20450          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             20451      the applicant corporation; or
             20452          (vii) a member who owns at least 20% of the applicant limited liability company.
             20453          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             20454      supervisory or managerial capacity for a restaurant has been convicted of any offense described
             20455      in Subsection (1)(a).
             20456          (2) The commission may immediately suspend or revoke a restaurant liquor license if
             20457      after the day on which the restaurant liquor license is granted, a person described in Subsection
             20458      (1)(a), (b), or (c):
             20459          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             20460      to the license being granted; or
             20461          (b) on or after the day on which the license is granted:
             20462          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             20463          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
             20464      influence of alcohol and any drug; and
             20465          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             20466      influence of alcohol and any drug within five years before the day on which the person is
             20467      convicted of the offense described in Subsection (2)(b)(ii)(A).
             20468          (3) The director may take emergency action by immediately suspending the operation of
             20469      a restaurant liquor license according to the procedures and requirements of [Title 63, Chapter

             20470      46b] Title 63G, Chapter 4, Administrative Procedures Act, for the period during which the
             20471      criminal matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):
             20472          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             20473      or
             20474          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             20475      any drug, or the combined influence of alcohol and any drug; and
             20476          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             20477      influence of alcohol and any drug within five years before the day on which the person is
             20478      arrested on a charge described in Subsection (3)(b)(i).
             20479          (4) (a) (i) The commission may not grant a restaurant liquor license to any person who
             20480      has had any type of license, agency, or permit issued under this title revoked within the last
             20481      three years.
             20482          (ii) The commission may not grant a restaurant liquor license to an applicant that is a
             20483      partnership, corporation, or limited liability company if any partner, managing agent, manager,
             20484      officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
             20485      of the applicant corporation, or member who owns at least 20% of the applicant limited liability
             20486      company is or was:
             20487          (A) a partner or managing agent of any partnership that had any type of license, agency,
             20488      or permit issued under this title revoked within the last three years;
             20489          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             20490      of the total issued and outstanding stock of any corporation that had any type of license,
             20491      agency, or permit issued under this title revoked within the last three years; or
             20492          (C) a manager or member who owns or owned at least 20% of any limited liability
             20493      company that had any type of license, agency, or permit issued under this title revoked within
             20494      the last three years.
             20495          (b) An applicant that is a partnership, corporation, or limited liability company may not
             20496      be granted a restaurant liquor license if any of the following had any type of license, agency, or
             20497      permit issued under this title revoked while acting in that person's individual capacity within the

             20498      last three years:
             20499          (i) a partner or managing agent of the applicant partnership;
             20500          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             20501      total issued and outstanding stock of the applicant corporation; or
             20502          (iii) a manager or member who owns at least 20% of the applicant limited liability
             20503      company.
             20504          (c) A person acting in an individual capacity may not be granted a restaurant liquor
             20505      license if that person was:
             20506          (i) a partner or managing agent of a partnership that had any type of license, agency, or
             20507      permit issued under this title revoked within the last three years;
             20508          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             20509      total issued and outstanding stock of a corporation that had any type of license, agency, or
             20510      permit issued under this title revoked within the last three years; or
             20511          (iii) a manager or member of a limited liability company who owned at least 20% of the
             20512      limited liability company that had any type of license, agency, or permit issued under this title
             20513      revoked within the last three years.
             20514          (5) (a) A minor may not be granted a restaurant liquor license.
             20515          (b) The commission may not grant a restaurant liquor license to an applicant that is a
             20516      partnership, corporation, or limited liability company if any of the following is a minor:
             20517          (i) a partner or managing agent of the applicant partnership;
             20518          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             20519      total issued and outstanding stock of the applicant corporation; or
             20520          (iii) a manager or member who owns at least 20% of the applicant limited liability
             20521      company.
             20522          (6) If any person to whom a license has been issued under this part no longer possesses
             20523      the qualifications required by this title for obtaining that license, the commission may suspend or
             20524      revoke that license.
             20525          Section 424. Section 32A-4-203 is amended to read:

             20526           32A-4-203. Qualifications.
             20527          (1) (a) The commission may not grant an airport lounge liquor license to any person
             20528      who has been convicted of:
             20529          (i) a felony under any federal or state law;
             20530          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             20531      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             20532          (iii) any crime involving moral turpitude; or
             20533          (iv) on two or more occasions within the five years before the day on which the license
             20534      is granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol
             20535      and any drug.
             20536          (b) In the case of a partnership, corporation, or limited liability company the
             20537      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             20538      offense described in Subsection (1)(a):
             20539          (i) a partner;
             20540          (ii) a managing agent;
             20541          (iii) a manager;
             20542          (iv) an officer;
             20543          (v) a director;
             20544          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             20545      the applicant corporation; or
             20546          (vii) a member who owns at least 20% of the limited liability company.
             20547          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             20548      supervisory or managerial capacity for an airport lounge has been convicted of any offense
             20549      described in Subsection (1)(a).
             20550          (2) The commission may immediately suspend or revoke an airport lounge license if
             20551      after the day on which the airport lounge license is granted, a person described in Subsection
             20552      (1)(a), (b), or (c):
             20553          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior

             20554      to the license being granted; or
             20555          (b) on or after the day on which the license is granted:
             20556          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             20557          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
             20558      influence of alcohol and any drug; and
             20559          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             20560      influence of alcohol and any drug within five years before the day on which the person is
             20561      convicted of the offense described in Subsection (2)(b)(ii)(A).
             20562          (3) The director may take emergency action by immediately suspending the operation of
             20563      an airport lounge liquor license according to the procedures and requirements of [Title 63,
             20564      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, for the period during which
             20565      the criminal matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):
             20566          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             20567      or
             20568          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             20569      any drug, or the combined influence of alcohol and any drug; and
             20570          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             20571      influence of alcohol and any drug within five years before the day on which the person is
             20572      arrested on a charge described in Subsection (3)(b)(i).
             20573          (4) (a) (i) The commission may not grant an airport lounge liquor license to any person
             20574      who has had any type of license, agency, or permit issued under this title revoked within the last
             20575      three years.
             20576          (ii) The commission may not grant an airport lounge liquor license to any applicant that
             20577      is a partnership, corporation, or limited liability company if any partner, managing agent,
             20578      manager, officer, director, stockholder who holds at least 20% of the total issued and
             20579      outstanding stock of the applicant corporation, or member who owns at least 20% of the
             20580      applicant limited liability company is or was:
             20581          (A) a partner or managing agent of any partnership that had any type of license, agency,

             20582      or permit issued under this title revoked within the last three years;
             20583          (B) a managing agent, officer, director, or a stockholder who holds or held at least 20%
             20584      of the total issued and outstanding stock of any corporation that had any type of license,
             20585      agency, or permit issued under this title revoked within the last three years; or
             20586          (C) a manager or member who owns or owned at least 20% of the limited liability
             20587      company that had any type of license, agency, or permit issued under this title revoked within
             20588      the last three years.
             20589          (b) A corporation or partnership applicant may not be granted an airport lounge liquor
             20590      license if any of the following had any type of license, agency, or permit issued under this title
             20591      revoked while acting in that person's individual capacity within the last three years:
             20592          (i) any partner or managing agent of the applicant partnership;
             20593          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             20594      total issued and outstanding stock of the applicant corporation; or
             20595          (iii) any manager or member who owns at least 20% of the applicant limited liability
             20596      company.
             20597          (c) A person acting in an individual capacity may not be granted an airport lounge
             20598      liquor license if that person was:
             20599          (i) a partner or managing agent of a partnership that had any type of license, agency, or
             20600      permit issued under this title revoked within the last three years;
             20601          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             20602      total issued and outstanding stock of a corporation that had any type of license, agency, or
             20603      permit issued under this title revoked within the last three years; or
             20604          (iii) a manager or member who owns at least 20% of a limited liability company that
             20605      had any type of license, agency, or permit issued under this title revoked within the last three
             20606      years.
             20607          (5) (a) A minor may not be granted an airport lounge liquor license.
             20608          (b) The commission may not grant an airport lounge liquor license to an applicant that
             20609      is a partnership, corporation, or limited liability company if any of the following is a minor:

             20610          (i) a partner or managing agent of the applicant partnership;
             20611          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             20612      total issued and outstanding stock of the applicant corporation; or
             20613          (iii) a manager or member who owns at least 20% of the applicant limited liability
             20614      company.
             20615          (6) If any person to whom a license has been issued under this part no longer possesses
             20616      the qualifications required by this title for obtaining that license, the commission may suspend or
             20617      revoke that license.
             20618          Section 425. Section 32A-4-304 is amended to read:
             20619           32A-4-304. Qualifications.
             20620          (1) (a) The commission may not grant a limited restaurant license to any person who
             20621      has been convicted of:
             20622          (i) a felony under any federal or state law;
             20623          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             20624      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             20625          (iii) any crime involving moral turpitude; or
             20626          (iv) on two or more occasions within the five years before the day on which the license
             20627      is granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol
             20628      and any drug.
             20629          (b) In the case of a partnership, corporation, or limited liability company, the
             20630      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             20631      offense described in Subsection (1)(a):
             20632          (i) a partner;
             20633          (ii) a managing agent;
             20634          (iii) a manager;
             20635          (iv) an officer;
             20636          (v) a director;
             20637          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of

             20638      the applicant corporation; or
             20639          (vii) a member who owns at least 20% of the applicant limited liability company.
             20640          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             20641      supervisory or managerial capacity for the limited restaurant has been convicted of any offense
             20642      described in Subsection (1)(a).
             20643          (2) The commission may immediately suspend or revoke a limited restaurant license if
             20644      after the day on which the limited restaurant license is granted, a person described in Subsection
             20645      (1)(a), (b), or (c):
             20646          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             20647      to the license being granted; or
             20648          (b) on or after the day on which the license is granted:
             20649          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             20650          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
             20651      influence of alcohol and any drug; and
             20652          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             20653      influence of alcohol and any drug within five years before the day on which the person is
             20654      convicted of the offense described in Subsection (2)(b)(ii)(A).
             20655          (3) The director may take emergency action by immediately suspending the operation of
             20656      the limited restaurant license according to the procedures and requirements of [Title 63,
             20657      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, for the period during which
             20658      the criminal matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):
             20659          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii) or (iii); or
             20660          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             20661      any drug, or the combined influence of alcohol and any drug; and
             20662          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             20663      influence of alcohol and any drug within five years before the day on which the person is
             20664      arrested on a charge described in Subsection (3)(b)(i).
             20665          (4) (a) (i) The commission may not grant a limited restaurant license to any person who

             20666      has had any type of license, agency, or permit issued under this title revoked within the last
             20667      three years.
             20668          (ii) The commission may not grant a limited restaurant license to an applicant that is a
             20669      partnership, corporation, or limited liability company if any partner, managing agent, manager,
             20670      officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
             20671      of an applicant corporation, or member who owns at least 20% of an applicant limited liability
             20672      company is or was:
             20673          (A) a partner or managing agent of any partnership that had any type of license, agency,
             20674      or permit issued under this title revoked within the last three years;
             20675          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             20676      of the total issued and outstanding stock of any corporation that had any type of license,
             20677      agency, or permit issued under this title revoked within the last three years; or
             20678          (C) a manager or member of any limited liability company who owns or owned at least
             20679      20% of a limited liability company that had any type of license, agency, or permit issued under
             20680      this title revoked within the last three years.
             20681          (b) An applicant that is a partnership, corporation, or limited liability company may not
             20682      be granted a limited restaurant license if any of the following had any type of license, agency, or
             20683      permit issued under this title revoked while acting in their individual capacity within the last
             20684      three years:
             20685          (i) any partner or managing agent of the applicant partnership;
             20686          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             20687      total issued and outstanding stock of the applicant corporation; or
             20688          (iii) any manager or member who owns at least 20% of the applicant limited liability
             20689      company.
             20690          (c) A person acting in an individual capacity may not be granted a limited restaurant
             20691      license if that person was:
             20692          (i) a partner or managing agent of a partnership that had any type of license, agency, or
             20693      permit issued under this title revoked within the last three years;

             20694          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             20695      total issued and outstanding stock of a corporation that had any type of license, agency, or
             20696      permit issued under this title revoked within the last three years; or
             20697          (iii) a manager or member of a limited liability company who owned at least 20% of the
             20698      limited liability company that had any type of license, agency, or permit issued under this title
             20699      revoked within the last three years.
             20700          (5) (a) A minor may not be granted a limited restaurant license.
             20701          (b) The commission may not grant a limited restaurant license to an applicant that is a
             20702      partnership, corporation, or limited liability company if any of the following is a minor:
             20703          (i) a partner or managing agent of the applicant partnership;
             20704          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             20705      total issued and outstanding stock of the applicant corporation; or
             20706          (iii) a manager or member who owns at least 20% of the applicant limited liability
             20707      company.
             20708          (6) If any person to whom a license has been issued under this part no longer possesses
             20709      the qualifications required by this title for obtaining that license, the commission may suspend or
             20710      revoke that license.
             20711          Section 426. Section 32A-4-403 is amended to read:
             20712           32A-4-403. Qualifications.
             20713          (1) (a) The commission may not grant an on-premise banquet license to any person who
             20714      has been convicted of:
             20715          (i) a felony under any federal or state law;
             20716          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             20717      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             20718          (iii) any crime involving moral turpitude; or
             20719          (iv) on two or more occasions within the five years before the day on which the license
             20720      is granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol
             20721      and any drug.

             20722          (b) In the case of a partnership, corporation, or limited liability company, the
             20723      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             20724      offense described in Subsection (1)(a):
             20725          (i) a partner;
             20726          (ii) a managing agent;
             20727          (iii) a manager;
             20728          (iv) an officer;
             20729          (v) a director;
             20730          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             20731      the applicant corporation; or
             20732          (vii) a member who owns at least 20% of the applicant limited liability company.
             20733          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             20734      supervisory or managerial capacity for the on-premise banquet licensee has been convicted of
             20735      any offense described in Subsection (1)(a).
             20736          (2) The commission may immediately suspend or revoke an on-premise banquet license
             20737      if after the day on which the on-premise banquet license is granted, a person described in
             20738      Subsection (1)(a), (b), or (c):
             20739          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             20740      to the license being granted; or
             20741          (b) on or after the day on which the license is granted:
             20742          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             20743          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
             20744      influence of alcohol and any drug; and
             20745          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             20746      influence of alcohol and any drug within five years before the day on which the person is
             20747      convicted of the offense described in Subsection (2)(b)(ii)(A).
             20748          (3) The director may take emergency action by immediately suspending the operation of
             20749      an on-premise banquet license according to the procedures and requirements of [Title 63,

             20750      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, for the period during which
             20751      the criminal matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):
             20752          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             20753      or
             20754          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             20755      any drug, or the combined influence of alcohol and any drug; and
             20756          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             20757      influence of alcohol and any drug within five years before the day on which the person is
             20758      arrested on a charge described in Subsection (3)(b)(i).
             20759          (4) (a) (i) The commission may not grant an on-premise banquet license to any person
             20760      who has had any type of license, agency, or permit issued under this title revoked within the last
             20761      three years.
             20762          (ii) The commission may not grant an on-premise banquet license to an applicant that is
             20763      a partnership, corporation, or limited liability company if any partner, managing agent, manager,
             20764      officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
             20765      of an applicant corporation, or member who owns at least 20% of an applicant limited liability
             20766      company is or was:
             20767          (A) a partner or managing agent of any partnership that had any type of license, agency,
             20768      or permit issued under this title revoked within the last three years;
             20769          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             20770      of the total issued and outstanding stock of any corporation that had any type of license,
             20771      agency, or permit issued under this title revoked within the last three years; or
             20772          (C) a manager or member who owns or owned at least 20% of any limited liability
             20773      company that had any type of license, agency, or permit issued under this title revoked within
             20774      the last three years.
             20775          (b) An applicant that is a partnership, corporation, or limited liability company may not
             20776      be granted an on-premise banquet license if any of the following had any type of license, agency,
             20777      or permit issued under this title revoked while acting in their individual capacity within the last

             20778      three years:
             20779          (i) any partner or managing agent of the applicant partnership;
             20780          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             20781      total issued and outstanding stock of the applicant corporation; or
             20782          (iii) any manager or member who owns at least 20% of the applicant limited liability
             20783      company.
             20784          (c) A person acting in an individual capacity may not be granted an on-premise banquet
             20785      license if that person was:
             20786          (i) a partner or managing agent of a partnership that had any type of license, agency, or
             20787      permit issued under this title revoked within the last three years;
             20788          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             20789      total issued and outstanding stock of a corporation that had any type of license, agency, or
             20790      permit issued under this title revoked within the last three years; or
             20791          (iii) a manager or member who owned at least 20% of the limited liability company that
             20792      had any type of license, agency, or permit issued under this title revoked within the last three
             20793      years.
             20794          (5) (a) A minor may not be granted an on-premise banquet license.
             20795          (b) The commission may not grant an on-premise banquet license to an applicant that is
             20796      a partnership, corporation, or limited liability company if any of the following is a minor:
             20797          (i) a partner or managing agent of the applicant partnership;
             20798          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             20799      total issued and outstanding stock of the applicant corporation; or
             20800          (iii) a manager or member who owns at least 20% of the applicant limited liability
             20801      company.
             20802          (6) If any person to whom a license has been issued under this part no longer possesses
             20803      the qualifications required by this title for obtaining that license, the commission may suspend or
             20804      revoke that license.
             20805          Section 427. Section 32A-4-406 is amended to read:

             20806           32A-4-406. Operational restrictions.
             20807          Each person granted an on-premise banquet license and the employees and management
             20808      personnel of the on-premise banquet licensee shall comply with this title, the rules of the
             20809      commission, and the following conditions and requirements. Failure to comply may result in a
             20810      suspension or revocation of the license or other disciplinary action taken against individual
             20811      employees or management personnel.
             20812          (1) A person involved in the sale or service of alcoholic beverages under the on-premise
             20813      banquet license shall:
             20814          (a) be under the supervision and direction of the on-premise banquet licensee; and
             20815          (b) complete the seminar provided for in Section 62A-15-401 .
             20816          (2) (a) Liquor may not be purchased by the on-premise banquet licensee except from
             20817      state stores or package agencies.
             20818          (b) Liquor purchased in accordance with Subsection (2)(a) may be transported by the
             20819      on-premise banquet licensee from the place of purchase to the licensed premises.
             20820          (c) Payment for liquor shall be made in accordance with rules established by the
             20821      commission.
             20822          (3) Alcoholic beverages may be sold or provided at a banquet subject to the restrictions
             20823      set forth in this Subsection (3).
             20824          (a) An on-premise banquet licensee may sell or provide any primary spirituous liquor
             20825      only in a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             20826      dispensing system approved by the department in accordance with commission rules adopted
             20827      under this title, except that:
             20828          (i) spirituous liquor need not be dispensed through a calibrated metered dispensing
             20829      system if used as a secondary flavoring ingredient in a beverage subject to the following
             20830      restrictions:
             20831          (A) the secondary ingredient may be dispensed only in conjunction with the purchase of
             20832      a primary spirituous liquor;
             20833          (B) the secondary ingredient may not be the only spirituous liquor in the beverage;

             20834          (C) the on-premise banquet licensee shall designate a location where flavorings are
             20835      stored on the floor plan provided to the department; and
             20836          (D) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             20837          (ii) spirituous liquor need not be dispensed through a calibrated metered dispensing
             20838      system if used:
             20839          (A) as a flavoring on desserts; and
             20840          (B) in the preparation of flaming food dishes, drinks, and desserts;
             20841          (iii) each attendee may have no more than 2.75 ounces of spirituous liquor at a time
             20842      before the attendee; and
             20843          (iv) each attendee may have no more than one spirituous liquor drink at a time before
             20844      the attendee.
             20845          (b) (i) (A) Wine may be sold and served by the glass or an individual portion not to
             20846      exceed five ounces per glass or individual portion.
             20847          (B) An individual portion may be served to an attendee in more than one glass as long
             20848      as the total amount of wine does not exceed five ounces.
             20849          (C) An individual portion of wine is considered to be one alcoholic beverage under
             20850      Subsection (5)(c).
             20851          (ii) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed by
             20852      the commission.
             20853          (iii) A wine service may be performed and a service charge assessed by the on-premise
             20854      banquet licensee as authorized by commission rule for wine purchased on the banquet premises.
             20855          (c) (i) Heavy beer may be served in original containers not exceeding one liter at prices
             20856      fixed by the commission.
             20857          (ii) A service charge may be assessed by the on-premise banquet licensee as authorized
             20858      by commission rule for heavy beer purchased on the banquet premises.
             20859          (d) (i) Except as provided in Subsection (3)(d)(ii), beer may be sold and served for
             20860      on-premise consumption:
             20861          (A) in an open container; and

             20862          (B) on draft.
             20863          (ii) Beer sold pursuant to Subsection (3)(d)(i) shall be in a size of container that does
             20864      not exceed two liters, except that beer may not be sold to an individual attendee in a container
             20865      size that exceeds one liter.
             20866          (4) Alcoholic beverages may not be stored, served, or sold in any place other than as
             20867      designated in the on-premise banquet licensee's application, except that additional locations in
             20868      or on the premises of an on-premise banquet licensee may be approved in accordance with
             20869      guidelines approved by the commission as provided in Subsection 32A-4-402 (2).
             20870          (5) (a) An attendee may only make alcoholic beverage purchases from and be served by
             20871      a person employed, designated, and trained by the on-premise banquet licensee to sell and serve
             20872      alcoholic beverages.
             20873          (b) Notwithstanding Subsection (5)(a), an attendee who has purchased bottled wine
             20874      from an employee of the on-premise banquet licensee may thereafter serve wine from the bottle
             20875      to the attendee or others at the attendee's table.
             20876          (c) Each attendee may have no more than two alcoholic beverages of any kind at a time
             20877      before the attendee.
             20878          (6) The alcoholic beverage storage area shall remain locked at all times other than those
             20879      hours and days when alcoholic beverage sales are authorized by law.
             20880          (7) (a) Except as provided in Subsection (7)(b), alcoholic beverages may be offered for
             20881      sale, sold, served, or otherwise furnished from 10 a.m. to 1 a.m. seven days a week:
             20882          (i) at a banquet; or
             20883          (ii) in connection with room service.
             20884          (b) Notwithstanding Subsection (7)(a), a sale or service of liquor may not occur at a
             20885      banquet or in connection with room service until after the polls are closed on the day of:
             20886          (i) a regular general election;
             20887          (ii) a regular primary election; or
             20888          (iii) a statewide special election.
             20889          (8) Alcoholic beverages may not be sold, served, or otherwise furnished to any:

             20890          (a) minor;
             20891          (b) person actually, apparently, or obviously intoxicated;
             20892          (c) known habitual drunkard; or
             20893          (d) known interdicted person.
             20894          (9) (a) (i) Liquor may be sold only at prices fixed by the commission.
             20895          (ii) Liquor may not be sold at discount prices on any date or at any time.
             20896          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             20897      to the licensee.
             20898          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             20899      over consumption or intoxication.
             20900          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             20901      hours of the on-premise banquet licensee's business day such as a "happy hour."
             20902          (e) The sale or service of more than one alcoholic beverage for the price of a single
             20903      alcoholic beverage is prohibited.
             20904          (f) An on-premise banquet licensee may not engage in a public promotion involving or
             20905      offering free alcoholic beverages to the general public.
             20906          (10) Alcoholic beverages may not be purchased for an attendee by:
             20907          (a) the on-premise banquet licensee; or
             20908          (b) any employee or agent of the on-premise banquet licensee.
             20909          (11) An attendee of a banquet may not bring any alcoholic beverage into or onto, or
             20910      remove any alcoholic beverage from the premises of a banquet.
             20911          (12) (a) Except as otherwise provided in this title, the sale and service of alcoholic
             20912      beverages by an on-premise banquet licensee at a banquet shall be made only for consumption at
             20913      the location of the banquet.
             20914          (b) The host of a banquet, an attendee, or any other person other than the on-premise
             20915      banquet licensee or its employees, may not remove any alcoholic beverage from the premises of
             20916      the banquet.
             20917          (13) An on-premise banquet licensee employee shall remain at the banquet at all times

             20918      when alcoholic beverages are being sold, served, or consumed at the banquet.
             20919          (14) (a) An on-premise banquet licensee may not leave any unsold alcoholic beverages
             20920      at the banquet following the conclusion of the banquet.
             20921          (b) At the conclusion of a banquet, the on-premise banquet licensee or its employees,
             20922      shall:
             20923          (i) destroy any opened and unused alcoholic beverages that are not saleable, under
             20924      conditions established by the department; and
             20925          (ii) return to the on-premise banquet licensee's approved locked storage area any:
             20926          (A) opened and unused alcoholic beverage that is saleable; and
             20927          (B) unopened containers of alcoholic beverages.
             20928          (15) Except as provided in Subsection (14), any open or sealed container of alcoholic
             20929      beverages not sold or consumed at a banquet:
             20930          (a) shall be stored by the on-premise banquet licensee in the licensee's approved locked
             20931      storage area; and
             20932          (b) may be used at more than one banquet.
             20933          (16) An on-premise banquet licensee may not employ a minor to sell, serve, dispense, or
             20934      otherwise furnish alcoholic beverages in connection with the licensee's banquet and room
             20935      service activities.
             20936          (17) An employee of an on-premise banquet licensee, while on duty, may not:
             20937          (a) consume an alcoholic beverage; or
             20938          (b) be intoxicated.
             20939          (18) An on-premise banquet licensee shall prominently display at each banquet at which
             20940      alcoholic beverages are sold or served:
             20941          (a) a copy of the licensee's on-premise banquet license; and
             20942          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             20943      drugs is a serious crime that is prosecuted aggressively in Utah."
             20944          (19) An on-premise banquet licensee may not on the premises of the hotel, resort
             20945      facility, sports center, or convention center:

             20946          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             20947      Chapter 10, Part 11, Gambling;
             20948          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             20949      Part 11, Gambling; or
             20950          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             20951      the risking of something of value for a return or for an outcome when the return or outcome is
             20952      based upon an element of chance, excluding the playing of an amusement device that confers
             20953      only an immediate and unrecorded right of replay not exchangeable for value.
             20954          (20) (a) An on-premise banquet licensee shall maintain accounting and such other
             20955      records and documents as the commission or department may require.
             20956          (b) An on-premise banquet licensee or person acting for the on-premise banquet
             20957      licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the
             20958      entries in any of the books of account or other documents of the on-premise banquet licensee
             20959      required to be made, maintained, or preserved by this title or the rules of the commission for the
             20960      purpose of deceiving the commission or department, or any of their officials or employees, is
             20961      subject to:
             20962          (i) the suspension or revocation of the on-premise banquet license; and
             20963          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             20964          (21) (a) For the purpose described in Subsection (21)(b), an on-premise banquet
             20965      licensee shall provide the department with advance notice of a scheduled banquet in accordance
             20966      with rules made by the commission in accordance with [Title 63, Chapter 46a] Title 63G,
             20967      Chapter 3, Utah Administrative Rulemaking Act.
             20968          (b) The advance notice required by Subsection (21)(a) is required to provide any of the
             20969      following the opportunity to conduct a random inspection of a banquet:
             20970          (i) an authorized representative of the commission or the department; or
             20971          (ii) a law enforcement officer.
             20972          (22) An on-premise banquet licensee shall maintain at least 50% of its total annual
             20973      banquet gross receipts from the sale of food, not including:

             20974          (a) mix for alcoholic beverages; and
             20975          (b) charges in connection with the service of alcoholic beverages.
             20976          (23) A person may not transfer an on-premise banquet license from one business
             20977      location to another without prior written approval of the commission.
             20978          (24) (a) An on-premise banquet licensee may not sell, transfer, assign, exchange, barter,
             20979      give, or attempt in any way to dispose of the license to any other person, whether for monetary
             20980      gain or not.
             20981          (b) An on-premise banquet license has no monetary value for the purpose of any type of
             20982      disposition.
             20983          (25) (a) Room service of alcoholic beverages to a guest room of a hotel or resort
             20984      facility shall be provided in person by an on-premise banquet licensee employee only to an adult
             20985      guest in the guest room.
             20986          (b) Alcoholic beverages may not be left outside a guest room for retrieval by a guest.
             20987          (c) An on-premise banquet licensee may only provide alcoholic beverages for room
             20988      service in sealed containers.
             20989          Section 428. Section 32A-5-103 is amended to read:
             20990           32A-5-103. Qualifications.
             20991          (1) (a) The commission may not grant a private club license to any person who has been
             20992      convicted of:
             20993          (i) a felony under any federal or state law;
             20994          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             20995      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             20996          (iii) any crime involving moral turpitude; or
             20997          (iv) on two or more occasions within the five years before the day on which the license
             20998      is granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol
             20999      and any drug.
             21000          (b) In the case of a partnership, corporation, or limited liability company, the
             21001      proscription under Subsection (1)(a) applies if any of the following has been convicted of any

             21002      offense described in Subsection (1)(a):
             21003          (i) a partner;
             21004          (ii) a managing agent;
             21005          (iii) a manager;
             21006          (iv) an officer;
             21007          (v) a director;
             21008          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             21009      the applicant corporation; or
             21010          (vii) a member who owns at least 20% of the applicant limited liability company.
             21011          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             21012      supervisory or managerial capacity for a private club has been convicted of any offense
             21013      described in Subsection (1)(a).
             21014          (2) The commission may immediately suspend or revoke a private club license if after
             21015      the day on which the private club license is granted, a person described in Subsection (1)(a), (b),
             21016      or (c):
             21017          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             21018      to the license being granted; or
             21019          (b) on or after the day on which the license is granted:
             21020          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             21021          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
             21022      influence of alcohol and any drug; and
             21023          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             21024      influence of alcohol and any drug within five years before the day on which the person is
             21025      convicted of the offense described in Subsection (2)(b)(ii)(A).
             21026          (3) The director may take emergency action by immediately suspending the operation of
             21027      a private club license according to the procedures and requirements of [Title 63, Chapter 46b]
             21028      Title 63G, Chapter 4, Administrative Procedures Act, for the period during which the criminal
             21029      matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):

             21030          (a) is arrested on a charge for any offense described in Subsection (1)(a)(i), (ii), or (iii);
             21031      or
             21032          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             21033      any drug, or the combined influence of alcohol and any drug; and
             21034          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             21035      influence of alcohol and any drug within five years before the day on which the person is
             21036      arrested on a charge described in Subsection (3)(b)(i).
             21037          (4) (a) (i) The commission may not grant a private club license to any person who has
             21038      had any type of license, agency, or permit issued under this title revoked within the last three
             21039      years.
             21040          (ii) The commission may not grant a private club license to any applicant that is a
             21041      partnership, corporation, or limited liability company if any partner, managing agent, manager,
             21042      officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
             21043      of an applicant corporation, or member who owns at least 20% of an applicant limited liability
             21044      company is or was:
             21045          (A) a partner or managing agent of any partnership that had any type of license, agency,
             21046      or permit issued under this title revoked within the last three years;
             21047          (B) a managing agent, officer, director, or a stockholder who holds or held at least 20%
             21048      of the total issued and outstanding stock of any corporation that had any type of license,
             21049      agency, or permit issued under this title revoked within the last three years; or
             21050          (C) a manager or member who owns or owned at least 20% of any limited liability
             21051      company that had any type of license, agency, or permit issued under this title revoked within
             21052      the last three years.
             21053          (b) An applicant that is a partnership, corporation, or limited liability company may not
             21054      be granted a private club license if any of the following had any type of license, agency, or
             21055      permit issued under this title revoked while acting in that person's individual capacity within the
             21056      last three years:
             21057          (i) any partner or managing agent of the applicant partnership;

             21058          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             21059      total issued and outstanding stock of the applicant corporation; or
             21060          (iii) any manager or member who owned at least 20% of the applicant limited liability
             21061      company.
             21062          (c) A person acting in an individual capacity may not be granted a private club license if
             21063      that person was:
             21064          (i) a partner or managing agent of a partnership that had any type of license, agency, or
             21065      permit issued under this title revoked within the last three years;
             21066          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             21067      total issued and outstanding stock of a corporation that had any type of license, agency, or
             21068      permit issued under this title revoked within the last three years; or
             21069          (iii) a manager or member of a limited liability company who owned at least 20% of the
             21070      limited liability company that had any type of license, agency, or permit issued under this title
             21071      revoked within the last three years.
             21072          (5) (a) A minor may not be granted a private club license.
             21073          (b) The commission may not grant a private club license to an applicant that is a
             21074      partnership, corporation, or limited liability company if any of the following is a minor:
             21075          (i) a partner or managing agent of the applicant partnership;
             21076          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             21077      total issued and outstanding stock of the applicant corporation; or
             21078          (iii) a manager or member who owns at least 20% of the applicant limited liability
             21079      company.
             21080          (6) If any person or entity to whom a license has been issued under this chapter no
             21081      longer possesses the qualifications required by this title for obtaining that license, the
             21082      commission may suspend or revoke that license.
             21083          Section 429. Section 32A-6-103 is amended to read:
             21084           32A-6-103. Qualifications.
             21085          (1) Special use permits may be granted only to the following persons or organizations:

             21086          (a) a religious wine use permit may be granted to a church or religious organization;
             21087          (b) an industrial or manufacturing use permit may be granted to a person or
             21088      organization engaged in an industrial or manufacturing pursuit;
             21089          (c) a scientific or educational use permit may be granted to a person or organization
             21090      engaged in a scientific or educational pursuit;
             21091          (d) a health care facility use permit may be granted to a hospital or health care facility;
             21092      and
             21093          (e) a public service permit may be granted to an operator of an airline, railroad, or other
             21094      public conveyance.
             21095          (2) (a) The commission may not issue a special use permit to any person who has been
             21096      convicted of:
             21097          (i) a felony under any federal or state law;
             21098          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             21099      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic products;
             21100          (iii) any crime involving moral turpitude; or
             21101          (iv) on two or more occasions within the five years before the day on which the special
             21102      use permit is granted, driving under the influence of alcohol, any drug, or the combined
             21103      influence of alcohol and any drug.
             21104          (b) In the case of a partnership, corporation, or limited liability company the
             21105      proscription under Subsection (2)(a) applies if any of the following has been convicted of any
             21106      offense described in Subsection (2)(a):
             21107          (i) a partner;
             21108          (ii) a managing agent;
             21109          (iii) a manager;
             21110          (iv) an officer;
             21111          (v) a director;
             21112          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             21113      an applicant corporation; or

             21114          (vii) a member who owns at least 20% of an applicant limited liability company.
             21115          (c) The proscription under Subsection (2)(a) applies if any person employed to act in a
             21116      supervisory or managerial capacity for a special use permittee has been convicted of any offense
             21117      described in Subsection (2)(a).
             21118          (3) The commission may immediately suspend or revoke a special use permit if after the
             21119      day on which the special use permit is granted, a person described in Subsection (2)(a), (b), or
             21120      (c):
             21121          (a) is found to have been convicted of any offense described in Subsection (2)(a) prior
             21122      to the permit being granted; or
             21123          (b) on or after the day on which the permit is granted:
             21124          (i) is convicted of an offense described in Subsection (2)(a)(i), (ii), or (iii); or
             21125          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
             21126      influence of alcohol and any drug; and
             21127          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             21128      influence of alcohol and any drug within five years before the day on which the person is
             21129      convicted of the offense described in Subsection (3)(b)(ii)(A).
             21130          (4) The director may take emergency action by immediately suspending the operation of
             21131      a special use permit according to the procedures and requirements of [Title 63, Chapter 46b]
             21132      Title 63G, Chapter 4, Administrative Procedures Act, for the period during which the criminal
             21133      matter is being adjudicated if a person described in Subsection (2)(a), (b), or (c):
             21134          (a) is arrested on a charge described in Subsection (2)(a)(i), (ii), or (iii); or
             21135          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             21136      any drug, or the combined influence of alcohol and any drug; and
             21137          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             21138      influence of alcohol and any drug within five years before the day on which the person is
             21139      arrested on a charge described in Subsection (4)(b)(i).
             21140          (5) (a) (i) The commission may not grant a special use permit to any person who has
             21141      had any type of license, agency, or permit issued under this title revoked within the last three

             21142      years.
             21143          (ii) The commission may not grant a special use permit to any applicant that is a
             21144      partnership, corporation, or limited liability company if any partner, managing agent, manager,
             21145      officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
             21146      of the applicant corporation, or member who owns at least 20% of the applicant limited liability
             21147      company is or was:
             21148          (A) a partner or managing agent of any partnership that had any type of license, agency,
             21149      or permit issued under this title revoked within the last three years;
             21150          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             21151      of the total issued and outstanding stock of any corporation that had any type of license,
             21152      agency, or permit issued under this title revoked within the last three years; or
             21153          (C) a manager or member who owns or owned at least 20% of any limited liability
             21154      company that had any type of license, agency, or permit issued under this title revoked within
             21155      the last three years.
             21156          (b) An applicant that is a partnership, corporation, or limited liability company may not
             21157      be granted a special use permit if any of the following had any type of license, agency, or permit
             21158      issued under this title revoked while acting in that person's individual capacity within the last
             21159      three years:
             21160          (i) any partner or managing agent of the applicant partnership;
             21161          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             21162      total issued and outstanding stock of the applicant corporation; or
             21163          (iii) any manager or member who owns at least 20% of the applicant limited liability
             21164      company.
             21165          (c) A person acting in an individual capacity may not be granted a special use permit if
             21166      that person was:
             21167          (i) a partner or managing agent of a partnership that had any type of license, agency, or
             21168      permit issued under this title revoked within the last three years;
             21169          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the

             21170      total issued and outstanding stock of a corporation that had any type of license, agency, or
             21171      permit issued under this title revoked within the last three years; or
             21172          (iii) a manager or member who owned at least 20% of a limited liability company that
             21173      had any type of license, agency, or permit revoked within the last three years.
             21174          (6) (a) A minor may not be:
             21175          (i) granted a special use permit; or
             21176          (ii) employed by a permittee to handle alcoholic beverages.
             21177          (b) The commission may not grant a special use permit to an applicant that is a
             21178      partnership, corporation, or limited liability company if any of the following is a minor:
             21179          (i) a partner or managing agent of the applicant partnership;
             21180          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             21181      total issued and outstanding stock of the applicant corporation; or
             21182          (iii) a manager or member who owns at least 20% of the applicant limited liability
             21183      company.
             21184          (7) If any person to whom a permit has been issued under this chapter no longer
             21185      possesses the qualifications required by this title for obtaining that permit, the commission may
             21186      suspend or revoke that permit.
             21187          Section 430. Section 32A-7-103 is amended to read:
             21188           32A-7-103. Qualifications.
             21189          (1) To qualify for a single event permit, the applicant shall have been in existence as a
             21190      bona fide organization for at least one year prior to the date of application.
             21191          (2) (a) The commission may not grant a single event permit to any person who has been
             21192      convicted of:
             21193          (i) a felony under any federal or state law;
             21194          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             21195      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             21196          (iii) any crime involving moral turpitude; or
             21197          (iv) on two or more occasions within the last five years before the day on which the

             21198      permit is granted, driving under the influence of alcohol, any drug, or the combined influence of
             21199      alcohol and any drug.
             21200          (b) In the case of a partnership, corporation, or limited liability company the
             21201      proscription under Subsection (2)(a) applies if any of the following has been convicted of any
             21202      offense described in Subsection (2)(a):
             21203          (i) a partner;
             21204          (ii) a managing agent;
             21205          (iii) a manager;
             21206          (iv) an officer;
             21207          (v) a director;
             21208          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             21209      an applicant corporation; or
             21210          (vii) a member who owns at least 20% of an applicant limited liability company.
             21211          (c) The proscription under Subsection (2)(a) applies if any person employed to act in a
             21212      supervisory or managerial capacity for the single event permittee has been convicted of any
             21213      offense described in Subsection (2)(a).
             21214          (3) The commission may immediately suspend or revoke a single event permit if after
             21215      the day on which the permit is granted, a person described in Subsection (2)(a), (b), or (c):
             21216          (a) is found to have been convicted of any offense described in Subsection (2)(a) prior
             21217      to the permit being granted; or
             21218          (b) on or after the day on which the permit is granted:
             21219          (i) is convicted of an offense described in Subsection (2)(a)(i), (ii), or (iii); or
             21220          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
             21221      influence of alcohol and any drug; and
             21222          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             21223      influence of alcohol and any drug within five years before the day on which the person is
             21224      convicted of the offense described in Subsection (3)(b)(ii)(A).
             21225          (4) The director may take emergency action by immediately revoking the permit

             21226      according to the procedures and requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             21227      Administrative Procedures Act, if a person described in Subsection (2)(a), (b), or (c):
             21228          (a) is arrested on a charge for an offense described in Subsection (2)(a)(i), (ii), or (iii);
             21229      or
             21230          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             21231      any drug, or the combined influence of alcohol and any drug; and
             21232          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             21233      influence of alcohol and any drug within five years before the day on which the person is
             21234      arrested on a charge described in Subsection (4)(b)(i).
             21235          (5) (a) (i) The commission may not grant a single event permit to any person who has
             21236      had any type of license, agency, or permit issued under this title revoked within the last three
             21237      years.
             21238          (ii) The commission may not grant a single event permit to any applicant that is a
             21239      partnership, corporation, or limited liability company if any partner, managing agent, manager,
             21240      officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
             21241      of the applicant corporation, or member who owns at least 20% of the applicant limited liability
             21242      company is or was:
             21243          (A) a partner or managing agent of any partnership that had any type of license, agency,
             21244      or permit issued under this title revoked within the last three years;
             21245          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             21246      of the total issued and outstanding stock of any corporation that had any type of license,
             21247      agency, or permit issued under this title revoked within the last three years; or
             21248          (C) a manager or member who owns or owned at least 20% of any limited liability
             21249      company that had a liquor license, agency, or permit revoked within the last three years.
             21250          (b) An applicant that is a partnership, corporation, or limited liability company may not
             21251      be granted a permit if any of the following had any type of license, agency, or permit issued
             21252      under this title revoked while acting in that person's individual capacity within the last three
             21253      years:

             21254          (i) any partner or managing agent of the applicant partnership;
             21255          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             21256      total issued and outstanding stock of the applicant corporation; or
             21257          (iii) any manager or member who owns at least 20% of the applicant limited liability
             21258      company.
             21259          (6) (a) A minor may not be:
             21260          (i) granted a single event permit; or
             21261          (ii) employed by a single event permittee to handle alcoholic beverages.
             21262          (b) The commission may not grant a single event permit to an applicant that is a
             21263      partnership, corporation, or limited liability company if any of the following is a minor:
             21264          (i) a partner or managing agent of the applicant partnership;
             21265          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             21266      total issued and outstanding stock of the applicant corporation; or
             21267          (iii) a manager or member who owns at least 20% of the applicant limited liability
             21268      company.
             21269          (7) If a person to whom a permit has been issued under this chapter no longer possesses
             21270      the qualifications required by this title for obtaining that permit, the commission may suspend or
             21271      revoke that permit.
             21272          Section 431. Section 32A-8-103 is amended to read:
             21273           32A-8-103. Qualifications.
             21274          (1) (a) The commission may not grant an alcoholic beverage manufacturing license to
             21275      any person who has been convicted of:
             21276          (i) a felony under any federal or state law;
             21277          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             21278      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             21279          (iii) any crime involving moral turpitude; or
             21280          (iv) on two or more occasions within the five years before the day on which the license
             21281      is granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol

             21282      and any drug.
             21283          (b) In the case of a partnership, corporation, or limited liability company the
             21284      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             21285      offense described in Subsection (1)(a):
             21286          (i) a partner;
             21287          (ii) a managing agent;
             21288          (iii) a manager;
             21289          (iv) an officer;
             21290          (v) a director;
             21291          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             21292      the applicant corporation; or
             21293          (vii) a member who owns at least 20% of the applicant limited liability company.
             21294          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             21295      supervisory or managerial capacity for the manufacturer has been convicted of any offense
             21296      described in Subsection (1)(a).
             21297          (2) The commission may immediately suspend or revoke an alcoholic beverage
             21298      manufacturing license if after the day on which the alcoholic beverage manufacturing license is
             21299      granted, a person described in Subsection (1)(a), (b), or (c):
             21300          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             21301      to the license being granted; or
             21302          (b) on or after the day on which the license is granted:
             21303          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             21304          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
             21305      influence of alcohol and any drug; and
             21306          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             21307      influence of alcohol and any drug within five years before the day on which the person is
             21308      convicted of the offense described in Subsection (2)(b)(ii)(A).
             21309          (3) The director may take emergency action by immediately suspending the operation of

             21310      the licensee according to the procedures and requirements of [Title 63, Chapter 46b] Title 63G,
             21311      Chapter 4, Administrative Procedures Act, for the period during which the criminal matter is
             21312      being adjudicated if a person described in Subsection (1)(a), (b), or (c):
             21313          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             21314      or
             21315          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             21316      any drug, or the combined influence of alcohol and any drug; and
             21317          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             21318      influence of alcohol and any drug within five years before the day on which the person is
             21319      arrested on a charge described in Subsection (3)(b)(i).
             21320          (4) (a) (i) The commission may not grant a manufacturing license to any person who
             21321      has had any type of license, agency, or permit issued under this title revoked within the last
             21322      three years.
             21323          (ii) The commission may not grant a manufacturing license to any applicant that is a
             21324      partnership, corporation, or limited liability company if any partner, managing agent, manager,
             21325      officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
             21326      of the applicant corporation, or member who owns at least 20% of the applicant limited liability
             21327      company is or was:
             21328          (A) a partner or managing agent of any partnership that had any type of license, agency,
             21329      or permit issued under this title revoked within the last three years;
             21330          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             21331      of the total issued and outstanding stock of any corporation that had any type of license,
             21332      agency, or permit issued under this title revoked within the last three years; or
             21333          (C) a manager or member who owns or owned at least 20% of the limited liability
             21334      company that had any type of license, agency, or permit issued under this title revoked within
             21335      the last three years.
             21336          (b) An applicant that is a partnership, corporation, or limited liability company may not
             21337      be granted a manufacturing license if any of the following had any type of license, agency, or

             21338      permit issued under this title revoked while acting in that person's individual capacity within the
             21339      last three years:
             21340          (i) any partner or managing agent of the applicant partnership;
             21341          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             21342      total issued and outstanding stock of the applicant corporation; or
             21343          (iii) any manager or member who owns at least 20% of the applicant limited liability
             21344      company.
             21345          (c) A person acting in an individual capacity may not be granted a manufacturing license
             21346      if that person was:
             21347          (i) a partner or managing agent of a partnership that had any type of license, agency, or
             21348      permit issued under this title revoked within the last three years;
             21349          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             21350      total issued and outstanding stock of a corporation that had any type of license, agency, or
             21351      permit issued under this title revoked within the last three years; or
             21352          (iii) a manager or member who owned at least 20% of a limited liability company that
             21353      had any type of license, agency, or permit issued under this title revoked within the last three
             21354      years.
             21355          (5) (a) A minor may not be:
             21356          (i) granted an alcoholic beverage manufacturing license; or
             21357          (ii) employed by a manufacturing licensee to handle alcoholic beverages.
             21358          (b) The commission may not grant an alcoholic beverage manufacturing license to an
             21359      applicant that is a partnership, corporation, or limited liability company if any of the following is
             21360      a minor:
             21361          (i) a partner or managing agent of the applicant partnership;
             21362          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             21363      total issued and outstanding stock of the applicant corporation; or
             21364          (iii) a manager or member who owns at least 20% of the applicant limited liability
             21365      company.

             21366          (6) The commission may not grant an alcoholic beverage manufacturing license to any
             21367      person who has not met any applicable federal requirements for the operation of wineries,
             21368      distilleries, or breweries.
             21369          (7) If any person to whom a license has been issued under this chapter no longer
             21370      possesses the qualifications required by this title for obtaining that license, the commission may
             21371      suspend or revoke that license.
             21372          Section 432. Section 32A-8-503 is amended to read:
             21373           32A-8-503. Qualifications.
             21374          (1) (a) The commission may not grant a local industry representative license to any
             21375      person who has been convicted of:
             21376          (i) a felony under any federal or state law;
             21377          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             21378      manufacture, distribution, importing, warehousing, adulteration, or transportation of alcoholic
             21379      beverages;
             21380          (iii) any crime involving moral turpitude; or
             21381          (iv) on two or more occasions within the five years before the day on which the license
             21382      is granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol
             21383      and any drug.
             21384          (b) In the case of a partnership, corporation, or limited liability company the
             21385      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             21386      offense described in Subsection (1)(a):
             21387          (i) a partner;
             21388          (ii) a managing agent;
             21389          (iii) a manager;
             21390          (iv) an officer;
             21391          (v) a director;
             21392          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             21393      the applicant corporation; or

             21394          (vii) a member who owns at least 20% of the applicant limited liability company.
             21395          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             21396      supervisory or managerial capacity for the local industry representative has been convicted of
             21397      any offense described in Subsection (1)(a).
             21398          (2) The commission may immediately suspend or revoke the local industry
             21399      representative license if after the day on which the local industry representative license is
             21400      granted, a person described in Subsection (1)(a), (b), or (c):
             21401          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             21402      to the license being granted; or
             21403          (b) on or after the day on which the license is granted:
             21404          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             21405          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
             21406      influence of alcohol and any drug; and
             21407          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             21408      influence of alcohol and any drug within five years before the day on which the person is
             21409      convicted of the offense described in Subsection (2)(b)(ii)(A).
             21410          (3) The director may take emergency action by immediately suspending the operation of
             21411      the local industry representative license according to the procedures and requirements of [Title
             21412      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, for the period during
             21413      which the criminal matter is being adjudicated if a person described in Subsection (1)(a), (b), or
             21414      (c):
             21415          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             21416      or
             21417          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             21418      any drug, or the combined influence of alcohol and any drug; and
             21419          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             21420      influence of alcohol and any drug within five years before the day on which the person is
             21421      arrested on a charge described in Subsection (3)(b)(i).

             21422          (4) (a) (i) The commission may not grant a local industry representative license to any
             21423      individual who has had any type of license, agency, or permit issued under this title revoked
             21424      within the last three years.
             21425          (ii) The commission may not grant a local industry representative license to an applicant
             21426      that is a partnership, corporation, or limited liability company if any partner, managing agent,
             21427      manager, officer, director, stockholder who holds at least 20% of the total issued and
             21428      outstanding stock of an applicant corporation, or member who owns at least 20% of an
             21429      applicant limited liability company is or was:
             21430          (A) a partner or managing agent of any partnership that had any type of license, agency,
             21431      or permit issued under this title revoked within the last three years;
             21432          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             21433      of the total issued and outstanding stock of any corporation that had any type of license,
             21434      agency, or permit issued under this title revoked within the last three years; or
             21435          (C) a manager or member who owns or owned at least 20% of any limited liability
             21436      company that had any type of license, agency, or permit issued under this title revoked within
             21437      the last three years.
             21438          (b) An applicant that is a partnership, corporation, or limited liability company may not
             21439      be granted a local industry representative license if any of the following had any type of license,
             21440      agency, or permit issued under this title revoked while acting in that person's individual capacity
             21441      within the last three years:
             21442          (i) any partner or managing agent of the applicant partnership;
             21443          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             21444      total issued and outstanding stock of the applicant corporation; or
             21445          (iii) any manager or member who owns at least 20% of the applicant limited liability
             21446      company.
             21447          (c) A person acting in an individual capacity may not be granted an industry
             21448      representative license if that person was:
             21449          (i) a partner or managing agent of a partnership that had any type of license, agency, or

             21450      permit issued under this title revoked within the last three years;
             21451          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             21452      total issued and outstanding stock of a corporation that had any type of license, agency, or
             21453      permit issued under this title revoked within the last three years; or
             21454          (iii) a manager or member who owned at least 20% of a limited liability company that
             21455      had any type of license, agency, or permit issued under this title revoked within the last three
             21456      years.
             21457          (5) (a) The commission may not grant a local industry representative license to a minor.
             21458          (b) The commission may not grant a local industry representative license to an applicant
             21459      that is a partnership, corporation, or limited liability company if any of the following is a minor:
             21460          (i) a partner or managing agent of the applicant partnership;
             21461          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             21462      total issued and outstanding stock of the applicant corporation; or
             21463          (iii) a manager or member who owns at least 20% of the applicant limited liability
             21464      company.
             21465          (6) Except as otherwise provided, the commission may not grant a local industry
             21466      representative license to:
             21467          (a) any holder of any retail license issued under this title that sells spirituous liquor,
             21468      wine, or heavy beer;
             21469          (b) any employee or agent of any retail license issued under this title that sells spirituous
             21470      liquor, wine, or heavy beer; or
             21471          (c) any individual, partnership, corporation, or limited liability company who holds any
             21472      interest in any retail license issued under this title that sells spirituous liquor, wine, or heavy
             21473      beer.
             21474          (7) If any individual, partnership, corporation, or limited liability company to whom a
             21475      local industry representative license has been issued under this part no longer possesses the
             21476      qualifications required by this title for obtaining that license, the commission may suspend or
             21477      revoke that license.

             21478          Section 433. Section 32A-9-103 is amended to read:
             21479           32A-9-103. Qualifications.
             21480          (1) (a) The commission may not grant a warehousing license to any person who has
             21481      been convicted of:
             21482          (i) a felony under any federal or state law;
             21483          (ii) any federal or state law or local ordinance concerning the sale, manufacture,
             21484      distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             21485          (iii) any crime involving moral turpitude; or
             21486          (iv) on two or more occasions within the five years before the day on which the license
             21487      is granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol
             21488      and any drug.
             21489          (b) In the case of a partnership, corporation, or limited liability company the
             21490      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             21491      offense described in Subsection (1)(a):
             21492          (i) a partner;
             21493          (ii) a managing agent;
             21494          (iii) a manager;
             21495          (iv) an officer;
             21496          (v) a director;
             21497          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             21498      the applicant corporation; or
             21499          (vii) a member who owns at least 20% of the applicant limited liability company.
             21500          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             21501      supervisory or managerial capacity for the warehouse has been convicted of any offense
             21502      described in Subsection (1)(a).
             21503          (2) The commission may immediately suspend or revoke a warehousing license if after
             21504      the day on which the warehousing license is granted, a person described in Subsection (1)(a),
             21505      (b), or (c):

             21506          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             21507      to the license being granted; or
             21508          (b) on or after the day on which the license is granted:
             21509          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             21510          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
             21511      influence of alcohol and any drug; and
             21512          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             21513      influence of alcohol and any drug within five years before the day on which the person is
             21514      convicted of the offense described in Subsection (2)(b)(ii)(A).
             21515          (3) The director may take emergency action by immediately suspending the operation of
             21516      the warehousing license according to the procedures and requirements of [Title 63, Chapter
             21517      46b] Title 63G, Chapter 4, Administrative Procedures Act, for the period during which the
             21518      criminal matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):
             21519          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             21520      or
             21521          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             21522      any drug, or the combined influence of alcohol and any drug; and
             21523          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             21524      influence of alcohol and any drug within five years before the day on which the person is
             21525      arrested on a charge described in Subsection (3)(b)(i).
             21526          (4) (a) (i) The commission may not grant a warehousing license to any person who has
             21527      had any type of license, agency, or permit issued under this title revoked within the last three
             21528      years.
             21529          (ii) The commission may not grant a warehousing license to an applicant that is a
             21530      partnership, corporation, or limited liability company if any partner, managing agent, manager,
             21531      officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
             21532      of an applicant corporation, or member who owns at least 20% of an applicant limited liability
             21533      company is or was:

             21534          (A) a partner or managing agent of any partnership that had any type of license, agency,
             21535      or permit issued under this title revoked within the last three years;
             21536          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             21537      of the total issued and outstanding stock of any corporation that had any type of license,
             21538      agency, or permit issued under this title revoked within the last three years; or
             21539          (C) a manager or member who owns or owned at least 20% of any limited liability
             21540      company that had any type of license, agency, or permit issued under this title revoked within
             21541      the last three years.
             21542          (b) An applicant that is a partnership, corporation, or limited liability company may not
             21543      be granted a warehousing license if any of the following had any type of license, agency, or
             21544      permit issued under this title revoked while acting in that person's individual capacity within the
             21545      last three years:
             21546          (i) any partner or managing agent of the applicant partnership;
             21547          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             21548      total issued and outstanding stock of the applicant corporation; or
             21549          (iii) any manager or member who owns at least 20% of the applicant limited liability
             21550      company.
             21551          (c) A person acting in an individual capacity may not be granted a warehousing license
             21552      if that person was:
             21553          (i) a partner or managing agent of a partnership that had any type of license, agency, or
             21554      permit issued under this title revoked within the last three years;
             21555          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             21556      total issued and outstanding stock of a corporation that had any type of license, agency, or
             21557      permit issued under this title revoked within the last three years; or
             21558          (iii) any manager or member who owned at least 20% of a limited liability company that
             21559      had any type of license, agency, or permit issued under this title revoked within the last three
             21560      years.
             21561          (5) (a) A minor may not be:

             21562          (i) granted a warehousing license; or
             21563          (ii) employed by a warehouse to handle liquor.
             21564          (b) The commission may not grant a warehousing license to an applicant that is a
             21565      partnership, corporation, or limited liability company if any of the following is a minor:
             21566          (i) a partner or managing agent of the applicant partnership;
             21567          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             21568      total issued and outstanding stock of the applicant corporation; or
             21569          (iii) a manager or member who owns at least 20% of the applicant limited liability
             21570      company.
             21571          (6) A person, through any officer, director, representative, agent, or employee, or
             21572      otherwise, either directly or indirectly, may not hold at the same time both a warehousing
             21573      license and any other kind of license, agency, or permit issued under Title 32A, Chapter 3, 4, 5,
             21574      6, or 7, or Chapter 10, Part 2.
             21575          (7) If any person to whom a license has been issued under this chapter no longer
             21576      possesses the qualifications required by this title for obtaining that license, the commission may
             21577      suspend or revoke that license.
             21578          Section 434. Section 32A-10-203 is amended to read:
             21579           32A-10-203. Qualifications.
             21580          (1) (a) The commission may not grant an on-premise beer retailer license to any person
             21581      who has been convicted of:
             21582          (i) a felony under any federal or state law;
             21583          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             21584      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             21585          (iii) of any crime involving moral turpitude; or
             21586          (iv) on two or more occasions within the five years before the day on which the license
             21587      is granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol
             21588      and any drug.
             21589          (b) In the case of a partnership, corporation, or limited liability company the

             21590      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             21591      offense described in Subsection (1)(a):
             21592          (i) a partner;
             21593          (ii) a managing agent;
             21594          (iii) a manager;
             21595          (iv) an officer;
             21596          (v) a director;
             21597          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             21598      the applicant corporation; or
             21599          (vii) a manager or member who owns at least 20% of the applicant limited liability
             21600      company.
             21601          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             21602      supervisory or managerial capacity for the on-premise beer retailer has been convicted of any
             21603      offense described in Subsection (1)(a).
             21604          (2) The commission may immediately suspend or revoke an on-premise beer retailer
             21605      license if after the day on which the on-premise beer retailer license is granted, a person
             21606      described in Subsection (1)(a), (b), or (c):
             21607          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             21608      to the license being granted; or
             21609          (b) on or after the day on which the license is granted:
             21610          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             21611          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
             21612      influence of alcohol and any drug; and
             21613          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             21614      influence of alcohol and any drug within five years before the day on which the person is
             21615      convicted of the offense described in Subsection (2)(b)(ii)(A).
             21616          (3) The director may take emergency action by immediately suspending the operation of
             21617      an on-premise beer retailer license according to the procedures and requirements of [Title 63,

             21618      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, for the period during which
             21619      the criminal matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):
             21620          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             21621      or
             21622          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             21623      any drug, or the combined influence of alcohol and any drug; and
             21624          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             21625      influence of alcohol and any drug within five years before the day on which the person is
             21626      arrested on a charge described in Subsection (3)(b)(i).
             21627          (4) (a) (i) The commission may not grant an on-premise beer retailer license to any
             21628      person who has had any type of license, agency, or permit issued under this title revoked within
             21629      the last three years.
             21630          (ii) The commission may not grant an on-premise beer retailer license to any applicant
             21631      that is a partnership, corporation, or limited liability company if any partner, managing agent,
             21632      manager, officer, director, stockholder who holds at least 20% of the total issued and
             21633      outstanding stock of the applicant corporation, or member who owns at least 20% of the
             21634      applicant limited liability company is or was:
             21635          (A) a partner or managing agent of any partnership that had any type of license, agency,
             21636      or permit issued under this title revoked within the last three years;
             21637          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             21638      of the total issued and outstanding stock of any corporation that had any type of license,
             21639      agency, or permit issued under this title revoked within the last three years; or
             21640          (C) a manager or member who owns or owned at least 20% of any limited liability
             21641      company that had any type of license, agency, or permit issued under this title revoked within
             21642      the last three years.
             21643          (b) An applicant that is a partnership, corporation, or limited liability company may not
             21644      be granted an on-premise beer retailer license if any of the following had any type of license,
             21645      agency, or permit issued under this title revoked while acting in that person's individual capacity

             21646      within the last three years:
             21647          (i) any partner or managing agent of the applicant partnership;
             21648          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             21649      total issued and outstanding stock of the applicant corporation; or
             21650          (iii) any manager or member company who owns at least 20% of the applicant limited
             21651      liability company.
             21652          (c) A person acting in an individual capacity may not be granted an on-premise beer
             21653      retailer license if that person was:
             21654          (i) a partner or managing agent of a partnership that had any type of license, agency, or
             21655      permit issued under this title revoked within the last three years;
             21656          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             21657      total issued and outstanding stock of a corporation that had any type of license, agency, or
             21658      permit issued under this title revoked within the last three years; or
             21659          (iii) a manager or member of any limited liability company who owned at least 20% of a
             21660      limited liability company that had any type of license, agency, or permit issued under this title
             21661      revoked within the last three years.
             21662          (5) (a) A minor may not be granted an on-premise beer retailer license.
             21663          (b) The commission may not grant a on-premise beer retailer license to an applicant that
             21664      is a partnership, corporation, or limited liability company if any of the following is a minor:
             21665          (i) a partner or managing agent of the applicant partnership;
             21666          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             21667      total issued and outstanding stock of the applicant corporation; or
             21668          (iii) a manager or member who owns at least 20% of the applicant limited liability
             21669      company.
             21670          (6) If any person to whom a license has been issued under this part no longer possesses
             21671      the qualifications required by this title for obtaining that license, the commission may suspend or
             21672      revoke that license.
             21673          Section 435. Section 32A-10-303 is amended to read:

             21674           32A-10-303. Qualifications.
             21675          (1) (a) The commission may not grant a temporary special event beer permit to any
             21676      person who has been convicted of:
             21677          (i) a felony under any federal or state law;
             21678          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             21679      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             21680          (iii) any crime involving moral turpitude; or
             21681          (iv) on two or more occasions within the five years before the day on which the permit
             21682      is granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol
             21683      and any drug.
             21684          (b) In the case of a partnership, corporation, or limited liability company, the
             21685      proscription under Subsection (1)(a) applies if any of the following has been convicted of an
             21686      offense described in Subsection (1)(a):
             21687          (i) a partner;
             21688          (ii) a managing agent;
             21689          (iii) a manager;
             21690          (iv) an officer;
             21691          (v) a director;
             21692          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             21693      the applicant corporation; or
             21694          (vii) a member who owns at least 20% of the applicant limited liability company.
             21695          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             21696      supervisory or managerial capacity for the temporary special event beer permittee has been
             21697      convicted of any offense as provided in Subsection (1)(a).
             21698          (2) The commission may immediately suspend or revoke a temporary special event
             21699      permit if after the day on which the permit is granted, a person described in Subsection (1)(a),
             21700      (b), or (c):
             21701          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior

             21702      to the permit being granted; or
             21703          (b) on or after the day on which the permit is granted:
             21704          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             21705          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
             21706      influence of alcohol and any drug; and
             21707          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             21708      influence of alcohol and any drug within five years before the day on which the person is
             21709      convicted of the offense described in Subsection (2)(b)(ii)(A).
             21710          (3) The director may take emergency action by immediately revoking the temporary
             21711      special event permit according to the procedures and requirements of [Title 63, Chapter 46b]
             21712      Title 63G, Chapter 4, Administrative Procedures Act, if a person described in Subsection (1)(a),
             21713      (b), or (c):
             21714          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             21715      or
             21716          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             21717      any drug, or the combined influence of alcohol and any drug; and
             21718          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             21719      influence of alcohol and any drug within five years before the day on which the person is
             21720      arrested on a charge described in Subsection (3)(b)(i).
             21721          (4) (a) (i) The commission may not grant a temporary special event beer permit to any
             21722      person who has had any type of license, agency, or permit issued under this title revoked within
             21723      the last three years.
             21724          (ii) The commission may not grant a temporary special event permit to an applicant that
             21725      is a partnership, corporation, or limited liability company if any partner, managing agent,
             21726      manager, officer, director, stockholder who holds at least 20% of the total issued and
             21727      outstanding stock of an applicant corporation, or member who owns at least 20% of an
             21728      applicant limited liability company is or was:
             21729          (A) a partner or managing agent of any partnership that had any type of license, agency,

             21730      or permit issued under this title revoked within the last three years;
             21731          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             21732      of the total issued and outstanding stock of any corporation that had any type of license,
             21733      agency, or permit issued under this title revoked within the last three years; or
             21734          (C) a manager or member who owns or owned at least 20% of any limited liability
             21735      company that had any type of license, agency, or permit issued under this title revoked within
             21736      the last three years.
             21737          (b) An applicant that is a partnership, corporation, or limited liability company may not
             21738      be granted a temporary special event permit if any of the following had any type of license,
             21739      agency, or permit issued under this title revoked while acting in their individual capacity within
             21740      the last three years:
             21741          (i) any partner or managing agent of the applicant partnership;
             21742          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             21743      total issued and outstanding stock of the applicant corporation; or
             21744          (iii) any manager or member who owns at least 20% of the applicant limited liability
             21745      company.
             21746          (c) A person acting in an individual capacity may not be granted a temporary special
             21747      event permit if that person was:
             21748          (i) a partner or managing agent of a partnership that had any type of license, agency, or
             21749      permit issued under this title revoked within the last three years;
             21750          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             21751      total issued and outstanding stock of a corporation that had any type of license, agency, or
             21752      permit issued under this title revoked within the last three years; or
             21753          (iii) a manager or member who owned at least 20% of the limited liability company that
             21754      had any type of license, agency, or permit issued under this title revoked within the last three
             21755      years.
             21756          (5) (a) A minor may not be:
             21757          (i) granted a temporary special event permit; or

             21758          (ii) employed by a temporary special event permittee to handle alcoholic beverages.
             21759          (b) The commission may not grant a temporary special event permit to an applicant that
             21760      is a partnership, corporation, or limited liability company if any of the following is a minor:
             21761          (i) a partner or managing agent of the applicant partnership;
             21762          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             21763      total issued and outstanding stock of the applicant corporation; or
             21764          (iii) a manager or member who owns at least 20% of the applicant limited liability
             21765      company.
             21766          (6) If any person to whom a permit has been issued under this part no longer possesses
             21767      the qualifications required by this title for obtaining that permit, the commission may suspend or
             21768      revoke that permit.
             21769          Section 436. Section 32A-11-103 is amended to read:
             21770           32A-11-103. Qualifications.
             21771          (1) (a) The commission may not issue a beer wholesaling license to any person who has
             21772      been convicted of:
             21773          (i) a felony under any federal or state law;
             21774          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             21775      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic products;
             21776          (iii) any crime involving moral turpitude; or
             21777          (iv) on two or more occasions within the five years before the day on which the license
             21778      is granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol
             21779      and any drug.
             21780          (b) In the case of a partnership, corporation, or limited liability company, the
             21781      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             21782      offense described in Subsection (1)(a):
             21783          (i) a partner;
             21784          (ii) a managing agent;
             21785          (iii) a manager;

             21786          (iv) an officer;
             21787          (v) a director;
             21788          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             21789      the applicant corporation; or
             21790          (vii) a member who owns at least 20% of the applicant limited liability company.
             21791          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             21792      supervisory or managerial capacity for the wholesaler has been convicted of any offense as
             21793      provided in Subsection (1)(a).
             21794          (2) The commission may immediately suspend or revoke a beer wholesaling license if
             21795      after the day on which the beer wholesaling license is granted, a person described in Subsection
             21796      (1)(a), (b), or (c):
             21797          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             21798      to the license being granted; or
             21799          (b) on or after the day on which the license is granted:
             21800          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             21801          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
             21802      influence of alcohol and any drug; and
             21803          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             21804      influence of alcohol and any drug within five years before the day on which the person is
             21805      convicted of the offense described in Subsection (2)(b)(ii)(A).
             21806          (3) The director may take emergency action by immediately suspending the operation of
             21807      a beer wholesaling license according to the procedures and requirements of [Title 63, Chapter
             21808      46b] Title 63G, Chapter 4, Administrative Procedures Act, for the period during which the
             21809      criminal matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):
             21810          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             21811      or
             21812          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             21813      any drug, or the combined influence of alcohol and any drug; and

             21814          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             21815      influence of alcohol and any drug within five years before the day on which the person is
             21816      arrested on a charge described in Subsection (3)(b)(i).
             21817          (4) (a) (i) The commission may not grant a beer wholesaling license to any person who
             21818      has had any type of license, agency, or permit issued under this title revoked within the last
             21819      three years.
             21820          (ii) The commission may not grant a beer wholesaling license to an applicant that is a
             21821      partnership, corporation, or limited liability company if any partner, managing agent, manager,
             21822      officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
             21823      of the applicant corporation, or member who owns at least 20% of the applicant limited liability
             21824      company is or was:
             21825          (A) a partner or managing agent of any partnership that had any type of license, agency,
             21826      or permit issued under this title revoked within the last three years;
             21827          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             21828      of the total issued and outstanding stock of any corporation that had any type of license,
             21829      agency, or permit issued under this title revoked within the last three years; or
             21830          (C) a manager or member who owns or owned at least 20% of any limited liability
             21831      company that had any type of license, agency, or permit issued under this title revoked within
             21832      the last three years.
             21833          (b) An applicant that is a partnership, corporation, or limited liability company may not
             21834      be granted a beer wholesaling license if any of the following had any type of license, agency, or
             21835      permit issued under this title revoked while acting in that person's individual capacity within the
             21836      last three years:
             21837          (i) a partner or managing agent of the applicant partnership;
             21838          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             21839      total issued and outstanding stock of the applicant corporation; or
             21840          (iii) any manager or member who owns at least 20% of the applicant limited liability
             21841      company.

             21842          (c) A person acting in an individual capacity may not be granted a beer wholesaling
             21843      license if that person was:
             21844          (i) a partner or managing agent of a partnership that had any type of license, agency, or
             21845      permit issued under this title revoked within the last three years;
             21846          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             21847      total issued and outstanding stock of a corporation that had any type of license, agency, or
             21848      permit issued under this title revoked within the last three years; or
             21849          (iii) a manager or member who owned at least 20% of the limited liability company that
             21850      had any type of license, agency, or permit issued under this title revoked within the last three
             21851      years.
             21852          (5) (a) A minor may not be:
             21853          (i) granted a beer wholesaling license; or
             21854          (ii) employed by a licensee to handle beer.
             21855          (b) The commission may not grant a beer wholesaling license to an applicant that is a
             21856      partnership, corporation, or limited liability company if any of the following is a minor:
             21857          (i) a partner or managing agent of the applicant partnership;
             21858          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             21859      total issued and outstanding stock of the applicant corporation; or
             21860          (iii) a manager or member who owns at least 20% of the applicant limited liability
             21861      company.
             21862          (6) (a) A beer wholesaler may not be issued, directly or indirectly, nor hold, through
             21863      any wholly or partially owned subsidiaries or otherwise, a brewery license or a retail beer license
             21864      simultaneously with a wholesaling license.
             21865          (b) A retail beer licensee may not be issued, directly or indirectly, nor hold, through any
             21866      wholly or partially owned subsidiaries or otherwise, a wholesaling license.
             21867          (7) The commission may not grant a beer wholesaling license to any person who has not
             21868      met any applicable federal requirements for beer wholesaling.
             21869          (8) If any person to whom a license has been issued under this chapter no longer

             21870      possesses the qualifications required by this title for obtaining that license, the commission may
             21871      suspend or revoke that license.
             21872          Section 437. Section 32A-15a-103 is amended to read:
             21873           32A-15a-103. Rulemaking.
             21874          In accordance with this chapter and [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             21875      Administrative Rulemaking Act, the commission may make rules that govern the filing under
             21876      this chapter of:
             21877          (1) a formal objection to the renewal of a retail license; and
             21878          (2) a request for hearing filed by a retail licensee.
             21879          Section 438. Section 32A-15a-201 is amended to read:
             21880           32A-15a-201. Commission to prohibit nuisance activities by licensees -- License
             21881      not renewed.
             21882          (1) In accordance with Section 32A-1-103 , the commission shall require a retail
             21883      licensee as a condition of being licensed under this title to operate in a manner so as not to
             21884      endanger the public health, peace, safety, welfare, or morals of the community.
             21885          (2) (a) In accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             21886      Procedures Act, and Sections 32A-15a-202 and 32A-15a-203 , the commission may deny the
             21887      renewal of any retail license issued under this title if:
             21888          (i) a formal objection to the renewal is filed; and
             21889          (ii) the commission determines that the retail licensee has engaged in nuisance activities
             21890      to such an extent that the nuisance activities have adversely impacted the public health, peace,
             21891      safety, welfare, or morals of the neighboring community of the licensed premises.
             21892          (b) In making a determination under this Subsection (2), the commission may consider:
             21893          (i) the types of nuisance activities in which a licensee has engaged;
             21894          (ii) the frequency or pattern of the nuisance activities; and
             21895          (iii) the retail licensee's notice of and failure to abate or correct the nuisance activities.
             21896          Section 439. Section 34-20-10 is amended to read:
             21897           34-20-10. Unfair labor practices -- Powers of board to prevent -- Procedure.

             21898          (1) (a) The board may prevent any person from engaging in any unfair labor practice, as
             21899      listed in Section 34-20-8 , affecting intrastate commerce or the orderly operation of industry.
             21900          (b) This authority is exclusive and is not affected by any other means of adjustment or
             21901      prevention that has been or may be established by agreement, code, law, or otherwise.
             21902          (2) The board shall comply with the procedures and requirements of [Title 63, Chapter
             21903      46b] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative proceedings.
             21904          (3) When it is charged that any person has engaged in or is engaged in any unfair labor
             21905      practice, the board, or any agent or agency designated by the board, may issue and serve a
             21906      notice of agency action on that person.
             21907          (4) (a) If, upon all the testimony taken, the board finds that any person named in the
             21908      complaint has engaged in or is engaging in an unfair labor practice, the board shall state its
             21909      findings of fact and shall issue and serve on the person an order to cease and desist from the
             21910      unfair labor practice and to take other affirmative action designated by the commission,
             21911      including reinstatement of employees with or without back pay, to effectuate the policies of this
             21912      chapter.
             21913          (b) The order may require the person to make periodic reports showing the extent to
             21914      which it has complied with the order.
             21915          (c) If, upon all the testimony taken, the board determines that no person named in the
             21916      complaint has engaged in or is engaging in any unfair labor practice, the board shall state its
             21917      findings of fact and shall issue an order dismissing the complaint.
             21918          (5) (a) The board may petition the district court to enforce the order and for
             21919      appropriate temporary relief or for a restraining order.
             21920          (b) The board shall certify and file in the court:
             21921          (i) a transcript of the entire record in the proceeding;
             21922          (ii) the pleadings and testimony upon which the order was entered; and
             21923          (iii) the findings and order of the board.
             21924          (c) When the petition is filed, the board shall serve notice on all parties to the action.
             21925          (d) Upon filing of the petition, the court has jurisdiction of the proceeding and of the

             21926      question to be determined.
             21927          (e) The court may grant temporary relief or a restraining order, and, based upon the
             21928      pleadings, testimony, and proceedings set forth in the transcript, order that the board's order be
             21929      enforced, modified, or set aside in whole or in part.
             21930          (f) The court may not consider any objection that was not presented before the board,
             21931      its member, agent, or agency, unless the failure or neglect to urge the objection is excused
             21932      because of extraordinary circumstances.
             21933          (g) The board's findings of fact, if supported by evidence, are conclusive.
             21934          (h) (i) If either party applies to the court for leave to adduce additional evidence, and
             21935      shows to the satisfaction of the court that the additional evidence is material and that there were
             21936      reasonable grounds for the failure to adduce the evidence in the hearing before the board, its
             21937      member, agent, or agency, the court may order additional evidence to be taken before the
             21938      board, its member, agent, or agency, and to be made part of the transcript.
             21939          (ii) The board may modify its findings as to the facts, or make new findings, because of
             21940      the additional evidence taken and filed.
             21941          (iii) The board shall file the modified or new findings, which, if supported by evidence,
             21942      are conclusive, and shall file its recommendations, if any, for the modification or setting aside of
             21943      its original order.
             21944          Section 440. Section 34-23-104 is amended to read:
             21945           34-23-104. Duty of commission to establish hours and conditions -- Promulgation
             21946      of rules.
             21947          (1) The commission shall ascertain and establish the hours and the conditions of labor
             21948      and employment for any occupation in which minors are employed.
             21949          (2) The commission may promulgate rules consistent with this chapter in accordance
             21950      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             21951          Section 441. Section 34-23-401 is amended to read:
             21952           34-23-401. Investigation by division -- Administrative penalty.
             21953          (1) The director of the division or the director's designee shall have authority to enter

             21954      and inspect any place or establishment covered by this chapter and to have access to such
             21955      records as may aid in the enforcement of this chapter.
             21956          (2) The division may investigate any complaint under this chapter and may commence
             21957      an administrative proceeding with a penalty of up to $500 per violation. Administrative
             21958      proceedings conducted under this section shall be consistent with [Title 63, Chapter 46b, the]
             21959      Title 63G, Chapter 4, Administrative Procedures Act.
             21960          Section 442. Section 34-28-19 is amended to read:
             21961           34-28-19. Retaliation prohibited -- Administrative process -- Enforcement --
             21962      Rulemaking.
             21963          (1) (a) An employer violates this chapter if the employer takes an action described in
             21964      Subsection (1)(b) against an employee because:
             21965          (i) the employee files a complaint or testifies in a proceeding relative to the enforcement
             21966      of this chapter;
             21967          (ii) the employee is going to file a complaint or testify in a proceeding relative to the
             21968      enforcement of this chapter; or
             21969          (iii) the employer believes that the employee may file a complaint or testify in any
             21970      proceeding relative to the enforcement of this chapter.
             21971          (b) Subsection (1)(a) applies to the following actions of an employer:
             21972          (i) the discharge of an employee;
             21973          (ii) the demotion of an employee; or
             21974          (iii) any other form of retaliation against an employee in the terms, privileges, or
             21975      conditions of employment.
             21976          (2) (a) An employee claiming to be aggrieved by an action of the employer in violation
             21977      of Subsection (1) may file with the division a request for agency action.
             21978          (b) On receipt of a request for agency action under Subsection (2)(a), the division:
             21979          (i) shall conduct an adjudicative proceeding pursuant to [Title 63, Chapter 46b] Title
             21980      63G, Chapter 4, Administrative Procedures Act; and
             21981          (ii) may attempt to reach a settlement between the parties through a settlement

             21982      conference.
             21983          (3) If the division determines that a violation has occurred, the division may require the
             21984      employer to:
             21985          (a) cease and desist any retaliatory action;
             21986          (b) compensate the employee, which compensation may not exceed reimbursement for,
             21987      and payment of, lost wages and benefits to the employee; or
             21988          (c) do both (3)(a) and (b).
             21989          (4) The division may enforce this section in accordance with Subsections 34-28-9 (3)
             21990      and (4).
             21991          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             21992      Administrative Rulemaking Act, the commission shall adopt rules, as required, to implement this
             21993      section.
             21994          Section 443. Section 34-40-104 is amended to read:
             21995           34-40-104. Exemptions.
             21996          (1) The minimum wage established in this chapter does not apply to:
             21997          (a) any employee who is entitled to a minimum wage as provided in 29 U.S.C. Sec. 201
             21998      et seq., the Fair Labor Standards Act of 1938, as amended;
             21999          (b) outside sales persons;
             22000          (c) an employee who is a member of the employer's immediate family;
             22001          (d) companionship service for persons who, because of age or infirmity, are unable to
             22002      care for themselves;
             22003          (e) casual and domestic employees as defined by the commission;
             22004          (f) seasonal employees of nonprofit camping programs, religious or recreation
             22005      programs, and nonprofit educational and charitable organizations registered under Title 13,
             22006      Chapter 22, Charitable Solicitations Act;
             22007          (g) an individual employed by the United States of America;
             22008          (h) any prisoner employed through the penal system;
             22009          (i) any employee employed in agriculture if the employee:

             22010          (i) is principally engaged in the range production of livestock;
             22011          (ii) is employed as a harvest laborer and is paid on a piece rate basis in an operation that
             22012      has been and is generally recognized by custom as having been paid on a piece rate basis in the
             22013      region of employment;
             22014          (iii) was employed in agriculture less than 13 weeks during the preceding calendar year;
             22015      or
             22016          (iv) is a retired or semiretired person performing part-time or incidental work as a
             22017      condition of the employee's residence on a farm or ranch;
             22018          (j) registered apprentices or students employed by the educational institution in which
             22019      they are enrolled; or
             22020          (k) any seasonal hourly employee employed by a seasonal amusement establishment
             22021      with permanent structures and facilities if the other direct monetary compensation from tips,
             22022      incentives, commissions, end-of-season bonus, or other forms of pay is sufficient to cause the
             22023      average hourly rate of total compensation for the season of seasonal hourly employees who
             22024      continue to work to the end of the operating season to equal the applicable minimum wage if
             22025      the seasonal amusement establishment:
             22026          (i) does not operate for more than seven months in any calendar year; or
             22027          (ii) during the preceding calendar year its average receipts for any six months of that
             22028      year were not more than 33-1/3% of its average receipts for the other six months of that year.
             22029          (2) (a) Persons with a disability whose earnings or productive capacities are impaired by
             22030      age, physical or mental deficiencies, or injury may be employed at wages that are lower than the
             22031      minimum wage, provided the wage is related to the employee's productivity.
             22032          (b) The commission may establish and regulate the wages paid or wage scales for
             22033      persons with a disability.
             22034          (3) The commission may establish or may set a lesser minimum wage for learners not to
             22035      exceed the first 160 hours of employment.
             22036          (4) (a) An employer of a tipped employee shall pay the tipped employee at least the
             22037      minimum wage established by this chapter.

             22038          (b) In computing a tipped employee's wage under this Subsection (4), an employer of a
             22039      tipped employee:
             22040          (i) shall pay the tipped employee at least the cash wage obligation as an hourly wage;
             22041      and
             22042          (ii) may compute the remainder of the tipped employee's wage using the tips or
             22043      gratuities the tipped employee actually receives.
             22044          (c) An employee shall retain all tips and gratuities except to the extent that the
             22045      employee participates in a bona fide tip pooling or sharing arrangement with other tipped
             22046      employees.
             22047          (d) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             22048      Administrative Rulemaking Act, the commission shall by rule establish the cash wage obligation
             22049      in conjunction with its review of the minimum wage under Section 34-40-103 .
             22050          Section 444. Section 34-40-105 is amended to read:
             22051           34-40-105. Grant of rulemaking authority.
             22052          In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             22053      Rulemaking Act, the commission may issue rules that are consistent with this chapter.
             22054          Section 445. Section 34-40-202 is amended to read:
             22055           34-40-202. Enforcement.
             22056          The division shall enforce this chapter and investigate complaints under this chapter.
             22057      The division may commence administrative proceedings in accordance with [Title 63, Chapter
             22058      46b, the] Title 63G, Chapter 4, Administrative Procedures Act, and may impose a penalty of up
             22059      to $500 per violation of this chapter.
             22060          Section 446. Section 34-41-103 is amended to read:
             22061           34-41-103. Policy requirements.
             22062          (1) (a) Before testing or retesting for the presence of drugs, a local governmental entity
             22063      or state institution of higher education shall:
             22064          (i) adopt a written policy or ordinance;
             22065          (ii) distribute it to employees and volunteers; and

             22066          (iii) make it available for review by prospective employees and prospective volunteers.
             22067          (b) The local governmental entity or state institution of higher education may only test
             22068      or retest for the presence of drugs by following the procedures and requirements of that
             22069      ordinance or policy.
             22070          (2) The collection and testing of samples shall be conducted in accordance with Section
             22071      34-41-104 and not necessarily limited to circumstances where there are indications of individual,
             22072      job-related impairment of an employee or volunteer.
             22073          (3) The use and disposition of all drug test results are subject to the limitations of [Title
             22074      63, Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act, and
             22075      Americans with Disabilities Act of 1990, 42 U.S.C. 12101 through 12213.
             22076          (4) An employee, prospective employee, volunteer, or prospective volunteer shall
             22077      submit a split urine sample for testing or retesting.
             22078          (5) A split urine sample shall consist of at least 45 ml of urine. The urine shall be
             22079      divided into two specimen bottles, with at least 30 ml of urine in one bottle and at least 15 ml of
             22080      urine in the other. If the test results of the 30 ml urine sample indicate the presence of drugs,
             22081      the donor of the test shall have 72 hours from the time [he] the donor is so notified to request,
             22082      at [his] the donor's option that the 15 ml urine sample be tested for the indicated drugs, the
             22083      expense of which shall be divided equally between the donor and employer. In addition to the
             22084      test results of the 30 ml urine sample, the test results of the 15 ml urine sample shall be
             22085      considered at any subsequent disciplinary hearing if the requirements of this section and Section
             22086      34-41-104 have been complied with in the collection, handling, and testing of these samples.
             22087          Section 447. Section 34A-1-104 is amended to read:
             22088           34A-1-104. Commission authority.
             22089          Within all other authority or responsibility granted to it by law, the commission may:
             22090          (1) adopt rules when authorized by this title, or Title 34, Labor in General, in
             22091      accordance with the procedures of [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             22092      Administrative Rulemaking Act;
             22093          (2) conduct adjudicative proceedings in accordance with the procedures of [Title 63,

             22094      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act;
             22095          (3) license agencies in accordance with this title or Title 34, Labor in General;
             22096          (4) employ and determine the compensation of clerical, legal, technical, investigative,
             22097      and other employees necessary to carry out its policymaking, regulatory, and enforcement
             22098      powers, rights, duties, and responsibilities under this title or Title 34, Labor in General;
             22099          (5) administer and enforce all laws for the protection of the life, health, and safety, of
             22100      employees;
             22101          (6) ascertain and fix reasonable standards, and prescribe, modify, and enforce
             22102      reasonable orders, for the adoption of safety devices, safeguards, and other means or methods
             22103      of protection, to be as nearly uniform as possible, as necessary to carry out all laws and lawful
             22104      orders relative to the protection of the life, health, and safety, of employees in employment and
             22105      places of employment;
             22106          (7) ascertain, fix, and order reasonable standards for the construction, repair, and
             22107      maintenance of places of employment as shall make them safe;
             22108          (8) investigate, ascertain, and determine reasonable classifications of persons,
             22109      employments, and places of employment as necessary to carry out the purposes of this title or
             22110      Title 34, Labor in General;
             22111          (9) promote the voluntary arbitration, mediation, and conciliation of disputes between
             22112      employers and employees;
             22113          (10) ascertain and adopt reasonable standards and rules, prescribe and enforce
             22114      reasonable orders, and take other actions appropriate for the protection of life, health, and
             22115      safety of all persons with respect to all prospects, tunnels, pits, banks, open cut workings,
             22116      quarries, strip mine operations, ore mills, and surface operations or any other mining operation,
             22117      whether or not the relationship of employer and employee exists, but the commission may not
             22118      assume jurisdiction or authority over adopted standards and regulations or perform any mining
             22119      inspection or enforcement of mining rules and regulations so long as Utah's mining operations
             22120      are governed by federal regulations;
             22121          (11) develop processes to ensure that the commission responds to the full range of

             22122      employee and employer clients; and
             22123          (12) carry out the responsibilities assigned to it by statute.
             22124          Section 448. Section 34A-1-106 is amended to read:
             22125           34A-1-106. Fees.
             22126          (1) Unless otherwise provided by statute, the commission may adopt a schedule of fees
             22127      assessed for services provided by the commission by following the procedures and requirements
             22128      of Section [ 63-38-3.2 ] 63J-1-303 .
             22129          (2) The commission shall submit each fee established under this section to the
             22130      Legislature for its approval as part of the commission's annual appropriations request.
             22131          Section 449. Section 34A-1-302 is amended to read:
             22132           34A-1-302. Presiding officers for adjudicative proceedings -- Subpoenas --
             22133      Independent judgment -- Consolidation -- Record -- Notice of order.
             22134          (1) (a) The commissioner shall authorize the Division of Adjudication to call, assign a
             22135      presiding officer, and conduct hearings and adjudicative proceedings when an application for a
             22136      proceeding is filed with the Division of Adjudication under this title.
             22137          (b) The director of the Division of Adjudication or the director's designee may issue
             22138      subpoenas. Failure to respond to a properly issued subpoena may result in a contempt citation
             22139      and offenders may be punished as provided in Section 78-32-15 .
             22140          (c) Witnesses subpoenaed under this section are allowed fees as provided by law for
             22141      witnesses in the district court of the state. The witness fees shall be paid by the state unless the
             22142      witness is subpoenaed at the instance of a party other than the commission.
             22143          (d) A presiding officer assigned under this section may not participate in any case in
             22144      which the presiding officer is an interested party. Each decision of a presiding officer shall
             22145      represent the presiding officer's independent judgment.
             22146          (2) If, in the judgment of the presiding officer having jurisdiction of the proceeding the
             22147      consolidation would not be prejudicial to any party, when the same or substantially similar
             22148      evidence is relevant and material to the matters in issue in more than one proceeding, the
             22149      presiding officer may:

             22150          (a) fix the same time and place for considering each matter;
             22151          (b) jointly conduct hearings;
             22152          (c) make a single record of the proceedings; and
             22153          (d) consider evidence introduced with respect to one proceeding as introduced in the
             22154      others.
             22155          (3) (a) The commission shall keep a full and complete record of all adjudicative
             22156      proceedings in connection with a disputed matter.
             22157          (b) All testimony at any hearing shall be recorded but need not be transcribed. If a
             22158      party requests transcription, the transcription shall be provided at the party's expense.
             22159          (c) All records on appeals shall be maintained by the Division of Adjudication. The
             22160      records shall include an appeal docket showing the receipt and disposition of the appeals.
             22161          (4) A party in interest shall be given notice of the entry of a presiding officer's order or
             22162      any order or award of the commission. The mailing of the copy of the order or award to the
             22163      last-known address in the files of the commission of a party in interest and to the attorneys or
             22164      agents of record in the case, if any, is considered to be notice of the order.
             22165          (5) In any formal adjudicative proceeding, the presiding officer may take any action
             22166      permitted under Section [ 63-46b-8 ] 63G-4-206 .
             22167          Section 450. Section 34A-1-303 is amended to read:
             22168           34A-1-303. Review of administrative decision.
             22169          (1) A decision entered by an administrative law judge under this title is the final order of
             22170      the commission unless a further appeal is initiated:
             22171          (a) under this title; and
             22172          (b) in accordance with the rules of the commission governing the review.
             22173          (2) (a) Unless otherwise provided, a person who is entitled to appeal a decision of an
             22174      administrative law judge under this title may appeal the decision by filing a motion for review
             22175      with the Division of Adjudication.
             22176          (b) (i) Unless a party in interest to the appeal requests in accordance with Subsection
             22177      (3) that the appeal be heard by the Appeals Board, the commissioner shall hear the review in

             22178      accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             22179          (ii) A decision of the commissioner is a final order of the commission unless set aside by
             22180      the court of appeals.
             22181          (c) (i) If in accordance with Subsection (3) a party in interest to the appeal requests that
             22182      the appeal be heard by the Appeals Board, the Appeals Board shall hear the review in
             22183      accordance with:
             22184          (A) Section 34A-1-205 ; and
             22185          (B) [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             22186          (ii) A decision of the Appeals Board is a final order of the commission unless set aside
             22187      by the court of appeals.
             22188          (3) A party in interest may request that an appeal be heard by the Appeals Board by
             22189      filing the request with the Division of Adjudication:
             22190          (a) as part of the motion for review; or
             22191          (b) if requested by a party in interest who did not file a motion for review, within 20
             22192      days of the date the motion for review is filed with the Division of Adjudication.
             22193          (4) (a) On appeal, the commissioner or the Appeals Board may:
             22194          (i) affirm the decision of an administrative law judge;
             22195          (ii) modify the decision of an administrative law judge;
             22196          (iii) return the case to an administrative law judge for further action as directed; or
             22197          (iv) reverse the findings, conclusions, and decision of an administrative law judge.
             22198          (b) The commissioner or Appeals Board may not conduct a trial de novo of the case.
             22199          (c) The commissioner or Appeals Board may base its decision on:
             22200          (i) the evidence previously submitted in the case; or
             22201          (ii) on written argument or written supplemental evidence requested by the
             22202      commissioner or Appeals Board.
             22203          (d) The commissioner or Appeals Board may permit the parties to:
             22204          (i) file briefs or other papers; or
             22205          (ii) conduct oral argument.

             22206          (e) The commissioner or Appeals Board shall promptly notify the parties to any
             22207      proceedings before the commissioner or Appeals Board of its decision, including its findings and
             22208      conclusions.
             22209          (5) (a) Each decision of a member of the Appeals Board shall represent the member's
             22210      independent judgment.
             22211          (b) A member of the Appeals Board may not participate in any case in which the
             22212      member is an interested party.
             22213          (c) If a member of the Appeals Board may not participate in a case because the member
             22214      is an interested party, the two members of the Appeals Board that may hear the case shall assign
             22215      an individual to participate as a member of the board in that case if the individual:
             22216          (i) is not an interested party in the case;
             22217          (ii) was not previously assigned to:
             22218          (A) preside over any proceeding related to the case; or
             22219          (B) take any administrative action related to the case; and
             22220          (iii) is representative of the following group that was represented by the member that
             22221      may not hear the case under Subsection (5)(b):
             22222          (A) employers;
             22223          (B) employees; or
             22224          (C) the public.
             22225          (d) The two members of the Appeals Board may appoint an individual to participate as
             22226      a member of the Appeals Board in a case if:
             22227          (i) there is a vacancy on the board at the time the Appeals Board hears the review of the
             22228      case;
             22229          (ii) the individual appointed meets the conditions described in Subsections (5)(c)(i) and
             22230      (ii); and
             22231          (iii) the individual appointed is representative of the following group that was
             22232      represented by the member for which there is a vacancy:
             22233          (A) employers;

             22234          (B) employees; or
             22235          (C) the public.
             22236          (6) If an order is appealed to the court of appeals after the party appealing the order has
             22237      exhausted all administrative appeals, the court of appeals has jurisdiction to:
             22238          (a) review, reverse, remand, or annul any order of the commissioner or Appeals Board;
             22239      or
             22240          (b) suspend or delay the operation or execution of the order of the commissioner or
             22241      Appeals Board being appealed.
             22242          Section 451. Section 34A-1-304 is amended to read:
             22243           34A-1-304. Rulemaking -- Electronic or similar methods of proceedings.
             22244          (1) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             22245      Administrative Rulemaking Act, the commission shall make rules governing adjudicative
             22246      procedures including the forms of notices and the manner of serving notice in all claims.
             22247          (b) Except as provided in this title and [Title 63, Chapter 46b] Title 63G, Chapter 4,
             22248      Administrative Procedures Act, the rules made under this section are not required to conform to
             22249      common law or statutory rules of evidence or other technical rules of procedure.
             22250          (2) The rules made under this section shall include procedures to dispose of cases
             22251      informally, or to expedite claims adjudication, narrow issues, and simplify the methods of proof
             22252      at hearings.
             22253          (3) The commission may by rule permit hearings or other adjudicative proceedings to be
             22254      conducted, recorded, or published by means of electronic devices or other similar methods.
             22255          Section 452. Section 34A-1-307 is amended to read:
             22256           34A-1-307. Action permitted in adjudicative proceedings.
             22257          For the purposes mentioned in this title, the commission may take any action permitted:
             22258          (1) if a formal adjudicative proceeding, under Section [ 63-46b-7 ] 63G-4-205 or
             22259      [ 63-46b-8 ] 63G-4-206 ; or
             22260          (2) if an informal adjudicative proceeding, under Section [ 63-46b-5 ] 63G-4-203 .
             22261          Section 453. Section 34A-1-309 is amended to read:

             22262           34A-1-309. Attorney fees.
             22263          (1) In all cases coming before the commission in which attorneys have been employed,
             22264      the commission is vested with full power to regulate and fix the fees of the attorneys.
             22265          (2) In accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             22266      Procedures Act, an attorney may file an application for hearing with the Division of
             22267      Adjudication to appeal a decision or final order to the extent it concerns the award of attorney
             22268      fees.
             22269          (3) (a) The commission may award reasonable attorneys' fees on a contingency basis
             22270      when disability or death benefits or interest on disability or death benefits are generated.
             22271          (b) Attorney fees awarded under Subsection (3)(a) shall be paid by the employer or its
             22272      insurance carrier out of the award of disability or death benefits, or interest on disability or
             22273      death benefits.
             22274          (4) (a) If the commission orders that only medical benefits be paid, the commission may
             22275      award reasonable [attorneys' fee] attorney fees on a contingency basis for medical benefits
             22276      ordered paid if:
             22277          (i) the commission's informal dispute resolution mechanisms were fully used by the
             22278      parties prior to adjudication; and
             22279          (ii) at no time were disability or death benefits or interest on disability or death benefits
             22280      at issue in the adjudication of the medical benefit claim.
             22281          (b) Attorneys' fees awarded under Subsection (3)(a) shall be paid by the employer or its
             22282      insurance carrier in addition to the payment of medical benefits ordered.
             22283          Section 454. Section 34A-1-402 is amended to read:
             22284           34A-1-402. Publication of orders, rules, and rates.
             22285          (1) (a) The commission shall make available in proper form for distribution to the
             22286      public, its orders and rules; and
             22287          (b) furnish the information made available under Subsection (1) to any person upon
             22288      request.
             22289          (2) The commission may in accordance with Section [ 63-2-203 ] 63G-2-203 charge a

             22290      fee for furnishing materials under this section.
             22291          Section 455. Section 34A-2-111 is amended to read:
             22292           34A-2-111. Managed health care programs -- Other safety programs.
             22293          (1) As used in this section:
             22294          (a) (i) "Health care provider" means a person who furnishes treatment or care to
             22295      persons who have suffered bodily injury.
             22296          (ii) "Health care provider" includes:
             22297          (A) a hospital;
             22298          (B) a clinic;
             22299          (C) an emergency care center;
             22300          (D) a physician;
             22301          (E) a nurse;
             22302          (F) a nurse practitioner;
             22303          (G) a physician's assistant;
             22304          (H) a paramedic; or
             22305          (I) an emergency medical technician.
             22306          (b) "Physician" means any health care provider licensed under:
             22307          (i) Title 58, Chapter 5a, Podiatric Physician Licensing Act;
             22308          (ii) Title 58, Chapter 24a, Physical Therapist Practice Act;
             22309          (iii) Title 58, Chapter 67, Utah Medical Practice Act;
             22310          (iv) Title 58, Chapter 68, Utah Osteopathic Medical Practice Act;
             22311          (v) Title 58, Chapter 69, Dentist and Dental Hygienist Practice Act;
             22312          (vi) Title 58, Chapter 70a, Physician Assistant Act;
             22313          (vii) Title 58, Chapter 71, Naturopathic Physician Practice Act;
             22314          (viii) Title 58, Chapter 72, Acupuncture Licensing Act; and
             22315          (ix) Title 58, Chapter 73, Chiropractic Physician Practice Act.
             22316          (c) "Preferred health care facility" means a facility:
             22317          (i) that is a health care facility as defined in Section 26-21-2 ; and

             22318          (ii) designated under a managed health care program.
             22319          (d) "Preferred provider physician" means a physician designated under a managed
             22320      health care program.
             22321          (e) "Self-insured employer" is as defined in Section 34A-2-201.5 .
             22322          (2) (a) A self-insured employer and insurance carrier may adopt a managed health care
             22323      program to provide employees the benefits of this chapter or Chapter 3, Utah Occupational
             22324      Disease Act, beginning January 1, 1993. The plan shall comply with this Subsection (2).
             22325          (b) (i) A preferred provider program may be developed if the preferred provider
             22326      program allows a selection by the employee of more than one physician in the health care
             22327      specialty required for treating the specific problem of an industrial patient.
             22328          (ii) (A) Subject to the requirements of this section, if a preferred provider program is
             22329      developed by an insurance carrier or self-insured employer, an employee is required to use:
             22330          (I) preferred provider physicians; and
             22331          (II) preferred health care facilities.
             22332          (B) If a preferred provider program is not developed, an employee may have free choice
             22333      of health care providers.
             22334          (iii) The failure to do the following may, if the employee has been notified of the
             22335      preferred provider program, result in the employee being obligated for any charges in excess of
             22336      the preferred provider allowances:
             22337          (A) use a preferred health care facility; or
             22338          (B) initially receive treatment from a preferred provider physician.
             22339          (iv) Notwithstanding the requirements of Subsections (2)(b)(i) through (iii), a
             22340      self-insured employer or other employer may:
             22341          (A) (I) (Aa) have its own health care facility on or near its worksite or premises; and
             22342          (Bb) continue to contract with other health care providers; or
             22343          (II) operate a health care facility; and
             22344          (B) require employees to first seek treatment at the provided health care or contracted
             22345      facility.

             22346          (v) An employee subject to a preferred provider program or employed by an employer
             22347      having its own health care facility may procure the services of any qualified health care provider:
             22348          (A) for emergency treatment, if a physician employed in the preferred provider program
             22349      or at the health care facility is not available for any reason;
             22350          (B) for conditions the employee in good faith believes are nonindustrial; or
             22351          (C) when an employee living in a rural area would be unduly burdened by traveling to:
             22352          (I) a preferred provider physician; or
             22353          (II) preferred health care facility.
             22354          (c) (i) (A) An employer, insurance carrier, or self-insured employer may enter into
             22355      contracts with the following for the purposes listed in Subsection (2)(c)(i)(B):
             22356          (I) health care providers;
             22357          (II) medical review organizations; or
             22358          (III) vendors of medical goods, services, and supplies including medicines.
             22359          (B) A contract described in Subsection (1)(c)(i)(A) may be made for the following
             22360      purposes:
             22361          (I) insurance carriers or self-insured employers may form groups in contracting for
             22362      managed health care services with health care providers;
             22363          (II) peer review;
             22364          (III) methods of utilization review;
             22365          (IV) use of case management;
             22366          (V) bill audit;
             22367          (VI) discounted purchasing; and
             22368          (VII) the establishment of a reasonable health care treatment protocol program
             22369      including the implementation of medical treatment and quality care guidelines that are:
             22370          (Aa) scientifically based;
             22371          (Bb) peer reviewed; and
             22372          (Cc) consistent with standards for health care treatment protocol programs that the
             22373      commission shall establish by rules made in accordance with [Title 63, Chapter 46a] Title 63G,

             22374      Chapter 3, Utah Administrative Rulemaking Act, including the authority of the commission to
             22375      approve a health care treatment protocol program before it is used or disapprove a health care
             22376      treatment protocol program that does not comply with this Subsection (2)(c)(i)(B)(VII).
             22377          (ii) An insurance carrier may make any or all of the factors in Subsection (2)(c)(i) a
             22378      condition of insuring an entity in its insurance contract.
             22379          (3) (a) In addition to a managed health care program, an insurance carrier may require
             22380      an employer to establish a work place safety program if the employer:
             22381          (i) has an experience modification factor of 1.00 or higher, as determined by the
             22382      National Council on Compensation Insurance; or
             22383          (ii) is determined by the insurance carrier to have a three-year loss ratio of 100% or
             22384      higher.
             22385          (b) A workplace safety program may include:
             22386          (i) a written workplace accident and injury reduction program that:
             22387          (A) promotes safe and healthful working conditions; and
             22388          (B) is based on clearly stated goals and objectives for meeting those goals; and
             22389          (ii) a documented review of the workplace accident and injury reduction program each
             22390      calendar year delineating how procedures set forth in the program are met.
             22391          (c) A written workplace accident and injury reduction program permitted under
             22392      Subsection (3)(b)(i) should describe:
             22393          (i) how managers, supervisors, and employees are responsible for implementing the
             22394      program;
             22395          (ii) how continued participation of management will be established, measured, and
             22396      maintained;
             22397          (iii) the methods used to identify, analyze, and control new or existing hazards,
             22398      conditions, and operations;
             22399          (iv) how the program will be communicated to all employees so that the employees are
             22400      informed of work-related hazards and controls;
             22401          (v) how workplace accidents will be investigated and corrective action implemented;

             22402      and
             22403          (vi) how safe work practices and rules will be enforced.
             22404          (d) For the purposes of a workplace accident and injury reduction program of an
             22405      eligible employer described in Subsection 34A-2-103 (7)(f), the workplace accident and injury
             22406      reduction program shall:
             22407          (i) include the provisions described in Subsections (3)(b) and (c), except that the
             22408      employer shall conduct a documented review of the workplace accident and injury reduction
             22409      program at least semiannually delineating how procedures set forth in the workplace accident
             22410      and injury reduction program are met; and
             22411          (ii) require a written agreement between the employer and all contractors and
             22412      subcontractors on a project that states that:
             22413          (A) the employer has the right to control the manner or method by which the work is
             22414      executed;
             22415          (B) if a contractor, subcontractor, or any employee of a contractor or subcontractor
             22416      violates the workplace accident and injury reduction program, the employer maintains the right
             22417      to:
             22418          (I) terminate the contract with the contractor or subcontractor;
             22419          (II) remove the contractor or subcontractor from the work site; or
             22420          (III) require that the contractor or subcontractor not permit an employee that violates
             22421      the workplace accident and injury reduction program to work on the project for which the
             22422      employer is procuring work; and
             22423          (C) the contractor or subcontractor shall provide safe and appropriate equipment
             22424      subject to the right of the employer to:
             22425          (I) inspect on a regular basis the equipment of a contractor or subcontractor; and
             22426          (II) require that the contractor or subcontractor repair, replace, or remove equipment
             22427      the employer determines not to be safe or appropriate.
             22428          (4) The premiums charged to any employer who fails or refuses to establish a
             22429      workplace safety program pursuant to Subsection (3)(b)(i) or (ii) may be increased by 5% over

             22430      any existing current rates and premium modifications charged that employer.
             22431          Section 456. Section 34A-2-203 is amended to read:
             22432           34A-2-203. Payment of premiums for workers' compensation.
             22433          (1) Until June 30, 2007, a department, commission, board, or other agency of the state
             22434      shall pay the insurance premium on its employees direct to the Workers' Compensation Fund.
             22435          (2) Beginning July 1, 2007, the state shall secure the payment of workers' compensation
             22436      benefits for its employees:
             22437          (a) by:
             22438          (i) insuring, and keeping insured, the payment of this compensation with the Workers'
             22439      Compensation Fund;
             22440          (ii) insuring, and keeping insured, the payment of this compensation with any stock
             22441      corporation or mutual association authorized to transact the business of workers' compensation
             22442      insurance in this state; or
             22443          (iii) paying direct compensation as a self-insured employer in the amount, in the manner,
             22444      and when due as provided for in this chapter or Chapter 3, Utah Occupational Disease Act;
             22445          (b) in accordance with Title 63A, Chapter 4, Risk Management; and
             22446          (c) subject to Subsection (3).
             22447          (3) (a) If the state determines to secure the payment of workers' compensation benefits
             22448      for its employees by paying direct compensation as a self-insured employer in the amount, in the
             22449      manner, and due as provided for in this chapter or Chapter 3, Utah Occupational Disease Act,
             22450      the state is:
             22451          (i) exempt from Section 34A-2-202.5 and Subsection 34A-2-704 (14); and
             22452          (ii) required to pay a premium assessment as provided in Section 34A-2-202 .
             22453          (b) If the state chooses to pay workers' compensation benefits for its employees through
             22454      insuring under Subsection (2)(a)(i) or (ii), the state shall obtain that insurance in accordance
             22455      with [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code.
             22456          Section 457. Section 34A-2-205 is amended to read:
             22457           34A-2-205. Notification of workers' compensation insurance coverage to division

             22458      -- Cancellation requirements -- Penalty for violation.
             22459          (1) (a) Every insurance carrier writing workers' compensation insurance coverage in
             22460      this state or for this state, regardless of the state in which the policy is written, shall file
             22461      notification of that coverage with the division or its designee within 30 days after the inception
             22462      date of the policy in the form prescribed by the division.
             22463          (b) A policy described in Subsection (1)(a) is in effect from inception until canceled by
             22464      filing with the division or its designee a notification of cancellation in the form prescribed by the
             22465      division within ten days after the cancellation of a policy.
             22466          (c) Failure to notify the division or its designee under Subsection (1)(b) will result in the
             22467      continued liability of the carrier until the date that notice of cancellation is received by the
             22468      division or its designee.
             22469          (d) Filings shall be made within 30 days of:
             22470          (i) the reinstatement of a policy;
             22471          (ii) the changing or addition of a name or address of the insured; or
             22472          (iii) the merger of an insured with another entity.
             22473          (e) All filings under this section shall include:
             22474          (i) the name of the insured;
             22475          (ii) the principal business address;
             22476          (iii) any and all assumed name designations;
             22477          (iv) the address of all locations within this state where business is conducted; and
             22478          (v) all federal employer identification numbers or federal tax identification numbers.
             22479          (2) Noncompliance with this section is grounds for revocation of an insurance carrier's
             22480      certificate of authority in addition to the grounds specified in Title 31A, Insurance Code.
             22481          (3) The division may assess an insurer up to $150, payable to the Uninsured Employers'
             22482      Fund, if the insurer fails to comply with this section.
             22483          (4) (a) The notification of workers' compensation insurance coverage required to be
             22484      filed under Subsection (1) is a protected record under Section [ 63-2-304 ] 63G-2-305 .
             22485          (b) The commission or any of its divisions may not disclose the information described in

             22486      Subsection (4)(a) except as provided in:
             22487          (i) [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             22488      Management Act, for a protected record; or
             22489          (ii) Subsection (4)(c), notwithstanding whether [Title 63, Chapter 2] Title 63G, Chapter
             22490      2, Government Records Access and Management Act, permits disclosure.
             22491          (c) The commission may disclose the information described in Subsection (4)(a) if:
             22492          (i) the information is disclosed on an individual case basis related to a single employer;
             22493          (ii) the information facilitates the:
             22494          (A) coverage of subcontractors by identifying the insurance carrier providing workers'
             22495      compensation coverage for an employer;
             22496          (B) filing of a claim by an employee; or
             22497          (C) payment of services rendered on an employee's claim by a medical practitioner; and
             22498          (iii) promotes the purposes of this chapter or Chapter 3, Utah Occupational Disease
             22499      Act.
             22500          (d) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             22501      Administrative Rulemaking Act, the commission shall make rules concerning when information
             22502      may be disclosed under Subsection (4)(c).
             22503          Section 458. Section 34A-2-211 is amended to read:
             22504           34A-2-211. Notice of noncompliance to employer -- Enforcement power of
             22505      division -- Penalty.
             22506          (1) (a) In addition to the remedies specified in Section 34A-2-210 , if the division has
             22507      reason to believe that an employer is conducting business without securing the payment of
             22508      benefits in one of the three ways provided in Section 34A-2-201 , the division may give that
             22509      employer written notice of the noncompliance by certified mail to the last-known address of the
             22510      employer.
             22511          (b) If the employer does not remedy the default within 15 days after delivery of the
             22512      notice, the division may issue an order requiring the employer to appear before the division and
             22513      show cause why the employer should not be ordered to comply with Section 34A-2-201 .

             22514          (c) If it is found that the employer has failed to provide for the payment of benefits in
             22515      one of the three ways provided in Section 34A-2-201 , the division may require any employer to
             22516      comply with Section 34A-2-201 .
             22517          (2) (a) Notwithstanding Subsection (1), the division may impose a penalty against the
             22518      employer under this Subsection (2):
             22519          (i) subject to the notice and other requirements of [Title 63, Chapter 46b] Title 63G,
             22520      Chapter 4, Administrative Procedures Act; and
             22521          (ii) if the division believes that an employer of one or more employees is conducting
             22522      business without securing the payment of benefits in one of the three ways provided in Section
             22523      34A-2-201 .
             22524          (b) The penalty imposed under Subsection (2)(a) shall be the greater of:
             22525          (i) $1,000; or
             22526          (ii) three times the amount of the premium the employer would have paid for workers'
             22527      compensation insurance based on the rate filing of the Workers' Compensation Fund, during the
             22528      period of noncompliance.
             22529          (c) For purposes of Subsection (2)(b)(ii), the premium is calculated by applying rates
             22530      and rate multipliers to the payroll basis under Subsection (2)(d), using the highest rated
             22531      employee class code applicable to the employer's operations.
             22532          (d) The payroll basis for the purpose of calculating the premium penalty shall be 150%
             22533      of the state's average weekly wage multiplied by the highest number of workers employed by
             22534      the employer during the period of the employer's noncompliance multiplied by the number of
             22535      weeks of the employer's noncompliance up to a maximum of 156 weeks.
             22536          (3) The penalty imposed under Subsection (2) shall be deposited in the Uninsured
             22537      Employers' Fund created by Section 34A-2-704 and used for the purposes of that fund.
             22538          (4) (a) An employer who disputes the determination, imposition, or amount of a penalty
             22539      imposed under Subsection (2) shall request a hearing before an administrative law judge within
             22540      30 days of the date of issuance of the administrative action imposing the penalty or the
             22541      administrative action becomes a final order of the commission.

             22542          (b) The employer's request for a hearing under Subsection (4)(a) shall specify the facts
             22543      and grounds that are the basis of the employer's objection to the determination, imposition, or
             22544      amount of the penalty.
             22545          (c) An administrative law judge's decision under this Subsection (4) may be reviewed
             22546      pursuant to Part 8, Adjudication.
             22547          (5) (a) After a penalty has been issued and becomes a final order of the commission the
             22548      division on behalf of the commission may file an abstract for any uncollected penalty in the
             22549      district court.
             22550          (b) The abstract filed under Subsection (5)(a) shall state:
             22551          (i) the amount of the uncollected penalty;
             22552          (ii) reasonable [attorneys'] attorney fees;
             22553          (iii) costs of collection; and
             22554          (iv) court costs.
             22555          (c) The filed abstract shall have the effect of a judgment of that court.
             22556          (6) Any administrative action issued by the division under this section shall:
             22557          (a) be in writing;
             22558          (b) be sent by certified mail to the last-known address of the employer;
             22559          (c) state the findings and administrative action of the division; and
             22560          (d) specify its effective date, which may be immediate or may be at a later date.
             22561          (7) The final order of the commission under this section, upon application by the
             22562      division on behalf of the commission made on or after the effective date of the order to a court
             22563      of general jurisdiction in any county in this state, may be enforced by an order to comply
             22564      entered ex parte and without notice by the court.
             22565          Section 459. Section 34A-2-407 is amended to read:
             22566           34A-2-407. Reporting of industrial injuries -- Regulation of health care providers
             22567      -- Funeral expenses.
             22568          (1) As used in this section, "physician" is as defined in Section 34A-2-111 .
             22569          (2) (a) Any employee sustaining an injury arising out of and in the course of

             22570      employment shall provide notification to the employee's employer promptly of the injury.
             22571          (b) If the employee is unable to provide the notification required by Subsection (2)(a),
             22572      the following may provide notification of the injury to the employee's employer:
             22573          (i) the employee's next-of-kin; or
             22574          (ii) the employee's attorney.
             22575          (c) An employee claiming benefits under this chapter, or Chapter 3, Utah Occupational
             22576      Disease Act, shall comply with rules adopted by the commission regarding disclosure of medical
             22577      records of the employee medically relevant to the industrial accident or occupational disease
             22578      claim.
             22579          (3) (a) An employee is barred for any claim of benefits arising from an injury if the
             22580      employee fails to notify within the time period described in Subsection (3)(b):
             22581          (i) the employee's employer in accordance with Subsection (2); or
             22582          (ii) the division.
             22583          (b) The notice required by Subsection (3)(a) shall be made within:
             22584          (i) 180 days of the day on which the injury occurs; or
             22585          (ii) in the case of an occupational hearing loss, the time period specified in Section
             22586      34A-2-506 .
             22587          (4) The following constitute notification of injury required by Subsection (2):
             22588          (a) an employer's or physician's injury report filed with:
             22589          (i) the division;
             22590          (ii) the employer; or
             22591          (iii) the employer's insurance carrier; or
             22592          (b) the payment of any medical or disability benefits by:
             22593          (i) the employer; or
             22594          (ii) the employer's insurance carrier.
             22595          (5) (a) In the form prescribed by the division, each employer shall file a report with the
             22596      division of any:
             22597          (i) work-related fatality; or

             22598          (ii) work-related injury resulting in:
             22599          (A) medical treatment;
             22600          (B) loss of consciousness;
             22601          (C) loss of work;
             22602          (D) restriction of work; or
             22603          (E) transfer to another job.
             22604          (b) The employer shall file the report required by Subsection (5)(a) within seven days
             22605      after:
             22606          (i) the occurrence of a fatality or injury;
             22607          (ii) the employer's first knowledge of the fatality or injury; or
             22608          (iii) the employee's notification of the fatality or injury.
             22609          (c) (i) An employer shall file a subsequent report with the division of any previously
             22610      reported injury that later results in death.
             22611          (ii) The subsequent report required by this Subsection (5)(c) shall be filed with the
             22612      division within seven days following:
             22613          (A) the death; or
             22614          (B) the employer's first knowledge or notification of the death.
             22615          (d) A report is not required to be filed under this Subsection (5) for minor injuries, such
             22616      as cuts or scratches that require first-aid treatment only, unless:
             22617          (i) a treating physician files a report with the division in accordance with Subsection (9);
             22618      or
             22619          (ii) a treating physician is required to file a report with the division in accordance with
             22620      Subsection (9).
             22621          (6) An employer required to file a report under Subsection (5) shall provide the
             22622      employee with:
             22623          (a) a copy of the report submitted to the division; and
             22624          (b) a statement, as prepared by the division, of the employee's rights and responsibilities
             22625      related to the industrial injury.

             22626          (7) Each employer shall maintain a record in a manner prescribed by the division of all:
             22627          (a) work-related fatalities; or
             22628          (b) work-related injuries resulting in:
             22629          (i) medical treatment;
             22630          (ii) loss of consciousness;
             22631          (iii) loss of work;
             22632          (iv) restriction of work; or
             22633          (v) transfer to another job.
             22634          (8) (a) Except as provided in Subsection (8)(b), an employer who refuses or neglects to
             22635      make reports, to maintain records, or to file reports with the division as required by this section
             22636      is:
             22637          (i) guilty of a class C misdemeanor; and
             22638          (ii) subject to a civil assessment:
             22639          (A) imposed by the division, subject to the requirements of [Title 63, Chapter 46b] Title
             22640      63G, Chapter 4, Administrative Procedures Act; and
             22641          (B) that may not exceed $500.
             22642          (b) An employer is not subject to the civil assessment or guilty of a class C
             22643      misdemeanor under this Subsection (8) if:
             22644          (i) the employer submits a report later than required by this section; and
             22645          (ii) the division finds that the employer has shown good cause for submitting a report
             22646      later than required by this section.
             22647          (c) A civil assessment collected under this Subsection (8) shall be deposited into the
             22648      Uninsured Employers' Fund created in Section 34A-2-704 .
             22649          (9) (a) A physician attending an injured employee shall comply with rules established by
             22650      the commission regarding:
             22651          (i) fees for physician's services;
             22652          (ii) disclosure of medical records of the employee medically relevant to the employee's
             22653      industrial accident or occupational disease claim; and

             22654          (iii) reports to the division regarding:
             22655          (A) the condition and treatment of an injured employee; or
             22656          (B) any other matter concerning industrial cases that the physician is treating.
             22657          (b) A physician who is associated with, employed by, or bills through a hospital is
             22658      subject to Subsection (9)(a).
             22659          (c) A hospital providing services for an injured employee is not subject to the
             22660      requirements of Subsection (9)(a) except for rules made by the commission that are described in
             22661      Subsection (9)(a)(ii) or (iii).
             22662          (d) The commission's schedule of fees may reasonably differentiate remuneration to be
             22663      paid to providers of health services based on:
             22664          (i) the severity of the employee's condition;
             22665          (ii) the nature of the treatment necessary; and
             22666          (iii) the facilities or equipment specially required to deliver that treatment.
             22667          (e) This Subsection (9) does not prohibit a contract with a provider of health services
             22668      relating to the pricing of goods and services.
             22669          (10) A copy of the initial report filed under Subsection (9)(a)(iii) shall be furnished to:
             22670          (a) the division;
             22671          (b) the employee; and
             22672          (c) (i) the employer; or
             22673          (ii) the employer's insurance carrier.
             22674          (11) (a) Except as provided in Subsection (11)(b), a person subject to Subsection
             22675      (9)(a)(iii) who fails to comply with Subsection (9)(a)(iii) is guilty of a class C misdemeanor for
             22676      each offense.
             22677          (b) A person subject to Subsection (9)(a)(iii) is not guilty of a class C misdemeanor
             22678      under this Subsection (11), if:
             22679          (i) the person files a late report; and
             22680          (ii) the division finds that there is good cause for submitting a late report.
             22681          (12) (a) Subject to appellate review under Section 34A-1-303 , the commission has

             22682      exclusive jurisdiction to hear and determine:
             22683          (i) whether goods provided to or services rendered to an employee are compensable
             22684      pursuant to this chapter or Chapter 3, Utah Occupational Disease Act, including:
             22685          (A) medical, nurse, or hospital services;
             22686          (B) medicines; and
             22687          (C) artificial means, appliances, or prosthesis;
             22688          (ii) the reasonableness of the amounts charged or paid for a good or service described
             22689      in Subsection (12)(a)(i); and
             22690          (iii) collection issues related to a good or service described in Subsection (12)(a)(i).
             22691          (b) Except as provided in Subsection (12)(a), Subsection 34A-2-211 (7), or Section
             22692      34A-2-212 , a person may not maintain a cause of action in any forum within this state other
             22693      than the commission for collection or payment for goods or services described in Subsection
             22694      (12)(a) that are compensable under this chapter or Chapter 3, Utah Occupational Disease Act.
             22695          Section 460. Section 34A-2-704 is amended to read:
             22696           34A-2-704. Uninsured Employers' Fund.
             22697          (1) (a) There is created an Uninsured Employers' Fund. The Uninsured Employers'
             22698      Fund has the purpose of assisting in the payment of workers' compensation benefits to any
             22699      person entitled to the benefits, if:
             22700          (i) that person's employer:
             22701          (A) is individually, jointly, or severally liable to pay the benefits; and
             22702          (B) (I) becomes or is insolvent;
             22703          (II) appoints or has appointed a receiver; or
             22704          (III) otherwise does not have sufficient funds, insurance, sureties, or other security to
             22705      cover workers' compensation liabilities; and
             22706          (ii) the employment relationship between that person and the person's employer is
             22707      localized within the state as provided in Subsection (20).
             22708          (b) The Uninsured Employers' Fund succeeds to all monies previously held in the
             22709      Default Indemnity Fund.

             22710          (c) If it becomes necessary to pay benefits, the Uninsured Employers' Fund is liable for
             22711      all obligations of the employer as set forth in this chapter and Chapter 3, Utah Occupational
             22712      Disease Act, with the exception of penalties on those obligations.
             22713          (2) (a) Monies for the Uninsured Employers' Fund shall be deposited into the Uninsured
             22714      Employers' Fund in accordance with this chapter and Subsection 59-9-101 (2).
             22715          (b) The commissioner shall appoint an administrator of the Uninsured Employers' Fund.
             22716          (c) (i) The state treasurer is the custodian of the Uninsured Employers' Fund.
             22717          (ii) The administrator shall make provisions for and direct distribution from the
             22718      Uninsured Employers' Fund.
             22719          (3) Reasonable costs of administering the Uninsured Employers' Fund or other fees
             22720      required to be paid by the Uninsured Employers' Fund may be paid from the Uninsured
             22721      Employers' Fund.
             22722          (4) The state treasurer shall:
             22723          (a) receive workers' compensation premium assessments from the State Tax
             22724      Commission; and
             22725          (b) invest the Uninsured Employers' Fund to ensure maximum investment return for
             22726      both long and short term investments in accordance with Section 51-7-12.5 .
             22727          (5) (a) The administrator may employ, retain, or appoint counsel to represent the
             22728      Uninsured Employers' Fund in all proceedings brought to enforce claims against or on behalf of
             22729      the Uninsured Employers' Fund.
             22730          (b) If requested by the commission, the following shall aid in the representation of the
             22731      Uninsured Employers' Fund:
             22732          (i) the attorney general; or
             22733          (ii) the city attorney, or county attorney of the locality in which:
             22734          (A) any investigation, hearing, or trial under this chapter or Chapter 3, Utah
             22735      Occupational Disease Act, is pending;
             22736          (B) the employee resides; or
             22737          (C) an employer:

             22738          (I) resides; or
             22739          (II) is doing business.
             22740          (6) To the extent of the compensation and other benefits paid or payable to or on behalf
             22741      of an employee or the employee's dependents from the Uninsured Employers' Fund, the
             22742      Uninsured Employers' Fund, by subrogation, has all the rights, powers, and benefits of the
             22743      employee or the employee's dependents against the employer failing to make the compensation
             22744      payments.
             22745          (7) (a) The receiver, trustee, liquidator, or statutory successor of an employer meeting a
             22746      condition listed in Subsection (1)(a)(i)(B) is bound by settlements of covered claims by the
             22747      Uninsured Employers' Fund.
             22748          (b) The court with jurisdiction shall grant all payments made under this section a
             22749      priority equal to that to which the claimant would have been entitled in the absence of this
             22750      section against the assets of the employer meeting a condition listed in Subsection (1)(a)(i)(B).
             22751          (c) The expenses of the Uninsured Employers' Fund in handling claims shall be
             22752      accorded the same priority as the liquidator's expenses.
             22753          (8) (a) The administrator shall periodically file the information described in Subsection
             22754      (8)(b) with the receiver, trustee, or liquidator of:
             22755          (i) an employer that meets a condition listed in Subsection (1)(a)(i)(B);
             22756          (ii) a public agency insurance mutual, as defined in Section 31A-1-103 , that meets a
             22757      condition listed in Subsection (1)(a)(i)(B); or
             22758          (iii) an insolvent insurance carrier.
             22759          (b) The information required to be filed under Subsection (8)(a) is:
             22760          (i) statements of the covered claims paid by the Uninsured Employers' Fund; and
             22761          (ii) estimates of anticipated claims against the Uninsured Employers' Fund.
             22762          (c) The filings under this Subsection (8) shall preserve the rights of the Uninsured
             22763      Employers' Fund for claims against the assets of the employer that meets a condition listed in
             22764      Subsection (1)(a)(i)(B).
             22765          (9) When any injury or death for which compensation is payable from the Uninsured

             22766      Employers' Fund has been caused by the wrongful act or neglect of another person not in the
             22767      same employment, the Uninsured Employers' Fund has the same rights as allowed under Section
             22768      34A-2-106 .
             22769          (10) The Uninsured Employers' Fund, subject to approval of the administrator, shall
             22770      discharge its obligations by:
             22771          (a) adjusting its own claims; or
             22772          (b) contracting with an adjusting company, risk management company, insurance
             22773      company, or other company that has expertise and capabilities in adjusting and paying workers'
             22774      compensation claims.
             22775          (11) (a) For the purpose of maintaining the Uninsured Employers' Fund, an
             22776      administrative law judge, upon rendering a decision with respect to any claim for workers'
             22777      compensation benefits in which an employer that meets a condition listed in Subsection
             22778      (1)(a)(i)(B) was duly joined as a party, shall:
             22779          (i) order the employer that meets a condition listed in Subsection (1)(a)(i)(B) to
             22780      reimburse the Uninsured Employers' Fund for all benefits paid to or on behalf of an injured
             22781      employee by the Uninsured Employers' Fund along with interest, costs, and attorneys' fees; and
             22782          (ii) impose a penalty against the employer that meets a condition listed in Subsection
             22783      (1)(a)(i)(B) of 15% of the value of the total award in connection with the claim that shall be
             22784      paid into the Uninsured Employers' Fund.
             22785          (b) Awards may be docketed as other awards under this chapter and Chapter 3, Utah
             22786      Occupational Disease Act.
             22787          (12) The liability of the state, the commission, and the state treasurer, with respect to
             22788      payment of any compensation benefits, expenses, fees, or disbursement properly chargeable
             22789      against the Uninsured Employers' Fund, is limited to the assets in the Uninsured Employers'
             22790      Fund, and they are not otherwise in any way liable for the making of any payment.
             22791          (13) The commission may make reasonable rules for the processing and payment of
             22792      claims for compensation from the Uninsured Employers' Fund.
             22793          (14) (a) (i) If it becomes necessary for the Uninsured Employers' Fund to pay benefits

             22794      under this section to an employee described in Subsection (14)(a)(ii), the Uninsured Employers'
             22795      Fund may assess all other self-insured employers amounts necessary to pay:
             22796          (A) the obligations of the Uninsured Employers' Fund subsequent to a condition listed
             22797      in Subsection (1)(a)(i)(B) occurring;
             22798          (B) the expenses of handling covered claims subsequent to a condition listed in
             22799      Subsection (1)(a)(i)(B) occurring;
             22800          (C) the cost of examinations under Subsection (15); and
             22801          (D) other expenses authorized by this section.
             22802          (ii) This Subsection (14) applies to benefits paid to an employee of:
             22803          (A) a self-insured employer, as defined in Section 34A-2-201.5 , that meets a condition
             22804      listed in Subsection (1)(a)(i)(B); or
             22805          (B) if the self-insured employer that meets a condition described in Subsection
             22806      (1)(a)(i)(B) is a public agency insurance mutual, a member of the public agency insurance
             22807      mutual.
             22808          (b) The assessments of each self-insured employer shall be in the proportion that the
             22809      manual premium of the self-insured employer for the preceding calendar year bears to the
             22810      manual premium of all self-insured employers for the preceding calendar year.
             22811          (c) Each self-insured employer shall be notified of the self-insured employer's
             22812      assessment not later than 30 days before the day on which the assessment is due.
             22813          (d) (i) A self-insured employer may not be assessed in any year an amount greater than
             22814      2% of that self-insured employer's manual premium for the preceding calendar year.
             22815          (ii) If the maximum assessment does not provide in any one year an amount sufficient to
             22816      make all necessary payments from the Uninsured Employers' Fund for one or more self-insured
             22817      employers that meet a condition listed in Subsection (1)(a)(i)(B), the unpaid portion shall be
             22818      paid as soon as funds become available.
             22819          (e) All self-insured employers are liable under this section for a period not to exceed
             22820      three years after the day on which the Uninsured Employers' Fund first pays benefits to an
             22821      employee described in Subsection (14)(a)(ii) for the self-insured employer that meets a

             22822      condition listed in Subsection (1)(a)(i)(B).
             22823          (f) This Subsection (14) does not apply to claims made against a self-insured employer
             22824      that meets a condition listed in Subsection (1)(a)(i)(B) if the condition listed in Subsection
             22825      (1)(a)(i)(B) occurred prior to July 1, 1986.
             22826          (15) (a) The following shall notify the division of any information indicating that any of
             22827      the following may be insolvent or in a financial condition hazardous to its employees or the
             22828      public:
             22829          (i) a self-insured employer; or
             22830          (ii) if the self-insured employer is a public agency insurance mutual, a member of the
             22831      public agency insurance mutual.
             22832          (b) Upon receipt of the notification described in Subsection (15)(a) and with good
             22833      cause appearing, the division may order an examination of:
             22834          (i) that self-insured employer; or
             22835          (ii) if the self-insured employer is a public agency insurance mutual, a member of the
             22836      public agency mutual.
             22837          (c) The cost of the examination ordered under Subsection (15)(b) shall be assessed
             22838      against all self-insured employers as provided in Subsection (14).
             22839          (d) The results of the examination ordered under Subsection (15)(b) shall be kept
             22840      confidential.
             22841          (16) (a) In any claim against an employer by the Uninsured Employers' Fund, or by or
             22842      on behalf of the employee to whom or to whose dependents compensation and other benefits
             22843      are paid or payable from the Uninsured Employers' Fund, the burden of proof is on the
             22844      employer or other party in interest objecting to the claim.
             22845          (b) The claim described in Subsection (16)(a) is presumed to be valid up to the full
             22846      amount of workers' compensation benefits claimed by the employee or the employee's
             22847      dependents.
             22848          (c) This Subsection (16) applies whether the claim is filed in court or in an adjudicative
             22849      proceeding under the authority of the commission.

             22850          (17) A partner in a partnership or an owner of a sole proprietorship may not recover
             22851      compensation or other benefits from the Uninsured Employers' Fund if:
             22852          (a) the person is not included as an employee under Subsection 34A-2-104 (3); or
             22853          (b) the person is included as an employee under Subsection 34A-2-104 (3), but:
             22854          (i) the person's employer fails to insure or otherwise provide adequate payment of direct
             22855      compensation; and
             22856          (ii) the failure described in Subsection (17)(b)(i) is attributable to an act or omission
             22857      over which the person had or shared control or responsibility.
             22858          (18) A director or officer of a corporation may not recover compensation or other
             22859      benefits from the Uninsured Employers' Fund if the director or officer is excluded from
             22860      coverage under Subsection 34A-2-104 (4).
             22861          (19) The Uninsured Employers' Fund:
             22862          (a) shall be:
             22863          (i) used in accordance with this section only for:
             22864          (A) the purpose of assisting in the payment of workers' compensation benefits in
             22865      accordance with Subsection (1); and
             22866          (B) in accordance with Subsection (3), payment of:
             22867          (I) reasonable costs of administering the Uninsured Employers' Fund; or
             22868          (II) fees required to be paid by the Uninsured Employers' Fund; and
             22869          (ii) expended according to processes that can be verified by audit; and
             22870          (b) may not be used for:
             22871          (i) administrative costs unrelated to the Uninsured Employers' Fund; or
             22872          (ii) any activity of the commission other than an activity described in Subsection
             22873      (19)(a).
             22874          (20) (a) For purposes of Subsection (1), an employment relationship is localized in the
             22875      state if:
             22876          (i) (A) the employer who is liable for the benefits has a business premise in the state;
             22877      and

             22878          (B) (I) the contract for hire is entered into in the state; or
             22879          (II) the employee regularly performs work duties in the state for the employer who is
             22880      liable for the benefits; or
             22881          (ii) the employee is:
             22882          (A) a resident of the state; and
             22883          (B) regularly performs work duties in the state for the employer who is liable for the
             22884      benefits.
             22885          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             22886      Administrative Rulemaking Act, the commission shall by rule define what constitutes regularly
             22887      performing work duties in the state.
             22888          Section 461. Section 34A-2-801 is amended to read:
             22889           34A-2-801. Initiating adjudicative proceedings -- Procedure for review of
             22890      administrative action.
             22891          (1) (a) To contest an action of the employee's employer or its insurance carrier
             22892      concerning a compensable industrial accident or occupational disease alleged by the employee,
             22893      any of the following shall file an application for hearing with the Division of Adjudication:
             22894          (i) the employee; or
             22895          (ii) a representative of the employee, the qualifications of whom are defined in rule by
             22896      the commission.
             22897          (b) To appeal the imposition of a penalty or other administrative act imposed by the
             22898      division on the employer or its insurance carrier for failure to comply with this chapter or
             22899      Chapter 3, Utah Occupational Disease Act, any of the following shall file an application for
             22900      hearing with the Division of Adjudication:
             22901          (i) the employer;
             22902          (ii) the insurance carrier; or
             22903          (iii) a representative of either the employer or the insurance carrier, the qualifications of
             22904      whom are defined in rule by the commission.
             22905          (c) A person providing goods or services described in Subsections 34A-2-407 (12) and

             22906      34A-3-108 (12) may file an application for hearing in accordance with Section 34A-2-407 or
             22907      34A-3-108 .
             22908          (d) An attorney may file an application for hearing in accordance with Section
             22909      34A-1-309 .
             22910          (2) Unless a party in interest appeals the decision of an administrative law judge in
             22911      accordance with Subsection (3), the decision of an administrative law judge on an application
             22912      for hearing filed under Subsection (1) is a final order of the commission 30 days after the date
             22913      the decision is issued.
             22914          (3) (a) A party in interest may appeal the decision of an administrative law judge by
             22915      filing a motion for review with the Division of Adjudication within 30 days of the date the
             22916      decision is issued.
             22917          (b) Unless a party in interest to the appeal requests under Subsection (3)(c) that the
             22918      appeal be heard by the Appeals Board, the commissioner shall hear the review.
             22919          (c) A party in interest may request that an appeal be heard by the Appeals Board by
             22920      filing the request with the Division of Adjudication:
             22921          (i) as part of the motion for review; or
             22922          (ii) if requested by a party in interest who did not file a motion for review, within 20
             22923      days of the date the motion for review is filed with the Division of Adjudication.
             22924          (d) A case appealed to the Appeals Board shall be decided by the majority vote of the
             22925      Appeals Board.
             22926          (4) All records on appeals shall be maintained by the Division of Adjudication. Those
             22927      records shall include an appeal docket showing the receipt and disposition of the appeals on
             22928      review.
             22929          (5) Upon appeal, the commissioner or Appeals Board shall make its decision in
             22930      accordance with Section 34A-1-303 .
             22931          (6) The commissioner or Appeals Board shall promptly notify the parties to any
             22932      proceedings before it of its decision, including its findings and conclusions.
             22933          (7) The decision of the commissioner or Appeals Board is final unless within 30 days

             22934      after the date the decision is issued further appeal is initiated under the provisions of this section
             22935      or [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             22936          (8) (a) Within 30 days after the date the decision of the commissioner or Appeals Board
             22937      is issued, any aggrieved party may secure judicial review by commencing an action in the court
             22938      of appeals against the commissioner or Appeals Board for the review of the decision of the
             22939      commissioner or Appeals Board.
             22940          (b) In an action filed under Subsection (8)(a):
             22941          (i) any other party to the proceeding before the commissioner or Appeals Board shall be
             22942      made a party; and
             22943          (ii) the commission shall be made a party.
             22944          (c) A party claiming to be aggrieved may seek judicial review only if the party has
             22945      exhausted the party's remedies before the commission as provided by this section.
             22946          (d) At the request of the court of appeals, the commission shall certify and file with the
             22947      court all documents and papers and a transcript of all testimony taken in the matter together
             22948      with the decision of the commissioner or Appeals Board.
             22949          Section 462. Section 34A-5-102 is amended to read:
             22950           34A-5-102. Definitions.
             22951          As used in this chapter:
             22952          (1) "Apprenticeship" means a program for the training of apprentices including a
             22953      program providing the training of those persons defined as apprentices by Section 35A-6-102 .
             22954          (2) "Bona fide occupational qualification" means a characteristic applying to an
             22955      employee:
             22956          (a) that is necessary to the operation; or
             22957          (b) is the essence of the employee's employer's business.
             22958          (3) "Court" means:
             22959          (a) the district court in the judicial district of the state in which the asserted unfair
             22960      employment practice occurred; or
             22961          (b) if this court is not in session at that time, a judge of the court described in

             22962      Subsection (3)(a).
             22963          (4) "Director" means the director of the division.
             22964          (5) "Disability" means a physical or mental disability as defined and covered by the
             22965      Americans with Disabilities Act of 1990, 42 U.S.C. 12102.
             22966          (6) "Division" means the Division of Antidiscrimination and Labor.
             22967          (7) "Employee" means any person applying with or employed by an employer.
             22968          (8) (a) "Employer" means:
             22969          (i) the state;
             22970          (ii) any political subdivision;
             22971          (iii) a board, commission, department, institution, school district, trust, or agent of the
             22972      state or its political subdivisions; or
             22973          (iv) a person employing 15 or more employees within the state for each working day in
             22974      each of 20 calendar weeks or more in the current or preceding calendar year.
             22975          (b) "Employer" does not include:
             22976          (i) a religious organization or association;
             22977          (ii) a religious corporation sole; or
             22978          (iii) any corporation or association constituting a wholly owned subsidiary or agency of
             22979      any religious organization or association or religious corporation sole.
             22980          (9) "Employment agency" means any person:
             22981          (a) undertaking to procure employees or opportunities to work for any other person; or
             22982          (b) holding itself out to be equipped to take an action described in Subsection (9)(a).
             22983          (10) "Joint apprenticeship committee" means any association of representatives of a
             22984      labor organization and an employer providing, coordinating, or controlling an apprentice
             22985      training program.
             22986          (11) "Labor organization" means any organization that exists for the purpose in whole
             22987      or in part of:
             22988          (a) collective bargaining;
             22989          (b) dealing with employers concerning grievances, terms or conditions of employment;

             22990      or
             22991          (c) other mutual aid or protection in connection with employment.
             22992          (12) "National origin" means the place of birth, domicile, or residence of an individual
             22993      or of an individual's ancestors.
             22994          (13) "On-the-job-training" means any program designed to instruct a person who, while
             22995      learning the particular job for which the person is receiving instruction:
             22996          (a) is also employed at that job; or
             22997          (b) may be employed by the employer conducting the program during the course of the
             22998      program, or when the program is completed.
             22999          (14) "Person" means one or more individuals, partnerships, associations, corporations,
             23000      legal representatives, trusts or trustees, receivers, the state and all political subdivisions and
             23001      agencies of the state.
             23002          (15) "Presiding officer" means the same as that term is defined in Section [ 63-46b-2 ]
             23003      63G-4-103 .
             23004          (16) "Prohibited employment practice" means a practice specified as discriminatory, and
             23005      therefore unlawful, in Section 34A-5-106 .
             23006          (17) "Retaliate" means the taking of adverse action by an employer, employment
             23007      agency, labor organization, apprenticeship program, on-the-job training program, or vocational
             23008      school against one of its employees, applicants, or members because the employee, applicant, or
             23009      member:
             23010          (a) has opposed any employment practice prohibited under this chapter; or
             23011          (b) filed charges, testified, assisted, or participated in any way in any proceeding,
             23012      investigation, or hearing under this chapter.
             23013          (18) "Vocational school" means any school or institution conducting a course of
             23014      instruction, training, or retraining to prepare individuals to follow an occupation or trade, or to
             23015      pursue a manual, technical, industrial, business, commercial, office, personal services, or other
             23016      nonprofessional occupations.
             23017          Section 463. Section 34A-5-107 is amended to read:

             23018           34A-5-107. Procedure for aggrieved person to file claim -- Investigations --
             23019      Adjudicative proceedings -- Settlement -- Reconsideration -- Determination.
             23020          (1) (a) Any person claiming to be aggrieved by a discriminatory or prohibited
             23021      employment practice may, or that person's attorney or agent may, make, sign, and file with the
             23022      division a request for agency action.
             23023          (b) Every request for agency action shall be verified under oath or affirmation.
             23024          (c) A request for agency action made under this section shall be filed within 180 days
             23025      after the alleged discriminatory or prohibited employment practice occurred.
             23026          (d) The division may transfer a request for agency action filed with the division
             23027      pursuant to this section to the federal Equal Employment Opportunity Commission in
             23028      accordance with the provisions of any work-share agreement that is:
             23029          (i) between the division and the Equal Employment Opportunity Commission; and
             23030          (ii) in effect on the day on which the request for agency action is transferred.
             23031          (2) Any employer, labor organization, joint apprenticeship committee, or vocational
             23032      school who has an employee or member who refuses or threatens to refuse to comply with this
             23033      chapter may file with the division a request for agency action asking the division for assistance
             23034      to obtain the employee's or member's compliance by conciliation or other remedial action.
             23035          (3) (a) Before a hearing is set or held as part of any adjudicative proceeding, the
             23036      division shall promptly assign an investigator to attempt a settlement between the parties by
             23037      conference, conciliation, or persuasion.
             23038          (b) If no settlement is reached, the investigator shall make a prompt impartial
             23039      investigation of all allegations made in the request for agency action.
             23040          (c) The division and its staff, agents, and employees:
             23041          (i) shall conduct every investigation in fairness to all parties and agencies involved; and
             23042          (ii) may not attempt a settlement between the parties if it is clear that no discriminatory
             23043      or prohibited employment practice has occurred.
             23044          (d) An aggrieved party may withdraw the request for agency action prior to the
             23045      issuance of a final order.

             23046          (4) (a) If the initial attempts at settlement are unsuccessful, and the investigator
             23047      uncovers insufficient evidence during the investigation to support the allegations of a
             23048      discriminatory or prohibited employment practice set out in the request for agency action, the
             23049      investigator shall formally report these findings to the director or the director's designee.
             23050          (b) Upon receipt of the investigator's report described in Subsection (4)(a), the director
             23051      or the director's designee may issue a determination and order for dismissal of the adjudicative
             23052      proceeding.
             23053          (c) A party may make a written request to the Division of Adjudication for an
             23054      evidentiary hearing to review de novo the director's or the director's designee's determination
             23055      and order within 30 days of the date the determination and order for dismissal is issued.
             23056          (d) If the director or the director's designee receives no timely request for a hearing, the
             23057      determination and order issued by the director or the director's designee becomes the final order
             23058      of the commission.
             23059          (5) (a) If the initial attempts at settlement are unsuccessful and the investigator
             23060      uncovers sufficient evidence during the investigation to support the allegations of a
             23061      discriminatory or prohibited employment practice set out in the request for agency action, the
             23062      investigator shall formally report these findings to the director or the director's designee.
             23063          (b) (i) Upon receipt of the investigator's report described in Subsection (5)(a), the
             23064      director or the director's designee may issue a determination and order based on the
             23065      investigator's report.
             23066          (ii) A determination and order issued under this Subsection (5)(b) shall:
             23067          (A) direct the respondent to cease any discriminatory or prohibited employment
             23068      practice; and
             23069          (B) provide relief to the aggrieved party as the director or the director's designee
             23070      determines is appropriate.
             23071          (c) A party may file a written request to the Division of Adjudication for an evidentiary
             23072      hearing to review de novo the director's or the director's designee's determination and order
             23073      within 30 days of the date the determination and order is issued.

             23074          (d) If the director or the director's designee receives no timely request for a hearing, the
             23075      determination and order issued by the director or the director's designee in accordance with
             23076      Subsection (5)(b) becomes the final order of the commission.
             23077          (6) In any adjudicative proceeding to review the director's or the director's designee's
             23078      determination that a prohibited employment practice has occurred, the division shall present the
             23079      factual and legal basis of the determination or order issued under Subsection (5).
             23080          (7) (a) Prior to commencement of an evidentiary hearing:
             23081          (i) the party filing the request for agency action may reasonably and fairly amend any
             23082      allegation; and
             23083          (ii) the respondent may amend its answer.
             23084          (b) An amendment permitted under this Subsection (7) may be made:
             23085          (i) during or after a hearing; and
             23086          (ii) only with permission of the presiding officer.
             23087          (8) (a) If, upon all the evidence at a hearing, the presiding officer finds that a
             23088      respondent has not engaged in a discriminatory or prohibited employment practice, the presiding
             23089      officer shall issue an order dismissing the request for agency action containing the allegation of
             23090      a discriminatory or prohibited employment practice.
             23091          (b) The presiding officer may order that the respondent be reimbursed by the
             23092      complaining party for the respondent's attorneys' fees and costs.
             23093          (9) If upon all the evidence at the hearing, the presiding officer finds that a respondent
             23094      has engaged in a discriminatory or prohibited employment practice, the presiding officer shall
             23095      issue an order requiring the respondent to:
             23096          (a) cease any discriminatory or prohibited employment practice; and
             23097          (b) provide relief to the complaining party, including:
             23098          (i) reinstatement;
             23099          (ii) back pay and benefits;
             23100          (iii) attorneys' fees; and
             23101          (iv) costs.

             23102          (10) Conciliation between the parties is to be urged and facilitated at all stages of the
             23103      adjudicative process.
             23104          (11) (a) Either party may file with the Division of Adjudication a written request for
             23105      review before the commissioner or Appeals Board of the order issued by the presiding officer in
             23106      accordance with:
             23107          (i) Section [ 63-46b-12 ] 63G-4-301 ; and
             23108          (ii) Chapter 1, Part 3, Adjudicative Proceedings.
             23109          (b) If there is no timely request for review, the order issued by the presiding officer
             23110      becomes the final order of the commission.
             23111          (12) An order of the commission under Subsection (11)(a) is subject to judicial review
             23112      as provided in:
             23113          (a) Section [ 63-46b-16 ] 63G-4-403 ; and
             23114          (b) Chapter 1, Part 3, Adjudicative Proceedings.
             23115          (13) The commission shall have authority to make rules concerning procedures under
             23116      this chapter in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             23117      Administrative Rulemaking Act.
             23118          (14) The commission and its staff may not divulge or make public any information
             23119      gained from any investigation, settlement negotiation, or proceeding before the commission
             23120      except as provided in Subsections (14)(a) through (d).
             23121          (a) Information used by the director or the director's designee in making any
             23122      determination may be provided to all interested parties for the purpose of preparation for and
             23123      participation in proceedings before the commission.
             23124          (b) General statistical information may be disclosed provided the identities of the
             23125      individuals or parties are not disclosed.
             23126          (c) Information may be disclosed for inspection by the attorney general or other legal
             23127      representatives of the state or the commission.
             23128          (d) Information may be disclosed for information and reporting requirements of the
             23129      federal government.

             23130          (15) The procedures contained in this section are the exclusive remedy under state law
             23131      for employment discrimination based upon:
             23132          (a) race;
             23133          (b) color;
             23134          (c) sex;
             23135          (d) retaliation;
             23136          (e) pregnancy, childbirth, or pregnancy-related conditions;
             23137          (f) age;
             23138          (g) religion;
             23139          (h) national origin; or
             23140          (i) disability.
             23141          (16) (a) The commencement of an action under federal law for relief based upon any act
             23142      prohibited by this chapter bars the commencement or continuation of any adjudicative
             23143      proceeding before the commission in connection with the same claims under this chapter.
             23144          (b) The transfer of a request for agency action to the Equal Employment Opportunity
             23145      Commission in accordance with Subsection (1)(d) is considered the commencement of an action
             23146      under federal law for purposes of Subsection (16)(a).
             23147          (c) Nothing in this Subsection (16) is intended to alter, amend, modify, or impair the
             23148      exclusive remedy provision set forth in Subsection (15).
             23149          Section 464. Section 34A-5-108 is amended to read:
             23150           34A-5-108. Judicial enforcement of division findings.
             23151          (1) The commission or the attorney general at the request of the commission shall
             23152      commence an action under Section [ 63-46b-19 ] 63G-4-501 for civil enforcement of a final
             23153      order of the commission issued under Subsection 34A-5-107 (11) if:
             23154          (a) the order finds that there is reasonable cause to believe that a respondent has
             23155      engaged or is engaging in discriminatory or prohibited employment practices made unlawful by
             23156      this chapter;
             23157          (b) counsel to the commission or the attorney general determines after reasonable

             23158      inquiry that the order is well grounded in fact and is warranted by existing law;
             23159          (c) the respondent has not received an order of automatic stay or discharge from the
             23160      United States Bankruptcy Court; and
             23161          (d) (i) the commission has not accepted a conciliation agreement to which the aggrieved
             23162      party and respondent are parties; or
             23163          (ii) the respondent has not conciliated or complied with the final order of the
             23164      commission within 30 days from the date the order is issued.
             23165          (2) If the respondent seeks judicial review of the final order under Section [ 63-46b-16 ]
             23166      63G-4-403 , pursuant to Section [ 63-46b-18 ] 63G-4-405 the commission may stay seeking civil
             23167      enforcement pending the completion of the judicial review.
             23168          Section 465. Section 34A-6-103 is amended to read:
             23169           34A-6-103. Definitions.
             23170          As used in this chapter:
             23171          (1) "Administrator" means the director of the Division of Occupational Safety and
             23172      Health.
             23173          (2) "Amendment" means such modification or change in a code, standard, rule, or order
             23174      intended for universal or general application.
             23175          (3) "Commission" means the Labor Commission.
             23176          (4) "Council" means the Utah Occupational Safety and Health Advisory Council.
             23177          (5) "Division" means the Division of Occupational Safety and Health.
             23178          (6) "Employee" includes any person suffered or permitted to work by an employer.
             23179          (7) "Employer" means:
             23180          (a) the state;
             23181          (b) each county, city, town, and school district in the state; and
             23182          (c) every person, firm, and private corporation, including public utilities, having one or
             23183      more workers or operatives regularly employed in the same business, or in or about the same
             23184      establishment, under any contract of hire.
             23185          (8) "Hearing" means a proceeding conducted by the commission.

             23186          (9) "Imminent danger" means a danger exists which reasonably could be expected to
             23187      cause an occupational disease, death, or serious physical harm immediately, or before the
             23188      danger could be eliminated through enforcement procedures under this chapter.
             23189          (10) "National consensus standard" means any occupational safety and health standard
             23190      or modification:
             23191          (a) adopted by a nationally recognized standards-producing organization under
             23192      procedures where it can be determined by the administrator and division that persons interested
             23193      and affected by the standard have reached substantial agreement on its adoption;
             23194          (b) formulated in a manner which affords an opportunity for diverse views to be
             23195      considered; and
             23196          (c) designated as such a standard by the Secretary of the United States Department of
             23197      Labor.
             23198          (11) "Person" means the general public, one or more individuals, partnerships,
             23199      associations, corporations, legal representatives, trustees, receivers, and the state and its
             23200      political subdivisions.
             23201          (12) "Publish" means publication in accordance with [Title 63, Chapter 46a] Title 63G,
             23202      Chapter 3, Utah Administrative Rulemaking Act.
             23203          (13) "Secretary" means the Secretary of the United States Department of Labor.
             23204          (14) "Standard" means an occupational health and safety standard or group of standards
             23205      which requires conditions, or the adoption or use of one or more practices, means, methods,
             23206      operations, or processes, reasonably necessary to provide safety and healthful employment and
             23207      places of employment.
             23208          (15) "Variance" means a special, limited modification or change in the code or standard
             23209      applicable to the particular establishment of the employer or person petitioning for the
             23210      modification or change.
             23211          (16) "Workplace" means any place of employment.
             23212          Section 466. Section 34A-6-105 is amended to read:
             23213           34A-6-105. Procedures -- Adjudicative proceedings.

             23214          The commission, the division, and the administrator shall comply with the procedures
             23215      and requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures
             23216      Act, in any adjudicative proceedings that they conduct under this chapter.
             23217          Section 467. Section 34A-6-202 is amended to read:
             23218           34A-6-202. Standards -- Procedure for issuance, modification, or revocation by
             23219      division -- Emergency temporary standard -- Variances from standards -- Statement of
             23220      reasons for administrator's actions -- Judicial review -- Priority for establishing
             23221      standards.
             23222          (1) (a) The division, as soon as practicable, shall issue as standards any national
             23223      consensus standard, any adopted federal standard, or any adopted Utah standard, unless it
             23224      determines that issuance of the standard would not result in improved safety or health.
             23225          (b) All codes, standards, and rules adopted under Subsection (1)(a) shall take effect 30
             23226      days after publication unless otherwise specified.
             23227          (c) If any conflict exists between standards, the division shall issue the standard that
             23228      assures the greatest protection of safety or health for affected employees.
             23229          (2) The division may issue, modify, or revoke any standard as follows:
             23230          (a) (i) Whenever the administrator determines upon the basis of information submitted
             23231      in writing by an interested person, a representative of any organization of employers or
             23232      employees, a nationally recognized standards-producing organization, the Department of
             23233      Health, or a state agency or political subdivision, or on information developed by the division or
             23234      otherwise available, that a rule should be promulgated to promote the objectives of this chapter,
             23235      the administrator may request recommendations from the advisory council.
             23236          (ii) The administrator shall provide the advisory council with proposals, together with
             23237      all pertinent factual information developed by the division, or otherwise available, including the
             23238      results of research, demonstrations, and experiments.
             23239          (iii) The advisory council shall submit to the administrator its recommendations
             23240      regarding the rule to be promulgated within a period as prescribed by the administrator.
             23241          (b) The division shall publish a proposed rule issuing, modifying, or revoking an

             23242      occupational safety or health standard and shall afford interested parties an opportunity to
             23243      submit written data or comments as prescribed by [Title 63, Chapter 46a] Title 63G, Chapter 3,
             23244      Utah Administrative Rulemaking Act. When the administrator determines that a rule should be
             23245      issued, the division shall publish the proposed rule after the submission of the advisory council's
             23246      recommendations or the expiration of the period prescribed by the administrator for submission.
             23247          (c) The administrator, in issuing standards for toxic materials or harmful physical agents
             23248      under this subsection, shall set the standard which most adequately assures, to the extent
             23249      feasible, on the basis of the best available evidence, that no employee will suffer material
             23250      impairment of health or functional capacity even if the employee has regular exposure to the
             23251      hazard during an employee's working life. Development of standards under this subsection shall
             23252      be based upon research, demonstrations, experiments, and other information deemed
             23253      appropriate. In addition to the attainment of the highest degree of health and safety protection
             23254      for the employee, other considerations shall be the latest available scientific data in the field, the
             23255      feasibility of the standards, and experience under this and other health and safety laws.
             23256      Whenever practicable, the standard shall be expressed in terms of objective criteria and of the
             23257      performance desired.
             23258          (d) (i) Any employer may apply to the administrator for a temporary order granting a
             23259      variance from a standard issued under this section. Temporary orders shall be granted only if
             23260      the employer:
             23261          (A) files an application which meets the requirements of Subsection (2)(d)(iv);
             23262          (B) establishes that the employer is unable to comply with a standard by its effective
             23263      date because of unavailability of professional or technical personnel or of materials and
             23264      equipment needed for compliance with the standard or because necessary construction or
             23265      alteration of facilities cannot be completed by the effective date;
             23266          (C) establishes that the employer is taking all available steps to safeguard the employer's
             23267      employees against hazards; and
             23268          (D) establishes that the employer has an effective program for compliance as quickly as
             23269      practicable.

             23270          (ii) Any temporary order shall prescribe the practices, means, methods, operations, and
             23271      processes which the employer must adopt and use while the order is in effect and state in detail
             23272      the employer's program for compliance with the standard. A temporary order may be granted
             23273      only after notice to employees and an opportunity for a public hearing; provided, that the
             23274      administrator may issue one interim order effective until a decision is made after public hearing.
             23275          (iii) A temporary order may not be in effect longer than the period reasonably required
             23276      by the employer to achieve compliance. In no case shall the period of a temporary order exceed
             23277      one year.
             23278          (iv) An application for a temporary order under Subsection (2)(d) shall contain:
             23279          (A) a specification of the standard or part from which the employer seeks a variance;
             23280          (B) a representation by the employer, supported by representations from qualified
             23281      persons having first-hand knowledge of the facts represented, that the employer is unable to
             23282      comply with the standard or some part of the standard;
             23283          (C) a detailed statement of the reasons the employer is unable to comply;
             23284          (D) a statement of the measures taken and anticipated with specific dates, to protect
             23285      employees against the hazard;
             23286          (E) a statement of when the employer expects to comply with the standard and what
             23287      measures the employer has taken and those anticipated, giving specific dates for compliance;
             23288      and
             23289          (F) a certification that the employer has informed the employer's employees of the
             23290      application by:
             23291          (I) giving a copy to their authorized representative;
             23292          (II) posting a statement giving a summary of the application and specifying where a
             23293      copy may be examined at the place or places where notices to employees are normally posted;
             23294      and
             23295          (III) by other appropriate means.
             23296          (v) The certification required under Subsection (2)(d)(iv) shall contain a description of
             23297      how employees have been informed.

             23298          (vi) The information to employees required under Subsection (2)(d)(v) shall inform the
             23299      employees of their right to petition the division for a hearing.
             23300          (vii) The administrator is authorized to grant a variance from any standard or some part
             23301      of the standard when the administrator determines that it is necessary to permit an employer to
             23302      participate in a research and development project approved by the administrator to demonstrate
             23303      or validate new and improved techniques to safeguard the health or safety of workers.
             23304          (e) (i) Any standard issued under this subsection shall prescribe the use of labels or
             23305      other forms of warning necessary to ensure that employees are apprised of all hazards, relevant
             23306      symptoms and emergency treatment, and proper conditions and precautions of safe use or
             23307      exposure. When appropriate, a standard shall prescribe suitable protective equipment and
             23308      control or technological procedures for use in connection with such hazards and provide for
             23309      monitoring or measuring employee exposure at such locations and intervals, and in a manner
             23310      necessary for the protection of employees. In addition, any such standard shall prescribe the
             23311      type and frequency of medical examinations or other tests which shall be made available by the
             23312      employer, or at [his] the employer's cost, to employees exposed to hazards in order to most
             23313      effectively determine whether the health of employees is adversely affected by exposure. If
             23314      medical examinations are in the nature of research as determined by the division, the
             23315      examinations may be furnished at division expense. The results of such examinations or tests
             23316      shall be furnished only to the division; and, at the request of the employee, to the employee's
             23317      physician.
             23318          (ii) The administrator may by rule make appropriate modifications in requirements for
             23319      the use of labels or other forms of warning, monitoring or measuring, and medical examinations
             23320      warranted by experience, information, or medical or technological developments acquired
             23321      subsequent to the promulgation of the relevant standard.
             23322          (f) Whenever a rule issued by the administrator differs substantially from an existing
             23323      national consensus standard, the division shall publish a statement of the reasons why the rule as
             23324      adopted will better effectuate the purposes of this chapter than the national consensus standard.
             23325          (g) Whenever a rule, standard, or national consensus standard is modified by the

             23326      secretary so as to make less restrictive the federal Williams-Steiger Occupational Safety and
             23327      Health Act of 1970, the less restrictive modification shall be immediately applicable to this
             23328      chapter and shall be immediately implemented by the division.
             23329          (3) (a) The administrator shall provide an emergency temporary standard to take
             23330      immediate effect upon publication if the administrator determines that:
             23331          (i) employees are exposed to grave danger from exposure to substances or agents
             23332      determined to be toxic or physically harmful or from new hazards; and
             23333          (ii) that the standard is necessary to protect employees from danger.
             23334          (b) An emergency standard shall be effective until superseded by a standard issued in
             23335      accordance with the procedures prescribed in Subsection (3)(c).
             23336          (c) Upon publication of an emergency standard the division shall commence a
             23337      proceeding in accordance with Subsection (2) and the standard as published shall serve as a
             23338      proposed rule for the proceedings. The division shall issue a standard under Subsection (3) no
             23339      later than 120 days after publication of the emergency standard.
             23340          (4) (a) Any affected employer may apply to the division for a rule or order for a
             23341      variance from a standard issued under this section. Affected employees shall be given notice of
             23342      each application and may participate in a hearing. The administrator shall issue a rule or order if
             23343      the administrator determines on the record, after opportunity for an inspection where
             23344      appropriate and a hearing, that the proponent of the variance has demonstrated by a
             23345      preponderance of the evidence that the conditions, practices, means, methods, operations, or
             23346      processes used or proposed to be used by an employer will provide employment and a
             23347      workplace to the employer's employees that are as safe and healthful as those which would
             23348      prevail if the employer complied with the standard.
             23349          (b) The rule or order issued under Subsection (4)(a) shall prescribe the conditions the
             23350      employer must maintain, and the practices, means, methods, operations and processes that the
             23351      employer must adopt and use to the extent they differ from the standard in question.
             23352          (c) A rule or order issued under Subsection (4)(a) may be modified or revoked upon
             23353      application by an employer, employees, or by the administrator on its own motion, in the

             23354      manner prescribed for its issuance under Subsection (4) at any time after six months from its
             23355      issuance.
             23356          (5) The administrator shall include a statement of reasons for the administrator's actions
             23357      when the administrator:
             23358          (a) issues any code, standard, rule, or order;
             23359          (b) grants any exemption or extension of time; or
             23360          (c) compromises, mitigates, or settles any penalty assessed under this chapter.
             23361          (6) Any person adversely affected by a standard issued under this section, at any time
             23362      prior to 60 days after a standard is issued, may file a petition challenging its validity with the
             23363      district court having jurisdiction for judicial review. A copy of the petition shall be served upon
             23364      the division by the petitioner. The filing of a petition shall not, unless otherwise ordered by the
             23365      court, operate as a stay of the standard. The determinations of the division shall be conclusive if
             23366      supported by substantial evidence on the record as a whole.
             23367          (7) In determining the priority for establishing standards under this section, the division
             23368      shall give due regard to the urgency of the need for mandatory safety and health standards for
             23369      particular industries, trades, crafts, occupations, businesses, workplaces or work environments.
             23370      The administrator shall also give due regard to the recommendations of the Department of
             23371      Health about the need for mandatory standards in determining the priority for establishing the
             23372      standards.
             23373          Section 468. Section 34A-6-301 is amended to read:
             23374           34A-6-301. Inspection and investigation of workplace, worker injury, illness, or
             23375      complaint -- Warrants -- Attendance of witnesses -- Recordkeeping by employers --
             23376      Employer and employee representatives -- Request for inspection -- Compilation and
             23377      publication of reports and information -- Rules.
             23378          (1) (a) The division or its representatives, upon presenting appropriate credentials to the
             23379      owner, operator, or agent in charge, may:
             23380          (i) enter without delay at reasonable times any workplace where work is performed by
             23381      an employee of an employer;

             23382          (ii) inspect and investigate during regular working hours and at other reasonable times
             23383      in a reasonable manner, any workplace, worker injury, occupational disease, or complaint and
             23384      all pertinent methods, operations, processes, conditions, structures, machines, apparatus,
             23385      devices, equipment, and materials in the workplace; and
             23386          (iii) question privately any such employer, owner, operator, agent, or employee.
             23387          (b) The division, upon an employer's refusal to permit an inspection, may seek a warrant
             23388      pursuant to the Utah Rules of Criminal Procedure.
             23389          (2) (a) The division or its representatives may require the attendance and testimony of
             23390      witnesses and the production of evidence under oath.
             23391          (b) Witnesses shall receive fees and mileage in accordance with Section 78-46-28 .
             23392          (c) (i) If any person fails or refuses to obey an order of the division to appear, any
             23393      district court within the jurisdiction of which such person is found, or resides or transacts
             23394      business, upon the application by the division, shall have jurisdiction to issue to any person an
             23395      order requiring that person to:
             23396          (A) appear to produce evidence if, as, and when so ordered; and
             23397          (B) give testimony relating to the matter under investigation or in question.
             23398          (ii) Any failure to obey an order of the court described in this Subsection (2)(c) may be
             23399      punished by the court as a contempt.
             23400          (3) (a) The commission shall make rules in accordance with [Title 63, Chapter 46a]
             23401      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, requiring employers:
             23402          (i) to keep records regarding activities related to this chapter considered necessary for
             23403      enforcement or for the development of information about the causes and prevention of
             23404      occupational accidents and diseases; and
             23405          (ii) through posting of notices or other means, to inform employees of their rights and
             23406      obligations under this chapter including applicable standards.
             23407          (b) The commission shall make rules in accordance with [Title 63, Chapter 46a] Title
             23408      63G, Chapter 3, Utah Administrative Rulemaking Act, requiring employers to keep records
             23409      regarding any work-related death and injury and any occupational disease as provided in this

             23410      Subsection (3)(b).
             23411          (i) Each employer shall investigate or cause to be investigated all work-related injuries
             23412      and occupational diseases and any sudden or unusual occurrence or change of conditions that
             23413      pose an unsafe or unhealthful exposure to employees.
             23414          (ii) Each employer shall, within eight hours of occurrence, notify the division of any:
             23415          (A) work-related fatality;
             23416          (B) disabling, serious, or significant injury; or
             23417          (C) occupational disease incident.
             23418          (iii) (A) Each employer shall file a report with the Division of Industrial Accidents
             23419      within seven days after the occurrence of an injury or occupational disease, after the employer's
             23420      first knowledge of the occurrence, or after the employee's notification of the same, in the form
             23421      prescribed by the Division of Industrial Accidents, of any work-related fatality or any
             23422      work-related injury or occupational disease resulting in:
             23423          (I) medical treatment;
             23424          (II) loss of consciousness;
             23425          (III) loss of work;
             23426          (IV) restriction of work; or
             23427          (V) transfer to another job.
             23428          (B) (I) Each employer shall file a subsequent report with the Division of Industrial
             23429      Accidents of any previously reported injury or occupational disease that later resulted in death.
             23430          (II) The subsequent report shall be filed with the Division of Industrial Accidents within
             23431      seven days following the death or the employer's first knowledge or notification of the death.
             23432          (iv) A report is not required for minor injuries, such as cuts or scratches that require
             23433      first-aid treatment only, unless a treating physician files, or is required to file, the Physician's
             23434      Initial Report of Work Injury or Occupational Disease with the Division of Industrial Accidents.
             23435          (v) A report is not required:
             23436          (A) for occupational diseases that manifest after the employee is no longer employed by
             23437      the employer with which the exposure occurred; or

             23438          (B) where the employer is not aware of an exposure occasioned by the employment
             23439      which results in a compensable occupational disease as defined by Section 34A-3-103 .
             23440          (vi) Each employer shall provide the employee with:
             23441          (A) a copy of the report submitted to the Division of Industrial Accidents; and
             23442          (B) a statement, as prepared by the Division of Industrial Accidents, of the employee's
             23443      rights and responsibilities related to the industrial injury or occupational disease.
             23444          (vii) Each employer shall maintain a record in a manner prescribed by the commission of
             23445      all work-related fatalities or work-related injuries and of all occupational diseases resulting in:
             23446          (A) medical treatment;
             23447          (B) loss of consciousness;
             23448          (C) loss of work;
             23449          (D) restriction of work; or
             23450          (E) transfer to another job.
             23451          (viii) The commission shall make rules in accordance with [Title 63, Chapter 46a] Title
             23452      63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this Subsection (3)(b)
             23453      consistent with nationally recognized rules or standards on the reporting and recording of
             23454      work-related injuries and occupational diseases.
             23455          (c) (i) The commission shall make rules in accordance with [Title 63, Chapter 46a] Title
             23456      63G, Chapter 3, Utah Administrative Rulemaking Act, requiring employers to keep records
             23457      regarding exposures to potentially toxic materials or harmful physical agents required to be
             23458      measured or monitored under Section 34A-6-202 .
             23459          (ii) (A) The rules made under Subsection (3)(c)(i) shall provide for employees or their
             23460      representatives:
             23461          (I) to observe the measuring or monitoring; and
             23462          (II) to have access to the records of the measuring or monitoring, and to records that
             23463      indicate their exposure to toxic materials or harmful agents.
             23464          (B) Each employer shall promptly notify employees being exposed to toxic materials or
             23465      harmful agents in concentrations that exceed prescribed levels and inform any such employee of

             23466      the corrective action being taken.
             23467          (4) Information obtained by the division shall be obtained with a minimum burden upon
             23468      employers, especially those operating small businesses.
             23469          (5) A representative of the employer and a representative authorized by employees shall
             23470      be given an opportunity to accompany the division's authorized representative during the
             23471      physical inspection of any workplace. If there is no authorized employee representative, the
             23472      division's authorized representative shall consult with a reasonable number of employees
             23473      concerning matters of health and safety in the workplace.
             23474          (6) (a) (i) (A) Any employee or representative of employees who believes that a
             23475      violation of an adopted safety or health standard exists that threatens physical harm, or that an
             23476      imminent danger exists, may request an inspection by giving notice to the division's authorized
             23477      representative of the violation or danger. The notice shall be:
             23478          (I) in writing, setting forth with reasonable particularity the grounds for notice; and
             23479          (II) signed by the employee or representative of employees.
             23480          (B) A copy of the notice shall be provided the employer or the employer's agent no later
             23481      than at the time of inspection.
             23482          (C) Upon request of the person giving notice, the person's name and the names of
             23483      individual employees referred to in the notice shall not appear in the copy or on any record
             23484      published, released, or made available pursuant to Subsection (7).
             23485          (ii) (A) If upon receipt of the notice the division's authorized representative determines
             23486      there are reasonable grounds to believe that a violation or danger exists, the authorized
             23487      representative shall make a special inspection in accordance with this section as soon as
             23488      practicable to determine if a violation or danger exists.
             23489          (B) If the division's authorized representative determines there are no reasonable
             23490      grounds to believe that a violation or danger exists, the authorized representative shall notify the
             23491      employee or representative of the employees in writing of that determination.
             23492          (b) (i) Prior to or during any inspection of a workplace, any employee or representative
             23493      of employees employed in the workplace may notify the division or its representative of any

             23494      violation of a standard that they have reason to believe exists in the workplace.
             23495          (ii) The division shall:
             23496          (A) by rule, establish procedures for informal review of any refusal by a representative
             23497      of the division to issue a citation with respect to any alleged violation; and
             23498          (B) furnish the employees or representative of employees requesting review a written
             23499      statement of the reasons for the division's final disposition of the case.
             23500          (7) (a) The division may compile, analyze, and publish, either in summary or detailed
             23501      form, all reports or information obtained under this section, subject to the limitations set forth in
             23502      Section 34A-6-306 .
             23503          (b) The commission shall make rules in accordance with [Title 63, Chapter 46a] Title
             23504      63G, Chapter 3, Utah Administrative Rulemaking Act, necessary to carry out its responsibilities
             23505      under this chapter, including rules for information obtained under this section, subject to the
             23506      limitations set forth in Section 34A-6-306 .
             23507          (8) Any employer who refuses or neglects to make reports, to maintain records, or to
             23508      file reports with the commission as required by this section is guilty of a class C misdemeanor
             23509      and subject to citation under Section 34A-6-302 and a civil assessment as provided under
             23510      Section 34A-6-307 , unless the commission finds that the employer has shown good cause for
             23511      submitting a report later than required by this section.
             23512          Section 469. Section 34A-6-304 is amended to read:
             23513           34A-6-304. Procedure for review of order entered by administrative law judge --
             23514      Continuing jurisdiction of commission.
             23515          (1) (a) Administrative law judges assigned by the director of the Division of
             23516      Adjudication shall hear and determine any proceeding assigned to them by the Division of
             23517      Adjudication.
             23518          (b) The administrative law judge shall enter the administrative law judge's findings of
             23519      fact, conclusions of law, and order not later than 30 days after final receipt of all matters
             23520      concerned in the hearing.
             23521          (c) The findings of fact, conclusions of law, and order of the administrative law judge

             23522      shall become the final order of the commission unless objections are made in accordance with
             23523      Subsection (2).
             23524          (2) (a) Any party of interest who is dissatisfied with the order entered by an
             23525      administrative law judge may obtain a review by appealing the decision in accordance with
             23526      Section [ 63-46b-12 ] 63G-4-301 and Chapter 1, Part 3, Adjudicative Proceedings.
             23527          (b) The commissioner or Appeals Board shall make its decision in accordance with
             23528      Section 34A-1-303 .
             23529          (c) The decision of the commission is final unless judicial review is requested in
             23530      accordance with Chapter 1, Part 3, Adjudicative Proceedings.
             23531          (d) To the extent that new facts are provided, the commission has continuing
             23532      jurisdiction to amend, reverse, or enhance prior orders.
             23533          Section 470. Section 34A-6-307 is amended to read:
             23534           34A-6-307. Civil and criminal penalties.
             23535          (1) The commission may assess civil penalties against any employer who has received a
             23536      citation under Section 34A-6-302 as follows:
             23537          (a) Except as provided in Subsections (1)(b) through (d), the commission may assess up
             23538      to $7,000 for each cited violation.
             23539          (b) The commission may not assess less than $250 nor more than $7,000 for each cited
             23540      serious violation. A violation is serious only if:
             23541          (i) it arises from a condition, practice, method, operation, or process in the workplace
             23542      of which the employer knows or should know through the exercise of reasonable diligence; and
             23543          (ii) there is a substantial possibility that the condition, practice, method, operation, or
             23544      process could result in death or serious physical harm.
             23545          (c) The commission may not assess less than $5,000 nor more than $70,000 for each
             23546      cited willful violation.
             23547          (d) The commission may assess up to $70,000 for each cited violation if the employer
             23548      has previously been found to have violated the same standards, code, rule, or order.
             23549          (e) After the expiration of the time permitted to an employer to correct a cited

             23550      violation, the commission may assess up to $7,000 for each day the violation continues
             23551      uncorrected.
             23552          (2) The commission may assess a civil penalty of up to $7,000 for each violation of any
             23553      posting requirement under this chapter.
             23554          (3) In deciding the amount to assess for a civil penalty, the commission shall consider all
             23555      relevant factors, including:
             23556          (a) the size of the employer's business;
             23557          (b) the nature of the violation;
             23558          (c) the employer's good faith or lack of good faith; and
             23559          (d) the employer's previous record of compliance or noncompliance with this chapter.
             23560          (4) Any civil penalty collected under this chapter shall be paid into the General Fund.
             23561          (5) Criminal penalties under this chapter are as follows:
             23562          (a) Any employer who willfully violates any standard, code, rule, or order issued under
             23563      Section 34A-6-202 , or any rule made under this chapter, is guilty of a class A misdemeanor if
             23564      the violation caused the death of an employee. If the violation causes the death of more than
             23565      one employee, each death is considered a separate offense.
             23566          (b) Any person who gives advance notice of any inspection conducted under this
             23567      chapter without authority from the administrator or the administrator's representatives is guilty
             23568      of a class A misdemeanor.
             23569          (c) Any person who knowingly makes a false statement, representation, or certification
             23570      in any application, record, report, plan, or other document filed or required to be maintained
             23571      under this chapter is guilty of a class A misdemeanor.
             23572          (6) After a citation issued under this chapter and an opportunity for a hearing under
             23573      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, the division may
             23574      file an abstract for any uncollected citation penalty in the district court. The filed abstract shall
             23575      have the effect of a judgment of that court. The abstract shall state the amount of the
             23576      uncollected citation penalty, reasonable attorneys' fees as set by commission rule, and court
             23577      costs.

             23578          Section 471. Section 34A-7-104 is amended to read:
             23579           34A-7-104. Fees.
             23580          The owner or user of a boiler required by this part to be inspected shall pay to the
             23581      commission fees for inspection or for permits to operate in amounts set by the commission
             23582      pursuant to Section [ 63-38-3.2 ] 63J-1-303 .
             23583          Section 472. Section 34A-7-203 is amended to read:
             23584           34A-7-203. Requirements for operating an elevator or escalator -- Inspection --
             23585      Division duties.
             23586          (1) An elevator or escalator may not operate in this state unless:
             23587          (a) the owner or operator of the elevator or escalator obtains an inspection certificate
             23588      under Subsection (3); and
             23589          (b) the inspection certificate described in Subsection (1)(a) has not:
             23590          (i) expired under Subsection (3); or
             23591          (ii) been suspended under Section 34A-7-204 .
             23592          (2) An elevator or escalator used or proposed to be used in this state shall be inspected
             23593      as to its safety to operate in accordance with the safety code:
             23594          (a) every two years; or
             23595          (b) more frequently than every two years if the division determines that more frequent
             23596      inspections are necessary.
             23597          (3) (a) If upon inspection an elevator or escalator is safe to operate in accordance with
             23598      the safety code, the inspector shall issue to the owner or operator an inspection certificate.
             23599          (b) An inspection certificate issued under Subsection (3)(a) shall expire two years from
             23600      the date the inspection certificate is issued.
             23601          (4) An inspector employed by the division under this part shall at all times meet
             23602      nationally recognized standards of qualifications for inspectors of elevators and escalators, as
             23603      defined by rule by the division.
             23604          (5) The owner or operator of an elevator or escalator that is used in the state shall pay
             23605      to the commission a fee in amounts set by the commission pursuant to Section [ 63-38-3.2 ]

             23606      63J-1-303 :
             23607          (a) for inspection; and
             23608          (b) for an inspection certificate.
             23609          (6) The division:
             23610          (a) shall provide for the inspection of elevators and escalators in accordance with this
             23611      section;
             23612          (b) shall adopt by rule one or more nationally recognized standards or other safety
             23613      codes to be used in inspecting elevators or escalators; and
             23614          (c) may adopt amendments to the safety code adopted under Subsection (6)(b).
             23615          Section 473. Section 34A-8-111 is amended to read:
             23616           34A-8-111. Rulemaking authority.
             23617          The commission may provide for the administration of this chapter by rule in accordance
             23618      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             23619          Section 474. Section 34A-8-112 is amended to read:
             23620           34A-8-112. Administrative review.
             23621          The employer and the injured worker may apply to the Division of Adjudication for
             23622      resolution of any issue of law or fact arising under this chapter in accordance with [Title 63,
             23623      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             23624          Section 475. Section 35A-1-104 is amended to read:
             23625           35A-1-104. Department authority.
             23626          Within all other authority or responsibility granted to it by law, the department may:
             23627          (1) adopt rules when authorized by this title, in accordance with the procedures of
             23628      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             23629          (2) purchase, as authorized or required by law, services that the department is
             23630      responsible to provide for legally eligible persons;
             23631          (3) conduct adjudicative proceedings in accordance with the procedures of [Title 63,
             23632      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act;
             23633          (4) establish eligibility standards for its programs, not inconsistent with state or federal

             23634      law or regulations;
             23635          (5) take necessary steps, including legal action, to recover money or the monetary value
             23636      of services provided to a recipient who is not eligible;
             23637          (6) administer oaths, certify to official acts, issue subpoenas to compel witnesses and
             23638      the production of books, accounts, documents, and other records necessary as evidence;
             23639          (7) acquire, manage, and dispose of any real or personal property needed or owned by
             23640      the department, not inconsistent with state law;
             23641          (8) receive gifts, grants, devises, and donations or their proceeds, crediting the program
             23642      designated by the donor, and using the gift, grant, devise, or donation for the purposes
             23643      requested by the donor, as long as the request conforms to state and federal policy;
             23644          (9) accept and employ volunteer labor or services;
             23645          (10) reimburse volunteers for necessary expenses, when the department considers that
             23646      reimbursement to be appropriate;
             23647          (11) carry out the responsibility assigned by the State Workforce Services Plan
             23648      developed by the State Council on Workforce Services;
             23649          (12) provide training and educational opportunities for its staff;
             23650          (13) examine and audit the expenditures of any public funds provided to a local
             23651      authority, agency, or organization that contracts with or receives funds from those authorities or
             23652      agencies;
             23653          (14) accept and administer grants from the federal government and from other sources,
             23654      public or private;
             23655          (15) employ and determine the compensation of clerical, legal, technical, investigative,
             23656      and other employees necessary to carry out its policymaking, regulatory, and enforcement
             23657      powers, rights, duties, and responsibilities under this title;
             23658          (16) establish and conduct free employment agencies, and bring together employers
             23659      seeking employees and working people seeking employment, and make known the opportunities
             23660      for employment in this state;
             23661          (17) collect, collate, and publish statistical and other information relating to employees,

             23662      employers, employments, and places of employment, and other statistics as it considers proper;
             23663          (18) encourage the expansion and use of apprenticeship programs meeting state or
             23664      federal standards for apprenticeship programs;
             23665          (19) develop processes to ensure that the department responds to the full range of
             23666      employee and employer clients; and
             23667          (20) carry out the responsibilities assigned to it by statute.
             23668          Section 476. Section 35A-1-106 is amended to read:
             23669           35A-1-106. Fees.
             23670          (1) Unless otherwise provided by statute, the department may adopt a schedule of fees
             23671      assessed for services provided by the department by following the procedures and requirements
             23672      of Section [ 63-38-3.2 ] 63J-1-303 .
             23673          (2) The department shall submit each fee established under this section to the
             23674      Legislature for its approval as part of the department's annual appropriations request.
             23675          Section 477. Section 35A-1-301 is amended to read:
             23676           35A-1-301. Presiding officers for adjudicative proceedings -- Subpoenas --
             23677      Independent judgment -- Consolidation -- Record -- Notice of order.
             23678          (1) (a) The executive director shall authorize the Division of Adjudication to call, assign
             23679      a presiding officer, and conduct hearings and adjudicative proceedings when an application for a
             23680      proceeding is filed with the Division of Adjudication under this title.
             23681          (b) The director of the Division of Adjudication or the director's designee may issue
             23682      subpoenas. Failure to respond to a properly issued subpoena may result in a contempt citation
             23683      and offenders may be punished as provided in Section 78-32-15 .
             23684          (c) Witnesses subpoenaed under this section are allowed fees as provided by law for
             23685      witnesses in the district court of the state. The fees shall be paid as follows:
             23686          (i) The witness fees shall be paid by the state unless the witness is subpoenaed at the
             23687      instance of a party other than the department.
             23688          (ii) Notwithstanding Subsection (1)(c)(i), if the subpoena is issued under Chapter 4,
             23689      Employment Security Act, the fees are part of the expense of administering that chapter.

             23690          (d) A presiding officer assigned under this section may not participate in any case in
             23691      which the presiding officer is an interested party. Each decision of a presiding officer shall
             23692      represent the presiding officer's independent judgment.
             23693          (2) In the judgment of the presiding officer having jurisdiction of the proceedings the
             23694      consolidation would not be prejudicial to any party, when the same or substantially similar
             23695      evidence is relevant and material to the matters in issue in more than one proceeding:
             23696          (a) the presiding officer may fix the same time and place for considering each matter;
             23697          (b) jointly conduct hearings;
             23698          (c) make a single record of the proceedings; and
             23699          (d) consider evidence introduced with respect to one proceeding as introduced in the
             23700      others.
             23701          (3) (a) The director shall keep a full and complete record of all adjudicative proceedings
             23702      in connection with a disputed matter.
             23703          (b) All testimony at any hearing shall be recorded but need not be transcribed unless the
             23704      disputed matter is appealed. If a party requests transcription, the transcription shall be provided
             23705      at the party's expense.
             23706          (c) All records on appeals shall be maintained in the offices of the Division of
             23707      Adjudication. The records shall include an appeal docket showing the receipt and disposition of
             23708      the appeals.
             23709          (4) A party in interest shall be given notice of the entry of a presiding officer's order or
             23710      any order or award of the department. The mailing of the copy of the order or award to the
             23711      last-known address in the files of the department of a party in interest and to the attorneys or
             23712      agents of record in the case, if any, is considered to be notice of the order.
             23713          (5) In any formal adjudication proceeding, the presiding officer may take any action
             23714      permitted under Section [ 63-46b-8 ] 63G-4-206 .
             23715          Section 478. Section 35A-1-303 is amended to read:
             23716           35A-1-303. Rulemaking.
             23717          (1) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah

             23718      Administrative Rulemaking Act, the department shall make rules governing adjudicative
             23719      procedures including the forms of notices and the manner of serving notice in all claims.
             23720          (b) Except as provided in this title and [Title 63, Chapter 46b] Title 63G, Chapter 4,
             23721      Administrative Procedures Act, the rules made under this section are not required to conform to
             23722      common law or statutory rules of evidence or other technical rules of procedure.
             23723          (2) The rules made under this section shall include procedures to dispose of cases
             23724      informally, or to expedite claims adjudication, narrow issues, and simplify the methods of proof
             23725      at hearings.
             23726          (3) Any rule made concerning proceedings before the Workforce Appeals Board shall
             23727      be made in consultation with the Workforce Appeals Board.
             23728          Section 479. Section 35A-3-105 is amended to read:
             23729           35A-3-105. Determination of eligibility and responsibility -- Information from
             23730      State Tax Commission.
             23731          (1) The division may have access to relevant information contained in the income tax
             23732      returns of a client, applicant, or person who has a duty to support a client in determining:
             23733          (a) eligibility for public assistance;
             23734          (b) payment responsibilities for institutional care; or
             23735          (c) any other administrative purpose consistent with this chapter.
             23736          (2) The information requested by the division shall be:
             23737          (a) provided by the State Tax Commission on forms furnished by the division; and
             23738          (b) treated as a private record under [Title 63, Chapter 2] Title 63G, Chapter 2,
             23739      Government Records Access and Management Act, by the division.
             23740          Section 480. Section 35A-3-111 is amended to read:
             23741           35A-3-111. Collection of overpayments.
             23742          (1) The department is responsible for the recovery of overpayments required in Section
             23743      35A-3-603 .
             23744          (2) Excess property liens required in the various programs not transferred to the federal
             23745      government shall remain a condition of eligibility in public assistance programs.

             23746          (3) A client can appeal an initial department determination that there has been an
             23747      overpayment under rules made by the department in accordance with [Title 63, Chapter 46a]
             23748      Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             23749          Section 481. Section 35A-3-207 is amended to read:
             23750           35A-3-207. Community-based prevention programs.
             23751          (1) As used in this section:
             23752          (a) "political subdivision" means a town, city, county, or school district;
             23753          (b) "qualified sponsor" means a:
             23754          (i) political subdivision;
             23755          (ii) community nonprofit, religious, or charitable organization;
             23756          (iii) regional or statewide nonprofit organization; or
             23757          (iv) private for profit or nonprofit child care organization with experience and expertise
             23758      in operating community-based prevention programs described in Subsection (2) and that are
             23759      licensed under Title 62A, Chapter 2.
             23760          (2) Within appropriations from the Legislature, the department may provide grants to
             23761      qualified sponsors for community-based prevention programs that:
             23762          (a) support parents in their primary care giving role to children;
             23763          (b) provide positive alternatives to idleness for school-aged children when school is not
             23764      in session; and
             23765          (c) support other community-based prevention programs.
             23766          (3) In awarding grants under this section, the department shall:
             23767          (a) request proposals for funding from potential qualified sponsors; and
             23768          (b) comply with the requirements of Subsection (4).
             23769          (4) In awarding these grants, the department shall ensure that each dollar of funds from
             23770      political subdivisions or private funds is matched for each dollar received from the department.
             23771      The value of in-kind contributions such as materials, supplies, paid labor, volunteer labor, and
             23772      the incremental increase in building maintenance and operation expenses incurred attributable to
             23773      the prevention program may be considered in meeting this match requirement.

             23774          (5) In awarding a grant under this section, the department shall consider:
             23775          (a) the cash portion of the proposed match in relation to the financial resources of the
             23776      qualified sponsor; and
             23777          (b) the extent to which the qualified sponsor has:
             23778          (i) consulted and collaborated with parents of children who are likely to participate,
             23779      local parent-teacher organizations, other parent organizations, and the appropriate local
             23780      interagency council established under Section [ 63-75-5.7 ] 63M-9-301 ;
             23781          (ii) identified at risk factors that will be ameliorated through the proposed prevention
             23782      program;
             23783          (iii) identified protective factors and developmental assets that will be supported and
             23784      strengthened through the proposed prevention program; and
             23785          (iv) the financial support of parents and the organizations specified in Subsection
             23786      (5)(b)(i).
             23787          (6) At least 50 percent of the grants awarded under this section shall be awarded to
             23788      organizations described in Subsection (1)(b)(iv).
             23789          (7) No federal funds shall be used as matching funds under this act.
             23790          Section 482. Section 35A-3-302 is amended to read:
             23791           35A-3-302. Eligibility requirements.
             23792          (1) The program of cash assistance provided under this part is known as the Family
             23793      Employment Program.
             23794          (2) (a) The division shall submit a state plan to the Secretary of the United States
             23795      Department of Health and Human Services to obtain federal funding under the Temporary
             23796      Assistance for Needy Families Block Grant.
             23797          (b) The division shall make the plan consistent with this part and federal law.
             23798          (c) If a discrepancy arises between a provision of the state plan and this part, this part
             23799      supersedes the provision in the state plan.
             23800          (3) The services and supports under this part are for both one-parent and two-parent
             23801      families.

             23802          (4) To be eligible for cash assistance under this part, a family shall:
             23803          (a) have at least one minor dependent child; or
             23804          (b) have a parent who is in the third trimester of a pregnancy.
             23805          (5) (a) In an appropriations act, the Legislature shall determine annually the maximum
             23806      monthly dollar amount of cash assistance for families based on family size.
             23807          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             23808      Administrative Rulemaking Act, the department shall establish rules for eligibility and the
             23809      amount of cash assistance a family is eligible to receive under this part based on:
             23810          (i) family size;
             23811          (ii) family income;
             23812          (iii) income disregards; and
             23813          (iv) other relevant factors.
             23814          (6) The division shall disregard money on deposit in an Individual Development
             23815      Account established under Section 35A-3-312 in determining eligibility.
             23816          (7) The department shall provide for an appeal of a determination of eligibility in
             23817      accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             23818          Section 483. Section 35A-3-310 is amended to read:
             23819           35A-3-310. Child care services.
             23820          (1) A parent client may receive assistance for child care under this part for a minor child
             23821      in the care and custody of the parent client, unless the other parent in a two-parent family:
             23822          (a) is capable of caring for the family's child;
             23823          (b) is not employed; and
             23824          (c) has not entered into an employment plan with the division.
             23825          (2) The division shall encourage a parent client to obtain child care at no cost from a
             23826      parent, sibling, relative, or other suitable provider.
             23827          (3) Within appropriations from the Legislature and in accordance with [Title 63,
             23828      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department may
             23829      make rules governing eligibility for child care services for a minor child in the care and custody

             23830      of a parent who does not receive cash assistance under this part.
             23831          Section 484. Section 35A-3-602 is amended to read:
             23832           35A-3-602. Definitions.
             23833          As used in this part:
             23834          (1) "Adjudicative proceeding" means an action or proceeding of the department
             23835      described in Section [ 63-46b-1 ] 63G-4-102 .
             23836          (2) "Administrative order" means an order issued by the department involving an
             23837      overpayment of public assistance.
             23838          (3) "Court order" means a judgment or order of any court of this state, another state, or
             23839      the federal government that involves an overpayment of public assistance.
             23840          (4) "Department" means the Department of Workforce Services.
             23841          (5) "Notice of agency action" means the notice required to commence an adjudicative
             23842      proceeding as described in Section [ 63-46b-3 ] 63G-4-201 .
             23843          (6) "Obligor" means an individual who is liable to the state under Section 35A-3-603
             23844      and applicable federal statutes and regulations, or an individual against whom an administrative
             23845      or judicial order determining overpayment has been obtained.
             23846          (7) (a) "Overpayment" means money, public assistance, or any other thing of value
             23847      provided under a state or federally funded benefit program to the extent that the person
             23848      receiving the thing of value is not entitled to receive it or is not entitled to receive it at the level
             23849      provided.
             23850          (b) It includes money paid to a provider under this title in connection with public
             23851      assistance or any other publicly funded assistance program to the extent that the provider
             23852      receives payment:
             23853          (i) for goods or services not provided; or
             23854          (ii) in excess of the amount to which the provider is entitled.
             23855          Section 485. Section 35A-3-604 is amended to read:
             23856           35A-3-604. Obligor presumed to have notice of department's rights -- Authority
             23857      to administer oaths, issue subpoenas, and compel witnesses and production of documents

             23858      -- Recovery of attorney fees, costs, and interest -- Rulemaking authority -- Administrative
             23859      procedures.
             23860          (1) An obligor is presumed to have received notice of the rights of the department
             23861      under this part upon engaging in this state in any of the acts described in Subsections
             23862      35A-3-603 (4) and (5) or Section 76-8-1203 , 76-8-1204 , or 76-8-1205 .
             23863          (2) For the purposes of this part, the department may administer oaths and certify
             23864      official acts, issue subpoenas, and compel witnesses and the production of business records,
             23865      documents, and evidence.
             23866          (3) (a) Except when an overpayment results from administrative error, the department
             23867      may recover from the obligor:
             23868          (i) reasonable attorneys' fees;
             23869          (ii) costs incurred in pursuing administrative remedies under this part; and
             23870          (iii) interest at the rate of 1% a month accruing from the date an administrative or
             23871      judicial order is issued determining the amount due under this part.
             23872          (b) The department may recover interest, attorneys' fees, and costs, if notice of the
             23873      assessment has been included in a notice of agency action issued in conformity with [Title 63,
             23874      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             23875          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             23876      Administrative Rulemaking Act, the department may make, amend, and enforce rules to carry
             23877      out the provisions of this part.
             23878          (5) Service of all notices and orders under this part shall comply with [Title 63, Chapter
             23879      46b] Title 63G, Chapter 4, Administrative Procedures Act, the Utah Rules of Civil Procedure,
             23880      or rules made by the department that meet standards required by due process.
             23881          Section 486. Section 35A-4-202 is amended to read:
             23882           35A-4-202. Employing units.
             23883          As used in this chapter:
             23884          (1) (a) "Employing unit" means:
             23885          (i) any individual or type of organization that has or subsequent to January 1, 1935, had

             23886      one or more individuals performing services for it within the state including any:
             23887          (A) partnership;
             23888          (B) association;
             23889          (C) trust;
             23890          (D) estate;
             23891          (E) joint stock company;
             23892          (F) insurance company;
             23893          (G) limited liability company;
             23894          (H) limited liability partnership;
             23895          (I) joint venture;
             23896          (J) corporation, whether domestic or foreign;
             23897          (K) the receiver, trustee in bankruptcy, trustee or successor of any entity listed in
             23898      Subsections (1)(a)(i)(A) through (J);
             23899          (L) the legal representative of a deceased person; or
             23900          (M) a tribal unit; or
             23901          (ii) any properly and legally registered professional employer organization, commonly
             23902      known as an employee leasing company, as defined by Section 58-59-102 .
             23903          (b) The department may adopt rules specific to a professional employer organization
             23904      pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             23905          (c) All individuals performing services within this state for any employing unit that
             23906      maintains two or more separate establishments within this state are considered to be performing
             23907      services for a single employing unit for all the purposes of this chapter.
             23908          (d) Each individual employed to perform or to assist in performing the work of any
             23909      person in the service of an employing unit is considered to be engaged by the employing unit for
             23910      all the purposes of this chapter whether the individual was hired or paid directly by the
             23911      employing unit or by the person, provided the employing unit had actual or constructive
             23912      knowledge of the work.
             23913          (2) "Hospital" means an institution that is licensed, certified, or approved by the

             23914      Department of Health as a hospital.
             23915          (3) "Institution of higher education," for the purposes of this section, means an
             23916      educational institution that:
             23917          (a) (i) admits, as regular students only, individuals having a certificate of graduation
             23918      from a high school or the recognized equivalent of a certificate;
             23919          (ii) is legally authorized in this state to provide a program of education beyond high
             23920      school;
             23921          (iii) provides:
             23922          (A) an educational program for which it awards a bachelor's or higher degree;
             23923          (B) a program that is acceptable for full credit toward a bachelor's or higher degree;
             23924          (C) a program of postgraduate or postdoctoral studies; or
             23925          (D) a program of training to prepare students for gainful employment in a recognized
             23926      occupation; and
             23927          (iv) is a public or other nonprofit institution.
             23928          (b) All colleges and universities in this state are institutions of higher education for
             23929      purposes of this section.
             23930          Section 487. Section 35A-4-304 is amended to read:
             23931           35A-4-304. Special provisions regarding transfers of unemployment experience
             23932      and assignment rates.
             23933          (1) As used in this section:
             23934          (a) "Knowingly" means having actual knowledge of or acting with deliberate ignorance
             23935      or reckless disregard for the prohibition involved.
             23936          (b) "Person" has the meaning given that term by Section 7701(a)(1) of the Internal
             23937      Revenue Code of 1986.
             23938          (c) "Trade or business" includes the employer's workforce.
             23939          (d) "Violate or attempt to violate" includes intent to evade, misrepresentation, or willful
             23940      nondisclosure.
             23941          (2) Notwithstanding any other provision of this chapter, Subsections (3) and (4) shall

             23942      apply regarding assignment of rates and transfers of unemployment experience.
             23943          (3) (a) If an employer transfers its trade or business, or a portion of its trade or
             23944      business, to another employer and, at the time of the transfer, there is common ownership,
             23945      management, or control of the employers, then the unemployment experience attributable to
             23946      each employer shall be combined into a common experience rate calculation.
             23947          (b) The contribution rates of the employers shall be recalculated and made effective
             23948      upon the date of the transfer of trade or business as determined by division rule in accordance
             23949      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             23950          (c) (i) If one or more of the employers is a qualified employer at the time of the transfer,
             23951      then all employing units that are party to a transfer described in Subsection (3)(a) of this section
             23952      shall be assigned an overall contribution rate under Subsection 35A-4-303 (4)(d), using
             23953      combined unemployment experience rating factors, for the rate year during which the transfer
             23954      occurred and for the subsequent three rate years.
             23955          (ii) If none of the employing units is a qualified employer at the time of the transfer,
             23956      then all employing units that are party to the transfer described in Subsection (3)(a) shall be
             23957      assigned the highest overall contribution rate applicable at the time of the transfer to any
             23958      employer who is party to the acquisition for the rate year during which the transfer occurred and
             23959      for subsequent rate years until the time when one or more of the employing units is a qualified
             23960      employer.
             23961          (iii) Once one or more employing units described in Subsection (3)(c)(ii) is a qualified
             23962      employer, all the employing units shall be assigned an overall rate under Subsection
             23963      35A-4-303 (4)(d), using combined unemployment experience rating factors for subsequent rate
             23964      years, not to exceed three years following the year of the transfer.
             23965          (d) The transfer of some or all of an employer's workforce to another employer shall be
             23966      considered a transfer of its trade or business when, as the result of the transfer, the transferring
             23967      employer no longer performs trade or business with respect to the transferred workforce, and
             23968      the trade or business is now performed by the employer to whom the workforce is transferred.
             23969          (4) (a) Whenever a person is not an employer under this chapter at the time it acquires

             23970      the trade or business of an employer, the unemployment experience of the acquired business
             23971      shall not be transferred to that person if the division finds that the person acquired the business
             23972      solely or primarily for the purpose of obtaining a lower rate of contributions.
             23973          (b) The person shall be assigned the applicable new employer rate under Subsection
             23974      35A-4-303 (5).
             23975          (c) In determining whether the business was acquired solely or primarily for the purpose
             23976      of obtaining a lower rate of contributions, the division shall use objective factors which may
             23977      include:
             23978          (i) the cost of acquiring the business;
             23979          (ii) whether the person continued the business enterprise of the acquired business;
             23980          (iii) how long the business enterprise was continued; or
             23981          (iv) whether a substantial number of new employees were hired for performance of
             23982      duties unrelated to the business activity conducted prior to acquisition.
             23983          (5) (a) If a person knowingly violates or attempts to violate Subsection (3) or (4) or any
             23984      other provision of this chapter related to determining the assignment of a contribution rate, or if
             23985      a person knowingly advises another person in a way that results in a violation of any of those
             23986      subsections or provisions, the person is subject to the following penalties:
             23987          (i) (A) If the person is an employer, then the employer shall be assigned an overall
             23988      contribution rate of 5.4% for the rate year during which the violation or attempted violation
             23989      occurred and for the subsequent rate year.
             23990          (B) If the person's business is already at 5.4% for any year, or if the amount of increase
             23991      in the person's rate would be less than 2% for that year, then a penalty surcharge of
             23992      contributions of 2% of taxable wages shall be imposed for the rate year during which the
             23993      violation or attempted violation occurred and for the subsequent rate year.
             23994          (ii) (A) If the person is not an employer, the person shall be subject to a civil penalty of
             23995      not more than $5,000.
             23996          (B) The fine shall be deposited in the penalty and interest account established under
             23997      Section 35A-4-506 .

             23998          (b) (i) In addition to the penalty imposed by Subsection (5)(a), a violation of this
             23999      section may be prosecuted as unemployment insurance fraud.
             24000          (ii) The determination of the degree of an offense shall be measured by the total value
             24001      of all contributions avoided or reduced or contributions sought to be avoided or reduced by the
             24002      unlawful conduct as applied to the degrees listed under Subsection 76-8-1301 (2)(a).
             24003          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             24004      Administrative Rulemaking Act, the division shall make rules to identify the transfer or
             24005      acquisition of a business for purposes of this section.
             24006          (7) This section shall be interpreted and applied in a manner that meets the minimum
             24007      requirements contained in any guidance or regulations issued by the United States Department
             24008      of Labor.
             24009          Section 488. Section 35A-4-312 is amended to read:
             24010           35A-4-312. Records.
             24011          (1) (a) Each employing unit shall keep true and accurate work records containing any
             24012      information the department may prescribe by rule.
             24013          (b) The records shall be open to inspection and subject to being copied by the division
             24014      or its authorized representatives at a reasonable time and as often as may be necessary.
             24015          (c) The employing unit shall make the records available in the state for three years after
             24016      the calendar year in which the services were rendered.
             24017          (2) The division may require from an employing unit any sworn or unsworn reports
             24018      with respect to persons employed by it that the division considers necessary for the effective
             24019      administration of this chapter.
             24020          (3) Except as provided in this section or in Sections 35A-4-103 and 35A-4-106 ,
             24021      information obtained under this chapter or obtained from an individual may not be published or
             24022      open to public inspection in any manner revealing the employing unit's or individual's identity.
             24023          (4) (a) The information obtained by the division under this section may not be used in
             24024      court or admitted into evidence in an action or proceeding, except:
             24025          (i) in an action or proceeding arising out of this chapter;

             24026          (ii) in an action or proceeding by the Labor Commission to enforce the provisions of
             24027      Title 34, Chapter 23, Employment of Minors, Chapter 28, Payment of Wages, Chapter 40, Utah
             24028      Minimum Wage Act, or Title 34A, Utah Labor Code, provided the Labor Commission enters
             24029      into a written agreement with the division under Subsection (6)(b); or
             24030          (iii) under the terms of a court order obtained under Subsection [ 63-2-202 ]
             24031      63G-2-202 (7) and Section [ 63-2-207 ] 63G-2-207 of the Government Records Access and
             24032      Management Act.
             24033          (b) The information obtained by the division under this section shall be disclosed to:
             24034          (i) a party to an unemployment insurance hearing before an administrative law judge of
             24035      the department or a review by the Workforce Appeals Board to the extent necessary for the
             24036      proper presentation of the party's case; or
             24037          (ii) an employer, upon request in writing for any information concerning claims for
             24038      benefits with respect to the employer's former employees.
             24039          (5) The information obtained by the division under this section may be disclosed to:
             24040          (a) an employee of the department in the performance of the employee's duties in
             24041      administering this chapter or other programs of the department;
             24042          (b) an employee of the Labor Commission for the purpose of carrying out the programs
             24043      administered by the Labor Commission;
             24044          (c) an employee of the governor's office and other state governmental agencies
             24045      administratively responsible for statewide economic development, to the extent necessary for
             24046      economic development policy analysis and formulation;
             24047          (d) an employee of other governmental agencies that are specifically identified and
             24048      authorized by federal or state law to receive the information for the purposes stated in the law
             24049      authorizing the employee of the agency to receive the information;
             24050          (e) an employee of a governmental agency or workers' compensation insurer to the
             24051      extent the information will aid in the detection or avoidance of duplicate, inconsistent, or
             24052      fraudulent claims against a workers' compensation program, public assistance funds, or the
             24053      recovery of overpayments of workers' compensation or public assistance funds;

             24054          (f) an employee of a law enforcement agency to the extent the disclosure is necessary to
             24055      avoid a significant risk to public safety or in aid of a felony criminal investigation;
             24056          (g) an employee of the State Tax Commission or the Internal Revenue Service for the
             24057      purposes of audit verification or simplification, state or federal tax compliance, verification of
             24058      Standard Industry Codes, and statistics;
             24059          (h) an employee or contractor of the department or an educational institution, or other
             24060      governmental entity engaged in workforce investment and development activities under the
             24061      Workforce Investment Act of 1998 for the purpose of coordinating services with the
             24062      department, evaluating the effectiveness of those activities, and measuring performance;
             24063          (i) an employee of the Governor's Office of Economic Development, for the purpose of
             24064      periodically publishing in the Directory of Business and Industry, the name, address, telephone
             24065      number, number of employees by range, Standard Industrial Code, and type of ownership of
             24066      Utah employers;
             24067          (j) the public for any purpose following a written waiver by all interested parties of their
             24068      rights to nondisclosure; or
             24069          (k) an individual whose wage data has been submitted to the department by an
             24070      employer, so long as no information other than the individual's wage data and the identity of the
             24071      party who submitted the information is provided to the individual.
             24072          (6) Disclosure of private information under Subsection (4)(a)(ii) or Subsection (5), with
             24073      the exception of Subsections (5)(a) and (f), shall be made only if:
             24074          (a) the division determines that the disclosure will not have a negative effect on the
             24075      willingness of employers to report wage and employment information or on the willingness of
             24076      individuals to file claims for unemployment benefits; and
             24077          (b) the agency enters into a written agreement with the division in accordance with rules
             24078      made by the department.
             24079          (7) (a) The employees of a division of the department other than the Workforce
             24080      Development and Information Division and the Unemployment Insurance Division or an agency
             24081      receiving private information from the division under this chapter are subject to the same

             24082      requirements of privacy and confidentiality and to the same penalties for misuse or improper
             24083      disclosure of the information as employees of the division.
             24084          (b) Use of private information obtained from the department by a person, or for a
             24085      purpose other than one authorized in Subsection (4) or (5) violates Subsection 76-8-1301 (4).
             24086          Section 489. Section 35A-4-401 is amended to read:
             24087           35A-4-401. Benefits -- Weekly benefit amount -- Computation of benefits --
             24088      Department to prescribe rules -- Notification of benefits -- Bonuses.
             24089          (1) (a) Benefits are payable from the fund to an individual who is or becomes
             24090      unemployed and eligible for benefits.
             24091          (b) All benefits shall be paid through the employment offices or other agencies
             24092      designated by the division in accordance with rules the department may prescribe in accordance
             24093      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             24094          (2) (a) An individual's "weekly benefit amount" is an amount equal to 1/26th,
             24095      disregarding any fraction of $1, of the individual's total wages for insured work paid during that
             24096      quarter of the base period in which the total wages were highest.
             24097          (b) The weekly benefit amount may not exceed the amount determined as follows:
             24098          (i) With respect to an individual whose benefit year commences on or after January 1,
             24099      2001, 65% of the "insured average fiscal year weekly wage" during the preceding fiscal year,
             24100      e.g., fiscal year 2000 for individuals establishing benefit years in 2001, disregarding any fraction
             24101      of $1, constitutes the maximum "weekly benefit amount" payable.
             24102          (ii) With respect to an individual who files a claim for benefits on or after July 4, 2004,
             24103      62.5% of the insured average fiscal year weekly wage during the preceding fiscal year,
             24104      disregarding any fraction of $1, constitutes the maximum weekly benefit amount payable.
             24105          (c) (i) Except as otherwise provided in Subsection (2)(c)(ii), the "weekly benefit
             24106      amount" of an individual who is receiving, or who is eligible to receive, based upon the
             24107      individual's previous employment, a pension, which includes a governmental, social security, or
             24108      other pension, retirement or disability retirement pay, under a plan maintained or contributed to
             24109      by a base-period employer is the "weekly benefit amount" which is computed under this section

             24110      less 100% of the retirement benefits, that are attributable to a week, disregarding any fraction of
             24111      $1.
             24112          (ii) With respect to an individual whose benefit year begins after July 1, 2004, and ends
             24113      on or before July 1, 2011, the "weekly benefit amount" of that individual, who is receiving or
             24114      who is eligible to receive Social Security benefits based upon the individual's previous
             24115      employment, is the "weekly benefit amount" which is computed under this section less 50% of
             24116      the individual's Social Security benefits that are attributable to the week, but not below zero.
             24117          (d) (i) (A) The weekly benefit amount and the potential benefits payable to an individual
             24118      who, subsequent to the commencement of the individual's benefit year, becomes or is
             24119      determined to be eligible to receive retirement benefits or increased retirement benefits, shall be
             24120      recomputed effective with the first calendar week during the individual's benefit year with
             24121      respect to which the individual is eligible to receive retirement benefits or increased retirement
             24122      benefits.
             24123          (B) The new weekly benefit amount shall be determined under this Subsection (2).
             24124          (ii) As recomputed the total benefits potentially payable, commencing with the effective
             24125      date of the recomputation, shall be equal to the recomputed weekly benefit amount times the
             24126      quotient obtained by dividing the potential benefits unpaid prior to the recomputation by the
             24127      initial weekly benefit amount, disregarding fractions.
             24128          (3) (a) An eligible individual who is unemployed in any week shall be paid with respect
             24129      to that week a benefit in an amount equal to the individual's weekly benefit amount less that part
             24130      of the individual's wage payable to the individual with respect to that week that is in excess of
             24131      30% of the individual's weekly benefit amount.
             24132          (b) The resulting benefit payable shall disregard any fraction of $1.
             24133          (c) For the purpose of this Subsection (3) "wages" does not include a grant paid to the
             24134      individual as public assistance.
             24135          (4) (a) An otherwise eligible individual is entitled during a benefit year to a total amount
             24136      of benefits determined by multiplying the individual's weekly benefit amount times the
             24137      individual's potential duration.

             24138          (b) To determine an individual's potential duration, the individual's total wages for
             24139      insured work paid during the base period is multiplied by 27%, disregarding any fraction of $1,
             24140      and divided by the individual's weekly benefit amount, disregarding any fraction, but not less
             24141      than ten nor more than 26.
             24142          (5) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             24143      Administrative Rulemaking Act, the department may by rule prescribe:
             24144          (i) that the existence of unemployment, eligibility for benefits, and the amount of
             24145      benefits payable shall be determined in the case of an otherwise eligible individual who, within a
             24146      week or other period of unemployment, is separated from or secures work on a regular
             24147      attachment basis for that portion of the week or other period of unemployment occurring before
             24148      or after separation from or securing of work; and
             24149          (ii) in the case of an individual working on a regular attachment basis, eligibility for
             24150      benefits and the amount of benefits payable for periods of unemployment longer than a week.
             24151          (b) The rules made shall be reasonably calculated to secure general results substantially
             24152      similar to those provided by this chapter with respect to weeks of unemployment.
             24153          (6) The division shall, in all cases involving actual or potential disqualifying issues and
             24154      prior to the payment of benefits to an eligible individual, notify the individual's most recent
             24155      employer of the eligibility determination.
             24156          (7) Upon written request of an individual made under rules of the department in
             24157      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             24158      Act, all remuneration for insured work paid to the individual during the individual's period in the
             24159      form of a bonus or lump-sum payment shall, for benefit purposes, be apportioned to the
             24160      calendar quarters in which the remuneration was earned.
             24161          Section 490. Section 35A-4-502 is amended to read:
             24162           35A-4-502. Administration of Employment Security Act.
             24163          (1) (a) The department shall administer this chapter through the division.
             24164          (b) The department may make, amend, or rescind any rules and special orders
             24165      necessary for the administration of this chapter.

             24166          (c) The division may:
             24167          (i) employ persons;
             24168          (ii) make expenditures;
             24169          (iii) require reports;
             24170          (iv) make investigations;
             24171          (v) make audits of any or all funds provided for under this chapter when necessary; and
             24172          (vi) take any other action it considers necessary or suitable to that end.
             24173          (d) No later than the first day of October of each year, the department shall submit to
             24174      the governor a report covering the administration and operation of this chapter during the
             24175      preceding calendar year and shall make any recommendations for amendments to this chapter as
             24176      the department considers proper.
             24177          (e) (i) The report required under Subsection (1)(d) shall include a balance sheet of the
             24178      moneys in the fund in which there shall be provided, if possible, a reserve against liability in
             24179      future years to pay benefits in excess of the then current contributions, which reserve shall be
             24180      set up by the division in accordance with accepted actuarial principles on the basis of statistics
             24181      of employment, business activity, and other relevant factors for the longest possible period.
             24182          (ii) Whenever the department believes that a change in contribution or benefit rates will
             24183      become necessary to protect the solvency of the fund, it shall promptly inform the governor and
             24184      the Legislature and make appropriate recommendations.
             24185          (2) (a) The department may make, amend, or rescind rules in accordance with [Title 63,
             24186      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             24187          (b) The director of the division or the director's designee may adopt, amend, or rescind
             24188      special orders after appropriate notice and opportunity to be heard. Special orders become
             24189      effective ten days after notification or mailing to the last-known address of the individuals or
             24190      concerns affected thereby.
             24191          (3) The director of the division or the director's designee shall cause to be printed for
             24192      distribution to the public:
             24193          (a) the text of this chapter;

             24194          (b) the department's rules pertaining to this chapter;
             24195          (c) the department's annual reports to the governor required by Subsection (1)(e); and
             24196          (d) any other material the director of the division or the director's designee considers
             24197      relevant and suitable and shall furnish them to any person upon application.
             24198          (4) (a) The division may delegate to any person so appointed the power and authority it
             24199      considers reasonable and proper for the effective administration of this chapter and may bond
             24200      any person handling moneys or signing checks under this authority.
             24201          (b) The department may, when permissible under federal and state law, make
             24202      arrangements to voluntarily elect coverage under the United States Civil Service Retirement
             24203      System or a comparable private retirement plan with respect to past as well as future services of
             24204      individuals employed under this chapter who:
             24205          (i) were hired prior to October 1, 1980; and
             24206          (ii) have been retained by the department without significant interruption in the
             24207      employees' services for the department.
             24208          (c) An employee of the department who no longer may participate in a federal or other
             24209      retirement system as a result of a change in status or appropriation under this chapter may
             24210      purchase credit in a retirement system created under Title 49, Chapter 13, Public Employees'
             24211      Noncontributory Retirement Act, with the employee's assets from the federal or other
             24212      retirement system in which the employee may no longer participate.
             24213          (5) There is created an Employment Advisory Council composed of the members listed
             24214      in Subsections (5)(a) and (b).
             24215          (a) The executive director shall appoint:
             24216          (i) not less than five employer representatives chosen from individuals recommended by
             24217      employers, employer associations, or employer groups;
             24218          (ii) not less than five employee representatives chosen from individuals recommended
             24219      by employees, employee associations, or employee groups; and
             24220          (iii) five public representatives chosen at large.
             24221          (b) The executive director or the executive director's designee shall serve as a

             24222      nonvoting member of the council.
             24223          (c) The employee representatives shall include both union and nonunion employees who
             24224      fairly represent the percentage in the labor force of the state.
             24225          (d) Employers and employees shall consider nominating members of groups who
             24226      historically may have been excluded from the council, such as women, minorities, and
             24227      individuals with disabilities.
             24228          (e) (i) Except as required by Subsection (5)(e)(ii), as terms of current council members
             24229      expire, the executive director shall appoint each new member or reappointed member to a
             24230      four-year term.
             24231          (ii) Notwithstanding the requirements of Subsection (5)(e)(i), the executive director
             24232      shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the
             24233      terms of council members are staggered so that approximately half of the council is appointed
             24234      every two years.
             24235          (f) When a vacancy occurs in the membership for any reason, the replacement shall be
             24236      appointed for the unexpired term.
             24237          (g) The executive director shall terminate the term of any council member who ceases
             24238      to be representative as designated by the council member's original appointment.
             24239          (h) The council shall advise the department and the Legislature in formulating policies
             24240      and discussing problems related to the administration of this chapter including:
             24241          (i) reducing and preventing unemployment;
             24242          (ii) encouraging the adoption of practical methods of vocational training, retraining, and
             24243      vocational guidance;
             24244          (iii) monitoring the implementation of the Wagner-Peyser Act;
             24245          (iv) promoting the creation and development of job opportunities and the reemployment
             24246      of unemployed workers throughout the state in every possible way; and
             24247          (v) appraising the industrial potential of the state.
             24248          (i) The council shall assure impartiality and freedom from political influence in the
             24249      solution of the problems listed in Subsection (5)(h).

             24250          (j) The executive director or the executive director's designee shall serve as chair of the
             24251      council and call the necessary meetings.
             24252          (k) (i) A member shall receive no compensation or benefits for the member's services,
             24253      but may receive per diem and expenses incurred in the performance of the member's official
             24254      duties at the rates established by the Division of Finance under Sections 63A-3-106 and
             24255      63A-3-107 .
             24256          (ii) A member may decline to receive per diem and expenses for the member's service.
             24257          (l) The department shall provide staff support to the council.
             24258          (6) In the discharge of the duties imposed by this chapter, the division director or the
             24259      director's designee as designated by department rule, may in connection with a disputed matter
             24260      or the administration of this chapter:
             24261          (a) administer oaths and affirmations;
             24262          (b) take depositions;
             24263          (c) certify to official acts; and
             24264          (d) issue subpoenas to compel the attendance of witnesses and the production of books,
             24265      papers, correspondence, memoranda, and other records necessary as evidence.
             24266          (7) (a) In case of contumacy by or refusal to obey a subpoena issued to any person, any
             24267      court of this state within the jurisdiction of which the inquiry is carried on or within the
             24268      jurisdiction of which the person guilty of contumacy or refusal to obey is found or resides or
             24269      transacts business, upon application by the director of the division or the director's designee
             24270      shall have jurisdiction to issue to that person an order requiring the person to appear before the
             24271      director or the director's designee to produce evidence, if so ordered, or give testimony
             24272      regarding the matter under investigation or in question. Any failure to obey that order of the
             24273      court may be punished by the court as contempt.
             24274          (b) Any person who, without just cause, fails or refuses to attend and testify or to
             24275      answer any lawful inquiry or to produce books, papers, correspondence, memoranda, and other
             24276      records, if it is in that person's power to do so, in obedience to a subpoena of the director or the
             24277      director's designee shall be punished as provided in Subsection 35A-1-301 (1)(b). Each day the

             24278      violation continues is a separate offense.
             24279          (c) In the event a witness asserts a privilege against self-incrimination, testimony and
             24280      evidence from the witness may be compelled pursuant to Title 77, Chapter 22b, Grants of
             24281      Immunity.
             24282          (8) (a) In the administration of this chapter, the division shall cooperate with the United
             24283      States Department of Labor to the fullest extent consistent with the provisions of this chapter
             24284      and shall take action, through the adoption of appropriate rules by the department and
             24285      administrative methods and standards, as necessary to secure to this state and its citizens all
             24286      advantages available under the provisions of:
             24287          (i) the Social Security Act that relate to unemployment compensation;
             24288          (ii) the Federal Unemployment Tax Act; and
             24289          (iii) the Federal-State Extended Unemployment Compensation Act of 1970.
             24290          (b) In the administration of Section 35A-4-402 , which is enacted to conform with the
             24291      requirements of the Federal-State Extended Unemployment Compensation Act of 1970, 26
             24292      U.S.C. 3304, the division shall take any action necessary to ensure that the section is
             24293      interpreted and applied to meet the requirements of the federal act, as interpreted by the United
             24294      States Department of Labor and to secure to this state the full reimbursement of the federal
             24295      share of extended and regular benefits paid under this chapter that are reimbursable under the
             24296      federal act.
             24297          Section 491. Section 35A-4-503 is amended to read:
             24298           35A-4-503. Destruction or disposal of records or reports by division -- Procedure.
             24299           The division may destroy or dispose of reports or records as have been properly
             24300      recorded or summarized in the payment records of the division, or that are deemed no longer
             24301      necessary in the proper administration of this chapter in accordance with the requirements of the
             24302      state records committee pursuant to Section [ 63-2-502 ] 63G-2-502 .    
             24303          Section 492. Section 35A-5-102 is amended to read:
             24304           35A-5-102. Federal grants for retraining.
             24305          (1) By following the procedures and requirements of [Title 63, Chapter 38e] Title 63J,

             24306      Chapter 5, Federal Funds Procedures, the state, through the Employment Development Division
             24307      may and is encouraged to apply for retraining, community assistance, or technology transfer
             24308      funds available through:
             24309          (a) the United States Department of Defense;
             24310          (b) United States Department of Labor; or
             24311          (c) other appropriate federal offices or departments.
             24312          (2) In applying for federal funds, the state through its Employment Development
             24313      Division or other appropriate office may inform the federal government of state matching or
             24314      enhancement funds if those funds are available under Section 67-1-12 .
             24315          Section 493. Section 35A-5-202 is amended to read:
             24316           35A-5-202. Contracts with providers.
             24317          (1) In compliance with [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement
             24318      Code, the department shall enter into a contract with one or more qualified providers to
             24319      implement the workforce improvement plan created under Section 35A-5-201 .
             24320          (2) A contract entered into under this section shall be:
             24321          (a) performance based; and
             24322          (b) structured so that the provider receives reimbursement based on:
             24323          (i) job development;
             24324          (ii) participant placement in jobs;
             24325          (iii) wages and benefits provided; and
             24326          (iv) participant retention in jobs over at least a 12-month period.
             24327          (3) If the department determines through the procurement process that there are no
             24328      qualified providers to implement the workforce improvement plan, the department may
             24329      implement the plan.
             24330          Section 494. Section 35A-7-106 is amended to read:
             24331           35A-7-106. Penalties for failure to report.
             24332          (1) An employer who fails to timely report the hiring or rehiring of an employee as
             24333      required by this chapter is subject to a civil penalty of:

             24334          (a) $25 for each such failure; or
             24335          (b) $500 if the failure to report is intentional and is the result of an agreement between
             24336      the employer and the employee to not supply the required information, or to supply false or
             24337      incomplete information.
             24338          (2) The department may assess the penalty by following the procedures and
             24339      requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             24340      The department shall collect any unpaid civil penalty in the same manner as provided for other
             24341      penalties under Subsections 35A-4-305 (3) and (5).
             24342          Section 495. Section 35A-7-107 is amended to read:
             24343           35A-7-107. Use and access to the registry records.
             24344          (1) (a) The records of the registry shall be maintained as private records under Section
             24345      [ 63-2-202 ] 63G-2-202 .
             24346          (b) In addition to those persons granted access to private records under Sections
             24347      [ 63-2-202 ] 63G-2-202 and [ 63-2-206 ] 63G-2-206 , state or federal agencies may access data
             24348      from the registry for the following purposes:
             24349          (i) the Office of Recovery Services for use related to locating, establishing, and
             24350      enforcing child, medical, and spousal support obligations and other services;
             24351          (ii) state agencies which use financial information in determining eligibility for public
             24352      assistance programs; and
             24353          (iii) federal agencies responsible for periodic matches of new hire registry information
             24354      with federal data bases.
             24355          (2) Information that is received under this chapter shall be kept by the department for at
             24356      least six months.
             24357          Section 496. Section 36-11-102 is amended to read:
             24358           36-11-102. Definitions.
             24359          As used in this chapter:
             24360          (1) "Aggregate daily expenditures" means:
             24361          (a) for a single lobbyist, principal, or government officer, the total of all expenditures

             24362      made within a calendar day by the lobbyist, principal, or government officer for the benefit of an
             24363      individual public official;
             24364          (b) when an expenditure is made by a member of a lobbyist group, the total of all
             24365      expenditures made within a calendar day by every member of the lobbyist group for the benefit
             24366      of an individual public official; or
             24367          (c) for a multiclient lobbyist, the total of all expenditures made by the multiclient
             24368      lobbyist within a calendar day for the benefit of an individual public official, regardless of
             24369      whether expenditures were attributed to different clients.
             24370          (2) "Executive action" means:
             24371          (a) nominations and appointments by the governor;
             24372          (b) the proposal, drafting, amendment, enactment, or defeat by a state agency of any
             24373      rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             24374      Rulemaking Act; and
             24375          (c) agency ratemaking proceedings.
             24376          (3) (a) "Expenditure" means any of the items listed in this Subsection (3)(a) when given
             24377      to or for the benefit of a public official:
             24378          (i) a purchase, payment, distribution, loan, gift, advance, deposit, subscription,
             24379      forbearance, services, or goods, unless consideration of equal or greater value is received; and
             24380          (ii) a contract, promise, or agreement, whether or not legally enforceable, to provide
             24381      any of the items listed in Subsection (3)(a)(i).
             24382          (b) "Expenditure" does not mean:
             24383          (i) a commercially reasonable loan made in the ordinary course of business;
             24384          (ii) a campaign contribution reported in accordance with Title 20A, Chapter 11,
             24385      Campaign and Financial Reporting Requirements;
             24386          (iii) printed informational material that is related to the performance of the recipient's
             24387      official duties;
             24388          (iv) a devise or inheritance;
             24389          (v) any item listed in Subsection (3)(a) if given by a relative;

             24390          (vi) a modest item of food or refreshment such as a beverage or pastry offered other
             24391      than as part of a meal, the value of which does not exceed $5;
             24392          (vii) a greeting card or other item of little intrinsic value that is intended solely for
             24393      presentation; or
             24394          (viii) plaques, commendations, or awards presented in public and having a cash value
             24395      not exceeding $50.
             24396          (4) (a) "Government officer" means:
             24397          (i) an individual elected to a position in state or local government, when acting within
             24398      [his] the government officer's official capacity; or
             24399          (ii) an individual appointed to or employed in a full-time position by state or local
             24400      government, when acting within the scope of [his] the individual's employment.
             24401          (b) "Government officer" does not mean a member of the legislative branch of state
             24402      government.
             24403          (5) "Immediate family" means:
             24404          (a) a spouse;
             24405          (b) a child residing in the household; or
             24406          (c) an individual claimed as a dependent for tax purposes.
             24407          (6) "Interested person" means an individual defined in Subsections (9)(b)(iii) and (viii).
             24408          (7) "Legislative action" means:
             24409          (a) bills, resolutions, amendments, nominations, and other matters pending or proposed
             24410      in either house of the Legislature or its committees or requested by a legislator; and
             24411          (b) the action of the governor in approving or vetoing legislation.
             24412          (8) "Lobbying" means communicating with a public official for the purpose of
             24413      influencing the passage, defeat, amendment, or postponement of legislative or executive action.
             24414          (9) (a) "Lobbyist" means:
             24415          (i) an individual who is employed by a principal; or
             24416          (ii) an individual who contracts for economic consideration, other than reimbursement
             24417      for reasonable travel expenses, with a principal to lobby a public official.

             24418          (b) "Lobbyist" does not include:
             24419          (i) a government officer;
             24420          (ii) a member or employee of the legislative branch of government;
             24421          (iii) any person appearing at, or providing written comments to, a hearing conducted in
             24422      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             24423      Act or [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act;
             24424          (iv) any person participating on or appearing before an advisory or study task force,
             24425      commission, board, or committee, constituted by the Legislature or any agency or department
             24426      of state government, except legislative standing, appropriation, or interim committees;
             24427          (v) a representative of a political party;
             24428          (vi) an individual representing a bona fide church solely for the purpose of protecting
             24429      the right to practice the religious doctrines of the church unless the individual or church makes
             24430      an expenditure that confers a benefit on a public official;
             24431          (vii) a newspaper, television station or network, radio station or network, periodical of
             24432      general circulation, or book publisher for the purpose of publishing news items, editorials, other
             24433      comments, or paid advertisements that directly or indirectly urge legislative or executive action;
             24434      or
             24435          (viii) an individual who appears on [his] the individual's own behalf before a committee
             24436      of the Legislature or an executive branch agency solely for the purpose of testifying in support
             24437      of or in opposition to legislative or executive action.
             24438          (10) "Lobbyist group" means two or more lobbyists, principals, government officers,
             24439      and any combination of lobbyists, principals, and officers who each contribute a portion of an
             24440      expenditure made to benefit a public official or member of the public official's immediate family.
             24441          (11) "Multiclient lobbyist" means a single lobbyist, principal, or government officer who
             24442      represents two or more clients and divides the aggregate daily expenditure made to benefit a
             24443      public official or member of the public official's immediate family between two or more of those
             24444      clients.
             24445          (12) "Person" includes individuals, bodies politic and corporate, partnerships,

             24446      associations, and companies.
             24447          (13) "Principal" means a person that employs an individual to perform lobbying either as
             24448      an employee or as an independent contractor.
             24449          (14) "Public official" means:
             24450          (a) (i) a member of the Legislature;
             24451          (ii) an individual elected to a position in the executive branch; or
             24452          (iii) an individual appointed to or employed in the executive or legislative branch if that
             24453      individual:
             24454          (A) occupies a policymaking position or makes purchasing or contracting decisions;
             24455          (B) drafts legislation or makes rules;
             24456          (C) determines rates or fees; or
             24457          (D) makes adjudicative decisions; or
             24458          (b) an immediate family member of a person described in Subsection (14)(a).
             24459          (15) "Public official type" means a notation to identify whether a public official is:
             24460          (a) (i) a member of the Legislature;
             24461          (ii) an individual elected to a position in the executive branch;
             24462          (iii) an individual appointed to or employed in a position in the legislative branch who
             24463      meets the definition of public official under Subsection (14)(a)(iii); or
             24464          (iv) an individual appointed to or employed in a position in the executive branch who
             24465      meets the definition of public official under Subsection (14)(a)(iii); or
             24466          (b) an immediate family member of a person described in Subsection (14)(b).
             24467          (16) "Quarterly reporting period" means the three-month period covered by each
             24468      financial report required under Subsection 36-11-201 (2)(a).
             24469          (17) "Related person" means any person, or agent or employee of a person, who
             24470      knowingly and intentionally assists a lobbyist, principal, or government officer in lobbying.
             24471          (18) "Relative" means a spouse, child, parent, grandparent, grandchild, brother, sister,
             24472      parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or spouse
             24473      of any of these individuals.

             24474          (19) (a) "Tangible personal property" means an item having a description that is
             24475      consistent with the meaning of tangible personal property found in the Utah Constitution,
             24476      Article XIII.
             24477          (b) "Tangible personal property" does not include the admission price or cost for
             24478      events, meals, recreation, outings, or functions.
             24479          Section 497. Section 36-11-103 is amended to read:
             24480           36-11-103. Licensing requirements.
             24481          (1) (a) Before engaging in any lobbying, a lobbyist shall obtain a license from the
             24482      lieutenant governor by completing the form required by this section.
             24483          (b) The lieutenant governor shall issue licenses to qualified lobbyists.
             24484          (c) The lieutenant governor shall prepare a Lobbyist License Application Form that
             24485      includes:
             24486          (i) a place for the lobbyist's name and business address;
             24487          (ii) a place for the name and business address of each principal for whom the lobbyist
             24488      works or is hired as an independent contractor;
             24489          (iii) a place for the name and address of the person who paid or will pay the lobbyist's
             24490      registration fee, if the fee is not paid by the lobbyist;
             24491          (iv) a place for the lobbyist to disclose any elected or appointed position that the
             24492      lobbyist holds in state or local government, if any;
             24493          (v) a place for the lobbyist to disclose the types of expenditures for which the lobbyist
             24494      will be reimbursed; and
             24495          (vi) a certification to be signed by the lobbyist that certifies that the information
             24496      provided in the form is true, accurate, and complete to the best of the lobbyist's knowledge and
             24497      belief.
             24498          (2) Each lobbyist who obtains a license under this section shall update the licensure
             24499      information when the lobbyist accepts employment for lobbying by a new client.
             24500          (3) (a) Except as provided in Subsection (4), the lieutenant governor shall grant a
             24501      lobbying license to an applicant who:

             24502          (i) files an application with the lieutenant governor that contains the information
             24503      required by this section; and
             24504          (ii) pays a $25 filing fee.
             24505          (b) A license entitles a person to serve as a lobbyist on behalf of one or more principals
             24506      and expires on December 31 of each even-numbered year.
             24507          (4) (a) The lieutenant governor may disapprove an application for a lobbying license:
             24508          (i) if the applicant has been convicted of violating Section 76-8-103 , 76-8-107 ,
             24509      76-8-108 , or 76-8-303 within five years before the date of the lobbying license application;
             24510          (ii) if the applicant has been convicted of violating Section 76-8-104 or 76-8-304 within
             24511      one year before the date of the lobbying license application;
             24512          (iii) for the term of any suspension imposed under Section 36-11-401 ; or
             24513          (iv) if, within one year before the date of the lobbying license application, the applicant
             24514      has been found to have willingly and knowingly:
             24515          (A) violated Section 36-11-103 , 36-11-201 , 36-11-301 , 36-11-302 , 36-11-303 ,
             24516      36-11-304 , 36-11-305 , or 36-11-403 ; or
             24517          (B) filed a document required by this chapter that the lobbyist knew contained
             24518      materially false information or omitted material information.
             24519          (b) An applicant may appeal the disapproval in accordance with the procedures
             24520      established by the lieutenant governor under this chapter and [Title 63, Chapter 46b] Title 63G,
             24521      Chapter 4, Administrative Procedures Act.
             24522          (5) The lieutenant governor shall deposit license fees in the General Fund.
             24523          (6) A principal need not obtain a license under this section, but if the principal makes
             24524      expenditures to benefit a public official without using a lobbyist as an agent to confer those
             24525      benefits, the principal shall disclose those expenditures as required by Sections 36-11-201 .
             24526          (7) Government officers need not obtain a license under this section, but shall disclose
             24527      any expenditures made to benefit public officials as required by Sections 36-11-201 .
             24528          (8) Surrender, cancellation, or expiration of a lobbyist license does not absolve the
             24529      lobbyist of the duty to file the financial reports if the lobbyist is otherwise required to file the

             24530      reports by Section 36-11-201 .
             24531          Section 498. Section 36-11-404 is amended to read:
             24532           36-11-404. Lieutenant governor's procedures.
             24533          (1) The lieutenant governor shall make rules that provide:
             24534          (a) for the appointment of an administrative law judge to adjudicate alleged violations
             24535      of this section and to impose penalties under this section;
             24536          (b) procedures for license applications, disapprovals, suspensions, revocations, and
             24537      reinstatements that comply with the procedures and requirements of [Title 63, Chapter 46b]
             24538      Title 63G, Chapter 4, Administrative Procedures Act.
             24539          (2) The lieutenant governor shall develop forms needed for the registration and
             24540      disclosure provisions of this chapter.
             24541          Section 499. Section 36-12-13 is amended to read:
             24542           36-12-13. Office of Legislative Fiscal Analyst established -- Powers, functions,
             24543      and duties -- Qualifications.
             24544          (1) There is established an Office of Legislative Fiscal Analyst as a permanent staff
             24545      office for the Legislature.
             24546          (2) The powers, functions, and duties of the Office of Legislative Fiscal Analyst under
             24547      the supervision of the fiscal analyst are:
             24548          (a) to analyze in detail the executive budget before the convening of each legislative
             24549      session and make recommendations to the Legislature on each item or program appearing in the
             24550      executive budget;
             24551          (b) to prepare cost estimates on all proposed bills that anticipate state government
             24552      expenditures;
             24553          (c) to prepare cost estimates on all proposed bills that anticipate expenditures by
             24554      county, municipal, local district, or special service district governments;
             24555          (d) to prepare cost estimates on all proposed bills that anticipate direct expenditures by
             24556      any Utah resident, and the cost to the overall impacted Utah resident population;
             24557          (e) to prepare a review and analysis of revenue estimates for existing and proposed

             24558      revenue acts;
             24559          (f) to report instances in which the administration may be failing to carry out the
             24560      expressed intent of the Legislature;
             24561          (g) to direct attention to each new proposed service contained in the governor's budget;
             24562          (h) to direct attention to each budget item previously denied by the Legislature;
             24563          (i) to propose and analyze statutory changes for more effective operational economies
             24564      or more effective administration;
             24565          (j) to prepare, after each session of the Legislature, a summary showing the effect of the
             24566      final legislative program on the financial condition of the state;
             24567          (k) to conduct organizational and management improvement studies;
             24568          (l) to prepare and deliver upon request of any interim committee or the Legislative
             24569      Management Committee, reports on the finances of the state and on anticipated or proposed
             24570      requests for appropriations;
             24571          (m) to recommend areas for research studies by the executive department or the interim
             24572      committees;
             24573          (n) to assist in prescribing the format for the presentation of the governor's budget to
             24574      facilitate program and in-depth review of state expenditures in accordance with Sections
             24575      [ 63-38-14 ] 63J-1-501 and [ 63-38-15 ] 63J-1-502 ;
             24576          (o) to recommend to the appropriations subcommittees the agencies or programs for
             24577      which an in-depth budget review should be requested, and to recommend to the Legislative
             24578      Management Committee the priority in which the request should be made;
             24579          (p) to appoint and develop a professional staff within budget limitations; and
             24580          (q) to prepare and submit the annual budget request for the office.
             24581          (3) (a) In accordance with Subsection (3)(b) and subject to Subsection (3)(c), the
             24582      Office of Legislative Fiscal Analyst shall submit an annual report to the Executive
             24583      Appropriations Committee of the Legislature, at the committee's November meeting, on funds
             24584      expended by the state during the preceding state fiscal year to provide financial assistance or
             24585      services to low-income individuals and families.

             24586          (b) The report described in Subsection (3)(a) shall:
             24587          (i) separate the funds expended into categories by program, service, or population
             24588      served;
             24589          (ii) indicate whether the expended funds described in Subsection (3)(a) are state or
             24590      federal funds; and
             24591          (iii) include a total of all state funds and federal funds expended by the state in the
             24592      preceding fiscal year to provide financial assistance or services to low-income individuals and
             24593      families.
             24594          (c) If the Executive Appropriations Committee of the Legislature does not meet in
             24595      November, the Office of Legislative Fiscal Analyst shall submit the report described in
             24596      Subsection (3)(a) at the committee's next meeting.
             24597          (4) The legislative fiscal analyst shall have a master's degree in public administration,
             24598      political science, economics, accounting, or the equivalent in academic or practical experience.
             24599          (5) In carrying out the duties provided for in this section, the legislative fiscal analyst
             24600      may obtain access to all records, documents, and reports necessary to the scope of [his] the
             24601      legislative fiscal analyst's duties according to the procedures contained in Title 36, Chapter 14,
             24602      Legislative Subpoena Powers.
             24603          Section 500. Section 36-12-15 is amended to read:
             24604           36-12-15. Office of Legislative Auditor General established -- Qualifications --
             24605      Powers, functions, and duties.
             24606          (1) There is created an Office of Legislative Auditor General as a permanent staff office
             24607      for the Legislature.
             24608          (2) The legislative auditor general shall be a licensed certified public accountant or
             24609      certified internal auditor with at least five years experience in the auditing or public accounting
             24610      profession, or the equivalent, prior to appointment.
             24611          (3) The legislative auditor general shall appoint and develop a professional staff within
             24612      budget limitations.
             24613          (4) (a) The Office of the Legislative Auditor General shall exercise the constitutional

             24614      authority provided in Article VI, Sec. 33, Utah Constitution.
             24615          (b) Under the direction of the legislative auditor general, the office shall:
             24616          (i) conduct comprehensive and special purpose audits, examinations, and reviews of any
             24617      entity that receives public funds;
             24618          (ii) prepare and submit a written report on each audit, examination, or review to the
             24619      Legislative Management Committee, the audit subcommittee, and to all members of the
             24620      Legislature within 75 days after the audit or examination is completed; and
             24621          (iii) as provided in Section 36-24-101 :
             24622          (A) monitor all new programs and agencies created during each Annual General Session
             24623      or Special Session of the Legislature;
             24624          (B) provide each new program and agency created with a list of best practices in setting
             24625      up their program or agency, including:
             24626          (I) policies;
             24627          (II) performance measures; and
             24628          (III) data collection;
             24629          (C) send each new program and agency:
             24630          (I) within one year after its creation, a survey instrument requesting a self evaluation
             24631      that includes policies, performance measures, and data collection; and
             24632          (II) within two years after its creation, a survey instrument requesting a self evaluation
             24633      that includes policies, performance measures, and data collection; and
             24634          (D) (I) using the new program or agency's response to the self evaluation survey
             24635      instruments, recommend to the legislative audit subcommittee that the office conduct an audit of
             24636      those new programs and agencies created on which questions have arisen as a result of the
             24637      response to the survey instrument and provide a limited scope audit report on those new
             24638      programs or agencies on which it receives direction to audit to the legislative interim committee
             24639      and to the legislative appropriations subcommittee with oversight responsibility for that
             24640      program or agency on or before the November interim meeting; and
             24641          (II) include within this limited scope audit report a recommendation as to whether the

             24642      program or agency is fulfilling its statutory guidelines and directives.
             24643          (5) The audit, examination, or review of any entity that receives public funds may
             24644      include a determination of any or all of the following:
             24645          (a) the honesty and integrity of all its fiscal affairs;
             24646          (b) the accuracy and reliability of its financial statements and reports;
             24647          (c) whether or not its financial controls are adequate and effective to properly record
             24648      and safeguard its acquisition, custody, use, and accounting of public funds;
             24649          (d) whether or not its administrators have faithfully adhered to legislative intent;
             24650          (e) whether or not its operations have been conducted in an efficient, effective, and
             24651      cost efficient manner;
             24652          (f) whether or not its programs have been effective in accomplishing intended
             24653      objectives; and
             24654          (g) whether or not its management control and information systems are adequate and
             24655      effective.
             24656          (6) The Office of Legislative Auditor General may:
             24657          (a) (i) notwithstanding any other provision of law, obtain access to all records,
             24658      documents, and reports of any entity that receives public funds that are necessary to the scope
             24659      of its duties; and
             24660          (ii) if necessary, issue a subpoena to obtain access as provided in Subsection (6)(a)(i)
             24661      using the procedures contained in Title 36, Chapter 14, Legislative Subpoena Powers;
             24662          (b) establish policies, procedures, methods, and standards of audit work for the office
             24663      and staff;
             24664          (c) prepare and submit each audit report without interference from any source relative
             24665      to the content of the report, the conclusions reached in the report, or the manner of disclosing
             24666      the results of [his] the legislative auditor general's findings; and
             24667          (d) prepare and submit the annual budget request for the office.
             24668          (7) To preserve the professional integrity and independence of the office:
             24669          (a) no legislator or public official may urge the appointment of any person to the office;

             24670      and
             24671          (b) the legislative auditor general may not be appointed to serve on any board,
             24672      authority, commission, or other agency of the state during [his] the legislative auditor general's
             24673      term as legislative auditor general.
             24674          (8) The following records in the custody or control of the legislative auditor general
             24675      shall be protected records under [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             24676      Records Access and Management Act:
             24677          (a) Records that would disclose information relating to allegations of personal
             24678      misconduct, gross mismanagement, or illegal activity of a past or present governmental
             24679      employee if the information or allegation cannot be corroborated by the legislative auditor
             24680      general through other documents or evidence, and the records relating to the allegation are not
             24681      relied upon by the legislative auditor general in preparing a final audit report.
             24682          (b) Records and audit workpapers to the extent they would disclose the identity of a
             24683      person who during the course of a legislative audit, communicated the existence of any waste of
             24684      public funds, property, or manpower, or a violation or suspected violation of a law, rule, or
             24685      regulation adopted under the laws of this state, a political subdivision of the state, or any
             24686      recognized entity of the United States, if the information was disclosed on the condition that the
             24687      identity of the person be protected.
             24688          (c) Prior to the time that an audit is completed and the final audit report is released,
             24689      records or drafts circulated to a person who is not an employee or head of a governmental
             24690      entity for their response or information.
             24691          (d) Records that would disclose an outline or part of any audit survey plans or audit
             24692      program.
             24693          (e) Requests for audits, if disclosure would risk circumvention of an audit.
             24694          (f) The provisions of Subsections (8)(a), (b), and (c) do not prohibit the disclosure of
             24695      records or information that relate to a violation of the law by a governmental entity or employee
             24696      to a government prosecutor or peace officer.
             24697          (g) The provisions of this section do not limit the authority otherwise given to the

             24698      legislative auditor general to classify a document as public, private, controlled, or protected
             24699      under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             24700      Management Act.
             24701          (9) The legislative auditor general shall:
             24702          (a) be available to the Legislature and to its committees for consultation on matters
             24703      relevant to areas of [his] the legislative auditor general's professional competence and shall
             24704      perform, or otherwise assist in the performance of, a health insurance provision review as
             24705      provided in Section 36-12-5 ;
             24706          (b) conduct special audits as requested by the Legislative Management Committee;
             24707          (c) report immediately in writing to the Legislative Management Committee through its
             24708      audit subcommittee any apparent violation of penal statutes disclosed by the audit of a state
             24709      agency and furnish to the Legislative Management Committee all information relative to the
             24710      apparent violation;
             24711          (d) report immediately in writing to the Legislative Management Committee through its
             24712      audit subcommittee any apparent instances of malfeasance or nonfeasance by a state officer or
             24713      employee disclosed by the audit of a state agency; and
             24714          (e) make any recommendations to the Legislative Management Committee through its
             24715      audit subcommittee with respect to the alteration or improvement of the accounting system used
             24716      by any entity that receives public funds.
             24717          (10) (a) Prior to each annual general session, the legislative auditor general shall
             24718      prepare a summary of the audits conducted and of actions taken based upon them during the
             24719      preceding year.
             24720          (b) This report shall also set forth any items and recommendations that are important
             24721      for consideration in the forthcoming session, together with a brief statement or rationale for
             24722      each item or recommendation.
             24723          (c) The legislative auditor general shall deliver the report to the Legislature and to the
             24724      appropriate committees of the Legislature.
             24725          (11) (a) No person or entity may:

             24726          (i) interfere with a legislative audit, examination, or review of any entity conducted by
             24727      the office; or
             24728          (ii) interfere with the office relative to the content of the report, the conclusions reached
             24729      in the report, or the manner of disclosing the results and findings of the office.
             24730          (b) Any person or entity that violates the provisions of this Subsection (11) is guilty of a
             24731      class B misdemeanor.
             24732          Section 501. Section 36-23-106 is amended to read:
             24733           36-23-106. Duties -- Reporting.
             24734          (1) The committee shall:
             24735          (a) conduct a sunrise review in accordance with Section 36-23-107 for all applications
             24736      submitted in accordance with Section 36-23-105 ;
             24737          (b) conduct a sunset review for an occupational or professional license classification
             24738      that is referred to the committee by any other legislative committee by applying:
             24739          (i) the criteria in Section 36-23-107 ;
             24740          (ii) the criteria in [Title 63, Chapter 55] Title 63I, Chapter 1, Legislative Oversight and
             24741      Sunset Act; and
             24742          (iii) any other appropriate criteria; and
             24743          (c) submit a written report by no later than December 31 of each calendar year to:
             24744          (i) the speaker of the House of Representatives;
             24745          (ii) the president of the Senate;
             24746          (iii) the chair of the House Rules Committee;
             24747          (iv) the chair of the Senate Rules Committee; and
             24748          (v) the chairs of the Commerce and Revenue Appropriations Subcommittee.
             24749          (2) The written report required by Subsection (1)(c) shall include:
             24750          (a) all findings and recommendations made by the committee under Subsection (1) or
             24751      (3) in that calendar year; and
             24752          (b) a summary report for each sunrise review conducted by the committee stating:
             24753          (i) whether the sunrise review was conducted under Subsection (1) or (3);

             24754          (ii) whether or not the sunrise review included a review of specific proposed statutory
             24755      language;
             24756          (iii) any action taken by the committee as a result of the sunrise review; and
             24757          (iv) the number of legislative members that voted in favor of the action described in
             24758      Subsection (2)(b)(iii).
             24759          (3) The committee may:
             24760          (a) conduct a sunrise review of any proposal to newly regulate an occupation or
             24761      profession;
             24762          (b) conduct any other review referred to it by the Legislature, the Legislative
             24763      Management Committee, or other legislative committee; or
             24764          (c) conduct any other study related to regulation of an occupation or profession under
             24765      Title 58, Occupations and Professions.
             24766          Section 502. Section 38-1-11 is amended to read:
             24767           38-1-11. Enforcement -- Time for -- Lis pendens -- Action for debt not affected --
             24768      Instructions and form affidavit and motion.
             24769          (1) As used in this section:
             24770          (a) "Owner" is as defined in Section 38-11-102 .
             24771          (b) "Residence" is as defined in Section 38-11-102 .
             24772          (2) A lien claimant shall file an action to enforce the lien filed under this chapter within
             24773      180 days from the day on which the lien claimant filed a notice of claim under Section 38-1-7 .
             24774          (3) (a) Within the time period provided for filing in Subsection (2) the lien claimant
             24775      shall file for record with the county recorder of each county in which the lien is recorded a
             24776      notice of the pendency of the action, in the manner provided in actions affecting the title or right
             24777      to possession of real property, or the lien shall be void, except as to persons who have been
             24778      made parties to the action and persons having actual knowledge of the commencement of the
             24779      action.
             24780          (b) The burden of proof is upon the lien claimant and those claiming under the lien
             24781      claimant to show actual knowledge under Subsection (3)(a).

             24782          (4) (a) A lien filed under this chapter is automatically and immediately void if an action
             24783      to enforce the lien is not filed within the time required by this section.
             24784          (b) Notwithstanding Section 78-12-40 , a court has no subject matter jurisdiction to
             24785      adjudicate a lien that becomes void under Subsection (4)(a).
             24786          (5) This section may not be interpreted to impair or affect the right of any person to
             24787      whom a debt may be due for any work done or materials furnished to maintain a personal action
             24788      to recover the debt.
             24789          (6) (a) If a lien claimant files an action to enforce a lien filed under this chapter
             24790      involving a residence, the lien claimant shall include with the service of the complaint on the
             24791      owner of the residence:
             24792          (i) instructions to the owner of the residence relating to the owner's rights under Title
             24793      38, Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act; and
             24794          (ii) a form to enable the owner of the residence to specify the grounds upon which the
             24795      owner may exercise available rights under Title 38, Chapter 11, Residence Lien Restriction and
             24796      Lien Recovery Fund Act.
             24797          (b) The instructions and form required by Subsection (6)(a) shall meet the requirements
             24798      established by rule by the Division of Occupational and Professional Licensing in accordance
             24799      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             24800          (c) If a lien claimant fails to provide to the owner of the residence the instructions and
             24801      form required by Subsection (6)(a), the lien claimant shall be barred from maintaining or
             24802      enforcing the lien upon the residence.
             24803          (d) Judicial determination of the rights and liabilities of the owner of the residence
             24804      under this chapter and Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery
             24805      Fund Act, and Title 14, Chapter 2, Private Contracts, shall be stayed until after the owner is
             24806      given a reasonable period of time to establish compliance with Subsections 38-11-204 (4)(a) and
             24807      (4)(b) through an informal proceeding, as set forth in [Title 63, Chapter 46b] Title 63G,
             24808      Chapter 4, Administrative Procedures Act, commenced within 30 days of the owner being
             24809      served summons in the foreclosure action, at the Division of Occupational and Professional

             24810      Licensing and obtain a certificate of compliance or denial of certificate of compliance, as defined
             24811      in Section 38-11-102 .
             24812          (e) An owner applying for a certificate of compliance under Subsection (6)(d) shall send
             24813      by certified mail to all lien claimants:
             24814          (i) a copy of the application for a certificate of compliance; and
             24815          (ii) all materials filed in connection with the application.
             24816          (f) The Division of Occupational and Professional Licensing shall notify all lien
             24817      claimants listed in an owner's application for a certificate of compliance under Subsection (6)(d)
             24818      of the issuance or denial of a certificate of compliance.
             24819          (7) The written notice requirement applies to liens filed on or after July 1, 2004.
             24820          Section 503. Section 38-1-27 is amended to read:
             24821           38-1-27. State Construction Registry -- Form and contents of notice of
             24822      commencement, preliminary notice, and notice of completion.
             24823          (1) As used in this section and Sections 38-1-30 through 38-1-37 :
             24824          (a) "Alternate filing" means a legible and complete filing made in a manner established
             24825      by the division under Subsection (2)(e) other than an electronic filing.
             24826          (b) "Cancel" means to indicate that a filing is no longer given effect.
             24827          (c) "Construction project," "project," or "improvement" means all labor, equipment, and
             24828      materials provided:
             24829          (i) under an original contract; or
             24830          (ii) by, or under contracts with, an owner-builder.
             24831          (d) "Database" means the State Construction Registry created in this section.
             24832          (e) (i) "Designated agent" means the third party the Division of Occupational and
             24833      Professional Licensing contracts with to create and maintain the State Construction Registry.
             24834          (ii) The designated agent is not an agency, instrumentality, or a political subdivision of
             24835      the state.
             24836          (f) "Division" means the Division of Occupational and Professional Licensing.
             24837          (g) "Interested person" means a person who may be affected by a construction project.

             24838          (h) "Program" means the State Construction Registry Program created in this section.
             24839          (2) Subject to receiving adequate funding through a legislative appropriation and
             24840      contracting with an approved third party vendor who meets the requirements of Sections
             24841      38-1-30 through 38-1-37 , there is created the State Construction Registry Program that shall:
             24842          (a) (i) assist in protecting public health, safety, and welfare; and
             24843          (ii) promote a fair working environment;
             24844          (b) be overseen by the division with the assistance of the designated agent;
             24845          (c) provide a central repository for notices of commencement, preliminary notices, and
             24846      notices of completion filed in connection with all privately owned construction projects as well
             24847      as all state and local government owned construction projects throughout Utah;
             24848          (d) be accessible for filing and review by way of the program Internet website of:
             24849          (i) notices of commencement;
             24850          (ii) preliminary notices; and
             24851          (iii) notices of completion;
             24852          (e) accommodate:
             24853          (i) electronic filing of the notices described in Subsection (2)(d); and
             24854          (ii) alternate filing of the notices described in Subsection (2)(d) by U.S. mail, telefax, or
             24855      any other alternate method as provided by rule made by the division in accordance with [Title
             24856      63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             24857          (f) (i) provide electronic notification for up to three e-mail addresses for each interested
             24858      person or company who requests notice from the construction notice registry; and
             24859          (ii) provide alternate means of notification for a person who makes an alternate filing,
             24860      including U.S. mail, telefax, or any other method as prescribed by rule made by the division in
             24861      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             24862      Act; and
             24863          (g) provide hard-copy printing of electronic receipts for an individual filing evidencing
             24864      the date and time of the individual filing and the content of the individual filing.
             24865          (3) (a) The designated agent shall provide notice of all other filings for a project to any

             24866      person who files a notice of commencement, preliminary notice, or notice of completion for that
             24867      project, unless the person:
             24868          (i) requests that the person not receive notice of other filings; or
             24869          (ii) does not provide the designated agent with the person's contact information in a
             24870      manner that adequately informs the designated agent.
             24871          (b) An interested person may request notice of filings related to a project.
             24872          (c) The database shall be indexed by:
             24873          (i) owner name;
             24874          (ii) original contractor name;
             24875          (iii) subdivision, development, or other project name, if any;
             24876          (iv) project address;
             24877          (v) lot or parcel number;
             24878          (vi) unique project number assigned by the designated agent; and
             24879          (vii) any other identifier that the division considers reasonably appropriate in
             24880      collaboration with the designated agent.
             24881          (4) (a) In accordance with the process required by Section [ 63-38-3.2 ] 63J-1-303 , the
             24882      division shall establish the fees for:
             24883          (i) a notice of commencement;
             24884          (ii) a preliminary notice;
             24885          (iii) a notice of completion;
             24886          (iv) a request for notice;
             24887          (v) providing a required notice by an alternate method of delivery;
             24888          (vi) a duplicate receipt of a filing; and
             24889          (vii) account setup for a person who wishes to be billed periodically for filings with the
             24890      database.
             24891          (b) The fees allowed under Subsection (4)(a) may not exceed the amount reasonably
             24892      necessary to create and maintain the database.
             24893          (c) The fees established by the division may vary by method of filing if one form of

             24894      filing is more costly to process than another form of filing.
             24895          (d) The division may provide by contract that the designated agent may retain all fees
             24896      collected by the designated agent except that the designated agent shall remit to the division the
             24897      cost of the division's oversight under Subsection (2)(b).
             24898          (5) (a) The database is classified as a public record under [Title 63, Chapter 2] Title
             24899      63G, Chapter 2, Government Records Access and Management Act, unless otherwise classified
             24900      by the division.
             24901          (b) A request for information submitted to the designated agent is not subject to [Title
             24902      63, Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act.
             24903          (c) Information contained in a public record contained in the database shall be requested
             24904      from the designated agent.
             24905          (d) The designated agent may charge a commercially reasonable fee allowed by the
             24906      designated agent's contract with the division for providing information under Subsection (5)(c).
             24907          (e) Notwithstanding [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             24908      Access and Management Act, if information is available in a public record contained in the
             24909      database, a person may not request the information from the division.
             24910          (f) (i) A person may request information that is not a public record contained in the
             24911      database from the division in accordance with [Title 63, Chapter 2] Title 63G, Chapter 2,
             24912      Government Records Access and Management Act.
             24913          (ii) The division shall inform the designated agent of how to direct inquiries made to the
             24914      designated agent for information that is not a public record contained in the database.
             24915          (6) The following are not an adjudicative proceeding under [Title 63, Chapter 46b]
             24916      Title 63G, Chapter 4, Administrative Procedures Act:
             24917          (a) the filing of a notice permitted by this chapter;
             24918          (b) the rejection of a filing permitted by this chapter; or
             24919          (c) other action by the designated agent in connection with a filing of any notice
             24920      permitted by this chapter.
             24921          (7) The division and the designated agent need not determine the timeliness of any

             24922      notice before filing the notice in the database.
             24923          (8) (a) A person who is delinquent on the payment of a fee established under Subsection
             24924      (4) may not file a notice with the database.
             24925          (b) A determination that a person is delinquent on the payment of a fee for filing
             24926      established under Subsection (4) shall be made in accordance with [Title 63, Chapter 46b] Title
             24927      63G, Chapter 4, Administrative Procedures Act.
             24928          (c) Any order issued in a proceeding described in Subsection (8)(b) may prescribe the
             24929      method of that person's payment of fees for filing notices with the database after issuance of the
             24930      order.
             24931          (9) If a notice is filed by a third party on behalf of another, the notice is considered to
             24932      be filed by the person on whose behalf the notice is filed.
             24933          (10) A person filing a notice of commencement, preliminary notice, or notice of
             24934      completion is responsible for verifying the accuracy of information entered into the database,
             24935      whether the person files electronically or by alternate or third party filing.
             24936          Section 504. Section 38-1-28 is amended to read:
             24937           38-1-28. Notice of release of lien and substitution of alternate security.
             24938          (1) The owner of any interest in real property that is subject to a mechanics' lien
             24939      recorded under this chapter, or any original contractor or subcontractor affected by the lien,
             24940      who disputes the correctness or validity of the lien may record a notice of release of lien and
             24941      substitution of alternate security:
             24942          (a) that meets the requirements of Subsection (2);
             24943          (b) in the office of the county recorder where the lien was recorded; and
             24944          (c) at any time before the expiration of 90 days after the day on which the person filing
             24945      a notice of release of lien and substitution of alternate security is served with a summons and
             24946      lien foreclosure complaint.
             24947          (2) A notice of release of lien and substitution of alternate security recorded under
             24948      Subsection (1) shall:
             24949          (a) meet the requirements for the recording of documents in Title 57, Chapter 3,

             24950      Recording of Documents;
             24951          (b) reference the lien sought to be released, including an entry number, book number,
             24952      and page number; and
             24953          (c) have as an attachment a surety bond or evidence of a cash deposit that:
             24954          (i) (A) if a surety bond, is executed by a surety company that is treasury listed, A-rated
             24955      by AM Best Company, and authorized to issue surety bonds in this state; or
             24956          (B) if evidence of a cash deposit, meets the requirements established by rule by the
             24957      Department of Commerce in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             24958      Utah Administrative Rulemaking Act;
             24959          (ii) is in an amount equal to:
             24960          (A) 150% of the amount claimed by the lien claimant on a notice of lien or determined
             24961      under Subsection (7), if the lien claim is for $25,000 or more;
             24962          (B) 175% of the amount claimed by the lien claimant on a notice of lien or determined
             24963      under Subsection (7), if the lien claim is for at least $15,000 but less than $25,000; or
             24964          (C) 200% of the amount claimed by the lien claimant on a notice of lien or determined
             24965      under Subsection (7), if the lien claim is for less than $15,000;
             24966          (iii) is made payable to the lien claimant;
             24967          (iv) is conditioned for the payment of:
             24968          (A) the judgment that would have been rendered, or has been rendered against the
             24969      property in the action to enforce the lien; and
             24970          (B) any costs and attorneys' fees awarded by the court; and
             24971          (v) has as principal:
             24972          (A) the owner of the interest in the real property; or
             24973          (B) the original contractor or subcontractor affected by the lien.
             24974          (3) (a) Upon the recording of the notice of release of lien and substitution of alternate
             24975      security under Subsection (1), the real property described in the notice shall be released from
             24976      the mechanics' lien to which the notice applies.
             24977          (b) A recorded notice of release of lien and substitution of alternate security is effective

             24978      as to any amendment to the lien being released if the bond amount remains enough to satisfy the
             24979      requirements of Subsection (2)(c)(ii).
             24980          (4) (a) Upon the recording of a notice of release of lien and substitution of alternate
             24981      security under Subsection (1), the person recording the notice shall serve a copy of the notice,
             24982      together with any attachments, within 30 days upon the lien claimant.
             24983          (b) If a suit is pending to foreclose the lien at the time the notice is served upon the lien
             24984      claimant under Subsection (4)(a), the lien claimant shall, within 90 days from the receipt of the
             24985      notice, institute proceedings to add the alternate security as a party to the lien foreclosure suit.
             24986          (5) The alternate security attached to a notice of release of lien shall be discharged and
             24987      released upon:
             24988          (a) the failure of the lien claimant to commence a suit against the alternate security
             24989      within the same time as an action to enforce the lien under Section 38-1-11 ;
             24990          (b) the failure of the lien claimant to institute proceedings to add the alternate security
             24991      as a party to a lien foreclosure suit within the time required by Subsection (4)(b);
             24992          (c) the dismissal with prejudice of the lien foreclosure suit or suit against the alternate
             24993      security as to the lien claimant; or
             24994          (d) the entry of judgment against the lien claimant in:
             24995          (i) a lien foreclosure suit; or
             24996          (ii) suit against the alternate security.
             24997          (6) If a copy of the notice of release of lien and substitution of alternate security is not
             24998      served upon the lien claimant as provided in Subsection (4)(a), the lien claimant shall have six
             24999      months after the discovery of the notice to commence an action against the alternate security,
             25000      except that no action may be commenced against the alternate security after two years from the
             25001      date the notice was recorded.
             25002          (7) (a) The owner of any interest in real property that is subject to a mechanics' lien
             25003      recorded under this chapter or an original contractor or subcontractor affected by a mechanics'
             25004      lien recorded under this chapter who disputes the amount claimed in a notice of lien may
             25005      petition the district court in the county in which the notice of lien is recorded for a summary

             25006      determination of the correct amount of a lien claim for the sole purpose of providing alternate
             25007      security.
             25008          (b) A petition under this Subsection (7) shall:
             25009          (i) state with specificity the factual and legal bases for disputing the amount of the lien
             25010      claim; and
             25011          (ii) be supported by a sworn affidavit and any other evidence supporting the petition.
             25012          (c) A petitioner under Subsection (7)(a) shall, under Utah Rules of Civil Procedure,
             25013      Rule 4, serve on the lien claimant:
             25014          (i) a copy of the petition; and
             25015          (ii) a notice of hearing if a hearing is scheduled.
             25016          (d) If a court finds a petition under Subsection (7)(a) insufficient, the court may dismiss
             25017      the petition without a hearing.
             25018          (e) If a court finds a petition under Subsection (7)(a) sufficient, the court shall schedule
             25019      a hearing within ten days to determine the correct amount of the lien claim for the sole purpose
             25020      of providing alternate security.
             25021          (f) A lien claimant may:
             25022          (i) attend a hearing held under this Subsection (7); and
             25023          (ii) contest the petition.
             25024          (g) A determination under this section is limited to a determination of the amount of the
             25025      lien claim for the sole purpose of providing alternate security and does not conclusively
             25026      establish:
             25027          (i) the amount to which the lien claimant is entitled;
             25028          (ii) the validity of the lien claim; or
             25029          (iii) any person's right to any other legal remedy.
             25030          (h) If a court, in a proceeding under this Subsection (7), determines that the amount
             25031      claimed in a notice of claim is excessive, the court shall set the amount of the lien claim for the
             25032      sole purpose of providing alternate security.
             25033          (i) In an order under Subsection (7)(h), the court shall include a legal description of the

             25034      property.
             25035          (j) A petitioner under this Subsection (7) may record a certified copy of any order
             25036      issued under this Subsection (7) in the county in which the lien is recorded.
             25037          (k) Attorneys' fees may not be awarded for a proceeding under this Subsection (7), but
             25038      shall be considered in any award of attorneys' fees under any other provision of this chapter.
             25039          Section 505. Section 38-1-30 is amended to read:
             25040           38-1-30. Third-party contract -- Designated agent.
             25041          (1) The division shall contract in accordance with [Title 63, Chapter 56] Title 63G,
             25042      Chapter 6, Utah Procurement Code, with a third party to establish and maintain the database for
             25043      the purposes established under this section, Section 38-1-27 , and Sections 38-1-31 through
             25044      38-1-37 .
             25045          (2) (a) The third party under contract under this section is the division's designated
             25046      agent, and shall develop and maintain a database from the information provided by:
             25047          (i) local government entities issuing building permits;
             25048          (ii) original contractors;
             25049          (iii) subcontractors; and
             25050          (iv) other interested persons.
             25051          (b) The database shall accommodate filings by third parties on behalf of clients.
             25052          (c) The division and the designated agent shall design, develop, and test the database
             25053      for full implementation on May 1, 2005.
             25054          (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             25055      Administrative Rulemaking Act, the division shall make rules and develop procedures for:
             25056          (a) the division to oversee and enforce this section, Section 38-1-27 , and Sections
             25057      38-1-31 through 38-1-37 ;
             25058          (b) the designated agent to administer this section, Section 38-1-27 , and Sections
             25059      38-1-31 through 38-1-37 ; and
             25060          (c) the form of submission of an alternate filing, which may include procedures for
             25061      rejecting an illegible or incomplete filing.

             25062          (4) (a) The designated agent shall archive computer data files at least semiannually for
             25063      auditing purposes.
             25064          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             25065      Administrative Rulemaking Act, the division shall make rules to allow the designated agent to
             25066      periodically archive projects from the database.
             25067          (c) A project shall be archived no earlier than:
             25068          (i) one year after the day on which a notice of completion is filed for a project;
             25069          (ii) if no notice of completion is filed, two years after the last filing activity for a project;
             25070      or
             25071          (iii) one year after the day on which a filing is cancelled under Subsection 38-1-32 (3)(c)
             25072      or 38-1-33 (2)(c).
             25073          (d) The division may audit the designated agent's administration of the database as often
             25074      as the division considers necessary.
             25075          (5) The designated agent shall carry errors and omissions insurance in the amounts
             25076      established by rule made by the division in accordance with [Title 63, Chapter 46a] Title 63G,
             25077      Chapter 3, Utah Administrative Rulemaking Act.
             25078          (6) (a) The designated agent shall make reasonable efforts to assure the accurate entry
             25079      into the database of information provided in alternate filings.
             25080          (b) The designated agent shall meet or exceed standards established by the division for
             25081      the accuracy of data entry for alternate filings.
             25082          (7) The designated agent is not liable for the correctness of the information contained in
             25083      an alternate filing it enters into the database.
             25084          Section 506. Section 38-1-31 is amended to read:
             25085           38-1-31. Building permit -- Construction -- Notice registry -- Notice of
             25086      commencement of work.
             25087          (1) (a) (i) (A) For a construction project where a building permit is issued to an original
             25088      contractor or owner-builder, within 15 days after the issuance of the building permit:
             25089          (I) the local government entity issuing that building permit shall input the building

             25090      permit application and transmit the building permit information to the database electronically by
             25091      way of the Internet or computer modem or by any other means; and
             25092          (II) the original contractor or owner-builder may file a notice of commencement based
             25093      on the building permit issued by the local government entity.
             25094          (B) The information submitted under Subsection (1)(a)(i)(A) forms the basis of a notice
             25095      of commencement.
             25096          (ii) The person to whom a building permit, filed under Subsection (1)(a)(i), is issued is
             25097      responsible for the accuracy of the information in the building permit.
             25098          (iii) For the purposes of classifying a record under [Title 63, Chapter 2] Title 63G,
             25099      Chapter 2, Government Records Access and Management Act, building permit information
             25100      transmitted from a local governmental entity to the database shall be classified in the database
             25101      by the division notwithstanding the local governmental entity's classification of the building
             25102      permit information.
             25103          (b) Within 15 days after commencement of physical construction work at the project
             25104      site, the original contractor or owner-builder may file a notice of commencement with the
             25105      database whether or not a building permit is issued or a notice of commencement is filed under
             25106      Subsection (1)(a).
             25107          (c) An owner of construction or an original contractor may file a notice of
             25108      commencement with the designated agent within the time prescribed by Subsections (1)(a) and
             25109      (b).
             25110          (d) (i) If duplicate notices of commencement are filed, they shall be combined into one
             25111      notice for each project and any notices filed relate back to the date of the earliest-filed notice of
             25112      commencement for the project.
             25113          (ii) A duplicate notice of commencement that is untimely filed relates back under
             25114      Subsection (1)(d)(i) if the earlier filed notice of commencement is timely filed.
             25115          (iii) Duplicate notices of commencement shall be automatically linked by the designated
             25116      agent.
             25117          (e) The designated agent shall assign each construction project a unique project number

             25118      that:
             25119          (i) identifies each construction project; and
             25120          (ii) can be associated with all notices of commencement, preliminary notices, and
             25121      notices of completion.
             25122          (f) A notice of commencement is effective only as to any labor, service, equipment, and
             25123      material furnished to the construction project that is furnished subsequent to the filing of the
             25124      notice of commencement.
             25125          (2) (a) A notice of commencement shall include the following:
             25126          (i) the name and address of the owner of the project;
             25127          (ii) the name and address of the:
             25128          (A) original contractor; and
             25129          (B) surety providing any payment bond for the project, or if none exists, a statement
             25130      that a payment bond was not required for the work being performed; and
             25131          (iii) (A) the project address if the project can be reasonably identified by an address; or
             25132          (B) the name and general description of the location of the project if the project cannot
             25133      be reasonably identified by an address.
             25134          (b) A notice of commencement may include:
             25135          (i) a general description of the project; or
             25136          (ii) the lot or parcel number, and any subdivision, development, or other project name,
             25137      of the real property upon which the project is to be constructed if the project is subject to
             25138      mechanics' liens.
             25139          (c) A notice of commencement need not include all of the items listed in Subsection
             25140      (2)(a) if:
             25141          (i) a building permit is issued for the project; and
             25142          (ii) all items listed in Subsection (2)(a) that are available on the building permit are
             25143      included in the notice of commencement.
             25144          (3) If a notice of commencement for a construction project is not filed within the time
             25145      set forth in Subsections(1)(a) and (b), the following do not apply:

             25146          (a) Section 38-1-32 ; and
             25147          (b) Section 38-1-33 .
             25148          (4) (a) Unless a person indicates to the division or designated agent that the person
             25149      does not wish to receive a notice under this section, electronic notice of the filing of a notice of
             25150      commencement or alternate notice as prescribed in Subsection (1), shall be provided to:
             25151          (i) all persons who have filed notices of commencement for the project; and
             25152          (ii) all interested persons who have requested notices concerning the project.
             25153          (b) (i) A person to whom notice is required under Subsection (4)(a) is responsible for:
             25154          (A) providing an e-mail address, mailing address, or telefax number to which a notice
             25155      required by Subsection (4)(a) is to be sent; and
             25156          (B) the accuracy of any e-mail address, mailing address, or telefax number to which
             25157      notice is to be sent.
             25158          (ii) The designated agent fulfills the notice requirement of Subsection (4)(a) when it
             25159      sends the notice to the e-mail address, mailing address, or telefax number provided to the
             25160      designated agent whether or not the notice is actually received.
             25161          (5) (a) The burden is upon any person seeking to enforce a notice of commencement to
             25162      verify the accuracy of information in the notice of commencement and prove that the notice of
             25163      commencement is filed timely and meets all of the requirements in this section.
             25164          (b) A substantial inaccuracy in a notice of commencement renders the notice of
             25165      commencement unenforceable.
             25166          (c) A person filing a notice of commencement by alternate filing is responsible for
             25167      verifying and changing any incorrect information in the notice of commencement before the
             25168      expiration of the time period during which the notice is required to be filed.
             25169          (6) At the time a building permit is obtained, each original contractor shall
             25170      conspicuously post at the project site a copy of the building permit obtained for the project.
             25171          Section 507. Section 38-1-39 is amended to read:
             25172           38-1-39. Waiver or impairment of a lien right -- Forms -- Scope.
             25173          (1) As used in this section:

             25174          (a) "Check" means a payment instrument on a depository institution including:
             25175          (i) a check;
             25176          (ii) a draft;
             25177          (iii) an order; or
             25178          (iv) other instrument.
             25179          (b) "Depository institution" is as defined in Section 7-1-103 .
             25180          (c) "Lien claimant" means a person that claims a lien under this chapter.
             25181          (d) "Receives payment" means, in the case of a restrictive endorsement, a payee has
             25182      endorsed a check and the check is presented to and paid by the depository institution on which
             25183      it is drawn.
             25184          (2) Notwithstanding Section 38-1-29 , a written consent given by a lien claimant that
             25185      waives or limits the lien claimant's lien rights is enforceable only if the lien claimant:
             25186          (a) (i) executes a waiver and release that is signed by the lien claimant or the lien
             25187      claimant's authorized agent; or
             25188          (ii) for a restrictive endorsement on a check, includes a restrictive endorsement on a
             25189      check that is:
             25190          (A) signed by the lien claimant or the lien claimant's authorized agent; and
             25191          (B) in substantially the same form set forth in Subsection (4)(d); and
             25192          (b) receives payment of the amount identified in the waiver and release or check that
             25193      includes the restrictive endorsement:
             25194          (i) including payment by a joint payee check; and
             25195          (ii) for a progress payment, only to the extent of the payment.
             25196          (3) (a) Notwithstanding the language of a waiver and release described in Subsection
             25197      (2), Subsection (3)(b) applies if:
             25198          (i) the payment given in exchange for any waiver and release of lien is made by check;
             25199      and
             25200          (ii) the check fails to clear the depository institution on which it is drawn for any reason.
             25201          (b) If the conditions of Subsection (3)(a) are met:

             25202          (i) the waiver and release described in Subsection (3)(a) is null, void, and of no legal
             25203      effect; and
             25204          (ii) the following will not be affected by the lien claimant's execution of the waiver and
             25205      release:
             25206          (A) any lien;
             25207          (B) any lien right;
             25208          (C) any bond right;
             25209          (D) any contract right; or
             25210          (E) any other right to recover payment afforded to the lien claimant in law or equity.
             25211          (4) (a) A waiver and release given by a lien claimant meets the requirements of this
             25212      section if it is in substantially the form provided in this Subsection (4) for the circumstance
             25213      provided in this Subsection (4).
             25214          (b) A waiver and release may be in substantially the following form if the lien claimant is
             25215      required to execute a waiver and release in exchange for or to induce the payment of a progress
             25216      billing:
             25217     
"UTAH CONDITIONAL WAIVER AND RELEASE UPON PROGRESS PAYMENT

             25218      Property Name: _____________________________________________________________
             25219      Property Location: ___________________________________________________________
             25220      Undersigned's Customer: _____________________________________________________
             25221      Invoice/Payment Application Number: __________________________________________
             25222      Payment Amount: ___________________________________________________________
             25223      Payment Period: ____________________________________________________________
             25224          To the extent provided below, this document becomes effective to release and the
             25225      undersigned is considered to waive any notice of lien or right under Utah Code Ann., Title 38,
             25226      Chapter 1, Mechanics' Liens, or any bond right under Utah Code Ann., Title 14, Contractors'
             25227      Bonds, or Section [ 63-56-504 ] 63G-6-505 related to payment rights the undersigned has on the
             25228      above described Property once:
             25229          (1) the undersigned endorses a check in the above referenced Payment Amount payable

             25230      to the undersigned; and
             25231          (2) the check is paid by the depository institution on which it is drawn.
             25232          This waiver and release applies to a progress payment for the work, materials,
             25233      equipment, or a combination of work, materials, and equipment furnished by the undersigned to
             25234      the Property or to the Undersigned's Customer which are the subject of the Invoice or Payment
             25235      Application, but only to the extent of the Payment Amount. This waiver and release does not
             25236      apply to any retention withheld; any items, modifications, or changes pending approval;
             25237      disputed items and claims; or items furnished or invoiced after the Payment Period.
             25238          The undersigned warrants that the undersigned either has already paid or will use the
             25239      money the undersigned receives from this progress payment promptly to pay in full all the
             25240      undersigned's laborers, subcontractors, materialmen, and suppliers for all work, materials,
             25241      equipment, or combination of work, materials, and equipment that are the subject of this waiver
             25242      and release.
             25243      Dated: ________________________
             25244      ___________________________________________________________(Company Name)
             25245      _____________________________________________________By:__________________
             25246      _____________________________________________________Its:__________________"
             25247          (c) A waiver and release may be in substantially the following form if the lien claimant is
             25248      required to execute a waiver and release in exchange for or to induce the payment of a final
             25249      billing:
             25250     
"UTAH WAIVER AND RELEASE UPON FINAL PAYMENT

             25251      Property Name: ____________________________________________________________
             25252      Property Location: __________________________________________________________
             25253      Undersigned's Customer: _____________________________________________________
             25254      Invoice/Payment Application Number: __________________________________________
             25255      Payment Amount: ___________________________________________________________
             25256     
             25257          To the extent provided below, this document becomes effective to release and the

             25258      undersigned is considered to waive any notice of lien or right under Utah Code Ann., Title 38,
             25259      Chapter 1, Mechanics' Liens, or any bond right under Utah Code Ann., Title 14, Contractors'
             25260      Bonds, or Section [ 63-56-504 ] 63G-6-505 related to payment rights the undersigned has on the
             25261      above described Property once:
             25262          (1) the undersigned endorses a check in the above referenced Payment Amount payable
             25263      to the undersigned; and
             25264          (2) the check is paid by the depository institution on which it is drawn.
             25265          This waiver and release applies to the final payment for the work, materials, equipment,
             25266      or combination of work, materials, and equipment furnished by the undersigned to the Property
             25267      or to the Undersigned's Customer.
             25268          The undersigned warrants that the undersigned either has already paid or will use the
             25269      money the undersigned receives from the final payment promptly to pay in full all the
             25270      undersigned's laborers, subcontractors, materialmen, and suppliers for all work, materials,
             25271      equipment, or combination of work, materials, and equipment that are the subject of this waiver
             25272      and release.
             25273      Dated: ________________________
             25274      ___________________________________________________________(Company Name)
             25275      _____________________________________________________By:__________________
             25276      _____________________________________________________Its:__________________"
             25277          (d) A restrictive endorsement placed on a check to effectuate a waiver and release
             25278      described in this Subsection (4) meets the requirements of this section if it is in substantially the
             25279      following form:
             25280          "This check is a progress/ final payment for property described on this check sufficient
             25281      for identification. Endorsement of this check is an acknowledgment by the endorser that the
             25282      waiver and release to which the payment applies is effective to the extent provided in Utah
             25283      Code Ann. Subsection 38-1-39 (4)(b) or (c) respectively."
             25284          (e) (i) If using a restrictive endorsement under Subsection (4)(d), the person preparing
             25285      the check shall indicate whether the check is for a progress payment or a final payment by

             25286      circling the word "progress" if the check is for a progress payment, or the word "final" if the
             25287      check is for a final payment.
             25288          (ii) If a restrictive endorsement does not indicate whether the check is for a progress
             25289      payment or a final payment, it is considered to be for a progress payment.
             25290          (5) (a) If the conditions of Subsection (5)(b) are met, this section does not affect the
             25291      enforcement of:
             25292          (i) an accord and satisfaction regarding a bona fide dispute; or
             25293          (ii) an agreement made in settlement of an action pending in any court or arbitration.
             25294          (b) Pursuant to Subsection (5)(a), this section does not affect enforcement of an accord
             25295      and satisfaction or settlement described in Subsection (5)(a) if the accord and satisfaction or
             25296      settlement:
             25297          (i) is in a writing signed by the lien claimant; and
             25298          (ii) specifically references the lien rights waived or impaired.
             25299          Section 508. Section 38-11-105 is amended to read:
             25300           38-11-105. Procedures established by rule.
             25301          In compliance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             25302      Procedures Act, the division shall establish procedures by rule by which claims for
             25303      compensation from the fund and requests for certificates of compliance shall be adjudicated and
             25304      by which assessments shall be collected.
             25305          Section 509. Section 38-11-108 is amended to read:
             25306           38-11-108. Notification of rights under chapter.
             25307          (1) Beginning July 1, 1995, the original contractor or real estate developer shall state in
             25308      the written contract with the owner what actions are necessary for the owner to be protected
             25309      under Section 38-11-107 from the maintaining of a mechanic's lien or other civil action against
             25310      the owner or the owner-occupied residence to recover monies owed for qualified services.
             25311          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             25312      Administrative Rulemaking Act, the division may issue rules providing for the form and content
             25313      of the information required by Subsection (1).

             25314          Section 510. Section 38-11-110 is amended to read:
             25315           38-11-110. Issuance of certificates of compliance.
             25316          The director shall have authority to issue or deny a certificate of compliance only after
             25317      determining through an informal proceeding, as set forth in [Title 63, Chapter 46b] Title 63G,
             25318      Chapter 4, Administrative Procedures Act, that the owner is in compliance with Subsections
             25319      38-11-204 (4)(a) and (4)(b).
             25320          Section 511. Section 38-11-201 is amended to read:
             25321           38-11-201. Residence Lien Recovery Fund.
             25322          (1) There is created a restricted special revenue fund called the "Residence Lien
             25323      Recovery Fund."
             25324          (2) (a) The fund consists of all amounts collected by the division in accordance with
             25325      Section 38-11-202 .
             25326          (b) (i) The division shall deposit the funds in an account with the state treasurer.
             25327          (ii) The division shall record the funds in the Residence Lien Recovery Fund.
             25328          (c) The fund shall earn interest.
             25329          (3) The division shall employ personnel and resources necessary to administer the fund
             25330      and shall use fund monies in accordance with Sections 38-11-203 and 38-11-204 and to pay the
             25331      costs charged to the fund by the attorney general.
             25332          (4) Costs incurred by the division for administering the fund shall be paid out of fund
             25333      monies.
             25334          (5) The Division of Finance shall report annually to the Legislature, the division, and the
             25335      board. The report shall state:
             25336          (a) amounts received by the fund;
             25337          (b) disbursements from the fund;
             25338          (c) interest earned and credited to the fund; and
             25339          (d) the fund balance.
             25340          (6) (a) For purposes of establishing and assessing regulatory fees under Subsection
             25341      [ 63-38-3.2 ] 63J-1-303 (5), the provisions of this chapter are considered a new program for fiscal

             25342      year 1995-96.
             25343          (b) The department shall submit its fee schedule to the Legislature for its approval at
             25344      the 1996 Annual General Session.
             25345          Section 512. Section 38-11-202 is amended to read:
             25346           38-11-202. Payments to the fund.
             25347          The Residence Lien Recovery Fund shall be supported solely from:
             25348          (1) initial and special assessments collected by the division from licensed contractors
             25349      registered as qualified beneficiaries in accordance with Subsections 38-11-301 (1) and (2) and
             25350      Section 38-11-206 ;
             25351          (2) initial and special assessments collected by the division from other qualified
             25352      beneficiaries registering with the division in accordance with Subsection 38-11-301 (3) and
             25353      Section 38-11-206 ;
             25354          (3) fees determined by the division under Section [ 63-38-3.2 ] 63J-1-303 collected from
             25355      laborers under Subsection 38-11-204 (8) when the laborers obtain a recovery from the fund;
             25356          (4) amounts collected by subrogation under Section 38-11-205 on behalf of the fund
             25357      following a payment from the fund;
             25358          (5) application fees determined by the division under Section [ 63-38-3.2 ] 63J-1-303
             25359      collected from:
             25360          (a) qualified beneficiaries or laborers under Subsection 38-11-204 (1)(b) when qualified
             25361      beneficiaries or laborers make a claim against the fund; or
             25362          (b) owners or agents of the owners seeking to obtain a certificate of compliance for the
             25363      owner;
             25364          (6) registration fees determined by the division under Section [ 63-38-3.2 ] 63J-1-303
             25365      collected from other qualified beneficiaries registering with the department in accordance with
             25366      Subsection 38-11-301 (3)(a)(iii);
             25367          (7) reinstatement fees determined by the division under Section [ 63-38-3.2 ] 63J-1-303
             25368      collected from registrants in accordance with Subsection 38-11-302 (5)(b);
             25369          (8) civil fines authorized under Subsection 38-11-205 (2) collected by the attorney

             25370      general for failure to reimburse the fund; and
             25371          (9) any interest earned by the fund.
             25372          Section 513. Section 38-11-204 is amended to read:
             25373           38-11-204. Claims against the fund -- Requirement to make a claim --
             25374      Qualifications to receive compensation -- Qualifications to receive a certificate of
             25375      compliance.
             25376          (1) To claim recovery from the fund a person shall:
             25377          (a) meet the requirements of either Subsection (4) or (7);
             25378          (b) pay an application fee determined by the division under Section [ 63-38-3.2 ]
             25379      63J-1-303 ; and
             25380          (c) file with the division a completed application on a form provided by the division
             25381      accompanied by supporting documents establishing:
             25382          (i) that the person meets the requirements of either Subsection (4) or (7);
             25383          (ii) that the person was a qualified beneficiary or laborer during the construction on the
             25384      owner-occupied residence; and
             25385          (iii) the basis for the claim.
             25386          (2) To recover from the fund, the application required by Subsection (1) shall be filed
             25387      no later than one year:
             25388          (a) from the date the judgment required by Subsection (4)(d) is entered;
             25389          (b) from the date the nonpaying party filed bankruptcy, if the claimant is precluded from
             25390      obtaining a judgment or from satisfying the requirements of Subsection (4)(d) because the
             25391      nonpaying party filed bankruptcy within one year after the entry of judgment; or
             25392          (c) from the date the laborer, trying to recover from the fund, completed the laborer's
             25393      qualified services.
             25394          (3) To obtain a certificate of compliance an owner or agent of the owner shall establish
             25395      with the division that the owner meets the requirements of Subsections (4)(a) and (4)(b).
             25396          (4) To recover from the fund, regardless of whether the residence is occupied by the
             25397      owner, a subsequent owner, or the owner or subsequent owner's tenant or lessee, a qualified

             25398      beneficiary shall establish that:
             25399          (a) (i) the owner of the owner-occupied residence or the owner's agent entered into a
             25400      written contract with an original contractor licensed or exempt from licensure under Title 58,
             25401      Chapter 55, Utah Construction Trades Licensing Act:
             25402          (A) for the performance of qualified services;
             25403          (B) to obtain the performance of qualified services by others; or
             25404          (C) for the supervision of the performance by others of qualified services in
             25405      construction on that residence;
             25406          (ii) the owner of the owner-occupied residence or the owner's agent entered into a
             25407      written contract with a real estate developer for the purchase of an owner-occupied residence;
             25408      or
             25409          (iii) the owner of the owner-occupied residence or the owner's agent entered into a
             25410      written contract with a factory built housing retailer for the purchase of an owner-occupied
             25411      residence;
             25412          (b) the owner has paid in full the original contractor, licensed or exempt from licensure
             25413      under Title 58, Chapter 55, Utah Construction Trades Licensing Act, real estate developer, or
             25414      factory built housing retailer under Subsection (4)(a) with whom the owner has a written
             25415      contract in accordance with the written contract and any amendments to the contract;
             25416          (c) (i) the original contractor, licensed or exempt from licensure under Title 58, Chapter
             25417      55, Utah Construction Trades Licensing Act, the real estate developer, or the factory built
             25418      housing retailer subsequently failed to pay a qualified beneficiary who is entitled to payment
             25419      under an agreement with that original contractor or real estate developer licensed or exempt
             25420      from licensure under Title 58, Chapter 55, Utah Construction Trades Licensing Act, for services
             25421      performed or materials supplied by the qualified beneficiary;
             25422          (ii) a subcontractor who contracts with the original contractor, licensed or exempt from
             25423      licensure under Title 58, Chapter 55, Utah Construction Trades Licensing Act, the real estate
             25424      developer, or the factory built housing retailer failed to pay a qualified beneficiary who is
             25425      entitled to payment under an agreement with that subcontractor or supplier; or

             25426          (iii) a subcontractor who contracts with a subcontractor or supplier failed to pay a
             25427      qualified beneficiary who is entitled to payment under an agreement with that subcontractor or
             25428      supplier;
             25429          (d) (i) unless precluded from doing so by the nonpaying party's bankruptcy filing within
             25430      the applicable time, the qualified beneficiary filed an action against the nonpaying party to
             25431      recover monies owed to the qualified beneficiary within the earlier of:
             25432          (A) 180 days from the date the qualified beneficiary filed a notice of claim under
             25433      Section 38-1-7 ; or
             25434          (B) 270 days from the completion of the original contract pursuant to Subsection
             25435      38-1-7 (1);
             25436          (ii) the qualified beneficiary has obtained a judgment against the nonpaying party who
             25437      failed to pay the qualified beneficiary under an agreement to provide qualified services for
             25438      construction of that owner-occupied residence;
             25439          (iii) (A) the qualified beneficiary has:
             25440          (I) obtained from a court of competent jurisdiction the issuance of an order requiring
             25441      the judgment debtor, or if a corporation any officer of the corporation, to appear before the
             25442      court at a specified time and place to answer concerning the debtor's or corporation's property;
             25443          (II) received return of service of the order from a person qualified to serve documents
             25444      under the Utah Rules of Civil Procedure, Rule 4(b); and
             25445          (III) made reasonable efforts to obtain asset information from the supplemental
             25446      proceedings; and
             25447          (B) if assets subject to execution are discovered as a result of the order required under
             25448      Subsection (4)(d)(iii)(A) or for any other reason, to obtain the issuance of a writ of execution
             25449      from a court of competent jurisdiction; or
             25450          (iv) the qualified beneficiary timely filed a proof of claim where permitted in the
             25451      bankruptcy action, if the nonpaying party has filed bankruptcy;
             25452          (e) the qualified beneficiary is not entitled to reimbursement from any other person; and
             25453          (f) the qualified beneficiary provided qualified services to a contractor, licensed or

             25454      exempt from licensure under Title 58, Chapter 55, Utah Construction Trades Licensing Act.
             25455          (5) The requirements of Subsections (4)(d) (ii) and (iii) need not be met if the qualified
             25456      beneficiary is prevented from compliance because the nonpaying party files bankruptcy.
             25457          (6) To recover from the fund a laborer shall:
             25458          (a) establish that the laborer has not been paid wages due for the work performed at the
             25459      site of a construction on an owner-occupied residence; and
             25460          (b) provide any supporting documents or information required by rule by the division.
             25461          (7) A fee determined by the division under Section [ 63-38-3.2 ] 63J-1-303 shall be
             25462      deducted from any recovery from the fund received by a laborer.
             25463          (8) The requirements of Subsections (4)(a) and (4)(b) may be satisfied if an owner or
             25464      agent of the owner establishes to the satisfaction of the director that the owner of the
             25465      owner-occupied residence or the owner's agent entered into a written contract with an original
             25466      contractor who:
             25467          (a) was a business entity that was not licensed under Title 58, Chapter 55, Utah
             25468      Construction Trades Licensing Act, but was solely or partly owned by an individual who was
             25469      licensed under Title 58, Chapter 55, Utah Construction Trades Licensing Act; or
             25470          (b) was a natural person who was not licensed under Title 58, Chapter 55, Utah
             25471      Construction Trades Licensing Act, but who was the sole or partial owner and qualifier of a
             25472      business entity that was licensed under Title 58, Chapter 55, Utah Construction Trades
             25473      Licensing Act.
             25474          (9) The director shall have equitable power to determine if the requirements of
             25475      Subsections (4)(a) and (4)(b) have been met, but any decision by the director under this chapter
             25476      shall not alter or have any effect on any other decision by the division under Title 58,
             25477      Occupations and Professions.
             25478          Section 514. Section 38-11-206 is amended to read:
             25479           38-11-206. Limitations on fund balance -- Payment of special assessments.
             25480          (1) (a) If on December 31 of any year the balance in the fund is less than $1,500,000,
             25481      the division shall make a special assessment against all qualified beneficiaries in an amount that

             25482      will restore the unencumbered fund balance to not less than $2,000,000 or more than
             25483      $2,500,000.
             25484          (b) The amount of the special assessment shall be determined by the division under
             25485      Subsection [ 63-38-3.2 ] 63J-1-303 (5) after consultation with the board.
             25486          (2) Special assessments made under this section shall be due and payable on May 1
             25487      following assessment.
             25488          (3) The fund balance limitations set forth in Subsection (1)(a) shall be used by the
             25489      division only for the purpose of determining the amount of any special assessment and do not
             25490      prohibit the fund balance from exceeding $2,500,000 or falling below $2,000,000.
             25491          Section 515. Section 38-11-207 is amended to read:
             25492           38-11-207. Reimbursement to the fund.
             25493          (1) If the director disburses monies from the fund as a result of a person licensed under
             25494      Title 58, Chapter 55, Utah Construction Trades Licensing Act, or a qualified beneficiary failing
             25495      to pay qualified beneficiaries:
             25496          (a) the division shall issue a notice of the disbursement from the fund and the obligation
             25497      to reimburse the fund to the licensee or qualified beneficiary; and
             25498          (b) the licensee or qualified beneficiary shall reimburse the fund within 20 days from the
             25499      issuance of the notice required by Subsection (1)(a).
             25500          (2) The notice required by Subsection (1)(a) shall meet the requirements established by
             25501      rule by the division in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             25502      Administrative Rulemaking Act.
             25503          (3) (a) A finding of fact in an administrative action that a payment of any amount has
             25504      been made from the fund in settlement of a claim arising from the act, representation,
             25505      transaction, or conduct of a person licensed under Title 58, Chapter 55, Utah Construction
             25506      Trades Licensing Act, in violation of Section 58-55-603 shall result in the immediate suspension
             25507      of that person's license without further compliance with [Title 63, Chapter 46b] Title 63G,
             25508      Chapter 4, Administrative Procedures Act.
             25509          (b) The finding of fact for Subsection (3)(a) may be made in the same administrative

             25510      action as the related claim and may be included in the findings required by Section 38-11-203 .
             25511          (c) The suspension required by Subsection (3)(a) shall remain in effect until the person
             25512      applies for reinstatement and is issued a license in accordance with Sections 58-1-308 and
             25513      58-55-303 .
             25514          Section 516. Section 38-11-301 is amended to read:
             25515           38-11-301. Registration as a qualified beneficiary -- Initial regular assessment --
             25516      Affidavit.
             25517          (1) A person licensed as of July 1, 1995, as a contractor under the provisions of Title
             25518      58, Chapter 55, Utah Construction Trades Licensing Act, in license classifications that regularly
             25519      engage in providing qualified services shall be automatically registered as a qualified beneficiary
             25520      upon payment of the initial assessment.
             25521          (2) A person applying for licensure as a contractor after July 1, 1995, in license
             25522      classifications that regularly engage in providing qualified services shall be automatically
             25523      registered as a qualified beneficiary upon issuance of a license and payment of the initial
             25524      assessment.
             25525          (3) (a) After July 1, 1995, any person providing qualified services as other than a
             25526      contractor as provided in Subsection (1) or any person exempt from licensure under the
             25527      provisions of Title 58, Chapter 55, Utah Construction Trades Licensing Act, may register as a
             25528      qualified beneficiary by:
             25529          (i) submitting an application in a form prescribed by the division;
             25530          (ii) demonstrating registration with the Division of Corporations and Commercial Code
             25531      as required by state law;
             25532          (iii) paying a registration fee determined by the division under Section [ 63-38-3.2 ]
             25533      63J-1-303 ; and
             25534          (iv) paying the initial assessment established under Subsection (4), and any special
             25535      assessment determined by the division under Subsection 38-11-206 (1).
             25536          (b) A person who does not register under Subsection (1), (2), or (3)(a) shall be
             25537      prohibited from recovering under the fund as a qualified beneficiary for work performed as

             25538      qualified services while not registered with the fund.
             25539          (4) (a) An applicant shall pay an initial assessment determined by the division under
             25540      Section [ 63-38-3.2 ] 63J-1-303 .
             25541          (b) The initial assessment to qualified registrants under Subsection (1) shall be made not
             25542      later than July 15, 1995, and shall be paid no later than November 1, 1995.
             25543          (c) The initial assessment to qualified registrants under Subsections (2) and (3) shall be
             25544      paid at the time of application for license or registration, however, beginning on May 1, 1996,
             25545      only one initial assessment or special assessments thereafter shall be required for persons having
             25546      multiple licenses under this section.
             25547          (5) A person shall be considered to have been registered as a qualified beneficiary on
             25548      January 1, 1995, for purposes of meeting the requirements of Subsection 38-11-204 (1)(c)(ii) if
             25549      the person:
             25550          (a) (i) is licensed on or before July 1, 1995, as a contractor under the provisions of Title
             25551      58, Chapter 55, Utah Construction Trades Licensing Act, in license classifications that regularly
             25552      engage in providing qualified services; or
             25553          (ii) provides qualified services after July 1, 1995, as other than a contractor as provided
             25554      in Subsection (5)(a)(i) or is exempt from licensure under the provisions of Title 58, Chapter 55,
             25555      Utah Construction Trades Licensing Act; and
             25556          (b) registers as a qualified beneficiary under Subsection (1) or (3) on or before
             25557      November 1, 1995.
             25558          Section 517. Section 38-11-302 is amended to read:
             25559           38-11-302. Effective date and term of registration -- Penalty for failure to pay
             25560      assessments -- Reinstatement.
             25561          (1) (a) A registration as a qualified beneficiary under this chapter is effective on the date
             25562      the division receives the initial assessment of the qualified beneficiary.
             25563          (b) A registrant shall be required to renew [his] the registrant's registration upon
             25564      imposition of a special assessment under Subsection 38-11-206 (1).
             25565          (2) A registration automatically expires if a registrant fails to renew [his] the registrant's

             25566      registration as required under Subsection (1).
             25567          (3) The division shall notify a qualified beneficiary in accordance with procedures
             25568      established by rule when renewal of registration is required in connection with a special
             25569      assessment.
             25570          (4) The license renewal notice to a contractor shall notify the licensee that failure to
             25571      renew [his] the license will result in automatic expiration of [his] the licensee's registration as a
             25572      qualified beneficiary and of the limitations set forth in Subsection (6) on qualified beneficiaries
             25573      whose registration has expired to make a claim upon the fund.
             25574          (5) Registration may be reinstated by:
             25575          (a) submitting an application for reinstatement in a form prescribed by the division;
             25576          (b) paying a reinstatement fee determined by the division under Section [ 63-38-3.2 ]
             25577      63J-1-303 ; and
             25578          (c) paying all unpaid assessments that were assessed during the period of the person's
             25579      registration and all assessments made upon qualified beneficiaries during the period the
             25580      applicant's registration was expired.
             25581          (6) (a) A qualified beneficiary whose registration expires loses all rights to make a claim
             25582      upon the fund or receive compensation from the fund resulting from providing qualified service
             25583      during the period of expiration.
             25584          (b) Except as provided by Section 58-55-401 , a qualified beneficiary whose registration
             25585      expires may make a claim upon the fund or receive compensation from the fund for qualified
             25586      services provided during the period the qualified beneficiary was part of the fund.
             25587          Section 518. Section 39-5-2 is amended to read:
             25588           39-5-2. Form of compact.
             25589          The compact shall be in substantially the following form:
             25590          The contracting states solemnly agree:
             25591     
             25592     
Article 1

             25593     

             25594     
PURPOSE OF ACT -- UTILIZATION OF RESOURCES --

             25595     
DIRECTORS ACT AS COMMITTEE

             25596     
             25597          The purpose of this compact is to provide mutual aid among the States in meeting any
             25598      emergency or disaster as defined in Section [ 63-5-2 ] 63K-3-102 , from enemy attack or other
             25599      cause, natural or otherwise, including sabotage and subversive acts and direct attacks by bombs,
             25600      shellfire, and atomic, radiological, chemical, bacteriological means, and other weapons. The
             25601      prompt, full, and effective utilization of the resources of the respective States, including
             25602      resources available from the United States Government or any other source, are essential to the
             25603      safety, care, and welfare of the people in the event of an emergency, and any other resources,
             25604      including personnel, equipment, or supplies, shall be incorporated into a plan or plans of mutual
             25605      aid to be developed among the Civil Defense agencies or similar bodies of the States that are
             25606      parties to this compact. The Directors of Civil Defense of all party States shall constitute a
             25607      committee to formulate plans and take all necessary steps for the implementation of this
             25608      compact.
             25609     
Article 2

             25610     
CIVIL DEFENSE PLANS -- CONSULTATIONS --

             25611     
UNIFORMITY OF ACTION

             25612          It is the duty of each party State to formulate civil defense plans and programs for
             25613      application within each State. There shall be frequent consultation between the representatives
             25614      of the States and with the United States Government and the free exchange of information and
             25615      plans, including inventories of any materials and equipment available for civil defense. In
             25616      carrying out these civil defense plans and programs, the party States shall, if possible, provide
             25617      and follow uniform standards, practices, and rules and regulations including:
             25618          (1) insignia, arm bands, and other distinctive articles to designate and distinguish the
             25619      different civil defense services;
             25620          (2) blackouts and practice blackouts, air raid drills, mobilization of civil defense forces,
             25621      and other tests and exercises;

             25622          (3) warnings and signals for drills or attacks and the mechanical devices to be used in
             25623      connection with them;
             25624          (4) the effective screening or extinguishing of all lights, lighting devices, and appliances;
             25625          (5) shutting off water mains, gas mains, electric power connections, and the suspension
             25626      of all other utility services;
             25627          (6) all materials or equipment used or to be used for civil defense purposes in order to
             25628      assure that the materials and equipment will be easily and freely interchangeable when used in or
             25629      by any other party State;
             25630          (7) the conduct of civilians and the movement and cessation of movement of
             25631      pedestrians and vehicular traffic, prior, during, and subsequent to drills or attacks;
             25632          (8) the safety of public meetings or gatherings; and
             25633          (9) mobile support units.
             25634     
Article 3

             25635     
DUTIES OF MEMBER STATES

             25636          Any party State requested to render mutual aid shall take any action necessary to
             25637      provide and make available the resources covered by this compact in accordance with its terms;
             25638      provided that it is understood that the State rendering aid may withhold resources to the extent
             25639      necessary to provide reasonable protection for itself. Each party State shall extend to the civil
             25640      defense forces of any other party State, while operating within its State limits under the terms
             25641      and conditions of this compact, the same powers, except that of arrest unless specifically
             25642      authorized by the receiving State, duties, rights, privileges, and immunities as if they were
             25643      performing their duties in the State in which normally employed or rendering services. Civil
             25644      defense forces will continue under the command and control of their regular leaders but the
             25645      organizational units will come under the operational control of the civil defense authorities of
             25646      the State receiving assistance.
             25647     
Article 4

             25648     
EFFECT OF STATE LICENSE, CERTIFICATE

             25649     
OR PERMIT IN OTHER STATES

             25650          Any person holding a license, certificate, or other permit issued by any State evidencing
             25651      the meeting of qualifications for professional, mechanical, or other skills, may render aid
             25652      involving the skill in any party State to meet an emergency or disaster and that State shall
             25653      recognize the license, certificate, or other permit as if issued in the State in which aid is
             25654      rendered.
             25655     
Article 5

             25656     
RESTRICTION ON LIABILITY

             25657          No party State or its officers or employees rendering aid in another State pursuant to
             25658      this compact shall be liable on account of any act or omission in good faith on the part of its
             25659      forces while engaged, or on account of the maintenance or use of any equipment or supplies in
             25660      connection with giving aid.
             25661     
Article 6

             25662     
BASIC CONSIDERATIONS AND AUXILIARY ACTION

             25663          (1) Since it is probable that the pattern and detail of the machinery for mutual aid
             25664      among two or more States may differ from that appropriate among other States party to this
             25665      compact, this instrument contains elements of a broad base common to all States, and nothing
             25666      contained in it shall preclude any State from entering into supplementary agreements with
             25667      another State or States. Any supplementary agreements may comprehend, but shall not be
             25668      limited to provisions for evacuation and reception of injured and other persons, and the
             25669      exchange of medical, fire, police, public utility, reconnaissance, welfare, transportation and
             25670      communications personnel, equipment, and supplies.
             25671          (2) Any supplementary agreement made to implement this Article may not be construed
             25672      to abridge, impair, or supersede any other provision of this compact or any obligation
             25673      undertaken by a State pursuant to the terms of this compact. A supplementary agreement
             25674      implementing this Article may modify, expand, or add to any obligation among the parties to the
             25675      supplementary agreement.
             25676     
Article 7

             25677     
COMPENSATION AND BENEFITS

             25678          Each party State shall provide for the payment of compensation and death benefits to
             25679      injured members of the civil defense forces of that State and the representatives of deceased
             25680      members of the forces of that State in case the members sustain injuries or are killed while
             25681      rendering aid pursuant to this compact, in the same manner and on the same terms as if the
             25682      injury or death were sustained within that State.
             25683     
Article 8

             25684     
CONTRIBUTIONS AND REIMBURSEMENTS

             25685          Any party State rendering aid in another State pursuant to this compact shall be
             25686      reimbursed by the party State receiving aid for any loss or damage to or expense incurred in the
             25687      operation of any equipment answering a request for aid, and for the cost incurred in connection
             25688      with the requests; provided that any aiding party State may assume in whole or in part any loss,
             25689      damage, expense, or other cost, or may loan any equipment or donate any services to the
             25690      receiving party State without charge or cost; and provided further that any two or more party
             25691      States may enter into supplementary agreements establishing a different allocation of costs as
             25692      among those States. The United States Government may relieve the party States receiving aid
             25693      from any liability and reimburse the party State supplying civil defense forces for the
             25694      compensation paid to and the transportation, subsistence, and maintenance expenses of its
             25695      forces during the time of the rendition of aid or assistance outside the State and may also pay
             25696      fair and reasonable compensation for the use or utilization of the supplies, materials, equipment,
             25697      or facilities so utilized or consumed.
             25698     
Article 9

             25699     
PLANS FOR EVACUATION AND RECEPTION OF POPULATIONS

             25700          Plans for the orderly evacuation and reception of the civilian population as the result of
             25701      an emergency or disaster shall be worked out from time to time between representatives of the
             25702      party States and the various local civil defense areas. Any plans shall include the manner of
             25703      transporting evacuees, the number of evacuees to be received in different areas, the manner in
             25704      which food, clothing, housing, and medical care will be provided, the registration of the
             25705      evacuees, the providing of facilities for the notification of relatives or friends and the forwarding

             25706      of evacuees to other areas or the bringing in of additional materials, supplies, and all other
             25707      relevant factors. Any plans shall provide that the party State receiving evacuees shall be
             25708      reimbursed generally for the out-of-pocket expenses incurred in receiving and caring for the
             25709      evacuees, for expenditures for transportation, food, clothing, medicines and medical care, and
             25710      like items. Any expenditures shall be reimbursed by the party State of which the evacuees are
             25711      residents, or by the United States Government under plans approved by it. After the
             25712      termination of the emergency or disaster, the party State of which the evacuees are residents
             25713      shall assume the responsibility for the ultimate support or repatriation of the evacuees.
             25714     
Article 10

             25715     
MEMBER STATES

             25716          This compact shall be available to any state of the United States and the District of
             25717      Columbia.
             25718     
Article 11

             25719     
COMMITTEE ACTION AND REQUESTS

             25720          The committee established pursuant to Article 1 of this compact may request the Civil
             25721      Defense Agency of the United States Government to act as an informational and coordinating
             25722      body under this compact, and representatives of that agency of the United States Government
             25723      may attend meetings of the committee.
             25724     
Article 12

             25725     
WHEN COMPACT EFFECTIVE

             25726          This compact shall become operative immediately upon its ratification by any of the
             25727      States and Territories enumerated in Article 10 of this compact as between it and the State of
             25728      Utah and any other of the States or Territories ratifying it and shall be subject to approval by
             25729      Congress unless prior Congressional approval has been given. Duly authenticated copies of this
             25730      compact and of any supplementary agreements entered into shall, at the time of their approval,
             25731      be deposited with each of the party States and with the Civil Defense Agency and other
             25732      appropriate agencies of the United States Government.
             25733     
Article 13

             25734     
DURATION OF COMPACT

             25735          This compact shall continue in force and remain binding on each party State until the
             25736      Legislature or the Governor of the party State takes action to withdraw from it. Any action to
             25737      withdraw shall not be effective until 30 days after notice of the action has been sent by the
             25738      Governor of the party State desiring to withdraw to the Governors of all other party States.
             25739     
Article 14

             25740     
CONSTRUCTION OF COMPACT -- CONSTITUTIONALITY

             25741          This compact shall be construed to effectuate the purposes stated in Article 1. If any
             25742      provision of this compact is declared unconstitutional, or the applicability to any person or
             25743      circumstance is held invalid, the constitutionality of the remainder of this compact and the
             25744      applicability to other persons and circumstances shall not be affected.
             25745     
Article 15

             25746     
SCOPE OF COMPACT

             25747          (1) In addition to the situations in Article 1, this compact shall apply to:
             25748          (a) searches for and rescue of persons who are lost, marooned, or otherwise in danger;
             25749          (b) actions useful in coping with any disasters or designed to increase the capability to
             25750      cope with any disasters;
             25751          (c) incidents, or the threat of incidents, which endanger the health or safety of the public
             25752      and which require the use of special equipment, trained personnel, or personnel in larger
             25753      numbers than are locally available in order to reduce, counteract, or remove the danger;
             25754          (d) giving and receiving aid between political subdivisions of party States; and
             25755          (e) exercises, drills, or other training or practice activities designed to aid personnel to
             25756      prepare for, cope with, or prevent any disaster or other emergency to which this compact
             25757      applies.
             25758          (2) Except as expressly limited by this compact or a supplementary agreement, any aid
             25759      authorized by this compact or a supplementary agreement may be furnished by any agency of a
             25760      party State, a political subdivision of the State, or by a joint agency of any two or more party
             25761      States or of their subdivisions. Any joint agency providing aid shall be entitled to

             25762      reimbursement to the same extent and in the same manner as a state. The personnel of a joint
             25763      agency, when rendering aid under this compact shall have the same rights, authority, and
             25764      immunity as personnel of party States.
             25765          (3) Nothing in this Article shall be construed to exclude from coverage under Articles 1
             25766      through 14 of this compact any matter which, in the absence of this Article, could reasonably be
             25767      construed to be covered.
             25768          Section 519. Section 39-7-119 is amended to read:
             25769           39-7-119. Rulemaking authority.
             25770          The Adjutant General may make rules in accordance with [Title 63, Chapter 46a] Title
             25771      63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this chapter.
             25772          Section 520. Section 40-2-1.1 is amended to read:
             25773           40-2-1.1. Rulemaking authority.
             25774          In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             25775      Rulemaking Act, the Labor Commission may make rules necessary to implement this chapter.
             25776          Section 521. Section 40-2-15 is amended to read:
             25777           40-2-15. Certification requirements -- Fees.
             25778          (1) The Labor Commission shall collect a fee for:
             25779          (a) certification tests; or
             25780          (b) sections of the test that must be retaken.
             25781          (2) (a) The Labor Commission shall establish fees by following the procedures and
             25782      requirements of Section [ 63-38-3.2 ] 63J-1-303 .
             25783          (b) Notwithstanding Subsection [ 63-38-3.2 ] 63J-1-303 (2)(e), the Labor Commission
             25784      shall retain the fees as dedicated credits and may only use the fees to administer the certification
             25785      test.
             25786          (3) An applicant who fails any section of the certification test may retake that section of
             25787      the test.
             25788          (4) (a) An applicant who wishes to obtain a mine foreman certificate shall have at least
             25789      four years varied underground coal mining experience, of which:

             25790          (i) two years' experience may be credited to a mining engineering graduate of an
             25791      approved four-year college; or
             25792          (ii) one year's experience may be credited to a graduate of a two-year course in mining
             25793      technology.
             25794          (b) (i) An applicant who wishes to obtain a surface foreman certificate shall have at
             25795      least three years of varied surface experience.
             25796          (ii) The Labor Commission may grant a surface foreman certificate applicant credit for
             25797      surface experience in any other industry that has substantially equivalent surface facilities.
             25798          (c) An applicant who wishes to obtain a fire boss certificate shall have at least two years
             25799      of underground coal mining experience, of which:
             25800          (i) one year's experience may be credited to a mining engineering graduate of an
             25801      approved four-year college; or
             25802          (ii) six months' experience may be credited to a graduate of a two-year course in mining
             25803      technology.
             25804          (d) An applicant who wishes to obtain an underground mine electrician certificate shall
             25805      have at least one year of varied electrical experience as specified in 30 C.F.R. Sec. 75.153.
             25806          (e) An applicant who wishes to obtain a surface mine electrician certificate shall have at
             25807      least one year of varied surface electrical experience as specified in 30 C.F.R. Sec. 77.103.
             25808          (5) A certificate issued under Section 40-2-14 and this section shall expire if the
             25809      certificate holder ceases to work in the mining industry or a mine related industry for more than
             25810      five consecutive years.
             25811          Section 522. Section 40-2-16 is amended to read:
             25812           40-2-16. Necessity of certificate -- Temporary certificates -- Surface foreman
             25813      certificate -- Fee -- Employment of uncertified persons prohibited.
             25814          (1) A person may not work in any occupation referred to in Section 40-2-15 unless
             25815      granted a certificate by the Labor Commission.
             25816          (2) (a) (i) The Labor Commission may issue a temporary mine foreman certificate or a
             25817      temporary surface foreman certificate to an applicant who is:

             25818          (A) recommended by a mine; and
             25819          (B) interviewed and found competent by two panel members.
             25820          (ii) A certificate issued under Subsection (2)(a)(i) shall remain in effect until:
             25821          (A) the next scheduled certification test;
             25822          (B) retest; or
             25823          (C) terminated by the Labor Commission.
             25824          (b) (i) The Labor Commission may issue a surface foreman certificate to a current
             25825      holder of an underground mine foreman certificate, if the applicant has three years of varied
             25826      surface mining experience.
             25827          (ii) A surface foreman certificate applicant may receive credit for surface experience in
             25828      any other industry that has substantially equivalent surface facilities, if the applicant has
             25829      performed or is presently performing the duties normally required of a surface foreman.
             25830          (3) (a) The Labor Commission shall collect a fee for each temporary certificate.
             25831          (b) The Labor Commission shall establish the fee by following the procedures and
             25832      requirements of Section [ 63-38-3.2 ] 63J-1-303 .
             25833          (4) (a) An owner, operator, contractor, lessee, or agent may not employ a worker in
             25834      any occupation referred to in Section 40-2-15 who is uncertified.
             25835          (b) The certificate shall be on file and available for inspection to interested persons in
             25836      the office of the mine.
             25837          Section 523. Section 40-6-10 is amended to read:
             25838           40-6-10. Procedures -- Adjudicative proceedings -- Emergency orders -- Hearing
             25839      examiners.
             25840          (1) (a) The Board of Oil, Gas, and Mining and the Division of Oil, Gas, and Mining
             25841      shall comply with the procedures and requirements of [Title 63, Chapter 46b,] Title 63G,
             25842      Chapter 4, Administrative Procedures Act, in their adjudicative proceedings.
             25843          (b) The board shall enact rules governing its practice and procedure that are not
             25844      inconsistent with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             25845          (2) When an emergency requiring immediate action is found by the division director or

             25846      any board member to exist, [he] the division director or board member may issue an emergency
             25847      order according to the requirements and procedures of [Title 63, Chapter 46b] Title 63G,
             25848      Chapter 4, Administrative Procedures Act.
             25849          (3) Any notice required by this chapter, except as otherwise provided, shall be given at
             25850      the election of the board either by personal service or by one publication in a daily newspaper of
             25851      general circulation in the city of Salt Lake and county of Salt Lake, Utah, and in all newspapers
             25852      of general circulation published in the county where the land is affected, or some part of the
             25853      land is situated.
             25854          (4) (a) Any order made by the board is effective on issuance.
             25855          (b) All rules and orders issued by the board shall be:
             25856          (i) in writing;
             25857          (ii) entered in full in books to be kept by the board for that purpose;
             25858          (iii) indexed; and
             25859          (iv) public records open for inspection at all times during reasonable office hours.
             25860          (c) A copy of any rule, finding of fact, or order, certified by the board or by the division
             25861      director, shall be received in evidence in all courts of this state with the same effect as the
             25862      original.
             25863          (5) The board may act upon its own motion or upon the petition of any interested
             25864      person.
             25865          (6) (a) The board may appoint a hearing examiner to take evidence and to recommend
             25866      findings of fact and conclusions of law to the board.
             25867          (b) Any member of the board, division staff, or any other person designated by the
             25868      board may serve as a hearing examiner.
             25869          (c) The board may enter an order based on the recommendations of the examiner.
             25870          Section 524. Section 40-6-14.5 is amended to read:
             25871           40-6-14.5. Oil and Gas Conservation Account created -- Contents -- Use of
             25872      account monies.
             25873          (1) There is created within the General Fund a restricted account known as the Oil and

             25874      Gas Conservation Account.
             25875          (2) The contents of the account shall consist of:
             25876          (a) revenues from the fee levied under Section 40-6-14 , including any penalties or
             25877      interest charged for delinquent payments; and
             25878          (b) interest and earnings on account monies.
             25879          (3) Account monies shall be used to pay for the:
             25880          (a) administration of this chapter; and
             25881          (b) plugging and reclamation of abandoned oil or gas wells or bore, core, or exploratory
             25882      holes for which:
             25883          (i) there is no reclamation surety; or
             25884          (ii) the forfeited surety is insufficient for plugging and reclamation.
             25885          (4) Priority in the use of the monies shall be given to paying for the administration of
             25886      this chapter.
             25887          (5) Appropriations for plugging and reclamation of abandoned oil or gas wells or bore,
             25888      core, or exploratory holes shall be nonlapsing.
             25889          (6) The balance of the Oil and Gas Conservation Account at the end of a fiscal year may
             25890      not exceed $750,000. Any excess monies shall be transferred to the General Fund.
             25891          (7) (a) As used in this Subsection (7), "excess fee revenue" means revenue collected in
             25892      fiscal year 1999-2000 from the fee levied under Section 40-6-14 that exceeds the fee revenue
             25893      appropriated to the Division of Oil, Gas, and Mining in fiscal year 1999-2000.
             25894          (b) If there is a General Fund surplus for fiscal year 1999-2000, the Division of Finance
             25895      shall transfer General Fund surplus monies to the Oil and Gas Conservation Account in an
             25896      amount up to the excess fee revenue.
             25897          (c) The transfer provided in Subsection (7)(b) shall be made after General Fund surplus
             25898      monies are transferred to the General Fund Budget Reserve Account pursuant to Section
             25899      [ 63-38-2.5 ] 63J-1-202 .
             25900          Section 525. Section 40-8-4 is amended to read:
             25901           40-8-4. Definitions.

             25902          As used in this chapter:
             25903          (1) "Adjudicative proceeding" means:
             25904          (a) a division or board action or proceeding determining the legal rights, duties,
             25905      privileges, immunities, or other legal interests of one or more identifiable persons, including
             25906      actions to grant, deny, revoke, suspend, modify, annul, withdraw, or amend an authority, right,
             25907      permit, or license; or
             25908          (b) judicial review of a division or board action or proceeding specified in Subsection
             25909      (1)(a).
             25910          (2) "Applicant" means a person who has filed a notice of intent to commence mining
             25911      operations, or who has applied to the board for a review of a notice or order.
             25912          (3) (a) "Approved notice of intention" means a formally filed notice of intention to
             25913      commence mining operations, including revisions to it, which has been approved under Section
             25914      40-8-13 .
             25915          (b) An approved notice of intention is not required for small mining operations.
             25916          (4) "Board" means the Board of Oil, Gas and Mining.
             25917          (5) "Conference" means an informal adjudicative proceeding conducted by the division
             25918      or board.
             25919          (6) (a) "Deposit" or "mineral deposit" means an accumulation of mineral matter in the
             25920      form of consolidated rock, unconsolidated material, solutions, or occurring on the surface,
             25921      beneath the surface, or in the waters of the land from which any product useful to man may be
             25922      produced, extracted, or obtained or which is extracted by underground mining methods for
             25923      underground storage.
             25924          (b) "Deposit" or "mineral deposit" excludes sand, gravel, rock aggregate, water,
             25925      geothermal steam, and oil and gas as defined in Title 40, Chapter 6, Board and Division of Oil,
             25926      Gas and Mining, but includes oil shale and bituminous sands extracted by mining operations.
             25927          (7) "Development" means the work performed in relation to a deposit following its
             25928      discovery but prior to and in contemplation of production mining operations, aimed at, but not
             25929      limited to, preparing the site for mining operations, defining further the ore deposit by drilling or

             25930      other means, conducting pilot plant operations, constructing roads or ancillary facilities, and
             25931      other related activities.
             25932          (8) "Division" means the Division of Oil, Gas and Mining.
             25933          (9) "Emergency order" means an order issued by the board in accordance with the
             25934      provisions of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             25935          (10) (a) "Exploration" means surface-disturbing activities conducted for the purpose of
             25936      discovering a deposit or mineral deposit, delineating the boundaries of a deposit or mineral
             25937      deposit, and identifying regions or specific areas in which deposits or mineral deposits are most
             25938      likely to exist.
             25939          (b) "Exploration" includes, but is not limited to: sinking shafts; tunneling; drilling holes
             25940      and digging pits or cuts; building of roads, and other access ways; and constructing and
             25941      operating other facilities related to these activities.
             25942          (11) "Hearing" means a formal adjudicative proceeding conducted by the board under
             25943      its procedural rules.
             25944          (12) (a) "Imminent danger to the health and safety of the public" means the existence of
             25945      a condition or practice, or a violation of a permit requirement or other requirement of this
             25946      chapter in a mining operation, which condition, practice, or violation could reasonably be
             25947      expected to cause substantial physical harm to persons outside the permit area before the
             25948      condition, practice, or violation can be abated.
             25949          (b) A reasonable expectation of death or serious injury before abatement exists if a
             25950      rational person, subjected to the same conditions or practices giving rise to the peril, would not
             25951      expose himself or herself to the danger during the time necessary for abatement.
             25952          (13) (a) "Land affected" means the surface and subsurface of an area within the state
             25953      where mining operations are being or will be conducted, including, but not limited to:
             25954          (i) on-site private ways, roads, and railroads;
             25955          (ii) land excavations;
             25956          (iii) exploration sites;
             25957          (iv) drill sites or workings;

             25958          (v) refuse banks or spoil piles;
             25959          (vi) evaporation or settling ponds;
             25960          (vii) stockpiles;
             25961          (viii) leaching dumps;
             25962          (ix) placer areas;
             25963          (x) tailings ponds or dumps; and
             25964          (xi) work, parking, storage, or waste discharge areas, structures, and facilities.
             25965          (b) All lands shall be excluded from the provisions of Subsection (13)(a) that would:
             25966          (i) be includable as land affected, but which have been reclaimed in accordance with an
             25967      approved plan, as may be approved by the board; and
             25968          (ii) lands in which mining operations have ceased prior to July 1, 1977.
             25969          (14) (a) "Mining operation" means activities conducted on the surface of the land for
             25970      the exploration for, development of, or extraction of a mineral deposit, including, but not
             25971      limited to, surface mining and the surface effects of underground and in situ mining, on-site
             25972      transportation, concentrating, milling, evaporation, and other primary processing.
             25973          (b) "Mining operation" does not include:
             25974          (i) the extraction of sand, gravel, and rock aggregate;
             25975          (ii) the extraction of oil and gas as defined in Title 40, Chapter 6, Board and Division of
             25976      Oil, Gas and Mining;
             25977          (iii) the extraction of geothermal steam;
             25978          (iv) smelting or refining operations;
             25979          (v) off-site operations and transportation;
             25980          (vi) reconnaissance activities; or
             25981          (vii) activities which will not cause significant surface resource disturbance or involve
             25982      the use of mechanized earth-moving equipment, such as bulldozers or backhoes.
             25983          (15) "Notice" means:
             25984          (a) notice of intention, as defined in this chapter; or
             25985          (b) written information given to an operator by the division describing compliance

             25986      conditions at a mining operation.
             25987          (16) "Notice of intention" means a notice to commence mining operations, including
             25988      revisions to the notice.
             25989          (17) "Off-site" means the land areas that are outside of or beyond the on-site land.
             25990          (18) (a) "On-site" means the surface lands on or under which surface or underground
             25991      mining operations are conducted.
             25992          (b) A series of related properties under the control of a single operator, but separated
             25993      by small parcels of land controlled by others, will be considered to be a single site unless an
             25994      exception is made by the division.
             25995          (19) "Operator" means a natural person, corporation, association, partnership, receiver,
             25996      trustee, executor, administrator, guardian, fiduciary, agent, or other organization or
             25997      representative, either public or private, owning, controlling, or managing a mining operation or
             25998      proposed mining operation.
             25999          (20) "Order" means written information provided by the division or board to an
             26000      operator or other parties, describing the compliance status of a permit or mining operation.
             26001          (21) "Owner" means a natural person, corporation, association, partnership, receiver,
             26002      trustee, executor, administrator, guardian, fiduciary, agent, or other organization or
             26003      representative, either public or private, owning, controlling, or managing a mineral deposit or
             26004      the surface of lands employed in mining operations.
             26005          (22) "Permit area" means the area of land indicated on the approved map submitted by
             26006      the operator with the application or notice to conduct mining operations.
             26007          (23) "Permit" means a permit or notice to conduct mining operations issued by the
             26008      division.
             26009          (24) "Permittee" means a person holding, or who is required by Utah law to hold, a
             26010      valid permit or notice to conduct mining operations.
             26011          (25) "Person" means an individual, partnership, association, society, joint stock
             26012      company, firm, company, corporation, or other governmental or business organization.
             26013          (26) "Reclamation" means actions performed during or after mining operations to

             26014      shape, stabilize, revegetate, or treat the land affected in order to achieve a safe, stable,
             26015      ecological condition and use which will be consistent with local environmental conditions.
             26016          (27) "Small mining operations" means mining operations which disturb or will disturb
             26017      five or less surface acres at any given time.
             26018          (28) "Unwarranted failure to comply" means the failure of a permittee to prevent the
             26019      occurrence of a violation of the permit or a requirement of this chapter due to indifference, lack
             26020      of diligence, or lack of reasonable care, or the failure to abate a violation of the permit or this
             26021      chapter due to indifference, lack of diligence, or lack of reasonable care.
             26022          Section 526. Section 40-8-6 is amended to read:
             26023           40-8-6. Board -- Powers, functions, and duties.
             26024          In addition to those provided in Title 40, Chapter 6, Board and Division of Oil, Gas and
             26025      Mining, the board has the following powers, functions, and duties:
             26026          (1) To enact rules according to the procedures and requirements of [Title 63, Chapter
             26027      46a,] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that are reasonably necessary
             26028      to carry out the purposes of this chapter.
             26029          (2) To hold hearings and to issue orders or other appropriate instruments based upon
             26030      the results of those hearings.
             26031          (3) To issue emergency orders according to the requirements and provisions of [Title
             26032      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             26033          (4) To do all other things and take such other actions within the purposes of this act as
             26034      may be necessary to enforce its provisions.
             26035          Section 527. Section 40-8-7 is amended to read:
             26036           40-8-7. Board and division -- Authority.
             26037          (1) The board and the division may require:
             26038          (a) that a notice of intention for all mining operations be filed with, and approved by,
             26039      the division, before the mining operation commences or continues pursuant to Sections 40-8-13
             26040      and 40-8-23 ;
             26041          (b) the reclamation of lands affected by mining operations after the effective date of this

             26042      chapter having due regard for innate differences in mineral deposits;
             26043          (c) for mining operations, including small mining operations, the furnishing and
             26044      maintenance of reasonable surety to guarantee that the land affected is reclaimed according to
             26045      approved plans consistent with on-site conditions;
             26046          (d) that the operator rehabilitate, close, or mitigate the impacts of each drill hole, shaft,
             26047      or tunnel as required under Section 40-8-13 ;
             26048          (e) that the operator pay legally determined public liability and property damage claims
             26049      resulting from mining operations;
             26050          (f) that every operator who conducts mining operations in the state maintain suitable
             26051      records and make periodic reports to the division as required under this chapter;
             26052          (g) that with respect to all mining operations, a notice of intention is filed with and, if
             26053      required by this chapter, approved by the division before any such mining operations are
             26054      commenced or continued pursuant to Section 40-8-23 ;
             26055          (h) the suspension of mining operations in an emergency situation;
             26056          (i) the payment of fixed, uniform, and nonescalating permit fees; or
             26057          (j) that mining operations be conducted to minimize or prevent hazards to public health
             26058      and safety.
             26059          (2) No rule established by the board with respect to mined land reclamation shall have
             26060      retroactive effect on existing reclamation plans included as a part of an approved notice of
             26061      intention to commence mining operations which was approved prior to the effective date of the
             26062      rule.
             26063          (3) The board may promulgate rules relating to the surety for mining operations in
             26064      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             26065      Act.
             26066          Section 528. Section 40-10-6 is amended to read:
             26067           40-10-6. Powers, functions, and duties of board and division.
             26068          In addition to those provided in Title 40, Chapter 8, the board and division have the
             26069      following powers, functions, and duties:

             26070          (1) to make and promulgate in accordance with [Title 63, Chapter 46a, the] Title 63G,
             26071      Chapter 3, Utah Administrative Rulemaking Act, [such] the rules as are specifically necessary
             26072      for the regulation of coal mining operations and reclamation operations;
             26073          (2) to authorize its employees, agents, or contractors to enter upon any property for the
             26074      purpose of carrying out the provisions of this chapter and Title 40, Chapter 8;
             26075          (3) to establish specific reclamation and performance standards for new and existing
             26076      coal mining operations and to effectuate these standards retroactively;
             26077          (4) to prohibit mining and exploration operations without a permit and to establish
             26078      procedures and requirements for the preparation, submission, approval, denial, termination, and
             26079      modification of applications for coal mining and reclamation permits and for coal exploration
             26080      permits;
             26081          (5) to set and assess an application fee based on no more than the actual cost of review
             26082      and processing of the application, this fee to accompany each application for a surface coal
             26083      mining and reclamation permit and each application for an exploration permit;
             26084          (6) to establish procedures and detailed requirements for all reclamation plans submitted
             26085      as part of a permit application;
             26086          (7) to condition the issuance of a permit to commence or continue surface mining
             26087      operations upon the posting of performance bonds, deposits, or sureties and to make provision
             26088      for the release of same in compliance with the requirements of this chapter;
             26089          (8) to appoint or employ technical support, legal services, or independent consultants in
             26090      furtherance of the objectives of this chapter and shall be responsible for coordination with other
             26091      agencies in matters relating to mined land reclamation and the application of related law; and
             26092          (9) to do all other things and take such other actions retroactively or otherwise within
             26093      the purposes of this chapter as may be necessary to enforce its provisions.
             26094          Section 529. Section 40-10-6.5 is amended to read:
             26095           40-10-6.5. Rulemaking authority and procedure.
             26096          (1) The board shall promulgate rules under this chapter in accordance with [Title 63,
             26097      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

             26098          (2) Except as provided in Subsection (3), no rule which the board adopts for the
             26099      purpose of the state administering a program under the federal Surface Mining Control and
             26100      Reclamation Act may be more stringent than the corresponding federal regulations which
             26101      address the same circumstances. In adopting such rules, the board may incorporate by reference
             26102      corresponding federal regulations.
             26103          (3) The board may adopt rules more stringent than corresponding federal regulations
             26104      for the purpose described in Subsection (2), only if it makes a written finding after public
             26105      comment and hearing, and based on evidence in the record, that the corresponding federal
             26106      regulation is not adequate to protect public safety and the environment of the state. Those
             26107      findings shall be accompanied by an opinion referring to and evaluating the public safety and
             26108      environmental information and studies contained in the record which form the basis for the
             26109      board's conclusion.
             26110          Section 530. Section 40-10-6.7 is amended to read:
             26111           40-10-6.7. Administrative procedures.
             26112          (1) (a) Informal adjudicative proceedings shall be conducted by the division under this
             26113      chapter and shall be referred to as conferences or informal conferences.
             26114          (b) The conduct of conferences shall be governed by rules adopted by the board which
             26115      are in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures
             26116      Act.
             26117          (2) (a) (i) Formal adjudicative proceedings shall be conducted by the division or board
             26118      under this chapter and shall be referred to as hearings or public hearings.
             26119          (ii) The conduct of hearings shall be governed by rules adopted by the board which are
             26120      in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures
             26121      Act.
             26122          (b) Hearings under this chapter shall be conducted in a manner which guarantees the
             26123      parties' due process rights. This includes:
             26124          (i) the right to examine any evidence presented to the board;
             26125          (ii) the right to cross-examine any witness; and

             26126          (iii) a prohibition of ex parte communication between any party and a member of the
             26127      board.
             26128          (c) A verbatim record of each public hearing required by this chapter shall be made, and
             26129      a transcript made available on the motion of any party or by order of the board.
             26130          Section 531. Section 40-10-13 is amended to read:
             26131           40-10-13. Advertisement of ownership, location, and boundaries -- Notice to
             26132      interested agencies or bodies -- Objections -- Conference.
             26133          (1) At the time of submission of an application for a surface coal mining and
             26134      reclamation permit, or revision of an existing permit pursuant to the provisions of this chapter,
             26135      the applicant shall submit to the division a copy of [his] the applicant's advertisement of the
             26136      ownership, precise location, and boundaries of the land to be affected. At the time of
             26137      submission the advertisement shall be placed by the applicant in a local newspaper of general
             26138      circulation in the locality of the proposed surface mine at least once a week for four consecutive
             26139      weeks. The division shall notify various local governmental bodies, planning agencies, and
             26140      sewage and water treatment authorities of water companies in the locality in which the
             26141      proposed surface mining will take place, notifying them of the operator's intention to surface
             26142      mine a particularly described tract of land and indicating the application's permit number and
             26143      where a copy of the proposed mining and reclamation plan may be inspected. These local
             26144      bodies, agencies, authorities, or companies may submit written comments within a reasonable
             26145      period established by the division on the mining applications with respect to the effects of the
             26146      proposed operation on the environment which are within their area of responsibility. These
             26147      comments shall immediately be transmitted to the applicant by the division and shall be made
             26148      available to the public at the same locations as are the mining applications.
             26149          (2) (a) Any person having an interest which is or may be adversely affected or the
             26150      officer or head of any federal, state, or local governmental agency or authority shall have the
             26151      right to file written objections to the proposed initial or revised application for a permit for
             26152      surface coal mining and reclamation operations with the division within 30 days after the last
             26153      publication of the notice. These objections shall immediately be transmitted to the applicant by

             26154      the division and shall be made available to the public.
             26155          (b) If written objections are filed and a conference requested, the division shall then
             26156      hold a conference within a reasonable time of the receipt of the objections or request. The
             26157      conference shall be informal and shall be conducted in accordance with the procedures
             26158      described in this Subsection (2)(b), irrespective of the requirements of Section [ 63-46b-5 ]
             26159      63G-4-203 , Administrative Procedures Act. The conference shall be held in the locality of the
             26160      coal mining and reclamation operation if requested within a reasonable time after written
             26161      objections or the request for an informal conference are received by the division. The date,
             26162      time, and location of the conference shall be advertised by the division in a newspaper of general
             26163      circulation in the locality at least two weeks prior to the scheduled conference date. The
             26164      division may arrange with the applicant upon request by any party to the administrative
             26165      proceeding access to the proposed mining area for the purpose of gathering information
             26166      relevant to the proceeding. An electronic or stenographic record shall be made of the
             26167      conference proceeding unless waived by all parties. This record shall be maintained and shall be
             26168      accessible to the parties until final release of the applicant's performance bond. In the event all
             26169      parties requesting the conference stipulate agreement prior to the requested conference and
             26170      withdraw their request, the conference need not be held.
             26171          Section 532. Section 40-10-14 is amended to read:
             26172           40-10-14. Division's findings issued to applicant and parties to conference --
             26173      Notice to applicant of approval or disapproval of application -- Hearing -- Temporary
             26174      relief -- Appeal to district court -- Further review.
             26175          (1) If a conference has been held under Subsection 40-10-13 (2), the division shall issue
             26176      and furnish the applicant for a permit and persons who are parties to the proceedings with the
             26177      written finding of the division granting or denying the permit in whole or in part and stating the
             26178      reasons, within the 60 days after the conference.
             26179          (2) If there has been no conference held under Subsection 40-10-13 (2), the division
             26180      shall notify the applicant for a permit within a reasonable time as set forth in rules, taking into
             26181      account the time needed for proper investigation of the site, the complexity of the permit

             26182      application, and whether or not written objection to the application has been filed, whether the
             26183      application has been approved or disapproved in whole or part.
             26184          (3) Upon approval of the application, the permit shall be issued. If the application is
             26185      disapproved, specific reasons shall be set forth in the notification. Within 30 days after the
             26186      applicant is notified of the final decision of the division on the permit application, the applicant
             26187      or any person with an interest which is or may be adversely affected may request a hearing on
             26188      the reasons for the final determination. The board shall hold a hearing pursuant to the rules of
             26189      practice and procedure of the board within 30 days of this request and provide notification to all
             26190      interested parties at the time that the applicant is notified. Within 30 days after the hearing the
             26191      board shall issue and furnish the applicant, and all persons who participated in the hearing, with
             26192      the written decision of the board granting or denying the permit in whole or in part and stating
             26193      the reasons.
             26194          (4) Where a hearing is requested pursuant to Subsection (3), the board may, under
             26195      conditions it prescribes, grant temporary relief it deems appropriate pending final determination
             26196      of the proceedings if:
             26197          (a) all parties to the proceedings have been notified and given an opportunity to be
             26198      heard on a request for temporary relief;
             26199          (b) the person requesting the relief shows that there is a substantial likelihood that [he]
             26200      the person will prevail on the merits of the final determination of the proceedings; and
             26201          (c) the relief will not adversely affect the public health or safety or cause significant
             26202      imminent environmental harm to land, air, or water resources.
             26203          (5) For the purpose of the hearing, the board may administer oaths, subpoena witnesses
             26204      or written or printed materials, compel attendance of the witnesses or production of the
             26205      materials, and take evidence, including, but not limited to, site inspections of the land to be
             26206      affected and other surface coal mining operations carried on by the applicant in the general
             26207      vicinity of the proposed operation. A verbatim record of each public hearing required by this
             26208      chapter shall be made, and a transcript made available on the motion of any party or by order of
             26209      the board.

             26210          (6) (a) An applicant or person with an interest which is or may be adversely affected
             26211      who has participated in the proceedings as an objector, and who is aggrieved by the decision of
             26212      the board, may appeal the decision of the board directly to the Utah Supreme Court.
             26213          (b) If the board fails to act within the time limits specified in this chapter, the applicant
             26214      or any person with an interest which is or may be adversely affected, who has requested a
             26215      hearing in accordance with Subsection (3), may bring an action in the district court for the
             26216      county in which the proposed operation is located.
             26217          (c) Any party to the action in district court may appeal from the final judgment, order,
             26218      or decree of the district court.
             26219          (d) Time frames for appeals under Subsections (6)(a) through (c) shall be consistent
             26220      with applicable provisions in Section [ 63-46b-14 , Administrative Procedures Act] 63G-4-401 .
             26221          Section 533. Section 40-10-16 is amended to read:
             26222           40-10-16. Release of performance bond, surety, or deposit -- Inspection and
             26223      evaluation of reclamation work -- Action on application for release of bond -- Objections
             26224      -- Formal hearing or informal conference.
             26225          (1) The division shall adopt and promulgate rules providing for the release of all or part
             26226      of a performance bond, surety, or deposit which will include the following requirements:
             26227          (a) filing of a request with the division by the operator; and
             26228          (b) advertisement by the operator designed to give public notice of the release and the
             26229      reclamation steps taken by the operator.
             26230          (2) Upon receipt of the notification and request, the division shall within 30 days
             26231      conduct an inspection and evaluation of the reclamation work involved. The evaluation shall
             26232      consider, among other things, the degree of difficulty to complete any remaining reclamation,
             26233      whether pollution of surface and subsurface water is occurring, the probability of continuance of
             26234      future occurrence of the pollution, and the estimated cost of abating the pollution. The division
             26235      shall notify the operator in writing of its decision to release or not to release all or part of the
             26236      performance bond or deposit within 60 days from the filing of the request, if no public hearing is
             26237      held pursuant to Subsection (6), and if there has been a public hearing held pursuant to

             26238      Subsection (6), within 30 days thereafter.
             26239          (3) The division may release in whole or in part the bond or deposit if the division is
             26240      satisfied the reclamation covered by the bond or deposit or portion of them has been
             26241      accomplished as required by this chapter according to the schedule set forth in the division's
             26242      rules, but no bond shall be fully released until all reclamation requirements of this chapter are
             26243      finally met.
             26244          (4) If the division disapproves the application for release of the bond or portion of it,
             26245      the division shall notify the permittee in writing, stating the reasons for disapproval and
             26246      recommending corrective actions necessary to secure the release and allowing opportunity for a
             26247      public hearing.
             26248          (5) When any application for total or partial bond release is filed with the division, the
             26249      division shall notify the municipality in which a surface coal mining operation is located by
             26250      certified mail at least 30 days prior to the release of all or a portion of the bond.
             26251          (6) (a) Any person with a valid legal interest which may be adversely affected by release
             26252      of the bond or the responsible officer or head of any federal, state, or local governmental agency
             26253      which has jurisdiction by law or special expertise with respect to any environmental, social, or
             26254      economic impact involved in the operation, or is authorized to develop and enforce
             26255      environmental standards with respect to these operations shall have the right to file written
             26256      objections to the proposed release from bond with the division within 30 days after the last
             26257      publication of the above notice.
             26258          (b) If written objections are filed and a conference is requested, the division shall inform
             26259      all the interested parties of the time and place of the conference and hold an informal conference
             26260      within 30 days after the request is filed with the division.
             26261          (c) The conference officer may convert the conference to a formal proceeding under the
             26262      standards set forth by Section [ 63-46b-4 ] 63G-4-202 . The matter shall be scheduled for hearing
             26263      before the board and a hearing shall be held in accordance with the rules of practice and
             26264      procedure of the board.
             26265          (d) A decision from the informal conference may be appealed to the board. The board

             26266      shall hold a hearing pursuant to the rules of practice and procedure of the board.
             26267          Section 534. Section 40-10-21 is amended to read:
             26268           40-10-21. Civil action to compel compliance with chapter -- Jurisdiction -- Venue
             26269      -- Division and board as parties -- Court costs -- Security when temporary restraining
             26270      order or injunction sought -- Other rights not affected -- Action for damages.
             26271          (1) (a) Except as provided in Subsection (2), any person having an interest which is or
             26272      may be adversely affected may commence a civil action on [his] the person's own behalf to
             26273      compel compliance with this chapter against:
             26274          (i) the state or any other governmental instrumentality or agency to the extent permitted
             26275      by the 11th Amendment to the United States Constitution or [Title 63, Chapter 30d] Title 63G,
             26276      Chapter 7, Governmental Immunity Act of Utah, which is alleged to be in violation of the
             26277      provisions of this chapter or of any rule, order, or permit issued pursuant to it;
             26278          (ii) any person who is alleged to be in violation of any rule, order, or permit issued
             26279      pursuant to this chapter; or
             26280          (iii) the division or board where there is alleged a failure of the division or board to
             26281      perform any act or duty under this chapter which is not discretionary with the division or with
             26282      the board.
             26283          (b) The district courts shall have jurisdiction without regard to the amount in
             26284      controversy or the citizenship of the parties.
             26285          (2) No action may be commenced:
             26286          (a) under Subsection (1)(a)(i) or (ii):
             26287          (i) prior to 60 days after the plaintiff has given notice in writing of the violation to the
             26288      division and to any alleged violator; or
             26289          (ii) if the attorney general has commenced and is diligently prosecuting a civil action in
             26290      a court of the state to require compliance with the provisions of this chapter, or any rule, order,
             26291      or permit issued pursuant to this chapter; or
             26292          (b) under Subsection (1)(a)(iii) prior to 60 days after the plaintiff has given notice in
             26293      writing of the action to the board, in the manner as the board prescribes by rule, except that the

             26294      action may be brought immediately after the notification in the case where the violation or order
             26295      complained of constitutes an imminent threat to the health or safety of the plaintiff or would
             26296      immediately affect a legal interest of the plaintiff.
             26297          (3) (a) Any action concerning a violation of this chapter or the rules promulgated under
             26298      it may be brought only in the judicial district in which the surface coal mining operation
             26299      complained of is located.
             26300          (b) In the action, the division and board, if not a party, may intervene as a matter of
             26301      right.
             26302          (4) (a) The court, in issuing any final order in any action brought pursuant to
             26303      Subsection (1), may award costs of litigation, including attorney and expert witness fees, to any
             26304      party whenever the court determines that award is appropriate.
             26305          (b) The court may, if a temporary restraining order or preliminary injunction is sought,
             26306      require the filing of a bond or equivalent security in accordance with the Utah Rules of Civil
             26307      Procedure.
             26308          (5) Nothing in this section may restrict any right which any person, or class of persons,
             26309      has under any statute or common law to seek enforcement of any of the provisions of this
             26310      chapter and the rules promulgated under it, or to seek any other relief, including relief against
             26311      the division and board.
             26312          (6) Any person who is injured in his person or property through the violation by an
             26313      operator of any rule, order, or permit issued pursuant to this chapter may bring an action for
             26314      damages, including reasonable attorney and expert witness fees, only in the judicial district in
             26315      which the surface coal mining operation complained of is located. Nothing in this Subsection
             26316      (6) shall affect the rights established by or limits imposed under Utah workmen's compensation
             26317      laws.
             26318          Section 535. Section 40-10-30 is amended to read:
             26319           40-10-30. Judicial review of rules or orders.
             26320          (1) Judicial review of adjudicative proceedings under this chapter is governed by [Title
             26321      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, and provisions of this

             26322      chapter consistent with the Administrative Procedures Act.
             26323          (2) Judicial review of the board's rulemaking procedures and rules adopted under this
             26324      chapter is governed by [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             26325      Rulemaking Act.
             26326          (3) An appeal from an order of the board shall be directly to the Utah Supreme Court
             26327      and is not a trial de novo. The court shall set aside the board action if it is found to be:
             26328          (a) unreasonable, unjust, arbitrary, capricious, or an abuse of discretion;
             26329          (b) contrary to constitutional right, power, privilege, or immunity;
             26330          (c) in excess of statutory jurisdiction, authority, or limitations;
             26331          (d) not in compliance with procedure required by law;
             26332          (e) based upon a clearly erroneous interpretation or application of the law; or
             26333          (f) as to an adjudicative proceeding, unsupported by substantial evidence on the record.
             26334          (4) An action or appeal involving an order of the board shall be determined as
             26335      expeditiously as feasible and in accordance with Section 78-2-2 . The Utah Supreme Court shall
             26336      determine the issues on both questions of law and fact and shall affirm or set aside the rule or
             26337      order, enjoin or stay the effective date of agency action, or remand the cause to the board for
             26338      further proceedings. Judicial review of disputed issues of fact shall be confined to the agency
             26339      record. The court may, in its discretion, receive additional evidence for good cause shown.
             26340          (5) If the board fails to perform any act or duty under this chapter which is not
             26341      discretionary, the aggrieved person may bring an action in the district court of the county in
             26342      which the operation or proposed operation is located.
             26343          Section 536. Section 41-1a-115 is amended to read:
             26344           41-1a-115. Division records -- Copies.
             26345          (1) The division shall file each application received.
             26346          (2) The division shall keep a record of each registration on a calendar year basis as
             26347      follows:
             26348          (a) under a distinctive registration number assigned to the vehicle, vessel, or outboard
             26349      motor;

             26350          (b) alphabetically, under the name of the owner of the vehicle, vessel, or outboard
             26351      motor;
             26352          (c) under the identification number of the vehicle, vessel, or outboard motor; and
             26353          (d) in any manner the division finds desirable for compiling statistical information or of
             26354      comparative value for use in determining registration fees in future years.
             26355          (3) (a) The division shall maintain a current record of each certificate of title it issues.
             26356          (b) (i) The division shall file and retain every surrendered certificate of title and every
             26357      application for title to permit the tracing of title of the vehicles designated in them.
             26358          (ii) The retention period for division records shall be set by the Division of Archives and
             26359      Records Service in accordance with [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             26360      Records Access and Management Act.
             26361          (4) (a) The commission and officers of the division the commission designates may
             26362      prepare under the seal of the division and deliver upon request a certified copy of any record of
             26363      the division, including microfilmed records, charging a fee, determined by the commission
             26364      pursuant to Section [ 63-38-3.2 ] 63J-1-303 , for each document authenticated.
             26365          (b) The application shall include the requested information to identify the applicant.
             26366          (c) Each certified copy is admissible in any proceeding in any court in the same manner
             26367      as the original.
             26368          (5) The division shall comply with [Title 63, Chapter 2] Title 63G, Chapter 2,
             26369      Government Records Access and Management Act.
             26370          Section 537. Section 41-1a-116 is amended to read:
             26371           41-1a-116. Records -- Access to records -- Fees.
             26372          (1) (a) All motor vehicle title and registration records of the division are protected
             26373      unless the division determines based upon a written request by the subject of the record that the
             26374      record is public.
             26375          (b) In addition to the provisions of this section, access to all division records is
             26376      permitted for all purposes described in the federal Driver's Privacy Protection Act of 1994, 18
             26377      U.S.C. Chapter 123.

             26378          (2) (a) Access to public records is determined by Section [ 63-2-201 ] 63G-2-201 .
             26379          (b) A record designated as public under Subsection (1)(a) may be used for advertising
             26380      or solicitation purposes.
             26381          (3) Access to protected records, except as provided in Subsection (4), is determined by
             26382      Section [ 63-2-202 ] 63G-2-202 .
             26383          (4) In addition to those persons granted access to protected records under Section
             26384      [ 63-2-202 ] 63G-2-202 , the division may disclose a protected record to a licensed private
             26385      investigator, holding a valid agency or registrant license, with a legitimate business need, a
             26386      person with a bona fide security interest, or the owner of a mobile home park subject to
             26387      Subsection (5), only upon receipt of a signed acknowledgment that the person receiving that
             26388      protected record may not:
             26389          (a) resell or disclose information from that record to any other person except as
             26390      permitted in the federal Driver's Privacy Protection Act of 1994; or
             26391          (b) use information from that record for advertising or solicitation purposes.
             26392          (5) The division may disclose the name or address, or both, of the lienholder or mobile
             26393      home owner of record, or both of them, to the owner of a mobile home park, if all of the
             26394      following conditions are met:
             26395          (a) a mobile home located within the mobile home park owner's park has been
             26396      abandoned under Section 57-16-13 or the resident is in default under the resident's lease;
             26397          (b) the mobile home park owner has conducted a reasonable search, but is unable to
             26398      determine the name or address, or both, of the lienholder or mobile home owner of record; and
             26399          (c) the mobile home park owner has submitted a written statement to the division
             26400      explaining the mobile home park owner's efforts to determine the name or address, or both, of
             26401      the lienholder or mobile home owner of record before the mobile home park owner contacted
             26402      the division.
             26403          (6) The division may provide protected information to a statistic gathering entity under
             26404      Subsection (4) only in summary form.
             26405          (7) A person allowed access to protected records under Subsection (4) may request

             26406      motor vehicle title or registration information from the division regarding any person, entity, or
             26407      motor vehicle by submitting a written application on a form provided by the division.
             26408          (8) If a person regularly requests information for business purposes, the division may by
             26409      rule allow the information requests to be made by telephone and fees as required under
             26410      Subsection (9) charged to a division billing account to facilitate division service. The rules shall
             26411      require that the:
             26412          (a) division determine if the nature of the business and the volume of requests merit the
             26413      dissemination of the information by telephone;
             26414          (b) division determine if the credit rating of the requesting party justifies providing a
             26415      billing account; and
             26416          (c) requestor submit to the division an application that includes names and signatures of
             26417      persons authorized to request information by telephone and charge the fees to the billing
             26418      account.
             26419          (9) (a) The division shall charge a reasonable search fee determined under Section
             26420      [ 63-38-3.2 ] 63J-1-303 for the research of each record requested.
             26421          (b) Fees may not be charged for furnishing information to persons necessary for their
             26422      compliance with this chapter.
             26423          (c) Law enforcement agencies have access to division records free of charge.
             26424          Section 538. Section 41-1a-117 is amended to read:
             26425           41-1a-117. Adjudicative proceedings.
             26426          The commission and the division shall comply with the procedures and requirements of
             26427      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in all adjudicative
             26428      proceedings conducted under this chapter.
             26429          Section 539. Section 41-1a-119 is amended to read:
             26430           41-1a-119. Emergency procedures for collection of fees.
             26431          (1) If the commission finds that the owner or operator of a vehicle who is liable for the
             26432      payment of any registration fee required by this chapter plans to depart quickly from the state,
             26433      to remove [his] the owner or operator's property from the state, to conceal [himself] the owner

             26434      or operator's person or [his] property, or do any other act tending to prejudice or render wholly
             26435      or partially ineffectual proceedings to collect the registration fees, the commission shall follow
             26436      the emergency procedures set forth in [Title 63, Chapter 46b] Title 63G, Chapter 4,
             26437      Administrative Procedures Act, and declare that the registration fees are immediately due and
             26438      payable.
             26439          (2) When the commission issues its emergency order, the registration fees are
             26440      immediately due and payable after notice is given to the owner or operator of the vehicle.
             26441          Section 540. Section 41-1a-231 is amended to read:
             26442           41-1a-231. Special mobile equipment status.
             26443          (1) "Special mobile equipment" status as defined under Section 41-1a-102 shall be
             26444      approved by the Department of Transportation in consultation with the Motor Carrier Advisory
             26445      Board created under Section 72-9-201 .
             26446          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             26447      Administrative Rulemaking Act, the Department of Transportation in consultation with the
             26448      State Tax Commission shall make rules establishing procedures for application, identification,
             26449      approval, denial, and appeal of special mobile equipment status.
             26450          Section 541. Section 41-1a-301 is amended to read:
             26451           41-1a-301. Apportioned registration and licensing of interstate vehicles.
             26452          (1) (a) An owner or operator of a fleet of commercial vehicles based in this state and
             26453      operating in two or more jurisdictions may register commercial vehicles for operation under the
             26454      International Registration Plan or the Uniform Vehicle Registration Proration and Reciprocity
             26455      Agreement by filing an application with the division.
             26456          (b) The application shall include information that identifies the vehicle owner, the
             26457      vehicle, the miles traveled in each jurisdiction, and other information pertinent to the registration
             26458      of apportioned vehicles.
             26459          (c) Vehicles operated exclusively in this state may not be apportioned.
             26460          (2) (a) If no operations were conducted during the preceding year, the application shall
             26461      contain a statement of the proposed operations and an estimate of annual mileage for each

             26462      jurisdiction.
             26463          (b) The division may adjust the estimate if the division is not satisfied with its
             26464      correctness.
             26465          (c) At renewal, the registrant shall use the actual mileage from the preceding year in
             26466      computing fees due each jurisdiction.
             26467          (3) The registration fee for apportioned vehicles shall be determined as follows:
             26468          (a) divide the in-jurisdiction miles by the total miles generated during the preceding
             26469      year;
             26470          (b) total the fees for each vehicle based on the fees prescribed in Section 41-1a-1206 ;
             26471      and
             26472          (c) multiply the sum obtained under Subsection (3)(b) by the quotient obtained under
             26473      Subsection (3)(a).
             26474          (4) Trailers or semitrailers of apportioned fleets may be listed separately as "trailer
             26475      fleets" with the fees paid according to the total distance those trailers were towed in all
             26476      jurisdictions during the preceding year mileage reporting period.
             26477          (5) (a) (i) When the proper fees have been paid and the property tax or in lieu fee has
             26478      been cleared under Section 41-1a-206 or 41-1a-207 , a registration card, annual decal, and
             26479      where necessary, license plate, will be issued for each unit listed on the application.
             26480          (ii) An original registration must be carried in each vehicle at all times.
             26481          (b) Original registration cards for trailers or semitrailers may be carried in the power
             26482      unit.
             26483          (c) (i) In lieu of a permanent registration card or license plate, the division may issue
             26484      one temporary permit authorizing operation of new or unlicensed vehicles until the permanent
             26485      registration is completed.
             26486          (ii) Once a temporary permit is issued, the registration process may not be cancelled.
             26487      Registration must be completed and the fees and any property tax or in lieu fee due must be
             26488      paid for the vehicle for which the permit was issued.
             26489          (iii) Temporary permits may not be issued for renewals.

             26490          (d) (i) The division shall issue one distinctive license plate that displays the letters APP
             26491      for apportioned vehicles.
             26492          (ii) The plate shall be displayed on the front of an apportioned truck tractor or power
             26493      unit or on the rear of any apportioned vehicle.
             26494          (iii) Distinctive decals displaying the word "apportioned" and the month and year of
             26495      expiration shall be issued for each apportioned vehicle.
             26496          (e) A nonrefundable administrative fee, determined by the commission pursuant to
             26497      Section [ 63-38-3.2 ] 63J-1-303 , shall be charged for each temporary permit, registration, or
             26498      both.
             26499          (6) Vehicles that are apportionally registered are fully registered for intrastate and
             26500      interstate movements, providing the proper interstate and intrastate authority has been secured.
             26501          (7) (a) Vehicles added to an apportioned fleet after the beginning of the registration
             26502      year shall be registered by applying the quotient under Subsection (3)(a) for the original
             26503      application to the fees due for the remainder of the registration year.
             26504          (b) (i) The owner shall maintain and submit complete annual mileage for each vehicle in
             26505      each jurisdiction, showing all miles operated by the lessor and lessee.
             26506          (ii) The fiscal mileage reporting period begins July 1, and continues through June 30 of
             26507      the year immediately preceding the calendar year in which the registration year begins.
             26508          (c) (i) An owner-operator, who is a lessor, may be the registrant and the vehicle may be
             26509      registered in the name of the owner-operator.
             26510          (ii) The identification plates and registration card shall be the property of the lessor and
             26511      may reflect both the owner-operator's name and that of the carrier as lessee.
             26512          (iii) The allocation of fees shall be according to the operational records of the
             26513      owner-operator.
             26514          (d) (i) The lessee may be the registrant of a leased vehicle at the option of the lessor.
             26515          (ii) If a lessee is the registrant of a leased vehicle, both the lessor's and lessee's name
             26516      shall appear on the registration.
             26517          (iii) The allocation of fees shall be according to the records of the carrier.

             26518          (8) (a) Any registrant whose application for apportioned registration has been accepted
             26519      shall preserve the records on which the application is based for a period of three years after the
             26520      close of the registration year.
             26521          (b) The records shall be made available to the division upon request for audit as to
             26522      accuracy of computations, payments, and assessments for deficiencies, or allowances for credits.
             26523          (c) An assessment for deficiency or claim for credit may not be made for any period for
             26524      which records are no longer required.
             26525          (d) Interest in the amount prescribed by Section 59-1-402 shall be assessed or paid from
             26526      the date due until paid on deficiencies found due after audit.
             26527          (e) Registrants with deficiencies are subject to the penalties under Section 59-1-401 .
             26528          (f) The division may enter into agreements with other International Registration Plan
             26529      jurisdictions for joint audits.
             26530          (9) (a) Except as provided in Subsection (9)(b), all state fees collected under this
             26531      section shall be deposited in the Transportation Fund.
             26532          (b) The following fees may be used by the commission as a dedicated credit to cover
             26533      the costs of electronic credentialing as provided in Section 41-1a-303 :
             26534          (i) $5 of each temporary registration permit fee paid under Subsection (12)(a)(i) for a
             26535      single unit; and
             26536          (ii) $10 of each temporary registration permit fee paid under Subsection (12)(a)(ii) for
             26537      multiple units.
             26538          (10) If registration is for less than a full year, fees for apportioned registration shall be
             26539      assessed according to Section 41-1a-1207 .
             26540          (a) (i) If the registrant is replacing a vehicle for one withdrawn from the fleet and the
             26541      new vehicle is of the same weight category as the replaced vehicle, the registrant must file a
             26542      supplemental application.
             26543          (ii) A registration card that transfers the license plate to the new vehicle shall be issued.
             26544          (iii) When a replacement vehicle is of greater weight than the replaced vehicle,
             26545      additional registration fees are due.

             26546          (b) If a vehicle is withdrawn from an apportioned fleet during the period for which it is
             26547      registered, the registrant shall notify the division and surrender the registration card and license
             26548      plate of the withdrawn vehicle.
             26549          (11) (a) An out-of-state carrier with an apportionally registered vehicle who has not
             26550      presented a certificate of property tax or in lieu fee as required by Section 41-1a-206 or
             26551      41-1a-207 , shall pay, at the time of registration, a proportional part of an equalized highway use
             26552      tax computed as follows:
             26553          (i) Multiply the number of vehicles or combination vehicles registered in each weight
             26554      class by the equivalent tax figure from the following tables:
             26555      Vehicle or Combination
             26556      Registered Weight         Age of Vehicle         Equivalent Tax
             26557      12,000 pounds or less         12 or more years                      $10
             26558      12,000 pounds or less         9 or more years but less than 12 years         $50
             26559      12,000 pounds or less         6 or more years but less than 9 years         $80
             26560      12,000 pounds or less         3 or more years but less than 6 years         $110
             26561      12,000 pounds or less         Less than 3 years                     $150
             26562                  Vehicle or Combination    Equivalent
             26563                   Registered Weight         Tax
             26564                  12,001 - 18,000 pounds     $150
             26565                  18,001 - 34,000 pounds     200
             26566                  34,001 - 48,000 pounds     300
             26567                  48,001 - 64,000 pounds     450
             26568                  64,001 pounds and over      600
             26569          (ii) Multiply the equivalent tax value for the total fleet determined under Subsection
             26570      (11)(a)(i) by the fraction computed under Subsection (3) for the apportioned fleet for the
             26571      registration year.
             26572          (b) Fees shall be assessed as provided in Section 41-1a-1207 .
             26573          (12) (a) Commercial vehicles meeting the registration requirements of another

             26574      jurisdiction may, as an alternative to full or apportioned registration, secure a temporary
             26575      registration permit for a period not to exceed 96 hours or until they leave the state, whichever is
             26576      less, for a fee of:
             26577          (i) $25 for a single unit; and
             26578          (ii) $50 for multiple units.
             26579          (b) A state temporary permit or registration fee is not required from nonresident owners
             26580      or operators of vehicles or combination of vehicles having a gross laden weight of 26,000
             26581      pounds or less for each single unit or combination.
             26582          Section 542. Section 41-1a-407 is amended to read:
             26583           41-1a-407. Plates issued to political subdivisions or state -- Use of "EX" letters --
             26584      Confidential information.
             26585          (1) Except as provided in Subsection (2), each municipality, board of education, school
             26586      district, state institution of learning, county, other governmental division, subdivision, or
             26587      district, and the state shall:
             26588          (a) place a license plate displaying the letters, "EX" on every vehicle owned and
             26589      operated by it or leased for its exclusive use; and
             26590          (b) display an identification mark designating the vehicle as the property of the entity in
             26591      a conspicuous place on both sides of the vehicle.
             26592          (2) The entity need not display the "EX" license plate or the identification mark
             26593      required by Subsection (1) if:
             26594          (a) the vehicle is in the direct service of the governor, lieutenant governor, attorney
             26595      general, state auditor, or state treasurer of Utah;
             26596          (b) the vehicle is used in official investigative work where secrecy is essential;
             26597          (c) the vehicle is used in an organized Utah Highway Patrol operation that is:
             26598          (i) conducted within a county of the first or second class as defined under Section
             26599      17-50-501 , unless no more than one unmarked vehicle is used for the operation;
             26600          (ii) approved by the Commissioner of Public Safety;
             26601          (iii) of a duration of 14 consecutive days or less; and

             26602          (iv) targeted toward careless driving, aggressive driving, and accidents involving:
             26603          (A) violations of Title 41, Chapter 6a, Part 5, Driving Under the Influence and Reckless
             26604      Driving;
             26605          (B) speeding violations for exceeding the posted speed limit by 21 or more miles per
             26606      hour;
             26607          (C) speeding violations in a reduced speed school zone under Section 41-6a-604 ;
             26608          (D) violations of Section 41-6a-1002 related to pedestrian crosswalks; or
             26609          (E) violations of Section 41-6a-702 related to lane restrictions;
             26610          (d) the vehicle is provided to an official of the entity as part of a compensation package
             26611      allowing unlimited personal use of that vehicle;
             26612          (e) the personal security of the occupants of the vehicle would be jeopardized if the
             26613      "EX" license plate were in place; or
             26614          (f) the vehicle is used in routine enforcement on a state highway with four or more lanes
             26615      involving:
             26616          (i) violations of Section 41-6a-701 related to operating a vehicle on the right side of a
             26617      roadway;
             26618          (ii) violations of Section 41-6a-702 related to left lane restrictions;
             26619          (iii) violations of Section 41-6a-704 related to overtaking and passing vehicles
             26620      proceeding in the same direction;
             26621          (iv) violations of Section 41-6a-711 related to following a vehicle at a safe distance; and
             26622          (v) violations of Section 41-6a-804 related to turning and changing lanes.
             26623          (3) Plates issued to Utah Highway Patrol vehicles may bear the capital letters "UHP," a
             26624      beehive logo, and the call number of the trooper to whom the vehicle is issued.
             26625          (4) (a) The commission shall issue "EX" and "UHP" plates.
             26626          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             26627      Administrative Rulemaking Act, the commission shall make rules establishing the procedure for
             26628      application for and distribution of the plates.
             26629          (5) For a vehicle that qualifies for "EX" or "UHP" license plates, the entity is not

             26630      required to display an annual registration decal.
             26631          (6) (a) Information shall be confidential for vehicles that are not required to display the
             26632      "EX" license plate or the identification mark under Subsections (2)(a), (b), (d), and (e).
             26633          (b) (i) If a law enforcement officer's identity must be kept secret, [his] the law
             26634      enforcement officer's agency head may request in writing that the division remove the license
             26635      plate information of the officer's personal vehicles from all public access files and place it in a
             26636      confidential file until the assignment is completed.
             26637          (ii) The agency head shall notify the division when the assignment is completed.
             26638          (7) A peace officer engaged in an organized operation under Subsection (2)(c) shall be
             26639      in a uniform clearly identifying the law enforcement agency the peace officer is representing
             26640      during the operation.
             26641          Section 543. Section 41-1a-416 is amended to read:
             26642           41-1a-416. Original issue license plates -- Alternative stickers -- Rulemaking.
             26643          (1) The owner of a motor vehicle that is a model year 1973 or older may apply to the
             26644      division for permission to display an original issue license plate of a format and type issued by
             26645      the state in the same year as the model year of the vehicle.
             26646          (2) The owner of a motor vehicle who desires to display original issue license plates
             26647      instead of license plates issued under Section 41-1a-401 shall:
             26648          (a) complete an application on a form provided by the division;
             26649          (b) supply and submit the original license plates that the owner desires to display to the
             26650      division for approval; and
             26651          (c) pay the fees prescribed in Sections 41-1a-1206 and 41-1a-1211 .
             26652          (3) The division, prior to approval of an application under this section, shall determine
             26653      that the original issue license plates:
             26654          (a) are of a format and type issued by the state for use on a motor vehicle in this state;
             26655          (b) have numbers and characters that are unique and do not conflict with existing
             26656      license plate series in this state;
             26657          (c) are legible, durable, and otherwise in a condition that serves the purposes of this

             26658      chapter, except that original issue license plates are exempt from the provision of Section
             26659      41-1a-401 regarding reflectorization and Section 41-1a-403 regarding legibility from 100 feet;
             26660      and
             26661          (d) are from the same year of issue as the model year of the motor vehicle on which
             26662      they are to be displayed.
             26663          (4) An owner of a motor vehicle displaying original issue license plates approved under
             26664      this section is not exempt from any other requirement of this chapter except as specified under
             26665      this section.
             26666          (5) (a) An owner of a motor vehicle currently registered in this state whose original
             26667      issue license plates are not approved by the division because of the requirement in Subsection
             26668      (3)(b) may apply to the division for a sticker to allow the temporary display of the original issue
             26669      license plates if:
             26670          (i) the plates otherwise comply with this section;
             26671          (ii) the plates are only displayed when the motor vehicle is used for participating in
             26672      motor vehicle club activities, exhibitions, tours, parades, and similar activities and are not used
             26673      for general daily transportation;
             26674          (iii) the license plates and registration issued under this chapter for normal use of the
             26675      motor vehicle on the highways of this state are kept in the motor vehicle and shown to a peace
             26676      officer on request; and
             26677          (iv) the sticker issued by the division under this subsection is properly affixed to the
             26678      face of the original issue license plate.
             26679          (b) The sticker issued under this section shall be the size and form customarily furnished
             26680      by the division.
             26681          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             26682      Administrative Rulemaking Act, the division may make rules for the implementation of this
             26683      section.
             26684          Section 544. Section 41-1a-418 is amended to read:
             26685           41-1a-418. Authorized special group license plates.

             26686          (1) The division shall only issue special group license plates in accordance with this
             26687      section through Section 41-1a-422 to a person who is specified under this section within the
             26688      categories listed as follows:
             26689          (a) disability special group license plates issued in accordance with Section 41-1a-420 ;
             26690          (b) honor special group license plates, as in a war hero, which plates are issued for a:
             26691          (i) survivor of the Japanese attack on Pearl Harbor;
             26692          (ii) former prisoner of war;
             26693          (iii) recipient of a Purple Heart;
             26694          (iv) disabled veteran; or
             26695          (v) recipient of a gold star award issued by the United States Secretary of Defense if the
             26696      recipient is the spouse, parent, or sibling of a servicemember killed;
             26697          (c) unique vehicle type special group license plates, as for historical, collectors value, or
             26698      other unique vehicle type, which plates are issued for a:
             26699          (i) special interest vehicle;
             26700          (ii) vintage vehicle;
             26701          (iii) farm truck; or
             26702          (iv) vehicle powered by clean fuel and for which a current clean special fuel certificate is
             26703      maintained as provided in Section 59-13-304 ;
             26704          (d) recognition special group license plates, as in a public official or an emergency
             26705      service giver, which plates are issued for a:
             26706          (i) current member of the Legislature;
             26707          (ii) current member of the United States Congress;
             26708          (iii) current member of the National Guard;
             26709          (iv) licensed amateur radio operator;
             26710          (v) currently employed, volunteer, or retired firefighter;
             26711          (vi) emergency medical technician;
             26712          (vii) current member of a search and rescue team; or
             26713          (viii) current honorary consulate designated by the United States Department of State;

             26714      and
             26715          (e) support special group license plates, as for a contributor to an institution or cause,
             26716      which plates are issued for a contributor to:
             26717          (i) an institution's scholastic scholarship fund;
             26718          (ii) the Division of Wildlife Resources;
             26719          (iii) the Department of Veterans' Affairs;
             26720          (iv) the Division of Parks and Recreation;
             26721          (v) the Department of Agriculture and Food;
             26722          (vi) the Guardian Ad Litem Services Account and the Children's Museum of Utah;
             26723          (vii) the Boy Scouts of America;
             26724          (viii) spay and neuter programs through No More Homeless Pets in Utah;
             26725          (ix) the Boys and Girls Clubs of America;
             26726          (x) Utah public education; or
             26727          (xi) programs that provide support to organizations that create affordable housing for
             26728      those in severe need through the Division of Real Estate.
             26729          (2) Beginning January 1, 2003, the division may not issue a new type of special group
             26730      license plate unless the division receives:
             26731          (a) a start-up fee established under Section [ 63-38-3.2 ] 63J-1-303 for production and
             26732      administrative costs for providing the new special group license plates; or
             26733          (b) a legislative appropriation for the start-up fee provided under Subsection (2)(a).
             26734          (3) (a) A sponsoring organization that qualifies for tax-exempt status under Internal
             26735      Revenue Code Section 501(c)(3) may request the commission to authorize a new type of special
             26736      group license plate for the sponsoring organization. The sponsoring organization shall:
             26737          (i) collect a minimum of 200 applications; and
             26738          (ii) pay a start-up fee established under Section [ 63-38-3.2 ] 63J-1-303 for production
             26739      and administrative costs for providing the new type of special group license plates.
             26740          (b) If the provisions of Subsection (3)(a) are met, the commission shall approve the
             26741      request and the division shall:

             26742          (i) design a license plate in accordance with Section 41-1a-419 ; and
             26743          (ii) issue the new type of special group license plates.
             26744          Section 545. Section 41-1a-419 is amended to read:
             26745           41-1a-419. Plate design -- Vintage vehicle certification and registration --
             26746      Personalized special group license plates -- Rulemaking.
             26747          (1) (a) The design and maximum number of numerals or characters on special group
             26748      license plates shall be determined by the division in accordance with the requirements under
             26749      Subsection (1)(b).
             26750          (b) Each special group license plate shall display:
             26751          (i) the word Utah;
             26752          (ii) the name or identifying slogan of the special group;
             26753          (iii) a symbol decal not exceeding two positions in size representing the special group;
             26754      and
             26755          (iv) the combination of letters, numbers, or both uniquely identifying the registered
             26756      vehicle.
             26757          (2) (a) The division shall, after consultation with a representative designated by the
             26758      special group, specify the word or words comprising the special group name and the symbol
             26759      decal to be displayed upon the special group license plates.
             26760          (b) A special group license plate symbol decal may not be redesigned:
             26761          (i) unless the division receives a redesign fee established by the division under Section
             26762      [ 63-38-3.2 ] 63J-1-303 ; and
             26763          (ii) more frequently than every five years.
             26764          (c) (i) Except as provided in Subsection (2)(c)(ii), a special group license plate symbol
             26765      decal may not be reordered unless the division receives a symbol decal reorder fee established
             26766      by the division under Section [ 63-38-3.2 ] 63J-1-303 .
             26767          (ii) A recognition special group license plate symbol decal for a currently employed,
             26768      volunteer, or retired firefighter issued in accordance with Subsection 41-1a-418 (1)(d)(v) that is
             26769      reordered on or after July 1, 2007, but on or before June 30, 2008, is exempt from the symbol

             26770      decal reorder fee authorized under Subsection (2)(c)(i).
             26771          (3) The license plates issued for horseless carriages prior to July 1, 1992, are valid
             26772      without renewal as long as the vehicle is owned by the registered owner and the license plates
             26773      may not be recalled by the division.
             26774          (4) A person who meets the criteria established under Sections 41-1a-418 through
             26775      41-1a-422 for issuance of special group license plates may make application in the same manner
             26776      provided in Sections 41-1a-410 and 41-1a-411 for personalized special group license plates.
             26777          (5) The commission shall make rules in accordance with [Title 63, Chapter 46a] Title
             26778      63G, Chapter 3, Utah Administrative Rulemaking Act, to:
             26779          (a) establish qualifying criteria for persons to receive, renew, or surrender special group
             26780      license plates; and
             26781          (b) establish the maximum number of numerals or characters for special group license
             26782      plates.
             26783          Section 546. Section 41-1a-420 is amended to read:
             26784           41-1a-420. Disability special group license plates -- Application and qualifications
             26785      -- Rulemaking.
             26786          (1) The division shall issue a disability special group license plate, a temporary
             26787      removable windshield placard, or a removable windshield placard to:
             26788          (a) a qualifying person with a disability; or
             26789          (b) the registered owner of a vehicle that an organization uses primarily for the
             26790      transportation of persons with disabilities that limit or impair the ability to walk.
             26791          (2) (a) The initial application of a person with a disability shall be accompanied by the
             26792      certification of a licensed physician:
             26793          (i) that the applicant meets the definition of a person with a disability that limits or
             26794      impairs the ability to walk as defined in the federal Uniform System for Parking for Persons with
             26795      Disabilities, 23 C.F.R. Ch. 11, Subch. B, Pt. 1235.2 (1991); and
             26796          (ii) containing the period of time that the physician determines the applicant will have
             26797      the disability, not to exceed six months in the case of a temporary disability.

             26798          (b) The division shall issue a person with a disability special group license plate or a
             26799      removable windshield placard to a person with a permanent disability.
             26800          (c) The issuance of a person with a disability special group license plate does not
             26801      preclude the issuance to the same applicant of a removable windshield placard.
             26802          (d) On request of an applicant with a disability special group license plate, temporary
             26803      removable windshield placard, or a removable windshield placard the division shall issue one
             26804      additional placard.
             26805          (e) A disability special group license plate, temporary removable windshield placard, or
             26806      removable windshield placard may be used to allow one motorcycle to share a parking space
             26807      reserved for persons with a disability if:
             26808          (i) the person with a disability:
             26809          (A) is using a motorcycle; and
             26810          (B) displays on the motorcycle a disability special group license plate, temporary
             26811      removable windshield placard, or a removable windshield placard;
             26812          (ii) the person who shares the parking space assists the person with a disability with the
             26813      parking accommodation; and
             26814          (iii) the parking space is sufficient size to accommodate both motorcycles without
             26815      interfering with other parking spaces or traffic movement.
             26816          (3) (a) The temporary removable windshield placard or removable windshield placard
             26817      shall be hung from the front windshield rearview mirror when the vehicle is parked in a parking
             26818      space reserved for persons with disabilities so that it is visible from the front and rear of the
             26819      vehicle.
             26820          (b) If a motorcycle is being used, the temporary removable windshield placard or
             26821      removable windshield placard shall be displayed in plain sight on or near the handle bars of the
             26822      motorcycle.
             26823          (4) The commission shall make rules in accordance with [Title 63, Chapter 46a] Title
             26824      63G, Chapter 3, Utah Administrative Rulemaking Act, to:
             26825          (a) establish qualifying criteria for persons to receive, renew, or surrender special group

             26826      license plates, a temporary removable windshield placard, or a removable windshield placard in
             26827      accordance with this section;
             26828          (b) establish the maximum number of numerals or characters for disability special group
             26829      license plates; and
             26830          (c) require all temporary removable windshield placards and removable windshield
             26831      placards to include:
             26832          (i) an identification number;
             26833          (ii) an expiration date not to exceed:
             26834          (A) six months for a temporary removable windshield placard; and
             26835          (B) two years for a removable windshield placard; and
             26836          (iii) the seal or other identifying mark of the division.
             26837          Section 547. Section 41-1a-422 is amended to read:
             26838           41-1a-422. Support special group license plates -- Contributor -- Voluntary
             26839      contribution collection procedures.
             26840          (1) As used in this section:
             26841          (a) (i) Except as provided in Subsection (1)(a)(ii), "contributor" means a person who
             26842      has donated or in whose name at least $25 has been donated to:
             26843          (A) a scholastic scholarship fund of a single named institution;
             26844          (B) the Department of Veterans' Affairs for veterans' programs;
             26845          (C) the Division of Wildlife Resources for the Wildlife Resources Account created in
             26846      Section 23-14-13 , for conservation of wildlife and the enhancement, preservation, protection,
             26847      access, and management of wildlife habitat;
             26848          (D) the Department of Agriculture and Food for the benefit of conservation districts;
             26849          (E) the Division of Parks and Recreation for the benefit of snowmobile programs;
             26850          (F) the Guardian Ad Litem Services Account and the Children's Museum of Utah, with
             26851      the donation evenly divided between the two;
             26852          (G) the Boy Scouts of America for the benefit of a Utah Boy Scouts of America council
             26853      as specified by the contributor;

             26854          (H) No More Homeless Pets in Utah for distribution to organizations or individuals that
             26855      provide spay and neuter programs that subsidize the sterilization of domestic animals;
             26856          (I) the Utah Alliance of Boys and Girls Clubs, Inc. to provide and enhance youth
             26857      development programs;
             26858          (J) the Utah Association of Public School Foundations to support public education; or
             26859          (K) the Utah Housing Opportunity Restricted Account created in Section 61-2-28 to
             26860      assist people who have severe housing needs.
             26861          (ii) (A) For a veterans' special group license plate, "contributor" means a person who
             26862      has donated or in whose name at least a $25 donation at the time of application and $10 annual
             26863      donation thereafter has been made.
             26864          (B) For a Utah Housing Opportunity special group license plate, "contributor" means a
             26865      person who:
             26866          (I) has donated or in whose name at least $30 has been donated at the time of
             26867      application and annually after the time of application; and
             26868          (II) is a member of a trade organization for real estate licensees that has more than
             26869      15,000 Utah members.
             26870          (b) "Institution" means a state institution of higher education as defined under Section
             26871      53B-3-102 or a private institution of higher education in the state accredited by a regional or
             26872      national accrediting agency recognized by the United States Department of Education.
             26873          (2) (a) An applicant for original or renewal collegiate special group license plates under
             26874      Subsection (1)(a)(i) must be a contributor to the institution named in the application and present
             26875      the original contribution verification form under Subsection (2)(b) or make a contribution to the
             26876      division at the time of application under Subsection (3).
             26877          (b) An institution with a support special group license plate shall issue to a contributor a
             26878      verification form designed by the commission containing:
             26879          (i) the name of the contributor;
             26880          (ii) the institution to which a donation was made;
             26881          (iii) the date of the donation; and

             26882          (iv) an attestation that the donation was for a scholastic scholarship.
             26883          (c) The state auditor may audit each institution to verify that the moneys collected by
             26884      the institutions from contributors are used for scholastic scholarships.
             26885          (d) After an applicant has been issued collegiate license plates or renewal decals, the
             26886      commission shall charge the institution whose plate was issued, a fee determined in accordance
             26887      with Section [ 63-38-3.2 ] 63J-1-303 for management and administrative expenses incurred in
             26888      issuing and renewing the collegiate license plates.
             26889          (e) If the contribution is made at the time of application, the contribution shall be
             26890      collected, treated, and deposited as provided under Subsection (3).
             26891          (3) (a) An applicant for original or renewal support special group license plates under
             26892      this section must be a contributor to the sponsoring organization associated with the license
             26893      plate.
             26894          (b) This contribution shall be:
             26895          (i) unless collected by the named institution under Subsection (2), collected by the
             26896      division;
             26897          (ii) considered a voluntary contribution for the funding of the activities specified under
             26898      this section and not a motor vehicle registration fee; and
             26899          (iii) deposited into the appropriate account less actual administrative costs associated
             26900      with issuing the license plates.
             26901          (c) The donation described in Subsection (1)(a) must be made in the 12 months prior to
             26902      registration or renewal of registration.
             26903          (d) The donation described in Subsection (1)(a) shall be a one-time donation made to
             26904      the division when issuing original:
             26905          (i) snowmobile license plates; or
             26906          (ii) conservation license plates.
             26907          (4) Veterans' license plates shall display one of the symbols representing the Army,
             26908      Navy, Air Force, Marines, Coast Guard, or American Legion.
             26909          Section 548. Section 41-1a-522 is amended to read:

             26910           41-1a-522. Record of nonconforming vehicle -- Access -- Brand -- Unbranding.
             26911          (1) The definitions in Section 41-3-407 apply to this section.
             26912          (2) Upon receipt of a copy of an original certificate of title, Manufacturer's Statement of
             26913      Origin, or other evidence of ownership of a nonconforming vehicle in accordance with Section
             26914      41-3-409 , the division shall:
             26915          (a) establish a record of the reported nonconforming vehicle;
             26916          (b) consider the record a public record with public access under Sections 41-1a-116 and
             26917      [ 63-2-201 ] 63G-2-201 ;
             26918          (c) allow access to the record upon written application to the division; and
             26919          (d) upon request for a new certificate of title for a nonconforming vehicle, brand the
             26920      certificate of title with the words "MANUFACTURER BUYBACK NONCONFORMING
             26921      VEHICLE" clearly and conspicuously on the face of the new certificate of title.
             26922          (3) Upon receipt of the branded certificate of title, the division shall:
             26923          (a) follow the procedures established in Subsection (2); or
             26924          (b) if the record of the nonconforming vehicle contains an application for an unbranded
             26925      certificate of title that meets the requirements of Section 41-3-409.5 :
             26926          (i) update the record to show that all nonconformities have been cured;
             26927          (ii) consider the record a public record with public access under Sections 41-1a-116 and
             26928      [ 63-2-201 ] 63G-2-201 ;
             26929          (iii) allow access to the complete record upon written application to the division; and
             26930          (iv) upon request for a new certificate of title, issue an unbranded certificate of title.
             26931          Section 549. Section 41-1a-712 is amended to read:
             26932           41-1a-712. Foreign vehicle disclosure requirements -- Penalties -- Civil damages.
             26933          (1) A person may not knowingly sell or offer for sale in this state any vehicle that was
             26934      initially delivered for disposition or sale in a country other than the United States of America
             26935      unless, prior to the sale, the person provides written notice to the purchaser on a separate form
             26936      furnished by the Motor Vehicle Enforcement Division that indicates:
             26937          (a) that the vehicle was initially delivered for disposition or sale in a country outside of

             26938      the United States as indicated on the Manufacturer's Statement of Origin or similar ownership
             26939      document;
             26940          (b) the country where the vehicle was initially delivered for the disposition or sale; and
             26941          (c) any other information required by the commission under rules made by the
             26942      commission in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             26943      Administrative Rulemaking Act.
             26944          (2) A person who violates this section is guilty of a class B misdemeanor.
             26945          (3) (a) In addition to any other penalties, a purchaser may bring a civil action to recover
             26946      damages resulting from a seller's failure to provide notice as required under this section.
             26947          (b) The amount of damages that may be recovered in a civil action are the actual
             26948      damages or $1,500, whichever is greater.
             26949          Section 550. Section 41-1a-1007 is amended to read:
             26950           41-1a-1007. Fees.
             26951          (1) A certified vehicle inspector may charge a fee in accordance with Section
             26952      [ 63-38-3.2 ] 63J-1-303 for each inspection under Subsection 41-1a-1002 (1).
             26953          (2) To cover the costs of inspection and to defray the cost of certification, the fee
             26954      charged under this section by a certified vehicle inspector shall be retained by the Motor Vehicle
             26955      Enforcement Division as a dedicated credit.
             26956          Section 551. Section 41-1a-1010 is amended to read:
             26957           41-1a-1010. Permit required to dismantle vehicle -- Duties upon receiving the
             26958      permit -- Exceptions.
             26959          (1) (a) A person may not scrap, dismantle, destroy, or otherwise change any vehicle so
             26960      that it loses its character, until the person submits to the division:
             26961          (i) the certificate of title for the vehicle for cancellation; and
             26962          (ii) an application for a permit to dismantle the vehicle.
             26963          (b) Upon approval of the application, the division shall issue a permit to dismantle the
             26964      vehicle.
             26965          (2) Except as provided in Subsection (3), if a permit to dismantle is issued under this

             26966      section, the vehicle shall be destroyed and may not be rebuilt or reconstructed and may not be
             26967      retitled or registered.
             26968          (3) A vehicle for which a permit to dismantle has been issued by the division may be
             26969      retitled and the permit to dismantle rescinded if:
             26970          (a) prior to receiving a dismantling permit the vehicle had a Utah certificate of title;
             26971          (b) the vehicle has not been dismantled;
             26972          (c) an investigator for the Motor Vehicle Enforcement Division of the commission
             26973      determines after a physical inspection of the vehicle that it is the same vehicle for which the
             26974      permit to dismantle was issued; and
             26975          (d) the applicant pays the fee under Subsection (4).
             26976          (4) The commission may collect a fee established in accordance with Section
             26977      [ 63-38-3.2 ] 63J-1-303 to cover the expenses of an inspection under Subsection (3).
             26978          Section 552. Section 41-1a-1101 is amended to read:
             26979           41-1a-1101. Seizure -- Circumstances where permitted -- Impound lot standards.
             26980          (1) The division or any peace officer, without a warrant, may seize and take possession
             26981      of any vehicle, vessel, or outboard motor:
             26982          (a) that the division or the peace officer has reason to believe has been stolen;
             26983          (b) on which any identification number has been defaced, altered, or obliterated;
             26984          (c) that has been abandoned in accordance with Section 41-6a-1408 ;
             26985          (d) for which the applicant has written a check for registration or title fees that has not
             26986      been honored by the applicant's bank and that is not paid within 30 days;
             26987          (e) that is placed on the water with improper registration; or
             26988          (f) that is being operated on a highway:
             26989          (i) with registration that has been expired for more than three months;
             26990          (ii) having never been properly registered by the current owner; or
             26991          (iii) with registration that is suspended or revoked.
             26992          (2) If necessary for the transportation of a seized vessel, the vessel's trailer may be
             26993      seized to transport and store the vessel.

             26994          (3) Any peace officer seizing or taking possession of a vehicle, vessel, or outboard
             26995      motor under this section shall comply with the provisions of Section 41-6a-1406 .
             26996          (4) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             26997      Administrative Rulemaking Act, the commission shall make rules setting standards for public
             26998      garages, impound lots, and impound yards that may be used by peace officers and the division.
             26999          (b) The standards shall be equitable, reasonable, and unrestrictive as to the number of
             27000      public garages, impound lots, or impound yards per geographical area.
             27001          (5) (a) Except as provided under Subsection (5)(b), a person may not operate or allow
             27002      to be operated a vehicle stored in a public garage, impound lot, or impound yard regulated
             27003      under this part without prior written permission of the owner of the vehicle.
             27004          (b) Incidental and necessary operation of a vehicle to move the vehicle from one
             27005      parking space to another within the facility and that is necessary for the normal management of
             27006      the facility is not prohibited under this Subsection (5)(a).
             27007          (6) A person who violates the provisions of Subsection (5) is guilty of a class C
             27008      misdemeanor.
             27009          (7) The division or the peace officer who seizes a vehicle shall record the mileage
             27010      shown on the vehicle's odometer at the time of seizure, if:
             27011          (a) the vehicle is equipped with an odometer; and
             27012          (b) the odometer reading is accessible to the division or the peace officer.
             27013          Section 553. Section 41-1a-1211 is amended to read:
             27014           41-1a-1211. License plate fees -- Application fees for issuance and renewal of
             27015      personalized and special group license plates -- Replacement fee for license plates --
             27016      Postage fees.
             27017          (1) Except as provided in Subsection (11), a license plate fee of $5 per set shall be paid
             27018      to the division for the issuance of any new license plate under Part 4, License Plates and
             27019      Registration Indicia. The license plate fee shall be deposited as follows:
             27020          (a) $4 as provided in Section 41-1a-1201 ; and
             27021          (b) $1 in the Transportation Fund.

             27022          (2) An applicant for original issuance of personalized license plates issued under Section
             27023      41-1a-410 shall pay a $50 per set license plate application fee in addition to the fee required in
             27024      Subsection (1).
             27025          (3) Beginning July 1, 2003, a person who applies for a special group license plate shall
             27026      pay a $5 fee for the original set of license plates in addition to the fee required under Subsection
             27027      (1).
             27028          (4) An applicant for original issuance of personalized special group license plates shall
             27029      pay the license plate application fees required in Subsection (2) in addition to the license plate
             27030      fees and license plate application fees established under Subsections (1) and (3).
             27031          (5) An applicant for renewal of personalized license plates issued under Section
             27032      41-1a-410 shall pay a $10 per set application fee.
             27033          (6) A fee of $5 shall be paid to the division for the replacement of any license plate
             27034      issued under Part 4, License Plates and Registration Indicia. The license plate fee shall be
             27035      deposited as follows:
             27036          (a) $4 as provided in Section 41-1a-1201 ; and
             27037          (b) $1 in the Transportation Fund.
             27038          (7) The division may charge a fee established under Section [ 63-38-3.2 ] 63J-1-303 to
             27039      recover its costs for the replacement of decals issued under Section 41-1a-418 .
             27040          (8) The division may charge a fee established under Section [ 63-38-3.2 ] 63J-1-303 to
             27041      recover the cost of issuing stickers under Section 41-1a-416 .
             27042          (9) In addition to any other fees required by this section, the division shall assess a fee
             27043      established under Section [ 63-38-3.2 ] 63J-1-303 to cover postage expenses if new or
             27044      replacement license plates are mailed to the applicant.
             27045          (10) The fees required under this section are separate from and in addition to
             27046      registration fees required under Section 41-1a-1206 .
             27047          (11) (a) An applicant for a license plate issued under Section 41-1a-407 is not subject to
             27048      the license plate fee under Subsection (1).
             27049          (b) An applicant for a Purple Heart special group license plate issued in accordance

             27050      with Section 41-1a-421 is exempt from the fees under Subsections (1), (3), and (7).
             27051          Section 554. Section 41-1a-1212 is amended to read:
             27052           41-1a-1212. Fee for replacement of license plate decals.
             27053          A fee established in accordance with Section [ 63-38-3.2 ] 63J-1-303 shall be paid to the
             27054      division for the replacement of a license plate decal required by Section 41-1a-402 .
             27055          Section 555. Section 41-1a-1221 is amended to read:
             27056           41-1a-1221. Fees to cover the cost of electronic payments.
             27057          (1) As used in this section:
             27058          (a) "Electronic payment" means use of any form of payment processed through
             27059      electronic means, including credit cards, debit cards, and automatic clearinghouse transactions.
             27060          (b) "Electronic payment fee" means the fee assessed to defray:
             27061          (i) the charge, discount fee, or processing fee charged by credit card companies or
             27062      processing agents to process an electronic payment; or
             27063          (ii) costs associated with the purchase of equipment necessary for processing electronic
             27064      payments.
             27065          (2) (a) The Motor Vehicle Division may collect an electronic payment fee on all
             27066      registrations and renewals of registration under Subsections 41-1a-1206 (1)(a), (1)(b), and (2).
             27067          (b) The fee described in Subsection (2)(a):
             27068          (i) shall be imposed regardless of the method of payment for a particular transaction;
             27069      and
             27070          (ii) need not be separately identified from the fees imposed for registration and renewals
             27071      of registration under Subsections 41-1a-1206 (1)(a), (1)(b), and (2).
             27072          (3) The division shall establish the fee according to the procedures and requirements of
             27073      Section [ 63-38-3.2 ] 63J-1-303 .
             27074          (4) A fee imposed under this section:
             27075          (a) shall be used by the division as a dedicated credit to cover the costs of electronic
             27076      payments;
             27077          (b) is nonlapsing; and

             27078          (c) is not subject to Subsection [ 63-38a-104 ] 63J-2-202 (2).
             27079          Section 556. Section 41-3-105 is amended to read:
             27080           41-3-105. Administrator's powers and duties -- Administrator and investigators
             27081      to be law enforcement officers.
             27082          (1) The administrator may make rules to carry out the purposes of this chapter and
             27083      Sections 41-1a-1001 through 41-1a-1007 according to the procedures and requirements of
             27084      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             27085          (2) (a) The administrator may employ clerks, deputies, and assistants necessary to
             27086      discharge the duties under this chapter and may designate the duties of those clerks, deputies,
             27087      and assistants.
             27088          (b) The administrator, assistant administrator, and all investigators shall be law
             27089      enforcement officers certified by peace officer standards and training as required by Section
             27090      53-13-103 .
             27091          (3) (a) The administrator may investigate any suspected or alleged violation of:
             27092          (i) this chapter;
             27093          (ii) Title 41, Chapter 1a, Motor Vehicle Act;
             27094          (iii) any law concerning motor vehicle fraud; or
             27095          (iv) any rule made by the administrator.
             27096          (b) The administrator may bring an action in the name of the state against any person to
             27097      enjoin a violation found under Subsection (3)(a).
             27098          (4) (a) The administrator may prescribe forms to be used for applications for licenses.
             27099          (b) The administrator may require information from the applicant concerning the
             27100      applicant's fitness to be licensed.
             27101          (c) Each application for a license shall contain:
             27102          (i) if the applicant is an individual, the name and residence address of the applicant and
             27103      the trade name, if any, under which [he] the applicant intends to conduct business;
             27104          (ii) if the applicant is a partnership, the name and residence address of each partner,
             27105      whether limited or general, and the name under which the partnership business will be

             27106      conducted;
             27107          (iii) if the applicant is a corporation, the name of the corporation, and the name and
             27108      residence address of each of its principal officers and directors;
             27109          (iv) a complete description of the principal place of business, including:
             27110          (A) the municipality, with the street and number, if any;
             27111          (B) if located outside of any municipality, a general description so that the location can
             27112      be determined; and
             27113          (C) any other places of business operated and maintained by the applicant in
             27114      conjunction with the principal place of business; and
             27115          (v) if the application is for a new motor vehicle dealer's license, the name of each motor
             27116      vehicle the applicant has been enfranchised to sell or exchange, the name and address of the
             27117      manufacturer or distributor who has enfranchised the applicant, and the names and addresses of
             27118      the individuals who will act as salespersons under authority of the license.
             27119          (5) The administrator may adopt a seal with the words "Motor Vehicle Enforcement
             27120      Administrator, State of Utah," to authenticate the acts of [his] the administrator's office.
             27121          (6) (a) The administrator may require that the licensee erect or post signs or devices on
             27122      [his] the licensee's principal place of business and any other sites, equipment, or locations
             27123      operated and maintained by the licensee in conjunction with [his] the licensee's business.
             27124          (b) The signs or devices shall state the licensee's name, principal place of business, type
             27125      and number of licenses, and any other information that the administrator considers necessary to
             27126      identify the licensee.
             27127          (c) The administrator may make rules in accordance with [Title 63, Chapter 46a] Title
             27128      63G, Chapter 3, Utah Administrative Rulemaking Act, determining allowable size and shape of
             27129      signs or devices, their lettering and other details, and their location.
             27130          (7) (a) The administrator shall provide for quarterly meetings of the advisory board and
             27131      may call special meetings.
             27132          (b) Notices of all meetings shall be sent to each member not fewer than five days prior
             27133      to the meeting.

             27134          (8) The administrator, the officers and inspectors of the division designated by the
             27135      commission, and peace officers shall:
             27136          (a) make arrests upon view and without warrant for any violation committed in their
             27137      presence of any of the provisions of this chapter, or Title 41, Chapter 1a, Motor Vehicle Act;
             27138          (b) when on duty, upon reasonable belief that a motor vehicle, trailer, or semitrailer is
             27139      being operated in violation of any provision of Title 41, Chapter 1a, Motor Vehicle Act, require
             27140      the driver of the vehicle to stop, exhibit [his driver's] the person's driver license and the
             27141      registration card issued for the vehicle and submit to an inspection of the vehicle, the license
             27142      plates, and registration card;
             27143          (c) serve all warrants relating to the enforcement of the laws regulating the operation of
             27144      motor vehicles, trailers, and semitrailers;
             27145          (d) investigate traffic accidents and secure testimony of witnesses or persons involved;
             27146      and
             27147          (e) investigate reported thefts of motor vehicles, trailers, and semitrailers.
             27148          (9) The administrator may contract with a public prosecutor to provide additional
             27149      prosecution of this chapter.
             27150          Section 557. Section 41-3-109 is amended to read:
             27151           41-3-109. Adjudicative proceedings -- Hearings.
             27152          (1) The commission, the division, the board, and the administrator shall comply with the
             27153      procedures and requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             27154      Procedures Act, in all adjudicative proceedings conducted under the authority of this chapter
             27155      and Sections 41-1a-1001 through 41-1a-1008 .
             27156          (2) The administrator may request the attendance of the board at any hearing, or [he]
             27157      the administrator may direct that any hearing be held before the board.
             27158          Section 558. Section 41-3-202 is amended to read:
             27159           41-3-202. Licenses -- Classes and scope.
             27160          (1) A new motor vehicle dealer's license permits the licensee to:
             27161          (a) offer for sale, sell, or exchange new motor vehicles if the licensee possesses a

             27162      franchise from the manufacturer of the motor vehicle offered for sale, sold, or exchanged by the
             27163      licensee;
             27164          (b) offer for sale, sell, or exchange used motor vehicles;
             27165          (c) operate as a body shop; and
             27166          (d) dismantle motor vehicles.
             27167          (2) A used motor vehicle dealer's license permits the licensee to:
             27168          (a) offer for sale, sell, or exchange used motor vehicles;
             27169          (b) operate as a body shop; and
             27170          (c) dismantle motor vehicles.
             27171          (3) A new motorcycle, off-highway vehicle, and small trailer dealer's license permits the
             27172      licensee to:
             27173          (a) offer for sale, sell, or exchange new motorcycles, off-highway vehicles, or small
             27174      trailers if the licensee possesses a franchise from the manufacturer of the motorcycle,
             27175      off-highway vehicle, or small trailer offered for sale, sold, or exchanged by the licensee;
             27176          (b) offer for sale, sell, or exchange used motorcycles, off-highway vehicles, or small
             27177      trailers; and
             27178          (c) dismantle motorcycles, off-highway vehicles, or small trailers.
             27179          (4) A used motorcycle, off-highway vehicle, and small trailer dealer's license permits
             27180      the licensee to:
             27181          (a) offer for sale, sell, or exchange used motorcycles, off-highway vehicles, and small
             27182      trailers; and
             27183          (b) dismantle motorcycles, off-highway vehicles, or small trailers.
             27184          (5) A salesperson's license permits the licensee to act as a motor vehicle salesperson and
             27185      is valid for employment with only one dealer at a time.
             27186          (6) (a) A manufacturer's license permits the licensee to construct or assemble motor
             27187      vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, at an established
             27188      place of business and to remanufacture motor vehicles.
             27189          (b) Under rules made by the administrator, the licensee may issue and install vehicle

             27190      identification numbers on manufactured motor vehicles.
             27191          (c) The licensee may franchise and appoint dealers to sell manufactured motor vehicles
             27192      by notifying the division of the franchise or appointment.
             27193          (7) A transporter's license permits the licensee to transport or deliver motor vehicles
             27194      subject to registration under Title 41, Chapter 1a, Motor Vehicle Act, from a manufacturing,
             27195      assembling, or distributing point or from a dealer, to dealers, distributors, or sales agents of a
             27196      manufacturer or remanufacturer, to or from detail or repair shops, and to financial institutions
             27197      or places of storage from points of repossession.
             27198          (8) A dismantler's license permits the licensee to dismantle motor vehicles subject to
             27199      registration under Title 41, Chapter 1a, Motor Vehicle Act, for the purpose of reselling parts or
             27200      for salvage, or selling dismantled or salvage vehicles to a crusher or other dismantler.
             27201          (9) A distributor or factory branch and distributor branch's license permits the licensee
             27202      to sell and distribute new motor vehicles, parts, and accessories to their franchised dealers.
             27203          (10) A representative's license, for factory representatives or distributor representatives
             27204      permits the licensee to contact [his] the licensee's authorized dealers for the purpose of making
             27205      or promoting the sale of motor vehicles, parts, and accessories.
             27206          (11) (a) (i) A remanufacturer's license permits the licensee to construct, reconstruct,
             27207      assemble, or reassemble motor vehicles subject to registration under Title 41, Chapter 1a,
             27208      Motor Vehicle Act, from used or new motor vehicles or parts.
             27209          (ii) Evidence of ownership of parts and motor vehicles used in remanufacture shall be
             27210      available to the division upon demand.
             27211          (b) Under rules made by the administrator, the licensee may issue and install vehicle
             27212      identification numbers on remanufactured motor vehicles.
             27213          (12) A crusher's license permits the licensee to engage in the business of crushing or
             27214      shredding motor vehicles subject to registration under Title 41, Chapter 1a, Motor Vehicle Act,
             27215      for the purpose of reducing the useable materials and metals to a more compact size for
             27216      recycling.
             27217          (13) A body shop's license permits the licensee to rebuild, restore, repair, or paint

             27218      primarily the body of motor vehicles damaged by collision or natural disaster, and to dismantle
             27219      motor vehicles.
             27220          (14) A special equipment dealer's license permits the licensee to:
             27221          (a) buy incomplete new motor vehicles with a gross vehicle weight of 12,000 or more
             27222      pounds from a new motor vehicle dealer and sell the new vehicle with the special equipment
             27223      installed without a franchise from the manufacturer;
             27224          (b) offer for sale, sell, or exchange used motor vehicles;
             27225          (c) operate as a body shop; and
             27226          (d) dismantle motor vehicles.
             27227          (15) (a) A salvage vehicle buyer license permits the licensee to bid on or purchase a
             27228      vehicle with a salvage certificate as defined in Section 41-1a-1001 at any motor vehicle auction.
             27229          (b) A salvage vehicle buyer license may only be issued to a motor vehicle dealer,
             27230      dismantler, or body shop who qualifies under rules made by the division and is licensed in any
             27231      state as a motor vehicle dealer, dismantler, or body shop.
             27232          (c) The division may not issue more than two salvage vehicle buyer licenses to any one
             27233      dealer, dismantler, or body shop.
             27234          (d) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             27235      Administrative Rulemaking Act, the administrator shall make rules establishing qualifications of
             27236      an applicant for a salvage vehicle buyer license. The criteria shall include:
             27237          (i) business history;
             27238          (ii) salvage vehicle qualifications;
             27239          (iii) ability to properly handle and dispose of environmental hazardous materials
             27240      associated with salvage vehicles; and
             27241          (iv) record in demonstrating compliance with the provisions of this chapter.
             27242          Section 559. Section 41-3-209 is amended to read:
             27243           41-3-209. Administrator's findings -- Suspension and revocation of license.
             27244          (1) If the administrator finds that an applicant is not qualified to receive a license, a
             27245      license may not be granted.

             27246          (2) (a) If the administrator finds that there is reasonable cause to deny, suspend, or
             27247      revoke a license issued under this chapter, the administrator shall deny, suspend, or revoke the
             27248      license.
             27249          (b) Reasonable cause for denial, suspension, or revocation of a license includes, in
             27250      relation to the applicant or license holder or any of its partners, officers, or directors:
             27251          (i) lack of a principal place of business;
             27252          (ii) lack of a sales tax license required under Title 59, Chapter 12, Sales and Use Tax
             27253      Act;
             27254          (iii) lack of a bond in effect as required by this chapter;
             27255          (iv) current revocation or suspension of a dealer, dismantler, auction, or salesperson
             27256      license issued in another state;
             27257          (v) nonpayment of required fees;
             27258          (vi) making a false statement on any application for a license under this chapter or for
             27259      special license plates;
             27260          (vii) a violation of any state or federal law involving motor vehicles;
             27261          (viii) a violation of any state or federal law involving controlled substances;
             27262          (ix) charges filed with any county attorney, district attorney, or U.S. attorney in any
             27263      court of competent jurisdiction for a violation of any state or federal law involving motor
             27264      vehicles;
             27265          (x) a violation of any state or federal law involving fraud; or
             27266          (xi) a violation of any state or federal law involving a registerable sex offense under
             27267      Section 77-27-21.5 .
             27268          (c) Any action taken by the administrator under Subsection (2)(b)(ix) shall remain in
             27269      effect until a final resolution is reached by the court involved or the charges are dropped.
             27270          (3) If the administrator finds that the license holder has been convicted by a court of
             27271      competent jurisdiction of violating any of the provisions of this chapter or any rules made by the
             27272      administrator, or finds other reasonable cause, the administrator may, by complying with the
             27273      emergency procedures of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative

             27274      Procedures Act:
             27275          (a) suspend the license on terms and for a period of time [he] the administrator finds
             27276      reasonable; or
             27277          (b) revoke the license.
             27278          (4) (a) After suspending or revoking a license, the administrator may take reasonable
             27279      action to:
             27280          (i) notify the public that the licensee is no longer in business; and
             27281          (ii) prevent the former licensee from violating the law by conducting business without a
             27282      license.
             27283          (b) Action under Subsection (4)(a) may include signs, banners, barriers, locks, bulletins,
             27284      and notices.
             27285          (c) Any business being conducted incidental to the business for which the former
             27286      licensee was licensed may continue to operate subject to the preventive action taken under this
             27287      subsection.
             27288          Section 560. Section 41-3-301 is amended to read:
             27289           41-3-301. Sale by dealer, sale by auction -- Temporary permit -- Delivery of
             27290      certificate of title or origin -- Notice to division.
             27291          (1) (a) Each dealer licensed under Part 2, Licensing, upon the sale and delivery of any
             27292      motor vehicle for which a temporary permit is issued under Section 41-3-302 shall within 45
             27293      days submit a certificate of title or manufacturer's certificate of origin for that motor vehicle,
             27294      endorsed according to law, to the Motor Vehicle Division, accompanied by all documents
             27295      required to obtain a new certificate of title and registration in the new owner's name.
             27296          (b) If a temporary permit is not issued, the certificate of title or manufacturer's
             27297      certificate of origin shall be delivered to the vendee, endorsed according to law, within 48
             27298      hours, unless the vendee is a dealer or dismantler in which case the title or manufacturer's
             27299      certificate of origin shall be delivered within 21 days.
             27300          (c) (i) A motor vehicle consigned to an auction and sold is considered sold by the
             27301      consignor to the auction and then sold by the auction to the consignee.

             27302          (ii) Both the consignor and auction are subject to this section.
             27303          (d) (i) (A) A motor vehicle consigned to a wholesale motor vehicle auction and sold to
             27304      a licensed dealer or dismantler is considered sold by the consignor to the licensed dealer or
             27305      dismantler.
             27306          (B) Both the consignor and the wholesale motor vehicle auction are subject to the title
             27307      delivery requirements of Subsection (1)(b).
             27308          (C) The consignor, or the wholesale motor vehicle auction as the consignor's agent,
             27309      shall endorse the certificate of title according to law. By endorsing the certificate of title as
             27310      agent of the consignor, the wholesale motor vehicle auction does not become the owner, seller,
             27311      or assignor of title.
             27312          (ii) (A) A wholesale motor vehicle auction may purchase or sell motor vehicles in its
             27313      own name.
             27314          (B) If a wholesale motor vehicle auction purchases or sells a motor vehicle in its own
             27315      name, the wholesale motor vehicle auction is subject to Subsections (1)(a) and (1)(b).
             27316          (2) (a) (i) Each dealer licensed under Part 2, Licensing, upon the sale and delivery of a
             27317      motor vehicle for which a temporary permit is issued under Section 41-3-302 , shall within 45
             27318      days give written notice of the sale to the Motor Vehicle Division upon a form provided by the
             27319      Motor Vehicle Division.
             27320          (ii) The notice shall contain:
             27321          (A) the date of the sale;
             27322          (B) the names and addresses of the dealer and the purchaser;
             27323          (C) a description of the motor vehicle;
             27324          (D) the motor vehicle's odometer reading at the time of the sale; and
             27325          (E) other information required by the division.
             27326          (b) If no temporary permit is issued, the notice shall be filed with the division within 45
             27327      days after the sale, and a duplicate copy shall be given to the purchaser at the time of sale,
             27328      unless the purchaser is a dealer or dismantler.
             27329          (c) The administrator may make rules in accordance with [Title 63, Chapter 46a] Title

             27330      63G, Chapter 3, Utah Administrative Rulemaking Act, providing that the notice required under
             27331      Subsections (2)(a) and (2)(b) may be filed in electronic form or on magnetic media.
             27332          Section 561. Section 41-3-302 is amended to read:
             27333           41-3-302. Temporary permits -- Purchasers of motor vehicles -- Penalty for use
             27334      after expiration -- Sale and rescission.
             27335          (1) (a) (i) A dealer or the division may issue a temporary permit.
             27336          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             27337      Administrative Rulemaking Act, the administrator shall makes rules for the issuance of a
             27338      temporary permit under Subsection (1)(a)(i).
             27339          (iii) The division shall furnish the forms for temporary permits issued by dealers under
             27340      Subsection (1)(a)(i).
             27341          (b) A dealer may issue a temporary permit to a bona fide purchaser of a motor vehicle
             27342      for a period not to exceed 45 days on a motor vehicle sold to the purchaser by the dealer.
             27343          (c) The dealer is responsible and liable for the registration fee of each motor vehicle for
             27344      which the permit is issued.
             27345          (d) All issued temporary permits that are outstanding after 45 days from the date they
             27346      are issued are delinquent and a penalty equal to the registration fee shall be collected from the
             27347      issuing dealer.
             27348          (2) If a temporary permit is issued by a dealer under this section and the sale of the
             27349      motor vehicle is subsequently rescinded, the temporary permit may be voided and the issuing
             27350      dealer is not liable for the registration fee or penalty.
             27351          Section 562. Section 41-3-304 is amended to read:
             27352           41-3-304. Temporary permits -- Temporary sports event registration certificate --
             27353      Suspension or revocation of dealer's authority to issue -- Return of temporary permits to
             27354      division -- Refunds -- Appeal.
             27355          (1) The division may suspend or revoke a dealer's authority to issue a temporary permit
             27356      or a temporary sports event registration certificate under this part if the division determines the
             27357      dealer has failed to comply with this chapter or with any rules made by the commission under

             27358      this part.
             27359          (2) (a) Suspension or revocation of authority to issue a temporary permit or a
             27360      temporary sports event registration certificate takes effect immediately upon written notification
             27361      to the dealer by the division.
             27362          (b) Upon notification, the dealer shall immediately return all temporary permits to the
             27363      division.
             27364          (c) Subject to Subsection (2)(d), if the authority to issue a temporary permit under
             27365      Section 41-3-302 is revoked or suspended for more than 30 days, the dealer may apply for a
             27366      refund of the money paid to the division only for temporary permits described in Section
             27367      41-3-302 that are returned prior to issuance.
             27368          (d) Temporary permits being returned may not have ever been issued, written on, or
             27369      separated from their stubs, and shall be in useable condition.
             27370          (3) If the division suspends or revokes a dealer's authority to issue a temporary permit
             27371      or a temporary sports event registration certificate as provided in this section, each of the
             27372      following is a violation of this chapter and grounds for automatic suspension of the dealer's
             27373      license:
             27374          (a) failure to return a temporary permit to the division as provided in this section; or
             27375          (b) issuing a:
             27376          (i) temporary permit; or
             27377          (ii) temporary sports event registration certificate.
             27378          (4) (a) A dealer may appeal the division's suspension or revocation by filing a written
             27379      appeal with the administrator within ten days of the suspension or revocation.
             27380          (b) Upon receiving the dealer's written appeal, the administrator shall set a hearing for
             27381      not more than 20 days from the date the written appeal is received.
             27382          (c) A hearing or appeal under this section shall be conducted in accordance with [Title
             27383      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             27384          Section 563. Section 41-3-306 is amended to read:
             27385           41-3-306. Temporary sports event registration -- Definitions -- Issuance -- Fees --

             27386      Expiration -- Rulemaking authority.
             27387          (1) As used in this section:
             27388          (a) "Distributor-provided vehicle" means a motor vehicle:
             27389          (i) that has never been titled or registered in any state; and
             27390          (ii) the use of which is donated by a distributor licensed under Part 2, Licensing,
             27391      through a dealer licensed under Part 2, Licensing.
             27392          (b) (i) "Event period" means a time period:
             27393          (A) during which a sports event takes place;
             27394          (B) not to exceed 180 consecutive calendar days; and
             27395          (C) specified by the division on a temporary sports event registration certificate.
             27396          (ii) "Event period" may include one or more of the following time periods if the division
             27397      determines that good cause exists for including the time period within the event period:
             27398          (A) a reasonable time period before a sports event as determined by the division; or
             27399          (B) a reasonable time period after a sports event as determined by the division.
             27400          (c) (i) Notwithstanding Section 41-3-102 and except as provided in Subsection
             27401      (1)(c)(ii), "motor vehicle" means a motor vehicle that is subject to the uniform fee imposed by
             27402      Section 59-2-405.1 .
             27403          (ii) "Motor vehicle" does not include a state-assessed commercial vehicle as defined in
             27404      Section 59-2-102 .
             27405          (d) (i) "Sports event" means an amateur or professional:
             27406          (A) sports:
             27407          (I) game;
             27408          (II) race; or
             27409          (III) contest; or
             27410          (B) athletic:
             27411          (I) game;
             27412          (II) race; or
             27413          (III) contest.

             27414          (ii) "Sports event" includes a game, race, or contest described in Subsection (1)(d)(i)
             27415      that is:
             27416          (A) an independent game, race, or contest; or
             27417          (B) a part of another event or activity regardless of whether the other event or activity
             27418      is an event or activity relating to sports or athletics.
             27419          (e) "Temporary sports event registration certificate" means a motor vehicle certificate
             27420      of registration issued by the division to a dealer in accordance with this section.
             27421          (2) Beginning on September 1, 2001, the division may register a motor vehicle for an
             27422      event period by issuing to a dealer licensed under Part 2, Licensing, a temporary sports event
             27423      registration certificate if the division determines that:
             27424          (a) the motor vehicle is a distributor-provided vehicle;
             27425          (b) the motor vehicle will be used for a sports event within the state during the event
             27426      period; and
             27427          (c) the dealer provides the division an application stating:
             27428          (i) the person to whom the distributor is donating use of the motor vehicle;
             27429          (ii) the motor vehicle identification number;
             27430          (iii) the motor vehicle:
             27431          (A) make;
             27432          (B) model; and
             27433          (C) year;
             27434          (iv) the name of the sports event;
             27435          (v) the beginning date and ending date of the sports event; and
             27436          (vi) any other information the division requires.
             27437          (3) If the division issues a temporary sports event registration certificate to a dealer
             27438      licensed under Part 2, Licensing:
             27439          (a) the division:
             27440          (i) shall specify the event period on the temporary sports event registration certificate;
             27441      and

             27442          (ii) may specify any other information on the temporary sports event registration
             27443      certificate as determined by the division; and
             27444          (b) the dealer shall for each motor vehicle for which the division issues a temporary
             27445      sports event registration certificate:
             27446          (i) pay the:
             27447          (A) registration fees required by Chapter 1a, Part 12, Fee and Tax Requirements; and
             27448          (B) uniform fee required by Section 59-2-405.1 ; and
             27449          (ii) place the temporary sports event registration certificate in the rear license plate
             27450      holder of the motor vehicle.
             27451          (4) A temporary sports event registration certificate issued by the division under this
             27452      section is valid for the event period specified on the temporary sports event registration
             27453      certificate.
             27454          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             27455      Administrative Rulemaking Act, the commission may make rules:
             27456          (a) specifying the information to be provided to the division by a dealer or a person
             27457      using a distributor-provided vehicle in connection with the issuance of a temporary sports event
             27458      registration certificate;
             27459          (b) specifying the form for a temporary sports event registration certificate; or
             27460          (c) defining the terms:
             27461          (i) "reasonable time period before a sports event"; and
             27462          (ii) "reasonable time period after a sports event."
             27463          Section 564. Section 41-3-601 is amended to read:
             27464           41-3-601. Fees.
             27465          (1) To pay for administering and enforcing this chapter, the administrator shall collect
             27466      fees determined by the commission under Section [ 63-38-3.2 ] 63J-1-303 for each of the
             27467      following:
             27468          (a) new motor vehicle dealer's license;
             27469          (b) used motor vehicle dealer's license;

             27470          (c) new motorcycle, off-highway vehicle, and small trailer dealer;
             27471          (d) used motorcycle, off-highway vehicle, and small trailer dealer;
             27472          (e) motor vehicle salesperson's license;
             27473          (f) motor vehicle salesperson's transfer or reissue fee;
             27474          (g) motor vehicle manufacturer's license;
             27475          (h) motor vehicle transporter's license;
             27476          (i) motor vehicle dismantler's license;
             27477          (j) motor vehicle crusher's license;
             27478          (k) motor vehicle remanufacturer's license;
             27479          (l) body shop's license;
             27480          (m) distributor or factory branch and distributor branch's license;
             27481          (n) representative's license;
             27482          (o) dealer plates;
             27483          (p) dismantler plates;
             27484          (q) manufacturer plates;
             27485          (r) transporter plates;
             27486          (s) damaged plate replacement;
             27487          (t) in-transit permits;
             27488          (u) loaded demonstration permits;
             27489          (v) additional place of business;
             27490          (w) special equipment dealer's license;
             27491          (x) temporary permits; and
             27492          (y) temporary sports event registration certificates.
             27493          (2) (a) To pay for training certified vehicle inspectors and enforcement under Sections
             27494      41-1a-1001 through 41-1a-1008 , the State Tax Commission shall establish and the
             27495      administrator shall collect inspection fees determined by the commission under Section
             27496      [ 63-38-3.2 ] 63J-1-303 .
             27497          (b) The division shall use fees collected under Subsection (2)(a) as nonlapsing dedicated

             27498      credits to be used toward the costs of the division.
             27499          (3) (a) At the time of application, the administrator shall collect a fee of $200 for each
             27500      salvage vehicle buyer license.
             27501          (b) The administrator may retain a portion of the fee under Subsection (3)(a) to offset
             27502      the administrator's actual costs of administering and enforcing salvage vehicle buyer licenses.
             27503          (4) The division shall use fees collected under Subsections (1)(x) and (y) as nonlapsing
             27504      dedicated credits to be used toward the costs of the division.
             27505          Section 565. Section 41-3-604 is amended to read:
             27506           41-3-604. Fee to cover the cost of electronic payments.
             27507          (1) As used in this section:
             27508          (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221 .
             27509          (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221 .
             27510          (2) (a) The division may collect a fee to cover the cost of electronic payments on the
             27511      following transactions:
             27512          (i) each purchase or renewal of a license under Section 41-3-202 ;
             27513          (ii) each purchase of a book of temporary permits under Section 41-3-302 ;
             27514          (iii) each penalty issued for a delinquent temporary permit under Section 41-3-302 ;
             27515          (iv) each purchase of an in-transit permit under Section 41-3-305 ;
             27516          (v) each purchase of a loaded demonstration permit under Section 41-3-502 ;
             27517          (vi) each purchase of a license plate under Section 41-3-503 ; and
             27518          (vii) each purchase of a salvage vehicle buyer license under Section 41-3-202 .
             27519          (b) The fee described in Subsection (2)(a):
             27520          (i) shall be imposed regardless of the method of payment for a particular transaction;
             27521      and
             27522          (ii) need not be separately identified from the fees and penalty described in Subsections
             27523      (2)(a)(i) through (vii).
             27524          (3) The division shall establish the fee under Subsection (2)(a) according to the
             27525      procedures and requirements of Section [ 63-38-3.2 ] 63J-1-303 .

             27526          (4) A fee imposed under this section:
             27527          (a) shall be used by the division as a dedicated credit to cover the costs of electronic
             27528      payments;
             27529          (b) is nonlapsing; and
             27530          (c) is not subject to Subsection [ 63-38a-104 ] 63J-2-202 (2).
             27531          Section 566. Section 41-6a-212 is amended to read:
             27532           41-6a-212. Emergency vehicles -- Policy regarding vehicle pursuits --
             27533      Applicability of traffic law to highway work vehicles -- Exemptions.
             27534          (1) Subject to Subsections (2) through (5), the operator of an authorized emergency
             27535      vehicle may exercise the privileges granted under this section when:
             27536          (a) responding to an emergency call;
             27537          (b) in the pursuit of an actual or suspected violator of the law; or
             27538          (c) responding to but not upon returning from a fire alarm.
             27539          (2) The operator of an authorized emergency vehicle may:
             27540          (a) park or stand, irrespective of the provisions of this chapter;
             27541          (b) proceed past a red or stop signal or stop sign, but only after slowing down as may
             27542      be necessary for safe operation;
             27543          (c) exceed the maximum speed limits, unless prohibited by a local highway authority
             27544      under Section 41-6a-208 ; or
             27545          (d) disregard regulations governing direction of movement or turning in specified
             27546      directions.
             27547          (3) (a) Except as provided in Subsection (3)(b), privileges granted under this section to
             27548      the operator of an authorized emergency vehicle, who is not involved in a vehicle pursuit, apply
             27549      only when:
             27550          (i) the operator of the vehicle sounds an audible signal under Section 41-6a-1625 ; or
             27551          (ii) uses a visual signal with emergency lights in accordance with rules made under
             27552      Section 41-6a-1601 , which is visible from in front of the vehicle.
             27553          (b) An operator of an authorized emergency vehicle may exceed the maximum speed

             27554      limit when engaged in normal patrolling activities with the purpose of identifying and
             27555      apprehending violators.
             27556          (4) Privileges granted under this section to the operator of an authorized emergency
             27557      vehicle involved in any vehicle pursuit apply only when:
             27558          (a) the operator of the vehicle:
             27559          (i) sounds an audible signal under Section 41-6a-1625 ; and
             27560          (ii) uses a visual signal with emergency lights in accordance with rules made under
             27561      Section 41-6a-1601 , which is visible from in front of the vehicle;
             27562          (b) the public agency employing the operator of the vehicle has, in effect, a written
             27563      policy which describes the manner and circumstances in which any vehicle pursuit should be
             27564      conducted and terminated;
             27565          (c) the operator of the vehicle has been trained in accordance with the written policy
             27566      described in Subsection (4)(b); and
             27567          (d) the pursuit policy of the public agency is in conformance with standards established
             27568      under Subsection (5).
             27569          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             27570      Administrative Rulemaking Act, the Department of Public Safety shall make rules providing
             27571      minimum standards for all emergency pursuit policies that are adopted by public agencies
             27572      authorized to operate emergency pursuit vehicles.
             27573          (6) The privileges granted under this section do not relieve the operator of an
             27574      authorized emergency vehicle of the duty to act as a reasonably prudent emergency vehicle
             27575      operator in like circumstances.
             27576          (7) Except for Sections 41-6a-210 , 41-6a-502 , and 41-6a-528 , this chapter does not
             27577      apply to persons, motor vehicles, and other equipment while actually engaged in work on the
             27578      surface of a highway.
             27579          Section 567. Section 41-6a-301 is amended to read:
             27580           41-6a-301. Standards and specifications for uniform system of traffic-control
             27581      devices and school crossing guards.

             27582          (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             27583      Administrative Rulemaking Act, the Department of Transportation shall make rules consistent
             27584      with this chapter adopting standards and establishing specifications for a uniform system of
             27585      traffic-control devices used on a highway.
             27586          (2) The standards and specifications adopted under Subsection (1) shall:
             27587          (a) include provisions for school crossing zones and use of school crossing guards; and
             27588          (b) correlate with, and where possible conform to, the system set forth in the most
             27589      recent edition of the "Manual on Uniform Traffic Control Devices for Streets and Highways"
             27590      and other standards issued or endorsed by the federal highway administrator.
             27591          Section 568. Section 41-6a-303 is amended to read:
             27592           41-6a-303. Definition of reduced speed school zone -- Operation of warning lights
             27593      -- School crossing guard requirements -- Responsibility provisions -- Rulemaking
             27594      authority.
             27595          (1) As used in this section "reduced speed school zone" means a designated length of a
             27596      highway extending from a school zone speed limit sign with warning lights operating to an end
             27597      school zone sign.
             27598          (2) The Department of Transportation for state highways and local highway authorities
             27599      for highways under their jurisdiction:
             27600          (a) shall establish reduced speed school zones at elementary schools after written
             27601      assurance by a local highway authority that the local highway authority complies with
             27602      Subsections (3) and (4); and
             27603          (b) may establish reduced speed school zones for secondary schools at the request of
             27604      the local highway authority.
             27605          (3) For all reduced speed school zones on highways, including state highways within the
             27606      jurisdictional boundaries of a local highway authority, the local highway authority shall:
             27607          (a) (i) provide shuttle service across highways for school children; or
             27608          (ii) provide, train, and supervise school crossing guards in accordance with this section;
             27609          (b) provide for the:

             27610          (i) operation of reduced speed school zones, including providing power to warning
             27611      lights and turning on and off the warning lights as required under Subsections (4) and (5); and
             27612          (ii) maintenance of reduced speed school zones except on state highways as provided in
             27613      Section 41-6a-302 ; and
             27614          (c) notify the Department of Transportation of reduced speed school zones on state
             27615      highways that are in need of maintenance.
             27616          (4) While children are going to or leaving school during opening and closing hours all
             27617      reduced speed school zones shall have:
             27618          (a) the warning lights operating on each school zone speed limit sign; and
             27619          (b) a school crossing guard present if the reduced speed school zone is for an
             27620      elementary school.
             27621          (5) The warning lights on a school zone speed limit sign may not be operating except as
             27622      provided under Subsection (4).
             27623          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             27624      Administrative Rulemaking Act, the Department of Transportation shall make rules establishing
             27625      criteria and specifications for the:
             27626          (a) establishment, location, and operation of school crosswalks, school zones, and
             27627      reduced speed school zones;
             27628          (b) training, use, and supervision of school crossing guards at elementary schools and
             27629      secondary schools; and
             27630          (c) content and implementation of child access routing plans under Section 53A-3-402 .
             27631          (7) Each local highway authority shall pay for providing, training, and supervising
             27632      school crossing guards in accordance with this section.
             27633          Section 569. Section 41-6a-403 (Superseded 07/01/08) is amended to read:
             27634           41-6a-403 (Superseded 07/01/08). Vehicle accidents -- Investigation and report of
             27635      operator security -- Agency action if no security -- Surrender of plates -- Penalties.
             27636          (1) (a) Upon request of a peace officer investigating an accident involving a motor
             27637      vehicle, the operator of the motor vehicle shall provide evidence of the owner's or operator's

             27638      security required under Section 41-12a-301 .
             27639          (b) The evidence of owner's or operator's security includes information specified under
             27640      Section 41-12a-303.2 .
             27641          (2) The peace officer shall record on a form approved by the department:
             27642          (a) the information provided by the operator;
             27643          (b) whether the operator provided insufficient or no information;
             27644          (c) whether the officer finds reasonable cause to believe that any information given is not
             27645      correct; and
             27646          (d) whether other information available to the peace officer indicates that owner's or
             27647      operator's security is in effect.
             27648          (3) The peace officer shall deposit all completed forms with the peace officer's law
             27649      enforcement agency, which shall forward the forms to the department no later than ten days
             27650      after receipt.
             27651          (4) (a) The department shall within ten days of receipt of the forms from the law
             27652      enforcement agency take action as follows:
             27653          (i) if the operator provided no information under Subsection (1) and other information
             27654      available to the peace officer does not indicate that owner's or operator's security is in effect, the
             27655      department shall take direct action under Subsection 53-3-221 (12); or
             27656          (ii) if the peace officer noted or the department determines that there is reasonable
             27657      cause to believe that the information given under Subsection (1) is not correct, the department
             27658      shall contact directly the insurance company or other provider of security as described in
             27659      Section 41-12a-303.2 and request verification of the accuracy of the information submitted as of
             27660      the date of the accident.
             27661          (b) The department may require the verification under Subsection (4)(a)(ii) to be in a
             27662      form specified by the department.
             27663          (c) The insurance company or other provider of security shall return the verification to
             27664      the department within 30 days of receipt of the request.
             27665          (d) If the department does not receive verification within 35 days after sending the

             27666      request, or within the 35 days receives notice that the information was not correct, the
             27667      department shall take action under Subsection 53-3-221 (12).
             27668          (5) (a) The owner of a vehicle with unexpired license plates for which security is not
             27669      provided as required under this chapter shall return the plates for the vehicle to the Motor
             27670      Vehicle Division unless specifically permitted by statute to retain them.
             27671          (b) If the owner fails to return the plates as required, the plates shall be confiscated
             27672      under Section 53-3-226 .
             27673          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             27674      Administrative Rulemaking Act, the department may make rules for the enforcement of this
             27675      section.
             27676          (7) A person is guilty of a class B misdemeanor, and shall be fined not less than $100,
             27677      who:
             27678          (a) when requested to provide security information under Subsection (1), or Section
             27679      41-12a-303.2 , provides false information;
             27680          (b) falsely represents to the department that security required under this chapter is in
             27681      effect; or
             27682          (c) sells a vehicle to avoid the penalties of this section as applicable either to himself or
             27683      a third party.
             27684          Section 570. Section 41-6a-403 (Effective 07/01/08) is amended to read:
             27685           41-6a-403 (Effective 07/01/08). Vehicle accidents -- Investigation and report of
             27686      operator security -- Agency action if no security -- Surrender of plates -- Penalties.
             27687          (1) (a) Upon request of a peace officer investigating an accident involving a motor
             27688      vehicle, the operator of the motor vehicle shall provide evidence of the owner's or operator's
             27689      security required under Section 41-12a-301 .
             27690          (b) The evidence of owner's or operator's security includes information specified under
             27691      Section 41-12a-303.2 .
             27692          (2) The peace officer shall record on a form approved by the department:
             27693          (a) the information provided by the operator;

             27694          (b) whether the operator provided insufficient or no information;
             27695          (c) whether the officer finds reasonable cause to believe that any information given is
             27696      not correct; and
             27697          (d) whether other information available to the peace officer indicates that owner's or
             27698      operator's security is in effect.
             27699          (3) The peace officer shall deposit all completed forms with the peace officer's law
             27700      enforcement agency, which shall forward the forms to the department no later than ten days
             27701      after receipt.
             27702          (4) (a) The department shall within ten days of receipt of the forms from the law
             27703      enforcement agency take action as follows:
             27704          (i) if the operator provided no information under Subsection (1) and other information
             27705      available to the peace officer does not indicate that owner's or operator's security is in effect, the
             27706      department shall take direct action under Subsection 53-3-221 (13); or
             27707          (ii) if the peace officer noted or the department determines that there is reasonable
             27708      cause to believe that the information given under Subsection (1) is not correct, the department
             27709      shall contact directly the insurance company or other provider of security as described in
             27710      Section 41-12a-303.2 and request verification of the accuracy of the information submitted as of
             27711      the date of the accident.
             27712          (b) The department may require the verification under Subsection (4)(a)(ii) to be in a
             27713      form specified by the department.
             27714          (c) The insurance company or other provider of security shall return the verification to
             27715      the department within 30 days of receipt of the request.
             27716          (d) If the department does not receive verification within 35 days after sending the
             27717      request, or within the 35 days receives notice that the information was not correct, the
             27718      department shall take action under Subsection 53-3-221 (13).
             27719          (5) (a) The owner of a vehicle with unexpired license plates for which security is not
             27720      provided as required under this chapter shall return the plates for the vehicle to the Motor
             27721      Vehicle Division unless specifically permitted by statute to retain them.

             27722          (b) If the owner fails to return the plates as required, the plates shall be confiscated
             27723      under Section 53-3-226 .
             27724          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             27725      Administrative Rulemaking Act, the department may make rules for the enforcement of this
             27726      section.
             27727          (7) A person is guilty of a class B misdemeanor, and shall be fined not less than $100,
             27728      who:
             27729          (a) when requested to provide security information under Subsection (1), or Section
             27730      41-12a-303.2 , provides false information;
             27731          (b) falsely represents to the department that security required under this chapter is in
             27732      effect; or
             27733          (c) sells a vehicle to avoid the penalties of this section as applicable either to himself or
             27734      a third party.
             27735          Section 571. Section 41-6a-404 is amended to read:
             27736           41-6a-404. Accident reports -- When confidential -- Insurance policy information
             27737      -- Use as evidence -- Penalty for false information.
             27738          (1) As used in this section:
             27739          (a) "Agent" means:
             27740          (i) a person's attorney;
             27741          (ii) a person's insurer;
             27742          (iii) a general acute hospital, as defined in Section 26-21-2 , that:
             27743          (A) has an emergency room; and
             27744          (B) is providing or has provided emergency services to the person in relation to the
             27745      accident; or
             27746          (iv) any other individual or entity with signed permission from the person to receive the
             27747      person's accident report.
             27748          (b) "Accompanying data" means all materials gathered by the investigating peace officer
             27749      in an accident investigation including:

             27750          (i) the identity of witnesses and, if known, contact information;
             27751          (ii) witness statements;
             27752          (iii) photographs and videotapes;
             27753          (iv) diagrams; and
             27754          (v) field notes.
             27755          (2) Except as provided in Subsection (3), all accident reports required in this part to be
             27756      filed with the department:
             27757          (a) are without prejudice to the reporting individual;
             27758          (b) are protected and for the confidential use of the department or other state, local, or
             27759      federal agencies having use for the records for official governmental statistical, investigative,
             27760      and accident prevention purposes; and
             27761          (c) may be disclosed only in a statistical form that protects the privacy of any person
             27762      involved in the accident.
             27763          (3) (a) Subject to the provisions of this section, the department or the responsible law
             27764      enforcement agency employing the peace officer that investigated the accident shall disclose an
             27765      accident report to:
             27766          (i) a person involved in the accident, excluding a witness to the accident;
             27767          (ii) a person suffering loss or injury in the accident;
             27768          (iii) an agent, parent, or legal guardian of a person described in Subsections (3)(a)(i)
             27769      and (ii);
             27770          (iv) subject to Subsection (3)(d), a member of the press or broadcast news media;
             27771          (v) a state, local, or federal agency that uses the records for official governmental,
             27772      investigative, or accident prevention purposes;
             27773          (vi) law enforcement personnel when acting in their official governmental capacity; and
             27774          (vii) a licensed private investigator.
             27775          (b) The responsible law enforcement agency employing the peace officer that
             27776      investigated the accident:
             27777          (i) shall in compliance with Subsection (3)(a):

             27778          (A) disclose an accident report; or
             27779          (B) upon written request disclose an accident report and its accompanying data within
             27780      ten business days from receipt of a written request for disclosure; or
             27781          (ii) may withhold an accident report, and any of its accompanying data if disclosure
             27782      would jeopardize an ongoing criminal investigation or criminal prosecution.
             27783          (c) In accordance with Subsection (3)(a), the department or the responsible law
             27784      enforcement agency employing the investigating peace officer shall disclose whether any person
             27785      or vehicle involved in an accident reported under this section was covered by a vehicle
             27786      insurance policy, and the name of the insurer.
             27787          (d) Information provided to a member of the press or broadcast news media under
             27788      Subsection (3)(a)(iv) may only include:
             27789          (i) the name, age, sex, and city of residence of each person involved in the accident;
             27790          (ii) the make and model year of each vehicle involved in the accident;
             27791          (iii) whether or not each person involved in the accident was covered by a vehicle
             27792      insurance policy;
             27793          (iv) the location of the accident; and
             27794          (v) a description of the accident that excludes personal identifying information not listed
             27795      in Subsection (3)(d)(i).
             27796          (e) The department shall disclose to any requesting person the following vehicle
             27797      accident history information, excluding personal identifying information, in bulk electronic form:
             27798          (i) any vehicle identifying information that is electronically available, including the
             27799      make, model year, and vehicle identification number of each vehicle involved in an accident;
             27800          (ii) the date of the accident; and
             27801          (iii) any electronically available data which describes the accident, including a
             27802      description of any physical damage to the vehicle.
             27803          (f) The department may establish a fee under Section [ 63-38-3.2 ] 63J-1-303 based on
             27804      the fair market value of the information for providing bulk vehicle accident history information
             27805      under Subsection (3)(e).

             27806          (4) (a) Except as provided in Subsection (4)(b), accident reports filed under this section
             27807      may not be used as evidence in any civil or criminal trial arising out of an accident.
             27808          (b) (i) Upon demand of any party to the trial or upon demand of any court, the
             27809      department shall furnish a certificate showing that a specified accident report has or has not
             27810      been made to the department in compliance with law.
             27811          (ii) If the report has been made, the certificate furnished by the department shall show:
             27812          (A) the date, time, and location of the accident;
             27813          (B) the names and addresses of the drivers;
             27814          (C) the owners of the vehicles involved; and
             27815          (D) the investigating peace officers.
             27816          (iii) The reports may be used as evidence when necessary to prosecute charges filed in
             27817      connection with a violation of Subsection (5).
             27818          (5) A person who gives information in reports as required in this part knowing or
             27819      having reason to believe that the information is false is guilty of a class A misdemeanor.
             27820          (6) The department and the responsible law enforcement agency employing the
             27821      investigating peace officer may charge a reasonable fee determined by the department under
             27822      Section [ 63-38-3.2 ] 63J-1-303 for the cost incurred in disclosing an accident report or an
             27823      accident report and any of its accompanying data under Subsections (3)(a) and (b).
             27824          Section 572. Section 41-6a-514 is amended to read:
             27825           41-6a-514. Procedures -- Adjudicative proceedings.
             27826          The department shall comply with the procedures and requirements of [Title 63, Chapter
             27827      46b] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative proceedings.
             27828          Section 573. Section 41-6a-518 is amended to read:
             27829           41-6a-518. Ignition interlock devices -- Use -- Probationer to pay cost --
             27830      Impecuniosity -- Fee.
             27831          (1) As used in this section:
             27832          (a) "Commissioner" means the commissioner of the Department of Public Safety.
             27833          (b) "Ignition interlock system" or "system" means a constant monitoring device or any

             27834      similar device certified by the commissioner that prevents a motor vehicle from being started or
             27835      continuously operated without first determining the driver's breath alcohol concentration.
             27836          (c) "Probation provider" means the supervisor and monitor of the ignition interlock
             27837      system required as a condition of probation who contracts with the court in accordance with
             27838      Subsections 41-6a-507 (2) and (3).
             27839          (2) (a) In addition to any other penalties imposed under Sections 41-6a-503 and
             27840      41-6a-505 , and in addition to any requirements imposed as a condition of probation, the court
             27841      may require that any person who is convicted of violating Section 41-6a-502 and who is granted
             27842      probation may not operate a motor vehicle during the period of probation unless that motor
             27843      vehicle is equipped with a functioning, certified ignition interlock system installed and calibrated
             27844      so that the motor vehicle will not start or continuously operate if the operator's blood alcohol
             27845      concentration exceeds a level ordered by the court.
             27846          (b) If a person convicted of violating Section 41-6a-502 was under the age of 21 when
             27847      the violation occurred, the court shall order the installation of the ignition interlock system as a
             27848      condition of probation.
             27849          (c) The division shall post the ignition interlock restriction on the electronic record
             27850      available to law enforcement.
             27851          (d) This section does not apply to a person convicted of a violation of Section
             27852      41-6a-502 whose violation involves drugs other than alcohol.
             27853          (3) If the court imposes the use of an ignition interlock system as a condition of
             27854      probation, the court shall:
             27855          (a) stipulate on the record the requirement for and the period of the use of an ignition
             27856      interlock system;
             27857          (b) order that an ignition interlock system be installed on each motor vehicle owned or
             27858      operated by the probationer, at the probationer's expense;
             27859          (c) immediately notify the Driver License Division and the person's probation provider
             27860      of the order; and
             27861          (d) require the probationer to provide proof of compliance with the court's order to the

             27862      probation provider within 30 days of the order.
             27863          (4) (a) The probationer shall provide timely proof of installation within 30 days of an
             27864      order imposing the use of a system or show cause why the order was not complied with to the
             27865      court or to the probationer's probation provider.
             27866          (b) The probation provider shall notify the court of failure to comply under Subsection
             27867      (4)(a).
             27868          (c) For failure to comply under Subsection (4)(a) or upon receiving the notification
             27869      under Subsection (4)(b), the court shall order the Driver License Division to suspend the
             27870      probationer's driving privileges for the remaining period during which the compliance was
             27871      imposed.
             27872          (d) Cause for failure to comply means any reason the court finds sufficiently justifiable
             27873      to excuse the probationer's failure to comply with the court's order.
             27874          (5) (a) Any probationer required to install an ignition interlock system shall have the
             27875      system monitored by the manufacturer or dealer of the system for proper use and accuracy at
             27876      least semiannually and more frequently as the court may order.
             27877          (b) (i) A report of the monitoring shall be issued by the manufacturer or dealer to the
             27878      court or the person's probation provider.
             27879          (ii) The report shall be issued within 14 days following each monitoring.
             27880          (6) (a) If an ignition interlock system is ordered installed, the probationer shall pay the
             27881      reasonable costs of leasing or buying and installing and maintaining the system.
             27882          (b) A probationer may not be excluded from this section for inability to pay the costs,
             27883      unless:
             27884          (i) the probationer files an affidavit of impecuniosity; and
             27885          (ii) the court enters a finding that the probationer is impecunious.
             27886          (c) In lieu of waiver of the entire amount of the cost, the court may direct the
             27887      probationer to make partial or installment payments of costs when appropriate.
             27888          (d) The ignition interlock provider shall cover the costs of waivers by the court under
             27889      this Subsection (6).

             27890          (7) (a) If a probationer is required in the course and scope of employment to operate a
             27891      motor vehicle owned by the probationer's employer, the probationer may operate that motor
             27892      vehicle without installation of an ignition interlock system only if:
             27893          (i) the motor vehicle is used in the course and scope of employment;
             27894          (ii) the employer has been notified that the employee is restricted; and
             27895          (iii) the employee has proof of the notification in [his] the employee's possession while
             27896      operating the employer's motor vehicle.
             27897          (b) (i) To the extent that an employer-owned motor vehicle is made available to a
             27898      probationer subject to this section for personal use, no exemption under this section shall apply.
             27899          (ii) A probationer intending to operate an employer-owned motor vehicle for personal
             27900      use and who is restricted to the operation of a motor vehicle equipped with an ignition interlock
             27901      system shall notify the employer and obtain consent in writing from the employer to install a
             27902      system in the employer-owned motor vehicle.
             27903          (c) A motor vehicle owned by a business entity that is all or partly owned or controlled
             27904      by a probationer subject to this section is not a motor vehicle owned by the employer and does
             27905      not qualify for an exemption under this Subsection (7).
             27906          (8) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             27907      Administrative Rulemaking Act, the commissioner shall make rules setting standards for the
             27908      certification of ignition interlock systems.
             27909          (b) The standards under Subsection (8)(a) shall require that the system:
             27910          (i) not impede the safe operation of the motor vehicle;
             27911          (ii) have features that make circumventing difficult and that do not interfere with the
             27912      normal use of the motor vehicle;
             27913          (iii) require a deep lung breath sample as a measure of breath alcohol concentration;
             27914          (iv) prevent the motor vehicle from being started if the driver's breath alcohol
             27915      concentration exceeds a specified level;
             27916          (v) work accurately and reliably in an unsupervised environment;
             27917          (vi) resist tampering and give evidence if tampering is attempted;

             27918          (vii) operate reliably over the range of motor vehicle environments; and
             27919          (viii) be manufactured by a party who will provide liability insurance.
             27920          (c) The commissioner may adopt in whole or in part, the guidelines, rules, studies, or
             27921      independent laboratory tests relied upon in certification of ignition interlock systems by other
             27922      states.
             27923          (d) A list of certified systems shall be published by the commissioner and the cost of
             27924      certification shall be borne by the manufacturers or dealers of ignition interlock systems seeking
             27925      to sell, offer for sale, or lease the systems.
             27926          (e) (i) In accordance with Section [ 63-38-3.2 ] 63J-1-303 , the commissioner may
             27927      establish an annual dollar assessment against the manufacturers of ignition interlock systems
             27928      distributed in the state for the costs incurred in certifying.
             27929          (ii) The assessment under Subsection (8)(e)(i) shall be apportioned among the
             27930      manufacturers on a fair and reasonable basis.
             27931          (9) There shall be no liability on the part of, and no cause of action of any nature shall
             27932      arise against, the state or its employees in connection with the installation, use, operation,
             27933      maintenance, or supervision of an interlock ignition system as required under this section.
             27934          Section 574. Section 41-6a-702 is amended to read:
             27935           41-6a-702. Left lane restrictions -- Exceptions -- Other lane restrictions --
             27936      Penalties.
             27937          (1) As used in this section and Section 41-6a-704 , "general purpose lane" means a
             27938      highway lane open to vehicular traffic but does not include a designated:
             27939          (a) high occupancy vehicle (HOV) lane; or
             27940          (b) auxiliary lane that begins as a freeway on-ramp and ends as part of the next freeway
             27941      off-ramp.
             27942          (2) On a freeway or section of a freeway which has three or more general purpose lanes
             27943      in the same direction, a person may not operate a vehicle in the left most general purpose lane if
             27944      the person's:
             27945          (a) vehicle is drawing a trailer or semitrailer regardless of size; or

             27946          (b) vehicle or combination of vehicles has a gross vehicle weight of 12,001 or more
             27947      pounds.
             27948          (3) Subsection (2) does not apply to a person operating a vehicle who is:
             27949          (a) preparing to turn left or taking a different highway split or an exit on the left;
             27950          (b) responding to emergency conditions;
             27951          (c) avoiding actual or potential traffic moving onto the highway from an acceleration or
             27952      merging lane; or
             27953          (d) following direction signs that direct use of a designated lane.
             27954          (4) (a) A highway authority may designate a specific lane or lanes of travel for any type
             27955      of vehicle on a highway or portion of a highway under its jurisdiction for the:
             27956          (i) safety of the public;
             27957          (ii) efficient maintenance of a highway; or
             27958          (iii) use of high occupancy vehicles.
             27959          (b) The lane designation under Subsection (4)(a) is effective when appropriate signs
             27960      giving notice are erected on the highway or portion of the highway.
             27961          (5) (a) Subject to Subsection (5)(b), the lane designation under Subsection (4)(a) shall
             27962      allow a vehicle with clean fuel special group license plates issued in accordance with Section
             27963      41-1a-418 to travel in lanes designated for the use of high occupancy vehicles regardless of the
             27964      number of occupants to the extent authorized or permitted by federal law or federal regulation.
             27965          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             27966      Administrative Rulemaking Act, the Department of Transportation may make rules to allow a
             27967      vehicle with clean fuel special group license plates issued in accordance with Section 41-1a-418
             27968      to travel in lanes designated for the use of high occupancy vehicles regardless of the number of
             27969      occupants to the extent authorized or permitted by federal law or federal regulation.
             27970          (6) A person who operates a vehicle in violation of Subsection (2) or in violation of the
             27971      restrictions made under Subsection (4) is guilty of a class C misdemeanor.
             27972          Section 575. Section 41-6a-1304 is amended to read:
             27973           41-6a-1304. School buses -- Rules regarding design and operation.

             27974          (1) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             27975      Administrative Rulemaking Act, the Department of Transportation by and with the advice of the
             27976      State Board of Education and the Department of Public Safety shall adopt and enforce rules,
             27977      not inconsistent with this chapter, to govern the design and operation of all school buses in this
             27978      state when:
             27979          (i) owned and operated by any school district;
             27980          (ii) privately owned and operated under contract with a school district; or
             27981          (iii) privately owned for use by a private school.
             27982          (b) The rules under this Subsection (1) shall by reference be made a part of any contract
             27983      with a school district or private school to operate a school bus.
             27984          (2) Every school district or private school, its officers and employees, and every person
             27985      employed under contract by a school district or private school shall be subject to the rules under
             27986      Subsection (1).
             27987          Section 576. Section 41-6a-1307 is amended to read:
             27988           41-6a-1307. School bus parking zones -- Establishment -- Uniform markings --
             27989      Penalty.
             27990          (1) As used in this section, "school bus parking zone" means a parking space that is
             27991      clearly identified as reserved for use by a school bus.
             27992          (2) A highway authority for highways under its jurisdiction and school boards for
             27993      roadways located on school property may establish and locate school bus parking zones in
             27994      accordance with specifications established under Subsection (3).
             27995          (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             27996      Administrative Rulemaking Act, the Department of Transportation, after consultation with local
             27997      highway authorities and school boards which may include input from school traffic safety
             27998      committees established under Section 53A-3-402 , shall make rules establishing specifications
             27999      for uniform signage or markings to clearly identify school bus parking zones.
             28000          (4) A person may not stop, stand, or park a vehicle other than a school bus, whether
             28001      occupied or not, in a clearly identified school bus parking zone.

             28002          (5) A person who violates Subsection (4) shall pay a minimum fine of $75.
             28003          Section 577. Section 41-6a-1406 is amended to read:
             28004           41-6a-1406. Removal and impoundment of vehicles -- Reporting and notification
             28005      requirements -- Administrative impound fee -- Refunds -- Possessory lien -- Rulemaking.
             28006          (1) If a vehicle, vessel, or outboard motor is removed or impounded as provided under
             28007      Section 41-1a-1101 , 41-6a-527 , 41-6a-1405 , 41-6a-1408 , or 73-18-20.1 by an order of a peace
             28008      officer or by an order of a person acting on behalf of a law enforcement agency or highway
             28009      authority, the removal or impoundment of the vehicle, vessel, or outboard motor shall be at the
             28010      expense of the owner.
             28011          (2) The vehicle, vessel, or outboard motor under Subsection (1) shall be removed or
             28012      impounded to:
             28013          (a) a state impound yard; or
             28014          (b) if none, a garage, docking area, or other place of safety.
             28015          (3) The peace officer may move a vehicle, vessel, or outboard motor or cause it to be
             28016      removed by a tow truck motor carrier that meets standards established:
             28017          (a) under Title 72, Chapter 9, Motor Carrier Safety Act; and
             28018          (b) by the department under Subsection (10).
             28019          (4) (a) Immediately after the removal of the vehicle, vessel, or outboard motor, a report
             28020      of the removal shall be sent to the Motor Vehicle Division by:
             28021          (i) the peace officer or agency by whom the peace officer is employed; and
             28022          (ii) the tow truck operator or the tow truck motor carrier by whom the tow truck
             28023      operator is employed.
             28024          (b) The report shall be in a form specified by the Motor Vehicle Division and shall
             28025      include:
             28026          (i) the operator's name, if known;
             28027          (ii) a description of the vehicle, vessel, or outboard motor;
             28028          (iii) the vehicle identification number or vessel or outboard motor identification number;
             28029          (iv) the license number or other identification number issued by a state agency;

             28030          (v) the date, time, and place of impoundment;
             28031          (vi) the reason for removal or impoundment;
             28032          (vii) the name of the tow truck motor carrier who removed the vehicle, vessel, or
             28033      outboard motor; and
             28034          (viii) the place where the vehicle, vessel, or outboard motor is stored.
             28035          (c) Until the tow truck operator or tow truck motor carrier reports the removal as
             28036      required under this Subsection (4), a tow truck motor carrier or impound yard may not:
             28037          (i) collect any fee associated with the removal; and
             28038          (ii) begin charging storage fees.
             28039          (5) (a) Upon receipt of the report, the Motor Vehicle Division shall give notice to the
             28040      registered owner of the vehicle, vessel, or outboard motor and any lien holder in the manner
             28041      prescribed by Section 41-1a-114 .
             28042          (b) The notice shall:
             28043          (i) state the date, time, and place of removal, the name, if applicable, of the person
             28044      operating the vehicle, vessel, or outboard motor at the time of removal, the reason for removal,
             28045      and the place where the vehicle, vessel, or outboard motor is stored;
             28046          (ii) state that the registered owner is responsible for payment of towing, impound, and
             28047      storage fees charged against the vehicle, vessel, or outboard motor;
             28048          (iii) inform the registered owner of the vehicle, vessel, or outboard motor of the
             28049      conditions that must be satisfied before the vehicle, vessel, or outboard motor is released; and
             28050          (iv) inform the registered owner and lienholder of the division's intent to sell the vehicle,
             28051      vessel, or outboard motor, if within 30 days from the date of the removal or impoundment
             28052      under this section, the owner, lien holder, or the owner's agent fails to make a claim for release
             28053      of the vehicle, vessel, or outboard motor.
             28054          (c) If the vehicle, vessel, or outboard motor is not registered in this state, the Motor
             28055      Vehicle Division shall make a reasonable effort to notify the registered owner and any lien
             28056      holder of the removal and the place where the vehicle, vessel, or outboard motor is stored.
             28057          (d) The Motor Vehicle Division shall forward a copy of the notice to the place where

             28058      the vehicle, vessel, or outboard motor is stored.
             28059          (6) (a) The vehicle, vessel, or outboard motor shall be released after the registered
             28060      owner, lien holder, or the owner's agent:
             28061          (i) makes a claim for release of the vehicle, vessel, or outboard motor at any office of
             28062      the State Tax Commission;
             28063          (ii) presents identification sufficient to prove ownership of the impounded vehicle,
             28064      vessel, or outboard motor;
             28065          (iii) completes the registration, if needed, and pays the appropriate fees;
             28066          (iv) if the impoundment was made under Section 41-6a-527 , pays an administrative
             28067      impound fee of $230; and
             28068          (v) pays all towing and storage fees to the place where the vehicle, vessel, or outboard
             28069      motor is stored.
             28070          (b) (i) Twenty-nine dollars of the administrative impound fee assessed under Subsection
             28071      (6)(a)(iv) shall be dedicated credits to the Motor Vehicle Division;
             28072          (ii) $97 of the administrative impound fee assessed under Subsection (6)(a)(iv) shall be
             28073      deposited in the Department of Public Safety Restricted Account created in Section 53-3-106 ;
             28074      and
             28075          (iii) the remainder of the administrative impound fee assessed under Subsection
             28076      (6)(a)(iv) shall be deposited in the General Fund.
             28077          (c) The administrative impound fee assessed under Subsection (6)(a)(iv) shall be waived
             28078      or refunded by the State Tax Commission if the registered owner, lien holder, or owner's agent
             28079      presents written evidence to the State Tax Commission that:
             28080          (i) the Driver License Division determined that the arrested person's driver license
             28081      should not be suspended or revoked under Section 53-3-223 or 41-6a-521 as shown by a letter
             28082      or other report from the Driver License Division presented within 30 days of the final
             28083      notification from the Driver License Division; or
             28084          (ii) the vehicle was stolen at the time of the impoundment as shown by a copy of the
             28085      stolen vehicle report presented within 30 days of the impoundment.

             28086          (7) (a) An impounded vehicle, vessel, or outboard motor not claimed by the registered
             28087      owner or the owner's agent within the time prescribed by Section 41-1a-1103 shall be sold in
             28088      accordance with that section and the proceeds, if any, shall be disposed of as provided under
             28089      Section 41-1a-1104 .
             28090          (b) The date of impoundment is considered the date of seizure for computing the time
             28091      period provided under Section 41-1a-1103 .
             28092          (8) The registered owner who pays all fees and charges incurred in the impoundment of
             28093      the owner's vehicle, vessel, or outboard motor, has a cause of action for all the fees and charges,
             28094      together with damages, court costs, and attorney fees, against the operator of the vehicle,
             28095      vessel, or outboard motor whose actions caused the removal or impoundment.
             28096          (9) Towing, impound fees, and storage fees are a possessory lien on the vehicle, vessel,
             28097      or outboard motor.
             28098          (10) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             28099      Administrative Rulemaking Act, the department shall make rules setting the performance
             28100      standards for towing companies to be used by the department.
             28101          (11) (a) The Motor Vehicle Division may specify that a report required under
             28102      Subsection (4) be submitted in electronic form utilizing a database for submission, storage, and
             28103      retrieval of the information.
             28104          (b) (i) Unless otherwise provided by statute, the Motor Vehicle Division or the
             28105      administrator of the database may adopt a schedule of fees assessed for utilizing the database.
             28106          (ii) The fees under this Subsection (11)(b) shall:
             28107          (A) be reasonable and fair; and
             28108          (B) reflect the cost of administering the database.
             28109          Section 578. Section 41-6a-1601 is amended to read:
             28110           41-6a-1601. Operation of unsafe or improperly equipped vehicles on public
             28111      highways -- Exceptions.
             28112          (1) (a) A person may not operate or move and an owner may not cause or knowingly
             28113      permit to be operated or moved on a highway a vehicle or combination of vehicles which:

             28114          (i) is in an unsafe condition that may endanger any person;
             28115          (ii) does not contain those parts or is not at all times equipped with lamps and other
             28116      equipment in proper condition and adjustment as required in this chapter;
             28117          (iii) is equipped in any manner in violation of this chapter; or
             28118          (iv) emits pollutants in excess of the limits allowed under the rules of the Air Quality
             28119      Board created under Title 19, Chapter 2, Air Conservation Act, or under rules made by local
             28120      health departments.
             28121          (b) A person may not do any act forbidden or fail to perform any act required under this
             28122      chapter.
             28123          (2) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             28124      Administrative Rulemaking Act, and in coordination with the rules made under Section
             28125      53-8-204 , the department shall make rules setting minimum standards covering the design,
             28126      construction, condition, and operation of vehicle equipment for safely operating a motor vehicle
             28127      on the highway as required under this part.
             28128          (b) The rules under Subsection (2)(a):
             28129          (i) shall conform as nearly as practical to Federal Motor Vehicle Safety Standards and
             28130      Regulations;
             28131          (ii) may incorporate by reference, in whole or in part, the federal standards under
             28132      Subsection (2)(b)(i) and nationally recognized and readily available standards and codes on
             28133      motor vehicle safety;
             28134          (iii) shall include provisions for the issuance of a permit under Section 41-6a-1602 ;
             28135          (iv) shall include standards for the emergency lights of authorized emergency vehicles;
             28136          (v) may provide standards and specifications applicable to lighting equipment on school
             28137      buses consistent with:
             28138          (A) this part;
             28139          (B) federal motor vehicle safety standards; and
             28140          (C) current specifications of the Society of Automotive Engineers;
             28141          (vi) shall provide procedures for the submission, review, approval, disapproval, issuance

             28142      of an approval certificate, and expiration or renewal of approval of any part as required under
             28143      Section 41-6a-1620 ;
             28144          (vii) shall establish specifications for the display or etching of a vehicle identification
             28145      number on a vehicle;
             28146          (viii) shall establish specifications in compliance with this part for a flare, fusee, electric
             28147      lantern, warning flag, or portable reflector used in compliance with this part;
             28148          (ix) shall establish approved safety and law enforcement purposes when video display is
             28149      visible to the motor vehicle operator; and
             28150          (x) shall include standards and specifications for both original equipment and parts
             28151      included when a vehicle is manufactured and aftermarket equipment and parts included after the
             28152      original manufacture of a vehicle.
             28153          (c) The following standards and specifications for vehicle equipment are adopted:
             28154          (i) 49 C.F.R. 571.209 related to safety belts;
             28155          (ii) 49 C.F.R. 571.213 related to child restraint devices;
             28156          (iii) 49 C.F.R. 393, 396, and 396 Appendix G related to commercial motor vehicles and
             28157      trailers operated in interstate commerce;
             28158          (iv) 49 C.F.R. 571 Standard 108 related to lights and illuminating devices; and
             28159          (v) 40 C.F.R. 82.30 through 82.42 and Part 82, Subpart B, Appendix A and B related
             28160      to air conditioning equipment.
             28161          (3) Nothing in this chapter or the rules made by the department prohibit:
             28162          (a) equipment required by the United States Department of Transportation; or
             28163          (b) the use of additional parts and accessories on a vehicle not inconsistent with the
             28164      provisions of this chapter or the rules made by the department.
             28165          (4) Except as specifically made applicable, the provisions of this chapter and rules of the
             28166      department with respect to equipment required on vehicles do not apply to:
             28167          (a) implements of husbandry;
             28168          (b) road machinery;
             28169          (c) road rollers;

             28170          (d) farm tractors;
             28171          (e) motorcycles;
             28172          (f) motor-driven cycles;
             28173          (g) vehicles moved solely by human power;
             28174          (h) off-highway vehicles registered under Section 41-22-3 either:
             28175          (i) on a highway designated as open for off-highway vehicle use; or
             28176          (ii) in the manner prescribed by Section 41-22-10.3 ; or
             28177          (i) off-highway implements of husbandry when operated in the manner prescribed by
             28178      Subsections 41-22-5.5 (3) through (5).
             28179          (5) The vehicles referred to in Subsections (4)(h) and (i) are subject to the equipment
             28180      requirements of Title 41, Chapter 22, Off-highway Vehicles, and the rules made under that
             28181      chapter.
             28182          (6) (a) A federal motor vehicle safety standard supersedes any conflicting provision of
             28183      this chapter.
             28184          (b) The department:
             28185          (i) shall report any conflict found under Subsection (6)(a) to the appropriate committees
             28186      or officials of the Legislature; and
             28187          (ii) may adopt a rule to replace the superseded provision.
             28188          Section 579. Section 41-6a-1617 is amended to read:
             28189           41-6a-1617. Highway construction and maintenance vehicles -- Transportation
             28190      department to adopt rules for lighting.
             28191          (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             28192      Administrative Rulemaking Act, the Department of Transportation shall make rules providing
             28193      specifications governing the design and use of special flashing lights on vehicles engaged in
             28194      highway construction or maintenance operations.
             28195          (2) The standards and specifications adopted under Subsection (1) shall correlate with,
             28196      and where possible conform to, the standards set forth in the most recent edition of the "Manual
             28197      on Uniform Traffic Control Devices for Streets and Highways" and other standards issued or

             28198      endorsed by the federal highway administrator.
             28199          (3) The operator of a vehicle engaged in highway construction or maintenance
             28200      operations shall comply with rules adopted under this section.
             28201          Section 580. Section 41-6a-1636 is amended to read:
             28202           41-6a-1636. Tires which are prohibited -- Regulatory powers of state
             28203      transportation department -- Winter use of studs -- Special permits -- Tread depth.
             28204          (1) A solid rubber tire on a vehicle shall have rubber on its entire traction surface at
             28205      least one inch thick above the edge of the flange of the entire periphery.
             28206          (2) A person may not operate or move on a highway a motor vehicle, trailer, or
             28207      semitrailer having a metal tire in contact with the roadway.
             28208          (3) Except as otherwise provided in this section, a person may not have a tire on a
             28209      vehicle that is moved on a highway that has on the tire's periphery a block, stud, flange, cleat, or
             28210      spike or any other protuberances of any material other than rubber which projects beyond the
             28211      tread of the traction surface of the tire.
             28212          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             28213      Administrative Rulemaking Act, the Department of Transportation may make rules to permit
             28214      the use of tires on a vehicle having protuberances other than rubber, if the department concludes
             28215      that protuberances do not:
             28216          (a) damage the highway significantly; or
             28217          (b) constitute a hazard to life, health, or property.
             28218          (5) Notwithstanding any other provision of this section, a person may use:
             28219          (a) a tire with protuberances consisting of tungsten carbide studs on a vehicle if the
             28220      studs:
             28221          (i) are only used during the winter periods of October fifteenth through December
             28222      thirty-first and January first through March thirty-first of each year;
             28223          (ii) do not project beyond the tread of the traction surface of the tire more than .050
             28224      inches; and
             28225          (iii) are not used on a vehicle with a maximum gross weight in excess of 9,000 pounds

             28226      unless the vehicle is an emergency vehicle or school bus;
             28227          (b) farm machinery with tires having protuberances which will not injure the highway;
             28228      and
             28229          (c) tire chains of reasonable proportions on a vehicle when required for safety because
             28230      of snow, ice, or other conditions tending to cause a vehicle to skid.
             28231          (6) Notwithstanding any other provision of this chapter, a highway authority, for a
             28232      highway under its jurisdiction, may issue special permits authorizing the operation on a highway
             28233      of:
             28234          (a) farm tractors;
             28235          (b) other farm machinery; or
             28236          (c) traction engines or tractors having movable tracks with transverse corrugations on
             28237      the periphery of the movable tracks.
             28238          (7) (a) A person may not operate a vehicle if one or more of the tires in use on the
             28239      vehicle:
             28240          (i) is in an unsafe operating condition; or
             28241          (ii) has a tread depth less than 2/32 inch measured in any two adjacent tread grooves at
             28242      three equally spaced intervals around the circumference of the tire.
             28243          (b) The measurement under Subsection (7)(a) may not be made at the location of any
             28244      tread wear indicator, tie bar, hump, or fillet.
             28245          (8) A person in the business of selling tires may not sell or offer for sale for highway use
             28246      any tire prohibited for use under Subsection (7).
             28247          Section 581. Section 41-6a-1639 is amended to read:
             28248           41-6a-1639. Hazardous materials -- Transportation regulations -- Fire
             28249      extinguishers.
             28250          (1) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             28251      Administrative Rulemaking Act, the Department of Transportation shall make rules for the safe
             28252      transportation of hazardous materials.
             28253          (b) The rules shall adopt by reference or be consistent with current Hazardous Materials

             28254      Regulations of the United States Department of Transportation.
             28255          (c) An adoption by reference under Subsection (1)(b) shall be construed to incorporate
             28256      amendments thereto as may be made from time to time.
             28257          (2) A person operating a vehicle transporting any hazardous material as a cargo or part
             28258      of a cargo on a highway shall at all times comply with rules made by the Department of
             28259      Transportation under this section including being:
             28260          (a) marked or placarded; and
             28261          (b) equipped with fire extinguishers:
             28262          (i) of a type, size, and number approved by rule; and
             28263          (ii) that are filled, ready for immediate use, and placed at a convenient point on the
             28264      vehicle.
             28265          Section 582. Section 41-12a-201 is amended to read:
             28266           41-12a-201. Administration of laws under Title 41, Chapter 12a -- Compliance
             28267      with Administrative Procedures Act.
             28268          (1) The department shall administer and enforce the provisions of this chapter and may
             28269      adopt rules as necessary for its administration.
             28270          (2) The department shall comply with the procedures and requirements of [Title 63,
             28271      Chapter 46b,] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
             28272      proceedings.
             28273          Section 583. Section 41-12a-202 is amended to read:
             28274           41-12a-202. Access to accident reports.
             28275          (1) Accident reports and supplemental information as required under this chapter are
             28276      protected and are for the confidential use of the department and other state, local, or federal
             28277      government agencies and may be disclosed only as provided in Section 41-6a-404 .
             28278          (2) (a) Any person entitled to the disclosure of an accident report, as provided in
             28279      Section 41-6a-404 , may obtain a photocopy by paying the department a fee established under
             28280      Section [ 63-38-3.2 ] 63J-1-303 .
             28281          (b) These fees shall be deposited in the General Fund.

             28282          Section 584. Section 41-12a-407 is amended to read:
             28283           41-12a-407. Certificate of self-funded coverage as proof of owner's or operator's
             28284      security.
             28285          (1) The department may, upon the application of any person, issue a certificate of
             28286      self-funded coverage when it is satisfied that the person has:
             28287          (a) more than 24 motor vehicles; and
             28288          (b) deposits, in a form approved by the department, securities in an amount of $200,000
             28289      plus $100 for each motor vehicle up to and including 1,000 motor vehicles and $50 for every
             28290      motor vehicle over 1,000 motor vehicles.
             28291          (2) Persons holding a certificate of self-funded coverage under this chapter shall pay
             28292      benefits to persons injured from the self-funded person's operation, maintenance, and use of
             28293      motor vehicles as would an insurer issuing a policy to the self-funded person containing the
             28294      coverages under Section 31A-22-302 .
             28295          (3) In accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             28296      Procedures Act, the department may, upon reasonable grounds, cancel the certificate. Failure
             28297      to pay any judgment up to the limit under Subsection 31A-22-304 (2) within 30 days after the
             28298      judgment is final is a reasonable ground to cancel the certificate.
             28299          (4) Any government entity with self-funded coverage for government-owned motor
             28300      vehicles under [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of
             28301      Utah, meets the requirements of this section.
             28302          Section 585. Section 41-12a-803 is amended to read:
             28303           41-12a-803. Program creation -- Administration -- Selection of designated agent
             28304      -- Duties -- Rulemaking -- Audits.
             28305          (1) There is created the Uninsured Motorist Identification Database Program to:
             28306          (a) establish an Uninsured Motorist Identification Database to verify compliance with
             28307      motor vehicle owner's or operator's security requirements under Section 41-12a-301 and other
             28308      provisions under this part;
             28309          (b) assist in reducing the number of uninsured motor vehicles on the highways of the

             28310      state;
             28311          (c) assist in increasing compliance with motor vehicle registration and sales and use tax
             28312      laws; and
             28313          (d) assist in protecting a financial institution's bona fide security interest in a motor
             28314      vehicle.
             28315          (2) The program shall be administered by the department with the assistance of the
             28316      designated agent and the Motor Vehicle Division.
             28317          (3) (a) The department shall contract in accordance with [Title 63, Chapter 56] Title
             28318      63G, Chapter 6, Utah Procurement Code, with a third party to establish and maintain an
             28319      Uninsured Motorist Identification Database for the purposes established under this part.
             28320          (b) The contract may not obligate the department to pay the third party more monies
             28321      than are available in the account.
             28322          (4) (a) The third party under contract under this section is the department's designated
             28323      agent, and shall develop and maintain a computer database from the information provided by:
             28324          (i) insurers under Section 31A-22-315 ;
             28325          (ii) the division under Subsection (6); and
             28326          (iii) the Motor Vehicle Division under Section 41-1a-120 .
             28327          (b) (i) The database shall be developed and maintained in accordance with guidelines
             28328      established by the department so that state and local law enforcement agencies and financial
             28329      institutions as defined in Section 7-1-103 can efficiently access the records of the database,
             28330      including reports useful for the implementation of the provisions of this part.
             28331          (ii) (A) The reports shall be in a form and contain information approved by the
             28332      department.
             28333          (B) The reports may be made available through the Internet or through other electronic
             28334      medium, if the department determines that sufficient security is provided to ensure compliance
             28335      with Section 41-12a-805 regarding limitations on disclosure of information in the database.
             28336          (5) With information provided by the department and the Motor Vehicle Division, the
             28337      designated agent shall, at least monthly for submissions under Subsection 31A-22-315 (2)(b) or

             28338      at least twice a month for submissions under Subsection 31A-22-315 (2)(a):
             28339          (a) update the database with the motor vehicle insurance information provided by the
             28340      insurers in accordance with Section 31A-22-315 ; and
             28341          (b) compare all current motor vehicle registrations against the database.
             28342          (6) The division shall provide the designated agent with the name, date of birth,
             28343      address, and driver license number of all persons on the driver license database.
             28344          (7) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             28345      Administrative Rulemaking Act, the department shall make rules and develop procedures in
             28346      cooperation with the Motor Vehicle Division to use the database for the purpose of
             28347      administering and enforcing this part.
             28348          (8) (a) The designated agent shall archive computer data files at least semi-annually for
             28349      auditing purposes.
             28350          (b) The internal audit unit of the tax commission provided under Section 59-1-206 shall
             28351      audit the program at least every three years.
             28352          (c) The audit under Subsection (8)(b) shall include verification of:
             28353          (i) billings made by the designated agent; and
             28354          (ii) the accuracy of the designated agent's matching of vehicle registration with
             28355      insurance data.
             28356          Section 586. Section 41-12a-805 is amended to read:
             28357           41-12a-805. Disclosure of insurance information -- Penalty.
             28358          (1) Information in the database established under Section 41-12a-803 provided by a
             28359      person to the designated agent is considered to be the property of the person providing the
             28360      information. The information may not be disclosed from the database under [Title 63, Chapter
             28361      2] Title 63G, Chapter 2, Government Records Access and Management Act, or otherwise,
             28362      except as follows:
             28363          (a) for the purpose of investigating, litigating, or enforcing the owner's or operator's
             28364      security requirement under Section 41-12a-301 , the designated agent shall verify insurance
             28365      information through the state computer network for a state or local government agency or

             28366      court;
             28367          (b) for the purpose of investigating, litigating, or enforcing the owner's or operator's
             28368      security requirement under Section 41-12a-301 , the designated agent shall, upon request, issue
             28369      to any state or local government agency or court a certificate documenting the insurance
             28370      information, according to the database, of a specific individual or motor vehicle for the time
             28371      period designated by the government agency;
             28372          (c) upon request, the department or its designated agent shall disclose whether or not a
             28373      person is an insured individual and the insurance company name to:
             28374          (i) that individual or, if that individual is deceased, any interested person of that
             28375      individual, as defined in Section 75-1-201 ;
             28376          (ii) the parent or legal guardian of that individual if the individual is an unemancipated
             28377      minor;
             28378          (iii) the legal guardian of that individual if the individual is legally incapacitated;
             28379          (iv) a person who has power of attorney from the insured individual;
             28380          (v) a person who submits a notarized release from the insured individual dated no more
             28381      than 90 days before the date the request is made; or
             28382          (vi) a person suffering loss or injury in a motor vehicle accident in which the insured
             28383      individual is involved, but only as part of an accident report as authorized in Section
             28384      41-12a-202 ;
             28385          (d) for the purpose of investigating, enforcing, or prosecuting laws or issuing citations
             28386      by state or local law enforcement agencies related to the:
             28387          (i) registration and renewal of registration of a motor vehicle under Title 41, Chapter
             28388      1a, Motor Vehicle Act;
             28389          (ii) purchase of a motor vehicle under Title 59, Chapter 12, Sales and Use Tax Act; and
             28390          (iii) owner's or operator's security requirements under Section 41-12a-301 ;
             28391          (e) upon request of a peace officer acting in an official capacity under the provisions of
             28392      Subsection (1)(d), the department or the designated agent shall, upon request, disclose relevant
             28393      information for investigation, enforcement, or prosecution;

             28394          (f) for the purpose of the state auditor, the legislative auditor general, or other auditor
             28395      of the state conducting audits of the program; and
             28396          (g) upon request of a financial institution as defined under Section 7-1-103 for the
             28397      purpose of protecting the financial institution's bona fide security interest in a motor vehicle.
             28398          (2) (a) The department may allow the designated agent to prepare and deliver upon
             28399      request, a report on the insurance information of a person or motor vehicle in accordance with
             28400      this section.
             28401          (b) The report may be in the form of:
             28402          (i) a certified copy that is considered admissible in any court proceeding in the same
             28403      manner as the original; or
             28404          (ii) information accessible through the Internet or through other electronic medium if
             28405      the department determines that sufficient security is provided to ensure compliance with this
             28406      section.
             28407          (c) The department may allow the designated agent to charge a fee established by the
             28408      department under Section [ 63-38-3.2 ] 63J-1-303 for each:
             28409          (i) document authenticated, including each certified copy;
             28410          (ii) record accessed by the Internet or by other electronic medium; and
             28411          (iii) record provided to a financial institution under Subsection (1)(g).
             28412          (3) Any person who knowingly releases or discloses information from the database for a
             28413      purpose other than those authorized in this section or to a person who is not entitled to it is
             28414      guilty of a third degree felony.
             28415          (4) An insurer is not liable to any person for complying with Section 31A-22-315 by
             28416      providing information to the designated agent.
             28417          (5) Neither the state nor the department's designated agent are liable to any person for
             28418      gathering, managing, or using the information in the database as provided in Section
             28419      31A-22-315 and this part.
             28420          Section 587. Section 41-22-5.1 is amended to read:
             28421           41-22-5.1. Rules of board relating to display of registration stickers.

             28422          In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             28423      Rulemaking Act, the board shall make rules for the display of a registration sticker on an
             28424      off-highway vehicle in accordance with Section 41-22-3 .
             28425          Section 588. Section 41-22-10.7 is amended to read:
             28426           41-22-10.7. Vehicle equipment requirements -- Rulemaking -- Exceptions.
             28427          (1) Except as provided under Subsection (3), an off-highway vehicle shall be equipped
             28428      with:
             28429          (a) brakes adequate to control the movement of and to stop and hold the vehicle under
             28430      normal operating conditions;
             28431          (b) headlights and taillights when operated between sunset and sunrise;
             28432          (c) a noise control device and except for a snowmobile, a spark arrestor device; and
             28433          (d) a safety flag, red or orange in color and a minimum of six by 12 inches, attached to
             28434      the off-highway vehicle at least eight feet above the surface of level ground, when operated on
             28435      sand dunes designated by the board.
             28436          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             28437      Administrative Rulemaking Act, the board may make rules which set standards for the
             28438      equipment and which designate sand dunes where safety flags are required under Subsection
             28439      (1).
             28440          (3) An off-highway implement of husbandry used only in agricultural operations and not
             28441      operated on a highway, is exempt from the provisions of this section.
             28442          Section 589. Section 41-22-19.5 is amended to read:
             28443           41-22-19.5. Off-highway Access and Education Restricted Account -- Creation --
             28444      Funding -- Distribution of funds by the Board of Parks and Recreation.
             28445          (1) There is created in the General Fund a restricted account known as the Off-highway
             28446      Access and Education Restricted Account.
             28447          (2) The account shall be funded by:
             28448          (a) contributions deposited into the Off-highway Access and Education Restricted
             28449      Account in accordance with Section 41-1a-230.6 ;

             28450          (b) private contributions;
             28451          (c) donations or grants from public or private entities; or
             28452          (d) interest and earnings on fund monies.
             28453          (3) Funds in the account are nonlapsing.
             28454          (4) The Legislature shall appropriate money in the account to the board.
             28455          (5) The board may expend up to 10% of the monies appropriated under Subsection (4)
             28456      to:
             28457          (a) administer account distributions in accordance with Subsections (6) through (9); and
             28458          (b) administer off-highway vehicle provisions under this chapter.
             28459          (6) The board shall distribute the funds to a charitable organization that:
             28460          (a) qualifies as being tax exempt under Section 501(c)(3) of the Internal Revenue Code;
             28461          (b) has at least one full-time employee; and
             28462          (c) has as a primary part of its mission to:
             28463          (i) protect access to public lands by motor vehicle and off-highway vehicle operators;
             28464      and
             28465          (ii) educate the public about appropriate off-highway vehicle use.
             28466          (7) The board may only consider proposals that are:
             28467          (a) proposed by a charitable organization under Subsection (6); and
             28468          (b) designed to:
             28469          (i) protect access to public lands by motor vehicle and off-highway vehicle operators;
             28470      and
             28471          (ii) educate the public about appropriate off-highway vehicle use.
             28472          (8) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             28473      Administrative Rulemaking Act, the board shall make rules providing procedures for an
             28474      organization to apply to receive funds under this section.
             28475          (9) The board may not:
             28476          (a) require matching funds from a charitable organization as a condition of receiving
             28477      funds; or

             28478          (b) prohibit the use of funds to cover litigation expenses incurred in protecting access to
             28479      public lands by motor vehicle and off-highway vehicle operators.
             28480          Section 590. Section 41-22-29 is amended to read:
             28481           41-22-29. Operation by persons under eight years of age prohibited -- Definitions
             28482      -- Exception -- Penalty.
             28483          (1) As used in this section:
             28484          (a) "Organized practice" means a scheduled motorcycle practice held in an off-road
             28485      vehicle facility designated by the division and conducted by an organization carrying liability
             28486      insurance in at least the amounts specified by the division under Subsection (5) covering all
             28487      activities associated with the practice.
             28488          (b) "Sanctioned race" means a motorcycle race conducted on a closed course and
             28489      sponsored and sanctioned by an organization carrying liability insurance in at least the amounts
             28490      specified by the division under Subsection (5) covering all activities associated with the race.
             28491          (2) Except as provided under Subsection (3), a person under eight years of age may not
             28492      operate and an owner may not give another person who is under eight years of age permission
             28493      to operate an off-highway vehicle on any public land, trail, street, or highway of this state.
             28494          (3) A child under eight years of age may participate in a sanctioned race or organized
             28495      practice if:
             28496          (a) the child is under the immediate supervision of an adult;
             28497          (b) emergency medical service personnel, as defined in Section 26-8a-102 , are on the
             28498      premises and immediately available to provide assistance at all times during the sanctioned race
             28499      or organized practice; and
             28500          (c) an ambulance provider, as defined in Section 26-8a-102 , is on the premises and
             28501      immediately available to provide assistance for a sanctioned race.
             28502          (4) Any person convicted of a violation of this section is guilty of an infraction and shall
             28503      be fined not more than $50 per offense.
             28504          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             28505      Administrative Rulemaking Act, the division shall make rules specifying the minimum amounts

             28506      of liability coverage for an organized practice or sanctioned race.
             28507          Section 591. Section 41-22-31 is amended to read:
             28508           41-22-31. Board to set standards for safety program -- Safety certificates issued --
             28509      Cooperation with public and private entities -- State immunity from suit.
             28510          (1) The board shall establish curriculum standards for a comprehensive off-highway
             28511      vehicle safety education and training program and shall implement this program.
             28512          (a) The program shall be designed to develop and instill the knowledge, attitudes,
             28513      habits, and skills necessary for the safe operation of an off-highway vehicle.
             28514          (b) Components of the program shall include the preparation and dissemination of
             28515      off-highway vehicle information and safety advice to the public and the training of off-highway
             28516      vehicle operators.
             28517          (c) Off-highway vehicle safety certificates shall be issued to those who successfully
             28518      complete training or pass the knowledge and skills test established under the program.
             28519          (2) The division shall cooperate with appropriate private organizations and associations,
             28520      private and public corporations, and local government units to implement the program
             28521      established under this section.
             28522          (3) In addition to the governmental immunity granted in [Title 63, Chapter 30d] Title
             28523      63G, Chapter 7, Governmental Immunity Act of Utah, the state is immune from suit for any act,
             28524      or failure to act, in any capacity relating to the off-highway vehicle safety education and training
             28525      program. The state is also not responsible for any insufficiency or inadequacy in the quality of
             28526      training provided by this program.
             28527          Section 592. Section 41-22-35 is amended to read:
             28528           41-22-35. Off-highway vehicle user fee -- Decal -- Agents -- Penalty for fraudulent
             28529      issuance of decal -- Deposit and use of fee revenue.
             28530          (1) (a) Except as provided in Subsection (1)(b), any nonresident owning an off-highway
             28531      vehicle who operates or gives another person permission to operate the off-highway vehicle on
             28532      any public land, trail, street, or highway in this state shall:
             28533          (i) apply for an off-highway vehicle decal issued exclusively for an off-highway vehicle

             28534      owned by a nonresident of the state;
             28535          (ii) pay an annual off-highway vehicle user fee; and
             28536          (iii) provide evidence that:
             28537          (A) the person is a nonresident; and
             28538          (B) the person is the owner of the off-highway vehicle.
             28539          (b) The provisions of Subsection (1)(a) do not apply to an off-highway vehicle if the
             28540      off-highway vehicle is:
             28541          (i) registered in another state that offers reciprocal operating privileges to Utah
             28542      residents under rules made by the board; or
             28543          (ii) used exclusively for the purposes of a scheduled competitive event sponsored by a
             28544      public or private entity or another event sponsored by a governmental entity under rules made
             28545      by the board.
             28546          (2) The off-highway vehicle user fee is $30.
             28547          (3) Upon compliance with the provisions of Subsection (1)(a), the nonresident shall:
             28548          (a) receive a nonresident off-highway vehicle user decal indicating compliance with the
             28549      provisions of Subsection (1)(a); and
             28550          (b) display the decal on the off-highway vehicle in accordance with rules made by the
             28551      board.
             28552          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             28553      Administrative Rulemaking Act, the board shall make rules establishing:
             28554          (a) procedures for:
             28555          (i) the payment of off-highway vehicle user fees; and
             28556          (ii) the display of a decal on an off-highway vehicle as required under Subsection (3)(b);
             28557          (b) acceptable evidence indicating compliance with Subsection (1);
             28558          (c) eligibility requirements for reciprocal operating privileges for nonresident users; and
             28559          (d) eligibility for scheduled competitive events or other events under Subsection
             28560      (1)(b)(ii).
             28561          (5) (a) An off-highway vehicle user decal may be issued and the off-highway vehicle

             28562      user fee may be collected by the division or agents of the division.
             28563          (b) An agent shall retain 10% of all off-highway vehicle user fees collected.
             28564          (c) The division may require agents to obtain a bond in a reasonable amount.
             28565          (d) On or before the tenth day of each month, each agent shall:
             28566          (i) report all sales to the division; and
             28567          (ii) submit all off-highway vehicle user fees collected less the remuneration provided in
             28568      Subsection (5)(b).
             28569          (e) (i) If an agent fails to pay the amount due, the division may assess a penalty of 20%
             28570      of the amount due.
             28571          (ii) Delinquent payments shall bear interest at the rate of 1% per month.
             28572          (iii) If the amount due is not paid because of bad faith or fraud, the division shall assess
             28573      a penalty of 100% of the total amount due together with interest.
             28574          (f) All fees collected by an agent, except the remuneration provided in Subsection
             28575      (5)(b), shall:
             28576          (i) be kept separate and apart from the private funds of the agent; and
             28577          (ii) belong to the state.
             28578          (g) An agent may not issue an off-highway vehicle user decal to any person unless the
             28579      person furnishes evidence of compliance with the provisions of Subsection (1)(a).
             28580          (h) A violation of any provision of this Subsection (5) is a class B misdemeanor and
             28581      may be cause for revocation of the agent authorization.
             28582          (6) Revenue generated by off-highway vehicle user fees shall be deposited in the
             28583      Off-highway Vehicle Account created in Section 41-22-19 .
             28584          Section 593. Section 41-22-36 is amended to read:
             28585           41-22-36. Fees to cover the costs of electronic payments.
             28586          (1) As used in this section:
             28587          (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221 .
             28588          (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221 .
             28589          (2) (a) The Motor Vehicle Division may collect an electronic payment fee on all

             28590      registrations and renewals of registration under Section 41-22-8 .
             28591          (b) The fee described in Subsection (2)(a) shall be imposed regardless of the method of
             28592      payment for a particular transaction.
             28593          (3) The division shall establish the fee according to the procedures and requirements of
             28594      Section [ 63-38-3.2 ] 63J-1-303 .
             28595          (4) A fee imposed under this section:
             28596          (a) shall be used by the Motor Vehicle Division as a dedicated credit to cover the costs
             28597      of electronic payments;
             28598          (b) is nonlapsing;
             28599          (c) is not subject to Subsection [ 63-38a-104 ] 63J-2-202 (2); and
             28600          (d) need not be separately identified from the fees imposed on registrations and
             28601      renewals of registration under Section 41-22-8 .
             28602          Section 594. Section 42-2-10 is amended to read:
             28603           42-2-10. Penalties.
             28604          Any person who carries on, conducts, or transacts business under an assumed name
             28605      without having complied with the provisions of this chapter, and until the provisions of this
             28606      chapter are complied with:
             28607          (1) shall not sue, prosecute, or maintain any action, suit, counterclaim, cross complaint,
             28608      or proceeding in any of the courts of this state; and
             28609          (2) may be subject to a penalty in the form of a late filing fee determined by the division
             28610      director in an amount not to exceed three times the fees charged under Section 42-2-7 and
             28611      established under Section [ 63-38-3.2 ] 63J-1-303 .
             28612          Section 595. Section 42-3-2 is amended to read:
             28613           42-3-2. Recording fee.
             28614          Any person having the name of [his] the person's farm so recorded shall first pay to the
             28615      commissioner of agriculture and food a fee determined by the commissioner pursuant to Section
             28616      [ 63-38-3.2 ] 63J-1-303 . This fee shall be transmitted to the General Fund.
             28617          Section 596. Section 42-3-4 is amended to read:

             28618           42-3-4. Cancellation by owner -- Fee.
             28619          When any owner of a registered farm desires to cancel its registered name, [he] the
             28620      owner shall write on the back of the certificate the following: "This name is canceled, and I
             28621      hereby release all rights thereunder," and shall sign such statement in the presence of a witness
             28622      and file the same in the office of the commissioner of agriculture and food. For such filing the
             28623      commissioner of agriculture and food shall charge a fee determined by the commissioner
             28624      pursuant to Section [ 63-38-3.2 ] 63J-1-303 , which shall be paid to the General Fund. The
             28625      commissioner of agriculture and food shall, when such certificate so endorsed has been filed in
             28626      [his] the commissioner's office, write on the margin of the register of such name the word
             28627      "canceled."
             28628          Section 597. Section 46-1-3 is amended to read:
             28629           46-1-3. Qualifications -- Commissioning -- Jurisdiction and term.
             28630          (1) Except as provided in Subsection (3), the lieutenant governor shall commission as a
             28631      notary any qualified person who submits an application in accordance with this chapter.
             28632          (2) A person qualified for a notarial commission shall:
             28633          (a) be 18 years of age or older;
             28634          (b) lawfully reside in this state 30 days immediately preceding the filing for a notarial
             28635      commission and maintain permanent residency thereafter;
             28636          (c) be able to read, write, and understand English;
             28637          (d) submit an application to the lieutenant governor containing no significant
             28638      misstatement or omission of fact and include at least:
             28639          (i) a statement of the applicant's personal qualifications, the applicant's residence
             28640      address, a business address in this state, and daytime telephone number;
             28641          (ii) the applicant's age and date of birth;
             28642          (iii) all criminal convictions of the applicant, including any pleas of admission and nolo
             28643      contendere;
             28644          (iv) all issuances, denials, revocations, suspensions, restrictions, and resignations of a
             28645      notarial commission or other professional license involving the applicant in this or any other

             28646      state;
             28647          (v) the acknowledgment of a passing score by the applicant on a written examination
             28648      administered under Subsection (5);
             28649          (vi) a declaration by the applicant; and
             28650          (vii) an application fee determined under Section [ 63-38-3.2 ] 63J-1-303 ;
             28651          (e) be a Utah resident or have permanent resident status under Section 245 of the
             28652      Immigration and Nationality Act; and
             28653          (f) be endorsed by two residents of the state who are over the age of 18.
             28654          (3) The lieutenant governor may deny an application based on:
             28655          (a) the applicant's conviction for a crime involving dishonesty or moral turpitude;
             28656          (b) any revocation, suspension, or restriction of a notarial commission or professional
             28657      license issued to the applicant by this or any other state;
             28658          (c) the applicant's official misconduct while acting in the capacity of a notary; or
             28659          (d) the applicant's failure to pass the written examination.
             28660          (4) A person commissioned as a notary by the lieutenant governor may perform notarial
             28661      acts in any part of this state for a term of four years, unless the person resigned or the
             28662      commission is revoked or suspended under Section 46-1-19 .
             28663          (5) Each applicant for a notarial commission shall take a written examination approved
             28664      by the lieutenant governor and submit the examination to a testing center designated by the
             28665      lieutenant governor for purposes of scoring the examination. The testing center designated by
             28666      the lieutenant governor shall issue a written acknowledgment to the applicant indicating whether
             28667      the applicant passed or failed the examination.
             28668          Section 598. Section 46-4-501 is amended to read:
             28669           46-4-501. Creation and retention of electronic records and conversion of written
             28670      records by governmental agencies.
             28671          (1) A state governmental agency may, by following the procedures and requirements of
             28672      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules
             28673      that:

             28674          (a) identify specific transactions that the agency is willing to conduct by electronic
             28675      means;
             28676          (b) identify specific transactions that the agency will never conduct by electronic means;
             28677          (c) specify the manner and format in which electronic records must be created,
             28678      generated, sent, communicated, received, and stored, and the systems established for those
             28679      purposes;
             28680          (d) if law or rule requires that the electronic records must be signed by electronic
             28681      means, specify the type of electronic signature required, the manner and format in which the
             28682      electronic signature must be affixed to the electronic record, and the identity of, or criteria that
             28683      must be met, by any third party used by a person filing a document to facilitate the process;
             28684          (e) specify control processes and procedures as appropriate to ensure adequate
             28685      preservation, disposition, integrity, security, confidentiality, and auditability of electronic
             28686      records; and
             28687          (f) identify any other required attributes for electronic records that are specified for
             28688      corresponding nonelectronic records or that are reasonably necessary under the circumstances.
             28689          (2) A state governmental agency that makes rules under this section shall submit copies
             28690      of those rules, and any amendments to those rules, to:
             28691          (a) the chief information officer established by Section 63F-1-201 ; and
             28692          (b) the Utah Technology Commission established by Section 63D-1a-201 .
             28693          (3) (a) The chief information officer may prepare model rules and standards relating to
             28694      electronic transactions that encourage and promote consistency and interoperability with similar
             28695      requirements adopted by other Utah government agencies, other states, the federal government,
             28696      and nongovernmental persons interacting with Utah governmental agencies.
             28697          (b) In preparing those model rules and standards, the chief information officer may
             28698      specify different levels of standards from which governmental agencies may choose in order to
             28699      implement the most appropriate standard for a particular application.
             28700          (c) Before submitting any model rules or standards to state governmental agencies for
             28701      their adoption as permanent rules, the chief information officer shall submit the model rules and

             28702      standards to the Utah Technology Commission for its review and suggestions.
             28703          (d) Nothing in this Subsection (3) requires a state agency to use the model rules and
             28704      standards prepared by the chief information officer when making rules under this section.
             28705          (4) Except as provided in Subsection 46-4-301 (6), nothing in this chapter requires any
             28706      state governmental agency to:
             28707          (a) conduct transactions by electronic means; or
             28708          (b) use or permit the use of electronic records or electronic signatures.
             28709          (5) Each state governmental agency shall:
             28710          (a) establish record retention schedules for any electronic records created or received in
             28711      an electronic transaction according to the standards developed by the Division of Archives
             28712      under Subsection [ 63-2-901 ] 63A-12-101 (2)(e); and
             28713          (b) obtain approval of those schedules from the State Records Committee as required
             28714      by Subsection [ 63-2-502 ] 63G-2-502 (1)(b).
             28715          Section 599. Section 46-4-503 is amended to read:
             28716           46-4-503. Government products and services provided electronically.
             28717          (1) Notwithstanding Section 46-4-501 , a state governmental agency that administers
             28718      one or more of the following transactions shall allow those transactions to be conducted
             28719      electronically:
             28720          (a) an application for or renewal of a professional or occupational license issued under
             28721      Title 58, Occupations and Professions;
             28722          (b) the renewal of a drivers license;
             28723          (c) an application for a hunting or fishing license;
             28724          (d) the filing of:
             28725          (i) a return under Title 59, Chapter 10, Individual Income Tax Act or 12, Sales and Use
             28726      Tax Act;
             28727          (ii) a court document, as defined by the Judicial Council; or
             28728          (iii) a document under Title 70A, Uniform Commercial Code;
             28729          (e) a registration for:

             28730          (i) a product; or
             28731          (ii) a brand;
             28732          (f) a renewal of a registration of a motor vehicle;
             28733          (g) a registration under:
             28734          (i) Title 16, Corporations;
             28735          (ii) Title 42, Names; or
             28736          (iii) Title 48, Partnership; or
             28737          (h) submission of an application for benefits:
             28738          (i) under Title 35A, Chapter 3, Employment Support Act;
             28739          (ii) under Title 35A, Chapter 4, Employment Security Act; or
             28740          (iii) related to accident and health insurance.
             28741          (2) The state system of public education, in coordination with the Utah Education
             28742      Network, shall make reasonable progress toward making the following services available
             28743      electronically:
             28744          (a) secure access by parents and students to student grades and progress reports;
             28745          (b) e-mail communications with:
             28746          (i) teachers;
             28747          (ii) parent-teacher associations; and
             28748          (iii) school administrators;
             28749          (c) access to school calendars and schedules; and
             28750          (d) teaching resources that may include:
             28751          (i) teaching plans;
             28752          (ii) curriculum guides; and
             28753          (iii) media resources.
             28754          (3) A state governmental agency shall:
             28755          (a) in carrying out the requirements of this section, take reasonable steps to ensure the
             28756      security and privacy of records that are private or controlled as defined by [Title 63, Chapter 2]
             28757      Title 63G, Chapter 2, Government Records Access and Management Act;

             28758          (b) in addition to those transactions listed in Subsections (1) and (2), determine any
             28759      additional services that may be made available to the public through electronic means; and
             28760          (c) as part of the agency's information technology plan required by Section 63F-1-204 ,
             28761      report on the progress of compliance with Subsections (1) through (3).
             28762          (4) Notwithstanding the other provisions of this part, a state governmental agency is
             28763      not required by this part to conduct a transaction electronically if:
             28764          (a) conducting the transaction electronically is not required by federal law; and
             28765          (b) conducting the transaction electronically is:
             28766          (i) impractical;
             28767          (ii) unreasonable; or
             28768          (iii) not permitted by laws pertaining to privacy or security.
             28769          (5) (a) For purposes of this Subsection (5), "one-stop shop" means the consolidation of
             28770      access to diverse services and agencies at one location including virtual colocation.
             28771          (b) State agencies that provide services or offer direct assistance to the business
             28772      community shall participate in the establishment, maintenance, and enhancement of an
             28773      integrated Utah business web portal known as Business.utah.gov. The purpose of the business
             28774      web portal is to provide "one-stop shop" assistance to businesses.
             28775          (c) State agencies shall partner with other governmental and nonprofit agencies whose
             28776      primary mission is to provide services or offer direct assistance to the business community in
             28777      Utah in fulfilling the requirements of this section.
             28778          (d) The following state entities shall comply with the provisions of this Subsection (5):
             28779          (i) Governor's Office of Economic Development, which shall serve as the managing
             28780      partner for the website;
             28781          (ii) Department of Workforce Services;
             28782          (iii) Department of Commerce;
             28783          (iv) Tax Commission;
             28784          (v) Department of Administrative Services - Division of Purchasing and General
             28785      Services, including other state agencies operating under a grant of authority from the division to

             28786      procure goods and services in excess of $5,000;
             28787          (vi) Department of Agriculture;
             28788          (vii) Department of Natural Resources; and
             28789          (viii) other state agencies that provide services or offer direct assistance to the business
             28790      sector.
             28791          (e) The business services available on the business web portal may include:
             28792          (i) business life cycle information;
             28793          (ii) business searches;
             28794          (iii) employment needs and opportunities;
             28795          (iv) motor vehicle registration;
             28796          (v) permit applications and renewal;
             28797          (vi) tax information;
             28798          (vii) government procurement bid notifications;
             28799          (viii) general business information;
             28800          (ix) business directories; and
             28801          (x) business news.
             28802          Section 600. Section 48-1-42 is amended to read:
             28803           48-1-42. Registration of limited liability partnerships.
             28804          (1) (a) A partnership shall register with the Division of Corporations and Commercial
             28805      Code by filing an application or a renewal statement:
             28806          (i) to become and to continue as a limited liability partnership; or
             28807          (ii) to do business in this state as a foreign limited liability partnership.
             28808          (b) The application or renewal statement shall include:
             28809          (i) the name of the limited liability partnership;
             28810          (ii) the address of its principal office;
             28811          (iii) if the principal office of the limited liability partnership is not located in this state,
             28812      the address of a registered office and the name and address of a registered agent for service of
             28813      process in this state;

             28814          (iv) the number of partners;
             28815          (v) a brief statement of the business in which the limited liability partnership engages;
             28816          (vi) a brief statement that the partnership is applying for, or seeking to renew its status
             28817      as a limited liability partnership; and
             28818          (vii) if a foreign limited liability partnership, an original certificate of fact or good
             28819      standing from the office of the lieutenant governor or other responsible authority of the state in
             28820      which the limited liability partnership is formed.
             28821          (2) The application or renewal statement required by Subsection (1) shall be executed
             28822      by a majority in voting interest of the partners or by one or more partners authorized by the
             28823      partnership to execute an application or renewal statement.
             28824          (3) The application or renewal statement shall be accompanied by a filing fee
             28825      established under Section [ 63-38-3.2 ] 63J-1-303 .
             28826          (4) The division shall register as a limited liability partnership any partnership that
             28827      submits a completed application with the required fee.
             28828          (5) (a) The registration expires one year after the date an application is filed unless the
             28829      registration is voluntarily withdrawn by filing with the division a written withdrawal notice
             28830      executed by a majority in voting interest of the partners or by one or more partners authorized
             28831      to execute a withdrawal notice.
             28832          (b) Registration of a partnership as a limited liability partnership shall be renewed if no
             28833      earlier than 60 days before the date the registration expires and no later than the date of
             28834      expiration, the limited liability partnership files with the division a renewal statement.
             28835          (c) The division shall renew the registration as a limited liability partnership of any
             28836      limited liability partnership that timely submits a completed renewal statement with the required
             28837      fee.
             28838          (d) If a renewal statement is timely filed, the registration is effective for one year after
             28839      the date the registration would have expired but for the filing or the renewal statement.
             28840          (6) The status of a partnership as a limited liability partnership is not affected by
             28841      changes in the information stated in the application or renewal statement which take place after

             28842      the filing of an application or a renewal statement.
             28843          (7) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             28844      Administrative Rulemaking Act, the division may issue rules providing for the form content and
             28845      submittal of applications for registration or of renewal statements.
             28846          Section 601. Section 48-2a-203.5 is amended to read:
             28847           48-2a-203.5. Involuntary dissolution of certificate.
             28848          (1) A certificate of limited partnership may be canceled involuntarily by a decree of a
             28849      district court having competent jurisdiction upon petition by the director of the division, or by a
             28850      party in interest who shall have standing to bring such an action, when it is established that:
             28851          (a) the limited partnership procured the issuance of a stamped copy of its certificate of
             28852      limited partnership or the execution of the certificate of limited partnership through fraud, in
             28853      which case the certificate shall be canceled as of the date of its filing; or
             28854          (b) the limited partnership has continually exceeded or abused the authority conferred
             28855      upon it by law or by the partnership agreement.
             28856          (2) A domestic limited partnership or a foreign limited partnership registered in this
             28857      state is delinquent if:
             28858          (a) it does not file an annual report within the time prescribed by this chapter; or
             28859          (b) it fails to maintain a registered agent in this state for 60 consecutive days.
             28860          (3) (a) The division shall mail a notice of delinquency of a delinquent limited partnership
             28861      to:
             28862          (i) the registered agent of the limited partnership; or
             28863          (ii) if there is no registered agent of record, at least one general partner of the limited
             28864      partnership.
             28865          (b) The notice of delinquency required under Subsection (3)(a) shall state:
             28866          (i) the nature of the delinquency; and
             28867          (ii) that the limited partnership shall be dissolved unless within 60 days of the mailing of
             28868      the notice of delinquency it corrects the delinquency.
             28869          (c) The division shall include with the notice of delinquency any forms necessary to

             28870      correct the delinquency.
             28871          (4) (a) If the limited partnership does not remove the delinquency within 60 days from
             28872      the date the division mails the notice of delinquency, the limited partnership's certificate or
             28873      registration shall be dissolved involuntarily by the director of the division effective on the date
             28874      specified in Subsection (4)(c).
             28875          (b) If a limited partnership's certificate or registration is dissolved under Subsection
             28876      (4)(a), the division shall mail a certificate of dissolution to:
             28877          (i) the registered agent of the limited partnership; or
             28878          (ii) if there is no registered agent of record, at least one partner of the limited
             28879      partnership.
             28880          (c) A limited partnership's date of dissolution is five days from the date the division
             28881      mailed the certificate of dissolution under Subsection (4)(b).
             28882          (d) A dissolved limited partnership may not be reinstated except as set forth in
             28883      Subsection (5).
             28884          (e) On the date of dissolution, any assumed names filed on behalf of the dissolved
             28885      limited partnership under Title 42, Chapter 2, Conducting Business Under an Assumed Name,
             28886      are canceled.
             28887          (f) Notwithstanding Subsection (4)(e), the name of a dissolved limited partnership and
             28888      any assumed names filed on its behalf are not available for two years from the date of
             28889      dissolution for use by any other person:
             28890          (i) transacting business in this state; or
             28891          (ii) doing business under an assumed name under Title 42, Chapter 2, Conducting
             28892      Business Under an Assumed Name.
             28893          (g) Notwithstanding Subsection (4)(e), if the limited partnership that is dissolved is
             28894      reinstated in accordance with this section, the registration of the name of the limited partnership
             28895      and any assumed names filed on its behalf are reinstated back to the date of dissolution.
             28896          (5) Any limited partnership whose certificate or registration has been dissolved under
             28897      this section or Section 48-2a-203 may be reinstated within two years following the date of

             28898      dissolution upon:
             28899          (a) application; and
             28900          (b) payment of:
             28901          (i) all penalties; and
             28902          (ii) all reinstatement fees.
             28903          (6) A limited partner of a limited partnership is not liable as a general partner of the
             28904      limited partnership solely by reason of the limited partnership having had its limited partnership
             28905      certificate or registration dissolved.
             28906          (7) A limited partnership that has had its certificate or registration dissolved may not
             28907      maintain any action, suit, or proceeding in any court of this state until it has reinstated its
             28908      certificate or registration following dissolution.
             28909          (8) If the division denies a limited partnership's application for reinstatement following a
             28910      dissolution under this section, the division shall mail the limited partnership written notice:
             28911          (a) setting forth the reasons for denying the application; and
             28912          (b) stating that the limited partnership has the right to appeal the division's
             28913      determination to the executive director of the Department of Commerce in accordance with
             28914      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             28915          (9) A notice or certificate mailed under this section shall be:
             28916          (a) mailed first-class, postage prepaid; and
             28917          (b) addressed to the most current mailing address appearing on the records of the
             28918      division for:
             28919          (i) the registered agent of the limited partnership corporation, if the notice is required to
             28920      be mailed to the registered agent; or
             28921          (ii) the partner of the limited partnership that is mailed the notice, if the notice is
             28922      required to be mailed to a partner of the limited partnership.
             28923          Section 602. Section 48-2a-206 is amended to read:
             28924           48-2a-206. Filing with the division.
             28925          (1) An original and one copy of the certificate of limited partnership, and of any

             28926      certificates of amendment or cancellation, or of any judicial decree of amendment or
             28927      cancellation, shall be delivered to the division. A person who executes a certificate as an
             28928      attorney-in-fact or fiduciary need not exhibit evidence of [his] the person's authority as a
             28929      prerequisite to filing. Unless the division finds that any certificate does not conform to law as to
             28930      its form, upon receipt of all filing fees established under Section [ 63-38-3.2 ] 63J-1-303 , it shall:
             28931          (a) place on the original and the copy a stamp or seal indicating the time, day, month,
             28932      and year of the filing, the director of the division's signature, and the division's seal, or facsimiles
             28933      thereof, and the name of the division;
             28934          (b) file the signed original in its office; and
             28935          (c) return the stamped copy to the person who filed it or [his] the person's
             28936      representative.
             28937          (2) The stamped copy of the certificate of limited partnership and of any certificate of
             28938      amendment or cancellation shall be conclusive evidence that all conditions precedent required
             28939      for the formation, amendment, or cancellation of a limited partnership have been complied with
             28940      and the limited partnership has been formed, amended, or canceled under this chapter, except
             28941      with respect to an action for involuntary cancellation of the limited partnership's certificate for
             28942      fraud under Subsection 48-2a-203.5 (1)(a).
             28943          (3) Upon the filing of a certificate of amendment or judicial decree of amendment with
             28944      the division, the certificate of limited partnership is amended as set forth in the certificate of
             28945      amendment or judicial decree of amendment, and upon filing a certificate of cancellation, or of
             28946      a judicial decree of cancellation, the division shall cancel the certificate of limited partnership
             28947      effective as of the date the cancellation was filed or as of the date specified in the decree, unless
             28948      a later effective date is specified in the cancellation.
             28949          Section 603. Section 48-2a-1107 is amended to read:
             28950           48-2a-1107. Fees.
             28951          The division may charge and collect fees in accordance with the provisions of Section
             28952      [ 63-38-3.2 ] 63J-1-303 .
             28953          Section 604. Section 48-2c-214 is amended to read:

             28954           48-2c-214. Fees.
             28955          Unless otherwise provided by statute, the division shall collect fees for its services in
             28956      amounts determined by the department in accordance with the provisions of Section [ 63-38-3.2 ]
             28957      63J-1-303 .
             28958          Section 605. Section 48-2c-1209 is amended to read:
             28959           48-2c-1209. Appeal from denial of reinstatement.
             28960          If the division denies a company's application for reinstatement under Section
             28961      48-2c-1208 following administrative dissolution, the division shall mail to the company in the
             28962      manner provided in Subsection 48-2c-1207 (6) written notice:
             28963          (1) setting forth the reasons for denying the application; and
             28964          (2) stating that the company has the right to appeal the division's determination to the
             28965      executive director of the Department of Commerce in accordance with [Title 63, Chapter 46b]
             28966      Title 63G, Chapter 4, Administrative Procedures Act.
             28967          Section 606. Section 49-11-613 is amended to read:
             28968           49-11-613. Appeals procedure -- Right of appeal to hearing officer -- Board
             28969      reconsideration -- Judicial review.
             28970          (1) (a) All members, retirees, participants, alternative payees, or covered individuals of
             28971      a system, plan, or program under this title shall acquaint themselves with their rights and
             28972      obligations under this title.
             28973          (b) Any dispute regarding a benefit, right, obligation, or employment right under this
             28974      title is subject to the procedures provided under this section.
             28975          (c) A person who disputes a benefit, right, obligation, or employment right under this
             28976      title shall request a ruling by the executive director who may delegate the decision to the deputy
             28977      director.
             28978          (d) A person who is dissatisfied by a ruling of the executive director or deputy director
             28979      with respect to any benefit, right, obligation, or employment right under this title shall request a
             28980      review of that claim by a hearing officer.
             28981          (2) The hearing officer shall:

             28982          (a) be hired by the executive director after consultation with the board;
             28983          (b) follow the procedures and requirements of [Title 63, Chapter 46b] Title 63G,
             28984      Chapter 4, Administrative Procedures Act, except as specifically modified under this title;
             28985          (c) hear and determine all facts pertaining to applications for benefits under any system,
             28986      plan, or program under this title and all matters pertaining to the administration of the office;
             28987      and
             28988          (d) make conclusions of law in determining the person's rights under any system, plan,
             28989      or program under this title and matters pertaining to the administration of the office.
             28990          (3) The board shall review and approve or deny all decisions of the hearing officer in
             28991      accordance with rules adopted by the board.
             28992          (4) The moving party in any proceeding brought under this section shall bear the burden
             28993      of proof.
             28994          (5) A party may file an application for reconsideration by the board upon any of the
             28995      following grounds:
             28996          (a) that the board acted in excess of its powers;
             28997          (b) that the order or award was procured by fraud;
             28998          (c) that the evidence does not justify the determination of the hearing officer; or
             28999          (d) that the party has discovered new material evidence that could not, with reasonable
             29000      diligence, have been discovered or procured prior to the hearing.
             29001          (6) The board shall affirm, reverse, or modify the decision of the hearing officer, or
             29002      remand the application to the hearing officer for further consideration.
             29003          (7) A party aggrieved by the board's decision may obtain judicial review by complying
             29004      with the procedures and requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             29005      Administrative Procedures Act.
             29006          (8) The board may make rules to implement this section.
             29007          Section 607. Section 49-14-201 is amended to read:
             29008           49-14-201. System membership -- Eligibility.
             29009          (1) Except as provided in Section 49-15-201 , a public safety service employee of a

             29010      participating employer participating in this system is eligible for service credit in this system at
             29011      the earliest of:
             29012          (a) July 1, 1969, if the public safety service employee was employed by the participating
             29013      employer on July 1, 1969, and the participating employer was participating in this system on
             29014      that date;
             29015          (b) the date the participating employer begins participating in this system if the public
             29016      safety service employee was employed by the participating employer on that date; or
             29017          (c) the date the public safety service employee is employed by the participating
             29018      employer and is eligible to perform public safety service.
             29019          (2) (a) (i) A participating employer that has public safety service and firefighter service
             29020      employees that require cross-training and duty shall enroll those dual purpose employees in the
             29021      system in which the greatest amount of time is actually worked.
             29022          (ii) The employees shall either be full-time public safety service or full-time firefighter
             29023      service employees of the participating employer.
             29024          (b) (i) Prior to transferring a dual purpose employee from one system to another, the
             29025      participating employer shall receive written permission from the office.
             29026          (ii) The office may request documentation to verify the appropriateness of the transfer.
             29027          (3) The board may combine or segregate the actuarial experience of participating
             29028      employers in this system for the purpose of setting contribution rates.
             29029          (4) (a) (i) Each participating employer participating in this system shall annually submit
             29030      to the office a schedule indicating the positions to be covered under this system in accordance
             29031      with this chapter.
             29032          (ii) The office may require documentation to justify the inclusion of any position under
             29033      this system.
             29034          (b) If there is a dispute between the office and a participating employer or employee
             29035      over any position to be covered, the disputed position shall be submitted to the Peace Officer
             29036      Standards and Training Council established under Section 53-6-106 for determination.
             29037          (c) (i) The Peace Officer Standards and Training Council's authority to decide eligibility

             29038      for public safety service credit is limited to claims for coverage under this system for time
             29039      periods after July 1, 1989.
             29040          (ii) A decision of the Peace Officer Standards and Training Council may not be applied
             29041      to service credit earned in another system prior to July 1, 1989.
             29042          (iii) Except as provided under Subsection (4)(c)(iv), a decision of the Peace Officer
             29043      Standards and Training Council granting a position coverage under this system may only be
             29044      applied prospectively from the date of that decision.
             29045          (iv) A decision of the Peace Officer Standards and Training Council granting a position
             29046      coverage under this system may be applied retroactively only if:
             29047          (A) the participating employer covered other similarly situated positions under this
             29048      system during the time period in question; and
             29049          (B) the position otherwise meets all eligibility requirements for receiving service credit
             29050      in this system during the period for which service credit is to be granted.
             29051          (5) The Peace Officer Standards and Training Council may use a subcommittee to
             29052      provide a recommendation to the council in determining disputes between the office and a
             29053      participating employer or employee over a position to be covered under this system.
             29054          (6) The Peace Officer Standards and Training Council shall comply with [Title 63,
             29055      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in resolving coverage
             29056      disputes in this system.
             29057          (7) A public safety employee who is transferred or promoted to an administration
             29058      position not covered by this system shall continue to earn public safety service credit in this
             29059      system as long as the employee remains employed in the same department.
             29060          (8) Any employee who is reassigned to the Department of Technology Services or to
             29061      the Department of Human Resource Management, and who was a member of this system, shall
             29062      be entitled to remain a member of this system.
             29063          (9) (a) To determine that a position is covered under this system, the office and, if a
             29064      coverage dispute arises, the Peace Officer Standards and Training Council shall find that the
             29065      position requires the employee to:

             29066          (i) place the employee's life or personal safety at risk; and
             29067          (ii) complete training as provided in Section 53-13-103 , 53-13-104 , or 53-13-105 .
             29068          (b) If a position satisfies the requirements of Subsection (9)(a), the office and the Peace
             29069      Officer Standards and Training Council shall consider whether or not the position requires the
             29070      employee to:
             29071          (i) perform duties that consist primarily of actively preventing or detecting crime and
             29072      enforcing criminal statutes or ordinances of this state or any of its political subdivisions;
             29073          (ii) perform duties that consist primarily of providing community protection; and
             29074          (iii) respond to situations involving threats to public safety and make emergency
             29075      decisions affecting the lives and health of others.
             29076          (10) If a subcommittee is used to recommend the determination of disputes to the Peace
             29077      Officer Standards and Training Council, the subcommittee shall comply with the requirements
             29078      of Subsection (9) in making its recommendation.
             29079          (11) A final order of the Peace Officer Standards and Training Council regarding a
             29080      dispute is a final agency action for purposes of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             29081      Administrative Procedures Act.
             29082          (12) Except as provided under Subsection (13), if a participating employer's public
             29083      safety service employees are not covered by this system or under Chapter 15, Public Safety
             29084      Noncontributory Retirement Act, as of January 1, 1998, those public safety service employees
             29085      who may otherwise qualify for membership in this system shall, at the discretion of the
             29086      participating employer, remain in their current retirement system.
             29087          (13) (a) A public safety service employee employed by an airport police department,
             29088      which elects to cover its public safety service employees under the Public Safety
             29089      Noncontributory Retirement System under Subsection (12), may elect to remain in the public
             29090      safety service employee's current retirement system.
             29091          (b) The public safety service employee's election to remain in the current retirement
             29092      system under Subsection (13)(a):
             29093          (i) shall be made at the time the employer elects to move its public safety service

             29094      employees to a public safety retirement system;
             29095          (ii) documented by written notice to the participating employer; and
             29096          (iii) is irrevocable.
             29097          Section 608. Section 49-15-201 is amended to read:
             29098           49-15-201. System membership -- Eligibility.
             29099          (1) (a) A public safety service employee employed by the state after July 1, 1989, is
             29100      eligible for service credit in this system.
             29101          (b) A public safety service employee employed by the state prior to July 1, 1989, may
             29102      either elect to receive service credit in this system or continue to receive service credit under the
             29103      system established under Chapter 14, Public Safety Contributory Retirement Act, by following
             29104      the procedures established by the board under this chapter.
             29105          (2) (a) Public safety service employees of a participating employer other than the state
             29106      that elected on or before July 1, 1989, to remain in the Public Safety Contributory Retirement
             29107      System shall be eligible only for service credit in that system.
             29108          (b) (i) A participating employer other than the state that elected on or before July 1,
             29109      1989, to participate in this system shall, have allowed, prior to July 1, 1989, a public safety
             29110      service employee to elect to participate in either this system or the Public Safety Contributory
             29111      Retirement System.
             29112          (ii) Except as expressly allowed by this title, the election of the public safety service
             29113      employee is final and may not be changed.
             29114          (c) A public safety service employee hired by a participating employer other than the
             29115      state after July 1, 1989, shall become a member in this system.
             29116          (d) A public safety service employee of a participating employer other than the state
             29117      who began participation in this system after July 1, 1989, is only eligible for service credit in this
             29118      system.
             29119          (3) (a) (i) A participating employer that has public safety service and firefighter service
             29120      employees that require cross-training and duty shall enroll those dual purpose employees in the
             29121      system in which the greatest amount of time is actually worked.

             29122          (ii) The employees shall either be full-time public safety service or full-time firefighter
             29123      service employees of the participating employer.
             29124          (b) (i) Prior to transferring a dual purpose employee from one system to another, the
             29125      participating employer shall receive written permission from the office.
             29126          (ii) The office may request documentation to verify the appropriateness of the transfer.
             29127          (4) The board may combine or segregate the actuarial experience of participating
             29128      employers in this system for the purpose of setting contribution rates.
             29129          (5) (a) (i) Each participating employer participating in this system shall annually submit
             29130      to the office a schedule indicating the positions to be covered under this system in accordance
             29131      with this chapter.
             29132          (ii) The office may require documentation to justify the inclusion of any position under
             29133      this system.
             29134          (b) If there is a dispute between the office and a participating employer or employee
             29135      over any position to be covered, the disputed position shall be submitted to the Peace Officer
             29136      Standards and Training Council established under Section 53-6-106 for determination.
             29137          (c) (i) The Peace Officer Standards and Training Council's authority to decide eligibility
             29138      for public safety service credit is limited to claims for coverage under this system for time
             29139      periods after July 1, 1989.
             29140          (ii) A decision of the Peace Officer Standards and Training Council may not be applied
             29141      to service credit earned in another system prior to July 1, 1989.
             29142          (iii) Except as provided under Subsection (5)(c)(iv), a decision of the Peace Officer
             29143      Standards and Training Council granting a position coverage under this system may only be
             29144      applied prospectively from the date of that decision.
             29145          (iv) A decision of the Peace Officer Standards and Training Council granting a position
             29146      coverage under this system may be applied retroactively only if:
             29147          (A) the participating employer covered other similarly situated positions under this
             29148      system during the time period in question; and
             29149          (B) the position otherwise meets all eligibility requirements for receiving service credit

             29150      in this system during the period for which service credit is to be granted.
             29151          (6) The Peace Officer Standards and Training Council may use a subcommittee to
             29152      provide a recommendation to the council in determining disputes between the office and a
             29153      participating employer or employee over a position to be covered under this system.
             29154          (7) The Peace Officer Standards and Training Council shall comply with [Title 63,
             29155      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in resolving coverage
             29156      disputes in this system.
             29157          (8) A public safety service employee who is transferred or promoted to an
             29158      administration position not covered by this system shall continue to earn public safety service
             29159      credit in this system as long as the employee remains employed in the same department.
             29160          (9) Any employee who is reassigned to the Department of Technology Services or to
             29161      the Department of Human Resource Management, and who was a member in this system, shall
             29162      be entitled to remain a member in this system.
             29163          (10) (a) To determine that a position is covered under this system, the office and, if a
             29164      coverage dispute arises, the Peace Officer Standards and Training Council shall find that the
             29165      position requires the employee to:
             29166          (i) place the employee's life or personal safety at risk; and
             29167          (ii) complete training as provided in Section 53-13-103 , 53-13-104 , or 53-13-105 .
             29168          (b) If a position satisfies the requirements of Subsection (10)(a), the office and Peace
             29169      Officer Standards and Training Council shall consider whether the position requires the
             29170      employee to:
             29171          (i) perform duties that consist primarily of actively preventing or detecting crime and
             29172      enforcing criminal statutes or ordinances of this state or any of its political subdivisions;
             29173          (ii) perform duties that consist primarily of providing community protection; and
             29174          (iii) respond to situations involving threats to public safety and make emergency
             29175      decisions affecting the lives and health of others.
             29176          (11) If a subcommittee is used to recommend the determination of disputes to the Peace
             29177      Officer Standards and Training Council, the subcommittee shall comply with the requirements

             29178      of Subsection (10) in making its recommendation.
             29179          (12) A final order of the Peace Officer Standards and Training Council regarding a
             29180      dispute is a final agency action for purposes of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             29181      Administrative Procedures Act.
             29182          (13) Except as provided under Subsection (14), if a participating employer's public
             29183      safety service employees are not covered by this system under Chapter 14, Public Safety
             29184      Contributory Retirement Act, as of January 1, 1998, those public safety service employees who
             29185      may otherwise qualify for membership in this system shall, at the discretion of the participating
             29186      employer, remain in their current retirement system.
             29187          (14) (a) A public safety service employee employed by an airport police department,
             29188      which elects to cover its public safety service employees under the Public Safety
             29189      Noncontributory Retirement System under Subsection (13), may elect to remain in the public
             29190      safety service employee's current retirement system.
             29191          (b) The public safety service employee's election to remain in the current retirement
             29192      system under Subsection (14)(a):
             29193          (i) shall be made at the time the employer elects to move its public safety service
             29194      employees to a public safety retirement system;
             29195          (ii) documented by written notice to the participating employer; and
             29196          (iii) is irrevocable.
             29197          Section 609. Section 51-2a-301 is amended to read:
             29198           51-2a-301. State auditor responsibilities.
             29199          (1) Except for political subdivisions that do not receive or expend public funds, the
             29200      state auditor shall adopt guidelines, qualifications criteria, and procurement procedures for use
             29201      in the procurement of audit services for all entities that are required by Section 51-2a-201 to
             29202      cause an accounting report to be made.
             29203          (2) The state auditor shall follow the notice, hearing, and publication requirements of
             29204      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             29205          (3) The state auditor shall:

             29206          (a) review the accounting report submitted to him under Section 51-2a-201 ; and
             29207          (b) if necessary, conduct additional inquiries or examinations of financial statements of
             29208      the entity submitting that information.
             29209          (4) The governing board of each entity required by Section 51-2a-201 to submit an
             29210      accounting report to the state auditor's office shall comply with the guidelines, criteria, and
             29211      procedures established by the state auditor.
             29212          (5) Each fifth year, the state auditor shall:
             29213          (a) review the dollar criteria established in Section 51-2a-201 to determine if they need
             29214      to be increased or decreased; and
             29215          (b) if the auditor determines that they need to be increased or decreased, notify the
             29216      Legislature of that need.
             29217          (6) (a) The state auditor may require a higher level of accounting report than is required
             29218      under Section 51-2a-201 .
             29219          (b) The state auditor shall:
             29220          (i) develop criteria under which a higher level of accounting report may be required;
             29221      and
             29222          (ii) provide copies of those criteria to entities required to analyze and report under
             29223      Section 51-2a-201 .
             29224          Section 610. Section 51-5-7 is amended to read:
             29225           51-5-7. Expending plans and administrative expenses provided by legislative
             29226      appropriation and included in governor's budget.
             29227          (1) (a) Except as provided in Subsection (1)(b), the revenues and other resources of the
             29228      governmental funds are subject to legislative review and appropriation for each fiscal period.
             29229          (b) Restricted Special Revenue Funds are subject to legislative review for each fiscal
             29230      period.
             29231          (2) Notwithstanding the source of the revenues and the restrictions imposed upon the
             29232      expenditure of the revenues, the planned expenditures for the governmental funds, except
             29233      Restricted Special Revenue Funds, shall be incorporated into the governor's budget and

             29234      submitted to the Legislature according to Section [ 63-38-2 ] 63J-1-201 .
             29235          (3) Expenses required in the administrative activities of the Restricted Special Revenue
             29236      Funds, the Enterprise Funds, the Internal Service Funds, and the Trust and Agency Funds are
             29237      subject to legislative review each year.
             29238          (a) Pro forma financial statements, including balance sheets, revenue and expenditure
             29239      statements, statements of changes in financial position, and other statements that may be
             29240      required for these funds shall be included in the governor's budget as information items and
             29241      submitted to the Legislature according to Section [ 63-38-2 ] 63J-1-201 .
             29242          (b) If the operating results of any of these funds demonstrate that an appropriation is
             29243      needed from any other fund or subfund, that appropriation shall be included in the governor's
             29244      budget as a budget request.
             29245          Section 611. Section 51-7-3.5 , which is renumbered from Section 63-13-1 is
             29246      renumbered and amended to read:
             29247           [63-13-1].     51-7-3.5. Commences July 1st.
             29248          The fiscal year of the state of Utah shall commence on the first day of July of each year.
             29249          Section 612. Section 51-9-101 is enacted to read:
             29250     
CHAPTER 9. FUNDS AND ACCOUNTS ACT

             29251     
Part 1. General Provisions

             29252          51-9-101. Title.
             29253          This chapter is known as the "Funds and Accounts Act."
             29254          Section 613. Section 51-9-201 , which is renumbered from Section 63-97-201 is
             29255      renumbered and amended to read:
             29256     
Part 2. Tobacco Settlement Funds and Endowment

             29257           [63-97-201].     51-9-201. Creation of Tobacco Settlement Restricted
             29258      Account.
             29259          (1) There is created within the General Fund a restricted account known as the
             29260      "Tobacco Settlement Restricted Account."
             29261          (2) The account shall earn interest.

             29262          (3) The account shall consist of:
             29263          (a) until July 1, 2003, 50% of all funds of every kind that are received by the state that
             29264      are related to the settlement agreement that the state entered into with leading tobacco
             29265      manufacturers on November 23, 1998;
             29266          (b) on and after July 1, 2003 and until July 1, 2004, 80% of all funds of every kind that
             29267      are received by the state that are related to the settlement agreement that the state entered into
             29268      with leading tobacco manufacturers on November 23, 1998;
             29269          (c) on and after July 1, 2004 and until July 1, 2005, 70% of all funds of every kind that
             29270      are received by the state that are related to the settlement agreement that the state entered into
             29271      with leading tobacco manufacturers on November 23, 1998;
             29272          (d) on and after July 1, 2005 and until July 1, 2007, 75% of all funds of every kind that
             29273      are received by the state that are related to the settlement agreement that the state entered into
             29274      with leading tobacco manufacturers on November 23, 1998;
             29275          (e) on and after July 1, 2007, 60% of all funds of every kind that are received by the
             29276      state that are related to the settlement agreement that the state entered into with leading tobacco
             29277      manufacturers on November 23, 1998; and
             29278          (f) interest earned on the account.
             29279          (4) To the extent that funds will be available for appropriation in a given fiscal year,
             29280      those funds shall be appropriated from the account in the following order:
             29281          (a) $10,300,000 to the Department of Health for the Children's Health Insurance
             29282      Program created in Section 26-40-103 and for restoration of dental benefits in the Children's
             29283      Health Insurance Program;
             29284          (b) $4,000,000 to the Department of Health for alcohol, tobacco, and other drug
             29285      prevention, reduction, cessation, and control programs that promote unified messages and make
             29286      use of media outlets, including radio, newspaper, billboards, and television, and with a
             29287      preference in funding given to tobacco-related programs;
             29288          (c) $193,700 to the Administrative Office of the Courts and $1,296,300 to the
             29289      Department of Human Services for the statewide expansion of the drug court program;

             29290          (d) $77,400 to the Board of Pardons, $81,700 to the Department of Corrections, and
             29291      $350,900 to the Department of Human Services for a drug board pilot program;
             29292          (e) $4,000,000 to the State Board of Regents for the University of Utah Health
             29293      Sciences Center to benefit the health and well-being of Utah citizens through in-state research,
             29294      treatment, and educational activities; and
             29295          (f) any remaining funds as directed by the Legislature through appropriation.
             29296          (5) (a) If tobacco funds in dispute for attorneys fees are received by the state, those
             29297      funds shall be divided and deposited in accordance with Subsection (3) and Section [ 63-97-301 ]
             29298      51-9-202 .
             29299          (b) The amount appropriated from the Tobacco Settlement Restricted Account to the
             29300      Department of Health for alcohol, tobacco, and other drug programs described in Subsection
             29301      (4)(b), including the funding preference for tobacco-related programs, shall be increased by up
             29302      to $2,000,000 in a given fiscal year to the extent that funds in dispute for attorneys fees are
             29303      available to the state for appropriation from the account.
             29304          (6) Each state agency identified in Subsection (4) shall provide an annual report on the
             29305      program and activities funded under Subsection (4) to:
             29306          (a) the Health and Human Services Interim Committee no later than September 1; and
             29307          (b) the Health and Human Services Joint Appropriations Subcommittee.
             29308          Section 614. Section 51-9-202 , which is renumbered from Section 63-97-301 is
             29309      renumbered and amended to read:
             29310           [63-97-301].     51-9-202. Permanent state trust fund.
             29311          (1) Until July 1, 2003, 50% of all funds of every kind that are received by the state that
             29312      are related to the settlement agreement that the state entered into with leading tobacco
             29313      manufacturers on November 23, 1998, shall be deposited into the permanent state trust fund
             29314      created by and operated under Utah Constitution Article XXII, Section 4.
             29315          (2) On and after July 1, 2003 and until July 1, 2004 20% of the funds of any kind
             29316      received by the state that are related to the settlement agreement that the state entered into with
             29317      leading tobacco manufacturers shall be deposited into the permanent state trust fund created by

             29318      and operated under Utah Constitution Article XXII, Section 4.
             29319          (3) On and after July 1, 2004 and until July 1, 2005, 30% of all funds of any kind
             29320      received by the state that are related to the settlement agreement that the state entered into with
             29321      leading tobacco manufacturers shall be deposited into the General Fund Budget Reserve
             29322      Account created in Section [ 63-38-2.5 ] 63J-1-202 .
             29323          (4) On and after July 1, 2005 and until July 1, 2007, 25% of all funds of any kind
             29324      received by the state that are related to the settlement agreement that the state entered into with
             29325      leading tobacco manufacturers shall be deposited into the permanent state trust fund created by
             29326      and operated under Utah Constitution Article XXII, Section 4.
             29327          (5) On and after July 1, 2007, 40% of all funds of every kind that are received by the
             29328      state that are related to the settlement agreement that the state entered into with leading tobacco
             29329      manufacturers on November 23, 1998, shall be deposited into the permanent state trust fund
             29330      created by and operated under Utah Constitution Article XXII, Section 4.
             29331          (6) Funds in the permanent state trust fund shall be deposited or invested pursuant to
             29332      Section 51-7-12.1 .
             29333          (7) (a) In accordance with Utah Constitution Article XXII, Section 4, the interest and
             29334      dividends earned annually from the permanent state trust fund shall be deposited in the General
             29335      Fund. There shall be transferred on an ongoing basis from the General Fund to the permanent
             29336      state trust fund created under Utah Constitution Article XXII, Section 4, an amount equal to
             29337      50% of the interest and dividends earned annually from the permanent state trust fund. The
             29338      amount transferred into the fund under this Subsection (7)(a) shall be treated as principal.
             29339          (b) Any annual interest or dividends earned from the permanent state trust fund that
             29340      remain in the General Fund after Subsection (7)(a) may be appropriated by the Legislature.
             29341          (c) Any realized or unrealized gains or losses on investments in the permanent state
             29342      trust fund shall remain in the permanent state trust fund.
             29343          (8) This section does not apply to funds deposited under Chapter 97a, Infrastructure
             29344      and Economic Diversification Investment Account and Severance Tax Holding Account into the
             29345      permanent state trust fund.

             29346          Section 615. Section 51-9-203 , which is renumbered from Section 63-97-401 is
             29347      renumbered and amended to read:
             29348           [63-97-401].     51-9-203. Requirements for tobacco programs.
             29349          (1) To be eligible to receive funding under this [chapter] part for a tobacco prevention,
             29350      reduction, cessation, or control program, an organization, whether private, governmental, or
             29351      quasi-governmental, shall:
             29352          (a) submit a request to the Department of Health containing the following information:
             29353          (i) for media campaigns to prevent or reduce smoking, the request shall demonstrate
             29354      sound management and periodic evaluation of the campaign's relevance to the intended
             29355      audience, particularly in campaigns directed toward youth, including audience awareness of the
             29356      campaign and recollection of the main message;
             29357          (ii) for school-based education programs to prevent and reduce youth smoking, the
             29358      request shall describe how the program will be effective in preventing and reducing youth
             29359      smoking;
             29360          (iii) for community-based programs to prevent and reduce smoking, the request shall
             29361      demonstrate that the proposed program:
             29362          (A) has a comprehensive strategy with a clear mission and goals;
             29363          (B) provides for committed, caring, and professional leadership; and
             29364          (C) if directed toward youth:
             29365          (I) offers youth-centered activities in youth accessible facilities;
             29366          (II) is culturally sensitive, inclusive, and diverse;
             29367          (III) involves youth in the planning, delivery, and evaluation of services that affect
             29368      them; and
             29369          (IV) offers a positive focus that is inclusive of all youth; and
             29370          (iv) for enforcement, control, and compliance program, the request shall demonstrate
             29371      that the proposed program can reasonably be expected to reduce the extent to which tobacco
             29372      products are available to individuals under the age of 19;
             29373          (b) agree, by contract, to file an annual written report with the Department of Health.

             29374      The report shall contain the following:
             29375          (i) the amount funded;
             29376          (ii) the amount expended;
             29377          (iii) a description of the program or campaign and the number of adults and youth who
             29378      participated;
             29379          (iv) specific elements of the program or campaign meeting the applicable criteria set
             29380      forth in Subsection (1)(a); and
             29381          (v) a statement concerning the success and effectiveness of the program or campaign;
             29382          (c) agree, by contract, to not use any funds received under this [chapter] part directly or
             29383      indirectly, to:
             29384          (i) engage in any lobbying or political activity, including the support of, or opposition
             29385      to, candidates, ballot questions, referenda, or similar activities; or
             29386          (ii) engage in litigation with any tobacco manufacturer, retailer, or distributor, except to
             29387      enforce:
             29388          (A) the provisions of the Master Settlement Agreement;
             29389          (B) Title 26, Chapter 38, Utah Clean Air Act;
             29390          (C) Title 26, Chapter 42, Civil Penalties for Tobacco Sales to Underaged Persons; and
             29391          (D) Title 77, Chapter 39, Sale of Tobacco and Alcohol to Underaged Persons; and
             29392          (d) agree, by contract, to repay the funds provided under this [chapter] part if the
             29393      organization:
             29394          (i) fails to file a timely report as required by Subsection (1)(b); or
             29395          (ii) uses any portion of the funds in violation of Subsection (1)(c).
             29396          (2) The Department of Health shall review and evaluate the success and effectiveness of
             29397      any program or campaign that receives funding pursuant to a request submitted under
             29398      Subsection (1). The review and evaluation:
             29399          (a) shall include a comparison of annual smoking trends;
             29400          (b) may be conducted by an independent evaluator; and
             29401          (c) may be paid for by funds appropriated from the account for that purpose.

             29402          (3) The Department of Health shall annually report to the Health and Human Services
             29403      Appropriations Subcommittee on the reviews conducted pursuant to Subsection (2).
             29404          (4) An organization that fails to comply with the contract requirements set forth in
             29405      Subsection (1) shall:
             29406          (a) repay the state as provided in Subsection (1)(d); and
             29407          (b) be disqualified from receiving funds under this [chapter] part in any subsequent
             29408      fiscal year.
             29409          (5) The attorney general shall be responsible for recovering funds that are required to
             29410      be repaid to the state under this section.
             29411          (6) Nothing in this section may be construed as applying to funds that are not
             29412      appropriated under this [chapter] part.
             29413          Section 616. Section 51-9-301 , which is renumbered from Section 63-97a-101 is
             29414      renumbered and amended to read:
             29415     
Part 3. Infrastructure and Economic Diversification Investment

             29416     
Account and Severance Tax Holding Account

             29417           [63-97a-101].     51-9-301. Title.
             29418          This [chapter] part is known as the "Infrastructure and Economic Diversification
             29419      Investment Account and Severance Tax Holding Account."
             29420          Section 617. Section 51-9-302 , which is renumbered from Section 63-97a-102 is
             29421      renumbered and amended to read:
             29422           [63-97a-102].     51-9-302. Definitions.
             29423          As used in this [chapter] part:
             29424          (1) "Infrastructure and Economic Diversification Investment Account" means the
             29425      Infrastructure and Economic Diversification Investment Account created in Section
             29426      [ 63-97a-201 ] 51-9-303 .
             29427          (2) "Permanent state trust fund" means the permanent state trust fund created under
             29428      Utah Constitution Article XXII, Section 4.
             29429          (3) "Severance Tax Holding Account" means the Severance Tax Holding Account

             29430      created in Section [ 63-97a-202 ] 51-9-304 .
             29431          Section 618. Section 51-9-303 , which is renumbered from Section 63-97a-201 is
             29432      renumbered and amended to read:
             29433           [63-97a-201].     51-9-303. Creation of Infrastructure and Economic
             29434      Diversification Investment Account.
             29435          (1) (a) There is created a restricted account within the General Fund known as the
             29436      "Infrastructure and Economic Diversification Investment Account."
             29437          (b) The Infrastructure and Economic Diversification Investment Account shall consist
             29438      of:
             29439          (i) all monies credited to the account under Section [ 63-97a-202 ] 51-9-304 ;
             29440          (ii) appropriations from the Legislature;
             29441          (iii) grants from private foundations; and
             29442          (iv) interest and investment earnings on account monies.
             29443          (2) (a) The Infrastructure and Economic Diversification Investment Account shall earn
             29444      interest.
             29445          (b) All interest earned on monies in the Infrastructure and Economic Diversification
             29446      Investment Account shall be deposited into the Infrastructure and Economic Diversification
             29447      Investment Account.
             29448          (3) The Legislature may appropriate monies from the Infrastructure and Economic
             29449      Diversification Investment Account for infrastructure and economic diversification investment
             29450      projects.
             29451          Section 619. Section 51-9-304 , which is renumbered from Section 63-97a-202 is
             29452      renumbered and amended to read:
             29453           [63-97a-202].     51-9-304. Creation of Severance Tax Holding Account --
             29454      Distribution of funds in the account.
             29455          (1) (a) There is created a restricted account within the General Fund known as the
             29456      "Severance Tax Holding Account."
             29457          (b) The Severance Tax Holding Account shall consist of:

             29458          (i) appropriations from the Legislature;
             29459          (ii) grants from private foundations; and
             29460          (iii) interest and investment earnings on Severance Tax Holding Account monies.
             29461          (2) (a) The Severance Tax Holding Account shall earn interest.
             29462          (b) All interest earned on monies in the Severance Tax Holding Account shall be
             29463      deposited into the Severance Tax Holding Account.
             29464          (3) If authorized by law the Division of Finance shall deposit all of the monies in the
             29465      Severance Tax Holding Account as of June 30, 2009, into the permanent state trust fund.
             29466          (4) The state treasurer shall invest and separately account for the earnings on funds that
             29467      are deposited into the permanent state trust fund under this section.
             29468          (5) (a) In accordance with Utah Constitution Article XXII, Section 4, the interest and
             29469      dividends earned annually on revenue from severance taxes that are deposited into the
             29470      permanent state trust fund shall be deposited in the General Fund.
             29471          (b) Interest and dividends earned on revenue from severance taxes that are deposited in
             29472      the General Fund pursuant to Subsection (5)(a) shall be credited to the Infrastructure and
             29473      Economic Diversification Investment Account created in Section [ 63-97a-201 ] 51-9-303 .
             29474          Section 620. Section 51-9-401 , which is renumbered from Section 63-63a-1 is
             29475      renumbered and amended to read:
             29476     
Part 4. Crime Victims Reparations Trust, Public Safety Support Funds, Substance

             29477     
Abuse Prevention Account, and Services for Victims of Domestic Violence Account

             29478           [63-63a-1].     51-9-401. Surcharge -- Application and exemptions.
             29479          (1) (a) A surcharge shall be paid on all criminal fines, penalties, and forfeitures imposed
             29480      by the courts.
             29481          (b) The surcharge shall be:
             29482          (i) 85% upon conviction of a:
             29483          (A) felony;
             29484          (B) class A misdemeanor;
             29485          (C) violation of Title 41, Chapter 6a, Part 5, Driving Under the Influence and Reckless

             29486      Driving; or
             29487          (D) class B misdemeanor not classified within Title 41, Motor Vehicles, including
             29488      violation of comparable county or municipal ordinances; or
             29489          (ii) 35% upon conviction of any other offense, including violation of county or
             29490      municipal ordinances not subject to the 85% surcharge.
             29491          (2) The surcharge may not be imposed:
             29492          (a) upon nonmoving traffic violations;
             29493          (b) upon court orders when the offender is ordered to perform compensatory service
             29494      work in lieu of paying a fine; and
             29495          (c) upon penalties assessed by the juvenile court as part of the nonjudicial adjustment of
             29496      a case under Section 78-3a-502 .
             29497          (3) (a) The surcharge and the exceptions under Subsections (1) and (2) also apply to all
             29498      fines, penalties, and forfeitures imposed on juveniles for conduct that would be criminal if
             29499      committed by an adult.
             29500          (b) However, the surcharge does not include amounts assessed or collected separately
             29501      by juvenile courts for the Juvenile Restitution Account, which is independent of this [chapter]
             29502      part and does not affect the imposition or collection of the surcharge.
             29503          (4) The surcharge under this section shall be imposed in addition to the fine charged for
             29504      a civil or criminal offense, and no reduction may be made in the fine charged due to the
             29505      surcharge imposition.
             29506          (5) Fees, assessments, and surcharges related to criminal or traffic offenses shall be
             29507      authorized and managed by this [chapter] part rather than attached to particular offenses.
             29508          Section 621. Section 51-9-402 , which is renumbered from Section 63-63a-2 is
             29509      renumbered and amended to read:
             29510           [63-63a-2].     51-9-402. Division of collected monies retained by state treasurer
             29511      and local governmental collecting entity -- Purpose of surcharge -- Allocation of
             29512      collections -- Financial information.
             29513          (1) The amount of the surcharge imposed under this [chapter] part by courts of record

             29514      shall be collected before any fine and deposited with the state treasurer.
             29515          (2) The amount of the surcharge and the amount of criminal fines, penalties, and
             29516      forfeitures imposed under this [chapter] part by courts not of record shall be collected
             29517      concurrently.
             29518          (a) As monies are collected on criminal fines, penalties, and forfeitures subject to the
             29519      85% surcharge, the monies shall be divided pro rata so that the local governmental collecting
             29520      entity retains 54% of the collected monies and the state retains 46% of the collected monies.
             29521          (b) As monies are collected on criminal fines, penalties, and forfeitures subject to the
             29522      35% surcharge, the monies shall be divided pro rata so that the local governmental collecting
             29523      entity retains 74% of the collected monies and the state retains 26% of the collected monies.
             29524          (c) The court shall deposit with the state treasurer the surcharge portion of all monies
             29525      as they are collected.
             29526          (3) Courts of record, courts not of record, and administrative traffic proceedings shall
             29527      collect financial information to determine:
             29528          (a) the total number of cases in which:
             29529          (i) a final judgment has been rendered;
             29530          (ii) surcharges and fines are paid by partial or installment payment; and
             29531          (iii) the judgment is fulfilled by an alternative method upon the court's order;
             29532          (b) the total dollar amounts of surcharges owed to the state and fines owed to the state
             29533      and county or municipality, including:
             29534          (i) waived surcharges;
             29535          (ii) uncollected surcharges; and
             29536          (iii) collected surcharges.
             29537          (4) The courts of record, courts not of record, and administrative traffic proceedings
             29538      shall report all collected financial information monthly to the Administrative Office of the
             29539      Courts. The collected information shall be categorized by cases subject to the 85% and 35%
             29540      surcharge.
             29541          (5) The purpose of the surcharge is to finance the trust funds and support accounts as

             29542      provided in this [chapter] part.
             29543          (6) (a) From the surcharge, the Division of Finance shall allocate in the manner and for
             29544      the purposes described in Sections [ 63-63a-3 ] 51-9-403 through [ 63-63a-10 ] 51-9-411 .
             29545          (b) Allocations shall be made on a fiscal year basis.
             29546          (7) The provisions of [Sections 63-63a-1 and 63-63a-2 ] this section and Section
             29547      51-9-401 may not impact the distribution and allocation of fines and forfeitures imposed in
             29548      accordance with Sections 23-14-13 , 78-3-14.5 , and 78-5-116 .
             29549          Section 622. Section 51-9-403 , which is renumbered from Section 63-63a-3 is
             29550      renumbered and amended to read:
             29551           [63-63a-3].     51-9-403. EMS share of surcharge -- Accounting.
             29552          (1) The Division of Finance shall allocate 14% of the collected surcharge established in
             29553      Section [ 63-63a-1 ] 51-9-401 , but not to exceed the amount appropriated by the Legislature, to
             29554      the Emergency Medical Services (EMS) Grants Program Account under Section 26-8a-207 .
             29555          (2) The amount shall be recorded by the Department of Health as a dedicated credit.
             29556          Section 623. Section 51-9-404 , which is renumbered from Section 63-63a-4 is
             29557      renumbered and amended to read:
             29558           [63-63a-4].     51-9-404. Distribution of surcharge amounts.
             29559          (1) In this section:
             29560          (a) "Reparation fund" means the Crime Victim Reparation Fund.
             29561          (b) "Safety account" means the Public Safety Support Account.
             29562          (2) (a) There is created a restricted special revenue fund known as the "Crime Victim
             29563      Reparation Fund" to be administered and distributed as provided in this [chapter] part by the
             29564      Reparations Office under [Title 63, Chapter 25a, Part 4,] Title 63M, Chapter 7, Part 5, Crime
             29565      Victims' Reparations Act, in cooperation with the Division of Finance.
             29566          (b) Monies deposited in this fund are for victim reparations, criminal justice and
             29567      substance abuse, other victim services, and, as appropriated, for administrative costs of the
             29568      Commission on Criminal and Juvenile Justice under [Title 63, Chapter 25a] Title 63M, Chapter
             29569      7.

             29570          (3) (a) There is created a restricted account in the General Fund known as the "Public
             29571      Safety Support Account" to be administered and distributed by the Department of Public Safety
             29572      in cooperation with the Division of Finance as provided in this [chapter] part.
             29573          (b) Monies deposited in this account shall be appropriated to:
             29574          (i) the Division of Peace Officer Standards and Training (POST) as described in Title
             29575      53, Chapter 6, Peace Officer Standards and Training Act; and
             29576          (ii) the Office of the Attorney General for the support of the Utah Prosecution Council
             29577      established in Title 67, Chapter 5a, and the fulfillment of the council's duties.
             29578          (4) The Division of Finance shall allocate from the collected surcharge established in
             29579      Section [ 63-63a-1 ] 51-9-401 :
             29580          (a) 35% to the reparation fund;
             29581          (b) 18.5% to the safety account for POST, but not to exceed the amount appropriated
             29582      by the Legislature; and
             29583          (c) 3% to the safety account for support of the Utah Prosecution Council, but not to
             29584      exceed the amount appropriated by the Legislature.
             29585          (5) (a) In addition to the funding provided by other sections of this [chapter] part, a
             29586      percentage of the income earned by inmates working for correctional industries in a federally
             29587      certified private sector/prison industries enhancement program shall be deposited in the
             29588      reparation fund.
             29589          (b) The percentage of income deducted from inmate pay under Subsection (5)(a) shall
             29590      be determined by the executive director of the Department of Corrections in accordance with
             29591      the requirements of the private sector/prison industries enhancement program.
             29592          (6) (a) In addition to other monies collected from the surcharge, judges are encouraged
             29593      to, and may in their discretion, impose additional reparations to be paid into the reparation fund
             29594      by convicted criminals.
             29595          (b) The additional discretionary reparations may not exceed the statutory maximum fine
             29596      permitted by Title 76, Utah Criminal Code, for that offense.
             29597          Section 624. Section 51-9-405 , which is renumbered from Section 63-63a-5 is

             29598      renumbered and amended to read:
             29599           [63-63a-5].     51-9-405. Substance Abuse Prevention Account established --
             29600      Funding -- Uses.
             29601          (1) There is created a restricted account within the General Fund known as the
             29602      Substance Abuse Prevention Account.
             29603          (2) (a) The Division of Finance shall allocate to the Substance Abuse Prevention
             29604      Account from the collected surcharge established in Section [ 63-63a-1 ] 51-9-401 :
             29605          (i) 2.5% for the juvenile court, but not to exceed the amount appropriated by the
             29606      Legislature; and
             29607          (ii) 2.5% for the State Office of Education, but not to exceed the amount appropriated
             29608      by the Legislature.
             29609          (b) The juvenile court shall use the allocation to pay for community service programs
             29610      required by Subsection 78-3a-118 (2)(m).
             29611          (c) The State Office of Education shall use the allocation in public school programs for:
             29612          (i) substance abuse prevention and education;
             29613          (ii) substance abuse prevention training for teachers and administrators; and
             29614          (iii) district and school programs to supplement, not supplant, existing local prevention
             29615      efforts in cooperation with local substance abuse authorities.
             29616          Section 625. Section 51-9-406 , which is renumbered from Section 63-63a-6 is
             29617      renumbered and amended to read:
             29618           [63-63a-6].     51-9-406. Victims of Domestic Violence Services Account
             29619      established -- Funding -- Uses.
             29620          (1) There is created a restricted account in the General Fund known as the Victims of
             29621      Domestic Violence Services Account.
             29622          (2) (a) The Division of Finance shall allocate to the Victims of Domestic Violence
             29623      Services Account from the collected surcharge established in Section [ 63-63a-1 ] 51-9-401 :
             29624          (i) 4% for the Division for Domestic Violence Services, but not to exceed the amount
             29625      appropriated by the Legislature; and

             29626          (ii) .5% for the Office of the Attorney General, but not to exceed the amount
             29627      appropriated by the Legislature.
             29628          (b) The attorney general shall use the allocation for training municipal and county
             29629      attorneys in the prosecution of domestic violence offenses.
             29630          Section 626. Section 51-9-407 , which is renumbered from Section 63-63a-7 is
             29631      renumbered and amended to read:
             29632           [63-63a-7].     51-9-407. Intoxicated Driver Rehabilitation Account share of
             29633      surcharge.
             29634          The Division of Finance shall allocate 7.5% of the collected surcharge established in
             29635      Section [ 63-63a-1 ] 51-9-401 , but not to exceed the amount appropriated by the Legislature, to
             29636      the Intoxicated Driver Rehabilitation Account established by Section 62A-15-503 .
             29637          Section 627. Section 51-9-408 , which is renumbered from Section 63-63a-8 is
             29638      renumbered and amended to read:
             29639           [63-63a-8].     51-9-408. Children's Legal Defense Account.
             29640          (1) There is created a restricted account within the General Fund known as the
             29641      Children's Legal Defense Account.
             29642          (2) The purpose of the Children's Legal Defense Account is to provide for programs
             29643      that protect and defend the rights, safety, and quality of life of children.
             29644          (3) The Legislature shall appropriate money from the account for the administrative and
             29645      related costs of the following programs:
             29646          (a) implementing the Mandatory Educational Course on Children's Needs for Divorcing
             29647      Parents relating to the effects of divorce on children as provided in Sections 30-3-4 , 30-3-7 ,
             29648      30-3-10.3 , 30-3-11.3 , 30-3-15.3 , and 30-3-18 , and the Mediation Pilot Program - Child
             29649      Custody or Parent-time as provided in Sections 30-3-15.3 and 30-3-18 ;
             29650          (b) implementing the use of guardians ad litem as provided in Sections 30-3-5.2 ,
             29651      78-3a-318 , 78-3a-912 , 78-11-6 , and 78-7-9 ; the training of guardian ad litems and volunteers as
             29652      provided in Section 78-3a-912 ; and termination of parental rights as provided in Sections
             29653      78-3a-118 , 78-3a-119 , 78-3a-903 , and Title 78, Chapter 3a, Part 4, Termination of Parental

             29654      Rights Act. This account may not be used to supplant funding for the guardian ad litem
             29655      program in the juvenile court as provided in Section 78-3a-912 ; and
             29656          (c) implementing and administering the Expedited Parent-time Enforcement Pilot
             29657      Program as provided in Section 30-3-38 .
             29658          (4) The following withheld fees shall be allocated only to the Children's Legal Defense
             29659      Account and used only for the purposes provided in Subsections (3)(a) through (c):
             29660          (a) the additional $10 fee withheld on every marriage license issued in the state of Utah
             29661      as provided in Section 17-16-21 ; and
             29662          (b) a fee of $4 shall be withheld from the existing civil filing fee collected on any
             29663      complaint, affidavit, or petition in a civil, probate, or adoption matter in every court of record.
             29664          (5) The Division of Finance shall allocate the monies described in Subsection (4) from
             29665      the General Fund to the Children's Legal Defense Account.
             29666          (6) Any funds in excess of $200,000 remaining in the restricted account as of June 30 of
             29667      any fiscal year shall lapse into the General Fund.
             29668          Section 628. Section 51-9-409 , which is renumbered from Section 63-63a-8.5 is
             29669      renumbered and amended to read:
             29670           [63-63a-8.5].     51-9-409. Guardian Ad Litem Services Account established
             29671      -- Funding -- Uses.
             29672          There is created in the General Fund a restricted account known as the Guardian Ad
             29673      Litem Services Account, for the purpose of funding the Office of the Guardian Ad Litem
             29674      Director, in accordance with the provisions of Sections 78-3a-911 and 78-3a-912 . The Division
             29675      of Finance shall allocate 1.75% of the collected surcharge established in Section [ 63-63a-1 ]
             29676      51-9-401 to the Guardian Ad Litem Services Account. That amount may not, however, exceed
             29677      the amount appropriated by the Legislature.
             29678          Section 629. Section 51-9-410 , which is renumbered from Section 63-63a-9 is
             29679      renumbered and amended to read:
             29680           [63-63a-9].     51-9-410. Statewide Warrant Operations Account -- Share of
             29681      surcharge -- Use.

             29682          (1) There is created a restricted account within the General Fund known as the
             29683      Statewide Warrant Operations Account.
             29684          (2) The Division of Finance shall allocate 2.5% of the collected surcharge established
             29685      under Section [ 63-63a-1 ] 51-9-401 , but not to exceed the amount appropriated by the
             29686      Legislature, to this account.
             29687          (3) The Legislature may appropriate money from the restricted account to the
             29688      Department of Public Safety to pay for statewide warrant system costs incurred under Section
             29689      53-10-208 .
             29690          Section 630. Section 51-9-411 , which is renumbered from Section 63-63a-10 is
             29691      renumbered and amended to read:
             29692           [63-63a-10].     51-9-411. Law Enforcement Operations Account -- Share of
             29693      surcharge -- Uses.
             29694          (1) As used in this section:
             29695          (a) "Account" means the Law Enforcement Operations Account.
             29696          (b) "Commission" means the Commission on Criminal and Juvenile Justice created in
             29697      Section [ 63-25a-101 ] 63M-7-201 .
             29698          (c) "Law enforcement agency" means a state or local law enforcement agency.
             29699          (d) "Other appropriate agency" means a state or local government agency, or a nonprofit
             29700      organization, that works to prevent illegal drug activity and enforce laws regarding illegal drug
             29701      activity and related criminal activity by:
             29702          (i) programs, including education, prevention, treatment, and research programs; and
             29703          (ii) enforcement of laws regarding illegal drugs.
             29704          (2) There is created a restricted account within the General Fund known as the Law
             29705      Enforcement Operations Account.
             29706          (3) (a) The Division of Finance shall allocate the balance of the collected surcharge
             29707      under Section [ 63-63a-1 ] 51-9-401 that is not allocated under [Title 63, Chapter 63a] Title 51,
             29708      Chapter 9, Part 4, Crime Victim Reparation Trust, Public Safety Support Funds, Substance
             29709      Abuse Prevention Account, and Services for Victims of Domestic Violence Account, to the

             29710      account, to be appropriated by the Legislature.
             29711          (b) Money in the account shall be appropriated to the commission for implementing law
             29712      enforcement operations and programs related to reducing illegal drug activity and related
             29713      criminal activity as listed in Subsection (5).
             29714          (4) (a) The commission shall allocate grants of funds from the account for the purposes
             29715      under Subsection (5) to state, local, or multijurisdictional law enforcement agencies and other
             29716      appropriate agencies.
             29717          (b) The grants shall be made by an application process established by the commission in
             29718      accordance with Subsection (6).
             29719          (5) (a) The first priority of the commission is to annually allocate not more than
             29720      $2,500,000, depending upon funding available from other sources, to directly fund the
             29721      operational costs of state and local law enforcement agencies' drug or crime task forces,
             29722      including multijurisdictional task forces.
             29723          (b) The second priority of the commission is to allocate grants for specified law
             29724      enforcement agency functions and other agency functions as the commission finds appropriate
             29725      to more effectively reduce illegal drug activity and related criminal activity, including providing
             29726      education, prevention, treatment, and research programs.
             29727          (6) (a) In allocating grants and determining the amount of the grants, the commission
             29728      shall consider:
             29729          (i) the demonstrated ability of the agency to appropriately use the grant to implement
             29730      the proposed functions and how this function or task force will add to the law enforcement
             29731      agency's current efforts to reduce illegal drug activity and related criminal activity; and
             29732          (ii) the agency's cooperation with other state and local agencies and task forces.
             29733          (b) Agencies qualify for a grant only if they demonstrate compliance with all reporting
             29734      and policy requirements applicable under this section and under [Title 63, Chapter 25a] Title
             29735      63M, Chapter 7, Criminal Justice and Substance Abuse, in order to qualify as a potential grant
             29736      recipient.
             29737          (7) Recipient agencies may only use grant monies after approval or appropriation by the

             29738      agency's governing body, and a determination that the grant monies are nonlapsing.
             29739          (8) A recipient law enforcement agency may use funds granted under this section only
             29740      for the purposes stated by the commission in the grant.
             29741          (9) For each fiscal year, any law enforcement agency that receives a grant from the
             29742      commission under this section shall prepare, and file with the commission and the state auditor,
             29743      a report in a form specified by the commission. The report shall include the following regarding
             29744      each grant:
             29745          (a) the agency's name;
             29746          (b) the amount of the grant;
             29747          (c) the date of the grant;
             29748          (d) how the grant has been used; and
             29749          (e) a statement signed by both the agency's or political subdivision's executive officer or
             29750      designee and by the agency's legal counsel, that all grant funds were used for law enforcement
             29751      operations and programs approved by the commission and that relate to reducing illegal drug
             29752      activity and related criminal activity, as specified in the grant.
             29753          (10) The commission shall report in writing to the legislative Law Enforcement and
             29754      Criminal Justice Interim Committee annually regarding the grants allocated under this section,
             29755      including the amounts and uses of the grants.
             29756          Section 631. Section 51-9-501 , which is renumbered from Section 63-88-101 is
             29757      renumbered and amended to read:
             29758     
Part 5. Navajo Trust Fund

             29759           [63-88-101].     51-9-501. Definitions.
             29760          As used in this [chapter] part:
             29761          (1) "Administrative expenditures" means:
             29762          (a) expenditures for professional services;
             29763          (b) expense reimbursement for the Dineh Committee; and
             29764          (c) expense reimbursement, salaries, and benefits for the trust administrator and the
             29765      trust administrator's staff.

             29766          (2) "Assessment" means taking one of the following actions to assess the health,
             29767      education, and general welfare needs of Navajos:
             29768          (a) a survey of Navajos that includes:
             29769          (i) a random sample large enough to secure an accurate representation of their needs;
             29770      and
             29771          (ii) a response rate large enough to provide an accurate representation of those needs;
             29772          (b) at least three public hearings held to survey and solicit Navajo needs that are
             29773      advertised for two weeks before the hearing by:
             29774          (i) announcements by the:
             29775          (A) Utah Navajo Chapters, if allowed by the chapter; and
             29776          (B) Blue Mountain Dine';
             29777          (ii) notice posted in the chapter buildings and other public locations, if allowed by the
             29778      chapter;
             29779          (iii) notice of the meeting announced on the radio or television; and
             29780          (iv) notice of the meeting published at least once per week for two consecutive weeks
             29781      in any newspapers of general circulation within the Navajo community; or
             29782          (c) a physical inventory:
             29783          (i) conducted by the Office of Trust Administrator;
             29784          (ii) coordinated with:
             29785          (A) each Utah Navajo Chapter;
             29786          (B) the Blue Mountain Dine'; and
             29787          (C) other sources; and
             29788          (iii) conducted to determine needs including:
             29789          (A) the number and capacity of public facilities;
             29790          (B) the extent of graveled and paved:
             29791          (I) roads; or
             29792          (II) air strips;
             29793          (C) the inventory of water resources;

             29794          (D) the extent of residential electrical power distribution; and
             29795          (E) the number and condition of housing units.
             29796          (3) "Assessment analysis results" means the analysis:
             29797          (a) of the results of the assessment required by Section [ 63-88-105 ] 51-9-505 ; and
             29798          (b) that is developed by the Dineh Committee and the trust administrator in accordance
             29799      with Section [ 63-88-105 ] 51-9-505 .
             29800          (4) "Blue Mountain Dine'" means the off-reservation Navajo community organization
             29801      known as the Blue Mountain Dine'.
             29802          (5) "Board of trustees" or "board" means the board of trustees created in Section
             29803      [ 63-88-103 ] 51-9-503 .
             29804          (6) "Business enterprise" means a sole proprietorship, partnership, corporation, or other
             29805      private entity organized to provide goods or services for a profit.
             29806          (7) "Capital" means an investment by the owner of a business enterprise:
             29807          (a) in:
             29808          (i) cash;
             29809          (ii) equipment;
             29810          (iii) land; or
             29811          (iv) other assets similar to that described in Subsections (7)(a)(i) through (iii); and
             29812          (b) that is pledged to be used in the operation of the business enterprise.
             29813          (8) "Dineh Committee" means the Dineh Committee created in Section [ 63-88-107 ]
             29814      51-9-507 .
             29815          (9) "Income" means all revenues from investments made by the state treasurer of the
             29816      trust fund principal.
             29817          (10) "Navajos" means San Juan County, Utah Navajos.
             29818          (11) "Office of Trust Administrator" means the office created in Section [ 63-88-104 ]
             29819      51-9-504 .
             29820          (12) "Principal" means:
             29821          (a) the balance of the trust fund as of February 26, 1992; and

             29822          (b) all revenue to the trust fund from whatever source except income as defined in
             29823      Subsection (9).
             29824          (13) "Service provider" means any of the following that provides goods or services to
             29825      Navajos:
             29826          (a) a business enterprise;
             29827          (b) a private nonprofit organization; or
             29828          (c) a government entity.
             29829          (14) "Trust administrator" means the professional trust administrator appointed as
             29830      provided in this [chapter] part.
             29831          (15) "Trust fund" or "fund" means the Navajo Trust Fund created by Section
             29832      [ 63-88-102 ] 51-9-502 .
             29833          (16) "Utah Navajo Chapter" means the following chapters of the Navajo Nation:
             29834          (a) Aneth Chapter;
             29835          (b) Mexican Water Chapter;
             29836          (c) Navajo Mountain Chapter;
             29837          (d) Oljato Chapter;
             29838          (e) Dennehotso Chapter;
             29839          (f) Red Mesa Chapter; and
             29840          (g) Teec Nos Pos Chapter.
             29841          Section 632. Section 51-9-502 , which is renumbered from Section 63-88-102 is
             29842      renumbered and amended to read:
             29843           [63-88-102].     51-9-502. Trust Fund -- Creation -- Oversight.
             29844          (1) There is created a private-purpose trust fund entitled the "Navajo Trust Fund."
             29845          (2) The fund consists of:
             29846          (a) revenues received by the state that represent the 37-1/2% of the net oil royalties
             29847      from the Aneth Extension of the Navajo Indian Reservation required by P.L. 72-403, 47 Stat.
             29848      1418, to be paid to the state;
             29849          (b) monies received by the trust administrator or Dineh Committee from any contracts

             29850      executed by:
             29851          (i) the trust administrator;
             29852          (ii) the board; or
             29853          (iii) the Dineh Committee;
             29854          (c) appropriations made to the fund by the Legislature, if any;
             29855          (d) income as defined in Subsection [ 63-88-101 ] 51-9-501 (9); and
             29856          (e) other revenues received from other sources.
             29857          (3) The Division of Finance shall account for the receipt and expenditures of fund
             29858      monies.
             29859          (4) (a) The state treasurer shall invest fund monies by following the procedures and
             29860      requirements of Title 51, Chapter 7, State Money Management Act.
             29861          (b) (i) The fund shall earn interest.
             29862          (ii) The state treasurer shall deposit all interest or other revenue earned from investment
             29863      of the fund back into the fund.
             29864          (5) The state auditor shall:
             29865          (a) conduct an annual audit of the fund's finances, internal controls, and compliance
             29866      with statutes, rules, policies, and regulations according to the procedures and requirements of
             29867      Title 67, Chapter 3, Auditor; and
             29868          (b) deliver a copy of that audit report to the:
             29869          (i) board;
             29870          (ii) trust administrator;
             29871          (iii) Dineh Committee;
             29872          (iv) Office of Legislative Research and General Counsel for presentation to the Native
             29873      American Legislative Liaison Committee, created in Section 36-22-1 ;
             29874          (v) governor's office;
             29875          (vi) Division of Indian Affairs;
             29876          (vii) U.S. Bureau of Indian Affairs;
             29877          (viii) Navajo Nation; and

             29878          (ix) U.S. Secretary of the Interior.
             29879          Section 633. Section 51-9-503 , which is renumbered from Section 63-88-103 is
             29880      renumbered and amended to read:
             29881           [63-88-103].     51-9-503. Board of Trustees of the Utah Navajo Trust Fund.
             29882          (1) (a) There is created a Board of Trustees of the Utah Navajo Trust Fund composed
             29883      of three members:
             29884          (i) the State Treasurer;
             29885          (ii) the Director of the Division of Finance; and
             29886          (iii) a state officer or employee appointed by the governor, with the consent of the
             29887      Senate, to a four-year term.
             29888          (b) The State Treasurer is chair of the board.
             29889          (c) Three members of the board are a quorum.
             29890          (d) (i) State government officer and employee members who do not receive salary, per
             29891      diem, or expenses from their agency for their service may receive per diem and expenses
             29892      incurred in the performance of their official duties from the board at the rates established by the
             29893      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             29894          (ii) State government officer and employee members may decline to receive per diem
             29895      and expenses for their service.
             29896          (2) (a) The board shall either:
             29897          (i) contract with a person to act as trust administrator by following the procedures and
             29898      requirements of [Chapter 56,] Title 63G, Chapter 6, Utah Procurement Code and, where not
             29899      provided for by this [chapter] part, define the trust administrator's duties and responsibilities; or
             29900          (ii) if unable to find a qualified person under Subsection (2)(a)(i) to act as trust
             29901      administrator for a reasonable cost, hire a qualified person to act as trust administrator and,
             29902      where not provided for by this [chapter] part, define the trust administrator's duties and
             29903      responsibilities.
             29904          (b) If the board hires a trust administrator under authority of Subsection (2)(a)(ii), the
             29905      board may hire, or authorize the trust administrator to hire, other persons necessary to assist the

             29906      trust administrator and the board to perform the duties required by this [chapter] part.
             29907          (3) The board shall:
             29908          (a) on behalf of the state, act as trustee of the trust fund and exercise the state's
             29909      fiduciary responsibilities;
             29910          (b) meet at least once every other month;
             29911          (c) review and approve all policies, projections, rules, criteria, procedures, forms,
             29912      standards, and performance goals established by the trust administrator;
             29913          (d) review and approve the trust fund budget prepared by the trust administrator;
             29914          (e) review all progress reports from programs financed by the trust fund;
             29915          (f) review financial records of the trust fund, including trust fund receipts, expenditures,
             29916      and investments; and
             29917          (g) do any other things necessary to perform the state of Utah's fiduciary obligations
             29918      under the trust fund.
             29919          (4) The attorney general shall:
             29920          (a) act as legal counsel and provide legal representation to the Board of Trustees; and
             29921          (b) attend, or direct an attorney from the attorney general's office to attend, each
             29922      meeting of the Board of Trustees.
             29923          Section 634. Section 51-9-504 , which is renumbered from Section 63-88-104 is
             29924      renumbered and amended to read:
             29925           [63-88-104].     51-9-504. Office of Trust Administrator -- Creation.
             29926          (1) If the board appoints a trust administrator under Subsection [ 63-88-103 ] 51-9-503
             29927      (2)(a)(ii), there is created an Office of Trust Administrator in the Department of Administrative
             29928      Services.
             29929          (2) (a) The trust administrator appointed as provided in [Section 63-88-103 ] Subsection
             29930      51-9-503 (2)(a)(ii) shall administer the office.
             29931          (b) The Department of Administrative Services shall provide physical space and
             29932      logistical and administrative support to the office but may not direct the activities of the office
             29933      or the trust administrator.

             29934          (c) The Board of Trustees and the Office of Trust Administrator shall assume all of the
             29935      functions, powers, duties, rights, and responsibilities of:
             29936          (i) the Commission of State Indian Affairs;
             29937          (ii) the Board of Indian Affairs;
             29938          (iii) the Dineh Committee, except as provided in this [chapter] part; and
             29939          (iv) the Division of Indian Affairs, on all matters connected with the trust fund or its
             29940      proceeds.
             29941          Section 635. Section 51-9-505 , which is renumbered from Section 63-88-105 is
             29942      renumbered and amended to read:
             29943           [63-88-105].     51-9-505. Trust administrator -- Duties.
             29944          (1) Under the direction of the board, the trust administrator shall:
             29945          (a) review the documents and decisions highlighting the history of the trust fund,
             29946      including:
             29947          (i) the Nelson report, prepared as part of the Bigman v. Utah Navajo Development
             29948      Council Inc. C77-0031;
             29949          (ii) the November 1991 performance audit of the Utah Navajo Trust Fund by the
             29950      legislative auditor general;
             29951          (iii) Sakezzie v. Utah Indian Affairs Commission, 198 F. Supp. 218 (1961);
             29952          (iv) Sakezzie v. Utah Indian Affairs Commission, 215 F. Supp. 12 (1963); and
             29953          (v) the September 8, 1977, consent decree, the stipulation dated November 29, 1984,
             29954      modifying the consent decree, and the court's memorandum opinion dated September 25, 1978,
             29955      in Bigman v. Utah Navajo Development Council, Inc., C77-0031;
             29956          (b) review all potential sources of trust fund revenues;
             29957          (c) prepare annual projections of monies that will be available for Navajo programs;
             29958          (d) identify all property owned by the trust fund;
             29959          (e) establish and maintain a record system to retain records relating to the trust fund's
             29960      property;
             29961          (f) review all existing and proposed programs financed by the trust fund;

             29962          (g) evaluate whether or not the programs described in Subsection (1)(f) are the most
             29963      practical and cost-efficient means to provide the desired benefit to Navajos;
             29964          (h) consult regularly with the administrators of all programs financed by the trust fund
             29965      to obtain progress reports on all programs;
             29966          (i) attend all meetings of:
             29967          (i) the Dineh Committee; and
             29968          (ii) the board of trustees;
             29969          (j) establish written policies identifying expenses payable from the fund for Dineh
             29970      Committee members;
             29971          (k) certify that all expenditures from the trust fund:
             29972          (i) comply with the state's fiduciary responsibilities as trustee of the fund; and
             29973          (ii) are consistent with this section;
             29974          (l) make an annual report:
             29975          (i) to the:
             29976          (A) board;
             29977          (B) the governor; and
             29978          (C) the Native American Legislative Liaison Committee, created in Section 36-22-1 ;
             29979      and
             29980          (ii) that:
             29981          (A) identifies the source and amount of all revenue received by the fund;
             29982          (B) identifies the recipient, purpose, and amount of all expenditures from the fund;
             29983          (C) identifies specifically each of the fund's investments and the actual return and the
             29984      rate of return from each investment; and
             29985          (D) recommends any necessary statutory changes to:
             29986          (I) improve administration of the fund; or
             29987          (II) protect the state from liability as trustee;
             29988          (m) establish, in conjunction with the state treasurer, the state auditor, and the Division
             29989      of Finance, appropriate accounting practices for all trust fund receipts, expenditures, and

             29990      investments according to generally accepted accounting principles;
             29991          (n) provide summary records of trust fund receipts, expenditures, and investments to
             29992      the board and to the Dineh Committee at each of their meetings;
             29993          (o) pay administrative expenses from the fund;
             29994          (p) report monthly to the board about:
             29995          (i) the trust administrator's activities; and
             29996          (ii) the status of the trust fund; and
             29997          (q) call additional meetings of the Dineh Committee when necessary.
             29998          (2) In conjunction with the Dineh Committee and under the direction of the board, the
             29999      trust administrator shall:
             30000          (a) subject to Subsection (4), conduct an assessment at least every two years of the
             30001      needs of Navajos;
             30002          (b) before the beginning of each fiscal year, based on the assessment required by
             30003      Subsection (2)(a), develop assessment analysis results that allow the establishment of a list of
             30004      the needs of Navajos for that year to be used for the annual budget;
             30005          (c) before the beginning of each fiscal year, develop and approve an annual budget for
             30006      the trust fund;
             30007          (d) develop an ethics and conflict of interest policy that emphasizes the need to avoid
             30008      even the appearance of conflict of interest or impropriety that is to apply to:
             30009          (i) the trust administrator;
             30010          (ii) the trust administrator's employees; and
             30011          (iii) the Dineh Committee;
             30012          (e) require the trust administrator, each of the trust administrator's employees, and each
             30013      Dineh Committee member to sign and keep on file written documentation that acknowledges:
             30014          (i) their receipt of the ethics and conflict of interest policy described in Subsection
             30015      (2)(d); and
             30016          (ii) their willingness to abide by the provisions of the ethics and conflict of interest
             30017      policy described in Subsection (2)(d); and

             30018          (f) make expenditures from the fund "for the health, education, and general welfare of
             30019      the Navajo Indians, residing in San Juan County" as required by:
             30020          (i) P.L. 72-403, 47 Stat. 1418 (1933);
             30021          (ii) P.L. 90-306, 82 Stat. 121 (1968); and
             30022          (iii) this [chapter] part.
             30023          (3) The trust administrator, under direction of the board, may:
             30024          (a) contract with public and private entities; and
             30025          (b) unless prohibited by law or the requirements of this [chapter] part, acquire and hold
             30026      monies and other property received in the administration of the trust fund.
             30027          (4) (a) Notwithstanding Subsection [ 63-88-101 ] 51-9-501 (2), the trust administrator
             30028      shall ensure that at least every six years the assessment includes:
             30029          (i) a survey as described in Subsection [ 63-88-101 ] 51-9-501 (2)(a); or
             30030          (ii) public hearings as described in Subsection [ 63-88-101 ] 51-9-501 (2)(b).
             30031          (b) Subsection (2)(a) does not prohibit the trust administrator from conducting a
             30032      physical inventory as defined in Subsection [ 63-88-101 ] 51-9-501 (2)(c) during the same year a
             30033      survey or public hearing is required.
             30034          Section 636. Section 51-9-506 , which is renumbered from Section 63-88-106 is
             30035      renumbered and amended to read:
             30036           [63-88-106].     51-9-506. Expenditures from the trust fund.
             30037          (1) (a) Under the direction of the board of trustees, the trust administrator may make
             30038      expenditures to invest in business enterprises:
             30039          (i) as authorized and limited by this section; and
             30040          (ii) giving consideration to the advice of the Dineh Committee.
             30041          (b) When making expenditures to invest in a business enterprise the trust administrator:
             30042          (i) may expend trust monies only on a business enterprise located in San Juan County;
             30043          (ii) may expend trust fund monies only:
             30044          (A) to invest in a joint business enterprise; and
             30045          (B) when the other party's capital investment is larger than the trust fund's expenditure;

             30046      and
             30047          (iii) may not continue to make expenditures to or in support of a business enterprise if
             30048      the business enterprise fails to show a profit within three years.
             30049          (2) (a) Before making any expenditures to a business enterprise or service provider
             30050      from the trust fund, the trust administrator shall:
             30051          (i) comply with [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code;
             30052      and
             30053          (ii) review and approve the business enterprise's or service provider's entire budget.
             30054          (b) The trust administrator may require that a business enterprise or service provider
             30055      modify its budget or meet other conditions precedent established by the trust administrator
             30056      before the business enterprise or service provider may receive expenditures from the trust fund.
             30057          (3) The trust administrator shall make all expenditures from the trust fund that are not
             30058      administrative expenditures by:
             30059          (a) preparing a written document that:
             30060          (i) defines specifically how the expenditure from the trust fund may be used;
             30061          (ii) establishes any conditions precedent to its use; and
             30062          (iii) requires the recipient of trust fund monies to provide the trust administrator with
             30063      progress reports detailing how program funds have been expended; and
             30064          (b) obtaining the signature of the recipient on that document before releasing any
             30065      monies from the trust fund.
             30066          (4) The trust administrator shall:
             30067          (a) make rules in accordance with Subsection (6) that:
             30068          (i) establish policies and criteria for expenditure of the trust fund monies that take into
             30069      account the assessment analysis results; and
             30070          (ii) establish performance evaluation criteria with which to evaluate the success of
             30071      expenditures from the trust fund after they are made;
             30072          (b) develop procedures, forms, and standards for persons seeking distribution of trust
             30073      fund monies that implement the policies and criteria for expenditures established by rule;

             30074          (c) evaluate all requests for expenditures of trust fund monies against:
             30075          (i) the policies and criteria established by rule; and
             30076          (ii) the requestor's success in meeting performance evaluation criteria and goals in any
             30077      prior receipt of trust fund monies;
             30078          (d) develop performance goals for each trust fund expenditure that implement the
             30079      performance evaluation criteria established in rule; and
             30080          (e) monitor and evaluate each trust fund expenditure based upon the performance goals
             30081      and performance evaluation criteria created under this Subsection (4).
             30082          (5) The trust administrator may expend trust monies for per diem and expenses incurred
             30083      by the Dineh Committee in performance of their official duties.
             30084          (6) The trust administrator shall make a rule described in Subsection (4)(a):
             30085          (a) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             30086      Administrative Rulemaking Act;
             30087          (b) with the input and recommendation of the Dineh Committee; and
             30088          (c) with the approval of the board of trustees.
             30089          Section 637. Section 51-9-507 , which is renumbered from Section 63-88-107 is
             30090      renumbered and amended to read:
             30091           [63-88-107].     51-9-507. Utah Dineh Committee.
             30092          (1) There is created the Dineh Committee.
             30093          (2) (a) The governor, with the consent of the Senate, shall appoint nine members to the
             30094      committee.
             30095          (b) In making an appointment under Subsection (2)(a), the governor shall ensure that:
             30096          (i) each member of the committee is an individual:
             30097          (A) who is an enrolled member of the Navajo Nation; and
             30098          (B) whose name and tribal number are contained in the trust fund's population database;
             30099      and
             30100          (ii) the committee includes:
             30101          (A) two registered members of the Aneth Chapter of the Navajo Nation who reside in

             30102      San Juan County, Utah;
             30103          (B) one registered member of the Blue Mountain Dine' who resides in San Juan County,
             30104      Utah;
             30105          (C) one registered member of the Mexican Water Chapter of the Navajo Nation who
             30106      resides in San Juan County, Utah;
             30107          (D) one registered member of the Navajo Mountain Chapter of the Navajo Nation who
             30108      resides in San Juan County, Utah;
             30109          (E) subject to Subsection (11), two members who reside in San Juan County, Utah:
             30110          (I) one of which shall be a registered member of the Oljato Chapter of the Navajo
             30111      Nation; and
             30112          (II) one of which shall be a registered member of either the Oljato Chapter or the
             30113      Dennehotso Chapter of the Navajo Nation;
             30114          (F) one registered member of the Red Mesa Chapter of the Navajo Nation who resides
             30115      in San Juan County, Utah; and
             30116          (G) one registered member of the Teec Nos Pos Chapter of the Navajo Nation who
             30117      resides in San Juan County, Utah.
             30118          (3) (a) (i) Each of the Utah Navajo Chapters, except the Aneth, Oljato, and Dennehotso
             30119      chapters, shall submit to the governor the names of three nominees to the Dineh Committee
             30120      chosen by the chapter.
             30121          (ii) The governor shall select one of the three persons submitted under Subsection
             30122      (3)(a)(i) as that chapter's representative on the Dineh Committee.
             30123          (b) (i) The Blue Mountain Dine' shall submit to the governor the names of three
             30124      nominees to the Dineh Committee.
             30125          (ii) The governor shall select one of the three persons submitted under Subsection
             30126      (3)(b)(i) as the Blue Mountain Dine' representative on the Dineh Committee.
             30127          (c) (i) The Aneth Chapter shall submit to the governor the names of six nominees to the
             30128      Dineh Committee chosen by the chapter.
             30129          (ii) The governor shall select two of the six persons submitted under Subsection

             30130      (3)(c)(i) to be the Aneth Chapter's representatives on the Dineh Committee.
             30131          (d) (i) The Oljato Chapter shall submit to the governor the names of six nominees to the
             30132      Dineh Committee chosen by the chapter.
             30133          (ii) One of the six names submitted under Subsection (3)(d)(i) may be a registered
             30134      member of the Dennehotso Chapter.
             30135          (iii) The governor shall select two of the six persons submitted under Subsection
             30136      (3)(d)(i) to be the representatives on the Dineh Committee of the Oljato and Dennehotso
             30137      chapters.
             30138          (4) The governor may not appoint any person who is currently, or who, within the last
             30139      12 months, has been an officer, director, employee, or contractor of any business enterprise or
             30140      service provider that solicits, accepts, or receives a benefit from an expenditure of:
             30141          (a) the Division of Indian Affairs; or
             30142          (b) the trust fund established in this [chapter] part.
             30143          (5) (a) Except as provided in Subsection (5)(b) and other than the amount authorized
             30144      by this section for Dineh Committee member expenses, a person appointed to the Dineh
             30145      Committee may not solicit, accept, or receive any benefit from an expenditure of:
             30146          (i) the Division of Indian Affairs;
             30147          (ii) the trust fund; or
             30148          (iii) the Division of Indian Affairs or trust fund as an officer, director, employee, or
             30149      contractor of any business enterprise or service provider that solicits, accepts, or receives a
             30150      benefit from the expenditure of:
             30151          (A) the Division of Indian Affairs; or
             30152          (B) the trust fund.
             30153          (b) A member of the Dineh Committee may receive a benefit from an expenditure of the
             30154      trust fund if:
             30155          (i) when the benefit is discussed by the Dineh Committee:
             30156          (A) the member discloses that the member may receive the benefit;
             30157          (B) the member physically leaves the room in which the Dineh Committee is discussing

             30158      the benefit; and
             30159          (C) the Dineh Committee approves the member receiving the benefit by a unanimous
             30160      vote of members present at the meeting discussing the benefit;
             30161          (ii) a Utah Navajo Chapter requests that the benefit be received by the member;
             30162          (iii) the member is in compliance with the ethics and conflict of interest policy required
             30163      under Subsection [ 63-88-105 ] 51-9-505 (2)(d);
             30164          (iv) (A) the expenditure from the trust fund is made in accordance with this [chapter]
             30165      part; and
             30166          (B) the benefit is no greater than the benefit available to members of the Navajo Nation
             30167      whose name and tribal number are contained in the trust fund's population database; and
             30168          (v) the member is not receiving the benefit as an officer, director, employee, or
             30169      contractor of any business enterprise or service provider.
             30170          (c) A business enterprise or service provider that has a member as an officer, director,
             30171      employee, or contractor may not receive a benefit under Subsection (5)(b).
             30172          (6) (a) (i) Except as required by Subsection (6)(a)(ii), as terms of current committee
             30173      members expire, the governor shall appoint each new member or reappointed member to a
             30174      four-year term.
             30175          (ii) Notwithstanding the requirements of Subsection (6)(a)(i), the governor shall, at the
             30176      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             30177      committee members are staggered so that approximately half of the committee is appointed
             30178      every two years.
             30179          (b) Except as provided in Subsection (6)(c), committee members shall serve until their
             30180      successors are appointed and qualified.
             30181          (c) (i) If a committee member is absent from three consecutive committee meetings, or
             30182      if the committee member has violated the ethical or conflict of interest policies established by
             30183      statute or by the committee:
             30184          (A) that member's appointment is terminated;
             30185          (B) the position is vacant; and

             30186          (C) the governor shall appoint a replacement.
             30187          (ii) When a vacancy occurs in the membership for any reason, the replacement shall be
             30188      appointed for the unexpired term according to the procedures of this section.
             30189          (7) (a) The committee shall select a chair and a vice chair from its membership each two
             30190      years subsequent to the appointment of new members.
             30191          (b) Five members of the committee are a quorum for the transaction of business.
             30192          (c) The committee shall:
             30193          (i) comply with the procedures and requirements of Title 52, Chapter 4, Open and
             30194      Public Meetings Act;
             30195          (ii) ensure that all of its meetings are held at or near:
             30196          (A) a chapter house or meeting hall of a Utah Navajo Chapter; or
             30197          (B) other places in Utah that the committee considers practical and appropriate; and
             30198          (iii) ensure that all of its meetings are public hearings at which any resident of San Juan
             30199      County may appear and speak.
             30200          (8) (a) A member shall receive no compensation or benefits for the member's services,
             30201      but may receive per diem and expenses incurred in the performance of the member's official
             30202      duties at the rates established by the Division of Finance under Sections 63A-3-106 and
             30203      63A-3-107 from the trust fund.
             30204          (b) A member may decline to receive per diem and expenses for their service.
             30205          (9) The Office of Trust Administrator is staff to the committee.
             30206          (10) The committee shall advise the trust administrator about the expenditure of trust
             30207      fund monies.
             30208          (11) If both members appointed under Subsection (2)(b)(ii)(E) are registered members
             30209      of the Oljato Chapter, the two members shall attend Dennehotso Chapter meetings as
             30210      practicable.
             30211          Section 638. Section 51-9-601 , which is renumbered from Section 63-12-1 is
             30212      renumbered and amended to read:
             30213     
Part 6. Forest Reserve Fund

             30214           [63-12-1].     51-9-601. Act of Congress accepted.
             30215          The state of Utah renews its acceptance of the apportionment of moneys received from
             30216      forest reserves made by Act of Congress approved June 30, 1906 and all acts amendatory
             30217      thereof and supplementary thereto, and renews its acceptance of said Act of Congress upon the
             30218      terms and conditions set forth in said act; the said apportionment being for the benefit of the
             30219      public schools and public roads of the counties wherein may be situated the respective forest
             30220      reserves.
             30221          Section 639. Section 51-9-602 , which is renumbered from Section 63-12-2 is
             30222      renumbered and amended to read:
             30223           [63-12-2].     51-9-602. Special fund created.
             30224          The moneys which shall come into the hands of the state treasurer from the United
             30225      States pursuant to said act and all acts amendatory thereof and supplementary thereto shall
             30226      constitute a fund to be known as the "County Road and School Fund from Forest Reserves."
             30227          Section 640. Section 51-9-603 , which is renumbered from Section 63-12-4 is
             30228      renumbered and amended to read:
             30229           [63-12-4].     51-9-603. Apportionment by the county legislative body.
             30230          The county legislative body of each county participating therein shall immediately upon
             30231      receipt of the apportionment proceed to apportion the same in the manner following, to wit:
             30232      One-half to the several school districts of the county, according to the number of school
             30233      children residing in each of said districts over six and under [eighteen] 18 years of age, and
             30234      [one-half] 1/2 for the improvement of the public roads in said county.
             30235          Section 641. Section 52-4-203 is amended to read:
             30236           52-4-203. Minutes of open meetings -- Public records -- Recording of meetings.
             30237          (1) Except as provided under Subsection (8), written minutes and a recording shall be
             30238      kept of all open meetings.
             30239          (2) Written minutes of an open meeting shall include:
             30240          (a) the date, time, and place of the meeting;
             30241          (b) the names of members present and absent;

             30242          (c) the substance of all matters proposed, discussed, or decided by the public body
             30243      which may include a summary of comments made by members of the public body;
             30244          (d) a record, by individual member, of each vote taken by the public body;
             30245          (e) the name of each person who is not a member of the public body, and upon
             30246      recognition by the presiding member of the public body, provided testimony or comments to the
             30247      public body;
             30248          (f) the substance, in brief, of the testimony or comments provided by the public under
             30249      Subsection (2)(e); and
             30250          (g) any other information that any member requests be entered in the minutes or
             30251      recording.
             30252          (3) A recording of an open meeting shall:
             30253          (a) be a complete and unedited record of all open portions of the meeting from the
             30254      commencement of the meeting through adjournment of the meeting; and
             30255          (b) be properly labeled or identified with the date, time, and place of the meeting.
             30256          (4) (a) The minutes and recordings of an open meeting are public records and shall be
             30257      available within a reasonable time after the meeting.
             30258          (b) An open meeting record kept only by a recording must be converted to written
             30259      minutes within a reasonable time upon request.
             30260          (5) All or any part of an open meeting may be independently recorded by any person in
             30261      attendance if the recording does not interfere with the conduct of the meeting.
             30262          (6) Minutes or recordings of an open meeting that are required to be retained
             30263      permanently shall be maintained in or converted to a format that meets long-term records
             30264      storage requirements.
             30265          (7) Written minutes and recordings of open meetings are public records under [Title 63,
             30266      Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act, but
             30267      written minutes shall be the official record of action taken at the meeting.
             30268          (8) Either written minutes or a recording shall be kept of:
             30269          (a) an open meeting that is a site visit or a traveling tour, if no vote or action is taken by

             30270      the public body; and
             30271          (b) an open meeting of a local district under Title 17B, Limited Purpose Local
             30272      Government Entities - Local Districts, or special service district under Title 17A, Chapter 2,
             30273      Part 13, Utah Special Service District Act, if the district's annual budgeted expenditures for all
             30274      funds, excluding capital expenditures and debt service, are $50,000 or less.
             30275          Section 642. Section 52-4-206 is amended to read:
             30276           52-4-206. Record of closed meetings.
             30277          (1) Except as provided under Subsection (6), if a public body closes a meeting under
             30278      Subsection 52-4-205 (1), the public body:
             30279          (a) shall make a recording of the closed portion of the meeting; and
             30280          (b) may keep detailed written minutes that disclose the content of the closed portion of
             30281      the meeting.
             30282          (2) A recording of a closed meeting shall be complete and unedited from the
             30283      commencement of the closed meeting through adjournment of the closed meeting.
             30284          (3) The recording and any minutes of a closed meeting shall include:
             30285          (a) the date, time, and place of the meeting;
             30286          (b) the names of members present and absent; and
             30287          (c) the names of all others present except where the disclosure would infringe on the
             30288      confidentiality necessary to fulfill the original purpose of closing the meeting.
             30289          (4) Minutes or recordings of a closed meeting that are required to be retained
             30290      permanently shall be maintained in or converted to a format that meets long-term records
             30291      storage requirements.
             30292          (5) Both a recording and written minutes of closed meetings are protected records
             30293      under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             30294      Management Act, except that the records may be disclosed under a court order only as provided
             30295      under Section 52-4-304 .
             30296          (6) If a public body closes a meeting exclusively for the purposes described under
             30297      Subsection 52-4-205 (1)(a) or Subsection 52-4-205 (1)(f):

             30298          (a) the person presiding shall sign a sworn statement affirming that the sole purpose for
             30299      closing the meeting was to discuss the purposes described under Subsection 52-4-205 (1)(a) or
             30300      Subsection 52-4-205 (1)(f); and
             30301          (b) the provisions of Subsection (1) of this section do not apply.
             30302          Section 643. Section 52-4-304 is amended to read:
             30303           52-4-304. Action challenging closed meeting.
             30304          (1) Notwithstanding the procedure established under Subsection [ 63-2-202 ]
             30305      63G-2-202 (7), in any action brought under the authority of this chapter to challenge the legality
             30306      of a closed meeting held by a public body, the court shall:
             30307          (a) review the recording or written minutes of the closed meeting in camera; and
             30308          (b) decide the legality of the closed meeting.
             30309          (2) (a) If the judge determines that the public body did not violate Section 52-4-204 ,
             30310      52-4-205 , or 52-4-206 regarding closed meetings, the judge shall dismiss the case without
             30311      disclosing or revealing any information from the recording or minutes of the closed meeting.
             30312          (b) If the judge determines that the public body violated Section 52-4-204 , 52-4-205 , or
             30313      52-4-206 regarding closed meetings, the judge shall publicly disclose or reveal from the
             30314      recording or minutes of the closed meeting all information about the portion of the meeting that
             30315      was illegally closed.
             30316          Section 644. Section 52-6-101 is enacted to read:
             30317     
CHAPTER 6. REIMBURSEMENT OF LEGAL FEES AND

             30318     
COSTS TO OFFICERS AND EMPLOYEES ACT

             30319     
Part 1. General Provisions

             30320          52-6-101. Title.
             30321          This chapter is known as the "Reimbursement of Legal Fees and Costs to Officers and
             30322      Employees Act."
             30323          Section 645. Section 52-6-102 , which is renumbered from Section 63-30a-1 is
             30324      renumbered and amended to read:
             30325           [63-30a-1].     52-6-102. Definitions.

             30326          As used in this act:
             30327          (1) "Officer or employee" means any individual who at the time of an event giving rise
             30328      to a claim under this act is or was elected or appointed to or employed by a public entity,
             30329      whether or not compensated, but does not include an independent contractor.
             30330          (2) "Public entity" means the state or any political subdivision of it or any office,
             30331      department, division, board, agency, commission, council, authority, institution, hospital,
             30332      school, college, university, or other instrumentality of the state or any such political subdivision.
             30333          Section 646. Section 52-6-201 , which is renumbered from Section 63-30a-2 is
             30334      renumbered and amended to read:
             30335     
Part 2. Attorney Fees and Court Costs

             30336           [63-30a-2].     52-6-201. Indictment or information against officer or employee --
             30337      Reimbursement of attorney fees and court costs incurred in defense.
             30338          (1) If a state grand jury indicts, or if an information is filed against, an officer or
             30339      employee, in connection with or arising out of any act or omission of that officer or employee
             30340      during the performance of [his] the officer or employee's duties, within the scope of [his] the
             30341      officer or employee's employment, or under color of [his] the officer or employee's authority,
             30342      and that indictment or information is quashed or dismissed or results in a judgment of acquittal,
             30343      unless the indictment or information is quashed or dismissed upon application or motion of the
             30344      prosecuting attorney, that officer or employee shall be entitled to recover reasonable [attorneys']
             30345      attorney fees and court costs necessarily incurred in the defense of that indictment or
             30346      information from the public entity, unless the officer or employee is found guilty of substantially
             30347      the same misconduct that formed the basis for the indictment or information.
             30348          (2) If the officer or employee is acquitted of some of the charges or counts, or portions
             30349      of the indictment or information are quashed or dismissed, that officer or employee shall be
             30350      entitled to recover from the public entity reasonable [attorneys'] attorney fees and court costs
             30351      necessarily incurred in the defense of those charges, counts, or portions of the indictment or
             30352      information that were quashed, dismissed, or resulted in a judgment of acquittal, unless the
             30353      misconduct covered by those charges, counts, or portions of the indictment or information that

             30354      were quashed, dismissed, or resulted in a judgment of acquittal is substantially the same
             30355      misconduct that formed the basis for charges, counts, or portions of the indictment or
             30356      information of which the officer or employee was found guilty.
             30357          (3) An officer or employee who recovers under this section shall also be entitled to
             30358      recover reasonable [attorneys'] attorney fees and costs necessarily incurred by the officer or
             30359      employee in recovering the [attorneys'] attorney fees and costs allowed under this section,
             30360      including [attorneys'] attorney fees and costs incurred on appeal.
             30361          (4) Notwithstanding any other provision of this section, an officer or employee may not
             30362      recover for the costs incurred in defense of any charge, count, or portion of the indictment or
             30363      information that is quashed or dismissed upon application or motion of the prosecuting
             30364      attorney.
             30365          Section 647. Section 52-6-202 , which is renumbered from Section 63-30a-3 is
             30366      renumbered and amended to read:
             30367           [63-30a-3].     52-6-202. Payment of reimbursement of attorney fees and court
             30368      costs.
             30369          (1) A request for reimbursement of [attorneys'] attorney fees and court costs shall be
             30370      filed in the manner provided in Sections [ 63-30d-902 ] 63G-7-902 and [ 63-30d-903 ]
             30371      63G-7-903 .
             30372          (2) (a) Any reimbursement of [attorneys'] attorney fees and court costs filed on behalf
             30373      of an officer or employee of the state shall be paid from funds appropriated to the department or
             30374      division that employed the officer or employee at the time of the act or omission that gave rise
             30375      to the indictment or information.
             30376          (b) If those funds are unavailable, the reimbursement shall be paid from the General
             30377      Fund upon approval by the Board of Examiners and legislative appropriation.
             30378          Section 648. Section 52-7-101 is enacted to read:
             30379     
CHAPTER 7. PUBLIC OFFICERS' ATTORNEY FEES ACT

             30380     
Part 1. General Provisions

             30381          52-7-101. Title.

             30382          This chapter is known as the "Public Officers' Attorney Fees Act."
             30383          Section 649. Section 52-7-102 , which is renumbered from Section 63-30c-1 is
             30384      renumbered and amended to read:
             30385           [63-30c-1].     52-7-102. "Public officer" defined.
             30386          As used in this chapter:
             30387          "Public officer" means a member of the Utah State Senate, a member of the Utah State
             30388      House of Representatives, the governor, lieutenant governor, state auditor, state treasurer,
             30389      attorney general, or any justice or judge of a court of record.
             30390          Section 650. Section 52-7-201 , which is renumbered from Section 63-30c-2 is
             30391      renumbered and amended to read:
             30392     
Part 2. Claims for Attorney Fees

             30393           [63-30c-2].     52-7-201. Reimbursement of attorney fees and court costs in Article
             30394      V lawsuits.
             30395          If any public officer is named as a defendant in a civil suit that alleges a violation of
             30396      Article V of the Utah Constitution, and that lawsuit is dismissed or results in a judgment in
             30397      favor of the defendant, the public officer may, by complying with the requirements and
             30398      procedures of this chapter, submit a claim to the state for reimbursement of [his] the defendant's
             30399      reasonable [attorneys'] attorney fees and court costs necessarily incurred in the defense of that
             30400      civil suit.
             30401          Section 651. Section 52-7-202 , which is renumbered from Section 63-30c-3 is
             30402      renumbered and amended to read:
             30403           [63-30c-3].     52-7-202. Procedure for submitting claim -- Representation of
             30404      certain public officers by named counsel -- Certain claims barred.
             30405          (1) From and after July 1, 1987, within 30 days after [he] a public officer is served with
             30406      a copy of the complaint, a public officer named as a defendant in a civil suit that alleges a
             30407      violation of Article V of the Utah Constitution shall provide the Legislative Management
             30408      Committee and the legislative general counsel with the following information:
             30409          (a) a brief summary of the claims against him;

             30410          (b) the name of the attorney or law firm that will represent him;
             30411          (c) the estimated hourly fee that the attorney or law firm will charge for representing
             30412      the public officer; and
             30413          (d) an estimate of the hours that the attorney projects are necessary to resolve the
             30414      lawsuit.
             30415          (2) (a) Unless prohibited by the rules governing the conduct of attorneys adopted by the
             30416      Utah Supreme Court under the authority of Article VIII, Sec. 4 of the Utah Constitution, the
             30417      Office of the Attorney General, the Office of Legislative Research and General Counsel, or the
             30418      general counsel for the judicial branch shall represent a public officer named as a defendant in a
             30419      civil suit that alleges a violation of Article V of the Utah Constitution if the Utah Constitution,
             30420      statutes, or rules require that such representation be provided.
             30421          (b) If a public officer is represented by the Office of the Attorney General, the Office of
             30422      Legislative Research and General Counsel, or the general counsel of the judicial branch under
             30423      Subsection (2)(a), the public officer may not present a claim for [attorneys'] attorney fees or
             30424      court costs under this chapter.
             30425          Section 652. Section 52-7-203 , which is renumbered from Section 63-30c-4 is
             30426      renumbered and amended to read:
             30427           [63-30c-4].     52-7-203. No review by Board of Examiners.
             30428          The Board of Examiners may not review any claims submitted under the authority of
             30429      this chapter.
             30430          Section 653. Section 52-7-204 , which is renumbered from Section 63-30c-5 is
             30431      renumbered and amended to read:
             30432           [63-30c-5].     52-7-204. Claim and bill given to legislative fiscal analyst and Office
             30433      of Legislative Research and General Counsel -- Independent review available -- Private
             30434      sources of funds to be considered -- Power of Legislature to adjust or refuse claim.
             30435          (1) A public officer who meets the requirements of this chapter shall submit [his] the
             30436      public officer's claim for payment of [attorneys'] attorney fees and court costs, and a copy of
             30437      the bills that the public officer received from the attorney who represented him, to both the

             30438      Office of the Legislative Fiscal Analyst and the Office of Legislative Research and General
             30439      Counsel.
             30440          (2) Upon receipt of a claim from the public officer, the legislative fiscal analyst or the
             30441      legislative general counsel may, at the direction of the Legislative Management Committee,
             30442      submit the claim for [attorneys'] attorney fees to an independent entity to review the [attorneys']
             30443      attorney fees and to recommend an appropriate fee.
             30444          (3) In considering whether or not to pay the claim, the Legislature may consider
             30445      whether or not there are other sources, including private sources, to pay the claim.
             30446          (4) The Legislature may pay the claim in full, adjust the claim, or refuse to pay the
             30447      claim.
             30448          Section 654. Section 52-7-301 , which is renumbered from Section 63-30c-6 is
             30449      renumbered and amended to read:
             30450     
Part 3. Application

             30451           [63-30c-6].     52-7-301. Retrospective application of chapter.
             30452          This chapter applies to any claim arising prior to the effective date of this chapter if that
             30453      claim is filed with the Legislature within two years after the lawsuit was filed.
             30454          Section 655. Section 52-8-101 , which is renumbered from Section 63-93-101 is
             30455      renumbered and amended to read:
             30456     
CHAPTER 8. REPORTS AND NOTICES

             30457     
Part 1. General Provisions

             30458           [63-93-101].     52-8-101. Title.
             30459          This chapter [shall be] is known as "Reports and Notices."
             30460          Section 656. Section 52-8-102 , which is renumbered from Section 63-93-102 is
             30461      renumbered and amended to read:
             30462           [63-93-102].     52-8-102. Definitions.
             30463          As used in this chapter:
             30464          (1) "Attribution" means to be responsible for the truth, correctness, and accuracy of a
             30465      report.

             30466          (2) "Chief executive officer" means:
             30467          (a) the governor, for the state;
             30468          (b) the chair of the county commission or the county executive, for a county; and
             30469          (c) the mayor, for a municipality, or if governed under a council-manager form of
             30470      government, the chair of the council.
             30471          (3) "Government entity" includes the state, its agencies and institutions, each county,
             30472      municipality, school district, local district, and special service district in Utah.
             30473          (4) "Promotional literature" means reports whose primary or secondary purpose is to
             30474      provide nonresidents with information about the government entity that produced the report.
             30475          (5) (a) "Report" means each account, statement, record of proceedings, summary of
             30476      activities, and other written or printed document required by statute that is prepared or
             30477      produced by a government entity that is distributed to the public.
             30478          (b) "Report" does not mean written or printed documents whose primary purpose is to
             30479      provide biographical information about government officials.
             30480          Section 657. Section 52-8-201 , which is renumbered from Section 63-93-201 is
             30481      renumbered and amended to read:
             30482     
Part 2. Penalties

             30483           [63-93-201].     52-8-201. Prohibition.
             30484          (1) Except as provided in Subsection (2), a government entity may not include, as part
             30485      of any report, the photograph or likeness of any elected official.
             30486          (2) A report may contain the photograph or likeness of the chief executive officer of a
             30487      government entity if the report is promotional literature.
             30488          Section 658. Section 52-8-202 , which is renumbered from Section 63-93-202 is
             30489      renumbered and amended to read:
             30490           [63-93-202].     52-8-202. Penalties.
             30491          If an elected official's photograph or likeness appears on any report in violation of this
             30492      section that was prepared under the authority or at the direction of the elected official, that
             30493      elected official is personally liable for the cost of preparing and distributing the report.

             30494          Section 659. Section 52-9-101 , which is renumbered from Section 63-96-101 is
             30495      renumbered and amended to read:
             30496     
CHAPTER 9. ELECTED OFFICIALS' FUNDS

             30497     
Part 1. General Provisions

             30498           [63-96-101].     52-9-101. Title.
             30499          This chapter [shall be] is known as "Elected Officials' Funds."
             30500          Section 660. Section 52-9-102 , which is renumbered from Section 63-96-102 is
             30501      renumbered and amended to read:
             30502           [63-96-102].     52-9-102. Definitions.
             30503          As used in this chapter:
             30504          (1) (a) "Contribution" means any of the following:
             30505          (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of
             30506      value to a fund;
             30507          (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
             30508      subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
             30509      anything of value to a fund; or
             30510          (iii) any transfer of funds from another elected official or surrogate to the filing elected
             30511      official's or surrogate's fund.
             30512          (b) "Contribution" does not include money lent to the elected official or surrogate by a
             30513      financial institution in the ordinary course of business.
             30514          (2) "Disbursement" means monies, transfers, or other withdrawals from a fund for any
             30515      purpose.
             30516          (3) "Elected official" means each person elected to a state office, county office,
             30517      municipal office, school board or school district office, local district office, or special service
             30518      district office, but does not include judges standing for retention election.
             30519          (4) (a) "Fund" means any sum of money or other resources, however titled or
             30520      described, that is segregated, designated, or set aside for the use or benefit of an elected official.
             30521          (b) "Fund" does not mean:

             30522          (i) an elected official's or surrogate's private money or public money; or
             30523          (ii) campaign funds or accounts established by candidates under the authority of Title
             30524      20A, Chapter 11, Part 2, State Office Candidates - Campaign Organization and Financial
             30525      Reporting Requirements, Title 20A, Chapter 11, Part 3, Candidates for Legislative Office -
             30526      Campaign Organization and Financial Reporting Requirements, and Title 20A, Chapter 11, Part
             30527      4, Officeholder Financial Reporting Requirement.
             30528          (5) "Private money" means personal monies used to pay normal expenses for which an
             30529      elected official or surrogate is personally liable for state and federal taxes.
             30530          (6) "Public money" means monies controlled by an elected official or surrogate in their
             30531      public capacity that are accounted for by a governmental entity.
             30532          (7) "Surrogate" means any committee, party, organization, or other person or group
             30533      who holds or maintains a fund for the benefit of an elected official.
             30534          Section 661. Section 52-9-201 , which is renumbered from Section 63-96-103 is
             30535      renumbered and amended to read:
             30536     
Part 2. Reporting Requirements

             30537           [63-96-103].     52-9-201. Reporting of funds -- Reports are public records.
             30538          (1) (a) By January 5 of each year, each state elected official who has a fund, each
             30539      multicounty elected official who has a fund, each surrogate for a state elected official who has a
             30540      fund for a state elected official, and each surrogate for a multicounty elected official who has a
             30541      fund for a multicounty elected official shall file a funds report containing the information
             30542      required by this section with the lieutenant governor.
             30543          (b) By January 5 of each year, each local elected official who has a fund and each
             30544      surrogate for a local elected official who has a fund for a local elected official shall file a funds
             30545      report containing the information required by this section with the county clerk of the county in
             30546      which the local elected official exercises [his] the locally elected official's official duties.
             30547          (2) Each report shall contain:
             30548          (a) the dollar value of the fund as of December 31 of the previous year;
             30549          (b) an itemized list of disbursements from the fund during the previous calendar year

             30550      identifying:
             30551          (i) the date of each disbursement;
             30552          (ii) the name and address of each person or entity to whom a disbursement was made;
             30553      and
             30554          (iii) the purpose of each disbursement; and
             30555          (c) an itemized list of contributions to the fund during the previous calendar year,
             30556      identifying:
             30557          (i) the date of each contribution; and
             30558          (ii) the name and address of each person or entity from whom a contribution was
             30559      received.
             30560          (3) Reports filed under this section are classified as public records for purposes of
             30561      disclosure under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             30562      Management Act.
             30563          Section 662. Section 53-1-105 is amended to read:
             30564           53-1-105. Rulemaking -- Adjudicative proceedings -- Meetings.
             30565          The commissioner and the department and its boards, councils, divisions, and offices
             30566      shall comply with the procedures and requirements of:
             30567          (1) [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             30568      in their rulemaking;
             30569          (2) [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in
             30570      their adjudicative proceedings; and
             30571          (3) Title 52, Chapter 4, Open and Public Meetings Act, in their meetings.
             30572          Section 663. Section 53-1-106 is amended to read:
             30573           53-1-106. Department duties -- Powers.
             30574          (1) In addition to the responsibilities contained in this title, the department shall:
             30575          (a) make rules and perform the functions specified in Title 41, Chapter 6a, Traffic Code,
             30576      including:
             30577          (i) setting performance standards for towing companies to be used by the department,

             30578      as required by Section 41-6a-1406 ; and
             30579          (ii) advising the Department of Transportation regarding the safe design and operation
             30580      of school buses, as required by Section 41-6a-1304 ;
             30581          (b) make rules to establish and clarify standards pertaining to the curriculum and
             30582      teaching methods of a motor vehicle accident prevention course under Section 31A-19a-211 ;
             30583          (c) aid in enforcement efforts to combat drug trafficking;
             30584          (d) meet with the Department of Technology Services to formulate contracts, establish
             30585      priorities, and develop funding mechanisms for dispatch and telecommunications operations;
             30586          (e) provide assistance to the Crime Victims' Reparations Board and Reparations Office
             30587      in conducting research or monitoring victims' programs, as required by Section [ 63-25a-405 ]
             30588      63M-7-505 ;
             30589          (f) develop sexual assault exam protocol standards in conjunction with the Utah
             30590      Hospital Association;
             30591          (g) engage in emergency planning activities, including preparation of policy and
             30592      procedure and rulemaking necessary for implementation of the federal Emergency Planning and
             30593      Community Right to Know Act of 1986, as required by Section [ 63-5-5 ] 63K-3-301 ;
             30594          (h) implement the provisions of Section 53-2-202 , the Emergency Management
             30595      Assistance Compact; and
             30596          (i) (i) maintain a database of the information listed below regarding each driver license
             30597      or state identification card status check made by a law enforcement officer:
             30598          (A) the agency employing the law enforcement officer;
             30599          (B) the name of the law enforcement officer or the identifying number the agency has
             30600      assigned to the law enforcement officer;
             30601          (C) the race and gender of the law enforcement officer;
             30602          (D) the purpose of the law enforcement officer's status check, including but not limited
             30603      to a traffic stop or a pedestrian stop; and
             30604          (E) the race of the individual regarding whom the status check is made, based on the
             30605      information provided through the application process under Section 53-3-205 or 53-3-804 ;

             30606          (ii) provide access to the database created in Subsection (1)(i)(i) to the Commission on
             30607      Criminal and Juvenile Justice for the purpose of:
             30608          (A) evaluating the data;
             30609          (B) evaluating the effectiveness of the data collection process; and
             30610          (C) reporting and making recommendations to the Legislature; and
             30611          (iii) classify any personal identifying information of any individual, including law
             30612      enforcement officers, in the database as protected records under Subsection [ 63-2-304 ]
             30613      63G-2-305 (9).
             30614          (2) (a) The department may establish a schedule of fees as required or allowed in this
             30615      title for services provided by the department.
             30616          (b) The fees shall be established in accordance with Section [ 63-38-3.2 ] 63J-1-303 .
             30617          (3) The department may establish or contract for the establishment of an Organ
             30618      Procurement Donor Registry in accordance with Section 26-28-120 .
             30619          Section 664. Section 53-1-108 is amended to read:
             30620           53-1-108. Commissioner's powers and duties.
             30621          (1) In addition to the responsibilities contained in this title, the commissioner shall:
             30622          (a) administer and enforce this title and Title 41, Chapter 12a, Financial Responsibility
             30623      of Motor Vehicle Owners and Operators Act;
             30624          (b) appoint deputies, inspectors, examiners, clerical workers, and other employees as
             30625      required to properly discharge the duties of the department;
             30626          (c) make rules:
             30627          (i) governing emergency use of signal lights on private vehicles; and
             30628          (ii) allowing privately owned vehicles to be designated for part-time emergency use, as
             30629      provided in Section 41-6a-310 ;
             30630          (d) set standards for safety belt systems, as required by Section 41-6a-1803 ;
             30631          (e) serve as the chairman of the Disaster Emergency Advisory Council, as required by
             30632      Section [ 63-5-4 ] 63K-3-201 ;
             30633          (f) designate vehicles as "authorized emergency vehicles," as required by Section

             30634      41-6a-102 ; and
             30635          (g) on or before January 1, 2003, adopt a written policy that prohibits the stopping,
             30636      detention, or search of any person when the action is solely motivated by considerations of race,
             30637      color, ethnicity, age, or gender.
             30638          (2) The commissioner may:
             30639          (a) subject to the approval of the governor, establish division headquarters at various
             30640      places in the state;
             30641          (b) issue to a special agent a certificate of authority to act as a peace officer and revoke
             30642      that authority for cause, as authorized in Section 56-1-21.5 ;
             30643          (c) create specialized units within the commissioner's office for conducting internal
             30644      affairs and aircraft operations as necessary to protect the public safety;
             30645          (d) cooperate with any recognized agency in the education of the public in safety and
             30646      crime prevention and participate in public or private partnerships, subject to Subsection (3);
             30647          (e) cooperate in applying for and distributing highway safety program funds; and
             30648          (f) receive and distribute federal funding to further the objectives of highway safety in
             30649      compliance with the Federal Assistance Management Program Act.
             30650          (3) (a) Money may not be expended under Subsection (2)(d) for public safety education
             30651      unless it is specifically appropriated by the Legislature for that purpose.
             30652          (b) Any recognized agency receiving state money for public safety shall file with the
             30653      auditor of the state an itemized statement of all its receipts and expenditures.
             30654          Section 665. Section 53-1-110 is amended to read:
             30655           53-1-110. Compilation of highway, traffic, and driver licensing laws -- Printing
             30656      and distribution -- Fees.
             30657          (1) (a) The commissioner shall compile an edition of the general highway, traffic, and
             30658      driver licensing laws of the state as soon as practicable after each regular session of the
             30659      Legislature.
             30660          (b) The edition shall include laws enacted or amended by the most recent session of the
             30661      Legislature.

             30662          (2) (a) The Division of Finance shall print a sufficient quantity of the compiled highway,
             30663      traffic, and driver licensing laws to distribute copies to all state, county, and local enforcement
             30664      agencies, courts, legislators, and other agencies as necessary.
             30665          (b) A fee may be assessed for each copy of the compilation issued by the Division of
             30666      Finance. The fee shall be established by the Division of Finance in accordance with Section
             30667      [ 63-38-3.2 ] 63J-1-303 .
             30668          Section 666. Section 53-1-117 is amended to read:
             30669           53-1-117. Alcohol or drug enforcement funding -- Rulemaking -- Legislative
             30670      findings.
             30671          (1) From monies appropriated by the Legislature and any other funds made available for
             30672      the purposes described under this section, the department shall assist the law enforcement
             30673      agencies of the state and its political subdivisions in the enforcement of alcohol or drug-related
             30674      offenses.
             30675          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             30676      Administrative Rulemaking Act, the commissioner shall make rules establishing criteria and
             30677      procedures for granting monies under this section to law enforcement agencies for:
             30678          (a) providing equipment, including drug and alcohol testing equipment;
             30679          (b) funding the training and overtime of peace officers; and
             30680          (c) managing driving under the influence related abandoned vehicles.
             30681          (3) The Legislature finds that these monies are for a general and statewide public
             30682      purpose.
             30683          Section 667. Section 53-2-102 is amended to read:
             30684           53-2-102. Definitions.
             30685          As used in this part:
             30686          (1) "Attack" means a nuclear, conventional, biological, or chemical warfare action
             30687      against the United States of America or this state.
             30688          (2) "Director" means the division director appointed under Section 53-2-103 .
             30689          (3) "Disaster" means a situation causing, or threatening to cause, widespread damage,

             30690      social disruption, or injury or loss of life or property resulting from attack, internal disturbance,
             30691      natural phenomena, or technological hazard.
             30692          (4) "Division" means the Division of Homeland Security created in Section 53-2-103 .
             30693          (5) "Energy" includes the energy resources defined in Section [ 63-53a-1 ] 63K-2-103 .
             30694          (6) "Expenses" means actual labor costs of government and volunteer personnel,
             30695      including workers compensation benefits, fringe benefits, administrative overhead, cost of
             30696      equipment, cost of equipment operation, cost of materials, and the cost of any contract labor
             30697      and materials.
             30698          (7) "Hazardous materials emergency" means a sudden and unexpected release of any
             30699      substance that because of its quantity, concentration, or physical, chemical, or infectious
             30700      characteristics presents a direct and immediate threat to public safety or the environment and
             30701      requires immediate action to mitigate the threat.
             30702          (8) "Internal disturbance" means a riot, prison break, disruptive terrorism, or strike.
             30703          (9) "Natural phenomena" means any earthquake, tornado, storm, flood, landslide,
             30704      avalanche, forest or range fire, drought, or epidemic.
             30705          (10) "State of emergency" means a condition in any part of this state that requires state
             30706      government emergency assistance to supplement the local efforts of the affected political
             30707      subdivision to save lives and to protect property, public health, welfare, or safety in the event of
             30708      a disaster, or to avoid or reduce the threat of a disaster.
             30709          (11) "Technological hazard" means any hazardous materials accident, mine accident,
             30710      train derailment, air crash, radiation incident, pollution, structural fire, or explosion.
             30711          Section 668. Section 53-2-102.5 is amended to read:
             30712           53-2-102.5. Loan program for disasters prior to Disaster Recovery Funding Act.
             30713          (1) (a) For each promissory note issued under this section that is unpaid on May 1,
             30714      2006, the director shall issue a new promissory note to replace the existing promissory note:
             30715          (i) for the principal amount of the unpaid promissory note without accrued interest, if
             30716      any;
             30717          (ii) due on or before June 30, 2007; and

             30718          (iii) with no interest rate.
             30719          (b) For a promissory note issued under this section that is unpaid as of April 30, 2007,
             30720      the division shall ensure that when the principal on the promissory note is repaid, the repayment
             30721      is made to the State Disaster Recovery Restricted Account created in Section 53-2-403 .
             30722          (2) The director shall ensure that each promissory note issued under this section that is
             30723      funded by monies appropriated and available for disaster loans as of January 1, 2006, are due on
             30724      or before June 30, 2007.
             30725          (3) The Division of Finance shall transfer by no later than June 30, 2007, any monies
             30726      repaid under this section to the General Fund Budget Reserve Account established in Section
             30727      [ 63-38-2.5 ] 63J-1-202 to the State Disaster Recovery Restricted Account created in Section
             30728      53-2-403 .
             30729          (4) Any amount on a promissory note issued under this section before April 30, 2007
             30730      that is unpaid as of June 30, 2007 is forgiven and need not be repaid.
             30731          Section 669. Section 53-2-104 is amended to read:
             30732           53-2-104. Division duties -- Powers.
             30733          (1) The division shall:
             30734          (a) respond to the policies of the governor and the Legislature;
             30735          (b) perform functions relating to emergency services and homeland security matters as
             30736      directed by the commissioner;
             30737          (c) prepare, implement, and maintain programs and plans to provide for:
             30738          (i) prevention and minimization of injury and damage caused by disasters;
             30739          (ii) prompt and effective response to and recovery from disasters;
             30740          (iii) identification of areas particularly vulnerable to disasters;
             30741          (iv) coordination of hazard mitigation and other preventive and preparedness measures
             30742      designed to eliminate or reduce disasters;
             30743          (v) assistance to local officials, state agencies, and the business and public sectors, in
             30744      developing emergency action plans;
             30745          (vi) coordination of federal, state, and local emergency activities;

             30746          (vii) coordination of emergency operations plans with emergency plans of the federal
             30747      government;
             30748          (viii) coordination of search and rescue activities;
             30749          (ix) coordination of rapid and efficient communications in times of emergency; and
             30750          (x) other measures necessary, incidental, or appropriate to this part;
             30751          (d) coordinate with local officials, state agencies, and the business and public sectors in
             30752      developing, implementing, and maintaining a state energy emergency plan in accordance with
             30753      Section 53-2-110 ; and
             30754          (e) administer Part 4, Disaster Recovery Funding Act, in accordance with that part.
             30755          (2) The division may consult with the Legislative Management Committee, the Judicial
             30756      Council, and legislative and judicial staff offices to assist them in preparing emergency
             30757      succession plans and procedures under [Title 63, Chapter 5b] Title 63K, Chapter 1, Emergency
             30758      Interim Succession Act.
             30759          Section 670. Section 53-2-105 is amended to read:
             30760           53-2-105. Hazardous materials emergency -- Recovery of expenses.
             30761          (1) (a) The director may recover from those persons whose negligent actions caused the
             30762      hazardous materials emergency, expenses incurred by state agencies directly associated with a
             30763      response to a hazardous materials emergency taken under authority of this part, [Title 63,
             30764      Chapter 5] Title 63K, Chapter 3, Emergency Management Act, or [Title 63, Chapter 5a] Title
             30765      63K, Chapter 2, Disaster Response and Recovery.
             30766          (b) The payment of expenses under this Subsection (1) does not constitute an admission
             30767      of liability or negligence in any legal action for damages.
             30768          (c) The director may obtain assistance from the attorney general or a county attorney of
             30769      the affected jurisdiction to assist the director in recovering expenses and legal fees.
             30770          (d) Any recovered costs shall be deposited in the General Fund as dedicated credits to
             30771      be used by the division to reimburse state and local government agencies for the costs they have
             30772      incurred.
             30773          (2) (a) If the cost directly associated with emergency response exceeds all available

             30774      funds of the division within a given fiscal year, the division, with approval from the governor,
             30775      may incur a deficit in its line item budget.
             30776          (b) The Legislature shall provide a supplemental appropriation in the following year to
             30777      cover the deficit.
             30778          (c) The division shall deposit all costs associated with any emergency response that are
             30779      collected in subsequent fiscal years into the General Fund.
             30780          (3) Any political subdivision may enact local ordinances pursuant to existing statutory
             30781      or constitutional authority to provide for the recovery of expenses incurred by the political
             30782      subdivision.
             30783          Section 671. Section 53-2-106 is amended to read:
             30784           53-2-106. Expenditures authorized by "state of emergency" declaration.
             30785          (1) (a) The director may use funds authorized under [Title 63, Chapter 5a] Title 63K,
             30786      Chapter 2, Disaster Response and Recovery, to provide:
             30787          (i) transportation to and from the disaster scene;
             30788          (ii) accommodations at the disaster scene for prolonged incidents; and
             30789          (iii) emergency purchase of response equipment and supplies in direct support of a
             30790      disaster.
             30791          (b) The commissioner may authorize the use of funds accrued under [Title 63, Chapter
             30792      5a] Title 63K, Chapter 2, only if the governor declares a state of emergency as provided in
             30793      [Title 63, Chapter 5a] Title 63K, Chapter 2, Disaster Response and Recovery.
             30794          (2) These funds may not be allocated to a political subdivision unless the political
             30795      subdivision has demonstrated that it is beyond its capability to respond to the disaster and that
             30796      no other resources are available in sufficient amount to meet the disaster.
             30797          Section 672. Section 53-2-107 is amended to read:
             30798           53-2-107. Search and Rescue Financial Assistance Program -- Uses -- Rulemaking
             30799      -- Distribution.
             30800          (1) "Reimbursable expenses," as used in this section, means those reasonable costs
             30801      incidental to search and rescue activities, not including any salary or overtime paid to any

             30802      person on a regular or permanent payroll, including permanent part-time employees, of any
             30803      agency or political subdivision of the state, including:
             30804          (a) rental for fixed wing aircraft, helicopters, snowmobiles, boats, and generators;
             30805          (b) replacement and upgrade of search and rescue equipment;
             30806          (c) training of search and rescue volunteers; and
             30807          (d) any other equipment or expenses necessary or appropriate for conducting search
             30808      and rescue activities.
             30809          (2) There is created the Search and Rescue Financial Assistance Program within the
             30810      division.
             30811          (3) (a) The program shall be funded from the following revenue sources:
             30812          (i) any voluntary contributions to the state received for search and rescue operations;
             30813          (ii) monies received by the state under Section 23-19-42 and Section 41-22-34 ; and
             30814          (iii) appropriations made to the program by the Legislature.
             30815          (b) All funding for the program shall be nonlapsing.
             30816          (4) The director shall use the monies to reimburse counties for all or a portion of each
             30817      county's reimbursable expenses for search and rescue operations subject to:
             30818          (a) the approval of the Search and Rescue Advisory Board as provided in Section
             30819      53-2-109 ;
             30820          (b) monies available in the program; and
             30821          (c) rules made under Subsection (7).
             30822          (5) Program monies may not be used to reimburse for any paid personnel costs or paid
             30823      man hours spent in emergency response and search and rescue related activities.
             30824          (6) The Legislature finds that these funds are for a general and statewide public
             30825      purpose.
             30826          (7) The division, with the approval of the Search and Rescue Advisory Board, shall
             30827      make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             30828      Administrative Rulemaking Act, consistent with this act, establishing:
             30829          (a) the costs that qualify as reimbursable expenses;

             30830          (b) the procedures of agencies to submit expenses and be reimbursed; and
             30831          (c) a formula to govern the distribution of available monies between counties based on:
             30832          (i) the total qualifying expenses submitted;
             30833          (ii) the number of search and rescue incidents per county population;
             30834          (iii) the number of victims that reside outside the county; and
             30835          (iv) the number of volunteer hours spent in each county in emergency response and
             30836      search and rescue related activities per county population.
             30837          Section 673. Section 53-2-110 is amended to read:
             30838           53-2-110. Energy emergency plan.
             30839          (1) The division shall develop an energy emergency plan consistent with [Title 63,
             30840      Chapter 53a] Title 63K, Chapter 2, Energy Emergency Powers of Governor.
             30841          (2) In developing the energy emergency plan, the division shall coordinate with:
             30842          (a) the Division of Public Utilities;
             30843          (b) the Division of Oil, Gas, and Mining;
             30844          (c) the Division of Air Quality; and
             30845          (d) the Department of Agriculture and Food with regard to weights and measures.
             30846          (3) The energy emergency plan shall:
             30847          (a) designate the division as the entity that will coordinate the implementation of the
             30848      energy emergency plan;
             30849          (b) provide for annual review of the energy emergency plan;
             30850          (c) provide for cooperation with public utilities and other relevant private sector
             30851      persons;
             30852          (d) provide a procedure for maintaining a current list of contact persons required under
             30853      the energy emergency plan; and
             30854          (e) provide that the energy emergency plan may only be implemented if the governor
             30855      declares:
             30856          (i) a state of emergency as provided in [Title 63, Chapter 5a] Title 63K, Chapter 2,
             30857      Disaster Response and Recovery; or

             30858          (ii) a state of emergency related to energy as provided in [Title 63, Chapter 53a] Title
             30859      63K, Chapter 2, Energy Emergency Powers of Governor.
             30860          (4) If an event requires the implementation of the energy emergency plan, the division
             30861      shall report on that event and the implementation of the energy emergency plan to:
             30862          (a) the governor; and
             30863          (b) the Public Utilities and Technology Interim Committee.
             30864          (5) If the energy emergency plan includes a procedure for obtaining information, the
             30865      energy emergency plan shall incorporate reporting procedures that conform to existing
             30866      requirements of federal, state, and local regulatory authorities wherever possible.
             30867          Section 674. Section 53-2-402 is amended to read:
             30868           53-2-402. Definitions.
             30869          (1) Unless otherwise defined in this section, the terms defined in Part 1, Homeland
             30870      Security Act, shall have the same meaning for this part.
             30871          (2) As used in this part:
             30872          (a) "Declared disaster" means one or more events:
             30873          (i) within the state;
             30874          (ii) that occur within a limited period of time;
             30875          (iii) that involve:
             30876          (A) a significant number of persons being at risk of bodily harm, sickness, or death; or
             30877          (B) a significant portion of real property at risk of loss;
             30878          (iv) that are sudden in nature and generally occur less frequently than every three years;
             30879      and
             30880          (v) that results in:
             30881          (A) the president of the United States declaring an emergency or major disaster in the
             30882      state;
             30883          (B) the governor declaring a state of emergency under [Title 63, Chapter 5a] Title 63K,
             30884      Chapter 2, Disaster Response and Recovery; or
             30885          (C) the chief executive officer of a local government declaring a local emergency under

             30886      [Title 63, Chapter 5a] Title 63K, Chapter 2, Disaster Response and Recovery.
             30887          (b) "Disaster recovery fund" means the State Disaster Recovery Restricted Account
             30888      created in Section 53-2-403 .
             30889          (c) "Emergency preparedness" means the following done for the purpose of being
             30890      prepared for an emergency as defined by the division by rule made in accordance with [Title 63,
             30891      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             30892          (i) the purchase of equipment;
             30893          (ii) the training of personnel; or
             30894          (iii) the obtaining of a certification.
             30895          (d) (i) "Emergency disaster services" means the following that are of a temporary basis:
             30896          (A) evacuation;
             30897          (B) shelter;
             30898          (C) medical triage;
             30899          (D) emergency transportation;
             30900          (E) repair of infrastructure;
             30901          (F) safety services, including fencing or roadblocks;
             30902          (G) sandbagging;
             30903          (H) emergency debris removal;
             30904          (I) temporary bridges;
             30905          (J) procurement and distribution of food, water, or ice;
             30906          (K) procurement and deployment of generators;
             30907          (L) rescue or recovery; or
             30908          (M) services similar to those described in Subsections (2)(d)(i)(A) through (L), as
             30909      defined by the division by rule, that are generally required within the first 96 hours of a declared
             30910      disaster.
             30911          (ii) "Emergency disaster services" does not include:
             30912          (A) emergency preparedness; or
             30913          (B) notwithstanding whether or not a county participates in the Wildland Fire

             30914      Suppression Fund created in Section 65A-8-6.1 , any fire suppression or presuppression costs
             30915      that may be paid for from the Wildland Fire Suppression Fund if the county participates in the
             30916      Wildland Fire Suppression Fund.
             30917          (e) "Local fund" means a local government disaster fund created in accordance with
             30918      Section 53-2-405 .
             30919          (f) "Local government" means a county, city, or town.
             30920          (g) "Special fund" means a fund other than a general fund of a local government that is
             30921      created for a special purpose established under the uniform system of budgeting, accounting,
             30922      and reporting.
             30923          Section 675. Section 53-2-403 is amended to read:
             30924           53-2-403. State Disaster Recovery Restricted Account.
             30925          (1) (a) There is created a restricted account in the General Fund known as the "State
             30926      Disaster Recovery Restricted Account."
             30927          (b) The disaster recovery fund shall consist of:
             30928          (i) monies deposited into the disaster recovery fund in accordance with Section
             30929      53-2-102.5 ;
             30930          (ii) monies deposited into the disaster recovery fund in accordance with Section
             30931      [ 63-38-2.7 ] 63J-1-204 ;
             30932          (iii) monies appropriated to the disaster recovery fund by the Legislature;
             30933          (iv) any other public or private monies received by the division that are:
             30934          (A) given to the division for purposes consistent with this section; and
             30935          (B) deposited into the disaster recovery fund at the request of:
             30936          (I) the division; or
             30937          (II) the person giving the monies; and
             30938          (v) interest or other earnings derived from the disaster recovery fund.
             30939          (c) Monies in the disaster recovery fund may only be used as follows:
             30940          (i) without the monies being appropriated by the Legislature, in any fiscal year the
             30941      division may use $100,000 to fund, in accordance with Section 53-2-404 , costs to the state of

             30942      emergency disaster services in response to a declared disaster; and
             30943          (ii) subject to being appropriated by the Legislature, monies not described in Subsection
             30944      (1)(c)(i) may be used to fund costs to the state directly related to a declared disaster that are not
             30945      costs related to:
             30946          (A) emergency disaster services;
             30947          (B) emergency preparedness; or
             30948          (C) notwithstanding whether or not a county participates in the Wildland Fire
             30949      Suppression Fund created in Section 65A-8-6.1 , any fire suppression or presuppression costs
             30950      that may be paid for from the Wildland Fire Suppression Fund if the county participates in the
             30951      Wildland Fire Suppression Fund.
             30952          (2) The state treasurer shall invest monies in the disaster recovery fund according to
             30953      Title 51, Chapter 7, State Money Management Act, except that the state treasurer shall deposit
             30954      all interest or other earnings derived from the disaster recovery fund into the disaster recovery
             30955      fund.
             30956          (3) (a) Except as provided in Subsection (1), the monies in the disaster recovery fund
             30957      may not be diverted, appropriated, or used for a purpose that is not listed in this section.
             30958          (b) Notwithstanding Section [ 63-38-3.6 ] 63J-1-307 , the Legislature may not
             30959      appropriate monies from the disaster recovery fund to eliminate or otherwise reduce an
             30960      operating deficit if the monies appropriated from the disaster recovery fund are used for a
             30961      purpose other than one listed in this section.
             30962          (c) The Legislature may not amend the purposes for which monies in the disaster
             30963      recovery fund may be used except by the affirmative vote of two-thirds of all the members
             30964      elected to each house.
             30965          Section 676. Section 53-2-404 is amended to read:
             30966           53-2-404. State costs for emergency disaster services.
             30967          (1) Subject to this section and Section 53-2-403 , the division shall use monies described
             30968      in Subsection 53-2-403 (1)(c)(i) to fund costs to the state of emergency disaster services.
             30969          (2) Monies paid by the division under this section to government entities and private

             30970      persons providing emergency disaster services are subject to [Title 63, Chapter 56] Title 63G,
             30971      Chapter 6, Utah Procurement Code.
             30972          Section 677. Section 53-2-509 is amended to read:
             30973           53-2-509. Personnel responding to requests for assistance.
             30974          (1) Each person or entity holding a license, certificate, or other permit evidencing
             30975      qualification in a professional, mechanical, or other skill and responding to a request from a
             30976      requesting political subdivision shall, while providing assistance during a declared emergency or
             30977      during an authorized drill or exercise, be considered to be licensed, certified, or permitted in the
             30978      requesting political subdivision, except as limited by the chief executive officer of the requesting
             30979      political subdivision.
             30980          (2) Each law enforcement officer rendering aid as provided in this part under the
             30981      authority of a state of emergency declared by the governor, whether inside or outside the
             30982      officer's jurisdiction, shall have all law enforcement powers and the same privileges and
             30983      immunities that the officer has in the officer's own jurisdiction.
             30984          (3) Each employee of a responding political subdivision responding to a request by or
             30985      giving assistance to a requesting political subdivision as provided in this part:
             30986          (a) is entitled to:
             30987          (i) all applicable workers compensation benefits for injury or death occurring as a result
             30988      of the employee's participation in the response or assistance; and
             30989          (ii) any additional state or federal benefits available for line of duty injury or death; and
             30990          (b) is, for purposes of liability, considered to be an employee of the requesting political
             30991      subdivision.
             30992          (4) Each responding political subdivision and its employees are immune from liability
             30993      arising out of their actions in responding to a request from a requesting political subdivision to
             30994      the extent provided in Section [ 63-30d-201 ] 63G-7-201 .
             30995          Section 678. Section 53-3-104 is amended to read:
             30996           53-3-104. Division duties.
             30997          The division shall:

             30998          (1) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             30999      Administrative Rulemaking Act, make rules:
             31000          (a) for examining applicants for a license, as necessary for the safety and welfare of the
             31001      traveling public;
             31002          (b) for acceptable documentation of an applicant's identity, Utah resident status, Utah
             31003      residence address, proof of legal presence, proof of citizenship of a country other than the
             31004      United States, and other proof or documentation required under this chapter;
             31005          (c) regarding the restrictions to be imposed on a person driving a motor vehicle with a
             31006      temporary learner permit or learner permit; and
             31007          (d) for exemptions from licensing requirements as authorized in this chapter;
             31008          (2) examine each applicant according to the class of license applied for;
             31009          (3) license motor vehicle drivers;
             31010          (4) file every application for a license received by it and shall maintain indices
             31011      containing:
             31012          (a) all applications denied and the reason each was denied;
             31013          (b) all applications granted; and
             31014          (c) the name of every licensee whose license has been suspended, disqualified, or
             31015      revoked by the division and the reasons for the action;
             31016          (5) suspend, revoke, disqualify, cancel, or deny any license issued in accordance with
             31017      this chapter;
             31018          (6) file all accident reports and abstracts of court records of convictions received by it
             31019      under state law;
             31020          (7) maintain a record of each licensee showing [his] the licensee's convictions and the
             31021      traffic accidents in which [he] the licensee has been involved where a conviction has resulted;
             31022          (8) consider the record of a licensee upon an application for renewal of a license and at
             31023      other appropriate times;
             31024          (9) search the license files, compile, and furnish a report on the driving record of any
             31025      person licensed in the state in accordance with Section 53-3-109 ;

             31026          (10) develop and implement a record system as required by Section 41-6a-604 ;
             31027          (11) in accordance with Section 53A-13-208 , establish:
             31028          (a) procedures and standards to certify teachers of driver education classes to
             31029      administer knowledge and skills tests;
             31030          (b) minimal standards for the tests; and
             31031          (c) procedures to enable school districts to administer or process any tests for students
             31032      to receive a class D operator's license;
             31033          (12) in accordance with Section 53-3-510 , establish:
             31034          (a) procedures and standards to certify licensed instructors of commercial driver
             31035      training school courses to administer the skills test;
             31036          (b) minimal standards for the test; and
             31037          (c) procedures to enable licensed commercial driver training schools to administer or
             31038      process skills tests for students to receive a class D operator's license; and
             31039          (13) provide administrative support to the Driver License Medical Advisory Board
             31040      created in Section 53-3-303 .
             31041          Section 679. Section 53-3-106 is amended to read:
             31042           53-3-106. Disposition of revenues under this chapter -- Restricted account
             31043      created -- Uses as provided by appropriation -- Nonlapsing.
             31044          (1) There is created within the Transportation Fund a restricted account known as the
             31045      "Department of Public Safety Restricted Account."
             31046          (2) The account consists of monies generated from the following revenue sources:
             31047          (a) all monies received under this chapter;
             31048          (b) administrative fees received according to the fee schedule authorized under this
             31049      chapter and Section [ 63-38-3.2 ] 63J-1-303 ; and
             31050          (c) any appropriations made to the account by the Legislature.
             31051          (3) (a) The account shall earn interest.
             31052          (b) All interest earned on account monies shall be deposited in the account.
             31053          (4) The expenses of the department in carrying out this chapter shall be provided for by

             31054      legislative appropriation from this account.
             31055          (5) The amount in excess of $45 of the fees collected under Subsection 53-3-105 (30)
             31056      shall be appropriated by the Legislature from this account to the department to implement the
             31057      provisions of Section 53-1-117 , except that of the amount in excess of $45, $40 shall be
             31058      deposited in the State Laboratory Drug Testing restricted account created in Section 26-1-34 .
             31059          (6) All monies received under Subsection 41-6a-1406 (6)(b)(ii) shall be appropriated by
             31060      the Legislature from this account to the department to implement the provisions of Section
             31061      53-1-117 .
             31062          (7) Appropriations to the department from the account are nonlapsing.
             31063          Section 680. Section 53-3-109 is amended to read:
             31064           53-3-109. Records -- Access -- Fees -- Rulemaking.
             31065          (1) (a) Except as provided in this section, all records of the division shall be classified
             31066      and disclosed in accordance with [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             31067      Records Access and Management Act.
             31068          (b) The division may only disclose personal identifying information:
             31069          (i) when the division determines it is in the interest of the public safety to disclose the
             31070      information; and
             31071          (ii) in accordance with the federal Driver's Privacy Protection Act of 1994, 18 U.S.C.
             31072      Chapter 123.
             31073          (c) The division may disclose personal identifying information:
             31074          (i) to a licensed private investigator holding a valid agency or registrant license, with a
             31075      legitimate business need;
             31076          (ii) to an insurer, insurance support organization, or a self-insured entity, or its agents,
             31077      employees, or contractors that issues any motor vehicle insurance under Title 31A, Chapter 22,
             31078      Part 3, Motor Vehicle Insurance, for use in connection with claims investigation activities,
             31079      antifraud activities, rating, or underwriting for any person issued a license certificate under this
             31080      chapter; or
             31081          (iii) to a depository institution as defined in Section 7-1-103 for use in accordance with

             31082      the federal Driver's Privacy Protection Act of 1994, 18 U.S.C. Chapter 123.
             31083          (2) (a) A person who receives personal identifying information shall be advised by the
             31084      division that the person may not:
             31085          (i) disclose the personal identifying information from that record to any other person; or
             31086          (ii) use the personal identifying information from that record for advertising or
             31087      solicitation purposes.
             31088          (b) Any use of personal identifying information by an insurer or insurance support
             31089      organization, or by a self-insured entity or its agents, employees, or contractors not authorized
             31090      by Subsection (1)(c)(ii) is:
             31091          (i) an unfair marketing practice under Section 31A-23a-402 ; or
             31092          (ii) an unfair claim settlement practice under Subsection 31A-26-303 (3).
             31093          (3) (a) Notwithstanding the provisions of Subsection (1)(b), the division or its designee
             31094      may disclose portions of a driving record, in accordance with this Subsection (3), to an insurer
             31095      as defined under Section 31A-1-301 , or a designee of an insurer, for purposes of assessing
             31096      driving risk on the insurer's current motor vehicle insurance policyholders.
             31097          (b) The disclosure under Subsection (3)(a) shall:
             31098          (i) include the licensed driver's name, driver license number, date of birth, and an
             31099      indication of whether the driver has had a moving traffic violation that is a reportable violation,
             31100      as defined under Section 53-3-102 during the previous month;
             31101          (ii) be limited to the records of drivers who, at the time of the disclosure, are covered
             31102      under a motor vehicle insurance policy of the insurer; and
             31103          (iii) be made under a contract with the insurer or a designee of an insurer.
             31104          (c) The contract under Subsection (3)(b)(iii) shall specify:
             31105          (i) the criteria for searching and compiling the driving records being requested;
             31106          (ii) the frequency of the disclosures;
             31107          (iii) the format of the disclosures, which may be in bulk electronic form; and
             31108          (iv) a reasonable charge for the driving record disclosures under Subsection (3).
             31109          (4) The division may:

             31110          (a) collect fees in accordance with Section 53-3-105 for searching and compiling its
             31111      files or furnishing a report on the driving record of a person;
             31112          (b) prepare under the seal of the division and deliver upon request, a certified copy of
             31113      any record of the division, and charge a fee under Section [ 63-38-3.2 ] 63J-1-303 for each
             31114      document authenticated; and
             31115          (c) charge reasonable fees established in accordance with the procedures and
             31116      requirements of Section [ 63-38-3.2 ] 63J-1-303 for disclosing personal identifying information
             31117      under Subsection (1)(c).
             31118          (5) Each certified copy of a driving record furnished in accordance with this section is
             31119      admissible in any court proceeding in the same manner as the original.
             31120          (6) (a) A driving record furnished under this section may only report on the driving
             31121      record of a person for a period of ten years.
             31122          (b) Subsection (6)(a) does not apply to court or law enforcement reports and to reports
             31123      of commercial driver license violations.
             31124          (7) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             31125      Administrative Rulemaking Act, the division may make rules to designate:
             31126          (a) what information shall be included in a report on the driving record of a person;
             31127          (b) the form of a report or copy of the report which may include electronic format;
             31128          (c) the form of a certified copy, as required under Section 53-3-216 , which may include
             31129      electronic format;
             31130          (d) the form of a signature required under this chapter which may include electronic
             31131      format;
             31132          (e) the form of written request to the division required under this chapter which may
             31133      include electronic format;
             31134          (f) the procedures, requirements, and formats for disclosing personal identifying
             31135      information under Subsection (1)(c); and
             31136          (g) the procedures, requirements, and formats necessary for the implementation of
             31137      Subsection (3).

             31138          Section 681. Section 53-3-205 is amended to read:
             31139           53-3-205. Application for license or endorsement -- Fee required -- Tests --
             31140      Expiration dates of licenses and endorsements -- Information required -- Previous licenses
             31141      surrendered -- Driving record transferred from other states -- Reinstatement -- Fee
             31142      required -- License agreement.
             31143          (1) An application for any original license, provisional license, or endorsement shall be:
             31144          (a) made upon a form furnished by the division; and
             31145          (b) accompanied by a nonrefundable fee set under Section 53-3-105 .
             31146          (2) An application and fee for an original provisional class D license or an original class
             31147      D license entitle the applicant to:
             31148          (a) not more than three attempts to pass both the knowledge and the skills tests for a
             31149      class D license within six months of the date of the application;
             31150          (b) a learner permit if needed pending completion of the application and testing process;
             31151      and
             31152          (c) an original class D license and license certificate after all tests are passed.
             31153          (3) An application and fee for an original class M license entitle the applicant to:
             31154          (a) not more than three attempts to pass both the knowledge and skills tests for a class
             31155      M license within six months of the date of the application;
             31156          (b) a motorcycle learner permit if needed after the knowledge test is passed; and
             31157          (c) an original class M license and license certificate after all tests are passed.
             31158          (4) An application and fee for a motorcycle or taxicab endorsement entitle the applicant
             31159      to:
             31160          (a) not more than three attempts to pass both the knowledge and skills tests within six
             31161      months of the date of the application;
             31162          (b) a motorcycle learner permit if needed after the motorcycle knowledge test is passed;
             31163      and
             31164          (c) a motorcycle or taxicab endorsement when all tests are passed.
             31165          (5) An application and fees for a commercial class A, B, or C license entitle the

             31166      applicant to:
             31167          (a) not more than two attempts to pass a knowledge test and not more than two
             31168      attempts to pass a skills test within six months of the date of the application;
             31169          (b) a commercial driver instruction permit if needed after the knowledge test is passed;
             31170      and
             31171          (c) an original commercial class A, B, or C license and license certificate when all
             31172      applicable tests are passed.
             31173          (6) An application and fee for a CDL endorsement entitle the applicant to:
             31174          (a) not more than two attempts to pass a knowledge test and not more than two
             31175      attempts to pass a skills test within six months of the date of the application; and
             31176          (b) a CDL endorsement when all tests are passed.
             31177          (7) If a CDL applicant does not pass a knowledge test, skills test, or an endorsement
             31178      test within the number of attempts provided in Subsection (5) or (6), each test may be taken
             31179      two additional times within the six months for the fee provided in Section 53-3-105 .
             31180          (8) (a) Except as provided under Subsections (8)(f), (g), and (h), an original license
             31181      expires on the birth date of the applicant in the fifth year following the year the license
             31182      certificate was issued.
             31183          (b) Except as provided under Subsections (8)(f), (g), and (h), a renewal or an extension
             31184      to a license expires on the birth date of the licensee in the fifth year following the expiration date
             31185      of the license certificate renewed or extended.
             31186          (c) Except as provided under Subsections (8)(f) and (g), a duplicate license expires on
             31187      the same date as the last license certificate issued.
             31188          (d) An endorsement to a license expires on the same date as the license certificate
             31189      regardless of the date the endorsement was granted.
             31190          (e) A license and any endorsement to the license held by a person ordered to active duty
             31191      and stationed outside Utah in any of the armed forces of the United States, which expires during
             31192      the time period the person is stationed outside of the state, is valid until 90 days after the person
             31193      has been discharged or has left the service, unless:

             31194          (i) the license is suspended, disqualified, denied, or has been cancelled or revoked by
             31195      the division; or
             31196          (ii) the licensee updates the information or photograph on the license certificate.
             31197          (f) An original license or a renewal to an original license obtained using proof under
             31198      Subsection (9)(a)(i)(E)(III) expires on the date of the expiration of the applicant's foreign visa,
             31199      permit, or other document granting legal presence in the United States or on the date provided
             31200      under this Subsection (8), whichever is sooner.
             31201          (g) (i) An original license or a renewal or a duplicate to an original license expires on
             31202      the next birth date of the applicant or licensee beginning on July 1, 2005 if:
             31203          (A) the license was obtained without using a Social Security number as required under
             31204      Subsection (9); and
             31205          (B) the license certificate or driving privilege card is not clearly distinguished as
             31206      required under Subsection 53-3-207 (6).
             31207          (ii) A driving privilege card issued or renewed under Section 53-3-207 expires on the
             31208      birth date of the applicant in the first year following the year that the driving privilege card was
             31209      issued or renewed.
             31210          (iii) The expiration dates provided under Subsections (8)(g)(i) and (ii) do not apply to
             31211      an original license or driving privilege card or to the renewal of an original license or driving
             31212      privilege card with an expiration date provided under Subsection (8)(f).
             31213          (h) An original license or a renewal to an original license expires on the birth date of the
             31214      applicant in the first year following the year that the license was issued if the applicant is
             31215      required to register as a sex offender under Section 77-27-21.5 .
             31216          (9) (a) In addition to the information required by [Title 63, Chapter 46b] Title 63G,
             31217      Chapter 4, Administrative Procedures Act, for requests for agency action, each applicant shall:
             31218          (i) provide the applicant's:
             31219          (A) full legal name;
             31220          (B) birth date;
             31221          (C) gender;

             31222          (D) between July 1, 2002 and July 1, 2007, race in accordance with the categories
             31223      established by the United States Census Bureau;
             31224          (E) (I) Social Security number;
             31225          (II) temporary identification number (ITIN) issued by the Internal Revenue Service for
             31226      a person who does not qualify for a Social Security number; or
             31227          (III) (Aa) proof that the applicant is a citizen of a country other than the United States;
             31228          (Bb) proof that the applicant does not qualify for a Social Security number; and
             31229          (Cc) proof of legal presence in the United States, as authorized under federal law; and
             31230          (F) Utah residence address as documented by a form acceptable under rules made by
             31231      the division under Section 53-3-104 , unless the application is for a temporary CDL issued under
             31232      Subsection 53-3-407 (2)(b);
             31233          (ii) provide a description of the applicant;
             31234          (iii) state whether the applicant has previously been licensed to drive a motor vehicle
             31235      and, if so, when and by what state or country;
             31236          (iv) state whether the applicant has ever had any license suspended, cancelled, revoked,
             31237      disqualified, or denied in the last six years, or whether the applicant has ever had any license
             31238      application refused, and if so, the date of and reason for the suspension, cancellation,
             31239      revocation, disqualification, denial, or refusal;
             31240          (v) state whether the applicant intends to make an anatomical gift under Title 26,
             31241      Chapter 28, Revised Uniform Anatomical Gift Act, in compliance with Subsection (16);
             31242          (vi) state whether the applicant is required to register as a sex offender under Section
             31243      77-27-21.5 ;
             31244          (vii) state whether the applicant is a military veteran and does or does not authorize
             31245      sharing the information with the state Department of Veterans' Affairs;
             31246          (viii) provide all other information the division requires; and
             31247          (ix) sign the application which signature may include an electronic signature as defined
             31248      in Section 46-4-102 .
             31249          (b) Each applicant shall have a Utah residence address, unless the application is for a

             31250      temporary CDL issued under Subsection 53-3-407 (2)(b).
             31251          (c) The division shall maintain on its computerized records an applicant's:
             31252          (i) (A) Social Security number;
             31253          (B) temporary identification number (ITIN); or
             31254          (C) other number assigned by the division if Subsection (9)(a)(i)(E)(III) applies; and
             31255          (ii) indication whether the applicant is required to register as a sex offender under
             31256      Section 77-27-21.5 .
             31257          (d) An applicant may not be denied a license for refusing to provide race information
             31258      required under Subsection (9)(a)(i)(D).
             31259          (10) The division shall require proof of every applicant's name, birthdate, and birthplace
             31260      by at least one of the following means:
             31261          (a) current license certificate;
             31262          (b) birth certificate;
             31263          (c) Selective Service registration; or
             31264          (d) other proof, including church records, family Bible notations, school records, or
             31265      other evidence considered acceptable by the division.
             31266          (11) When an applicant receives a license in another class, all previous license
             31267      certificates shall be surrendered and canceled. However, a disqualified commercial license may
             31268      not be canceled unless it expires before the new license certificate is issued.
             31269          (12) (a) When an application is received from a person previously licensed in another
             31270      state to drive a motor vehicle, the division shall request a copy of the driver's record from the
             31271      other state.
             31272          (b) When received, the driver's record becomes part of the driver's record in this state
             31273      with the same effect as though entered originally on the driver's record in this state.
             31274          (13) An application for reinstatement of a license after the suspension, cancellation,
             31275      disqualification, denial, or revocation of a previous license shall be accompanied by the
             31276      additional fee or fees specified in Section 53-3-105 .
             31277          (14) A person who has an appointment with the division for testing and fails to keep the

             31278      appointment or to cancel at least 48 hours in advance of the appointment shall pay the fee under
             31279      Section 53-3-105 .
             31280          (15) A person who applies for an original license or renewal of a license agrees that the
             31281      person's license is subject to any suspension or revocation authorized under this title or Title 41,
             31282      Motor Vehicles.
             31283          (16) (a) The indication of intent under Subsection (9)(a)(v) shall be authenticated by the
             31284      licensee in accordance with division rule.
             31285          (b) (i) Notwithstanding [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             31286      Records Access and Management Act, the division may, upon request, release to an organ
             31287      procurement organization, as defined in Section 26-28-102 , the names and addresses of all
             31288      persons who under Subsection (9)(a)(v) indicate that they intend to make an anatomical gift.
             31289          (ii) An organ procurement organization may use released information only to:
             31290          (A) obtain additional information for an anatomical gift registry; and
             31291          (B) inform licensees of anatomical gift options, procedures, and benefits.
             31292          (17) Notwithstanding [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             31293      Access and Management Act, the division may release to the Department of Veterans' Affairs
             31294      the names and addresses of all persons who indicate their status as a veteran under Subsection
             31295      (9)(a)(vii).
             31296          (18) The division and its employees are not liable, as a result of false or inaccurate
             31297      information provided under Subsection (9)(a)(v) or (vii), for direct or indirect:
             31298          (a) loss;
             31299          (b) detriment; or
             31300          (c) injury.
             31301          (19) A person who knowingly fails to provide the information required under
             31302      Subsection (9)(a)(vi) is guilty of a class A misdemeanor.
             31303          Section 682. Section 53-3-221 (Superseded 07/01/08) is amended to read:
             31304           53-3-221 (Superseded 07/01/08). Offenses which may result in denial, suspension,
             31305      disqualification, or revocation of license without hearing -- Additional grounds for

             31306      suspension -- Point system for traffic violations -- Notice and hearing -- Reporting of
             31307      traffic violation procedures.
             31308          (1) By following the emergency procedures in [Title 63, Chapter 46b] Title 63G,
             31309      Chapter 4, Administrative Procedures Act, the division may immediately deny, suspend,
             31310      disqualify, or revoke the license of any person without hearing and without receiving a record of
             31311      the person's conviction of crime when the division has been notified or has reason to believe the
             31312      person:
             31313          (a) has committed any offenses for which mandatory suspension or revocation of a
             31314      license is required upon conviction under Section 53-3-220 ;
             31315          (b) has, by reckless or unlawful driving of a motor vehicle, caused or contributed to an
             31316      accident resulting in death or injury to any other person, or serious property damage;
             31317          (c) is incompetent to drive a motor vehicle or is afflicted with mental or physical
             31318      infirmities or disabilities rendering it unsafe for the person to drive a motor vehicle upon the
             31319      highways;
             31320          (d) has committed a serious violation of the motor vehicle laws of this state;
             31321          (e) has knowingly acquired, used, displayed, or transferred an item that purports to be
             31322      an authentic driver license certificate issued by a governmental entity if the item is not an
             31323      authentic driver license certificate or has permitted an unlawful use of the license as prohibited
             31324      under Section 53-3-229 ; or
             31325          (f) has been convicted of serious offenses against traffic laws governing the movement
             31326      of motor vehicles with a frequency that indicates a disrespect for traffic laws and a disregard for
             31327      the safety of other persons on the highways.
             31328          (2) (a) The division may suspend the license of a person under Subsection (1) when the
             31329      person has failed to comply with the terms stated on a traffic citation issued in this state, except
             31330      this Subsection (2) does not apply to highway weight limit violations or violations of law
             31331      governing the transportation of hazardous materials.
             31332          (b) This Subsection (2) applies to parking and standing violations only if a court has
             31333      issued a warrant for the arrest of a person for failure to post bail, appear, or otherwise satisfy

             31334      the terms of the citation.
             31335          (c) (i) This Subsection (2) may not be exercised unless notice of the pending suspension
             31336      of the driving privilege has been sent at least ten days previously to the person at the address
             31337      provided to the division.
             31338          (ii) After clearance by the division, a report authorized by Section 53-3-104 may not
             31339      contain any evidence of a suspension that occurred as a result of failure to comply with the
             31340      terms stated on a traffic citation.
             31341          (3) (a) The division may suspend the license of a person under Subsection (1) when the
             31342      division has been notified by a court that the person has an outstanding unpaid fine, an
             31343      outstanding incomplete restitution requirement, or an outstanding warrant levied by order of a
             31344      court.
             31345          (b) The suspension remains in effect until the division is notified by the court that the
             31346      order has been satisfied.
             31347          (c) After clearance by the division, a report authorized by Section 53-3-104 may not
             31348      contain any evidence of the suspension.
             31349          (4) The division shall make rules establishing a point system as provided for in this
             31350      Subsection (4).
             31351          (a) (i) The division shall assign a number of points to each type of moving traffic
             31352      violation as a measure of its seriousness.
             31353          (ii) The points shall be based upon actual relationships between types of traffic
             31354      violations and motor vehicle traffic accidents.
             31355          (b) Every person convicted of a traffic violation shall have assessed against [his] the
             31356      person's driving record the number of points that the division has assigned to the type of
             31357      violation of which the person has been convicted, except that the number of points assessed
             31358      shall be decreased by 10% if on the abstract of the court record of the conviction the court has
             31359      graded the severity of violation as minimum, and shall be increased by 10% if on the abstract the
             31360      court has graded the severity of violation as maximum.
             31361          (c) (i) A separate procedure for assessing points for speeding offenses shall be

             31362      established by the division based upon the severity of the offense.
             31363          (ii) The severity of a speeding violation shall be graded as:
             31364          (A) "minimum" for exceeding the posted speed limit by up to ten miles per hour;
             31365          (B) "intermediate" for exceeding the posted speed limit by from 11 to 20 miles per
             31366      hour; and
             31367          (C) "maximum" for exceeding the posted speed limit by 21 or more miles per hour.
             31368          (iii) Consideration shall be made for assessment of no points on minimum speeding
             31369      violations, except for speeding violations in school zones.
             31370          (d) (i) Points assessed against a person's driving record shall be deleted for violations
             31371      occurring before a time limit set by the division.
             31372          (ii) The time limit may not exceed three years.
             31373          (iii) The division may also delete points to reward violation-free driving for periods of
             31374      time set by the division.
             31375          (e) (i) By publication in two newspapers having general circulation throughout the
             31376      state, the division shall give notice of the number of points it has assigned to each type of traffic
             31377      violation, the time limit set by the division for the deletion of points, and the point level at which
             31378      the division will generally take action to deny or suspend under this section.
             31379          (ii) The division may not change any of the information provided above regarding
             31380      points without first giving new notice in the same manner.
             31381          (5) (a) (i) Upon denying or suspending the license of a person under this section, the
             31382      division shall immediately notify the licensee in a manner specified by the division and afford
             31383      him an opportunity for a hearing in the county where the licensee resides.
             31384          (ii) The hearing shall be documented, and the division or its authorized agent may
             31385      administer oaths, may issue subpoenas for the attendance of witnesses and the production of
             31386      relevant books and papers, and may require a reexamination of the licensee.
             31387          (iii) One or more members of the division may conduct the hearing, and any decision
             31388      made after a hearing before any number of the members of the division is as valid as if made
             31389      after a hearing before the full membership of the division.

             31390          (iv) After the hearing the division shall either rescind its order of denial or suspension,
             31391      extend the denial or suspension of the license, or revoke the license.
             31392          (b) The denial or suspension of the license remains in effect pending qualifications
             31393      determined by the division regarding a person:
             31394          (i) whose license has been denied or suspended following reexamination;
             31395          (ii) who is incompetent to drive a motor vehicle;
             31396          (iii) who is afflicted with mental or physical infirmities that might make him dangerous
             31397      on the highways; or
             31398          (iv) who may not have the necessary knowledge or skill to drive a motor vehicle safely.
             31399          (6) (a) The division may suspend or revoke the license of any resident of this state upon
             31400      receiving notice of the conviction of that person in another state of an offense committed there
             31401      that, if committed in this state, would be grounds for the suspension or revocation of a license.
             31402          (b) The division may, upon receiving a record of the conviction in this state of a
             31403      nonresident driver of a motor vehicle or motorboat of any offense under the motor vehicle laws
             31404      of this state, forward a certified copy of the record to the motor vehicle administrator in the
             31405      state where the person convicted is a resident.
             31406          (7) (a) The division may suspend or revoke the license of any nonresident to drive a
             31407      motor vehicle in this state for any cause for which the license of a resident driver may be
             31408      suspended or revoked.
             31409          (b) Any nonresident who drives a motor vehicle upon a highway when [his] the
             31410      person's license has been suspended or revoked by the division is guilty of a class C
             31411      misdemeanor.
             31412          (8) (a) The division may not deny or suspend the license of any person for a period of
             31413      more than one year except:
             31414          (i) for failure to comply with the terms of a traffic citation under Subsection (2);
             31415          (ii) upon receipt of a second or subsequent order suspending juvenile driving privileges
             31416      under Section 53-3-219 ;
             31417          (iii) when extending a denial or suspension upon receiving certain records or reports

             31418      under Subsection 53-3-220 (2); and
             31419          (iv) for failure to give and maintain owner's or operator's security under Section
             31420      41-12a-411 .
             31421          (b) The division may suspend the license of a person under Subsection (2) until [he] the
             31422      person shows satisfactory evidence of compliance with the terms of the traffic citation.
             31423          (9) (a) By following the emergency procedures in [Title 63, Chapter 46b] Title 63G,
             31424      Chapter 4, Administrative Procedures Act, the division may immediately suspend the license of
             31425      any person without hearing and without receiving a record of [his] the person's conviction for a
             31426      crime when the division has reason to believe that the person's license was granted by the
             31427      division through error or fraud or that the necessary consent for the license has been withdrawn
             31428      or is terminated.
             31429          (b) The procedure upon suspension is the same as under Subsection (5), except that
             31430      after the hearing the division shall either rescind its order of suspension or cancel the license.
             31431          (10) (a) The division, having good cause to believe that a licensed driver is incompetent
             31432      or otherwise not qualified to be licensed, may upon notice in a manner specified by the division
             31433      of at least five days to the licensee require him to submit to an examination.
             31434          (b) Upon the conclusion of the examination the division may suspend or revoke the
             31435      person's license, permit him to retain the license, or grant a license subject to a restriction
             31436      imposed in accordance with Section 53-3-208 .
             31437          (c) Refusal or neglect of the licensee to submit to an examination is grounds for
             31438      suspension or revocation of [his] the licensee's license.
             31439          (11) (a) Except as provided in Subsection (11)(b), a report authorized by Section
             31440      53-3-104 may not contain any evidence of a conviction for speeding on an interstate system in
             31441      this state if the conviction was for a speed of ten miles per hour or less, above the posted speed
             31442      limit and did not result in an accident, unless authorized in a manner specified by the division by
             31443      the individual whose report is being requested.
             31444          (b) The provisions of Subsection (11)(a) do not apply for:
             31445          (i) a CDL license holder; or

             31446          (ii) a violation that occurred in a commercial motor vehicle.
             31447          (12) (a) By following the emergency procedures in [Title 63, Chapter 46b] Title 63G,
             31448      Chapter 4, Administrative Procedures Act, the division may immediately suspend the license of
             31449      a person if it has reason to believe that the person is the owner of a motor vehicle for which
             31450      security is required under Title 41, Chapter 12a, Vehicle Financial Responsibility of Motor
             31451      Vehicle Owners and Operators Act, and has driven the motor vehicle or permitted it to be
             31452      driven within this state without the security being in effect.
             31453          (b) Section 41-12a-411 regarding the requirement of proof of owner's or operator's
             31454      security applies to persons whose driving privileges are suspended under this Subsection (12).
             31455          (c) If the division exercises the right of immediate suspension granted under this
             31456      Subsection (12), the notice and hearing provisions of Subsection (5) apply.
             31457          (d) A person whose license suspension has been sustained or whose license has been
             31458      revoked by the division under this subsection may file a request for agency action requesting a
             31459      hearing.
             31460          (13) Any suspension or revocation of a person's license under this section also
             31461      disqualifies any license issued to that person under Part 4 of this chapter.
             31462          Section 683. Section 53-3-221 (Effective 07/01/08) is amended to read:
             31463           53-3-221 (Effective 07/01/08). Offenses which may result in denial, suspension,
             31464      disqualification, or revocation of license without hearing -- Additional grounds for
             31465      suspension -- Point system for traffic violations -- Notice and hearing -- Reporting of
             31466      traffic violation procedures.
             31467          (1) By following the emergency procedures in [Title 63, Chapter 46b] Title 63G,
             31468      Chapter 4, Administrative Procedures Act, the division may immediately deny, suspend,
             31469      disqualify, or revoke the license of any person without hearing and without receiving a record of
             31470      the person's conviction of crime when the division has been notified or has reason to believe the
             31471      person:
             31472          (a) has committed any offenses for which mandatory suspension or revocation of a
             31473      license is required upon conviction under Section 53-3-220 ;

             31474          (b) has, by reckless or unlawful driving of a motor vehicle, caused or contributed to an
             31475      accident resulting in death or injury to any other person, or serious property damage;
             31476          (c) is incompetent to drive a motor vehicle or is afflicted with mental or physical
             31477      infirmities or disabilities rendering it unsafe for the person to drive a motor vehicle upon the
             31478      highways;
             31479          (d) has committed a serious violation of the motor vehicle laws of this state;
             31480          (e) has knowingly acquired, used, displayed, or transferred an item that purports to be
             31481      an authentic driver license certificate issued by a governmental entity if the item is not an
             31482      authentic driver license certificate or has permitted an unlawful use of the license as prohibited
             31483      under Section 53-3-229 ; or
             31484          (f) has been convicted of serious offenses against traffic laws governing the movement
             31485      of motor vehicles with a frequency that indicates a disrespect for traffic laws and a disregard for
             31486      the safety of other persons on the highways.
             31487          (2) (a) The division may suspend the license of a person under Subsection (1) when the
             31488      person has failed to comply with the terms stated on a traffic citation issued in this state, except
             31489      this Subsection (2) does not apply to highway weight limit violations or violations of law
             31490      governing the transportation of hazardous materials.
             31491          (b) This Subsection (2) applies to parking and standing violations only if a court has
             31492      issued a warrant for the arrest of a person for failure to post bail, appear, or otherwise satisfy
             31493      the terms of the citation.
             31494          (c) (i) This Subsection (2) may not be exercised unless notice of the pending suspension
             31495      of the driving privilege has been sent at least ten days previously to the person at the address
             31496      provided to the division.
             31497          (ii) After clearance by the division, a report authorized by Section 53-3-104 may not
             31498      contain any evidence of a suspension that occurred as a result of failure to comply with the
             31499      terms stated on a traffic citation.
             31500          (3) (a) The division may suspend the license of a person under Subsection (1) when the
             31501      division has been notified by a court that the person has an outstanding unpaid fine, an

             31502      outstanding incomplete restitution requirement, or an outstanding warrant levied by order of a
             31503      court.
             31504          (b) The suspension remains in effect until the division is notified by the court that the
             31505      order has been satisfied.
             31506          (c) After clearance by the division, a report authorized by Section 53-3-104 may not
             31507      contain any evidence of the suspension.
             31508          (4) The division shall make rules establishing a point system as provided for in this
             31509      Subsection (4).
             31510          (a) (i) The division shall assign a number of points to each type of moving traffic
             31511      violation as a measure of its seriousness.
             31512          (ii) The points shall be based upon actual relationships between types of traffic
             31513      violations and motor vehicle traffic accidents.
             31514          (b) Every person convicted of a traffic violation shall have assessed against [his] the
             31515      person's driving record the number of points that the division has assigned to the type of
             31516      violation of which the person has been convicted, except that the number of points assessed
             31517      shall be decreased by 10% if on the abstract of the court record of the conviction the court has
             31518      graded the severity of violation as minimum, and shall be increased by 10% if on the abstract the
             31519      court has graded the severity of violation as maximum.
             31520          (c) (i) A separate procedure for assessing points for speeding offenses shall be
             31521      established by the division based upon the severity of the offense.
             31522          (ii) The severity of a speeding violation shall be graded as:
             31523          (A) "minimum" for exceeding the posted speed limit by up to ten miles per hour;
             31524          (B) "intermediate" for exceeding the posted speed limit by from 11 to 20 miles per
             31525      hour; and
             31526          (C) "maximum" for exceeding the posted speed limit by 21 or more miles per hour.
             31527          (iii) Consideration shall be made for assessment of no points on minimum speeding
             31528      violations, except for speeding violations in school zones.
             31529          (d) (i) Points assessed against a person's driving record shall be deleted for violations

             31530      occurring before a time limit set by the division.
             31531          (ii) The time limit may not exceed three years.
             31532          (iii) The division may also delete points to reward violation-free driving for periods of
             31533      time set by the division.
             31534          (e) (i) By publication in two newspapers having general circulation throughout the
             31535      state, the division shall give notice of the number of points it has assigned to each type of traffic
             31536      violation, the time limit set by the division for the deletion of points, and the point level at which
             31537      the division will generally take action to deny or suspend under this section.
             31538          (ii) The division may not change any of the information provided above regarding
             31539      points without first giving new notice in the same manner.
             31540          (5) (a) (i) Upon denying or suspending the license of a person under this section, the
             31541      division shall immediately notify the licensee in a manner specified by the division and afford
             31542      him an opportunity for a hearing in the county where the licensee resides.
             31543          (ii) The hearing shall be documented, and the division or its authorized agent may
             31544      administer oaths, may issue subpoenas for the attendance of witnesses and the production of
             31545      relevant books and papers, and may require a reexamination of the licensee.
             31546          (iii) One or more members of the division may conduct the hearing, and any decision
             31547      made after a hearing before any number of the members of the division is as valid as if made
             31548      after a hearing before the full membership of the division.
             31549          (iv) After the hearing the division shall either rescind its order of denial or suspension,
             31550      extend the denial or suspension of the license, or revoke the license.
             31551          (b) The denial or suspension of the license remains in effect pending qualifications
             31552      determined by the division regarding a person:
             31553          (i) whose license has been denied or suspended following reexamination;
             31554          (ii) who is incompetent to drive a motor vehicle;
             31555          (iii) who is afflicted with mental or physical infirmities that might make him dangerous
             31556      on the highways; or
             31557          (iv) who may not have the necessary knowledge or skill to drive a motor vehicle safely.

             31558          (6) (a) Subject to Subsection (6)(d), the division shall suspend a person's license when
             31559      the division receives notice from the Office of Recovery Services that the Office of Recovery
             31560      Services has ordered the suspension of the person's license.
             31561          (b) A suspension under Subsection (6)(a) shall remain in effect until the division
             31562      receives notice from the Office of Recovery Services that the Office of Recovery Services has
             31563      rescinded the order of suspension.
             31564          (c) After an order of suspension is rescinded under Subsection (6)(b), a report
             31565      authorized by Section 53-3-104 may not contain any evidence of the suspension.
             31566          (d) (i) If the division suspends a person's license under this Subsection (6), the division
             31567      shall, upon application, issue a temporary limited driver license to the person if that person
             31568      needs a driver license for employment, education, or child visitation.
             31569          (ii) The temporary limited driver license described in this section:
             31570          (A) shall provide that the person may operate a motor vehicle only for the purpose of
             31571      driving to or from the person's place of employment, education, or child visitation;
             31572          (B) shall prohibit the person from driving a motor vehicle for any purpose other than a
             31573      purpose described in Subsection (6)(d)(ii)(A); and
             31574          (C) shall expire 90 days after the day on which the temporary limited driver license is
             31575      issued.
             31576          (iii) (A) During the period beginning on the day on which a temporary limited driver
             31577      license is issued under this Subsection (6), and ending on the day that the temporary limited
             31578      driver license expires, the suspension described in this Subsection (6) only applies if the person
             31579      who is suspended operates a motor vehicle for a purpose other than employment, education, or
             31580      child visitation.
             31581          (B) Upon expiration of a temporary limited driver license described in this Subsection
             31582      (6)(d):
             31583          (I) a suspension described in Subsection (6)(a) shall be in full effect until the division
             31584      receives notice, under Subsection (6)(b), that the order of suspension is rescinded; and
             31585          (II) a person suspended under Subsection (6)(a) may not drive a motor vehicle for any

             31586      reason.
             31587          (iv) The division is not required to issue a limited driver license to a person under this
             31588      Subsection (6)(d) if there are other legal grounds for the suspension of the person's driver
             31589      license.
             31590          (v) The division shall make rules, in accordance with [Title 63, Chapter 46a] Title 63G,
             31591      Chapter 3, Utah Administrative Rulemaking Act, to implement the provisions of this part.
             31592          (7) (a) The division may suspend or revoke the license of any resident of this state upon
             31593      receiving notice of the conviction of that person in another state of an offense committed there
             31594      that, if committed in this state, would be grounds for the suspension or revocation of a license.
             31595          (b) The division may, upon receiving a record of the conviction in this state of a
             31596      nonresident driver of a motor vehicle or motorboat of any offense under the motor vehicle laws
             31597      of this state, forward a certified copy of the record to the motor vehicle administrator in the
             31598      state where the person convicted is a resident.
             31599          (8) (a) The division may suspend or revoke the license of any nonresident to drive a
             31600      motor vehicle in this state for any cause for which the license of a resident driver may be
             31601      suspended or revoked.
             31602          (b) Any nonresident who drives a motor vehicle upon a highway when [his] the
             31603      person's license has been suspended or revoked by the division is guilty of a class C
             31604      misdemeanor.
             31605          (9) (a) The division may not deny or suspend the license of any person for a period of
             31606      more than one year except:
             31607          (i) for failure to comply with the terms of a traffic citation under Subsection (2);
             31608          (ii) upon receipt of a second or subsequent order suspending juvenile driving privileges
             31609      under Section 53-3-219 ;
             31610          (iii) when extending a denial or suspension upon receiving certain records or reports
             31611      under Subsection 53-3-220 (2);
             31612          (iv) for failure to give and maintain owner's or operator's security under Section
             31613      41-12a-411 ; or

             31614          (v) when the division suspends the license under Subsection (6).
             31615          (b) The division may suspend the license of a person under Subsection (2) until [he] the
             31616      person shows satisfactory evidence of compliance with the terms of the traffic citation.
             31617          (10) (a) By following the emergency procedures in [Title 63, Chapter 46b] Title 63G,
             31618      Chapter 4, Administrative Procedures Act, the division may immediately suspend the license of
             31619      any person without hearing and without receiving a record of [his] the perons's conviction for a
             31620      crime when the division has reason to believe that the person's license was granted by the
             31621      division through error or fraud or that the necessary consent for the license has been withdrawn
             31622      or is terminated.
             31623          (b) The procedure upon suspension is the same as under Subsection (5), except that
             31624      after the hearing the division shall either rescind its order of suspension or cancel the license.
             31625          (11) (a) The division, having good cause to believe that a licensed driver is incompetent
             31626      or otherwise not qualified to be licensed, may upon notice in a manner specified by the division
             31627      of at least five days to the licensee require him to submit to an examination.
             31628          (b) Upon the conclusion of the examination the division may suspend or revoke the
             31629      person's license, permit him to retain the license, or grant a license subject to a restriction
             31630      imposed in accordance with Section 53-3-208 .
             31631          (c) Refusal or neglect of the licensee to submit to an examination is grounds for
             31632      suspension or revocation of [his] the licensee's license.
             31633          (12) (a) Except as provided in Subsection (12)(b), a report authorized by Section
             31634      53-3-104 may not contain any evidence of a conviction for speeding on an interstate system in
             31635      this state if the conviction was for a speed of ten miles per hour or less, above the posted speed
             31636      limit and did not result in an accident, unless authorized in a manner specified by the division by
             31637      the individual whose report is being requested.
             31638          (b) The provisions of Subsection (12)(a) do not apply for:
             31639          (i) a CDL license holder; or
             31640          (ii) a violation that occurred in a commercial motor vehicle.
             31641          (13) (a) By following the emergency procedures in [Title 63, Chapter 46b] Title 63G,

             31642      Chapter 4, Administrative Procedures Act, the division may immediately suspend the license of
             31643      a person if it has reason to believe that the person is the owner of a motor vehicle for which
             31644      security is required under Title 41, Chapter 12a, Financial Responsibility of Motor Vehicle
             31645      Owners and Operators Act, and has driven the motor vehicle or permitted it to be driven within
             31646      this state without the security being in effect.
             31647          (b) Section 41-12a-411 regarding the requirement of proof of owner's or operator's
             31648      security applies to persons whose driving privileges are suspended under this Subsection (13).
             31649          (c) If the division exercises the right of immediate suspension granted under this
             31650      Subsection (13), the notice and hearing provisions of Subsection (5) apply.
             31651          (d) A person whose license suspension has been sustained or whose license has been
             31652      revoked by the division under this Subsection (13) may file a request for agency action
             31653      requesting a hearing.
             31654          (14) Any suspension or revocation of a person's license under this section also
             31655      disqualifies any license issued to that person under Part 4, Uniform Driver License Act, of this
             31656      chapter.
             31657          Section 684. Section 53-3-221.5 (Effective 07/01/08) is amended to read:
             31658           53-3-221.5 (Effective 07/01/08). Disclosure of license information to the Office of
             31659      Recovery Services.
             31660          (1) The division shall disclose to the Office of Recovery Services the name, address,
             31661      and other identifying information of each person:
             31662          (a) to whom a license has been issued; or
             31663          (b) whose driving privileges have been suspended, revoked, or reinstated.
             31664          (2) All information received by the Office of Recovery Services under this section is
             31665      subject to [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             31666      Management Act.
             31667          Section 685. Section 53-3-303.5 is amended to read:
             31668           53-3-303.5. Driver License Medical Advisory Board -- Medical waivers.
             31669          (1) The Driver License Medical Advisory Board shall:

             31670          (a) advise the director of the division; and
             31671          (b) establish and recommend in a manner specified by the board functional ability profile
             31672      guidelines and standards for determining the physical, mental, and emotional capabilities of
             31673      applicants for specific types of licenses, appropriate to various driving abilities.
             31674          (2) (a) The Driver License Medical Advisory Board shall establish fitness standards,
             31675      including provisions for a waiver of specified federal driver's physical qualifications under 49
             31676      CFR 391.41, for intrastate commercial driving privileges.
             31677          (b) The standards under this Subsection (2) may only be implemented if the United
             31678      States Department of Transportation (USDOT) will not impose any sanctions, including funding
             31679      sanctions, against the state.
             31680          (3) In case of uncertainty of interpretation of these guidelines and standards, or in
             31681      special circumstances, applicants may request a review of any division decision by a panel of
             31682      board members. All of the actions of the director and board are subject to judicial review.
             31683          (4) (a) If a person applies for a waiver established under Subsection (2), the applicant
             31684      shall bear any costs directly associated with the cost of administration of the waiver program,
             31685      with respect to the applicant's application, in addition to any fees required under Section
             31686      53-3-105 .
             31687          (b) The division shall establish any additional fee necessary to administer the license
             31688      under this Subsection (4) in accordance with Section [ 63-38-3.2 ] 63J-1-303 .
             31689          Section 686. Section 53-3-304 is amended to read:
             31690           53-3-304. Licensing of impaired persons -- Medical review -- Restricted license --
             31691      Procedures.
             31692          (1) (a) If the division has reason to believe that an applicant for a license is an impaired
             31693      person, the division may require one or both of the following:
             31694          (i) a physical examination of the applicant by a health care professional and the
             31695      submittal by the health care professional of a signed medical report indicating the results of the
             31696      physical examination;
             31697          (ii) a follow-up medical review of the applicant by a health care professional and

             31698      completion of a medical report at intervals established by the division under standards
             31699      recommended by the board.
             31700          (b) The format of the medical report required under Subsection (a) shall be devised by
             31701      the division with the advice of the board and shall elicit the necessary medical information to
             31702      determine whether it would be a public safety hazard to permit the applicant to drive a motor
             31703      vehicle on the highways.
             31704          (2) (a) The division may grant a restricted license to an impaired person who is
             31705      otherwise qualified to obtain a license.
             31706          (b) The license continues in effect until its expiration date so long as the licensee
             31707      complies with the requirements set forth by the division.
             31708          (c) The license renewal is subject to the conditions of this section.
             31709          (d) Any physical, mental, or emotional impairment of the applicant that in the opinion of
             31710      the division does not affect the applicant's ability to exercise reasonable and ordinary control at
             31711      all times in driving a motor vehicle upon the highway, does not prevent granting a license to the
             31712      applicant.
             31713          (3) (a) If an examination is required under this section, the division is not bound by the
             31714      recommendation of the examining health care professional but shall give fair consideration to
             31715      the recommendation in acting upon the application. The criterion is whether upon all the
             31716      evidence it is safe to permit the applicant to drive a motor vehicle.
             31717          (b) In deciding whether to grant or deny a license, the division may be guided by the
             31718      opinion of experts in the fields of diagnosing and treating mental, physical, or emotional
             31719      disabilities and may take into consideration any other factors that bear on the issue of public
             31720      safety.
             31721          (4) Information provided under this section relating to physical, mental, or emotional
             31722      impairment is classified under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             31723      Access and Management Act.
             31724          Section 687. Section 53-3-505 is amended to read:
             31725           53-3-505. School license -- Contents of rules.

             31726          (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             31727      Administrative Rulemaking Act, the commissioner shall make rules regarding the requirements
             31728      for:
             31729          (a) a school license, including requirements concerning:
             31730          (i) locations;
             31731          (ii) equipment;
             31732          (iii) courses of instruction;
             31733          (iv) instructors;
             31734          (v) previous records of the school and instructors;
             31735          (vi) financial statements;
             31736          (vii) schedule of fees and charges;
             31737          (viii) character and reputation of the operators and instructors;
             31738          (ix) insurance as the commissioner determines necessary to protect the interests of the
             31739      public; and
             31740          (x) other provisions the commissioner may prescribe for the protection of the public;
             31741      and
             31742          (b) an instructor's license, including requirements concerning:
             31743          (i) moral character;
             31744          (ii) physical condition;
             31745          (iii) knowledge of the courses of instruction;
             31746          (iv) motor vehicle laws and safety principles and practices;
             31747          (v) previous personnel and employment records; and
             31748          (vi) other provisions the commissioner may prescribe for the protection of the public;
             31749          (c) applications for licenses; and
             31750          (d) minimum standards for:
             31751          (i) driving simulation devices that are fully interactive under Subsection
             31752      53-3-505.5 (2)(b); and
             31753          (ii) driving simulation devices that are not fully interactive under Subsection

             31754      53-3-505.5 (2)(c).
             31755          (2) Rules made by the commissioner shall require that a commercial driver training
             31756      school offering motorcycle rider education meet or exceed the standards established by the
             31757      Motorcycle Safety Foundation.
             31758          (3) Rules made by the commissioner shall require that an instructor of motorcycle rider
             31759      education meet or exceed the standards for certification established by the Motorcycle Safety
             31760      Foundation.
             31761          (4) The commissioner may call upon the state superintendent of public instruction for
             31762      assistance in formulating appropriate rules.
             31763          Section 688. Section 53-3-506 is amended to read:
             31764           53-3-506. License expiration and renewal -- Fee required -- Disposition of
             31765      revenue.
             31766          (1) (a) All commercial driver training school licenses, commercial testing only school
             31767      licenses, school operator licenses, and instructor licenses:
             31768          (i) expire one year from the date of issuance; and
             31769          (ii) may be renewed upon application to the commissioner as prescribed by rule.
             31770          (b) Each application for an original or renewal school license, school operator license,
             31771      or instructor license shall be accompanied by a fee determined by the department under Section
             31772      [ 63-38-3.2 ] 63J-1-303 .
             31773          (c) A license fee may not be refunded if the license is rejected, suspended, or revoked.
             31774          (2) The license fees collected under this part shall be:
             31775          (a) placed in a fund designated as the "Commercial Driver Training Law Fund"; and
             31776          (b) used under the supervision and direction of the director of the Division of Finance
             31777      for the administration of this part.
             31778          Section 689. Section 53-3-510 is amended to read:
             31779           53-3-510. Instructors certified to administer skills tests.
             31780          (1) (a) The division shall establish procedures and standards to certify licensed
             31781      instructors of driver training courses under this part to administer skills tests.

             31782          (b) An instructor may not administer a skills test under this section to a student that
             31783      took the course from the same school or the same instructor.
             31784          (2) The division is the certifying authority.
             31785          (3) (a) Subject to Subsection (1), an instructor certified under this section may give
             31786      skills tests designed for driver training courses authorized under this part.
             31787          (b) The division shall establish minimal standards for the test that is at least as difficult
             31788      as those required to receive a class D operator's license under Title 53, Chapter 3, Uniform
             31789      Driver License Act.
             31790          (c) A student who fails the skills test given by an instructor certified under this section
             31791      may apply for a class D operator's license under Title 53, Chapter 3, Part 2, Driver Licensing
             31792      Act, and complete the skills test at a division office.
             31793          (4) A student who successfully passes the test given by a certified driver training
             31794      instructor under this section satisfies the driving parts of the test required for a class D
             31795      operator's license.
             31796          (5) The division shall establish procedures to enable licensed commercial driver training
             31797      schools to administer or process the skills test authorized under this section for a class D
             31798      operator's license.
             31799          (6) The division shall establish the standards and procedures required under this section
             31800      by rules made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             31801      Administrative Rulemaking Act.
             31802          Section 690. Section 53-3-805 is amended to read:
             31803           53-3-805. Identification card -- Contents -- Specifications.
             31804          (1) (a) The division shall issue an identification card that bears:
             31805          (i) the distinguishing number assigned to the person by the division;
             31806          (ii) the name, birth date, and Utah residence address of the person;
             31807          (iii) a brief description of the person for the purpose of identification;
             31808          (iv) a photograph of the person;
             31809          (v) a photograph or other facsimile of the person's signature; and

             31810          (vi) an indication whether the person intends to make an anatomical gift under Title 26,
             31811      Chapter 28, Revised Uniform Anatomical Gift Act.
             31812          (b) An identification card issued by the division may not bear the person's Social
             31813      Security number or place of birth.
             31814          (2) (a) The card shall be of an impervious material, resistant to wear, damage, and
             31815      alteration.
             31816          (b) Except as provided under Section 53-3-806 , the size, form, and color of the card is
             31817      prescribed by the commissioner.
             31818          (3) At the applicant's request, the card may include a statement that the applicant has a
             31819      special medical problem or allergies to certain drugs, for the purpose of medical treatment.
             31820          (4) (a) The indication of intent under Subsection 53-3-804 (2)(j) shall be authenticated
             31821      by the applicant in accordance with division rule.
             31822          (b) (i) Notwithstanding [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             31823      Records Access and Management Act, the division may, upon request, release to an organ
             31824      procurement organization, as defined in Section 26-28-102 , the names and addresses of all
             31825      persons who under Subsection 53-3-804 (2)(j) indicate that they intend to make an anatomical
             31826      gift.
             31827          (ii) An organ procurement organization may use released information only to:
             31828          (A) obtain additional information for an anatomical gift registry; and
             31829          (B) inform applicants of anatomical gift options, procedures, and benefits.
             31830          (5) Notwithstanding [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             31831      Access and Management Act, the division may release to the Department of Veterans' Affairs
             31832      the names and addresses of all persons who indicate their status as a veteran under Subsection
             31833      53-3-804 (2)(l).
             31834          (6) The division and its employees are not liable, as a result of false or inaccurate
             31835      information provided under Subsection 53-3-804 (2)(j) or (l), for direct or indirect:
             31836          (a) loss;
             31837          (b) detriment; or

             31838          (c) injury.
             31839          Section 691. Section 53-3-903 is amended to read:
             31840           53-3-903. Motorcycle Rider Education Program.
             31841          (1) (a) The division shall develop standards for and administer the Motorcycle Rider
             31842      Education Program.
             31843          (b) The division shall make rules in accordance with [Title 63, Chapter 46a] Title 63G,
             31844      Chapter 3, Utah Administrative Rulemaking Act, to implement this chapter.
             31845          (2) The program shall include:
             31846          (a) a novice rider training course;
             31847          (b) a rider training course for experienced riders; and
             31848          (c) an instructor training course.
             31849          (3) The division may expand the program to include:
             31850          (a) enhancing public awareness of motorcycle riders;
             31851          (b) increasing the awareness of motorcycle riders of the effects of alcohol and drugs;
             31852          (c) motorcycle rider skills improvement;
             31853          (d) program and other motorcycle safety promotion; and
             31854          (e) improvement of motorcycle licensing efforts.
             31855          (4) (a) Rider training courses shall be open to all residents of the state who either hold a
             31856      valid driver's license for any classification or are eligible for a temporary motorcycle learner's
             31857      permit.
             31858          (b) An adequate number of novice rider training courses shall be provided to meet the
             31859      reasonably anticipated needs of all persons in the state who are eligible and who desire to
             31860      participate in the program.
             31861          (c) Program delivery may be phased in over a reasonable period of time.
             31862          (5) (a) The division may enter into contracts with either public or private institutions to
             31863      provide a rider training course approved by the division.
             31864          (b) The institution shall issue certificates of completion in the manner and form
             31865      prescribed by the director to persons who satisfactorily complete the requirements of the

             31866      course.
             31867          (c) An institution conducting a rider training course may charge a reasonable tuition fee
             31868      to cover the cost of offering the course.
             31869          (d) (i) The division may use program funds to defray its own expenses in administering
             31870      the program.
             31871          (ii) The division may reimburse entities that offer approved courses for actual expenses
             31872      incurred in offering the courses, up to a limit established by the division based upon available
             31873      program funds.
             31874          (iii) Any reimbursement paid to an entity must be entirely reflected by the entity in
             31875      reduced course enrollment fees for students.
             31876          (6) (a) Standards for the motorcycle rider training courses, including standards for
             31877      course curriculum, materials, and student evaluation, and standards for the training and approval
             31878      of instructors shall meet or exceed established national standards for motorcycle rider training
             31879      courses prescribed by the Motorcycle Safety Foundation.
             31880          (b) Motorcycle rider training courses shall be taught only by instructors approved under
             31881      Section 53-3-904 .
             31882          (c) Motorcycle rider training courses for novices shall include at least eight hours of
             31883      practice riding.
             31884          (7) The commissioner shall appoint a full-time program coordinator to oversee and
             31885      direct the program.
             31886          Section 692. Section 53-5-704 is amended to read:
             31887           53-5-704. Division duties -- Permit to carry concealed firearm -- Certification for
             31888      concealed firearms instructor -- Requirements for issuance -- Violation -- Denial,
             31889      suspension, or revocation -- Appeal procedure.
             31890          (1) (a) The division or its designated agent shall issue a permit to carry a concealed
             31891      firearm for lawful self defense to an applicant who is 21 years of age or older within 60 days
             31892      after receiving an application, unless during the 60-day period the division finds proof that the
             31893      applicant is not of good character.

             31894          (b) The permit is valid throughout the state for five years, without restriction, except as
             31895      otherwise provided by Section 53-5-710 .
             31896          (2) (a) An applicant satisfactorily demonstrates good character if the applicant:
             31897          (i) has not been convicted of a felony;
             31898          (ii) has not been convicted of a crime of violence;
             31899          (iii) has not been convicted of an offense involving the use of alcohol;
             31900          (iv) has not been convicted of an offense involving the unlawful use of narcotics or
             31901      other controlled substances;
             31902          (v) has not been convicted of an offense involving moral turpitude;
             31903          (vi) has not been convicted of an offense involving domestic violence;
             31904          (vii) has not been adjudicated by a state or federal court as mentally incompetent, unless
             31905      the adjudication has been withdrawn or reversed; and
             31906          (viii) is qualified to purchase and possess a firearm pursuant to Section 76-10-503 and
             31907      federal law.
             31908          (b) In assessing good character under Subsection (2)(a), the licensing authority shall
             31909      consider mitigating circumstances.
             31910          (3) (a) The division may deny, suspend, or revoke a concealed firearm permit if it has
             31911      reasonable cause to believe that the applicant has been or is a danger to self or others as
             31912      demonstrated by evidence, including:
             31913          (i) past pattern of behavior involving unlawful violence or threats of unlawful violence;
             31914          (ii) past participation in incidents involving unlawful violence or threats of unlawful
             31915      violence; or
             31916          (iii) conviction of an offense in violation of Title 76, Chapter 10, Part 5, Weapons.
             31917          (b) The division may not deny, suspend, or revoke a concealed firearm permit solely for
             31918      a single conviction for an infraction violation of Title 76, Chapter 10, Part 5, Weapons.
             31919          (c) In determining whether the applicant has been or is a danger to self or others, the
             31920      division may inspect:
             31921          (i) expunged records of arrests and convictions of adults as provided in Section

             31922      77-18-15 ; and
             31923          (ii) juvenile court records as provided in Section 78-3a-206 .
             31924          (d) (i) If a person granted a permit under this part has been charged with a crime of
             31925      violence in any state, the division shall suspend the permit.
             31926          (ii) Upon notice of the acquittal of the person charged, or notice of the charges having
             31927      been dropped, the division shall immediately reinstate the suspended permit.
             31928          (4) A former peace officer who departs full-time employment as a peace officer, in an
             31929      honorable manner, shall be issued a concealed firearm permit within five years of that departure
             31930      if the officer meets the requirements of this section.
             31931          (5) Except as provided in Subsection (6), the licensing authority shall also require the
             31932      applicant to provide:
             31933          (a) the address of the applicant's permanent residence;
             31934          (b) one recent dated photograph;
             31935          (c) one set of fingerprints; and
             31936          (d) evidence of general familiarity with the types of firearms to be concealed as defined
             31937      in Subsection (7).
             31938          (6) An applicant who is a law enforcement officer under Section 53-13-103 may
             31939      provide a letter of good standing from the officer's commanding officer in place of the evidence
             31940      required by Subsection (5)(d).
             31941          (7) (a) General familiarity with the types of firearms to be concealed includes training
             31942      in:
             31943          (i) the safe loading, unloading, storage, and carrying of the types of firearms to be
             31944      concealed; and
             31945          (ii) current laws defining lawful use of a firearm by a private citizen, including lawful
             31946      self-defense, use of force by a private citizen, including use of deadly force, transportation, and
             31947      concealment.
             31948          (b) Evidence of general familiarity with the types of firearms to be concealed may be
             31949      satisfied by one of the following:

             31950          (i) completion of a course of instruction conducted by a national, state, or local firearms
             31951      training organization approved by the division;
             31952          (ii) certification of general familiarity by a person who has been certified by the division,
             31953      which may include a law enforcement officer, military or civilian firearms instructor, or hunter
             31954      safety instructor; or
             31955          (iii) equivalent experience with a firearm through participation in an organized shooting
             31956      competition, law enforcement, or military service.
             31957          (c) Instruction taken by a student under Subsection (7)(b) shall be in person and not
             31958      through electronic means.
             31959          (8) (a) An applicant for certification as a Utah concealed firearms instructor shall:
             31960          (i) be at least 21 years of age;
             31961          (ii) be currently eligible to possess a firearm under Section 76-10-503 and federal law;
             31962          (iii) have a current National Rifle Association certification or its equivalent as
             31963      determined by the division; and
             31964          (iv) for certificates issued beginning July 1, 2006, have taken a course of instruction and
             31965      passed a certification test as described in Subsection (8)(c).
             31966          (b) An instructor's certification is valid for three years from the date of issuance, unless
             31967      revoked by the division.
             31968          (c) (i) In order to obtain initial certification or renew a certification, an instructor shall
             31969      attend an instructional course and pass a test under the direction of the division.
             31970          (ii) (A) Beginning May 1, 2006, the division shall provide or contract to provide the
             31971      course referred to in Subsection (8)(c)(i) twice every year.
             31972          (B) The course shall include instruction on current Utah law related to firearms,
             31973      including concealed carry statutes and rules, and the use of deadly force by private citizens.
             31974          (d) (i) Each applicant for certification under this Subsection (8) shall pay a fee of
             31975      $50.00 at the time of application for initial certification.
             31976          (ii) The renewal fee for the certificate is $25.
             31977          (iii) The fees paid under Subsections (8)(d)(i) and (ii) may be used by the division as a

             31978      dedicated credit to cover the cost incurred in maintaining and improving the instruction program
             31979      required for concealed firearm instructors under this Subsection (8).
             31980          (9) A certified concealed firearms instructor shall provide each of the instructor's
             31981      students with the required course of instruction outline approved by the division.
             31982          (10) (a) (i) A concealed firearms instructor is required to provide a signed certificate to
             31983      a person successfully completing the offered course of instruction.
             31984          (ii) The instructor shall sign the certificate with the exact name indicated on the
             31985      instructor's certification issued by the division under Subsection (8).
             31986          (iii) (A) The certificate shall also have affixed to it the instructor's official seal, which is
             31987      the exclusive property of the instructor and may not be used by any other person.
             31988          (B) The instructor shall destroy the seal upon revocation or expiration of the
             31989      instructor's certification under Subsection (8).
             31990          (C) The division shall determine the design and content of the seal to include at least the
             31991      following:
             31992          (I) the instructor's name as it appears on the instructor's certification;
             31993          (II) the words "Utah Certified Concealed Firearms Instructor," "state of Utah," and "my
             31994      certification expires on (the instructor's certification expiration date)"; and
             31995          (III) the instructor's business or residence address.
             31996          (D) The seal shall be affixed to each student certificate issued by the instructor in a
             31997      manner that does not obscure or render illegible any information or signatures contained in the
             31998      document.
             31999          (b) The applicant shall provide the certificate to the division in compliance with
             32000      Subsection (5)(d).
             32001          (11) The division may deny, suspend, or revoke the certification of a concealed firearms
             32002      instructor if it has reason to believe the applicant has:
             32003          (a) become ineligible to possess a firearm under Section 76-10-503 or federal law; or
             32004          (b) knowingly and willfully provided false information to the division.
             32005          (12) A concealed firearms instructor has the same appeal rights as set forth in

             32006      Subsection (15).
             32007          (13) In providing instruction and issuing a permit under this part, the concealed firearms
             32008      instructor and the licensing authority are not vicariously liable for damages caused by the permit
             32009      holder.
             32010          (14) An individual who knowingly and willfully provides false information on an
             32011      application filed under this part is guilty of a class B misdemeanor, and the application may be
             32012      denied, or the permit may be suspended or revoked.
             32013          (15) (a) In the event of a denial, suspension, or revocation of a permit, the applicant
             32014      may file a petition for review with the board within 60 days from the date the denial, suspension,
             32015      or revocation is received by the applicant by certified mail, return receipt requested.
             32016          (b) The denial of a permit shall be in writing and shall include the general reasons for
             32017      the action.
             32018          (c) If an applicant appeals the denial to the review board, the applicant may have access
             32019      to the evidence upon which the denial is based in accordance with [Title 63, Chapter 2] Title
             32020      63G, Chapter 2, Government Records Access and Management Act.
             32021          (d) On appeal to the board, the agency has the burden of proof by a preponderance of
             32022      the evidence.
             32023          (e) (i) Upon a ruling by the board on the appeal of a denial, the division shall issue a
             32024      final order within 30 days stating the board's decision.
             32025          (ii) The final order shall be in the form prescribed by Subsection [ 63-46b-5 ]
             32026      63G-4-203 (1)(i).
             32027          (iii) The final order is final agency action for purposes of judicial review under Section
             32028      [ 63-46b-15 ] 63G-4-402 .
             32029          (16) The commissioner may make rules in accordance with [Title 63, Chapter 46a] Title
             32030      63G, Chapter 3, Utah Administrative Rulemaking Act, necessary to administer this chapter.
             32031          Section 693. Section 53-5-705 is amended to read:
             32032           53-5-705. Temporary permit to carry concealed firearm -- Denial, suspension, or
             32033      revocation -- Appeal.

             32034          (1) The division or its designated agent may issue a temporary permit to carry a
             32035      concealed firearm to a person who:
             32036          (a) has applied for a permit under Section 53-5-704 ;
             32037          (b) has applied for a temporary permit under this section; and
             32038          (c) meets the criteria required in Subsections (2) and (3).
             32039          (2) To receive a temporary permit under this section, the applicant shall demonstrate in
             32040      writing to the satisfaction of the licensing authority extenuating circumstances that would justify
             32041      issuing a temporary permit.
             32042          (3) A temporary permit may not be issued under this section until preliminary record
             32043      checks regarding the applicant have been made with the National Crime Information Center and
             32044      the division to determine any criminal history.
             32045          (4) A temporary permit is valid only for a maximum of 90 days or any lesser period
             32046      specified by the division, or until a permit under Section 53-5-704 is issued to the holder of the
             32047      temporary permit, whichever period is shorter.
             32048          (5) The licensing authority may deny, suspend, or revoke a temporary permit prior to
             32049      expiration if the commissioner determines:
             32050          (a) the circumstances justifying the temporary permit no longer exist; or
             32051          (b) the holder of the temporary permit does not meet the requirements for a permit
             32052      under Section 53-5-704 .
             32053          (6) (a) The denial, suspension, or revocation of a temporary permit shall be in writing
             32054      and shall include the reasons for the action.
             32055          (b) The licensing authority's decision to deny, suspend, or revoke a temporary permit
             32056      may not be appealed to the board.
             32057          (c) Denial, suspension, or revocation under this subsection is final action for purposes
             32058      of judicial review under Section [ 63-46b-15 ] 63G-4-402 .
             32059          Section 694. Section 53-5-708 is amended to read:
             32060           53-5-708. Permit -- Names private.
             32061          (1) When any permit is issued, a record shall be maintained in the office of the licensing

             32062      authority. Notwithstanding the requirements of Subsection [ 63-2-301 (1)] 63G-2-301 (2)(b), the
             32063      names, addresses, telephone numbers, dates of birth, and Social Security numbers of persons
             32064      receiving permits are protected records under Subsection [ 63-2-304 ] 63G-2-305 (10).
             32065          (2) Copies of each permit issued shall be filed immediately by the licensing authority
             32066      with the division.
             32067          Section 695. Section 53-5a-101 , which is renumbered from Section 63-98-101 is
             32068      renumbered and amended to read:
             32069     
CHAPTER 5a. FIREARM LAWS

             32070           [63-98-101].     53-5a-101. Title.
             32071          This chapter is known as "Firearm Laws."
             32072          Section 696. Section 53-5a-102 , which is renumbered from Section 63-98-102 is
             32073      renumbered and amended to read:
             32074           [63-98-102].     53-5a-102. Uniform firearm laws.
             32075          (1) The individual right to keep and bear arms being a constitutionally protected right
             32076      under Article I, Section 6 of the Utah Constitution, the Legislature finds the need to provide
             32077      uniform civil and criminal firearm laws throughout the state.
             32078          (2) Except as specifically provided by state law, a local authority or state entity may
             32079      not:
             32080          (a) prohibit an individual from owning, possessing, purchasing, selling, transferring,
             32081      transporting, or keeping a firearm at the individual's place of residence, property, business, or in
             32082      any vehicle lawfully in the individual's possession or lawfully under the individual's control; or
             32083          (b) require an individual to have a permit or license to purchase, own, possess,
             32084      transport, or keep a firearm.
             32085          (3) In conjunction with Title 76, Chapter 10, Part 5, Weapons, this section is uniformly
             32086      applicable throughout this state and in all its political subdivisions and municipalities.
             32087          (4) All authority to regulate firearms is reserved to the state except where the
             32088      Legislature specifically delegates responsibility to local authorities or state entities.
             32089          (5) Unless specifically authorized by the Legislature by statute, a local authority or state

             32090      entity may not enact, establish, or enforce any ordinance, regulation, rule, or policy pertaining to
             32091      firearms that in any way inhibits or restricts the possession or use of firearms on either public or
             32092      private property.
             32093          (6) As used in this section:
             32094          (a) "firearm" has the same meaning as defined in Subsection 76-10-501 (9); and
             32095          (b) "local authority or state entity" includes public school districts, public schools, and
             32096      state institutions of higher education.
             32097          (7) Nothing in this section restricts or expands private property rights.
             32098          Section 697. Section 53-6-105 is amended to read:
             32099           53-6-105. Duties of director -- Powers -- Rulemaking.
             32100          (1) The director, with the advice of the council, shall:
             32101          (a) prescribe standards for the certification of a peace officer training academy, certify
             32102      an academy that meets the prescribed standards, and prescribe standards for revocation of
             32103      certification for cause;
             32104          (b) prescribe minimum qualifications for certification of peace officers appointed or
             32105      elected to enforce the laws of this state and its subdivisions and prescribe standards for
             32106      revocation of certification for cause;
             32107          (c) establish minimum requirements for the certification of training instructors and
             32108      establish standards for revocation of certification;
             32109          (d) provide for the issuance of appropriate certificates to those peace officers
             32110      completing the basic training programs offered by a certified academy or those persons who
             32111      pass a certification examination as provided for in this chapter;
             32112          (e) consult and cooperate with certified academy administrators and instructors for the
             32113      continued development and improvement of the basic training programs provided by the
             32114      certified academy and for the further development and implementation of advanced in-service
             32115      training programs;
             32116          (f) consult and cooperate with state institutions of higher education to develop
             32117      specialized courses of study for peace officers in the areas of criminal justice, police

             32118      administration, criminology, social sciences, and other related disciplines;
             32119          (g) consult and cooperate with other departments, agencies, and local governments
             32120      concerned with peace officer training;
             32121          (h) perform any other acts necessary to develop peace officer training programs within
             32122      the state;
             32123          (i) report to the council at regular meetings of the council and when the council
             32124      requires;
             32125          (j) recommend peace officer standards and training requirements to the commissioner,
             32126      governor, and the Legislature; and
             32127          (k) make rules as provided in this chapter.
             32128          (2) With the permission of the commissioner, the director may execute contracts on
             32129      behalf of the division with criminal justice agencies to provide training for employees of those
             32130      agencies if:
             32131          (a) the employees or the employing agency pay a registration fee equivalent to the cost
             32132      of the training; and
             32133          (b) the contract does not reduce the effectiveness of the division in its primary
             32134      responsibility of providing training for peace officers of the state.
             32135          (3) The director may:
             32136          (a) revoke certification of a certified academy for cause; and
             32137          (b) make training aids and materials available to local law enforcement agencies.
             32138          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             32139      Administrative Rulemaking Act, and consistent with Title 53, Chapter 6, Part 3, Dispatcher
             32140      Training and Certification Act, the director shall, with the advice of the council, make rules:
             32141          (a) establishing minimum requirements for the certification of dispatcher training
             32142      instructors in a certified academy or interagency program and standards for revocation of this
             32143      certification;
             32144          (b) establishing approved curriculum and a basic schedule for the basic dispatcher
             32145      training course and the content of the dispatcher certification examination;

             32146          (c) providing for the issuance of appropriate certificates to a person who completes the
             32147      basic dispatcher course or who passes a dispatcher certification examination as provided for in
             32148      this chapter;
             32149          (d) establishing approved courses for certified dispatchers' annual training; and
             32150          (e) establishing a reinstatement procedure for a certified dispatcher who has not
             32151      obtained the required annual training hours.
             32152          Section 698. Section 53-6-213 is amended to read:
             32153           53-6-213. Appropriations from reparation fund.
             32154          (1) The Legislature shall appropriate from the fund established in [Title 63, Chapter
             32155      25a, Part 4, the] Title 63M, Chapter 7, Part 5, Crime Victims' Reparations Act, to the division,
             32156      funds for training of law enforcement officers in the state.
             32157          (2) The department shall make an annual report to the Legislature, which includes the
             32158      amount received during the previous fiscal year.
             32159          Section 699. Section 53-7-204 is amended to read:
             32160           53-7-204. Duties of Utah Fire Prevention Board -- Local administrative duties.
             32161          (1) The board shall:
             32162          (a) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             32163      Administrative Rulemaking Act:
             32164          (i) adopting a nationally recognized fire code and the specific edition of that fire code as
             32165      the state fire code to be used as the standard;
             32166          (ii) establishing minimum standards for the prevention of fire and for the protection of
             32167      life and property against fire and panic in any:
             32168          (A) publicly owned building, including all public and private schools, colleges, and
             32169      university buildings;
             32170          (B) building or structure used or intended for use as an asylum, a mental hospital, a
             32171      hospital, a sanitarium, a home for the aged, an assisted living facility, a children's home or day
             32172      care center, or any similar institutional type occupancy of any capacity; and
             32173          (C) place of assemblage where 50 or more persons may gather together in a building,

             32174      structure, tent, or room for the purpose of amusement, entertainment, instruction, or education;
             32175          (iii) establishing safety and other requirements for placement and discharge of display
             32176      fireworks based upon:
             32177          (A) the specific edition of the nationally recognized fire code selected by the board
             32178      under Subsection (1)(a)(i); and
             32179          (B) relevant publications of the National Fire Protection Association;
             32180          (iv) establishing minimum safety standards for retail storage, handling, and sale of class
             32181      C common state approved explosives;
             32182          (v) defining methods to establish proof of competence to place and discharge display
             32183      fireworks;
             32184          (vi) for deputizing qualified persons to act as deputy fire marshals, and to secure special
             32185      services in emergencies;
             32186          (vii) implementing Sections 53-7-106 and 53-7-205 ;
             32187          (viii) setting guidelines for use of funding;
             32188          (ix) establishing criteria for training and safety equipment grants for fire departments
             32189      enrolled in firefighter certification; and
             32190          (x) establishing minimum ongoing training standards for hazardous materials emergency
             32191      response agencies;
             32192          (b) recommend to the commissioner a state fire marshal;
             32193          (c) develop policies under which the state fire marshal and [his] the state fire marshal's
             32194      authorized representatives will perform;
             32195          (d) provide for the employment of field assistants and other salaried personnel as
             32196      required;
             32197          (e) prescribe the duties of the state fire marshal and [his] the state fire marshal's
             32198      authorized representatives;
             32199          (f) establish a statewide fire prevention, fire education, and fire service training program
             32200      in cooperation with the Board of Regents;
             32201          (g) establish a statewide fire statistics program for the purpose of gathering fire data

             32202      from all political subdivisions of the state;
             32203          (h) establish a fire academy in accordance with Section 53-7-204.2 ;
             32204          (i) coordinate the efforts of all people engaged in fire suppression in the state;
             32205          (j) work aggressively with the local political subdivisions to reduce fire losses;
             32206          (k) regulate the sale and servicing of portable fire extinguishers and automatic fire
             32207      suppression systems in the interest of safeguarding lives and property;
             32208          (l) establish a certification program for persons who inspect and test automatic fire
             32209      sprinkler systems;
             32210          (m) establish a certification program for persons who inspect and test fire alarm
             32211      systems; and
             32212          (n) establish a certification for persons who provide response services regarding
             32213      hazardous materials emergencies.
             32214          (2) The board may incorporate in its rules by reference, in whole or in part, nationally
             32215      recognized and readily available standards and codes pertaining to the protection of life and
             32216      property from fire, explosion, or panic.
             32217          (3) (a) The board may only make amendments to the state fire code adopted under
             32218      Subsection (1)(a)(i) in accordance with Section 53-7-205 .
             32219          (b) The amendments may be applicable to the entire state or within a city, county, or
             32220      fire protection district.
             32221          (4) The following functions shall be administered locally by a city, county, or fire
             32222      protection district:
             32223          (a) issuing permits, including open burning permits pursuant to Sections 11-7-1 and
             32224      19-2-114 ;
             32225          (b) creating a local board of appeals in accordance with the state fire code; and
             32226          (c) establishing, modifying, or deleting fire flow and water supply requirements.
             32227          Section 700. Section 53-7-204.2 is amended to read:
             32228           53-7-204.2. Fire Academy -- Establishment -- Fire Academy Support Account --
             32229      Funding.

             32230          (1) In this section:
             32231          (a) "Account" means the Fire Academy Support Account created in Subsection (4).
             32232          (b) "Property insurance premium" means premium paid as consideration for property
             32233      insurance as defined in Section 31A-1-301 .
             32234          (2) The board shall:
             32235          (a) establish a fire academy that:
             32236          (i) provides instruction and training for paid, volunteer, institutional, and industrial
             32237      firefighters;
             32238          (ii) develops new methods of firefighting and fire prevention;
             32239          (iii) provides training for fire and arson detection and investigation;
             32240          (iv) provides public education programs to promote fire safety;
             32241          (v) provides for certification of firefighters, pump operators, instructors, and officers;
             32242      and
             32243          (vi) provides facilities for teaching fire-fighting skills;
             32244          (b) establish a cost recovery fee in accordance with Section [ 63-38-3.2 ] 63J-1-303 for
             32245      training commercially employed firefighters; and
             32246          (c) request funding for the academy.
             32247          (3) The board may:
             32248          (a) accept gifts, donations, and grants of property and services on behalf of the fire
             32249      academy; and
             32250          (b) enter into contractual agreements necessary to facilitate establishment of the school.
             32251          (4) (a) To provide a funding source for the academy and for the general operation of
             32252      the State Fire Marshal Division, there is created in the General Fund a restricted account known
             32253      as the Fire Academy Support Account.
             32254          (b) The following revenue shall be deposited in the account to implement this section:
             32255          (i) the percentage specified in Subsection (5) of the annual tax for each year that is
             32256      levied, assessed, and collected under Title 59, Chapter 9, Taxation of Admitted Insurers, upon
             32257      property insurance premiums and as applied to fire and allied lines insurance collected by

             32258      insurance companies within the state;
             32259          (ii) the percentage specified in Subsection (6) of all money assessed and collected upon
             32260      life insurance premiums within the state;
             32261          (iii) the cost recovery fees established by the board;
             32262          (iv) gifts, donations, and grants of property on behalf of the fire academy; and
             32263          (v) appropriations made by the Legislature.
             32264          (5) The percentage of the tax specified in Subsection (4)(b)(i) to be deposited in the
             32265      account each fiscal year is 25%.
             32266          (6) The percentage of the money specified in Subsection (4)(b)(ii) to be deposited in the
             32267      account each fiscal year is 5%.
             32268          Section 701. Section 53-7-216 is amended to read:
             32269           53-7-216. Portable fire extinguishers -- Certification required to service.
             32270          (1) Each firm engaged in the business of servicing portable fire extinguishers or
             32271      automatic fire suppression systems that automatically detect fire and discharge an approved fire
             32272      extinguishing agent onto or in the area of the fire shall be certified by the state fire marshal.
             32273          (2) An application for certification shall be in writing, on forms prescribed by the board,
             32274      and require evidence of competency.
             32275          (3) The board may establish a fee under Section [ 63-38-3.2 ] 63J-1-303 to be paid upon
             32276      application for certification.
             32277          (4) This section does not apply to standpipe systems, deluge systems, or automatic fire
             32278      sprinkler systems.
             32279          Section 702. Section 53-7-225.5 is amended to read:
             32280           53-7-225.5. Inspection and testing of automatic fire sprinkler systems --
             32281      Certification required.
             32282          (1) Each person engaged in the inspection and testing of automatic fire sprinkler
             32283      systems shall be certified by the state fire marshal.
             32284          (2) The board shall by rule prescribe an application form and standards for certification
             32285      qualification and for renewal and revocation.

             32286          (3) Applicants for certification as an automatic fire sprinkler system inspector and tester
             32287      shall:
             32288          (a) submit a written application on the form prescribed by the board;
             32289          (b) provide evidence of competency as required by the board; and
             32290          (c) submit the fee established under Subsection (4).
             32291          (4) The board may establish an application fee under Section [ 63-38-3.2 ] 63J-1-303 .
             32292          Section 703. Section 53-7-225.6 is amended to read:
             32293           53-7-225.6. Inspection and testing of fire alarm systems -- Certification and
             32294      exceptions.
             32295          (1) (a) Each person, other than fire and building inspectors and electricians licensed
             32296      under Title 58, Chapter 55, Utah Construction Trades Licensing Act, engaged in the inspection
             32297      and testing of fire alarm systems shall be certified by the state fire marshal.
             32298          (b) The board shall by administrative rule prescribe:
             32299          (i) an application form; and
             32300          (ii) standards for certification qualification and for renewal and revocation.
             32301          (2) Applicants for certification as a fire alarm system inspector and tester shall:
             32302          (a) submit a written application on the form prescribed by the board;
             32303          (b) provide evidence of competency as required by the board; and
             32304          (c) submit the fee established under Subsection (3).
             32305          (3) The board may establish an application fee under Section [ 63-38-3.2 ] 63J-1-303 .
             32306          Section 704. Section 53-7-314 is amended to read:
             32307           53-7-314. Fees -- Setting -- Deposit -- Use.
             32308          (1) The board shall establish fees authorized in this part in accordance with the
             32309      procedures specified in Section [ 63-38-3.2 ] 63J-1-303 , but the fees shall be deposited as
             32310      provided in Subsection (2).
             32311          (2) Fees collected by the division under this part, shall be deposited with the state
             32312      treasurer as a nonlapsing dedicated credit, to be used for the implementation of this part.
             32313          Section 705. Section 53-7-407 (Effective 07/01/08) is amended to read:

             32314           53-7-407 (Effective 07/01/08). Implementation -- Effect of part on Model Tobacco
             32315      Settlement Act and Tobacco Tax and Licensing Act.
             32316          (1) The state fire marshal may promulgate rules and regulations, pursuant to [Title 63,
             32317      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, necessary to
             32318      effectuate the purposes of this part.
             32319          (2) The State Tax Commission in the regular course of conducting inspections of
             32320      wholesale dealers, agents, and retail dealers, as authorized under Title 59, Chapter 14, Cigarette
             32321      and Tobacco Tax and Licensing Act, may inspect cigarettes to determine if the cigarettes are
             32322      marked as required by Section 53-7-405 . If the cigarettes are not marked as required, the State
             32323      Tax Commission shall notify the state fire marshal.
             32324          (3) Nothing in this part shall affect an entity's obligations pursuant to:
             32325          (a) Title 59, Chapter 14, Cigarette and Tobacco Tax and Licensing Act; or
             32326          (b) Title 59, Chapter 22, Model Tobacco Settlement Act.
             32327          Section 706. Section 53-8-204 is amended to read:
             32328           53-8-204. Division duties -- Official inspection stations -- Permits -- Fees --
             32329      Suspension or revocation -- Utah-based interstate commercial motor carriers.
             32330          (1) The division shall:
             32331          (a) conduct examinations of every safety inspection station permit applicant and safety
             32332      inspector certificate applicant to determine whether the applicant is properly equipped and
             32333      qualified to make safety inspections;
             32334          (b) issue safety inspection station permits and safety inspector certificates to qualified
             32335      applicants;
             32336          (c) establish application, renewal, and reapplication fees in accordance with Section
             32337      [ 63-38-3.2 ] 63J-1-303 for safety inspection station permits and safety inspector certificates;
             32338          (d) provide instructions and all necessary forms, including safety inspection certificates,
             32339      to safety inspection stations for the inspection of motor vehicles and the issuance of the safety
             32340      inspection certificates;
             32341          (e) charge a $2 fee for each safety inspection certificate;

             32342          (f) investigate complaints regarding safety inspection stations and safety inspectors;
             32343          (g) compile and publish all applicable safety inspection laws, rules, instructions, and
             32344      standards and distribute them to all safety inspection stations and provide updates to the
             32345      compiled laws, rules, instructions, and standards as needed;
             32346          (h) establish a fee in accordance with Section [ 63-38-3.2 ] 63J-1-303 to cover the cost
             32347      of compiling and publishing the safety inspection laws, rules, instructions, and standards and any
             32348      updates; and
             32349          (i) assist the council in conducting its meetings and hearings.
             32350          (2) (a) (i) Receipts from the fees established in accordance with Subsection (1)(h) are
             32351      fixed collections to be used by the division for the expenses of the Utah Highway Patrol
             32352      incurred under Subsection (1)(h).
             32353          (ii) Funds received in excess of the expenses under Subsection (1)(h) shall be deposited
             32354      in the Transportation Fund.
             32355          (b) (i) The first $.75 of the fee under Subsection (1)(e) is a dedicated credit to be used
             32356      solely by the Utah Highway Patrol for the expenses of administering this section.
             32357          (ii) The remaining funds collected under Subsection (1)(e) shall be deposited in the
             32358      Transportation Fund.
             32359          (iii) The dedicated credits described under Subsection (2)(b)(i) are in addition to any
             32360      other appropriations provided to administer the safety inspection program duties under this
             32361      section.
             32362          (3) The division may:
             32363          (a) before issuing a safety inspection permit, require an applicant, other than a fleet
             32364      station or government station, to file a bond that will provide a guarantee that the applicant
             32365      safety inspection station will make compensation for any damage to a motor vehicle during an
             32366      inspection or adjustment due to negligence on the part of an applicant or [his] the applicant's
             32367      employees;
             32368          (b) establish procedures governing the issuance of safety inspection certificates to
             32369      Utah-based interstate commercial motor carriers; and

             32370          (c) suspend, revoke, or refuse renewal of any safety inspection station permit issued
             32371      when the division finds that the safety inspection station is not:
             32372          (i) properly equipped; or
             32373          (ii) complying with rules made by the division; and
             32374          (d) suspend, revoke, or refuse renewal of any safety inspection station permit or safety
             32375      inspector certificate issued when the station or inspector has violated any safety inspection law
             32376      or rule.
             32377          (4) The division shall maintain a record of safety inspection station permits and safety
             32378      inspector certificates issued, suspended, revoked, or refused renewal under Subsection (3)(c).
             32379          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             32380      Administrative Rulemaking Act, the division shall make rules:
             32381          (a) setting minimum standards covering the design, construction, condition, and
             32382      operation of motor vehicle equipment for safely operating a motor vehicle on the highway;
             32383          (b) establishing motor vehicle safety inspection procedures to ensure a motor vehicle
             32384      can be operated safely;
             32385          (c) establishing safety inspection station building, equipment, and personnel
             32386      requirements necessary to qualify to perform safety inspections;
             32387          (d) establishing age, training, examination, and renewal requirements to qualify for a
             32388      safety inspector certificate;
             32389          (e) establishing program guidelines for a school district that elects to implement a safety
             32390      inspection apprenticeship program for high school students;
             32391          (f) establishing requirements:
             32392          (i) designed to protect consumers from unwanted or unneeded repairs or adjustments;
             32393          (ii) for maintaining safety inspection records;
             32394          (iii) for providing reports to the division; and
             32395          (iv) for maintaining and protecting safety inspection certificates;
             32396          (g) establishing procedures for a motor vehicle that fails a safety inspection;
             32397          (h) setting bonding amounts for safety inspection stations if bonds are required under

             32398      Subsection (3)(a); and
             32399          (i) establishing procedures for a safety inspection station to follow if the station is going
             32400      out of business.
             32401          (6) The rules of the division:
             32402          (a) shall conform as nearly as practical to federal motor vehicle safety standards
             32403      including 49 CFR 393, 396, 396 Appendix G, and Federal Motor Vehicle Safety Standards 205;
             32404      and
             32405          (b) may incorporate by reference, in whole or in part, the federal standards under
             32406      Subsection (6)(a) and nationally recognized and readily available standards and codes on motor
             32407      vehicle safety.
             32408          Section 707. Section 53-8-211 is amended to read:
             32409           53-8-211. Safety inspection of school buses and other vehicles.
             32410          (1) (a) The Highway Patrol shall:
             32411          (i) perform safety inspections at least twice each school year on all school buses
             32412      operated by each school district and each private school in the state for the transportation of
             32413      students, except as otherwise provided in Subsection (1)(b); and
             32414          (ii) cause to be removed from the public highways any vehicle found to have mechanical
             32415      or other defects under Subsection (1)(a) endangering the safety of passengers and the public
             32416      until the defects have been corrected.
             32417          (b) (i) A school district or private school may perform the safety inspections of a school
             32418      bus that it operates in accordance with rules made by the division under [Title 63, Chapter 46a]
             32419      Title 63G, Chapter 3, Utah Administrative Rule Making Act, and after consultation with the
             32420      State Board of Education.
             32421          (ii) The rules under Subsection (1)(b)(i) shall include provisions for:
             32422          (A) maintaining school bus drivers' hours of service records;
             32423          (B) requiring school bus drivers to maintain vehicle condition reports;
             32424          (C) maintaining school bus maintenance and repair records; and
             32425          (D) validating that defects discovered during the inspection process have been corrected

             32426      prior to returning a school bus to service.
             32427          (iii) (A) The division shall audit school bus safety operations of each school district and
             32428      private school performing inspections under Subsection (1)(b)(i) to ensure compliance with the
             32429      rules made under that subsection.
             32430          (B) The audit may include both a formal examination of the district's or school's
             32431      inspection records and a random physical inspection of buses that have been safety inspected by
             32432      the district or the school.
             32433          (iv) A school district or school must have a comprehensive school bus maintenance plan
             32434      approved by the division in order to participate in the safety inspection program.
             32435          (v) A school district or private school may not operate any vehicle found to have
             32436      mechanical or other defects that would endanger the safety of passengers and the public until
             32437      the defects have been corrected.
             32438          (2) Motor vehicles operated by private schools or school districts, and not used for the
             32439      transportation of students, are subject to Section 53-8-205 .
             32440          Section 708. Section 53-9-103 is amended to read:
             32441           53-9-103. Commissioner of Public Safety to administer -- Bureau to issue licenses
             32442      -- Records -- Bonds -- Rulemaking.
             32443          (1) The commissioner of the Department of Public Safety shall administer this chapter.
             32444          (2) (a) The bureau, acting at the direction of the commissioner, shall issue a private
             32445      investigator license to any applicant who meets qualifications for licensure under Section
             32446      53-9-108 .
             32447          (b) The bureau shall issue a license to a qualified apprentice applicant within five
             32448      business days of receipt of the application.
             32449          (3) (a) The bureau shall keep records of:
             32450          (i) all applications for licenses under this chapter; and
             32451          (ii) all bonds and proof of workers' compensation required to be filed.
             32452          (b) The records shall include statements as to whether a license or renewal license has
             32453      been issued for each application and bond.

             32454          (4) If a license is revoked, suspended, canceled, or denied or if a licensee is placed on
             32455      probation, the date of filing the order for revocation, suspension, cancellation, denial, or
             32456      probation shall be included in the records.
             32457          (5) The bureau shall maintain:
             32458          (a) a list of all licensees whose license has been revoked, suspended, placed on
             32459      probation, or canceled; and
             32460          (b) a written record of complaints filed against licensees.
             32461          (6) The commissioner may make rules in accordance with [Title 63, Chapter 46a] Title
             32462      63G, Chapter 3, Utah Administrative Rulemaking Act, necessary to administer this chapter.
             32463          Section 709. Section 53-9-108 is amended to read:
             32464           53-9-108. Qualifications for licensure.
             32465          (1) (a) An applicant for an agency license under this chapter shall be at least 21 years of
             32466      age, a citizen or legal resident of the United States, and of good moral character.
             32467          (b) An applicant may not have been:
             32468          (i) convicted of a felony;
             32469          (ii) convicted of an act involving illegally using, carrying, or possessing a dangerous
             32470      weapon;
             32471          (iii) convicted of an act of personal violence or force on any person or convicted of
             32472      threatening to commit an act of personal violence or force against another person;
             32473          (iv) convicted of an act constituting dishonesty or fraud;
             32474          (v) convicted of an act involving moral turpitude;
             32475          (vi) placed on probation or parole;
             32476          (vii) named in an outstanding arrest warrant; or
             32477          (viii) convicted of illegally obtaining or disclosing private, controlled, or protected
             32478      records as provided in Section [ 63-2-801 ] 63G-2-801 .
             32479          (c) In assessing good moral character under Subsection (1)(b), the board shall consider
             32480      mitigating circumstances presented by an applicant regarding information under Subsections
             32481      (1)(b)(vi) and (viii).

             32482          (d) If previously or currently licensed in another state or jurisdiction, the applicant shall
             32483      be in good standing within that state or jurisdiction.
             32484          (e) An applicant shall have completed a minimum of two years, or 2,000 hours, of
             32485      investigative experience that consists of actual work performed as a licensed private investigator
             32486      for a private agency, or 2,000 hours of work performed in an investigative capacity for the
             32487      federal government, or for a state, county, or municipal government.
             32488          (f) (i) An applicant for an agency license shall substantiate investigative work
             32489      experience claimed as years of qualifying experience and provide the exact details as to the
             32490      character and nature of the experience on a form prescribed by the department and certified by
             32491      the applicant's employers.
             32492          (ii) If the applicant is unable to supply written certification from an employer in whole
             32493      or in part, the applicant may offer written certification from persons other than an employer
             32494      covering the same subject matter for consideration by the board.
             32495          (iii) The applicant shall prove completion of the required experience to the satisfaction
             32496      of the board and the board may independently verify the certification offered on behalf of the
             32497      applicant.
             32498          (2) (a) (i) An applicant for a registrant license shall meet all qualification standards of
             32499      this section, except Subsection (1)(d).
             32500          (ii) An applicant shall have a minimum of one year, or 1,000 hours, of investigative
             32501      experience that consists of actual work performed as a private investigator for a private agency,
             32502      the federal government, a state, county, or municipal government.
             32503          (b) A licensed registrant, as defined in Section 53-9-102 , shall only work as an
             32504      employee of, or as an independent contractor with, an agency licensed in Utah and physically
             32505      located within Utah, and may not:
             32506          (i) advertise [his] the licensed registrant's services or conduct investigations for the
             32507      general public; or
             32508          (ii) employ other private investigators or hire them as independent contractors.
             32509          (3) (a) An applicant for an apprentice license, lacking the experience required for a

             32510      registrant license, shall meet all of the qualification standards in Subsection (1) except
             32511      Subsection (1)(d), and shall complete an apprentice application.
             32512          (b) (i) An apprentice, as defined in Section 53-9-102 , shall work under the direct
             32513      supervision and guidance of an agency licensed in Utah and located within Utah, full-time for
             32514      one year or for 1,000 hours, prior to acquiring eligibility for a registrant license.
             32515          (ii) A licensed apprentice shall only work under the direction of a licensed agency and
             32516      may not:
             32517          (A) advertise [his] the licensed apprentice's services or conduct investigations for the
             32518      general public;
             32519          (B) employ other private investigators; or
             32520          (C) obtain information from the Utah State Tax Commission Motor Vehicle Division or
             32521      Driver License Division within the Department of Public Safety, except the apprentice may
             32522      utilize this information for a legitimate business need and under the direct supervision of a
             32523      licensed agency.
             32524          (4) (a) An applicant for an agency, registrant, or apprentice license may be eligible for a
             32525      license without meeting all or part of the investigative work experience required by this section
             32526      if the applicant:
             32527          (i) has a criminal justice degree from an accredited college or university;
             32528          (ii) is certified by Peace Officer Standards and Training; or
             32529          (iii) can substantiate other similar law enforcement or investigative training in the areas
             32530      set forth in Subsection 53-9-102 (17).
             32531          (b) The board shall determine whether or not training may replace the work experience
             32532      requirement and to what extent.
             32533          Section 710. Section 53-9-113 is amended to read:
             32534           53-9-113. Grounds for denial of a license -- Appeal.
             32535          (1) The board may deny a license or the renewal of a license if the applicant has:
             32536          (a) committed an act that, if committed by a licensee, would be grounds for probation,
             32537      suspension, or revocation of a license under this chapter;

             32538          (b) employed or contracted with a person who has been refused a license under this
             32539      chapter or who has had a license revoked;
             32540          (c) while not licensed under this chapter, committed, or aided and abetted the
             32541      commission of, any act for which a license is required by this chapter; or
             32542          (d) knowingly made a material misstatement in connection with an application for a
             32543      license or renewal of a license.
             32544          (2) (a) The board's denial of a license under this chapter shall:
             32545          (i) be in writing;
             32546          (ii) describe the basis for the denial; and
             32547          (iii) inform the applicant that if the applicant desires a hearing to contest the denial, the
             32548      applicant shall submit a request in writing to the board within 30 days after the denial has been
             32549      sent by the department by certified mail to the applicant.
             32550          (b) The board shall schedule a hearing on the denial for the next board meeting after the
             32551      applicant's request for a hearing has been received by the board.
             32552          (3) The decision of the board may be appealed to the commissioner, who may:
             32553          (a) return the case to the board for reconsideration;
             32554          (b) modify the board's decision; or
             32555          (c) reverse the board's decision.
             32556          (4) The department shall promptly issue a final order of the commissioner and send the
             32557      order to the applicant.
             32558          (5) Decisions of the commissioner are subject to judicial review pursuant to Section
             32559      [ 63-46b-15 ] 63G-4-402 .
             32560          Section 711. Section 53-9-115 is amended to read:
             32561           53-9-115. Business name and address -- Posting of license -- Advertising.
             32562          (1)(a) Subject to the provisions of this chapter, a licensee may conduct an investigative
             32563      business under a name other than the licensee's by:
             32564          (i) complying with the requirements of Title 42, Chapter 2, Conducting Business Under
             32565      Assumed Name; and

             32566          (ii) providing a copy of the filed certificate to the commissioner.
             32567          (b) Failure to comply with Subsection (1)(a) shall result in the suspension of the license.
             32568          (2) Each licensee shall have at least one physical location from which the normal
             32569      business of the agency is conducted. The address of this location shall be on file with the
             32570      commissioner at all times and is not a public record pursuant to Subsection [ 63-2-301 (1)]
             32571      63G-2-301 (2)(b)(ii).
             32572          (3) The license certificate issued by the commissioner shall be posted in a conspicuous
             32573      place in the principal office of the licensee.
             32574          (4) Subject to the provisions of this chapter, a licensee may solicit business through any
             32575      accepted form of advertising.
             32576          (a) Any advertisement shall contain the licensee's name and license number as it appears
             32577      on the license certificate.
             32578          (b) A licensee may not use false, deceptive, or misleading advertising.
             32579          Section 712. Section 53-9-118 is amended to read:
             32580           53-9-118. Grounds for disciplinary action -- Types of action.
             32581          (1) The board may suspend or revoke a license or registration or deny an application for
             32582      a license if a person engages in any of the following:
             32583          (a) fraud or willful misrepresentation in applying for an original license or renewal of an
             32584      existing license;
             32585          (b) using any letterhead, advertising, or other printed matter in any manner representing
             32586      that the licensee is an instrumentality of the federal government, a state, or any political
             32587      subdivision of a state;
             32588          (c) using a name different from that under which the licensee is currently licensed for
             32589      any advertising, solicitation, or contract to secure business unless the name is an authorized
             32590      fictitious name;
             32591          (d) impersonating, permitting, or aiding and abetting an employee or independent
             32592      contractor to impersonate a peace officer or employee of the United States, any state, or a
             32593      political subdivision of a state;

             32594          (e) knowingly violating, advising, encouraging, or assisting the violation of any statute,
             32595      court order, or injunction in the course of a business regulated under this chapter;
             32596          (f) falsifying fingerprints or photographs while operating under this chapter;
             32597          (g) conviction of a felony;
             32598          (h) conviction of any act involving illegally using, carrying, or possessing a dangerous
             32599      weapon;
             32600          (i) conviction of any act involving moral turpitude;
             32601          (j) conviction of any act of personal violence or force against any person or conviction
             32602      of threatening to commit any act of personal violence or force against any person;
             32603          (k) soliciting business for an attorney in return for compensation;
             32604          (l) conviction of any act constituting dishonesty or fraud;
             32605          (m) being placed on probation, parole, or named in an outstanding arrest warrant;
             32606          (n) committing or permitting any employee or independent contractor to commit any
             32607      act during the period when the license is expired or suspended;
             32608          (o) willfully neglecting to render to a client services or a report as agreed between the
             32609      parties and for which compensation has been paid or tendered in accordance with the agreement
             32610      of the parties unless the licensee chooses to withdraw from the case and returns the funds for
             32611      work not yet completed;
             32612          (p) the unauthorized release of information acquired on behalf of a client by a licensee,
             32613      or its employee or contract agent as a result of activities regulated under this chapter;
             32614          (q) failing to cooperate with, misrepresenting to, or refusing access to business or
             32615      investigative records requested by the board or an authorized representative of the department
             32616      engaged in an official investigation pursuant to this chapter;
             32617          (r) employing or contracting with any unlicensed or improperly licensed person or
             32618      agency to conduct activities regulated under this chapter if the licensure status was known or
             32619      could have been ascertained by reasonable inquiry;
             32620          (s) permitting, authorizing, aiding, or in any way assisting an employee to conduct
             32621      services as described in this chapter on an independent contractor basis and not under the

             32622      authority of the licensed agency;
             32623          (t) failure to maintain in full force and effect workers' compensation insurance, if
             32624      applicable;
             32625          (u) conducting private investigation services regulated by this chapter on a revoked or
             32626      suspended license;
             32627          (v) accepting employment, contracting, or in any way engaging in employment that has
             32628      an adverse impact on investigations being conducted on behalf of clients;
             32629          (w) advertising in a false, deceptive, or misleading manner;
             32630          (x) refusing to display the identification card issued by the department to any person
             32631      having reasonable cause to verify the validity of the license;
             32632          (y) committing any act of unprofessional conduct;
             32633          (z) conviction of any act of illegally obtaining or disseminating private, controlled, or
             32634      protected records under Section [ 63-2-801 ] 63G-2-801 ; or
             32635          (aa) engaging in any other conduct prohibited by this chapter.
             32636          (2) (a) If the board finds, based on the investigation, that the public health, safety, or
             32637      welfare requires emergency action, the board may order a summary suspension of a license
             32638      pending proceedings for revocation or other action.
             32639          (b) If the board issues a summary suspension order, the commissioner shall issue to the
             32640      licensee a written notice of the order and indicate the licensee's right to request a formal hearing
             32641      before the board.
             32642          (c) The licensee's request for a formal hearing shall be in writing and received by the
             32643      department within 30 working days of the date the summary suspension was sent by the
             32644      department to the licensee by certified mail.
             32645          (3) If the board finds, based on the investigation or hearing, that a violation under
             32646      Subsection (1) has occurred, notice will be sent to the licensee of the board's decision by mailing
             32647      a true copy to the licensee's last-known address in the department's files by certified mail, return
             32648      receipt requested.
             32649          (4) Based on information the board receives from the investigation or during a hearing,

             32650      it may do any of the following:
             32651          (a) dismiss the complaint if the board believes it is without merit;
             32652          (b) take emergency action;
             32653          (c) issue a letter of concern, if applicable;
             32654          (d) impose a civil fine not to exceed $500;
             32655          (e) place the license on suspension for a period of not more than 12 months;
             32656          (f) revoke the license or registration; and
             32657          (g) place all records, evidence findings, and conclusion, and any other information
             32658      pertinent to the investigation, in a confidential and protected records section of the file
             32659      maintained at the department.
             32660          (5) A letter of concern issued pursuant to Section 53-9-118 is a document that is
             32661      retained by the department and may be used in future disciplinary actions against a licensee.
             32662          (6) Appeal of the board's decision shall be made in writing to the commissioner within
             32663      15 days of the date of issuance of the board's decision. The commissioner shall review the
             32664      finding by the board and may affirm, return to the board for reconsideration, reverse, adopt,
             32665      modify, supplement, amend, or reject the recommendation of the board.
             32666          (7) The department shall issue a final written order within 30 days outlining the
             32667      commissioner's decision on the appeal. The final order is final agency action for purposes of
             32668      judicial review under Section [ 63-46b-15 ] 63G-4-402 .
             32669          (8) All fines collected under this section shall be deposited in the General Fund.
             32670          Section 713. Section 53-10-108 is amended to read:
             32671           53-10-108. Restrictions on access, use, and contents of division records -- Limited
             32672      use of records for employment purposes -- Challenging accuracy of records -- Usage fees
             32673      -- Missing children records.
             32674          (1) Dissemination of information from a criminal history record or warrant of arrest
             32675      information from division files is limited to:
             32676          (a) criminal justice agencies for purposes of administration of criminal justice and for
             32677      employment screening by criminal justice agencies;

             32678          (b) noncriminal justice agencies or individuals for any purpose authorized by statute,
             32679      executive order, court rule, court order, or local ordinance;
             32680          (c) agencies or individuals for the purpose of obtaining required clearances connected
             32681      with foreign travel or obtaining citizenship;
             32682          (d) (i) agencies or individuals pursuant to a specific agreement with a criminal justice
             32683      agency to provide services required for the administration of criminal justice; and
             32684          (ii) the agreement shall specifically authorize access to data, limit the use of the data to
             32685      purposes for which given, and ensure the security and confidentiality of the data;
             32686          (e) agencies or individuals for the purpose of a preplacement adoptive study, in
             32687      accordance with the requirements of Section 78-30-3.5 ;
             32688          (f) (i) agencies and individuals as the commissioner authorizes for the express purpose
             32689      of research, evaluative, or statistical activities pursuant to an agreement with a criminal justice
             32690      agency; and
             32691          (ii) private security agencies through guidelines established by the commissioner for
             32692      employment background checks for their own employees and prospective employees;
             32693          (g) a qualifying entity for employment background checks for their own employees and
             32694      persons who have applied for employment with the qualifying entity; and
             32695          (h) other agencies and individuals as the commissioner authorizes and finds necessary
             32696      for protection of life and property and for offender identification, apprehension, and prosecution
             32697      pursuant to an agreement.
             32698          (2) An agreement under Subsection (1)(f) or (1)(h) shall specifically authorize access to
             32699      data, limit the use of data to research, evaluative, or statistical purposes, preserve the anonymity
             32700      of individuals to whom the information relates, and ensure the confidentiality and security of the
             32701      data.
             32702          (3) (a) Before requesting information under Subsection (1)(g), a qualifying entity must
             32703      obtain a signed waiver from the person whose information is requested.
             32704          (b) The waiver must notify the signee:
             32705          (i) that a criminal history background check will be conducted;

             32706          (ii) who will see the information; and
             32707          (iii) how the information will be used.
             32708          (c) Information received by a qualifying entity under Subsection (1)(g) may only be:
             32709          (i) available to persons involved in the hiring or background investigation of the
             32710      employee; and
             32711          (ii) used for the purpose of assisting in making an employment or promotion decision.
             32712          (d) A person who disseminates or uses information obtained from the division under
             32713      Subsection (1)(g) for purposes other than those specified under Subsection (3)(c), in addition to
             32714      any penalties provided under this section, is subject to civil liability.
             32715          (e) A qualifying entity that obtains information under Subsection (1)(g) shall provide
             32716      the employee or employment applicant an opportunity to:
             32717          (i) review the information received as provided under Subsection (8); and
             32718          (ii) respond to any information received.
             32719          (f) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             32720      Administrative Rulemaking Act, the division may make rules to implement this Subsection (3).
             32721          (g) (i) The applicant fingerprint card fee under Subsection (1)(g) is $15.
             32722          (ii) The name check fee under Subsection (1)(g) is $10.
             32723          (iii) These fees remain in effect until changed by the division through the process under
             32724      Section [ 63-38-3.2 ] 63J-1-303 .
             32725          (iv) Funds generated under Subsections (3)(g)(i), (3)(g)(ii), and (8)(b) shall be
             32726      deposited in the General Fund as a dedicated credit by the department to cover the costs
             32727      incurred in providing the information.
             32728          (h) The division or its employees are not liable for defamation, invasion of privacy,
             32729      negligence, or any other claim in connection with the contents of information disseminated
             32730      under Subsection (1)(g).
             32731          (4) Any criminal history record information obtained from division files may be used
             32732      only for the purposes for which it was provided and may not be further disseminated, except
             32733      that a criminal history provided to an agency pursuant to Subsection (1)(e) may be provided by

             32734      the agency to the person who is the subject of the history, another licensed child-placing agency,
             32735      or the attorney for the adoptive parents for the purpose of facilitating an adoption.
             32736          (5) If an individual has no prior criminal convictions, criminal history record information
             32737      contained in the division's computerized criminal history files may not include arrest or
             32738      disposition data concerning an individual who has been acquitted, [his] the person's charges
             32739      dismissed, or when no complaint against him has been filed.
             32740          (6) (a) This section does not preclude the use of the division's central computing
             32741      facilities for the storage and retrieval of criminal history record information.
             32742          (b) This information shall be stored so it cannot be modified, destroyed, or accessed by
             32743      unauthorized agencies or individuals.
             32744          (7) Direct access through remote computer terminals to criminal history record
             32745      information in the division's files is limited to those agencies authorized by the commissioner
             32746      under procedures designed to prevent unauthorized access to this information.
             32747          (8) (a) The commissioner shall establish procedures to allow an individual right of
             32748      access to review and receive a copy of [his] the inidividual's criminal history report.
             32749          (b) A processing fee for the right of access service, including obtaining a copy of the
             32750      individual's criminal history report under Subsection (8)(a) is $10. This fee remains in effect
             32751      until changed by the commissioner through the process under Section [ 63-38-3.2 ] 63J-1-303 .
             32752          (c) (i) The commissioner shall establish procedures for an individual to challenge the
             32753      completeness and accuracy of criminal history record information contained in the division's
             32754      computerized criminal history files regarding that individual.
             32755          (ii) These procedures shall include provisions for amending any information found to be
             32756      inaccurate or incomplete.
             32757          (9) The private security agencies as provided in Subsection (1)(f)(ii):
             32758          (a) shall be charged for access; and
             32759          (b) shall be registered with the division according to rules made by the division under
             32760      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             32761          (10) Before providing information requested under this section, the division shall give

             32762      priority to criminal justice agencies needs.
             32763          (11) (a) Misuse of access to criminal history record information is a class B
             32764      misdemeanor.
             32765          (b) The commissioner shall be informed of the misuse.
             32766          Section 714. Section 53-10-406 is amended to read:
             32767           53-10-406. DNA specimen analysis -- Bureau responsibilities.
             32768          (1) The bureau shall:
             32769          (a) store all DNA specimens received and other physical evidence obtained from
             32770      analysis of those specimens;
             32771          (b) analyze the specimens to establish the genetic profile of the donor or to otherwise
             32772      determine the identity of persons or contract with other qualified public or private laboratories
             32773      to conduct the analysis;
             32774          (c) maintain a criminal identification data base containing information derived from
             32775      DNA analysis;
             32776          (d) utilize the specimens to create statistical population frequency data bases, provided
             32777      that genetic profiles or other information in a population frequency data base may not be
             32778      identified with specific individuals;
             32779          (e) ensure that the DNA identification system does not provide information allowing
             32780      prediction of genetic disease or predisposition to illness; and
             32781          (f) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             32782      Administrative Rulemaking Act, establishing procedures for obtaining, transmitting, and
             32783      analyzing DNA specimens and for storing and destroying DNA specimens and other physical
             32784      evidence and criminal identification information obtained from the analysis.
             32785          (2) Procedures for DNA analysis may include all techniques which the Department of
             32786      Public Safety determines are accurate and reliable in establishing identity, including but not
             32787      limited to, analysis of DNA, antigen antibodies, polymorphic enzymes, or polymorphic proteins.
             32788          (3) (a) In accordance with Section [ 63-2-304 ] 63G-2-305 , all DNA specimens received
             32789      shall be classified as protected.

             32790          (b) The Department of Public Safety may not transfer or disclose any DNA specimen,
             32791      physical evidence, or criminal identification information obtained, stored, or maintained under
             32792      this section, except under its provisions.
             32793          (4) Notwithstanding the provisions of Subsection [ 63-2-202 ] 63G-2-202 (1), the
             32794      department may deny inspection if it determines that there is a reasonable likelihood that the
             32795      inspection would prejudice a pending criminal investigation.
             32796          (5) The department shall adopt procedures governing the inspection of records, DNA
             32797      specimens, and challenges to the accuracy of records. The procedures shall accommodate the
             32798      need to preserve the materials from contamination and destruction.
             32799          (6) (a) Whenever a court reverses the conviction, judgment, or order that created an
             32800      obligation to provide a DNA specimen, the person who provided the specimen may request
             32801      destruction of the specimen and any criminal identification record created in connection with
             32802      that specimen.
             32803          (b) Upon receipt of a written request for destruction pursuant to this section and a
             32804      certified copy of the court order reversing the conviction, judgment, or order, the Department
             32805      of Public Safety shall destroy any specimen received from the person, any physical evidence
             32806      obtained from that specimen, and any criminal identification records pertaining to the person,
             32807      unless the department determines that the person has otherwise become obligated to submit a
             32808      DNA specimen as a result of a separate conviction or juvenile adjudication for an offense listed
             32809      in Section 53-10-403 .
             32810          (7) The department is not required to destroy any item of physical evidence obtained
             32811      from a DNA specimen if evidence relating to another person subject to the provisions of
             32812      Sections 53-10-404 and 53-10-405 would as a result be destroyed.
             32813          (8) A DNA specimen, physical evidence, or criminal identification record may not be
             32814      affected by an order to set aside a conviction, except under the provisions of this section.
             32815          (9) If funding is not available for analysis of any of the DNA specimens collected under
             32816      this part, the bureau shall store the collected specimens until funding is made available for
             32817      analysis through state or federal funds.

             32818          Section 715. Section 53-10-602 is amended to read:
             32819           53-10-602. Committee's duties and powers.
             32820          (1) The committee shall:
             32821          (a) review and make recommendations to the division, the Bureau of Communications,
             32822      public safety answering points, and the Legislature on:
             32823          (i) technical and operational issues for the implementation of a unified statewide
             32824      wireless and land-based E-911 emergency system;
             32825          (ii) specific technology and standards for the implementation of a unified statewide
             32826      wireless and land-based E-911 emergency system;
             32827          (iii) expenditures by local public service answering points to assure implementation of a
             32828      unified statewide wireless and land-based E-911 emergency system and standards of operation;
             32829      and
             32830          (iv) mapping systems and technology necessary to implement the unified statewide
             32831      wireless and land-based E-911 emergency system;
             32832          (b) administer the fund as provided in this part;
             32833          (c) assist as many local entities as possible, at their request, to implement the
             32834      recommendations of the committee; and
             32835          (d) fulfill all other duties imposed on the committee by the Legislature by this part.
             32836          (2) The committee may sell, lease, or otherwise dispose of equipment or personal
             32837      property belonging to the committee, the proceeds from which shall return to the fund.
             32838          (3) The committee shall issue the reimbursement allowed under Subsection
             32839      53-10-605 (1)(b) provided that:
             32840          (a) the reimbursement is based on aggregated cost studies submitted to the committee
             32841      by the wireless carriers seeking reimbursement; and
             32842          (b) the reimbursement to any one carrier does not exceed 125% of the wireless carrier's
             32843      contribution to the fund.
             32844          (4) The committee shall adopt rules in accordance with [Title 63, Chapter 46a] Title
             32845      63G, Chapter 3, Utah Administrative Rulemaking Act, to administer the fund created in Section

             32846      53-10-603 including rules that establish the criteria, standards, technology, and equipment that a
             32847      local entity or state agency must adopt in order to qualify for grants from the fund.
             32848          Section 716. Section 53-11-103 is amended to read:
             32849           53-11-103. Commissioner of Public Safety administers -- Licensure --
             32850      Rulemaking.
             32851          (1) The commissioner administers this chapter, including keeping records of:
             32852          (a) all applications for licenses under this chapter; and
             32853          (b) proof of workers' compensation required to be filed.
             32854          (2) Records shall include statements as to whether a license or renewal license has been
             32855      issued for each application and bond.
             32856          (3) If a license is revoked, suspended, or canceled, or a license is denied or placed on
             32857      probation, the commissioner shall ensure the date of filing the order for revocation, suspension,
             32858      cancellation, denial, or probation is included in the records.
             32859          (4) The commissioner shall maintain a list of all individuals, firms, partnerships,
             32860      associations, or corporations that have had a license revoked, suspended, placed on probation,
             32861      or canceled and a written record of complaints filed against licensees.
             32862          (5) (a) The commissioner may make rules in accordance with [Title 63, Chapter 46a]
             32863      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, as necessary to administer this
             32864      chapter.
             32865          (b) These rules shall include a requirement that all providers offering instruction or
             32866      continuing instruction required for licensure under this chapter shall offer the courses to all
             32867      applicants at the same course fees, in order to be qualified by the board.
             32868          (6) All records referred to under this section are open to the public under [Title 63,
             32869      Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act, except
             32870      licensees' residential addresses and telephone numbers.
             32871          Section 717. Section 53-11-118 is amended to read:
             32872           53-11-118. Grounds for denial of license -- Appeal.
             32873          (1) The board may deny a license application or a license renewal if the applicant has:

             32874          (a) committed an act that, if committed by a licensee, would be grounds for probation,
             32875      suspension, or revocation of a license under this chapter;
             32876          (b) employed as a bail recovery agent or bail recovery apprentice employee or contract
             32877      employee a person who has been refused a license under this chapter or who has had a license
             32878      revoked in any state;
             32879          (c) committed, or aided and abetted the commission of, any act for which a license is
             32880      required by this chapter, while not licensed under this chapter; or
             32881          (d) knowingly made a material misstatement in connection with an application for a
             32882      license or renewal of a license under this chapter.
             32883          (2) The issuance of an identification card shall be denied to an applicant if the applicant
             32884      fails to meet the required licensure qualifications.
             32885          (3) (a) The denial of the issuance of a license under this chapter shall be in writing and
             32886      describe the basis for the denial.
             32887          (b) The board's denial shall inform the applicant in writing that if the applicant desires a
             32888      hearing to contest the denial, [he] the applicant shall submit a request in writing to the
             32889      commissioner within 30 days after the issuance of the denial.
             32890          (c) The hearing shall be scheduled not later than 60 days after receipt of the request.
             32891          (4) The commissioner shall hear the appeal, and may:
             32892          (a) return the case to the board for reconsideration;
             32893          (b) modify the board's decision; or
             32894          (c) reverse the board's decision.
             32895          (5) Decisions of the commissioner are subject to judicial review pursuant to Section
             32896      [ 63-46b-15 ] 63G-4-402 .
             32897          Section 718. Section 53-11-119 is amended to read:
             32898           53-11-119. Grounds for disciplinary action.
             32899          (1) The board may take disciplinary action under Subsection (2), (4), or (5) regarding a
             32900      license granted under this chapter if the board finds the licensee commits any of the following
             32901      while engaged in activities regulated under this chapter:

             32902          (a) fraud or willful misrepresentation in applying for an original license or renewal of an
             32903      existing license;
             32904          (b) using any letterhead, advertising, or other printed matter in any manner representing
             32905      that [he] the licensee is an instrumentality of the federal government, a state, or any political
             32906      subdivision of a state;
             32907          (c) using a name different from that under which [he] the licensee is currently licensed
             32908      for any advertising, solicitation, or contract to secure business unless the name is an authorized
             32909      fictitious name;
             32910          (d) impersonating, permitting, or aiding and abetting an employee to impersonate a law
             32911      enforcement officer or employee of the United States, any state, or a political subdivision of a
             32912      state;
             32913          (e) knowingly violating, advising, encouraging, or assisting in the violation of any
             32914      statute, court order, or injunction in the course of conducting an agency regulated under this
             32915      chapter;
             32916          (f) falsifying fingerprints or photographs while operating under this chapter;
             32917          (g) has a conviction for:
             32918          (i) a felony;
             32919          (ii) any act involving illegally using, carrying, or possessing a dangerous weapon;
             32920          (iii) any act involving moral turpitude;
             32921          (iv) any act of personal violence or force against any person or conviction of
             32922      threatening to commit any act of personal violence or force against any person;
             32923          (v) any act constituting dishonesty or fraud;
             32924          (vi) impersonating a peace officer; or
             32925          (vii) any act of illegally obtaining or disseminating private, controlled, or protected
             32926      records under Section [ 63-2-801 ] 63G-2-801 ;
             32927          (h) soliciting business for an attorney in return for compensation;
             32928          (i) being placed on probation, parole, compensatory service, or named in an outstanding
             32929      arrest warrant;

             32930          (j) committing, or permitting any employee or contract employee to commit any act
             32931      during the period between the expiration of a license for failure to renew within the time fixed
             32932      by this chapter, and the reinstatement of the license, that would be cause for the suspension or
             32933      revocation of the license or grounds for denial of the application for the license;
             32934          (k) willfully neglecting to render to a client services or a report as agreed between the
             32935      parties and for which compensation has been paid or tendered in accordance with the agreement
             32936      of the parties, but if the investigator chooses to withdraw from the case and returns the funds
             32937      for work not yet done, no violation of this section exists;
             32938          (l) failing or refusing to cooperate with, failing to provide truthful information to, or
             32939      refusing access to an authorized representative of the department engaged in an official
             32940      investigation;
             32941          (m) employing or contracting with any unlicensed or improperly licensed person or
             32942      agency to conduct activities regulated under this chapter if the licensure status was known or
             32943      could have been ascertained by reasonable inquiry;
             32944          (n) permitting, authorizing, aiding, or in any way assisting a licensed employee to
             32945      conduct services as described in this chapter on an independent contractor basis and not under
             32946      the authority of the licensed agency;
             32947          (o) failure to maintain in full force and effect workers' compensation insurance, if
             32948      applicable;
             32949          (p) advertising in a false, deceptive, or misleading manner;
             32950          (q) refusing to display the identification card issued by the department to any person
             32951      having reasonable cause to verify the validity of the license;
             32952          (r) committing any act of unprofessional conduct; or
             32953          (s) engaging in any other conduct prohibited by this chapter.
             32954          (2) On completion of an investigation, the board may:
             32955          (a) dismiss the case;
             32956          (b) take emergency action;
             32957          (c) issue a letter of concern, if applicable;

             32958          (d) impose a civil penalty not to exceed $500;
             32959          (e) place all records, evidence, findings, and conclusions and any other information
             32960      pertinent to the investigation in the confidential and protected records section of the file
             32961      maintained at the department; or
             32962          (f) if the board finds, based on the investigation, that a violation of Subsection (1) has
             32963      occurred, notice shall be sent to the licensee of the results of the hearing by mailing a true copy
             32964      to the licensee's last-known address in the department's files by certified mail, return receipt
             32965      requested.
             32966          (3) A letter of concern shall be retained by the commissioner and may be used in future
             32967      disciplinary actions against a licensee.
             32968          (4) (a) If the board finds, based on its investigation under Subsection (1), that the public
             32969      health, safety, or welfare requires emergency action, the board may order a summary suspension
             32970      of a license pending proceedings for revocation or other action.
             32971          (b) If the board issues an order of summary suspension, the board shall issue to the
             32972      licensee a written notice of complaint and formal hearing, setting forth the charges made against
             32973      the licensee and [his] the licensee's right to a formal hearing before the board within 60 days.
             32974          (5) Based on information the board receives during a hearing it may:
             32975          (a) (i) dismiss the complaint if the board believes it is without merit;
             32976          (ii) fix a period and terms of probation best adapted to educate the licensee;
             32977          (iii) place the license on suspension for a period of not more than 12 months; or
             32978          (iv) revoke the license; and
             32979          (b) impose a civil penalty not to exceed $500.
             32980          (6) (a) On a finding by the board that a bail recovery agency licensee committed a
             32981      violation of Subsection (1), the probation, suspension, or revocation terminates the employment
             32982      of all licensees employed or employed by contract by the bail bond agency.
             32983          (b) If a licensee who is an employee or contract employee of a bail bond agency
             32984      committed a violation of Subsection (1), the probation, suspension, or revocation applies only
             32985      to the license held by that individual under this chapter.

             32986          (7) (a) Appeal of the board's decision shall be made in writing to the commissioner
             32987      within 30 days after the date of issuance of the board's decision.
             32988          (b) The hearing shall be scheduled not later than 60 days after receipt of the request.
             32989          (c) The commissioner shall review the finding by the board and may affirm, return to
             32990      the board for reconsideration, reverse, adopt, modify, supplement, amend, or reject the
             32991      recommendation of the board.
             32992          (8) A person may appeal the commissioner's decision to the district court pursuant to
             32993      Section [ 63-46b-15 ] 63G-4-402 .
             32994          (9) All penalties collected under this section shall be deposited in the General Fund.
             32995          Section 719. Section 53-13-106 is amended to read:
             32996           53-13-106. Federal officers -- State law enforcement authority.
             32997          (1) (a) "Federal officer" includes:
             32998          (i) a special agent of the Federal Bureau of Investigation;
             32999          (ii) a special agent of the United States Secret Service;
             33000          (iii) a special agent of the United States Department of Homeland Security, excluding a
             33001      customs inspector or detention removal officer;
             33002          (iv) a special agent of the Bureau of Alcohol, Tobacco and Firearms;
             33003          (v) a special agent of the Federal Drug Enforcement Agency;
             33004          (vi) a United States marshal, deputy marshal, and special deputy United States marshal;
             33005      and
             33006          (vii) a U.S. Postal Inspector of the United States Postal Inspection Service.
             33007          (b) Notwithstanding Subsection (2), federal officers listed in Subsection (1)(a) have
             33008      statewide law enforcement authority relating to felony offenses under the laws of this state.
             33009          (c) The council may designate other federal peace officers, as necessary, if the officers:
             33010          (i) are persons employed full-time by the United States government as federally
             33011      recognized law enforcement officers primarily responsible for the investigation and enforcement
             33012      of the federal laws;
             33013          (ii) have successfully completed formal law enforcement training offered by an agency

             33014      of the federal government consisting of not less than 400 hours; and
             33015          (iii) maintain in-service training in accordance with the standards set forth in Section
             33016      53-13-103 .
             33017          (2) Except as otherwise provided under [Title 63, Chapter 8] Title 63L, Chapter 8,
             33018      Federal Jurisdiction, and Title 77, Chapter 9, Uniform Act on Fresh Pursuit, a federal officer
             33019      may exercise state law enforcement authority only if:
             33020          (a) the state law enforcement agencies and county sheriffs with jurisdiction enter into an
             33021      agreement with the federal agency to be given authority; and
             33022          (b) except as provided in Subsection (3), each federal officer employed by the federal
             33023      agency meets the waiver requirements set forth in Section 53-6-206 .
             33024          (3) A federal officer working as such in the state on or before July 1, 1995, may
             33025      exercise state law enforcement authority without meeting the waiver requirement.
             33026          (4) At any time, consistent with any contract with a federal agency, a state or local law
             33027      enforcement authority may withdraw state law enforcement authority from any individual
             33028      federal officer by sending written notice to the federal agency and to the division.
             33029          (5) The authority of a federal officer under this section is limited to the jurisdiction of
             33030      the authorizing state or local agency, and may be further limited by the state or local agency to
             33031      enforcing specific statutes, codes, or ordinances.
             33032          Section 720. Section 53-15-101 , which is renumbered from Section 63-94-101 is
             33033      renumbered and amended to read:
             33034     
CHAPTER 15. MCGRUFF SAFE HOUSE ACT

             33035     
Part 1. General Provisions

             33036           [63-94-101].     53-15-101. Title.
             33037          This chapter is known as the "McGruff Safe House Act."
             33038          Section 721. Section 53-15-102 , which is renumbered from Section 63-94-102 is
             33039      renumbered and amended to read:
             33040           [63-94-102].     53-15-102. Purpose.
             33041          (1) The Legislature recognizes that children are often in dangerous situations that may

             33042      be threatening or frightening to them and that there is a need for "safe homes" in our
             33043      neighborhoods where a child may go for help.
             33044          (2) The Legislature also recognizes that along with the need for "safe homes" that
             33045      children can recognize easily, there is needed a method by which these homes can be identified.
             33046          (3) The purpose of this chapter is to:
             33047          (a) provide and designate a recognizable symbol for those "safe homes" that children
             33048      can readily identify; and
             33049          (b) establish a method by which local law enforcement agencies can identify and train
             33050      volunteers who are willing to make their homes "safe homes".
             33051          Section 722. Section 53-15-201 , which is renumbered from Section 63-94-103 is
             33052      renumbered and amended to read:
             33053     
Part 2. McGruff House Network Program

             33054           [63-94-103].     53-15-201. Designation -- Administration.
             33055          (1) The National McGruff House Network Program is hereby designated as the
             33056      officially recognized statewide "safe house" program for Utah.
             33057          (2) The program shall be administered through the Department of Public Safety by the
             33058      Utah Council for Crime Prevention.
             33059          Section 723. Section 53-15-202 , which is renumbered from Section 63-94-104 is
             33060      renumbered and amended to read:
             33061           [63-94-104].     53-15-202. Program requirements.
             33062          (1) The statewide program administrator shall:
             33063          (a) provide support and training upon request to local law enforcement agencies
             33064      interested in implementing the program in their area;
             33065          (b) provide local programs with signs for display in approved "safe homes"; and
             33066          (c) maintain a register of all "safe homes" that includes, at a minimum, the address of
             33067      the home and the names of all persons living in the home.
             33068          (2) The local program shall:
             33069          (a) recruit volunteer "safe homes" in neighborhoods with the help of local community

             33070      groups;
             33071          (b) provide training and education to volunteers regarding the program and its use;
             33072          (c) provide for an application process for volunteers;
             33073          (d) conduct criminal history background checks on volunteers and members of their
             33074      households;
             33075          (e) approve or disapprove applications for "safe homes";
             33076          (f) provide education through community programs for parents and children on the
             33077      program and the proper use of "safe homes";
             33078          (g) provide approved "safe homes" with signs for display;
             33079          (h) provide procedures by which a "safe home" may be removed from the register; and
             33080          (i) provide for a method of renewal of the "safe home" designation in order to keep the
             33081      registry current and provide for the periodic review of the "safe home", the volunteer, and all
             33082      members of the household.
             33083          Section 724. Section 53A-1-402.5 is amended to read:
             33084           53A-1-402.5. State board rules establishing basic ethical conduct standards --
             33085      Local school board policies.
             33086          (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             33087      Administrative Rulemaking Act, the State Board of Education shall make rules that establish
             33088      basic ethical conduct standards for public education employees who provide education-related
             33089      services outside of their regular employment to their current or prospective public school
             33090      students.
             33091          (2) The rules shall provide that a local school board may adopt policies implementing
             33092      the standards and addressing circumstances present in the district.
             33093          Section 725. Section 53A-1-408 is amended to read:
             33094           53A-1-408. Appropriations reallocation.
             33095          (1) Notwithstanding the requirements of [Title 63, Chapter 38] Title 63J, Chapter 1,
             33096      Budgetary Procedures Act, the State Board of Education may reallocate between line items
             33097      appropriations for the support of public education for the fiscal year beginning July 1, 2001 and

             33098      ending June 30, 2002:
             33099          (a) as described in Items 231 through 239 in Chapter 334, Laws of Utah 2001; and
             33100          (b) as modified by:
             33101          (i) Chapter 5, Laws of Utah First Special Session 2001;
             33102          (ii) H.B. 1, 2002 General Session; and
             33103          (iii) H.B. 3, 2002 General Session.
             33104          (2) The total amount of money reallocated under Subsection (1) may not exceed the
             33105      sum of the reductions made by H.B. 1, 2002 General Session, and H.B. 3, 2002 General
             33106      Session.
             33107          Section 726. Section 53A-1-611 is amended to read:
             33108           53A-1-611. Standards and assessment processes to measure student performance
             33109      -- Basic skills competency test.
             33110          (1) The Legislature recognizes the need for the State Board of Education to develop
             33111      and implement standards and assessment processes to ensure that student progress is measured
             33112      and that school boards and school personnel are accountable.
             33113          (2) (a) In addition to its responsibilities under Sections 53A-1-603 through 53A-1-605 ,
             33114      the State Board of Education, through the state superintendent of public instruction, shall
             33115      design a basic skills competency test to be administered in the tenth grade.
             33116          (b) A student must pass the basic skills competency test, in addition to the established
             33117      requirements of the state and local board of education of the district in which the student
             33118      attends school, in order to receive a basic high school diploma of graduation.
             33119          (c) The state board shall include in the test, at a minimum, components on English
             33120      language arts and reading and mathematics.
             33121          (d) A student who fails to pass all components of the test may not receive a basic high
             33122      school diploma but may receive a certificate of completion or alternative completion diploma
             33123      under rules made by the State Board of Education in accordance with [Title 63, Chapter 46a]
             33124      Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             33125          (e) The state board shall make rules:

             33126          (i) to allow students who initially fail the test to retake all or part of the test; and
             33127          (ii) that take into account and are consistent with federal law relating to students with
             33128      disabilities in the administration of the test.
             33129          (3) The state board shall implement the tenth grade basic skills competency test, no
             33130      later than the beginning of the 2003-04 school year.
             33131          (4) The requirements of this section are to be complementary to the other achievement
             33132      testing provisions of this part.
             33133          Section 727. Section 53A-1-612 is amended to read:
             33134           53A-1-612. Basic Skills Education Stipend Program.
             33135          (1) As used in this section:
             33136          (a) "Basic skills education" means individual or group instruction, including
             33137      assessments, designed to develop the skills and knowledge necessary to pass the Utah Basic
             33138      Skills Competency Test.
             33139          (b) "Basic skills provider" means:
             33140          (i) a school district;
             33141          (ii) a charter school;
             33142          (iii) an accredited public or private educational institution; or
             33143          (iv) other entity that meets board requirements pursuant to Subsection (12).
             33144          (c) "Program" means the Basic Skills Education Stipend Program.
             33145          (d) "Stipend recipient" means a student who receives a stipend under this section.
             33146          (e) "Utah Basic Skills Competency Test" or "UBSCT" means the basic skills
             33147      competency test administered to students pursuant to Section 53A-1-611 .
             33148          (2) The Basic Skills Education Stipend Program is created to provide students who
             33149      have not passed the UBSCT supplemental instruction in the skills and knowledge necessary to
             33150      pass the test.
             33151          (3) The State Board of Education shall administer the Basic Skills Education Stipend
             33152      Program.
             33153          (4) (a) A student may receive a stipend for basic skills education if:

             33154          (i) the student's score on one more subtests is below the midpoint of the partial mastery
             33155      range;
             33156          (ii) the student's parent or guardian is a Utah resident;
             33157          (iii) the student is enrolled full-time in a public school in the state; and
             33158          (iv) the student does not qualify for the Utah Alternative Assessment.
             33159          (b) A student who meets the criteria of Subsection (4)(a) may receive a stipend for
             33160      basic skills education in the subject of each subtest failed. Depending upon the number of
             33161      subtests failed, a student may receive one, two, or three stipends. A student may receive a
             33162      stipend only once for each subtest failed.
             33163          (5) Stipend amounts shall be based on a student's subtest score as follows:
             33164          (a) $500, if the student's subtest score was below the midpoint of the partial mastery
             33165      range but above the minimal mastery range;
             33166          (b) $1,000, if the student's subtest score was below the partial mastery range, but above
             33167      or at the midpoint of the minimal mastery range; or
             33168          (c) $1,500, if the student's subtest score was below the midpoint of the minimal mastery
             33169      range.
             33170          (6) A stipend recipient may apply for basic skills education from any basic skills
             33171      provider.
             33172          (7) Each basic skill provider shall accept stipend recipients on a first come/first served
             33173      basis.
             33174          (8) A stipend recipient shall give the following to the basic skills provider selected to
             33175      provide basic skills education:
             33176          (a) a voucher in the amount of the stipend which the basic skills educator may present
             33177      for payment by the board if the stipend recipient passes the subtest corresponding to the basic
             33178      skills education provided by the basic skills provider; and
             33179          (b) an authorization signed by the stipend recipient's parent or guardian for the stipend
             33180      recipient's school to release records of the stipend recipient to the basic skills provider, if the
             33181      basic skills provider is not the school district or charter school in which the stipend recipient is

             33182      enrolled.
             33183          (9) A basic skills provider who possesses a voucher shall receive payment from the
             33184      board in the amount of the stipend, if, on a subsequent administration of the UBSCT, the
             33185      stipend recipient passes the subtest corresponding to the basic skills education provided by the
             33186      basic skills provider.
             33187          (10) (a) A basic skills provider may charge a stipend recipient an amount in addition to
             33188      that paid by the board.
             33189          (b) The additional amount charged by a basic skills provider shall be:
             33190          (i) consistent with the restriction in Utah Constitution Article X, Section 2;
             33191          (ii) disclosed to the stipend recipient's parent or guardian when the stipend recipient
             33192      applies for basic skills education; and
             33193          (iii) reported to the board before receiving payment from the board.
             33194          (c) A basic skills provider may not make any additional charge or refund of a charge
             33195      contingent upon a stipend recipient's passing or failing a UBSCT subtest.
             33196          (11) (a) Stipends shall be awarded by the board subject to the availability of money
             33197      appropriated by the Legislature for that purpose.
             33198          (b) The Legislature shall annually appropriate money to the board from the General
             33199      Fund to make stipend payments.
             33200          (c) If monies are not available to pay for all stipends requested, the stipends shall be
             33201      allocated according to rules adopted by the State Board of Education.
             33202          (12) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             33203      Administrative Rulemaking Act, the State Board of Education shall make rules:
             33204          (a) establishing qualifications for basic skills providers who are not school districts, high
             33205      schools, or accredited public or private educational institutions;
             33206          (b) establishing procedures for the administration of the Basic Skills Education Stipend
             33207      Program; and
             33208          (c) requiring the parent or guardian of a stipend recipient who selects a basic skills
             33209      provider other than the school district or charter school in which the stipend recipient is enrolled

             33210      to sign:
             33211          (i) an acknowledgment that the school district or charter school is released from further
             33212      remediation responsibility for the stipend recipient; and
             33213          (ii) if the student has an IEP, an acknowledgment that offering a voucher to the basic
             33214      skill provider has the same effect as a parental refusal to consent to services pursuant to Section
             33215      614(a)(1) of the Individuals with Disabilities Education Act, 20 U.S.C. Sec. 1400 et seq.
             33216          (13) School districts and charter schools shall provide each student who qualifies for a
             33217      basic skills education stipend information about the Basic Skills Education Stipend Program,
             33218      including:
             33219          (a) voucher applications; and
             33220          (b) how to access a list of approved public and private providers.
             33221          Section 728. Section 53A-1-706 is amended to read:
             33222           53A-1-706. Purchases of educational technology.
             33223          (1) (a) A school district or college of education shall comply with [Title 63, Chapter 56]
             33224      Title 63G, Chapter 6, Utah Procurement Code, in purchasing technology, except as otherwise
             33225      provided in Subsection (1)(b).
             33226          (b) A school district may purchase computers from, and contract for the repair or
             33227      refurbishing of computers with, the Utah Correctional Industries without going through the
             33228      bidding or competition procedures outlined in [Title 63, Chapter 56] Title 63G, Chapter 6, Part
             33229      4, Source Selections and Contract Formation.
             33230          (2) A school district or college of education may purchase technology through
             33231      cooperative purchasing contracts administered by the state Division of Purchasing or through its
             33232      own established purchasing program.
             33233          Section 729. Section 53A-1a-508 is amended to read:
             33234           53A-1a-508. Content of a charter -- Modification of charter.
             33235          (1) The major issues involving the operation of a charter school shall be considered in
             33236      advance by the applicant for a charter school and written into the school's charter.
             33237          (2) The governing body of the charter school and the chartering entity shall sign the

             33238      charter.
             33239          (3) The charter shall include:
             33240          (a) the age or grade levels to be served by the school;
             33241          (b) the projected maximum number of students to be enrolled in the school and the
             33242      projected enrollment in each of the first three years of operations;
             33243          (c) the governance structure of the school;
             33244          (d) the financial plan for the school and the provisions which will be made for auditing
             33245      the school under Subsection 53A-1a-507 (4);
             33246          (e) the mission and education goals of the school, the curriculum offered, and the
             33247      methods of assessing whether students are meeting educational goals, to include at a minimum
             33248      participation in the Utah Performance Assessment System for Students under Chapter 1, Part 6,
             33249      Achievement Tests;
             33250          (f) admission and dismissal procedures, including suspension procedures;
             33251          (g) procedures to review complaints of parents regarding the operation of the school;
             33252          (h) the opportunity for parental involvement at the school;
             33253          (i) how the school will provide adequate liability and other appropriate insurance for the
             33254      school, its governing body, and its employees;
             33255          (j) the proposed school calendar, including the length of the school day and school year;
             33256          (k) whether any agreements have been entered into or plans developed with school
             33257      districts regarding participation of charter school students in extracurricular activities within the
             33258      school districts;
             33259          (l) the district within which the school will be located and the address of the school's
             33260      physical facility, if known at the time the charter is signed;
             33261          (m) the qualifications to be required of the teachers, including the requirement of a
             33262      criminal background check;
             33263          (n) in the case of an existing public school converting to charter status, alternative
             33264      arrangements for current students who choose not to attend the charter school and for current
             33265      teachers who choose not to teach at the school after its conversion to charter status;

             33266          (o) the school's intention to create a library;
             33267          (p) a description of school administrative and supervisory services;
             33268          (q) fiscal procedures to be used by the school; and
             33269          (r) the school's policies and procedures regarding:
             33270          (i) employee evaluation; and
             33271          (ii) employment of relatives.
             33272          (4) A charter may be modified by mutual agreement of the board and the governing
             33273      body of the school.
             33274          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             33275      Administrative Rulemaking Act, the State Board of Education shall make rules that establish the
             33276      procedures and deadlines for approved charter schools to apply and qualify for expansion,
             33277      including the establishment of satellite campuses.
             33278          Section 730. Section 53A-1a-509 is amended to read:
             33279           53A-1a-509. Noncompliance -- Rulemaking.
             33280          (1) (a) If a charter school is found to be out of compliance with the requirements of
             33281      Section 53A-1a-507 or the school's charter, the chartering entity shall notify the school's
             33282      governing board in writing that the school has a reasonable time to remedy the deficiency,
             33283      except as otherwise provided in Subsection 53A-1a-510 (3)(a).
             33284          (b) If the school does not remedy the deficiency within the established timeline, the
             33285      chartering entity may:
             33286          (i) remove a school director or finance officer;
             33287          (ii) remove governing board members;
             33288          (iii) appoint an interim director or mentor to work with the charter school; or
             33289          (iv) terminate the school's charter.
             33290          (c) The costs of an interim director or mentor appointed pursuant to Subsection (1)(b)
             33291      shall be paid from the funds of the charter school for which the interim director or mentor is
             33292      working.
             33293          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah

             33294      Administrative Rulemaking Act, the State Board of Education shall make rules:
             33295          (a) specifying the timeline for remedying deficiencies under Subsection (1)(a); and
             33296          (b) ensuring the compliance of a charter school with its approved charter.
             33297          Section 731. Section 53A-1a-510 is amended to read:
             33298           53A-1a-510. Termination of a charter.
             33299          (1) A chartering entity may terminate a school's charter for any of the following
             33300      reasons:
             33301          (a) failure of the school to meet the requirements stated in the charter;
             33302          (b) failure to meet generally accepted standards of fiscal management;
             33303          (c) subject to Subsection (6), failure to make adequate yearly progress under the No
             33304      Child Left Behind Act of 2001, 20 U.S.C. Sec. 6301 et seq.;
             33305          (d) violation of requirements under this part or another law; or
             33306          (e) other good cause shown.
             33307          (2) (a) The chartering entity shall notify the governing body of the school of the
             33308      proposed termination in writing, state the grounds for the termination, and stipulate that the
             33309      governing body may request an informal hearing before the chartering entity.
             33310          (b) The chartering entity shall conduct the hearing in accordance with [Title 63, Chapter
             33311      46b] Title 63G, Chapter 4, Administrative Procedures Act, within 30 days after receiving a
             33312      written request under Subsection (2)(a).
             33313          (c) If the chartering entity, by majority vote, approves a motion to terminate a charter
             33314      school, the governing body of the charter school may appeal the decision to the State Board of
             33315      Education.
             33316          (d) (i) The State Board of Education shall hear an appeal of a termination made
             33317      pursuant to Subsection (2)(c).
             33318          (ii) The State Board of Education's action is final action subject to judicial review.
             33319          (3) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             33320      Administrative Rulemaking Act, the State Board of Education shall make rules that require a
             33321      charter school to report any threats to the health, safety, or welfare of its students to the State

             33322      Charter School Board in a timely manner.
             33323          (b) The rules under Subsection (3)(a) shall also require the charter school report to
             33324      include what steps the charter school has taken to remedy the threat.
             33325          (4) The chartering entity may terminate a charter immediately if good cause has been
             33326      shown or if the health, safety, or welfare of the students at the school is threatened.
             33327          (5) If a charter is terminated during a school year:
             33328          (a) the school district in which the school is located may assume operation of the
             33329      school; or
             33330          (b) a private management company may be hired to operate the school.
             33331          (6) (a) If a charter is terminated, a student who attended the school may apply to and
             33332      shall be enrolled in another public school under the enrollment provisions of Title 53A, Chapter
             33333      2, Part 2, District of Residency, subject to space availability.
             33334          (b) Normal application deadlines shall be disregarded under Subsection (6)(a).
             33335          (7) A chartering entity may terminate a charter pursuant to Subsection (1)(c) under the
             33336      same circumstances that local educational agencies are required to implement alternative
             33337      governance arrangements under 20 U.S.C. Sec. 6316.
             33338          Section 732. Section 53A-1a-511 is amended to read:
             33339           53A-1a-511. Waivers from state board rules -- Application of statutes and rules
             33340      to charter schools.
             33341          (1) A charter school shall operate in accordance with its charter and is subject to Title
             33342      53A, State System of Public Education, and other state laws applicable to public schools,
             33343      except as otherwise provided in this part.
             33344          (2) (a) A charter school or any other public school or school district may apply to the
             33345      State Board of Education for a waiver of any state board rule that inhibits or hinders the school
             33346      or the school district from accomplishing its mission or educational goals set out in its strategic
             33347      plan or charter.
             33348          (b) The state board may grant the waiver, unless:
             33349          (i) the waiver would cause the school district or the school to be in violation of state or

             33350      federal law; or
             33351          (ii) the waiver would threaten the health, safety, or welfare of students in the district or
             33352      at the school.
             33353          (c) If the State Board of Education denies the waiver, the reason for the denial shall be
             33354      provided in writing to the waiver applicant.
             33355          (3) (a) Except as provided in Subsection (3)(b), State Board of Education rules
             33356      governing the following do not apply to a charter school:
             33357          (i) school libraries;
             33358          (ii) required school administrative and supervisory services; and
             33359          (iii) required expenditures for instructional supplies.
             33360          (b) A charter school shall comply with rules implementing statutes that prescribe how
             33361      state appropriations may be spent.
             33362          (4) The following provisions of Title 53A, State System of Public Education, and rules
             33363      adopted under those provisions, do not apply to a charter school:
             33364          (a) Sections 53A-1a-108 and 53A-1a-108.5 , requiring the establishment of a school
             33365      community council and school improvement plan;
             33366          (b) Sections 53A-3-413 and 53A-3-414 , pertaining to the use of school buildings as
             33367      civic centers;
             33368          (c) Section 53A-3-420 , requiring the use of activity disclosure statements;
             33369          (d) Section 53A-12-207 , requiring notification of intent to dispose of textbooks;
             33370          (e) Section 53A-13-107 , requiring annual presentations on adoption;
             33371          (f) Chapter 19, Part 1, Fiscal Procedures, pertaining to fiscal procedures of school
             33372      districts and local school boards; and
             33373          (g) Section 53A-14-107 , requiring an independent evaluation of instructional materials.
             33374          (5) For the purposes of [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement
             33375      Code, a charter school shall be considered a local public procurement unit.
             33376          (6) Each charter school shall be subject to:
             33377          (a) Title 52, Chapter 4, Open and Public Meetings Act; and

             33378          (b) [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             33379      Management Act.
             33380          (7) (a) The State Charter School Board shall, in concert with the charter schools, study
             33381      existing state law and administrative rules for the purpose of determining from which laws and
             33382      rules charter schools should be exempt.
             33383          (b) (i) The State Charter School Board shall present recommendations for exemption to
             33384      the State Board of Education for consideration.
             33385          (ii) The State Board of Education shall consider the recommendations of the State
             33386      Charter School Board and respond within 60 days.
             33387          Section 733. Section 53A-1a-513 is amended to read:
             33388           53A-1a-513. Funding for charter schools.
             33389          (1) (a) Charter schools shall receive funding as described in this section, except
             33390      Subsections (2) through (7) do not apply to charter schools described in Subsection (1)(b).
             33391          (b) Charter schools authorized by local school boards that are converted from district
             33392      schools or operate in district facilities without paying reasonable rent shall receive funding as
             33393      prescribed in Section 53A-1a-515 .
             33394          (2) (a) Except as provided in Subsection (2)(b), a charter school shall receive state
             33395      funds, as applicable, on the same basis as a school district receives funds.
             33396          (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program Act,
             33397      to charter schools, charter school pupils shall be weighted, where applicable, as follows:
             33398          (i) .55 for kindergarten pupils;
             33399          (ii) .9 for pupils in grades 1-6;
             33400          (iii) .99 for pupils in grades 7-8; and
             33401          (iv) 1.2 for pupils in grades 9-12.
             33402          (c) The State Board of Education shall make rules in accordance with [Title 63,
             33403      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer
             33404      Subsection (2)(b), including hold harmless provisions to maintain a charter elementary school's
             33405      funding level for a period of two years after the effective date of the distribution formula.

             33406          (d) Subsection (2)(b) does not apply to funds appropriated to charter schools to replace
             33407      local property tax revenues.
             33408          (3) The State Board of Education shall adopt rules to provide for the distribution of
             33409      monies to charter schools under this section.
             33410          (4) (a) The Legislature shall provide an appropriation for charter schools for each of
             33411      their students to replace some of the local property tax revenues that are not available to charter
             33412      schools. The amount of money provided for each charter school student shall be determined by:
             33413          (i) calculating the sum of:
             33414          (A) school districts' operations and maintenance revenues derived from local property
             33415      taxes, except revenues from imposing a minimum basic tax rate pursuant to Section
             33416      53A-17a-135 ;
             33417          (B) school districts' capital projects revenues derived from local property taxes; and
             33418          (C) school districts' expenditures for interest on debt; and
             33419          (ii) dividing the sum by the total average daily membership of the districts' schools.
             33420          (b) Of the monies provided to a charter school under Subsection (4)(a), 10% shall be
             33421      expended for funding school facilities only.
             33422          (c) To qualify for money under Subsection (4)(a), a new charter school shall, by
             33423      September 30 of the school year prior to the school year it intends to begin operations:
             33424          (i) obtain approval of its application for a charter from:
             33425          (A) the State Board of Education, pursuant to Section 53A-1a-505 ; or
             33426          (B) a local school board, pursuant to Section 53A-1a-515 ; and
             33427          (ii) submit to the chartering entity an estimate of the charter school's first year
             33428      enrollment.
             33429          (d) Subsection (4)(c) does not apply to charter schools beginning operations in the
             33430      2005-06 school year.
             33431          (e) By December 1, the State Charter School Board shall submit to the Governor's
             33432      Office of Planning and Budget and the Office of the Legislative Fiscal Analyst an estimate of
             33433      total charter school enrollment in the state for the following school year.

             33434          (5) Charter schools are eligible to receive federal funds if they meet all applicable
             33435      federal requirements and comply with relevant federal regulations.
             33436          (6) The State Board of Education shall distribute funds for charter school students
             33437      directly to the charter school.
             33438          (7) (a) Notwithstanding Subsection (2), a charter school is not eligible to receive state
             33439      transportation funding.
             33440          (b) The board shall also adopt rules relating to the transportation of students to and
             33441      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
             33442          (c) The governing body of the charter school may provide transportation through an
             33443      agreement or contract with the local school board, a private provider, or with parents.
             33444          (8) (a) (i) The state superintendent of public instruction may allocate grants for both
             33445      start-up and ongoing costs to eligible charter school applicants from monies appropriated for
             33446      the implementation of this part.
             33447          (ii) Applications for the grants shall be filed on a form determined by the state
             33448      superintendent and in conjunction with the application for a charter.
             33449          (iii) The amount of a grant may vary based upon the size, scope, and special
             33450      circumstances of the charter school.
             33451          (iv) The governing board of the charter school shall use the grant to meet the expenses
             33452      of the school as established in the school's charter.
             33453          (b) The State Board of Education shall coordinate the distribution of federal monies
             33454      appropriated to help fund costs for establishing and maintaining charter schools within the state.
             33455          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             33456      endowment, gift, or donation of any property made to the school for any of the purposes of this
             33457      part.
             33458          (b) It is unlawful for any person affiliated with a charter school to demand or request
             33459      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             33460      with the charter school as a condition for employment or enrollment at the school or continued
             33461      attendance at the school.

             33462          (10) The State Office of Education shall use up to $1,044,000 of funding provided for
             33463      new growth to fund additional growth needs in charter schools in fiscal year 2005.
             33464          Section 734. Section 53A-1a-601 is amended to read:
             33465           53A-1a-601. Job enhancements for mathematics, science, technology, and special
             33466      education training.
             33467          (1) As used in this part, "special education teacher" includes occupational therapist.
             33468          (2) The Public Education Job Enhancement Program is established to attract, train, and
             33469      retain highly qualified:
             33470          (a) secondary teachers with expertise in mathematics, physics, chemistry, physical
             33471      science, learning technology, or information technology;
             33472          (b) special education teachers; and
             33473          (c) teachers in grades four through six with mathematics endorsements.
             33474          (3) The program shall provide for the following:
             33475          (a) application by a school district superintendent or the principal of a school on behalf
             33476      of a qualified teacher;
             33477          (b) an award of up to $20,000 or a scholarship to cover the tuition costs for a master's
             33478      degree, an endorsement, or graduate education in the areas identified in Subsection (2) to be
             33479      given to selected public school teachers on a competitive basis:
             33480          (i) whose applications are approved under Subsection 53A-1a-602 (4); and
             33481          (ii) who teach in the state's public education system for four years in the areas identified
             33482      in Subsection (2);
             33483          (c) (i) as to the cash awards under Subsection (3)(b), payment of the award in two
             33484      installments, with an initial payment of up to $10,000 at the beginning of the term and up to
             33485      $10,000 at the conclusion of the term;
             33486          (ii) repayment of a portion of the initial payment by the teacher if the teacher fails to
             33487      complete two years of the four-year teaching term in the areas identified in Subsection (2) as
             33488      provided by rule of the State Board of Education in accordance with [Title 63, Chapter 46a]
             33489      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, unless waived for good cause by

             33490      the Job Enhancement Committee created in Section 53A-1a-602 ; and
             33491          (iii) nonpayment of the second installment if the teacher fails to complete the four-year
             33492      teaching term; and
             33493          (d) (i) as to the scholarships awarded under Subsection (3)(b), provision for the
             33494      providing institution to certify adequate performance in obtaining the master's degree,
             33495      endorsement, or graduate education in order for the teacher to maintain the scholarship; and
             33496          (ii) repayment by the teacher of a prorated portion of the scholarship, if the teacher fails
             33497      to complete the authorized classes or program or to teach in the state system of public
             33498      education in the areas identified in Subsection (2) for four years after obtaining the master's
             33499      degree, the endorsement, or graduate education.
             33500          (4) An individual teaching in the public schools under a letter of authorization may
             33501      participate in the cash award program if:
             33502          (a) the individual has taught under the letter of authorization for at least one year in the
             33503      areas referred to in Subsection (2); and
             33504          (b) the application made under Subsection (3)(a) is based in large part upon the
             33505      individual receiving a superior evaluation as a classroom teacher.
             33506          (5) (a) The program may provide for the expenditure of up to $1,000,000 of available
             33507      monies, if at least an equal amount of matching monies become available, to provide
             33508      professional development training to superintendents, administrators, and principals in the
             33509      effective use of technology in public schools.
             33510          (b) An award granted under this Subsection (5) shall be made in accordance with
             33511      criteria developed and adopted by the Job Enhancement Committee created in Section
             33512      53A-1a-602 .
             33513          (c) An amount up to $120,000 of the $1,000,000 authorized in Subsection (5)(a) may
             33514      be expended, regardless of the matching monies being available.
             33515          Section 735. Section 53A-1a-602 is amended to read:
             33516           53A-1a-602. Job Enhancement Committee -- Composition -- Duties --
             33517      Appropriation.

             33518          (1) There is created a Job Enhancement Committee to implement and administer the
             33519      Public Education Job Enhancement Program established in Section 53A-1a-601 .
             33520          (2) (a) The committee shall consist of:
             33521          (i) two members of the State Board of Education selected by the board;
             33522          (ii) two members of the State Board of Regents selected by the board;
             33523          (iii) six members of the general public who have business experience in mathematics,
             33524      physics, chemistry, physical science, learning technology, or information technology selected by
             33525      the governor;
             33526          (iv) a master high school teacher, who has teaching experience in mathematics, physics,
             33527      chemistry, physical science, learning technology, or information technology, selected by the
             33528      superintendent of public instruction;
             33529          (v) a master special education teacher, selected by the superintendent of public
             33530      instruction; and
             33531          (vi) a master teacher in grades four through six with a mathematics endorsement,
             33532      selected by the superintendent of public instruction.
             33533          (b) Committee members shall receive no compensation or benefits for their service on
             33534      the committee, but may receive per diem and expenses incurred in the performance of their
             33535      duties at rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             33536          (3) (a) The committee shall receive and review applications submitted for participation
             33537      in the Public Education Job Enhancement Program established under Section 53A-1a-601 .
             33538          (b) In reviewing applications, the committee shall focus on:
             33539          (i) the prioritized critical areas of need identified under Subsection (5)(a); and
             33540          (ii) the awards being made on a competitive basis.
             33541          (c) If the committee approves an application received under Subsection (3)(a), it shall
             33542      contract directly with the teacher applicant to receive the award or the scholarship for a master's
             33543      degree, an endorsement, or graduate education, subject to Section 53A-1a-601 .
             33544          (d) The State Board of Education, through the superintendent of public instruction,
             33545      shall provide staff support for the committee and adequate and reliable data on the state's supply

             33546      of and demand for qualified:
             33547          (i) secondary teachers with expertise in mathematics, physics, chemistry, physical
             33548      science, learning technologies, or information technology;
             33549          (ii) special education teachers; and
             33550          (iii) teachers in grades four through six with mathematics endorsements.
             33551          (4) The committee may apply for grants and matching monies to enhance funding
             33552      available for the program established in Section 53A-1a-601 .
             33553          (5) The committee shall make a rule in accordance with [Title 63, Chapter 46a] Title
             33554      63G, Chapter 3, Utah Administrative Rulemaking Act, establishing policies and procedures for:
             33555          (a) making the awards and offering the scholarships in accordance with prioritized
             33556      critical areas of need as determined by the committee;
             33557          (b) timelines for the submission and approval of applications under Subsection (3); and
             33558          (c) the distribution of the awards and scholarships to successful applicants based on
             33559      available monies provided by legislative appropriation.
             33560          (6) Subject to future budget constraints, the Legislature shall make an annual
             33561      appropriation to the State Board of Education to fund the Public Education Job Enhancement
             33562      Program established under Section 53A-1a-601 .
             33563          Section 736. Section 53A-1a-707 is amended to read:
             33564           53A-1a-707. Board to make rules.
             33565          In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             33566      Rulemaking Act, the board shall make rules consistent with this part establishing:
             33567          (1) the eligibility of students to participate in the scholarship program; and
             33568          (2) the application process for the scholarship program.
             33569          Section 737. Section 53A-1a-808 is amended to read:
             33570           53A-1a-808. Board to make rules.
             33571          (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             33572      Administrative Rulemaking Act, the board shall make rules consistent with this part:
             33573          (a) establishing the application process for the scholarship program, including

             33574      procedures to allow a parent to apply for a scholarship online;
             33575          (b) establishing how the income of a scholarship student's parents shall be determined
             33576      and verified; and
             33577          (c) implementing Section 53A-1a-807 .
             33578          (2) By May 15, 2007, the board shall adopt rules establishing:
             33579          (a) the application process for private schools and scholarship students; and
             33580          (b) how the income of a scholarship student's parents shall be determined.
             33581          Section 738. Section 53A-1a-902 is amended to read:
             33582           53A-1a-902. Voluntary extended-day kindergarten program.
             33583          (1) If funds are appropriated for this purpose, the State Board of Education shall
             33584      allocate available funds, consistent with Section 53A-1a-903 , to charter schools and school
             33585      districts that apply to offer extended-day kindergarten.
             33586          (2) A school district shall coordinate program application, funding, administration, and
             33587      reporting for its schools that participate in the program.
             33588          (3) A charter school or school district:
             33589          (a) may not require a student to participate in extended-day kindergarten;
             33590          (b) shall continue to offer part-day kindergarten for students not participating in the
             33591      program; and
             33592          (c) shall continue to honor the provisions of any preexisting contractual agreement
             33593      related to other early intervention programs offered at the school site, through the remaining
             33594      term of the contract.
             33595          (4) A charter school or school district that receives funds under this part shall:
             33596          (a) annually conduct a kindergarten readiness assessment for incoming kindergarten
             33597      students prior to the beginning of the school year;
             33598          (b) ensure that:
             33599          (i) a majority of students enrolled in an extended-day kindergarten class under this part
             33600      are students who have the greatest need for additional instruction, as determined by the
             33601      kindergarten readiness assessment; and

             33602          (ii) an extended-day kindergarten class does not have more enrolled students than other
             33603      kindergarten classes in the school;
             33604          (c) utilize allocated funds to establish extended-day kindergarten in the schools with
             33605      greatest need as measured by the percentage of students eligible for free lunch; and
             33606          (d) annually report to the State Board of Education regarding:
             33607          (i) the number of students served;
             33608          (ii) the specific results achieved by the program, including any standardized testing or
             33609      district-directed assessment;
             33610          (iii) challenges encountered in administering the program and suggestions for
             33611      improvement; and
             33612          (iv) specific accountability for and tracking of the voluntary extended-day kindergarten
             33613      program dollars each year.
             33614          (5) Until 2012, the superintendent of public instruction shall annually report to the
             33615      Education Interim Committee on the program, including a summary of information reported
             33616      under Subsection (4)(d).
             33617          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             33618      Administrative Rulemaking Act, and consistent with this part, the State Board of Education
             33619      shall make rules establishing application and reporting procedures necessary to administer this
             33620      part.
             33621          Section 739. Section 53A-2-123 is amended to read:
             33622           53A-2-123. Notice before preparing or amending a long-range plan or acquiring
             33623      certain property.
             33624          (1) As used in this section:
             33625          (a) "Affected entity" means each county, municipality, local district under Title 17B,
             33626      Limited Purpose Local Government Entities - Local Districts, special service district under Title
             33627      17A, Chapter 2, Part 13, Utah Special Service District Act, interlocal cooperation entity
             33628      established under Title 11, Chapter 13, Interlocal Cooperation Act, and specified public utility:
             33629          (i) whose services or facilities are likely to require expansion or significant modification

             33630      because of an intended use of land; or
             33631          (ii) that has filed with the school district a copy of the general or long-range plan of the
             33632      county, municipality, local district, special service district, school district, interlocal cooperation
             33633      entity, or specified public utility.
             33634          (b) "Specified public utility" means an electrical corporation, gas corporation, or
             33635      telephone corporation, as those terms are defined in Section 54-2-1 .
             33636          (2) (a) If a school district located in a county of the first or second class prepares a
             33637      long-range plan regarding its facilities proposed for the future or amends an already existing
             33638      long-range plan, the school district shall, before preparing a long-range plan or amendments to
             33639      an existing long-range plan, provide written notice, as provided in this section, of its intent to
             33640      prepare a long-range plan or to amend an existing long-range plan.
             33641          (b) Each notice under Subsection (2)(a) shall:
             33642          (i) indicate that the school district intends to prepare a long-range plan or to amend a
             33643      long-range plan, as the case may be;
             33644          (ii) describe or provide a map of the geographic area that will be affected by the
             33645      long-range plan or amendments to a long-range plan;
             33646          (iii) be sent to:
             33647          (A) each county in whose unincorporated area and each municipality in whose
             33648      boundaries is located the land on which the proposed long-range plan or amendments to a
             33649      long-range plan are expected to indicate that the proposed facilities will be located;
             33650          (B) each affected entity;
             33651          (C) the Automated Geographic Reference Center created in Section 63F-1-506 ;
             33652          (D) each association of governments, established pursuant to an interlocal agreement
             33653      under Title 11, Chapter 13, Interlocal Cooperation Act, of which a county or municipality
             33654      described in Subsection (2)(b)(iii)(A) is a member; and
             33655          (E) the state planning coordinator appointed under Section [ 63-38d-202 ] 63J-4-202 ;
             33656          (iv) with respect to the notice to counties and municipalities described in Subsection
             33657      (2)(b)(iii)(A) and affected entities, invite them to provide information for the school district to

             33658      consider in the process of preparing, adopting, and implementing the long-range plan or
             33659      amendments to a long-range plan concerning:
             33660          (A) impacts that the use of land proposed in the proposed long-range plan or
             33661      amendments to a long-range plan may have on the county, municipality, or affected entity; and
             33662          (B) uses of land that the county, municipality, or affected entity is planning or
             33663      considering that may conflict with the proposed long-range plan or amendments to a long-range
             33664      plan; and
             33665          (v) include the address of an Internet website, if the school district has one, and the
             33666      name and telephone number of a person where more information can be obtained concerning the
             33667      school district's proposed long-range plan or amendments to a long-range plan.
             33668          (3) (a) Except as provided in Subsection (3)(d), each school district intending to
             33669      acquire real property in a county of the first or second class for the purpose of expanding the
             33670      district's infrastructure or other facilities shall provide written notice, as provided in this
             33671      Subsection (3), of its intent to acquire the property if the intended use of the property is
             33672      contrary to:
             33673          (i) the anticipated use of the property under the county or municipality's general plan; or
             33674          (ii) the property's current zoning designation.
             33675          (b) Each notice under Subsection (3)(a) shall:
             33676          (i) indicate that the school district intends to acquire real property;
             33677          (ii) identify the real property; and
             33678          (iii) be sent to:
             33679          (A) each county in whose unincorporated area and each municipality in whose
             33680      boundaries the property is located; and
             33681          (B) each affected entity.
             33682          (c) A notice under this Subsection (3) is a protected record as provided in Subsection
             33683      [ 63-2-304 ] 63G-2-305 (7).
             33684          (d) (i) The notice requirement of Subsection (3)(a) does not apply if the school district
             33685      previously provided notice under Subsection (2) identifying the general location within the

             33686      municipality or unincorporated part of the county where the property to be acquired is located.
             33687          (ii) If a school district is not required to comply with the notice requirement of
             33688      Subsection (3)(a) because of application of Subsection (3)(d)(i), the school district shall provide
             33689      the notice specified in Subsection (3)(a) as soon as practicable after its acquisition of the real
             33690      property.
             33691          Section 740. Section 53A-2-206 is amended to read:
             33692           53A-2-206. Interstate compact students -- Inclusion in attendance count --
             33693      Funding for foreign exchange students -- Annual report -- Requirements for exchange
             33694      student agencies.
             33695          (1) A school district or charter school may include the following students in the
             33696      district's or school's membership and attendance count for the purpose of apportionment of state
             33697      monies:
             33698          (a) a student enrolled under an interstate compact, established between the State Board
             33699      of Education and the state education authority of another state, under which a student from one
             33700      compact state would be permitted to enroll in a public school in the other compact state on the
             33701      same basis as a resident student of the receiving state; or
             33702          (b) a student receiving services under the Compact on Placement of Children.
             33703          (2) (a) A school district or charter school may include foreign exchange students in the
             33704      district's or school's membership and attendance count for the purpose of apportionment of state
             33705      monies, except as provided in Subsections (2)(b) through (e).
             33706          (b) (i) Notwithstanding Section 53A-17a-106 , foreign exchange students may not be
             33707      included in average daily membership for the purpose of determining the number of weighted
             33708      pupil units in the grades 1-12 basic program.
             33709          (ii) Subject to the limitation in Subsection (2)(c), the number of weighted pupil units in
             33710      the grades 1-12 basic program attributed to foreign exchange students shall be equal to the
             33711      number of foreign exchange students who were:
             33712          (A) enrolled in a school district or charter school on October 1 of the previous fiscal
             33713      year; and

             33714          (B) sponsored by an agency approved by the district's local school board or charter
             33715      school's governing board.
             33716          (c) (i) The total number of foreign exchange students in the state that may be counted
             33717      for the purpose of apportioning state monies under Subsection (2)(b) shall be the lesser of:
             33718          (A) the number of foreign exchange students enrolled in public schools in the state on
             33719      October 1 of the previous fiscal year; or
             33720          (B) 328 foreign exchange students.
             33721          (ii) The State Board of Education shall make rules in accordance with [Title 63,
             33722      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer the cap
             33723      on the number of foreign exchange students that may be counted for the purpose of
             33724      apportioning state monies under Subsection (2)(b).
             33725          (d) Notwithstanding Sections 53A-17a-133 and 53A-17a-134 , weighted pupil units in
             33726      the grades 1-12 basic program for foreign exchange students, as determined by Subsections
             33727      (2)(b) and (c), may not be included for the purposes of determining a school district's state
             33728      guarantee money under the voted or board leeway programs.
             33729          (e) Notwithstanding Section 53A-17a-125 , foreign exchange students may not be
             33730      included in enrollment when calculating student growth for the purpose of adjusting the annual
             33731      appropriation for retirement and Social Security.
             33732          (3) A school district or charter school may:
             33733          (a) enroll foreign exchange students that do not qualify for state monies; and
             33734          (b) pay for the costs of those students with other funds available to the school district
             33735      or charter school.
             33736          (4) Due to the benefits to all students of having the opportunity to become familiar with
             33737      individuals from diverse backgrounds and cultures, school districts are encouraged to enroll
             33738      foreign exchange students, as provided in Subsection (3), particularly in schools with declining
             33739      or stable enrollments where the incremental cost of enrolling the foreign exchange student may
             33740      be minimal.
             33741          (5) The board shall make an annual report to the Legislature on the number of exchange

             33742      students and the number of interstate compact students sent to or received from public schools
             33743      outside the state.
             33744          (6) (a) A local school board or charter school governing board shall require each
             33745      approved exchange student agency to provide it with a sworn affidavit of compliance prior to
             33746      the beginning of each school year.
             33747          (b) The affidavit shall include the following assurances:
             33748          (i) that the agency has complied with all applicable policies of the board;
             33749          (ii) that a household study, including a background check of all adult residents, has been
             33750      made of each household where an exchange student is to reside, and that the study was of
             33751      sufficient scope to provide reasonable assurance that the exchange student will receive proper
             33752      care and supervision in a safe environment;
             33753          (iii) that host parents have received training appropriate to their positions, including
             33754      information about enhanced criminal penalties under Subsection 76-5-406 (10) for persons who
             33755      are in a position of special trust;
             33756          (iv) that a representative of the exchange student agency shall visit each student's place
             33757      of residence at least once each month during the student's stay in Utah;
             33758          (v) that the agency will cooperate with school and other public authorities to ensure
             33759      that no exchange student becomes an unreasonable burden upon the public schools or other
             33760      public agencies;
             33761          (vi) that each exchange student will be given in the exchange student's native language
             33762      names and telephone numbers of agency representatives and others who could be called at any
             33763      time if a serious problem occurs; and
             33764          (vii) that alternate placements are readily available so that no student is required to
             33765      remain in a household if conditions appear to exist which unreasonably endanger the student's
             33766      welfare.
             33767          (7) (a) A local school board or charter school governing board shall provide each
             33768      approved exchange student agency with a list of names and telephone numbers of individuals
             33769      not associated with the agency who could be called by an exchange student in the event of a

             33770      serious problem.
             33771          (b) The agency shall make a copy of the list available to each of its exchange students in
             33772      the exchange student's native language.
             33773          Section 741. Section 53A-3-303 is amended to read:
             33774           53A-3-303. Duties of business administrator.
             33775          Subject to the direction of the district superintendent of schools, the district's business
             33776      administrator shall:
             33777          (1) attend all meetings of the board, keep an accurate record of its proceedings, and
             33778      have custody of the seal and records;
             33779          (2) be custodian of all district funds, be responsible and accountable for all money
             33780      received and disbursed, and keep accurate records of all revenues received and their sources;
             33781          (3) countersign with the president of the board all warrants and claims against the
             33782      district as well as other legal documents approved by the board;
             33783          (4) prepare and submit to the board each month a written report of the district's receipts
             33784      and expenditures;
             33785          (5) use uniform budgeting, accounting, and auditing procedures and forms approved by
             33786      the State Board of Education, which shall be in accordance with generally accepted accounting
             33787      principles or auditing standards and [Title 63, Chapter 38] Title 63J, Chapter 1, Utah Budgetary
             33788      Procedures Act;
             33789          (6) prepare and submit to the board a detailed annual statement for the period ending
             33790      June 30, of the revenue and expenditures, including beginning and ending fund balances;
             33791          (7) assist the superintendent in the preparation and submission of budget documents and
             33792      statistical and fiscal reports required by law or the State Board of Education;
             33793          (8) insure that adequate internal controls are in place to safeguard the district's funds;
             33794      and
             33795          (9) perform other duties as the superintendent may require.
             33796          Section 742. Section 53A-3-402.11 is amended to read:
             33797           53A-3-402.11. Reading Performance Improvement Scholarship Program.

             33798          (1) There is established a Reading Performance Improvement Scholarship Program to
             33799      assist selected elementary teachers in obtaining a reading endorsement so that they may help
             33800      improve the reading performance of students in their classes.
             33801          (2) The State Board of Education shall award scholarships of up to $500 to each
             33802      recipient under the program.
             33803          (3) The board shall give weighted consideration to scholarship applicants who:
             33804          (a) teach in grades kindergarten through three;
             33805          (b) are designated by their schools as, or are seeking the designation of, reading
             33806      specialist; and
             33807          (c) teach in a rural area of the state.
             33808          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             33809      Administrative Rulemaking Act, the board shall provide by rule for:
             33810          (a) the application procedure for the scholarship; and
             33811          (b) what constitutes a reading specialist at the elementary school level.
             33812          Section 743. Section 53A-3-424 is amended to read:
             33813           53A-3-424. Rulemaking -- Reporting.
             33814          The State Office of Education may make rules in accordance with [Title 63, Chapter
             33815      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, regarding compliance
             33816      standards and reporting requirements for local school boards with respect to the policy required
             33817      by Section 53A-3-422 .
             33818          Section 744. Section 53A-3-702 is amended to read:
             33819           53A-3-702. Professional development pilot program.
             33820          (1) A pilot program is created to evaluate the effects on student academic achievement
             33821      of reducing the minimum school term established by the State Board of Education by up to 22
             33822      hours for the purpose of conducting professional development for instructional staff.
             33823          (2) To participate in the pilot program, a local school board shall submit a plan to a
             33824      community council for approval before submission to the State Board of Education that
             33825      includes the following information:

             33826          (a) the schools intending to participate in the pilot program;
             33827          (b) the revised school schedule;
             33828          (c) a description of the professional development activities;
             33829          (d) the expected outcomes from the professional development, including measurable
             33830      academic achievement goals; and
             33831          (e) the method of evaluating the effectiveness of the professional development.
             33832          (3) The State Board of Education shall determine the maximum number of school
             33833      districts and schools that may participate in the pilot program.
             33834          (4) The State Board of Education shall make rules, in accordance with [Title 63,
             33835      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the
             33836      implementation of the pilot program.
             33837          (5) The State Board of Education shall submit to the Education Interim Committee:
             33838          (a) preliminary findings from the pilot program by October 1, 2006; and
             33839          (b) a final report and recommendations for expansion of the program by October 1,
             33840      2007.
             33841          Section 745. Section 53A-6-103 is amended to read:
             33842           53A-6-103. Definitions.
             33843          As used in this chapter:
             33844          (1) "Accredited institution" means an institution meeting the requirements of Section
             33845      53A-6-107 .
             33846          (2) (a) "Alternative preparation program" means preparation for licensure in accordance
             33847      with applicable law and rule through other than an approved preparation program.
             33848          (b) "Alternative preparation program" includes the competency-based licensing program
             33849      described in Section 53A-6-104.5 .
             33850          (3) "Ancillary requirement" means a requirement established by law or rule in addition
             33851      to completion of an approved preparation program or alternative education program or
             33852      establishment of eligibility under the NASDTEC Interstate Contract, and may include any of the
             33853      following:

             33854          (a) minimum grade point average;
             33855          (b) standardized testing or assessment;
             33856          (c) mentoring;
             33857          (d) recency of professional preparation or experience;
             33858          (e) graduation from an accredited institution; or
             33859          (f) evidence relating to moral, ethical, physical, or mental fitness.
             33860          (4) "Approved preparation program" means a program for preparation of educational
             33861      personnel offered through an accredited institution in Utah or in a state which is a party to a
             33862      contract with Utah under the NASDTEC Interstate Contract and which, at the time the program
             33863      was completed by the applicant:
             33864          (a) was approved by the governmental agency responsible for licensure of educators in
             33865      the state in which the program was provided;
             33866          (b) satisfied requirements for licensure in the state in which the program was provided;
             33867          (c) required completion of a baccalaureate; and
             33868          (d) included a supervised field experience.
             33869          (5) "Board" means the Utah State Board of Education.
             33870          (6) "Certificate" means a license issued by a governmental jurisdiction outside the state.
             33871          (7) "Core academic subjects" means English, reading or language arts, mathematics,
             33872      science, foreign languages, civics and government, economics, arts, history, and geography.
             33873          (8) "Educator" means:
             33874          (a) a person who holds a license;
             33875          (b) a teacher, counselor, administrator, librarian, or other person required, under rules
             33876      of the board, to hold a license; or
             33877          (c) a person who is the subject of an allegation which has been received by the board or
             33878      UPPAC and was, at the time noted in the allegation, a license holder or a person employed in a
             33879      position requiring licensure.
             33880          (9) (a) "Endorsement" means a stipulation appended to a license setting forth the areas
             33881      of practice to which the license applies.

             33882          (b) An endorsement shall be issued upon completion of a competency-based teacher
             33883      preparation program from a regionally accredited university that meets state content standards.
             33884          (10) "License" means an authorization issued by the board which permits the holder to
             33885      serve in a professional capacity in the public schools. The five levels of licensure are:
             33886          (a) "letter of authorization," which is:
             33887          (i) a temporary license issued to a person who has not completed requirements for a
             33888      competency-based, or level 1, 2, or 3 license, such as:
             33889          (A) a student teacher; or
             33890          (B) a person participating in an alternative preparation program; or
             33891          (ii) a license issued, pursuant to board rules, to a person who has achieved eminence, or
             33892      has outstanding qualifications, in a field taught in public schools;
             33893          (b) "competency-based license" which is issued to a teacher based on the teacher's
             33894      demonstrated teaching skills and abilities;
             33895          (c) "level 1 license," which is a license issued upon completion of:
             33896          (i) a competency-based teacher preparation program from a regionally accredited
             33897      university; or
             33898          (ii) an approved preparation program or an alternative preparation program, or
             33899      pursuant to an agreement under the NASDTEC Interstate Contract, to candidates who have
             33900      also met all ancillary requirements established by law or rule;
             33901          (d) "level 2 license," which is a license issued after satisfaction of all requirements for a
             33902      level 1 license as well as any additional requirements established by law or rule relating to
             33903      professional preparation or experience; and
             33904          (e) "level 3 license," which is a license issued to an educator who holds a current Utah
             33905      level 2 license and has also received, in the educator's field of practice, National Board
             33906      certification or a doctorate from an accredited institution.
             33907          (11) "NASDTEC" means the National Association of State Directors of Teacher
             33908      Education and Certification.
             33909          (12) "NASDTEC Interstate Contract" means the contract implementing Title 53A,

             33910      Chapter 6, Part 2, Compact for Interstate Qualification of Educational Personnel, which is
             33911      administered through NASDTEC.
             33912          (13) "National Board certification" means a current certificate issued by the National
             33913      Board for Professional Teaching Standards.
             33914          (14) "Necessarily existent small school" means a school classified as a necessarily
             33915      existent small school in accordance with Section 53A-17a-109 .
             33916          (15) "Office" means the Utah State Office of Education.
             33917          (16) "Rule" means an administrative rule adopted by the board under [Title 63, Chapter
             33918      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             33919          (17) "School" means a public or private entity which provides educational services to a
             33920      minor child.
             33921          (18) "Small school district" means a school district with an enrollment of less than
             33922      5,000 students.
             33923          (19) "UPPAC" means the Utah Professional Practices Advisory Commission.
             33924          Section 746. Section 53A-6-105 is amended to read:
             33925           53A-6-105. Licensing fees -- Credit to subfund -- Payment of expenses.
             33926          (1) The board shall levy a fee for each new, renewed, or reinstated license or
             33927      endorsement in accordance with Section [ 63-38-3.2 ] 63J-1-303 .
             33928          (2) Fee payments are credited to the Professional Practices Restricted Subfund in the
             33929      Uniform School Fund.
             33930          (3) The board shall pay the expenses of issuing licenses and of UPPAC operations, and
             33931      the costs of collecting license fees from the restricted subfund.
             33932          (4) The office shall submit an annual report to the Legislature's Public Education
             33933      Appropriations Subcommittee informing the Legislature about the fund, fees assessed and
             33934      collected, and expenditures from the fund.
             33935          Section 747. Section 53A-6-112 is amended to read:
             33936           53A-6-112. Grants for licensed teachers.
             33937          (1) As used in this section:

             33938          (a) "Licensed teacher" means a teacher who holds:
             33939          (i) a level 1, level 2, or level 3 license; and
             33940          (ii) the endorsements required by board rule for the teacher's assignments.
             33941          (b) "National Board certification" means a current certificate issued by the National
             33942      Board for Professional Teaching Standards.
             33943          (2) A grant program is created to minimize out-of-pocket expenses of licensed teachers
             33944      to:
             33945          (a) obtain National Board certification; or
             33946          (b) take tests to meet federal highly qualified teacher standards as defined in 20 U.S.C.
             33947      Sec. 7801.
             33948          (3) The State Board of Education shall give grants to school districts and charter
             33949      schools for the purpose stated in Subsection (2) from monies appropriated by the Legislature
             33950      for that purpose.
             33951          (4) To receive a grant, a school district or charter school shall provide matching funds
             33952      to minimize out-of-pocket expenses of licensed teachers to obtain National Board certification
             33953      or to take tests to meet federal highly qualified teacher standards in an amount equal to the
             33954      grant.
             33955          (5) Grant monies and matching funds shall be used to pay for costs of licensed teachers
             33956      that are directly related to:
             33957          (a) obtaining National Board certification; or
             33958          (b) taking tests that, if the licensed teacher passes, the teacher meets federal highly
             33959      qualified teacher standards.
             33960          (6) The State Board of Education shall distribute money appropriated by the
             33961      Legislature to school districts and charter schools to pay for costs of licensed teachers directly
             33962      related to obtaining National Board certification or taking tests to meet federal highly qualified
             33963      teacher standards in accordance with:
             33964          (a) Subsection (4); and
             33965          (b) a formula adopted by the board, after consultation with school districts and charter

             33966      schools, that allocates the funding in a fair and equitable manner.
             33967          (7) The State Board of Education shall make rules in accordance with [Title 63,
             33968      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer this
             33969      section.
             33970          Section 748. Section 53A-6-503 is amended to read:
             33971           53A-6-503. Reimbursement of legal fees and costs to educators.
             33972          (1) As used in this section:
             33973          (a) "Action" means any action, except those referred to in Section [ 63-30a-2 ] 52-6-201 ,
             33974      brought against an educator by an individual or entity other than:
             33975          (i) the entity who licenses the educator; and
             33976          (ii) the school district that employs the educator or employed the educator at the time
             33977      of the alleged act or omission.
             33978          (b) "Educator" means an individual who holds or is required to hold a license under this
             33979      chapter and is employed by a school district located within the state.
             33980          (c) "School district" includes the Schools for the Deaf and the Blind and the state's
             33981      applied technology centers.
             33982          (2) Except as otherwise provided in Section [ 63-30a-2 ] 52-6-201 , an educator is
             33983      entitled to recover reasonable attorneys' fees and costs incurred in [his] the educator's defense
             33984      against an individual or entity who initiates an action against the educator if:
             33985          (a) the action is brought for any act or omission of the educator during the performance
             33986      of the educator's duties within the scope of the educator's employment; and
             33987          (b) it is dismissed or results in findings favorable to the educator.
             33988          (3) An educator who recovers under this section is also entitled to recover reasonable
             33989      attorneys' fees and costs necessarily incurred by the educator in recovering the attorneys' fees
             33990      and costs allowed under Subsection (2).
             33991          Section 749. Section 53A-11-102.5 is amended to read:
             33992           53A-11-102.5. Dual enrollment.
             33993          (1) A person having control of a minor under this part who is enrolled in a regularly

             33994      established private school or a home school may also enroll the minor in a public school for dual
             33995      enrollment purposes.
             33996          (2) The minor may participate in any academic activity in the public school available to
             33997      students in the minor's grade or age group, subject to compliance with the same rules and
             33998      requirements that apply to a full-time student's participation in the activity.
             33999          (3) Except as otherwise provided in Sections 53A-11-101.5 and 53A-11-102 , a student
             34000      enrolled in a public school may also be enrolled in a private school or a home school for dual
             34001      enrollment purposes.
             34002          (4) A student enrolled in a dual enrollment program is considered a student of the
             34003      district in which the public school of attendance is located for purposes of state funding to the
             34004      extent of the student's participation in the public school programs.
             34005          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             34006      Administrative Rulemaking Act, the State Board of Education shall make rules for purposes of
             34007      dual enrollment to govern and regulate the transferability of credits toward graduation that are
             34008      earned in a private or home school.
             34009          (6) The State Board of Education shall determine the policies and procedures necessary
             34010      to permit students enrolled under Subsection (1) to participate in public school extracurricular
             34011      activities.
             34012          Section 750. Section 53A-12-103 is amended to read:
             34013           53A-12-103. Waiver of fees.
             34014          (1) (a) A local school board shall require, as part of an authorization granted under
             34015      Section 53A-12-102 , that adequate waivers or other provisions are available to ensure that no
             34016      student is denied the opportunity to participate because of an inability to pay the required fee,
             34017      deposit, or charge.
             34018          (b) (i) If, however, a student must repeat a course or requires remediation to advance or
             34019      graduate and a fee is associated with the course or the remediation program, it is presumed that
             34020      the student will pay the fee.
             34021          (ii) If the student or the student's parent or guardian is financially unable to pay the fee,

             34022      the board shall provide for alternatives to waiving the fee, which may include installment
             34023      payments and school or community service or work projects for the student.
             34024          (iii) In cases of extreme financial hardship or where the student has suffered a long-term
             34025      illness, or death in the family, or other major emergency and where installment payments and the
             34026      imposition of a service or work requirement would not be reasonable, the student may receive a
             34027      partial or full waiver of the fee required under Subsection (1)(b)(i).
             34028          (iv) The waiver provisions in Subsections (2) and (3) apply to all other fees, deposits,
             34029      and charges made in the secondary schools.
             34030          (2) (a) The board shall require each school in the district that charges a fee under this
             34031      chapter to provide a variety of alternatives for satisfying the fee requirement to those who
             34032      qualify for fee waivers, in addition to the outright waiver of the fee.
             34033          (b) The board shall develop and provide a list of alternatives for the schools, including
             34034      such options as allowing the student to provide:
             34035          (i) tutorial assistance to other students;
             34036          (ii) assistance before or after school to teachers and other school personnel on school
             34037      related matters; and
             34038          (iii) general community or home service.
             34039          (c) Each school may add to the list of alternatives provided by the board, subject to
             34040      approval by the board.
             34041          (3) A local school board may establish policies providing for partial fee waivers or other
             34042      alternatives for those students who, because of extenuating circumstances, are not in a financial
             34043      position to pay the entire fee.
             34044          (4) With regard to children who are in the custody of the Division of Child and Family
             34045      Services who are also eligible under Title IV-E of the federal Social Security Act, local school
             34046      boards shall require fee waivers or alternatives in accordance with Subsections (1) through (3).
             34047          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             34048      Administrative Rulemaking Act, the State Board of Education shall make rules:
             34049          (a) requiring a parent or guardian of a student applying for a fee waiver to provide

             34050      documentation and certification to the school verifying:
             34051          (i) the student's eligibility to receive the waiver; and
             34052          (ii) that the alternatives for satisfying the fee requirements under Subsection (2) have
             34053      been complied with to the fullest extent reasonably possible according to the individual
             34054      circumstances of both the fee waiver applicant and the school; and
             34055          (b) specifying the acceptable forms of documentation for the requirement under
             34056      Subsection (5)(a), which shall include verification based on income tax returns or current pay
             34057      stubs.
             34058          (6) Notwithstanding the requirements under Subsection (5), a school is not required to
             34059      keep documentation on file after the verification is completed.
             34060          Section 751. Section 53A-13-101.6 is amended to read:
             34061           53A-13-101.6. Instruction on the flag of the United States of America.
             34062          (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             34063      Administrative Rulemaking Act, the State Board of Education shall provide by rule for a
             34064      program of instruction within the public schools relating to the flag of the United States.
             34065          (2) The instruction shall include the history of the flag, etiquette, customs pertaining to
             34066      the display and use of the flag, and other patriotic exercises as provided by Sections 36 U.S.C.
             34067      170 to 177.
             34068          (3) (a) The pledge of allegiance to the flag shall be recited:
             34069          (i) at the beginning of the day in each elementary public school in the state; and
             34070          (ii) once a week at the beginning of a school day in each public secondary school in the
             34071      state.
             34072          (b) Each student shall be informed by posting a notice in a conspicuous place that the
             34073      student has the right not to participate in reciting the pledge.
             34074          (c) A student shall be excused from reciting the pledge upon written request from the
             34075      student's parent or legal guardian.
             34076          Section 752. Section 53A-13-106 is amended to read:
             34077           53A-13-106. Instruction in firearm safety -- Purpose -- School districts to

             34078      implement volunteer education classes -- Parental consent exception.
             34079          (1) (a) School districts may permit the use of district approved volunteers or school
             34080      district teachers for instruction of firearm safety education classes for students.
             34081          (b) The volunteers or school district teachers instructing the firearm safety education
             34082      class are encouraged to utilize donated materials prepared by firearms training and education
             34083      organizations or to develop their own materials within existing budgets.
             34084          (2) The purpose of firearm safety education is to:
             34085          (a) develop the knowledge, habits, skills, and attitudes necessary for the safe handling
             34086      of firearms; and
             34087          (b) help students avoid firearm injuries.
             34088          (3) School districts may offer firearm safety instruction to students in grades
             34089      kindergarten through four to teach them that in order to avoid injury when they find a firearm
             34090      they should:
             34091          (a) not touch it;
             34092          (b) tell an adult about finding the firearm and its location; and
             34093          (c) be able to share the instruction provided in Subsections (3)(a) and (b) with any other
             34094      minors who are with them when they find a firearm.
             34095          (4) As used in this chapter, "firearm" means any firearm as defined in Section
             34096      76-10-501 .
             34097          (5) The State Board of Education shall make rules promulgated pursuant to [Title 63,
             34098      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for:
             34099          (a) use of certified volunteers for instruction of firearm safety education classes in the
             34100      public schools;
             34101          (b) use of public school classrooms or auditoriums for these classes;
             34102          (c) school district review of donated materials before their use; and
             34103          (d) proof of certification as a firearm safety instructor.
             34104          (6) (a) A local school board may require every student in grades kindergarten through
             34105      six to participate in a firearm safety education class offered within the public schools under this

             34106      section.
             34107          (b) A student may be exempted from participation upon notification to the local school
             34108      by the student's parent or legal guardian that the parent or legal guardian wants the student
             34109      exempted from the class in its entirety or any portion specified.
             34110          (7) If a student is exempted under Subsection (6), the school may provide other
             34111      activities during the period of time in which the student would otherwise be participating in the
             34112      program.
             34113          (8) The school districts may permit the Division of Wildlife Resources, local law
             34114      enforcement agencies, peace officers as defined in Title 53, Chapter 13, Peace Officer
             34115      Classifications, certified instructors, certified hunter education instructors, and other certified
             34116      firearms safety instructors, as provided by rules adopted under Subsection (5)(a) to teach the
             34117      firearm safety education class on a voluntary basis.
             34118          (9) The school district is encouraged to maximize the use of existing firearm safety
             34119      educational materials which are available at minimal or no cost and the use of certified volunteer
             34120      instructors.
             34121          (10) The school district may review the class on a regular basis for its effectiveness.
             34122          Section 753. Section 53A-13-201 is amended to read:
             34123           53A-13-201. Driver education established by school districts.
             34124          (1) As used in this part:
             34125          (a) "Driver education" includes classroom instruction and driving and observation in a
             34126      dual-controlled motor vehicle.
             34127          (b) "Driving" or "behind-the-wheel driving" means operating a dual-controlled motor
             34128      vehicle under the supervision of a certified instructor.
             34129          (2) (a) Local school districts may establish and maintain driver education for pupils.
             34130          (b) A school or local school district that provides driver education shall provide an
             34131      opportunity for each pupil enrolled in that school or local school district to take the written test
             34132      when the pupil is 15 years and nine months of age.
             34133          (c) Notwithstanding the provisions of Subsection (2)(b), a school or local school

             34134      district that provides driver education may provide an opportunity for each pupil enrolled in that
             34135      school or school district to take the written test when the pupil is 15 years of age.
             34136          (3) The purpose of driver education is to help develop the knowledge, attitudes, habits,
             34137      and skills necessary for the safe operation of motor vehicles.
             34138          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             34139      Administrative Rulemaking Act, the State Board of Education shall make rules for driver
             34140      education offered in the public schools.
             34141          (5) The rules under Subsection (4) shall:
             34142          (a) require at least one hour of classroom training on the subject of railroad crossing
             34143      safety for each driver education pupil; and
             34144          (b) establish minimum standards for approved driving ranges under Section 53-3-505.5 .
             34145          (6) The requirements of Section 53-3-505.5 apply to any behind-the-wheel driving
             34146      training provided as part of driver education offered under this part and used to satisfy the
             34147      driver training requirement under Section 53-3-204 .
             34148          Section 754. Section 53A-13-208 is amended to read:
             34149           53A-13-208. Driver education teachers certified as license examiners.
             34150          (1) The Driver License Division of the Department of Public Safety and the State Board
             34151      of Education through the State Office of Education shall establish procedures and standards to
             34152      certify teachers of driver education classes under this part to administer written and driving
             34153      tests.
             34154          (2) The division is the certifying authority.
             34155          (3) (a) A teacher certified under this section shall give written and driving tests designed
             34156      for driver education classes authorized under this part.
             34157          (b) The Driver License Division shall, in conjunction with the State Office of Education,
             34158      establish minimal standards for the driver education class tests that are at least as difficult as
             34159      those required to receive a class D operator's license under Title 53, Chapter 3, Uniform Drivers
             34160      License Act.
             34161          (c) A student who passes the written test but fails the driving test given by a teacher

             34162      certified under this section may apply for a learner permit or class D operator's license under
             34163      Title 53, Chapter 3, Part 2, Driver Licensing Act, and complete the driving test at a Driver
             34164      License Division office.
             34165          (4) A student shall have a learner permit issued by the Driver License Division under
             34166      Section 53-3-210.5 in the student's immediate possession at all times when operating a motor
             34167      vehicle under this section.
             34168          (5) A student who successfully passes the tests given by a certified driver education
             34169      teacher under this section satisfies the written and driving parts of the test required for a learner
             34170      permit or class D operator's license.
             34171          (6) The Driver License Division and the State Board of Education shall establish
             34172      procedures to enable school districts to administer or process any tests for students to receive a
             34173      learner permit or class D operator's license.
             34174          (7) The division and board shall establish the standards and procedures required under
             34175      this section by rules made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             34176      Utah Administrative Rulemaking Act.
             34177          Section 755. Section 53A-13-209 is amended to read:
             34178           53A-13-209. Programs authorized -- Minimum standards.
             34179          (1) Local school districts may:
             34180          (a) allow students to complete the classroom training portion of driver education
             34181      through the following programs:
             34182          (i) home study; or
             34183          (ii) the electronic high school;
             34184          (b) provide each parent with driver education instructional materials to assist in parent
             34185      involvement with driver education including behind-the-wheel driving materials;
             34186          (c) offer driver education outside of school hours in order to reduce the cost of
             34187      providing driver education;
             34188          (d) offer driver education through community education programs;
             34189          (e) offer the classroom portion of driver education in the public schools and allow the

             34190      student to complete the behind-the-wheel portion with a private provider:
             34191          (i) licensed under Section 53-3-504 ; and
             34192          (ii) not associated with the school or under contract with the school under Subsection
             34193      53A-13-202 (3); or
             34194          (f) any combination of Subsections (1)(a) through (e).
             34195          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             34196      Administrative Rulemaking Act, the State Board of Education shall establish minimum
             34197      standards for the school-related programs under Subsection (1).
             34198          Section 756. Section 53A-15-101.5 is amended to read:
             34199           53A-15-101.5. Concurrent enrollment instruction in Mandarin Chinese.
             34200          (1) (a) As used in this section, "category IV languages" means those languages
             34201      designated the most difficult to learn by the Defense Language Institute as provided in training
             34202      to members of the United States Military.
             34203          (b) The Legislature recognizes:
             34204          (i) the importance of students acquiring skills in foreign languages in order for them to
             34205      successfully compete in a global society; and
             34206          (ii) that the acquisition of category IV languages, such as Mandarin Chinese, Arabic,
             34207      Korean, and Japanese, by students in the state's public schools requires extended sequences of
             34208      study to acquire useful proficiency in listening, speaking, reading, and writing.
             34209          (2) (a) As a component of the concurrent enrollment program authorized under Section
             34210      53A-15-101 , the State Board of Education and the State Board of Regents, in consultation with
             34211      the Utah Education Network, may develop and implement a concurrent enrollment course of
             34212      study in the category IV language of Mandarin Chinese.
             34213          (b) The course shall be taught over EDNET, the state's two-way interactive system for
             34214      video and audio, to high school juniors and seniors in the state's public education system.
             34215          (3) (a) The concurrent enrollment course in Mandarin Chinese authorized in Subsection
             34216      (2) may use paraprofessionals in the classroom who:
             34217          (i) are fluent in Mandarin Chinese; and

             34218          (ii) can provide reinforcement and tutoring to students on days and at times when they
             34219      are not receiving instruction over EDNET under Subsection (2)(b).
             34220          (b) The State Board of Education, through the State Superintendent of Public
             34221      Instruction, and professors who teach Chinese in the state system of higher education shall
             34222      jointly ensure that the paraprofessionals are fluent in Mandarin Chinese.
             34223          (4) The State Board of Education and the State Board of Regents shall make joint rules
             34224      on the concurrent enrollment course authorized under this section in accordance with [Title 63,
             34225      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to include:
             34226          (a) notification to school districts on the times and places of the course offerings; and
             34227          (b) instructional materials for the course.
             34228          (5) Students who successfully complete the concurrent enrollment course offered under
             34229      this section shall receive tuition reimbursement for a sequential Mandarin Chinese course they
             34230      successfully complete at an institution within the state system of higher education under rules
             34231      made by the State Board of Regents in accordance with [Title 63, Chapter 46a] Title 63G,
             34232      Chapter 3, Utah Administrative Rulemaking Act.
             34233          (6) The State Board of Education and the State Board of Regents shall jointly track and
             34234      monitor the Mandarin Chinese language program and may expand the program to include other
             34235      category IV languages, subject to student demand for the courses and available resources.
             34236          Section 757. Section 53A-15-104 is amended to read:
             34237           53A-15-104. Critical Languages Program -- Pilot.
             34238          (1) (a) As used in this section, "critical languages" means those languages described in
             34239      the federal National Security Language Initiative, including Chinese, Arabic, Russian, Farsi,
             34240      Hindi, and Korean.
             34241          (b) The Legislature recognizes:
             34242          (i) the importance of students acquiring skills in foreign languages in order for them to
             34243      successfully compete in a global society; and
             34244          (ii) the academic, societal, and economic development benefits of the acquisition of
             34245      critical languages.

             34246          (2) (a) The State Board of Education, in consultation with the Utah Education
             34247      Network, shall develop and implement courses of study in the critical languages.
             34248          (b) A course may be taught:
             34249          (i) over EDNET, the state's two-way interactive system for video and audio, to students
             34250      in the state's public education system; or
             34251          (ii) through the Electronic High School.
             34252          (3) (a) The courses authorized in Subsection (2) may use paraprofessionals in the
             34253      classroom who:
             34254          (i) are fluent in the critical language being taught; and
             34255          (ii) can provide reinforcement and tutoring to students on days and at times when they
             34256      are not receiving instruction over EDNET under Subsection (2)(b).
             34257          (b) The State Board of Education, through the state superintendent of public
             34258      instruction, shall ensure that the paraprofessionals are fluent in the critical languages.
             34259          (4) The State Board of Education shall make rules on the critical languages courses
             34260      authorized under this section in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             34261      Utah Administrative Rulemaking Act, to include:
             34262          (a) notification to school districts on the times and places of the course offerings; and
             34263          (b) instructional materials for the courses.
             34264          (5) The State Board of Education shall track and monitor the Critical Languages
             34265      Program and may expand the program to include more course offerings and other critical
             34266      languages, subject to student demand for the courses and available resources.
             34267          (6) Subject to funding for the program, the State Board of Education shall establish a
             34268      pilot program for school districts and schools to initially participate in the Critical Languages
             34269      Program that provides:
             34270          (a) $6,000 per language per school, for up to 20 schools, for courses offered in critical
             34271      languages;
             34272          (b) $100 per student who completes a critical languages course; and
             34273          (c) an additional $400 per foreign exchange student who completes a critical languages

             34274      course.
             34275          Section 758. Section 53A-16-101.5 is amended to read:
             34276           53A-16-101.5. School LAND Trust Program -- Purpose -- Distribution of funds --
             34277      School plans for use of funds.
             34278          (1) There is established the School LAND (Learning And Nurturing Development)
             34279      Trust Program for the state's public schools to provide financial resources to enhance or
             34280      improve student academic achievement and implement a component of the school improvement
             34281      plan.
             34282          (2) (a) The program shall be funded each fiscal year:
             34283          (i) from the Interest and Dividends Account created in Section 53A-16-101 ; and
             34284          (ii) in the amount of the sum of the following:
             34285          (A) the interest and dividends from the investment of monies in the permanent State
             34286      School Fund deposited to the Interest and Dividends Account in the immediately preceding
             34287      year; and
             34288          (B) interest accrued on monies in the Interest and Dividends Account in the
             34289      immediately preceding fiscal year.
             34290          (b) On and after July 1, 2003, the program shall be funded as provided in Subsection
             34291      (2)(a) up to a maximum of an amount equal to 2% of the funds provided for the Minimum
             34292      School Program, pursuant to Title 53A, Chapter 17a, Minimum School Program Act, each
             34293      fiscal year.
             34294          (c) The Legislature shall annually allocate, through an appropriation to the State Board
             34295      of Education, a portion of School LAND Trust Program monies for the administration of the
             34296      program.
             34297          (3) (a) The State Board of Education shall allocate the monies referred to in Subsection
             34298      (2) annually for the fiscal year beginning July 1, 2000, and for each fiscal year thereafter as
             34299      follows:
             34300          (i) school districts shall receive 10% of the funds on an equal basis; and
             34301          (ii) the remaining 90% of the funds shall be distributed on a per student basis, with each

             34302      district receiving its allocation based on the number of students in the district as compared to
             34303      the state total.
             34304          (b) Each school district shall distribute its allocation under Subsection (3)(a) to each
             34305      school within the district on an equal per student basis.
             34306          (c) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             34307      Administrative Rulemaking Act, the board may make rules regarding the time and manner in
             34308      which the student count shall be made for allocation of the monies.
             34309          (4) Except as provided in Subsection (7), in order to receive its allocation under
             34310      Subsection (3), a school shall have established a school community council under Section
             34311      53A-1a-108 .
             34312          (5) (a) The school community council or its subcommittee shall develop a program to
             34313      use its allocation under Subsection (3) to implement a component of the school's improvement
             34314      plan, including:
             34315          (i) the school's identified most critical academic needs;
             34316          (ii) a recommended course of action to meet the identified academic needs;
             34317          (iii) a specific listing of any programs, practices, materials, or equipment which the
             34318      school will need to implement a component of its school improvement plan to have a direct
             34319      impact on the instruction of students and result in measurable increased student performance;
             34320      and
             34321          (iv) how the school intends to spend its allocation of funds under this section to
             34322      enhance or improve academic excellence at the school.
             34323          (b) The school may develop a multiyear program, but the program shall be presented
             34324      and approved by the school community council and the local school board of the district in
             34325      which the school is located annually and as a prerequisite to receiving program funds allocated
             34326      under this section.
             34327          (6) (a) Each school shall:
             34328          (i) implement the program as approved by the school community council and approved
             34329      by the local school board;

             34330          (ii) provide ongoing support for the council's or its subcommittee's program;
             34331          (iii) meet school board reporting requirements regarding financial and performance
             34332      accountability of the program; and
             34333          (iv) publicize to its patrons and the general public on how the funds it received under
             34334      this section were used to enhance or improve academic excellence at the school and implement
             34335      a component of the school's improvement plan, including the results of those efforts.
             34336          (b) (i) Each school through its council or its subcommittee shall prepare and present an
             34337      annual report of the program to its local school board at the end of the school year.
             34338          (ii) The report shall detail the use of program funds received by the school under this
             34339      section and an assessment of the results obtained from the use of the funds.
             34340          (7) (a) The governing board of a charter school shall prepare a plan for the use of
             34341      school trust monies that includes the elements listed in Subsection (5).
             34342          (b) The plan shall be subject to approval by the entity that authorized the establishment
             34343      of the charter school.
             34344          (8) (a) A school community council and a governing board of a charter school may not
             34345      be required to:
             34346          (i) send a letter to legislators or other elected officials on the school's use of School
             34347      LAND Trust Program monies as a condition of receiving the monies; or
             34348          (ii) report to the State Board of Education or any local school board on whether any
             34349      letters were sent to legislators or other elected officials on the school's use of School LAND
             34350      Trust Program monies.
             34351          (b) Subsection (8)(a)(i) does not apply to the annual report to the local school board
             34352      required by Subsection (6)(b).
             34353          Section 759. Section 53A-17a-105 is amended to read:
             34354           53A-17a-105. Action required for underestimated or overestimated weighted
             34355      pupil units -- Action required for underestimating or overestimating local contributions.
             34356          (1) If the number of weighted pupil units in a program is underestimated in Section
             34357      53A-17a-104 , the amount per pupil in that program paid under this chapter must be reduced so

             34358      that the amount paid does not exceed the estimated amount by program.
             34359          (2) If the number of weighted pupil units in a program is overestimated in Section
             34360      53A-17a-104 , the state superintendent of public instruction shall either increase the amount paid
             34361      in that program per weighted pupil unit or transfer the unused amount in that program to
             34362      another program included in the minimum school program.
             34363          (3) (a) If surplus funds are transferred to another program, the state superintendent, if
             34364      [he] the state superintendent determines certain districts have greater need for additional funds,
             34365      may designate the districts as well as the programs to which the transferred funds will be
             34366      allocated.
             34367          (b) Any amounts transferred under Subsection (3)(a) may be spent in addition to the
             34368      amounts listed in Section 53A-17a-104 .
             34369          (4) The limitation on the proceeds from local tax rates for operation and maintenance
             34370      programs under this chapter is subject to modification by local school boards under Sections
             34371      53A-17a-133 and 53A-17a-134 and to special tax rates authorized by this chapter, and shall be
             34372      adjusted accordingly.
             34373          (5) If local contributions are overestimated, the guarantee per weighted pupil unit is
             34374      reduced for all programs so the total state contribution for operation and maintenance programs
             34375      does not exceed the amount authorized in Subsection 53A-17a-104 (1).
             34376          (6) (a) If local contributions from the basic tax rate for operation and maintenance
             34377      programs are underestimated, the excess is applied first to support the value of the weighted
             34378      pupil unit as set by the Legislature for total weighted pupil units generated by the districts and
             34379      those costs of Social Security and retirement, transportation, and board and voted leeway that
             34380      occur as a result of the additional generated weighted pupil units, following internal adjustments
             34381      by the state superintendent as provided in this section.
             34382          (b) The state contribution is decreased so the total school program cost for operation
             34383      and maintenance programs does not exceed the total estimated contributions to school districts
             34384      for all programs under Subsection 53A-17a-104 (2) plus the amount of local revenue necessary
             34385      to support the value of the weighted pupil unit for weighted pupil units generated and those

             34386      costs of Social Security and retirement, transportation, and board and voted leeway that occur
             34387      as a result of the additional generated weighted pupil units.
             34388          (7) As an exception to Section [ 63-38-8 ] 63J-1-401 , the state fiscal officer may not
             34389      close out appropriations from the Uniform School Fund at the end of a fiscal year.
             34390          Section 760. Section 53A-17a-107 is amended to read:
             34391           53A-17a-107. Professional staff weighted pupil units.
             34392          (1) Professional staff weighted pupil units are computed and distributed in accordance
             34393      with the following schedule:
             34394          (a) Professional Staff Cost Formula
             34395                                           Master's
             34396      Years of        Bachelor's    Bachelor's    Master's     Degree    
             34397      Experience         Degree    +30 Qt. Hr.     Degree     +45 Qt. Hr.    Doctorate
             34398          1         1.00         1.05     1.10         1.15        
             34399      1.20
             34400          2         1.05         1.10     1.15         1.20        
             34401      1.25
             34402          3         1.10         1.15     1.20         1.25        
             34403      1.30
             34404          4         1.15         1.20     1.25         1.30        
             34405      1.35
             34406          5         1.20         1.25     1.30         1.35        
             34407      1.40
             34408          6         1.25         1.30     1.35         1.40        
             34409      1.45
             34410          7         1.30         1.35     1.40         1.45        
             34411      1.50
             34412          8         1.35         1.40     1.45         1.50        
             34413      1.55

             34414          9                           1.50         1.55        
             34415      1.60
             34416          10                                    1.60        
             34417      1.65
             34418          11                                         1.70
             34419          (b) Multiply the number of full-time or equivalent professional personnel in each
             34420      applicable experience category in Subsection (1)(a) by the applicable weighting factor.
             34421          (c) Divide the total of Subsection (1)(b) by the number of professional personnel
             34422      included in Subsection (1)(b) and reduce the quotient by 1.00.
             34423          (d) Multiply the result of Subsection (1)(c) by 1/4 of the weighted pupil units computed
             34424      in accordance with Sections 53A-17a-106 and 53A-17a-109 .
             34425          (2) The State Board of Education shall enact rules in accordance with [Title 63,
             34426      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, which require a
             34427      certain percentage of a district's professional staff to be certified in the area in which they teach
             34428      in order for the district to receive full funding under the schedule.
             34429          (3) If an individual's teaching experience is a factor in negotiating a contract of
             34430      employment to teach in the state's public schools, then the local school board is encouraged to
             34431      accept as credited experience all of the years the individual has taught in the state's public
             34432      schools.
             34433          Section 761. Section 53A-17a-111 is amended to read:
             34434           53A-17a-111. Weighted pupil units for programs for students with disabilities --
             34435      District allocation.
             34436          (1) The number of weighted pupil units for students with disabilities shall reflect the
             34437      direct cost of programs for those students conducted in accordance with rules established by the
             34438      State Board of Education in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             34439      Utah Administrative Rulemaking Act.
             34440          (2) Disability program monies allocated to districts are restricted and shall be spent for
             34441      the education of students with disabilities but may include expenditures for approved programs

             34442      of services conducted for certified instructional personnel who have students with disabilities in
             34443      their classes.
             34444          (3) The State Board of Education shall establish and strictly interpret definitions and
             34445      provide standards for determining which students have disabilities and shall assist districts in
             34446      determining the services that should be provided to students with disabilities.
             34447          (4) Each year the board shall evaluate the standards and guidelines that establish the
             34448      identifying criteria for disability classifications to assure strict compliance with those standards
             34449      by the districts.
             34450          (5) (a) Monies appropriated to the State Board of Education in Section 53A-17a-104
             34451      for add-on WPUs for students with disabilities enrolled in regular programs shall be allocated to
             34452      school districts as provided in this Subsection (5).
             34453          (b) Beginning on July 1, 2003, the State Board of Education shall:
             34454          (i) use a district's average number of special education add-on weighted pupil units
             34455      determined by the previous five year's average daily membership data as a foundation for the
             34456      special education add-on appropriation; and
             34457          (ii) implement a hold harmless provision for up to three years as needed to accomplish a
             34458      phase-in period for school districts to accommodate the change in the special education add-on
             34459      WPUs foundation formula.
             34460          (c) A district's special education add-on WPUs for the current year may not be less than
             34461      the foundation special education add-on WPUs.
             34462          (d) Growth WPUs shall be added to the prior year special education add-on WPUs, and
             34463      growth WPUs shall be determined as follows:
             34464          (i) The special education student growth factor is calculated by comparing S-3 total
             34465      special education ADM of two years previous to the current year to the S-3 total special
             34466      education ADM three years previous to the current year, not to exceed the official October total
             34467      district growth factor from the prior year.
             34468          (ii) When calculating and applying the growth factor, a district's S-3 total special
             34469      education ADM for a given year is limited to 12.18% of the district's S-3 total student ADM for

             34470      the same year.
             34471          (iii) Growth ADMs are calculated by applying the growth factor to the S-3 total special
             34472      education ADM of two years previous to the current year.
             34473          (iv) Growth ADMs for each district are multiplied by 1.53 weighted pupil units and
             34474      added to the prior year special education add-on WPU to determine each district's total
             34475      allocation.
             34476          (6) If monies appropriated under this chapter for programs for students with disabilities
             34477      do not meet the costs of districts for those programs, each district shall first receive the amount
             34478      generated for each student with a disability under the basic program.
             34479          Section 762. Section 53A-17a-120 is amended to read:
             34480           53A-17a-120. Appropriation for accelerated learning programs.
             34481          (1) Money appropriated to the State Board of Education in Section 53A-17a-104 for
             34482      accelerated learning programs shall be allocated to local school boards and charter schools for
             34483      the following programs:
             34484          (a) programs in grades 1-12 for the gifted and talented; and
             34485          (b) advanced placement.
             34486          (2) (a) Districts shall spend monies for these programs according to rules established by
             34487      the State Board of Education in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             34488      Utah Administrative Rulemaking Act.
             34489          (b) The State Board of Education shall develop uniform and consistent policies for
             34490      school districts to follow in utilizing advanced placement monies.
             34491          Section 763. Section 53A-17a-121 is amended to read:
             34492           53A-17a-121. Appropriation for at-risk programs.
             34493          (1) Money appropriated to the State Board of Education in Section 53A-17a-104 for
             34494      at-risk programs shall be allocated to local school boards for the following programs:
             34495          (a) youth in custody;
             34496          (b) homeless and disadvantaged minority students;
             34497          (c) mathematics, engineering, and science achievement programs;

             34498          (d) gang prevention and intervention; and
             34499          (e) at-risk flow through.
             34500          (2) Districts shall spend monies for these programs according to rules established by the
             34501      State Board of Education in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             34502      Utah Administrative Rulemaking Act.
             34503          (3) (a) From the amount appropriated for youth at risk programs, the board shall
             34504      allocate moneys to school districts for homeless and disadvantaged minority students.
             34505          (b) Each district shall receive its allocation on the basis of:
             34506          (i) the total number of homeless students in the district;
             34507          (ii) added to 50% of the number of disadvantaged minority students in the district;
             34508          (iii) multiplying the total of Subsections (3)(b)(i) and (ii) by the value of the weighted
             34509      pupil unit; and
             34510          (iv) prorating the amount under Subsection (3)(b)(iii) to the amount in Subsection
             34511      (3)(a).
             34512          (4) (a) From the amount appropriated for at-risk programs, the board shall allocate
             34513      monies for mathematics, engineering, and science achievement programs, MESA programs, in
             34514      the districts.
             34515          (b) The board shall make the distribution to school districts on a competitive basis by
             34516      application under guidelines established by the board.
             34517          (5) (a) From the amount appropriated for at-risk programs, the board shall distribute
             34518      moneys for gang prevention and intervention programs at the district or school level.
             34519          (b) The board shall make the distribution to school districts under guidelines established
             34520      by the board consistent with Section 53A-15-601 .
             34521          (6) (a) From the amount appropriated for at-risk programs, the board shall distribute
             34522      moneys for programs for youth in custody.
             34523          (b) The board shall allocate these moneys to school districts which operate programs
             34524      for youth in custody in accordance with standards established by the board.
             34525          (7) From the amount appropriated for at-risk programs, the board shall allocate monies

             34526      based on:
             34527          (a) a formula which takes into account prior year WPU's per district and a district's low
             34528      income population; and
             34529          (b) a minimum base of no less than $18,600 for small school districts.
             34530          Section 764. Section 53A-17a-131.9 is amended to read:
             34531           53A-17a-131.9. Agencies coming together for children and youth at risk.
             34532          (1) Monies appropriated to or received by the State Board of Education to maintain
             34533      [Title 63, Chapter 75] Title 63M, Chapter 9, Families, Agencies, and Communities Together for
             34534      Children and Youth At Risk Act, shall be subject to the provisions of this section.
             34535          (2) Participation in the at risk programs funded under this section shall require consent
             34536      from a parent or legal guardian for the participant to receive initial or continuing services under
             34537      the program.
             34538          (3) A participant's parent or legal guardian shall be actively involved in the program and
             34539      all applicable state and federal laws and regulations shall be observed by the entities and
             34540      individuals providing the services.
             34541          (4) The board shall use the appropriation to experiment on a community full-service
             34542      delivery system level to provide data on the merits of moving the concept to a fully implemented
             34543      statewide system.
             34544          Section 765. Section 53A-17a-131.15 is amended to read:
             34545           53A-17a-131.15. State contribution for the Electronic High School.
             34546          Money appropriated to the State Board of Education in Section 53A-17a-104 for the
             34547      Electronic High School shall be distributed to the school according to rules established by the
             34548      board in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             34549      Rulemaking Act.
             34550          Section 766. Section 53A-17a-131.17 is amended to read:
             34551           53A-17a-131.17. State contribution for School LAND Trust Program.
             34552          (1) If the amount of money prescribed for funding the School LAND Trust Program in
             34553      Section 53A-16-101.5 is less than or greater than the money appropriated in Section

             34554      53A-17a-104 for the School LAND Trust Program, the appropriation shall be equal to the
             34555      amount of money prescribed for funding the School LAND Trust Program in Section
             34556      53A-16-101.5 , up to a maximum of an amount equal to 2% of the funds provided for the
             34557      Minimum School Program, pursuant to Title 53A, Chapter 17a, Minimum School Program Act.
             34558          (2) The State Board of Education shall distribute the money appropriated in Subsection
             34559      (1) in accordance with Section 53A-16-101.5 and rules established by the board in accordance
             34560      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             34561          Section 767. Section 53A-17a-153 is amended to read:
             34562           53A-17a-153. Educator salary adjustments.
             34563          (1) As used in this section, "educator" means a person employed by a school district,
             34564      charter school, or the Utah Schools for the Deaf and the Blind who holds:
             34565          (a) a license issued under Title 53A, Chapter 6, Educator Licensing and Professional
             34566      Practices Act; and
             34567          (b) a position as a:
             34568          (i) classroom teacher;
             34569          (ii) speech pathologist;
             34570          (iii) librarian or media specialist;
             34571          (iv) preschool teacher;
             34572          (v) school administrator;
             34573          (vi) mentor teacher;
             34574          (vii) teacher specialist or teacher leader;
             34575          (viii) guidance counselor;
             34576          (ix) audiologist;
             34577          (x) psychologist; or
             34578          (xi) social worker.
             34579          (2) In recognition of the need to attract and retain highly skilled and dedicated
             34580      educators, the Legislature shall annually appropriate money for educator salary adjustments,
             34581      subject to future budget constraints.

             34582          (3) Money appropriated to the State Board of Education for educator salary
             34583      adjustments shall be distributed to school districts, charter schools, and the Utah Schools for the
             34584      Deaf and the Blind in proportion to the number of full-time-equivalent educator positions in a
             34585      school district, a charter school, or the Utah Schools for the Deaf and the Blind as compared to
             34586      the total number of full-time-equivalent educator positions in school districts, charter schools,
             34587      and the Utah Schools for the Deaf and the Blind.
             34588          (4) School districts, charter schools, and the Utah Schools for the Deaf and the Blind
             34589      shall award bonuses to educators as follows:
             34590          (a) the amount of the salary adjustment shall be the same for each full-time-equivalent
             34591      educator position in the school district, charter school, or the Utah Schools for the Deaf and the
             34592      Blind;
             34593          (b) a person who is not a full-time educator shall receive a partial salary adjustment
             34594      based on the number of hours the person works as an educator; and
             34595          (c) salary adjustments may be awarded only to educators who have received a
             34596      satisfactory rating or above on their most recent evaluation.
             34597          (5) (a) Each school district and charter school and the Utah Schools for the Deaf and
             34598      the Blind shall submit a report to the State Board of Education on how the money for salary
             34599      adjustments was spent, including the amount of the salary adjustment and the number of full and
             34600      partial salary adjustments awarded.
             34601          (b) The State Board of Education shall compile the information reported under
             34602      Subsection (5) and submit it to the Public Education Appropriations Subcommittee by
             34603      November 30 each year.
             34604          (6) The State Board of Education may make rules as necessary to administer this
             34605      section, in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             34606      Rulemaking Act.
             34607          (7) Subject to future budget constraints, the Legislature shall appropriate sufficient
             34608      monies each year to:
             34609          (a) maintain educator salary adjustments provided in prior years; and

             34610          (b) provide educator salary adjustments to new employees.
             34611          Section 768. Section 53A-19-105 is amended to read:
             34612           53A-19-105. School district interfund transfers.
             34613          (1) A school district shall spend revenues only within the fund for which they were
             34614      originally authorized, levied, collected, or appropriated.
             34615          (2) Except as otherwise provided in this section, school district interfund transfers of
             34616      residual equity are prohibited.
             34617          (3) The State Board of Education may authorize school district interfund transfers of
             34618      residual equity when a district states its intent to create a new fund or expand, contract, or
             34619      liquidate an existing fund.
             34620          (4) The State Board of Education may also authorize school district interfund transfers
             34621      of residual equity for a financially distressed district if the board determines the following:
             34622          (a) the district has a significant deficit in its maintenance and operations fund caused by
             34623      circumstances not subject to the administrative decisions of the district;
             34624          (b) the deficit cannot be reasonably reduced under Section 53A-19-104 ; and
             34625          (c) without the transfer, the school district will not be capable of meeting statewide
             34626      educational standards adopted by the State Board of Education.
             34627          (5) The board shall develop standards for defining and aiding financially distressed
             34628      school districts under this section in accordance with [Title 63, Chapter 46a] Title 63G, Chapter
             34629      3, Utah Administrative Rulemaking Act.
             34630          (6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
             34631      and reported in the debt service fund.
             34632          (b) Debt service levies under Subsection 59-2-924 (2)(a)(v)(C) that are not subject to
             34633      the certified tax rate hearing requirements of Sections 59-2-918 and 59-2-919 may not be used
             34634      for any purpose other than retiring general obligation debt.
             34635          (c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
             34636      year shall be used in subsequent years for general obligation debt retirement.
             34637          (d) Any amounts left in the debt service fund after all general obligation debt has been

             34638      retired may be transferred to the capital projects fund upon completion of the budgetary hearing
             34639      process required under Section 53A-19-102 .
             34640          Section 769. Section 53A-20-101 is amended to read:
             34641           53A-20-101. Construction and alteration of schools and plants -- Advertising for
             34642      bids -- Payment and performance bonds -- Contracts -- Bidding limitations on local
             34643      school boards -- Interest of local school board members.
             34644          (1) As used in this section, the word "sealed" does not preclude acceptance of
             34645      electronically sealed and submitted bids or proposals in addition to bids or proposals manually
             34646      sealed and submitted.
             34647          (2) (a) Prior to the construction of any school or the alteration of any existing school
             34648      plant, if the total estimated accumulative building project cost exceeds $80,000, a local school
             34649      board shall advertise for bids on the project at least ten days before the bid due date.
             34650          (b) The board shall have the advertisement published in a newspaper having general
             34651      circulation throughout the state and in appropriate construction trade publications that offer free
             34652      listings.
             34653          (c) A similar advertisement is required in a newspaper published or having general
             34654      circulation in any city or county that would be affected by the proposed project.
             34655          (d) The advertisement shall:
             34656          (i) require sealed proposals for the building project in accordance with plans and
             34657      specifications furnished by the local school board;
             34658          (ii) state where and when the proposals will be opened and shall reserve the right of the
             34659      board to reject any and all proposals; and
             34660          (iii) require a certified check or bid bond of not less than 5% of the bid to accompany
             34661      the bid.
             34662          (3) (a) The board shall meet at the time and place specified in the advertisement and
             34663      publicly open and read all received proposals.
             34664          (b) If satisfactory bids are received, the board shall award the contract to the lowest
             34665      responsible bidder.

             34666          (c) If none of the proposals are satisfactory, all shall be rejected.
             34667          (d) The board shall again advertise in the manner provided in this section.
             34668          (e) If, after advertising a second time no satisfactory bid is received, the board may
             34669      proceed under its own direction with the required project.
             34670          (4) (a) The check or bond required under Subsection (2)(d) shall be drawn in favor of
             34671      the local school board.
             34672          (b) If the successful bidder fails or refuses to enter into the contract and furnish the
             34673      additional bonds required under this section, then the bidder's check or bond is forfeited to the
             34674      district.
             34675          (5) A local school board shall require payment and performance bonds of the successful
             34676      bidder as required in Section [ 63-56-504 ] 63G-6-505 .
             34677          (6) (a) A local school board may require in the proposed contract that at least 10% of
             34678      the contract price be withheld until the project is completed and accepted by the board.
             34679          (b) If money is withheld, the board shall place it in an interest bearing account, and the
             34680      interest accrues for the benefit of the contractor and subcontractors.
             34681          (c) This money shall be paid upon completion of the project and acceptance by the
             34682      board.
             34683          (7) (a) A local school board may not bid on projects within the district if the total
             34684      accumulative estimated cost exceeds $80,000.
             34685          (b) The board may use its resources if no satisfactory bids are received under this
             34686      section.
             34687          (8) If the local school board determines in accordance with Section [ 63-56-501 ]
             34688      63G-6-501 to use a construction manager/general contractor as its method of construction
             34689      contracting management on projects where the total estimated accumulative cost exceeds
             34690      $80,000, it shall select the construction manager/general contractor using one of the source
             34691      selection methods provided for in Sections [ 63-56-401 ] 63G-6-401 through [ 63-56-501 ]
             34692      63G-6-501 .
             34693          (9) A local school board member may not have a direct or indirect financial interest in

             34694      the construction project contract.
             34695          Section 770. Section 53A-20c-102 is amended to read:
             34696           53A-20c-102. Energy Efficiency Fund -- Contents -- Use of fund monies.
             34697          (1) As used in this section:
             34698          (a) "Board" means the Board of the Utah Geological Survey.
             34699          (b) "Energy code" means the energy efficiency code adopted by the Division of
             34700      Occupational and Professional Licensing under Section 58-56-4 .
             34701          (c) "Energy efficiency project" means:
             34702          (i) for existing buildings, a retrofit to improve energy efficiency; or
             34703          (ii) for new buildings, an enhancement to improve energy efficiency beyond the
             34704      minimum required by the energy code.
             34705          (d) "Fund" means the Energy Efficiency Fund created by this part.
             34706          (2) There is created a revolving loan fund known as the Energy Efficiency Fund.
             34707          (3) The fund shall consist of:
             34708          (a) monies appropriated to it by the Legislature;
             34709          (b) monies received for the repayment of loans made from the fund;
             34710          (c) monies made available to the state for energy efficiency from any source; and
             34711          (d) interest earned on the fund.
             34712          (4) (a) The board shall make loans from the fund only to school districts to finance
             34713      energy efficiency projects in school district buildings, including paying the costs of construction,
             34714      engineering, investigation, inspection, and other related expenses.
             34715          (b) The board may not:
             34716          (i) make loans from the fund to finance a school district's compliance with the energy
             34717      code in the construction of a new building;
             34718          (ii) make a loan from the fund with a term of less than two years or more than 12 years;
             34719      or
             34720          (iii) make loans from the fund to any entity other than a school district.
             34721          (5) (a) (i) Each school district seeking a loan shall submit an application to the board in

             34722      the form and containing the information that the board requires, which shall include the plans
             34723      and specifications for the proposed energy efficiency project.
             34724          (ii) In the application, the school district may request a loan to cover all or part of the
             34725      cost of an energy efficiency project.
             34726          (b) If an application is rejected, the board shall notify the applicant stating the reasons
             34727      for the rejection.
             34728          (6) (a) By following the procedures and requirements of [Title 63, Chapter 46a] Title
             34729      63G, Chapter 3, Utah Administrative Rulemaking Act, the board shall make rules establishing
             34730      criteria for:
             34731          (i) determining eligibility for loans; and
             34732          (ii) determining appropriate priorities among projects.
             34733          (b) In making rules governing determining priorities for eligible projects, the board may
             34734      consider:
             34735          (i) possible additional sources of revenue;
             34736          (ii) the feasibility and practicality of the project;
             34737          (iii) the energy savings attributable to an eligible energy efficiency project;
             34738          (iv) the annual energy cost savings attributable to an eligible energy efficiency project;
             34739          (v) the projected energy cost payback of an eligible energy efficiency project;
             34740          (vi) the financial need of the public facility owner;
             34741          (vii) the environmental and other benefits to the state and local community attributable
             34742      to an eligible energy efficiency project; and
             34743          (viii) the availability of federal funds for the project.
             34744          (7) (a) In approving a project, the board shall:
             34745          (i) review the loan application and the plans and specifications for the project;
             34746          (ii) determine whether or not to grant the loan by applying its eligibility criteria; and
             34747          (iii) if the loan is granted, prioritize the project by applying its priority criteria.
             34748          (b) The board may condition approval of a loan request and the availability of funds on
             34749      assurances from the school district that the board considers necessary to ensure that:

             34750          (i) the proceeds of the loan will be used to pay the cost of the project; and
             34751          (ii) the project will be completed.
             34752          (8) Employees of the state energy program shall serve as staff to the board when it
             34753      performs the duties established in this section.
             34754          Section 771. Section 53A-21-103 is amended to read:
             34755           53A-21-103. Qualifications for participation in the foundation program --
             34756      Distribution of monies -- Distribution formulas.
             34757          (1) In order for a school district to qualify for monies under the Capital Outlay
             34758      Foundation Program established in Subsection 53A-21-102 (1), a local school board must levy a
             34759      tax rate of up to .0024 per dollar of taxable value for capital outlay and debt service.
             34760          (2) The State Board of Education shall adopt rules in accordance with [Title 63,
             34761      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
             34762          (a) allow a school district levying less than the full .0024 tax rate to receive
             34763      proportional funding under the foundation program based upon the percentage of the .0024 tax
             34764      rate levied by the district; and
             34765          (b) maintain a school district's funding under the Capital Outlay Foundation Program
             34766      for up to two years if the school district's funding would otherwise be reduced as a consequence
             34767      of changes in the certified tax rate under Section 59-2-924 due to changes in property valuation.
             34768          (3) The State Board of Education shall distribute monies in the Capital Outlay
             34769      Foundation Program in accordance with a formula developed by the state superintendent of
             34770      public instruction which guarantees that a tax rate of up to .0024 per dollar of taxable value for
             34771      capital outlay and debt service yields a minimum amount per pupil in average daily membership.
             34772          Section 772. Section 53A-21-103.5 is amended to read:
             34773           53A-21-103.5. Qualifications for participation in the Enrollment Growth
             34774      Program -- State Board of Education rules -- Distribution formula.
             34775          (1) As used in this section:
             34776          (a) "ADM" means average daily membership.
             34777          (b) "Derived valuation" means total school district property tax current collections from

             34778      April 1 through the following March 31, divided by the tax rates for the same year.
             34779          (c) "Yield per ADM" means the product of the derived valuation multiplied by .0024,
             34780      divided by average daily membership.
             34781          (2) (a) The State Board of Education shall distribute monies in the Enrollment Growth
             34782      Program to qualifying school districts whose:
             34783          (i) average net enrollment for the prior three years is a net increase in enrollment; and
             34784          (ii) yield per ADM is less than two times the prior year's average yield per ADM for
             34785      Utah school districts.
             34786          (b) A school district that meets the criteria of Subsection (2)(a) shall receive Enrollment
             34787      Growth Program monies in the same proportion that the district's three-year average net
             34788      enrollment bears to the total three-year net enrollment of all the districts that meet the criteria of
             34789      Subsection (2)(a).
             34790          (c) The State Board of Education shall make rules in accordance with [Title 63,
             34791      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer this
             34792      section.
             34793          Section 773. Section 53A-24-114 is amended to read:
             34794           53A-24-114. Governor's Committee on Employment of People with Disabilities.
             34795          (1) There is created the Governor's Committee on Employment of People with
             34796      Disabilities.
             34797          (2) (a) The State Board of Education shall appoint at least twelve members to the
             34798      committee.
             34799          (b) The State Board of Education shall ensure that the committee includes members
             34800      from the public and private sectors who represent:
             34801          (i) business and industry;
             34802          (ii) individuals with disabilities and their advocates;
             34803          (iii) job training and placement;
             34804          (iv) administrative subunits of the state, such as the Department of Human Resource
             34805      Management, the Department of Workforce Services, Public Education, Higher Education, and

             34806      the Department of Human Services;
             34807          (v) labor;
             34808          (vi) veterans;
             34809          (vii) medical;
             34810          (viii) health;
             34811          (ix) insurance;
             34812          (x) media; and
             34813          (xi) the general public.
             34814          (c) (i) Except as provided in Subsection (2)(c)(ii), the State Board of Education shall
             34815      appoint committee members to serve four-year terms.
             34816          (ii) In making the initial appointments to the committee, the State Board of Education
             34817      shall appoint approximately 1/2 of the members to two-year terms and 1/2 of the members to
             34818      four-year terms.
             34819          (d) Committee members shall serve until their successors are appointed and qualified.
             34820          (e) The State Board of Education shall fill any vacancy that occurs on the committee for
             34821      any reason by appointing a person according to the procedures of this section for the unexpired
             34822      term of the vacated member.
             34823          (f) The State Board of Education shall select a chair from the membership.
             34824          (g) Seven members of the committee are a quorum for the transaction of business.
             34825          (3) (a) The committee shall:
             34826          (i) promote employment opportunities for individuals with disabilities;
             34827          (ii) serve as the designated state liaison to the President's Committee on Employment of
             34828      People with Disabilities;
             34829          (iii) provide training and technical assistance to employers in implementing the
             34830      Americans with Disabilities Act;
             34831          (iv) develop and disseminate appropriate information through workshops, meetings, and
             34832      other requests in response to needs to employers and others regarding employment of
             34833      individuals with disabilities;

             34834          (v) establish contacts with various community representatives to identify and resolve
             34835      barriers to full participation in employment and community life;
             34836          (vi) formally recognize exemplary contributions in the areas of employment, job
             34837      placement, training, rehabilitation, support services, medicine, media or public relations, and
             34838      personal achievements made by individuals with disabilities;
             34839          (vii) advise, encourage, and motivate individuals with disabilities who are preparing for
             34840      or seeking employment to reach their full potential as qualified employees;
             34841          (viii) advocate for policies and practices that promote full and equal rights for
             34842      individuals with disabilities;
             34843          (ix) advise the State Board of Education and the governor on issues that affect
             34844      employment and other requests for information on disability issues;
             34845          (x) prepare an annual report on the progress, accomplishments, and future goals of the
             34846      committee and present the report to the State Board of Education and the governor; and
             34847          (xi) establish and maintain a cooperative liaison between the governor's office, the
             34848      executive director of the committee, and the executive director of the Utah State Office of
             34849      Rehabilitation to fulfill the committee's purpose.
             34850          (b) The committee may, by following the procedures and requirements of [Title 63,
             34851      Chapter 38e] Title 63J, Chapter 5, Federal Funds Procedures, receive and accept federal funds,
             34852      and may receive and accept state funds, private gifts, donations, and funds from any source to
             34853      carry out its purposes.
             34854          (4) The director of the State Office of Rehabilitation shall appoint a person to staff the
             34855      committee.
             34856          Section 774. Section 53A-26a-302 is amended to read:
             34857           53A-26a-302. Qualifications for certification.
             34858          Each applicant for certification under this chapter shall:
             34859          (1) submit an application in a form prescribed by the State Board of Education;
             34860          (2) pay a fee determined by the State Board of Education under Section [ 63-38-3.2 ]
             34861      63J-1-303 to help offset the costs of implementing this chapter for the administration of

             34862      examinations for certification and for the issuance of certificates;
             34863          (3) be of good moral character; and
             34864          (4) comply with any other qualifications for certification established by the State Board
             34865      of Education pursuant to Subsection 53A-26a-202 (2).
             34866          Section 775. Section 53B-2-107 is amended to read:
             34867           53B-2-107. Appropriations reallocation.
             34868          (1) Notwithstanding the requirements of [Title 63, Chapter 38] Title 63J, Chapter 1,
             34869      Budgetary Procedures Act, appropriations for the support of higher education for the fiscal year
             34870      beginning July 1, 2001 and ending June 30, 2002, may be reallocated between line items as
             34871      provided in this section.
             34872          (2) (a) The president of the University of Utah may reallocate between line items the
             34873      appropriations:
             34874          (i) described in Items 143-150 and Item 152 in Chapter 334, Laws of Utah 2001; and
             34875          (ii) as modified by:
             34876          (A) H.B. 1, 2002 General Session; and
             34877          (B) H.B. 3, 2002 General Session.
             34878          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34879      made in H.B. 1, 2002 General Session and H.B. 3, 2002 General Session.
             34880          (3) (a) The president of Utah State University may reallocate between line items the
             34881      appropriations:
             34882          (i) described in Items 154-166 in Chapter 334, Laws of Utah 2001; and
             34883          (ii) as modified by:
             34884          (A) H.B. 1, 2002 General Session; and
             34885          (B) H.B. 3, 2002 General Session.
             34886          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34887      made in H.B. 1, 2002 General Session and H.B. 3, 2002 General Session.
             34888          (4) (a) The president of Weber State University may reallocate between line items the
             34889      appropriations:

             34890          (i) described in Items 168 and 169 in Chapter 334, Laws of Utah 2001; and
             34891          (ii) as modified by:
             34892          (A) H.B. 1, 2002 General Session; and
             34893          (B) H.B. 3, 2002 General Session.
             34894          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34895      made in H.B. 1, 2002 General Session and H.B. 3, 2002 General Session.
             34896          (5) (a) The president of Southern Utah University may reallocate between line items the
             34897      appropriations:
             34898          (i) described in Items 170-172 in Chapter 334, Laws of Utah 2001; and
             34899          (ii) as modified by:
             34900          (A) H.B. 1, 2002 General Session; and
             34901          (B) H.B. 3, 2002 General Session.
             34902          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34903      made in H.B. 1, 2002 General Session and H.B. 3, 2002 General Session.
             34904          (6) (a) The president of Snow College may reallocate between line items the
             34905      appropriations:
             34906          (i) described in Items 173-175 in Chapter 334, Laws of Utah 2001; and
             34907          (ii) as modified by:
             34908          (A) H.B. 1, 2002 General Session; and
             34909          (B) H.B. 3, 2002 General Session.
             34910          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34911      made in H.B. 1, 2002 General Session and H.B. 3, 2002 General Session.
             34912          (7) (a) The president of Dixie State College may reallocate between line items the
             34913      appropriations:
             34914          (i) described in Items 177-179 in Chapter 334, Laws of Utah 2001; and
             34915          (ii) as modified by:
             34916          (A) H.B. 1, 2002 General Session; and
             34917          (B) H.B. 3, 2002 General Session.

             34918          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34919      made in H.B. 1, 2002 General Session and H.B. 3, 2002 General Session.
             34920          (8) (a) The president of the College of Eastern Utah may reallocate between line items
             34921      the appropriations:
             34922          (i) described in Items 180-183 in Chapter 334, Laws of Utah 2001; and
             34923          (ii) as modified by:
             34924          (A) H.B. 1, 2002 General Session; and
             34925          (B) H.B. 3, 2002 General Session.
             34926          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34927      made in H.B. 1, 2002 General Session and H.B. 3, 2002 General Session.
             34928          (9) (a) The president of Utah Valley State College may reallocate between line items
             34929      the appropriations:
             34930          (i) described in Items 184 and 185 in Chapter 334, Laws of Utah 2001; and
             34931          (ii) as modified by:
             34932          (A) H.B. 1, 2002 General Session; and
             34933          (B) H.B. 3, 2002 General Session.
             34934          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34935      made in H.B. 1, 2002 General Session and H.B. 3, 2002 General Session.
             34936          (10) (a) The president of Salt Lake Community College may reallocate between line
             34937      items the appropriations:
             34938          (i) described in Items 186-188 in Chapter 334, Laws of Utah 2001; and
             34939          (ii) as modified by:
             34940          (A) H.B. 1, 2002 General Session; and
             34941          (B) H.B. 3, 2002 General Session.
             34942          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34943      made in H.B. 1, 2002 General Session and H.B. 3, 2002 General Session.
             34944          (11) (a) The State Board of Regents may reallocate between line items the
             34945      appropriations:

             34946          (i) described in Items 189, 190, and 192-199 in Chapter 334, Laws of Utah 2001; and
             34947          (ii) as modified by:
             34948          (A) H.B. 1, 2002 General Session; and
             34949          (B) H.B. 3, 2002 General Session.
             34950          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34951      made in H.B. 1, 2002 General Session and H.B. 3, 2002 General Session.
             34952          Section 776. Section 53B-2-108 is amended to read:
             34953           53B-2-108. Appropriations reallocation.
             34954          (1) Notwithstanding the requirements of [Title 63, Chapter 38] Title 63J, Chapter 1,
             34955      Budgetary Procedures Act, appropriations for the support of higher education for the fiscal year
             34956      beginning July 1, 2002 and ending June 30, 2003, may be reallocated between line items as
             34957      provided in this section.
             34958          (2) (a) The president of the University of Utah may reallocate between line items the
             34959      appropriations:
             34960          (i) described in Items 141-149 in S.B. 1, 2002 General Session; and
             34961          (ii) as modified by supplemental appropriations, including H.B. 4001, 2002 Fourth
             34962      Special Session and H.B. 5009, 2002 Fifth Special Session.
             34963          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34964      made in the supplemental appropriations.
             34965          (3) (a) The president of Utah State University may reallocate between line items the
             34966      appropriations:
             34967          (i) described in Items 150-159 in S.B. 1, 2002 General Session; and
             34968          (ii) as modified by supplemental appropriations, including H.B. 4001, 2002 Fourth
             34969      Special Session and H.B. 5009, 2002 Fifth Special Session.
             34970          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34971      made in the supplemental appropriations.
             34972          (4) (a) The president of Weber State University may reallocate between line items the
             34973      appropriations:

             34974          (i) described in Items 160 and 161 in S.B. 1, 2002 General Session; and
             34975          (ii) as modified by supplemental appropriations, including H.B. 4001, 2002 Fourth
             34976      Special Session and H.B. 5009, 2002 Fifth Special Session.
             34977          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34978      made in the supplemental appropriations.
             34979          (5) (a) The president of Southern Utah University may reallocate between line items the
             34980      appropriations:
             34981          (i) described in Items 162-164 in S.B. 1, 2002 General Session; and
             34982          (ii) as modified by supplemental appropriations, including H.B. 5009, 2002 Fifth Special
             34983      Session.
             34984          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34985      made in the supplemental appropriations.
             34986          (6) (a) The president of Snow College may reallocate between line items the
             34987      appropriations:
             34988          (i) described in Items 165-167 in S.B. 1, 2002 General Session; and
             34989          (ii) as modified by supplemental appropriations, including H.B. 5009, 2002 Fifth Special
             34990      Session.
             34991          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34992      made in the supplemental appropriations.
             34993          (7) (a) The president of Dixie State College may reallocate between line items the
             34994      appropriations:
             34995          (i) described in Items 168-170 in S.B. 1, 2002 General Session; and
             34996          (ii) as modified by supplemental appropriations, including H.B. 5009, 2002 Fifth Special
             34997      Session.
             34998          (b) The total amount of money reallocated may not exceed the sum of the reductions
             34999      made in the supplemental appropriations.
             35000          (8) (a) The president of the College of Eastern Utah may reallocate between line items
             35001      the appropriations:

             35002          (i) described in Items 171-174 in S.B. 1, 2002 General Session; and
             35003          (ii) as modified by supplemental appropriations, including H.B. 5009, 2002 Fifth Special
             35004      Session.
             35005          (b) The total amount of money reallocated may not exceed the sum of the reductions
             35006      made in the supplemental appropriations.
             35007          (9) (a) The president of Utah Valley State College may reallocate between line items
             35008      the appropriations:
             35009          (i) described in Items 175 and 176 in S.B. 1, 2002 General Session; and
             35010          (ii) as modified by supplemental appropriations, including H.B. 5009, 2002 Fifth Special
             35011      Session.
             35012          (b) The total amount of money reallocated may not exceed the sum of the reductions
             35013      made in the supplemental appropriations.
             35014          (10) (a) The president of Salt Lake Community College may reallocate between line
             35015      items the appropriations:
             35016          (i) described in Items 177-179 in S.B. 1, 2002 General Session; and
             35017          (ii) as modified by supplemental appropriations, including H.B. 5009, 2002 Fifth Special
             35018      Session.
             35019          (b) The total amount of money reallocated may not exceed the sum of the reductions
             35020      made in the supplemental appropriations.
             35021          (11) (a) The State Board of Regents may reallocate between line items the
             35022      appropriations:
             35023          (i) described in Items 180-189 in S.B. 1, 2002 General Session; and
             35024          (ii) as modified by supplemental appropriations, including H.B. 5009, 2002 Fifth Special
             35025      Session.
             35026          (b) The total amount of money reallocated may not exceed the sum of the reductions
             35027      made in the supplemental appropriations.
             35028          Section 777. Section 53B-6-105 is amended to read:
             35029           53B-6-105. Engineering and Computer Technology Initiative.

             35030          (1) The Legislature recognizes that a significant increase in the number of engineering,
             35031      computer science, and related technology graduates from the state system of higher education is
             35032      required over the next several years to advance the intellectual, cultural, social, and economic
             35033      well-being of the state and its citizens.
             35034          (2) (a) (i) The State Board of Regents shall therefore develop, establish, and maintain
             35035      an Engineering and Computer Science Initiative within the state system of higher education to
             35036      double the number of graduates in engineering, computer science, and related technology by
             35037      2006 and triple the number of graduates by 2009.
             35038          (ii) The board shall make a rule in accordance with [Title 63, Chapter 46a] Title 63G,
             35039      Chapter 3, Utah Administrative Rulemaking Act, providing the criteria for those fields of study
             35040      that qualify as "related technology" under this section and Sections 53B-6-105.7 and
             35041      53B-6-105.9 .
             35042          (b) The initiative shall include components that:
             35043          (i) improve the quality of instructional programs in engineering, computer science, and
             35044      related technology by providing supplemental monies for equipment purchases; and
             35045          (ii) provide incentives to:
             35046          (A) students through a loan and loan forgiveness program under Section 53B-6-105.7 ;
             35047      and
             35048          (B) institutions to hire and retain faculty under Section 53B-6-105.9 .
             35049          (3) The increase in program capacity under Subsection (2)(a) shall include funding for
             35050      new and renovated capital facilities and funding for new engineering and computer science
             35051      programs.
             35052          (4) The Legislature shall provide an annual appropriation to fund the initiative as a
             35053      budget line item for the State Board of Regents.
             35054          Section 778. Section 53B-6-105.7 is amended to read:
             35055           53B-6-105.7. Initiative student loan and loan forgiveness program.
             35056          (1) (a) There is established an engineering, computer science, and related technology
             35057      student loan program as a component of the initiative created in Section 53B-6-105 .

             35058          (b) The program is established to recruit and train engineering, computer science, and
             35059      related technology students to assist in providing for and advancing the intellectual and
             35060      economic welfare of the state.
             35061          (2) (a) The board:
             35062          (i) may make rules for the overall administration of the program in accordance with
             35063      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
             35064          (ii) shall administer the program consistent with the general student loan provisions
             35065      outlined in Title 53B.
             35066          (b) The board shall also use the following policies and procedures in administering the
             35067      student loan program:
             35068          (i) students may use their loans at any institution within the state system of higher
             35069      education that offers an engineering, computer science, or related technology baccalaureate
             35070      degree;
             35071          (ii) loans shall be given to students who declare an intent to complete a prescribed
             35072      course of instruction in one of the areas referred to in Subsection (2)(b)(i) and to work in the
             35073      state for a period of four years after graduation in one of those areas;
             35074          (iii) a loan may be cancelled at any time by the institution of attendance, if the student
             35075      fails to make reasonable progress towards obtaining the baccalaureate degree or there appears
             35076      to be a reasonable certainty that the student does not intend to work in the state upon
             35077      graduation, and the board shall require repayment together with interest; and
             35078          (iv) (A) a loan recipient who does not work in the state in one of the areas listed in
             35079      Subsection (1)(a) for a term equal to the number of years of the loan within a reasonable period
             35080      of time after graduation shall repay a graduated portion of the loan based upon the uncompleted
             35081      term together with appropriate interest, unless waived for good cause; and
             35082          (B) one year of employment as an engineer or in the field of computer science or related
             35083      technologies is credit for a one-year loan for tuition and fees.
             35084          (3) The Legislature shall make an annual appropriation to the board to fund the student
             35085      loan program created in this section.

             35086          Section 779. Section 53B-6-105.9 is amended to read:
             35087           53B-6-105.9. Incentive program for engineering, computer science, and related
             35088      technology faculty.
             35089          (1) The Legislature shall provide an annual appropriation to help fund the faculty
             35090      incentive component of the Engineering and Computer Science Initiative established under
             35091      Section 53B-6-105 .
             35092          (2) The appropriation shall be used to hire, recruit, and retain outstanding faculty in
             35093      engineering, computer science, and related technology fields under guidelines established by the
             35094      State Board of Regents.
             35095          (3) (a) State institutions of higher education shall match the appropriation on a
             35096      one-to-one basis in order to qualify for state monies appropriated under Subsection (1).
             35097          (b) (i) Qualifying institutions shall annually report their matching dollars to the board.
             35098          (ii) The board shall make a summary report of the institutional matches.
             35099          (iii) The annual report of the Technology Initiative Advisory Board required by Section
             35100      53B-6-105.5 shall include the summary report of the institutional matches.
             35101          (4) The board shall make a rule in accordance with [Title 63, Chapter 46a] Title 63G,
             35102      Chapter 3, Utah Administrative Rulemaking Act, establishing policies and procedures to apply
             35103      for and distribute the state appropriation to qualifying institutions.
             35104          Section 780. Section 53B-6-106 is amended to read:
             35105           53B-6-106. Jobs Now Economic Development Initiative.
             35106          (1) The State Board of Regents shall develop, establish, and maintain a Jobs Now
             35107      Economic Development Initiative within the state system of higher education, including the
             35108      Utah College of Applied Technology, to promote workforce preparation programs that meet
             35109      critical needs and shortages throughout the state.
             35110          (2) The initiative shall provide support for technical training expansion that trains skilled
             35111      potential employees within a period not to exceed 12 months for technical jobs in critical needs
             35112      occupations.
             35113          (3) (a) The Legislature shall provide an annual appropriation to fund the initiative in a

             35114      line item to the State Board of Regents.
             35115          (b) (i) The board shall allocate at least 2/3 of the appropriation to the Utah College of
             35116      Applied Technology for distribution to college campuses within the college as recommended by
             35117      the Utah College of Applied Technology Board of Trustees.
             35118          (ii) A college campus shall use money received under Subsection (3)(b)(i) for technical
             35119      training expansion referred to in Subsection (2).
             35120          (c) The board may allocate and distribute up to 1/3 of the appropriation to institutions
             35121      within the state system of higher education for short term training programs that prepare skilled
             35122      potential employees within a period not to exceed 12 months for technical jobs in critical needs
             35123      occupations.
             35124          (d) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             35125      Administrative Rulemaking Act, the board shall make rules:
             35126          (i) to implement the Jobs Now Economic Development Initiative; and
             35127          (ii) by which institutions may apply for the moneys referred to in Subsection (3)(c).
             35128          Section 781. Section 53B-7-502 is amended to read:
             35129           53B-7-502. Higher Education Tuition Assistance Program.
             35130          (1) There is created the Utah Higher Education Tuition Assistance Program, hereafter
             35131      referred to in this part as the program.
             35132          (2) The board shall administer the program.
             35133          (3) The program shall be funded through appropriations by the Legislature.
             35134          (4) Money appropriated for the program shall be available only for need-based grants to
             35135      higher education students, as provided in this part.
             35136          (5) (a) The board shall adopt rules for administration of the program, in accordance
             35137      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             35138          (b) The rules shall include the requirements that money appropriated to the program for
             35139      a specific fiscal year, plus any remaining balance at the end of the preceding fiscal year, shall be
             35140      allocated to eligible institutions on the following basis:
             35141          (i) the board shall distribute 50% of the amount available for allocation each fiscal year

             35142      in equal proportions to:
             35143          (A) Snow College, main campus and extensions;
             35144          (B) Dixie State College, main campus and extensions;
             35145          (C) College of Eastern Utah, main campus and extensions;
             35146          (D) College of Eastern Utah, San Juan Campus and extensions;
             35147          (E) Utah Valley University, main campus and extensions;
             35148          (F) Salt Lake Community College, Taylorsville campus and extensions; and
             35149          (G) Salt Lake Community College, South City Campus; and
             35150          (ii) the board shall distribute 50% of the amount available for allocation each fiscal year
             35151      to the Utah State University for its instructional centers at Roosevelt, Blanding, Randolph,
             35152      Price, Moab, Brigham City, Tooele, Richfield, and Ephraim, and other centers as may be
             35153      determined by the board.
             35154          (6) Higher education institutions may submit applications to the board, for specific
             35155      eligible entities, for grants to students with demonstrated financial need, determined by criteria
             35156      established by the board.
             35157          Section 782. Section 53B-12-101 is amended to read:
             35158           53B-12-101. Utah Higher Education Assistance Authority designated -- Powers
             35159      and duties.
             35160          The board is the Utah Higher Education Assistance Authority and, in this capacity, may
             35161      do the following:
             35162          (1) guarantee 100% of the principal of and interest on a loan to or for the benefit of a
             35163      person attending or accepted to attend an eligible postsecondary educational institution to assist
             35164      that person in meeting any educational expenses incurred in an academic year;
             35165          (2) take, hold, and administer real or personal property and moneys, including interest
             35166      and income, either absolutely or in trust, for any purpose under this chapter;
             35167          (3) acquire property for the purposes indicated in Subsection (2) by purchase or lease
             35168      and by the acceptance of gifts, grants, bequests, devises, or loans;
             35169          (4) enter into or contract with an eligible lending institution, or with a public or private

             35170      postsecondary educational institution to provide for the administration by the institution of any
             35171      loan or loan guarantee made by it, including application and repayment provisions;
             35172          (5) participate in federal programs guaranteeing, reinsuring, or otherwise supporting
             35173      loans to eligible borrowers for postsecondary educational purposes and agree to, and comply
             35174      with, the conditions and regulations applicable to those programs;
             35175          (6) adopt, amend, or repeal rules, in accordance with [Title 63, Chapter 46a] Title 63G,
             35176      Chapter 3, Utah Administrative Rulemaking Act, to govern the activities authorized by this
             35177      chapter;
             35178          (7) receive state appropriations for the fund established under Section 53B-12-104 to
             35179      match deposits and to accept contributions received by it for this purpose;
             35180          (8) receive funds from the federal government to assist in implementing federally
             35181      supported programs administered under this chapter;
             35182          (9) engage, appoint, or contract for the services of officers, agents, employees, and
             35183      private consultants to render and perform professional and technical duties and provide
             35184      assistance and advice in carrying out the purposes of this chapter, to describe their duties, and
             35185      to fix the amount and source of their compensation; and
             35186          (10) receive employment information from the Workforce Development and
             35187      Information Division in accordance with Section 35A-4-312 for the purpose of collecting
             35188      defaulted student loans made under this chapter. The information obtained under this
             35189      Subsection (10) shall be limited to the employer's name, address, and telephone number for
             35190      borrowers who have defaulted on a student loan held by the Utah Higher Education Assistance
             35191      Authority.
             35192          Section 783. Section 53B-16-302 is amended to read:
             35193           53B-16-302. Records that may be classified as restricted.
             35194          A public institution of higher education may classify only the following records as
             35195      restricted:
             35196          (1) that portion of a technology transfer record or sponsored research record to which
             35197      access must be restricted for the purpose of securing and maintaining proprietary protection of

             35198      intellectual property rights, including but not limited to patents, copyrights, trademarks, and
             35199      trade secrets; or
             35200          (2) that portion of a technology transfer record or sponsored research record to which
             35201      access is restricted for competitive or proprietary purposes, as a condition of actual or potential
             35202      participation in a sponsored research or technology transfer agreement; provided, however, that
             35203      upon receipt of a written request for a reasonably identifiable record, the public institution of
             35204      higher education shall disclose:
             35205          (a) prior to a memorandum of intent to contract or an agreement in principle between
             35206      the parties:
             35207          (i) the names of the parties, or, if the disclosure of names would cause competitive
             35208      harm, a general description of the type of parties negotiating the technology transfer or
             35209      sponsored research agreement; and
             35210          (ii) a general description of the nature of the technology transfer or sponsored research
             35211      under consideration, excluding proprietary or competitive information; or
             35212          (b) after a memorandum of intent to contract or an agreement in principle between the
             35213      parties:
             35214          (i) the names of the parties involved in the technology transfer or sponsored research;
             35215          (ii) a general description of the nature of the technology transfer or sponsored research
             35216      to be conducted, excluding proprietary or competitive information; and
             35217          (iii) records of the technology transfer or sponsored research to be conducted,
             35218      excluding those portions of records to which access is limited under this part or [Title 63,
             35219      Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act.
             35220          Section 784. Section 53B-16-303 is amended to read:
             35221           53B-16-303. Access to restricted records.
             35222          Notwithstanding any other provision of [Title 63, Chapter 2] Title 63G, Chapter 2,
             35223      Government Records Access and Management Act, access to records restricted by this part
             35224      shall only be permitted upon:
             35225          (1) written consent of the public institution of higher education originating, receiving,

             35226      or maintaining such records; or
             35227          (2) a finding by the State Records Committee or a court that the record has not been
             35228      properly classified as restricted under Section [ 63-2-302 ] 63G-2-302 , provided that the review
             35229      of a restricted classification of a record shall not include considerations of weighing public and
             35230      private interests regarding access to a properly classified record as contained in Subsection
             35231      [ 63-2-403 ] 63G-2-403 (11)(b) or [ 63-2-404 ] 63G-2-404 (8) or Section [ 63-2-308 ] 63G-2-309 .
             35232      Nothing in this Subsection (2) shall be construed to limit the authority of the State Board of
             35233      Regents to reclassify and disclose a record of a public institution of higher education.
             35234          Section 785. Section 53B-16-304 is amended to read:
             35235           53B-16-304. Business confidentiality claims.
             35236          (1) (a) Any person who provides to a public institution of higher education a record that
             35237      the person believes should be protected under a provision listed in Subsection [ 63-2-308 ]
             35238      63G-2-309 (1)(b)(i), restricted under Section 53B-16-302 , or both protected under a provision
             35239      listed in Subsection [ 63-2-308 ] 63G-2-309 (1)(b)(i) and restricted under Section 53B-16-302 ,
             35240      shall provide the public institution of higher education:
             35241          (i) a written claim of business confidentiality; and
             35242          (ii) a concise statement of reasons supporting the claim of business confidentiality.
             35243          (b) The person described in Subsection (1)(a) shall make the filing at the
             35244      commencement of:
             35245          (i) the sponsored research project; or
             35246          (ii) the technology transfer process.
             35247          (c) A claim of business confidentiality submitted under this Subsection (1) shall cover
             35248      all protected and restricted records exchanged during the:
             35249          (i) sponsored research project; or
             35250          (ii) technology transfer process.
             35251          (2) The inadvertent failure to make a legally adequate claim of business confidentiality
             35252      at the time required by Subsection (1) does not prejudice the claimant's right to make a legally
             35253      adequate claim at a different time before disclosure of the record.

             35254          Section 786. Section 53B-16-305 is amended to read:
             35255           53B-16-305. Applicability of the Government Records Access and Management
             35256      Act.
             35257          Except as otherwise provided by this part, the provisions of [Title 63, Chapter 2] Title
             35258      63G, Chapter 2, Government Records Access and Management Act, will apply to restricted
             35259      technology transfer or sponsored research records as defined in this part, as if the records were
             35260      protected records as defined by [Title 63, Chapter 2] Title 63G, Chapter 2.
             35261          Section 787. Section 53B-17-603 is amended to read:
             35262           53B-17-603. Curation and deposit of specimens.
             35263          (1) For purposes of this section:
             35264          (a) "Collections" is defined as provided in Section 9-8-302 .
             35265          (b) "Curation facility" means:
             35266          (i) the museum;
             35267          (ii) an accredited facility meeting federal curation standards; or
             35268          (iii) an appropriate state park.
             35269          (c) "Museum" means the Utah Museum of Natural History.
             35270          (d) "Repository" means:
             35271          (i) a facility designated by the museum through memoranda of agreement; or
             35272          (ii) a place of reburial.
             35273          (e) "School and institutional trust lands" are those properties defined in Section
             35274      53C-1-103 .
             35275          (2) The museum shall make rules to ensure the adequate curation of all collections from
             35276      lands owned or controlled by the state or its subdivisions. The rules shall:
             35277          (a) conform to, but not be limited by, federal curation policy;
             35278          (b) recognize that collections recovered from school and institutional trust lands are
             35279      owned by the respective trust, and shall be made available for exhibition as the beneficiaries of
             35280      the respective trust may request, subject to museum curation policy and the curation facility's
             35281      budgetary priorities;

             35282          (c) recognize that any collections obtained in exchange for collections found on school
             35283      and institutional trust lands shall be owned by the respective trust; and
             35284          (d) recognize that if, at its discretion, the curation facility makes and sells reproductions
             35285      derived from collections found on school or institutional trust lands, any monies obtained from
             35286      these sales shall be given to the respective trust, but the curation facility may retain monies
             35287      sufficient to recover the direct costs of preparation for sale and a reasonable fee for handling the
             35288      sale.
             35289          (3) (a) The museum may enter into memoranda of agreement with other repositories
             35290      located in and outside the state to act as its designee for the curation of collections.
             35291          (b) In these memoranda, the museum may delegate some or all of its authority to
             35292      curate.
             35293          (4) (a) All collections recovered from lands owned or controlled by the state or its
             35294      subdivisions shall be deposited at the museum, a curation facility, or at a repository within a
             35295      reasonable time after the completion of field work.
             35296          (b) The museum shall make rules establishing procedures for selection of the
             35297      appropriate curation facility or repository.
             35298          (c) The rules shall consider:
             35299          (i) whether the permittee, authorized pursuant to Section 9-8-305 , is a curation facility;
             35300          (ii) the appropriateness of reburial;
             35301          (iii) the proximity of the curation facility or repository to the point of origin of the
             35302      collection;
             35303          (iv) the preference of the owner of the land on which the collection was found;
             35304          (v) the nature of the collection and the repository's or curation facility's ability and
             35305      desire to curate the collection in question, and ability to maximize the scientific, educational,
             35306      and cultural benefits for the people of the state and the school and institutional trusts;
             35307          (vi) selection of a second curation facility or repository, if the original repository or
             35308      curation facility becomes unable to curate the collections under its care; and
             35309          (vii) establishment of an arbitration process for the resolution of disputes over the

             35310      location of a curation facility or repository, which shall include an ultimate arbitration authority
             35311      consisting of the landowner, the state archaeologist or paleontologist, and a representative from
             35312      the governor's office.
             35313          (d) The repository or curation facility may charge a curation fee commensurate with the
             35314      costs of maintaining those collections, except that a fee may not be charged to the respective
             35315      trust for collections found on school or institutional trust lands.
             35316          (5) The repository or curation facility shall make specimens available through loans to
             35317      museums and research institutions in and out of the state when, in the opinion of the repository
             35318      or curation facility:
             35319          (a) the use of the specimens is appropriate; and
             35320          (b) arrangements are made for safe custodianship of the specimens.
             35321          (6) The museum shall comply with the procedures of [Title 63, Chapter 46a] Title 63G,
             35322      Chapter 3, Utah Administrative Rulemaking Act, regarding publication of its rules in the Utah
             35323      State Bulletin and the Utah Administrative Code.
             35324          Section 788. Section 53C-1-201 is amended to read:
             35325           53C-1-201. Creation of administration -- Purpose -- Director.
             35326          (1) (a) There is established within state government the School and Institutional Trust
             35327      Lands Administration.
             35328          (b) The administration shall manage all school and institutional trust lands and assets
             35329      within the state, except as otherwise provided in Title 53C, Chapter 3, Deposit and Allocation
             35330      of Revenue from Trust Lands, and Sections 51-7a-201 and 51-7a-202 .
             35331          (2) The administration is an independent state agency and not a division of any other
             35332      department.
             35333          (3) (a) It is subject to the usual legislative and executive department controls except as
             35334      provided in this Subsection (3).
             35335          (b) (i) The director may make rules as approved by the board that allow the
             35336      administration to classify a business proposal submitted to the administration as protected under
             35337      Section [ 63-2-304 ] 63G-2-305 , for as long as is necessary to evaluate the proposal.

             35338          (ii) The administration shall return the proposal to the party who submitted the
             35339      proposal, and incur no further duties under [Title 63, Chapter 2] Title 63G, Chapter 2,
             35340      Government Records Access and Management Act, if the administration determines not to
             35341      proceed with the proposal.
             35342          (iii) The administration shall classify the proposal pursuant to law if it decides to
             35343      proceed with the proposal.
             35344          (iv) Section [ 63-2-403 ] 63G-2-403 does not apply during the review period.
             35345          (c) The director shall make rules in compliance with [Title 63, Chapter 46a] Title 63G,
             35346      Chapter 3, Utah Administrative Rulemaking Act, except that the director, with the board's
             35347      approval, may establish a procedure for the expedited approval of rules, based on written
             35348      findings by the director showing:
             35349          (i) the changes in business opportunities affecting the assets of the trust;
             35350          (ii) the specific business opportunity arising out of those changes which may be lost
             35351      without the rule or changes to the rule;
             35352          (iii) the reasons the normal procedures under Section [ 63-46a-4 ] 63G-3-301 cannot be
             35353      met without causing the loss of the specific opportunity;
             35354          (iv) approval by at least five board members; and
             35355          (v) that the director has filed a copy of the rule and a rule analysis, stating the specific
             35356      reasons and justifications for its findings, with the Division of Administrative Rules and notified
             35357      interested parties as provided in Subsection [ 63-46a-4 ] 63G-3-301 (8).
             35358          (d) (i) The administration shall comply with Title 67, Chapter 19, Utah State Personnel
             35359      Management Act, except as provided in this Subsection (3)(d).
             35360          (ii) The board may approve, upon recommendation of the director, that exemption for
             35361      specific positions under Subsections 67-19-12 (2) and 67-19-15 (1) is required in order to enable
             35362      the administration to efficiently fulfill its responsibilities under the law. The director shall
             35363      consult with the executive director of the Department of Human Resource Management prior to
             35364      making such a recommendation.
             35365          (iii) The positions of director, deputy director, associate director, assistant director,

             35366      legal counsel appointed under Section 53C-1-305 , administrative assistant, and public affairs
             35367      officer are exempt under Subsections 67-19-12 (2) and 67-19-15 (1).
             35368          (iv) Salaries for exempted positions, except for the director, shall be set by the director,
             35369      after consultation with the executive director of the Department of Human Resource
             35370      Management, within ranges approved by the board. The board and director shall consider
             35371      salaries for similar positions in private enterprise and other public employment when setting
             35372      salary ranges.
             35373          (v) The board may create an annual incentive and bonus plan for the director and other
             35374      administration employees designated by the board, based upon the attainment of financial
             35375      performance goals and other measurable criteria defined and budgeted in advance by the board.
             35376          (e) The administration shall comply with [Title 63, Chapter 56] Title 63G, Chapter 6,
             35377      Utah Procurement Code, except where the board approves, upon recommendation of the
             35378      director, exemption from the Utah Procurement Code, and simultaneous adoption of rules
             35379      under [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             35380      procurement, which enable the administration to efficiently fulfill its responsibilities under the
             35381      law.
             35382          (f) (i) The board and director shall review the exceptions under this Subsection (3) and
             35383      make recommendations for any modification, if required, which the Legislature would be asked
             35384      to consider during its annual general session.
             35385          (ii) The board and director may include in their recommendations any other proposed
             35386      exceptions from the usual executive and legislative controls the board and director consider
             35387      necessary to accomplish the purpose of this title.
             35388          (4) The administration is managed by a director of school and institutional trust lands
             35389      appointed by a majority vote of the board of trustees with the consent of the governor.
             35390          (5) (a) The board of trustees shall provide policies for the management of the
             35391      administration and for the management of trust lands and assets.
             35392          (b) The board shall provide policies for the ownership and control of Native American
             35393      remains that are discovered or excavated on school and institutional trust lands in consultation

             35394      with the Division of Indian Affairs and giving due consideration to Title 9, Chapter 9, Part 4,
             35395      Native American Grave Protection and Repatriation Act. The director may make rules in
             35396      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             35397      Act, to implement policies provided by the board regarding Native American remains.
             35398          (6) In connection with joint ventures for the development of trust lands and minerals
             35399      approved by the board under Sections 53C-1-303 and 53C-2-401 , the administration may
             35400      become a member of a limited liability company under Title 48, Chapter 2c, Utah Revised
             35401      Limited Liability Company Act, and is considered a person under Section 48-2c-102 .
             35402          Section 789. Section 53C-1-202 is amended to read:
             35403           53C-1-202. Board of trustees membership -- Nomination list -- Qualifications --
             35404      Terms -- Replacement -- Chair -- Quorum.
             35405          (1) There is established the School and Institutional Trust Lands Board of Trustees.
             35406          (2) The board shall consist of seven members appointed on a nonpartisan basis by the
             35407      governor with the consent of the Senate for nonconsecutive six-year terms.
             35408          (3) (a) Of the initial appointments to the board, the governor shall appoint one member
             35409      to serve a six-year term, one member to serve a five-year term, one member to serve a four-year
             35410      term, one member to serve a three-year term, one member to serve a two-year term, and one
             35411      member to serve a one-year term.
             35412          (b) All subsequent appointments shall be for a term of six years, except if a vacancy
             35413      occurs, the governor shall appoint a replacement, following the procedures set forth in
             35414      Subsections (2), (4), (5), and (6), to fill the unexpired term.
             35415          (c) Any member of the board who has served less than six years upon the expiration of
             35416      that member's term is eligible for a consecutive reappointment.
             35417          (d) Neither the term provision in Subsection (2) nor Subsection (3) applies to an
             35418      appointment made under Subsection (5).
             35419          (4) (a) The governor shall select six of the seven appointees to the board from a
             35420      nomination list of at least two candidates for each position or vacancy submitted pursuant to
             35421      Section 53C-1-203 .

             35422          (b) The governor may request an additional nomination list of at least two candidates
             35423      from the nominating committee if the initial list of candidates for a given position is
             35424      unacceptable.
             35425          (c) (i) If the governor fails to select an appointee within 60 days after receipt of the
             35426      initial list or within 60 days after the receipt of an additional list, the nominating committee shall
             35427      make an interim appointment by majority vote.
             35428          (ii) The interim appointee shall serve until the matter is resolved by the committee and
             35429      the governor or until replaced pursuant to this chapter.
             35430          (5) (a) The governor may appoint one member without requiring a nomination list.
             35431          (b) The member appointed under Subsection (5)(a) serves at the pleasure of the
             35432      governor.
             35433          (6) (a) Each board candidate shall possess outstanding professional qualifications
             35434      pertinent to the purposes and activities of the trust.
             35435          (b) The board shall represent the following areas of expertise:
             35436          (i) nonrenewable resource management or development;
             35437          (ii) renewable resource management or development; and
             35438          (iii) real estate.
             35439          (c) Other qualifications which are pertinent for membership to the board are expertise in
             35440      any of the following areas:
             35441          (i) business;
             35442          (ii) investment banking;
             35443          (iii) finance;
             35444          (iv) trust administration;
             35445          (v) asset management; and
             35446          (vi) the practice of law in any of the areas referred to in Subsections (6)(b) and (6)(c)(i)
             35447      through (v).
             35448          (7) The board of trustees shall select a chair from its membership.
             35449          (8) Before assuming a position on the board, each member shall take an oath of office.

             35450          (9) Four members of the board constitute a quorum for the transaction of business.
             35451          (10) The governor or five board members may, for cause, remove a member of the
             35452      board.
             35453          (11) An aggrieved party to a final action by the board may obtain judicial review of that
             35454      action under Sections [ 63-46b-15 ] 63G-4-402 and [ 63-46b-16 ] 63G-4-403 .
             35455          Section 790. Section 53C-1-304 is amended to read:
             35456           53C-1-304. Rules to ensure procedural due process -- Board review of director
             35457      action -- Judicial review.
             35458          (1) The board shall make rules to ensure procedural due process in the resolution of
             35459      complaints concerning actions by the board, director, and the administration.
             35460          (2) An aggrieved party to a final action by the director or the administration may
             35461      petition the board for administrative review of the decision.
             35462          (3) (a) The board may appoint a qualified hearing examiner for purposes of taking
             35463      evidence and making recommendations for board action.
             35464          (b) The board shall consider the recommendations of the examiner in making decisions.
             35465          (4) (a) The board shall uphold the decision of the director or the administration unless it
             35466      finds, by a preponderance of the evidence, that the decision violated applicable law, policy, or
             35467      rules.
             35468          (b) The board shall base its final actions on findings and conclusions and shall inform
             35469      the aggrieved party of its right to judicial review.
             35470          (5) An aggrieved party to a final action by the board may obtain judicial review of that
             35471      action under Sections [ 63-46b-15 ] 63G-4-402 and [ 63-46b-16 ] 63G-4-403 .
             35472          Section 791. Section 53C-2-201 is amended to read:
             35473           53C-2-201. Planning procedures -- Assistance from other state agencies -- Plans
             35474      consistent with trust responsibilities.
             35475          (1) The director:
             35476          (a) shall develop rules describing the degree of planning necessary for each category of
             35477      activity on trust lands; and

             35478          (b) may request other state agencies to generate technical data or other support services
             35479      for the development and implementation of trust lands plans.
             35480          (2) The plans for school and institutional trust lands shall be:
             35481          (a) developed in a manner consistent with the director's responsibility to insure that the
             35482      interest of the trust beneficiaries is paramount; and
             35483          (b) if required by rule, approved by the board.
             35484          (3) The director shall make rules under [Title 63, Chapter 46a] Title 63G, Chapter 3,
             35485      Utah Administrative Rulemaking Act, for notifying and consulting with interested parties under
             35486      this section.
             35487          (4) Subject to Subsection (1), the development of a written plan is not a prerequisite to
             35488      actions by the director.
             35489          Section 792. Section 54-1-2.5 is amended to read:
             35490           54-1-2.5. Procedures -- Adjudicative proceedings.
             35491          Except as specifically provided to the contrary in Chapter 7, the commission shall
             35492      comply with the procedures and requirements of [Title 63, Chapter 46b,] Title 63G, Chapter 4,
             35493      Administrative Procedures Act, in its adjudicative proceedings.
             35494          Section 793. Section 54-3-28 is amended to read:
             35495           54-3-28. Notice required of certain public utilities before preparing or amending
             35496      a long-range plan or acquiring certain property.
             35497          (1) As used in this section:
             35498          (a) (i) "Affected entity" means each county, municipality, local district under Title 17B,
             35499      Limited Purpose Local Government Entities - Local Districts, special service district, school
             35500      district, interlocal cooperation entity established under Title 11, Chapter 13, Interlocal
             35501      Cooperation Act, and specified public utility:
             35502          (A) whose services or facilities are likely to require expansion or significant
             35503      modification because of expected uses of land under a proposed long-range plan or under
             35504      proposed amendments to a long-range plan; or
             35505          (B) that has filed with the specified public utility a copy of the general or long-range

             35506      plan of the county, municipality, local district, special service district, school district, interlocal
             35507      cooperation entity, or specified public utility.
             35508          (ii) "Affected entity" does not include the specified public utility that is required under
             35509      Subsection (2) to provide notice.
             35510          (b) "Specified public utility" means an electrical corporation, gas corporation, or
             35511      telephone corporation, as those terms are defined in Section 54-2-1 .
             35512          (2) (a) If a specified public utility prepares a long-range plan regarding its facilities
             35513      proposed for the future in a county of the first or second class or amends an already existing
             35514      long-range plan, the specified public utility shall, before preparing a long-range plan or
             35515      amendments to an existing long-range plan, provide written notice, as provided in this section,
             35516      of its intent to prepare a long-range plan or to amend an existing long-range plan.
             35517          (b) Each notice under Subsection (2) shall:
             35518          (i) indicate that the specified public utility intends to prepare a long-range plan or to
             35519      amend a long-range plan, as the case may be;
             35520          (ii) describe or provide a map of the geographic area that will be affected by the
             35521      long-range plan or amendments to a long-range plan;
             35522          (iii) be sent to:
             35523          (A) each county in whose unincorporated area and each municipality in whose
             35524      boundaries is located the land on which the proposed long-range plan or amendments to a
             35525      long-range plan are expected to indicate that the proposed facilities will be located;
             35526          (B) each affected entity;
             35527          (C) the Automated Geographic Reference Center created in Section 63F-1-506 ;
             35528          (D) each association of governments, established pursuant to an interlocal agreement
             35529      under Title 11, Chapter 13, Interlocal Cooperation Act, of which a county or municipality
             35530      described in Subsection (2)(b)(iii)(A) is a member; and
             35531          (E) the state planning coordinator appointed under Section [ 63-38d-202 ] 63J-4-202 ;
             35532          (iv) with respect to the notice to counties and municipalities described in Subsection
             35533      (2)(b)(iii)(A) and affected entities, invite them to provide information for the specified public

             35534      utility to consider in the process of preparing, adopting, and implementing the long-range plan
             35535      or amendments to a long-range plan concerning:
             35536          (A) impacts that the use of land proposed in the proposed long-range plan or
             35537      amendments to a long-range plan may have on the county, municipality, or affected entity; and
             35538          (B) uses of land that the county, municipality, or affected entity is planning or
             35539      considering that may conflict with the proposed long-range plan or amendments to a long-range
             35540      plan; and
             35541          (v) include the address of an Internet website, if the specified public utility has one, and
             35542      the name and telephone number of a person where more information can be obtained concerning
             35543      the specified public utility's proposed long-range plan or amendments to a long-range plan.
             35544          (3) (a) Except as provided in Subsection (3)(d), each specified public utility intending to
             35545      acquire real property in a county of the first or second class for the purpose of expanding its
             35546      infrastructure or other facilities used for providing the services that the specified public utility is
             35547      authorized to provide shall provide written notice, as provided in this Subsection (3), of its
             35548      intent to acquire the property if the intended use of the property is contrary to:
             35549          (i) the anticipated use of the property under the county or municipality's general plan; or
             35550          (ii) the property's current zoning designation.
             35551          (b) Each notice under Subsection (3)(a) shall:
             35552          (i) indicate that the specified public utility intends to acquire real property;
             35553          (ii) identify the real property; and
             35554          (iii) be sent to:
             35555          (A) each county in whose unincorporated area and each municipality in whose
             35556      boundaries the property is located; and
             35557          (B) each affected entity.
             35558          (c) A notice under this Subsection (3) is a protected record as provided in Subsection
             35559      [ 63-2-304 ] 63G-2-305 (7).
             35560          (d) (i) The notice requirement of Subsection (3)(a) does not apply if the specified public
             35561      utility previously provided notice under Subsection (2) identifying the general location within

             35562      the municipality or unincorporated part of the county where the property to be acquired is
             35563      located.
             35564          (ii) If a specified public utility is not required to comply with the notice requirement of
             35565      Subsection (3)(a) because of application of Subsection (3)(d)(i), the specified public utility shall
             35566      provide the notice specified in Subsection (3)(a) as soon as practicable after its acquisition of
             35567      the real property.
             35568          Section 794. Section 54-5-1.5 is amended to read:
             35569           54-5-1.5. Special regulation fee -- Supplemental Levy Committee -- Supplemental
             35570      fee -- Fee for electrical cooperatives.
             35571          (1) (a) A special fee to defray the cost of regulation is imposed upon all public utilities
             35572      subject to the jurisdiction of the Public Service Commission.
             35573          (b) The special fee is in addition to any charge now assessed, levied, or required by law.
             35574          (2) (a) The executive director of the Department of Commerce shall determine the
             35575      special fee for the Department of Commerce.
             35576          (b) The chair of the Public Service Commission shall determine the special fee for the
             35577      Public Service Commission.
             35578          (c) The fee shall be assessed as a uniform percentage of the gross operating revenue for
             35579      the preceding calendar year derived from each public utility's business and operations during
             35580      that period within this state, excluding income derived from interstate business. Gross
             35581      operating revenue shall not include income to a wholesale electric cooperative derived from the
             35582      sale of power to a rural electric cooperative which resells that power within the state.
             35583          (3) (a) The executive director of the Department of Commerce shall notify each public
             35584      utility subject to the provisions of this chapter of the amount of the fee.
             35585          (b) The fee is due and payable on or before July 1 of each year.
             35586          (4) (a) It is the intent of the Legislature that the public utilities provide all of the funds
             35587      for the administration, support, and maintenance of:
             35588          (i) the Public Service Commission;
             35589          (ii) state agencies within the Department of Commerce involved in the regulation of

             35590      public utilities; and
             35591          (iii) expenditures by the attorney general for utility regulation.
             35592          (b) Notwithstanding Subsection (4)(a), the fee imposed by Subsection (1) shall not
             35593      exceed the greater of:
             35594          (i) (A) for a public utility other than an electrical cooperative, .3% of the public utility's
             35595      gross operating revenues for the preceding calendar year; or
             35596          (B) for an electrical cooperative, .15% of the electrical cooperative's gross operating
             35597      revenues for the preceding calendar year; or
             35598          (ii) $50.
             35599          (5) (a) There is created a Supplemental Levy Committee to levy additional assessments
             35600      on public utilities when unanticipated costs of regulation occur in any fiscal year.
             35601          (b) The Supplemental Levy Committee shall consist of:
             35602          (i) one member selected by the executive director of the Department of Commerce;
             35603          (ii) one member selected by the chairman of the Public Service Commission;
             35604          (iii) two members selected by the three public utilities that paid the largest percent of
             35605      the current regulatory fee; and
             35606          (iv) one member selected by the four appointed members.
             35607          (c) (i) The members of the Supplemental Levy Committee shall be selected within ten
             35608      working days after the executive director of the Department of Commerce gives written notice
             35609      to the Public Service Commission and the public utilities that a supplemental levy committee is
             35610      needed.
             35611          (ii) If the members of the Supplemental Levy Committee have not been appointed
             35612      within the time prescribed, the governor shall appoint the members of the Supplemental Levy
             35613      Committee.
             35614          (d) (i) During any state fiscal year, the Supplemental Levy Committee, by a majority
             35615      vote and subject to audit by the state auditor, may impose a supplemental fee on the regulated
             35616      utilities for the purpose of defraying any increased cost of regulation.
             35617          (ii) The supplemental fee imposed upon the utilities shall equal a percentage of their

             35618      gross operating revenue for the preceding calendar year.
             35619          (iii) The aggregate of all fees, including any supplemental fees assessed, shall not exceed
             35620      .3% of the gross operating revenue of the utilities assessed for the preceding calendar year.
             35621          (iv) Payment of the supplemental fee is due within 30 days after receipt of the
             35622      assessment.
             35623          (v) The utility may, within ten days after receipt of assessment, request a hearing before
             35624      the Public Service Commission if it questions the need for, or the reasonableness of, the
             35625      supplemental fee.
             35626          (e) (i) Any supplemental fee collected to defray the cost of regulation shall be
             35627      transferred to the state treasurer as a departmental collection according to the provisions of
             35628      Section [ 63-38-9 ] 63J-1-404 .
             35629          (ii) Supplemental fees are excess collections, credited according to the procedures of
             35630      Section [ 63-38-9 ] 63J-1-404 .
             35631          (iii) Charges billed to the Department of Commerce by any other state department,
             35632      institution, or agency for services rendered in connection with regulation of a utility shall be
             35633      credited by the state treasurer from the special or supplemental fees collected to the
             35634      appropriations account of the entity providing that service according to the procedures provided
             35635      in [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures Act.
             35636          (6) (a) For purposes of this section, "electrical cooperative" means:
             35637          (i) a distribution electrical cooperative; or
             35638          (ii) a wholesale electrical cooperative.
             35639          (b) Subject to Subsection (6)(c), if the regulation of one or more electrical cooperatives
             35640      causes unanticipated costs of regulation in a fiscal year, the commission may impose a
             35641      supplemental fee on the one or more electrical cooperatives in this state responsible for the
             35642      increased cost of regulation.
             35643          (c) The aggregate of all fees imposed under this section on an electrical cooperative in a
             35644      calendar year shall not exceed the greater of:
             35645          (i) .3% of the electrical cooperative's gross operating revenues for the preceding

             35646      calendar year; or
             35647          (ii) $50.
             35648          Section 795. Section 54-7-15 is amended to read:
             35649           54-7-15. Review or rehearing by commission -- Application -- Procedure --
             35650      Prerequisite to court action -- Effect of commission decisions.
             35651          (1) Before seeking judicial review of the commission's action, any party, stockholder,
             35652      bondholder, or other person pecuniarily interested in the public utility who is dissatisfied with an
             35653      order of the commission shall meet the requirements of this section.
             35654          (2) (a) After any order or decision has been made by the commission, any party to the
             35655      action or proceeding, any stockholder, bondholder, or other party pecuniarily interested in the
             35656      public utility affected may apply for rehearing of any matters determined in the action or
             35657      proceeding.
             35658          (b) An applicant may not urge or rely on any ground not set forth in the application in
             35659      an appeal to any court.
             35660          (c) Any application for rehearing not granted by the commission within 20 days is
             35661      denied.
             35662          (d) (i) If the commission grants any application for rehearing without suspending the
             35663      order involved, the commission shall issue its decision on rehearing within 20 days after final
             35664      submission.
             35665          (ii) If the commission fails to render its decision on rehearing within 20 days, the order
             35666      involved is affirmed.
             35667          (e) Unless an order of the commission directs that an order is stayed or postponed, an
             35668      application for review or rehearing does not excuse any corporation or person from complying
             35669      with and obeying any order or decision of the commission.
             35670          (3) Any order or decision on rehearing that abrogates, changes, or modifies an original
             35671      order or decision has the same force and effect as an original order or decision, but does not
             35672      affect any right, or the enforcement of any right, arising from the original order or decision
             35673      unless so ordered by the commission.

             35674          (4) An order of the commission, including a decision on rehearing:
             35675          (a) shall have binding force and effect only with respect to a public utility that is an
             35676      actual party to the proceeding in which the order is rendered; and
             35677          (b) does not determine any right, privilege, obligation, duty, constraint, burden, or
             35678      responsibility with respect to a public utility that is not a party to the proceeding in which the
             35679      order is rendered unless, in accordance with Subsection [ 63-46a-3 ] 63G-3-201 (6), the
             35680      commission makes a rule that incorporates the one or more principles of law that:
             35681          (i) are established by the order;
             35682          (ii) are not in commission rules at the time of the order; and
             35683          (iii) affect the right, privilege, obligation, duty, constraint, burden, or responsibility with
             35684      respect to the public utility.
             35685          Section 796. Section 54-8b-2.1 is amended to read:
             35686           54-8b-2.1. Competitive entry.
             35687          (1) Notwithstanding any provision of Section 54-4-25 to the contrary, the commission
             35688      may issue a certificate to a telecommunications corporation authorizing it to compete in
             35689      providing local exchange services or other public telecommunications services in all or part of
             35690      the service territory of an incumbent telephone corporation, except until December 31, 1997, a
             35691      telecommunications corporation may not receive a certificate to compete in providing local
             35692      exchange service within any local exchange with fewer than 5,000 access lines that is owned or
             35693      controlled by an incumbent telephone corporation with fewer than 30,000 access lines in the
             35694      state. The procedure specified in Subsection (3)(c) for excluding competition within a local
             35695      exchange with fewer than 5,000 access lines shall apply on December 31, 1997 or thereafter.
             35696          (2) The commission shall issue a certificate to the applying telecommunications
             35697      corporation if the commission determines that:
             35698          (a) the applicant has sufficient technical, financial, and managerial resources and abilities
             35699      to provide the public telecommunications services applied for; and
             35700          (b) the issuance of the certificate to the applicant is in the public interest.
             35701          (3) (a) The commission shall process the application in accordance with [Title 63,

             35702      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             35703          (b) Each telecommunications corporation holding a certificate to provide public
             35704      telecommunications service within the geographic area where an applicant is seeking to provide
             35705      telecommunications service shall be provided notice of the application and granted automatic
             35706      status as an intervenor.
             35707          (c) An intervening incumbent telephone corporation serving fewer than 30,000 access
             35708      lines in the state may petition the commission to exclude from an application filed pursuant to
             35709      Subsection (1) any local exchange with fewer than 5,000 access lines that is owned or
             35710      controlled by the intervening incumbent telephone corporation. Upon finding that the action is
             35711      consistent with the public interest, the commission shall order that the application exclude such
             35712      local exchange.
             35713          (d) The commission shall approve or deny the application under this section within 240
             35714      days after it is filed. If the commission has not acted on an application within 240 days, the
             35715      application is considered granted.
             35716          (4) If the commission issues a certificate to a competitive telecommunications
             35717      corporation to provide local exchange services in a local exchange that has fewer than 5,000
             35718      lines and that is controlled by an incumbent telephone corporation with fewer than 30,000
             35719      access lines in the state, the commission shall impose an obligation upon the competitive
             35720      telecommunications corporation to provide public telecommunications services to any customer
             35721      or class of customers who requests service within the local exchange. The competing
             35722      telecommunications corporation's obligation to serve shall be no greater than that of the
             35723      incumbent telephone corporation.
             35724          (5) An incumbent telephone corporation with fewer than 30,000 access lines in the state
             35725      may not be required to become a carrier of intrastate toll services.
             35726          Section 797. Section 54-8b-10 is amended to read:
             35727           54-8b-10. Imposing a surcharge to provide hearing and speech impaired persons
             35728      with telecommunication devices -- Definitions -- Procedures for establishing program --
             35729      Surcharge -- Administration and disposition of surcharge moneys.

             35730          (1) As used in this section:
             35731          (a) "Certified deaf or severely hearing or speech impaired person" means any state
             35732      resident who:
             35733          (i) is so certified by:
             35734          (A) a licensed physician;
             35735          (B) an otolaryngologist;
             35736          (C) a speech language pathologist;
             35737          (D) an audiologist; or
             35738          (E) a qualified state agency; and
             35739          (ii) qualifies for assistance under any low income public assistance program
             35740      administered by a state agency.
             35741          (b) "Certified interpreter" means a person who is a certified interpreter under Title 53A,
             35742      Chapter 26a, Interpreter Services for the Hearing Impaired Act.
             35743          (c) (i) "Telecommunication device" means any mechanical adaptation device that
             35744      enables a deaf or severely hearing or speech impaired person to use the telephone.
             35745          (ii) "Telecommunication device" includes:
             35746          (A) telecommunication devices for the deaf (TDD);
             35747          (B) telephone amplifiers;
             35748          (C) telephone signal devices;
             35749          (D) artificial larynxes; and
             35750          (E) adaptive equipment for TDD keyboard access.
             35751          (2) The commission shall hold hearings to establish a program whereby any certified
             35752      deaf or severely hearing or speech impaired customer of a telephone corporation that provides
             35753      service through a local exchange or of a wireless telecommunications provider may obtain a
             35754      telecommunication device capable of serving the customer at no charge to the customer beyond
             35755      the rate for basic service.
             35756          (3) (a) The program described in Subsection (2) shall provide a dual party relay system
             35757      using third party intervention to connect a certified deaf or severely hearing or speech impaired

             35758      person with a normal hearing person by way of telecommunication devices designed for that
             35759      purpose.
             35760          (b) The commission may, by rule, establish the type of telecommunications device to be
             35761      provided to ensure functional equivalence.
             35762          (4) (a) The commission shall impose a surcharge on each residence and business access
             35763      line of each customer to the local exchange of any telephone corporation providing such lines in
             35764      this state to cover the costs of:
             35765          (i) the program described in Subsection (2); and
             35766          (ii) payments made under Subsection (5).
             35767          (b) The commission shall establish by rule the amount to be charged under this section,
             35768      which may not exceed 25 cents per residence and business access line.
             35769          (c) The telephone corporation shall collect the surcharge from its customers and
             35770      transfer the money collected to the commission under rules adopted by the commission.
             35771          (d) The surcharge shall be separately identified on customer bills.
             35772          (5) (a) Any money collected from the surcharge imposed under Subsection (4) shall be
             35773      deposited in the state treasury as dedicated credits to be administered as determined by the
             35774      Public Service Commission.
             35775          (b) These dedicated credits may be used only:
             35776          (i) for the purchase, maintenance, repair, and distribution of telecommunication devices;
             35777          (ii) for the acquisition, operation, maintenance, and repair of a dual party relay system;
             35778          (iii) to reimburse telephone corporations for the expenses incurred in collecting and
             35779      transferring to the commission the surcharge imposed by the commission;
             35780          (iv) for the general administration of the program;
             35781          (v) to train persons in the use of telecommunications devices; and
             35782          (vi) by the commission to contract, in compliance with [Title 63, Chapter 56] Title 63G,
             35783      Chapter 6, Utah Procurement Code, with:
             35784          (A) an institution within the state system of higher education listed in Section
             35785      53B-1-102 for a program approved by the Board of Regents that trains persons to qualify as

             35786      certified interpreters; or
             35787          (B) the Division of Services to the Deaf and Hard of Hearing for a program that trains
             35788      persons to qualify as certified interpreters.
             35789          (c) (i) The commission shall make rules under [Title 63, Chapter 46a] Title 63G,
             35790      Chapter 3, Utah Administrative Rulemaking Act, for the administration of monies under
             35791      Subsection (5)(b)(vi).
             35792          (ii) In the initial rulemaking to determine the administration of monies under Subsection
             35793      (5)(b)(vi), the commission shall give notice and hold a public hearing.
             35794          (d) Monies received by the commission under Subsection (4) are nonlapsing.
             35795          (6) (a) The telephone surcharge need not be collected by a local exchange company if
             35796      the amount collected would be less than the actual administrative costs of the collection.
             35797          (b) If Subsection (6)(a) applies, the local exchange company shall submit to the
             35798      commission, in lieu of the revenue from the surcharge collection, a breakdown of the anticipated
             35799      costs and the expected revenue from the collection, showing that the costs exceed the revenue.
             35800          (7) The commission shall solicit the advice, counsel, and physical assistance of severely
             35801      hearing or speech impaired persons and the organizations serving them in the design and
             35802      implementation of the program.
             35803          Section 798. Section 54-14-104 is amended to read:
             35804           54-14-104. Rules and procedures.
             35805          The board may, pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             35806      Administrative Rulemaking Act, adopt rules governing proceedings under this chapter
             35807      consistent with this chapter and [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             35808      Procedures Act.
             35809          Section 799. Section 54-14-307 is amended to read:
             35810           54-14-307. Stay of board's decision pending review or appeal.
             35811          (1) A petition for review, rehearing, or reconsideration or a petition for judicial review
             35812      does not stay or suspend the effectiveness of a written decision of the board.
             35813          (2) Any party seeking to stay the effectiveness of a decision of the board shall seek a

             35814      stay under Section [ 63-46b-18 ] 63G-4-405 .
             35815          Section 800. Section 54-17-102 is amended to read:
             35816           54-17-102. Definitions.
             35817          As used in this chapter:
             35818          (1) "Affected electrical utility" means an electrical corporation with at least 200,000
             35819      retail customers in the state.
             35820          (2) "Benchmark option" means an energy resource against which bids in an open bid
             35821      process may be evaluated that:
             35822          (a) could be constructed or owned by:
             35823          (i) an affected electrical utility; or
             35824          (ii) an affiliate of an affected electrical utility; or
             35825          (b) may be a purchase of:
             35826          (i) electricity;
             35827          (ii) electric generating capacity; or
             35828          (iii) electricity and electric generating capacity.
             35829          (3) "Integrated resource plan" means a plan that contains:
             35830          (a) the demand and energy forecast by the affected electrical utility for at least a
             35831      ten-year period;
             35832          (b) the affected electrical utility's options for meeting the requirements shown in its load
             35833      and resource forecast in an economic and reliable manner, including:
             35834          (i) demand-side and supply-side options; and
             35835          (ii) a brief description and summary cost-benefit analysis, if available, of each option
             35836      that was considered;
             35837          (c) the affected electrical utility's assumptions and conclusions with respect to the effect
             35838      of the plan on the cost and reliability of energy service;
             35839          (d) a description of the external environmental and economic consequences of the plan
             35840      to the extent practicable; and
             35841          (e) any other data and analyses as the commission may require.

             35842          (4) "Significant energy resource" for an affected electrical utility means a resource that
             35843      consists of:
             35844          (a) a total of 100 megawatts or more of new generating capacity that has a dependable
             35845      life of ten or more years;
             35846          (b) a purchase of the following if the contract is for a term of ten or more years and not
             35847      less than 100 megawatts:
             35848          (i) electricity;
             35849          (ii) electric generating capacity; or
             35850          (iii) electricity and electrical generating capacity;
             35851          (c) the purchase or lease by an affected electrical utility from an affiliated company of:
             35852          (i) a generating facility;
             35853          (ii) electricity;
             35854          (iii) electrical generating capacity; or
             35855          (iv) electricity and electrical generating capacity;
             35856          (d) a contract with an option for the affected electrical utility or an affiliate to purchase
             35857      a resource that consists of not less than 100 megawatts or more of new generating capacity that
             35858      has a remaining dependable life of ten or more years; or
             35859          (e) a type of resource designated by the commission as a significant energy resource in
             35860      rules made by the commission in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             35861      Utah Administrative Rulemaking Act, after considering the affected electrical utility's integrated
             35862      resource plan and action plan.
             35863          (5) "Solicitation" means a request for proposals or other invitation for persons to
             35864      submit a bid or proposal through an open bid process for construction or acquisition of a
             35865      significant energy resource.
             35866          Section 801. Section 54-17-103 is amended to read:
             35867           54-17-103. Rulemaking.
             35868          (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             35869      Administrative Rulemaking Act, the commission:

             35870          (a) shall make rules when required by this chapter; and
             35871          (b) in addition to the rules required under Subsection (1)(a), may make rules necessary
             35872      for the implementation of this chapter.
             35873          (2) Notwithstanding a requirement that the commission make rules, the commission
             35874      may take action under this chapter before the commission makes a required rule including:
             35875          (a) approving a solicitation process under Part 2, Solicitation Process;
             35876          (b) approving a significant energy resource under Section 54-17-302 ;
             35877          (c) issuing an order under Section 54-17-304 regarding whether an affected electrical
             35878      utility should proceed with implementing a significant energy resource decision;
             35879          (d) approving an energy resource under Section 54-17-402 ; or
             35880          (e) issuing an order under Section 54-17-404 regarding whether an energy utility should
             35881      proceed with implementing a resource decision.
             35882          Section 802. Section 54-17-201 is amended to read:
             35883           54-17-201. Solicitation process required -- Exception.
             35884          (1) (a) An affected electrical utility shall comply with this chapter to acquire or
             35885      construct a significant energy resource after February 25, 2005.
             35886          (b) Notwithstanding Subsection (1)(a), this chapter does not apply to a significant
             35887      energy resource for which the affected electrical utility has issued a solicitation before February
             35888      25, 2005.
             35889          (2) (a) Except as provided in Subsection (3), to acquire or construct a significant
             35890      energy resource, an affected electrical utility shall conduct a solicitation process that is approved
             35891      by the commission.
             35892          (b) To obtain the approval of the commission of a solicitation process, the affected
             35893      electrical utility shall file with the commission a request for approval that includes:
             35894          (i) a description of the solicitation process the affected electrical utility will use;
             35895          (ii) a complete proposed solicitation; and
             35896          (iii) any other information the commission requires by rule made in accordance with
             35897      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

             35898          (c) In ruling on the request for approval of a solicitation process, the commission shall
             35899      determine whether the solicitation process:
             35900          (i) complies with this chapter and rules made in accordance with [Title 63, Chapter 46a]
             35901      Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
             35902          (ii) is in the public interest taking into consideration:
             35903          (A) whether it will most likely result in the acquisition, production, and delivery of
             35904      electricity at the lowest reasonable cost to the retail customers of an affected electrical utility
             35905      located in this state;
             35906          (B) long-term and short-term impacts;
             35907          (C) risk;
             35908          (D) reliability;
             35909          (E) financial impacts on the affected electrical utility; and
             35910          (F) other factors determined by the commission to be relevant.
             35911          (d) Before approving a solicitation process under this section the commission:
             35912          (i) may hold a public hearing; and
             35913          (ii) shall provide an opportunity for public comment.
             35914          (e) As part of its review of a solicitation process, the commission may provide the
             35915      affected electrical utility guidance on any additions or changes to its proposed solicitation
             35916      process.
             35917          (f) Unless the commission determines that additional time to analyze a solicitation
             35918      process is warranted and is in the public interest, within 90 days of the day on which the
             35919      affected electrical utility files a request for approval of the solicitation process, the commission
             35920      shall:
             35921          (i) approve a proposed solicitation process;
             35922          (ii) suggest modifications to a proposed solicitation process; or
             35923          (iii) reject a proposed solicitation process.
             35924          (3) Notwithstanding Subsection (2), an affected electrical utility may acquire or
             35925      construct a significant energy resource without conducting a solicitation process if it obtains a

             35926      waiver of the solicitation requirement in accordance with Section 54-17-501 .
             35927          (4) In accordance with the commission's authority under Subsection 54-12-2 (2), the
             35928      commission shall determine:
             35929          (a) whether this chapter or another competitive bidding procedure shall apply to a
             35930      purchase of a significant energy resource by an affected electrical utility from a small power
             35931      producer or cogenerator; and
             35932          (b) if this chapter applies as provided in Subsection (4)(a), the manner in which this
             35933      chapter applies to a purchase of a significant energy resource by an affected electrical utility
             35934      from a small power producer or cogenerator.
             35935          Section 803. Section 54-17-202 is amended to read:
             35936           54-17-202. Requirements for solicitation.
             35937          (1) The commission shall make rules, in accordance with [Title 63, Chapter 46a] Title
             35938      63G, Chapter 3, Utah Administrative Rulemaking Act, outlining the requirements for a
             35939      solicitation process. The rules required by this Subsection (1) shall include:
             35940          (a) the type of screening criteria an affected electrical utility may use in a solicitation
             35941      process including the risks an affected electrical utility may consider;
             35942          (b) the required disclosures by an affected electrical utility if a solicitation includes a
             35943      benchmark option;
             35944          (c) the required disclosures by an affected electrical utility related to the methodology
             35945      the affected electrical utility uses to evaluate bids; and
             35946          (d) the participation of an independent evaluator in a manner consistent with Section
             35947      54-17-203 .
             35948          (2) If an affected electrical utility is subject to regulation in more than one state
             35949      regarding the acquisition, construction, or cost recovery of a significant energy resource, in
             35950      making the rules required by Subsection (1), the commission may consider the impact of the
             35951      multistate regulation including requirements imposed by other states as to:
             35952          (a) the solicitation process;
             35953          (b) cost recovery of resources; and

             35954          (c) methods by which the affected electrical utility may be able to mitigate the potential
             35955      for cost disallowances.
             35956          Section 804. Section 54-17-203 is amended to read:
             35957           54-17-203. Independent evaluator.
             35958          (1) (a) The commission shall:
             35959          (i) appoint an independent evaluator to monitor any solicitation conducted by an
             35960      affected electrical utility under this chapter; and
             35961          (ii) oversee or direct the division to oversee the independent evaluator in monitoring
             35962      any solicitation conducted by an affected electrical utility under this chapter.
             35963          (b) The commission, in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             35964      Utah Administrative Procedures Act, shall make rules setting the qualifications of an
             35965      independent evaluator.
             35966          (2) The commission shall determine the method used to pay the fees and expenses for
             35967      the independent evaluator which may include:
             35968          (a) the payment of a bid fee by bidders to a solicitation; or
             35969          (b) (i) requiring the affected electrical utility to pay the fees and expenses; and
             35970          (ii) permitting an affected electrical utility to recover the amounts paid under this
             35971      Subsection (2)(b).
             35972          (3) (a) The independent evaluator may not make the decision as to which bid should be
             35973      awarded under the solicitation.
             35974          (b) The independent evaluator shall:
             35975          (i) actively monitor the solicitation process for fairness and compliance with
             35976      commission rules;
             35977          (ii) report regularly to:
             35978          (A) the commission; and
             35979          (B) others as directed by the commission;
             35980          (iii) develop one or more reports addressing:
             35981          (A) the solicitation process;

             35982          (B) any concerns of the independent evaluator related to the solicitation process; and
             35983          (C) the ultimate results of the solicitation process, including the opinions and
             35984      conclusions of the independent evaluator;
             35985          (iv) provide ongoing input regarding issues, concerns, and improvements in the
             35986      solicitation process with the objective of correcting ongoing deficiencies in the solicitation
             35987      process to the following:
             35988          (A) the commission;
             35989          (B) the affected electrical utility; and
             35990          (C) others as directed by the commission;
             35991          (v) render an opinion as to whether:
             35992          (A) the solicitation process is:
             35993          (I) fair; and
             35994          (II) in compliance with this part; and
             35995          (B) any modeling used by the affected electrical utility to evaluate bids is sufficient;
             35996          (vi) testify in any proceeding under Section 54-17-302 ; and
             35997          (vii) perform other functions and provide other input and reports as the commission
             35998      may direct, including periodic presentations to interested parties regarding the solicitation
             35999      process.
             36000          Section 805. Section 54-17-301 is amended to read:
             36001           54-17-301. Review of integrated resource plan action plans.
             36002          (1) An affected electrical utility shall file with the commission any action plan developed
             36003      as part of the affected electrical utility's integrated resource plan to enable the commission to
             36004      review and provide guidance to the affected electrical utility.
             36005          (2) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             36006      Administrative Rulemaking Act, the commission shall make rules providing a process for its
             36007      review of an action plan.
             36008          (b) The rules required under Subsection (2)(a) shall provide sufficient flexibility to
             36009      permit changes in an action plan between the periodic filings of the affected electrical utility's

             36010      integrated resource plan.
             36011          Section 806. Section 54-17-302 is amended to read:
             36012           54-17-302. Approval of a significant energy resource decision required.
             36013          (1) If pursuant to Part 2, Solicitation Process, an affected electrical utility is required to
             36014      conduct a solicitation for a significant energy resource or obtains a waiver of the requirement to
             36015      conduct a solicitation under Section 54-17-501 , but does not obtain a waiver of the requirement
             36016      to obtain approval of the significant energy resource decision under Section 54-17-501 , the
             36017      affected electrical utility shall obtain approval of its significant energy resource decision:
             36018          (a) after the completion of the solicitation process, if the affected electrical utility is
             36019      required to conduct a solicitation; and
             36020          (b) before an affected electrical utility may construct or enter into a binding agreement
             36021      to acquire the significant energy resource.
             36022          (2) (a) To obtain the approval required by Subsection (1), the affected electrical utility
             36023      shall file a request for approval with the commission.
             36024          (b) The request for approval required by this section shall include any information
             36025      required by the commission by rule made in accordance with [Title 63, Chapter 46a] Title 63G,
             36026      Chapter 3, Utah Administrative Rulemaking Act.
             36027          (3) In ruling on a request for approval of a significant energy resource decision, the
             36028      commission shall determine whether the significant energy resource decision:
             36029          (a) is reached in compliance with this chapter and rules made in accordance with [Title
             36030      63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             36031          (b) (i) is reached in compliance with the solicitation process approved by the
             36032      commission in accordance with Part 2, Solicitation Process; or
             36033          (ii) is reached after the waiver of the solicitation process as provided in Subsection
             36034      54-17-201 (3); and
             36035          (c) is in the public interest, taking into consideration:
             36036          (i) whether it will most likely result in the acquisition, production, and delivery of
             36037      electricity at the lowest reasonable cost to the retail customers of an affected electrical utility

             36038      located in this state;
             36039          (ii) long-term and short-term impacts;
             36040          (iii) risk;
             36041          (iv) reliability;
             36042          (v) financial impacts on the affected electrical utility; and
             36043          (vi) other factors determined by the commission to be relevant.
             36044          (4) The commission may not approve a significant energy resource decision under this
             36045      section before holding a public hearing.
             36046          (5) Unless the commission determines that additional time to analyze a significant
             36047      energy resource decision is warranted and is in the public interest, within 180 days of the day on
             36048      which the affected electrical utility files a request for approval, the commission shall:
             36049          (a) approve the significant energy resource decision;
             36050          (b) approve the significant energy resource decision subject to conditions imposed by
             36051      the commission; or
             36052          (c) disapprove the significant energy resource decision.
             36053          (6) The commission shall include in its order under this section:
             36054          (a) findings as to the total projected costs for construction or acquisition of an
             36055      approved significant energy resource; and
             36056          (b) the basis upon which the findings described in Subsection (6)(a) are made.
             36057          (7) Notwithstanding any other provision of this part, an affected electrical utility may
             36058      acquire a significant energy resource without obtaining approval pursuant to this section if it
             36059      obtains a waiver of the requirement for approval in accordance with Section 54-17-501 .
             36060          (8) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             36061      Administrative Rulemaking Act, the commission shall make rules regarding the process for
             36062      approval of a significant energy resource decision under this section.
             36063          Section 807. Section 54-17-304 is amended to read:
             36064           54-17-304. Order to proceed.
             36065          (1) (a) In the event of a change in circumstances or projected costs, an affected

             36066      electrical utility may seek a commission review and determination of whether the affected
             36067      electrical utility should proceed with the implementation of an approved significant energy
             36068      resource decision.
             36069          (b) In making a determination under this Subsection (1), the commission shall use the
             36070      standards identified in Subsection 54-17-302 (3)(c).
             36071          (c) Before making a determination under this Subsection (1) the commission:
             36072          (i) may hold a public hearing; and
             36073          (ii) shall provide an opportunity for public comment.
             36074          (2) Unless the commission determines that additional time is warranted and is in the
             36075      public interest, within 60 days of the day on which the affected electrical utility files a request
             36076      for commission review and determination under this section, the commission shall:
             36077          (a) issue an order:
             36078          (i) determining that the affected electrical utility should proceed with the
             36079      implementation of the significant energy resource decision;
             36080          (ii) making findings as to the total projected costs for construction or acquisition of the
             36081      approved significant energy resource; and
             36082          (iii) stating the basis upon which the findings described in Subsection (2)(a)(ii) are
             36083      made; or
             36084          (b) issue an order determining that the affected electrical utility should not proceed with
             36085      the implementation of the significant energy resource decision.
             36086          (3) If the commission determines that the affected electrical utility should proceed with
             36087      the implementation of the approved significant energy resource decision, the commission shall,
             36088      in a general rate case or other appropriate commission proceeding, include in the affected
             36089      electrical utility's retail electric rates the state's share of costs:
             36090          (a) relevant to that proceeding;
             36091          (b) incurred by the affected electrical utility in constructing or acquiring the approved
             36092      significant energy resource; and
             36093          (c) up to the projected costs as specified in the commission's order issued under

             36094      Subsection (2)(a).
             36095          (4) If the commission determines that the affected electrical utility should not proceed
             36096      with the implementation of the approved significant energy resource decision, the commission
             36097      shall, in a general rate case or other appropriate commission proceeding, include in the affected
             36098      electrical utility's retail electric rates the state's share of costs:
             36099          (a) relevant to that proceeding; and
             36100          (b) incurred by the affected electrical utility in constructing or acquiring the approved
             36101      significant energy resource before issuance of a determination not to proceed, including any
             36102      prudently incurred costs of terminating the approved significant energy resource decision.
             36103          (5) A commission order under this section not to proceed with the implementation of a
             36104      significant energy resource may not prejudice:
             36105          (a) the right of an affected electrical utility to:
             36106          (i) continue to implement the significant energy resource decision; and
             36107          (ii) seek recovery of costs incurred after a determination not to proceed in a future rate
             36108      proceeding; or
             36109          (b) the right of any other party to support or oppose recovery of costs sought under
             36110      Subsection (5)(a)(ii).
             36111          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             36112      Administrative Rulemaking Act, the commission shall make rules regarding the process for the
             36113      commission's review and determination on a request for an order to proceed under this section.
             36114          Section 808. Section 54-17-401 is amended to read:
             36115           54-17-401. Definitions.
             36116          As used in this part:
             36117          (1) "Energy utility" means one of the following with 200,000 retail customers in the
             36118      state:
             36119          (a) an electrical corporation; or
             36120          (b) a gas corporation.
             36121          (2) (a) "Resource decision" means a decision, other than a decision to construct or

             36122      acquire a significant energy resource, involving:
             36123          (i) an energy utility's acquisition, management, or operation of energy production,
             36124      processing, transmission, or distribution facilities or processes including:
             36125          (A) a facility or process for the efficient, reliable, or safe provision of energy to retail
             36126      customers; or
             36127          (B) an energy efficiency and conservation program; or
             36128          (ii) a decision determined by the commission to be appropriate for review under this
             36129      part.
             36130          (b) The commission may adopt rules in accordance with [Title 63, Chapter 46a] Title
             36131      63G, Chapter 3, Utah Administrative Rulemaking Act, to specify the nature of resource
             36132      decisions subject to approval under Section 54-17-402 .
             36133          Section 809. Section 54-17-402 is amended to read:
             36134           54-17-402. Request for review of resource decision.
             36135          (1) Beginning on February 25, 2005, before implementing a resource decision, an
             36136      energy utility may request that the commission approve all or part of a resource decision in
             36137      accordance with this part.
             36138          (2) (a) To obtain the approval permitted by Subsection (1), the energy utility shall file a
             36139      request for approval with the commission.
             36140          (b) The request for approval required by this section shall include any information
             36141      required by the commission by rule made in accordance with [Title 63, Chapter 46a] Title 63G,
             36142      Chapter 3, Utah Administrative Rulemaking Act.
             36143          (3) In ruling on a request for approval of a resource decision, the commission shall
             36144      determine whether the decision:
             36145          (a) is reached in compliance with this chapter and rules made in accordance with [Title
             36146      63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
             36147          (b) is in the public interest, taking into consideration:
             36148          (i) whether it will most likely result in the acquisition, production, and delivery of utility
             36149      services at the lowest reasonable cost to the retail customers of an energy utility located in this

             36150      state;
             36151          (ii) long-term and short-term impacts;
             36152          (iii) risk;
             36153          (iv) reliability;
             36154          (v) financial impacts on the energy utility; and
             36155          (vi) other factors determined by the commission to be relevant.
             36156          (4) (a) If the commission approves a proposed resource decision only in part, the
             36157      commission shall explain in the order issued under this section why the commission does not
             36158      approve the resource decision in total.
             36159          (b) Recovery of expenses incurred in connection with parts of a resource decision that
             36160      are not approved is subject to the review of the commission as part of a rate hearing under
             36161      Section 54-7-12 .
             36162          (5) The commission may not approve a resource decision in whole or in part under this
             36163      section before holding a public hearing.
             36164          (6) Unless the commission determines that additional time to analyze a resource
             36165      decision is warranted and is in the public interest, within 180 days of the day on which the
             36166      energy utility files a request for approval, the commission shall:
             36167          (a) approve all or part of the resource decision;
             36168          (b) approve all or part of the resource decision subject to conditions imposed by the
             36169      commission; or
             36170          (c) disapprove all or part of the resource decision.
             36171          (7) The commission shall include in its order under this section:
             36172          (a) findings as to the approved projected costs of a resource decision; and
             36173          (b) the basis upon which the findings described in Subsection (7)(a) are made.
             36174          (8) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             36175      Administrative Rulemaking Act, the commission shall make rules regarding the process for
             36176      approval of a resource decision under this section.
             36177          Section 810. Section 54-17-404 is amended to read:

             36178           54-17-404. Order to proceed.
             36179          (1) (a) In the event of a change in circumstances or projected costs, an energy utility
             36180      may seek a commission review and determination of whether the energy utility should proceed
             36181      with the implementation of an approved resource decision.
             36182          (b) In making a determination under this Subsection (1), the commission shall use the
             36183      standards identified in Subsection 54-17-402 (3)(b).
             36184          (c) Before making a determination under this Subsection (1) the commission:
             36185          (i) may hold a public hearing; and
             36186          (ii) shall provide an opportunity for public comment.
             36187          (2) Unless the commission determines that additional time is warranted and is in the
             36188      public interest, within 60 days of the day on which the energy utility files a request for
             36189      commission review and determination under this section, the commission shall:
             36190          (a) issue an order:
             36191          (i) determining that the energy utility should proceed with the implementation of the
             36192      resource decision;
             36193          (ii) making findings as to the total projected costs of the approved resource decision;
             36194      and
             36195          (iii) stating the basis upon which the findings described in Subsection (2)(a)(ii) are
             36196      made; or
             36197          (b) issue an order determining that the energy utility should not proceed with the
             36198      implementation of the resource decision.
             36199          (3) If the commission determines that the energy utility should proceed with the
             36200      implementation of the approved resource decision, the commission shall, in a general rate case
             36201      or other appropriate commission proceeding, include in the energy utility's retail rates the state's
             36202      share of costs:
             36203          (a) relevant to that proceeding;
             36204          (b) incurred by the energy utility in implementing the approved resource decision; and
             36205          (c) up to the projected costs as specified in the commission's order issued under

             36206      Subsection (2)(a).
             36207          (4) If the commission determines that the energy utility should not proceed with the
             36208      implementation of the approved resource decision, the commission shall, in a general rate case
             36209      or other appropriate commission proceeding, include in the energy utility's retail rates the state's
             36210      share of costs:
             36211          (a) relevant to that proceeding; and
             36212          (b) incurred by the energy utility in implementing the approved resource decision before
             36213      issuance of a determination not to proceed, including any prudently incurred costs of
             36214      terminating the approved resource decision.
             36215          (5) A commission order under this section not to proceed with the implementation of a
             36216      resource decision may not prejudice:
             36217          (a) the right of an energy utility to:
             36218          (i) continue to implement the resource decision; and
             36219          (ii) seek recovery of costs incurred after a determination not to proceed in a future rate
             36220      proceeding; or
             36221          (b) the right of any other party to support or oppose the recovery sought under
             36222      Subsection (5)(a)(ii).
             36223          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             36224      Administrative Rulemaking Act, the commission shall make rules regarding the process for the
             36225      commission's review and determination on a request for an order to proceed under this section.
             36226          Section 811. Section 54-17-501 is amended to read:
             36227           54-17-501. Waiver of requirement for solicitation or approval.
             36228          (1) An affected electrical utility may obtain a waiver of the requirement that it conduct a
             36229      solicitation process under Part 2, Solicitation Process, or the requirement that it obtain approval
             36230      of a significant energy resource decision under Part 3, Resource Plans and Significant Energy
             36231      Resource Approval, if the commission determines that waiving the requirement is in the public
             36232      interest because there exists:
             36233          (a) a clear emergency;

             36234          (b) a time-limited commercial or technical opportunity that provides value to the
             36235      customers of the affected electrical utility; or
             36236          (c) any other factor that makes waiving the requirement in the public interest.
             36237          (2) To obtain a finding from the commission under Subsection (1), the affected
             36238      electrical utility shall, as soon as practicable after learning of the existence of a circumstance
             36239      specified in Subsection (1):
             36240          (a) file a verified application with the commission; and
             36241          (b) serve an electronic and paper copy of the verified application, including all
             36242      associated exhibits and attachments, on each person reflected on a list to be maintained and
             36243      published by the commission on its Internet website that has requested service of waiver
             36244      requests and has signed a generic protective order issued by the commission limiting the use of
             36245      information contained in or attached to a waiver request.
             36246          (3) A verified application filed pursuant to Subsection (2) shall:
             36247          (a) identify any waiver requested;
             36248          (b) explain the basis for each waiver requested;
             36249          (c) specify any time sensitivity associated with the verified application;
             36250          (d) explain why the waiver requested is in the public interest; and
             36251          (e) contain other information required by the commission by rule made in accordance
             36252      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             36253          (4) Upon receipt of a verified application filed under Subsection (2), the commission
             36254      shall, before the end of the next business day, provide public notice of a technical conference to
             36255      be held no sooner than three business days and no later than seven calendar days following the
             36256      day on which the verified application is filed and served.
             36257          (5) (a) At the technical conference held under Subsection (4), the affected electrical
             36258      utility shall provide adequate support for its verified application and shall respond to questions
             36259      of the commission, an independent evaluator if one is participating, and any other interested
             36260      person.
             36261          (b) The commission shall prepare and retain a transcript of the technical conference.

             36262          (6) No less than three business days and no more than seven calendar days following
             36263      the technical conference, the independent evaluator and any interested person may file and serve
             36264      comments concerning the verified application.
             36265          (7) The commission shall issue a written decision either granting, granting with
             36266      conditions, or denying each waiver requested no later than seven calendar days following the
             36267      deadline for the independent evaluator and any interested person to file comments under
             36268      Subsection (6).
             36269          (8) (a) If confidential or trade secret information is provided or used in the verified
             36270      application, in the technical conference, in comments filed on the verified application or
             36271      otherwise in the process, that information shall be clearly identified by the providing person as
             36272      confidential and shall be provided on a confidential basis subject to the terms of a protective
             36273      order issued by the commission.
             36274          (b) (i) The commission shall issue a generic protective order to govern access to and
             36275      use of confidential information in connection with a request for waiver under this part.
             36276          (ii) Upon request by the affected electrical utility or any interested person, the
             36277      commission may issue a supplemental protective order in connection with any verified
             36278      application.
             36279          (c) (i) The generic protective order and any supplemental protective order restrict use
             36280      of confidential information to the proceeding on the verified application, however, use of the
             36281      confidential information in the proceeding is not considered a competitive purpose under
             36282      Subsection (8)(c)(ii).
             36283          (ii) The generic protective order and any supplemental protective order shall forbid the
             36284      use of confidential information for competitive purposes.
             36285          (d) An interested person may gain access to and use confidential information in
             36286      accordance with the terms of a protective order issued by the commission.
             36287          (9) Notwithstanding the time frames in Subsections (4), (6), and (7), the commission:
             36288          (a) shall take action or schedule proceedings as soon as reasonably practicable in light
             36289      of the circumstances and urgency demonstrated by the verified application and any subsequent

             36290      information provided during the process; and
             36291          (b) may shorten or lengthen the time frames if the commission determines that changing
             36292      them is warranted and in the public interest, except that a time frame may not be lengthened
             36293      solely because an independent evaluator is not available to participate or to complete a
             36294      recommendation.
             36295          (10) If an affected electrical utility is granted a waiver to acquire or construct a
             36296      significant energy resource in accordance with this section:
             36297          (a) the provisions of Sections 54-17-303 and 54-17-304 do not apply to the significant
             36298      energy resource decision;
             36299          (b) any cost recovery that an affected electrical utility seeks in connection with that
             36300      significant energy resource is subject to a future prudence review by the commission under
             36301      Subsection 54-4-4 (4); and
             36302          (c) the waiver grant does not create any presumption that the affected electrical utility's
             36303      action in acquiring or constructing a significant energy resource was prudent.
             36304          (11) (a) Subject to Subsection (11)(b), the commission shall use reasonable efforts to
             36305      have an independent evaluator available to participate in any application for a waiver under this
             36306      part.
             36307          (b) The commission may decline to use an independent evaluator in the consideration of
             36308      a waiver application if the commission determines the use of an independent evaluator is:
             36309          (i) not appropriate under the circumstances;
             36310          (ii) not available under terms or conditions the commission considers reasonable; or
             36311          (iii) not available to participate or complete a recommendation within any time frame
             36312      established under Subsection (4), (6), (7), or (9).
             36313          (c) The validity of an order entered under this part is not affected by:
             36314          (i) the unavailability of an independent evaluator; or
             36315          (ii) the failure of an independent evaluator to participate or complete a recommendation
             36316      within any time frame established under Subsection (4), (6), (7), or (9).
             36317          (12) The commission shall issue a generic protective order as provided in Subsections

             36318      (2)(b) and (8)(b).
             36319          (13) By September 1, 2007, the commission shall, in accordance with [Title 63, Chapter
             36320      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules concerning the
             36321      process for obtaining a waiver of the solicitation or approval process consistent with this
             36322      section.
             36323          Section 812. Section 56-1-22.5 is amended to read:
             36324           56-1-22.5. Procedures -- Adjudicative proceedings.
             36325          The Public Service Commission shall comply with the procedures and requirements of
             36326      [Title 63, Chapter 46b,] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
             36327      proceedings.
             36328          Section 813. Section 56-2-8 is amended to read:
             36329           56-2-8. Contents of livestock owners' application for fencing.
             36330          In addition to the information required by [Title 63, Chapter 46b,] Title 63G, Chapter 4,
             36331      Administrative Procedures Act, the request for agency action shall:
             36332          (1) identify the lands;
             36333          (2) identify the name and address of the owner of the lands;
             36334          (3) if any of the lands are owned by the United States or the state of Utah, designate the
             36335      agency or department of government that administers the lands;
             36336          (4) identify the nature of the right of each petitioner to drive, range, or graze sheep,
             36337      cattle, horses, or mules on the lands; and
             36338          (5) specify the ownership of the railroad sought to be fenced.
             36339          Section 814. Section 57-11-3.5 is amended to read:
             36340           57-11-3.5. Procedures -- Adjudicative proceedings.
             36341          The Division of Real Estate shall comply with the procedures and requirements of [Title
             36342      63, Chapter 46b,] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
             36343      proceedings.
             36344          Section 815. Section 57-11-10 is amended to read:
             36345           57-11-10. Renewal report -- Renewal fee -- Examination by division -- Annual

             36346      reports.
             36347          (1) (a) Within 30 days after each annual anniversary date of the division's registration of
             36348      subdivided lands, the subdivider shall file a renewal report in the form prescribed by the division
             36349      together with a renewal fee of $200.
             36350          (b) The report shall reflect any material changes in information contained in the original
             36351      application for registration, including any change in ownership of the subdivider.
             36352          (c) The report shall also indicate the number of units in the subdivision that have been
             36353      disposed of since the division registered the subdivided lands.
             36354          (2) (a) The division may, upon the filing of a renewal report, initiate a renewal
             36355      examination of the kind described in Section 57-11-8 .
             36356          (b) If the division determines upon inquiry and examination that any of the requirements
             36357      of Section 57-11-8 have not been met, it shall notify the subdivider that the report, the
             36358      promotional plan, or the plan of disposition must be corrected within 20 days or any additional
             36359      time allowed by the division.
             36360          (c) If the requirements are not met within the time allowed, the division may,
             36361      notwithstanding the provisions of Section 57-11-13 and without further notice, issue a cease
             36362      and desist order according to the emergency procedures of [Title 63, Chapter 46b] Title 63G,
             36363      Chapter 4, Administrative Procedures Act, barring further sale of the subdivided lands.
             36364          (3) The division may permit the filing of annual reports within 30 days after the
             36365      anniversary date of the consolidated registration in lieu of the anniversary date of the original
             36366      registration.
             36367          Section 816. Section 57-11-13 is amended to read:
             36368           57-11-13. Enforcement powers of division -- Cease and desist orders.
             36369          (1) (a) If the director has reason to believe that any person has been or is engaging in
             36370      conduct violating this chapter, or has violated any lawful order or rule of the division, [he] the
             36371      director shall issue and serve upon the person a cease and desist order and may also order the
             36372      person to take such affirmative actions the director determines will carry out the purposes of
             36373      this chapter.

             36374          (b) The person served may request an adjudicative proceeding within ten days after
             36375      receiving the order.
             36376          (c) The cease and desist order remains in effect pending the hearing.
             36377          (d) The division shall follow the procedures and requirements of [Title 63, Chapter 46b]
             36378      Title 63G, Chapter 4, Administrative Procedures Act, if the person served requests a hearing.
             36379          (2) (a) After the hearing the director may issue an order making the cease and desist
             36380      order permanent if the director finds there has been a violation of this chapter.
             36381          (b) If no hearing is requested and the person served does not obey the director's order,
             36382      the director shall file suit in the name of the Department of Commerce and the Division of Real
             36383      Estate to enjoin the person from violating this chapter. The action shall be filed in the district
             36384      court in the county in which the conduct occurred or where the person resides or carries on
             36385      business.
             36386          (3) The remedies and action provided in this section may not interfere with or prevent
             36387      the prosecution of any other remedies or actions including criminal prosecutions.
             36388          Section 817. Section 57-11-14 is amended to read:
             36389           57-11-14. Revocation, suspension, or denial of registration -- Grounds --
             36390      Suspension or revocation of real estate license.
             36391          (1) (a) The division may deny an application for registration or may revoke, suspend, or
             36392      deny reissuance of a registration, or may impose a fine of not more than $500 per violation, by
             36393      following the procedures and requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             36394      Administrative Procedures Act, and by making a written finding of fact that the subdivider has:
             36395          (i) failed to comply with the terms of a cease and desist order;
             36396          (ii) been convicted in any court prior or subsequent to the filing of the application for
             36397      registration of a crime involving fraud, deception, false pretenses, misrepresentation, false
             36398      advertising, or dishonest dealing in real estate transactions, or has been subject to any injunction
             36399      or administrative order restraining a false or misleading promotional plan involving land
             36400      dispositions, and that the public interest requires revocation;
             36401          (iii) disposed of, concealed, or diverted any funds or assets of any person so as to defeat

             36402      the rights of subdivision purchasers;
             36403          (iv) failed to perform faithfully any stipulation or agreement made with the division as
             36404      an inducement to grant any registration, to reinstate any registration, to revoke any cease and
             36405      desist order, or to approve any promotional plan or public offering statement;
             36406          (v) made intentional misrepresentations, or concealed material facts, in an application
             36407      for registration;
             36408          (vi) violated any provision of this chapter or the rules adopted under this chapter;
             36409          (vii) directly or through an agent or employee knowingly engaged in any false,
             36410      deceptive, or misleading advertising, promotional, or sales methods to offer or dispose of an
             36411      interest in subdivided lands;
             36412          (viii) engaged in the offering of subdivided lands which has constituted or which may
             36413      constitute a fraud upon purchasers or prospective purchasers of the lands; or
             36414          (ix) engaged in dishonest practices in any industry involving sales to consumers.
             36415          (b) Findings of fact shall be accompanied by a concise and explicit statement of the
             36416      underlying facts supporting the findings.
             36417          (2) As an alternative to revoking the registration of a subdivider, the director may issue
             36418      a cease and desist order if after notice and a hearing [he] the director finds that the subdivider is
             36419      guilty of a violation for which revocation may be ordered.
             36420          (3) Any real estate broker or salesman violating any provisions of this chapter shall have
             36421      [his] the real estate broker or salesman's license suspended or revoked by the division for the
             36422      period of time the director determines to be justified under the circumstances. The suspension
             36423      or revocation shall be in addition to any other penalty which may be imposed under this chapter,
             36424      subject to the provisions of Section 61-2-12 .
             36425          Section 818. Section 57-12-9 is amended to read:
             36426           57-12-9. Rules of displacing agency.
             36427          (1) (a) A displacing agency may enact rules to assure that:
             36428          (i) the payments and assistance authorized by this chapter are administered in a manner
             36429      that is fair, reasonable, and as uniform as practicable;

             36430          (ii) a displaced person who makes proper application for a payment authorized by this
             36431      chapter is paid promptly after a move or, in hardship cases, is paid in advance; and
             36432          (iii) any person aggrieved by a determination as to eligibility for a payment authorized
             36433      by this chapter, or the amount of a payment, may have the person's application reviewed by the
             36434      head of the displacing agency.
             36435          (b) Each displacing agency that has not adopted rules under Subsection (1)(a) shall
             36436      comply with the rules promulgated by the Utah Department of Transportation relating to
             36437      displaced persons in right-of-way acquisitions.
             36438          (2) Each displacing agency shall comply with the procedures and requirements of [Title
             36439      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
             36440      proceedings.
             36441          Section 819. Section 57-19-20 is amended to read:
             36442           57-19-20. Injunctive relief -- Cease and desist order.
             36443          (1) Whenever it appears to the director that any person has engaged or is about to
             36444      engage in any act or practice constituting a violation of any provision of this chapter, and that it
             36445      would be in the public interest to stop those acts or practices, the director may either:
             36446          (a) seek injunctive relief as provided in Rule 65A, Utah Rules of Civil Procedure; or
             36447          (b) issue an administrative cease and desist order.
             36448          (2) If an administrative cease and desist order is issued pursuant to Subsection (1), the
             36449      person upon whom the order is served may, within ten days after receiving the order, request
             36450      that a hearing be held before an administrative law judge. If a request for a hearing is made, the
             36451      division shall follow the procedures and requirements of [Title 63, Chapter 46b] Title 63G,
             36452      Chapter 4, Administrative Procedures Act. Pending the hearing, the order remains in effect.
             36453          (3) If, at the hearing, a finding is made that there has been a violation of this chapter,
             36454      the director, with the concurrence of the executive director, may issue an order making the
             36455      cease and desist order permanent. If no hearing is requested, and if the person fails to cease the
             36456      act or practice, or after discontinuing the act or practice again commences it, the director shall
             36457      file suit in the district court of the county in which the act or practice occurred, or where the

             36458      person resides or carries on business, to enjoin and restrain the person from violating this
             36459      chapter.
             36460          (4) Whether or not the director has issued a cease and desist order, the attorney
             36461      general, in the name of the state or of the director, may bring an action in any court of
             36462      competent jurisdiction to enjoin any act or practice constituting a violation of any provision of
             36463      this chapter, and to enforce compliance with this chapter or any rule or order under this chapter.
             36464      Upon a proper showing, a permanent or temporary injunction, restraining order, or writ of
             36465      mandamus shall be granted.
             36466          Section 820. Section 57-21-2 is amended to read:
             36467           57-21-2. Definitions.
             36468          As used in this chapter:
             36469          (1) "Aggrieved person" includes any person who:
             36470          (a) claims to have been injured by a discriminatory housing practice; or
             36471          (b) believes that [he] the person will be injured by a discriminatory housing practice that
             36472      is about to occur.
             36473          (2) "Commission" means the Labor Commission.
             36474          (3) "Complainant" means an aggrieved person, including the director, who has
             36475      commenced a complaint with the division.
             36476          (4) "Conciliation" means the attempted resolution of issues raised by a complaint of
             36477      discriminatory housing practices by the investigation of the complaint through informal
             36478      negotiations involving the complainant, the respondent, and the division.
             36479          (5) "Conciliation agreement" means a written agreement setting forth the resolution of
             36480      the issues in conciliation.
             36481          (6) "Conciliation conference" means the attempted resolution of issues raised by a
             36482      complaint or by the investigation of a complaint through informal negotiations involving the
             36483      complainant, the respondent, and the division. The conciliation conference is not subject to
             36484      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             36485          (7) "Covered multifamily dwellings" means:

             36486          (a) buildings consisting of four or more dwelling units if the buildings have one or more
             36487      elevators; and
             36488          (b) ground floor units in other buildings consisting of four or more dwelling units.
             36489          (8) "Director" means the director of the division or a designee.
             36490          (9) (a) "Disability" means a physical or mental impairment that substantially limits one
             36491      or more of a person's major life activities, including a person having a record of such an
             36492      impairment or being regarded as having such an impairment.
             36493          (b) "Disability" does not include current illegal use of, or addiction to, any federally
             36494      controlled substance, as defined in Section 102 of the Controlled Substances Act, 21 U.S.C.
             36495      802.
             36496          (10) "Discriminate" includes segregate or separate.
             36497          (11) "Discriminatory housing practice" means an act that is unlawful under this chapter.
             36498          (12) "Division" means the Division of Antidiscrimination and Labor established under
             36499      the commission.
             36500          (13) (a) "Dwelling" means any building or structure, or a portion of a building or
             36501      structure, occupied as, or designed or intended for occupancy as, a residence of one or more
             36502      families.
             36503          (b) "Dwelling" also includes vacant land that is offered for sale or lease for the
             36504      construction or location of a dwelling as described in Subsection (13)(a).
             36505          (14) (a) "Familial status" means one or more individuals who have not attained the age
             36506      of 18 years being domiciled with:
             36507          (i) a parent or another person having legal custody of the individual or individuals; or
             36508          (ii) the designee of the parent or other person having custody, with the written
             36509      permission of the parent or other person.
             36510          (b) The protections afforded against discrimination on the basis of familial status shall
             36511      apply to any person who:
             36512          (i) is pregnant;
             36513          (ii) is in the process of securing legal custody of any individual who has not attained the

             36514      age of 18 years; or
             36515          (iii) is a single individual.
             36516          (15) "National origin" means the place of birth of an individual or of any lineal
             36517      ancestors.
             36518          (16) "Person" includes one or more individuals, corporations, limited liability
             36519      companies, partnerships, associations, labor organizations, legal representatives, mutual
             36520      companies, joint-stock companies, trusts, unincorporated organizations, trustees, trustees in
             36521      cases under the United States Bankruptcy Code, receivers, and fiduciaries.
             36522          (17) "Presiding officer" has the same meaning as provided in Section [ 63-46b-2 ]
             36523      63G-4-103 .
             36524          (18) "Real estate broker" or "salesperson" means a principal real estate broker, an
             36525      associate real estate broker, or a real estate sales agent as those terms are defined in Section
             36526      61-2-2 .
             36527          (19) "Respondent" means a person against whom a complaint of housing discrimination
             36528      has been initiated.
             36529          (20) "Sex" means gender and includes pregnancy, childbirth, and disabilities related to
             36530      pregnancy or childbirth.
             36531          (21) "Source of income" means the verifiable condition of being a recipient of federal,
             36532      state, or local assistance, including medical assistance, or of being a tenant receiving federal,
             36533      state, or local subsidies, including rental assistance or rent supplements.
             36534          Section 821. Section 57-21-8 is amended to read:
             36535           57-21-8. Jurisdiction -- Department -- Division.
             36536          (1) The commission has jurisdiction over the subject of housing discrimination under
             36537      this chapter and may delegate the responsibility of receiving, processing, and investigating
             36538      allegations of discriminatory housing practices and enforcing this chapter to the division.
             36539          (2) The commission may:
             36540          (a) adopt rules necessary to administer this chapter in accordance with [Title 63,
             36541      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act;

             36542          (b) appoint and prescribe the duties of investigators, legal counsel, and other employees
             36543      and agents that it considers necessary for the enforcement of this chapter; and
             36544          (c) issue subpoenas to compel the attendance of witnesses or the production of
             36545      evidence for use in any investigation, conference, or hearing conducted by the division, and if a
             36546      person fails to comply with such a subpoena, petition a court of competent jurisdiction for an
             36547      order to show cause why that person should not be held in contempt.
             36548          (3) The division:
             36549          (a) may receive, reject, investigate, and determine complaints alleging discriminatory
             36550      housing practices prohibited by this chapter;
             36551          (b) shall attempt conciliation between the parties through informal efforts, conference,
             36552      persuasion, or other reasonable methods for the purposes of resolving the complaint;
             36553          (c) may seek prompt judicial action for appropriate temporary or preliminary relief
             36554      pending final disposition of a complaint if the division and the commission conclude that such an
             36555      action is necessary to carry out the purposes of this chapter;
             36556          (d) may, with the commission, initiate a civil action in a court of competent jurisdiction
             36557      to:
             36558          (i) enforce the rights granted or protected under this chapter;
             36559          (ii) seek injunctive or other equitable relief, including temporary restraining orders,
             36560      preliminary injunctions, or permanent injunctions;
             36561          (iii) seek damages; and
             36562          (iv) enforce final commission orders on the division's own behalf or on behalf of another
             36563      person in order to carry out the purposes of this chapter;
             36564          (e) may initiate formal agency action under [Title 63, Chapter 46b] Title 63G, Chapter
             36565      4, Administrative Procedures Act; and
             36566          (f) may promote public awareness of the rights and remedies under this chapter by
             36567      implementing programs to increase the awareness of landlords, real estate agents, and other
             36568      citizens of their rights and responsibilities under the Utah Fair Housing Act, but may not solicit
             36569      fair housing complaints or cases.

             36570          Section 822. Section 57-21-9 is amended to read:
             36571           57-21-9. Procedure for an aggrieved person to file a complaint -- Conciliation --
             36572      Investigation -- Determination.
             36573          (1) Any aggrieved person may file a written verified complaint with the division within
             36574      180 days after an alleged discriminatory housing practice occurs.
             36575          (2) (a) The commission shall adopt rules consistent with the provisions of 24 C.F.R.
             36576      Sec. 115.3 (1990), relating to procedures under related federal law, to govern:
             36577          (i) the form of the complaint;
             36578          (ii) the form of any answer to the complaint;
             36579          (iii) procedures for filing or amending a complaint or answer; and
             36580          (iv) the form of notice to parties accused of the acts or omissions giving rise to the
             36581      complaint.
             36582          (b) The commission may, by rule, prescribe any other procedure pertaining to the
             36583      division's processing of the complaint.
             36584          (3) During the period beginning with the filing of the complaint and ending with the
             36585      director's determination, the division shall, to the extent feasible, engage in conciliation with
             36586      respect to the complaint.
             36587          (4) The division shall commence proceedings to investigate and conciliate a complaint
             36588      alleging a discriminatory housing practice within 30 days after the filing of the complaint. After
             36589      the commencement of an investigation, any party may request that the commission review the
             36590      proceedings to insure compliance with the requirements of this chapter.
             36591          (5) The division shall complete the investigation within 100 days after the filing of the
             36592      complaint, unless it is impracticable to do so. If the division is unable to complete the
             36593      investigation within 100 days after the filing of the complaint, the division shall notify the
             36594      complainant and respondent in writing of the reasons for the delay.
             36595          (6) (a) If, as a result of the division's investigation, the director determines that there is
             36596      no reasonable cause to support the allegations in the complaint, the director shall issue a written
             36597      determination dismissing the complaint.

             36598          (b) If the director dismisses the complaint pursuant to Subsection (6)(a), the
             36599      complainant may request that the director reconsider the dismissal pursuant to Section
             36600      [ 63-46b-13 ] 63G-4-302 .
             36601          (c) Notwithstanding the provisions of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             36602      Administrative Procedures Act, the director's determination to dismiss a complaint or, in the
             36603      case of a request for reconsideration, the director's order denying reconsideration is not subject
             36604      to further agency action or direct judicial review. However, the complainant may commence a
             36605      private action pursuant to Section 57-21-12 .
             36606          (7) If, as a result of the division's investigation of a complaint, the director determines
             36607      that there is reasonable cause to support the allegations in the complaint, all of the following
             36608      apply:
             36609          (a) The division shall informally endeavor to eliminate or correct the discriminatory
             36610      housing practice through a conciliation conference between the parties, presided over by the
             36611      division. Nothing said or done in the course of the conciliation conference may be made public
             36612      or admitted as evidence in a subsequent proceeding under this chapter without the written
             36613      consent of the parties concerned.
             36614          (b) If the conciliation conference results in voluntary compliance with this chapter, a
             36615      conciliation agreement setting forth the resolution of the issues shall be executed by the parties
             36616      and approved by the division. The parties may enforce the conciliation agreement in an action
             36617      filed in a court of competent jurisdiction.
             36618          (c) If the division is unable to obtain a conciliation agreement, the director shall issue a
             36619      written determination stating the director's findings and ordering any appropriate relief under
             36620      Section 57-21-11 .
             36621          Section 823. Section 57-21-10 is amended to read:
             36622           57-21-10. Judicial election or formal adjudicative hearing.
             36623          (1) If, pursuant to Subsection 57-21-9 (7)(c), the director issues a written determination
             36624      finding reasonable cause to believe that a discriminatory housing practice has occurred, or is
             36625      about to occur, a respondent may obtain de novo review of the determination by submitting a

             36626      written request for a formal adjudicative hearing to be conducted by the commission's Division
             36627      of Adjudication in accordance with Title 34A, Chapter 1, Part 3, Adjudicative Proceedings, to
             36628      the director within 30 days from the date of issuance of the determination. If the director does
             36629      not receive a timely request for review, the director's determination becomes the final order of
             36630      the commission and is not subject to further agency action or direct judicial review.
             36631          (2) If a respondent files a timely request for review pursuant to Subsection (1):
             36632          (a) any respondent, complainant, or aggrieved party may elect to have the de novo
             36633      review take place in a civil action in the district court rather than in a formal adjudicative
             36634      hearing with the Division of Adjudication by filing an election with the commission in
             36635      accordance with rules established by the commission pursuant to [Title 63, Chapter 46a] Title
             36636      63G, Chapter 3, Utah Administrative Rulemaking Act, regarding the form and time period for
             36637      the election;
             36638          (b) the complainant shall file a complaint for review in the forum selected pursuant to
             36639      Subsection (2)(a) within 30 days after the completion of the forum selection process; and
             36640          (c) the commission shall determine whether the director's determination is supported by
             36641      substantial evidence.
             36642          (3) If, pursuant to Subsection (2)(c), the commission determines that the director's
             36643      determination is supported by substantial evidence, the commission shall provide legal
             36644      representation on behalf of the aggrieved person, including the filing of a complaint for review
             36645      as required by Subsection (2)(b), to support and enforce the director's determination in the de
             36646      novo review proceeding. Notwithstanding any provisions of [Title 63, Chapter 46b] Title 63G,
             36647      Chapter 4, Administrative Procedures Act, the commission's determination regarding the
             36648      existence or nonexistence of substantial evidence to support the director's determination is not
             36649      subject to further agency action or direct judicial review.
             36650          (4) Upon timely application, an aggrieved person may intervene with respect to the
             36651      issues to be determined in a formal adjudicative hearing or in a civil action brought under this
             36652      section.
             36653          (5) If a formal adjudicative hearing is elected, all of the following apply:

             36654          (a) The presiding officer shall commence the formal adjudicative hearing within 150
             36655      days after the respondent files a request for review of the director's determination unless it is
             36656      impracticable to do so.
             36657          (b) The investigator who investigated the matter may not participate in the formal
             36658      adjudicative hearing, except as a witness, nor may the investigator participate in the
             36659      deliberations of the presiding officer.
             36660          (c) Any party to the complaint may file a written request to the Division of Adjudication
             36661      for review of the presiding officer's order in accordance with Section [ 63-46b-12 ] 63G-4-301
             36662      and Title 34A, Chapter 1, Part 3, Adjudicative Proceedings.
             36663          (d) A final order of the commission under this section is subject to judicial review as
             36664      provided in Section [ 63-46b-16 ] 63G-4-403 and Title 34A, Chapter 1, Part 3, Adjudicative
             36665      Proceedings.
             36666          (6) If a civil action is elected, the commission is barred from continuing or commencing
             36667      any adjudicative proceeding in connection with the same claims under this chapter.
             36668          (7) The commission shall make final administrative disposition of the complaint alleging
             36669      a discriminatory housing practice within one year after the filing of the complaint, unless it is
             36670      impracticable to do so. If the commission is unable to make final administrative disposition
             36671      within one year, the commission shall notify the complainant, respondent, and any other
             36672      interested party in writing of the reasons for the delay.
             36673          Section 824. Section 57-23-8 is amended to read:
             36674           57-23-8. Enforcement powers of division -- Cease and desist orders.
             36675          (1) (a) If the director has reason to believe that any person has been or is engaging in
             36676      conduct violating this chapter, or has violated any lawful order or rule of the division, [he] the
             36677      director shall issue and serve upon the person a cease and desist order. [He] The director may
             36678      also order the person to take whatever affirmative actions the director determines to be
             36679      necessary to carry out the purposes of this chapter.
             36680          (b) The person served with an order under Subsection (1)(a) may request an
             36681      adjudicative proceeding within ten days after receiving the order. The cease and desist order

             36682      remains in effect pending the hearing.
             36683          (c) The division shall follow the procedures and requirements of [Title 63, Chapter 46b]
             36684      Title 63G, Chapter 4, Administrative Procedures Act, if the person served requests a hearing.
             36685          (2) (a) After the hearing the director may issue a final order making the cease and desist
             36686      order permanent if the director finds there has been a violation of this chapter.
             36687          (b) If no hearing is requested and the person served does not obey the director's order,
             36688      the director may file suit in the name of the Department of Commerce and the Division of Real
             36689      Estate to enjoin the person from violating this chapter. The action shall be filed in the district
             36690      court in the county in which the conduct occurred, where the person served with the cease and
             36691      desist order either resides or carries on business.
             36692          (3) The remedies and action provided in this section are not exclusive but are in
             36693      addition to any other remedies or actions available under Section 57-23-10 .
             36694          Section 825. Section 57-24-101 is amended to read:
             36695           57-24-101. Definitions.
             36696          As used in this chapter:
             36697          (1) (a) "Flag" means a depiction or emblem:
             36698          (i) (A) of the flag of the United States as provided in United States Code Title 4,
             36699      Chapter 1, The Flag; or
             36700          (B) of the state flag of Utah as provided in Section [ 63-13-5 ] 63G-1-501 ;
             36701          (ii) made from fabric or cloth; and
             36702          (iii) with measurements that do not exceed three feet by five feet.
             36703          (b) "Flag" does not include a depiction or emblem made from:
             36704          (i) lights;
             36705          (ii) paint;
             36706          (iii) roofing;
             36707          (iv) siding;
             36708          (v) paving materials;
             36709          (vi) flora;

             36710          (vii) balloons; or
             36711          (viii) any other building, landscaping, or decorative component.
             36712          (2) "Resident" means:
             36713          (a) a renter as defined in Section 57-22-2 ;
             36714          (b) a resident as defined in Section 57-16-3 ; or
             36715          (c) a unit owner as defined in Section 57-8-3 .
             36716          (3) "Residential property management authority" means:
             36717          (a) an owner as defined in Section 57-22-2 ;
             36718          (b) a mobile home park as defined in Section 57-16-3 ;
             36719          (c) a mobile home park residents' association established in accordance with Section
             36720      57-16-16 ;
             36721          (d) an association of unit owners as defined in Section 57-8-3 ; or
             36722          (e) a management committee as defined in Section 57-8-3 .
             36723          Section 826. Section 57-25-109 is amended to read:
             36724           57-25-109. Duration -- Amendment by court action.
             36725          (1) An environmental covenant is perpetual unless it is:
             36726          (a) (i) limited to a specific duration by its terms; or
             36727          (ii) terminated by the occurrence of a specific event;
             36728          (b) terminated by consent under Section 57-25-110 ;
             36729          (c) terminated under Subsection (2);
             36730          (d) terminated by foreclosure of an interest that has priority over the environmental
             36731      covenant; or
             36732          (e) terminated or modified in an eminent domain proceeding, but only if:
             36733          (i) the agency that signed the covenant is a party to the proceeding;
             36734          (ii) all persons identified in Subsections 57-25-110 (1) and (2) are given notice of the
             36735      pendency of the proceeding; and
             36736          (iii) the court determines, after hearing, that the termination or modification will not
             36737      adversely affect human health or the environment.

             36738          (2) (a) If the agency that signed an environmental covenant has determined that the
             36739      intended benefits of the covenant can no longer be realized, a court, under the doctrine of
             36740      changed circumstances, in an action in which all persons identified in Subsections 57-25-110 (1)
             36741      and (2) have been given notice, may terminate the covenant or reduce its burden on the real
             36742      property subject to the covenant.
             36743          (b) The Department of Environmental Quality's determination under Subsection (2)(a)
             36744      or its failure to make a determination upon request is subject to review under [Title 63, Chapter
             36745      46b] Title 63G, Chapter 4, Administrative Procedures Act.
             36746          (c) A federal agency's determination under Subsection (2)(a) or its failure to make a
             36747      determination upon request is subject to review under applicable federal law.
             36748          (3) Except as otherwise provided in Subsections (1) and (2), an environmental covenant
             36749      may not be extinguished, limited, or impaired through issuance of a tax deed, foreclosure of a
             36750      tax lien, or application of the doctrine of adverse possession, prescription, abandonment,
             36751      waiver, lack of enforcement, or acquiescence, or a similar doctrine.
             36752          (4) An environmental covenant may not be extinguished, limited, or impaired by
             36753      application of Title 57, Chapter 9, Marketable Record Title.
             36754          Section 827. Section 58-1-106 is amended to read:
             36755           58-1-106. Division -- Duties, functions, and responsibilities.
             36756          (1) The duties, functions, and responsibilities of the division include the following:
             36757          (a) prescribing, adopting, and enforcing rules to administer this title;
             36758          (b) investigating the activities of any person whose occupation or profession is
             36759      regulated or governed by the laws and rules administered and enforced by the division;
             36760          (c) subpoenaing witnesses, taking evidence, and requiring by subpoena duces tecum the
             36761      production of any books, papers, documents, records, contracts, recordings, tapes,
             36762      correspondence, or information relevant to an investigation upon a finding of sufficient need by
             36763      the director or by [his] the director's designee;
             36764          (d) taking administrative and judicial action against persons in violation of the laws and
             36765      rules administered and enforced by the division, including the issuance of cease and desist

             36766      orders;
             36767          (e) seeking injunctions and temporary restraining orders to restrain unauthorized
             36768      activity;
             36769          (f) giving public notice of board meetings;
             36770          (g) keeping records of board meetings, proceedings, and actions and making those
             36771      records available for public inspection upon request;
             36772          (h) issuing, refusing to issue, revoking, suspending, renewing, refusing to renew, or
             36773      otherwise acting upon any license;
             36774          (i) preparing and submitting to the governor and the Legislature an annual report of the
             36775      division's operations, activities, and goals;
             36776          (j) preparing and submitting to the executive director a budget of the expenses for the
             36777      division;
             36778          (k) establishing the time and place for the administration of examinations; and
             36779          (l) preparing lists of licensees and making these lists available to the public at cost upon
             36780      request unless otherwise prohibited by state or federal law.
             36781          (2) The division may not include home telephone numbers or home addresses of
             36782      licensees on the lists prepared under Subsection (1)(l), except as otherwise provided by rules of
             36783      the division made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             36784      Administrative Rulemaking Act.
             36785          (3) (a) The division may provide the home address or home telephone number of a
             36786      licensee on a list prepared under Subsection (1) upon the request of an individual who provides
             36787      proper identification and the reason for the request, in writing, to the division.
             36788          (b) A request under Subsection (3)(a) is limited to providing information on only one
             36789      licensee per request.
             36790          (c) The division shall provide, by rule, what constitutes proper identification under
             36791      Subsection (3)(a).
             36792          Section 828. Section 58-1-108 is amended to read:
             36793           58-1-108. Adjudicative proceedings.

             36794          (1) The division and all boards created under the authority of this title shall comply with
             36795      the procedures and requirements of Title 13, Chapter 1, Department of Commerce, and [Title
             36796      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in all of their
             36797      adjudicative proceedings as defined by Subsection [ 63-46b-2 ] 63G-4-103 (1).
             36798          (2) Before proceeding under Section [ 63-46b-20 ] 63G-4-502 , the division shall review
             36799      the proposed action with a committee of no less than three licensees appointed by the chairman
             36800      of the licensing board created under this title for the profession of the person against whom the
             36801      action is proposed.
             36802          (3) Notwithstanding [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             36803      Procedures Act, a warning or final disposition letter which does not constitute disciplinary
             36804      action against the addressee, issued in response to a complaint of unprofessional or unlawful
             36805      conduct under this title, does not constitute an adjudicative proceeding.
             36806          Section 829. Section 58-1-109 is amended to read:
             36807           58-1-109. Presiding officers -- Content of orders -- Recommended orders -- Final
             36808      orders -- Appeal of orders.
             36809          (1) Unless otherwise specified by statute or rule, the presiding officer for adjudicative
             36810      proceedings before the division shall be the director. However, pursuant to [Title 63, Chapter
             36811      46b] Title 63G, Chapter 4, Administrative Procedures Act, the director may designate in writing
             36812      an individual or body of individuals to act as presiding officer to conduct or to assist the
             36813      director in conducting any part or all of an adjudicative proceeding.
             36814          (2) Unless otherwise specified by the director, an administrative law judge shall be
             36815      designated as the presiding officer to conduct formal adjudicative proceedings in accordance
             36816      with Subsection [ 63-46b-1 ] 63G-4-102 (4), Sections [ 63-46b-6 ] 63G-4-204 through [ 63-46b-9 ]
             36817      63G-4-207 , and [ 63-46b-11 ] 63G-4-209 .
             36818          (3) Unless otherwise specified by the director, the licensing board of the occupation or
             36819      profession that is the subject of the proceedings shall be designated as the presiding officer to
             36820      serve as fact finder at the evidentiary hearing in a formal adjudicative proceeding.
             36821          (4) At the close of an evidentiary hearing in an adjudicative proceeding, unless

             36822      otherwise specified by the director, the presiding officer who served as the fact finder at the
             36823      hearing shall issue a recommended order based upon the record developed at the hearing
             36824      determining all issues pending before the division.
             36825          (5) (a) The director shall issue a final order affirming the recommended order or
             36826      modifying or rejecting all or any part of the recommended order and entering new findings of
             36827      fact, conclusions of law, statement of reasons, and order based upon the director's personal
             36828      attendance at the hearing or a review of the record developed at the hearing. Before modifying
             36829      or rejecting a recommended order, the director shall consult with the presiding officer who
             36830      issued the recommended order.
             36831          (b) If the director issues a final order modifying or rejecting a recommended order, the
             36832      licensing board of the occupation or profession that is the subject of the proceeding may, by a
             36833      two-thirds majority vote of all board members, petition the executive director or designee within
             36834      the department to review the director's final order. The executive director's decision shall
             36835      become the final order of the division. This subsection does not limit the right of the parties to
             36836      appeal the director's final order by filing a request for agency review under Subsection (8).
             36837          (6) If the director is unable for any reason to rule upon a recommended order of a
             36838      presiding officer, the director may designate another person within the division to issue a final
             36839      order.
             36840          (7) If the director or [his] the director's designee does not issue a final order within 20
             36841      calendar days after the date of the recommended order of the presiding officer, the
             36842      recommended order becomes the final order of the director or [his] the director's designee.
             36843          (8) The final order of the director may be appealed by filing a request for agency review
             36844      with the executive director or [his] the executive director's designee within the department.
             36845          (9) The content of all orders shall comply with the requirements of Subsection
             36846      [ 63-46b-5 ] 63G-4-203 (1)(i) and Sections [ 63-46b-10 ] 63G-4-208 and [ 63-46b-11 ] 63G-4-209 .
             36847          Section 830. Section 58-1-301 is amended to read:
             36848           58-1-301. License application -- Licensing procedure.
             36849          (1) (a) Each license applicant shall apply to the division in writing upon forms available

             36850      from the division. Each completed application shall contain documentation of the particular
             36851      qualifications required of the applicant, shall include the applicant's Social Security number,
             36852      shall be verified by the applicant, and shall be accompanied by the appropriate fees.
             36853          (b) An applicant's Social Security number is a private record under Subsection
             36854      [ 63-2-302 ] 63G-2-302 (1)(h).
             36855          (2) (a) A license shall be issued to an applicant who submits a complete application if
             36856      the division determines that the applicant meets the qualifications of licensure.
             36857          (b) A written notice of additional proceedings shall be provided to an applicant who
             36858      submits a complete application, but who has been, is, or will be placed under investigation by
             36859      the division for conduct directly bearing upon [his] the applicant's qualifications for licensure, if
             36860      the outcome of additional proceedings is required to determine the division's response to the
             36861      application.
             36862          (c) A written notice of denial of licensure shall be provided to an applicant who submits
             36863      a complete application if the division determines that the applicant does not meet the
             36864      qualifications of licensure.
             36865          (d) A written notice of incomplete application and conditional denial of licensure shall
             36866      be provided to an applicant who submits an incomplete application. This notice shall advise the
             36867      applicant that the application is incomplete and that the application is denied, unless the
             36868      applicant corrects the deficiencies within the time period specified in the notice and otherwise
             36869      meets all qualifications for licensure.
             36870          (3) Before any person is issued a license under this title, all requirements for that license
             36871      as established under this title and by rule shall be met.
             36872          (4) If all requirements are met for the specific license, the division shall issue the license.
             36873          Section 831. Section 58-1-308 is amended to read:
             36874           58-1-308. Term of license -- Expiration of license -- Renewal of license --
             36875      Reinstatement of license -- Application procedures.
             36876          (1) (a) Each license issued under this title shall be issued in accordance with a two-year
             36877      renewal cycle established by rule.

             36878          (b) A renewal period may be extended or shortened by as much as one year to maintain
             36879      established renewal cycles or to change an established renewal cycle.
             36880          (2) (a) The expiration date of a license shall be shown on the license.
             36881          (b) A license that is not renewed prior to the expiration date shown on the license
             36882      automatically expires.
             36883          (c) A license automatically expires prior to the expiration date shown on the license
             36884      upon the death of a licensee who is a natural person, or upon the dissolution of a licensee that is
             36885      a partnership, corporation, or other business entity.
             36886          (d) If the existence of a dissolved partnership, corporation, or other business entity is
             36887      reinstated prior to the expiration date shown upon the entity's expired license issued by the
             36888      division, the division shall, upon written application, reinstate the applicant's license, unless it
             36889      finds that the applicant no longer meets the qualifications for licensure.
             36890          (e) Expiration of licensure is not an adjudicative proceeding under [Title 63, Chapter
             36891      46b] Title 63G, Chapter 4, Administrative Procedures Act.
             36892          (3) (a) The division shall notify each licensee in accordance with procedures established
             36893      by rule that the licensee's license is due for renewal and that unless an application for renewal is
             36894      received by the division by the expiration date shown on the license, together with the
             36895      appropriate renewal fee and documentation showing completion of or compliance with renewal
             36896      qualifications, the license will not be renewed.
             36897          (b) Examples of renewal qualifications which by statute or rule the division may require
             36898      the licensee to document completion of or compliance with include:
             36899          (i) continuing education;
             36900          (ii) continuing competency;
             36901          (iii) quality assurance;
             36902          (iv) utilization plan and protocol;
             36903          (v) financial responsibility;
             36904          (vi) certification renewal; and
             36905          (vii) calibration of equipment.

             36906          (4) (a) (i) An application for renewal that complies with Subsection (3) is complete.
             36907          (ii) A renewed license shall be issued to applicants who submit a complete application,
             36908      unless it is apparent to the division that the applicant no longer meets the qualifications for
             36909      continued licensure.
             36910          (b) (i) The division may evaluate or verify documentation showing completion of or
             36911      compliance with renewal requirements on an entire population or a random sample basis, and
             36912      may be assisted by advisory peer committees.
             36913          (ii) If necessary, the division may complete its evaluation or verification subsequent to
             36914      renewal and, if appropriate, pursue action to suspend or revoke the license of a licensee who no
             36915      longer meets the qualifications for continued licensure.
             36916          (c) The application procedures specified in Subsection 58-1-301 (2), apply to renewal
             36917      applications to the extent they are not in conflict with this section.
             36918          (5) (a) Any license that is not renewed may be reinstated at any time within two years
             36919      after nonrenewal upon submission of an application for reinstatement, payment of the renewal
             36920      fee together with a reinstatement fee determined by the department under Section [ 63-38-3.2 ]
             36921      63J-1-303 , and upon submission of documentation showing completion of or compliance with
             36922      renewal qualifications.
             36923          (b) The application procedures specified in Subsection 58-1-301 (2) apply to the
             36924      reinstatement applications to the extent they are not in conflict with this section.
             36925          (c) Except as otherwise provided by rule, a license that is reinstated no later than 120
             36926      days after it expires shall be retroactively reinstated to the date it expired.
             36927          (6) (a) If not reinstated within two years, the holder may obtain a license only if [he] the
             36928      holder meets requirements provided by the division by rule or by statute for a new license.
             36929          (b) Each licensee under this title who has been active in the licensed occupation or
             36930      profession while in the full-time employ of the United States government or under license to
             36931      practice that occupation or profession in any other state or territory of the United States may
             36932      reinstate [his] the licensee's license without taking an examination by submitting an application
             36933      for reinstatement, paying the current annual renewal fee and the reinstatement fee, and

             36934      submitting documentation showing completion of or compliance with any renewal qualifications
             36935      at any time within six months after reestablishing domicile within Utah or terminating full-time
             36936      government service.
             36937          Section 832. Section 58-1-402 is amended to read:
             36938           58-1-402. Administrative review -- Special appeals boards.
             36939          (1) (a) Any applicant who has been denied a license to practice on the basis of
             36940      credentials, character, or failure to pass a required examination, or who has been refused
             36941      renewal or reinstatement of a license to practice on the basis that the applicant does not meet
             36942      qualifications for continued licensure in any occupation or profession under the jurisdiction of
             36943      the division may submit a request for agency review to the executive director within 30 days
             36944      following notification of the denial of a license or refusal to renew or reinstate a license.
             36945          (b) The executive director shall determine whether the circumstances for denying an
             36946      application for an initial license or for renewal or reinstatement of a license would justify calling
             36947      a special appeals board under Subsection (2). The executive director's decision is not subject to
             36948      agency review.
             36949          (2) A special appeals board shall consist of three members appointed by the executive
             36950      director as follows:
             36951          (a) one member from the occupation or profession in question who is not on the board
             36952      of that occupation or profession;
             36953          (b) one member from the general public who is neither an attorney nor a practitioner in
             36954      an occupation or profession regulated by the division; and
             36955          (c) one member who is a resident lawyer currently licensed to practice law in this state
             36956      who shall serve as chair of the special appeals board.
             36957          (3) The special appeals board shall comply with the procedures and requirements of
             36958      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in its proceedings.
             36959          (4) (a) Within a reasonable amount of time following the conclusion of a hearing before
             36960      a special appeals board, the board shall enter an order based upon the record developed at the
             36961      hearing. The order shall state whether a legal basis exists for denying the application for an

             36962      initial license or for renewal or reinstatement of a license that is the subject of the appeal. The
             36963      order is not subject to further agency review.
             36964          (b) The division or the applicant may obtain judicial review of the decision of the special
             36965      appeals board in accordance with Sections [ 63-46b-14 ] 63G-4-401 and [ 63-46b-16 ]
             36966      63G-4-403 .
             36967          (5) (a) Members shall receive no compensation or benefits for their services, but may
             36968      receive per diem and expenses incurred in the performance of the member's official duties at the
             36969      rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             36970          (b) Members may decline to receive per diem and expenses for their service.
             36971          (6) If an applicant under Subsection (1) is not given a special appeals board, the
             36972      applicant shall be given agency review under the ordinary agency review procedures specified
             36973      by rule.
             36974          Section 833. Section 58-1-404 is amended to read:
             36975           58-1-404. Diversion -- Procedure.
             36976          (1) As used in this section, "diversion" means suspending action to discipline a licensee
             36977      who is or could be charged in a Notice of Agency Action with certain offenses within the
             36978      category of unprofessional or unlawful conduct on the condition that the licensee agrees to
             36979      participate in an educational or rehabilitation program or fulfill some other condition.
             36980          (2) (a) (i) The director may establish, as circumstances require, a diversion advisory
             36981      committee for each occupation or profession or similar groups of occupations or professions
             36982      licensed by the division.
             36983          (ii) The committees shall assist the director in the administration of this section.
             36984          (b) (i) Each committee shall consist of at least three licensees from the same or similar
             36985      occupation or profession as the person whose conduct is the subject of the committee's
             36986      consideration.
             36987          (ii) The director shall appoint the members of a diversion advisory committee from
             36988      nominations submitted by the corresponding board established for the same or similar
             36989      occupation or profession under Section 58-1-201 or from other qualified nominees developed

             36990      by or submitted to the division.
             36991          (iii) Committee members may not serve concurrently as members of the corresponding
             36992      board.
             36993          (iv) Committee members shall serve voluntarily without remuneration.
             36994          (v) The director may:
             36995          (A) dissolve any diversion advisory committee;
             36996          (B) remove or request the replacement of any member of a committee; and
             36997          (C) establish any procedure that is necessary and proper for a committee's
             36998      administration.
             36999          (3) The director may, after consultation with the appropriate diversion advisory
             37000      committee and by written agreement with the licensee, divert the licensee to a diversion
             37001      program:
             37002          (a) at any time after receipt by the division of a complaint against the licensee when no
             37003      adjudicative proceeding has been commenced;
             37004          (b) at any time prior to the conclusion of a hearing under Section [ 63-46b-8 ]
             37005      63G-4-206 when an adjudicative proceeding has been commenced against the licensee; or
             37006          (c) after a self-referral by a licensee who is not the subject of a current investigation,
             37007      complaint, or adjudicative proceeding.
             37008          (4) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             37009      Administrative Rulemaking Act, the division shall define by rule the particular offenses within
             37010      the category of unprofessional or unlawful conduct which may be subject to diversion.
             37011          (b) A licensee may be eligible for a diversion program only once for the same or similar
             37012      offense, whether the diversion program was in this state or another jurisdiction, and is not
             37013      eligible if previously disciplined by the division, by a licensing agency of another state, or by a
             37014      federal government agency for the same or a similar offense.
             37015          (c) The term of a diversion agreement shall be five years or less, but may be extended
             37016      for an additional period of time as agreed to by the parties in writing.
             37017          (d) A decision by the director not to divert a licensee is not subject to appeal or judicial

             37018      review.
             37019          (5) A licensee may be represented by counsel:
             37020          (a) during the negotiations for diversion;
             37021          (b) at the time of the execution of the diversion agreement; and
             37022          (c) at any hearing before the director relating to a diversion program.
             37023          (6) (a) As used in this section, "diversion agreement" means a written agreement
             37024      between the division, through its director, and the licensee, which specifies formal terms and
             37025      conditions the licensee must fulfill in order to comply with the diversion program.
             37026          (b) (i) A diversion agreement shall contain a full detailed statement of the requirements
             37027      agreed to by the licensee and a full detailed stipulation of the facts upon which the diversion
             37028      agreement is premised.
             37029          (ii) The facts stipulated in the diversion agreement shall constitute binding admissions of
             37030      the licensee:
             37031          (A) in any proceeding under Subsection (6)(c) or (6)(d) to terminate the diversion
             37032      agreement and impose disciplinary sanctions against the licensee; and
             37033          (B) in any disciplinary proceeding based on unprofessional or unlawful conduct that is
             37034      not the basis of the diversion agreement.
             37035          (c) The diversion agreement shall provide that if the licensee makes an intentional
             37036      material misrepresentation of fact in the stipulation of facts contained in the diversion
             37037      agreement, the director shall initiate the procedures set forth in Subsection (13) to terminate the
             37038      diversion agreement and issue an order of license revocation.
             37039          (d) (i) The diversion agreement shall provide that if the licensee fails to comply with its
             37040      terms, the director shall initiate the procedures set forth in Subsection (14) to terminate the
             37041      diversion agreement and issue an order of license suspension, which shall be stayed in favor of
             37042      an order of probation having the same terms as those which comprised the diversion agreement.
             37043          (ii) The division may waive and not include as probationary requirements any terms of
             37044      the diversion agreement it does not consider necessary to protect the public.
             37045          (iii) The term of the order of probation shall be as provided in Subsection (14)(c)(ii).

             37046          (e) The division director may not approve a diversion agreement unless the licensee, as
             37047      part of the diversion agreement:
             37048          (i) knowingly and intelligently waives the right to a hearing under [Title 63, Chapter
             37049      46b] Title 63G, Chapter 4, Administrative Procedures Act, for the conduct upon which the
             37050      diversion agreement was premised;
             37051          (ii) agrees to be subject to the procedures and remedies set forth in this section;
             37052          (iii) acknowledges an understanding of the consequences of making an intentional
             37053      misrepresentation of fact in the stipulation of facts contained in the diversion agreement; and
             37054          (iv) acknowledges an understanding of the consequences of failing to comply with the
             37055      terms of the diversion agreement.
             37056          (7) (a) If the division and the licensee enter into a diversion agreement after the division
             37057      has commenced an adjudicative proceeding against the licensee, the director shall stay that
             37058      proceeding pending completion of the diversion agreement.
             37059          (b) The order staying the adjudicative proceeding shall be filed in that proceeding and
             37060      may reference the diversion agreement.
             37061          (8) (a) Upon successful completion of a diversion agreement, the director shall dismiss
             37062      any charges under the director's jurisdiction of unprofessional or unlawful conduct that were
             37063      filed against the licensee.
             37064          (b) Whether or not an adjudicative proceeding had been commenced against the
             37065      licensee, the division may not thereafter subject the licensee to disciplinary action for the
             37066      conduct which formed the basis of the completed diversion agreement.
             37067          (c) Neither the execution of a diversion agreement nor the dismissal of filed charges
             37068      constitute disciplinary action, and no report of either may be made to disciplinary databases.
             37069          (d) The division may consider the completion of a diversion program and the contents
             37070      of the diversion agreement in determining the appropriate disciplinary action if the licensee is
             37071      charged in the future with the same or similar conduct.
             37072          (e) The order of dismissal shall be filed in the adjudicative proceeding in which the
             37073      misconduct was charged and may reference the diversion agreement.

             37074          (9) (a) Acceptance of the licensee into diversion does not preclude the division from
             37075      investigating or continuing to investigate the licensee for any unlawful or unprofessional
             37076      conduct committed before, during, or after participation in the diversion program.
             37077          (b) Acceptance of the licensee into diversion does not preclude the division from taking
             37078      disciplinary action or continuing to take disciplinary action against the licensee for unlawful or
             37079      unprofessional conduct committed before, during, or after participation in the diversion
             37080      program, except for that conduct which formed the basis for the diversion agreement.
             37081          (c) Any licensee terminated from the diversion program for failure to comply with the
             37082      diversion agreement is subject to disciplinary action by the division for acts committed before,
             37083      during, and after participation in the diversion program, including violations identified in the
             37084      diversion agreement.
             37085          (10) The classification, retention, and disclosure of records relating to a licensee's
             37086      participation in the diversion program is governed by [Title 63, Chapter 2] Title 63G, Chapter
             37087      2, Government Records Access and Management Act, except that any provision in the diversion
             37088      agreement which addresses access to or release of diversion records regarding the licensee shall
             37089      govern the access to and release of those records.
             37090          (11) Notwithstanding any other provision of this section, the fact that the licensee
             37091      completed a diversion program and the contents of the diversion agreement itself may be
             37092      considered by the division in determining the appropriate disciplinary action if the licensee is
             37093      charged in the future with the same or similar conduct.
             37094          (12) Meetings regarding the diversion program are not subject to Title 52, Chapter 4,
             37095      Open and Public Meetings Act.
             37096          (13) (a) If, during the course of the diversion agreement, information is brought to the
             37097      attention of the director that the licensee made an intentional material misrepresentation of fact
             37098      in the stipulation of facts contained in the diversion agreement, the director shall cause to be
             37099      served upon the licensee an order to show cause specifying the information relied upon by the
             37100      director and setting a time and place for hearing to determine whether or not the licensee made
             37101      the intentional material misrepresentation of fact and whether the agreement should be

             37102      terminated on that ground.
             37103          (b) Proceedings to terminate a diversion agreement on the grounds that the licensee
             37104      made an intentional material misrepresentation of fact in the stipulation of facts contained in the
             37105      diversion agreement and to issue an order of license revocation shall comply with [Title 63,
             37106      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, except as follows:
             37107          (i) the notice of agency action shall be in the form of an order to show cause, which
             37108      shall contain all of the information specified in Subsection [ 63-46b-3 ] 63G-4-201 (2), except a
             37109      statement that a written response to the order to show cause is required;
             37110          (ii) no written response to the order to show cause is required;
             37111          (iii) discovery is prohibited, but the division may issue subpoenas or other orders to
             37112      compel production of necessary evidence on behalf of either party and all parties shall have
             37113      access to information contained in the division's diversion file to the extent permitted by law;
             37114          (iv) the hearing shall be held only after timely notice to all parties; and
             37115          (v) any agency review or reconsideration of an order terminating a diversion agreement
             37116      or of an order of license revocation pursuant to this Subsection (13) shall be limited to the
             37117      division director's findings of fact, conclusions of law, and order which arose out of the order to
             37118      show cause proceeding.
             37119          (c) Upon finding the licensee made an intentional material misrepresentation of fact in
             37120      the stipulation of facts contained in the diversion agreement and that terminating the agreement
             37121      is in the best interest of the public, and issuing an order to that effect, the director shall issue an
             37122      order of license revocation, revoking the licensee's professional license.
             37123          (d) The order terminating the diversion agreement and the order of license revocation
             37124      shall include findings of fact and conclusions of law as determined by the director following the
             37125      hearing or as otherwise stipulated and agreed to by the parties.
             37126          (e) If the diversion agreement being terminated was entered into after the division had
             37127      commenced an adjudicative proceeding against the licensee, that adjudicative proceeding shall
             37128      be considered to be merged into the order of license revocation and it may not constitute a basis
             37129      for any separate disciplinary action against the licensee.

             37130          (f) The order terminating the diversion agreement and the order of license revocation
             37131      shall notify the licensee of the right to request agency review or reconsideration.
             37132          (14) (a) If, during the course of the diversion agreement, information is brought to the
             37133      attention of the director that the licensee has violated the diversion agreement and if it appears
             37134      in the best interest of the public to proceed with charges, the director, after consultation with
             37135      the diversion advisory committee, shall cause to be served upon the licensee an order to show
             37136      cause specifying the facts relied upon by the director and setting a time and place for hearing to
             37137      determine whether or not the licensee has violated the diversion agreement and whether the
             37138      agreement should be terminated.
             37139          (b) Proceedings to terminate a diversion agreement and to issue an order of license
             37140      suspension and probation, and proceedings to terminate the probation and lift the stay of a
             37141      license suspension, shall comply with [Title 63, Chapter 46b] Title 63G, Chapter 4,
             37142      Administrative Procedures Act, except as follows:
             37143          (i) the notice of agency action shall be in the form of an order to show cause, which
             37144      shall contain all of the information specified in Subsection [ 63-46b-3 ] 63G-4-201 (2), except a
             37145      statement that a written response to the order to show cause is required;
             37146          (ii) no written response to the order to show cause shall be required;
             37147          (iii) discovery is prohibited, but the division may issue subpoenas or other orders to
             37148      compel production of necessary evidence on behalf of either party and all parties shall have
             37149      access to information contained in the division's diversion file to the extent permitted by law;
             37150          (iv) the hearing shall be held only after timely notice to all parties; and
             37151          (v) any agency review or reconsideration of an order terminating a diversion agreement
             37152      or of an order of license suspension and probation pursuant to this Subsection (14) shall be
             37153      limited to the division director's findings of fact, conclusions of law, and order which arose out
             37154      of the order to show cause proceeding.
             37155          (c) (i) Upon finding the licensee has violated the diversion agreement and that
             37156      terminating the agreement is in the best interest of the public, and issuing an order to that effect,
             37157      the director shall issue an order of license suspension, suspending the licensee's professional

             37158      license, but shall stay that suspension in favor of an order of probation, consisting of the same
             37159      terms as those which comprised the diversion agreement.
             37160          (ii) The period of probation shall be the time period which remained under the diversion
             37161      agreement, or five years from the date of the order of license suspension and probation,
             37162      whichever is longer, unless otherwise agreed by the parties.
             37163          (iii) The period of probation is tolled during any time in which the licensee does not
             37164      have an active license in the state.
             37165          (d) (i) The order terminating the diversion agreement and the order of license
             37166      suspension and probation shall include findings of fact and conclusions of law as determined by
             37167      the director following the hearing or as otherwise stipulated and agreed to by the parties.
             37168          (ii) The findings of fact may include those facts to which the licensee stipulated in the
             37169      diversion agreement and any additional facts as the director may determine in the course of the
             37170      hearing.
             37171          (e) If the diversion agreement being terminated was entered into after the division had
             37172      commenced an adjudicative proceeding against the licensee, that adjudicative proceeding shall
             37173      be considered to be merged into the order of license suspension and probation and it may not
             37174      constitute a basis for any separate disciplinary action against the licensee.
             37175          (f) The order terminating the diversion agreement and the order of license suspension
             37176      and probation shall notify the licensee of the right to request agency review or reconsideration.
             37177          (g) (i) The terms and conditions of the order of license suspension and probation may
             37178      be amended by order of the director, pursuant to motion or stipulation of the parties.
             37179          (ii) The order of the director on the motion shall not be subject to agency review, but is
             37180      subject to agency reconsideration under Section [ 63-46b-13 ] 63G-4-302 .
             37181          (h) (i) If, during the course of probation, the director has reason to believe the licensee
             37182      has violated the order of suspension and probation, the director shall cause to be served upon
             37183      the licensee an order to show cause why the probation should not be terminated and the stay of
             37184      suspension lifted.
             37185          (ii) The order to show cause shall specify the facts relied upon by the director and shall

             37186      set a time and place for hearing before the director to determine whether or not the licensee has
             37187      violated the order of suspension and probation and whether that order should be terminated and
             37188      the stay of suspension lifted.
             37189          (15) (a) Nothing in this section precludes the division from issuing an emergency order
             37190      pursuant to Section [ 63-46b-20 ] 63G-4-502 .
             37191          (b) If the division issues an emergency order against a licensee who is subject to a
             37192      diversion agreement with the division, that diversion agreement shall be immediately and
             37193      automatically terminated upon the issuance of the emergency order, without compliance with
             37194      the provisions of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             37195          (c) (i) A licensee whose diversion agreement has been terminated pursuant to
             37196      Subsection (15)(b) is entitled, upon request, to a posttermination hearing to challenge the
             37197      termination of the diversion agreement.
             37198          (ii) The request shall be considered a request for agency action and shall comply with
             37199      the requirements of Subsection [ 63-46b-3 ] 63G-4-201 (3).
             37200          (iii) The division shall uphold the termination of the diversion agreement if it finds that:
             37201          (A) the licensee violated the diversion agreement; and
             37202          (B) it is in the best interest of the public to terminate the diversion agreement.
             37203          (16) The administrative statute of limitations for taking disciplinary action described in
             37204      Subsection 58-1-401 (5) shall be tolled during a diversion program.
             37205          Section 834. Section 58-3a-103 is amended to read:
             37206           58-3a-103. Education and enforcement fund.
             37207          (1) There is created a restricted special revenue fund known as the "Architects
             37208      Education and Enforcement Fund."
             37209          (2) The fund consists of monies from:
             37210          (a) a surcharge fee placed on initial, renewal, and reinstatement licensure fees under this
             37211      chapter in accordance with the following:
             37212          (i) the surcharge fee shall be determined by the department in accordance with Section
             37213      [ 63-38-3.2 ] 63J-1-303 ; and

             37214          (ii) the surcharge fee shall not exceed 50% of the respective initial, renewal, or
             37215      reinstatement licensure fee; and
             37216          (b) administrative penalties collected pursuant to this chapter.
             37217          (3) The fund shall earn interest and all interest earned on fund monies shall be deposited
             37218      into the fund.
             37219          (4) The director may, with concurrence of the board, make distributions from the fund
             37220      for the following purposes:
             37221          (a) education and training of licensees under this chapter;
             37222          (b) education and training of the public or other interested persons in matters
             37223      concerning architectural laws and practices; and
             37224          (c) enforcement of this chapter by:
             37225          (i) investigating unprofessional or unlawful conduct; and
             37226          (ii) providing legal representation to the division when the division takes legal action
             37227      against a person engaging in unprofessional or unlawful conduct.
             37228          (5) If the balance in the fund exceeds $100,000 at the close of any fiscal year, the excess
             37229      shall be transferred to the General Fund.
             37230          (6) The division shall report annually to the appropriate appropriations subcommittee of
             37231      the Legislature concerning the fund.
             37232          Section 835. Section 58-3a-302 is amended to read:
             37233           58-3a-302. Qualifications for licensure.
             37234          (1) Except as provided in Subsection (2), each applicant for licensure as an architect
             37235      shall:
             37236          (a) submit an application in a form prescribed by the division;
             37237          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37238          (c) provide satisfactory evidence of good moral character;
             37239          (d) have graduated and received an earned bachelors or masters degree from an
             37240      architecture program meeting criteria established by rule by the division in collaboration with
             37241      the board;

             37242          (e) have successfully completed a program of diversified practical experience
             37243      established by rule by the division in collaboration with the board;
             37244          (f) have successfully passed examinations established by rule by the division in
             37245      collaboration with the board; and
             37246          (g) meet with the board or representative of the division upon request for the purpose
             37247      of evaluating the applicant's qualifications for license.
             37248          (2) Each applicant for licensure as an architect by endorsement shall:
             37249          (a) submit an application in a form prescribed by the division;
             37250          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37251          (c) provide satisfactory evidence of good moral character;
             37252          (d) submit satisfactory evidence of:
             37253          (i) current licensure in good standing in a jurisdiction recognized by rule by the division
             37254      in collaboration with the board; and
             37255          (ii) current certification from the National Council of Architectural Registration Boards;
             37256      or
             37257          (iii) current license in good standing in a jurisdiction recognized by rule by the division
             37258      in collaboration with the board; and
             37259          (iv) full-time employment as a licensed architect as a principal for at least five of the last
             37260      seven years immediately preceding the date of the application; and
             37261          (e) have successfully passed any examination established by rule by the division in
             37262      collaboration with the board; and
             37263          (f) meet with the board or representative of the division upon request for the purpose of
             37264      evaluating the applicant's qualifications for license.
             37265          Section 836. Section 58-3a-502 is amended to read:
             37266           58-3a-502. Penalty for unlawful conduct.
             37267          (1) (a) If upon inspection or investigation, the division concludes that a person has
             37268      violated Subsections 58-1-501 (1)(a) through (d) or Section 58-3a-501 or any rule or order
             37269      issued with respect to Section 58-3a-501 , and that disciplinary action is appropriate, the director

             37270      or [his] the director's designee from within the division for each alternative respectively, shall
             37271      promptly issue a citation to the person according to this chapter and any pertinent rules, attempt
             37272      to negotiate a stipulated settlement, or notify the person to appear before an adjudicative
             37273      proceeding conducted under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             37274      Procedures Act.
             37275          (i) A person who violates Subsections 58-1-501 (1)(a) through (d) or Section 58-3a-501
             37276      or any rule or order issued with respect to Section 58-3a-501 , as evidenced by an uncontested
             37277      citation, a stipulated settlement, or by a finding of violation in an adjudicative proceeding, may
             37278      be assessed a fine pursuant to this Subsection (1) and may, in addition to or in lieu of, be
             37279      ordered to cease and desist from violating Subsections 58-1-501 (1)(a) through (d) or Section
             37280      58-3a-501 or any rule or order issued with respect to this section.
             37281          (ii) Except for a cease and desist order, the licensure sanctions cited in Section
             37282      58-3a-401 may not be assessed through a citation.
             37283          (b) A citation shall:
             37284          (i) be in writing;
             37285          (ii) describe with particularity the nature of the violation, including a reference to the
             37286      provision of the chapter, rule, or order alleged to have been violated;
             37287          (iii) clearly state that the recipient must notify the division in writing within 20 calendar
             37288      days of service of the citation if the recipient wishes to contest the citation at a hearing
             37289      conducted under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act;
             37290      and
             37291          (iv) clearly explain the consequences of failure to timely contest the citation or to make
             37292      payment of any fines assessed by the citation within the time specified in the citation.
             37293          (c) The division may issue a notice in lieu of a citation.
             37294          (d) Each citation issued under this section, or a copy of each citation, may be served
             37295      upon any person whom a summons may be served in accordance with the Utah Rules of Civil
             37296      Procedure and may be made personally or upon [his] the person's agent by a division
             37297      investigator or by any person specially designated by the director or by mail.

             37298          (e) If within 20 calendar days from the service of the citation, the person to whom the
             37299      citation was issued fails to request a hearing to contest the citation, the citation becomes the
             37300      final order of the division and is not subject to further agency review. The period to contest a
             37301      citation may be extended by the division for cause.
             37302          (f) The division may refuse to issue or renew, suspend, revoke, or place on probation
             37303      the license of a licensee who fails to comply with a citation after it becomes final.
             37304          (g) The failure of an applicant for licensure to comply with a citation after it becomes
             37305      final is a ground for denial of license.
             37306          (h) No citation may be issued under this section after the expiration of six months
             37307      following the occurrence of any violation.
             37308          (i) The director or [his] the director's designee shall assess fines according to the
             37309      following:
             37310          (i) for a first offense handled pursuant to Subsection (1)(a), a fine of up to $1,000;
             37311          (ii) for a second offense handled pursuant to Subsection (1)(a), a fine of up to $2,000;
             37312      and
             37313          (iii) for any subsequent offense handled pursuant to Subsection (1)(a), a fine of up to
             37314      $2,000 for each day of continued offense.
             37315          (2) An action initiated for a first or second offense which has not yet resulted in a final
             37316      order of the division shall not preclude initiation of any subsequent action for a second or
             37317      subsequent offense during the pendency of any preceding action. The final order on a
             37318      subsequent action shall be considered a second or subsequent offense, respectively, provided the
             37319      preceding action resulted in a first or second offense, respectively.
             37320          (3) Any penalty which is not paid may be collected by the director by either referring
             37321      the matter to a collection agency or bringing an action in the district court of the county in
             37322      which the person against whom the penalty is imposed resides or in the county where the office
             37323      of the director is located. Any county attorney or the attorney general of the state shall provide
             37324      legal assistance and advice to the director in any action to collect the penalty. In any action
             37325      brought to enforce the provisions of this section, reasonable attorney's fees and costs shall be

             37326      awarded to the division.
             37327          Section 837. Section 58-5a-302 is amended to read:
             37328           58-5a-302. Qualifications to practice podiatry.
             37329          An applicant for licensure to practice podiatry shall:
             37330          (1) submit an application in a form as prescribed by the division;
             37331          (2) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37332          (3) be of good moral character;
             37333          (4) be a graduate of a college of podiatric medicine accredited by the Council of
             37334      Podiatric Education;
             37335          (5) have completed one year of postgraduate training in a residency program
             37336      recognized by the board; and
             37337          (6) pass examinations required by rule.
             37338          Section 838. Section 58-9-302 is amended to read:
             37339           58-9-302. Qualifications for licensure.
             37340          (1) Each applicant for licensure as a funeral service director shall:
             37341          (a) submit an application in a form prescribed by the division;
             37342          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37343          (c) be of good moral character in that the applicant has not been convicted of:
             37344          (i) a first or second degree felony;
             37345          (ii) a misdemeanor involving moral turpitude; or
             37346          (iii) any other crime that when considered with the duties and responsibilities of a
             37347      funeral service director is considered by the division and the board to indicate that the best
             37348      interests of the public are not served by granting the applicant a license;
             37349          (d) have obtained a high school diploma or its equivalent or a higher education degree;
             37350          (e) have obtained an associate degree, or its equivalent, in mortuary science from a
             37351      school of funeral service accredited by the American Board of Funeral Service Education or
             37352      other accrediting body recognized by the U.S. Department of Education;
             37353          (f) have completed not less than 2,000 hours and 50 embalmings, over a period of not

             37354      less than one year, of satisfactory performance in training as a licensed funeral service intern
             37355      under the supervision of a licensed funeral service director; and
             37356          (g) obtain a passing score on examinations approved by the division in collaboration
             37357      with the board.
             37358          (2) Each applicant for licensure as a funeral service intern shall:
             37359          (a) submit an application in a form prescribed by the division;
             37360          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37361          (c) be of good moral character in that the applicant has not been convicted of:
             37362          (i) a first or second degree felony;
             37363          (ii) a misdemeanor involving moral turpitude; or
             37364          (iii) any other crime that when considered with the duties and responsibilities of a
             37365      funeral service intern is considered by the division and the board to indicate that the best
             37366      interests of the public are not served by granting the applicant a license;
             37367          (d) have obtained a high school diploma or its equivalent or a higher education degree;
             37368      and
             37369          (e) obtain a passing score on an examination approved by the division in collaboration
             37370      with the board.
             37371          (3) Each applicant for licensure as a funeral service establishment and each funeral
             37372      service establishment licensee shall:
             37373          (a) submit an application in a form prescribed by the division;
             37374          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37375          (c) have in place:
             37376          (i) an embalming room for preparing dead human bodies for burial or final disposition,
             37377      which may serve one or more facilities operated by the applicant;
             37378          (ii) a refrigeration room that maintains a temperature of not more than 40 degrees
             37379      fahrenheit for preserving dead human bodies prior to burial or final disposition, which may serve
             37380      one or more facilities operated by the applicant; and
             37381          (iii) maintain at all times a licensed funeral service director who is responsible for the

             37382      day-to-day operation of the funeral service establishment and who is personally available to
             37383      perform the services for which the license is required;
             37384          (d) affiliate with a licensed preneed funeral arrangement sales agent or funeral service
             37385      director if the funeral service establishment sells preneed funeral arrangements;
             37386          (e) file with the completed application a copy of each form of contract or agreement the
             37387      applicant will use in the sale of preneed funeral arrangements; and
             37388          (f) provide evidence of appropriate licensure with the Insurance Department if the
             37389      applicant intends to engage in the sale of any preneed funeral arrangements funded in whole or
             37390      in part by an insurance policy or product to be sold by the provider or the provider's sales agent.
             37391          (4) Each applicant for licensure as a preneed funeral arrangement sales agent shall:
             37392          (a) submit an application in a form prescribed by the division;
             37393          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37394          (c) be of good moral character in that the applicant has not been convicted of:
             37395          (i) a first or second degree felony;
             37396          (ii) a misdemeanor involving moral turpitude; or
             37397          (iii) any other crime that when considered with the duties and responsibilities of a
             37398      preneed funeral sales agent is considered by the division and the board to indicate that the best
             37399      interests of the public are not served by granting the applicant a license;
             37400          (d) have obtained a high school diploma or its equivalent or a higher education degree;
             37401          (e) have obtained a passing score on an examination approved by the division in
             37402      collaboration with the board;
             37403          (f) affiliate with a licensed funeral service establishment; and
             37404          (g) provide evidence of appropriate licensure with the Insurance Department if the
             37405      applicant intends to engage in the sale of any preneed funeral arrangements funded in whole or
             37406      in part by an insurance policy or product.
             37407          Section 839. Section 58-9-504 is amended to read:
             37408           58-9-504. Authority to promulgate rules.
             37409          In addition to the authority granted under Section 58-1-106 , in accordance with [Title

             37410      63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division in
             37411      collaboration with the board shall establish by rule:
             37412          (1) the minimum requirements for a licensed funeral establishment for the following:
             37413          (a) physical facilities;
             37414          (b) equipment;
             37415          (c) instruments; and
             37416          (d) supplies;
             37417          (2) license cycles under Section 58-9-303 ;
             37418          (3) standards to protect the interests of buyers and potential buyers of preneed funeral
             37419      arrangements under Section 58-9-701 ; and
             37420          (4) standards for preneed funeral arrangement trusts.
             37421          Section 840. Section 58-9-701 is amended to read:
             37422           58-9-701. Preneed contract requirements.
             37423          (1) (a) Every preneed funeral arrangement sold in Utah shall be evidenced by a written
             37424      contract.
             37425          (b) The funeral service establishment shall maintain a copy of the contract until five
             37426      years after all of its obligations under the contract have been executed.
             37427          (2) Each preneed contract form shall:
             37428          (a) be written in clear and understandable language printed in an easy-to-read type size
             37429      and style;
             37430          (b) bear the preprinted name, address, telephone number, and license number of the
             37431      funeral service establishment obligated to provide the services under the contract terms;
             37432          (c) be sequentially numbered by contract form;
             37433          (d) clearly identify that the contract is a guaranteed product contract;
             37434          (e) provide that a trust is established in accordance with the provisions of Section
             37435      58-9-702 ;
             37436          (f) if the contract is funded by an insurance policy or product, provide that the insurance
             37437      policy or product is filed with the Insurance Department and meets the requirements of Title

             37438      31A, Insurance Code; and
             37439          (g) conform to other standards created by rule under [Title 63, Chapter 46a] Title 63G,
             37440      Chapter 3, Utah Administrative Rulemaking Act, to protect the interests of buyers and potential
             37441      buyers.
             37442          (3) A preneed contract shall provide for payment by the buyer in a form which may be
             37443      liquidated by the funeral service establishment within 30 days after the day the funeral service
             37444      establishment or sales agent receives the payment.
             37445          (4) A preneed contract may not be revocable by the funeral service establishment
             37446      except:
             37447          (a) in the event of nonpayment; and
             37448          (b) under terms and conditions clearly set forth in the contract.
             37449          (5) (a) A preneed contract may not be revocable by the buyer or beneficiary except:
             37450          (i) in the event of:
             37451          (A) a substantial contract breach by the funeral service establishment; or
             37452          (B) substantial evidence that the funeral service establishment is or will be unable to
             37453      provide the personal property or services to the beneficiary as provided under the contract; or
             37454          (ii) under terms and conditions clearly set forth in the contract.
             37455          (b) The contract shall contain a clear statement of the manner in which payments made
             37456      on the contract shall be refunded to the buyer or beneficiary upon revocation by the beneficiary.
             37457          (6) (a) A preneed contract shall provide the buyer the option to require the funeral
             37458      service establishment to furnish a written disclosure to a person who does not live at the same
             37459      residence as the buyer.
             37460          (b) The buyer may choose:
             37461          (i) a full disclosure containing a copy of the entire preneed contract;
             37462          (ii) a partial disclosure informing the recipient of:
             37463          (A) the existence of a preneed contract; and
             37464          (B) the name, address, telephone number, and license number of the funeral service
             37465      establishment obligated to provide the services under the preneed contract; or

             37466          (iii) not to require the funeral service establishment to furnish a written disclosure to
             37467      another person.
             37468          Section 841. Section 58-11a-102 is amended to read:
             37469           58-11a-102. Definitions.
             37470          (1) "Approved barber or cosmetologist/barber apprenticeship" means an apprenticeship
             37471      that meets the requirements of Subsection 58-11a-306 (1) for barbers or Subsection
             37472      58-11a-306 (2) for cosmetologist/barbers and the requirements established by rule by the
             37473      division in collaboration with the board in accordance with [Title 63, Chapter 46a] Title 63G,
             37474      Chapter 3, Utah Administrative Rulemaking Act.
             37475          (2) "Approved esthetician apprenticeship" means an apprenticeship that meets the
             37476      requirements of Subsection 58-11a-306 (3) and the requirements established by rule by the
             37477      division in collaboration with the board in accordance with [Title 63, Chapter 46a] Title 63G,
             37478      Chapter 3, Utah Administrative Rulemaking Act.
             37479          (3) "Approved master esthetician apprenticeship" means an apprenticeship that meets
             37480      the requirements of Subsection 58-11a-306 (4) and the requirements established by rule by the
             37481      division in collaboration with the board in accordance with [Title 63, Chapter 46a] Title 63G,
             37482      Chapter 3, Utah Administrative Rulemaking Act.
             37483          (4) "Approved nail technician apprenticeship" means an apprenticeship that meets the
             37484      requirements of Subsection 58-11a-306 (5) and the requirements established by rule by the
             37485      division in collaboration with the board in accordance with [Title 63, Chapter 46a] Title 63G,
             37486      Chapter 3, Utah Administrative Rulemaking Act.
             37487          (5) "Barber" means a person who is licensed under this chapter to engage in the practice
             37488      of barbering.
             37489          (6) "Barber instructor" means a barber who is licensed under this chapter to teach
             37490      barbering at a licensed barber school.
             37491          (7) "Board" means the Barber, Cosmetology/Barbering, Esthetics, Electrology, and Nail
             37492      Technology Licensing Board created in Section 58-11a-201 .
             37493          (8) "Cosmetologist/barber" means a person who is licensed under this chapter to

             37494      engage in the practice of cosmetology/barbering.
             37495          (9) "Cosmetologist/barber instructor" means a cosmetologist/barber who is licensed
             37496      under this chapter to teach cosmetology/barbering at a licensed cosmetology/barber school.
             37497          (10) "Direct supervision" means that the supervisor of an apprentice or the instructor of
             37498      a student is immediately available for consultation, advice, instruction, and evaluation.
             37499          (11) "Electrologist" means a person who is licensed under this chapter to engage in the
             37500      practice of electrology.
             37501          (12) "Electrologist instructor" means an electrologist who is licensed under this chapter
             37502      to teach electrology at a licensed electrology school.
             37503          (13) "Esthetician" means a person who is licensed under this chapter to engage in the
             37504      practice of esthetics.
             37505          (14) "Esthetician instructor" means a master esthetician who is licensed under this
             37506      chapter to teach the practice of esthetics and the practice of master-level esthetics at a licensed
             37507      esthetics school.
             37508          (15) "Fund" means the Barber, Cosmetologist/Barber, Esthetician, Electrologist, and
             37509      Nail Technician Education and Enforcement Fund created in Section 58-11a-103 .
             37510          (16) "Licensed barber or cosmetology/barber school" means a barber or
             37511      cosmetology/barber school licensed under this chapter.
             37512          (17) "Licensed electrology school" means an electrology school licensed under this
             37513      chapter.
             37514          (18) "Licensed esthetics school" means an esthetics school licensed under this chapter.
             37515          (19) "Licensed nail technology school" means a nail technology school licensed under
             37516      this chapter.
             37517          (20) "Master esthetician" means an individual who is licensed under this chapter to
             37518      engage in the practice of master-level esthetics.
             37519          (21) "Nail technician" means an individual who is licensed under this chapter to engage
             37520      in the practice of nail technology.
             37521          (22) "Nail technician instructor" means a nail technician licensed under this chapter to

             37522      teach the practice of nail technology in a licensed nail technology school.
             37523          (23) "Practice of barbering" means:
             37524          (a) cutting, clipping, or trimming the hair of the head of any person by the use of
             37525      scissors, shears, clippers, or other appliances; and
             37526          (b) removing hair from the face or neck of a person by the use of shaving equipment.
             37527          (24) "Practice of barbering instruction" means instructing barbering in a licensed barber
             37528      school.
             37529          (25) "Practice of basic esthetics" means any one of the following skin care procedures
             37530      done on the head, face, neck, arms, hands, legs, feet, eyebrows, or eyelashes for cosmetic
             37531      purposes and not for the treatment of medical, physical, or mental ailments:
             37532          (a) cleansing, stimulating, manipulating, exercising, applying oils, antiseptics, clays, or
             37533      masks, manual extraction, including a comodone extractor, depilatories, waxes, tweezing,
             37534      natural nail manicures or pedicures, or callous removal by buffing or filing;
             37535          (b) limited chemical exfoliation as defined by rule;
             37536          (c) removing superfluous hair by means other than electrolysis or laser procedures; or
             37537          (d) other esthetic preparations or procedures with the use of the hands, a
             37538      high-frequency or galvanic electrical apparatus, or a heat lamp for cosmetic purposes and not
             37539      for the treatment of medical, physical, or mental ailments.
             37540          (26) (a) "Practice of cosmetology/barbering" means:
             37541          (i) styling, arranging, dressing, curling, waving, permanent waving, cleansing, singeing,
             37542      bleaching, dyeing, tinting, coloring, or similarly treating the hair of the head of a person;
             37543          (ii) cutting, clipping, or trimming the hair by the use of scissors, shears, clippers, or
             37544      other appliances;
             37545          (iii) arching eyebrows, or tinting eyebrows or eyelashes, or both;
             37546          (iv) removing hair from the face, neck, shoulders, arms, back, torso, feet, bikini line, or
             37547      legs of a person by the use of depilatories, waxing, or shaving equipment;
             37548          (v) cutting, curling, styling, fitting, measuring, or forming caps for wigs or hairpieces
             37549      or both on the human head; or

             37550          (vi) practicing hair weaving or hair fusing or servicing previously medically implanted
             37551      hair.
             37552          (b) The term "practice of cosmetology/barbering" includes:
             37553          (i) the practice of basic esthetics; and
             37554          (ii) the practice of nail technology.
             37555          (27) "Practice of cosmetology/barbering instruction" means instructing
             37556      cosmetology/barbering in a licensed cosmetology/barber school.
             37557          (28) "Practice of electrology" means the removal of superfluous hair from the body of a
             37558      person by the use of electricity.
             37559          (29) "Practice of electrology instruction" means instructing electrology in a licensed
             37560      electrology school.
             37561          (30) "Practice of esthetics instruction" means instructing esthetics or master-level
             37562      esthetics in a licensed esthetics school.
             37563          (31) (a) "Practice of master-level esthetics" means:
             37564          (i) any of the following when done for cosmetic purposes on the head, face, neck, torso,
             37565      abdomen, back, arms, hands, legs, feet, eyebrows, or eyelashes and not for the treatment of
             37566      medical, physical, or mental ailments:
             37567          (A) body wraps as defined by rule;
             37568          (B) hydrotherapy as defined by rule;
             37569          (C) chemical exfoliation as defined by rule;
             37570          (D) advanced pedicures as defined by rule;
             37571          (E) sanding, including microdermabrasion;
             37572          (F) advanced extraction; or
             37573          (G) other esthetic preparations or procedures with the use of:
             37574          (I) the hands; or
             37575          (II) a mechanical or electrical apparatus which is approved for use by division rule for
             37576      beautifying or similar work performed on the body for cosmetic purposes and not for the
             37577      treatment of a medical, physical, or mental ailment; and

             37578          (ii) lymphatic massage by manual or other means.
             37579          (b) Notwithstanding the provisions of Subsection (31)(a), a master-level esthetician may
             37580      perform procedures listed in Subsection (31)(a)(i) for noncosmetic purposes if done under the
             37581      supervision of a licensed health care practitioner acting within the scope of [his or her] the
             37582      licensed health care practitioner's license.
             37583          (c) The term "practice of master-level esthetics" includes the practice of esthetics.
             37584          (32) "Practice of nail technology" means to trim, cut, clean, manicure, shape, massage,
             37585      or enhance the appearance of the hands, feet, and nails of an individual by the use of hands,
             37586      mechanical, or electrical preparation, antiseptic, lotions, or creams, including the application and
             37587      removal of sculptured or artificial nails.
             37588          (33) "Practice of nail technology instruction" means instructing nail technology in a
             37589      licensed nail technician school.
             37590          (34) "Recognized barber school" means a barber school located in a state other than
             37591      Utah, whose students, upon graduation, are recognized as having completed the educational
             37592      requirements for licensure in that state.
             37593          (35) "Recognized cosmetology/barber school" means a cosmetology/barber school
             37594      located in a state other than Utah, whose students, upon graduation, are recognized as having
             37595      completed the educational requirements for licensure in that state.
             37596          (36) "Recognized electrology school" means an electrology school located in a state
             37597      other than Utah, whose students, upon graduation, are recognized as having completed the
             37598      educational requirements for licensure in that state.
             37599          (37) "Recognized esthetics school" means an esthetics school located in a state other
             37600      than Utah, whose students, upon graduation, are recognized as having completed the
             37601      educational requirements for licensure in that state.
             37602          (38) "Recognized nail technology school" means a nail technology school located in a
             37603      state other than Utah, whose students, upon graduation, are recognized as having completed the
             37604      educational requirements for licensure in that state.
             37605          (39) "Salon" means a place, shop, or establishment in which cosmetology/barbering,

             37606      esthetics, electrology, or nail technology is practiced.
             37607          (40) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-11a-502 .
             37608          (41) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-11a-501 and
             37609      as may be further defined by rule by the division in collaboration with the board in accordance
             37610      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             37611          Section 842. Section 58-11a-302 is amended to read:
             37612           58-11a-302. Qualifications for licensure.
             37613          (1) Each applicant for licensure as a barber shall:
             37614          (a) submit an application in a form prescribed by the division;
             37615          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37616          (c) be of good moral character;
             37617          (d) provide satisfactory documentation of:
             37618          (i) graduation from a licensed or recognized barber school whose curriculum consists of
             37619      a minimum of 1,000 hours of instruction or the equivalent number of credit hours over a period
             37620      of not less than six months;
             37621          (ii) (A) having graduated from a recognized barber school whose curriculum consists of
             37622      less than 1,000 hours of instruction or the equivalent number of credit hours; and
             37623          (B) having practiced as a licensed barber for a period of not less than 2,000 hours; or
             37624          (iii) having completed an approved barber apprenticeship; and
             37625          (e) meet the examination requirement established by rule.
             37626          (2) Each applicant for licensure as a barber instructor shall:
             37627          (a) submit an application in a form prescribed by the division;
             37628          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37629          (c) provide satisfactory documentation that the applicant is currently licensed as a
             37630      barber;
             37631          (d) be of good moral character;
             37632          (e) provide satisfactory documentation of completion of:
             37633          (i) an instructor training program conducted by a barber school consisting of a minimum

             37634      of 500 hours or the equivalent number of credit hours; or
             37635          (ii) a minimum of 2,000 hours of experience as a barber; and
             37636          (f) meet the examination requirement established by rule.
             37637          (3) Each applicant for licensure as a barber school shall:
             37638          (a) submit an application in a form prescribed by the division;
             37639          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ; and
             37640          (c) provide satisfactory documentation:
             37641          (i) of appropriate registration with the Division of Corporations and Commercial Code;
             37642          (ii) of business licensure from the city, town, or county in which the school is located;
             37643          (iii) that the applicant's physical facilities comply with the requirements established by
             37644      rule; and
             37645          (iv) that the applicant meets the standards for barber schools, including staff and
             37646      accreditation requirements, established by rule.
             37647          (4) Each applicant for licensure as a cosmetologist/barber shall:
             37648          (a) submit an application in a form prescribed by the division;
             37649          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37650          (c) be of good moral character;
             37651          (d) provide satisfactory documentation of:
             37652          (i) graduation from a licensed or recognized cosmetology/barber school whose
             37653      curriculum consists of a minimum of 2,000 hours of instruction, with full flexibility within the
             37654      2,000 hours, or the equivalent number of credit hours over a period of not less than 12 months;
             37655          (ii) (A) having graduated from a recognized cosmetology/barber school whose
             37656      curriculum consists of less than 2,000 hours of instruction, with full flexibility within the 2,000
             37657      hours, or the equivalent number of credit hours; and
             37658          (B) having practiced as a licensed cosmetologist/barber for a period of not less than
             37659      4,000 hours; or
             37660          (iii) having completed an approved cosmetology/barber apprenticeship; and
             37661          (e) meet the examination requirement established by rule.

             37662          (5) Each applicant for licensure as a cosmetologist/barber instructor shall:
             37663          (a) submit an application in a form prescribed by the division;
             37664          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37665          (c) provide satisfactory documentation that the applicant is currently licensed as a
             37666      cosmetologist/barber;
             37667          (d) be of good moral character;
             37668          (e) provide satisfactory documentation of completion of:
             37669          (i) an instructor training program conducted by a cosmetology/barber school consisting
             37670      of a minimum of 1,000 hours or the equivalent number of credit hours; or
             37671          (ii) a minimum of 4,000 hours of experience as a cosmetologist/barber; and
             37672          (f) meet the examination requirement established by rule.
             37673          (6) Each applicant for licensure as a cosmetologist/barber school shall:
             37674          (a) submit an application in a form prescribed by the division;
             37675          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ; and
             37676          (c) provide satisfactory documentation:
             37677          (i) of appropriate registration with the Division of Corporations and Commercial Code;
             37678          (ii) of business licensure from the city, town, or county in which the school is located;
             37679          (iii) that the applicant's physical facilities comply with the requirements established by
             37680      rule; and
             37681          (iv) that the applicant meets the standards for cosmetology schools, including staff and
             37682      accreditation requirements, established by rule.
             37683          (7) Each applicant for licensure as an electrologist shall:
             37684          (a) submit an application in a form prescribed by the division;
             37685          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37686          (c) be of good moral character;
             37687          (d) provide satisfactory documentation of having graduated from a licensed or
             37688      recognized electrology school after completing a curriculum of 600 hours of instruction or the
             37689      equivalent number of credit hours; and

             37690          (e) meet the examination requirement established by rule.
             37691          (8) Each applicant for licensure as an electrologist instructor shall:
             37692          (a) submit an application in a form prescribed by the division;
             37693          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37694          (c) provide satisfactory documentation that the applicant is currently licensed as an
             37695      electrologist;
             37696          (d) be of good moral character;
             37697          (e) provide satisfactory documentation of completion of:
             37698          (i) an instructor training program conducted by an electrology school consisting of a
             37699      minimum of 175 hours or the equivalent number of credit hours; or
             37700          (ii) a minimum of 1,000 hours of experience as an electrologist; and
             37701          (f) meet the examination requirement established by rule.
             37702          (9) Each applicant for licensure as an electrologist school shall:
             37703          (a) submit an application in a form prescribed by the division;
             37704          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ; and
             37705          (c) provide satisfactory documentation:
             37706          (i) of appropriate registration with the Division of Corporations and Commercial Code;
             37707          (ii) of business licensure from the city, town, or county in which the school is located;
             37708          (iii) that the applicant's facilities comply with the requirements established by rule; and
             37709          (iv) that the applicant meets the standards for electrologist schools, including staff,
             37710      curriculum, and accreditation requirements, established by rule.
             37711          (10) Each applicant for licensure as an esthetician shall:
             37712          (a) submit an application in a form prescribed by the division;
             37713          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37714          (c) be of good moral character; and
             37715          (d) provide satisfactory documentation of one of the following:
             37716          (i) (A) graduation from a licensed or recognized esthetic school whose curriculum
             37717      consists of not less than 15 weeks of esthetic instruction with a minimum of 600 hours or the

             37718      equivalent number of credit hours; and
             37719          (B) having met the examination requirement established by division rule;
             37720          (ii) (A) completion of an approved esthetician apprenticeship; and
             37721          (B) having met the examination requirement established by division rule; or
             37722          (iii) having met the examination requirement established by division rule prior to
             37723      December 31, 2001.
             37724          (11) Each applicant for licensure as a master esthetician shall:
             37725          (a) submit an application in a form prescribed by the division;
             37726          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37727          (c) be of good moral character; and
             37728          (d) provide satisfactory documentation of one of the following:
             37729          (i) (A) completion of 1,200 hours of training or the equivalent number of credit hours at
             37730      a licensed or recognized esthetics school;
             37731          (B) having met the examination requirement established by division rule; and
             37732          (C) for practice of lymphatic massage, provide satisfactory documentation to show
             37733      completion of 200 hours of training or equivalent number of credit hours in lymphatic massage;
             37734          (ii) (A) completion of an approved master esthetician apprenticeship; and
             37735          (B) having met the examination requirement established by division rule; or
             37736          (iii) having met the examination requirement established by division rule prior to
             37737      December 31, 2001.
             37738          (12) Each applicant for licensure as an esthetician instructor shall:
             37739          (a) submit an application in a form prescribed by the division;
             37740          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37741          (c) provide satisfactory documentation that the applicant is currently licensed as a
             37742      master esthetician;
             37743          (d) be of good moral character;
             37744          (e) provide satisfactory documentation of completion of:
             37745          (i) an instructor training program conducted by a licensed or recognized esthetics

             37746      school consisting of a minimum of 300 hours or the equivalent number of credit hours; or
             37747          (ii) a minimum of 1,000 hours of experience in esthetics; and
             37748          (f) meet the examination requirement established by rule.
             37749          (13) Each applicant for licensure as an esthetics school shall:
             37750          (a) submit an application in a form prescribed by the division;
             37751          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ; and
             37752          (c) provide satisfactory documentation:
             37753          (i) of appropriate registration with the Division of Corporations and Commercial Code;
             37754          (ii) of business licensure from the city, town, or county in which the school is located;
             37755          (iii) that the applicant's physical facilities comply with the requirements established by
             37756      rule; and
             37757          (iv) that the applicant meets the standards for esthetics schools, including staff,
             37758      curriculum, and accreditation requirements, established by division rule made in collaboration
             37759      with the board.
             37760          (14) Each applicant for licensure as a nail technician shall:
             37761          (a) submit an application in a form prescribed by the division;
             37762          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37763          (c) be of good moral character; and
             37764          (d) provide satisfactory documentation of one of the following:
             37765          (i) (A) graduation from a licensed or recognized nail technology school whose
             37766      curriculum consists of not less than 300 hours or the equivalent number of credit hours of not
             37767      more than eight hours a day and six days a week during the program; and
             37768          (B) having met the examination requirement established by division rule;
             37769          (ii) (A) having completed an approved nail technician apprenticeship; and
             37770          (B) having met the examination requirement established by division rule; or
             37771          (iii) having met the examination requirement established by division rule prior to
             37772      December 31, 2001.
             37773          (15) Each applicant for licensure as a nail technician instructor shall:

             37774          (a) submit an application in a form prescribed by the division;
             37775          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37776          (c) provide satisfactory documentation that the applicant is currently licensed as a nail
             37777      technician;
             37778          (d) be of good moral character;
             37779          (e) provide satisfactory documentation of completion of:
             37780          (i) an instructor training program conducted by a licensed or recognized nail technology
             37781      school consisting of a minimum of 150 hours or the equivalent number of credit hours; or
             37782          (ii) a minimum of 600 hours of experience in nail technology; and
             37783          (f) meet the examination requirement established by rule.
             37784          (16) Each applicant for licensure as a nail technology school shall:
             37785          (a) submit an application in a form prescribed by the division;
             37786          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ; and
             37787          (c) provide satisfactory documentation:
             37788          (i) of appropriate registration with the Division of Corporations and Commercial Code;
             37789          (ii) of business licensure from the city, town, or county in which the school is located;
             37790          (iii) that the applicant's facilities comply with the requirements established by rule; and
             37791          (iv) that the applicant meets the standards for nail technology schools, including staff,
             37792      curriculum, and accreditation requirements, established by rule.
             37793          (17) Each applicant for licensure under this chapter whose education in the field for
             37794      which a license is sought was completed at a foreign school may satisfy the educational
             37795      requirement for licensure by demonstrating, to the satisfaction of the division, the educational
             37796      equivalency of the foreign school education with a licensed school under this chapter.
             37797          Section 843. Section 58-11a-503 is amended to read:
             37798           58-11a-503. Penalties.
             37799          (1) Unless Subsection (2) applies, an individual who commits an act of unlawful
             37800      conduct under Section 58-11a-502 or who fails to comply with a citation issued under this
             37801      section after it is final is guilty of a class A misdemeanor.

             37802          (2) Sexual conduct that violates Section 58-11a-502 and Title 76, Utah Criminal Code,
             37803      shall be subject to the applicable penalties in Title 76.
             37804          (3) Grounds for immediate suspension of a licensee's license by the division include the
             37805      issuance of a citation for violation of Subsection 58-11a-502 (1), (2), or (4).
             37806          (4) (a) If upon inspection or investigation, the division concludes that a person has
             37807      violated the provisions of Subsection 58-11a-502 (1), (2), or (4), or a rule or order issued with
             37808      respect to Subsection 58-11a-502 (1), (2), or (4), and that disciplinary action is appropriate, the
             37809      director or the director's designee from within the division shall promptly issue a citation to the
             37810      person according to this chapter and any pertinent rules, attempt to negotiate a stipulated
             37811      settlement, or notify the person to appear before an adjudicative proceeding conducted under
             37812      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             37813          (i) A person who is in violation of Subsection 58-11a-502 (1), (2), or (4), as evidenced
             37814      by an uncontested citation, a stipulated settlement, or by a finding of violation in an adjudicative
             37815      proceeding, may be assessed a fine pursuant to this Subsection (4) and may, in addition to or in
             37816      lieu of, be ordered to cease and desist from violating Subsection 58-11a-502 (1), (2), or (4).
             37817          (ii) Except for a cease and desist order, the licensure sanctions cited in Section
             37818      58-11a-401 may not be assessed through a citation.
             37819          (b) (i) Each citation shall be in writing and describe with particularity the nature of the
             37820      violation, including a reference to the provision of the chapter, rule, or order alleged to have
             37821      been violated.
             37822          (ii) The citation shall clearly state that the recipient must notify the division in writing
             37823      within 20 calendar days of service of the citation if the recipient wishes to contest the citation at
             37824      a hearing conducted under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             37825      Procedures Act.
             37826          (iii) The citation shall clearly explain the consequences of failure to timely contest the
             37827      citation or to make payment of a fine assessed by the citation within the time specified in the
             37828      citation.
             37829          (c) Each citation issued under this section, or a copy of each citation, may be served

             37830      upon a person upon whom a summons may be served in accordance with the Utah Rules of
             37831      Civil Procedure and may be made personally or upon the person's agent by a division
             37832      investigator or by a person specially designated by the director or by mail.
             37833          (d) (i) If within 20 calendar days from the service of a citation, the person to whom the
             37834      citation was issued fails to request a hearing to contest the citation, the citation becomes the
             37835      final order of the division and is not subject to further agency review.
             37836          (ii) The period to contest a citation may be extended by the division for cause.
             37837          (e) The division may refuse to issue or renew, suspend, revoke, or place on probation
             37838      the license of a licensee who fails to comply with a citation after it becomes final.
             37839          (f) The failure of an applicant for licensure to comply with a citation after it becomes
             37840      final is a ground for denial of license.
             37841          (g) No citation may be issued under this section after the expiration of six months
             37842      following the occurrence of a violation.
             37843          (h) Fines shall be assessed by the director or the director's designee according to the
             37844      following:
             37845          (i) for a first offense under Subsection (4)(a), a fine of up to $1,000;
             37846          (ii) for a second offense under Subsection (4)(a), a fine of up to $2,000; and
             37847          (iii) for any subsequent offense under Subsection (4)(a), a fine of up to $2,000 for each
             37848      day of continued offense.
             37849          (i) (i) For purposes of issuing a final order under this section and assessing a fine under
             37850      Subsection (4)(h), an offense constitutes a second or subsequent offense if:
             37851          (A) the division previously issued a final order determining that a person committed a
             37852      first or second offense in violation of Subsection 58-11a-502 (1), (2), or (4); or
             37853          (B) (I) the division initiated an action for a first or second offense;
             37854          (II) no final order has been issued by the division in the action initiated under
             37855      Subsection (4)(i)(i)(B)(I);
             37856          (III) the division determines during an investigation that occurred after the initiation of
             37857      the action under Subsection (4)(i)(i)(B)(I) that the person committed a second or subsequent

             37858      violation of Subsection 58-11a-502 (1), (2), or (4); and
             37859          (IV) after determining that the person committed a second or subsequent offense under
             37860      Subsection (4)(i)(i)(B)(III), the division issues a final order on the action initiated under
             37861      Subsection (4)(i)(i)(B)(I).
             37862          (ii) In issuing a final order for a second or subsequent offense under Subsection
             37863      (4)(i)(i), the division shall comply with the requirements of this section.
             37864          (5) (a) A penalty imposed by the director under Subsection (4)(h) shall be deposited
             37865      into the Barber, Cosmetologist/Barber, Esthetician, Electrologist, and Nail Technician
             37866      Education and Enforcement Fund.
             37867          (b) A penalty which is not paid may be collected by the director by either referring the
             37868      matter to a collection agency or bringing an action in the district court of the county in which
             37869      the person against whom the penalty is imposed resides or in the county where the office of the
             37870      director is located.
             37871          (c) A county attorney or the attorney general of the state is to provide legal assistance
             37872      and advice to the director in an action to collect the penalty.
             37873          (d) A court shall award reasonable attorney fees and costs in an action brought to
             37874      enforce the provisions of this section.
             37875          Section 844. Section 58-13-5 is amended to read:
             37876           58-13-5. Information relating to adequacy and quality of medical care --
             37877      Immunity from liability.
             37878          (1) As used in this section, "health care provider" has the same meaning as defined in
             37879      Section 78-14-3 .
             37880          (2) (a) The division, and the boards within the division that act regarding the health care
             37881      providers defined in this section, shall adopt rules to establish procedures to obtain information
             37882      concerning the quality and adequacy of health care rendered to patients by those health care
             37883      providers.
             37884          (b) It is the duty of an individual licensed under Title 58, Occupations and Professions,
             37885      as a health care provider to furnish information known to him with respect to health care

             37886      rendered to patients by any health care provider licensed under Title 58, Occupations and
             37887      Professions, as the division or a board may request during the course of the performance of its
             37888      duties.
             37889          (3) A health care facility as defined in Section 26-21-2 which employs, grants privileges
             37890      to, or otherwise permits a licensed health care provider to engage in licensed practice within the
             37891      health care facility, and any professional society of licensed health care providers, shall report
             37892      any of the following events in writing to the division within sixty days after the event occurs
             37893      regarding the licensed health care provider:
             37894          (a) terminating employment of an employee for cause related to the employee's practice
             37895      as a licensed health care provider;
             37896          (b) terminating or restricting privileges for cause to engage in any act or practice related
             37897      to practice as a licensed health care provider;
             37898          (c) terminating, suspending, or restricting membership or privileges associated with
             37899      membership in a professional association for acts of unprofessional, unlawful, incompetent, or
             37900      negligent conduct related to practice as a licensed health care provider;
             37901          (d) subjecting a licensed health care provider to disciplinary action for a period of more
             37902      than 30 days;
             37903          (e) a finding that a licensed health care provider has violated professional standards or
             37904      ethics;
             37905          (f) a finding of incompetence in practice as a licensed health care provider;
             37906          (g) a finding of acts of moral turpitude by a licensed health care provider; or
             37907          (h) a finding that a licensed health care provider is engaged in abuse of alcohol or drugs.
             37908          (4) This section does not prohibit any action by a health care facility, or professional
             37909      society comprised primarily of licensed health care providers to suspend, restrict, or revoke the
             37910      employment, privileges, or membership of a health care provider.
             37911          (5) The data and information obtained in accordance with this section is classified as a
             37912      "protected" record under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             37913      Access and Management Act.

             37914          (6) (a) Any person or organization furnishing information in accordance with this
             37915      section in response to the request of the division or a board, or voluntarily, is immune from
             37916      liability with respect to information provided in good faith and without malice, which good faith
             37917      and lack of malice is presumed to exist absent clear and convincing evidence to the contrary.
             37918          (b) The members of the board are immune from liability for any decisions made or
             37919      actions taken in response to information acquired by the board if those decisions or actions are
             37920      made in good faith and without malice, which good faith and lack of malice is presumed to exist
             37921      absent clear and convincing evidence to the contrary.
             37922          (7) An individual who is a member of a hospital administration, board, committee,
             37923      department, medical staff, or professional organization of health care providers is, and any
             37924      hospital, other health care entity, or professional organization conducting or sponsoring the
             37925      review, immune from liability arising from participation in a review of a health care provider's
             37926      professional ethics, medical competence, moral turpitude, or substance abuse.
             37927          (8) This section does not exempt a person licensed under Title 58, Occupations and
             37928      Professions, from complying with any reporting requirements established under state or federal
             37929      law.
             37930          Section 845. Section 58-15-4 is amended to read:
             37931           58-15-4. Licensure requirements.
             37932          (1) An applicant for a license under this chapter shall submit a written application to the
             37933      division, verified under oath, that the applicant is of good moral character as it relates to the
             37934      functions and responsibilities of the practice of administration of a health facility.
             37935          (2) After July 1, 1985, all new applicants are required to have, in addition to Subsection
             37936      (1), the education or experience requirements as established by rule and as approved by the
             37937      division.
             37938          (3) The applicant shall pay a fee to the Department of Commerce determined by it
             37939      pursuant to Section [ 63-38-3.2 ] 63J-1-303 for admission to the examination, for an initial
             37940      license, and for a renewal license.
             37941          (4) The applicant shall pass a written examination in subjects determined by the board.

             37942      Upon passing the examination and payment of the license fee, the board shall recommend
             37943      issuance to the applicant of a license to practice as a health facility administrator.
             37944          (5) A temporary license may be issued without examination to a person who meets the
             37945      requirements established by statute and by rule for an administrator. The temporary license may
             37946      be issued only to fill a position of administrator that unexpectedly becomes vacant and may be
             37947      issued for only a single period not to exceed six months.
             37948          (6) A license may be granted to an applicant who is a licensed nursing home
             37949      administrator in another state if the standards for licensure in the other state are equivalent to
             37950      those criteria set forth in Subsections (1) and (2), and if the applicant is otherwise qualified.
             37951          Section 846. Section 58-16a-302 is amended to read:
             37952           58-16a-302. Qualifications for licensure.
             37953          (1) Each applicant for licensure as an optometrist shall:
             37954          (a) submit an application in a form prescribed by the division;
             37955          (b) pay a fee as determined by the division under Section [ 63-38-3.2 ] 63J-1-303 ;
             37956          (c) be of good moral character;
             37957          (d) (i) be a doctoral graduate of a recognized school of optometry accredited by:
             37958          (A) a regional accrediting body recognized by the Council on Post-Secondary
             37959      Education; and
             37960          (B) the American Optometric Association's Council on Optometric Education; or
             37961          (ii) be a graduate of a school of optometry located outside the United States that meets
             37962      the criteria that would qualify the school for accreditation under Subsection (1)(d)(i), as
             37963      demonstrated by the applicant for licensure;
             37964          (e) if the applicant graduated from a recognized school of optometry prior to July 1,
             37965      1996, have successfully completed a course of study satisfactory to the division, in consultation
             37966      with the board, in general and ocular pharmacology and emergency medical care;
             37967          (f) have passed examinations approved by the division in consultation with the board
             37968      that include:
             37969          (i) a standardized national optometry examination;

             37970          (ii) a standardized clinical examination;
             37971          (iii) a standardized national therapeutics examination; and
             37972          (iv) the Utah Optometry Law Examination; and
             37973          (g) meet with the board and representatives of the division, if requested by either party,
             37974      for the purpose of evaluating the applicant's qualifications for licensure.
             37975          (2) An applicant for licensure as an optometrist qualifying under the endorsement
             37976      provision of Section 58-1-302 shall:
             37977          (a) be currently licensed in good standing in any state of the United States; and
             37978          (b) have been actively engaged in the legal practice of optometry for not less than 3,200
             37979      hours in the immediately preceding two years, in a manner that is consistent with the legal
             37980      practice of optometry in this state.
             37981          Section 847. Section 58-17b-303 is amended to read:
             37982           58-17b-303. Qualifications for licensure as a pharmacist.
             37983          (1) Each applicant for licensure as a pharmacist shall:
             37984          (a) submit an application in a form prescribed by the division;
             37985          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             37986          (c) produce satisfactory evidence of good moral character as it relates to the applicant's
             37987      ability to practice pharmacy;
             37988          (d) complete a criminal background check and be free from criminal convictions as
             37989      required by Section 58-17b-307 , or as described in Section 58-1-501 ;
             37990          (e) have no physical or mental condition of a nature which prevents the applicant from
             37991      engaging in the practice of pharmacy with reasonable skill, competency, and safety to the public;
             37992          (f) have graduated and received a professional entry degree from a school or college of
             37993      pharmacy which is accredited by the Accreditation Council on Pharmacy Education;
             37994          (g) have completed an internship meeting standards established by division rule made in
             37995      collaboration with the board; and
             37996          (h) have successfully passed examinations required by division rule made in
             37997      collaboration with the board.

             37998          (2) Each applicant for licensure as a pharmacist whose pharmacy education was
             37999      completed at a foreign pharmacy school shall, in addition to the requirements under Subsections
             38000      (1)(a) through (e), (g), and (h), obtain a certification of equivalency from a credentialing agency
             38001      required by division rule made in collaboration with the board.
             38002          (3) Each applicant for a license by endorsement as a pharmacist under this section shall:
             38003          (a) submit a written application in the form prescribed by the division;
             38004          (b) pay the fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38005          (c) be of good moral character as required of applicants for licensure as pharmacists
             38006      under Subsection (1);
             38007          (d) complete a criminal background check and be free from criminal convictions as
             38008      required by Section 58-17b-307 , or as otherwise described in Section 58-1-501 ;
             38009          (e) have no physical or mental condition of a nature which prevents the applicant from
             38010      engaging in the practice of pharmacy with reasonable skill, competency, and safety to the public;
             38011          (f) have lawfully practiced as a licensed pharmacist a minimum of 2,000 hours in the
             38012      four years immediately preceding the date of application;
             38013          (g) produce satisfactory evidence of completing the professional education required
             38014      under Subsection (1);
             38015          (h) be currently licensed in good standing as a pharmacist in another state, territory, or
             38016      possession of the United States;
             38017          (i) produce satisfactory evidence that the examination requirements are or were at the
             38018      time the license was issued, equal to those of this state; and
             38019          (j) pass the jurisprudence examination prescribed by division rule made in collaboration
             38020      with the board.
             38021          Section 848. Section 58-17b-304 is amended to read:
             38022           58-17b-304. Qualifications for licensure of pharmacy intern.
             38023          Each applicant for licensure as a pharmacy intern shall:
             38024          (1) submit an application in a form prescribed by the division;
             38025          (2) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;

             38026          (3) produce satisfactory evidence of good moral character as it relates to the applicant's
             38027      ability to practice pharmacy;
             38028          (4) complete a criminal background check and be free from criminal convictions as
             38029      required by Section 58-17b-307 , or as otherwise described in Section 58-1-501 ;
             38030          (5) have no physical or mental condition of a nature which prevents the applicant from
             38031      engaging in the practice of pharmacy with reasonable skill, competency, and safety to the public;
             38032          (6) meet the preliminary educational qualifications required by division rule made in
             38033      collaboration with the board; and
             38034          (7) meet one of the following educational criteria:
             38035          (a) be a current pharmacy student, a resident, or fellow in a program approved by
             38036      division rule made in collaboration with the board;
             38037          (b) have graduated and received a pharmacy degree from a school or college of
             38038      pharmacy which is accredited by the Accreditation Council on Pharmacy Education but not
             38039      completed the internship hours required by division rule for licensure as a pharmacist; or
             38040          (c) have graduated from a foreign pharmacy school and received certification of
             38041      equivalency from a credentialing agency approved by division rule made in collaboration with
             38042      the board.
             38043          Section 849. Section 58-17b-305 is amended to read:
             38044           58-17b-305. Qualifications for licensure of pharmacy technician.
             38045          (1) Each applicant for licensure as a pharmacy technician shall:
             38046          (a) submit an application in a form prescribed by the division;
             38047          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38048          (c) produce satisfactory evidence of good moral character as it relates to the applicant's
             38049      ability to practice pharmacy;
             38050          (d) complete a criminal background check and be free from criminal convictions as
             38051      required by Section 58-17b-307 , or as otherwise permitted by Section 58-1-501 ;
             38052          (e) have no physical or mental condition of a nature which prevents the applicant from
             38053      engaging in practice as a pharmacy technician with reasonable skill, competency, and safety to

             38054      the public;
             38055          (f) have completed a board approved program and curriculum of education and training,
             38056      meeting standards established by division rule made in collaboration with the board; and
             38057          (g) successfully complete the examinations requirement within the time periods
             38058      established by division rule made in collaboration with the board.
             38059          (2) A pharmacist whose license has been denied, revoked, suspended, or restricted for
             38060      disciplinary purposes shall not be eligible to be a licensed pharmacy technician while on
             38061      probation with the division.
             38062          Section 850. Section 58-17b-306 is amended to read:
             38063           58-17b-306. Qualifications for licensure as a pharmacy.
             38064          (1) Each applicant for licensure under this section, except for those applying for a class
             38065      D license, shall:
             38066          (a) submit a written application in the form prescribed by the division;
             38067          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38068          (c) satisfy the division that the applicant, and each owner, officer, or manager of the
             38069      applicant have not engaged in any act, practice, or omission, which when considered with the
             38070      duties and responsibilities of a licensee under this section indicates there is cause to believe that
             38071      issuing a license to the applicant is inconsistent with the interest of the public's health, safety, or
             38072      welfare;
             38073          (d) demonstrate the licensee's operations will be in accordance with all federal, state,
             38074      and local laws relating to the type of activity engaged in by the licensee, including regulations of
             38075      the Federal Drug Enforcement Administration and Food and Drug Administration;
             38076          (e) maintain operating standards established by division rule made in collaboration with
             38077      the board; and
             38078          (f) acknowledge the division's authority to inspect the licensee's business premises
             38079      pursuant to Section 58-17b-103 .
             38080          (2) Each applicant applying for a class D license shall:
             38081          (a) submit a written application in the form prescribed by the division;

             38082          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38083          (c) present to the division verification of licensure in the state where physically located
             38084      and verification that such license is in good standing;
             38085          (d) provide a statement of the scope of pharmacy services that will be provided and a
             38086      detailed description of the protocol as described by rule by which pharmacy care will be
             38087      provided, including any collaborative practice arrangements with other health care practitioners;
             38088          (e) sign an affidavit attesting that any healthcare practitioners employed by the applicant
             38089      and physically located in Utah have the appropriate license issued by the division and in good
             38090      standing; and
             38091          (f) sign an affidavit attesting that the applicant will abide by the pharmacy laws and
             38092      regulations of the jurisdiction in which the pharmacy is located.
             38093          (3) Each license issued under this section shall be issued for a single, specific address,
             38094      and is not transferable or assignable.
             38095          Section 851. Section 58-17b-307 is amended to read:
             38096           58-17b-307. Qualification for licensure -- Criminal background checks.
             38097          (1) An applicant for licensure under this chapter shall submit fingerprint cards in a form
             38098      acceptable to the division at the time the license application is filed and shall consent to a
             38099      fingerprint background check by the Utah Bureau of Criminal Identification and the Federal
             38100      Bureau of Investigation regarding the application.
             38101          (2) The division shall request the Department of Public Safety to complete a Federal
             38102      Bureau of Investigation criminal background check for each applicant through the National
             38103      Criminal History System (NCIC) or any successor system.
             38104          (3) If convicted of one or more felonies, an applicant must receive an absolute
             38105      discharge from the sentences for all felony convictions five or more years prior to the date of
             38106      filing an application for licensure under this chapter.
             38107          (4) For purposes of conducting the criminal background check required in Subsection
             38108      (1), the division shall have direct access to criminal background information maintained
             38109      pursuant to Title 53, Chapter 10, Part 2, Bureau of Criminal Identification.

             38110          (5) Any new pharmacist, pharmacy intern, or pharmacy technician license issued under
             38111      this section shall be conditional, pending completion of the criminal background check.
             38112      Notwithstanding [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act,
             38113      if the criminal background check discloses the applicant has failed to accurately disclose a
             38114      criminal history, the license shall be immediately and automatically revoked upon notice to the
             38115      licensee.
             38116          (6) Any person whose conditional license has been revoked under Subsection (5) shall
             38117      be entitled to a postrevocation hearing to challenge the revocation. The hearing shall be
             38118      conducted in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             38119      Procedures Act.
             38120          Section 852. Section 58-17b-504 is amended to read:
             38121           58-17b-504. Penalty for unlawful or unprofessional conduct -- Fines -- Citations.
             38122          (1) Any person who violates any of the unlawful conduct provisions of Subsection
             38123      58-1-501 (1)(a)(i) and Subsections 58-17b-501 (7) and (11) is guilty of a third degree felony.
             38124          (2) Any person who violates any of the unlawful conduct provisions of Subsection
             38125      58-1-501 (1)(a)(ii), Subsections 58-1-501 (1)(b) through (e), and Section 58-17b-501 , except
             38126      Subsections 58-17b-501 (7) and (11), is guilty of a class A misdemeanor.
             38127          (3) (a) Subject to Subsection (5) and in accordance with Section 58-17b-401 , for acts
             38128      of unprofessional or unlawful conduct, the division may:
             38129          (i) assess administrative penalties; and
             38130          (ii) take any other appropriate administrative action.
             38131          (b) An administrative penalty imposed pursuant to this section shall be deposited in the
             38132      General Fund as a dedicated credit to be used by the division for pharmacy licensee education
             38133      and enforcement as provided in Section 58-17b-505 .
             38134          (4) If a licensee has been convicted of violating Section 58-17b-501 prior to an
             38135      administrative finding of a violation of the same section, the licensee may not be assessed an
             38136      administrative fine under this chapter for the same offense for which the conviction was
             38137      obtained.

             38138          (5) (a) If upon inspection or investigation, the division concludes that a person has
             38139      violated the provisions of Section 58-17b-501 or 58-17b-502 , Chapter 37, Utah Controlled
             38140      Substances Act, Chapter 1, Division of Occupational and Professional Licensing Act, or any
             38141      rule or order issued with respect to these provisions, and that disciplinary action is appropriate,
             38142      the director or the director's designee from within the division shall promptly issue a citation to
             38143      the person according to this chapter and any pertinent rules, attempt to negotiate a stipulated
             38144      settlement, or notify the person to appear before an adjudicative proceeding conducted under
             38145      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             38146          (b) Any person who is in violation of the provisions of Section 58-17b-501 or
             38147      58-17b-502 , Chapter 37, Utah Controlled Substances Act, Chapter 1, Division of Occupational
             38148      and Professional Licensing Act, or any rule or order issued with respect to these provisions, as
             38149      evidenced by an uncontested citation, a stipulated settlement, or a finding of violation in an
             38150      adjudicative proceeding, may be assessed a fine pursuant to this Subsection (5) of up to $10,000
             38151      per single violation or up to $2,000 per day of ongoing violation, whichever is greater, in
             38152      accordance with a fine schedule established by rule, and may, in addition to or in lieu of, be
             38153      ordered to cease and desist from violating the provisions of Section 58-17b-501 or 58-17b-502 ,
             38154      Chapter 37, Utah Controlled Substances Act, Chapter 1, Division of Occupational and
             38155      Professional Licensing Act, or any rule or order issued with respect to these provisions.
             38156          (c) Except for an administrative fine and a cease and desist order, the licensure
             38157      sanctions cited in Section 58-17b-401 may not be assessed through a citation.
             38158          (d) Each citation shall be in writing and specifically describe with particularity the
             38159      nature of the violation, including a reference to the provision of the chapter, rule, or order
             38160      alleged to have been violated. The citation shall clearly state that the recipient must notify the
             38161      division in writing within 20 calendar days of service of the citation in order to contest the
             38162      citation at a hearing conducted under [Title 63, Chapter 46b] Title 63G, Chapter 4,
             38163      Administrative Procedures Act. The citation shall clearly explain the consequences of failure to
             38164      timely contest the citation or to make payment of any fines assessed by the citation within the
             38165      time specified in the citation.

             38166          (e) Each citation issued under this section, or a copy of each citation, may be served
             38167      upon any person upon whom a summons may be served:
             38168          (i) in accordance with the Utah Rules of Civil Procedure;
             38169          (ii) personally or upon the person's agent by a division investigator or by any person
             38170      specially designated by the director; or
             38171          (iii) by mail.
             38172          (f) If within 20 calendar days from the service of a citation, the person to whom the
             38173      citation was issued fails to request a hearing to contest the citation, the citation becomes the
             38174      final order of the division and is not subject to further agency review. The period to contest the
             38175      citation may be extended by the division for cause.
             38176          (g) The division may refuse to issue or renew, suspend, revoke, or place on probation
             38177      the license of a licensee who fails to comply with the citation after it becomes final.
             38178          (h) The failure of an applicant for licensure to comply with a citation after it becomes
             38179      final is a ground for denial of license.
             38180          (i) No citation may be issued under this section after the expiration of six months
             38181      following the occurrence of any violation.
             38182          Section 853. Section 58-17b-701 is amended to read:
             38183           58-17b-701. Mentally incompetent or incapacitated pharmacist -- Division action
             38184      and procedures.
             38185          (1) As used in this section:
             38186          (a) "Incapacitated person" has the same definition as in Section 75-1-201 .
             38187          (b) "Mentally ill" has the same definition as in Section 62A-15-602 .
             38188          (2) If a court of competent jurisdiction determines a pharmacist is an incapacitated
             38189      person, or that [he] the pharmacist is mentally ill and unable to safely engage in the practice of
             38190      pharmacy, the director shall immediately suspend the license of the pharmacist upon the entry of
             38191      the judgment of the court, without further proceedings under [Title 63, Chapter 46b] Title 63G,
             38192      Chapter 4, Administrative Procedures Act, regardless of whether an appeal from the court's
             38193      ruling is pending. The director shall promptly notify the pharmacist, in writing, of the

             38194      suspension.
             38195          (3) (a) If the division and a majority of the board find reasonable cause to believe a
             38196      pharmacist, who is not determined judicially to be an incapacitated person or to be mentally ill,
             38197      is incapable of practicing pharmacy with reasonable skill regarding the safety of patients,
             38198      because of illness, excessive use of drugs or alcohol, or as a result of any mental or physical
             38199      condition, the board shall recommend that the director file a petition with the division, and
             38200      cause the petition to be served upon the pharmacist with a notice of hearing on the sole issue of
             38201      the capacity of the pharmacist to competently and safely engage in the practice of pharmacy.
             38202          (b) The hearing shall be conducted under Section 58-1-109 and [Title 63, Chapter 46b]
             38203      Title 63G, Chapter 4, Administrative Procedures Act, except as provided in Subsection (4).
             38204          (4) (a) Every pharmacist who accepts the privilege of being licensed under this chapter
             38205      gives consent to:
             38206          (i) submitting at [his] the pharmacist's own expense to an immediate mental or physical
             38207      examination when directed in writing by the division, with the consent of a majority of the
             38208      board, to do so; and
             38209          (ii) the admissibility of the reports of the examining practitioner's testimony or
             38210      examination in any proceeding regarding the license of the pharmacist, and waives all objections
             38211      on the ground the reports constitute a privileged communication.
             38212          (b) The examination may be ordered by the division, with the consent of a majority of
             38213      the board, only upon a finding of reasonable cause to believe:
             38214          (i) the pharmacist is mentally ill or incapacitated or otherwise unable to practice
             38215      pharmacy with reasonable skill and safety; and
             38216          (ii) immediate action by the division and the board is necessary to prevent harm to the
             38217      pharmacist's patients or the general public.
             38218          (c) (i) Failure of a pharmacist to submit to the examination ordered under this section is
             38219      a ground for the division's immediate suspension of the pharmacist's license by written order of
             38220      the director.
             38221          (ii) The division may enter the order of suspension without further compliance with

             38222      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, unless the
             38223      division finds the failure to submit to the examination ordered under this section was due to
             38224      circumstances beyond the control of the pharmacist and was not related directly to the illness or
             38225      incapacity of the pharmacist.
             38226          (5) (a) A pharmacist whose license is suspended under Subsection (2) or (4) has the
             38227      right to a hearing to appeal the suspension within ten days after the license is suspended.
             38228          (b) The hearing held under this Subsection (5) shall be conducted in accordance with
             38229      Sections 58-1-108 and 58-1-109 for the sole purpose of determining if sufficient basis exists for
             38230      the continuance of the order of suspension in order to prevent harm to the pharmacist's patients
             38231      or the general public.
             38232          (6) A pharmacist whose license is revoked, suspended, or in any way restricted under
             38233      this section may request the division and the board to consider, at reasonable intervals, evidence
             38234      presented by the pharmacist, under procedures established by division rule, regarding any
             38235      change in the pharmacist's condition, to determine whether:
             38236          (a) [he] the pharmacist is or is not able to safely and competently engage in the practice
             38237      of pharmacy; and
             38238          (b) [he] the pharmacist is qualified to have [his] the pharmacist's licensure to practice
             38239      under this chapter restored completely or in part.
             38240          Section 854. Section 58-20a-302 is amended to read:
             38241           58-20a-302. Qualifications for licensure.
             38242          (1) Except as provided in Subsection (2), an applicant for licensure as an environmental
             38243      health scientist shall:
             38244          (a) submit an application in a form prescribed by the division;
             38245          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38246          (c) be of good moral character;
             38247          (d) hold a bachelor's degree from an accredited program in a university or college,
             38248      which degree includes completion of specific coursework as defined by rule;
             38249          (e) pass an examination as determined by division rule in collaboration with the board;

             38250      and
             38251          (f) pass the Utah Law and Rules Examination for Environmental Health Scientists
             38252      administered by the division.
             38253          (2) An applicant for licensure who is currently actively engaged in the practice of
             38254      environmental health science in Utah on July 1, 1995, and has been practicing in Utah for at
             38255      least three consecutive months immediately prior to July 1, 1995, shall:
             38256          (a) submit an application in a form prescribed by the division;
             38257          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38258          (c) be of good moral character;
             38259          (d) hold a bachelor's degree from an accredited program in a university or college,
             38260      which degree includes completion of specific coursework as defined by rule;
             38261          (e) pass the Utah Law and Rules Examination for Environmental Health Scientists
             38262      administered by the division; and
             38263          (f) submit an affidavit from the applicant's immediate supervisor in [his] the applicant's
             38264      employment, attesting to the applicant's competence to practice environmental health science.
             38265          (3) An applicant for licensure as an environmental health scientist-in-training shall:
             38266          (a) submit an application in a form prescribed by the division;
             38267          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38268          (c) be of good moral character;
             38269          (d) hold a bachelor's degree from an accredited program in a university or college,
             38270      which degree includes completion of specific coursework as defined by rule;
             38271          (e) pass the Utah Law and Rules Examination for Environmental Health Scientists
             38272      administered by the division; and
             38273          (f) present evidence acceptable to the division and the board that the applicant, when
             38274      licensed, will practice as an environmental health scientist-in-training only under the general
             38275      supervision of a supervising environmental health scientist licensed under this chapter.
             38276          Section 855. Section 58-22-103 is amended to read:
             38277           58-22-103. Education and enforcement fund.

             38278          (1) There is created a restricted special revenue fund known as the "Professional
             38279      Engineer, Professional Structural Engineer, and Professional Land Surveyor Education and
             38280      Enforcement Fund."
             38281          (2) The fund consists of monies from:
             38282          (a) a surcharge fee placed on initial, renewal, and reinstatement licensure fees under this
             38283      chapter in accordance with the following:
             38284          (i) the surcharge fee shall be established by the department in accordance with Section
             38285      [ 63-38-3.2 ] 63J-1-303 ; and
             38286          (ii) the surcharge fee shall not exceed 50% of the respective initial, renewal, or
             38287      reinstatement licensure fee; and
             38288          (b) administrative penalties collected pursuant to this chapter.
             38289          (3) The fund shall earn interest and all interest earned on fund monies shall be deposited
             38290      into the fund.
             38291          (4) The director may, with concurrence of the board, make distributions from the fund
             38292      for the following purposes:
             38293          (a) education and training of licensees under this chapter;
             38294          (b) education and training of the public or other interested persons in matters
             38295      concerning engineering, structural engineering, and land surveying laws and practices; and
             38296          (c) enforcement of this chapter by:
             38297          (i) investigating unprofessional or unlawful conduct; and
             38298          (ii) providing legal representation to the division when the division takes legal action
             38299      against a person engaging in unprofessional or unlawful conduct.
             38300          (5) If the balance in the fund exceeds $100,000 at the close of any fiscal year, the excess
             38301      shall be transferred to the General Fund.
             38302          (6) The division shall report annually to the appropriate appropriations subcommittee of
             38303      the Legislature concerning the fund.
             38304          Section 856. Section 58-22-302 is amended to read:
             38305           58-22-302. Qualifications for licensure.

             38306          (1) Each applicant for licensure as a professional engineer shall:
             38307          (a) submit an application in a form prescribed by the division;
             38308          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38309          (c) provide satisfactory evidence of good moral character;
             38310          (d) (i) have graduated and received a bachelors or masters degree from an engineering
             38311      program meeting criteria established by rule by the division in collaboration with the board; or
             38312          (ii) have completed the Transportation Engineering Technology and Fundamental
             38313      Engineering College Program prior to July 1, 1998, under the direction of the Utah Department
             38314      of Transportation and as certified by the Utah Department of Transportation;
             38315          (e) have successfully completed a program of qualifying experience established by rule
             38316      by the division in collaboration with the board;
             38317          (f) have successfully passed examinations established by rule by the division in
             38318      collaboration with the board; and
             38319          (g) meet with the board or representative of the division upon request for the purpose
             38320      of evaluating the applicant's qualification for licensure.
             38321          (2) Each applicant for licensure as a professional structural engineer shall:
             38322          (a) submit an application in a form prescribed by the division;
             38323          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38324          (c) provide satisfactory evidence of good moral character;
             38325          (d) have graduated and received an earned bachelors or masters degree from an
             38326      engineering program meeting criteria established by rule by the division in collaboration with the
             38327      board;
             38328          (e) have successfully completed three years of licensed professional engineering
             38329      experience established by rule by the division in collaboration with the board;
             38330          (f) have successfully passed examinations established by rule by the division in
             38331      collaboration with the board; and
             38332          (g) meet with the board or representative of the division upon request for the purpose
             38333      of evaluating the applicant's qualification for licensure.

             38334          (3) Each applicant for licensure as a professional land surveyor shall:
             38335          (a) submit an application in a form prescribed by the division;
             38336          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38337          (c) provide satisfactory evidence of good moral character;
             38338          (d) (i) have graduated and received an associates, bachelors, or masters degree from a
             38339      land surveying program, or an equivalent land surveying program, such as a program offered by
             38340      the Utah College of Applied Technology as approved by the State Board of Regents,
             38341      established by rule by the division in collaboration with the board, and have successfully
             38342      completed a program of qualifying experience in land surveying established by rule by the
             38343      division in collaboration with the board; or
             38344          (ii) have successfully completed a program of qualifying experience in land surveying
             38345      prior to January 1, 2007, in accordance with rules established by the division in collaboration
             38346      with the board;
             38347          (e) have successfully passed examinations established by rule by the division in
             38348      collaboration with the board; and
             38349          (f) meet with the board or representative of the division upon request for the purpose of
             38350      evaluating the applicant's qualification for licensure.
             38351          (4) Each applicant for licensure by endorsement shall:
             38352          (a) submit an application in a form prescribed by the division;
             38353          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38354          (c) provide satisfactory evidence of good moral character;
             38355          (d) submit satisfactory evidence of:
             38356          (i) current licensure in good standing in a jurisdiction recognized by rule by the division
             38357      in collaboration with the board;
             38358          (ii) having successfully passed any examination established by rule by the division in
             38359      collaboration with the board; and
             38360          (iii) full-time employment as a licensed professional engineer, professional structural
             38361      engineer, or professional land surveyor as a principal for at least five of the last seven years

             38362      immediately preceding the date of the application; and
             38363          (e) meet with the board or representative of the division upon request for the purpose
             38364      of evaluating the applicant's qualifications for license.
             38365          (5) The rules made to implement this section shall be in accordance with [Title 63,
             38366      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             38367          Section 857. Section 58-22-503 is amended to read:
             38368           58-22-503. Penalty for unlawful conduct.
             38369          (1) (a) If upon inspection or investigation, the division concludes that a person has
             38370      violated Subsections 58-1-501 (1)(a) through (d) or Section 58-22-501 or any rule or order
             38371      issued with respect to Section 58-22-501 , and that disciplinary action is appropriate, the
             38372      director or [his] the director's designee from within the division for each alternative
             38373      respectively, shall promptly issue a citation to the person according to this chapter and any
             38374      pertinent rules, attempt to negotiate a stipulated settlement, or notify the person to appear
             38375      before an adjudicative proceeding conducted under [Title 63, Chapter 46b] Title 63G, Chapter
             38376      4, Administrative Procedures Act.
             38377          (i) A person who violates Subsections 58-1-501 (1)(a) through (d) or Section 58-22-501
             38378      or any rule or order issued with respect to Section 58-22-501 , as evidenced by an uncontested
             38379      citation, a stipulated settlement, or by a finding of violation in an adjudicative proceeding, may
             38380      be assessed a fine pursuant to this Subsection (1)and may, in addition to or in lieu of, be ordered
             38381      to cease and desist from violating Subsections 58-1-501 (1)(a) through (d) or Section 58-22-501
             38382      or any rule or order issued with respect to this section.
             38383          (ii) Except for a cease and desist order, the licensure sanctions cited in Section
             38384      58-22-401 may not be assessed through a citation.
             38385          (b) A citation shall:
             38386          (i) be in writing;
             38387          (ii) describe with particularity the nature of the violation, including a reference to the
             38388      provision of the chapter, rule, or order alleged to have been violated;
             38389          (iii) clearly state that the recipient must notify the division in writing within 20 calendar

             38390      days of service of the citation if the recipient wishes to contest the citation at a hearing
             38391      conducted under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act;
             38392      and
             38393          (iv) clearly explain the consequences of failure to timely contest the citation or to make
             38394      payment of any fines assessed by the citation within the time specified in the citation.
             38395          (c) The division may issue a notice in lieu of a citation.
             38396          (d) Each citation issued under this section, or a copy of each citation, may be served
             38397      upon any person whom a summons may be served in accordance with the Utah Rules of Civil
             38398      Procedure and may be made personally or upon [his] the person's agent by a division
             38399      investigator or by any person specially designated by the director or by mail.
             38400          (e) If within 20 calendar days from the service of the citation, the person to whom the
             38401      citation was issued fails to request a hearing to contest the citation, the citation becomes the
             38402      final order of the division and is not subject to further agency review. The period to contest a
             38403      citation may be extended by the division for cause.
             38404          (f) The division may refuse to issue or renew, suspend, revoke, or place on probation
             38405      the license of a licensee who fails to comply with a citation after it becomes final.
             38406          (g) The failure of an applicant for licensure to comply with a citation after it becomes
             38407      final is a ground for denial of license.
             38408          (h) No citation may be issued under this section after the expiration of six months
             38409      following the occurrence of any violation.
             38410          (i) The director or [his] the director's designee shall assess fines according to the
             38411      following:
             38412          (i) for a first offense handled pursuant to Subsection (1)(a), a fine of up to $1,000;
             38413          (ii) for a second offense handled pursuant to Subsection (1)(a), a fine of up to $2,000;
             38414      and
             38415          (iii) for any subsequent offense handled pursuant to Subsection (1)(a), a fine of up to
             38416      $2,000 for each day of continued offense.
             38417          (2) An action initiated for a first or second offense which has not yet resulted in a final

             38418      order of the division shall not preclude initiation of any subsequent action for a second or
             38419      subsequent offense during the pendency of any preceding action. The final order on a
             38420      subsequent action shall be considered a second or subsequent offense, respectively, provided the
             38421      preceding action resulted in a first or second offense, respectively.
             38422          (3) Any penalty which is not paid may be collected by the director by either referring
             38423      the matter to a collection agency or bringing an action in the district court of the county in
             38424      which the person against whom the penalty is imposed resides or in the county where the office
             38425      of the director is located. Any county attorney or the attorney general of the state shall provide
             38426      legal assistance and advice to the director in any action to collect the penalty. In any action
             38427      brought to enforce the provisions of this section, reasonable attorney's fees and costs shall be
             38428      awarded to the division.
             38429          Section 858. Section 58-26a-102 is amended to read:
             38430           58-26a-102. Definitions.
             38431          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             38432          (1) "Accounting experience" means applying accounting and auditing skills and
             38433      principles that are taught as a part of the professional education qualifying a person for licensure
             38434      under this chapter and generally accepted by the profession, under the supervision of a licensed
             38435      certified public accountant.
             38436          (2) "Board" means the Utah Board of Accountancy created in Section 58-26a-201 .
             38437          (3) "Certified Public Accountant" or "CPA" means an individual currently licensed by
             38438      this state or any other state to practice public accountancy or who has been granted a certificate
             38439      as a certified public accountant under prior law or this chapter.
             38440          (4) "Certified Public Accountant firm" or "CPA firm" means a qualified business entity
             38441      holding a valid registration as a Certified Public Accountant firm under this chapter.
             38442          (5) "Client" means the person who retains a licensee for the performance of one or
             38443      more of the services included in the definition of the practice of public accountancy. "Client"
             38444      does not include a CPA's employer when the licensee works in a salaried or hourly rate position.
             38445          (6) "Compilation of financial statements" means the presentation in the form of financial

             38446      statements of information that is the representation of management or owners accompanied by a
             38447      report stating the compilation has been performed in accordance with standards established by
             38448      the American Institute of Certified Public Accountants.
             38449          (7) "Experience" means:
             38450          (a) accounting experience;
             38451          (b) professional experience; or
             38452          (c) qualifying experience.
             38453          (8) "Licensee" means the holder of a current valid license issued under this chapter.
             38454          (9) "Practice of public accounting" means the offer to perform or the performance by a
             38455      person holding himself out as a certified public accountant of one or more kinds of services
             38456      involving the use of auditing or accounting skills including the issuance of reports or opinions
             38457      on financial statements, performing attestation engagements, the performance of one or more
             38458      kinds of advisory or consulting services, or the preparation of tax returns or the furnishing of
             38459      advice on tax matters for a client.
             38460          (10) "Peer review" means a study, appraisal, or review of one or more aspects of the
             38461      professional work of a person or qualified business entity in the practice of public accountancy,
             38462      by a licensee or any other qualified person in accordance with rules adopted pursuant to this
             38463      chapter and who is not affiliated with the person or qualified business entity being reviewed.
             38464          (11) "Professional experience" means experience lawfully obtained while licensed as a
             38465      certified public accountant in another jurisdiction, recognized by rule, in the practice of public
             38466      accountancy performed for a client, which includes expression of assurance or opinion, for at
             38467      least 300 hours collectively in the following areas:
             38468          (a) applying Generally Accepted Auditing Standards (GAAS) to the usual and
             38469      customary financial transactions recorded in the accounting records;
             38470          (b) preparing audit working papers in accordance with GAAS covering the examination
             38471      of the accounts usually found in accounting records;
             38472          (c) planning the audit scope in accordance with GAAS, including the audit program to
             38473      be followed;

             38474          (d) preparing written explanations and comments on the findings of the examination and
             38475      on the content of the accounting records; and
             38476          (e) preparing and analyzing financial statements in accordance with GAAS.
             38477          (12) "Qualified business entity" means a sole proprietorship, corporation, limited
             38478      liability company, or partnership engaged in the practice of public accountancy.
             38479          (13) "Qualified continuing professional education" means a formal program of
             38480      education that contributes directly to the professional competence of a certified public
             38481      accountant.
             38482          (14) "Qualifying examinations" means:
             38483          (a) the AICPA Uniform CPA Examination;
             38484          (b) the AICPA Examination of Professional Ethics for CPAs;
             38485          (c) the Utah Laws and Rules Examination; and
             38486          (d) any other examination approved by the board and adopted by the division by rule in
             38487      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             38488      Act.
             38489          (15) "Qualifying experience" means experience in the practice of public accountancy
             38490      under the direction and supervision of a licensed certified public accountant performed for a
             38491      client, which includes expression of assurance or opinion, for at least 300 hours collectively in
             38492      the following areas:
             38493          (a) applying Generally Accepted Auditing Standards (GAAS) to the usual and
             38494      customary financial transactions recorded in the accounting records;
             38495          (b) preparing audit working papers in accordance with GAAS covering the examination
             38496      of the accounts usually found in accounting records;
             38497          (c) planning the audit scope in accordance with GAAS, including the audit program to
             38498      be followed;
             38499          (d) preparing written explanations and comments on the findings of the examination and
             38500      on the content of the accounting records; and
             38501          (e) preparing and analyzing financial statements in accordance with GAAS.

             38502          (16) (a) "Report" means:
             38503          (i) when used with reference to financial statements, an opinion, report or other form of
             38504      language that:
             38505          (A) states or implies assurance as to the reliability of any financial statements; or
             38506          (B) implies that the person or firm issuing it has special knowledge or competence in
             38507      accounting or auditing and specifically includes compilations and reviews; such an implication of
             38508      special knowledge or competence may arise from use by the issuer of the report of names or
             38509      titles indicating that the person or firm is a public accountant or auditor, or from the language of
             38510      the report itself; or
             38511          (ii) any disclaimer of opinion when it is conventionally understood to imply any positive
             38512      assurance as to the reliability of the financial statements referred to or language suggesting
             38513      special competence on the part of the person or firm issuing such language; and it includes any
             38514      other form of language that is conventionally understood to imply such assurance or such
             38515      special knowledge or competence.
             38516          (b) "Report" does not include a financial statement prepared by an unlicensed person if:
             38517          (i) that financial statement has a cover page which includes essentially the following
             38518      language: "I (we) have prepared the accompanying financial statements of (name of entity) as of
             38519      (time period) for the (period) then ended. This presentation is limited to preparing, in the form
             38520      of financial statements, information that is the representation of management (owners). I (we)
             38521      have not audited or reviewed the accompanying financial statements and accordingly do not
             38522      express an opinion or any other form of assurance on them."; and
             38523          (ii) the cover page and any related footnotes do not use the terms "compilation,"
             38524      "review," "audit," "generally accepted auditing standards," "generally accepted accounting
             38525      principles," or other similar terms.
             38526          (17) "Review of financial statements" means performing inquiry and analytical
             38527      procedures which provide a reasonable basis for expressing limited assurance that there are no
             38528      material modifications that should be made to the statements in order for them to be in
             38529      conformity with generally accepted accounting principles or, if applicable, with another

             38530      comprehensive basis of accounting; and, the issuance of a report on the financial statements
             38531      stating that a review was performed in accordance with the standards established by the
             38532      American Institute of Certified Public Accountants.
             38533          (18) (a) "Substantial equivalency" means that the education, examination, and
             38534      experience required by another jurisdiction are comparable to or exceed the education,
             38535      examination, and experience requirements of this chapter, or that an individual's education,
             38536      examination, and experience qualifications are comparable to or exceed the education,
             38537      examination, and experience requirements of this chapter.
             38538          (b) "Substantial equivalency" is determined by the board in accordance with rules made
             38539      by the division in collaboration with the board.
             38540          (19) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-26a-501 .
             38541          (20) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-26a-502 and
             38542      as may be further defined by rule.
             38543          (21) "Year of experience" means 2,000 hours of cumulative experience.
             38544          Section 859. Section 58-26a-302 is amended to read:
             38545           58-26a-302. Qualifications for licensure and registration -- Licensure by
             38546      endorsement -- Transitional provisions.
             38547          (1) Each applicant for licensure under this chapter as a certified public accountant shall:
             38548          (a) submit an application in a form prescribed by the division;
             38549          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38550          (c) show evidence of good moral character;
             38551          (d) submit a certified transcript of credits from an accredited institution acceptable to
             38552      the board showing:
             38553          (i) successful completion of a total of 150 semester hours or 225 quarter hours of
             38554      collegiate level education with a concentration in accounting, auditing, and business;
             38555          (ii) a baccalaureate degree or its equivalent at a college or university approved by the
             38556      board; and
             38557          (iii) compliance with any other education requirements established by rule by the

             38558      division in collaboration with the board in accordance with [Title 63, Chapter 46a] Title 63G,
             38559      Chapter 3, Utah Administrative Rulemaking Act;
             38560          (e) submit evidence of one year of accounting experience in a form prescribed by the
             38561      division;
             38562          (f) submit evidence of having successfully completed the qualifying examinations in
             38563      accordance with Section 58-26a-306 ; and
             38564          (g) submit to an interview by the board, if requested, for the purpose of examining the
             38565      applicant's competence and qualifications for licensure.
             38566          (2) The division may issue a license under this chapter to a person who holds a license
             38567      as a certified public accountant issued by any other jurisdiction of the United States if the
             38568      applicant for licensure by endorsement:
             38569          (a) submits an application in a form prescribed by the division;
             38570          (b) pays a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38571          (c) shows evidence of good moral character;
             38572          (d) submits to an interview by the board, if requested, for the purpose of examining the
             38573      applicant's competence and qualifications for licensure; and
             38574          (e) (i) (A) shows evidence of having passed the qualifying examinations; and
             38575          (B) (I) meets the requirements for licensure which were applicable in this state at the
             38576      time of the issuance of the applicant's license by the jurisdiction from which the original
             38577      licensure by satisfactorily passing the AICPA Uniform CPA Examination was issued; or
             38578          (II) had five years of professional experience after passing the AICPA Uniform CPA
             38579      Examination upon which the original license was based, within the ten years immediately
             38580      preceding the application for licensure by endorsement; or
             38581          (ii) shows evidence that the applicant's education, examination record, and experience
             38582      are substantially equivalent to the requirements of Subsection (1), as provided by rule.
             38583          (3) (a) Each applicant for registration as a Certified Public Accountant firm shall:
             38584          (i) submit an application in a form prescribed by the division;
             38585          (ii) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;

             38586          (iii) have a CPA license under this chapter held by:
             38587          (A) its proprietor, in the case of a sole proprietorship;
             38588          (B) one of its general partners, managers, or members, in the case of a partnership or
             38589      limited liability company;
             38590          (C) one of its officers or shareholders, in the case of a corporation; or
             38591          (D) one of its owners, in the case of any other type of qualified business entity;
             38592          (iv) designate a CPA licensee who is responsible for on site supervision of operations of
             38593      the CPA firm; and
             38594          (v) meet any other requirements established by rule by the division in collaboration with
             38595      the board in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             38596      Rulemaking Act;
             38597          (b) Each separate location of a qualified business entity within the state seeking
             38598      registration as a Certified Public Accountant firm shall register separately.
             38599          (c) A Certified Public Accountant firm may include owners who are not licensed under
             38600      this chapter provided that:
             38601          (i) more than 50% of the ownership of the Certified Public Accountant firm, including
             38602      financial interest and voting rights in the firm, is held by individuals who are Certified Public
             38603      Accountants, licensed under this chapter or another jurisdiction of the United States; and
             38604          (ii) all nonlicensed owners are active individual participants in the CPA firm.
             38605          (4) An individual shall have until July 1, 2004, to obtain three years of qualifying
             38606      experience for licensure without being required to complete the education requirement if that
             38607      individual:
             38608          (a) was approved to take the qualifying examinations prior to July 1, 1994, under prior
             38609      law without completion of the education requirement; and
             38610          (b) (i) passed the AICPA Uniform CPA Examination prior to July 1, 1994; or
             38611          (ii) received conditional credits on the AICPA Uniform CPA Examination prior to July
             38612      1, 1994, and subsequently passed all parts of the AICPA Uniform CPA Examination within six
             38613      immediately successive examination administrations.

             38614          Section 860. Section 58-26a-306 is amended to read:
             38615           58-26a-306. Examination requirements.
             38616          (1) Before taking the qualifying examinations, an applicant shall:
             38617          (a) submit an application in a form approved by the division;
             38618          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38619          (c) demonstrate completion of the education requirement in Subsection
             38620      58-26a-302 (1)(d); and
             38621          (d) be approved by the board to take the qualifying examinations.
             38622          (2) A person must sit for and meet the conditioning requirements of the AICPA
             38623      Uniform CPA Examination as established by the AICPA.
             38624          Section 861. Section 58-26a-307 is amended to read:
             38625           58-26a-307. CPA emeritus status -- Renewal of license.
             38626          (1) A person currently licensed as a certified public accountant may, on any renewal
             38627      date of that license, apply for and obtain a transfer of that license to a status of CPA emeritus
             38628      registration if:
             38629          (a) (i) the licensee is at least 60 years of age as of the date of renewal;
             38630          (ii) the licensee is disabled; or
             38631          (iii) the board finds other good cause for believing that the licensee will not return to
             38632      the practice of public accountancy;
             38633          (b) the licensee makes an application for transfer of status and registration and pays a
             38634      registration fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38635          (c) the licensee, on application for transfer, certifies that [he] the licensee will not
             38636      engage in the practice of public accountancy while in the status of CPA emeritus registration;
             38637      and
             38638          (d) the licensee is in good standing as a CPA and not subject to any order of revocation,
             38639      suspension, or probation.
             38640          (2) Each CPA emeritus registration shall be issued in accordance with a two-year
             38641      renewal cycle established by rule.

             38642          (3) CPA emeritus registrants may not engage in the practice of public accountancy.
             38643          (4) CPA emeritus registrants are not required to fulfill the continuing professional
             38644      education or peer review provisions of this chapter.
             38645          (5) Each CPA emeritus registrant is responsible for renewing [his] the registration,
             38646      according to procedures that the division establishes by rule in collaboration with the board in
             38647      accordance with Section 58-1-308 .
             38648          (6) A CPA emeritus registrant may reinstate [his] the CPA license by:
             38649          (a) submitting an application in a form prescribed by the division;
             38650          (b) paying a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             38651      and
             38652          (c) showing evidence of having completed the continuing professional education
             38653      requirement established by rule.
             38654          Section 862. Section 58-28-302 is amended to read:
             38655           58-28-302. License qualifications.
             38656          (1) Every applicant for a license to practice veterinary medicine, surgery, and dentistry
             38657      shall:
             38658          (a) be of good moral character as it relates to the functions and duties of a licensed
             38659      veterinarian;
             38660          (b) pass an examination approved by the board on the theory and practice of the science
             38661      of veterinary medicine, surgery, dentistry, and other subjects determined by the board,
             38662      knowledge of which is generally required of veterinarians;
             38663          (c) (i) graduate from a veterinary college accredited by the AVMA; or
             38664          (ii) obtain a certificate issued by the Educational Commission for Foreign Veterinary
             38665      Graduates issued by the AVMA;
             38666          (d) (i) have practiced under the supervision of a veterinarian licensed to practice in this
             38667      state for a period of at least six months;
             38668          (ii) have participated in veterinary investigational, educational, or sanitary control work
             38669      of a nature and duration as to be the equivalent of the experience of Subsection (1)(d)(i);

             38670          (iii) have practiced as a licensed veterinarian outside Utah for a period of at least six
             38671      months; or
             38672          (iv) have practiced as a veterinarian while employed by the United States government,
             38673      its agencies, or the state or its political subdivisions for a period of at least six months; and
             38674          (e) pay a fee to the Department of Commerce determined by it pursuant to Section
             38675      [ 63-38-3.2 ] 63J-1-303 for the examination, for an initial license, and for a renewal license.
             38676          (2) (a) An applicant for licensure as a veterinary intern shall comply with the provisions
             38677      of Subsections (1)(a) and (c).
             38678          (b) An applicant's license as a veterinary intern is limited to the period of time necessary
             38679      to complete clinical training as described in Subsection (1)(d) and extends not more than one
             38680      year from the date the minimum requirement for training is completed, unless the individual
             38681      presents satisfactory evidence to the division and the board that the individual is making
             38682      reasonable progress toward passing the qualifying examination or is otherwise on a course
             38683      reasonably expected to lead to licensure as a veterinarian, but the period of time under this
             38684      Subsection (2)(b) may not exceed two years past the date the minimum supervised clinical
             38685      training has been completed.
             38686          Section 863. Section 58-28-503 is amended to read:
             38687           58-28-503. Penalty for unlawful or unprofessional conduct.
             38688          (1) Any person who violates the unlawful conduct provisions of Section 58-28-501 is
             38689      guilty of a third degree felony.
             38690          (2) After proceeding pursuant to [Title 63, Chapter 46b] Title 63G, Chapter 4,
             38691      Administrative Procedures Act, and Chapter 1, Division of Occupational and Professional
             38692      Licensing Act, the division may impose administrative penalties of up to $10,000 for acts of
             38693      unprofessional conduct or unlawful conduct under this chapter.
             38694          (3) Assessment of a penalty under this section does not affect any other action the
             38695      division is authorized to take regarding a license issued under this chapter.
             38696          Section 864. Section 58-31b-102 is amended to read:
             38697           58-31b-102. Definitions.

             38698          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             38699          (1) "Administrative penalty" means a monetary fine imposed by the division for acts or
             38700      omissions determined to constitute unprofessional or unlawful conduct in accordance with a fine
             38701      schedule established by rule and as a result of an adjudicative proceeding conducted in
             38702      accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             38703          (2) "Applicant" means a person who applies for licensure or certification under this
             38704      chapter by submitting a completed application for licensure or certification and the required fees
             38705      to the department.
             38706          (3) "Approved education program" means a nursing education program that meets the
             38707      minimum standards for educational programs established under this chapter and by division rule
             38708      in collaboration with the board.
             38709          (4) "Board" means the Board of Nursing created in Section 58-31b-201 .
             38710          (5) "Consultation and referral plan" means a written plan jointly developed by an
             38711      advanced practice registered nurse and a consulting physician that permits the advanced practice
             38712      registered nurse to prescribe schedule II-III controlled substances in consultation with the
             38713      consulting physician.
             38714          (6) "Consulting physician" means a physician and surgeon or osteopathic physician and
             38715      surgeon licensed in accordance with this title who has agreed to consult with an advanced
             38716      practice registered nurse with a controlled substance license, a DEA registration number, and
             38717      who will be prescribing schedule II-III controlled substances.
             38718          (7) "Diagnosis" means the identification of and discrimination between physical and
             38719      psychosocial signs and symptoms essential to the effective execution and management of health
             38720      care.
             38721          (8) "Examinee" means a person who applies to take or does take any examination
             38722      required under this chapter for licensure.
             38723          (9) "Licensee" means a person who is licensed or certified under this chapter.
             38724          (10) "Long-term care facility" means any of the following facilities licensed by the
             38725      Department of Health pursuant to Title 26, Chapter 21, Health Care Facility Licensing and

             38726      Inspection Act:
             38727          (a) a nursing care facility;
             38728          (b) a small health care facility;
             38729          (c) an intermediate care facility for the mentally retarded;
             38730          (d) an assisted living facility Type I or II; or
             38731          (e) a designated swing bed unit in a general hospital.
             38732          (11) "Medication aide certified" means a certified nurse aide who:
             38733          (a) has a minimum of 2,000 hours experience working as a certified nurse aide;
             38734          (b) has received a minimum of 40 hours of classroom and 20 hours of practical training
             38735      that is approved by the division in collaboration with the board, in administering routine
             38736      medications to patients or residents of long-term care facilities; and
             38737          (c) is certified by the division as a medication aide certified.
             38738          (12) (a) "Practice as a medication aide certified" means the limited practice of nursing
             38739      under the supervision, as defined by the division by administrative rule, of a licensed nurse,
             38740      involving routine patient care that requires minimal or limited specialized or general knowledge,
             38741      judgment, and skill, to an individual who is ill, injured, infirm, developmentally or physically
             38742      disabled, mentally disabled, or mentally retarded, and who is in a regulated long-term care
             38743      facility.
             38744          (b) "Practice as a medication aide certified" includes:
             38745          (i) providing direct personal assistance or care; and
             38746          (ii) administering routine medications to patients in accordance with a formulary and
             38747      protocols to be defined by the division by rule.
             38748          (13) "Practice of advanced practice registered nursing" means the practice of nursing
             38749      within the generally recognized scope and standards of advanced practice registered nursing as
             38750      defined by rule and consistent with professionally recognized preparation and education
             38751      standards of an advanced practice registered nurse by a person licensed under this chapter as an
             38752      advanced practice registered nurse. Advanced practice registered nursing includes:
             38753          (a) maintenance and promotion of health and prevention of disease;

             38754          (b) diagnosis, treatment, correction, consultation, and referral for common health
             38755      problems;
             38756          (c) prescription or administration of prescription drugs or devices including:
             38757          (i) local anesthesia;
             38758          (ii) schedule IV-V controlled substances; and
             38759          (iii) schedule II-III controlled substances in accordance with a consultation and referral
             38760      plan; or
             38761          (d) the provision of preoperative, intraoperative, and postoperative anesthesia care and
             38762      related services upon the request of a licensed health care professional by an advanced practice
             38763      registered nurse specializing as a certified registered nurse anesthetist, including:
             38764          (i) preanesthesia preparation and evaluation including:
             38765          (A) performing a preanesthetic assessment of the patient;
             38766          (B) ordering and evaluating appropriate lab and other studies to determine the health of
             38767      the patient; and
             38768          (C) selecting, ordering, or administering appropriate medications;
             38769          (ii) anesthesia induction, maintenance, and emergence, including:
             38770          (A) selecting and initiating the planned anesthetic technique;
             38771          (B) selecting and administering anesthetics and adjunct drugs and fluids; and
             38772          (C) administering general, regional, and local anesthesia;
             38773          (iii) postanesthesia follow-up care, including:
             38774          (A) evaluating the patient's response to anesthesia and implementing corrective actions;
             38775      and
             38776          (B) selecting, ordering, or administering the medications and studies listed in
             38777      Subsection (13)(d); and
             38778          (iv) other related services within the scope of practice of a certified registered nurse
             38779      anesthetist, including:
             38780          (A) emergency airway management;
             38781          (B) advanced cardiac life support; and

             38782          (C) the establishment of peripheral, central, and arterial invasive lines; and
             38783          (v) for purposes of Subsection (13)(d), "upon the request of a licensed health care
             38784      professional":
             38785          (A) means a health care professional practicing within the scope of the health care
             38786      professional's license, requests anesthesia services for a specific patient; and
             38787          (B) does not require an advanced practice registered nurse specializing as a certified
             38788      registered nurse anesthetist to enter into a consultation and referral plan or obtain additional
             38789      authority to select, administer, or provide preoperative, intraoperative, or postoperative
             38790      anesthesia care and services.
             38791          (14) "Practice of nursing" means assisting individuals or groups to maintain or attain
             38792      optimal health, implementing a strategy of care to accomplish defined goals and evaluating
             38793      responses to care and treatment. The practice of nursing requires substantial specialized or
             38794      general knowledge, judgment, and skill based upon principles of the biological, physical,
             38795      behavioral, and social sciences, and includes:
             38796          (a) initiating and maintaining comfort measures;
             38797          (b) promoting and supporting human functions and responses;
             38798          (c) establishing an environment conducive to well-being;
             38799          (d) providing health counseling and teaching;
             38800          (e) collaborating with health care professionals on aspects of the health care regimen;
             38801          (f) performing delegated procedures only within the education, knowledge, judgment,
             38802      and skill of the licensee; and
             38803          (g) delegating nurse interventions that may be performed by others and are not in
             38804      conflict with this chapter.
             38805          (15) "Practice of practical nursing" means the performance of nursing acts in the
             38806      generally recognized scope of practice of licensed practical nurses as defined by rule and as
             38807      provided in this Subsection (15) by a person licensed under this chapter as a licensed practical
             38808      nurse and under the direction of a registered nurse, licensed physician, or other specified health
             38809      care professional as defined by rule. Practical nursing acts include:

             38810          (a) contributing to the assessment of the health status of individuals and groups;
             38811          (b) participating in the development and modification of the strategy of care;
             38812          (c) implementing appropriate aspects of the strategy of care;
             38813          (d) maintaining safe and effective nursing care rendered to a patient directly or
             38814      indirectly; and
             38815          (e) participating in the evaluation of responses to interventions.
             38816          (16) "Practice of registered nursing" means performing acts of nursing as provided in
             38817      this Subsection (16) by a person licensed under this chapter as a registered nurse within the
             38818      generally recognized scope of practice of registered nurses as defined by rule. Registered
             38819      nursing acts include:
             38820          (a) assessing the health status of individuals and groups;
             38821          (b) identifying health care needs;
             38822          (c) establishing goals to meet identified health care needs;
             38823          (d) planning a strategy of care;
             38824          (e) prescribing nursing interventions to implement the strategy of care;
             38825          (f) implementing the strategy of care;
             38826          (g) maintaining safe and effective nursing care that is rendered to a patient directly or
             38827      indirectly;
             38828          (h) evaluating responses to interventions;
             38829          (i) teaching the theory and practice of nursing; and
             38830          (j) managing and supervising the practice of nursing.
             38831          (17) "Routine medications":
             38832          (a) means established medications administered to a medically stable individual as
             38833      determined by a licensed health care practitioner or in consultation with a licensed medical
             38834      practitioner; and
             38835          (b) is limited to medications that are administered by the following routes:
             38836          (i) oral;
             38837          (ii) sublingual;

             38838          (iii) buccal;
             38839          (iv) eye;
             38840          (v) ear;
             38841          (vi) nasal;
             38842          (vii) rectal;
             38843          (viii) vaginal;
             38844          (ix) skin ointments, topical including patches and transdermal;
             38845          (x) gastronomy or jejunostomy tubes;
             38846          (xi) premeasured medication delivered by aerosol/nebulizer; and
             38847          (xii) medications delivered by metered hand-held inhalers.
             38848          (18) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-31b-501 .
             38849          (19) "Unlicensed assistive personnel" means any unlicensed person, regardless of title,
             38850      to whom tasks are delegated by a licensed nurse as permitted by rule and in accordance with the
             38851      standards of the profession.
             38852          (20) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-31b-502 and
             38853      as may be further defined by rule.
             38854          Section 865. Section 58-31b-301.6 is amended to read:
             38855           58-31b-301.6. Medication aide certified pilot program.
             38856          (1) (a) The division shall establish a medication aide certified pilot program, limited to
             38857      adult patients only, to determine the safety and efficiency of regulating medication aides
             38858      certified.
             38859          (b) The pilot program begins on January 1, 2007, and sunsets in accordance with
             38860      Section [ 63-55b-158 ] 63I-2-258 .
             38861          (c) The division shall collect data regarding the safety and efficiency of medication aides
             38862      certified and shall make the data available to the public.
             38863          (d) If the Legislature does not reauthorize the medication aides certified in accordance
             38864      with Section [ 63-55b-158 ] 63I-2-258 , all certifications will automatically expire on the sunset
             38865      date.

             38866          (2) If at any time the division determines the certification pilot program has become a
             38867      threat, or potential threat to the public health, safety, or welfare, the division may authorize
             38868      emergency rules to place the certification program in abeyance until the next legislative session.
             38869          Section 866. Section 58-31b-302 is amended to read:
             38870           58-31b-302. Qualifications for licensure or certification -- Criminal background
             38871      checks.
             38872          (1) An applicant for certification as a medication aide shall:
             38873          (a) submit an application to the division on a form prescribed by the division;
             38874          (b) pay a fee to the division as determined under Section [ 63-38-3.2 ] 63J-1-303 ;
             38875          (c) have a high school diploma or its equivalent;
             38876          (d) have a current certification as a nurse aide, in good standing, from the Department
             38877      of Health;
             38878          (e) have a minimum of 2,000 hours of experience within the two years prior to
             38879      application, working as a certified nurse aide in a long-term care facility;
             38880          (f) obtain letters of recommendation from a long-term care facility administrator and
             38881      one licensed nurse familiar with the applicant's work practices as a certified nurse aide;
             38882          (g) be in a condition of physical and mental health that will permit the applicant to
             38883      practice safely as a medication aide certified;
             38884          (h) have completed an approved education program or an equivalent as determined by
             38885      the division in collaboration with the board;
             38886          (i) have passed the examinations as required by division rule made in collaboration with
             38887      the board; and
             38888          (j) meet with the board, if requested, to determine the applicant's qualifications for
             38889      certification.
             38890          (2) An applicant for licensure as a licensed practical nurse shall:
             38891          (a) submit to the division an application in a form prescribed by the division;
             38892          (b) pay to the division a fee determined under Section [ 63-38-3.2 ] 63J-1-303 ;
             38893          (c) have a high school diploma or its equivalent;

             38894          (d) be in a condition of physical and mental health that will permit the applicant to
             38895      practice safely as a licensed practical nurse;
             38896          (e) have completed an approved practical nursing education program or an equivalent
             38897      as determined by the board;
             38898          (f) have passed the examinations as required by division rule made in collaboration with
             38899      the board; and
             38900          (g) meet with the board, if requested, to determine the applicant's qualifications for
             38901      licensure.
             38902          (3) An applicant for licensure as a registered nurse shall:
             38903          (a) submit to the division an application form prescribed by the division;
             38904          (b) pay to the division a fee determined under Section [ 63-38-3.2 ] 63J-1-303 ;
             38905          (c) have a high school diploma or its equivalent;
             38906          (d) be in a condition of physical and mental health that will allow the applicant to
             38907      practice safely as a registered nurse;
             38908          (e) have completed an approved registered nursing education program;
             38909          (f) have passed the examinations as required by division rule made in collaboration with
             38910      the board; and
             38911          (g) meet with the board, if requested, to determine the applicant's qualifications for
             38912      licensure.
             38913          (4) Applicants for licensure as an advanced practice registered nurse shall:
             38914          (a) submit to the division an application on a form prescribed by the division;
             38915          (b) pay to the division a fee determined under Section [ 63-38-3.2 ] 63J-1-303 ;
             38916          (c) be in a condition of physical and mental health which will allow the applicant to
             38917      practice safely as an advanced practice registered nurse;
             38918          (d) hold a current registered nurse license in good standing issued by the state or be
             38919      qualified at the time for licensure as a registered nurse;
             38920          (e) (i) have earned a graduate degree in:
             38921          (A) an advanced practice registered nurse nursing education program; or

             38922          (B) a related area of specialized knowledge as determined appropriate by the division in
             38923      collaboration with the board; or
             38924          (ii) have completed a nurse anesthesia program in accordance with Subsection (4)(f)(ii);
             38925          (f) have completed:
             38926          (i) course work in patient assessment, diagnosis and treatment, and
             38927      pharmacotherapeutics from an education program approved by the division in collaboration
             38928      with the board; or
             38929          (ii) a nurse anesthesia program which is approved by the Council on Accreditation of
             38930      Nurse Anesthesia Educational Programs;
             38931          (g) have successfully completed clinical practice in psychiatric and mental health
             38932      nursing, including psychotherapy as defined by division rule, after completion of the masters
             38933      degree required for licensure, to practice within the psychiatric and mental health nursing
             38934      specialty;
             38935          (h) have passed the examinations as required by division rule made in collaboration with
             38936      the board;
             38937          (i) be currently certified by a program approved by the division in collaboration with the
             38938      board and submit evidence satisfactory to the division of the certification; and
             38939          (j) meet with the board, if requested, to determine the applicant's qualifications for
             38940      licensure.
             38941          (5) For each applicant for licensure or certification under this chapter:
             38942          (a) the applicant shall:
             38943          (i) submit fingerprint cards in a form acceptable to the division at the time the
             38944      application is filed; and
             38945          (ii) consent to a fingerprint background check by the Utah Bureau of Criminal
             38946      Identification and the Federal Bureau of Investigation regarding the application; and
             38947          (b) the division shall request the Department of Public Safety to complete a Federal
             38948      Bureau of Investigation criminal background check through the national criminal history system
             38949      (NCIC) or any successor system.

             38950          (6) For purposes of conducting the criminal background checks required in Subsection
             38951      (5), the division shall have direct access to criminal background information maintained
             38952      pursuant to Title 53, Chapter 10, Part 2, Bureau of Criminal Identification.
             38953          (7) (a) (i) Any new nurse license or certification issued under this section shall be
             38954      conditional, pending completion of the criminal background check.
             38955          (ii) If the criminal background check discloses the applicant has failed to accurately
             38956      disclose a criminal history, the license or certification shall be immediately and automatically
             38957      revoked.
             38958          (b) (i) Any person whose conditional license or certification has been revoked under
             38959      Subsection (7)(a) shall be entitled to a postrevocation hearing to challenge the revocation.
             38960          (ii) The hearing shall be conducted in accordance with [Title 63, Chapter 46b] Title
             38961      63G, Chapter 4, Administrative Procedures Act.
             38962          (8) (a) If a person has been charged with a violent felony, as defined in Subsection
             38963      76-3-203.5 (1)(c), and, as a result, the person has been convicted, entered a plea of guilty or
             38964      nolo contendere, or entered a plea of guilty or nolo contendere held in abeyance pending the
             38965      successful completion of probation:
             38966          (i) the person is disqualified for licensure under this chapter; and
             38967          (ii) (A) if the person is licensed under this chapter, the division:
             38968          (I) shall act upon the license as required under Section 58-1-401 ; and
             38969          (II) may not renew or subsequently issue a license to the person under this chapter; and
             38970          (B) if the person is not licensed under this chapter, the division may not issue a license
             38971      to the person under this chapter.
             38972          (b) If a person has been charged with a felony other than a violent felony, as defined in
             38973      Subsection 76-3-203.5 (1)(c), and, as a result, the person has been convicted, entered a plea of
             38974      guilty or nolo contendere, or entered a plea of guilty or nolo contendere held in abeyance
             38975      pending the successful completion of probation:
             38976          (i) if the person is licensed under this chapter, the division shall determine whether the
             38977      felony disqualifies the person for licensure under this chapter and act upon the license, as

             38978      required, in accordance with Section 58-1-401 ; and
             38979          (ii) if the person is not licensed under this chapter, the person may not file an
             38980      application for licensure under this chapter any sooner than five years after having completed
             38981      the conditions of the sentence or plea agreement.
             38982          Section 867. Section 58-31b-304 is amended to read:
             38983           58-31b-304. Qualifications for admission to the examinations.
             38984          (1) To be admitted to the examinations required for certification as a medication aide
             38985      certified, a person shall:
             38986          (a) submit an application on a form prescribed by the division;
             38987          (b) pay a fee as determined by the division under Section [ 63-38-3.2 ] 63J-1-303 ; and
             38988          (c) meet all requirements of Subsection 58-31b-302 (1), except the passing of the
             38989      examination.
             38990          (2) To be admitted to the examinations required for licensure as a practical nurse, a
             38991      person shall:
             38992          (a) submit an application form prescribed by the division;
             38993          (b) pay a fee as determined by the division under Section [ 63-38-3.2 ] 63J-1-303 ; and
             38994          (c) meet all requirements of Subsection 58-31b-302 (2), except Subsection (2)(f).
             38995          (3) To be admitted to the examinations required for licensure as a registered nurse, a
             38996      person shall:
             38997          (a) submit an application form prescribed by the division;
             38998          (b) pay a fee as determined by the division under Section [ 63-38-3.2 ] 63J-1-303 ; and
             38999          (c) meet all the requirements of Subsection 58-31b-302 (3), except Subsection (3)(f).
             39000          Section 868. Section 58-31b-305 is amended to read:
             39001           58-31b-305. Term of license -- Expiration -- Renewal.
             39002          (1) The division shall issue each license or certification under this chapter in accordance
             39003      with a two-year renewal cycle established by rule. The division may by rule extend or shorten a
             39004      renewal period by as much as one year to stagger the renewal cycles it administers.
             39005          (2) At the time of renewal, the licensee or person certified under this chapter shall show

             39006      satisfactory evidence of each of the following renewal requirements:
             39007          (a) complete and submit an application for renewal in a form prescribed by the division
             39008      and pay the renewal fee determined under Section [ 63-38-3.2 ] 63J-1-303 ; and
             39009          (b) meet continuing competency requirements as established by rule, which shall include
             39010      continuing education requirements for medication aide certified established by the board and
             39011      adopted by the division by rule.
             39012          (3) In addition to the renewal requirements under Subsection (2), a person licensed as a
             39013      advanced practice registered nurse shall be currently certified by a program approved by the
             39014      division in collaboration with the board and submit evidence satisfactory to the division of that
             39015      qualification or if licensed prior to July 1, 1992, meet the requirements established by rule.
             39016          (4) Each license or certification automatically expires on the expiration date shown on
             39017      the license or certification unless renewed in accordance with Section 58-1-308 .
             39018          Section 869. Section 58-31b-401 is amended to read:
             39019           58-31b-401. Grounds for denial of licensure or certification and disciplinary
             39020      proceedings.
             39021          (1) Grounds for refusal to issue a license to an applicant, for refusal to renew the license
             39022      of a licensee, to revoke, suspend, restrict, or place on probation the license of a licensee, to
             39023      issue a public or private reprimand to a licensee, and to issue cease and desist orders shall be in
             39024      accordance with Section 58-1-401 .
             39025          (2) If a court of competent jurisdiction determines a nurse is an incapacitated person as
             39026      defined in Section 75-1-201 or that [he] the nurse is mentally ill as defined in Section
             39027      62A-15-602 , and unable to safely engage in the practice of nursing, the director shall
             39028      immediately suspend the license of the nurse upon the entry of the judgment of the court,
             39029      without further proceedings under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             39030      Procedures Act, regardless of whether an appeal from the court's ruling is pending. The
             39031      director shall promptly notify the nurse in writing of the suspension.
             39032          (3) (a) If the division and the majority of the board find reasonable cause to believe a
             39033      nurse who is not determined judicially to be an incapacitated person or to be mentally ill, is

             39034      incapable of practicing nursing with reasonable skill regarding the safety of patients, because of
             39035      illness, excessive use of drugs or alcohol, or as a result of any mental or physical condition, the
             39036      board shall recommend that the director file a petition with the division, and cause the petition
             39037      to be served upon the nurse with a notice of hearing on the sole issue of the capacity of the
             39038      nurse to competently, safely engage in the practice of nursing.
             39039          (b) The hearing shall be conducted under Section 58-1-109 and [Title 63, Chapter 46b]
             39040      Title 63G, Chapter 4, Administrative Procedures Act, except as provided in Subsection (4).
             39041          (4) (a) Every nurse who accepts the privilege of being licensed under this chapter gives
             39042      consent to:
             39043          (i) submitting to an immediate mental or physical examination, at the nurse's expense
             39044      and by a division-approved practitioner selected by the nurse when directed in writing by the
             39045      division and a majority of the board to do so; and
             39046          (ii) the admissibility of the reports of the examining practitioner's testimony or
             39047      examination, and waives all objections on the ground the reports constitute a privileged
             39048      communication.
             39049          (b) The examination may be ordered by the division, with the consent of a majority of
             39050      the board, only upon a finding of reasonable cause to believe:
             39051          (i) the nurse is mentally ill or incapacitated or otherwise unable to practice nursing with
             39052      reasonable skill and safety; and
             39053          (ii) immediate action by the division and the board is necessary to prevent harm to the
             39054      nurse's patients or the general public.
             39055          (c) (i) Failure of a nurse to submit to the examination ordered under this section is a
             39056      ground for the division's immediate suspension of the nurse's license by written order of the
             39057      director.
             39058          (ii) The division may enter the order of suspension without further compliance with
             39059      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, unless the
             39060      division finds the failure to submit to the examination ordered under this section was due to
             39061      circumstances beyond the control of the nurse and was not related directly to the illness or

             39062      incapacity of the nurse.
             39063          (5) (a) A nurse whose license is suspended under Subsection (2), (3), or (4)(c) has the
             39064      right to a hearing to appeal the suspension within ten days after the license is suspended.
             39065          (b) The hearing held under this Subsection (5) shall be conducted in accordance with
             39066      Sections 58-1-108 and 58-1-109 for the sole purpose of determining if sufficient basis exists for
             39067      the continuance of the order of suspension in order to prevent harm to the nurse's patients or
             39068      the general public.
             39069          (6) A nurse whose license is revoked, suspended, or in any way restricted under this
             39070      section may request the division and the board to consider, at reasonable intervals, evidence
             39071      presented by the nurse, under procedures established by division rule, regarding any change in
             39072      the nurse's condition, to determine whether:
             39073          (a) [he] the nurse is or is not able to safely and competently engage in the practice of
             39074      nursing; and
             39075          (b) [he] the nurse is qualified to have [his] the nurse's license to practice under this
             39076      chapter restored completely or in part.
             39077          (7) Nothing in Section [ 63-2-206 ] 63G-2-206 may be construed as limiting the
             39078      authority of the division to report current significant investigative information to the
             39079      coordinated licensure information system for transmission to party states as required of the
             39080      division by Article VII of the Nurse Licensure Compact in Section 58-31c-102 .
             39081          (8) For purposes of this section and Section 58-31b-402 :
             39082          (a) "licensed" or "license" includes "certified" or "certification" under this chapter; and
             39083          (b) any terms or conditions applied to the word "nurse" in this section or Section
             39084      58-31b-402 also apply to a medication aide certified.
             39085          Section 870. Section 58-31b-402 is amended to read:
             39086           58-31b-402. Authority to assess penalty.
             39087          (1) After a proceeding pursuant to [Title 63, Chapter 46b] Title 63G, Chapter 4,
             39088      Administrative Procedures Act, and Title 58, Chapter 1, Division of Occupational and
             39089      Professional Licensing Act, the division may impose an administrative penalty of up to $10,000

             39090      for unprofessional or unlawful conduct under this chapter in accordance with a fine schedule
             39091      established by rule.
             39092          (2) The assessment of a penalty under this section does not affect any other action the
             39093      division is authorized to take regarding a license issued under this chapter.
             39094          (3) The division may impose an administrative penalty of up to $500 for any violation of
             39095      Subsection 58-31b-501 (1)(a) or (b), consistent with Section 58-31b-503 .
             39096          Section 871. Section 58-31b-601 is amended to read:
             39097           58-31b-601. Minimum standards for nursing programs -- Medication aide
             39098      training.
             39099          (1) A nursing education program shall be affiliated with an accredited institution of
             39100      higher education in order to be approved by the division.
             39101          (2) The minimum standards a nursing program shall meet to qualify graduates for
             39102      licensure under this chapter shall be defined by division rule.
             39103          (3) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             39104      Administrative Rulemaking Act, the division shall make rules defining the minimum standards
             39105      for a medication aide certified training program to qualify a person for certification under this
             39106      chapter as a medication aide certified.
             39107          (b) A medication aide certified training program shall include a minimum of 40 hours of
             39108      classroom and 20 hours of practical training.
             39109          Section 872. Section 58-37-2 is amended to read:
             39110           58-37-2. Definitions.
             39111          (1) As used in this chapter:
             39112          (a) "Administer" means the direct application of a controlled substance, whether by
             39113      injection, inhalation, ingestion, or any other means, to the body of a patient or research subject
             39114      by:
             39115          (i) a practitioner or, in [his] the practitioner's presence, by [his] the practitioner's
             39116      authorized agent; or
             39117          (ii) the patient or research subject at the direction and in the presence of the

             39118      practitioner.
             39119          (b) "Agent" means an authorized person who acts on behalf of or at the direction of a
             39120      manufacturer, distributor, or practitioner but does not include a motor carrier, public
             39121      warehouseman, or employee of any of them.
             39122          (c) "Consumption" means ingesting or having any measurable amount of a controlled
             39123      substance in a person's body, but this Subsection (1)(c) does not include the metabolite of a
             39124      controlled substance.
             39125          (d) "Continuing criminal enterprise" means any individual, sole proprietorship,
             39126      partnership, corporation, business trust, association, or other legal entity, and any union or
             39127      groups of individuals associated in fact although not a legal entity, and includes illicit as well as
             39128      licit entities created or maintained for the purpose of engaging in conduct which constitutes the
             39129      commission of episodes of activity made unlawful by Title 58, Chapters 37, 37a, 37b, 37c, or
             39130      37d, which episodes are not isolated, but have the same or similar purposes, results,
             39131      participants, victims, methods of commission, or otherwise are interrelated by distinguishing
             39132      characteristics. Taken together, the episodes shall demonstrate continuing unlawful conduct
             39133      and be related either to each other or to the enterprise.
             39134          (e) "Control" means to add, remove, or change the placement of a drug, substance, or
             39135      immediate precursor under Section 58-37-3 .
             39136          (f) (i) "Controlled substance" means a drug or substance included in Schedules I, II, III,
             39137      IV, or V of Section 58-37-4 , and also includes a drug or substance included in Schedules I, II,
             39138      III, IV, or V of the federal Controlled Substances Act, Title II, P.L. 91-513, or any controlled
             39139      substance analog.
             39140          (ii) "Controlled substance" does not include:
             39141          (A) distilled spirits, wine, or malt beverages, as those terms are defined or used in Title
             39142      32A, Alcoholic Beverage Control Act, regarding tobacco or food;
             39143          (B) any drug intended for lawful use in the diagnosis, cure, mitigation, treatment, or
             39144      prevention of disease in man or other animals, which contains ephedrine, pseudoephedrine,
             39145      norpseudoephedrine, or phenylpropanolamine if the drug is lawfully purchased, sold,

             39146      transferred, or furnished as an over-the-counter medication without prescription; or
             39147          (C) dietary supplements, vitamins, minerals, herbs, or other similar substances including
             39148      concentrates or extracts, which are not otherwise regulated by law, which may contain naturally
             39149      occurring amounts of chemical or substances listed in this chapter, or in rules adopted pursuant
             39150      to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             39151          (g) (i) "Controlled substance analog" means a substance the chemical structure of which
             39152      is substantially similar to the chemical structure of a controlled substance listed in Schedules I
             39153      and II of Section 58-37-4 , or in Schedules I and II of the federal Controlled Substances Act,
             39154      Title II, P.L. 91-513:
             39155          (A) which has a stimulant, depressant, or hallucinogenic effect on the central nervous
             39156      system substantially similar to the stimulant, depressant, or hallucinogenic effect on the central
             39157      nervous system of controlled substances in the schedules set forth in Subsection (1)(f); or
             39158          (B) which, with respect to a particular individual, is represented or intended to have a
             39159      stimulant, depressant, or hallucinogenic effect on the central nervous system substantially similar
             39160      to the stimulant, depressant, or hallucinogenic effect on the central nervous system of controlled
             39161      substances in the schedules set forth in this Subsection (1).
             39162          (ii) "Controlled substance analog" does not include:
             39163          (A) a controlled substance currently scheduled in Schedules I through V of Section
             39164      58-37-4 ;
             39165          (B) a substance for which there is an approved new drug application;
             39166          (C) a substance with respect to which an exemption is in effect for investigational use
             39167      by a particular person under Section 505 of the Food, Drug, and Cosmetic Act, 21 U.S.C. 366,
             39168      to the extent the conduct with respect to the substance is permitted by the exemption;
             39169          (D) any substance to the extent not intended for human consumption before an
             39170      exemption takes effect with respect to the substance;
             39171          (E) any drug intended for lawful use in the diagnosis, cure, mitigation, treatment, or
             39172      prevention of disease in man or other animals, which contains ephedrine, pseudoephedrine,
             39173      norpseudoephedrine, or phenylpropanolamine if the drug is lawfully purchased, sold,

             39174      transferred, or furnished as an over-the-counter medication without prescription; or
             39175          (F) dietary supplements, vitamins, minerals, herbs, or other similar substances including
             39176      concentrates or extracts, which are not otherwise regulated by law, which may contain naturally
             39177      occurring amounts of chemical or substances listed in this chapter, or in rules adopted pursuant
             39178      to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             39179          (h) "Conviction" means a determination of guilt by verdict, whether jury or bench, or
             39180      plea, whether guilty or no contest, for any offense proscribed by Title 58, Chapters 37, 37a,
             39181      37b, 37c, or 37d, or for any offense under the laws of the United States and any other state
             39182      which, if committed in this state, would be an offense under Title 58, Chapters 37, 37a, 37b,
             39183      37c, or 37d.
             39184          (i) "Counterfeit substance" means:
             39185          (i) any substance or container or labeling of any substance that without authorization
             39186      bears the trademark, trade name, or other identifying mark, imprint, number, device, or any
             39187      likeness of them, of a manufacturer, distributor, or dispenser other than the person or persons
             39188      who in fact manufactured, distributed, or dispensed the substance which falsely purports to be a
             39189      controlled substance distributed by, any other manufacturer, distributor, or dispenser; or
             39190          (ii) any substance that is represented to be a controlled substance.
             39191          (j) "Deliver" or "delivery" means the actual, constructive, or attempted transfer of a
             39192      controlled substance or a listed chemical, whether or not an agency relationship exists.
             39193          (k) "Department" means the Department of Commerce.
             39194          (l) "Depressant or stimulant substance" means:
             39195          (i) a drug which contains any quantity of barbituric acid or any of the salts of barbituric
             39196      acid;
             39197          (ii) a drug which contains any quantity of:
             39198          (A) amphetamine or any of its optical isomers;
             39199          (B) any salt of amphetamine or any salt of an optical isomer of amphetamine; or
             39200          (C) any substance which the Secretary of Health and Human Services or the Attorney
             39201      General of the United States after investigation has found and by regulation designated

             39202      habit-forming because of its stimulant effect on the central nervous system;
             39203          (iii) lysergic acid diethylamide; or
             39204          (iv) any drug which contains any quantity of a substance which the Secretary of Health
             39205      and Human Services or the Attorney General of the United States after investigation has found
             39206      to have, and by regulation designated as having, a potential for abuse because of its depressant
             39207      or stimulant effect on the central nervous system or its hallucinogenic effect.
             39208          (m) "Dispense" means the delivery of a controlled substance by a pharmacist to an
             39209      ultimate user pursuant to the lawful order or prescription of a practitioner, and includes
             39210      distributing to, leaving with, giving away, or disposing of that substance as well as the
             39211      packaging, labeling, or compounding necessary to prepare the substance for delivery.
             39212          (n) "Dispenser" means a pharmacist who dispenses a controlled substance.
             39213          (o) "Distribute" means to deliver other than by administering or dispensing a controlled
             39214      substance or a listed chemical.
             39215          (p) "Distributor" means a person who distributes controlled substances.
             39216          (q) "Division" means the Division of Occupational and Professional Licensing created in
             39217      Section 58-1-103 .
             39218          (r) "Drug" means:
             39219          (i) articles recognized in the official United States Pharmacopoeia, Official
             39220      Homeopathic Pharmacopoeia of the United States, or Official National Formulary, or any
             39221      supplement to any of them;
             39222          (ii) articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention
             39223      of disease in man or other animals;
             39224          (iii) articles, other than food, intended to affect the structure or function of man or
             39225      other animals; and
             39226          (iv) articles intended for use as a component of any articles specified in Subsection
             39227      (1)(r)(i), (ii), or (iii); but does not include devices or their components, parts, or accessories.
             39228          (s) "Drug dependent person" means any individual who unlawfully and habitually uses
             39229      any controlled substance to endanger the public morals, health, safety, or welfare, or who is so

             39230      dependent upon the use of controlled substances as to have lost the power of self-control with
             39231      reference to [his] the individual's dependency.
             39232          (t) "Food" means:
             39233          (i) any nutrient or substance of plant, mineral, or animal origin other than a drug as
             39234      specified in this chapter, and normally ingested by human beings; and
             39235          (ii) foods for special dietary uses as exist by reason of a physical, physiological,
             39236      pathological, or other condition including but not limited to the conditions of disease,
             39237      convalescence, pregnancy, lactation, allergy, hypersensitivity to food, underweight, and
             39238      overweight; uses for supplying a particular dietary need which exist by reason of age including
             39239      but not limited to the ages of infancy and childbirth, and also uses for supplementing and for
             39240      fortifying the ordinary or unusual diet with any vitamin, mineral, or other dietary property for
             39241      use of a food. Any particular use of a food is a special dietary use regardless of the nutritional
             39242      purposes.
             39243          (u) "Immediate precursor" means a substance which the Attorney General of the United
             39244      States has found to be, and by regulation designated as being, the principal compound used or
             39245      produced primarily for use in the manufacture of a controlled substance, or which is an
             39246      immediate chemical intermediary used or likely to be used in the manufacture of a controlled
             39247      substance, the control of which is necessary to prevent, curtail, or limit the manufacture of the
             39248      controlled substance.
             39249          (v) "Indian" means a member of an Indian tribe.
             39250          (w) "Indian religion" means any religion:
             39251          (i) the origin and interpretation of which is from within a traditional Indian culture or
             39252      community; and
             39253          (ii) which is practiced by Indians.
             39254          (x) "Indian tribe" means any tribe, band, nation, pueblo, or other organized group or
             39255      community of Indians, including any Alaska Native village, which is legally recognized as
             39256      eligible for and is consistent with the special programs, services, and entitlements provided by
             39257      the United States to Indians because of their status as Indians.

             39258          (y) "Manufacture" means the production, preparation, propagation, compounding, or
             39259      processing of a controlled substance, either directly or indirectly by extraction from substances
             39260      of natural origin, or independently by means of chemical synthesis or by a combination of
             39261      extraction and chemical synthesis.
             39262          (z) "Manufacturer" includes any person who packages, repackages, or labels any
             39263      container of any controlled substance, except pharmacists who dispense or compound
             39264      prescription orders for delivery to the ultimate consumer.
             39265          (aa) "Marijuana" means all species of the genus cannabis and all parts of the genus,
             39266      whether growing or not; the seeds of it; the resin extracted from any part of the plant; and every
             39267      compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin.
             39268      The term does not include the mature stalks of the plant, fiber produced from the stalks, oil or
             39269      cake made from the seeds of the plant, any other compound, manufacture, salt, derivative,
             39270      mixture, or preparation of the mature stalks, except the resin extracted from them, fiber, oil or
             39271      cake, or the sterilized seed of the plant which is incapable of germination. Any synthetic
             39272      equivalents of the substances contained in the plant cannabis sativa or any other species of the
             39273      genus cannabis which are chemically indistinguishable and pharmacologically active are also
             39274      included.
             39275          (bb) "Money" means officially issued coin and currency of the United States or any
             39276      foreign country.
             39277          (cc) "Narcotic drug" means any of the following, whether produced directly or
             39278      indirectly by extraction from substances of vegetable origin, or independently by means of
             39279      chemical synthesis, or by a combination of extraction and chemical synthesis:
             39280          (i) opium, coca leaves, and opiates;
             39281          (ii) a compound, manufacture, salt, derivative, or preparation of opium, coca leaves, or
             39282      opiates;
             39283          (iii) opium poppy and poppy straw; or
             39284          (iv) a substance, and any compound, manufacture, salt, derivative, or preparation of the
             39285      substance, which is chemically identical with any of the substances referred to in Subsection

             39286      (1)(cc)(i), (ii), or (iii), except narcotic drug does not include decocainized coca leaves or
             39287      extracts of coca leaves which do not contain cocaine or ecgonine.
             39288          (dd) "Negotiable instrument" means documents, containing an unconditional promise to
             39289      pay a sum of money, which are legally transferable to another party by endorsement or delivery.
             39290          (ee) "Opiate" means any drug or other substance having an addiction-forming or
             39291      addiction-sustaining liability similar to morphine or being capable of conversion into a drug
             39292      having addiction-forming or addiction-sustaining liability.
             39293          (ff) "Opium poppy" means the plant of the species papaver somniferum L., except the
             39294      seeds of the plant.
             39295          (gg) "Person" means any corporation, association, partnership, trust, other institution or
             39296      entity or one or more individuals.
             39297          (hh) "Poppy straw" means all parts, except the seeds, of the opium poppy, after
             39298      mowing.
             39299          (ii) "Possession" or "use" means the joint or individual ownership, control, occupancy,
             39300      holding, retaining, belonging, maintaining, or the application, inhalation, swallowing, injection,
             39301      or consumption, as distinguished from distribution, of controlled substances and includes
             39302      individual, joint, or group possession or use of controlled substances. For a person to be a
             39303      possessor or user of a controlled substance, it is not required that [he] the person be shown to
             39304      have individually possessed, used, or controlled the substance, but it is sufficient if it is shown
             39305      that the person jointly participated with one or more persons in the use, possession, or control
             39306      of any substances with knowledge that the activity was occurring, or the controlled substance is
             39307      found in a place or under circumstances indicating that the person had the ability and the intent
             39308      to exercise dominion and control over it.
             39309          (jj) "Practitioner" means a physician, dentist, veterinarian, pharmacist, scientific
             39310      investigator, pharmacy, hospital, or other person licensed, registered, or otherwise permitted to
             39311      distribute, dispense, conduct research with respect to, administer, or use in teaching or chemical
             39312      analysis a controlled substance in the course of professional practice or research in this state.
             39313          (kk) "Prescribe" means to issue a prescription orally or in writing.

             39314          (ll) "Prescription" means an order issued by a licensed practitioner, in the course of that
             39315      practitioner's professional practice, for a controlled substance, other drug, or device which it
             39316      dispenses or administers for use by a patient or an animal. The order may be issued by word of
             39317      mouth, written document, telephone, facsimile transmission, computer, or other electronic
             39318      means of communication as defined by rule.
             39319          (mm) "Production" means the manufacture, planting, cultivation, growing, or harvesting
             39320      of a controlled substance.
             39321          (nn) "Securities" means any stocks, bonds, notes, or other evidences of debt or of
             39322      property.
             39323          (oo) "State" means the state of Utah.
             39324          (pp) "Ultimate user" means any person who lawfully possesses a controlled substance
             39325      for [his] the person's own use, for the use of a member of [his] the person's household, or for
             39326      administration to an animal owned by [him] the person or a member of [his] the person's
             39327      household.
             39328          (2) If a term used in this chapter is not defined, the definition and terms of Title 76,
             39329      Utah Criminal Code, shall apply.
             39330          Section 873. Section 58-37-6 is amended to read:
             39331           58-37-6. License to manufacture, produce, distribute, dispense, administer, or
             39332      conduct research -- Issuance by division -- Denial, suspension, or revocation -- Records
             39333      required -- Prescriptions.
             39334          (1) (a) The division may adopt rules relating to the licensing and control of the
             39335      manufacture, distribution, production, prescription, administration, dispensing, conducting of
             39336      research with, and performing of laboratory analysis upon controlled substances within this
             39337      state.
             39338          (b) The division may assess reasonable fees to defray the cost of issuing original and
             39339      renewal licenses under this chapter pursuant to Section [ 63-38-3.2 ] 63J-1-303 .
             39340          (2) (a) (i) Every person who manufactures, produces, distributes, prescribes, dispenses,
             39341      administers, conducts research with, or performs laboratory analysis upon any controlled

             39342      substance in Schedules II through V within this state, or who proposes to engage in
             39343      manufacturing, producing, distributing, prescribing, dispensing, administering, conducting
             39344      research with, or performing laboratory analysis upon controlled substances included in
             39345      Schedules II through V within this state shall obtain a license issued by the division.
             39346          (ii) The division shall issue each license under this chapter in accordance with a
             39347      two-year renewal cycle established by rule. The division may by rule extend or shorten a
             39348      renewal period by as much as one year to stagger the renewal cycles it administers.
             39349          (b) Persons licensed to manufacture, produce, distribute, prescribe, dispense,
             39350      administer, conduct research with, or perform laboratory analysis upon controlled substances in
             39351      Schedules II through V within this state may possess, manufacture, produce, distribute,
             39352      prescribe, dispense, administer, conduct research with, or perform laboratory analysis upon
             39353      those substances to the extent authorized by their license and in conformity with this chapter.
             39354          (c) The following persons are not required to obtain a license and may lawfully possess
             39355      controlled substances under this section:
             39356          (i) an agent or employee, except a sales representative, of any registered manufacturer,
             39357      distributor, or dispenser of any controlled substance, if the agent or employee is acting in the
             39358      usual course of [his] the person's business or employment; however, nothing in this subsection
             39359      shall be interpreted to permit an agent, employee, sales representative, or detail man to maintain
             39360      an inventory of controlled substances separate from the location of [his] the person's employer's
             39361      registered and licensed place of business;
             39362          (ii) a motor carrier or warehouseman, or an employee of a motor carrier or
             39363      warehouseman, who possesses any controlled substance in the usual course of [his] the person's
             39364      business or employment; and
             39365          (iii) an ultimate user, or any person who possesses any controlled substance pursuant to
             39366      a lawful order of a practitioner.
             39367          (d) The division may enact rules waiving the license requirement for certain
             39368      manufacturers, producers, distributors, prescribers, dispensers, administrators, research
             39369      practitioners, or laboratories performing analysis if consistent with the public health and safety.

             39370          (e) A separate license is required at each principal place of business or professional
             39371      practice where the applicant manufactures, produces, distributes, dispenses, conducts research
             39372      with, or performs laboratory analysis upon controlled substances.
             39373          (f) The division may enact rules providing for the inspection of a licensee or applicant's
             39374      establishment, and may inspect the establishment according to those rules.
             39375          (3) (a) Upon proper application, the division shall license a qualified applicant to
             39376      manufacture, produce, distribute, conduct research with, or perform laboratory analysis upon
             39377      controlled substances included in Schedules I through V, unless it determines that issuance of a
             39378      license is inconsistent with the public interest. The division shall not issue a license to any
             39379      person to prescribe, dispense, or administer a Schedule I controlled substance. In determining
             39380      public interest, the division shall consider whether or not the applicant has:
             39381          (i) maintained effective controls against diversion of controlled substances and any
             39382      Schedule I or II substance compounded from any controlled substance into other than legitimate
             39383      medical, scientific, or industrial channels;
             39384          (ii) complied with applicable state and local law;
             39385          (iii) been convicted under federal or state laws relating to the manufacture, distribution,
             39386      or dispensing of substances;
             39387          (iv) past experience in the manufacture of controlled dangerous substances;
             39388          (v) established effective controls against diversion; and
             39389          (vi) complied with any other factors that the division establishes that promote the public
             39390      health and safety.
             39391          (b) Licenses granted under Subsection (3)(a) do not entitle a licensee to manufacture,
             39392      produce, distribute, conduct research with, or perform laboratory analysis upon controlled
             39393      substances in Schedule I other than those specified in the license.
             39394          (c) (i) Practitioners shall be licensed to administer, dispense, or conduct research with
             39395      substances in Schedules II through V if they are authorized to administer, dispense, or conduct
             39396      research under the laws of this state.
             39397          (ii) The division need not require a separate license for practitioners engaging in

             39398      research with nonnarcotic controlled substances in Schedules II through V where the licensee is
             39399      already licensed under this act in another capacity.
             39400          (iii) With respect to research involving narcotic substances in Schedules II through V,
             39401      or where the division by rule requires a separate license for research of nonnarcotic substances
             39402      in Schedules II through V, a practitioner shall apply to the division prior to conducting research.
             39403          (iv) Licensing for purposes of bona fide research with controlled substances by a
             39404      practitioner considered qualified may be denied only on a ground specified in Subsection (4), or
             39405      upon evidence that the applicant will abuse or unlawfully transfer or fail to safeguard adequately
             39406      [his] the practitioner's supply of substances against diversion from medical or scientific use.
             39407          (v) Practitioners registered under federal law to conduct research in Schedule I
             39408      substances may conduct research in Schedule I substances within this state upon furnishing the
             39409      division evidence of federal registration.
             39410          (d) Compliance by manufacturers, producers, and distributors with the provisions of
             39411      federal law respecting registration, excluding fees, entitles them to be licensed under this
             39412      chapter.
             39413          (e) The division shall initially license those persons who own or operate an
             39414      establishment engaged in the manufacture, production, distribution, dispensation, or
             39415      administration of controlled substances prior to April 3, 1980, and who are licensed by the state.
             39416          (4) (a) Any license pursuant to Subsection (2) or (3) may be denied, suspended, placed
             39417      on probation, or revoked by the division upon finding that the applicant or licensee has:
             39418          (i) materially falsified any application filed or required pursuant to this chapter;
             39419          (ii) been convicted of an offense under this chapter or any law of the United States, or
             39420      any state, relating to any substance defined as a controlled substance;
             39421          (iii) been convicted of a felony under any other law of the United States or any state
             39422      within five years of the date of the issuance of the license;
             39423          (iv) had a federal license denied, suspended, or revoked by competent federal authority
             39424      and is no longer authorized to engage in the manufacturing, distribution, or dispensing of
             39425      controlled substances;

             39426          (v) had [his] the licensee's license suspended or revoked by competent authority of
             39427      another state for violation of laws or regulations comparable to those of this state relating to the
             39428      manufacture, distribution, or dispensing of controlled substances;
             39429          (vi) violated any division rule that reflects adversely on the licensee's reliability and
             39430      integrity with respect to controlled substances;
             39431          (vii) refused inspection of records required to be maintained under this chapter by a
             39432      person authorized to inspect them; or
             39433          (viii) prescribed, dispensed, administered, or injected an anabolic steroid for the purpose
             39434      of manipulating human hormonal structure so as to:
             39435          (A) increase muscle mass, strength, or weight without medical necessity and without a
             39436      written prescription by any practitioner in the course of [his] the practitioner's professional
             39437      practice; or
             39438          (B) improve performance in any form of human exercise, sport, or game.
             39439          (b) The division may limit revocation or suspension of a license to a particular
             39440      controlled substance with respect to which grounds for revocation or suspension exist.
             39441          (c) (i) Proceedings to deny, revoke, or suspend a license shall be conducted pursuant to
             39442      this section and in accordance with the procedures set forth in Title 58, Chapter 1, Division of
             39443      Occupational and Professional Licensing Act, and conducted in conjunction with the
             39444      appropriate representative committee designated by the director of the department.
             39445          (ii) Nothing in this Subsection (4)(c) gives the Division of Occupational and
             39446      Professional Licensing exclusive authority in proceedings to deny, revoke, or suspend licenses,
             39447      except where the division is designated by law to perform those functions, or, when not
             39448      designated by law, is designated by the executive director of the Department of Commerce to
             39449      conduct the proceedings.
             39450          (d) (i) The division may suspend any license simultaneously with the institution of
             39451      proceedings under this section if it finds there is an imminent danger to the public health or
             39452      safety.
             39453          (ii) Suspension shall continue in effect until the conclusion of proceedings, including

             39454      judicial review, unless withdrawn by the division or dissolved by a court of competent
             39455      jurisdiction.
             39456          (e) (i) If a license is suspended or revoked under this Subsection (4), all controlled
             39457      substances owned or possessed by the licensee may be placed under seal in the discretion of the
             39458      division.
             39459          (ii) Disposition may not be made of substances under seal until the time for taking an
             39460      appeal has lapsed, or until all appeals have been concluded, unless a court, upon application,
             39461      orders the sale of perishable substances and the proceeds deposited with the court.
             39462          (iii) If a revocation order becomes final, all controlled substances shall be forfeited.
             39463          (f) The division shall notify promptly the Drug Enforcement Administration of all orders
             39464      suspending or revoking a license and all forfeitures of controlled substances.
             39465          (5) (a) Persons licensed under Subsection (2) or (3) shall maintain records and
             39466      inventories in conformance with the record keeping and inventory requirements of federal and
             39467      state law and any additional rules issued by the division.
             39468          (b) (i) Every physician, dentist, veterinarian, practitioner, or other person who is
             39469      authorized to administer or professionally use a controlled substance shall keep a record of the
             39470      drugs received by him and a record of all drugs administered, dispensed, or professionally used
             39471      by him otherwise than by a prescription.
             39472          (ii) A person using small quantities or solutions or other preparations of those drugs for
             39473      local application has complied with this Subsection (5)(b) if [he] the person keeps a record of
             39474      the quantity, character, and potency of those solutions or preparations purchased or prepared by
             39475      him, and of the dates when purchased or prepared.
             39476          (6) Controlled substances in Schedules I through V may be distributed only by a
             39477      licensee and pursuant to an order form prepared in compliance with division rules or a lawful
             39478      order under the rules and regulations of the United States.
             39479          (7) (a) A person may not write or authorize a prescription for a controlled substance
             39480      unless [he] the person is:
             39481          (i) a practitioner authorized to prescribe drugs and medicine under the laws of this state

             39482      or under the laws of another state having similar standards; and
             39483          (ii) licensed under this chapter or under the laws of another state having similar
             39484      standards.
             39485          (b) A person other than a pharmacist licensed under the laws of this state, or [his] the
             39486      pharmacist's licensed intern, as required by Sections 58-17b-303 and 58-17b-304 , may not
             39487      dispense a controlled substance.
             39488          (c) (i) A controlled substance may not be dispensed without the written prescription of
             39489      a practitioner, if the written prescription is required by the federal Controlled Substances Act.
             39490          (ii) That written prescription shall be made in accordance with Subsection (7)(a) and in
             39491      conformity with Subsection (7)(d).
             39492          (iii) In emergency situations, as defined by division rule, controlled substances may be
             39493      dispensed upon oral prescription of a practitioner, if reduced promptly to writing on forms
             39494      designated by the division and filed by the pharmacy.
             39495          (iv) Prescriptions reduced to writing by a pharmacist shall be in conformity with
             39496      Subsection (7)(d).
             39497          (d) Except for emergency situations designated by the division, a person may not issue,
             39498      fill, compound, or dispense a prescription for a controlled substance unless the prescription is
             39499      signed by the prescriber in ink or indelible pencil or is signed with an electronic signature of the
             39500      prescriber as authorized by division rule, and contains the following information:
             39501          (i) the name, address, and registry number of the prescriber;
             39502          (ii) the name, address, and age of the person to whom or for whom the prescription is
             39503      issued;
             39504          (iii) the date of issuance of the prescription; and
             39505          (iv) the name, quantity, and specific directions for use by the ultimate user of the
             39506      controlled substance.
             39507          (e) A prescription may not be written, issued, filled, or dispensed for a Schedule I
             39508      controlled substance.
             39509          (f) Except when administered directly to an ultimate user by a licensed practitioner,

             39510      controlled substances are subject to the following restrictions:
             39511          (i) (A) A prescription for a Schedule II substance may not be refilled.
             39512          (B) A Schedule II controlled substance may not be filled in a quantity to exceed a
             39513      one-month's supply, as directed on the daily dosage rate of the prescriptions.
             39514          (ii) A Schedule III or IV controlled substance may be filled only within six months of
             39515      issuance, and may not be refilled more than six months after the date of its original issuance or
             39516      be refilled more than five times after the date of the prescription unless renewed by the
             39517      practitioner.
             39518          (iii) All other controlled substances in Schedule V may be refilled as the prescriber's
             39519      prescription directs, but they may not be refilled one year after the date the prescription was
             39520      issued unless renewed by the practitioner.
             39521          (iv) Any prescription for a Schedule II substance may not be dispensed if it is not
             39522      presented to a pharmacist for dispensing by a pharmacist or a pharmacy intern within 30 days
             39523      after the date the prescription was issued, or 30 days after the dispensing date, if that date is
             39524      specified separately from the date of issue.
             39525          (v) A practitioner may issue more than one prescription at the same time for the same
             39526      Schedule II controlled substance, but only under the following conditions:
             39527          (A) no more than three prescriptions for the same Schedule II controlled substance may
             39528      be issued at the same time;
             39529          (B) no one prescription may exceed a 30-day supply;
             39530          (C) a second or third prescription shall include the date of issuance and the date for
             39531      dispensing; and
             39532          (D) unless the practitioner determines there is a valid medical reason to the contrary,
             39533      the date for dispensing a second or third prescription may not be fewer than 30 days from the
             39534      dispensing date of the previous prescription.
             39535          (vi) Each prescription for a controlled substance may contain only one controlled
             39536      substance per prescription form and may not contain any other legend drug or prescription item.
             39537          (g) An order for a controlled substance in Schedules II through V for use by an

             39538      inpatient or an outpatient of a licensed hospital is exempt from all requirements of this
             39539      Subsection (7) if the order is:
             39540          (i) issued or made by a prescribing practitioner who holds an unrestricted registration
             39541      with the federal Drug Enforcement Administration, and an active Utah controlled substance
             39542      license in good standing issued by the division under this section, or a medical resident who is
             39543      exempted from licensure under Subsection 58-1-307 (1)(c);
             39544          (ii) authorized by the prescribing practitioner treating the patient and the prescribing
             39545      practitioner designates the quantity ordered;
             39546          (iii) entered upon the record of the patient, the record is signed by the prescriber
             39547      affirming [his] the prescriber's authorization of the order within 48 hours after filling or
             39548      administering the order, and the patient's record reflects the quantity actually administered; and
             39549          (iv) filled and dispensed by a pharmacist practicing [his] the pharmacist's profession
             39550      within the physical structure of the hospital, or the order is taken from a supply lawfully
             39551      maintained by the hospital and the amount taken from the supply is administered directly to the
             39552      patient authorized to receive it.
             39553          (h) A practitioner licensed under this chapter may not prescribe, administer, or dispense
             39554      a controlled substance to a child, without first obtaining the consent required in Section 78-14-5
             39555      of a parent, guardian, or person standing in loco parentis of the child except in cases of an
             39556      emergency. For purposes of this Subsection (7)(h), "child" has the same meaning as defined in
             39557      Section 78-3a-103 , and "emergency" means any physical condition requiring the administration
             39558      of a controlled substance for immediate relief of pain or suffering.
             39559          (i) A practitioner licensed under this chapter may not prescribe or administer dosages of
             39560      a controlled substance in excess of medically recognized quantities necessary to treat the
             39561      ailment, malady, or condition of the ultimate user.
             39562          (j) A practitioner licensed under this chapter may not prescribe, administer, or dispense
             39563      any controlled substance to another person knowing that the other person is using a false name,
             39564      address, or other personal information for the purpose of securing the controlled substance.
             39565          (k) A person who is licensed under this chapter to manufacture, distribute, or dispense a

             39566      controlled substance may not manufacture, distribute, or dispense a controlled substance to
             39567      another licensee or any other authorized person not authorized by this license.
             39568          (l) A person licensed under this chapter may not omit, remove, alter, or obliterate a
             39569      symbol required by this chapter or by a rule issued under this chapter.
             39570          (m) A person licensed under this chapter may not refuse or fail to make, keep, or
             39571      furnish any record notification, order form, statement, invoice, or information required under
             39572      this chapter.
             39573          (n) A person licensed under this chapter may not refuse entry into any premises for
             39574      inspection as authorized by this chapter.
             39575          (o) A person licensed under this chapter may not furnish false or fraudulent material
             39576      information in any application, report, or other document required to be kept by this chapter or
             39577      willfully make any false statement in any prescription, order, report, or record required by this
             39578      chapter.
             39579          (8) (a) (i) Any person licensed under this chapter who is found by the division to have
             39580      violated any of the provisions of Subsections (7)(k) through (7)(o) is subject to a penalty not to
             39581      exceed $5,000. The division shall determine the procedure for adjudication of any violations in
             39582      accordance with Sections 58-1-106 and 58-1-108 .
             39583          (ii) The division shall deposit all penalties collected under Subsection (8)(a)(i) in the
             39584      General Fund as a dedicated credit to be used by the division under Subsection 58-37-7.7 (1).
             39585          (b) Any person who knowingly and intentionally violates Subsections (7)(h) through
             39586      (7)(j) is:
             39587          (i) upon first conviction, guilty of a class B misdemeanor;
             39588          (ii) upon second conviction, guilty of a class A misdemeanor; and
             39589          (iii) on third or subsequent conviction, guilty of a third degree felony.
             39590          (c) Any person who knowingly and intentionally violates Subsections (7)(k) through
             39591      (7)(o) shall upon conviction be guilty of a third degree felony.
             39592          (9) Any information communicated to any licensed practitioner in an attempt to
             39593      unlawfully procure, or to procure the administration of, a controlled substance is not considered

             39594      to be a privileged communication.
             39595          Section 874. Section 58-37-21 is amended to read:
             39596           58-37-21. Admissibility of Utah State Crime Laboratory documents -- Drug
             39597      analysis in criminal pretrial proceedings.
             39598          The commissioner of the Department of Public Safety shall establish standards for
             39599      administration and interpretation of chemical and forensic analysis in accordance with [Title 63,
             39600      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, of:
             39601          (1) controlled substances as provided in Title 58, Chapter 37;
             39602          (2) drug paraphernalia as provided in Title 58, Chapter 37a;
             39603          (3) imitation controlled substances as provided in Title 58, Chapter 37b; and
             39604          (4) controlled substance precursors as provided in Title 58, Chapter 37d.
             39605          Section 875. Section 58-37c-3 is amended to read:
             39606           58-37c-3. Definitions.
             39607          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             39608          (1) "Board" means the Controlled Substance Precursor Advisory Board created in
             39609      Section 58-37c-4 .
             39610          (2) "Controlled substance precursor" includes a chemical reagent and means any of the
             39611      following:
             39612          (a) Phenyl-2-propanone;
             39613          (b) Methylamine;
             39614          (c) Ethylamine;
             39615          (d) D-lysergic acid;
             39616          (e) Ergotamine and its salts;
             39617          (f) Diethyl malonate;
             39618          (g) Malonic acid;
             39619          (h) Ethyl malonate;
             39620          (i) Barbituric acid;
             39621          (j) Piperidine and its salts;

             39622          (k) N-acetylanthranilic acid and its salts;
             39623          (l) Pyrrolidine;
             39624          (m) Phenylacetic acid and its salts;
             39625          (n) Anthranilic acid and its salts;
             39626          (o) Morpholine;
             39627          (p) Ephedrine;
             39628          (q) Pseudoephedrine;
             39629          (r) Norpseudoephedrine;
             39630          (s) Phenylpropanolamine;
             39631          (t) Benzyl cyanide;
             39632          (u) Ergonovine and its salts;
             39633          (v) 3,4-Methylenedioxyphenyl-2-propanone;
             39634          (w) propionic anhydride;
             39635          (x) Insosafrole;
             39636          (y) Safrole;
             39637          (z) Piperonal;
             39638          (aa) N-Methylephedrine;
             39639          (bb) N-ethylephedrine;
             39640          (cc) N-methylpseudoephedrine;
             39641          (dd) N-ethylpseudoephedrine;
             39642          (ee) Hydriotic acid;
             39643          (ff) gamma butyrolactone (GBL), including butyrolactone, 1,2 butanolide, 2-oxanolone,
             39644      tetrahydro-2-furanone, dihydro-2(3H)-furanone, and tetramethylene glycol, but not including
             39645      gamma aminobutric acid (GABA);
             39646          (gg) 1,4 butanediol;
             39647          (hh) any salt, isomer, or salt of an isomer of the chemicals listed in Subsections (2)(a)
             39648      through (gg);
             39649          (ii) Crystal iodine;

             39650          (jj) Iodine at concentrations greater than 1.5% by weight in a solution or matrix;
             39651          (kk) Red phosphorous, except as provided in Section 58-37c-19.7 ;
             39652          (ll) anhydrous ammonia, except as provided in Section 58-37c-19.9 ;
             39653          (mm) any controlled substance precursor listed under the provisions of the Federal
             39654      Controlled Substances Act which is designated by the director under the emergency listing
             39655      provisions set forth in Section 58-37c-14 ; and
             39656          (nn) any chemical which is designated by the director under the emergency listing
             39657      provisions set forth in Section 58-37c-14 .
             39658          (3) "Deliver," "delivery," "transfer," or "furnish" means the actual, constructive, or
             39659      attempted transfer of a controlled substance precursor.
             39660          (4) "Matrix" means something, as a substance, in which something else originates,
             39661      develops, or is contained.
             39662          (5) "Person" means any individual, group of individuals, proprietorship, partnership,
             39663      joint venture, corporation, or organization of any type or kind.
             39664          (6) "Practitioner" means a physician, dentist, podiatric physician, veterinarian,
             39665      pharmacist, scientific investigator, pharmacy, hospital, pharmaceutical manufacturer, or other
             39666      person licensed, registered, or otherwise permitted to distribute, dispense, conduct research
             39667      with respect to, administer, or use in teaching, or chemical analysis a controlled substance in the
             39668      course of professional practice or research in this state.
             39669          (7) (a) "Regulated distributor" means a person within the state who provides, sells,
             39670      furnishes, transfers, or otherwise supplies a listed controlled substance precursor chemical in a
             39671      regulated transaction.
             39672          (b) "Regulated distributor" does not include any person excluded from regulation under
             39673      this chapter.
             39674          (8) (a) "Regulated purchaser" means any person within the state who receives a listed
             39675      controlled substance precursor chemical in a regulated transaction.
             39676          (b) "Regulated purchaser" does not include any person excluded from regulation under
             39677      this chapter.

             39678          (9) "Regulated transaction" means any actual, constructive or attempted:
             39679          (a) transfer, distribution, delivery, or furnishing by a person within the state to another
             39680      person within or outside of the state of a threshold amount of a listed precursor chemical; or
             39681          (b) purchase or acquisition by any means by a person within the state from another
             39682      person within or outside the state of a threshold amount of a listed precursor chemical.
             39683          (10) "Retail distributor" means a grocery store, general merchandise store, drug store,
             39684      or other entity or person whose activities as a distributor are limited almost exclusively to sales
             39685      for personal use:
             39686          (a) in both number of sales and volume of sales; and
             39687          (b) either directly to walk-in customers or in face-to-face transactions by direct sales.
             39688          (11) "Threshold amount of a listed precursor chemical" means any amount of a
             39689      controlled substance precursor or a specified amount of a controlled substance precursor in a
             39690      matrix; however, the division may exempt from the provisions of this chapter a specific
             39691      controlled substance precursor in a specific amount and in certain types of transactions which
             39692      provisions for exemption shall be defined by the division by rule adopted pursuant to [Title 63,
             39693      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             39694          (12) "Unlawful conduct" as defined in Section 58-1-501 includes knowingly and
             39695      intentionally:
             39696          (a) engaging in a regulated transaction without first being appropriately licensed or
             39697      exempted from licensure under this chapter;
             39698          (b) acting as a regulated distributor and selling, transferring, or in any other way
             39699      conveying a controlled substance precursor to a person within the state who is not appropriately
             39700      licensed or exempted from licensure as a regulated purchaser, or selling, transferring, or
             39701      otherwise conveying a controlled substance precursor to a person outside of the state and failing
             39702      to report the transaction as required;
             39703          (c) acting as a regulated purchaser and purchasing or in any other way obtaining a
             39704      controlled substance precursor from a person within the state who is not a licensed regulated
             39705      distributor, or purchasing or otherwise obtaining a controlled substance precursor from a person

             39706      outside of the state and failing to report the transaction as required;
             39707          (d) engaging in a regulated transaction and failing to submit reports and keep required
             39708      records of inventories required under the provisions of this chapter or rules adopted pursuant to
             39709      this chapter;
             39710          (e) making any false statement in any application for license, in any record to be kept,
             39711      or on any report submitted as required under this chapter;
             39712          (f) with the intent of causing the evasion of the recordkeeping or reporting requirements
             39713      of this chapter and rules related to this chapter, receiving or distributing any listed controlled
             39714      substance precursor chemical in any manner designed so that the making of records or filing of
             39715      reports required under this chapter is not required;
             39716          (g) failing to take immediate steps to comply with licensure, reporting, or
             39717      recordkeeping requirements of this chapter because of lack of knowledge of those requirements,
             39718      upon becoming informed of the requirements;
             39719          (h) presenting false or fraudulent identification where or when receiving or purchasing a
             39720      listed controlled substance precursor chemical;
             39721          (i) creating a chemical mixture for the purpose of evading any licensure, reporting or
             39722      recordkeeping requirement of this chapter or rules related to this chapter, or receiving a
             39723      chemical mixture created for that purpose;
             39724          (j) if the person is at least 18 years of age, employing, hiring, using, persuading,
             39725      inducing, enticing, or coercing another person under 18 years of age to violate any provision of
             39726      this chapter, or assisting in avoiding detection or apprehension for any violation of this chapter
             39727      by any federal, state, or local law enforcement official; and
             39728          (k) obtaining or attempting to obtain or to possess any controlled substance precursor
             39729      or any combination of controlled substance precursors knowing or having a reasonable cause to
             39730      believe that the controlled substance precursor is intended to be used in the unlawful
             39731      manufacture of any controlled substance.
             39732          (13) "Unprofessional conduct" as defined in Section 58-1-102 and as may be further
             39733      defined by rule includes the following:

             39734          (a) violation of any provision of this chapter, the Controlled Substance Act of this state
             39735      or any other state, or the Federal Controlled Substance Act; and
             39736          (b) refusing to allow agents or representatives of the division or authorized law
             39737      enforcement personnel to inspect inventories or controlled substance precursors or records or
             39738      reports relating to purchases and sales or distribution of controlled substance precursors as such
             39739      records and reports are required under this chapter.
             39740          Section 876. Section 58-37c-6 is amended to read:
             39741           58-37c-6. Division duties.
             39742          The division shall be responsible for the licensing and reporting provisions of this
             39743      chapter and those duties shall include:
             39744          (1) providing for a system of licensure of regulated distributors and regulated
             39745      purchasers;
             39746          (2) refusing to renew a license or revoking, suspending, restricting, placing on
             39747      probation, issuing a private or public letter of censure or reprimand, or imposing other
             39748      appropriate action against a license;
             39749          (3) with respect to the licensure and reporting provisions of this chapter, investigating
             39750      or causing to be investigated any violation of this chapter by any person and to cause, when
             39751      necessary, appropriate administrative action with respect to the license of that person;
             39752          (4) presenting evidence obtained from investigations conducted by appropriate county
             39753      attorneys and the Office of the Attorney General for civil or criminal prosecution or for
             39754      administrative action against a licensee;
             39755          (5) conducting hearings for the purpose of revoking, suspending, placing on probation,
             39756      or imposing other appropriate administrative action against the license of regulated distributors
             39757      or regulated purchasers in accordance with the provisions of Title 58, Chapter 1, Division of
             39758      Occupational and Professional Licensing Act, and [Title 63, Chapter 46b] Title 63G, Chapter 4,
             39759      Administrative Procedures Act;
             39760          (6) assisting all other law enforcement agencies of the state in enforcing all laws
             39761      regarding controlled substance precursors;

             39762          (7) specifying reports, frequency of reports, and conditions under which reports are to
             39763      be submitted and to whom reports are to be submitted by regulated distributors and regulated
             39764      purchasers with respect to transactions involving threshold amounts of controlled substance
             39765      precursors; and
             39766          (8) performing all other functions necessary to fulfill division duties and responsibilities
             39767      as outlined under this chapter or rules adopted pursuant to this chapter.
             39768          Section 877. Section 58-37c-8 is amended to read:
             39769           58-37c-8. License -- Exceptions from licensure or regulation.
             39770          (1) Any person engaged in a regulated transaction must be appropriately licensed under
             39771      this chapter as a regulated distributor and regulated purchaser unless excepted from licensure
             39772      under this chapter.
             39773          (2) The division shall:
             39774          (a) establish the form of application for a license, the requirements for licensure, and
             39775      fees for initial licensure and renewal; and
             39776          (b) identify required information to be contained in the application as a condition of
             39777      licensure.
             39778          (3) A practitioner who holds a Utah Controlled Substance License and a Controlled
             39779      Substance Registration issued by the Drug Enforcement Administration of the U.S. Government
             39780      is excepted from licensure under this chapter.
             39781          (4) Any purchase, sale, transfer, furnishing, or receipt of any drug intended for lawful
             39782      use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other
             39783      animals, which contains ephedrine, pseudoephedrine, norpseudoephedrine, or
             39784      phenylpropanolamine, if the drug is lawfully purchased, sold, transferred, or furnished as an
             39785      over-the-counter medication without prescription pursuant to the federal Food, Drug and
             39786      Cosmetic Act, 21 USC, Sec. 301 et seq., or regulations adopted under that act, are excepted
             39787      from licensure, reporting, and recordkeeping under this chapter, except that products containing
             39788      ephedrine, pseudoephedrine, or phenylpropanolamine are subject to Section 58-37c-20.5 .
             39789          (5) Any purchase, sale, transfer, receipt, or manufacture of any dietary supplement,

             39790      vitamins, minerals, herbs, or other similar substances, including concentrates or extracts, which
             39791      are not otherwise prohibited by law, and which may contain naturally occurring amounts of
             39792      chemicals or substances listed in this chapter, or in rules adopted pursuant to [Title 63, Chapter
             39793      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, are exempt from licensure
             39794      under this chapter.
             39795          (6) A purchaser of two ounces or less of crystal iodine in a single transaction is not
             39796      required to be licensed as a regulated purchaser if the transaction complies with Section
             39797      58-37c-18 .
             39798          (7) Any purchase, sale, transfer, receipt, or manufacture of any product that contains
             39799      any precursor chemical listed in Subsection 58-37c-3 (2)(ff) or (gg) and that is not intended for
             39800      human consumption is exempt from licensure or regulation and is not subject to criminal
             39801      penalties under this chapter.
             39802          Section 878. Section 58-37c-14 is amended to read:
             39803           58-37c-14. Emergency listing provision.
             39804          (1) Upon a written finding of cause by the director that the listing of a chemical as a
             39805      controlled substance precursor is necessary to protect the public health, safety, or welfare, the
             39806      director may make an emergency listing of that chemical as a controlled substance precursor by
             39807      adopting a rule pursuant to the provisions of [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             39808      Administrative Rulemaking Act.
             39809          (2) Such listing shall have effect until the close of the next immediately succeeding
             39810      regular session of the Legislature. In the event the Legislature adopts the chemical as a
             39811      controlled precursor by amendment to this chapter, the chemical shall remain listed under
             39812      emergency provisions until the effective date of the amendment.
             39813          (3) Any violation of this chapter dealing with a controlled substance precursor listed
             39814      under the emergency listing provisions of this section shall constitute a violation subject only to
             39815      civil or administrative penalties.
             39816          Section 879. Section 58-39a-5 is amended to read:
             39817           58-39a-5. Qualifications for certification.

             39818          Applicants for certification as an alternative dispute resolution provider shall:
             39819          (1) submit an application in a form as prescribed by the division;
             39820          (2) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             39821          (3) be of good moral character; and
             39822          (4) complete a program of education or training, or both, in ADR or have demonstrated
             39823      sufficient experience in ADR, as determined by the division in collaboration with the board.
             39824          Section 880. Section 58-40-5 is amended to read:
             39825           58-40-5. License requirements.
             39826          (1) The division shall issue a license to practice as a master therapeutic recreational
             39827      specialist to any applicant who:
             39828          (a) (i) has completed an approved graduate degree in therapeutic recreation or a
             39829      graduate degree with an approved emphasis in therapeutic recreation; and
             39830          (ii) has completed 4,000 hours of paid experience, as defined by division rule made in
             39831      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             39832      Act, as a licensed therapeutic recreational specialist or as a certified therapeutic recreational
             39833      specialist certified by the National Council for Therapeutic Recreation Certification;
             39834          (b) is of good moral character;
             39835          (c) submits an application;
             39836          (d) pays the required fee; and
             39837          (e) passes an approved examination.
             39838          (2) The division shall issue a license to practice as a therapeutic recreational specialist
             39839      to any applicant who:
             39840          (a) has completed an approved bachelor's or graduate degree in therapeutic recreation,
             39841      a bachelor's or graduate degree with an approved emphasis in therapeutic recreation, or a
             39842      bachelor's or graduate degree with approved additional course work in therapeutic recreation
             39843      after graduation;
             39844          (b) has completed an approved practicum;
             39845          (c) is of good moral character;

             39846          (d) submits an application;
             39847          (e) pays the required fee; and
             39848          (f) passes an approved examination.
             39849          (3) The division shall issue a license to practice as a therapeutic recreational technician
             39850      to any applicant who:
             39851          (a) has received a high school diploma or GED equivalent;
             39852          (b) has completed:
             39853          (i) an approved educational course in therapeutic recreation taught by a licensed master
             39854      therapeutic recreational specialist; or
             39855          (ii) six semester hours or nine quarter hours in therapeutic recreation from an accredited
             39856      college or university;
             39857          (c) has completed an approved practicum under the supervision of a licensed master
             39858      therapeutic recreational specialist or an on-site, full-time employed therapeutic recreational
             39859      specialist;
             39860          (d) is of good moral character;
             39861          (e) submits an application;
             39862          (f) pays the required fee; and
             39863          (g) passes an approved examination.
             39864          Section 881. Section 58-40a-302 is amended to read:
             39865           58-40a-302. Qualifications for licensure.
             39866          The division shall issue a license to practice as an athletic trainer to an applicant who:
             39867          (1) has obtained a bachelor's or advanced degree from an accredited four-year college
             39868      or university and meets the minimum athletic training curriculum requirement established by the
             39869      board by rule;
             39870          (2) has successfully completed the certification examination administered by the Board
             39871      of Certification Inc. or equivalent examination approved or recognized by the board;
             39872          (3) is in good standing with and provides documentation of current certification by the
             39873      Board of Certification Inc. or a nationally recognized credentialing agency approved by the

             39874      board;
             39875          (4) submits an application to the division on a form prescribed by the division; and
             39876          (5) pays the required licensing fee as determined by the department under Section
             39877      [ 63-38-3.2 ] 63J-1-303 .
             39878          Section 882. Section 58-40a-304 is amended to read:
             39879           58-40a-304. Term of license -- Expiration -- Renewal.
             39880          (1) (a) The division shall issue each license for an athletic trainer in accordance with a
             39881      two-year renewal cycle established by rule in accordance with [Title 63, Chapter 46a] Title
             39882      63G, Chapter 3, Utah Administrative Rulemaking Act.
             39883          (b) The division may, by rule, extend or shorten a renewal period by as much as one
             39884      year to stagger the renewal cycles it administers.
             39885          (2) Each license automatically expires on the expiration date shown on the license
             39886      unless the licensee renews it in accordance with Section 58-1-308 .
             39887          Section 883. Section 58-41-5 is amended to read:
             39888           58-41-5. Licensure requirements.
             39889          To obtain and maintain a license as a speech-language pathologist or audiologist, the
             39890      applicant must:
             39891          (1) submit a completed application in the form and content prescribed by the division
             39892      and pay a fee to the department in accordance with Section [ 63-38-3.2 ] 63J-1-303 ;
             39893          (2) be of good moral character;
             39894          (3) provide the committee with verification:
             39895          (a) from the educational institutions involved, that the applicant is the legal holder of a
             39896      doctor's or master's degree or its equivalent in the area of speech-language pathology, speech
             39897      science, or audiology, from an accredited university or college, based on a program of studies
             39898      primarily in the field of speech-language pathology, speech sciences, or audiology; and
             39899          (b) that [he] the applicant has had training and experience in treating and managing the
             39900      major communication disabilities identified in speech-language pathology or audiology;
             39901          (4) be in compliance with the regulations of conduct and codes of ethics for the

             39902      profession of speech-language pathology and audiology;
             39903          (5) submit to the board certified evidence of having completed at least one year of
             39904      professional experience (at least 30 hours per week for an academic year) of direct clinical
             39905      experience in treatment and management of patients. That treatment and management shall be
             39906      supervised and attested by one holding a license under this chapter, the CCC, or their full
             39907      equivalent;
             39908          (6) submit transcripts to the board from the educational institutions involved, indicating
             39909      a doctor's or master's degree from an accredited program or satisfactory completion of at least
             39910      90 quarter hours in speech or hearing disorders, of which at least 50 shall be for graduate level
             39911      credit. No less than nine and no more than 12 quarter hours shall be in basic and clinical
             39912      audiology for persons applying for the license in speech-language pathology. No less than nine
             39913      and no more than 12 quarter hours shall be in basic and functional speech-language pathology
             39914      for persons applying for a license in audiology. No more than three-quarter hours shall be in
             39915      thesis or student research; and
             39916          (7) pass a nationally standardized examination in speech-language pathology or
             39917      audiology which is the same as or equivalent to the examination required for the CCC and with
             39918      pass-fail criteria equivalent to current ASHA standards. The board may, in its discretion,
             39919      require an applicant to pass an acceptable practical demonstration of clinical skills to an
             39920      examining committee of licensed speech-language pathologists appointed by the board.
             39921          Section 884. Section 58-41-13 is amended to read:
             39922           58-41-13. Fees.
             39923          The department shall set fees in cooperation with the board and in accordance with
             39924      Section [ 63-38-3.2 ] 63J-1-303 and shall collect all fees.
             39925          Section 885. Section 58-42a-302 is amended to read:
             39926           58-42a-302. Qualifications for licensure.
             39927          (1) All applicants for licensure as an occupational therapist shall:
             39928          (a) submit an application in a form as prescribed by the division;
             39929          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;

             39930          (c) be of good moral character as it relates to the functions and responsibilities of the
             39931      practice of occupational therapy;
             39932          (d) graduate with a bachelors or graduate degree in occupational therapy from a
             39933      program accredited by the Accreditation Council for Occupational Therapy Education; and
             39934          (e) be certified by the National Board for Certification in Occupational Therapy as an
             39935      occupational therapist registered.
             39936          (2) All applicants for licensure as an occupational therapist assistant shall:
             39937          (a) submit an application in a form as prescribed by the division;
             39938          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             39939          (c) be of good moral character as it relates to the functions and responsibilities of the
             39940      practice of occupational therapy;
             39941          (d) graduate with a two-year associate degree in occupational therapy from a program
             39942      accredited by the Accreditation Council for Occupational Therapy Education; and
             39943          (e) be certified by the National Board for Certification in Occupational Therapy as a
             39944      certified occupational therapist assistant.
             39945          Section 886. Section 58-44a-102 is amended to read:
             39946           58-44a-102. Definitions.
             39947          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             39948          (1) "Administrative penalty" means a monetary fine imposed by the division for acts or
             39949      omissions determined to constitute unprofessional or unlawful conduct in accordance with a fine
             39950      schedule established by rule and as a result of an adjudicative proceeding conducted in
             39951      accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             39952          (2) "Board" means the Certified Nurse Midwife Board created in Section 58-44a-201 .
             39953          (3) "Consultation and Referral Plan" means a written plan jointly developed by a
             39954      certified nurse midwife, as defined in Subsection (6), and a consulting physician that permits the
             39955      certified nurse midwife to prescribe schedule II-III controlled substances in consultation with
             39956      the consulting physician.
             39957          (4) "Consulting physician" means a physician and surgeon or osteopathic physician:

             39958          (a) licensed as a physician;
             39959          (b) qualified by education, training, and current practice in obstetrics, gynecology, or
             39960      both to act as a consulting physician to a nurse midwife practicing under this chapter and
             39961      providing intrapartum care or prescribing Schedule II-III controlled substances; and
             39962          (c) who has agreed under a practice plan to be available to consult with a nurse
             39963      midwife, which plan does not include the consulting physician's being present at the time or
             39964      place the nurse midwife is engaged in practice.
             39965          (5) "Individual" means a natural person.
             39966          (6) "Nurse midwife" means a person licensed under this chapter to engage in practice as
             39967      a certified nurse midwife.
             39968          (7) "Physician" means a physician and surgeon or osteopathic surgeon licensed under
             39969      Title 58, Chapter 67, Utah Medical Practice Act or Chapter 68, Utah Osteopathic Medical
             39970      Practice Act.
             39971          (8) "Practice as a certified nurse midwife" means:
             39972          (a) practice as a registered nurse as defined in Section 58-31b-102 , and as consistent
             39973      with the education, training, experience, and current competency of the licensee; and
             39974          (b) practice of nursing within the generally recognized scope and standards of nurse
             39975      midwifery as defined by rule and consistent with professionally recognized preparations and
             39976      educational standards of a certified nurse midwife by a person licensed under this chapter, which
             39977      practice includes the authority to:
             39978          (i) elicit and record a patient's complete health information, including physical
             39979      examination, history, and laboratory findings commonly used in providing obstetrical,
             39980      gynecological, and well infant services to a patient;
             39981          (ii) assess findings and upon abnormal findings from the history, physical examination,
             39982      or laboratory findings, manage the treatment of the patient, collaborate with the consulting
             39983      physician or another qualified physician, or refer the patient to the consulting physician or to
             39984      another qualified physician as appropriate;
             39985          (iii) diagnose, plan, and implement appropriate patient care, including the administration

             39986      and prescribing of:
             39987          (A) prescription drugs;
             39988          (B) schedule IV-V controlled substances; and
             39989          (C) schedule II-III controlled substances in accordance with a consultation and referral
             39990      plan;
             39991          (iv) evaluate the results of patient care;
             39992          (v) consult as is appropriate regarding patient care and the results of patient care;
             39993          (vi) manage the intrapartum period according to accepted standards of nurse midwifery
             39994      practice and a written practice and referral plan, including performance of routine episiotomy
             39995      and repairs, and administration of anesthesia, including local, pudendal, or paracervical block
             39996      anesthesia, but not including general anesthesia and major conduction anesthesia;
             39997          (vii) manage the postpartum period;
             39998          (viii) provide gynecological services;
             39999          (ix) provide noncomplicated newborn and infant care to the age of one year; and
             40000          (x) represent or hold oneself out as a certified nurse midwife, or nurse midwife, or use
             40001      the title certified nurse midwife, nurse midwife, or the initials C.N.M., N.M., or R.N.
             40002          (9) "Practice and referral plan" means a written plan entered into with a consulting
             40003      physician and detailing guidelines by which a certified nurse midwife consults, collaborates, and
             40004      refers patients.
             40005          (10) "Unlawful conduct" is defined in Sections 58-1-501 and 58-44a-501 .
             40006          (11) "Unlicensed assistive personnel" means any unlicensed person, regardless of title,
             40007      to whom tasks are delegated by a licensed certified nurse midwife in accordance with the
             40008      standards of the profession as defined by rule.
             40009          (12) "Unprofessional conduct" is defined in Sections 58-1-501 and 58-44a-502 and as
             40010      may be further defined by rule.
             40011          Section 887. Section 58-44a-302 is amended to read:
             40012           58-44a-302. Qualifications for licensure.
             40013          (1) An applicant for licensure as a nurse midwife shall:

             40014          (a) submit an application in a form as prescribed by the division;
             40015          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             40016          (c) be of good moral character;
             40017          (d) at the time of application for licensure hold a license in good standing as a registered
             40018      nurse in Utah, or be at that time qualified for a license as a registered nurse under Title 58,
             40019      Chapter 31b, Nurse Practice Act;
             40020          (e) have completed:
             40021          (i) a certified nurse midwifery education program accredited by the American College
             40022      of Nurse Midwives and approved by the division; or
             40023          (ii) a nurse midwifery education program located outside of the United States which is
             40024      approved by the division and is equivalent to a program accredited by the American College of
             40025      Nurse Midwives, as demonstrated by a graduate's being accepted to sit for the national
             40026      certifying examination administered by the American College of Nurse Midwives or its
             40027      designee; and
             40028          (f) have passed examinations established by the division rule in collaboration with the
             40029      board within two years after completion of the approved education program required under
             40030      Subsection (1)(e).
             40031          (2) For purposes of Subsection (1)(e), as of January 1, 2010, the accredited education
             40032      program or it's equivalent must grant a graduate degree, including post-master's certificate, in
             40033      nurse midwifery.
             40034          Section 888. Section 58-44a-402 is amended to read:
             40035           58-44a-402. Authority to assess penalty.
             40036          (1) After a proceeding pursuant to [Title 63, Chapter 46b] Title 63G, Chapter 4,
             40037      Administrative Procedures Act, and Title 58, Chapter 1, Division of Occupational and
             40038      Professional Licensing Act, the division may impose an administrative penalty of up to $10,000
             40039      for unprofessional or unlawful conduct under this chapter in accordance with a fine schedule
             40040      established by rule.
             40041          (2) The assessment of a penalty under this section does not affect any other action the

             40042      division is authorized to take regarding a license issued under this chapter.
             40043          (3) The division may impose an administrative penalty of up to $500 for any violation of
             40044      Subsection 58-44a-501 (2), (3), or (4), consistent with Section 58-44a-503 .
             40045          Section 889. Section 58-46a-302 is amended to read:
             40046           58-46a-302. Qualifications for licensure.
             40047          (1) Each applicant for licensure as a hearing instrument specialist shall:
             40048          (a) submit to the division an application in a form prescribed by the division;
             40049          (b) pay a fee as determined by the division pursuant to Section [ 63-38-3.2 ] 63J-1-303 ;
             40050          (c) be of good moral character;
             40051          (d) (i) have successfully completed 4,000 hours of practice as a hearing instrument
             40052      intern within the state under supervision by a supervising hearing instrument specialist in
             40053      accordance with Section 58-46a-302.5 or an equivalent as approved by the division; or
             40054          (ii) demonstrate successful practice for the equivalent of two years of full-time practice
             40055      as a licensed hearing instrument specialist in another state requiring licensure and practice in
             40056      conformity with defined lawful and professional standards of practice;
             40057          (e) have qualified for and currently hold board certification by the National Board for
             40058      Certification - Hearing Instrument Sciences, or an equivalent certification approved by the
             40059      division in collaboration with the board;
             40060          (f) have passed the Utah Law and Rules Examination for Hearing Instrument
             40061      Specialists; and
             40062          (g) if the applicant holds a hearing instrument intern license, surrender the hearing
             40063      instrument intern license at the time of licensure as a hearing instrument specialist.
             40064          (2) Each applicant for licensure as a hearing instrument intern shall:
             40065          (a) submit to the division an application in a form prescribed by the division;
             40066          (b) pay a fee as determined by the division pursuant to Section [ 63-38-3.2 ] 63J-1-303 ;
             40067          (c) be of good moral character;
             40068          (d) have passed the Utah Law and Rules Examination for Hearing Instrument
             40069      Specialists; and

             40070          (e) present evidence acceptable to the division and the board that the applicant, when
             40071      licensed, will practice as a hearing instrument intern only under supervision of a supervising
             40072      hearing instrument specialist as required under Subsection (1)(d).
             40073          Section 890. Section 58-47b-302 is amended to read:
             40074           58-47b-302. License classifications -- Qualifications for licensure.
             40075          (1) The division shall issue licenses under this chapter in the classifications of:
             40076          (a) massage therapist; and
             40077          (b) massage apprentice.
             40078          (2) Each applicant for licensure as a massage therapist shall:
             40079          (a) submit an application in a form prescribed by the division;
             40080          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             40081          (c) be of good moral character;
             40082          (d) be 18 years of age or older;
             40083          (e) have either:
             40084          (i) (A) graduated from a school of massage having a curriculum which meets standards
             40085      established by division rule made in collaboration with the board; or
             40086          (B) completed equivalent education and training in compliance with division rule; or
             40087          (ii) completed a massage apprenticeship program consisting of a minimum of 1,000
             40088      hours of supervised training over a minimum of 12 months and in accordance with standards
             40089      established by the division by rule made in collaboration with the board; and
             40090          (f) pass examinations established by rule by the division in collaboration with the board.
             40091          (3) Each applicant for licensure as a massage apprentice shall:
             40092          (a) submit an application in a form prescribed by the division;
             40093          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             40094          (c) be of good moral character;
             40095          (d) be 18 years of age or older;
             40096          (e) provide satisfactory evidence to the division that the individual will practice as a
             40097      massage apprentice only under the direct supervision of a licensed massage therapist in good

             40098      standing and who has engaged in the lawful practice of massage therapy as a licensed massage
             40099      therapist for not less than 6,000 hours; and
             40100          (f) successfully complete an examination as required by division rule.
             40101          (4) (a) Any new massage therapist or massage apprentice applicant shall submit
             40102      fingerprint cards in a form acceptable to the division at the time the license application is filed
             40103      and shall consent to a fingerprint background check by the Utah Bureau of Criminal
             40104      Identification and the Federal Bureau of Investigation regarding the application.
             40105          (b) The division shall request the Department of Public Safety to complete a Federal
             40106      Bureau of Investigation criminal background check for each new massage therapist or
             40107      apprentice applicant through the national criminal history system (NCIC) or any successor
             40108      system.
             40109          (c) The cost of the background check and the fingerprinting shall be borne by the
             40110      applicant.
             40111          (5) (a) Any new massage therapist or massage apprentice license issued under this
             40112      section shall be conditional, pending completion of the criminal background check. If the
             40113      criminal background check discloses the applicant has failed to accurately disclose a criminal
             40114      history, the license shall be immediately and automatically revoked.
             40115          (b) Any person whose conditional license has been revoked under Subsection (5)(a)
             40116      shall be entitled to a post-revocation hearing to challenge the revocation. The hearing shall be
             40117      conducted in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             40118      Procedures Act.
             40119          (6) An applicant who successfully completes a fingerprint background check under
             40120      Subsection (4) may not be required by any other state or local government body to submit to a
             40121      second fingerprint background check as a condition of lawfully practicing massage therapy in
             40122      this state.
             40123          Section 891. Section 58-53-103 is amended to read:
             40124           58-53-103. Education and enforcement fund.
             40125          (1) There is created a restricted special revenue fund known as the "Landscape

             40126      Architects Education and Enforcement Fund."
             40127          (2) The fund consists of monies from:
             40128          (a) a surcharge placed on application fees for initial, renewal, and reinstatement
             40129      licensure under this chapter, in an amount established by the division with the collaboration of
             40130      the board in accordance with Section [ 63-38-3.2 ] 63J-1-303 , not to exceed 50% of the
             40131      respective fee; and
             40132          (b) administrative penalties collected pursuant to this chapter.
             40133          (3) The fund shall earn interest, and all interest earned on fund monies shall be
             40134      deposited into the fund.
             40135          (4) The director may, with concurrence of the board, make distributions from the fund
             40136      for the following purposes:
             40137          (a) education and training of licensees under this chapter;
             40138          (b) education and training of the public or other interested persons in matters
             40139      concerning landscape architectural laws and practices; and
             40140          (c) enforcement of this chapter by:
             40141          (i) investigating unprofessional or unlawful conduct; and
             40142          (ii) providing legal representation to the division when the division takes legal action
             40143      against a person engaging in unprofessional or unlawful conduct.
             40144          (5) If the balance in the fund exceeds $100,000 at the close of any fiscal year, the excess
             40145      shall be transferred to the General Fund.
             40146          (6) The division shall report annually to the appropriate appropriations subcommittee of
             40147      the Legislature concerning the fund.
             40148          Section 892. Section 58-53-302 is amended to read:
             40149           58-53-302. Qualifications for licensure.
             40150          (1) Each applicant for licensure as a landscape architect shall:
             40151          (a) submit an application in a form prescribed by the division;
             40152          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             40153          (c) provide satisfactory evidence of good moral character;

             40154          (d) (i) have graduated and received an earned bachelors or masters degree from a
             40155      landscape architecture program meeting criteria established by rule by the division in
             40156      collaboration with the board; or
             40157          (ii) have completed not less than eight years of supervised practical experience in
             40158      landscape architecture which meets the requirements established by rule by the division in
             40159      collaboration with the board; and
             40160          (e) have successfully passed examinations established by rule by the division in
             40161      collaboration with the board.
             40162          (2) Satisfactory completion of each year of a landscape architectural program described
             40163      in Subsection (1)(d)(i) is equivalent to one year of experience for purposes of Subsection
             40164      (1)(d)(ii).
             40165          Section 893. Section 58-53-502 is amended to read:
             40166           58-53-502. Citations -- Penalty for unlawful conduct.
             40167          (1) (a) If upon inspection or investigation, the division concludes that a person has
             40168      violated Subsections 58-1-501 (1)(a) through (d), Section 58-53-501 , or Section 58-53-603 or
             40169      any rule or order issued with respect to Section 58-53-501 , and that disciplinary action is
             40170      appropriate, the director or [his] the director's designee from within the division for each
             40171      alternative respectively, shall promptly issue a citation to the person according to this chapter
             40172      and any pertinent rules, attempt to negotiate a stipulated settlement, or notify the person to
             40173      appear before an adjudicative proceeding conducted under [Title 63, Chapter 46b] Title 63G,
             40174      Chapter 4, Administrative Procedures Act.
             40175          (i) A person who violates Subsections 58-1-501 (1)(a) through (d) or Section 58-53-501
             40176      or any rule or order issued with respect to Section 58-53-501 , as evidenced by an uncontested
             40177      citation, a stipulated settlement, or by a finding of violation in an adjudicative proceeding, may
             40178      be assessed a fine pursuant to Subsection (1)(i) and may, in addition to or in lieu of, be ordered
             40179      to cease and desist from violating Subsections 58-1-501 (1)(a) through (d) or Section 58-53-501
             40180      or any rule or order issued with respect to Section 58-53-501 .
             40181          (ii) Except for a cease and desist order, the licensure sanctions cited in Section

             40182      58-53-401 may not be assessed through a citation.
             40183          (b) A citation shall:
             40184          (i) be in writing;
             40185          (ii) describe with particularity the nature of the violation, including a reference to the
             40186      provision of the chapter, rule, or order alleged to have been violated;
             40187          (iii) clearly state that the recipient must notify the division in writing within 20 calendar
             40188      days of service of the citation if the recipient wishes to contest the citation at a hearing
             40189      conducted under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act;
             40190      and
             40191          (iv) clearly explain the consequences of failure to timely contest the citation or to make
             40192      payment of any fines assessed by the citation within the time specified in the citation.
             40193          (c) The division may issue a notice in lieu of a citation.
             40194          (d) Each citation issued under this section, or a copy of each citation, may be served
             40195      upon any person whom a summons may be served in accordance with the Utah Rules of Civil
             40196      Procedure and may be made personally or upon [his] the person's agent by a division
             40197      investigator or by any person specially designated by the director or by mail.
             40198          (e) If within 20 calendar days from the service of the citation, the person to whom the
             40199      citation was issued fails to request a hearing to contest the citation, the citation becomes the
             40200      final order of the division and is not subject to further agency review. The period to contest a
             40201      citation may be extended by the division for cause.
             40202          (f) The division may refuse to issue or renew, suspend, revoke, or place on probation
             40203      the license of a licensee who fails to comply with a citation after it becomes final.
             40204          (g) The failure of an applicant for licensure to comply with a citation after it becomes
             40205      final is a ground for denial of license.
             40206          (h) No citation may be issued under this section after the expiration of six months
             40207      following the occurrence of any violation.
             40208          (i) The director or [his] the director's designee shall assess fines according to the
             40209      following:

             40210          (i) for a first offense handled pursuant to Subsection (1)(a), a fine of up to $1,000;
             40211          (ii) for a second offense handled pursuant to Subsection (1)(a), a fine of up to $2,000;
             40212      and
             40213          (iii) for any subsequent offense handled pursuant to Subsection (1)(a), a fine of up to
             40214      $2,000 for each day of continued offense.
             40215          (2) An action initiated for a first or second offense which has not yet resulted in a final
             40216      order of the division does not preclude initiation of any subsequent action for a second or
             40217      subsequent offense during the pendency of any preceding action. The final order on a
             40218      subsequent action shall be considered a second or subsequent offense, respectively, provided the
             40219      preceding action resulted in a first or second offense, respectively.
             40220          (3) Any penalty which is not paid may be collected by the director by either referring
             40221      the matter to a collection agency or bringing an action in the district court of the county in
             40222      which the person against whom the penalty is imposed resides or in the county where the office
             40223      of the director is located. Any county attorney or the attorney general of the state shall provide
             40224      legal assistance and advice to the director in any action to collect the penalty. In any action
             40225      brought to enforce the provisions of this section, reasonable attorney's fees and costs shall be
             40226      awarded to the division.
             40227          Section 894. Section 58-54-2 is amended to read:
             40228           58-54-2. Definitions.
             40229          In addition to the definition in Section 58-1-102 , as used in this chapter:
             40230          (1) "Board" means the Radiology Technologist Licensing Board established under this
             40231      chapter.
             40232          (2) "Practice of radiologic technology" means using radiation from a radioactive
             40233      substance, radiology equipment, or any other source, in amounts beyond normal background
             40234      levels, for diagnostic or therapeutic purposes on humans.
             40235          (3) "Radiologist" means a physician certified by the American Board of Radiology, the
             40236      American Osteopathic Board of Radiology, the British Royal College of Radiology, or the
             40237      Canadian College of Physicians and Surgeons.

             40238          (4) "Radiology equipment" means any medical radiation device that emits ionizing or
             40239      nonionizing radiation or detects that radiation for the purpose or intended purpose of:
             40240          (a) diagnosing disease or other medical conditions in humans; or
             40241          (b) treating, curing, mitigating, or preventing disease in humans.
             40242          (5) "Radiology practical technician" means a person licensed under this chapter to
             40243      engage in a practice of radiologic technology performing limited diagnostic radiology
             40244      procedures:
             40245          (a) as defined and permitted by rule in accordance with [Title 63, Chapter 46a] Title
             40246      63G, Chapter 3, Utah Administrative Rulemaking Act; and
             40247          (b) under the supervision of a radiologist or radiology practitioner.
             40248          (6) "Radiology practitioner" means any person or individual licensed in this state as a
             40249      physician and surgeon, osteopathic physician, podiatric physician, chiropractic physician,
             40250      dentist, dental hygienist, or a physician's assistant, nurse practitioner, or nurse specialist
             40251      practicing under the supervision of an approved supervising physician and in accordance with an
             40252      approved protocol and utilization plan.
             40253          (7) "Radiology technologist" means a person licensed under this chapter to engage in
             40254      the practice of radiology technology under the supervision of a radiologist or radiology
             40255      practitioner including the administration of parenteral contrast media, radionucleides, and other
             40256      medications incidental to radiology procedures provided the administrations are under the direct
             40257      supervision of a qualified physician and the technologist is currently certified in
             40258      cardiopulmonary resuscitation (CPR) and appropriate patient care procedures.
             40259          (8) "Unlawful conduct" as defined in Section 58-1-501 includes:
             40260          (a) using any of the following titles if not licensed as a radiology technologist under this
             40261      chapter:
             40262          (i) radiology practical technician;
             40263          (ii) radiology technologist;
             40264          (iii) medical radiographer;
             40265          (iv) radiation therapist; or

             40266          (v) nuclear medicine technologist; and
             40267          (b) using the title "radiology practical technician" if not licensed as a radiology practical
             40268      technician under this chapter.
             40269          (9) "Unprofessional conduct" as defined in Section 58-1-501 and as may be further
             40270      defined by rule includes:
             40271          (a) any act or omission by a person licensed under this chapter that is contrary to the
             40272      instructions of the radiologist or radiology practitioner responsible for supervising the licensee
             40273      and which does or reasonably could pose a threat to the health, safety, or welfare of a patient or
             40274      any other person;
             40275          (b) operating any radiology equipment that is known to be unsafe or not in compliance
             40276      with all applicable state requirements regulating radiology equipment;
             40277          (c) permitting any person to operate any radiology equipment who is not permitted to
             40278      do so under provisions of law or who is incompetent to operate radiology equipment for any
             40279      reason;
             40280          (d) revealing to any unauthorized person any information considered confidential or
             40281      privileged regarding any patient;
             40282          (e) the use of any controlled substance as defined by the statutes of this state except to
             40283      the extent the controlled substance is lawfully prescribed to the licensee and used in accordance
             40284      with the instructions of the prescribing practitioner; and
             40285          (f) willfully and intentionally or negligently making any false statement or entry on any
             40286      patient record or upon any record used to facilitate payment for radiology services.
             40287          Section 895. Section 58-54-5 is amended to read:
             40288           58-54-5. Requirements for licensure.
             40289          (1) Each applicant for licensure as a radiology technologist or radiology practical
             40290      technician shall:
             40291          (a) submit an application in a form prescribed by the division in collaboration with the
             40292      board;
             40293          (b) pay a fee as determined by the department pursuant to Section [ 63-38-3.2 ]

             40294      63J-1-303 ; and
             40295          (c) be of good moral character.
             40296          (2) Each applicant for licensure as a radiology technologist shall, in addition to the
             40297      requirements of Subsection (1):
             40298          (a) be a graduate of an accredited educational program in radiology technology or
             40299      certified by the American Registry of Radiologic Technologists or any equivalent educational
             40300      program approved by the division in collaboration with the board; and
             40301          (b) have passed an examination approved by the division in collaboration with the
             40302      board.
             40303          (3) Each applicant for licensure as a radiology practical technician shall, in addition to
             40304      the requirements of Subsection (1), have passed a basic examination and one or more specialty
             40305      examinations that are competency based, using a task analysis of the scope of practice of
             40306      radiology practical technicians in the state. The basic examination and the speciality
             40307      examination shall be approved by the division in collaboration with the board and the licensing
             40308      board of the profession within which the radiology practical technician will be practicing.
             40309          (4) The division shall provide for administration of the radiology practical technician
             40310      examination not less than monthly at offices designated by the division and located:
             40311          (a) in Salt Lake City; and
             40312          (b) within each local health department jurisdictional area.
             40313          Section 896. Section 58-55-103 is amended to read:
             40314           58-55-103. Construction Services Commission created -- Functions --
             40315      Appointment -- Qualifications and terms of members -- Vacancies -- Expenses --
             40316      Meetings.
             40317          (1) (a) There is created within the division the Construction Services Commission.
             40318          (b) The commission shall:
             40319          (i) with the concurrence of the director, make reasonable rules under [Title 63, Chapter
             40320      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer and enforce this
             40321      chapter which are consistent with this chapter including:

             40322          (A) licensing of various licensees;
             40323          (B) examination requirements and administration of the examinations, to include
             40324      approving and establishing a passing score for applicant examinations;
             40325          (C) standards of supervision for students or persons in training to become qualified to
             40326      obtain a license in the trade they represent; and
             40327          (D) standards of conduct for various licensees;
             40328          (ii) approve or disapprove fees adopted by the division under Section [ 63-38-3.2 ]
             40329      63J-1-303 ;
             40330          (iii) except where the boards conduct them, conduct all administrative hearings not
             40331      delegated to an administrative law judge relating to the licensing of any applicant;
             40332          (iv) except as otherwise provided in Sections 38-11-207 and 58-55-503 , with the
             40333      concurrence of the director, impose sanctions against licensees and certificate holders with the
             40334      same authority as the division under Section 58-1-401 ;
             40335          (v) advise the director on the administration and enforcement of any matters affecting
             40336      the division and the construction industry;
             40337          (vi) advise the director on matters affecting the division budget;
             40338          (vii) advise and assist trade associations in conducting construction trade seminars and
             40339      industry education and promotion; and
             40340          (viii) perform other duties as provided by this chapter.
             40341          (2) (a) Initially the commission shall be comprised of the five members of the
             40342      Contractors Licensing Board and two of the three chair persons from the Plumbers Licensing
             40343      Board, the Alarm System Security and Licensing Board, and the Electricians Licensing Board.
             40344          (b) The terms of office of the commission members who are serving on the Contractors
             40345      Licensing Board shall continue as they serve on the commission.
             40346          (c) Beginning July 1, 2004, the commission shall be comprised of nine members
             40347      appointed by the executive director with the approval of the governor from the following
             40348      groups:
             40349          (i) one member shall be a licensed general engineering contractor;

             40350          (ii) one member shall be a licensed general building contractor;
             40351          (iii) two members shall be licensed residential and small commercial contractors;
             40352          (iv) three members shall be the three chair persons from the Plumbers Licensing Board,
             40353      the Alarm System Security and Licensing Board, and the Electricians Licensing Board; and
             40354          (v) two members shall be from the general public, provided, however that the certified
             40355      public accountant on the Contractors Licensing Board will continue to serve until the current
             40356      term expires, after which both members under this Subsection (2)(c)(v) shall be appointed from
             40357      the general public.
             40358          (3) (a) Except as required by Subsection (3)(b), as terms of current commission
             40359      members expire, the executive director with the approval of the governor shall appoint each
             40360      new member or reappointed member to a four-year term ending June 30.
             40361          (b) Notwithstanding the requirements of Subsection (3)(a), the executive director with
             40362      the approval of the governor shall, at the time of appointment or reappointment, adjust the
             40363      length of terms to stagger the terms of commission members so that approximately 1/2 of the
             40364      commission members are appointed every two years.
             40365          (c) A commission member may not serve more than two consecutive terms.
             40366          (4) The commission shall elect annually one of its members as chair, for a term of one
             40367      year.
             40368          (5) When a vacancy occurs in the membership for any reason, the replacement shall be
             40369      appointed for the unexpired term.
             40370          (6) (a) Members may not receive compensation or benefits for their services, but may
             40371      receive per diem and expenses incurred in the performance of the members' official duties at the
             40372      rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             40373          (b) Members may decline to receive per diem and expenses for their service.
             40374          (7) (a) The commission shall meet at least monthly unless the director determines
             40375      otherwise.
             40376          (b) The director may call additional meetings at the director's discretion, upon the
             40377      request of the chair, or upon the written request of four or more commission members.

             40378          (8) (a) Five members constitute a quorum for the transaction of business.
             40379          (b) If a quorum is present when a vote is taken, the affirmative vote of commission
             40380      members present is the act of the commission.
             40381          (9) The commission shall comply with the procedures and requirements of Title 13,
             40382      Chapter 1, Department of Commerce, and [Title 63, Chapter 46b] Title 63G, Chapter 4,
             40383      Administrative Procedures Act, in all of its adjudicative proceedings.
             40384          Section 897. Section 58-55-302 is amended to read:
             40385           58-55-302. Qualifications for licensure.
             40386          (1) Each applicant for a license under this chapter shall:
             40387          (a) submit an application prescribed by the division;
             40388          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             40389          (c) (i) meet the examination requirements established by rule by the commission with
             40390      the concurrence of the director, except for the classifications of apprentice plumber, residential
             40391      apprentice plumber, and apprentice electrician for whom no examination is required; or
             40392          (ii) if required in Section 58-55-304 , the individual qualifier must pass the required
             40393      examination if the applicant is a business entity;
             40394          (d) if an apprentice, identify the proposed supervisor of the apprenticeship;
             40395          (e) if an applicant for a contractor's license:
             40396          (i) produce satisfactory evidence of financial responsibility, except for a construction
             40397      trades instructor for whom evidence of financial responsibility is not required;
             40398          (ii) produce satisfactory evidence of knowledge and experience in the construction
             40399      industry and knowledge of the principles of the conduct of business as a contractor, reasonably
             40400      necessary for the protection of the public health, safety, and welfare; and
             40401          (iii) be a licensed master electrician if an applicant for an electrical contractor's license
             40402      or a licensed master residential electrician if an applicant for a residential electrical contractor's
             40403      license; or
             40404          (iv) be a journeyman plumber or residential journeyman plumber if an applicant for a
             40405      plumbing contractor's license; and

             40406          (f) if an applicant for a construction trades instructor license, satisfy any additional
             40407      requirements established by rule.
             40408          (2) After approval of an applicant for a contractor's license by the applicable board and
             40409      the division, the applicant shall file the following with the division before the division issues the
             40410      license:
             40411          (a) proof of workers' compensation insurance which covers employees of the applicant
             40412      in accordance with applicable Utah law;
             40413          (b) proof of public liability insurance in coverage amounts and form established by rule
             40414      except for a construction trades instructor for whom public liability insurance is not required;
             40415      and
             40416          (c) proof of registration as required by applicable law with the:
             40417          (i) Utah Department of Commerce;
             40418          (ii) Division of Corporations and Commercial Code;
             40419          (iii) Unemployment Insurance Division in the Department of Workforce Services, for
             40420      purposes of Title 35A, Chapter 4, Employment Security Act;
             40421          (iv) State Tax Commission; and
             40422          (v) Internal Revenue Service.
             40423          (3) In addition to the general requirements for each applicant in Subsection (1),
             40424      applicants shall comply with the following requirements to be licensed in the following
             40425      classifications:
             40426          (a) A journeyman plumber applicant shall produce satisfactory evidence of:
             40427          (i) successful completion of the equivalent of at least four years of full-time training and
             40428      instruction as a licensed apprentice plumber under supervision of a licensed journeyman plumber
             40429      and in accordance with a planned program of training approved by the division;
             40430          (ii) at least eight years of full-time experience approved by the division in collaboration
             40431      with the Plumbers Licensing Board; or
             40432          (iii) satisfactory evidence of meeting the qualifications determined by the board to be
             40433      equivalent to Subsection (3)(a)(i) or (a)(ii).

             40434          (b) A residential journeyman plumber shall produce satisfactory evidence of:
             40435          (i) completion of the equivalent of at least three years of full-time training and
             40436      instruction as a licensed apprentice plumber under the supervision of a licensed residential
             40437      journeyman plumber or licensed journeyman plumber in accordance with a planned program of
             40438      training approved by the division;
             40439          (ii) completion of at least six years of full-time experience in a maintenance or repair
             40440      trade involving substantial plumbing work; or
             40441          (iii) meeting the qualifications determined by the board to be equivalent to Subsection
             40442      (3)(b)(i) or (b)(ii).
             40443          (c) The conduct of licensed apprentice plumbers and their licensed supervisors shall be
             40444      in accordance with the following:
             40445          (i) while engaging in the trade of plumbing, a licensed apprentice plumber shall be under
             40446      the immediate supervision of a licensed journeyman plumber or a licensed residential
             40447      journeyman plumber; and
             40448          (ii) a licensed plumbing apprentice in the fourth through tenth year of training may work
             40449      without supervision for a period not to exceed eight hours in any 24-hour period, but if the
             40450      apprentice does not become a licensed journeyman plumber or licensed residential journeyman
             40451      plumber by the end of the tenth year of apprenticeship, this nonsupervision provision no longer
             40452      applies.
             40453          (d) (i) A master electrician applicant shall produce satisfactory evidence that the
             40454      applicant:
             40455          (A) is a graduate electrical engineer of an accredited college or university approved by
             40456      the division and has one year of practical electrical experience as a licensed apprentice
             40457      electrician;
             40458          (B) is a graduate of an electrical trade school, having received an associate of applied
             40459      sciences degree following successful completion of a course of study approved by the division,
             40460      and has two years of practical experience as a licensed journeyman electrician;
             40461          (C) has four years of practical experience as a journeyman electrician; or

             40462          (D) meets the qualifications determined by the board to be equivalent to Subsection
             40463      (3)(d)(i)(A), (B), or (C).
             40464          (ii) (A) An individual holding a valid Utah license as a master electrician, based on at
             40465      least eight years of practical experience as a licensed apprentice under the supervision of a
             40466      licensed journeyman or master electrician, in effect immediately prior to May 3, 2004, is on and
             40467      after May 3, 2004, considered to hold a current license under this chapter and satisfies the
             40468      requirements of this Subsection (3)(d) for the purpose of renewal or reinstatement of that
             40469      license under Section 58-55-303 .
             40470          (B) An individual who has less than four years of practical experience as a licensed
             40471      apprentice under the supervision of a licensed journeyman or master electrician prior to May 3,
             40472      2004, shall complete the education requirements of Subsection (3)(d)(i)(A) or (B) to qualify for
             40473      licensing as a master electrician.
             40474          (C) An individual who has more than four but less than six years of practical experience
             40475      as a licensed apprentice under the supervision of a licensed journeyman or master electrician
             40476      prior to May 3, 2004, may satisfy the education requirements of Subsection (3)(d)(i)(A) or (B)
             40477      by successfully passing a competency placement test approved by the board and administered at
             40478      a Utah state institution of higher education.
             40479          (D) An individual who has more than six but less than eight years of practical
             40480      experience as a licensed apprentice under the supervision of a licensed journeyman or master
             40481      electrician prior to May 3, 2004, satisfies the education requirements of this Subsection (3)(d)
             40482      by completing the eight-year term of practical experience within a reasonable time frame
             40483      subsequent to May 3, 2004, as established by board rule in accordance with [Title 63, Chapter
             40484      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             40485          (e) A master residential electrician applicant shall produce satisfactory evidence that the
             40486      applicant:
             40487          (i) has at least two years of practical experience as a residential journeyman electrician;
             40488      or
             40489          (ii) meets the qualifications determined by the board to be equivalent to this practical

             40490      experience.
             40491          (f) (i) A journeyman electrician applicant shall produce satisfactory evidence that the
             40492      applicant:
             40493          (A) has successfully completed at least four years of full-time training and instruction as
             40494      a licensed apprentice electrician under the supervision of a master electrician or journeyman
             40495      electrician and in accordance with a planned training program approved by the division;
             40496          (B) has at least eight years of full-time experience approved by the division in
             40497      collaboration with the Electricians Licensing Board; or
             40498          (C) meets the qualifications determined by the board to be equivalent to Subsection
             40499      (3)(f)(i)(A) or (B).
             40500          (ii) An individual holding a valid Utah license as a journeyman electrician, based on at
             40501      least six years of full-time experience approved by the division in collaboration with the
             40502      Electricians Licensing Board in effect immediately prior to May 3, 2004, is on and after May 3,
             40503      2004, considered to hold a current license under this chapter and satisfies the requirements of
             40504      Subsection (3)(f)(i)(B) for the purpose of renewal or reinstatement of that license under Section
             40505      58-55-303 .
             40506          (iii) An individual who has more than six but less than eight years of full-time
             40507      experience approved by the division in collaboration with the Electricians Licensing Board prior
             40508      to May 3, 2004, satisfies the requirements of Subsection (3)(f)(i) by completing the eight-year
             40509      term of practical experience within a reasonable time frame subsequent to May 3, 2004, as
             40510      established by board rule in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             40511      Administrative Rulemaking Act.
             40512          (g) A residential journeyman electrician applicant shall produce satisfactory evidence
             40513      that the applicant:
             40514          (i) has successfully completed two years of training in an electrical training program
             40515      approved by the division;
             40516          (ii) has four years of practical experience in wiring, installing, and repairing electrical
             40517      apparatus and equipment for light, heat, and power under the supervision of a licensed master,

             40518      journeyman, residential master, or residential journeyman electrician; or
             40519          (iii) meets the qualifications determined by the division and applicable board to be
             40520      equivalent to Subsection (3)(g)(i) or (ii).
             40521          (h) The conduct of licensed apprentice electricians and their licensed supervisors shall
             40522      be in accordance with the following:
             40523          (i) A licensed apprentice electrician shall be under the immediate supervision of a
             40524      licensed master, journeyman, residential master, or residential journeyman electrician. An
             40525      apprentice in the fourth year of training may work without supervision for a period not to
             40526      exceed eight hours in any 24-hour period.
             40527          (ii) A licensed master, journeyman, residential master, or residential journeyman
             40528      electrician may have under immediate supervision on a residential project up to three licensed
             40529      apprentice electricians.
             40530          (iii) A licensed master or journeyman electrician may have under immediate supervision
             40531      on nonresidential projects only one licensed apprentice electrician.
             40532          (i) An alarm company applicant shall:
             40533          (i) have a qualifying agent who is an officer, director, partner, proprietor, or manager of
             40534      the applicant who:
             40535          (A) demonstrates 6,000 hours of experience in the alarm company business;
             40536          (B) demonstrates 2,000 hours of experience as a manager or administrator in the alarm
             40537      company business or in a construction business; and
             40538          (C) passes an examination component established by rule by the commission with the
             40539      concurrence of the director;
             40540          (ii) if a corporation, provide:
             40541          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             40542      of all corporate officers, directors, and those responsible management personnel employed
             40543      within the state or having direct responsibility for managing operations of the applicant within
             40544      the state; and
             40545          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards

             40546      of all shareholders owning 5% or more of the outstanding shares of the corporation, except this
             40547      shall not be required if the stock is publicly listed and traded;
             40548          (iii) if a limited liability company, provide:
             40549          (A) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             40550      of all company officers, and those responsible management personnel employed within the state
             40551      or having direct responsibility for managing operations of the applicant within the state; and
             40552          (B) the names, addresses, dates of birth, Social Security numbers, and fingerprint cards
             40553      of all individuals owning 5% or more of the equity of the company;
             40554          (iv) if a partnership, the names, addresses, dates of birth, Social Security numbers, and
             40555      fingerprint cards of all general partners, and those responsible management personnel employed
             40556      within the state or having direct responsibility for managing operations of the applicant within
             40557      the state;
             40558          (v) if a proprietorship, the names, addresses, dates of birth, Social Security numbers,
             40559      and fingerprint cards of the proprietor, and those responsible management personnel employed
             40560      within the state or having direct responsibility for managing operations of the applicant within
             40561      the state;
             40562          (vi) be of good moral character in that officers, directors, shareholders described in
             40563      Subsection (3)(i)(ii)(B), partners, proprietors, and responsible management personnel have not
             40564      been convicted of a felony, a misdemeanor involving moral turpitude, or any other crime that
             40565      when considered with the duties and responsibilities of an alarm company is considered by the
             40566      board to indicate that the best interests of the public are served by granting the applicant a
             40567      license;
             40568          (vii) document that none of the applicant's officers, directors, shareholders described in
             40569      Subsection (3)(i)(ii)(B), partners, proprietors, and responsible management personnel have been
             40570      declared by any court of competent jurisdiction incompetent by reason of mental defect or
             40571      disease and not been restored;
             40572          (viii) document that none of the applicant's officers, directors, shareholders described in
             40573      Subsection (3)(i)(ii)(B), partners, proprietors, and responsible management personnel are

             40574      currently suffering from habitual drunkenness or from drug addiction or dependence;
             40575          (ix) file and maintain with the division evidence of:
             40576          (A) comprehensive general liability insurance in form and in amounts to be established
             40577      by rule by the commission with the concurrence of the director;
             40578          (B) workers' compensation insurance that covers employees of the applicant in
             40579      accordance with applicable Utah law; and
             40580          (C) registration as is required by applicable law with the:
             40581          (I) Division of Corporations and Commercial Code;
             40582          (II) Unemployment Insurance Division in the Department of Workforce Services, for
             40583      purposes of Title 35A, Chapter 4, Employment Security Act;
             40584          (III) State Tax Commission; and
             40585          (IV) Internal Revenue Service; and
             40586          (x) meet with the division and board.
             40587          (j) Each applicant for licensure as an alarm company agent shall:
             40588          (i) submit an application in a form prescribed by the division accompanied by fingerprint
             40589      cards;
             40590          (ii) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             40591          (iii) be of good moral character in that the applicant has not been convicted of a felony,
             40592      a misdemeanor involving moral turpitude, or any other crime that when considered with the
             40593      duties and responsibilities of an alarm company agent is considered by the board to indicate that
             40594      the best interests of the public are served by granting the applicant a license;
             40595          (iv) not have been declared by any court of competent jurisdiction incompetent by
             40596      reason of mental defect or disease and not been restored;
             40597          (v) not be currently suffering from habitual drunkenness or from drug addiction or
             40598      dependence; and
             40599          (vi) meet with the division and board if requested by the division or the board.
             40600          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             40601      Administrative Rulemaking Act, the division may make rules establishing when Federal Bureau

             40602      of Investigation records shall be checked for applicants as an alarm company or alarm company
             40603      agent.
             40604          (5) To determine if an applicant meets the qualifications of Subsections (3)(i)(vi) and
             40605      (3)(j)(iii), the division shall provide an appropriate number of copies of fingerprint cards to the
             40606      Department of Public Safety with the division's request to:
             40607          (a) conduct a search of records of the Department of Public Safety for criminal history
             40608      information relating to each applicant for licensure as an alarm company or alarm company
             40609      agent and each applicant's officers, directors, shareholders described in Subsection (3)(i)(ii)(B),
             40610      partners, proprietors, and responsible management personnel; and
             40611          (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
             40612      requiring a check of records of the F.B.I. for criminal history information under this section.
             40613          (6) The Department of Public Safety shall send to the division:
             40614          (a) a written record of criminal history, or certification of no criminal history record, as
             40615      contained in the records of the Department of Public Safety in a timely manner after receipt of a
             40616      fingerprint card from the division and a request for review of Department of Public Safety
             40617      records; and
             40618          (b) the results of the F.B.I. review concerning an applicant in a timely manner after
             40619      receipt of information from the F.B.I.
             40620          (7) (a) The division shall charge each applicant for licensure as an alarm company or
             40621      alarm company agent a fee, in accordance with Section [ 63-38-3.2 ] 63J-1-303 , equal to the cost
             40622      of performing the records reviews under this section.
             40623          (b) The division shall pay the Department of Public Safety the costs of all records
             40624      reviews, and the Department of Public Safety shall pay the F.B.I. the costs of records reviews
             40625      under this section.
             40626          (8) Information obtained by the division from the reviews of criminal history records of
             40627      the Department of Public Safety and the F.B.I. shall be used or disseminated by the division only
             40628      for the purpose of determining if an applicant for licensure as an alarm company or alarm
             40629      company agent is qualified for licensure.

             40630          (9) (a) An application for licensure under this chapter shall be denied if:
             40631          (i) the applicant has had a previous license, which was issued under this chapter,
             40632      suspended or revoked within one year prior to the date of the applicant's application;
             40633          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             40634          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             40635      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar status,
             40636      performing similar functions, or directly or indirectly controlling the applicant has served in any
             40637      similar capacity with any person or entity which has had a previous license, which was issued
             40638      under this chapter, suspended or revoked within one year prior to the date of the applicant's
             40639      application; or
             40640          (iii) (A) the applicant is an individual or sole proprietorship; and
             40641          (B) any owner or agent acting as a qualifier has served in any capacity listed in
             40642      Subsection (9)(a)(ii)(B) in any entity which has had a previous license, which was issued under
             40643      this chapter, suspended or revoked within one year prior to the date of the applicant's
             40644      application.
             40645          (b) An application for licensure under this chapter shall be reviewed by the appropriate
             40646      licensing board prior to approval if:
             40647          (i) the applicant has had a previous license, which was issued under this chapter,
             40648      suspended or revoked more than one year prior to the date of the applicant's application;
             40649          (ii) (A) the applicant is a partnership, corporation, or limited liability company; and
             40650          (B) any corporate officer, director, shareholder holding 25% or more of the stock in the
             40651      applicant, partner, member, agent acting as a qualifier, or any person occupying a similar status,
             40652      performing similar functions, or directly or indirectly controlling the applicant has served in any
             40653      similar capacity with any person or entity which has had a previous license, which was issued
             40654      under this chapter, suspended or revoked more than one year prior to the date of the applicant's
             40655      application; or
             40656          (iii) (A) the applicant is an individual or sole proprietorship; and
             40657          (B) any owner or agent acting as a qualifier has served in any capacity listed in

             40658      Subsection (9)(b)(ii)(B) in any entity which has had a previous license, which was issued under
             40659      this chapter, suspended or revoked more than one year prior to the date of the applicant's
             40660      application.
             40661          Section 898. Section 58-55-307 is amended to read:
             40662           58-55-307. Confidentiality of records and reports.
             40663          (1) Credit reports, financial statements, and other information submitted to the division
             40664      by or at the request and direction of an applicant or licensee for the purpose of supporting a
             40665      representation of financial responsibility constitute protected records under [Title 63, Chapter 2]
             40666      Title 63G, Chapter 2, Government Records Access and Management Act.
             40667          (2) Notwithstanding [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             40668      Access and Management Act, the records described in Subsection (1) are not open for public
             40669      inspection and are not subject to discovery in civil or administrative proceedings.
             40670          Section 899. Section 58-55-308 is amended to read:
             40671           58-55-308. Scope of practice -- Installation, repair, maintenance, cleaning, or
             40672      replacement of gas appliance or combustion system -- Rules.
             40673          (1) (a) The commission, with the concurrence of the director, may adopt reasonable
             40674      rules pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             40675      Act, to define and limit the scope of practice and operating standards of the classifications and
             40676      subclassifications licensed under this chapter in a manner consistent with established practice in
             40677      the relevant industry.
             40678          (b) The commission and the director may limit the field and scope of operations of a
             40679      licensee under this chapter in accordance with the rules and the public health, safety, and
             40680      welfare, based on the licensee's education, training, experience, knowledge, and financial
             40681      responsibility.
             40682          (2) (a) The work and scope of practice covered by this Subsection (2) is the installation,
             40683      repair, maintenance, cleaning, or replacement of a residential or commercial gas appliance or
             40684      combustion system.
             40685          (b) The provisions of this Subsection (2) apply to any:

             40686          (i) licensee under this chapter whose license authorizes the licensee to perform the work
             40687      described in Subsection (2)(a); and
             40688          (ii) person exempt from licensure under Subsection 58-55-305 (1)(h).
             40689          (c) Any person described in Subsection (2)(b) that performs work described in
             40690      Subsection (2)(a):
             40691          (i) must first receive training and certification as specified in rules adopted by the
             40692      division; and
             40693          (ii) shall ensure that any employee authorized under other provisions of this chapter to
             40694      perform work described in Subsection (2)(a) has first received training and certification as
             40695      specified in rules adopted by the division.
             40696          (d) The division may exempt from the training requirements adopted under Subsection
             40697      (2)(c) a person that has adequate experience, as determined by the division.
             40698          (3) The division may exempt the following individuals from the certification
             40699      requirements adopted under Subsection (2)(c):
             40700          (a) a person who has passed a test equivalent to the level of testing required by the
             40701      division for certification, or has completed an apprenticeship program that teaches the
             40702      installation of gas line appliances and is approved by the Federal Bureau of Apprenticeship
             40703      Training; and
             40704          (b) a person working under the immediate one-to-one supervision of a certified natural
             40705      gas technician or a person exempt from certification.
             40706          (4) This section does not prohibit a licensed specialty contractor from accepting and
             40707      entering into a contract involving the use of two or more crafts or trades if the performance of
             40708      the work in the crafts or trades, other than that in which the contractor is licensed, is incidental
             40709      and supplemental to the work for which the contractor is licensed.
             40710          Section 900. Section 58-55-503 is amended to read:
             40711           58-55-503. Penalty for unlawful conduct -- Citations.
             40712          (1) (a) (i) A person who violates Subsection 58-55-308 (2), Subsection 58-55-501 (1),
             40713      (2), (3), (4), (5), (6), (7), (9), (10), (12), (14), or (15), or Subsection 58-55-504 (2), or who fails

             40714      to comply with a citation issued under this section after it is final, is guilty of a class A
             40715      misdemeanor.
             40716          (ii) As used in this section in reference to Subsection 58-55-504 (2), "person" means an
             40717      individual and does not include a sole proprietorship, joint venture, corporation, limited liability
             40718      company, association, or organization of any type.
             40719          (b) A person who violates the provisions of Subsection 58-55-501 (8) may not be
             40720      awarded and may not accept a contract for the performance of the work.
             40721          (2) A person who violates the provisions of Subsection 58-55-501 (13) is guilty of an
             40722      infraction unless the violator did so with the intent to deprive the person to whom money is to
             40723      be paid of the money received, in which case the violator is guilty of theft, as classified in
             40724      Section 76-6-412 .
             40725          (3) Grounds for immediate suspension of the licensee's license by the division and the
             40726      commission include the issuance of a citation for violation of Subsection 58-55-308 (2), Section
             40727      58-55-501 , or Subsection 58-55-504 (2), or the failure by a licensee to make application to,
             40728      report to, or notify the division with respect to any matter for which application, notification, or
             40729      reporting is required under this chapter or rules adopted under this chapter, including applying
             40730      to the division for a new license to engage in a new specialty classification or to do business
             40731      under a new form of organization or business structure, filing with the division current financial
             40732      statements, notifying the division concerning loss of insurance coverage, or change in qualifier.
             40733          (4) (a) If upon inspection or investigation, the division concludes that a person has
             40734      violated the provisions of Subsection 58-55-308 (2) or Subsections 58-55-501 (1), (2), (3), (9),
             40735      (10), (12), (14), (19), (21), or Subsection 58-55-504 (2), or any rule or order issued with respect
             40736      to these subsections, and that disciplinary action is appropriate, the director or the director's
             40737      designee from within the division shall promptly issue a citation to the person according to this
             40738      chapter and any pertinent rules, attempt to negotiate a stipulated settlement, or notify the person
             40739      to appear before an adjudicative proceeding conducted under [Title 63, Chapter 46b] Title 63G,
             40740      Chapter 4, Administrative Procedures Act.
             40741          (i) A person who is in violation of the provisions of Subsection 58-55-308 (2),

             40742      Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), (19), or (21), or Subsection
             40743      58-55-504 (2), as evidenced by an uncontested citation, a stipulated settlement, or by a finding
             40744      of violation in an adjudicative proceeding, may be assessed a fine pursuant to this Subsection (4)
             40745      and may, in addition to or in lieu of, be ordered to cease and desist from violating Subsection
             40746      58-55-308 (2), Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), (19), or (21), or
             40747      Subsection 58-55-504 (2).
             40748          (ii) Except for a cease and desist order, the licensure sanctions cited in Section
             40749      58-55-401 may not be assessed through a citation.
             40750          (iii) (A) A person who receives a citation or is fined for violating Subsection
             40751      58-55-501 (21) may also be issued a cease and desist order from engaging in work to be
             40752      performed by a contractor licensed under this chapter unless the person meets the continuing
             40753      education requirement within 30 days after receipt of the citation or fine.
             40754          (B) The order, if issued, shall be removed upon the person's completion of the
             40755      continuing education requirement.
             40756          (C) This Subsection (4)(a)(iii) is repealed effective July 1, 2010.
             40757          (b) (i) Each citation shall be in writing and describe with particularity the nature of the
             40758      violation, including a reference to the provision of the chapter, rule, or order alleged to have
             40759      been violated.
             40760          (ii) The citation shall clearly state that the recipient must notify the division in writing
             40761      within 20 calendar days of service of the citation if the recipient wishes to contest the citation at
             40762      a hearing conducted under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             40763      Procedures Act.
             40764          (iii) The citation shall clearly explain the consequences of failure to timely contest the
             40765      citation or to make payment of any fines assessed by the citation within the time specified in the
             40766      citation.
             40767          (c) Each citation issued under this section, or a copy of each citation, may be served
             40768      upon a person upon whom a summons may be served:
             40769          (i) in accordance with the Utah Rules of Civil Procedure;

             40770          (ii) personally or upon the person's agent by a division investigator or by a person
             40771      specially designated by the director; or
             40772          (iii) by mail.
             40773          (d) (i) If within 20 calendar days from the service of a citation, the person to whom the
             40774      citation was issued fails to request a hearing to contest the citation, the citation becomes the
             40775      final order of the division and is not subject to further agency review.
             40776          (ii) The period to contest a citation may be extended by the division for cause.
             40777          (e) The division may refuse to issue or renew, suspend, revoke, or place on probation
             40778      the license of a licensee who fails to comply with a citation after it becomes final.
             40779          (f) The failure of an applicant for licensure to comply with a citation after it becomes
             40780      final is a ground for denial of license.
             40781          (g) No citation may be issued under this section after the expiration of six months
             40782      following the occurrence of any violation.
             40783          (h) Fines shall be assessed by the director or the director's designee according to the
             40784      following:
             40785          (i) for a first offense handled pursuant to Subsection (4)(a), a fine of up to $1,000;
             40786          (ii) for a second offense handled pursuant to Subsection (4)(a), a fine of up to $2,000;
             40787      and
             40788          (iii) for any subsequent offense handled pursuant to Subsection (4)(a), a fine of up to
             40789      $2,000 for each day of continued offense.
             40790          (i) (i) For purposes of issuing a final order under this section and assessing a fine under
             40791      Subsection (4)(i), an offense constitutes a second or subsequent offense if:
             40792          (A) the division previously issued a final order determining that a person committed a
             40793      first or second offense in violation of Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2),
             40794      (3), (9), (10), (12), (14), or (19), or Subsection 58-55-504 (2); or
             40795          (B) (I) the division initiated an action for a first or second offense;
             40796          (II) no final order has been issued by the division in the action initiated under
             40797      Subsection (4)(i)(i)(B)(I);

             40798          (III) the division determines during an investigation that occurred after the initiation of
             40799      the action under Subsection (4)(i)(i)(B)(I) that the person committed a second or subsequent
             40800      violation of the provisions of Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2), (3), (9),
             40801      (10), (12), (14), or (19), or Subsection 58-55-504 (2); and
             40802          (IV) after determining that the person committed a second or subsequent offense under
             40803      Subsection (4)(i)(i)(B)(III), the division issues a final order on the action initiated under
             40804      Subsection (4)(i)(i)(B)(I).
             40805          (ii) In issuing a final order for a second or subsequent offense under Subsection
             40806      (4)(i)(i), the division shall comply with the requirements of this section.
             40807          (5) (a) A penalty imposed by the director under Subsection (4)(h) shall be deposited
             40808      into the Commerce Service Fund.
             40809          (b) A penalty which is not paid may be collected by the director by either referring the
             40810      matter to a collection agency or bringing an action in the district court of the county in which
             40811      the person against whom the penalty is imposed resides or in the county where the office of the
             40812      director is located.
             40813          (c) A county attorney or the attorney general of the state is to provide legal assistance
             40814      and advice to the director in any action to collect the penalty.
             40815          (d) In an action brought to enforce the provisions of this section, reasonable attorney's
             40816      fees and costs shall be awarded.
             40817          Section 901. Section 58-56-4 is amended to read:
             40818           58-56-4. Definitions -- Adoption of building codes -- Amendments -- Approval of
             40819      other codes -- Exemptions.
             40820          (1) As used in this section:
             40821          (a) "agricultural use" means a use that relates to the tilling of soil and raising of crops,
             40822      or keeping or raising domestic animals;
             40823          (b) "not for human occupancy" means use of a structure for purposes other than
             40824      protection or comfort of human beings, but allows people to enter the structure for:
             40825          (i) maintenance and repair; and

             40826          (ii) the care of livestock, crops, or equipment intended for agricultural use which are
             40827      kept there; and
             40828          (c) "residential area" means land that is not used for an agricultural use and is:
             40829          (i) (A) within the boundaries of a city or town; and
             40830          (B) less than five contiguous acres;
             40831          (ii) (A) within a subdivision for which the county has approved a subdivision plat under
             40832      Title 17, Chapter 27a, Part 6, Subdivisions; and
             40833          (B) less than two contiguous acres; or
             40834          (iii) not located in whole or in part in an agricultural protection area created under Title
             40835      17, Chapter 41, Agriculture Protection Area.
             40836          (2) (a) Subject to the provisions of Subsections (4) and (5), the following codes, each
             40837      of which must be promulgated by a nationally recognized code authority, shall be adopted, in
             40838      the manner described in Subsection (2)(b), as the construction codes which the state and each
             40839      political subdivision of the state shall follow in the circumstances described in Subsection (3):
             40840          (i) a building code;
             40841          (ii) the National Electrical Code promulgated by the National Fire Protection
             40842      Association;
             40843          (iii) a residential one and two family dwelling code;
             40844          (iv) a plumbing code;
             40845          (v) a mechanical code;
             40846          (vi) a fuel gas code;
             40847          (vii) an energy conservation code; and
             40848          (viii) a manufactured housing installation standard code.
             40849          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             40850      Administrative Rulemaking Act, the division, in collaboration with the commission, shall adopt
             40851      by rule specific editions of the codes described in Subsection (2)(a), and may adopt by rule
             40852      successor editions of any adopted code.
             40853          (c) The division, in collaboration with the commission, may, in accordance with Section

             40854      58-56-7 , adopt amendments to the codes adopted under Subsection (2)(a), to be applicable to
             40855      the entire state or within one or more political subdivisions.
             40856          (3) Subject to the provisions of Subsections (4) and (5), the codes and amendments
             40857      adopted under Subsection (2) shall be followed when:
             40858          (a) new construction is involved;
             40859          (b) the owner of an existing building, or the owner's agent, is voluntarily engaged in:
             40860          (i) the repair, renovation, remodeling, alteration, enlargement, rehabilitation,
             40861      conservation, or reconstruction of the building; or
             40862          (ii) changing the character or use of the building in a manner which increases the
             40863      occupancy loads, other demands, or safety risks of the building.
             40864          (4) (a) The division, in collaboration with the commission, has discretion to approve,
             40865      without adopting, certain codes in addition to those described in Subsection (2)(a), including
             40866      specific editions of the codes, for use by a compliance agency.
             40867          (b) If the applicable code is one which the division has approved under Subsection
             40868      (4)(a), a compliance agency has the discretion to:
             40869          (i) adopt an ordinance requiring removal, demolition, or repair of a building, according
             40870      to a code;
             40871          (ii) adopt, by ordinance or rule, a dangerous building code; or
             40872          (iii) adopt, by ordinance or rule, a building rehabilitation code.
             40873          (5) (a) Except in a residential area, a structure used solely in conjunction with
             40874      agriculture use, and not for human occupancy, is exempted from the permit requirements of any
             40875      code adopted by the division.
             40876          (b) Notwithstanding Subsection (5)(a), unless otherwise exempted, plumbing, electrical,
             40877      and mechanical permits may be required when that work is included in the structure.
             40878          Section 902. Section 58-56-7 is amended to read:
             40879           58-56-7. Code amendments -- Commission recommendations -- Division duties
             40880      and responsibilities.
             40881          (1) The division, with the commission, shall establish by rule the procedure and manner

             40882      under which requests for amendments to codes under Subsection 58-56-4 (2)(c) shall be:
             40883          (a) filed with the division; and
             40884          (b) recommended or declined for adoption.
             40885          (2) The division shall accept from any local regulators, state regulators, state agencies
             40886      involved with the construction and design of buildings, the contractors, plumbers, or electricians
             40887      licensing boards, or from recognized construction-related associations a request for amendment
             40888      to the codes under Subsection 58-56-4 (2)(c).
             40889          (3) The division may make recommendations to the commission for amendments to
             40890      codes under Subsection 58-56-4 (2)(c). The commission may also consider amendments on its
             40891      own initiative.
             40892          (4) On May 15 and November 15 of each calendar year, or the first government
             40893      working day thereafter if either date falls on a weekend or government holiday, the division
             40894      shall convene a public hearing, as a part of the rulemaking process, before the commission
             40895      concerning requests for amendment of the codes, recommended by the division and commission
             40896      to be adopted by rule. The hearing shall be conducted in accordance with the rules of the
             40897      commission.
             40898          (5) Within 15 days following completion of the hearing under Subsection (4), the
             40899      commission shall provide to the division a written recommendation concerning each
             40900      amendment.
             40901          (6) The division shall consider the recommendations and promulgate amendments by
             40902      rule in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             40903      Rulemaking Act and as prescribed by the director.
             40904          (7) The decision of the division to accept or reject the recommendation of the
             40905      commission shall be made within 15 days after receipt of the recommendation.
             40906          (8) All decisions of the division pertaining to adoption of a code edition or amendments
             40907      to any code, which are contrary to recommendations of the commission, may be overridden by a
             40908      two-thirds vote of the commission according to a procedure to be established by rule.
             40909          (9) (a) Amendments with statewide application:

             40910          (i) shall be effective on the January 1 or July 1 following the public hearing or as soon
             40911      after that date as the requirements of [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             40912      Administrative Rulemaking Act, are met; or
             40913          (ii) may be effective prior to the dates in Subsection (9)(a)(i) if designated by the
             40914      division and the commission as necessary for the public health, safety, and welfare.
             40915          (b) Amendments with local application only shall be effective on a date to be
             40916      determined by the division and the commission.
             40917          (c) In making rules required by this chapter, the division shall comply with the
             40918      provisions of [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             40919      Act. The provisions of that chapter shall have control over this section in case of any conflict.
             40920          Section 903. Section 58-56-9.3 is amended to read:
             40921           58-56-9.3. Unprofessional conduct.
             40922          Unprofessional conduct is as defined in Subsection 58-1-501 (2) and includes:
             40923          (1) knowingly failing to inspect or issue correction notices for code violations which
             40924      when left uncorrected would constitute a hazard to the public health and safety and knowingly
             40925      failing to require that correction notices are complied with as a building inspector;
             40926          (2) the use of alcohol or the illegal use of drugs while performing duties as a building
             40927      inspector or at any time to the extent that the inspector is physically or mentally impaired and
             40928      unable to effectively perform the duties of an inspector;
             40929          (3) gross negligence in the performance of official duties as a building inspector;
             40930          (4) the personal use of information or knowingly revealing information to unauthorized
             40931      persons when that information has been obtained by a building inspector as a result of the
             40932      inspector's employment, work, or position as an inspector;
             40933          (5) unlawful acts or practices which are clearly unethical under generally recognized
             40934      standards of conduct of a building inspector;
             40935          (6) engaging in fraud or knowingly misrepresenting a fact relating to the performance of
             40936      duties and responsibilities as a building inspector;
             40937          (7) a building inspector knowingly failing to require that all plans, specifications,

             40938      drawings, documents, and reports be stamped by architects, professional engineers, or both as
             40939      established by law;
             40940          (8) a building inspector knowingly failing to report to the division an act or omission of
             40941      a licensee under Title 58, Chapter 55, Utah Construction Trades Licensing Act, which when left
             40942      uncorrected constitutes a hazard to public health and safety;
             40943          (9) a building inspector knowingly failing to report to the division unlicensed practice
             40944      persons who are required to be licensed under Title 58, Chapter 55, Utah Construction Trades
             40945      Licensing Act;
             40946          (10) a building inspector's approval of work which materially varies from approved
             40947      documents that have been stamped by an architect, professional engineer, or both unless
             40948      authorized by the licensed architect, professional engineer, or both;
             40949          (11) a building inspector failing to produce verification of current licensure and current
             40950      certifications for the codes adopted under rules of the division upon request of the division, a
             40951      compliance agency, or a contractor or property owner whose work is being inspected;
             40952          (12) nondelivery of goods or services by a registered dealer which constitutes a breach
             40953      of contract by the dealer;
             40954          (13) the failure of a registered dealer to pay a subcontractor or supplier any amounts to
             40955      which that subcontractor or supplier is legally entitled; and
             40956          (14) any other activity which is defined as unprofessional conduct by division rule in
             40957      accordance with the provisions of [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             40958      Administrative Rulemaking Act.
             40959          Section 904. Section 58-56-9.5 is amended to read:
             40960           58-56-9.5. Penalty for unlawful conduct -- Citations.
             40961          (1) A person who violates a provision of Section 58-56-9.1 or who fails to comply with
             40962      a citation issued under this section after it is final is guilty of a class A misdemeanor.
             40963          (2) Grounds for immediate suspension of a licensee's license by the division under this
             40964      chapter include:
             40965          (a) the issuance of a citation for violation of a provision of Section 58-56-9.1 ; and

             40966          (b) failure by a licensee to make application to, report to, or notify the division with
             40967      respect to a matter for which application, notification, or reporting is required under this chapter
             40968      or rules made under this chapter by the division.
             40969          (3) (a) If upon inspection or investigation, the division concludes that a person has
             40970      violated a provision of Section 58-56-9.1 , or a rule or order issued with respect to that section,
             40971      and that disciplinary action is appropriate, the director or the director's designee from within the
             40972      division shall:
             40973          (i) promptly issue a citation to the person according to this chapter and any pertinent
             40974      rules;
             40975          (ii) attempt to negotiate a stipulated settlement; or
             40976          (iii) notify the person to appear before an adjudicative proceeding conducted under
             40977      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             40978          (b) (i) A person who violates a provision of Section 58-56-9.1 , as evidenced by an
             40979      uncontested citation, a stipulated settlement, or by a finding of violation in an adjudicative
             40980      proceeding, may be assessed a fine under this Subsection (3)(b) and may, in addition to or
             40981      instead of the fine, be ordered by the division to cease from violating the provision.
             40982          (ii) Except as otherwise provided in Subsection (2)(a), the division may not assess
             40983      licensure sanctions referred to in Subsection 58-56-9 (1)(c) through a citation.
             40984          (c) (i) Each citation shall be in writing and describe with particularity the nature of the
             40985      violation, including a reference to the provision of the chapter, rule, or order alleged to have
             40986      been violated.
             40987          (ii) The citation shall clearly state that the recipient must notify the division in writing
             40988      within 20 calendar days of service of the citation if the recipient wishes to contest the citation at
             40989      a hearing conducted under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             40990      Procedures Act.
             40991          (iii) The citation shall clearly explain the consequences of failure to timely contest the
             40992      citation or to make payment of any fines assessed by the citation within the time specified in the
             40993      citation.

             40994          (d) Each citation issued under this section, or a copy of each citation, may be served
             40995      upon any person upon whom a summons may be served:
             40996          (i) in accordance with the Utah Rules of Civil Procedure;
             40997          (ii) personally or upon the person's agent by a division investigator or by any person
             40998      specially designated by the director; or
             40999          (iii) by mail.
             41000          (e) (i) If within 20 calendar days from the service of a citation, the person to whom the
             41001      citation was issued fails to request a hearing to contest the citation, the citation becomes the
             41002      final order of the division and is not subject to further agency review.
             41003          (ii) The period to contest a citation may be extended by the division for cause.
             41004          (f) The division may refuse to issue or renew, suspend, revoke, or place on probation
             41005      the license of a licensee who fails to comply with a citation after it becomes final.
             41006          (g) The failure of an applicant for licensure to comply with a citation after it becomes
             41007      final is a ground for denial of a license.
             41008          (h) No citation may be issued under this section after the expiration of six months
             41009      following the occurrence of the violation.
             41010          (i) The director or the director's designee may assess fines for violations of Section
             41011      58-56-9.1 as follows:
             41012          (i) for a first offense determined under this Subsection (3), a fine of up to $1,000;
             41013          (ii) for a second offense, a fine of up to $2,000; and
             41014          (iii) for any subsequent offense, a fine of up to $2,000 for each day of continued
             41015      offense.
             41016          (j) For the purposes of issuing a final order under this section and assessing a fine under
             41017      Subsection (3)(i), an offense constitutes a second or subsequent offense if:
             41018          (i) the division previously issued a final order determining that a person committed a
             41019      first or second offense in violation of a provision of Section 58-56-9.1 ; or
             41020          (ii) (A) the division initiated an action for a first or second offense;
             41021          (B) no final order has been issued by the division in the action initiated under

             41022      Subsection (3)(j)(ii)(A);
             41023          (C) the division determines during an investigation that occurred after the initiation of
             41024      the action under Subsection (3)(j)(ii)(A) that the person committed a second or subsequent
             41025      violation of a provision of Section 58-56-9.1 ; and
             41026          (D) after determining that the person committed a second or subsequent offense under
             41027      Subsection (3)(j)(ii)(C), the division issues a final order on the action initiated under Subsection
             41028      (3)(j)(ii)(A).
             41029          (k) In issuing a final order for a second or subsequent offense under Subsection (3)(j),
             41030      the division shall comply with the requirements of this section.
             41031          (4) (a) Proceeds from a fine imposed under Subsection (3)(i) shall be deposited in the
             41032      Commerce Service Fund.
             41033          (b) The director may collect an unpaid fine by:
             41034          (i) referring the matter to a collection agency; or
             41035          (ii) bringing an action in the district court of the county in which the person resides or in
             41036      the county where the director's office is located.
             41037          (c) (i) The state's attorney general or a county attorney shall provide legal assistance
             41038      and advice to the director in an action brought under Subsection (4)(b).
             41039          (ii) Reasonable attorney's fees and costs shall be awarded in an action brought to
             41040      enforce the provisions of this section.
             41041          Section 905. Section 58-56-16 is amended to read:
             41042           58-56-16. Registration of dealers -- Bonding requirements -- Renewal --
             41043      Exemptions -- Discipline.
             41044          (1) Each person engaged in the sale of factory built housing in the state, except as
             41045      provided in Subsection (4), shall register with the division as a dealer.
             41046          (2) Each applicant for registration under this section shall:
             41047          (a) submit an application in a form prescribed by the division;
             41048          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ; and
             41049          (c) provide the division with a registration bond in accordance with rules established by

             41050      the division.
             41051          (3) (a) The division shall issue each registration under this section in accordance with a
             41052      two-year renewal cycle established by rule.
             41053          (b) The division may by rule extend or shorten a renewal cycle by as much as one year
             41054      to stagger the renewal cycles it administers.
             41055          (c) Each registration under this section automatically expires on the expiration date on
             41056      the certificate of registration unless the registrant renews it in accordance with Section
             41057      58-1-308 .
             41058          (4) Subsection (1) does not apply to:
             41059          (a) a person not regularly engaged in the sale of factory built housing who is selling a
             41060      unit [he] the person owns for [his] the person's own account;
             41061          (b) a principal broker licensed under Title 61, Chapter 2, Division of Real Estate; or
             41062          (c) a sales agent or associate broker licensed under Title 61, Chapter 2, Division of Real
             41063      Estate, who sells factory built housing as an agent for, and under the supervision[,] of, the
             41064      licensed principal broker with whom [he] the sales agent or associate broker is affiliated.
             41065          (5) Grounds for refusing to issue a registration, for refusing to renew a registration, for
             41066      revoking, suspending, restricting, or placing on probation a registration, for issuing a public or
             41067      private reprimand to a registrant, and for issuing a cease and desist order shall be in accordance
             41068      with Section 58-1-401 .
             41069          Section 906. Section 58-57-4 is amended to read:
             41070           58-57-4. Qualifications for a license.
             41071          (1) The division shall issue a respiratory care practitioner license to an applicant who
             41072      meets the requirements specified in this section.
             41073          (2) An applicant seeking licensure as a respiratory care practitioner shall:
             41074          (a) submit an application on a form prescribed by the division;
             41075          (b) pay a fee as determined by the department pursuant to Section [ 63-38-3.2 ]
             41076      63J-1-303 ;
             41077          (c) show evidence of good moral character;

             41078          (d) possess a high school education or its equivalent, as determined by the division in
             41079      collaboration with the board;
             41080          (e) have completed a respiratory care practitioner educational program that is
             41081      accredited by a nationally accredited organization acceptable to the division as defined by rule;
             41082      and
             41083          (f) pass an examination approved by the division in collaboration with the board.
             41084          Section 907. Section 58-57-14 is amended to read:
             41085           58-57-14. Unlawful conduct -- Penalty.
             41086          (1) Beginning January 1, 2007, "unlawful conduct" includes:
             41087          (a) using the following titles, names, or initials, if the user is not properly licensed under
             41088      this chapter:
             41089          (i) respiratory care practitioner;
             41090          (ii) respiratory therapist; and
             41091          (iii) respiratory technician; and
             41092          (b) using any other name, title, or initials that would cause a reasonable person to
             41093      believe the user is licensed under this chapter if the user is not properly licensed under this
             41094      chapter.
             41095          (2) Any person who violates the unlawful conduct provision specifically defined in
             41096      Subsection 58-1-501 (1)(a) is guilty of a third degree felony.
             41097          (3) Any person who violates any of the unlawful conduct provisions specifically defined
             41098      in Subsections 58-1-501 (1)(b) through (f) and Subsection (1) of this section is guilty of a class
             41099      A misdemeanor.
             41100          (4) After a proceeding pursuant to [Title 63, Chapter 46b] Title 63G, Chapter 4,
             41101      Administrative Procedures Act, and Title 58, Chapter 1, Division of Occupational and
             41102      Professional Licensing Act, the division may assess administrative penalties for acts of
             41103      unprofessional or unlawful conduct or any other appropriate administrative action.
             41104          Section 908. Section 58-59-302 is amended to read:
             41105           58-59-302. Registration process.

             41106          (1) A person engaged in practice as a professional employer organization shall register
             41107      under this chapter. A person registering or renewing a registration as a professional employer
             41108      organization shall:
             41109          (a) (i) submit an application in a form prescribed by the division; or
             41110          (ii) file a certification in accordance with Subsection (2); and
             41111          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 .
             41112          (2) (a) A person may comply with Subsection (1) by filing with the division:
             41113          (i) a certification that an assurance organization certifies the qualifications of the PEO;
             41114          (ii) the information required by Subsections 58-59-303.5 (1)(a) through (c); and
             41115          (iii) any changes to the information required by Subsection (2)(a)(ii) within 30 days of
             41116      the day on which the information changes.
             41117          (b) A PEO that meets the requirements of Subsection (1) by complying with this
             41118      Subsection (2) is not required:
             41119          (i) to renew its registration until the day on which the assurance organization no longer
             41120      certifies the qualifications of the PEO; and
             41121          (ii) to provide the information in Subsections 58-59-303.5 (1)(d) through (f).
             41122          (c) If a PEO that meets the requirements of Subsection (1) by complying with
             41123      Subsection (2) receives a new or renewed certification by the assurance organization, the PEO
             41124      shall file with the division a new certification within 30 days from the day on which the PEO
             41125      receives the new or renewed certification from the assurance organization.
             41126          (d) This Subsection (2) does not modify the division's authority or responsibility to
             41127      accept, renew, or terminate a registration.
             41128          (e) (i) If a PEO authorizes an assurance organization to act on behalf of the PEO for
             41129      purposes of registration under this Subsection (2), the division shall accept the assurance
             41130      organization's filing of the information required by Subsection (2)(a)(ii), (2)(a)(iii), or (2)(b) if
             41131      the information otherwise complies with this Subsection (2) and division rules.
             41132          (ii) Notwithstanding Subsection (2)(e)(i), if the assurance organization fails to make a
             41133      required filing under this Subsection (2), the PEO's registration may be not accepted, not

             41134      renewed, or terminated.
             41135          (3) (a) Any two or more professional employer organizations held under the common
             41136      control of any other person or persons acting in concert may be registered as a professional
             41137      employer organization group.
             41138          (b) A professional employer organization group may satisfy any reporting and financial
             41139      requirements under this chapter on a consolidated basis.
             41140          (4) An organization engaged in the business of providing professional employer services
             41141      is subject to registration under this chapter regardless of its use of the term:
             41142          (a) "professional employer organization";
             41143          (b) "PEO";
             41144          (c) "staff leasing company";
             41145          (d) "registered staff leasing company";
             41146          (e) "employee leasing company"; or
             41147          (f) any other name.
             41148          Section 909. Section 58-59-302.5 is amended to read:
             41149           58-59-302.5. Assurance organization.
             41150          (1) The division shall designate one or more assurance organizations by rule:
             41151          (a) consistent with this section; and
             41152          (b) made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             41153      Administrative Rulemaking Act.
             41154          (2) The division shall require that an assurance organization designated by the division
             41155      be licensed by one or more states other than Utah to certify the qualifications of a PEO.
             41156          (3) The qualifications certified by an assurance organization designated by the division
             41157      shall include at a minimum that a PEO:
             41158          (a) ensure that each controlling person of the PEO:
             41159          (i) be competent to manage a PEO;
             41160          (ii) be responsible in the controlling person's finances; and
             41161          (iii) not have a history of or be engaged in unlawful activities;

             41162          (b) have a history that is verifiable that the PEO:
             41163          (i) complies with regulatory requirements; and
             41164          (ii) engages in financially responsible conduct;
             41165          (c) has or is able to obtain audited financial statements;
             41166          (d) has an adjusted net worth equal to or in excess of the greater of:
             41167          (i) $100,000; or
             41168          (ii) 5% of total adjusted liabilities;
             41169          (e) has liquid assets that are sufficient to pay short-term liabilities as demonstrated by a
             41170      ratio determined by dividing current assets by current liabilities or a similar formula;
             41171          (f) has on its books adequate financial reserves for all local, state, and federal
             41172      self-insurance and any insurance policy or plan in which the final cost of coverage is affected by
             41173      claim losses;
             41174          (g) operates in conformity with all applicable laws and regulations including those laws
             41175      and regulations in addition to this chapter;
             41176          (h) does not engage in deceptive trade practices or misrepresentations of an employer's
             41177      obligation or liability;
             41178          (i) has a written professional employer agreement with each client;
             41179          (j) has or is willing to obtain a written acknowledgment, as part of an existing form or
             41180      separately, from each covered employee stating that the covered employee understands and
             41181      accepts the nature, terms, and conditions of the coemployment relationship;
             41182          (k) establishes and maintains a coemployment relationship by assuming key employer
             41183      attributes with respect to covered employees as demonstrated by the professional employer
             41184      agreement and employment forms, policies, and procedures;
             41185          (l) provides all covered employees with a written copy of the PEO's employment
             41186      policies and procedures;
             41187          (m) ensures that all covered employees are covered in a regulatory compliant manner by
             41188      workers' compensation insurance;
             41189          (n) does not knowingly use the coemployment relationship to assist a client to evade or

             41190      avoid the client's obligations under:
             41191          (i) the National Labor Relations Act, 29 U.S.C. Sec. 151 et seq.;
             41192          (ii) the federal Railway Labor Act, 45 U.S.C. Sec. 151 et seq.; or
             41193          (iii) any collective bargaining agreement;
             41194          (o) except through a licensed insurance agent, does not:
             41195          (i) represent or imply that it can sell insurance;
             41196          (ii) attempt to sell insurance; or
             41197          (iii) sell insurance;
             41198          (p) markets and provides, or is willing to market and provide professional employer
             41199      organization services under a separate and distinct trade name from any affiliated PEO that is
             41200      not certified by the assurance organization;
             41201          (q) does not allow any person not certified by the assurance organization to use the
             41202      PEO's trade name in the sale or delivery of the PEO's professional employer organization
             41203      services;
             41204          (r) does not guarantee, participate in, transfer between, or otherwise share liabilities
             41205      with any other PEO that is not certified by the assurance organization:
             41206          (i) in the employment of covered employees; or
             41207          (ii) in any employee benefit or insurance policy or plan that is not fully insured and fully
             41208      funded; and
             41209          (s) has the ability to provide a regulatory agency or insurance carrier upon request with:
             41210          (i) a client's name, address, and tax identification number;
             41211          (ii) payroll data by:
             41212          (A) client;
             41213          (B) (I) client SIC Code of the 1987 Standard Industrial Classification Manual of the
             41214      federal Executive Office of the President, Office of Management and Budget; or
             41215          (II) client classification under the 2002 North American Industry Classification System
             41216      of the federal Executive Office of the President, Office of Management and Budget; and
             41217          (C) workers' compensation classification;

             41218          (iii) the names of covered employees by:
             41219          (A) the worksite of a client; and
             41220          (B) workers' compensation classification; and
             41221          (iv) workers' compensation certificates of insurance.
             41222          Section 910. Section 58-59-303 is amended to read:
             41223           58-59-303. Term of registration -- Expiration -- Renewal.
             41224          (1) The division shall issue each registration under this chapter in accordance with a
             41225      one-year renewal cycle established by rule.
             41226          (2) The division may by rule, in accordance with [Title 63, Chapter 46a] Title 63G,
             41227      Chapter 3, Utah Administrative Rulemaking Act, extend or shorten a renewal period by as much
             41228      as six months to stagger the renewal cycles it administers.
             41229          Section 911. Section 58-59-308 is amended to read:
             41230           58-59-308. No guarantee.
             41231          By registering and regulating professional employer organizations under this chapter, the
             41232      state:
             41233          (1) does not guarantee any right, claim, or defense of any professional employer
             41234      organization, client company, coemployee, or other person;
             41235          (2) does not guarantee the financial responsibility or solvency of any professional
             41236      employer organization; and
             41237          (3) does not waive any right, claim, or defense of immunity that it may have under
             41238      [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah, or other
             41239      law.
             41240          Section 912. Section 58-60-115 is amended to read:
             41241           58-60-115. License by endorsement.
             41242          The division shall issue a license by endorsement under this chapter to a person who:
             41243          (1) submits an application on a form provided by the division;
             41244          (2) pays a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41245          (3) provides documentation of current licensure in good standing in any state, district,

             41246      or territory of the United States to practice in the profession in which licensure is being sought;
             41247          (4) provides documentation of having been actively engaged in the legal practice of
             41248      [his] the person's profession, including, but not limited to, mental health therapy, for not less
             41249      than 4,000 hours during the three years immediately preceding the date of application for
             41250      licensure in Utah;
             41251          (5) has passed the profession specific jurisprudence examination if required of a new
             41252      applicant; and
             41253          (6) is of good moral character and professional standing, and has no disciplinary action
             41254      pending or in effect against the applicant's license in any jurisdiction.
             41255          Section 913. Section 58-60-117 is amended to read:
             41256           58-60-117. Externship licenses.
             41257          (1) The division shall issue a temporary license under Part 2, 3, or 4 of this chapter to a
             41258      person who:
             41259          (a) submits an application for licensure under Part 2, 3, or 4;
             41260          (b) pays a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41261          (c) holds an earned doctoral degree or master's degree in a discipline that is a
             41262      prerequisite for practice as a mental health therapist;
             41263          (d) has one or more deficiencies in course work, experience, or training;
             41264          (e) provides mental health therapy as an employee of a public or private organization,
             41265      which provides mental health therapy, while under the supervision of a person licensed under
             41266      this chapter; and
             41267          (f) is of good moral character and has no disciplinary action pending or in effect against
             41268      the applicant in connection with the practice of mental health therapy, in any jurisdiction.
             41269          (2) A temporary license issued under this section shall expire upon the earlier of:
             41270          (a) issuance of the license applied for; or
             41271          (b) three years from the date the temporary license was issued.
             41272          (3) The temporary license issued under this section is an externship license.
             41273          Section 914. Section 58-60-205 is amended to read:

             41274           58-60-205. Qualifications for licensure or certification as a clinical or certified
             41275      social worker, certified social worker intern, and social service worker.
             41276          (1) An applicant for licensure as a clinical social worker shall:
             41277          (a) submit an application on a form provided by the division;
             41278          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41279          (c) be of good moral character;
             41280          (d) produce certified transcripts from an accredited institution of higher education
             41281      recognized by the division in collaboration with the board verifying satisfactory completion of
             41282      an education and earned degree as follows:
             41283          (i) an earned master's degree in social work resulting from completion of an education
             41284      program accredited by the Council on Social Work Education; or
             41285          (ii) an earned doctoral degree in social work that results from successful completion of
             41286      a clinical concentration and practicum approved by the division and defined by rule under
             41287      Section 58-1-203 ;
             41288          (e) have completed a minimum of 4,000 hours of clinical social work training as defined
             41289      by division rule under Section 58-1-203 in not less than two years and under the supervision of
             41290      a clinical social worker supervisor approved by the division in collaboration with the board;
             41291          (f) document successful completion of not less than 1,000 hours of supervised training
             41292      in mental health therapy obtained after completion of the education requirement in Subsection
             41293      (1)(d), which training may be included as part of the 4,000 hours of training in Subsection
             41294      (1)(e), and of which documented evidence demonstrates not less than 100 of the hours were
             41295      obtained under the direct personal face to face supervision of a clinical social worker approved
             41296      by the division in collaboration with the board;
             41297          (g) have completed a case work, group work, or family treatment course sequence with
             41298      a clinical practicum in content as defined by rule under Section 58-1-203 ; and
             41299          (h) pass the examination requirement established by rule under Section 58-1-203 .
             41300          (2) An applicant for licensure as a certified social worker shall:
             41301          (a) submit an application on a form provided by the division;

             41302          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41303          (c) be of good moral character;
             41304          (d) produce certified transcripts from an accredited institution of higher education
             41305      recognized by the division in collaboration with the Social Worker Licensing Board verifying
             41306      satisfactory completion of an education and an earned degree as follows:
             41307          (i) a social work education program accredited by the Council on Social Work
             41308      Education and an earned master's degree resulting from completion of that program; or
             41309          (ii) an education program that contains approved clinical social work concentration and
             41310      practicum in content as defined by rule under Section 58-1-203 and an earned doctorate
             41311      resulting from completion of that program; and
             41312          (e) pass the examination requirement established by rule under Section 58-1-203 .
             41313          (3) (a) An applicant for certification as a certified social worker intern shall meet the
             41314      requirements of Subsections (2)(a), (b), (c), and (d).
             41315          (b) Certification under Subsection (3)(a) is limited to the time necessary to pass the
             41316      examination required under Subsection (2)(e) or six months, whichever occurs first.
             41317          (c) A certified social worker intern may provide mental health therapy under the general
             41318      supervision of a clinical social worker.
             41319          (4) An applicant for licensure as a social service worker shall:
             41320          (a) submit an application on a form provided by the division;
             41321          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41322          (c) be of good moral character;
             41323          (d) produce certified transcripts from an accredited institution of higher education
             41324      recognized by the division in collaboration with the Social Worker Licensing Board verifying
             41325      satisfactory completion of an earned degree resulting from education as follows:
             41326          (i) a bachelor's degree in a social work program accredited by the Council on Social
             41327      Work Education;
             41328          (ii) a master's degree in a field approved by the division in collaboration with the social
             41329      worker board; or

             41330          (iii) a bachelor's degree in sociology, psychology, family sciences, or other field
             41331      approved by the division in collaboration with the Social Worker Licensing Board and also
             41332      documentation of 2,000 hours of supervised social work activity approved by the division in
             41333      collaboration with the board, which is performed after completing bachelor's degree
             41334      requirements under this Subsection (4);
             41335          (iv) a bachelor's degree in any field, if the applicant has completed:
             41336          (A) the equivalent of three credit hours of course work or other approved training in
             41337      full-life human growth behavior, abnormal psychology, social work values and ethics, social
             41338      welfare, or social welfare policy;
             41339          (B) an approved social work practice methods course; and
             41340          (C) one year of qualifying experience under the supervision of a licensed certified or
             41341      clinical social worker, which experience is approved by the division in collaboration with the
             41342      Social Worker Licensing Board, and which is performed after completion of the requirements to
             41343      obtain the bachelor's degree required under this Subsection (4); or
             41344          (v) successful completion of the first academic year of a Council on Social Work
             41345      Education approved master's of social work curriculum and practicum; and
             41346          (e) pass the examination requirement established by rule under Section 58-1-203 .
             41347          Section 915. Section 58-60-305 is amended to read:
             41348           58-60-305. Qualifications for licensure.
             41349          (1) All applicants for licensure as marriage and family therapists shall:
             41350          (a) submit an application on a form provided by the division;
             41351          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41352          (c) be of good moral character;
             41353          (d) produce certified transcripts evidencing completion of a masters or doctorate degree
             41354      in marriage and family therapy from:
             41355          (i) a program accredited by the Commission on Accreditation for Marriage and Family
             41356      Therapy Education; or
             41357          (ii) an accredited institution meeting criteria for approval established by rule under

             41358      Section 58-1-203 ;
             41359          (e) have completed a minimum of 4,000 hours of marriage and family therapy training
             41360      as defined by division rule under Section 58-1-203 , in not less than two years, under the
             41361      supervision of a marriage and family therapist supervisor who meets the requirements of Section
             41362      58-60-307 , and obtained after completion of the education requirement in Subsection (1)(d);
             41363          (f) document successful completion of not less than 1,000 hours of supervised training
             41364      in mental health therapy obtained after completion of the education requirement described in
             41365      Subsection (1)(d)(i) or (1)(d)(ii), which training may be included as part of the 4,000 hours of
             41366      training described in Subsection (1)(e), and of which documented evidence demonstrates not
             41367      less than 100 of the supervised hours were obtained during direct, personal, face-to-face
             41368      supervision by a marriage and family therapist supervisor qualified under Section 58-60-307 ;
             41369      and
             41370          (g) pass the examination requirement established by division rule under Section
             41371      58-1-203 .
             41372          (2) (a) All applicants for certification as a marriage and family therapist intern shall
             41373      comply with the provisions of Subsections (1)(a), (b), (c), and (d).
             41374          (b) An individual's certification as a marriage and family therapist intern is limited to the
             41375      period of time necessary to complete clinical training as described in Subsections (1)(e) and (f)
             41376      and extends not more than one year from the date the minimum requirement for training is
             41377      completed, unless the individual presents satisfactory evidence to the division and the
             41378      appropriate board that the individual is making reasonable progress toward passing of the
             41379      qualifying examination for that profession or is otherwise on a course reasonably expected to
             41380      lead to licensure, but the period of time under this Subsection (2)(b) may not exceed two years
             41381      past the date the minimum supervised clinical training requirement has been completed.
             41382          Section 916. Section 58-60-405 is amended to read:
             41383           58-60-405. Qualifications for licensure.
             41384          (1) All applicants for licensure as a professional counselor shall:
             41385          (a) submit an application on a form provided by the division;

             41386          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41387          (c) be of good moral character;
             41388          (d) produce certified transcripts from an accredited institution of higher education
             41389      recognized by the division in collaboration with the board verifying satisfactory completion of:
             41390          (i) an education and degree in an education program in counseling with a core
             41391      curriculum defined by division rule under Section 58-1-203 preparing one to competently
             41392      engage in mental health therapy; and
             41393          (ii) an earned doctoral or master's degree resulting from that education program;
             41394          (e) have completed a minimum of 4,000 hours of professional counselor training as
             41395      defined by division rule under Section 58-1-203 , in not less than two years, under the
             41396      supervision of a professional counselor, psychiatrist, psychologist, clinical social worker,
             41397      registered psychiatric mental health nurse specialist, or marriage and family therapist supervisor
             41398      approved by the division in collaboration with the board, and obtained after completion of the
             41399      education requirement in Subsection (1)(d);
             41400          (f) document successful completion of not less than 1,000 hours of supervised training
             41401      in mental health therapy obtained after completion of the education requirement in Subsection
             41402      (1)(d), which training may be included as part of the 4,000 hours of training in Subsection
             41403      (1)(e), and of which documented evidence demonstrates not less than 100 of the hours were
             41404      obtained under the direct personal face to face supervision of a mental health therapist approved
             41405      by the division in collaboration with the board; and
             41406          (g) pass the examination requirement established by division rule under Section
             41407      58-1-203 .
             41408          (2) (a) All applicants for certification as a professional counselor intern shall comply
             41409      with the provisions of Subsections (1)(a), (b), (c), and (d).
             41410          (b) An individual's certification as a professional counselor intern is limited to the period
             41411      of time necessary to complete clinical training as described in Subsections (1)(e) and (f) and
             41412      extends not more than one year from the date the minimum requirement for training is
             41413      completed, unless the individual presents satisfactory evidence to the division and the

             41414      appropriate board that the individual is making reasonable progress toward passing of the
             41415      qualifying examination for that profession or is otherwise on a course reasonably expected to
             41416      lead to licensure, but the period of time under this Subsection (2)(b) may not exceed two years
             41417      past the date the minimum supervised clinical training requirement has been completed.
             41418          Section 917. Section 58-60-506 is amended to read:
             41419           58-60-506. Qualifications for licensure on and after July 1, 2007.
             41420          (1) An applicant for licensure under this part on and after July 1, 2007, must meet the
             41421      following qualifications:
             41422          (a) submit an application in a form prescribed by the division;
             41423          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41424          (c) be of good moral character;
             41425          (d) satisfy the requirements of Subsection (2), (3), (4), or (5) respectively; and
             41426          (e) except for licensure as a certified substance abuse counselor intern, satisfy the
             41427      examination requirement established by rule under Section 58-1-203 .
             41428          (2) An applicant for licensure as a licensed substance abuse counselor shall meet one of
             41429      the following:
             41430          (a) The applicant shall produce:
             41431          (i) certified transcripts from an accredited institution of higher education meeting
             41432      standards established by the division by rule in collaboration with the board verifying
             41433      satisfactory completion of a baccalaureate or graduate degree in behavioral or social sciences;
             41434          (ii) documentation of the applicant's completion of a substance abuse education
             41435      program; and
             41436          (iii) documentation of the applicant's completion of 2,000 hours of supervised
             41437      experience in substance abuse treatment:
             41438          (A) meeting standards established by the division in collaboration with the board; and
             41439          (B) performed within a two-year period after the applicant's completion of the
             41440      substance abuse education program described in Subsection (2)(a)(ii).
             41441          (b) The applicant shall produce:

             41442          (i) certified transcripts from an accredited institution meeting standards established by
             41443      the division by rule in collaboration with the board verifying satisfactory completion of a
             41444      baccalaureate or graduate degree or a high school diploma or equivalent;
             41445          (ii) documentation of the applicant's completion of a substance abuse education
             41446      program; and
             41447          (iii) documentation of the applicant's completion of 4,000 hours of supervised
             41448      experience in substance abuse treatment:
             41449          (A) meeting standards established by the division in collaboration with the board; and
             41450          (B) performed within a four-year period after the applicant's completion of the
             41451      substance abuse education program described in Subsection (2)(b)(ii).
             41452          (c) Before January 1, 2009, the applicant shall produce:
             41453          (i) certified transcripts from an accredited institution of higher education meeting
             41454      standards established by the division by rule in collaboration with the board verifying
             41455      satisfactory completion of a baccalaureate or graduate degree in behavioral or social sciences;
             41456      and
             41457          (ii) documentation of the applicant's completion of 4,000 hours of supervised
             41458      experience in substance abuse treatment:
             41459          (A) meeting standards established by the division in collaboration with the board; and
             41460          (B) performed within a four-year period.
             41461          (d) Before January 1, 2009, the applicant shall produce:
             41462          (i) certified transcripts from an accredited institution meeting standards established by
             41463      the division by rule in collaboration with the board verifying satisfactory completion of a
             41464      baccalaureate or graduate degree or a high school diploma or equivalent; and
             41465          (ii) documentation of the applicant's completion of 6,000 hours of supervised
             41466      experience in substance abuse treatment:
             41467          (A) meeting standards established by the division in collaboration with the board; and
             41468          (B) performed within a six-year period.
             41469          (3) An applicant for licensure as a certified substance abuse counselor shall meet one of

             41470      the following:
             41471          (a) The applicant shall produce:
             41472          (i) certified transcripts from an accredited institution of higher education meeting
             41473      standards established by the division by rule in collaboration with the board verifying
             41474      satisfactory completion of a baccalaureate or graduate degree in behavioral or social sciences;
             41475      and
             41476          (ii) documentation of the applicant's completion of a substance abuse education
             41477      program.
             41478          (b) The applicant shall produce:
             41479          (i) certified transcripts from an accredited institution meeting standards established by
             41480      the division by rule in collaboration with the board verifying satisfactory completion of a
             41481      baccalaureate or graduate degree or a high school diploma or equivalent; and
             41482          (ii) documentation of the applicant's completion of a substance abuse education
             41483      program.
             41484          (c) Before January 1, 2009, the applicant shall produce certified transcripts from an
             41485      accredited institution of higher education meeting standards established by the division by rule
             41486      in collaboration with the board verifying satisfactory completion of a baccalaureate or graduate
             41487      degree in behavioral or social sciences.
             41488          (d) Before January 1, 2009, the applicant shall produce certified transcripts from an
             41489      accredited institution meeting standards established by the division by rule in collaboration with
             41490      the board verifying satisfactory completion of a baccalaureate or graduate degree or a high
             41491      school diploma or equivalent.
             41492          (4) (a) An applicant for licensure as a certified substance abuse counselor intern shall
             41493      meet the requirements for licensure as a certified substance abuse counselor under Subsection
             41494      (3).
             41495          (b) A certified substance abuse counselor intern license expires at the earlier of:
             41496          (i) the licensee passing the examination required for licensure as a certified substance
             41497      abuse counselor; or

             41498          (ii) six months after the certified substance abuse counselor intern license is issued.
             41499          (5) (a) An applicant for licensure as a certified substance abuse counselor extern shall
             41500      meet the requirements of Subsection (2)(a)(iii) or (2)(b)(iii).
             41501          (b) A certified substance abuse counselor extern license is valid for two years from the
             41502      day on which it is issued or until January 1, 2010, whichever comes first.
             41503          (c) A certified substance abuse counselor extern whose license expires before the
             41504      licensee completes a substance abuse education program under Subsection (2)(a)(ii) or (2)(b)(ii)
             41505      may not practice under this part until the licensee meets the requirements of Subsection (2) or
             41506      (3).
             41507          Section 918. Section 58-61-304 is amended to read:
             41508           58-61-304. Qualifications for licensure by examination or endorsement.
             41509          (1) An applicant for licensure as a psychologist based upon education, clinical training,
             41510      and examination shall:
             41511          (a) submit an application on a form provided by the division;
             41512          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41513          (c) be of good moral character;
             41514          (d) produce certified transcripts of credit verifying satisfactory completion of a doctoral
             41515      degree in psychology that includes specific core course work established by division rule under
             41516      Section 58-1-203 , from an institution of higher education whose doctoral program, at the time
             41517      the applicant received the doctoral degree, met approval criteria established by division rule
             41518      made in consultation with the board;
             41519          (e) have completed a minimum of 4,000 hours of psychology training as defined by
             41520      division rule under Section 58-1-203 in not less than two years and under the supervision of a
             41521      psychologist supervisor approved by the division in collaboration with the board;
             41522          (f) to be qualified to engage in mental health therapy, document successful completion
             41523      of not less than 1,000 hours of supervised training in mental health therapy obtained after
             41524      completion of a master's level of education in psychology, which training may be included as
             41525      part of the 4,000 hours of training required in Subsection (1)(e), and for which documented

             41526      evidence demonstrates not less than one hour of supervision for each 40 hours of supervised
             41527      training was obtained under the direct personal face to face supervision of a psychologist
             41528      approved by the division in collaboration with the board;
             41529          (g) pass the examination requirement established by division rule under Section
             41530      58-1-203 ; and
             41531          (h) meet with the board, upon request for good cause, for the purpose of evaluating the
             41532      applicant's qualifications for licensure.
             41533          (2) An applicant for licensure as a psychologist by endorsement based upon licensure in
             41534      another jurisdiction shall:
             41535          (a) submit an application on a form provided by the division;
             41536          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41537          (c) be of good moral character and professional standing, and not have any disciplinary
             41538      action pending or in effect against the applicant's psychologist license in any jurisdiction;
             41539          (d) have passed the Utah Psychologist Law and Ethics Examination established by
             41540      division rule;
             41541          (e) provide satisfactory evidence the applicant is currently licensed in another state,
             41542      district, or territory of the United States, or in any other jurisdiction approved by the division in
             41543      collaboration with the board;
             41544          (f) provide satisfactory evidence the applicant has actively practiced psychology in that
             41545      jurisdiction for not less than 2,000 hours or one year, whichever is greater;
             41546          (g) provide satisfactory evidence that:
             41547          (i) the education, supervised experience, examination, and all other requirements for
             41548      licensure in that jurisdiction at the time the applicant obtained licensure were substantially
             41549      equivalent to the licensure requirements for a psychologist in Utah at the time the applicant
             41550      obtained licensure in the other jurisdiction; or
             41551          (ii) the applicant is:
             41552          (A) a current holder of diplomate status in good standing from the American Board of
             41553      Professional Psychology;

             41554          (B) currently credentialed as a health service provider in psychology by the National
             41555      Register of Health Service Providers in Psychology; or
             41556          (C) currently holds a Certificate of Professional Qualification (CPQ) granted by the
             41557      Association of State and Provincial Psychology Boards; and
             41558          (h) meet with the board, upon request for good cause, for the purpose of evaluating the
             41559      applicant's qualifications for licensure.
             41560          (3) (a) An applicant for certification as a psychology resident shall comply with the
             41561      provisions of Subsections (1)(a), (b), (c), (d), and (h).
             41562          (b) (i) An individual's certification as a psychology resident is limited to the period of
             41563      time necessary to complete clinical training as described in Subsections (1)(e) and (f) and
             41564      extends not more than one year from the date the minimum requirement for training is
             41565      completed, unless the individual presents satisfactory evidence to the division and the
             41566      Psychologist Licensing Board that the individual is making reasonable progress toward passing
             41567      the qualifying examination or is otherwise on a course reasonably expected to lead to licensure
             41568      as a psychologist.
             41569          (ii) The period of time under Subsection (3)(b)(i) may not exceed two years past the
             41570      date the minimum supervised clinical training requirement has been completed.
             41571          Section 919. Section 58-63-302 is amended to read:
             41572           58-63-302. Qualifications for licensure.
             41573          (1) Each applicant for licensure as a contract security company shall:
             41574          (a) submit an application in a form prescribed by the division;
             41575          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41576          (c) have a qualifying agent who is a resident of the state and an officer, director,
             41577      partner, proprietor, or manager of the applicant who:
             41578          (i) passes an examination component established by rule by the division in collaboration
             41579      with the board; and
             41580          (ii) (A) demonstrates 6,000 hours of experience as a manager, supervisor, or
             41581      administrator of a contract security company; or

             41582          (B) demonstrates 6,000 hours of supervisory experience acceptable to the division in
             41583      collaboration with the board with a federal, United States military, state, county, or municipal
             41584      law enforcement agency;
             41585          (d) if a corporation, provide:
             41586          (i) the names, addresses, dates of birth, and Social Security numbers of all corporate
             41587      officers, directors, and those responsible management personnel employed within the state or
             41588      having direct responsibility for managing operations of the applicant within the state; and
             41589          (ii) the names, addresses, dates of birth, and Social Security numbers, of all
             41590      shareholders owning 5% or more of the outstanding shares of the corporation, except this may
             41591      not be required if the stock is publicly listed and traded;
             41592          (e) if a limited liability company, provide:
             41593          (i) the names, addresses, dates of birth, and Social Security numbers of all company
             41594      officers, and those responsible management personnel employed within the state or having
             41595      direct responsibility for managing operations of the applicant within the state; and
             41596          (ii) the names, addresses, dates of birth, and Social Security numbers of all individuals
             41597      owning 5% or more of the equity of the company;
             41598          (f) if a partnership, the names, addresses, dates of birth, and Social Security numbers of
             41599      all general partners, and those responsible management personnel employed within the state or
             41600      having direct responsibility for managing operations of the applicant within the state;
             41601          (g) if a proprietorship, the names, addresses, dates of birth, and Social Security numbers
             41602      of the proprietor, and those responsible management personnel employed within the state or
             41603      having direct responsibility for managing operations of the applicant within the state;
             41604          (h) be of good moral character in that officers, directors, shareholders described in
             41605      Subsection (1)(d)(ii), partners, proprietors, and responsible management personnel have not
             41606      been convicted of a felony, a misdemeanor involving moral turpitude, or any other crime that
             41607      when considered with the duties and responsibilities of a contract security company is
             41608      considered by the division and the board to indicate that the best interests of the public are not
             41609      served by granting the applicant a license;

             41610          (i) document that none of the applicant's officers, directors, shareholders described in
             41611      Subsection (1)(d)(ii), partners, proprietors, and responsible management personnel:
             41612          (i) have been declared by any court of competent jurisdiction incompetent by reason of
             41613      mental defect or disease and not been restored; and
             41614          (ii) currently suffer from habitual drunkenness or from drug addiction or dependence;
             41615          (j) file and maintain with the division evidence of:
             41616          (i) comprehensive general liability insurance in form and in amounts to be established by
             41617      rule by the division in collaboration with the board;
             41618          (ii) workers' compensation insurance that covers employees of the applicant in
             41619      accordance with applicable Utah law;
             41620          (iii) registration with the Division of Corporations and Commercial Code; and
             41621          (iv) registration as required by applicable law with the:
             41622          (A) Unemployment Insurance Division in the Department of Workforce Services, for
             41623      purposes of Title 35A, Chapter 4, Employment Security Act;
             41624          (B) State Tax Commission; and
             41625          (C) Internal Revenue Service; and
             41626          (k) meet with the division and board if requested by the division or board.
             41627          (2) Each applicant for licensure as an armed private security officer shall:
             41628          (a) submit an application in a form prescribed by the division;
             41629          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41630          (c) be of good moral character in that the applicant has not been convicted of a felony,
             41631      a misdemeanor involving moral turpitude, or any other crime that when considered with the
             41632      duties and responsibilities of an armed private security officer is considered by the division and
             41633      the board to indicate that the best interests of the public are not served by granting the applicant
             41634      a license;
             41635          (d) not have been declared by any court of competent jurisdiction incompetent by
             41636      reason of mental defect or disease and not been restored;
             41637          (e) not be currently suffering from habitual drunkenness or from drug addiction or

             41638      dependence;
             41639          (f) successfully complete basic education and training requirements established by rule
             41640      by the division in collaboration with the board;
             41641          (g) successfully complete firearms training requirements established by rule by the
             41642      division in collaboration with the board;
             41643          (h) pass the examination requirement established by rule by the division in collaboration
             41644      with the board; and
             41645          (i) meet with the division and board if requested by the division or the board.
             41646          (3) Each applicant for licensure as an unarmed private security officer shall:
             41647          (a) submit an application in a form prescribed by the division;
             41648          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41649          (c) be of good moral character in that the applicant has not been convicted of a felony,
             41650      a misdemeanor involving moral turpitude, or any other crime that when considered with the
             41651      duties and responsibilities of an unarmed private security officer is considered by the division
             41652      and the board to indicate that the best interests of the public are not served by granting the
             41653      applicant a license;
             41654          (d) not have been declared by any court of competent jurisdiction incompetent by
             41655      reason of mental defect or disease and not been restored;
             41656          (e) not be currently suffering from habitual drunkenness or from drug addiction or
             41657      dependence;
             41658          (f) successfully complete basic education and training requirements established by rule
             41659      by the division in collaboration with the board;
             41660          (g) pass the examination requirement established by rule by the division in collaboration
             41661      with the board; and
             41662          (h) meet with the division and board if requested by the division or board.
             41663          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             41664      Administrative Rulemaking Act, the division may make rules establishing when Federal Bureau
             41665      of Investigation records shall be checked for applicants.

             41666          (5) To determine if an applicant meets the qualifications of Subsections (1)(h), (2)(c),
             41667      and (3)(c), the division shall provide an appropriate number of copies of fingerprint cards to the
             41668      Department of Public Safety with the division's request to:
             41669          (a) conduct a search of records of the Department of Public Safety for criminal history
             41670      information relating to each applicant for licensure under this chapter and each applicant's
             41671      officers, directors, shareholders described in Subsection (1)(d)(ii), partners, proprietors, and
             41672      responsible management personnel; and
             41673          (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
             41674      requiring a check of records of the F.B.I. for criminal history information under this section.
             41675          (6) The Department of Public Safety shall send to the division:
             41676          (a) a written record of criminal history, or certification of no criminal history record, as
             41677      contained in the records of the Department of Public Safety in a timely manner after receipt of a
             41678      fingerprint card from the division and a request for review of Department of Public Safety
             41679      records; and
             41680          (b) the results of the F.B.I. review concerning an applicant in a timely manner after
             41681      receipt of information from the F.B.I.
             41682          (7) (a) The division shall charge each applicant a fee, in accordance with Section
             41683      [ 63-38-3.2 ] 63J-1-303 , equal to the cost of performing the records reviews under this section.
             41684          (b) The division shall pay the Department of Public Safety the costs of all records
             41685      reviews, and the Department of Public Safety shall pay the F.B.I. the costs of records reviews
             41686      under this chapter.
             41687          (8) Information obtained by the division from the reviews of criminal history records of
             41688      the Department of Public Safety and the F.B.I. shall be used or disseminated by the division only
             41689      for the purpose of determining if an applicant for licensure under this chapter is qualified for
             41690      licensure.
             41691          Section 920. Section 58-63-304 is amended to read:
             41692           58-63-304. Exemptions from licensure.
             41693          (1) In addition to the exemptions from licensure in Section 58-1-307 , the following

             41694      individuals may engage in acts regulated under this chapter without being licensed under this
             41695      chapter:
             41696          (a) a peace officer employed by or licensed as a contract security company; and
             41697          (b) a person employed by a contract security company for the sole purpose of operating
             41698      or staffing security apparatus, including a magnetometer, magnetometer wand, x-ray viewing
             41699      device, or other device approved by rule of the division.
             41700          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             41701      Administrative Rulemaking Act, the division may make rules approving security apparatus
             41702      under Subsection (1)(b).
             41703          Section 921. Section 58-63-503 is amended to read:
             41704           58-63-503. Penalties.
             41705          (1) Unless Subsection (2) applies, an individual who commits an act of unlawful
             41706      conduct under Section 58-63-501 or who fails to comply with a citation issued under this
             41707      section after it becomes final is guilty of a class A misdemeanor.
             41708          (2) The division may immediately suspend a license issued under this chapter of a
             41709      person who is given a citation for violating Subsection 58-63-501 (1) or (3).
             41710          (3) (a) If upon inspection or investigation, the division determines that a person has
             41711      violated Subsection 58-63-501 (1) or (3) or any rule made or order issued under those
             41712      subsections, and that disciplinary action is warranted, the director or the director's designee
             41713      within the division shall promptly issue a citation to the person and:
             41714          (i) attempt to negotiate a stipulated settlement; or
             41715          (ii) notify the person to appear for an adjudicative proceeding conducted under [Title
             41716      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             41717          (b) (i) The division may fine a person who is in violation of Subsection 58-63-501 (1) or
             41718      (3), as evidenced by an uncontested citation, a stipulated settlement, or a finding of a violation
             41719      in an adjudicative proceeding held under Subsection (3)(a)(ii), or order the person to cease and
             41720      desist from the violation, or do both.
             41721          (ii) Except for a cease and desist order, the division may not impose the licensure

             41722      sanctions listed in Section 58-63-401 through the issuance of a citation under this section.
             41723          (c) The citation shall:
             41724          (i) be in writing and describe the nature of the violation, including a reference to the
             41725      statute, rule, or order alleged to have been violated;
             41726          (ii) state the recipient must notify the division in writing within 20 calendar days of
             41727      issuance of the citation if the recipient wants to contest the citation at the adjudicative
             41728      proceeding referred to in Subsection (3)(a)(ii); and
             41729          (iii) explain the consequences of failure to timely contest the citation or to make
             41730      payment of any fines assessed under the citation with the time specified in the citation.
             41731          (d) (i) A citation issued under this section, or a copy of the citation, may be served upon
             41732      any person upon whom a summons may be served under the Utah Rules of Civil Procedure.
             41733          (ii) The individual may be served personally or service may be made upon the
             41734      individual's agent, and in either case the service can be made by a division investigator, by a
             41735      person designated by the director, or by mail.
             41736          (e) (i) If within 20 days from the service of a citation the person to whom the citation
             41737      was issued fails to request a hearing to contest the citation, the citation becomes the final order
             41738      of the division and is not subject to further agency review.
             41739          (ii) The division may grant an extension of the 20-day period for cause.
             41740          (f) The division may refuse to issue or renew, suspend, revoke, or place on probation
             41741      the license of a licensee who fails to comply with a citation after it becomes final.
             41742          (g) The division may not issue a citation for an alleged violation under this section after
             41743      the expiration of six months following the occurrence of the alleged violation.
             41744          (h) The director or the director's designee may assess fines under this section as
             41745      follows:
             41746          (i) for a first offense under Subsection (3)(a), a fine of up to $1,000;
             41747          (ii) for a second offense under Subsection (3)(a), a fine of up to $2,000; and
             41748          (iii) for any subsequent offense under Subsection (3)(a), a fine of up to $2,000 for each
             41749      day of continued violation.

             41750          (i) (i) For purposes of issuing a final order under this section and assessing a fine under
             41751      Subsection (3)(h), an offense is a second or subsequent offense if:
             41752          (A) the division previously issued a final order determining that a person committed a
             41753      first or second offense in violation of Subsection 58-63-501 (1) or (3); or
             41754          (B) (I) the division initiated an action for a first or second offense;
             41755          (II) no final order has been issued by the division in an action initiated under Subsection
             41756      (3)(i)(i)(B)(I);
             41757          (III) the division determines during an investigation that occurred after the initiation of
             41758      the action under Subsection (3)(i)(i)(B)(I) that the person committed a second or subsequent
             41759      violation of Subsection 58-63-501 (1) or (3); and
             41760          (IV) after determining that the person committed a second or subsequent offense under
             41761      Subsection (3)(i)(i)(B)(III), the division issues a final order on the action initiated under
             41762      Subsection (3)(i)(i)(B)(I).
             41763          (ii) In issuing a final order for a second or subsequent offense under Subsection
             41764      (3)(i)(i), the division shall comply with the requirements of this section.
             41765          (4) (a) A fine imposed by the director under Subsection (3)(h) shall be deposited in the
             41766      General Fund as dedicated credits to be used by the division for the purposes listed in Section
             41767      58-63-103 .
             41768          (b) The director may collect a Subsection (3)(h) fine which is not paid by:
             41769          (i) referring the matter to the Office of State Debt Collection or a collection agency; or
             41770          (ii) bringing an action in the district court of the county in which the person resides or in
             41771      the county where the office of the director is located.
             41772          (c) The director may seek legal assistance from the attorney general or the county or
             41773      district attorney of the district in which the action is brought to collect the fine.
             41774          (d) The court shall award reasonable attorney's fees and costs to the division for
             41775      successful actions under Subsection (4)(b)(ii).
             41776          Section 922. Section 58-64-302 is amended to read:
             41777           58-64-302. Qualifications for licensure.

             41778          (1) Each applicant for licensure as a deception detection examiner shall:
             41779          (a) submit an application in a form prescribed by the division;
             41780          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41781          (c) be of good moral character in that the applicant has not been convicted of a felony,
             41782      a misdemeanor involving moral turpitude, or any other crime which when considered with the
             41783      duties and responsibilities of a deception detection examiner is considered by the division and
             41784      the board to indicate that the best interests of the public will not be served by granting the
             41785      applicant a license;
             41786          (d) not have been declared by any court of competent jurisdiction incompetent by
             41787      reason of mental defect or disease and not been restored;
             41788          (e) may not be currently suffering from habitual drunkenness or from drug addiction or
             41789      dependence;
             41790          (f) have completed one of the following:
             41791          (i) have earned a bachelor's degree from a four year university or college meeting
             41792      standards established by the division by rule in collaboration with the board;
             41793          (ii) have completed not less than 8,000 hours of investigation experience approved by
             41794      the division in collaboration with the board; or
             41795          (iii) have completed a combination of university or college education and investigation
             41796      experience, as defined by rule by the division in collaboration with the board as being equivalent
             41797      to the requirements under Subsection (1)(f)(i) or (1)(f)(ii);
             41798          (g) have successfully completed a training program in detection deception meeting
             41799      criteria established by rule by the division in collaboration with the board; and
             41800          (h) have performed satisfactorily as a licensed deception detection intern for a period of
             41801      not less than one year and shall have satisfactorily conducted not less than 100 deception
             41802      detection examinations under the direct supervision of a licensed deception detection examiner.
             41803          (2) Each applicant for licensure as a deception detection intern shall:
             41804          (a) submit an application in a form prescribed by the division;
             41805          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;

             41806          (c) be of good moral character in that the applicant has not been convicted of a felony,
             41807      a misdemeanor involving moral turpitude, or any other crime which when considered with the
             41808      duties and responsibilities of a deception detection intern is considered by the division and the
             41809      board to indicate that the best interests of the public will not be served by granting the applicant
             41810      a license;
             41811          (d) not have been declared by any court of competent jurisdiction incompetent by
             41812      reason of mental defect or disease and not been restored;
             41813          (e) may not be currently suffering from habitual drunkenness or from drug addiction or
             41814      dependence;
             41815          (f) have completed one of the following:
             41816          (i) have earned a bachelor's degree from a four year university or college meeting
             41817      standards established by the division by rule in collaboration with the board;
             41818          (ii) have completed not less than 8,000 hours of investigation experience approved by
             41819      the division in collaboration with the board; or
             41820          (iii) have completed a combination of university or college education and investigation
             41821      experience, as defined by rule by the division in collaboration with the board as being equivalent
             41822      to the requirements under Subsection (2)(f)(i) or (2)(f)(ii);
             41823          (g) have successfully completed a training program in detection deception meeting
             41824      criteria established by rule by the division in collaboration with the board; and
             41825          (h) provide the division with an intern supervision agreement in a form prescribed by
             41826      the division under which:
             41827          (i) a licensed deception detection examiner agrees to directly supervise the intern; and
             41828          (ii) the applicant agrees to be directly supervised by that licensed deception detection
             41829      examiner.
             41830          Section 923. Section 58-67-102 is amended to read:
             41831           58-67-102. Definitions.
             41832          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             41833          (1) "ACGME" means the Accreditation Council for Graduate Medical Education of the

             41834      American Medical Association.
             41835          (2) "Administrative penalty" means a monetary fine imposed by the division for acts or
             41836      omissions determined to constitute unprofessional or unlawful conduct, as a result of an
             41837      adjudicative proceeding conducted in accordance with [Title 63, Chapter 46b] Title 63G,
             41838      Chapter 4, Administrative Procedures Act.
             41839          (3) "Board" means the Physicians Licensing Board created in Section 58-67-201 .
             41840          (4) "Diagnose" means:
             41841          (a) to examine in any manner another person, parts of a person's body, substances,
             41842      fluids, or materials excreted, taken, or removed from a person's body, or produced by a person's
             41843      body, to determine the source, nature, kind, or extent of a disease or other physical or mental
             41844      condition;
             41845          (b) to attempt to conduct an examination or determination described under Subsection
             41846      (4)(a);
             41847          (c) to hold oneself out as making or to represent that one is making an examination or
             41848      determination as described in Subsection (4)(a); or
             41849          (d) to make an examination or determination as described in Subsection (4)(a) upon or
             41850      from information supplied directly or indirectly by another person, whether or not in the
             41851      presence of the person making or attempting the diagnosis or examination.
             41852          (5) "LCME" means the Liaison Committee on Medical Education of the American
             41853      Medical Association.
             41854          (6) "Medical assistant" means an unlicensed individual working under the direct and
             41855      immediate supervision of a licensed physician and surgeon and engaged in specific tasks
             41856      assigned by the licensed physician and surgeon in accordance with the standards and ethics of
             41857      the profession.
             41858          (7) "Physician" means both physicians and surgeons licensed under Section 58-67-301 ,
             41859      Utah Medical Practice Act, and osteopathic physicians and surgeons licensed under Section
             41860      58-68-301 , Utah Osteopathic Medical Practice Act.
             41861          (8) "Practice of medicine" means:

             41862          (a) to diagnose, treat, correct, administer anesthesia, or prescribe for any human
             41863      disease, ailment, injury, infirmity, deformity, pain or other condition, physical or mental, real or
             41864      imaginary, or to attempt to do so, by any means or instrumentality, and by an individual in Utah
             41865      or outside the state upon or for any human within the state, except that conduct described in
             41866      this Subsection (8)(a) that is performed by a person legally and in accordance with a license
             41867      issued under another chapter of this title does not constitute the practice of medicine;
             41868          (b) when a person not licensed as a physician directs a licensee under this chapter to
             41869      withhold or alter the health care services that the licensee has ordered, but practice of medicine
             41870      does not include any conduct under Subsection 58-67-501 (2);
             41871          (c) to maintain an office or place of business for the purpose of doing any of the acts
             41872      described in Subsection (8)(a) whether or not for compensation; or
             41873          (d) to use, in the conduct of any occupation or profession pertaining to the diagnosis or
             41874      treatment of human diseases or conditions in any printed material, stationery, letterhead,
             41875      envelopes, signs, or advertisements, the designation "doctor," "doctor of medicine," "physician,"
             41876      "surgeon," "physician and surgeon," "Dr.," "M.D.," or any combination of these designations in
             41877      any manner which might cause a reasonable person to believe the individual using the
             41878      designation is a licensed physician and surgeon, and if the party using the designation is not a
             41879      licensed physician and surgeon, the designation must additionally contain the description of the
             41880      branch of the healing arts for which the person has a license.
             41881          (9) "Prescription drug or device" means:
             41882          (a) a drug or device which, under federal law, is required to be labeled with either of the
             41883      following statements or their equivalent:
             41884          (i) "CAUTION: Federal law prohibits dispensing without prescription"; or
             41885          (ii) "CAUTION: Federal law restricts this drug to use by or on the order of a licensed
             41886      veterinarian"; or
             41887          (b) a drug or device that is required by any applicable federal or state law or rule to be
             41888      dispensed on prescription only or is restricted to use by practitioners only.
             41889          (10) "SPEX" means the Special Purpose Examination of the Federation of State

             41890      Medical Boards.
             41891          (11) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-67-501 .
             41892          (12) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-67-502 , and as
             41893      may be further defined by division rule.
             41894          Section 924. Section 58-67-302 is amended to read:
             41895           58-67-302. Qualifications for licensure.
             41896          (1) An applicant for licensure as a physician and surgeon, except as set forth in
             41897      Subsection (2), shall:
             41898          (a) submit an application in a form prescribed by the division, which may include:
             41899          (i) submissions by the applicant of information maintained by practitioner data banks, as
             41900      designated by division rule, with respect to the applicant; and
             41901          (ii) a record of professional liability claims made against the applicant and settlements
             41902      paid by or on behalf of the applicant;
             41903          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             41904          (c) be of good moral character;
             41905          (d) provide satisfactory documentation of having successfully completed a program of
             41906      professional education preparing an individual as a physician and surgeon, as evidenced by
             41907      having received an earned degree of doctor of medicine from:
             41908          (i) an LCME accredited medical school or college; or
             41909          (ii) a medical school or college located outside of the United States or its jurisdictions
             41910      which at the time of the applicant's graduation, met criteria for LCME accreditation;
             41911          (e) hold a current certification by the Educational Commission for Foreign Medical
             41912      Graduates or any successor organization approved by the division in collaboration with the
             41913      board, if the applicant graduated from a medical school or college located outside of the United
             41914      States or its jurisdictions;
             41915          (f) satisfy the division and board that the applicant:
             41916          (i) has successfully completed 24 months of progressive resident training in a program
             41917      approved by the ACGME, the Royal College of Physicians and Surgeons, the College of Family

             41918      Physicians of Canada, or any similar body in the United States or Canada approved by the
             41919      division in collaboration with the board; or
             41920          (ii) (A) has successfully completed 12 months of resident training in an ACGME
             41921      approved program after receiving a degree of doctor of medicine as required under Subsection
             41922      (1)(d);
             41923          (B) has been accepted in and is successfully participating in progressive resident training
             41924      in an ACGME approved program within Utah, in the applicant's second or third year of
             41925      postgraduate training; and
             41926          (C) has agreed to surrender to the division [his] the applicant's license as a physician
             41927      and surgeon without any proceedings under [Title 63, Chapter 46b] Title 63G, Chapter 4,
             41928      Administrative Procedures Act, and has agreed [his] the applicant's license as a physician and
             41929      surgeon will be automatically revoked by the division if the applicant fails to continue in good
             41930      standing in an ACGME approved progressive resident training program within the state;
             41931          (g) pass the licensing examination sequence required by division rule made in
             41932      collaboration with the board;
             41933          (h) be able to read, write, speak, understand, and be understood in the English language
             41934      and demonstrate proficiency to the satisfaction of the board if requested by the board;
             41935          (i) meet with the board and representatives of the division, if requested, for the purpose
             41936      of evaluating the applicant's qualifications for licensure;
             41937          (j) designate:
             41938          (i) a contact person for access to medical records in accordance with the federal Health
             41939      Insurance Portability and Accountability Act; and
             41940          (ii) an alternate contact person for access to medical records, in the event the original
             41941      contact person is unable or unwilling to serve as the contact person for access to medical
             41942      records; and
             41943          (k) establish a method for notifying patients of the identity and location of the contact
             41944      person and alternate contact person, if the applicant will practice in a location with no other
             41945      persons licensed under this chapter.

             41946          (2) An applicant for licensure as a physician and surgeon by endorsement shall:
             41947          (a) be currently licensed with a full unrestricted license in good standing in any state,
             41948      district, or territory of the United States;
             41949          (b) have been actively engaged in the legal practice of medicine in any state, district, or
             41950      territory of the United States for not less than 6,000 hours during the five years immediately
             41951      preceding the date of application for licensure in Utah;
             41952          (c) not have any action pending against the applicant's license;
             41953          (d) not have a license that was suspended or revoked in any state, unless the license was
             41954      subsequently reinstated as a full unrestricted license in good standing; and
             41955          (e) produce satisfactory evidence of the applicant's qualifications, identity, and good
             41956      standing to the satisfaction of the division in collaboration with the board.
             41957          (3) An applicant for licensure by endorsement may engage in the practice of medicine
             41958      under a temporary license while the applicant's application for licensure is being processed by
             41959      the division, provided:
             41960          (a) the applicant submits a complete application required for temporary licensure to the
             41961      division;
             41962          (b) the applicant submits a written document to the division from:
             41963          (i) a health care facility licensed under Title 26, Chapter 21, Health Care Facility
             41964      Licensing and Inspection Act, stating that the applicant is practicing under the invitation of the
             41965      health care facility; or
             41966          (ii) two individuals licensed under this chapter, whose license is in good standing and
             41967      who practice in the same clinical location, both stating that:
             41968          (A) the applicant is practicing under the invitation of the individual; and
             41969          (B) the applicant will practice at the same clinical location as the individual;
             41970          (c) the applicant submits a signed certification to the division that the applicant meets
             41971      the requirements of Subsection (2);
             41972          (d) the applicant does not engage in the practice of medicine until the division has
             41973      issued a temporary license;

             41974          (e) the temporary license is only issued for and may not be extended beyond the
             41975      duration of one year from issuance; and
             41976          (f) the temporary license expires immediately and prior to the expiration of one year
             41977      from issuance, upon notification from the division that the applicant's application for licensure
             41978      by endorsement is denied.
             41979          (4) The division shall issue a temporary license under Subsection (3) within 15 business
             41980      days after the applicant satisfies the requirements of Subsection (3).
             41981          Section 925. Section 58-67-402 is amended to read:
             41982           58-67-402. Authority to assess penalty.
             41983          (1) After proceeding pursuant to [Title 63, Chapter 46b] Title 63G, Chapter 4,
             41984      Administrative Procedures Act, and Title 58, Chapter 1, Division of Occupational and
             41985      Professional Licensing Act, the division may impose administrative penalties of up to $10,000
             41986      for acts of unprofessional conduct under this chapter.
             41987          (2) Assessment of a penalty under this section does not affect any other action the
             41988      division is authorized to take regarding a license issued under this chapter.
             41989          Section 926. Section 58-67-601 is amended to read:
             41990           58-67-601. Mentally incompetent or incapacitated physician.
             41991          (1) As used in this section:
             41992          (a) "Incapacitated person" has the same definition as in Section 75-1-201 .
             41993          (b) "Mentally ill" has the same definition as in Section 62A-15-602 .
             41994          (2) If a court of competent jurisdiction determines a physician is an incapacitated person
             41995      or that [he] the physician is mentally ill and unable to safely engage in the practice of medicine,
             41996      the director shall immediately suspend the license of the physician upon the entry of the
             41997      judgment of the court, without further proceedings under [Title 63, Chapter 46b] Title 63G,
             41998      Chapter 4, Administrative Procedures Act, regardless of whether an appeal from the court's
             41999      ruling is pending. The director shall promptly notify the physician, in writing, of the suspension.
             42000          (3) (a) If the division and a majority of the board find reasonable cause to believe a
             42001      physician, who is not determined judicially to be an incapacitated person or to be mentally ill, is

             42002      incapable of practicing medicine with reasonable skill regarding the safety of patients, because
             42003      of illness, excessive use of drugs or alcohol, or as a result of any mental or physical condition,
             42004      the board shall recommend that the director file a petition with the division, and cause the
             42005      petition to be served upon the physician with a notice of hearing on the sole issue of the
             42006      capacity of the physician to competently and safely engage in the practice of medicine.
             42007          (b) The hearing shall be conducted under Section 58-1-109 , and [Title 63, Chapter 46b]
             42008      Title 63G, Chapter 4, Administrative Procedures Act, except as provided in Subsection (4).
             42009          (4) (a) Every physician who accepts the privilege of being licensed under this chapter
             42010      gives consent to:
             42011          (i) submitting at [his] the physician's own expense to an immediate mental or physical
             42012      examination when directed in writing by the division and a majority of the board to do so; and
             42013          (ii) the admissibility of the reports of the examining physician's testimony or
             42014      examination, and waives all objections on the ground the reports constitute a privileged
             42015      communication.
             42016          (b) The examination may be ordered by the division, with the consent of a majority of
             42017      the board, only upon a finding of reasonable cause to believe:
             42018          (i) the physician is mentally ill or incapacitated or otherwise unable to practice medicine
             42019      with reasonable skill and safety; and
             42020          (ii) immediate action by the division and the board is necessary to prevent harm to the
             42021      physician's patients or the general public.
             42022          (c) (i) Failure of a physician to submit to the examination ordered under this section is a
             42023      ground for the division's immediate suspension of the physician's license by written order of the
             42024      director.
             42025          (ii) The division may enter the order of suspension without further compliance with
             42026      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, unless the
             42027      division finds the failure to submit to the examination ordered under this section was due to
             42028      circumstances beyond the control of the physician and was not related directly to the illness or
             42029      incapacity of the physician.

             42030          (5) (a) A physician whose license is suspended under Subsection (2) or (3) has the right
             42031      to a hearing to appeal the suspension within ten days after the license is suspended.
             42032          (b) The hearing held under this subsection shall be conducted in accordance with
             42033      Sections 58-1-108 and 58-1-109 for the sole purpose of determining if sufficient basis exists for
             42034      the continuance of the order of suspension in order to prevent harm to the physician's patients
             42035      or the general public.
             42036          (6) A physician whose license is revoked, suspended, or in any way restricted under this
             42037      section may request the division and the board to consider, at reasonable intervals, evidence
             42038      presented by the physician, under procedures established by division rule, regarding any change
             42039      in the physician's condition, to determine whether:
             42040          (a) [he] the physician is or is not able to safely and competently engage in the practice
             42041      of medicine; and
             42042          (b) [he] the physician is qualified to have [his] the physician's license to practice under
             42043      this chapter restored completely or in part.
             42044          Section 927. Section 58-68-102 is amended to read:
             42045           58-68-102. Definitions.
             42046          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             42047          (1) "ACGME" means the Accreditation Council for Graduate Medical Education of the
             42048      American Medical Association.
             42049          (2) "Administrative penalty" means a monetary fine imposed by the division for acts or
             42050      omissions determined to constitute unprofessional or unlawful conduct, as a result of an
             42051      adjudicative proceeding conducted in accordance with [Title 63, Chapter 46b] Title 63G,
             42052      Chapter 4, Administrative Procedures Act.
             42053          (3) "AOA" means the American Osteopathic Association.
             42054          (4) "Board" means the Osteopathic Physicians Licensing Board created in Section
             42055      58-68-201 .
             42056          (5) "Diagnose" means:
             42057          (a) to examine in any manner another person, parts of a person's body, substances,

             42058      fluids, or materials excreted, taken, or removed from a person's body, or produced by a person's
             42059      body, to determine the source, nature, kind, or extent of a disease or other physical or mental
             42060      condition;
             42061          (b) to attempt to conduct an examination or determination described under Subsection
             42062      (5)(a);
             42063          (c) to hold oneself out as making or to represent that one is making an examination or
             42064      determination as described in Subsection (5)(a); or
             42065          (d) to make an examination or determination as described in Subsection (5)(a) upon or
             42066      from information supplied directly or indirectly by another person, whether or not in the
             42067      presence of the person making or attempting the diagnosis or examination.
             42068          (6) "Medical assistant" means an unlicensed individual working under the direct and
             42069      immediate supervision of a licensed osteopathic physician and surgeon and engaged in specific
             42070      tasks assigned by the licensed osteopathic physician and surgeon in accordance with the
             42071      standards and ethics of the profession.
             42072          (7) "Physician" means both physicians and surgeons licensed under Section 58-67-301 ,
             42073      Utah Medical Practice Act, and osteopathic physicians and surgeons licensed under Section
             42074      58-68-301 , Utah Osteopathic Medical Practice Act.
             42075          (8) "Practice of osteopathic medicine" means:
             42076          (a) to diagnose, treat, correct, administer anesthesia, or prescribe for any human
             42077      disease, ailment, injury, infirmity, deformity, pain, or other condition, physical or mental, real or
             42078      imaginary, or to attempt to do so, by any means or instrumentality, which in whole or in part is
             42079      based upon emphasis of the importance of the musculoskeletal system and manipulative therapy
             42080      in the maintenance and restoration of health, by an individual in Utah or outside of the state
             42081      upon or for any human within the state, except that conduct described in this Subsection (8)(a)
             42082      that is performed by a person legally and in accordance with a license issued under another
             42083      chapter of this title does not constitute the practice of medicine;
             42084          (b) when a person not licensed as a physician directs a licensee under this chapter to
             42085      withhold or alter the health care services that the licensee has ordered, but practice of medicine

             42086      does not include any conduct under Subsection 58-68-501 (2);
             42087          (c) to maintain an office or place of business for the purpose of doing any of the acts
             42088      described in Subsection (8)(a) whether or not for compensation; or
             42089          (d) to use, in the conduct of any occupation or profession pertaining to the diagnosis or
             42090      treatment of human diseases or conditions, in any printed material, stationery, letterhead,
             42091      envelopes, signs, or advertisements, the designation "doctor," "doctor of osteopathic medicine,"
             42092      "osteopathic physician," "osteopathic surgeon," "osteopathic physician and surgeon," "Dr.,"
             42093      "D.O.," or any combination of these designations in any manner which might cause a reasonable
             42094      person to believe the individual using the designation is a licensed osteopathic physician, and if
             42095      the party using the designation is not a licensed osteopathic physician, the designation must
             42096      additionally contain the description of the branch of the healing arts for which the person has a
             42097      license.
             42098          (9) "Prescription drug or device" means:
             42099          (a) a drug or device which, under federal law, is required to be labeled with either of the
             42100      following statements or their equivalent:
             42101          (i) "CAUTION: Federal law prohibits dispensing without prescription"; or
             42102          (ii) "CAUTION: Federal law restricts this drug to use by or on the order of a licensed
             42103      veterinarian"; or
             42104          (b) a drug or device that is required by any applicable federal or state law or rule to be
             42105      dispensed on prescription only or is restricted to use by practitioners only.
             42106          (10) "SPEX" means the Special Purpose Examination of the Federation of State
             42107      Medical Boards.
             42108          (11) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-68-501 .
             42109          (12) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-68-502 and as
             42110      may be further defined by division rule.
             42111          Section 928. Section 58-68-302 is amended to read:
             42112           58-68-302. Qualifications for licensure.
             42113          (1) An applicant for licensure as an osteopathic physician and surgeon, except as set

             42114      forth in Subsection (2) or (3), shall:
             42115          (a) submit an application in a form prescribed by the division, which may include:
             42116          (i) submissions by the applicant of information maintained by practitioner data banks, as
             42117      designated by division rule, with respect to the applicant; and
             42118          (ii) a record of professional liability claims made against the applicant and settlements
             42119      paid by or on behalf of the applicant;
             42120          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             42121          (c) be of good moral character;
             42122          (d) provide satisfactory documentation of having successfully completed a program of
             42123      professional education preparing an individual as an osteopathic physician and surgeon, as
             42124      evidenced by having received an earned degree of doctor of osteopathic medicine from:
             42125          (i) an AOA approved medical school or college; or
             42126          (ii) an osteopathic medical school or college located outside of the United States or its
             42127      jurisdictions which at the time of the applicant's graduation, met criteria for accreditation by the
             42128      AOA;
             42129          (e) hold a current certification by the Educational Commission for Foreign Medical
             42130      Graduates or any successor organization approved by the division in collaboration with the
             42131      board, if the applicant graduated from a medical school or college located outside of the United
             42132      States or its jurisdictions;
             42133          (f) satisfy the division and board that the applicant:
             42134          (i) has successfully completed 24 months of progressive resident training in an ACGME
             42135      or AOA approved program after receiving a degree of doctor of osteopathic medicine required
             42136      under Subsection (1)(d); or
             42137          (ii) (A) has successfully completed 12 months of resident training in an ACGME or
             42138      AOA approved program after receiving a degree of doctor of osteopathic medicine as required
             42139      under Subsection (1)(d);
             42140          (B) has been accepted in and is successfully participating in progressive resident training
             42141      in an ACGME or AOA approved program within Utah, in the applicant's second or third year of

             42142      postgraduate training; and
             42143          (C) has agreed to surrender to the division [his] the applicant's license as an osteopathic
             42144      physician and surgeon without any proceedings under [Title 63, Chapter 46b] Title 63G,
             42145      Chapter 4, Administrative Procedures Act, and has agreed [his] the applicant's license as an
             42146      osteopathic physician and surgeon will be automatically revoked by the division if the applicant
             42147      fails to continue in good standing in an ACGME or AOA approved progressive resident training
             42148      program within the state;
             42149          (g) pass the licensing examination sequence required by division rule, as made in
             42150      collaboration with the board;
             42151          (h) be able to read, write, speak, understand, and be understood in the English language
             42152      and demonstrate proficiency to the satisfaction of the board, if requested by the board;
             42153          (i) meet with the board and representatives of the division, if requested for the purpose
             42154      of evaluating the applicant's qualifications for licensure;
             42155          (j) designate:
             42156          (i) a contact person for access to medical records in accordance with the federal Health
             42157      Insurance Portability and Accountability Act; and
             42158          (ii) an alternate contact person for access to medical records, in the event the original
             42159      contact person is unable or unwilling to serve as the contact person; and
             42160          (k) establish a method for notifying patients of the identity and location of the contact
             42161      person and alternate contact person, if the applicant will practice in a location with no other
             42162      persons licensed under this chapter.
             42163          (2) An applicant for licensure as an osteopathic physician and surgeon qualifying under
             42164      the endorsement provision of Section 58-1-302 shall:
             42165          (a) be currently licensed in good standing in another jurisdiction as set forth in Section
             42166      58-1-302 ;
             42167          (b) (i) document having met all requirements for licensure under Subsection (1) except,
             42168      if an applicant received licensure in another state or jurisdiction based upon only 12 months
             42169      residency training after graduation from medical school, the applicant may qualify for licensure

             42170      in Utah by endorsement only if licensed in the other state prior to July 1, 1996; or
             42171          (ii) document having obtained licensure in another state or jurisdiction whose licensure
             42172      requirements were at the time of obtaining licensure equal to licensure requirements at that time
             42173      in Utah;
             42174          (c) have passed the SPEX examination within 12 months preceding the date of
             42175      application for licensure in Utah if the date on which the applicant passed qualifying
             42176      examinations for licensure is greater than five years prior to the date of the application for
             42177      licensure in Utah, or meet medical specialty certification requirements which may be established
             42178      by division rule made in collaboration with the board;
             42179          (d) have been actively engaged in the practice as an osteopathic physician and surgeon
             42180      for not less than 6,000 hours during the five years immediately preceding the date of application
             42181      for licensure in Utah;
             42182          (e) meet with the board and representatives of the division, if requested for the purpose
             42183      of evaluating the applicant's qualifications for licensure; and
             42184          (f) not have a license that was suspended or revoked in any state, unless the license was
             42185      subsequently reinstated as a full unrestricted license in good standing.
             42186          (3) An applicant for licensure as an osteopathic physician and surgeon, who has been
             42187      licensed as an osteopathic physician in Utah, who has allowed [his] the applicant's license in
             42188      Utah to expire for nonpayment of license fees, and who is currently licensed in good standing in
             42189      another state or jurisdiction of the United States shall:
             42190          (a) submit an application in a form prescribed by the division;
             42191          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             42192          (c) be of good moral character;
             42193          (d) have passed the SPEX examination within 12 months preceding the date of
             42194      application for licensure in Utah if the date on which the applicant passed qualifying
             42195      examinations for licensure is greater than five years prior to the date of the application for
             42196      licensure in Utah;
             42197          (e) have been actively engaged in the practice as an osteopathic physician for not fewer

             42198      than 6,000 hours during the five years immediately preceding the date of application for
             42199      licensure; and
             42200          (f) meet with the board and representatives of the division, if requested for the purpose
             42201      of evaluating the applicant's qualifications for licensure.
             42202          (4) An applicant for licensure by endorsement may engage in the practice of medicine
             42203      under a temporary license while the applicant's application for licensure is being processed by
             42204      the division, provided:
             42205          (a) the applicant submits a complete application required for temporary licensure to the
             42206      division;
             42207          (b) the applicant submits a written document to the division from:
             42208          (i) a health care facility licensed under Title 26, Chapter 21, Health Care Facility
             42209      Licensing and Inspection Act, stating that the applicant is practicing under the invitation of the
             42210      health care facility; or
             42211          (ii) two individuals licensed under this chapter, whose license is in good standing and
             42212      who practice in the same clinical location, both stating that:
             42213          (A) the applicant is practicing under the invitation of the individual; and
             42214          (B) the applicant will practice at the same clinical location as the individual;
             42215          (c) the applicant submits a signed certification to the division that the applicant meets
             42216      the requirements of Subsection (2);
             42217          (d) the applicant does not engage in the practice of medicine until the division has
             42218      issued a temporary license;
             42219          (e) the temporary license is only issued for and may not be extended beyond the
             42220      duration of one year from issuance; and
             42221          (f) the temporary license expires immediately and prior to the expiration of one year
             42222      from issuance, upon notification from the division that the applicant's application for licensure
             42223      by endorsement is denied.
             42224          (5) The division shall issue a temporary license under Subsection (4) within 15 business
             42225      days after the applicant satisfies the requirements of Subsection (4).

             42226          Section 929. Section 58-68-402 is amended to read:
             42227           58-68-402. Authority to assess penalties.
             42228          (1) After acting in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4,
             42229      Administrative Procedures Act, and Title 58, Chapter 1, Division of Occupational and
             42230      Professional Licensing Act, the division may impose administrative penalties of up to $10,000
             42231      for each act of unprofessional conduct under this chapter.
             42232          (2) Assessment of a penalty under this section does not affect any other action the
             42233      division is authorized to take regarding a license issued under this chapter.
             42234          Section 930. Section 58-68-601 is amended to read:
             42235           58-68-601. Mentally incompetent or incapacitated osteopathic physician.
             42236          (1) As used in this section:
             42237          (a) "Incapacitated person" has the same definition as in Section 75-1-201 .
             42238          (b) "Mentally ill" has the same definition as in Section 62A-15-602 .
             42239          (2) If a court of competent jurisdiction determines an osteopathic physician and surgeon
             42240      is an incapacitated person or that [he] the physician or surgeon is mentally ill and unable to
             42241      safely engage in the practice of medicine, the director shall immediately suspend the license of
             42242      the osteopathic physician and surgeon upon the entry of the judgment of the court, without
             42243      further proceedings under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             42244      Procedures Act, regardless of whether an appeal from the court's ruling is pending. The
             42245      director shall promptly notify the osteopathic physician and surgeon, in writing, of the
             42246      suspension.
             42247          (3) (a) If the division and a majority of the board find reasonable cause to believe an
             42248      osteopathic physician and surgeon, who is not determined judicially to be an incapacitated
             42249      person or to be mentally ill, is incapable of practicing osteopathic medicine with reasonable skill
             42250      regarding the safety of patients, because of illness, excessive use of drugs or alcohol, or as a
             42251      result of any mental or physical condition, the board shall recommend that the director file a
             42252      petition with the division, and cause the petition to be served upon the osteopathic physician
             42253      and surgeon with a notice of hearing on the sole issue of the capacity of the osteopathic

             42254      physician and surgeon to competently and safety engage in the practice of medicine.
             42255          (b) The hearing shall be conducted under Section 58-1-109 , and [Title 63, Chapter 46b]
             42256      Title 63G, Chapter 4, Administrative Procedures Act, except as provided in Subsection (4).
             42257          (4) (a) Every osteopathic physician and surgeon who accepts the privilege of being
             42258      licensed under this chapter gives consent to:
             42259          (i) submitting at [his] the physician's or surgeon's own expense to an immediate mental
             42260      or physical examination when directed in writing by the division and a majority of the board to
             42261      do so; and
             42262          (ii) the admissibility of the reports of the examining physician's testimony or
             42263      examination, and waives all objections on the ground the reports constitute a privileged
             42264      communication.
             42265          (b) The examination may be ordered by the division, with the consent of a majority of
             42266      the board, only upon a finding of reasonable cause to believe:
             42267          (i) the osteopathic physician and surgeon is mentally ill or incapacitated or otherwise
             42268      unable to practice medicine with reasonable skill and safety; and
             42269          (ii) immediate action by the division and the board is necessary to prevent harm to the
             42270      osteopathic physician and surgeon's patients or the general public.
             42271          (c) (i) Failure of an osteopathic physician and surgeon to submit to the examination
             42272      ordered under this section is a ground for the division's immediate suspension of the osteopathic
             42273      physician and surgeon's license by written order of the director.
             42274          (ii) The division may enter the order of suspension without further compliance with
             42275      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, unless the
             42276      division finds the failure to submit to the examination ordered under this section was due to
             42277      circumstances beyond the control of the osteopathic physician and surgeon and was not related
             42278      directly to the illness or incapacity of the osteopathic physician and surgeon.
             42279          (5) (a) An osteopathic physician and surgeon whose license is suspended under
             42280      Subsection (2) or (3) has the right to a hearing to appeal the suspension within ten days after the
             42281      license is suspended.

             42282          (b) The hearing held under this subsection shall be conducted in accordance with
             42283      Sections 58-1-108 and 58-1-109 for the sole purpose of determining if sufficient basis exists for
             42284      the continuance of the order of suspension in order to prevent harm to the osteopathic physician
             42285      and surgeon's patients or the general public.
             42286          (6) An osteopathic physician and surgeon whose license is revoked, suspended, or in
             42287      any way restricted under this section may request the division and the board to consider, at
             42288      reasonable intervals, evidence presented by the osteopathic physician and surgeon, under
             42289      procedures established by division rule, regarding any change in the osteopathic physician and
             42290      surgeon's condition, to determine whether:
             42291          (a) [he] the physician or surgeon is or is not able to safely and competently engage in
             42292      the practice of medicine; and
             42293          (b) [he] the physician or surgeon is qualified to have [his] the physician's or surgeon's
             42294      license to practice under this chapter restored completely or in part.
             42295          Section 931. Section 58-69-302 is amended to read:
             42296           58-69-302. Qualifications for licensure.
             42297          (1) An applicant for licensure as a dentist, except as set forth in Subsection (2), shall:
             42298          (a) submit an application in a form as prescribed by the division;
             42299          (b) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             42300          (c) be of good moral character;
             42301          (d) provide satisfactory documentation of having successfully completed a program of
             42302      professional education preparing an individual as a dentist as evidenced by having received an
             42303      earned doctor's degree in dentistry from:
             42304          (i) a dental school accredited by the Commission on Dental Accreditation of the
             42305      American Dental Association; or
             42306          (ii) a dental school located outside of the United States or its jurisdictions which, at the
             42307      time the applicant graduated from the dental school, met standards for accreditation by the
             42308      Commission on Dental Accreditation of the American Dental Association;
             42309          (e) pass the National Board Dental Examinations as administered by the Joint

             42310      Commission on National Dental Examinations of the American Dental Association;
             42311          (f) pass any one of the regional dental clinical licensure examinations unless the division,
             42312      in collaboration with the board, determines that:
             42313          (i) the examination is clearly inferior to the Western Regional Examination Board; and
             42314          (ii) reliance upon the examination poses an unjustifiable threat to public health and
             42315      safety;
             42316          (g) pass any other examinations regarding applicable law, rules, or ethics as established
             42317      by division rule made in collaboration with the board;
             42318          (h) be able to read, write, speak, understand, and be understood in the English language
             42319      and demonstrate proficiency to the satisfaction of the board if requested by the board; and
             42320          (i) meet with the board if requested by the board or division for the purpose of
             42321      examining the applicant's qualifications for licensure.
             42322          (2) An applicant for licensure as a dentist qualifying under the endorsement provision of
             42323      Section 58-1-302 shall:
             42324          (a) be currently licensed in good standing in another jurisdiction set forth in Section
             42325      58-1-302 ;
             42326          (b) (i) document having met all requirements for licensure under Subsection (1) except,
             42327      an applicant having received licensure in another state or jurisdiction prior to the year when the
             42328      National Board Dental Examinations were first administered, shall document having passed a
             42329      state administered examination acceptable to the division in collaboration with the board; or
             42330          (ii) document having obtained licensure in another state or jurisdiction upon which
             42331      licensure by endorsement is based by meeting requirements which were equal to licensure
             42332      requirements in Utah at the time the applicant obtained licensure in the other state or
             42333      jurisdiction; and
             42334          (c) document having been successfully engaged in practice as a dentist for not less than
             42335      6,000 hours in the five years immediately preceding the date of application for licensure.
             42336          (3) An applicant for licensure as a dental hygienist, except as set forth in Subsection (4),
             42337      shall:

             42338          (a) submit an application in a form as prescribed by the division;
             42339          (b) pay a fee as determined by the department pursuant to Section [ 63-38-3.2 ]
             42340      63J-1-303 ;
             42341          (c) be of good moral character;
             42342          (d) be a graduate holding a certificate or degree in dental hygiene from:
             42343          (i) a school accredited by the Commission on Dental Accreditation of the American
             42344      Dental Association; or
             42345          (ii) a dental hygiene school located outside of the United States or its jurisdictions
             42346      which, at the time the applicant graduated from or received certification from the school, met
             42347      standards for accreditation by the Commission on Dental Accreditation of the American Dental
             42348      Association;
             42349          (e) pass the National Board Dental Hygiene Examination as administered by the Joint
             42350      Commission on National Dental Examinations of the American Dental Association;
             42351          (f) pass an examination consisting of practical demonstrations in the practice of dental
             42352      hygiene and written or oral examination in the theory and practice of dental hygiene as
             42353      established by division rule made in collaboration with the board;
             42354          (g) pass any other examinations regarding applicable law, rules, and ethics as
             42355      established by rule by division rule made in collaboration with the board;
             42356          (h) be able to read, write, speak, understand, and be understood in the English language
             42357      and demonstrate proficiency to the satisfaction of the board if requested by the board; and
             42358          (i) meet with the board if requested by the board or division for the purpose of
             42359      examining the applicant's qualifications for licensure.
             42360          (4) An applicant for licensure as a dental hygienist qualifying under the endorsement
             42361      provision of Section 58-1-302 shall:
             42362          (a) be currently licensed in another jurisdiction set forth in Section 58-1-302 ;
             42363          (b) (i) document having met all requirements for licensure under Subsection (3) except,
             42364      an applicant having received licensure in another state or jurisdiction prior to 1962, the year
             42365      when the National Board Dental Hygiene Examinations were first administered, shall document

             42366      having passed a state administered examination acceptable to the division in collaboration with
             42367      the board; or
             42368          (ii) document having obtained licensure in another state or jurisdiction upon which
             42369      licensure by endorsement is based by meeting requirements which were equal to licensure
             42370      requirements in Utah at the time the applicant obtained licensure in the other state or
             42371      jurisdiction; and
             42372          (c) document having been successfully engaged in practice as a dental hygienist for not
             42373      less than 2,000 hours in the two years immediately preceding the date of application for
             42374      licensure.
             42375          Section 932. Section 58-69-601 is amended to read:
             42376           58-69-601. Mentally incompetent or incapacitated dentist or dental hygienist.
             42377          (1) As used in this section:
             42378          (a) "Incapacitated person" has the same definition as in Section 75-1-201 .
             42379          (b) "Mentally ill" has the same definition as in Section 62A-15-602 .
             42380          (2) If a court of competent jurisdiction determines a dentist or dental hygienist is an
             42381      incapacitated person or that [he] the dentist or hygienist is mentally ill and unable to safely
             42382      engage in the practice of dentistry or dental hygiene, the director shall immediately suspend the
             42383      license of the dentist or dental hygienist upon the entry of the judgment of the court, without
             42384      further proceedings under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             42385      Procedures Act, regardless of whether an appeal from the court's ruling is pending. The
             42386      director shall promptly notify the dentist or dental hygienist, in writing, of the suspension.
             42387          (3) (a) If the division and a majority of the board find reasonable cause to believe a
             42388      dentist or dental hygienist, who is not determined judicially to be an incapacitated person or to
             42389      be mentally ill, is incapable of practicing dentistry or dental hygiene with reasonable skill
             42390      regarding the safety of patients, because of illness, excessive use of drugs or alcohol, or as a
             42391      result of any mental or physical condition, the board shall recommend that the director file a
             42392      petition with the division, and cause the petition to be served upon the dentist or dental
             42393      hygienist with a notice of hearing on the sole issue of the capacity of the dentist or dental

             42394      hygienist to competently and safely engage in the practice of dentistry or dental hygiene.
             42395          (b) The hearing shall be conducted under Section 58-1-109 and [Title 63, Chapter 46b]
             42396      Title 63G, Chapter 4, Administrative Procedures Act, except as provided in Subsection (4).
             42397          (4) (a) Every dentist or dental hygienist who accepts the privilege of being licensed
             42398      under this chapter gives consent to:
             42399          (i) submitting at [his] the dentist or dental hygienist's own expense to an immediate
             42400      mental or physical examination when directed in writing by the division and a majority of the
             42401      board to do so; and
             42402          (ii) the admissibility of the reports of the examining practitioner's testimony or
             42403      examination, and waives all objections on the ground the reports constitute a privileged
             42404      communication.
             42405          (b) The examination may be ordered by the division, with the consent of a majority of
             42406      the board, only upon a finding of reasonable cause to believe:
             42407          (i) the dentist or dental hygienist is mentally ill or incapacitated or otherwise unable to
             42408      practice dentistry or dental hygiene with reasonable skill and safety; and
             42409          (ii) immediate action by the division and the board is necessary to prevent harm to the
             42410      dentist's or dental hygienist's patients or the general public.
             42411          (c) (i) Failure of a dentist or dental hygienist to submit to the examination ordered
             42412      under this section is a ground for the division's immediate suspension of the dentist's or dental
             42413      hygienist's license by written order of the director.
             42414          (ii) The division may enter the order of suspension without further compliance with
             42415      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, unless the
             42416      division finds the failure to submit to the examination ordered under this section was due to
             42417      circumstances beyond the control of the dentist or dental hygienist and was not related directly
             42418      to the illness or incapacity of the dentist or dental hygienist.
             42419          (5) (a) A dentist or dental hygienist whose license is suspended under Subsection (2) or
             42420      (3) has the right to a hearing to appeal the suspension within ten days after the license is
             42421      suspended.

             42422          (b) The hearing held under this subsection shall be conducted in accordance with
             42423      Sections 58-1-108 and 58-1-109 for the sole purpose of determining if sufficient basis exists for
             42424      the continuance of the order of suspension in order to prevent harm to the dentist's or dental
             42425      hygienist's patients or the general public.
             42426          (6) A dentist or dental hygienist whose license is revoked, suspended, or in any way
             42427      restricted under this section may request the division and the board to consider, at reasonable
             42428      intervals, evidence presented by the dentist or dental hygienist, under procedures established by
             42429      division rule, regarding any change in the dentist's or dental hygienist's condition, to determine
             42430      whether:
             42431          (a) [he] the dentist or dental hygienist is or is not able to safely and competently engage
             42432      in the practice of dentistry or dental hygiene; and
             42433          (b) [he] the dentist or dental hygienist is qualified to have [his] the dentist or dental
             42434      hygienist's licensure to practice under this chapter restored completely or in part.
             42435          Section 933. Section 58-70a-302 is amended to read:
             42436           58-70a-302. Qualifications for licensure.
             42437          Each applicant for licensure as a physician assistant shall:
             42438          (1) submit an application in a form prescribed by the division;
             42439          (2) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             42440          (3) be of good moral character;
             42441          (4) have successfully completed a physician assistant program accredited by the
             42442      Commission on Accreditation of Allied Health Education Programs;
             42443          (5) have passed the licensing examinations required by division rule made in
             42444      collaboration with the board;
             42445          (6) meet with the board and representatives of the division, if requested, for the purpose
             42446      of evaluating the applicant's qualifications for licensure; and
             42447          (7) (a) if the applicant desires to practice in Utah, complete a form provided by the
             42448      division indicating:
             42449          (i) the applicant has completed a delegation of services agreement signed by the

             42450      physician assistant, supervising physician, and substitute supervising physicians; and
             42451          (ii) the agreement is on file at the Utah practice sites; or
             42452          (b) complete a form provided by the division indicating the applicant is not practicing in
             42453      Utah and, prior to practicing in Utah, the applicant will meet the requirements of Subsection
             42454      (7)(a).
             42455          Section 934. Section 58-71-102 is amended to read:
             42456           58-71-102. Definitions.
             42457          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             42458          (1) "Administrative penalty" means a monetary fine imposed by the division for acts or
             42459      omissions determined to constitute unprofessional or unlawful conduct, as a result of an
             42460      adjudicative proceeding conducted in accordance with [Title 63, Chapter 46b] Title 63G,
             42461      Chapter 4, Administrative Procedures Act.
             42462          (2) "Acupuncture" has the same definition as in Section 58-72-102 .
             42463          (3) "Board" means the Naturopathic Physicians Licensing Board created in Section
             42464      58-71-201 .
             42465          (4) "Diagnose" means:
             42466          (a) to examine in any manner another person, parts of a person's body, substances,
             42467      fluids, or materials excreted, taken, or removed from a person's body, or produced by a person's
             42468      body, to determine the source, nature, kind, or extent of a disease or other physical or mental
             42469      condition;
             42470          (b) to attempt to conduct an examination or determination described under Subsection
             42471      (4)(a);
             42472          (c) to hold oneself out as making or to represent that one is making an examination or
             42473      determination as described in Subsection (4)(a); or
             42474          (d) to make an examination or determination as described in Subsection (4)(a) upon or
             42475      from information supplied directly or indirectly by another person, whether or not in the
             42476      presence of the person making or attempting the diagnosis or examination.
             42477          (5) "Local anesthesia" means an agent, whether a natural medicine or prescription drug,

             42478      which:
             42479          (a) is applied topically or by injection in superficial tissues associated with the
             42480      performance of minor office procedures;
             42481          (b) has the ability to produce loss of sensation at the site of minor office procedures;
             42482      and
             42483          (c) does not cause loss of consciousness or produce general sedation.
             42484          (6) "Medical naturopathic assistant" means an unlicensed individual working under the
             42485      direct and immediate supervision of a licensed naturopathic physician and engaged in specific
             42486      tasks assigned by the licensed naturopathic physician in accordance with the standards and
             42487      ethics of the profession.
             42488          (7) (a) "Minor office procedures" means:
             42489          (i) the use of operative, electrical, or other methods for repair and care of superficial
             42490      lacerations, abrasions, and benign lesions;
             42491          (ii) removal of foreign bodies located in the superficial tissues, excluding the eye or ear;
             42492      and
             42493          (iii) the use of antiseptics and local anesthetics in connection with minor office surgical
             42494      procedures; and
             42495          (b) "Minor office procedures" does not include:
             42496          (i) general or spinal anesthesia;
             42497          (ii) office procedures more complicated or extensive than those set forth in Subsection
             42498      (7)(a);
             42499          (iii) procedures involving the eye; or
             42500          (iv) any office procedure involving tendons, nerves, veins, or arteries.
             42501          (8) "Natural medicine" means:
             42502          (a) food, food extracts, dietary supplements as defined by the federal Food, Drug, and
             42503      Cosmetics Act, all homeopathic remedies, and plant substances that are not designated as
             42504      prescription drugs or controlled substances;
             42505          (b) over-the-counter medications;

             42506          (c) other nonprescription substances, the prescription or administration of which is not
             42507      otherwise prohibited or restricted under federal or state law; and
             42508          (d) prescription drugs:
             42509          (i) that are not controlled substances as defined in Section 58-37-2 ;
             42510          (ii) the prescription of which is consistent with the competent practice of naturopathic
             42511      medicine; and
             42512          (iii) the prescription of which is approved by the division in collaboration with the
             42513      naturopathic formulary advisory peer committee.
             42514          (9) (a) "Naturopathic childbirth" means uncomplicated natural childbirth assisted by a
             42515      naturopathic physician, and includes the use of:
             42516          (i) natural medicines; and
             42517          (ii) uncomplicated episiotomy.
             42518          (b) "Naturopathic childbirth" does not include the use of:
             42519          (i) forceps delivery;
             42520          (ii) general or spinal anesthesia;
             42521          (iii) caesarean section delivery; or
             42522          (iv) induced labor or abortion.
             42523          (10) "Naturopathic mobilization therapy":
             42524          (a) means manually administering mechanical treatment of body structures or tissues for
             42525      the purpose of restoring normal physiological function to the body by normalizing and balancing
             42526      the musculoskeletal system of the body;
             42527          (b) does not mean manipulation or adjustment of the joints of the human body beyond
             42528      the elastic barrier; and
             42529          (c) does not include manipulation as defined in Title 58, Chapter 73, Chiropractic
             42530      Physician Practice Act.
             42531          (11) "Naturopathic physical medicine" means the use of the physical agents of air,
             42532      water, heat, cold, sound, light, and electromagnetic nonionizing radiation, and the physical
             42533      modalities of electrotherapy, biofeedback, acupuncture, diathermy, ultraviolet light, ultrasound,

             42534      hydrotherapy, naturopathic mobilization therapy, and exercise. Naturopathic medicine does not
             42535      include the practice of physical therapy or physical rehabilitation.
             42536          (12) "Practice of naturopathic medicine" means:
             42537          (a) a system of primary health care for the prevention, diagnosis, and treatment of
             42538      human health conditions, injuries, and diseases that uses education, natural medicines, and
             42539      natural therapies, to support and stimulate the patient's intrinsic self-healing processes:
             42540          (i) using naturopathic childbirth, but only if:
             42541          (A) the licensee meets standards of the American College of Naturopathic Obstetricians
             42542      (ACNO) or its successor as determined by the division in collaboration with the board; and
             42543          (B) the licensee follows a written plan for naturopathic physicians practicing
             42544      naturopathic childbirth approved by the division in collaboration with the board, which includes
             42545      entering into an agreement with a consulting physician and surgeon or osteopathic physician, in
             42546      cases where the scope of practice of naturopathic childbirth may be exceeded and specialty care
             42547      and delivery is indicated, detailing the guidelines by which the naturopathic physician will:
             42548          (I) refer patients to the consulting physician; and
             42549          (II) consult with the consulting physician;
             42550          (ii) using naturopathic mobilization therapy;
             42551          (iii) using naturopathic physical medicine;
             42552          (iv) using minor office procedures;
             42553          (v) prescribing or administering natural medicine;
             42554          (vi) prescribing medical equipment and devices, diagnosing by the use of medical
             42555      equipment and devices, and administering therapy or treatment by the use of medical devices
             42556      necessary and consistent with the competent practice of naturopathic medicine;
             42557          (vii) prescribing barrier devices for contraception;
             42558          (viii) using dietary therapy;
             42559          (ix) taking and using diagnostic x-rays, electrocardiograms, ultrasound, and
             42560      physiological function tests;
             42561          (x) taking of body fluids for clinical laboratory tests and using the results of the tests in

             42562      diagnosis;
             42563          (xi) taking of a history from and conducting of a physical examination upon a human
             42564      patient; and
             42565          (xii) prescribing and administering natural medicines and medical devices, except a
             42566      naturopathic physician may only administer:
             42567          (A) a prescription drug, as defined in Section 58-17b-102 , in accordance with
             42568      Subsection (8)(d); and
             42569          (B) local anesthesia that is not a controlled substance, and only in the performance of
             42570      minor office procedures;
             42571          (b) to maintain an office or place of business for the purpose of doing any of the acts
             42572      described in Subsection (12)(a), whether or not for compensation; or
             42573          (c) to use, in the conduct of any occupation or profession pertaining to the diagnosis or
             42574      treatment of human diseases or conditions, in any printed material, stationery, letterhead,
             42575      envelopes, signs, or advertisements, the designation "naturopathic physician," "naturopathic
             42576      doctor," "naturopath," "doctor of naturopathic medicine," "doctor of naturopathy,"
             42577      "naturopathic medical doctor," "naturopathic medicine," "naturopathic health care,"
             42578      "naturopathy," "N.D.," "N.M.D.," or any combination of these designations in any manner that
             42579      might cause a reasonable person to believe the individual using the designation is a licensed
             42580      naturopathic physician.
             42581          (13) "Prescription drug or device" means:
             42582          (a) a drug or device which, under federal law, is required to be labeled with either of the
             42583      following statements or their equivalent:
             42584          (i) "CAUTION: Federal law prohibits dispensing without prescription"; or
             42585          (ii) "CAUTION: Federal law restricts this drug to use by or on the order of a licensed
             42586      veterinarian"; or
             42587          (b) a drug or device that is required by any applicable federal or state law or rule to be
             42588      dispensed on prescription only or is restricted to use by practitioners only.
             42589          (14) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-71-501 .

             42590          (15) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-71-502 , and as
             42591      may be further defined by division rule.
             42592          Section 935. Section 58-71-302 is amended to read:
             42593           58-71-302. Qualifications for licensure.
             42594          (1) An applicant for licensure as a naturopathic physician, except as set forth in
             42595      Subsection (2), shall:
             42596          (a) submit an application in a form prescribed by the division which may include:
             42597          (i) submissions by the applicant of information maintained by practitioner data banks, as
             42598      designated by division rule, with respect to the applicant; and
             42599          (ii) a record of professional liability claims made against the applicant and settlements
             42600      paid by or in behalf of the applicant;
             42601          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             42602          (c) be of good moral character;
             42603          (d) provide satisfactory documentation of having successfully completed a program of
             42604      professional education preparing an individual as a naturopathic physician, as evidenced by
             42605      having received an earned degree of doctor of naturopathic medicine from:
             42606          (i) a naturopathic medical school or college accredited by the Council of Naturopathic
             42607      Medical Education or its successor organization approved by the division;
             42608          (ii) a naturopathic medical school or college that is a candidate for accreditation by the
             42609      Council of Naturopathic Medical Education or its successor organization, and is approved by
             42610      the division in collaboration with the board, upon a finding there is reasonable expectation the
             42611      school or college will be accredited; or
             42612          (iii) a naturopathic medical school or college which, at the time of the applicant's
             42613      graduation, met current criteria for accreditation by the Council of Naturopathic Medical
             42614      Education or its successor approved by the division;
             42615          (e) provide satisfactory documentation of having successfully completed, after
             42616      successful completion of the education requirements set forth in Subsection (1)(d), 12 months
             42617      of clinical experience in naturopathic medicine in a residency program recognized by the

             42618      division and associated with an accredited school or college of naturopathic medicine, and under
             42619      the preceptorship of a licensed naturopathic physician, physician and surgeon, or osteopathic
             42620      physician;
             42621          (f) pass the licensing examination sequence required by division rule established in
             42622      collaboration with the board;
             42623          (g) be able to read, write, speak, understand, and be understood in the English language
             42624      and demonstrate proficiency to the satisfaction of the board if requested by the board; and
             42625          (h) meet with the board and representatives of the division, if requested, for the purpose
             42626      of evaluating the applicant's qualifications for licensure.
             42627          (2) An applicant for licensure as a naturopathic physician qualifying under the
             42628      endorsement provision of Section 58-1-302 shall:
             42629          (a) be currently licensed in good standing in another jurisdiction as set forth in Section
             42630      58-1-302 ;
             42631          (b) document having met all requirements for licensure under Subsection (1) except the
             42632      clinical experience requirement of Subsection (1)(e);
             42633          (c) have passed the examination requirements established under Subsection (1)(f)
             42634      which:
             42635          (i) the applicant has not passed in connection with licensure in another state or
             42636      jurisdiction; and
             42637          (ii) are available to the applicant to take without requiring additional professional
             42638      education;
             42639          (d) have been actively engaged in the practice of a naturopathic physician for not less
             42640      than 6,000 hours during the five years immediately preceding the date of application for
             42641      licensure in Utah; and
             42642          (e) meet with the board and representatives of the division, if requested for the purpose
             42643      of evaluating the applicant's qualifications for licensure.
             42644          Section 936. Section 58-71-402 is amended to read:
             42645           58-71-402. Authority to assess penalty.

             42646          (1) After proceeding pursuant to [Title 63, Chapter 46b] Title 63G, Chapter 4,
             42647      Administrative Procedures Act, and Title 58, Chapter 1, Division of Occupational and
             42648      Professional Licensing Act, the division may impose administrative penalties of up to $10,000
             42649      for acts of unprofessional conduct or unlawful conduct under this chapter.
             42650          (2) Assessment of a penalty under this section does not affect any other action the
             42651      division is authorized to take regarding a license issued under this chapter.
             42652          Section 937. Section 58-71-601 is amended to read:
             42653           58-71-601. Mentally incompetent or incapacitated naturopathic physician.
             42654          (1) As used in this section:
             42655          (a) "Incapacitated person" has the same definition as in Section 75-1-201 .
             42656          (b) "Mentally ill" has the same definition as in Section 62A-15-602 .
             42657          (2) If a court of competent jurisdiction determines a naturopathic physician is an
             42658      incapacitated person or that [he] the physician is mentally ill and unable to safely engage in the
             42659      practice of medicine, the director shall immediately suspend the license of the naturopathic
             42660      physician upon the entry of the judgment of the court, without further proceedings under [Title
             42661      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, regardless of whether
             42662      an appeal from the court's ruling is pending. The director shall promptly notify the naturopathic
             42663      physician, in writing, of the suspension.
             42664          (3) (a) If the division and a majority of the board find reasonable cause to believe a
             42665      naturopathic physician, who is not determined judicially to be an incapacitated person or to be
             42666      mentally ill, is incapable of practicing medicine with reasonable skill regarding the safety of
             42667      patients, because of illness, excessive use of drugs or alcohol, or as a result of any mental or
             42668      physical condition, the board shall recommend that the director file a petition with the division,
             42669      and cause the petition to be served upon the naturopathic physician with a notice of hearing on
             42670      the sole issue of the capacity of the naturopathic physician to competently and safely engage in
             42671      the practice of medicine.
             42672          (b) The hearing shall be conducted under Section 58-1-109 , and [Title 63, Chapter 46b]
             42673      Title 63G, Chapter 4, Administrative Procedures Act, except as provided in Subsection (4).

             42674          (4) (a) Every naturopathic physician who accepts the privilege of being licensed under
             42675      this chapter gives consent to:
             42676          (i) submitting at [his] the physician's own expense to an immediate mental or physical
             42677      examination when directed in writing by the division and a majority of the board to do so; and
             42678          (ii) the admissibility of the reports of the examining physician's testimony or
             42679      examination, and waives all objections on the ground the reports constitute a privileged
             42680      communication.
             42681          (b) The examination may be ordered by the division, with the consent of a majority of
             42682      the board, only upon a finding of reasonable cause to believe:
             42683          (i) the naturopathic physician is mentally ill or incapacitated or otherwise unable to
             42684      practice medicine with reasonable skill and safety; and
             42685          (ii) immediate action by the division and the board is necessary to prevent harm to the
             42686      naturopathic physician's patients or the general public.
             42687          (c) (i) Failure of a naturopathic physician to submit to the examination ordered under
             42688      this section is a ground for the division's immediate suspension of the naturopathic physician's
             42689      license by written order of the director.
             42690          (ii) The division may enter the order of suspension without further compliance with
             42691      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, unless the
             42692      division finds the failure to submit to the examination ordered under this section was due to
             42693      circumstances beyond the control of the naturopathic physician and was not related directly to
             42694      the illness or incapacity of the naturopathic physician.
             42695          (5) (a) A naturopathic physician whose license is suspended under Subsection (2) or (3)
             42696      has the right to a hearing to appeal the suspension within ten days after the license is suspended.
             42697          (b) The hearing held under this subsection shall be conducted in accordance with
             42698      Sections 58-1-108 and 58-1-109 for the sole purpose of determining if sufficient basis exists for
             42699      the continuance of the order of suspension in order to prevent harm to the naturopathic
             42700      physician's patients or the general public.
             42701          (6) A naturopathic physician whose license is revoked, suspended, or in any way

             42702      restricted under this section may request the division and the board to consider, at reasonable
             42703      intervals, evidence presented by the naturopathic physician, under procedures established by
             42704      division rule, regarding any change in the naturopathic physician's condition, to determine
             42705      whether:
             42706          (a) [he] the physician is or is not able to safely and competently engage in the practice
             42707      of medicine; and
             42708          (b) [he] the physician is qualified to have [his] the physician's license to practice under
             42709      this chapter restored completely or in part.
             42710          Section 938. Section 58-72-302 is amended to read:
             42711           58-72-302. Qualification for licensure.
             42712          Notwithstanding Section 58-1-302 , an applicant for licensure as a licensed acupuncturist
             42713      shall:
             42714          (1) submit an application in a form prescribed by the division;
             42715          (2) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             42716          (3) be of good moral character;
             42717          (4) meet the requirements for current active certification in acupuncture under
             42718      guidelines established by the National Commission for the Certification of Acupuncture and
             42719      Oriental Medicine (NCCAOM) as demonstrated through a current certificate or other
             42720      appropriate documentation;
             42721          (5) pass the examination required by the division by rule;
             42722          (6) establish procedures, as defined by rule, which shall enable patients to give informed
             42723      consent to treatment; and
             42724          (7) meet with the board, if requested, for the purpose of evaluating the applicant's
             42725      qualifications for licensure.
             42726          Section 939. Section 58-73-302 is amended to read:
             42727           58-73-302. Qualifications for licensure.
             42728          (1) Each applicant for licensure as a chiropractic physician, other than those applying
             42729      for a license based on licensure as a chiropractor or chiropractic physician in another

             42730      jurisdiction, shall:
             42731          (a) submit an application in a form prescribed by the division;
             42732          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             42733          (c) be of good moral character;
             42734          (d) demonstrate satisfactory completion of at least two years of general study in a
             42735      college or university;
             42736          (e) demonstrate having earned a degree of doctor of chiropractic from a chiropractic
             42737      college or university that at the time the degree was conferred was accredited by the Council on
             42738      Chiropractic Education, Inc., or an equivalent chiropractic accrediting body recognized by the
             42739      United States Department of Education and by the division rule made in collaboration with the
             42740      board;
             42741          (f) demonstrate successful completion of:
             42742          (i) the National Chiropractic Boards:
             42743          (A) Parts I and II;
             42744          (B) Written Clinical Competency Examination; and
             42745          (C) Physical Therapy;
             42746          (ii) the Utah Chiropractic Law and Rules Examination; and
             42747          (iii) a practical examination approved by the division in collaboration with the board;
             42748      and
             42749          (g) meet with the board, if requested, for the purpose of reviewing the applicant's
             42750      qualifications for licensure.
             42751          (2) Each applicant for licensure as a chiropractic physician based on licensure as a
             42752      chiropractor or chiropractic physician in another jurisdiction shall:
             42753          (a) submit an application in the form prescribed by the division;
             42754          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             42755          (c) be of good moral character;
             42756          (d) demonstrate having obtained licensure as a chiropractor or chiropractic physician in
             42757      another state under education requirements which were equivalent to the education

             42758      requirements in this state to obtain a chiropractor or chiropractic physician license at the time
             42759      the applicant obtained the license in the other state;
             42760          (e) demonstrate successful completion of:
             42761          (i) the Utah Chiropractic Law and Rules Examination; and
             42762          (ii) the Special Purposes Examination for Chiropractic (SPEC) of the National Board of
             42763      Chiropractic Examiners;
             42764          (f) have been actively engaged in the practice of chiropractic for not less than two years
             42765      immediately preceding application for licensure in this state; and
             42766          (g) meet with the board, if requested, for the purpose of reviewing the applicant's
             42767      qualifications for licensure.
             42768          Section 940. Section 58-73-701 is amended to read:
             42769           58-73-701. Persons immune from liability.
             42770          (1) Employees of the division, members of the board or its committees, and professional
             42771      consultants serving the division or the board, are not subject to civil damages, when acting
             42772      under the authority of this chapter for any act or omission performed in good faith within the
             42773      scope of their functions as an employee of the division or member of the board.
             42774          (2) Employees, board members, committee members, and professional consultants are
             42775      indemnified by the state. The state has full responsibility for providing legal and financial
             42776      protection for employees, board members, committee members, and consultants to the board or
             42777      division.
             42778          (3) Nothing in this section may be construed to adversely limit any provision of [Title
             42779      63, Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah.
             42780          Section 941. Section 58-74-302 is amended to read:
             42781           58-74-302. Qualifications for licensure.
             42782          (1) Each applicant for licensure as a certified court reporter under this chapter shall:
             42783          (a) be at least 18 years of age;
             42784          (b) be a citizen of the United States;
             42785          (c) submit an application in a form prescribed by the division;

             42786          (d) pay a fee determined by the department under Subsection [ 63-38-3 ] 63J-1-301 (2);
             42787          (e) possess a high degree of skill and ability in the art of court reporting;
             42788          (f) produce satisfactory evidence of good moral character; and
             42789          (g) submit evidence that they have completed and passed the Registered Professional
             42790      Reporter Examination of the National Court Reporters Association or the Certified Verbatim
             42791      Reporter Examination of the National Verbatim Reporters Association.
             42792          (2) Any person granted a certificate to practice as a certified shorthand reporter may
             42793      use the abbreviation "C.S.R." as long as the person's certificate is current and valid.
             42794          (3) Any person granted a certificate to practice as a certified voice reporter may use the
             42795      abbreviation "C.V.R." as long as the person's certificate is current and valid.
             42796          Section 942. Section 58-75-102 is amended to read:
             42797           58-75-102. Definitions.
             42798          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             42799          (1) "Board" means the Genetic Counselors Licensing Board created in Section
             42800      58-75-201 .
             42801          (2) "Genetic counselor" means a person licensed under this chapter to engage in the
             42802      practice of genetic counseling.
             42803          (3) "Practice of genetic counseling" means the communication process which deals with
             42804      the human problems associated with the occurrence, or the risk of occurrence, of a genetic
             42805      disorder in a family, including the provision of services to help an individual or family:
             42806          (a) comprehend the medical facts, including the diagnosis, probable cause of the
             42807      disorder, and the available management;
             42808          (b) appreciate the way heredity contributes to the disorder and the risk of occurrence in
             42809      specified relatives;
             42810          (c) understand the alternatives for dealing with the risk of occurrence;
             42811          (d) choose the course of action which seems appropriate to them in view of their risk,
             42812      their family goals, and their ethical and religious standards, and to act in accordance with that
             42813      decision; and

             42814          (e) make the best possible psychosocial adjustment to the disorder in an affected family
             42815      member or to the risk of occurrence of that disorder.
             42816          (4) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-75-501 .
             42817          (5) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-75-502 and as
             42818      may be further defined by rule by the division in accordance with [Title 63, Chapter 46a] Title
             42819      63G, Chapter 3, Utah Administrative Rulemaking Act.
             42820          Section 943. Section 58-75-302 is amended to read:
             42821           58-75-302. Qualifications for licensure -- Temporary license.
             42822          (1) Except as provided in Subsection (2), each applicant for licensure as a genetic
             42823      counselor under this chapter shall:
             42824          (a) submit an application in a form prescribed by the division;
             42825          (b) pay a fee determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             42826          (c) be of good moral character;
             42827          (d) provide satisfactory documentation of having earned:
             42828          (i) a master's degree from a genetic counseling training program that is accredited by
             42829      the American Board of Genetic Counseling or an equivalent as determined by the division; or
             42830          (ii) a doctoral degree from a medical genetics training program that is accredited by the
             42831      American Board of Medical Genetics or an equivalent as determined by the division; and
             42832          (e) meet the examination requirement for certification as:
             42833          (i) a genetic counselor by the American Board of Genetic Counseling or the American
             42834      Board of Medical Genetics; or
             42835          (ii) a medical geneticist by the American Board of Medical Genetics.
             42836          (2) The division may issue a temporary license, in accordance with Section 58-1-303
             42837      and any other conditions established by rule, to an applicant who meets all of the requirements
             42838      for licensure except the examination requirement of Subsection (1)(e).
             42839          Section 944. Section 58-76-103 is amended to read:
             42840           58-76-103. Education and enforcement fund.
             42841          (1) There is created within the General Fund a restricted account known as the

             42842      "Professional Geologist Education and Enforcement Fund."
             42843          (2) The account shall be nonlapsing and consist of monies from:
             42844          (a) a surcharge fee established by the department in accordance with Section
             42845      [ 63-38-3.2 ] 63J-1-303 , placed on initial, renewal, and reinstatement licensure fees under this
             42846      chapter not to exceed 50% of the respective initial, renewal, or reinstatement licensure fee;
             42847          (b) administrative penalties collected pursuant to this chapter; and
             42848          (c) interest earned on monies in the account.
             42849          (3) Monies in the account may be appropriated by the Legislature for the following
             42850      purposes:
             42851          (a) education and training of licensees under this chapter;
             42852          (b) education and training of the public or other interested persons in matters
             42853      concerning geology laws and practices;
             42854          (c) enforcement of this chapter by:
             42855          (i) investigating unprofessional or unlawful conduct;
             42856          (ii) providing legal representation to the division when legal action is taken against a
             42857      person engaging in unprofessional or unlawful conduct; and
             42858          (iii) monitoring compliance of renewal requirements; and
             42859          (d) education and training of board members.
             42860          Section 945. Section 58-76-302 is amended to read:
             42861           58-76-302. Qualifications for licensure.
             42862          Each applicant for licensure as a professional geologist shall:
             42863          (1) submit an application in a form as prescribed by the division;
             42864          (2) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             42865          (3) be of good moral character;
             42866          (4) provide satisfactory evidence of:
             42867          (a) a bachelors or graduate degree in the geosciences granted through an institution of
             42868      higher education that is accredited by a regional or national accrediting agency with a minimum
             42869      of 30 semester or 45 quarter hours of course work in the geosciences; or

             42870          (b) completion of other equivalent educational requirements as determined by the
             42871      division in collaboration with the board;
             42872          (5) provide satisfactory evidence of:
             42873          (a) with a bachelors degree, a specific record of five years of active professional
             42874      practice in geological work of a character satisfactory to the division, indicating the applicant is
             42875      competent to be placed in a responsible charge of the work;
             42876          (b) with a masters degree, a specific record of three years of active professional practice
             42877      in geological work of a character satisfactory to the division, indicating the applicant is
             42878      competent to be placed in a responsible charge of the work; or
             42879          (c) with a doctorate degree, a specific record of one year of active professional practice
             42880      in geological work of a character satisfactory to the division, indicating the applicant is
             42881      competent to be placed in a responsible charge of the work; and
             42882          (6) after January 1, 2004, meet the examination requirement established by rule by the
             42883      division in collaboration with the board.
             42884          Section 946. Section 58-76-502 is amended to read:
             42885           58-76-502. Penalty for unlawful conduct.
             42886          (1) (a) If, upon inspection or investigation, the division concludes that a person has
             42887      violated Section 58-76-501 or any rule or order issued with respect to Section 58-76-501 , and
             42888      that disciplinary action is appropriate, the director or [his or her] the director's designee from
             42889      within the division shall promptly issue a citation to the person according to this chapter and any
             42890      pertinent rules, attempt to negotiate a stipulated settlement, or notify the person to appear
             42891      before an adjudicative proceeding conducted under [Title 63, Chapter 46b] Title 63G, Chapter
             42892      4, Administrative Procedures Act.
             42893          (i) A person who violates Subsections 58-1-501 (1)(a) through (d) or Section 58-76-501
             42894      or any rule or order issued with respect to Section 58-76-501 , as evidenced by an uncontested
             42895      citation, a stipulated settlement, or by a finding of violation in an adjudicative proceeding, may
             42896      be assessed a fine pursuant to this Subsection (1) and may, in addition to or in lieu of, be
             42897      ordered to cease and desist from violating Subsections 58-1-501 (1)(a) through (d) or Section

             42898      58-76-501 or any rule or order issued with respect to this section.
             42899          (ii) Except for a cease and desist order, the licensure sanctions cited in Section
             42900      58-76-401 may not be assessed through a citation.
             42901          (b) A citation shall:
             42902          (i) be in writing;
             42903          (ii) describe with particularity the nature of the violation, including a reference to the
             42904      provision of the chapter, rule, or order alleged to have been violated;
             42905          (iii) clearly state that the recipient must notify the division in writing within 20 calendar
             42906      days of service of the citation if the recipient wishes to contest the citation at a hearing
             42907      conducted under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act;
             42908      and
             42909          (iv) clearly explain the consequences of failure to timely contest the citation or to make
             42910      payment of any fines assessed by the citation within the time specified in the citation.
             42911          (c) The division may issue a notice in lieu of a citation.
             42912          (d) Each citation issued under this section, or a copy of each citation, may be served
             42913      upon any person upon whom a summons may be served in accordance with the Utah Rules of
             42914      Civil Procedure and may be made personally or upon [his] the person's agent by a division
             42915      investigator or by any person specially designated by the director or by mail.
             42916          (e) If within 20 calendar days from the service of the citation, the person to whom the
             42917      citation was issued fails to request a hearing to contest the citation, the citation becomes the
             42918      final order of the division and is not subject to further agency review. The period to contest a
             42919      citation may be extended by the division for cause.
             42920          (f) The division may refuse to issue or renew, suspend, revoke, or place on probation
             42921      the license of a licensee who fails to comply with a citation after it becomes final.
             42922          (g) The failure of an applicant for licensure to comply with a citation after it becomes
             42923      final is a ground for denial of license.
             42924          (h) No citation may be issued under this section after the expiration of six months
             42925      following the occurrence of any violation.

             42926          (i) The director or [his] the director's designee shall assess fines according to the
             42927      following:
             42928          (i) for a first offense handled pursuant to Subsection (1)(a), a fine of up to $1,000;
             42929          (ii) for a second offense handled pursuant to Subsection (1)(a), a fine of up to $2,000;
             42930      and
             42931          (iii) for any subsequent offense handled pursuant to Subsection (1)(a), a fine of up to
             42932      $2,000 for each day of continued offense.
             42933          (2) An action initiated for a first or second offense which has not yet resulted in a final
             42934      order of the division shall not preclude initiation of any subsequent action for a second or
             42935      subsequent offense during the pendency of any preceding action. The final order on a
             42936      subsequent action shall be considered a second or subsequent offense, respectively, provided the
             42937      preceding action resulted in a first or second offense, respectively.
             42938          (3) Any penalty which is not paid may be collected by the director by either referring
             42939      the matter to a collection agency or bringing an action in the district court of the county in
             42940      which the person against whom the penalty is imposed resides or in the county where the office
             42941      of the director is located. Any county attorney or the attorney general of the state shall provide
             42942      legal assistance and advice to the director in any action to collect the penalty. In any action
             42943      brought to enforce the provisions of this section, reasonable attorney's fees and costs shall be
             42944      awarded to the division.
             42945          Section 947. Section 58-77-302 is amended to read:
             42946           58-77-302. Qualifications for licensure.
             42947          Each applicant for licensure as a licensed Direct-entry midwife shall:
             42948          (1) submit an application in a form prescribed by the division;
             42949          (2) pay a fee as determined by the department under Section [ 63-38-3.2 ] 63J-1-303 ;
             42950          (3) be of good moral character;
             42951          (4) hold a Certified Professional Midwife certificate in good standing with the North
             42952      American Registry of Midwives or equivalent certification approved by the division in
             42953      collaboration with the board;

             42954          (5) hold current adult and infant CPR and newborn resuscitation certifications through
             42955      an organization approved by the division in collaboration with the board; and
             42956          (6) provide documentation of successful completion of an approved pharmacology
             42957      course as defined by division rule.
             42958          Section 948. Section 59-1-210 is amended to read:
             42959           59-1-210. General powers and duties.
             42960          The powers and duties of the commission are as follows:
             42961          (1) to sue and be sued in its own name;
             42962          (2) to adopt rules and policies consistent with the Constitution and laws of this state to
             42963      govern the commission, executive director, division directors, and commission employees in the
             42964      performance of their duties;
             42965          (3) to adopt rules and policies consistent with the Constitution and laws of the state, to
             42966      govern county boards and officers in the performance of any duty relating to assessment,
             42967      equalization, and collection of taxes;
             42968          (4) to prescribe the use of forms relating to the assessment of property for state or local
             42969      taxation, the equalization of those assessments, the reporting of property or income for state or
             42970      local taxation purposes, or for the computation of those taxes and the reporting of any
             42971      information, statistics, or data required by the commission;
             42972          (5) to administer and supervise the tax laws of the state;
             42973          (6) to prepare and maintain from year to year a complete record of all lands subject to
             42974      taxation in this state, and all machinery used in mining and all property or surface improvements
             42975      upon or appurtenant to mines or mining claims;
             42976          (7) to exercise general supervision over assessors and county boards of equalization
             42977      including the authority to enforce Section 59-2-303.1 , and over other county officers in the
             42978      performance of their duties relating to the assessment of property and collection of taxes, so
             42979      that all assessments of property are just and equal, according to fair market value, and that the
             42980      tax burden is distributed without favor or discrimination;
             42981          (8) to reconvene any county board of equalization which, when reconvened, may only

             42982      address business approved by the commission and extend the time for which any county board
             42983      of equalization may sit for the equalization of assessments;
             42984          (9) to confer with, advise, and direct county treasurers, assessors, and other county
             42985      officers in matters relating to the assessment and equalization of property for taxation and the
             42986      collection of taxes;
             42987          (10) to provide for and hold annually at such time and place as may be convenient a
             42988      district or state convention of county assessors, auditors, and other county officers to consider
             42989      and discuss matters relative to taxation, uniformity of valuation, and changes in the law relative
             42990      to taxation and methods of assessment, to which county assessors and other officers called to
             42991      attend shall attend at county expense;
             42992          (11) to direct proceedings, actions, and prosecutions to enforce the laws relating to the
             42993      penalties, liabilities, and punishments of public officers, persons, and officers or agents of
             42994      corporations for failure or neglect to comply with the statutes governing the reporting,
             42995      assessment, and taxation of property;
             42996          (12) to cause complaints to be made in the proper court seeking removal from office of
             42997      assessors, auditors, members of county boards, and other assessing, taxing, or disbursing
             42998      officers, who are guilty of official misconduct or neglect of duty;
             42999          (13) to require county attorneys to immediately institute and prosecute actions and
             43000      proceedings in respect to penalties, forfeitures, removals, and punishments for violations of the
             43001      laws relating to the assessment and taxation of property in their respective counties;
             43002          (14) to require any person to furnish any information required by the commission to
             43003      ascertain the value and the relative burden borne by all kinds of property in the state, and to
             43004      require from all state and local officers any information necessary for the proper discharge of
             43005      the duties of the commission;
             43006          (15) to examine all records relating to the valuation of property of any person;
             43007          (16) to subpoena witnesses to appear and give testimony and produce records relating
             43008      to any matter before the commission;
             43009          (17) to cause depositions of witnesses to be taken as in civil actions at the request of

             43010      the commission or any party to any matter or proceeding before the commission;
             43011          (18) to authorize any member or employee of the commission to administer oaths and
             43012      affirmations in any matter or proceeding relating to the exercise of the powers and duties of the
             43013      commission;
             43014          (19) to visit periodically each county of the state, to investigate and direct the work and
             43015      methods of local assessors and other officials in the assessment, equalization, and taxation of
             43016      property, and to ascertain whether the law requiring the assessment of all property not exempt
             43017      from taxation, and the collection of taxes, have been properly administered and enforced;
             43018          (20) to carefully examine all cases where evasion or violation of the laws for assessment
             43019      and taxation of property is alleged, to ascertain whether existing laws are defective or
             43020      improperly administered;
             43021          (21) to furnish to the governor from time to time such assistance and information as the
             43022      governor requires;
             43023          (22) to transmit to the governor and to each member of the Legislature
             43024      recommendations as to legislation which will correct or eliminate defects in the operation of the
             43025      tax laws and will equalize the burden of taxation within the state;
             43026          (23) to correct any error in any assessment made by it at any time before the tax is due
             43027      and report the correction to the county auditor, who shall enter the corrected assessment upon
             43028      the assessment roll;
             43029          (24) to compile and publish statistics relating to taxation in the state and prepare and
             43030      submit an annual budget to the governor for inclusion in the state budget to be submitted to the
             43031      Legislature;
             43032          (25) to perform any further duties imposed by law, and exercise all powers necessary in
             43033      the performance of its duties;
             43034          (26) to adopt a schedule of fees assessed for services provided by the commission,
             43035      unless otherwise provided by statute. The fee shall be reasonable and fair, and shall reflect the
             43036      cost of services provided. Each fee established in this manner shall be submitted to and
             43037      approved by the Legislature as part of the commission's annual appropriations request. The

             43038      commission may not charge or collect any fee proposed in this manner without approval by the
             43039      Legislature;
             43040          (27) to comply with the procedures and requirements of [Title 63, Chapter 46b] Title
             43041      63G, Chapter 4, Administrative Procedures Act, in its adjudicative proceedings; and
             43042          (28) to provide data to the executive director of the Department of Health for purposes
             43043      of the distributions required by Section 26-9-4 .
             43044          Section 949. Section 59-1-302 is amended to read:
             43045           59-1-302. Penalty for nonpayment of certain taxes -- Jeopardy proceedings.
             43046          (1) This section applies to the following:
             43047          (a) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             43048          (b) a tax under Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax
             43049      Act;
             43050          (c) a tax under Chapter 10, Part 4, Withholding of Tax;
             43051          (d) (i) except as provided in Subsection (1)(d)(ii), a tax under Chapter 12, Sales and
             43052      Use Tax Act; and
             43053          (ii) notwithstanding Subsection (1)(d)(i), this section does not apply to Chapter 12, Part
             43054      9, Sales Tax Refund for Qualified Emergency Food Agencies;
             43055          (e) a tax under Chapter 13, Part 2, Motor Fuel;
             43056          (f) a tax under Chapter 13, Part 3, Special Fuel; and
             43057          (g) a tax under Chapter 13, Part 4, Aviation Fuel.
             43058          (2) Any person required to collect, truthfully account for, and pay over any tax listed in
             43059      Subsection (1) who willfully fails to collect the tax, fails to truthfully account for and pay over
             43060      the tax, or attempts in any manner to evade or defeat any tax or the payment of the tax, shall be
             43061      liable for a penalty equal to the total amount of the tax evaded, not collected, not accounted for,
             43062      or not paid over. This penalty is in addition to other penalties provided by law.
             43063          (3) (a) If the commission determines in accordance with Subsection (2) that a person is
             43064      liable for the penalty, the commission shall notify the taxpayer of the proposed penalty.
             43065          (b) The notice of proposed penalty shall:

             43066          (i) set forth the basis of the assessment; and
             43067          (ii) be mailed by certified mail to the person's last-known address.
             43068          (4) Upon receipt of the notice of proposed penalty, the person against whom the
             43069      penalty is proposed may:
             43070          (a) pay the amount of the proposed penalty at the place and time stated in the notice; or
             43071          (b) proceed in accordance with the review procedures of Subsection (5).
             43072          (5) Any person against whom a penalty has been proposed in accordance with
             43073      Subsections (2) and (3) may contest the proposed penalty by filing a petition for an adjudicative
             43074      proceeding with the commission.
             43075          (6) If the commission determines that the collection of the penalty is in jeopardy,
             43076      nothing in this section may prevent the immediate collection of the penalty in accordance with
             43077      the procedures and requirements for emergency proceedings in [Title 63, Chapter 46b] Title
             43078      63G, Chapter 4, Administrative Procedures Act.
             43079          (7) (a) In any hearing before the commission and in any judicial review of the hearing,
             43080      the commission and the court shall consider any inference and evidence that a person has
             43081      willfully failed to collect, truthfully account for, or pay over any tax listed in Subsection (1).
             43082          (b) It is prima facie evidence that a person has willfully failed to collect, truthfully
             43083      account for, or pay over any of the taxes listed in Subsection (1) if the commission or a court
             43084      finds that the person charged with the responsibility of collecting, accounting for, or paying over
             43085      the taxes:
             43086          (i) made a voluntary, conscious, and intentional decision to prefer other creditors over
             43087      the state government or utilize the tax money for personal purposes;
             43088          (ii) recklessly disregarded obvious or known risks, which resulted in the failure to
             43089      collect, account for, or pay over the tax; or
             43090          (iii) failed to investigate or to correct mismanagement, having notice that the tax was
             43091      not or is not being collected, accounted for, or paid over as provided by law.
             43092          (c) The commission or court need not find a bad motive or specific intent to defraud the
             43093      government or deprive it of revenue to establish willfulness under this section.

             43094          (d) (i) If the commission determines that a person is liable for the penalty under
             43095      Subsection (2), the commission shall assess the penalty and give notice and demand for
             43096      payment.
             43097          (ii) The notice and demand for payment described in Subsection (7)(d)(i) shall be mailed
             43098      by certified mail to the person's last-known address.
             43099          Section 950. Section 59-1-304 is amended to read:
             43100           59-1-304. Definition -- Limitations on maintaining a class action that relates to a
             43101      tax or fee -- Requirements for a person to be included as a member of a class in a class
             43102      action -- Rulemaking authority -- Commission report to Revenue and Taxation Interim
             43103      Committee -- Limitations on recovery by members of a class -- Severability.
             43104          (1) As used in this section, "tax or fee" means a tax or fee administered by the
             43105      commission.
             43106          (2) A class action that relates to a tax or fee may not be maintained in any court if a
             43107      claim sought by a representative party seeking to maintain the class action arises as a result of:
             43108          (a) a person collecting a tax or fee from the representative party if the representative
             43109      party is not required by law to pay the tax or fee; or
             43110          (b) any of the following that requires a change in the manner in which a tax or fee is
             43111      required to be collected or paid:
             43112          (i) an administrative rule made by the commission;
             43113          (ii) a private letter ruling issued by the commission; or
             43114          (iii) a decision issued by:
             43115          (A) the commission; or
             43116          (B) a court of competent jurisdiction.
             43117          (3) (a) A person may be included as a member of a class in a class action relating to a
             43118      tax or fee only if the person:
             43119          (i) exhausts all administrative remedies with the commission; and
             43120          (ii) requests in writing to be included as a member of the class.
             43121          (b) (i) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah

             43122      Administrative Rulemaking Act, the commission shall make rules to simplify and expedite the
             43123      administrative remedies a person shall exhaust as required by Subsection (3)(a).
             43124          (ii) The rules required by Subsection (3)(b)(i) may include rules providing for:
             43125          (A) expedited filing procedures and forms;
             43126          (B) consolidation of hearings procedures as may be reasonably needed to accommodate
             43127      potential inclusion of similarly situated persons; and
             43128          (C) the designation of test or sample cases to avoid multiple hearings.
             43129          (iii) The commission shall report to the Revenue and Taxation Interim Committee on
             43130      the status of the rules required by this Subsection (3)(b) on or before the October 2004 interim
             43131      meeting.
             43132          (4) Subject to Subsection (5), in a class action brought under this section against the
             43133      state or its political subdivisions in which members of the class are awarded a refund or credit of
             43134      a tax or fee by a court of competent jurisdiction, the total amount that may be recovered by
             43135      members of the class may not exceed the difference between:
             43136          (a) the sum of:
             43137          (i) the amount of the refund or credit awarded to members of the class; and
             43138          (ii) interest as provided in Section 59-1-402 ; and
             43139          (b) if awarded in accordance with Subsection (5), the sum of:
             43140          (i) reasonable costs; and
             43141          (ii) reasonable [attorneys'] attorney fees.
             43142          (5) (a) For purposes of Subsection (4), at the discretion of the court, the court may
             43143      award:
             43144          (i) reasonable costs as determined by the court; and
             43145          (ii) reasonable [attorneys'] attorney fees determined under Subsection (5)(b).
             43146          (b) Reasonable [attorneys'] attorney fees awarded in a class action may not exceed a
             43147      reasonable hourly rate for work actually performed:
             43148          (i) as determined by the court; and
             43149          (ii) taking into account all facts and circumstances that the court considers reasonable.

             43150          (6) If any provision of this section, or the application of any provision of this section to
             43151      any person or circumstance is held unconstitutional or invalid by a court of competent
             43152      jurisdiction, the remainder of the section shall be given effect without the invalid provision or
             43153      application.
             43154          Section 951. Section 59-1-305 is amended to read:
             43155           59-1-305. Convenience fee to cover the costs of electronic payments.
             43156          (1) As used in this section:
             43157          (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221 .
             43158          (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221 .
             43159          (2) The commission may collect a convenience electronic payment fee established in
             43160      accordance with the procedures and requirements of Section [ 63-38-3.2 ] 63J-1-303 to cover
             43161      the costs of electronic payments of taxes and fees administered by the commission.
             43162          (3) Notwithstanding any other provisions of this title, the commission shall use a fee
             43163      imposed under this section as a dedicated credit to cover the costs of electronic payments.
             43164          Section 952. Section 59-1-401 is amended to read:
             43165           59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
             43166      of limitations -- Commission authority to waive, reduce, or compromise penalty or
             43167      interest.
             43168          (1) As used in this section:
             43169          (a) (i) "Nonqualifying obligation" means a charge, fee, payment, or tax administered by
             43170      the commission.
             43171          (ii) "Nonqualifying obligation" does not include:
             43172          (A) beginning on the phase I activation date, a phase I obligation; or
             43173          (B) beginning on the phase II activation date, a phase II obligation.
             43174          (b) "Phase I activation date" means the earlier of:
             43175          (i) the day on which the commission's GenTax system is activated to administer all
             43176      phase I obligations; or
             43177          (ii) May 1, 2008.

             43178          (c) "Phase I obligation" means:
             43179          (i) a fee under Section 19-6-808 ;
             43180          (ii) a tax under Chapter 10, Part 1, Determination and Reporting of Tax Liability and
             43181      Information;
             43182          (iii) a tax under Chapter 10, Part 2, Trusts and Estates;
             43183          (iv) a tax under Chapter 10, Part 12, Single Rate Individual Income Tax Act; or
             43184          (v) a tax under Chapter 12, Sales and Use Tax Act.
             43185          (d) "Phase II activation date" means the earlier of:
             43186          (i) the day on which the commission's GenTax system is activated to administer all
             43187      phase II obligations; or
             43188          (ii) May 4, 2009.
             43189          (e) (i) "Phase II obligation" means:
             43190          (A) a payment under Chapter 6, Mineral Production Tax Withholding;
             43191          (B) a tax under Chapter 7, Corporate Franchise and Income Taxes;
             43192          (C) a payment under Chapter 10, Part 4, Withholding of Tax; or
             43193          (D) a tax paid on a return filed in accordance with Section 59-10-507 .
             43194          (ii) "Phase II obligation" does not include a payment of estimated tax under Section
             43195      59-7-504 .
             43196          (2) (a) The due date for filing a return is:
             43197          (i) if the person filing the return is not allowed by law an extension of time for filing the
             43198      return, the day on which the return is due as provided by law; or
             43199          (ii) if the person filing the return is allowed by law an extension of time for filing the
             43200      return, the last day of that extension of time.
             43201          (b) (i) A penalty in the amount described in Subsection (2)(b)(ii) is imposed if:
             43202          (A) a person is required to file a return with respect to a nonqualifying obligation; and
             43203          (B) the person described in Subsection (2)(b)(i)(A) files the return after the due date
             43204      described in Subsection (2)(a).
             43205          (ii) For purposes of Subsection (2)(b)(i), the penalty is an amount equal to the greater

             43206      of:
             43207          (A) $20; or
             43208          (B) 10% of the unpaid nonqualifying obligation due on the return.
             43209          (c) (i) A penalty in the amount described in Subsection (2)(c)(ii) is imposed if a person:
             43210          (A) (I) is required to file a return:
             43211          (Aa) on or after the phase I activation date; and
             43212          (Bb) with respect to a phase I obligation; and
             43213          (II) files the return after the due date described in Subsection (2)(a); or
             43214          (B) (I) is required to file a return:
             43215          (Aa) on or after the phase II activation date; and
             43216          (Bb) with respect to a phase II obligation; and
             43217          (II) files the return after the due date described in Subsection (2)(a).
             43218          (ii) For purposes of Subsection (2)(c)(i), the penalty is an amount equal to the greater
             43219      of:
             43220          (A) $20; or
             43221          (B) (I) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             43222      the return is filed no later than five days after the due date described in Subsection (2)(a);
             43223          (II) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             43224      return is filed more than five days after the due date but no later than 15 days after the due date
             43225      described in Subsection (2)(a); or
             43226          (III) 10% of the unpaid phase I obligation or phase II obligation due on the return if the
             43227      return is filed more than 15 days after the due date described in Subsection (2)(a).
             43228          (d) This Subsection (2) does not apply to:
             43229          (i) an amended return; or
             43230          (ii) a return with no tax due.
             43231          (3) (a) If a person fails to pay a tax, fee, or charge due, the person is subject to a
             43232      penalty as provided in this Subsection (3).
             43233          (b) (i) A penalty in the amount described in Subsection (3)(b)(ii) is imposed if:

             43234          (A) a person files a return with respect to a nonqualifying obligation on or before the
             43235      due date for filing a return described in Subsection (2)(a), but fails to pay the nonqualifying
             43236      obligation due on the return on or before that due date;
             43237          (B) a person:
             43238          (I) is subject to a penalty under Subsection (2)(b); and
             43239          (II) fails to pay a nonqualifying obligation due on a return within a 90-day period after
             43240      the due date for filing a return described in Subsection (2)(a);
             43241          (C) a person:
             43242          (I) is mailed a notice of deficiency; and
             43243          (II) within a 30-day period after the day on which the notice of deficiency described in
             43244      Subsection (3)(b)(i)(C)(I) is mailed:
             43245          (Aa) does not file a petition for redetermination or a request for agency action; and
             43246          (Bb) fails to pay a nonqualifying obligation due on a return;
             43247          (D) (I) the commission:
             43248          (Aa) issues an order constituting final agency action resulting from a timely filed
             43249      petition for redetermination or a timely filed request for agency action; or
             43250          (Bb) is considered to have denied a request for reconsideration under Subsection
             43251      [ 63-46b-13 ] 63G-4-302 (3)(b) resulting from a timely filed petition for redetermination or a
             43252      timely filed request for agency action; and
             43253          (II) a person fails to pay a nonqualifying obligation due on a return within a 30-day
             43254      period after the date the commission:
             43255          (Aa) issues the order constituting final agency action described in Subsection
             43256      (3)(b)(i)(D)(I)(Aa); or
             43257          (Bb) is considered to have denied the request for reconsideration described in
             43258      Subsection (3)(b)(i)(D)(I)(Bb); or
             43259          (E) a person fails to pay a nonqualifying obligation within a 30-day period after the date
             43260      of a final judicial decision resulting from a timely filed petition for judicial review.
             43261          (ii) For purposes of Subsection (3)(b)(i), the penalty is an amount equal to the greater

             43262      of:
             43263          (A) $20; or
             43264          (B) 10% of the unpaid nonqualifying obligation due on the return.
             43265          (c) (i) This Subsection (3)(c) applies to a penalty:
             43266          (A) imposed on or after the phase I activation date with respect to a phase I obligation;
             43267      or
             43268          (B) imposed on or after the phase II activation date with respect to a phase II
             43269      obligation.
             43270          (ii) (A) The penalty described in Subsection (3)(c)(ii)(B) applies if a person:
             43271          (I) with respect to a phase I obligation:
             43272          (Aa) files a return on or before the due date for filing a return described in Subsection
             43273      (2)(a); and
             43274          (Bb) fails to pay the phase I obligation due on the return on or before the due date
             43275      described in Subsection (2)(a); or
             43276          (II) with respect to a phase II obligation:
             43277          (Aa) files a return on or before the due date for filing a return described in Subsection
             43278      (2)(a); and
             43279          (Bb) fails to pay the phase II obligation due on the return on or before the due date
             43280      described in Subsection (2)(a).
             43281          (B) For purposes of Subsection (3)(c)(ii)(A), the penalty is an amount equal to the
             43282      greater of:
             43283          (I) $20; or
             43284          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             43285      the phase I obligation or phase II obligation due on the return is paid no later than five days
             43286      after the due date for filing a return described in Subsection (2)(a);
             43287          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             43288      phase I obligation or phase II obligation due on the return is paid more than five days after the
             43289      due date for filing a return described in Subsection (2)(a) but no later than 15 days after that due

             43290      date; or
             43291          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if the
             43292      phase I obligation or phase II obligation due on the return is paid more than 15 days after the
             43293      due date for filing a return described in Subsection (2)(a).
             43294          (iii) (A) A person is subject to a penalty as provided in Subsection (3)(c)(iii)(B) if the
             43295      person:
             43296          (I) is subject to a penalty under Subsection (2)(c); and
             43297          (II) fails to pay a phase I obligation or phase II obligation due on a return within a
             43298      90-day period after the due date for filing a return described in Subsection (2)(a).
             43299          (B) For purposes of Subsection (3)(c)(iii)(A), the penalty is an amount equal to the
             43300      greater of:
             43301          (I) $20; or
             43302          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             43303      the phase I obligation or phase II obligation due on the return is paid no later than five days
             43304      after the last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II);
             43305          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             43306      phase I obligation or phase II obligation due on the return is paid more than five days after the
             43307      last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II) but no later than 15 days
             43308      after the last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II); or
             43309          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if the
             43310      phase I obligation or phase II obligation due on the return is paid more than 15 days after the
             43311      last day of the 90-day period described in Subsection (3)(c)(iii)(A)(II).
             43312          (iv) (A) A person is subject to a penalty as provided in Subsection (3)(c)(iv)(B) if the
             43313      person:
             43314          (I) is mailed a notice of deficiency; and
             43315          (II) within a 30-day period after the day on which the notice of deficiency described in
             43316      Subsection (3)(c)(iv)(A)(I) is mailed:
             43317          (Aa) does not file a petition for redetermination or a request for agency action; and

             43318          (Bb) fails to pay a phase I obligation or phase II obligation due on a return.
             43319          (B) For purposes of Subsection (3)(c)(iv)(A), the penalty is an amount equal to the
             43320      greater of:
             43321          (I) $20; or
             43322          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             43323      the phase I obligation or phase II obligation due on the return is paid no later than five days
             43324      after the last day of the 30-day period described in Subsection (3)(c)(iv)(A)(II);
             43325          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             43326      phase I obligation or phase II obligation due on the return is paid more than five days after the
             43327      last day of the 30-day period described in Subsection (3)(c)(iv)(A)(II) but no later than 15 days
             43328      after the last day of the 30-day period described in Subsection (3)(c)(iv)(A)(II); or
             43329          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if the
             43330      phase I obligation or phase II obligation due on the return is paid more than 15 days after the
             43331      last day of the 30-day period described in Subsection (3)(c)(iv)(A)(II).
             43332          (v) (A) A person is subject to a penalty as provided in Subsection (3)(c)(v)(B) if:
             43333          (I) the commission:
             43334          (Aa) issues an order constituting final agency action resulting from a timely filed
             43335      petition for redetermination or a timely filed request for agency action; or
             43336          (Bb) is considered to have denied a request for reconsideration under Subsection
             43337      [ 63-46b-13 ] 63G-4-302 (3)(b) resulting from a timely filed petition for redetermination or a
             43338      timely filed request for agency action; and
             43339          (II) the person fails to pay a phase I obligation or phase II obligation due on a return
             43340      within a 30-day period after the date the commission:
             43341          (Aa) issues the order constituting final agency action described in Subsection
             43342      (3)(c)(v)(A)(I)(Aa); or
             43343          (Bb) is considered to have denied the request for reconsideration described in
             43344      Subsection (3)(c)(v)(A)(I)(Bb).
             43345          (B) For purposes of Subsection (3)(c)(v)(A), the penalty is an amount equal to the

             43346      greater of:
             43347          (I) $20; or
             43348          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             43349      the phase I obligation or phase II obligation due on the return is paid no later than five days
             43350      after the last day of the 30-day period described in Subsection (3)(c)(v)(A)(II);
             43351          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             43352      phase I obligation or phase II obligation due on the return is paid more than five days after the
             43353      last day of the 30-day period described in Subsection (3)(c)(v)(A)(II) but no later than 15 days
             43354      after the last day of the 30-day period described in Subsection (3)(c)(v)(A)(II); or
             43355          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if the
             43356      phase I obligation or phase II obligation due on the return is paid more than 15 days after the
             43357      last day of the 30-day period described in Subsection (3)(c)(v)(A)(II).
             43358          (vi) (A) A person is subject to a penalty as provided in Subsection (3)(c)(vi)(B) if
             43359      within a 30-day period after the date of a final judicial decision resulting from a timely filed
             43360      petition for judicial review, the person fails to pay a phase I obligation or phase II obligation.
             43361          (B) For purposes of Subsection (3)(c)(vi)(A), the penalty is an amount equal to the
             43362      greater of:
             43363          (I) $20; or
             43364          (II) (Aa) 2% of the unpaid phase I obligation or phase II obligation due on the return if
             43365      the phase I obligation or phase II obligation due on the return is paid no later than five days
             43366      after the last day of the 30-day period described in Subsection (3)(c)(vi)(A);
             43367          (Bb) 5% of the unpaid phase I obligation or phase II obligation due on the return if the
             43368      phase I obligation or phase II obligation due on the return is paid more than five days after the
             43369      last day of the 30-day period described in Subsection (3)(c)(vi)(A) but no later than 15 days
             43370      after the last day of the 30-day period described in Subsection (3)(c)(vi)(A); or
             43371          (Cc) 10% of the unpaid phase I obligation or phase II obligation due on the return if the
             43372      phase I obligation or phase II obligation due on the return is paid more than 15 days after the
             43373      last day of the 30-day period described in Subsection (3)(c)(vi)(A).

             43374          (4) (a) Beginning January 1, 1995, in the case of any underpayment of estimated tax or
             43375      quarterly installments required by Sections 59-5-107 , 59-5-207 , 59-7-504 , and 59-9-104 , there
             43376      shall be added a penalty in an amount determined by applying the interest rate provided under
             43377      Section 59-1-402 plus four percentage points to the amount of the underpayment for the period
             43378      of the underpayment.
             43379          (b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
             43380      excess of the required installment over the amount, if any, of the installment paid on or before
             43381      the due date for the installment.
             43382          (ii) The period of the underpayment shall run from the due date for the installment to
             43383      whichever of the following dates is the earlier:
             43384          (A) the original due date of the tax return, without extensions, for the taxable year; or
             43385          (B) with respect to any portion of the underpayment, the date on which that portion is
             43386      paid.
             43387          (iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
             43388      against unpaid required installments in the order in which the installments are required to be
             43389      paid.
             43390          (5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
             43391      person allowed by law an extension of time for filing a corporate franchise or income tax return
             43392      under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax return
             43393      under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount described in
             43394      Subsection (5)(b) if, on or before the day on which the return is due as provided by law, not
             43395      including the extension of time, the person fails to pay:
             43396          (i) for a person filing a corporate franchise or income tax return under Chapter 7,
             43397      Corporate Franchise and Income Taxes, the payment required by Subsection 59-7-507 (1)(b); or
             43398          (ii) for a person filing an individual income tax return under Chapter 10, Individual
             43399      Income Tax Act, the payment required by Subsection 59-10-516 (2).
             43400          (b) For purposes of Subsection (5)(a), the penalty per month during the period of the
             43401      extension of time for filing the return is an amount equal to 2% of the unpaid tax due on the

             43402      return.
             43403          (6) If a person does not file a return within an extension of time allowed by Section
             43404      59-7-505 or 59-10-516 , the person:
             43405          (a) is not subject to a penalty in the amount described in Subsection (5)(b); and
             43406          (b) is subject to a penalty in an amount equal to the sum of:
             43407          (i) a late file penalty in an amount equal to the greater of:
             43408          (A) $20; or
             43409          (B) 10% of the unpaid tax due on the return; and
             43410          (ii) a late pay penalty in an amount equal to the greater of:
             43411          (A) $20; or
             43412          (B) 10% of the unpaid tax due on the return.
             43413          (7) (a) Additional penalties for underpayments of tax are as provided in this Subsection
             43414      (7)(a).
             43415          (i) Except as provided in Subsection (7)(c), if any underpayment of tax is due to
             43416      negligence, the penalty is 10% of the underpayment.
             43417          (ii) Except as provided in Subsection (7)(d), if any underpayment of tax is due to
             43418      intentional disregard of law or rule, the penalty is 15% of the underpayment.
             43419          (iii) For intent to evade the tax, the penalty is the greater of $500 per period or 50% of
             43420      the tax due.
             43421          (iv) If the underpayment is due to fraud with intent to evade the tax, the penalty is the
             43422      greater of $500 per period or 100% of the underpayment.
             43423          (b) If the commission determines that a person is liable for a penalty imposed under
             43424      Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the taxpayer of the proposed
             43425      penalty.
             43426          (i) The notice of proposed penalty shall:
             43427          (A) set forth the basis of the assessment; and
             43428          (B) be mailed by certified mail, postage prepaid, to the person's last-known address.
             43429          (ii) Upon receipt of the notice of proposed penalty, the person against whom the

             43430      penalty is proposed may:
             43431          (A) pay the amount of the proposed penalty at the place and time stated in the notice;
             43432      or
             43433          (B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
             43434          (iii) Any person against whom a penalty has been proposed in accordance with this
             43435      Subsection (7) may contest the proposed penalty by filing a petition for an adjudicative
             43436      proceeding with the commission.
             43437          (iv) (A) If the commission determines that a person is liable for a penalty under this
             43438      Subsection (7), the commission shall assess the penalty and give notice and demand for
             43439      payment.
             43440          (B) The notice and demand for payment described in Subsection (7)(b)(iv)(A) shall be
             43441      mailed by certified mail, postage prepaid, to the person's last-known address.
             43442          (c) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not
             43443      subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
             43444          (i) a court of competent jurisdiction issues a final unappealable judgment or order
             43445      determining that:
             43446          (A) the seller meets one or more of the criteria described in Subsection
             43447      59-12-107 (1)(a); and
             43448          (B) the commission or a county, city, or town may require the seller to collect a tax
             43449      under Subsection 59-12-103 (2)(a) or (b); or
             43450          (ii) the commission issues a final unappealable administrative order determining that:
             43451          (A) the seller meets one or more of the criteria described in Subsection
             43452      59-12-107 (1)(a); and
             43453          (B) the commission or a county, city, or town may require the seller to collect a tax
             43454      under Subsection 59-12-103 (2)(a) or (b).
             43455          (d) A seller that voluntarily collects a tax under Subsection 59-12-107 (1)(b) is not
             43456      subject to the penalty under Subsection (7)(a)(ii) if:
             43457          (i) (A) a court of competent jurisdiction issues a final unappealable judgment or order

             43458      determining that:
             43459          (I) the seller meets one or more of the criteria described in Subsection 59-12-107 (1)(a);
             43460      and
             43461          (II) the commission or a county, city, or town may require the seller to collect a tax
             43462      under Subsection 59-12-103 (2)(a) or (b); or
             43463          (B) the commission issues a final unappealable administrative order determining that:
             43464          (I) the seller meets one or more of the criteria described in Subsection 59-12-107 (1)(a);
             43465      and
             43466          (II) the commission or a county, city, or town may require the seller to collect a tax
             43467      under Subsection 59-12-103 (2)(a) or (b); and
             43468          (ii) the seller's intentional disregard of law or rule is warranted by existing law or by a
             43469      nonfrivolous argument for the extension, modification, or reversal of existing law or the
             43470      establishment of new law.
             43471          (8) Except as provided in Section 59-12-105 , the penalty for failure to file an
             43472      information return, information report, or a complete supporting schedule is $50 for each
             43473      information return, information report, or supporting schedule up to a maximum of $1,000.
             43474          (9) If any taxpayer, in furtherance of a frivolous position, has a prima facie intent to
             43475      delay or impede administration of the tax law and files a purported return that fails to contain
             43476      information from which the correctness of reported tax liability can be determined or that clearly
             43477      indicates that the tax liability shown must be substantially incorrect, the penalty is $500.
             43478          (10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
             43479      Subsection 59-12-108 (1)(a)(ii):
             43480          (i) is subject to a penalty described in Subsection (2); and
             43481          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             43482      allowable under Subsection 59-12-108 (2).
             43483          (b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
             43484      required by Subsection 59-12-108 (1)(a)(ii)(B):
             43485          (i) is subject to a penalty described in Subsection (2); and

             43486          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             43487      allowable under Subsection 59-12-108 (2).
             43488          (11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that person:
             43489          (i) commits an act described in Subsection (11)(b) with respect to one or more of the
             43490      following documents:
             43491          (A) a return;
             43492          (B) an affidavit;
             43493          (C) a claim; or
             43494          (D) a document similar to Subsections (11)(a)(i)(A) through (C);
             43495          (ii) knows or has reason to believe that the document described in Subsection (11)(a)(i)
             43496      will be used in connection with any material matter administered by the commission; and
             43497          (iii) knows that the document described in Subsection (11)(a)(i), if used in connection
             43498      with any material matter administered by the commission, would result in an understatement of
             43499      another person's liability for a tax, fee, or charge administered by the commission.
             43500          (b) The following acts apply to Subsection (11)(a)(i):
             43501          (i) preparing any portion of a document described in Subsection (11)(a)(i);
             43502          (ii) presenting any portion of a document described in Subsection (11)(a)(i);
             43503          (iii) procuring any portion of a document described in Subsection (11)(a)(i);
             43504          (iv) advising in the preparation or presentation of any portion of a document described
             43505      in Subsection (11)(a)(i);
             43506          (v) aiding in the preparation or presentation of any portion of a document described in
             43507      Subsection (11)(a)(i);
             43508          (vi) assisting in the preparation or presentation of any portion of a document described
             43509      in Subsection (11)(a)(i); or
             43510          (vii) counseling in the preparation or presentation of any portion of a document
             43511      described in Subsection (11)(a)(i).
             43512          (c) For purposes of Subsection (11)(a), the penalty:
             43513          (i) shall be imposed by the commission;

             43514          (ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
             43515      the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
             43516          (iii) is in addition to any other penalty provided by law.
             43517          (d) The commission may seek a court order to enjoin a person from engaging in
             43518      conduct that is subject to a penalty under this Subsection (11).
             43519          (e) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             43520      Administrative Rulemaking Act, the commission may make rules prescribing the documents that
             43521      are similar to Subsections (11)(a)(i)(A) through (C).
             43522          (12) (a) As provided in Section 76-8-1101 , criminal offenses and penalties are as
             43523      provided in Subsections (12)(b) through (e).
             43524          (b) (i) Any person who is required by this title or any laws the commission administers
             43525      or regulates to register with or obtain a license or permit from the commission, who operates
             43526      without having registered or secured a license or permit, or who operates when the registration,
             43527      license, or permit is expired or not current, is guilty of a class B misdemeanor.
             43528          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(b)(i), the
             43529      penalty may not:
             43530          (A) be less than $500; or
             43531          (B) exceed $1,000.
             43532          (c) (i) Any person who, with intent to evade any tax or requirement of this title or any
             43533      lawful requirement of the commission, fails to make, render, sign, or verify any return or to
             43534      supply any information within the time required by law, or who makes, renders, signs, or
             43535      verifies any false or fraudulent return or statement, or who supplies any false or fraudulent
             43536      information, is guilty of a third degree felony.
             43537          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(c)(i), the
             43538      penalty may not:
             43539          (A) be less than $1,000; or
             43540          (B) exceed $5,000.
             43541          (d) (i) Any person who intentionally or willfully attempts to evade or defeat any tax or

             43542      the payment of a tax is, in addition to other penalties provided by law, guilty of a second degree
             43543      felony.
             43544          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(d)(i), the
             43545      penalty may not:
             43546          (A) be less than $1,500; or
             43547          (B) exceed $25,000.
             43548          (e) (i) A person is guilty of a second degree felony if that person commits an act:
             43549          (A) described in Subsection (12)(e)(ii) with respect to one or more of the following
             43550      documents:
             43551          (I) a return;
             43552          (II) an affidavit;
             43553          (III) a claim; or
             43554          (IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
             43555          (B) subject to Subsection (12)(e)(iii), with knowledge that the document described in
             43556      Subsection (12)(e)(i)(A):
             43557          (I) is false or fraudulent as to any material matter; and
             43558          (II) could be used in connection with any material matter administered by the
             43559      commission.
             43560          (ii) The following acts apply to Subsection (12)(e)(i):
             43561          (A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
             43562          (B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
             43563          (C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
             43564          (D) advising in the preparation or presentation of any portion of a document described
             43565      in Subsection (12)(e)(i)(A);
             43566          (E) aiding in the preparation or presentation of any portion of a document described in
             43567      Subsection (12)(e)(i)(A);
             43568          (F) assisting in the preparation or presentation of any portion of a document described
             43569      in Subsection (12)(e)(i)(A); or

             43570          (G) counseling in the preparation or presentation of any portion of a document
             43571      described in Subsection (12)(e)(i)(A).
             43572          (iii) This Subsection (12)(e) applies:
             43573          (A) regardless of whether the person for which the document described in Subsection
             43574      (12)(e)(i)(A) is prepared or presented:
             43575          (I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
             43576          (II) consented to the falsity of the document described in Subsection (12)(e)(i)(A); and
             43577          (B) in addition to any other penalty provided by law.
             43578          (iv) Notwithstanding Section 76-3-301 , for purposes of this Subsection (12)(e), the
             43579      penalty may not:
             43580          (A) be less than $1,500; or
             43581          (B) exceed $25,000.
             43582          (v) The commission may seek a court order to enjoin a person from engaging in
             43583      conduct that is subject to a penalty under this Subsection (12)(e).
             43584          (vi) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             43585      Administrative Rulemaking Act, the commission may make rules prescribing the documents that
             43586      are similar to Subsections (12)(e)(i)(A)(I) through (III).
             43587          (f) The statute of limitations for prosecution for a violation of this Subsection (12) is
             43588      the later of six years:
             43589          (i) from the date the tax should have been remitted; or
             43590          (ii) after the day on which the person commits the criminal offense.
             43591          (13) Upon making a record of its actions, and upon reasonable cause shown, the
             43592      commission may waive, reduce, or compromise any of the penalties or interest imposed under
             43593      this part.
             43594          Section 953. Section 59-1-403 is amended to read:
             43595           59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
             43596          (1) (a) Any of the following may not divulge or make known in any manner any
             43597      information gained by that person from any return filed with the commission:

             43598          (i) a tax commissioner;
             43599          (ii) an agent, clerk, or other officer or employee of the commission; or
             43600          (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
             43601      town.
             43602          (b) An official charged with the custody of a return filed with the commission is not
             43603      required to produce the return or evidence of anything contained in the return in any action or
             43604      proceeding in any court, except:
             43605          (i) in accordance with judicial order;
             43606          (ii) on behalf of the commission in any action or proceeding under:
             43607          (A) this title; or
             43608          (B) other law under which persons are required to file returns with the commission;
             43609          (iii) on behalf of the commission in any action or proceeding to which the commission is
             43610      a party; or
             43611          (iv) on behalf of any party to any action or proceeding under this title if the report or
             43612      facts shown by the return are directly involved in the action or proceeding.
             43613          (c) Notwithstanding Subsection (1)(b), a court may require the production of, and may
             43614      admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
             43615      pertinent to the action or proceeding.
             43616          (2) This section does not prohibit:
             43617          (a) a person or that person's duly authorized representative from receiving a copy of any
             43618      return or report filed in connection with that person's own tax;
             43619          (b) the publication of statistics as long as the statistics are classified to prevent the
             43620      identification of particular reports or returns; and
             43621          (c) the inspection by the attorney general or other legal representative of the state of the
             43622      report or return of any taxpayer:
             43623          (i) who brings action to set aside or review a tax based on the report or return;
             43624          (ii) against whom an action or proceeding is contemplated or has been instituted under
             43625      this title; or

             43626          (iii) against whom the state has an unsatisfied money judgment.
             43627          (3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
             43628      commission may by rule, made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             43629      Utah Administrative Rulemaking Act, provide for a reciprocal exchange of information with:
             43630          (i) the United States Internal Revenue Service; or
             43631          (ii) the revenue service of any other state.
             43632          (b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
             43633      corporate franchise tax, the commission may by rule, made in accordance with [Title 63,
             43634      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, share information
             43635      gathered from returns and other written statements with the federal government, any other
             43636      state, any of the political subdivisions of another state, or any political subdivision of this state,
             43637      except as limited by Sections 59-12-209 and 59-12-210 , if the political subdivision, other state,
             43638      or the federal government grant substantially similar privileges to this state.
             43639          (c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
             43640      corporate franchise tax, the commission may by rule, in accordance with [Title 63, Chapter 46a]
             43641      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, provide for the issuance of
             43642      information concerning the identity and other information of taxpayers who have failed to file
             43643      tax returns or to pay any tax due.
             43644          (d) Notwithstanding Subsection (1), the commission shall provide to the Solid and
             43645      Hazardous Waste Control Board executive secretary, as defined in Section 19-6-102 , as
             43646      requested by the executive secretary, any records, returns, or other information filed with the
             43647      commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5
             43648      regarding the environmental assurance program participation fee.
             43649          (e) Notwithstanding Subsection (1), at the request of any person the commission shall
             43650      provide that person sales and purchase volume data reported to the commission on a report,
             43651      return, or other information filed with the commission under:
             43652          (i) Chapter 13, Part 2, Motor Fuel; or
             43653          (ii) Chapter 13, Part 4, Aviation Fuel.

             43654          (f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
             43655      as defined in Section 59-22-202 , the commission shall report to the manufacturer:
             43656          (i) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
             43657      manufacturer and reported to the commission for the previous calendar year under Section
             43658      59-14-407 ; and
             43659          (ii) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
             43660      manufacturer for which a tax refund was granted during the previous calendar year under
             43661      Section 59-14-401 and reported to the commission under Subsection 59-14-401 (1)(a)(v).
             43662          (g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
             43663      distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
             43664      from selling cigarettes to consumers within the state under Subsection 59-14-210 (2).
             43665          (h) Notwithstanding Subsection (1), the commission may:
             43666          (i) provide to the Division of Consumer Protection within the Department of Commerce
             43667      and the attorney general data:
             43668          (A) reported to the commission under Section 59-14-212 ; or
             43669          (B) related to a violation under Section 59-14-211 ; and
             43670          (ii) upon request provide to any person data reported to the commission under
             43671      Subsections 59-14-212 (1)(a) through (c) and Subsection 59-14-212 (1)(g).
             43672          (i) Notwithstanding Subsection (1), the commission shall, at the request of a committee
             43673      of the Legislature, Office of the Legislative Fiscal Analyst, or Governor's Office of Planning and
             43674      Budget, provide to the committee or office the total amount of revenues collected by the
             43675      commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period specified
             43676      by the committee or office.
             43677          (j) Notwithstanding Subsection (1), the commission shall at the request of the
             43678      Legislature provide to the Legislature the total amount of sales or uses exempt under
             43679      Subsection 59-12-104 (46) reported to the commission in accordance with Section 59-12-105 .
             43680          (k) Notwithstanding Subsection (1), the commission shall make the directory required
             43681      by Section 59-14-603 available for public inspection.

             43682          (l) Notwithstanding Subsection (1), the commission may share information with federal,
             43683      state, or local agencies as provided in Subsection 59-14-606 (3).
             43684          (m) (i) Notwithstanding Subsection (1), the commission shall provide the Office of
             43685      Recovery Services within the Department of Human Services any relevant information obtained
             43686      from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer who has
             43687      become obligated to the Office of Recovery Services.
             43688          (ii) The information described in Subsection (3)(m)(i) may be provided by the Office of
             43689      Recovery Services to any other state's child support collection agency involved in enforcing that
             43690      support obligation.
             43691          (n) (i) Notwithstanding Subsection (1), upon request from the state court administrator,
             43692      the commission shall provide to the state court administrator, the name, address, telephone
             43693      number, county of residence, and Social Security number on resident returns filed under
             43694      Chapter 10, Individual Income Tax Act.
             43695          (ii) The state court administrator may use the information described in Subsection
             43696      (3)(n)(i) only as a source list for the master jury list described in Section 78-46-10 .
             43697          (o) Notwithstanding Subsection (1), the commission shall at the request of a committee,
             43698      commission, or task force of the Legislature provide to the committee, commission, or task
             43699      force of the Legislature any information relating to a tax imposed under Chapter 9, Taxation of
             43700      Admitted Insurers, relating to the study required by Section 59-9-101 .
             43701          (p) (i) As used in this Subsection (3)(p), "office" means the:
             43702          (A) Office of the Legislative Fiscal Analyst; or
             43703          (B) Office of Legislative Research and General Counsel.
             43704          (ii) Notwithstanding Subsection (1) and except as provided in Subsection (3)(p)(iii), the
             43705      commission shall at the request of an office provide to the office all information:
             43706          (A) gained by the commission; and
             43707          (B) required to be attached to or included in returns filed with the commission.
             43708          (iii) (A) An office may not request and the commission may not provide to an office a
             43709      person's:

             43710          (I) address;
             43711          (II) name;
             43712          (III) Social Security number; or
             43713          (IV) taxpayer identification number.
             43714          (B) The commission shall in all instances protect the privacy of a person as required by
             43715      Subsection (3)(p)(iii)(A).
             43716          (iv) An office may provide information received from the commission in accordance
             43717      with this Subsection (3)(p) only:
             43718          (A) as:
             43719          (I) a fiscal estimate;
             43720          (II) fiscal note information; or
             43721          (III) statistical information; and
             43722          (B) if the information is classified to prevent the identification of a particular return.
             43723          (v) (A) A person may not request information from an office under [Title 63, Chapter
             43724      2] Title 63G, Chapter 2, Government Records Access and Management Act, or this section, if
             43725      that office received the information from the commission in accordance with this Subsection
             43726      (3)(p).
             43727          (B) An office may not provide to a person that requests information in accordance with
             43728      Subsection (3)(p)(v)(A) any information other than the information the office provides in
             43729      accordance with Subsection (3)(p)(iv).
             43730          (4) (a) Reports and returns shall be preserved for at least three years.
             43731          (b) After the three-year period provided in Subsection (4)(a) the commission may
             43732      destroy a report or return.
             43733          (5) (a) Any person who violates this section is guilty of a class A misdemeanor.
             43734          (b) If the person described in Subsection (5)(a) is an officer or employee of the state,
             43735      the person shall be dismissed from office and be disqualified from holding public office in this
             43736      state for a period of five years thereafter.
             43737          (c) Notwithstanding Subsection (5)(a) or (b), an office that requests information in

             43738      accordance with Subsection (3)(p)(iii) or a person that requests information in accordance with
             43739      Subsection (3)(p)(v):
             43740          (i) is not guilty of a class A misdemeanor; and
             43741          (ii) is not subject to:
             43742          (A) dismissal from office in accordance with Subsection (5)(b); or
             43743          (B) disqualification from holding public office in accordance with Subsection (5)(b).
             43744          (6) Except as provided in Section 59-1-404 , this part does not apply to the property
             43745      tax.
             43746          Section 954. Section 59-1-404 is amended to read:
             43747           59-1-404. Definitions -- Confidentiality of commercial information obtained from
             43748      a property taxpayer or derived from the commercial information -- Rulemaking authority
             43749      -- Exceptions -- Written explanation -- Signature requirements -- Retention of signed
             43750      explanation by employer -- Penalty.
             43751          (1) As used in this section:
             43752          (a) "Appraiser" means an individual who holds an appraiser's certificate or license
             43753      issued by the Division of Real Estate under Title 61, Chapter 2b, Real Estate Appraiser
             43754      Licensing and Certification Act and includes an individual associated with an appraiser who
             43755      assists the appraiser in preparing an appraisal.
             43756          (b) "Appraisal" means an appraisal as defined in Section 61-2b-2 .
             43757          (c) (i) "Commercial information" means:
             43758          (A) information of a commercial nature obtained from a property taxpayer regarding
             43759      the property taxpayer's property; or
             43760          (B) information derived from the information described in this Subsection (1)(c)(i).
             43761          (ii) (A) "Commercial information" does not include information regarding a property
             43762      taxpayer's property if the information is intended for public use.
             43763          (B) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             43764      Administrative Rulemaking Act, for purposes of Subsection (1)(c)(ii)(A), the commission may
             43765      by rule prescribe the circumstances under which information is intended for public use.

             43766          (d) "Consultation service" means a consultation service as defined in Section 61-2b-2 .
             43767          (e) "Locally assessed property" means property that is assessed by a county assessor in
             43768      accordance with Chapter 2, Part 3, County Assessment.
             43769          (f) "Property taxpayer" means a person that:
             43770          (i) is a property owner; or
             43771          (ii) has in effect a contract with a property owner to:
             43772          (A) make filings on behalf of the property owner;
             43773          (B) process appeals on behalf of the property owner; or
             43774          (C) pay a tax under Chapter 2, Property Tax Act, on the property owner's property.
             43775          (g) "Property taxpayer's property" means property with respect to which a property
             43776      taxpayer:
             43777          (i) owns the property;
             43778          (ii) makes filings relating to the property;
             43779          (iii) processes appeals relating to the property; or
             43780          (iv) pays a tax under Chapter 2, Property Tax Act, on the property.
             43781          (h) "Protected commercial information" means commercial information that:
             43782          (i) identifies a specific property taxpayer; or
             43783          (ii) would reasonably lead to the identity of a specific property taxpayer.
             43784          (2) An individual listed under Subsection 59-1-403 (1)(a) may not disclose commercial
             43785      information:
             43786          (a) obtained in the course of performing any duty that the individual listed under
             43787      Subsection 59-1-403 (1)(a) performs under Chapter 2, Property Tax Act; or
             43788          (b) relating to an action or proceeding:
             43789          (i) with respect to a tax imposed on property in accordance with Chapter 2, Property
             43790      Tax Act; and
             43791          (ii) that is filed in accordance with:
             43792          (A) this chapter;
             43793          (B) Chapter 2, Property Tax Act; or

             43794          (C) this chapter and Chapter 2, Property Tax Act.
             43795          (3) (a) Notwithstanding Subsection (2) and subject to Subsection (3)(b), an individual
             43796      listed under Subsection 59-1-403 (1)(a) may disclose the following information:
             43797          (i) the assessed value of property;
             43798          (ii) the tax rate imposed on property;
             43799          (iii) a legal description of property;
             43800          (iv) the physical description or characteristics of property, including a street address or
             43801      parcel number for the property;
             43802          (v) the square footage or acreage of property;
             43803          (vi) the square footage of improvements on property;
             43804          (vii) the name of a property taxpayer;
             43805          (viii) the mailing address of a property taxpayer;
             43806          (ix) the amount of a property tax:
             43807          (A) assessed on property;
             43808          (B) due on property;
             43809          (C) collected on property;
             43810          (D) abated on property; or
             43811          (E) deferred on property;
             43812          (x) the amount of the following relating to property taxes due on property:
             43813          (A) interest;
             43814          (B) costs; or
             43815          (C) other charges;
             43816          (xi) the tax status of property, including:
             43817          (A) an exemption;
             43818          (B) a property classification;
             43819          (C) a bankruptcy filing; or
             43820          (D) whether the property is the subject of an action or proceeding under this title;
             43821          (xii) information relating to a tax sale of property; or

             43822          (xiii) information relating to single-family residential property.
             43823          (b) (i) Subject to Subsection (3)(b)(ii), a person may receive the information described
             43824      in Subsection (3)(a) in written format.
             43825          (ii) The following may charge a reasonable fee to cover the actual cost of providing the
             43826      information described in Subsection (3)(a) in written format:
             43827          (A) the commission;
             43828          (B) a county;
             43829          (C) a city; or
             43830          (D) a town.
             43831          (4) (a) Notwithstanding Subsection (2) and except as provided in Subsection (4)(c), an
             43832      individual listed under Subsection 59-1-403 (1)(a) shall disclose commercial information:
             43833          (i) in accordance with judicial order;
             43834          (ii) on behalf of the commission in any action or proceeding:
             43835          (A) under this title;
             43836          (B) under another law under which a property taxpayer is required to disclose
             43837      commercial information; or
             43838          (C) to which the commission is a party;
             43839          (iii) on behalf of any party to any action or proceeding under this title if the commercial
             43840      information is directly involved in the action or proceeding; or
             43841          (iv) if the requirements of Subsection (4)(b) are met, that is:
             43842          (A) relevant to an action or proceeding:
             43843          (I) filed in accordance with this title; and
             43844          (II) involving property; or
             43845          (B) in preparation for an action or proceeding involving property.
             43846          (b) Commercial information shall be disclosed in accordance with Subsection (4)(a)(iv):
             43847          (i) if the commercial information is obtained from:
             43848          (A) a real estate agent if the real estate agent is not a property taxpayer of the property
             43849      that is the subject of the action or proceeding;

             43850          (B) an appraiser if the appraiser:
             43851          (I) is not a property taxpayer of the property that is the subject of the action or
             43852      proceeding; and
             43853          (II) did not receive the commercial information pursuant to Subsection (8);
             43854          (C) a property manager if the property manager is not a property taxpayer of the
             43855      property that is the subject of the action or proceeding; or
             43856          (D) a property taxpayer other than a property taxpayer of the property that is the
             43857      subject of the action or proceeding;
             43858          (ii) regardless of whether the commercial information is disclosed in more than one
             43859      action or proceeding; and
             43860          (iii) (A) if a county board of equalization conducts the action or proceeding, the county
             43861      board of equalization takes action to provide that any commercial information disclosed during
             43862      the action or proceeding may not be disclosed by any person conducting or participating in the
             43863      action or proceeding except as specifically allowed by this section;
             43864          (B) if the commission conducts the action or proceeding, the commission enters a
             43865      protective order or, in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             43866      Administrative Rulemaking Act, makes rules specifying that any commercial information
             43867      disclosed during the action or proceeding may not be disclosed by any person conducting or
             43868      participating in the action or proceeding except as specifically allowed by this section; or
             43869          (C) if a court of competent jurisdiction conducts the action or proceeding, the court
             43870      enters a protective order specifying that any commercial information disclosed during the action
             43871      or proceeding may not be disclosed by any person conducting or participating in the action or
             43872      proceeding except as specifically allowed by this section.
             43873          (c) Notwithstanding Subsection (4)(a), a court may require the production of, and may
             43874      admit in evidence, commercial information that is specifically pertinent to the action or
             43875      proceeding.
             43876          (5) Notwithstanding Subsection (2), this section does not prohibit:
             43877          (a) the following from receiving a copy of any commercial information relating to the

             43878      basis for assessing a tax that is charged to a property taxpayer:
             43879          (i) the property taxpayer;
             43880          (ii) a duly authorized representative of the property taxpayer;
             43881          (iii) a person that has in effect a contract with the property taxpayer to:
             43882          (A) make filings on behalf of the property taxpayer;
             43883          (B) process appeals on behalf of the property taxpayer; or
             43884          (C) pay a tax under Chapter 2, Property Tax Act, on the property taxpayer's property;
             43885          (iv) a property taxpayer that purchases property from another property taxpayer; or
             43886          (v) a person that the property taxpayer designates in writing as being authorized to
             43887      receive the commercial information;
             43888          (b) the publication of statistics as long as the statistics are classified to prevent the
             43889      identification of a particular property taxpayer's commercial information; or
             43890          (c) the inspection by the attorney general or other legal representative of the state or a
             43891      legal representative of a political subdivision of the state of the commercial information of a
             43892      property taxpayer:
             43893          (i) that brings action to set aside or review a tax or property valuation based on the
             43894      commercial information;
             43895          (ii) against which an action or proceeding is contemplated or has been instituted under
             43896      this title; or
             43897          (iii) against which the state or a political subdivision of the state has an unsatisfied
             43898      money judgment.
             43899          (6) Notwithstanding Subsection (2), in accordance with [Title 63, Chapter 46a] Title
             43900      63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule establish
             43901      standards authorizing an individual listed under Subsection 59-1-403 (1)(a) to disclose
             43902      commercial information:
             43903          (a) (i) in a published decision; or
             43904          (ii) in carrying out official duties; and
             43905          (b) if that individual listed under Subsection 59-1-403 (1)(a) consults with the property

             43906      taxpayer that provided the commercial information.
             43907          (7) Notwithstanding Subsection (2):
             43908          (a) an individual listed under Subsection 59-1-403 (1)(a) may share commercial
             43909      information with the following:
             43910          (i) another individual listed in Subsection 59-1-403 (1)(a)(i) or (ii); or
             43911          (ii) a representative, agent, clerk, or other officer or employee of a county as required
             43912      to fulfill an obligation created by Chapter 2, Property Tax Act;
             43913          (b) an individual listed under Subsection 59-1-403 (1)(a) may perform the following to
             43914      fulfill an obligation created by Chapter 2, Property Tax Act:
             43915          (i) publish notice;
             43916          (ii) provide notice; or
             43917          (iii) file a lien; or
             43918          (c) the commission may by rule, made in accordance with [Title 63, Chapter 46a] Title
             43919      63G, Chapter 3, Utah Administrative Rulemaking Act, share commercial information gathered
             43920      from returns and other written statements with the federal government, any other state, any of
             43921      the political subdivisions of another state, or any political subdivision of this state, if these
             43922      political subdivisions or the federal government grant substantially similar privileges to this
             43923      state.
             43924          (8) Notwithstanding Subsection (2):
             43925          (a) subject to the limitations in this section, an individual described in Subsection
             43926      59-1-403 (1)(a) may share the following commercial information with an appraiser:
             43927          (i) the sales price of locally assessed property and the related financing terms;
             43928          (ii) capitalization rates and related rates and ratios related to the valuation of locally
             43929      assessed property; and
             43930          (iii) income and expense information related to the valuation of locally assessed
             43931      property; and
             43932          (b) except as provided in Subsection (4), an appraiser who receives commercial
             43933      information:

             43934          (i) may disclose the commercial information:
             43935          (A) to an individual described in Subsection 59-1-403 (1)(a);
             43936          (B) to an appraiser;
             43937          (C) in an appraisal if protected commercial information is removed to protect its
             43938      confidential nature; or
             43939          (D) in performing a consultation service if protected commercial information is not
             43940      disclosed; and
             43941          (ii) may not use the commercial information:
             43942          (A) for a purpose other than to prepare an appraisal or perform a consultation service;
             43943      or
             43944          (B) for a purpose intended to be, or which could reasonably be foreseen to be,
             43945      anti-competitive to a property taxpayer.
             43946          (9) (a) The commission shall:
             43947          (i) prepare a written explanation of this section; and
             43948          (ii) make the written explanation described in Subsection (9)(a)(i) available to the
             43949      public.
             43950          (b) An employer of a person described in Subsection 59-1-403 (1)(a) shall:
             43951          (i) provide the written explanation described in Subsection (9)(a)(i) to each person
             43952      described in Subsection 59-1-403 (1)(a) who is reasonably likely to receive commercial
             43953      information;
             43954          (ii) require each person who receives a written explanation in accordance with
             43955      Subsection (9)(b)(i) to:
             43956          (A) read the written explanation; and
             43957          (B) sign the written explanation; and
             43958          (iii) retain each written explanation that is signed in accordance with Subsection
             43959      (9)(b)(ii) for a time period:
             43960          (A) beginning on the day on which a person signs the written explanation in accordance
             43961      with Subsection (9)(b)(ii); and

             43962          (B) ending six years after the day on which the employment of the person described in
             43963      Subsection (9)(b)(iii)(A) by the employer terminates.
             43964          (c) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             43965      Administrative Rulemaking Act, the commission shall by rule define "employer."
             43966          (10) (a) An individual described in Subsection (1)(a) or 59-1-403 (1)(a), or an individual
             43967      that violates a protective order or similar limitation entered pursuant to Subsection (4)(b)(iii), is
             43968      guilty of a class A misdemeanor if that person:
             43969          (i) intentionally discloses commercial information in violation of this section; and
             43970          (ii) knows that the disclosure described in Subsection (10)(a)(i) is prohibited by this
             43971      section.
             43972          (b) If the individual described in Subsection (10)(a) is an officer or employee of the
             43973      state or a county and is convicted of violating this section, the individual shall be dismissed from
             43974      office and be disqualified from holding public office in this state for a period of five years
             43975      thereafter.
             43976          (c) If the individual described in Subsection (10)(a) is an appraiser, the appraiser shall
             43977      forfeit any certification or license received under Title 61, Section 2b, Real Estate Appraiser
             43978      Licensing and Certification Act, for a period of five years.
             43979          (d) If the individual described in Subsection (10)(a) is an individual associated with an
             43980      appraiser who assists the appraiser in preparing appraisals, the individual shall be prohibited
             43981      from becoming licensed or certified under Title 61, Section 2b, Real Estate Appraiser Licensing
             43982      and Certification Act, for a period of five years.
             43983          Section 955. Section 59-1-502.5 is amended to read:
             43984           59-1-502.5. Initial hearing.
             43985          (1) At least 30 days before any formal hearing is held in response to a party's request for
             43986      agency action, an initial hearing shall be held before one or more tax commissioners or an
             43987      administrative law judge designated by the commission at which proffers of evidence, including
             43988      testimony, documents, and other exhibits may be made and oral or written argument on legal
             43989      issues may be received.

             43990          (2) Any party participating in an initial hearing shall have the right to informal discovery
             43991      under any rules established by the commission.
             43992          (3) Parties may appear at the initial hearing in person or through agents, employees, or
             43993      other representatives, but any person appearing on behalf of another party or entity shall have
             43994      full settlement authority on behalf of the party [he] the person is representing.
             43995          (4) A record may not be kept of the initial hearing and all initial hearing proceedings
             43996      are privileged and do not constitute admissions against interest of any party participating in the
             43997      hearing.
             43998          (5) At the initial hearing, or as soon thereafter as reasonably practicable, the
             43999      commission may take any action it deems appropriate to settle, compromise, or reduce the
             44000      deficiency, or adjust the assessed valuation of any property.
             44001          (6) Nothing in this section may limit a party's right to a formal hearing under [Title 63,
             44002      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             44003          Section 956. Section 59-1-601 is amended to read:
             44004           59-1-601. District court jurisdiction.
             44005          (1) In addition to the jurisdiction granted in Section [ 63-46b-15 ] 63G-4-402 , beginning
             44006      July 1, 1994, the district court shall have jurisdiction to review by trial de novo all decisions
             44007      issued by the commission after that date resulting from formal adjudicative proceedings.
             44008          (2) As used in this section, "trial de novo" means an original, independent proceeding,
             44009      and does not mean a trial de novo on the record.
             44010          (3) (a) In any appeal to the district court pursuant to this section taken after January 1,
             44011      1997, the commission shall certify a record of its proceedings to the district court.
             44012          (b) This Subsection (3) supercedes Section [ 63-46b-16 ] 63G-4-403 pertaining to
             44013      judicial review of formal adjudicative proceedings.
             44014          Section 957. Section 59-1-602 is amended to read:
             44015           59-1-602. Right to appeal -- Venue -- County as party in interest.
             44016          (1) (a) Any aggrieved party appearing before the commission or county whose tax
             44017      revenues are affected by the decision may at that party's option petition for judicial review in the

             44018      district court pursuant to this section, or in the Supreme Court or the Court of Appeals pursuant
             44019      to Section 59-1-610 .
             44020          (b) Judicial review of formal or informal adjudicative proceedings in the district is in the
             44021      district court located in the county of residence or principal place of business of the affected
             44022      taxpayer or, in the case of a taxpayer whose taxes are assessed on a statewide basis, to the
             44023      Third Judicial District Court in and for Salt Lake County.
             44024          (c) Notwithstanding Section [ 63-46b-15 ] 63G-4-402 , a petition for review made to the
             44025      district court under this section shall conform to the Utah Rules of Appellate Procedure.
             44026          (2) A county whose tax revenues are affected by the decision being reviewed shall be
             44027      allowed to be a party in interest in the proceeding before the court.
             44028          Section 958. Section 59-1-610 is amended to read:
             44029           59-1-610. Standard of review of appellate court.
             44030          (1) When reviewing formal adjudicative proceedings commenced before the
             44031      commission, the Court of Appeals or Supreme Court shall:
             44032          (a) grant the commission deference concerning its written findings of fact, applying a
             44033      substantial evidence standard on review; and
             44034          (b) grant the commission no deference concerning its conclusions of law, applying a
             44035      correction of error standard, unless there is an explicit grant of discretion contained in a statute
             44036      at issue before the appellate court.
             44037          (2) This section supercedes Section [ 63-46b-16 ] 63G-4-403 pertaining to judicial
             44038      review of formal adjudicative proceedings.
             44039          Section 959. Section 59-1-1302 is amended to read:
             44040           59-1-1302. Definitions.
             44041          (1) "Gross income" is as defined in Section 61, Internal Revenue Code.
             44042          (2) "Income tax" means a tax imposed under:
             44043          (a) Chapter 7, Corporate Franchise and Income Taxes; or
             44044          (b) Chapter 10, Individual Income Tax Act.
             44045          (3) "Income tax return" means a return filed under:

             44046          (a) Chapter 7, Corporate Franchise and Income Taxes; or
             44047          (b) Chapter 10, Individual Income Tax Act.
             44048          (4) "Listed transaction" means a reportable transaction that is the same as, or
             44049      substantially similar to, a transaction or arrangement specifically identified as a listed transaction
             44050      by the:
             44051          (a) United States Secretary of the Treasury in written materials interpreting the
             44052      requirements of Section 6011, Internal Revenue Code; or
             44053          (b) commission by rule made in accordance with [Title 63, Chapter 46a] Title 63G,
             44054      Chapter 3, Utah Administrative Rulemaking Act.
             44055          (5) "Material advisor" is as defined in Section 6111, Internal Revenue Code.
             44056          (6) "Reportable transaction" means a transaction or arrangement that:
             44057          (a) is carried out through or invested in by one or more entities that:
             44058          (i) are organized in this state;
             44059          (ii) do business in this state;
             44060          (iii) derive gross income from sources within this state;
             44061          (iv) are subject to income tax; or
             44062          (v) are otherwise subject to the jurisdiction of this state; and
             44063          (b) is:
             44064          (i) a transaction or arrangement described in 26 C.F.R. Sec. 1.6011-4(b)(2) through (7);
             44065      or
             44066          (ii) a reportable transaction as described by the commission by rule made in accordance
             44067      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             44068          (7) "Taxpayer" means a person that is required to file an income tax return.
             44069          (8) "Unitary group" is as defined in Section 59-7-101 .
             44070          Section 960. Section 59-1-1303 is amended to read:
             44071           59-1-1303. Taxpayer disclosure of reportable transactions.
             44072          (1) A taxpayer is subject to this section for each taxable year in which:
             44073          (a) the taxpayer participates in a reportable transaction;

             44074          (b) the taxpayer:
             44075          (i) is included in a federal consolidated return under Sections 1501 and 1504(b),
             44076      Internal Revenue Code; and
             44077          (ii) participates in a reportable transaction; or
             44078          (c) the taxpayer is a member of a group that:
             44079          (i) is a unitary group; and
             44080          (ii) participates in a reportable transaction.
             44081          (2) (a) A taxpayer described in Subsection (1) shall disclose a reportable transaction to
             44082      the commission in a manner required by the commission by rule made in accordance with [Title
             44083      63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             44084          (b) If a taxpayer described in Subsection (1) is required to file a disclosure statement
             44085      under 26 C.F.R. Sec. 1.6011-4, the taxpayer shall provide the commission a copy of that
             44086      disclosure statement in a manner required by the commission by rule made in accordance with
             44087      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             44088          (3) (a) For a listed transaction entered into on or after January 1, 2004, but on or before
             44089      December 31, 2006, a disclosure statement required by this section shall be attached to:
             44090          (i) (A) the taxpayer's income tax return for the taxable year beginning on or after
             44091      January 1, 2007, but beginning on or before December 31, 2007; and
             44092          (B) any amended income tax return that the taxpayer files for the taxable year beginning
             44093      on or after January 1, 2007, but beginning on or before December 31, 2007; and
             44094          (ii) subject to Subsection (3)(b):
             44095          (A) the taxpayer's income tax return for any taxable year after the taxable year
             44096      beginning on or after January 1, 2007, but beginning on or before December 31, 2007, for
             44097      which there is a reduction in income tax as a result of the listed transaction; and
             44098          (B) any amended income tax return for any taxable year after the taxable year beginning
             44099      on or after January 1, 2007, but beginning on or before December 31, 2007, for which there is a
             44100      reduction in income tax as a result of the listed transaction.
             44101          (b) For purposes of Subsection (3)(a)(ii), a reduction in income tax as a result of a

             44102      listed transaction includes a loss, credit, or deduction if the loss, credit, or deduction results
             44103      from a listed transaction that is carried forward or carried back.
             44104          (4) For a reportable transaction entered into on or after January 1, 2004, a disclosure
             44105      statement required by this section shall be attached to an amended income tax return filed on or
             44106      after January 1, 2007, if the filing of the amended income tax return reflects a determination by
             44107      the Internal Revenue Service of the federal income tax treatment of the reportable transaction.
             44108          (5) (a) For a reportable transaction entered into on or after January 1, 2007, a
             44109      disclosure statement required by this section shall be attached to:
             44110          (i) (A) the taxpayer's income tax return for the taxable year during which the transaction
             44111      was entered into; and
             44112          (B) any amended income tax return that the taxpayer files for the taxable year during
             44113      which the transaction was entered into; and
             44114          (ii) subject to Subsection (5)(b):
             44115          (A) the taxpayer's income tax return for any taxable year after the taxable year during
             44116      which the transaction was entered into, for which there is a reduction in income tax as a result
             44117      of the reportable transaction; and
             44118          (B) any amended income tax return for any taxable year after the taxable year during
             44119      which the transaction was entered into, for which there is a reduction in income tax as a result
             44120      of the reportable transaction.
             44121          (b) For purposes of Subsection (5)(a)(ii), a reduction in income tax as a result of a
             44122      reportable transaction includes a loss, credit, or deduction if the loss, credit, or deduction results
             44123      from a reportable transaction that is carried forward or carried back.
             44124          Section 961. Section 59-1-1306 is amended to read:
             44125           59-1-1306. Material advisor disclosure of reportable transactions.
             44126          (1) (a) A material advisor shall disclose a reportable transaction to the commission on a
             44127      form provided by the commission.
             44128          (b) The disclosure described in Subsection (1)(a):
             44129          (i) shall include information:

             44130          (A) identifying and describing the transaction; and
             44131          (B) describing any potential tax benefits expected to result from the transaction; and
             44132          (ii) may include information other than the information described in Subsection (1)(b)(i)
             44133      as required by the commission.
             44134          (2) If a material advisor described in Subsection (1) is required to file a return disclosing
             44135      a reportable transaction under Section 6111, Internal Revenue Code, the material advisor shall
             44136      provide the commission a copy of that return.
             44137          (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             44138      Administrative Rulemaking Act, the commission shall make rules prescribing:
             44139          (a) the date a:
             44140          (i) disclosure required by Subsection (1) shall be filed with the commission; and
             44141          (ii) copy of a return required by Subsection (2) shall be filed with the commission;
             44142          (b) that only one person may be required to meet the requirements of Subsection (1) or
             44143      (2) if two or more persons would otherwise be required to meet the requirements of Subsection
             44144      (1) or (2); and
             44145          (c) exemptions from Subsection (1) or (2).
             44146          Section 962. Section 59-1-1307 is amended to read:
             44147           59-1-1307. Material advisor maintenance of list.
             44148          (1) For each reportable transaction, a material advisor shall maintain a list of the
             44149      persons to which the material advisor provides material aid, assistance, or advice with respect to
             44150      organizing, managing, promoting, selling, implementing, insuring, or carrying out a reportable
             44151      transaction.
             44152          (2) The list described in Subsection (1) shall include:
             44153          (a) the name of each person described in Subsection (1) that is:
             44154          (i) a taxpayer;
             44155          (ii) (A) a taxpayer; and
             44156          (B) a member of a unitary group; or
             44157          (iii) (A) a taxpayer; and

             44158          (B) included in a federal consolidated return under Sections 1501 and 1504(b), Internal
             44159      Revenue Code;
             44160          (b) the same information required to be contained in the list described in 26 C.F.R. Sec.
             44161      301.6112-1; and
             44162          (c) any additional information required by the commission by rule made in accordance
             44163      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             44164          (3) The list described in Subsection (1) shall be maintained in the same form and manner
             44165      as the list described in 26 C.F.R. Sec. 301.6112-1.
             44166          (4) A material advisor required to maintain a list under Subsection (1) shall:
             44167          (a) make the list available to the commission upon written request by the commission;
             44168      and
             44169          (b) retain the information that is required to be included on the list for seven years.
             44170          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             44171      Administrative Rulemaking Act, the commission shall make rules prescribing that only one
             44172      person may be required to meet the requirements of this section if two or more persons would
             44173      otherwise be required to meet the requirements of this section.
             44174          Section 963. Section 59-2-102 is amended to read:
             44175           59-2-102. Definitions.
             44176          As used in this chapter and title:
             44177          (1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
             44178      engaging in dispensing activities directly affecting agriculture or horticulture with an
             44179      airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
             44180      rotorcraft's use for agricultural and pest control purposes.
             44181          (2) "Air charter service" means an air carrier operation which requires the customer to
             44182      hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
             44183      trip.
             44184          (3) "Air contract service" means an air carrier operation available only to customers
             44185      who engage the services of the carrier through a contractual agreement and excess capacity on

             44186      any trip and is not available to the public at large.
             44187          (4) "Aircraft" is as defined in Section 72-10-102 .
             44188          (5) "Airline" means any air carrier operating interstate routes on a scheduled basis
             44189      which offers to fly passengers or cargo on the basis of available capacity on regularly scheduled
             44190      routes.
             44191          (6) "Assessment roll" means a permanent record of the assessment of property as
             44192      assessed by the county assessor and the commission and may be maintained manually or as a
             44193      computerized file as a consolidated record or as multiple records by type, classification, or
             44194      categories.
             44195          (7) (a) "Certified revenue levy" means a property tax levy that provides the same
             44196      amount of ad valorem property tax revenue as was collected for the prior year, plus new
             44197      growth, but exclusive of revenue from collections from redemptions, interest, and penalties.
             44198          (b) For purposes of this Subsection (7), "ad valorem property tax revenue" does not
             44199      include property tax revenue received by a taxing entity from personal property that is:
             44200          (i) assessed by a county assessor in accordance with Part 3, County Assessment; and
             44201          (ii) semiconductor manufacturing equipment.
             44202          (8) "County-assessed commercial vehicle" means:
             44203          (a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
             44204      Section 41-1a-301 and is not operated interstate to transport the vehicle owner's goods or
             44205      property in furtherance of the owner's commercial enterprise;
             44206          (b) any passenger vehicle owned by a business and used by its employees for
             44207      transportation as a company car or vanpool vehicle; and
             44208          (c) vehicles which are:
             44209          (i) especially constructed for towing or wrecking, and which are not otherwise used to
             44210      transport goods, merchandise, or people for compensation;
             44211          (ii) used or licensed as taxicabs or limousines;
             44212          (iii) used as rental passenger cars, travel trailers, or motor homes;
             44213          (iv) used or licensed in this state for use as ambulances or hearses;

             44214          (v) especially designed and used for garbage and rubbish collection; or
             44215          (vi) used exclusively to transport students or their instructors to or from any private,
             44216      public, or religious school or school activities.
             44217          (9) (a) Except as provided in Subsection (9)(b), for purposes of Section 59-2-801 ,
             44218      "designated tax area" means a tax area created by the overlapping boundaries of only the
             44219      following taxing entities:
             44220          (i) a county; and
             44221          (ii) a school district.
             44222          (b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
             44223      by the overlapping boundaries of:
             44224          (i) the taxing entities described in Subsection (9)(a); and
             44225          (ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
             44226      and the boundaries of the city or town are identical; or
             44227          (B) a special service district if the boundaries of the school district under Subsection
             44228      (9)(a) are located entirely within the special service district.
             44229          (10) "Eligible judgment" means a final and unappealable judgment or order under
             44230      Section 59-2-1330 :
             44231          (a) that became a final and unappealable judgment or order no more than 14 months
             44232      prior to the day on which the notice required by Subsection 59-2-919 (4) is required to be
             44233      mailed; and
             44234          (b) for which a taxing entity's share of the final and unappealable judgment or order is
             44235      greater than or equal to the lesser of:
             44236          (i) $5,000; or
             44237          (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
             44238      previous fiscal year.
             44239          (11) (a) "Escaped property" means any property, whether personal, land, or any
             44240      improvements to the property, subject to taxation and is:
             44241          (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed

             44242      to the wrong taxpayer by the assessing authority;
             44243          (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
             44244      comply with the reporting requirements of this chapter; or
             44245          (iii) undervalued because of errors made by the assessing authority based upon
             44246      incomplete or erroneous information furnished by the taxpayer.
             44247          (b) Property which is undervalued because of the use of a different valuation
             44248      methodology or because of a different application of the same valuation methodology is not
             44249      "escaped property."
             44250          (12) "Fair market value" means the amount at which property would change hands
             44251      between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
             44252      and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
             44253      market value" shall be determined using the current zoning laws applicable to the property in
             44254      question, except in cases where there is a reasonable probability of a change in the zoning laws
             44255      affecting that property in the tax year in question and the change would have an appreciable
             44256      influence upon the value.
             44257          (13) "Farm machinery and equipment," for purposes of the exemption provided under
             44258      Section 59-2-1101 , means tractors, milking equipment and storage and cooling facilities, feed
             44259      handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
             44260      tools, scales, combines, spreaders, sprayers, haying equipment, and any other machinery or
             44261      equipment used primarily for agricultural purposes; but does not include vehicles required to be
             44262      registered with the Motor Vehicle Division or vehicles or other equipment used for business
             44263      purposes other than farming.
             44264          (14) "Geothermal fluid" means water in any form at temperatures greater than 120
             44265      degrees centigrade naturally present in a geothermal system.
             44266          (15) "Geothermal resource" means:
             44267          (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
             44268      and
             44269          (b) the energy, in whatever form, including pressure, present in, resulting from, created

             44270      by, or which may be extracted from that natural heat, directly or through a material medium.
             44271          (16) (a) "Goodwill" means:
             44272          (i) acquired goodwill that is reported as goodwill on the books and records:
             44273          (A) of a taxpayer; and
             44274          (B) that are maintained for financial reporting purposes; or
             44275          (ii) the ability of a business to:
             44276          (A) generate income:
             44277          (I) that exceeds a normal rate of return on assets; and
             44278          (II) resulting from a factor described in Subsection (16)(b); or
             44279          (B) obtain an economic or competitive advantage resulting from a factor described in
             44280      Subsection (16)(b).
             44281          (b) The following factors apply to Subsection (16)(a)(ii):
             44282          (i) superior management skills;
             44283          (ii) reputation;
             44284          (iii) customer relationships;
             44285          (iv) patronage; or
             44286          (v) a factor similar to Subsections (16)(b)(i) through (iv).
             44287          (c) "Goodwill" does not include:
             44288          (i) the intangible property described in Subsection (20)(a) or (b);
             44289          (ii) locational attributes of real property, including:
             44290          (A) zoning;
             44291          (B) location;
             44292          (C) view;
             44293          (D) a geographic feature;
             44294          (E) an easement;
             44295          (F) a covenant;
             44296          (G) proximity to raw materials;
             44297          (H) the condition of surrounding property; or

             44298          (I) proximity to markets;
             44299          (iii) value attributable to the identification of an improvement to real property,
             44300      including:
             44301          (A) reputation of the designer, builder, or architect of the improvement;
             44302          (B) a name given to, or associated with, the improvement; or
             44303          (C) the historic significance of an improvement; or
             44304          (iv) the enhancement or assemblage value specifically attributable to the interrelation of
             44305      the existing tangible property in place working together as a unit.
             44306          (17) "Governing body" means:
             44307          (a) for a county, city, or town, the legislative body of the county, city, or town;
             44308          (b) for a local district under Title 17B, Limited Purpose Local Government Entities -
             44309      Local Districts, the local district's board of trustees;
             44310          (c) for a school district, the local board of education; or
             44311          (d) for a special service district under Title 17A, Chapter 2, Part 13, Utah Special
             44312      Service District Act:
             44313          (i) the legislative body of the county or municipality that created the special service
             44314      district, to the extent that the county or municipal legislative body has not delegated authority to
             44315      an administrative control board established under Section 17A-2-1326 ; or
             44316          (ii) the administrative control board, to the extent that the county or municipal
             44317      legislative body has delegated authority to an administrative control board established under
             44318      Section 17A-2-1326 .
             44319          (18) (a) For purposes of Section 59-2-103 :
             44320          (i) "household" means the association of persons who live in the same dwelling, sharing
             44321      its furnishings, facilities, accommodations, and expenses; and
             44322          (ii) "household" includes married individuals, who are not legally separated, that have
             44323      established domiciles at separate locations within the state.
             44324          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             44325      Administrative Rulemaking Act, the commission may make rules defining the term "domicile."

             44326          (19) (a) Except as provided in Subsection (19)(c), "improvement" means a building,
             44327      structure, fixture, fence, or other item that is permanently attached to land, regardless of
             44328      whether the title has been acquired to the land, if:
             44329          (i) (A) attachment to land is essential to the operation or use of the item; and
             44330          (B) the manner of attachment to land suggests that the item will remain attached to the
             44331      land in the same place over the useful life of the item; or
             44332          (ii) removal of the item would:
             44333          (A) cause substantial damage to the item; or
             44334          (B) require substantial alteration or repair of a structure to which the item is attached.
             44335          (b) "Improvement" includes:
             44336          (i) an accessory to an item described in Subsection (19)(a) if the accessory is:
             44337          (A) essential to the operation of the item described in Subsection (19)(a); and
             44338          (B) installed solely to serve the operation of the item described in Subsection (19)(a);
             44339      and
             44340          (ii) an item described in Subsection (19)(a) that:
             44341          (A) is temporarily detached from the land for repairs; and
             44342          (B) remains located on the land.
             44343          (c) Notwithstanding Subsections (19)(a) and (b), "improvement" does not include:
             44344          (i) an item considered to be personal property pursuant to rules made in accordance
             44345      with Section 59-2-107 ;
             44346          (ii) a moveable item that is attached to land:
             44347          (A) for stability only; or
             44348          (B) for an obvious temporary purpose;
             44349          (iii) (A) manufacturing equipment and machinery; or
             44350          (B) essential accessories to manufacturing equipment and machinery;
             44351          (iv) an item attached to the land in a manner that facilitates removal without substantial
             44352      damage to:
             44353          (A) the land; or

             44354          (B) the item; or
             44355          (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
             44356      transportable factory-built housing unit is considered to be personal property under Section
             44357      59-2-1503 .
             44358          (20) "Intangible property" means:
             44359          (a) property that is capable of private ownership separate from tangible property,
             44360      including:
             44361          (i) moneys;
             44362          (ii) credits;
             44363          (iii) bonds;
             44364          (iv) stocks;
             44365          (v) representative property;
             44366          (vi) franchises;
             44367          (vii) licenses;
             44368          (viii) trade names;
             44369          (ix) copyrights; and
             44370          (x) patents;
             44371          (b) a low-income housing tax credit; or
             44372          (c) goodwill.
             44373          (21) "Low-income housing tax credit" means:
             44374          (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
             44375      or
             44376          (b) a low-income housing tax credit under:
             44377          (i) Section 59-7-607 ; or
             44378          (ii) Section 59-10-1010 .
             44379          (22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
             44380          (23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous valuable
             44381      mineral.

             44382          (24) "Mining" means the process of producing, extracting, leaching, evaporating, or
             44383      otherwise removing a mineral from a mine.
             44384          (25) (a) "Mobile flight equipment" means tangible personal property that is:
             44385          (i) owned or operated by an:
             44386          (A) air charter service;
             44387          (B) air contract service; or
             44388          (C) airline; and
             44389          (ii) (A) capable of flight;
             44390          (B) attached to an aircraft that is capable of flight; or
             44391          (C) contained in an aircraft that is capable of flight if the tangible personal property is
             44392      intended to be used:
             44393          (I) during multiple flights;
             44394          (II) during a takeoff, flight, or landing; and
             44395          (III) as a service provided by an air charter service, air contract service, or airline.
             44396          (b) (i) "Mobile flight equipment" does not include a spare part other than a spare engine
             44397      that is rotated:
             44398          (A) at regular intervals; and
             44399          (B) with an engine that is attached to the aircraft.
             44400          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             44401      Administrative Rulemaking Act, the commission may make rules defining the term "regular
             44402      intervals."
             44403          (26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
             44404      sand, rock, gravel, and all carboniferous materials.
             44405          (27) "Personal property" includes:
             44406          (a) every class of property as defined in Subsection (28) which is the subject of
             44407      ownership and not included within the meaning of the terms "real estate" and "improvements";
             44408          (b) gas and water mains and pipes laid in roads, streets, or alleys;
             44409          (c) bridges and ferries;

             44410          (d) livestock which, for the purposes of the exemption provided under Section
             44411      59-2-1112 , means all domestic animals, honeybees, poultry, fur-bearing animals, and fish; and
             44412          (e) outdoor advertising structures as defined in Section 72-7-502 .
             44413          (28) (a) "Property" means property that is subject to assessment and taxation according
             44414      to its value.
             44415          (b) "Property" does not include intangible property as defined in this section.
             44416          (29) "Public utility," for purposes of this chapter, means the operating property of a
             44417      railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
             44418      company, electrical corporation, telephone corporation, sewerage corporation, or heat
             44419      corporation where the company performs the service for, or delivers the commodity to, the
             44420      public generally or companies serving the public generally, or in the case of a gas corporation or
             44421      an electrical corporation, where the gas or electricity is sold or furnished to any member or
             44422      consumers within the state for domestic, commercial, or industrial use. Public utility also means
             44423      the operating property of any entity or person defined under Section 54-2-1 except water
             44424      corporations.
             44425          (30) "Real estate" or "real property" includes:
             44426          (a) the possession of, claim to, ownership of, or right to the possession of land;
             44427          (b) all mines, minerals, and quarries in and under the land, all timber belonging to
             44428      individuals or corporations growing or being on the lands of this state or the United States, and
             44429      all rights and privileges appertaining to these; and
             44430          (c) improvements.
             44431          (31) "Residential property," for the purposes of the reductions and adjustments under
             44432      this chapter, means any property used for residential purposes as a primary residence. It does
             44433      not include property used for transient residential use or condominiums used in rental pools.
             44434          (32) For purposes of Subsection 59-2-801 (1)(e), "route miles" means the number of
             44435      miles calculated by the commission that is:
             44436          (a) measured in a straight line by the commission; and
             44437          (b) equal to the distance between a geographical location that begins or ends:

             44438          (i) at a boundary of the state; and
             44439          (ii) where an aircraft:
             44440          (A) takes off; or
             44441          (B) lands.
             44442          (33) (a) "State-assessed commercial vehicle" means:
             44443          (i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
             44444      to transport passengers, freight, merchandise, or other property for hire; or
             44445          (ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
             44446      transports the vehicle owner's goods or property in furtherance of the owner's commercial
             44447      enterprise.
             44448          (b) "State-assessed commercial vehicle" does not include vehicles used for hire which
             44449      are specified in Subsection (8)(c) as county-assessed commercial vehicles.
             44450          (34) "Taxable value" means fair market value less any applicable reduction allowed for
             44451      residential property under Section 59-2-103 .
             44452          (35) "Tax area" means a geographic area created by the overlapping boundaries of one
             44453      or more taxing entities.
             44454          (36) "Taxing entity" means any county, city, town, school district, special taxing
             44455      district, local district under Title 17B, Limited Purpose Local Government Entities - Local
             44456      Districts, or other political subdivision of the state with the authority to levy a tax on property.
             44457          (37) "Tax roll" means a permanent record of the taxes charged on property, as extended
             44458      on the assessment roll and may be maintained on the same record or records as the assessment
             44459      roll or may be maintained on a separate record properly indexed to the assessment roll. It
             44460      includes tax books, tax lists, and other similar materials.
             44461          Section 964. Section 59-2-103.5 is amended to read:
             44462           59-2-103.5. Procedures to obtain an exemption for residential property.
             44463          (1) Subject to the other provisions of this section, a county legislative body may by
             44464      ordinance require that in order for residential property to be allowed a residential exemption in
             44465      accordance with Section 59-2-103 , an owner of the residential property shall file with the

             44466      county board of equalization a statement:
             44467          (a) on a form prescribed by the commission by rule;
             44468          (b) signed by all of the owners of the residential property;
             44469          (c) certifying that the residential property is residential property; and
             44470          (d) containing other information as required by the commission by rule.
             44471          (2) (a) Subject to Section 59-2-103 and except as provided in Subsection (3), a county
             44472      board of equalization shall allow an owner described in Subsection (1) a residential exemption
             44473      for the residential property described in Subsection (1) if:
             44474          (i) the county legislative body enacts the ordinance described in Subsection (1); and
             44475          (ii) the county board of equalization determines that the requirements of Subsection (1)
             44476      are met.
             44477          (b) A county board of equalization may require an owner of the residential property
             44478      described in Subsection (1) to file the statement described in Subsection (1) only if:
             44479          (i) that residential property was ineligible for the residential exemption authorized under
             44480      Section 59-2-103 during the calendar year immediately preceding the calendar year for which
             44481      the owner is seeking to claim the residential exemption for that residential property;
             44482          (ii) an ownership interest in that residential property changes; or
             44483          (iii) the county board of equalization determines that there is reason to believe that that
             44484      residential property no longer qualifies for the residential exemption in accordance with Section
             44485      59-2-103 .
             44486          (3) Notwithstanding Subsection (2)(a), if a county legislative body does not enact an
             44487      ordinance requiring an owner to file a statement in accordance with this section, the county
             44488      board of equalization:
             44489          (a) may not require an owner to file a statement for residential property to be eligible
             44490      for a residential exemption in accordance with Section 59-2-103 ; and
             44491          (b) shall allow a residential exemption for residential property in accordance with
             44492      Section 59-2-103 .
             44493          (4) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah

             44494      Administrative Rulemaking Act, the commission shall make rules providing:
             44495          (i) the form for the statement described in Subsection (1); and
             44496          (ii) the contents of the form for the statement described in Subsection (1).
             44497          (b) The commission shall make the form described in Subsection (4)(a) available to
             44498      counties.
             44499          Section 965. Section 59-2-107 is amended to read:
             44500           59-2-107. Classes of personal property -- Rulemaking authority.
             44501          The commission shall make rules:
             44502          (1) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             44503      Administrative Rulemaking Act;
             44504          (2) defining classes of items considered to be personal property for purposes of this
             44505      chapter;
             44506          (3) defining items that fall into the classes established under Subsection (2); and
             44507          (4) defining any class or item as personal property if the commission defined that class
             44508      or item as personal property prior to January 1, 2004, by:
             44509          (a) a rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             44510      Administrative Rulemaking Act;
             44511          (b) a published decision of the commission; or
             44512          (c) an official schedule published by the commission.
             44513          Section 966. Section 59-2-202 is amended to read:
             44514           59-2-202. Statement of taxpayer -- Extension of time for filing -- Assessment
             44515      without statement -- Penalty for failure to file statement or information -- Waiver,
             44516      reduction, or compromise of penalty -- Appeals.
             44517          (1) (a) A person, or an officer or agent of that person, owning or operating property
             44518      described in Subsection (1)(b) shall, on or before March 1 of each year, file with the
             44519      commission a statement:
             44520          (i) signed and sworn to by the person, officer, or agent;
             44521          (ii) showing in detail all real property and tangible personal property located in the state

             44522      that the person owns or operates;
             44523          (iii) containing the number of miles of taxable tangible personal property in each county:
             44524          (A) that the person owns or operates; and
             44525          (B) as valued on January 1 of the year for which the person, officer, or agent is
             44526      furnishing the statement; and
             44527          (iv) containing any other information the commission requires.
             44528          (b) Subsection (1)(a) applies to:
             44529          (i) the following property located in the state:
             44530          (A) a public utility;
             44531          (B) an airline;
             44532          (C) an air charter service; or
             44533          (D) an air contract service; or
             44534          (ii) the following property located in more than one county in the state:
             44535          (A) a pipeline company;
             44536          (B) a power company;
             44537          (C) a canal company;
             44538          (D) an irrigation company; or
             44539          (E) a telephone company.
             44540          (c) (i) The commission may allow an extension for filing the statement under Subsection
             44541      (1)(a) for a time period not exceeding 30 days, unless the commission determines that
             44542      extraordinary circumstances require a longer period of extension.
             44543          (ii) The commission shall grant a person, or an officer or agent of that person, an
             44544      extension for filing the statement under Subsection (1)(a) for a time period not exceeding 15
             44545      days if:
             44546          (A) a federal regulatory agency requires the taxpayer to file a statement that contains
             44547      the same information as the statement under Subsection (1)(a); and
             44548          (B) the person, or an officer or agent of that person, requests the commission to grant
             44549      the extension.

             44550          (2) The commission shall assess and list the property described in Subsection (1)(b)
             44551      using the best information obtainable by the commission if a person, or an officer or agent of
             44552      that person, fails to file the statement required under Subsection (1)(a) on or before the later of:
             44553          (a) March 1; or
             44554          (b) if the commission allows an extension under Subsection (1)(c) for filing the
             44555      statement, the day after the last day of the extension period.
             44556          (3) (a) Except as provided in Subsection (3)(c), the commission shall assess a person a
             44557      penalty as provided in Subsection (3)(b), if the person, or an officer or agent of that person, fails
             44558      to file:
             44559          (i) the statement required under Subsection (1)(a) on or before the later of:
             44560          (A) March 1; or
             44561          (B) if the commission allows an extension under Subsection (1)(c) for filing the
             44562      statement, the day after the last day of the extension period; or
             44563          (ii) any other information the commission determines to be necessary to:
             44564          (A) establish valuations for assessment purposes; or
             44565          (B) apportion an assessment.
             44566          (b) The penalty described in Subsection (3)(a) is an amount equal to the greater of:
             44567          (i) 10% of the person's estimated tax liability under this chapter for the current calendar
             44568      year not to exceed $50,000; or
             44569          (ii) $100.
             44570          (c) (i) Notwithstanding Subsections (3)(a) and (4), the commission may waive, reduce,
             44571      or compromise a penalty imposed under this section if the commission finds there are reasonable
             44572      grounds for the waiver, reduction, or compromise.
             44573          (ii) If the commission waives, reduces, or compromises a penalty under Subsection
             44574      (3)(c)(i), the commission shall make a record of the grounds for waiving, reducing, or
             44575      compromising the penalty.
             44576          (4) The county treasurer shall collect the penalty imposed under Subsection (3) as
             44577      provided in Section 59-2-1308 .

             44578          (5) A person subject to a penalty under Subsection (3) may appeal the penalty
             44579      according to procedures and requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             44580      Administrative Procedures Act.
             44581          Section 967. Section 59-2-207 is amended to read:
             44582           59-2-207. Statements for mines -- Penalty for failure to file statement or
             44583      information -- Assessment without statement -- Penalty -- Waiver, reduction, or
             44584      compromise of penalty -- Extension of time for filing statement -- Appeals.
             44585          (1) (a) A person, or an officer or agent of that person, owning or operating property
             44586      described in Subsection (1)(b) shall file with the commission, on a form prescribed by the
             44587      commission, a sworn statement on or before March 1 of each year:
             44588          (i) showing in detail all real property and tangible personal property located in the state
             44589      that the person owns or operates; and
             44590          (ii) containing any other information the commission requires.
             44591          (b) Subsection (1)(a) applies to the following property:
             44592          (i) a mine;
             44593          (ii) a mining claim; or
             44594          (iii) a valuable mineral deposit, including lands containing coal or hydrocarbons.
             44595          (c) (i) The commission may allow an extension for filing the statement under Subsection
             44596      (1)(a) for a time period not exceeding 30 days, unless the commission determines that
             44597      extraordinary circumstances require a longer period of extension.
             44598          (ii) The commission shall grant a person, or an officer or agent of that person, an
             44599      extension for filing the statement under Subsection (1)(a) for a time period not exceeding 15
             44600      days if:
             44601          (A) a federal regulatory agency requires the taxpayer to file a statement that contains
             44602      the same information as the statement under Subsection (1)(a); and
             44603          (B) the person, or an officer or agent of that person, requests the commission to grant
             44604      the extension.
             44605          (2) The commission shall assess and list the property described in Subsection (1)(b)

             44606      using the best information obtainable by the commission if a person, or an officer or agent of
             44607      that person, fails to file the statement required under Subsection (1)(a) on or before the later of:
             44608          (a) March 1; or
             44609          (b) if the commission allows an extension under Subsection (1)(c) for filing the
             44610      statement, the day after the last day of the extension period.
             44611          (3) (a) Except as provided in Subsection (3)(c), the commission shall assess a person a
             44612      penalty as provided in Subsection (3)(b), if the person, or an officer or agent of that person, fails
             44613      to file:
             44614          (i) the statement required under Subsection (1)(a) on or before the later of:
             44615          (A) March 1; or
             44616          (B) if the commission allows an extension under Subsection (1)(c) for filing the
             44617      statement, the day after the last day of the extension period; or
             44618          (ii) any other information the commission determines to be necessary to:
             44619          (A) establish valuations for assessment purposes; or
             44620          (B) apportion an assessment.
             44621          (b) The penalty described in Subsection (3)(a) is an amount equal to the greater of:
             44622          (i) 10% of the person's estimated tax liability under this chapter for the current calendar
             44623      year not to exceed $50,000; or
             44624          (ii) $100.
             44625          (c) (i) Notwithstanding Subsections (3)(a) and (4), the commission may waive, reduce,
             44626      or compromise a penalty imposed under this section if the commission finds there are reasonable
             44627      grounds for the waiver, reduction, or compromise.
             44628          (ii) If the commission waives, reduces, or compromises a penalty under Subsection
             44629      (3)(c)(i), the commission shall make a record of the grounds for waiving, reducing, or
             44630      compromising the penalty.
             44631          (4) The county treasurer shall collect the penalty imposed under Subsection (3) as
             44632      provided in Section 59-2-1308 .
             44633          (5) A person subject to a penalty under Subsection (3) may appeal the penalty

             44634      according to the procedures and requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             44635      Administrative Procedures Act.
             44636          Section 968. Section 59-2-307 is amended to read:
             44637           59-2-307. Refusal by taxpayer to file signed statement -- Penalty -- Assessor to
             44638      estimate value -- Reporting information to other counties.
             44639          (1) (a) Each person who fails to file the signed statement required by Section 59-2-306 ,
             44640      fails to file the signed statement with respect to name and place of residence, or fails to appear
             44641      and testify when requested by the assessor, shall pay a penalty equal to 10% of the estimated tax
             44642      due, but not less than $100 for each failure to file a signed and completed statement.
             44643          (b) Each penalty under Subsection (1)(a) shall be collected in the manner provided by
             44644      Sections 59-2-1302 and 59-2-1303 , except as otherwise provided for in this section, or by a
             44645      judicial proceeding brought in the name of the assessor.
             44646          (c) All money recovered by any assessor under this section shall be paid into the county
             44647      treasury.
             44648          (2) (a) The penalty imposed by Subsection (1)(a) may not be waived or reduced by the
             44649      assessor, county, county Board of Equalization, or commission except pursuant to a procedure
             44650      for the review and approval of reductions and waivers adopted by county ordinance, or by
             44651      administrative rule adopted in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             44652      Utah Administrative Rulemaking Act.
             44653          (b) The penalty under Subsection (1)(a) for failure to appear and testify when requested
             44654      by the assessor may not be imposed until 30 days after the certified postmark date of mailing of
             44655      a subsequent certified notice.
             44656          (3) (a) If any owner neglects or refuses to file the signed statement within 30 days of
             44657      the date the first county request was sent as required under Section 59-2-306 , the assessor shall:
             44658          (i) make:
             44659          (A) a subsequent request by certified mail for the signed statement, informing the owner
             44660      of the consequences of not filing a signed statement; and
             44661          (B) a record of the failure to file and an estimate of the value of the property of the

             44662      owner based on known facts and circumstances; and
             44663          (ii) impose a fee for the actual and necessary expenses of the certified mailing under
             44664      Subsection (3)(a)(i)(A).
             44665          (b) The value fixed by the assessor may not be reduced by the county board of
             44666      equalization or by the commission.
             44667          (4) If the signed statement discloses property in any other county, the assessor shall file
             44668      the signed statement and send a certified copy to the assessor of each county in which the
             44669      property is located.
             44670          Section 969. Section 59-2-309 is amended to read:
             44671           59-2-309. Property escaping assessment -- Duties of assessing authority --
             44672      Property willfully concealed -- Penalties.
             44673          (1) Any escaped property may be assessed by the original assessing authority at any
             44674      time as far back as five years prior to the time of discovery, in which case the assessor shall
             44675      enter the assessments on the tax rolls and follow the procedures established under Part 13 of
             44676      this chapter.
             44677          (2) Any property found to be willfully concealed, removed, transferred, or
             44678      misrepresented by its owner or agent in order to evade taxation is subject to a penalty equal to
             44679      the tax on its value, and neither the penalty nor assessment may be reduced or waived by the
             44680      assessor, county, county Board of Equalization, or the commission, except pursuant to a
             44681      procedure for the review and approval of waivers adopted by county ordinance, or by
             44682      administrative rule adopted in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             44683      Utah Administrative Rulemaking Act.
             44684          Section 970. Section 59-2-405.2 is amended to read:
             44685           59-2-405.2. Definitions -- Uniform statewide fee on certain tangible personal
             44686      property -- Distribution of revenues -- Rulemaking authority -- Determining the length of
             44687      a vessel.
             44688          (1) As used in this section:
             44689          (a) (i) Except as provided in Subsection (1)(a)(ii), "all-terrain vehicle" means a motor

             44690      vehicle that:
             44691          (A) is an:
             44692          (I) all-terrain type I vehicle as defined in Section 41-22-2 ; or
             44693          (II) all-terrain type II vehicle as defined in Section 41-22-2 ;
             44694          (B) is required to be registered in accordance with Title 41, Chapter 22, Off-Highway
             44695      Vehicles; and
             44696          (C) has:
             44697          (I) an engine with more than 150 cubic centimeters displacement;
             44698          (II) a motor that produces more than five horsepower; or
             44699          (III) an electric motor; and
             44700          (ii) notwithstanding Subsection (1)(a)(i), "all-terrain vehicle" does not include a
             44701      snowmobile.
             44702          (b) "Camper" means a camper:
             44703          (i) as defined in Section 41-1a-102 ; and
             44704          (ii) that is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
             44705      Registration.
             44706          (c) (i) "Canoe" means a vessel that:
             44707          (A) is long and narrow;
             44708          (B) has curved sides; and
             44709          (C) is tapered:
             44710          (I) to two pointed ends; or
             44711          (II) to one pointed end and is blunt on the other end; and
             44712          (ii) "canoe" includes:
             44713          (A) a collapsible inflatable canoe;
             44714          (B) a kayak;
             44715          (C) a racing shell; or
             44716          (D) a rowing scull.
             44717          (d) "Dealer" is as defined in Section 41-1a-102 .

             44718          (e) "Jon boat" means a vessel that:
             44719          (i) has a square bow; and
             44720          (ii) has a flat bottom.
             44721          (f) "Motor vehicle" is as defined in Section 41-22-2 .
             44722          (g) "Other motorcycle" means a motor vehicle that:
             44723          (i) is:
             44724          (A) a motorcycle as defined in Section 41-1a-102 ; and
             44725          (B) designed primarily for use and operation over unimproved terrain;
             44726          (ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
             44727      Registration; and
             44728          (iii) has:
             44729          (A) an engine with more than 150 cubic centimeters displacement; or
             44730          (B) a motor that produces more than five horsepower.
             44731          (h) (i) "Other trailer" means a portable vehicle without motive power that is primarily
             44732      used:
             44733          (A) to transport tangible personal property; and
             44734          (B) for a purpose other than a commercial purpose; and
             44735          (ii) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             44736      Administrative Rulemaking Act, for purposes of Subsection (1)(h)(i)(B), the commission may
             44737      by rule define what constitutes a purpose other than a commercial purpose.
             44738          (i) "Outboard motor" is as defined in Section 41-1a-102 .
             44739          (j) "Personal watercraft" means a personal watercraft:
             44740          (i) as defined in Section 73-18-2 ; and
             44741          (ii) that is required to be registered in accordance with Title 73, Chapter 18, State
             44742      Boating Act.
             44743          (k) (i) "Pontoon" means a vessel that:
             44744          (A) is:
             44745          (I) supported by one or more floats; and

             44746          (II) propelled by either inboard or outboard power; and
             44747          (B) is not:
             44748          (I) a houseboat; or
             44749          (II) a collapsible inflatable vessel; and
             44750          (ii) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             44751      Administrative Rulemaking Act, the commission may by rule define the term "houseboat".
             44752          (l) "Qualifying adjustment, exemption, or reduction" means an adjustment, exemption,
             44753      or reduction:
             44754          (i) of all or a portion of a qualifying payment;
             44755          (ii) granted by a county during the refund period; and
             44756          (iii) received by a qualifying person.
             44757          (m) (i) "Qualifying payment" means the payment made:
             44758          (A) of a uniform statewide fee in accordance with this section:
             44759          (I) by a qualifying person;
             44760          (II) to a county; and
             44761          (III) during the refund period; and
             44762          (B) on an item of qualifying tangible personal property; and
             44763          (ii) if a qualifying person received a qualifying adjustment, exemption, or reduction for
             44764      an item of qualifying tangible personal property, the qualifying payment for that qualifying
             44765      tangible personal property is equal to the difference between:
             44766          (A) the payment described in this Subsection (1)(m) for that item of qualifying tangible
             44767      personal property; and
             44768          (B) the amount of the qualifying adjustment, exemption, or reduction.
             44769          (n) "Qualifying person" means a person that paid a uniform statewide fee:
             44770          (i) during the refund period;
             44771          (ii) in accordance with this section; and
             44772          (iii) on an item of qualifying tangible personal property.
             44773          (o) "Qualifying tangible personal property" means a:

             44774          (i) qualifying vehicle; or
             44775          (ii) qualifying watercraft.
             44776          (p) "Qualifying vehicle" means:
             44777          (i) an all-terrain vehicle with an engine displacement that is 100 or more cubic
             44778      centimeters but 150 or less cubic centimeters;
             44779          (ii) an other motorcycle with an engine displacement that is 100 or more cubic
             44780      centimeters but 150 or less cubic centimeters;
             44781          (iii) a small motor vehicle with an engine displacement that is 100 or more cubic
             44782      centimeters but 150 or less cubic centimeters;
             44783          (iv) a snowmobile with an engine displacement that is 100 or more cubic centimeters
             44784      but 150 or less cubic centimeters; or
             44785          (v) a street motorcycle with an engine displacement that is 100 or more cubic
             44786      centimeters but 150 or less cubic centimeters.
             44787          (q) "Qualifying watercraft" means a:
             44788          (i) canoe;
             44789          (ii) collapsible inflatable vessel;
             44790          (iii) jon boat;
             44791          (iv) pontoon;
             44792          (v) sailboat; or
             44793          (vi) utility boat.
             44794          (r) "Refund period" means the time period:
             44795          (i) beginning on January 1, 2006; and
             44796          (ii) ending on December 29, 2006.
             44797          (s) "Sailboat" means a sailboat as defined in Section 73-18-2 .
             44798          (t) (i) "Small motor vehicle" means a motor vehicle that:
             44799          (A) is required to be registered in accordance with Title 41, Motor Vehicles; and
             44800          (B) has:
             44801          (I) an engine with 150 or less cubic centimeters displacement; or

             44802          (II) a motor that produces five or less horsepower; and
             44803          (ii) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             44804      Administrative Rulemaking Act, the commission may by rule develop a process for an owner of
             44805      a motor vehicle to certify whether the motor vehicle has:
             44806          (A) an engine with 150 or less cubic centimeters displacement; or
             44807          (B) a motor that produces five or less horsepower.
             44808          (u) "Snowmobile" means a motor vehicle that:
             44809          (i) is a snowmobile as defined in Section 41-22-2 ;
             44810          (ii) is required to be registered in accordance with Title 41, Chapter 22, Off-Highway
             44811      Vehicles; and
             44812          (iii) has:
             44813          (A) an engine with more than 150 cubic centimeters displacement; or
             44814          (B) a motor that produces more than five horsepower.
             44815          (v) "Street motorcycle" means a motor vehicle that:
             44816          (i) is:
             44817          (A) a motorcycle as defined in Section 41-1a-102 ; and
             44818          (B) designed primarily for use and operation on highways;
             44819          (ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
             44820      Registration; and
             44821          (iii) has:
             44822          (A) an engine with more than 150 cubic centimeters displacement; or
             44823          (B) a motor that produces more than five horsepower.
             44824          (w) "Tangible personal property owner" means a person that owns an item of qualifying
             44825      tangible personal property.
             44826          (x) "Tent trailer" means a portable vehicle without motive power that:
             44827          (i) is constructed with collapsible side walls that:
             44828          (A) fold for towing by a motor vehicle; and
             44829          (B) unfold at a campsite;

             44830          (ii) is designed as a temporary dwelling for travel, recreational, or vacation use;
             44831          (iii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
             44832      Registration; and
             44833          (iv) does not require a special highway movement permit when drawn by a
             44834      self-propelled motor vehicle.
             44835          (y) (i) Except as provided in Subsection (1)(y)(ii), "travel trailer" means a travel trailer:
             44836          (A) as defined in Section 41-1a-102 ; and
             44837          (B) that is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
             44838      Registration; and
             44839          (ii) notwithstanding Subsection (1)(y)(i), "travel trailer" does not include:
             44840          (A) a camper; or
             44841          (B) a tent trailer.
             44842          (z) (i) "Utility boat" means a vessel that:
             44843          (A) has:
             44844          (I) two or three bench seating;
             44845          (II) an outboard motor; and
             44846          (III) a hull made of aluminum, fiberglass, or wood; and
             44847          (B) does not have:
             44848          (I) decking;
             44849          (II) a permanent canopy; or
             44850          (III) a floor other than the hull; and
             44851          (ii) notwithstanding Subsection (1)(z)(i), "utility boat" does not include a collapsible
             44852      inflatable vessel.
             44853          (aa) "Vessel" means a vessel:
             44854          (i) as defined in Section 73-18-2 , including an outboard motor of the vessel; and
             44855          (ii) that is required to be registered in accordance with Title 73, Chapter 18, State
             44856      Boating Act.
             44857          (2) (a) In accordance with Utah Constitution Article XIII, Section 2, Subsection (6),

             44858      beginning on January 1, 2006, the tangible personal property described in Subsection (2)(b) is:
             44859          (i) exempt from the tax imposed by Section 59-2-103 ; and
             44860          (ii) in lieu of the tax imposed by Section 59-2-103 , subject to uniform statewide fees as
             44861      provided in this section.
             44862          (b) The following tangible personal property applies to Subsection (2)(a) if that tangible
             44863      personal property is required to be registered with the state:
             44864          (i) an all-terrain vehicle;
             44865          (ii) a camper;
             44866          (iii) an other motorcycle;
             44867          (iv) an other trailer;
             44868          (v) a personal watercraft;
             44869          (vi) a small motor vehicle;
             44870          (vii) a snowmobile;
             44871          (viii) a street motorcycle;
             44872          (ix) a tent trailer;
             44873          (x) a travel trailer; and
             44874          (xi) a vessel if that vessel is less than 31 feet in length as determined under Subsection
             44875      (6).
             44876          (3) For purposes of this section, the uniform statewide fees are:
             44877          (a) for an all-terrain vehicle, an other motorcycle, or a snowmobile:
             44878      Age of All-Terrain Vehicle, Other Motorcycle, or Snowmobile    Uniform Statewide Fee
             44879                  12 or more years                    $10
             44880                  9 or more years but less than 12 years        $20
             44881                  6 or more years but less than 9 years            $30
             44882                  3 or more years but less than 6 years            $35
             44883                  Less than 3 years                    $45
             44884          (b) for a camper or a tent trailer:
             44885              Age of Camper or Tent Trailer            Uniform Statewide Fee

             44886                  12 or more years                    $10
             44887                  9 or more years but less than 12 years        $25
             44888                  6 or more years but less than 9 years            $35
             44889                  3 or more years but less than 6 years            $50
             44890                  Less than 3 years                    $70
             44891          (c) for an other trailer:
             44892              Age of Other Trailer                    Uniform Statewide Fee
             44893                  12 or more years                    $10
             44894                  9 or more years but less than 12 years        $15
             44895                  6 or more years but less than 9 years            $20
             44896                  3 or more years but less than 6 years            $25
             44897                  Less than 3 years                    $30
             44898          (d) for a personal watercraft:
             44899              Age of Personal Watercraft                Uniform Statewide Fee
             44900                  12 or more years                    $10
             44901                  9 or more years but less than 12 years        $25
             44902                  6 or more years but less than 9 years            $35
             44903                  3 or more years but less than 6 years            $45
             44904                  Less than 3 years                    $55
             44905          (e) for a small motor vehicle:
             44906              Age of Small Motor Vehicle                Uniform Statewide Fee
             44907                  6 or more years                    $10
             44908                  3 or more years but less than 6 years            $15
             44909                  Less than 3 years                    $25
             44910          (f) for a street motorcycle:
             44911              Age of Street Motorcycle                Uniform Statewide Fee
             44912                  12 or more years                    $10
             44913                  9 or more years but less than 12 years        $35

             44914                  6 or more years but less than 9 years            $50
             44915                  3 or more years but less than 6 years            $70
             44916                  Less than 3 years                    $95
             44917          (g) for a travel trailer:
             44918              Age of Travel Trailer                    Uniform Statewide Fee
             44919                  12 or more years                    $20
             44920                  9 or more years but less than 12 years        $65
             44921                  6 or more years but less than 9 years            $90
             44922                  3 or more years but less than 6 years            $135
             44923                  Less than 3 years                    $175
             44924          (h) $10 regardless of the age of the vessel if the vessel is:
             44925          (i) less than 15 feet in length;
             44926          (ii) a canoe;
             44927          (iii) a jon boat; or
             44928          (iv) a utility boat;
             44929          (i) for a collapsible inflatable vessel, pontoon, or sailboat, regardless of age:
             44930          Length of Vessel                Uniform Statewide Fee
             44931          15 feet or more in length but less than 19 feet in length        $15
             44932          19 feet or more in length but less than 23 feet in length        $25
             44933          23 feet or more in length but less than 27 feet in length        $40
             44934          27 feet or more in length but less than 31 feet in length        $75
             44935          (j) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
             44936      sailboat, or utility boat, that is 15 feet or more in length but less than 19 feet in length:
             44937               Age of Vessel                Uniform Statewide Fee
             44938              12 or more years                    $25
             44939              9 or more years but less than 12 years        $65
             44940              6 or more years but less than 9 years            $80
             44941              3 or more years but less than 6 years            $110

             44942              Less than 3 years                    $150
             44943          (k) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
             44944      sailboat, or utility boat, that is 19 feet or more in length but less than 23 feet in length:
             44945               Age of Vessel                Uniform Statewide Fee
             44946              12 or more years                    $50
             44947              9 or more years but less than 12 years        $120
             44948              6 or more years but less than 9 years            $175
             44949              3 or more years but less than 6 years            $220
             44950              Less than 3 years                    $275
             44951          (l) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
             44952      sailboat, or utility boat, that is 23 feet or more in length but less than 27 feet in length:
             44953               Age of Vessel                Uniform Statewide Fee
             44954              12 or more years                    $100
             44955              9 or more years but less than 12 years        $180
             44956              6 or more years but less than 9 years            $240
             44957              3 or more years but less than 6 years            $310
             44958              Less than 3 years                    $400
             44959          (m) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
             44960      sailboat, or utility boat, that is 27 feet or more in length but less than 31 feet in length:
             44961               Age of Vessel                Uniform Statewide Fee
             44962              12 or more years                    $120
             44963              9 or more years but less than 12 years        $250
             44964              6 or more years but less than 9 years            $350
             44965              3 or more years but less than 6 years            $500
             44966              Less than 3 years                    $700
             44967          (4) Notwithstanding Section 59-2-407 , tangible personal property subject to the
             44968      uniform statewide fees imposed by this section that is brought into the state shall, as a condition
             44969      of registration, be subject to the uniform statewide fees unless all property taxes or uniform fees

             44970      imposed by the state of origin have been paid for the current calendar year.
             44971          (5) (a) The revenues collected in each county from the uniform statewide fees imposed
             44972      by this section shall be distributed by the county to each taxing entity in which each item of
             44973      tangible personal property subject to the uniform statewide fees is located in the same
             44974      proportion in which revenues collected from the ad valorem property tax are distributed.
             44975          (b) Each taxing entity described in Subsection (5)(a) that receives revenues from the
             44976      uniform statewide fees imposed by this section shall distribute the revenues in the same
             44977      proportion in which revenues collected from the ad valorem property tax are distributed.
             44978          (6) (a) For purposes of the uniform statewide fee imposed by this section, the length of
             44979      a vessel shall be determined as provided in this Subsection (6).
             44980          (b) (i) Except as provided in Subsection (6)(b)(ii), the length of a vessel shall be
             44981      measured as follows:
             44982          (A) the length of a vessel shall be measured in a straight line; and
             44983          (B) the length of a vessel is equal to the distance between the bow of the vessel and the
             44984      stern of the vessel.
             44985          (ii) Notwithstanding Subsection (6)(b)(i), the length of a vessel may not include the
             44986      length of:
             44987          (A) a swim deck;
             44988          (B) a ladder;
             44989          (C) an outboard motor; or
             44990          (D) an appurtenance or attachment similar to Subsections (6)(b)(ii)(A) through (C) as
             44991      determined by the commission by rule.
             44992          (iii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             44993      Administrative Rulemaking Act, the commission may by rule define what constitutes an
             44994      appurtenance or attachment similar to Subsections (6)(b)(ii)(A) through (C).
             44995          (c) The length of a vessel:
             44996          (i) (A) for a new vessel, is the length:
             44997          (I) listed on the manufacturer's statement of origin if the length of the vessel measured

             44998      under Subsection (6)(b) is equal to the length of the vessel listed on the manufacturer's
             44999      statement of origin; or
             45000          (II) listed on a form submitted to the commission by a dealer in accordance with
             45001      Subsection (6)(d) if the length of the vessel measured under Subsection (6)(b) is not equal to
             45002      the length of the vessel listed on the manufacturer's statement of origin; or
             45003          (B) for a vessel other than a new vessel, is the length:
             45004          (I) corresponding to the model number if the length of the vessel measured under
             45005      Subsection (6)(b) is equal to the length of the vessel determined by reference to the model
             45006      number; or
             45007          (II) listed on a form submitted to the commission by an owner of the vessel in
             45008      accordance with Subsection (6)(d) if the length of the vessel measured under Subsection (6)(b)
             45009      is not equal to the length of the vessel determined by reference to the model number; and
             45010          (ii) (A) is determined at the time of the:
             45011          (I) first registration as defined in Section 41-1a-102 that occurs on or after January 1,
             45012      2006; or
             45013          (II) first renewal of registration that occurs on or after January 1, 2006; and
             45014          (B) may be determined after the time described in Subsection (6)(c)(ii)(A) only if the
             45015      commission requests that a dealer or an owner submit a form to the commission in accordance
             45016      with Subsection (6)(d).
             45017          (d) (i) A form under Subsection (6)(c) shall:
             45018          (A) be developed by the commission;
             45019          (B) be provided by the commission to:
             45020          (I) a dealer; or
             45021          (II) an owner of a vessel;
             45022          (C) provide for the reporting of the length of a vessel;
             45023          (D) be submitted to the commission at the time the length of the vessel is determined in
             45024      accordance with Subsection (6)(c)(ii);
             45025          (E) be signed by:

             45026          (I) if the form is submitted by a dealer, that dealer; or
             45027          (II) if the form is submitted by an owner of the vessel, an owner of the vessel; and
             45028          (F) include a certification that the information set forth in the form is true.
             45029          (ii) A certification made under Subsection (6)(d)(i)(F) is considered as if made under
             45030      oath and subject to the same penalties as provided by law for perjury.
             45031          (iii) (A) A dealer or an owner that submits a form to the commission under Subsection
             45032      (6)(c) is considered to have given the dealer's or owner's consent to an audit or review by:
             45033          (I) the commission;
             45034          (II) the county assessor; or
             45035          (III) the commission and the county assessor.
             45036          (B) The consent described in Subsection (6)(d)(iii)(A) is a condition to the acceptance
             45037      of any form.
             45038          (7) (a) A county that collected a qualifying payment from a qualifying person during the
             45039      refund period shall issue a refund to the qualifying person as described in Subsection (7)(b) if:
             45040          (i) the difference described in Subsection (7)(b) is $1 or more; and
             45041          (ii) the qualifying person submitted a form in accordance with Subsections (7)(c) and
             45042      (d).
             45043          (b) The refund amount shall be calculated as follows:
             45044          (i) for a qualifying vehicle, the refund amount is equal to the difference between:
             45045          (A) the qualifying payment the qualifying person paid on the qualifying vehicle during
             45046      the refund period; and
             45047          (B) the amount of the statewide uniform fee:
             45048          (I) for that qualifying vehicle; and
             45049          (II) that the qualifying person would have been required to pay:
             45050          (Aa) during the refund period; and
             45051          (Bb) in accordance with this section had Section 1, Chapter 3, Laws of Utah 2006, Fifth
             45052      Special Session, been in effect during the refund period; and
             45053          (ii) for a qualifying watercraft, the refund amount is equal to the difference between:

             45054          (A) the qualifying payment the qualifying person paid on the qualifying watercraft
             45055      during the refund period; and
             45056          (B) the amount of the statewide uniform fee:
             45057          (I) for that qualifying watercraft;
             45058          (II) that the qualifying person would have been required to pay:
             45059          (Aa) during the refund period; and
             45060          (Bb) in accordance with this section had Section 1, Chapter 3, Laws of Utah 2006, Fifth
             45061      Special Session, been in effect during the refund period.
             45062          (c) Before the county issues a refund to the qualifying person in accordance with
             45063      Subsection (7)(a) the qualifying person shall submit a form to the county to verify the qualifying
             45064      person is entitled to the refund.
             45065          (d) (i) A form under Subsection (7)(c) or (8) shall:
             45066          (A) be developed by the commission;
             45067          (B) be provided by the commission to the counties;
             45068          (C) be provided by the county to the qualifying person or tangible personal property
             45069      owner;
             45070          (D) provide for the reporting of the following:
             45071          (I) for a qualifying vehicle:
             45072          (Aa) the type of qualifying vehicle; and
             45073          (Bb) the amount of cubic centimeters displacement;
             45074          (II) for a qualifying watercraft:
             45075          (Aa) the length of the qualifying watercraft;
             45076          (Bb) the age of the qualifying watercraft; and
             45077          (Cc) the type of qualifying watercraft;
             45078          (E) be signed by the qualifying person or tangible personal property owner; and
             45079          (F) include a certification that the information set forth in the form is true.
             45080          (ii) A certification made under Subsection (7)(d)(i)(F) is considered as if made under
             45081      oath and subject to the same penalties as provided by law for perjury.

             45082          (iii) (A) A qualifying person or tangible personal property owner that submits a form to
             45083      a county under Subsection (7)(c) or (8) is considered to have given the qualifying person's
             45084      consent to an audit or review by:
             45085          (I) the commission;
             45086          (II) the county assessor; or
             45087          (III) the commission and the county assessor.
             45088          (B) The consent described in Subsection (7)(d)(iii)(A) is a condition to the acceptance
             45089      of any form.
             45090          (e) The county shall make changes to the commission's records with the information
             45091      received by the county from the form submitted in accordance with Subsection (7)(c).
             45092          (8) A county shall change its records regarding an item of qualifying tangible personal
             45093      property if the tangible personal property owner submits a form to the county in accordance
             45094      with Subsection (7)(d).
             45095          (9) (a) For purposes of this Subsection (9) "owner of tangible personal property" means
             45096      a person that was required to pay a uniform statewide fee:
             45097          (i) during the refund period;
             45098          (ii) in accordance with this section; and
             45099          (iii) on an item of tangible personal property subject to the uniform statewide fees
             45100      imposed by this section.
             45101          (b) A county that collected revenues from uniform statewide fees imposed by this
             45102      section during the refund period shall notify an owner of tangible personal property:
             45103          (i) of the tangible personal property classification changes made to this section pursuant
             45104      to Section 1, Chapter 3, Laws of Utah 2006, Fifth Special Session;
             45105          (ii) that the owner of tangible personal property may obtain and file a form to modify
             45106      the county's records regarding the owner's tangible personal property; and
             45107          (iii) that the owner may be entitled to a refund pursuant to Subsection (7).
             45108          Section 971. Section 59-2-406 is amended to read:
             45109           59-2-406. Collection of uniform fees and other motor vehicle fees.

             45110          (1) (a) For the purposes of efficiency in the collection of the uniform fee required by
             45111      this section, the commission shall enter into a contract for the collection of the uniform fees
             45112      required under Sections 59-2-405 , 59-2-405.1 , 59-2-405.2 , and 59-2-405.3 , and certain fees
             45113      required by Title 41, Motor Vehicles.
             45114          (b) The contract required by this section shall, at the county's option, provide for one of
             45115      the following collection agreements:
             45116          (i) the collection by the commission of:
             45117          (A) the uniform fees required under Sections 59-2-405 , 59-2-405.1 , 59-2-405.2 , and
             45118      59-2-405.3 ; and
             45119          (B) all fees listed in Subsection (1)(c); or
             45120          (ii) the collection by the county of:
             45121          (A) the uniform fees required under Sections 59-2-405 , 59-2-405.1 , 59-2-405.2 , and
             45122      59-2-405.3 ; and
             45123          (B) all fees listed in Subsection (1)(c).
             45124          (c) For purposes of Subsections (1)(b)(i)(B) and (1)(b)(ii)(B), the fees that are subject
             45125      to the contractual agreement required by this section are the following fees imposed by Title 41,
             45126      Motor Vehicles:
             45127          (i) registration fees for vehicles, mobile homes, manufactured homes, boats, and
             45128      off-highway vehicles, with the exception of fleet and proportional registration;
             45129          (ii) title fees for vehicles, mobile homes, manufactured homes, boats, and off-highway
             45130      vehicles;
             45131          (iii) plate fees for vehicles;
             45132          (iv) permit fees; and
             45133          (v) impound fees.
             45134          (d) A county may change the election it makes pursuant to Subsection (1)(b) by
             45135      providing written notice of the change to the commission at least 18 months before the change
             45136      shall take effect.
             45137          (2) The contract shall provide that the party contracting to perform services shall:

             45138          (a) be responsible for the collection of:
             45139          (i) the uniform fees under Sections 59-2-405 , 59-2-405.1 , 59-2-405.2 , and 59-2-405.3 ;
             45140      and
             45141          (ii) any fees described in Subsection (1)(c) as agreed to in the contract;
             45142          (b) utilize the documents and forms, guidelines, practices, and procedures that meet the
             45143      contract specifications;
             45144          (c) meet the performance standards and comply with applicable training requirements
             45145      specified in the rules made under Subsection (8)(a); and
             45146          (d) be subject to a penalty of 1/2 the difference between the reimbursement fee specified
             45147      under Subsection (3) and the reimbursement fee for fiscal year 1997-98 if performance is below
             45148      the performance standards specified in the rules made under Subsection (8)(a).
             45149          (3) (a) The commission shall recommend a reimbursement fee for collecting the fees as
             45150      provided in Subsection (2)(a), except that the commission may not collect a reimbursement fee
             45151      on a state-assessed commercial vehicle described in Subsection 59-2-405.1 (2)(a)(ii).
             45152          (b) The reimbursement fee shall be based on two dollars per standard unit for the first
             45153      5,000 standard units in each county and one dollar per standard unit for all other standard units
             45154      and shall be annually adjusted by the commission beginning July 1, 1999.
             45155          (c) The adjustment shall be equal to any increase in the Consumer Price Index for all
             45156      urban consumers, prepared by the United States Bureau of Labor Statistics, during the
             45157      preceding calendar year.
             45158          (d) The reimbursement fees under this Subsection (3) shall be appropriated by the
             45159      Legislature.
             45160          (4) All counties that elect to collect the uniform fees described in Subsection
             45161      (1)(b)(ii)(A) and any other fees described in Subsection (1)(c) as provided by contract shall be
             45162      subject to similar contractual terms.
             45163          (5) The party performing the collection services by contract shall use appropriate
             45164      automated systems software and equipment compatible with the system used by the other
             45165      contracting party in order to ensure the integrity of the current motor vehicle data base and

             45166      county tax systems, or successor data bases and systems.
             45167          (6) If the county elects not to collect the uniform fees described in Subsection
             45168      (1)(b)(ii)(A) and the fees described in Subsection (1)(c):
             45169          (a) the commission shall:
             45170          (i) collect the uniform fees described in Subsection (1)(b)(ii)(A) and the fees described
             45171      in Subsection (1)(c) in each county or regional center as negotiated by the counties with the
             45172      commission in accordance with the requirements of this section; and
             45173          (ii) provide information to the county in a format and media consistent with the county's
             45174      requirements; and
             45175          (b) the county shall pay the commission a reimbursement fee as provided in Subsection
             45176      (3).
             45177          (7) This section shall not limit the authority given to the county in Section 59-2-1302 .
             45178          (8) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             45179      Administrative Rulemaking Act, the commission shall make rules specifying the performance
             45180      standards and applicable training requirements for all contracts required by this section.
             45181          (b) Beginning on July 1, 1998, each new contract entered into under this section shall
             45182      be subject to the rules made under Subsection (8)(a).
             45183          Section 972. Section 59-2-503 is amended to read:
             45184           59-2-503. Qualifications for agricultural use assessment.
             45185          (1) For general property tax purposes, land may be assessed on the basis of the value
             45186      that the land has for agricultural use if the land:
             45187          (a) is not less than five contiguous acres in area, except that land may be assessed on
             45188      the basis of the value that the land has for agricultural use:
             45189          (i) if:
             45190          (A) the land is devoted to agricultural use in conjunction with other eligible acreage;
             45191      and
             45192          (B) the land and the other eligible acreage described in Subsection (1)(a)(i)(A) have
             45193      identical legal ownership; or

             45194          (ii) as provided under Subsection (4); and
             45195          (b) except as provided in Subsection (5):
             45196          (i) is actively devoted to agricultural use; and
             45197          (ii) has been actively devoted to agricultural use for at least two successive years
             45198      immediately preceding the tax year for which the land is being assessed under this part.
             45199          (2) In determining whether land is actively devoted to agricultural use, production per
             45200      acre for a given county or area and a given type of land shall be determined by using the first
             45201      applicable of the following:
             45202          (a) production levels reported in the current publication of the Utah Agricultural
             45203      Statistics;
             45204          (b) current crop budgets developed and published by Utah State University; and
             45205          (c) other acceptable standards of agricultural production designated by the commission
             45206      by rule adopted in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             45207      Administrative Rulemaking Act.
             45208          (3) Land may be assessed on the basis of the land's agricultural value if the land:
             45209          (a) is subject to the privilege tax imposed by Section 59-4-101 ;
             45210          (b) is owned by the state or any of the state's political subdivisions; and
             45211          (c) meets the requirements of Subsection (1).
             45212          (4) Notwithstanding Subsection (1)(a), the commission or a county board of
             45213      equalization may grant a waiver of the acreage limitation for land upon:
             45214          (a) appeal by the owner; and
             45215          (b) submission of proof that:
             45216          (i) 80% or more of the owner's, purchaser's, or lessee's income is derived from
             45217      agricultural products produced on the property in question; or
             45218          (ii) (A) the failure to meet the acreage requirement arose solely as a result of an
             45219      acquisition by a governmental entity by:
             45220          (I) eminent domain; or
             45221          (II) the threat or imminence of an eminent domain proceeding;

             45222          (B) the land is actively devoted to agricultural use; and
             45223          (C) no change occurs in the ownership of the land.
             45224          (5) (a) Notwithstanding Subsection (1)(b), the commission or a county board of
             45225      equalization may grant a waiver of the requirement that the land is actively devoted to
             45226      agricultural use for the tax year for which the land is being assessed under this part upon:
             45227          (i) appeal by the owner; and
             45228          (ii) submission of proof that:
             45229          (A) the land was assessed on the basis of agricultural use for at least two years
             45230      immediately preceding that tax year; and
             45231          (B) the failure to meet the agricultural production requirements for that tax year was
             45232      due to no fault or act of the owner, purchaser, or lessee.
             45233          (b) As used in Subsection (5)(a), "fault" does not include:
             45234          (i) intentional planting of crops or trees which, because of the maturation period, do not
             45235      give the owner, purchaser, or lessee a reasonable opportunity to satisfy the production levels
             45236      required for land actively devoted to agricultural use; or
             45237          (ii) implementation of a bona fide range improvement program, crop rotation program,
             45238      or other similar accepted cultural practices which do not give the owner, purchaser, or lessee a
             45239      reasonable opportunity to satisfy the production levels required for land actively devoted to
             45240      agricultural use.
             45241          Section 973. Section 59-2-703 is amended to read:
             45242           59-2-703. Commission to assist county assessors -- Appraisers provided upon
             45243      request -- Costs of services -- Contingency fee arrangements prohibited.
             45244          (1) The commission shall, upon request and pursuant to mutual agreement, provide
             45245      county assessors with technical assistance and appraisal aid. It shall provide certified or licensed
             45246      appraisers who, upon request of the county assessor and pursuant to mutual agreement, shall
             45247      perform appraisals of property and other technical services as needed by the county assessor.
             45248      The costs of these services shall be computed by the commission upon the basis of the number
             45249      of days of services rendered. Each county shall pay to the commission 50% of the cost of the

             45250      services which they receive.
             45251          (2) (a) Both the commission and counties may contract with a private firm or an
             45252      individual to conduct appraisals.
             45253          (b) Notwithstanding [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             45254      Access and Management Act, the commission and counties may disclose the name of the
             45255      taxpayer and the taxpayer's address to the contract appraiser. A private appraiser is subject to
             45256      the confidentiality requirements and penalty provisions provided in [Title 63, Chapter 2] Title
             45257      63G, Chapter 2, Part 8, Remedies.
             45258          (c) Neither the commission nor a county may contract with a private firm or an
             45259      individual under a contingency fee arrangement to assess property or prosecute or defend an
             45260      appeal. An appraisal that has been prepared on a contingency fee basis may not be allowed in
             45261      any proceeding before a county board of equalization or the commission.
             45262          Section 974. Section 59-2-704.5 is amended to read:
             45263           59-2-704.5. Commission to adopt rules -- Legislative review.
             45264          (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             45265      Administrative Rulemaking Act, and after receiving the advice of the Utah Assessors
             45266      Association, the commission shall by rule adopt standards for determining acceptable
             45267      assessment levels and valuation deviations within each county. The standards shall be used for
             45268      determining whether factoring or corrective action is required under Subsection 59-2-704 (2).
             45269          (2) As part of its review of the standards for determining acceptable assessment levels
             45270      and valuation deviations within each county, the commission shall consider any relevant
             45271      standards promulgated by the International Association of Assessing Officers.
             45272          (3) By October 1, 1998, and every five years thereafter, the Revenue and Taxation
             45273      Interim Committee shall review the commission's standards and determine whether the
             45274      standards should be modified.
             45275          Section 975. Section 59-2-801 is amended to read:
             45276           59-2-801. Apportionment of property assessed by commission.
             45277          (1) Before May 25 of each year, the commission shall apportion to each tax area the

             45278      total assessment of all of the property the commission assesses as provided in Subsections (1)(a)
             45279      through (f).
             45280          (a) (i) The commission shall apportion the assessments of the property described in
             45281      Subsection (1)(a)(ii):
             45282          (A) to each tax area through which the public utility or company described in
             45283      Subsection (1)(a)(ii) operates; and
             45284          (B) in proportion to the property's value in each tax area.
             45285          (ii) Subsection (1)(a)(i) applies to property owned by:
             45286          (A) a public utility, except for the rolling stock of a public utility;
             45287          (B) a pipeline company;
             45288          (C) a power company;
             45289          (D) a canal company; or
             45290          (E) an irrigation company.
             45291          (b) The commission shall apportion the assessments of the rolling stock of a railroad:
             45292          (i) to the tax areas through which railroads operate; and
             45293          (ii) in the proportion that the length of the main tracks, sidetracks, passing tracks,
             45294      switches, and tramways of the railroads in each tax area bears to the total length of the main
             45295      tracks, sidetracks, passing tracks, switches, and tramways in the state.
             45296          (c) The commission shall apportion the assessments of the property of a car company
             45297      to:
             45298          (i) each tax area in which a railroad is operated; and
             45299          (ii) in the proportion that the length of the main tracks, passing tracks, sidetracks,
             45300      switches, and tramways of all of the railroads in each tax area bears to the total length of the
             45301      main tracks, passing tracks, sidetracks, switches, and tramways of all of the railroads in the
             45302      state.
             45303          (d) (i) The commission shall apportion the assessments of the property described in
             45304      Subsection (1)(d)(ii) to each tax area in which the property is located.
             45305          (ii) Subsection (1)(d)(i) applies to the following property:

             45306          (A) mines;
             45307          (B) mining claims; or
             45308          (C) mining property.
             45309          (e) (i) The commission shall apportion the assessments of the property described in
             45310      Subsection (1)(e)(ii) to:
             45311          (A) each designated tax area; and
             45312          (B) in the proportion that the route miles in each designated tax area bear to the total
             45313      route miles in the state.
             45314          (ii) Subsection (1)(e)(i) applies to the mobile flight equipment owned by an:
             45315          (A) air charter service;
             45316          (B) air contract service; or
             45317          (C) airline.
             45318          (f) (i) The commission shall apportion the assessments of the property described in
             45319      Subsection (1)(f)(ii) to each tax area in which the property is located as of January 1 of each
             45320      year.
             45321          (ii) Subsection (1)(f)(i) applies to the real and tangible personal property, other than
             45322      mobile flight equipment, owned by an:
             45323          (A) air charter service;
             45324          (B) air contract service; or
             45325          (C) airline.
             45326          (2) (a) (i) (A) State-assessed commercial vehicles that weigh 12,001 pounds or more
             45327      shall be taxed at a statewide average rate which is calculated from the overall county average
             45328      tax rates from the preceding year, exclusive of the property subject to the statewide uniform fee,
             45329      weighted by lane miles of principal routes in each county.
             45330          (B) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             45331      Administrative Rulemaking Act, the commission shall adopt rules to define "principal routes."
             45332          (ii) State-assessed commercial vehicles that weigh 12,000 pounds or less are subject to
             45333      the uniform fee provided in Section 59-2-405.1 .

             45334          (b) The combined revenue from all state-assessed commercial vehicles shall be
             45335      apportioned to the counties based on:
             45336          (i) 40% by the percentage of lane miles of principal routes within each county as
             45337      determined by the commission; and
             45338          (ii) 60% by the percentage of total state-assessed vehicles having business situs in each
             45339      county.
             45340          (c) At least quarterly, the commission shall apportion the total taxes paid on
             45341      state-assessed commercial vehicles to the counties.
             45342          (d) Each county shall apportion its share of the revenues under this Subsection (2) to
             45343      the taxing entities within its boundaries in the same proportion as the assessments of other:
             45344          (i) real property;
             45345          (ii) tangible personal property; and
             45346          (iii) property assessed by the commission.
             45347          Section 976. Section 59-2-924 is amended to read:
             45348           59-2-924. Report of valuation of property to county auditor and commission --
             45349      Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
             45350      tax rate -- Rulemaking authority -- Adoption of tentative budget.
             45351          (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to
             45352      the county auditor and the commission the following statements:
             45353          (i) a statement containing the aggregate valuation of all taxable property in each taxing
             45354      entity; and
             45355          (ii) a statement containing the taxable value of any additional personal property
             45356      estimated by the county assessor to be subject to taxation in the current year.
             45357          (b) The county auditor shall, on or before June 8, transmit to the governing body of
             45358      each taxing entity:
             45359          (i) the statements described in Subsections (1)(a)(i) and (ii);
             45360          (ii) an estimate of the revenue from personal property;
             45361          (iii) the certified tax rate; and

             45362          (iv) all forms necessary to submit a tax levy request.
             45363          (2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad valorem
             45364      property tax revenues for a taxing entity as were budgeted by that taxing entity for the prior
             45365      year.
             45366          (ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not
             45367      include:
             45368          (A) collections from redemptions;
             45369          (B) interest;
             45370          (C) penalties; and
             45371          (D) revenue received by a taxing entity from personal property that is:
             45372          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
             45373          (II) semiconductor manufacturing equipment.
             45374          (iii) (A) Except as otherwise provided in this section, the certified tax rate shall be
             45375      calculated by dividing the ad valorem property tax revenues budgeted for the prior year by the
             45376      taxing entity by the amount calculated under Subsection (2)(a)(iii)(B).
             45377          (B) For purposes of Subsection (2)(a)(iii)(A), the legislative body of a taxing entity
             45378      shall calculate an amount as follows:
             45379          (I) calculate for the taxing entity the difference between:
             45380          (Aa) the aggregate taxable value of all property taxed; and
             45381          (Bb) any redevelopment adjustments for the current calendar year;
             45382          (II) after making the calculation required by Subsection (2)(a)(iii)(B)(I), calculate an
             45383      amount determined by increasing or decreasing the amount calculated under Subsection
             45384      (2)(a)(iii)(B)(I) by the average of the percentage net change in the value of taxable property for
             45385      the equalization period for the three calendar years immediately preceding the current calendar
             45386      year;
             45387          (III) after making the calculation required by Subsection (2)(a)(iii)(B)(II), calculate the
             45388      product of:
             45389          (Aa) the amount calculated under Subsection (2)(a)(iii)(B)(II); and

             45390          (Bb) the percentage of property taxes collected for the five calendar years immediately
             45391      preceding the current calendar year; and
             45392          (IV) after making the calculation required by Subsection (2)(a)(iii)(B)(III), calculate an
             45393      amount determined by subtracting from the amount calculated under Subsection
             45394      (2)(a)(iii)(B)(III) any new growth as defined in this section:
             45395          (Aa) within the taxing entity; and
             45396          (Bb) for the current calendar year.
             45397          (C) For purposes of Subsection (2)(a)(iii)(B)(I), the aggregate taxable value of all
             45398      property taxed:
             45399          (I) except as provided in Subsection (2)(a)(iii)(C)(II), includes the total taxable value of
             45400      the real and personal property contained on the tax rolls of the taxing entity; and
             45401          (II) does not include the total taxable value of personal property contained on the tax
             45402      rolls of the taxing entity that is:
             45403          (Aa) assessed by a county assessor in accordance with Part 3, County Assessment; and
             45404          (Bb) semiconductor manufacturing equipment.
             45405          (D) For purposes of Subsection (2)(a)(iii)(B)(II), for calendar years beginning on or
             45406      after January 1, 2007, the value of taxable property does not include the value of personal
             45407      property that is:
             45408          (I) within the taxing entity assessed by a county assessor in accordance with Part 3,
             45409      County Assessment; and
             45410          (II) semiconductor manufacturing equipment.
             45411          (E) For purposes of Subsection (2)(a)(iii)(B)(III)(Bb), for calendar years beginning on
             45412      or after January 1, 2007, the percentage of property taxes collected does not include property
             45413      taxes collected from personal property that is:
             45414          (I) within the taxing entity assessed by a county assessor in accordance with Part 3,
             45415      County Assessment; and
             45416          (II) semiconductor manufacturing equipment.
             45417          (F) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah

             45418      Administrative Rulemaking Act, the commission may prescribe rules for calculating
             45419      redevelopment adjustments for a calendar year.
             45420          (iv) (A) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             45421      Administrative Rulemaking Act, the commission shall make rules determining the calculation of
             45422      ad valorem property tax revenues budgeted by a taxing entity.
             45423          (B) For purposes of Subsection (2)(a)(iv)(A), ad valorem property tax revenues
             45424      budgeted by a taxing entity shall be calculated in the same manner as budgeted property tax
             45425      revenues are calculated for purposes of Section 59-2-913 .
             45426          (v) The certified tax rates for the taxing entities described in this Subsection (2)(a)(v)
             45427      shall be calculated as follows:
             45428          (A) except as provided in Subsection (2)(a)(v)(B), for new taxing entities the certified
             45429      tax rate is zero;
             45430          (B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
             45431          (I) in a county of the first, second, or third class, the levy imposed for municipal-type
             45432      services under Sections 17-34-1 and 17-36-9 ; and
             45433          (II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
             45434      purposes and such other levies imposed solely for the municipal-type services identified in
             45435      Section 17-34-1 and Subsection 17-36-3 (22); and
             45436          (C) for debt service voted on by the public, the certified tax rate shall be the actual levy
             45437      imposed by that section, except that the certified tax rates for the following levies shall be
             45438      calculated in accordance with Section 59-2-913 and this section:
             45439          (I) school leeways provided for under Sections 11-2-7 , 53A-16-110 , 53A-17a-125 ,
             45440      53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 ; and
             45441          (II) levies to pay for the costs of state legislative mandates or judicial or administrative
             45442      orders under Section 59-2-906.3 .
             45443          (vi) (A) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall be
             45444      established at that rate which is sufficient to generate only the revenue required to satisfy one or
             45445      more eligible judgments, as defined in Section 59-2-102 .

             45446          (B) The ad valorem property tax revenue generated by the judgment levy shall not be
             45447      considered in establishing the taxing entity's aggregate certified tax rate.
             45448          (b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use
             45449      the taxable value of property on the assessment roll.
             45450          (ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the
             45451      assessment roll does not include:
             45452          (A) new growth as defined in Subsection (2)(b)(iii); or
             45453          (B) the total taxable value of personal property contained on the tax rolls of the taxing
             45454      entity that is:
             45455          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
             45456          (II) semiconductor manufacturing equipment.
             45457          (iii) "New growth" means:
             45458          (A) the difference between the increase in taxable value of the taxing entity from the
             45459      previous calendar year to the current year; minus
             45460          (B) the amount of an increase in taxable value described in Subsection (2)(b)(v).
             45461          (iv) For purposes of Subsection (2)(b)(iii), the taxable value of the taxing entity does
             45462      not include the taxable value of personal property that is:
             45463          (A) contained on the tax rolls of the taxing entity if that property is assessed by a
             45464      county assessor in accordance with Part 3, County Assessment; and
             45465          (B) semiconductor manufacturing equipment.
             45466          (v) Subsection (2)(b)(iii)(B) applies to the following increases in taxable value:
             45467          (A) the amount of increase to locally assessed real property taxable values resulting
             45468      from factoring, reappraisal, or any other adjustments; or
             45469          (B) the amount of an increase in the taxable value of property assessed by the
             45470      commission under Section 59-2-201 resulting from a change in the method of apportioning the
             45471      taxable value prescribed by:
             45472          (I) the Legislature;
             45473          (II) a court;

             45474          (III) the commission in an administrative rule; or
             45475          (IV) the commission in an administrative order.
             45476          (c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
             45477      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             45478      59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
             45479      12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
             45480      rate to offset the increased revenues.
             45481          (d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
             45482      Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
             45483          (A) decreased on a one-time basis by the amount of the estimated sales and use tax
             45484      revenue to be distributed to the county under Subsection 59-12-1102 (3); and
             45485          (B) increased by the amount necessary to offset the county's reduction in revenue from
             45486      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             45487      59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
             45488      (2)(d)(i)(A).
             45489          (ii) The commission shall determine estimates of sales and use tax distributions for
             45490      purposes of Subsection (2)(d)(i).
             45491          (e) Beginning January 1, 1998, if a municipality has imposed an additional resort
             45492      communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
             45493      decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
             45494      revenue from the additional resort communities sales and use tax imposed under Section
             45495      59-12-402 .
             45496          (f) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
             45497      Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
             45498      unincorporated area of the county shall be decreased by the amount necessary to reduce
             45499      revenues in that fiscal year by an amount equal to the difference between the amount the county
             45500      budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
             45501      countywide and the amount the county spent during fiscal year 2000 for those services,

             45502      excluding amounts spent from a municipal services fund for those services.
             45503          (B) For fiscal year 2001, the certified tax rate of each county to which Subsection
             45504      (2)(f)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
             45505      year by the amount that the county spent during fiscal year 2000 for advanced life support and
             45506      paramedic services countywide, excluding amounts spent from a municipal services fund for
             45507      those services.
             45508          (ii) (A) A city or town located within a county of the first class to which Subsection
             45509      (2)(f)(i) applies may increase its certified tax rate by the amount necessary to generate within
             45510      the city or town the same amount of revenues as the county would collect from that city or
             45511      town if the decrease under Subsection (2)(f)(i) did not occur.
             45512          (B) An increase under Subsection (2)(f)(ii)(A), whether occurring in a single fiscal year
             45513      or spread over multiple fiscal years, is not subject to the notice and hearing requirements of
             45514      Sections 59-2-918 and 59-2-919 .
             45515          (g) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
             45516      provide detective investigative services to the unincorporated area of the county shall be
             45517      decreased:
             45518          (A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year by
             45519      at least $4,400,000; and
             45520          (B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year by
             45521      an amount equal to the difference between $9,258,412 and the amount of the reduction in
             45522      revenues under Subsection (2)(g)(i)(A).
             45523          (ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
             45524      county to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate
             45525      within the city or town the same amount of revenue as the county would have collected during
             45526      county fiscal year 2001 from within the city or town except for Subsection (2)(g)(i)(A).
             45527          (II) Beginning with municipal fiscal year 2003, a city or town located within a county to
             45528      which Subsection (2)(g)(i) applies may increase its certified tax rate to generate within the city
             45529      or town the same amount of revenue as the county would have collected during county fiscal

             45530      year 2002 from within the city or town except for Subsection (2)(g)(i)(B).
             45531          (B) (I) Except as provided in Subsection (2)(g)(ii)(B)(II), an increase in the city or
             45532      town's certified tax rate under Subsection (2)(g)(ii)(A), whether occurring in a single fiscal year
             45533      or spread over multiple fiscal years, is subject to the notice and hearing requirements of Sections
             45534      59-2-918 and 59-2-919 .
             45535          (II) For an increase under this Subsection (2)(g)(ii) that generates revenue that does not
             45536      exceed the same amount of revenue as the county would have collected except for Subsection
             45537      (2)(g)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the city or town:
             45538          (Aa) publishes a notice that meets the size, type, placement, and frequency requirements
             45539      of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed by the county
             45540      to one imposed by the city or town, and explains how the revenues from the tax increase will be
             45541      used; and
             45542          (Bb) holds a public hearing on the tax shift that may be held in conjunction with the city
             45543      or town's regular budget hearing.
             45544          (h) (i) This Subsection (2)(h) applies to each county that:
             45545          (A) establishes a countywide special service district under Title 17A, Chapter 2, Part
             45546      13, Utah Special Service District Act, to provide jail service, as provided in Subsection
             45547      17A-2-1304 (1)(a)(x); and
             45548          (B) levies a property tax on behalf of the special service district under Section
             45549      17A-2-1322 .
             45550          (ii) (A) The certified tax rate of each county to which this Subsection (2)(h) applies
             45551      shall be decreased by the amount necessary to reduce county revenues by the same amount of
             45552      revenues that will be generated by the property tax imposed on behalf of the special service
             45553      district.
             45554          (B) Each decrease under Subsection (2)(h)(ii)(A) shall occur contemporaneously with
             45555      the levy on behalf of the special service district under Section 17A-2-1322 .
             45556          (i) (i) As used in this Subsection (2)(i):
             45557          (A) "Annexing county" means a county whose unincorporated area is included within a

             45558      fire district by annexation.
             45559          (B) "Annexing municipality" means a municipality whose area is included within a fire
             45560      district by annexation.
             45561          (C) "Equalized fire protection tax rate" means the tax rate that results from:
             45562          (I) calculating, for each participating county and each participating municipality, the
             45563      property tax revenue necessary to cover all of the costs associated with providing fire
             45564      protection, paramedic, and emergency services:
             45565          (Aa) for a participating county, in the unincorporated area of the county; and
             45566          (Bb) for a participating municipality, in the municipality; and
             45567          (II) adding all the amounts calculated under Subsection (2)(i)(i)(C)(I) for all
             45568      participating counties and all participating municipalities and then dividing that sum by the
             45569      aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
             45570          (Aa) for participating counties, in the unincorporated area of all participating counties;
             45571      and
             45572          (Bb) for participating municipalities, in all the participating municipalities.
             45573          (D) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
             45574      Area Act, in the creation of which an election was not required under Subsection
             45575      17B-1-214 (3)(c).
             45576          (E) "Fire protection tax rate" means:
             45577          (I) for an annexing county, the property tax rate that, when applied to taxable property
             45578      in the unincorporated area of the county, generates enough property tax revenue to cover all the
             45579      costs associated with providing fire protection, paramedic, and emergency services in the
             45580      unincorporated area of the county; and
             45581          (II) for an annexing municipality, the property tax rate that generates enough property
             45582      tax revenue in the municipality to cover all the costs associated with providing fire protection,
             45583      paramedic, and emergency services in the municipality.
             45584          (F) "Participating county" means a county whose unincorporated area is included within
             45585      a fire district at the time of the creation of the fire district.

             45586          (G) "Participating municipality" means a municipality whose area is included within a
             45587      fire district at the time of the creation of the fire district.
             45588          (ii) In the first year following creation of a fire district, the certified tax rate of each
             45589      participating county and each participating municipality shall be decreased by the amount of the
             45590      equalized fire protection tax rate.
             45591          (iii) In the first year following annexation to a fire district, the certified tax rate of each
             45592      annexing county and each annexing municipality shall be decreased by the fire protection tax
             45593      rate.
             45594          (iv) Each tax levied under this section by a fire district shall be considered to be levied
             45595      by:
             45596          (A) each participating county and each annexing county for purposes of the county's tax
             45597      limitation under Section 59-2-908 ; and
             45598          (B) each participating municipality and each annexing municipality for purposes of the
             45599      municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a city.
             45600          (j) For the calendar year beginning on January 1, 2007, the calculation of a taxing
             45601      entity's certified tax rate shall be adjusted by the amount necessary to offset any change in the
             45602      certified tax rate that may result from excluding the following from the certified tax rate under
             45603      Subsection (2)(a) enacted by the Legislature during the 2007 General Session:
             45604          (i) personal property tax revenue:
             45605          (A) received by a taxing entity;
             45606          (B) assessed by a county assessor in accordance with Part 3, County Assessment; and
             45607          (C) for personal property that is semiconductor manufacturing equipment; or
             45608          (ii) the taxable value of personal property:
             45609          (A) contained on the tax rolls of a taxing entity;
             45610          (B) assessed by a county assessor in accordance with Part 3, County Assessment; and
             45611          (C) that is semiconductor manufacturing equipment.
             45612          (3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
             45613          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county

             45614      auditor of:
             45615          (i) its intent to exceed the certified tax rate; and
             45616          (ii) the amount by which it proposes to exceed the certified tax rate.
             45617          (c) The county auditor shall notify all property owners of any intent to exceed the
             45618      certified tax rate in accordance with Subsection 59-2-919 (2).
             45619          (4) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
             45620      reduced for any year to the extent necessary to provide a community development and renewal
             45621      agency established under Title 17C, Limited Purpose Local Government Entities - Community
             45622      Development and Renewal Agencies, with approximately the same amount of money the agency
             45623      would have received without a reduction in the county's certified tax rate if:
             45624          (i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
             45625      (2)(d)(i);
             45626          (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
             45627      previous year; and
             45628          (iii) the decrease results in a reduction of the amount to be paid to the agency under
             45629      Section 17C-1-403 or 17C-1-404 .
             45630          (b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
             45631      year to the extent necessary to provide a community development and renewal agency with
             45632      approximately the same amount of money as the agency would have received without an
             45633      increase in the certified tax rate that year if:
             45634          (i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
             45635      a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and
             45636          (ii) The certified tax rate of a city, school district, local district, or special service
             45637      district increases independent of the adjustment to the taxable value of the base year.
             45638          (c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
             45639      (2)(d)(i), the amount of money allocated and, when collected, paid each year to a community
             45640      development and renewal agency established under Title 17C, Limited Purpose Local
             45641      Government Entities - Community Development and Renewal Agencies, for the payment of

             45642      bonds or other contract indebtedness, but not for administrative costs, may not be less than that
             45643      amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
             45644      (2)(d)(i).
             45645          Section 977. Section 59-2-1004 is amended to read:
             45646           59-2-1004. Appeal to county board of equalization -- Real property -- Time
             45647      period for appeal -- Decision of board -- Extensions approved by commission -- Appeal to
             45648      commission.
             45649          (1) (a) A taxpayer dissatisfied with the valuation or the equalization of the taxpayer's
             45650      real property may make an application to appeal by:
             45651          (i) filing the application with the county board of equalization within the time period
             45652      described in Subsection (2); or
             45653          (ii) making an application by telephone or other electronic means within the time period
             45654      described in Subsection (2) if the county legislative body passes a resolution under Subsection
             45655      (5) authorizing applications to be made by telephone or other electronic means.
             45656          (b) The contents of the application shall be prescribed by rule of the county board of
             45657      equalization.
             45658          (2) (a) Except as provided in Subsection (2)(b), for purposes of Subsection (1), a
             45659      taxpayer shall make an application to appeal the valuation or the equalization of the taxpayer's
             45660      real property on or before the later of:
             45661          (i) September 15 of the current calendar year; or
             45662          (ii) the last day of a 45-day period beginning on the day on which the county auditor
             45663      mails the notice under Subsection 59-2-919 (4).
             45664          (b) Notwithstanding Subsection (2)(a), in accordance with [Title 63, Chapter 46a] Title
             45665      63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules
             45666      providing for circumstances under which the county board of equalization is required to accept
             45667      an application to appeal that is filed after the time period prescribed in Subsection (2)(a).
             45668          (3) The owner shall include in the application under Subsection (1)(a)(i) the owner's
             45669      estimate of the fair market value of the property and any evidence which may indicate that the

             45670      assessed valuation of the owner's property is improperly equalized with the assessed valuation
             45671      of comparable properties.
             45672          (4) (a) The county board of equalization shall meet and hold public hearings as
             45673      prescribed in Section 59-2-1001 .
             45674          (b) The county board of equalization shall make a decision on each appeal filed in
             45675      accordance with this section within a 60-day period after the day on which the application is
             45676      made.
             45677          (c) The commission may approve the extension of a time period provided for in
             45678      Subsection (4)(b) for a county board of equalization to make a decision on an appeal.
             45679          (d) The decision of the board shall contain a determination of the valuation of the
             45680      property based on fair market value, and a conclusion that the fair market value is properly
             45681      equalized with the assessed value of comparable properties.
             45682          (e) If no evidence is presented before the county board of equalization, it will be
             45683      presumed that the equalization issue has been met.
             45684          (f) (i) If the fair market value of the property that is the subject of the appeal deviates
             45685      plus or minus 5% from the assessed value of comparable properties, the valuation of the
             45686      appealed property shall be adjusted to reflect a value equalized with the assessed value of
             45687      comparable properties.
             45688          (ii) The equalized value established under Subsection (4)(f)(i) shall be the assessed
             45689      value for property tax purposes until the county assessor is able to evaluate and equalize the
             45690      assessed value of all comparable properties to bring them all into conformity with full fair
             45691      market value.
             45692          (5) If any taxpayer is dissatisfied with the decision of the county board of equalization,
             45693      the taxpayer may file an appeal with the commission as prescribed in Section 59-2-1006 .
             45694          (6) A county legislative body may pass a resolution authorizing taxpayers owing taxes
             45695      on property assessed by that county to file property tax appeals applications under this section
             45696      by telephone or other electronic means.
             45697          Section 978. Section 59-2-1004.5 is amended to read:

             45698           59-2-1004.5. Valuation adjustment for decrease in taxable value caused by a
             45699      natural disaster.
             45700          (1) For purposes of this section:
             45701          (a) "natural disaster" means:
             45702          (i) an explosion;
             45703          (ii) fire;
             45704          (iii) a flood;
             45705          (iv) a storm;
             45706          (v) a tornado;
             45707          (vi) winds;
             45708          (vii) an earthquake;
             45709          (viii) lightning;
             45710          (ix) any adverse weather event; or
             45711          (x) any event similar to an event described in this Subsection (1), as determined by the
             45712      commission by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             45713      Administrative Rulemaking Act; and
             45714          (b) "natural disaster damage" means any physical harm to property caused by a natural
             45715      disaster.
             45716          (2) Except as provided in Subsection (3), if, during a calendar year, property sustains a
             45717      decrease in taxable value that is caused by natural disaster damage, the owner of the property
             45718      may apply to the county board of equalization for an adjustment in the taxable value of the
             45719      owner's property as provided in Subsection (4).
             45720          (3) Notwithstanding Subsection (2), an owner may not receive the valuation adjustment
             45721      described in this section if the decrease in taxable value described in Subsection (2) is:
             45722          (a) due to the intentional action or inaction of the owner; or
             45723          (b) less than 30% of the taxable value of the property described in Subsection (2) before
             45724      the decrease in taxable value described in Subsection (2).
             45725          (4) (a) To receive the valuation adjustment described in Subsection (2), the owner of

             45726      the property shall file an application for the valuation adjustment with the county board of
             45727      equalization on or before the later of:
             45728          (i) the deadline described in Subsection 59-2-1004 (2); or
             45729          (ii) 45 days after the day on which the natural disaster damage described in Subsection
             45730      (2) occurs.
             45731          (b) The county board of equalization shall hold a hearing:
             45732          (i) within 30 days of the day on which the application described in Subsection (4)(a) is
             45733      received by the board of equalization; and
             45734          (ii) following the procedures and requirements of Section 59-2-1001 .
             45735          (c) At the hearing described in Subsection (4)(b), the applicant shall have the burden of
             45736      proving, by a preponderance of the evidence:
             45737          (i) that the property sustained a decrease in taxable value, that:
             45738          (A) was caused by natural disaster damage; and
             45739          (B) is at least 30% of the taxable value of the property described in this Subsection
             45740      (4)(c)(i) before the decrease in taxable value described in this Subsection (4)(c)(i);
             45741          (ii) the amount of the decrease in taxable value described in Subsection (4)(c)(i); and
             45742          (iii) that the decrease in taxable value described in Subsection (4)(c)(i) is not due to the
             45743      action or inaction of the applicant.
             45744          (d) If the county board of equalization determines that the applicant has met the burden
             45745      of proof described in Subsection (4)(c), the county board of equalization shall reduce the
             45746      valuation of the property described in Subsection (4)(c)(i) by an amount equal to the decrease in
             45747      taxable value of the property multiplied by the percentage of the calendar year remaining after
             45748      the natural disaster damage occurred.
             45749          (e) The decision of the board of equalization shall be provided to the applicant, in
             45750      writing, within 30 days of the day on which the hearing described in Subsection (4)(b) is
             45751      concluded.
             45752          (5) An applicant that is dissatisfied with a decision of the board of equalization under
             45753      this section may appeal that decision under Section 59-2-1006 .

             45754          Section 979. Section 59-2-1004.6 is amended to read:
             45755           59-2-1004.6. Tax relief for decrease in fair market value due to access
             45756      interruption.
             45757          (1) For purposes of this section "access interruption" means interruption of the normal
             45758      access to or from property due to any circumstance beyond the control of the owner, including:
             45759          (a) road construction;
             45760          (b) traffic diversion;
             45761          (c) an accident;
             45762          (d) vandalism;
             45763          (e) an explosion;
             45764          (f) fire;
             45765          (g) a flood;
             45766          (h) a storm;
             45767          (i) a tornado;
             45768          (j) winds;
             45769          (k) an earthquake;
             45770          (l) lightning;
             45771          (m) any adverse weather event; or
             45772          (n) any event similar to the events described in this Subsection (1), as determined by the
             45773      commission by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             45774      Administrative Rulemaking Act.
             45775          (2) Except as provided in Subsection (3), if, during a calendar year, property sustains a
             45776      decrease in fair market value that is caused by access interruption, the owner of the property
             45777      may apply to the county board of equalization for an adjustment in the fair market value of the
             45778      owner's property as provided in Subsection (4).
             45779          (3) Notwithstanding Subsection (2), an owner may not receive the tax relief described
             45780      in this section if the decrease in fair market value described in Subsection (2) is due to the
             45781      intentional action or inaction of the owner.

             45782          (4) (a) To receive the tax relief described in Subsection (2), the owner of the property
             45783      shall file an application for tax relief with the county board of equalization on or before
             45784      September 30.
             45785          (b) The county board of equalization shall hold a hearing:
             45786          (i) within 30 days of the day on which the application described in Subsection (4)(a) is
             45787      received by the board of equalization; and
             45788          (ii) in the manner described in Section 59-2-1001 .
             45789          (c) At the hearing described in Subsection (4)(b), the applicant shall have the burden of
             45790      proving, by a preponderance of the evidence:
             45791          (i) that the property sustained a decrease in fair market value, during the applicable
             45792      calendar year, that was caused by access interruption;
             45793          (ii) the amount of the decrease in fair market value described in Subsection (4)(c)(i);
             45794      and
             45795          (iii) that the decrease in fair market value described in Subsection (4)(c)(i) is not due to
             45796      the action or inaction of the applicant.
             45797          (d) If the county board of equalization determines that the applicant has met the burden
             45798      of proof described in Subsection (4)(c), the county board of equalization shall reduce the
             45799      valuation of the property described in Subsection (4)(c)(i) by an amount equal to the decrease in
             45800      fair market value of the property multiplied by the portion of the calendar year that the fair
             45801      market value of the property was decreased.
             45802          (e) The decision of the board of equalization shall be provided to the applicant, in
             45803      writing, within 30 days of the day on which the hearing described in Subsection (4)(b) is
             45804      concluded.
             45805          (5) An applicant that is dissatisfied with a decision of the board of equalization under
             45806      this section may appeal that decision under Section 59-2-1006 .
             45807          Section 980. Section 59-2-1007 is amended to read:
             45808           59-2-1007. Objection to assessment by commission -- Application -- Contents of
             45809      application -- Amending an application -- Hearings -- Appeals.

             45810          (1) (a) If the owner of any property assessed by the commission, or any county upon a
             45811      showing of reasonable cause, objects to the assessment, the owner or the county may, on or
             45812      before the later of June 1 or a day within 30 days of the date the notice of assessment is mailed
             45813      by the commission pursuant to Section 59-2-201 , apply to the commission for a hearing.
             45814          (b) The commission shall allow the following to be a party at a hearing under this
             45815      section:
             45816          (i) the owner; and
             45817          (ii) the county upon a showing of reasonable cause.
             45818          (2) The owner or county shall include in the application under Subsection (1)(a):
             45819          (a) a written statement setting forth the known facts and legal basis supporting a
             45820      different fair market value than the value assessed by the commission; and
             45821          (b) the owner's or county's estimate of the fair market value of the property.
             45822          (3) (a) An owner's or a county's estimate on an application under Subsection (2) of the
             45823      fair market value of the property may be amended prior to the hearing as provided by rule.
             45824          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             45825      Administrative Rulemaking Act, the commission may make rules governing the procedures for
             45826      amending an estimate of fair market value under Subsection (3)(a).
             45827          (4) (a) An owner applying to the commission for a hearing in accordance with
             45828      Subsection (1) shall for the property for which the owner objects to the commission's
             45829      assessment file a copy of the application with the county auditor of each county in which the
             45830      property is located.
             45831          (b) A county auditor receiving a copy of an application in accordance with Subsection
             45832      (4)(a) shall provide a copy of the application to the county:
             45833          (i) assessor;
             45834          (ii) attorney;
             45835          (iii) legislative body; and
             45836          (iv) treasurer.
             45837          (5) (a) On or before August 1, the commission shall conduct a scheduling conference

             45838      with all parties to a hearing under this section.
             45839          (b) At the scheduling conference under Subsection (5)(a), the commission shall
             45840      establish dates for:
             45841          (i) the completion of discovery;
             45842          (ii) the filing of prehearing motions; and
             45843          (iii) conducting a hearing on the objection to the assessment.
             45844          (6) (a) The commission shall issue a written decision no later than 120 days after the
             45845      later of:
             45846          (i) the hearing described in Subsection (5)(b) is completed; or
             45847          (ii) all posthearing briefs are submitted.
             45848          (b) Any applications not resolved by the commission within a two-year period from the
             45849      date of filing are considered to be denied, unless the parties stipulate to a different time period
             45850      for resolving an application.
             45851          (c) A party may appeal to the district court pursuant to Section 59-1-601 within 30
             45852      days from the day on which an application is considered to be denied.
             45853          (7) At the hearing on the application, the commission may increase, lower, or sustain
             45854      the assessment if:
             45855          (a) the commission finds an error in the assessment; or
             45856          (b) the commission determines that increasing, lowering, or sustaining the assessment is
             45857      necessary to equalize the assessment with other similarly assessed property.
             45858          (8) (a) (i) The commission shall send notice of a commission action under Subsection
             45859      (7) to a county auditor if:
             45860          (A) the commission proposes to adjust an assessment which was made pursuant to
             45861      Section 59-2-201 ;
             45862          (B) the county's tax revenues may be affected by the commission's decision; and
             45863          (C) the county has not already been made a party pursuant to Subsection (1).
             45864          (ii) The written notice sent by the commission under Subsection (8)(a)(i):
             45865          (A) may be transmitted by:

             45866          (I) any form of electronic communication;
             45867          (II) first class mail; or
             45868          (III) private carrier; and
             45869          (B) shall request the county to show good cause why the commission should not adjust
             45870      the assessment by requesting the county to provide to the commission a written statement:
             45871          (I) setting forth the known facts and legal basis for not adjusting the assessment; and
             45872          (II) within 30 days from the date of the notice.
             45873          (b) If a county provides to the commission a written statement in accordance with
             45874      Subsection (8)(a)(ii)(B), the commission shall:
             45875          (i) hold a hearing or take other appropriate action to consider the good cause alleged by
             45876      the county; and
             45877          (ii) issue a written decision increasing, lowering, or sustaining the assessment.
             45878          (c) If a county does not provide to the commission a written statement in accordance
             45879      with Subsection (8)(a)(ii)(B), within 30 days after the commission sends the notice described in
             45880      Subsection (8)(a), the commission shall adjust the assessment and send a copy of the
             45881      commission's written decision to the county.
             45882          (9) Subsection (8) does not limit the rights of any county as described in Subsection (1).
             45883          Section 981. Section 59-2-1102 is amended to read:
             45884           59-2-1102. Determination of exemptions by board of equalization -- Appeal --
             45885      Application for exemption -- Annual statement -- Exceptions.
             45886          (1) (a) For property assessed under Part 3, County Assessment, the county board of
             45887      equalization may, after giving notice in a manner prescribed by rule, determine whether certain
             45888      property within the county is exempt from taxation.
             45889          (b) The decision of the county board of equalization described in Subsection (1)(a)
             45890      shall:
             45891          (i) be in writing; and
             45892          (ii) include:
             45893          (A) a statement of facts; and

             45894          (B) the statutory basis for its decision.
             45895          (c) Except as provided in Subsection (11)(a), a copy of the decision described in
             45896      Subsection (1)(a) shall be sent on or before May 15 to the person applying for the exemption.
             45897          (2) The county board of equalization shall notify an owner of exempt property that has
             45898      previously received an exemption but failed to file an annual statement in accordance with
             45899      Subsection (9)(c), of the county board of equalization's intent to revoke the exemption on or
             45900      before April 1.
             45901          (3) (a) Except as provided in Subsection (8) and subject to Subsection (9), a reduction
             45902      may not be made under this part in the value of property and an exemption may not be granted
             45903      under this part unless the party affected or the party's agent:
             45904          (i) makes and files with the county board of equalization a written application for the
             45905      reduction or exemption, verified by signed statement; and
             45906          (ii) appears before the county board of equalization and shows facts upon which it is
             45907      claimed the reduction should be made, or exemption granted.
             45908          (b) Notwithstanding Subsection (9), the county board of equalization may waive:
             45909          (i) the application or personal appearance requirements of Subsection (3)(a), (4)(b), or
             45910      (9)(a); or
             45911          (ii) the annual statement requirements of Subsection (9)(c).
             45912          (4) (a) Before the county board of equalization grants any application for exemption or
             45913      reduction, the county board of equalization may examine under oath the person or agent making
             45914      the application.
             45915          (b) Except as provided in Subsection (3)(b), a reduction may not be made or exemption
             45916      granted unless the person or the agent making the application attends and answers all questions
             45917      pertinent to the inquiry.
             45918          (5) For the hearing on the application, the county board of equalization may subpoena
             45919      any witnesses, and hear and take any evidence in relation to the pending application.
             45920          (6) Except as provided in Subsection (11)(b), the county board of equalization shall
             45921      hold hearings and render a written decision to determine any exemption on or before May 1 in

             45922      each year.
             45923          (7) Any property owner dissatisfied with the decision of the county board of
             45924      equalization regarding any reduction or exemption may appeal to the commission under Section
             45925      59-2-1006 .
             45926          (8) Notwithstanding Subsection (3)(a), a county board of equalization may not require
             45927      an owner of property to file an application in accordance with this section in order to claim an
             45928      exemption for the property under the following:
             45929          (a) Subsections 59-2-1101 (3)(a) through (c);
             45930          (b) Subsection 59-2-1101 (3)(f) or (g);
             45931          (c) Section 59-2-1110 ;
             45932          (d) Section 59-2-1111 ;
             45933          (e) Section 59-2-1112 ;
             45934          (f) Section 59-2-1113 ; or
             45935          (g) Section 59-2-1114 .
             45936          (9) (a) Except as provided in Subsections (3)(b) and (9)(b), for property described in
             45937      Subsection 59-2-1101 (3)(d) or (e), a county board of equalization shall, consistent with
             45938      Subsection (10), require an owner of that property to file an application in accordance with this
             45939      section in order to claim an exemption for that property.
             45940          (b) Notwithstanding Subsection (9)(a), a county board of equalization may not require
             45941      an owner of property described in Subsection 59-2-1101 (3)(d) or (e) to file an application under
             45942      Subsection (9)(a) if:
             45943          (i) (A) the owner filed an application under Subsection (9)(a); or
             45944          (B) the county board of equalization waived the application requirements in accordance
             45945      with Subsection (3)(b);
             45946          (ii) the county board of equalization determines that the owner may claim an exemption
             45947      for that property; and
             45948          (iii) the exemption described in Subsection (9)(b)(ii) is in effect.
             45949          (c) (i) Except as provided in Subsection (3)(b), for the time period that an owner is

             45950      granted an exemption in accordance with this section for property described in Subsection
             45951      59-2-1101 (3)(d) or (e), a county board of equalization shall require the owner to file an annual
             45952      statement on a form prescribed by the commission establishing that the property continues to be
             45953      eligible for the exemption.
             45954          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             45955      Administrative Rulemaking Act, the commission shall make rules providing:
             45956          (A) the form for the annual statement required by Subsection (9)(c)(i);
             45957          (B) the contents of the form for the annual statement required by Subsection (9)(c)(i);
             45958      and
             45959          (C) procedures and requirements for making the annual statement required by
             45960      Subsection (9)(c)(i).
             45961          (iii) The commission shall make the form described in Subsection (9)(c)(ii)(A) available
             45962      to counties.
             45963          (10) (a) For purposes of this Subsection (10), "exclusive use exemption" is as defined in
             45964      Section 59-2-1101 .
             45965          (b) (i) For purposes of Subsection (1)(a), and except as provided in Subsections
             45966      (10)(b)(ii) and (iii), when a person acquires property on or after January 1 that qualifies for an
             45967      exclusive use exemption, that person may apply for the exclusive use exemption on or before
             45968      the later of:
             45969          (A) the day set by rule as the deadline for filing a property tax exemption application; or
             45970          (B) 30 days after the day on which the property is acquired.
             45971          (ii) Notwithstanding Subsection (10)(b)(i), a person who acquires property on or after
             45972      January 1, 2004, and before January 1, 2005, that qualifies for an exclusive use exemption, may
             45973      apply for the exclusive use exemption for the 2004 calendar year on or before September 30,
             45974      2005.
             45975          (iii) Notwithstanding Subsection (10)(b)(i), a person who acquires property on or after
             45976      January 1, 2005, and before January 1, 2006, that qualifies for an exclusive use exemption, may
             45977      apply for the exclusive use exemption for the 2005 calendar year on or before the later of:

             45978          (A) September 30, 2005; or
             45979          (B) 30 days after the day on which the property is acquired.
             45980          (11) (a) Notwithstanding Subsection (1)(c), if an application for an exemption is filed
             45981      under Subsection (10), a county board of equalization shall send a copy of the decision
             45982      described in Subsection (1)(c) to the person applying for the exemption on or before the later
             45983      of:
             45984          (i) May 15; or
             45985          (ii) 45 days after the day on which the application for the exemption is filed.
             45986          (b) Notwithstanding Subsection (6), if an application for an exemption is filed under
             45987      Subsection (10), a county board of equalization shall hold the hearing and render the decision
             45988      described in Subsection (6) on or before the later of:
             45989          (i) May 1; or
             45990          (ii) 30 days after the day on which the application for the exemption is filed.
             45991          Section 982. Section 59-2-1105 is amended to read:
             45992           59-2-1105. Application for veteran's exemption -- Rulemaking authority --
             45993      Statement -- County authority to make refunds.
             45994          (1) (a) A veteran's exemption may be allowed only if the interest of the claimant is on
             45995      record on January 1 of the year the exemption is claimed.
             45996          (b) If the claimant has an interest in real property under a contract, the veteran's
             45997      exemption may be allowed if it is proved to the satisfaction of the county that the claimant is:
             45998          (i) the purchaser under the contract; and
             45999          (ii) obligated to pay the taxes on the property beginning January 1 of the year the
             46000      exemption is claimed.
             46001          (c) If the claimant is the grantor of a trust holding title to real or tangible personal
             46002      property on which a veteran's exemption is claimed, the claimant may claim the portion of the
             46003      veteran's exemption under Section 59-2-1104 and be treated as the owner of that portion of the
             46004      property held in trust for which the claimant proves to the satisfaction of the county that:
             46005          (i) title to the portion of the trust will revest in the claimant upon the exercise of a

             46006      power:
             46007          (A) by:
             46008          (I) the claimant as grantor of the trust;
             46009          (II) a nonadverse party; or
             46010          (III) both the claimant and a nonadverse party; and
             46011          (B) regardless of whether the power is a power:
             46012          (I) to revoke;
             46013          (II) to terminate;
             46014          (III) to alter;
             46015          (IV) to amend; or
             46016          (V) to appoint;
             46017          (ii) the claimant is obligated to pay the taxes on that portion of the trust property
             46018      beginning January 1 of the year the claimant claims the exemption; and
             46019          (iii) the claimant meets the requirements under this part for the exemption.
             46020          (2) (a) (i) A claimant applying for a veteran's exemption under this section shall file an
             46021      application:
             46022          (A) with the county in which that person resides; and
             46023          (B) except as provided in Subsection (2)(b) or (e), on or before September 1 of the year
             46024      in which that claimant is applying for the veteran's exemption in accordance with this section.
             46025          (ii) A county shall provide a claimant who files an application for a veteran's exemption
             46026      in accordance with this section with a receipt:
             46027          (A) stating that the county received the claimant's application; and
             46028          (B) no later than 30 days after the day on which the claimant filed the application in
             46029      accordance with this section.
             46030          (b) Notwithstanding Subsection (2)(a)(i)(B) or (2)(e):
             46031          (i) subject to Subsection (2)(b)(iv), for a claimant who applies for a veteran's exemption
             46032      on or after January 1, 2004, a county shall extend the deadline for filing the application required
             46033      by Subsection (2)(a) to September 1 of the year after the year the claimant would otherwise be

             46034      required to file the application under Subsection (2)(a)(i)(B) if:
             46035          (A) on or after January 1, 2004, a military entity issues a written decision that the:
             46036          (I) disabled veteran is disabled; or
             46037          (II) deceased disabled veteran with respect to whom the claimant applies for a veteran's
             46038      exemption was disabled at the time the deceased disabled veteran died; and
             46039          (B) the date the written decision described in Subsection (2)(b)(i)(A) takes effect is in
             46040      any year prior to the current calendar year;
             46041          (ii) subject to Subsections (2)(b)(iv) and (2)(d), for a claimant who applies for a
             46042      veteran's exemption on or after January 1, 2004, a county shall allow the claimant to amend the
             46043      application required by Subsection (2)(a) on or before September 1 of the year after the year the
             46044      claimant filed the application under Subsection (2)(a)(i)(B) if:
             46045          (A) on or after January 1, 2004, a military entity issues a written decision that the
             46046      percentage of disability has changed for the:
             46047          (I) disabled veteran; or
             46048          (II) deceased disabled veteran with respect to whom the claimant applies for a veteran's
             46049      exemption; and
             46050          (B) the date the written decision described in Subsection (2)(b)(ii)(A) takes effect is in
             46051      any year prior to the current calendar year;
             46052          (iii) subject to Subsections (2)(b)(iv) and (2)(d), for a claimant who applies for a
             46053      veteran's exemption on or after January 1, 2004, a county shall extend the deadline for filing the
             46054      application required by Subsection (2)(a) to September 1 of the year after the year the claimant
             46055      would otherwise be required to file the application under Subsection (2)(a)(i)(B) if the county
             46056      legislative body determines that:
             46057          (A) the claimant or a member of the claimant's immediate family had an illness or injury
             46058      that prevented the claimant from filing the application on or before the deadline for filing the
             46059      application established in Subsection (2)(a)(i)(B);
             46060          (B) a member of the claimant's immediate family died during the calendar year the
             46061      claimant was required to file the application under Subsection (2)(a)(i)(B);

             46062          (C) the claimant was not physically present in the state for a time period of at least six
             46063      consecutive months during the calendar year the claimant was required to file the application
             46064      under Subsection (2)(a)(i)(B); or
             46065          (D) the failure of the claimant to file the application on or before the deadline for filing
             46066      the application established in Subsection (2)(a)(i)(B):
             46067          (I) would be against equity or good conscience; and
             46068          (II) was beyond the reasonable control of the claimant; and
             46069          (iv) a county may extend the deadline for filing an application or amending an
             46070      application under this Subsection (2) until December 31 if the county finds that good cause
             46071      exists to extend the deadline.
             46072          (c) The following shall accompany the initial application for a veteran's exemption:
             46073          (i) a copy of the veteran's certificate of discharge from the military service of:
             46074          (A) the United States; or
             46075          (B) this state; or
             46076          (ii) other satisfactory evidence of eligible military service.
             46077          (d) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             46078      Administrative Rulemaking Act, the commission may by rule:
             46079          (i) establish procedures and requirements for amending an application under Subsection
             46080      (2)(b)(ii);
             46081          (ii) for purposes of Subsection (2)(b)(iii), define the terms:
             46082          (A) "immediate family"; or
             46083          (B) "physically present"; or
             46084          (iii) for purposes of Subsection (2)(b)(iii), prescribe the circumstances under which the
             46085      failure of a claimant to file an application on or before the deadline for filing the application
             46086      established in Subsection (2)(a)(i)(B):
             46087          (A) would be against equity or good conscience; and
             46088          (B) is beyond the reasonable control of a claimant.
             46089          (e) If a claimant has on file with the county the application described in Subsection

             46090      (2)(a), the county may not require the claimant to file another application described in
             46091      Subsection (2)(a) unless:
             46092          (i) the claimant applies all or a portion of an exemption allowed by this section to any
             46093      tangible personal property;
             46094          (ii) the percentage of disability has changed for the:
             46095          (A) disabled veteran; or
             46096          (B) deceased disabled veteran with respect to whom a claimant applies for a veteran's
             46097      exemption under this section;
             46098          (iii) the disabled veteran dies;
             46099          (iv) the claimant's ownership interest in the claimant's primary residence changes;
             46100          (v) the claimant's occupancy of the primary residence for which the claimant claims an
             46101      exemption under Section 59-2-1104 changes; or
             46102          (vi) the claimant who files an application for a veteran's exemption with respect to a
             46103      deceased disabled veteran or veteran who was killed in action or died in the line of duty is a
             46104      person other than the claimant who filed the application described in Subsection (2)(a) for a
             46105      veteran's exemption:
             46106          (A) for the calendar year immediately preceding the current calendar year; and
             46107          (B) with respect to that deceased disabled veteran or veteran who was killed in action
             46108      or died in the line of duty.
             46109          (f) The county may verify that the residential property for which the claimant claims an
             46110      exemption under Section 59-2-1104 is the claimant's primary residence.
             46111          (3) (a) (i) Subject to Subsection (3)(a)(ii), a claimant who files an application for a
             46112      veteran's exemption shall have on file with the county a statement:
             46113          (A) issued by a military entity; and
             46114          (B) listing the percentage of disability for the disabled veteran or deceased disabled
             46115      veteran with respect to whom a claimant applies for a veteran's exemption.
             46116          (ii) If a claimant has on file with the county the statement described in Subsection
             46117      (3)(a)(i), the county may not require the claimant to file another statement described in

             46118      Subsection (3)(a)(i) unless:
             46119          (A) the claimant who files an application under this section for a veteran's exemption
             46120      with respect to a deceased disabled veteran or veteran who was killed in action or died in the
             46121      line of duty is a person other than the claimant who filed the statement described in Subsection
             46122      (3)(a)(i) for a veteran's exemption:
             46123          (I) for the calendar year immediately preceding the current calendar year; and
             46124          (II) with respect to that deceased disabled veteran or veteran who was killed in action
             46125      or died in the line of duty; or
             46126          (B) the percentage of disability has changed for a:
             46127          (I) disabled veteran; or
             46128          (II) deceased disabled veteran with respect to whom the claimant applies for a veteran's
             46129      exemption under this section.
             46130          (b) For a claimant filing an application in accordance with Subsection (2)(b)(i), the
             46131      claimant shall include with the application required by Subsection (2) a statement issued by a
             46132      military entity listing the date the written decision described in Subsection (2)(b)(i)(A) takes
             46133      effect.
             46134          (c) For a claimant amending an application in accordance with Subsection (2)(b)(ii), the
             46135      claimant shall provide to the county a statement issued by a military entity listing the date the
             46136      written decision described in Subsection (2)(b)(ii)(A) takes effect.
             46137          (4) (a) For purposes of this Subsection (4):
             46138          (i) "Property taxes due" means the taxes due on a claimant's property:
             46139          (A) for which a veteran's exemption is granted by a county; and
             46140          (B) for the calendar year for which the veteran's exemption is granted.
             46141          (ii) "Property taxes paid" is an amount equal to the sum of:
             46142          (A) the amount of the property taxes the claimant paid for the calendar year for which
             46143      the claimant is applying for the veteran's exemption; and
             46144          (B) the veteran's exemption the county granted for the calendar year described in
             46145      Subsection (4)(a)(ii)(A).

             46146          (b) A county granting a veteran's exemption to a claimant shall refund to that claimant
             46147      an amount equal to the amount by which the claimant's property taxes paid exceed the
             46148      claimant's property taxes due, if that amount is $1 or more.
             46149          Section 983. Section 59-2-1115 is amended to read:
             46150           59-2-1115. Exemption of certain tangible personal property.
             46151          (1) (a) The taxable tangible personal property of a taxpayer is exempt from taxation if
             46152      the taxable tangible personal property has a total aggregate fair market value of $3,500 or less.
             46153          (b) For purposes of this section, "taxable tangible personal property" does not include:
             46154          (i) tangible personal property required by law to be registered with the state before it is
             46155      used:
             46156          (A) on a public highway;
             46157          (B) on a public waterway;
             46158          (C) on public land; or
             46159          (D) in the air;
             46160          (ii) a mobile home as defined in Section 41-1a-102 ; or
             46161          (iii) a manufactured home as defined in Section 41-1a-102 .
             46162          (2) (a) For calendar years beginning on or after January 1, 2008, the commission shall
             46163      increase the dollar amount described in Subsection (1) by a percentage equal to the percentage
             46164      difference between the consumer price index for the preceding calendar year and the consumer
             46165      price index for calendar year 2006.
             46166          (b) For purposes of this Subsection (2), the commission shall calculate the consumer
             46167      price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
             46168          (c) If the percentage difference under Subsection (2)(a) is zero or a negative
             46169      percentage, the consumer price index increase for the year is zero.
             46170          (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             46171      Administrative Rulemaking Act, the commission may make rules to administer this section and
             46172      provide for uniform implementation.
             46173          Section 984. Section 59-2-1202 is amended to read:

             46174           59-2-1202. Definitions.
             46175          As used in this part:
             46176          (1) (a) "Claimant" means a homeowner or renter who:
             46177          (i) has filed a claim under this part;
             46178          (ii) is domiciled in this state for the entire calendar year for which a claim for relief is
             46179      filed under this part; and
             46180          (iii) on or before the December 31 of the year for which a claim for relief is filed under
             46181      this part, is:
             46182          (A) 65 years of age or older if the person was born on or before December 31, 1942;
             46183          (B) 66 years of age or older if the person was born on or after January 1, 1943, but on
             46184      or before December 31, 1959; or
             46185          (C) 67 years of age or older if the person was born on or after January 1, 1960.
             46186          (b) A surviving spouse, who otherwise qualifies under this section, is an eligible
             46187      claimant regardless of age.
             46188          (c) If two or more individuals of a household are able to meet the qualifications for a
             46189      claimant, they may determine among them as to who the claimant shall be, but if they are unable
             46190      to agree, the matter shall be referred to the county legislative body for a determination of the
             46191      claimant of an owned residence and to the commission for a determination of the claimant of a
             46192      rented residence.
             46193          (2) (a) "Gross rent" means rental actually paid in cash or its equivalent solely for the
             46194      right of occupancy, at arm's-length, of a residence, exclusive of charges for any utilities,
             46195      services, furniture, furnishings, or personal appliances furnished by the landlord as a part of the
             46196      rental agreement.
             46197          (b) If a claimant occupies two or more residences in the year and does not own the
             46198      residence as of the lien date, "gross rent" means the total rent paid for the residences during the
             46199      one-year period for which the renter files a claim under this part.
             46200          (3) "Homeowner's credit" means a credit against a claimant's property tax liability.
             46201          (4) "Household" means the association of persons who live in the same dwelling,

             46202      sharing its furnishings, facilities, accommodations, and expenses.
             46203          (5) "Household income" means all income received by all persons of a household in:
             46204          (a) the calendar year preceding the calendar year in which property taxes are due; or
             46205          (b) for purposes of the renter's credit authorized by this part, the year for which a claim
             46206      is filed.
             46207          (6) (a) (i) "Income" means the sum of:
             46208          (A) federal adjusted gross income as defined in Section 62, Internal Revenue Code; and
             46209          (B) all nontaxable income as defined in Subsection (6)(b).
             46210          (ii) "Income" does not include:
             46211          (A) aid, assistance, or contributions from a tax-exempt nongovernmental source;
             46212          (B) surplus foods;
             46213          (C) relief in kind supplied by a public or private agency; or
             46214          (D) relief provided under this part, Section 59-2-1108 , or Section 59-2-1109 .
             46215          (b) For purposes of Subsection (6)(a)(i), "nontaxable income" means amounts excluded
             46216      from adjusted gross income under the Internal Revenue Code, including:
             46217          (i) capital gains;
             46218          (ii) loss carry forwards claimed during the taxable year in which a claimant files for
             46219      relief under this part, Section 59-2-1108 , or Section 59-2-1109 ;
             46220          (iii) depreciation claimed pursuant to the Internal Revenue Code by a claimant on the
             46221      residence for which the claimant files for relief under this part, Section 59-2-1108 , or Section
             46222      59-2-1109 ;
             46223          (iv) support money received;
             46224          (v) nontaxable strike benefits;
             46225          (vi) cash public assistance or relief;
             46226          (vii) the gross amount of a pension or annuity, including benefits under the Railroad
             46227      Retirement Act of 1974, 45 U.S.C. Sec. 231 et seq., and veterans disability pensions;
             46228          (viii) payments received under the Social Security Act;
             46229          (ix) state unemployment insurance amounts;

             46230          (x) nontaxable interest received from any source;
             46231          (xi) workers' compensation;
             46232          (xii) the gross amount of "loss of time" insurance; and
             46233          (xiii) voluntary contributions to a tax-deferred retirement plan.
             46234          (7) (a) "Property taxes accrued" means property taxes, exclusive of special assessments,
             46235      delinquent interest, and charges for service, levied on a claimant's residence in this state.
             46236          (b) For a mobile home, "property taxes accrued" includes taxes imposed on both the
             46237      land upon which the home is situated and on the structure of the home itself, whether classified
             46238      as real property or personal property taxes.
             46239          (c) (i) Beginning on January 1, 1999, for a claimant who owns a residence, "property
             46240      taxes accrued" are the property taxes described in Subsection (7)(a) levied for the calendar year
             46241      on 35% of the fair market value of the residence as reflected on the assessment roll.
             46242          (ii) The amount described in Subsection (7)(c)(i) constitutes:
             46243          (A) a tax abatement for the poor in accordance with Utah Constitution Article XIII,
             46244      Section 3; and
             46245          (B) the residential exemption provided for in Section 59-2-103 .
             46246          (d) (i) For purposes of this Subsection (7) property taxes accrued are levied on the lien
             46247      date.
             46248          (ii) If a claimant owns a residence on the lien date, property taxes accrued mean taxes
             46249      levied on the lien date, even if that claimant does not own a residence for the entire year.
             46250          (e) When a household owns and occupies two or more different residences in this state
             46251      in the same calendar year, property taxes accrued shall relate only to the residence occupied on
             46252      the lien date by the household as its principal place of residence.
             46253          (f) (i) If a residence is an integral part of a large unit such as a farm or a multipurpose or
             46254      multidwelling building, property taxes accrued shall be the same percentage of the total property
             46255      taxes accrued as the value of the residence is of the total value.
             46256          (ii) For purposes of this Subsection (7)(f), "unit" refers to the parcel of property
             46257      covered by a single tax statement of which the residence is a part.

             46258          (8) (a) As used in this section, "rental assistance payment" means any payment that:
             46259          (i) is made by a:
             46260          (A) governmental entity; or
             46261          (B) (I) charitable organization; or
             46262          (II) religious organization; and
             46263          (ii) is specifically designated for the payment of rent of a claimant:
             46264          (A) for the calendar year for which the claimant seeks a renter's credit under this part;
             46265      and
             46266          (B) regardless of whether the payment is made to the:
             46267          (I) claimant; or
             46268          (II) landlord; and
             46269          (b) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             46270      Administrative Rulemaking Act, the commission may make rules defining the terms:
             46271          (i) "governmental entity";
             46272          (ii) "charitable organization"; or
             46273          (iii) "religious organization."
             46274          (9) (a) "Residence" means the dwelling, whether owned or rented, and so much of the
             46275      land surrounding it, not exceeding one acre, as is reasonably necessary for use of the dwelling as
             46276      a home, and may consist of a part of a multidwelling or multipurpose building and a part of the
             46277      land upon which it is built and includes a mobile home or houseboat.
             46278          (b) "Residence" does not include personal property such as furniture, furnishings, or
             46279      appliances.
             46280          (c) For purposes of this Subsection (9), "owned" includes a vendee in possession under
             46281      a land contract or one or more joint tenants or tenants in common.
             46282          Section 985. Section 59-5-101 is amended to read:
             46283           59-5-101. Definitions.
             46284          As used in this part:
             46285          (1) "Board" means the Board of Oil, Gas and Mining created in Section 40-6-4 .

             46286          (2) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             46287          (3) "Condensate" means those hydrocarbons, regardless of gravity, that occur naturally
             46288      in the gaseous phase in the reservoir that are separated from the natural gas as liquids through
             46289      the process of condensation either in the reservoir, in the wellbore, or at the surface in field
             46290      separators.
             46291          (4) "Crude oil" means those hydrocarbons, regardless of gravity, that occur naturally in
             46292      the liquid phase in the reservoir and are produced and recovered at the wellhead in liquid form.
             46293          (5) "Development well" means any oil and gas producing well other than a wildcat well.
             46294          (6) "Division" means the Division of Oil, Gas and Mining established under Title 40,
             46295      Chapter 6.
             46296          (7) "Enhanced recovery project" means:
             46297          (a) the injection of liquids or hydrocarbon or nonhydrocarbon gases directly into a
             46298      reservoir for the purpose of:
             46299          (i) augmenting reservoir energy;
             46300          (ii) modifying the properties of the fluids or gases in a reservoir; or
             46301          (iii) changing the reservoir conditions to increase the recoverable oil, gas, or oil and gas
             46302      through the joint use of two or more well bores; and
             46303          (b) a project initially approved by the board as a new or expanded enhanced recovery
             46304      project on or after January 1, 1996.
             46305          (8) (a) "Gas" means:
             46306          (i) natural gas;
             46307          (ii) natural gas liquids; or
             46308          (iii) any mixture of natural gas and natural gas liquids.
             46309          (b) "Gas" does not include solid hydrocarbons.
             46310          (9) "Incremental production" means that part of production, certified by the Division of
             46311      Oil, Gas and Mining, which is achieved from an enhanced recovery project that would not have
             46312      economically occurred under the reservoir conditions existing before the project and that has
             46313      been approved by the division as incremental production.

             46314          (10) "Natural gas" means those hydrocarbons, other than oil and other than natural gas
             46315      liquids separated from natural gas, that occur naturally in the gaseous phase in the reservoir and
             46316      are produced and recovered at the wellhead in gaseous form.
             46317          (11) "Natural gas liquids" means those hydrocarbons initially in reservoir natural gas,
             46318      regardless of gravity, that are separated in gas processing plants from the natural gas as liquids
             46319      at the surface through the process of condensation, absorption, adsorption, or other methods.
             46320          (12) (a) "Oil" means:
             46321          (i) crude oil;
             46322          (ii) condensate; or
             46323          (iii) any mixture of crude oil and condensate.
             46324          (b) "Oil" does not include solid hydrocarbons.
             46325          (13) "Oil or gas field" means a geographical area overlying oil or gas structures. The
             46326      boundaries of oil or gas fields shall conform with the boundaries as fixed by the Board and
             46327      Division of Oil, Gas and Mining under Title 40, Chapter 6, Board and Division of Oil, Gas and
             46328      Mining.
             46329          (14) "Oil shale" means a group of fine black to dark brown shales containing bituminous
             46330      material that yields petroleum upon distillation.
             46331          (15) "Operator" means any person engaged in the business of operating an oil or gas
             46332      well, regardless of whether the person is:
             46333          (a) a working interest owner;
             46334          (b) an independent contractor; or
             46335          (c) acting in a capacity similar to Subsection (15)(a) or (b) as determined by the
             46336      commission by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             46337      Administrative Rulemaking Act.
             46338          (16) "Owner" means any person having a working interest, royalty interest, payment
             46339      out of production, or any other interest in the oil or gas produced or extracted from an oil or
             46340      gas well in the state, or in the proceeds of this production.
             46341          (17) (a) Subject to Subsections (17)(b) and (c), "processing costs" means the

             46342      reasonable actual costs of processing oil or gas to remove:
             46343          (i) natural gas liquids; or
             46344          (ii) contaminants.
             46345          (b) If processing costs are determined on the basis of an arm's-length contract,
             46346      processing costs are the actual costs.
             46347          (c) (i) If processing costs are determined on a basis other than an arm's-length contract,
             46348      processing costs are those reasonable costs associated with:
             46349          (A) actual operating and maintenance expenses, including oil or gas used or consumed
             46350      in processing;
             46351          (B) overhead directly attributable and allocable to the operation and maintenance; and
             46352          (C) (I) depreciation and a return on undepreciated capital investment; or
             46353          (II) a cost equal to a return on the investment in the processing facilities as determined
             46354      by the commission.
             46355          (ii) Subsection (17)(c)(i) includes situations where the producer performs the
             46356      processing for the producer's product.
             46357          (18) "Producer" means any working interest owner in any lands in any oil or gas field
             46358      from which gas or oil is produced.
             46359          (19) "Recompletion" means any downhole operation that is:
             46360          (a) conducted to reestablish the producibility or serviceability of a well in any geologic
             46361      interval; and
             46362          (b) approved by the division as a recompletion.
             46363          (20) "Research and development" means the process of inquiry or experimentation
             46364      aimed at the discovery of facts, devices, technologies, or applications and the process of
             46365      preparing those devices, technologies, or applications for marketing.
             46366          (21) "Royalty interest owner" means the owner of an interest in oil or gas, or in the
             46367      proceeds of production from the oil or gas who does not have the obligation to share in the
             46368      expenses of developing and operating the property.
             46369          (22) "Solid hydrocarbons" means:

             46370          (a) coal;
             46371          (b) gilsonite;
             46372          (c) ozocerite;
             46373          (d) elaterite;
             46374          (e) oil shale;
             46375          (f) tar sands; and
             46376          (g) all other hydrocarbon substances that occur naturally in solid form.
             46377          (23) "Stripper well" means:
             46378          (a) an oil well whose average daily production for the days the well has produced has
             46379      been 20 barrels or less of crude oil a day during any consecutive 12-month period; or
             46380          (b) a gas well whose average daily production for the days the well has produced has
             46381      been 60 MCF or less of natural gas a day during any consecutive 90-day period.
             46382          (24) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
             46383      and require further processing other than mechanical blending before becoming finished
             46384      petroleum products.
             46385          (25) (a) Subject to Subsections (25)(b) and (c), "transportation costs" means the
             46386      reasonable actual costs of transporting oil or gas products from the well to the point of sale.
             46387          (b) If transportation costs are determined on the basis of an arm's-length contract,
             46388      transportation costs are the actual costs.
             46389          (c) (i) If transportation costs are determined on a basis other than an arm's-length
             46390      contract, transportation costs are those reasonable costs associated with:
             46391          (A) actual operating and maintenance expenses, including fuel used or consumed in
             46392      transporting the oil or gas;
             46393          (B) overhead costs directly attributable and allocable to the operation and maintenance;
             46394      and
             46395          (C) depreciation and a return on undepreciated capital investment.
             46396          (ii) Subsection (25)(c)(i) includes situations where the producer performs the
             46397      transportation for the producer's product.

             46398          (d) Regardless of whether transportation costs are determined on the basis of an
             46399      arm's-length contract or a basis other than an arm's-length contract, transportation costs include:
             46400          (i) carbon dioxide removal;
             46401          (ii) compression;
             46402          (iii) dehydration;
             46403          (iv) gathering;
             46404          (v) separating;
             46405          (vi) treating; or
             46406          (vii) a process similar to Subsections (25)(d)(i) through (vi), as determined by the
             46407      commission by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             46408      Administrative Rulemaking Act.
             46409          (26) "Tribe" means the Ute Indian Tribe of the Uintah and Ouray Reservation.
             46410          (27) "Well or wells" means any extractive means from which oil or gas is produced or
             46411      extracted, located within an oil or gas field, and operated by one person.
             46412          (28) "Wildcat well" means an oil and gas producing well which is drilled and completed
             46413      in a pool, as defined under Section 40-6-2 , in which a well has not been previously completed as
             46414      a well capable of producing in commercial quantities.
             46415          (29) "Working interest owner" means the owner of an interest in oil or gas burdened
             46416      with a share of the expenses of developing and operating the property.
             46417          (30) (a) "Workover" means any downhole operation that is:
             46418          (i) conducted to sustain, restore, or increase the producibility or serviceability of a well
             46419      in the geologic intervals in which the well is currently completed; and
             46420          (ii) approved by the division as a workover.
             46421          (b) "Workover" does not include operations that are conducted primarily as routine
             46422      maintenance or to replace worn or damaged equipment.
             46423          Section 986. Section 59-5-110 is amended to read:
             46424           59-5-110. Decisions of commission.
             46425          Every decision of the commission shall be in writing and notice of the decision shall be

             46426      mailed to the taxpayer within ten days. All decisions become final upon the expiration of 30
             46427      days after notice has been mailed to the taxpayer, unless proceedings are taken within such time
             46428      for a review in accordance with [Title 63, Chapter 46b, the] Title 63G, Chapter 4,
             46429      Administrative Procedures Act, in which case it becomes final as specified in the Administrative
             46430      Procedures Act.
             46431          Section 987. Section 59-5-203 is amended to read:
             46432           59-5-203. Determining taxable value.
             46433          (1) Except as provided in Subsection (3), the basis for computing the gross proceeds,
             46434      prior to those deductions or adjustments specified in this chapter, in determining the taxable
             46435      value of the metals or metalliferous minerals sold or otherwise disposed of, in the order of
             46436      priority, is as follows:
             46437          (a) If the metals or metalliferous mineral products are actually sold, the value of those
             46438      metals or metalliferous mineral products shall be the gross amount the producer receives from
             46439      that sale, provided that the metals or metalliferous mineral products are sold under a bona fide
             46440      contract of sale between unaffiliated parties. In the case of a sale of uranium concentrates,
             46441      gross proceeds shall be the gross amount the producer receives from the sale of processed
             46442      uranium concentrate or "yellowcake," provided that the uranium concentrate is sold under a
             46443      bona fide contract of sale between unaffiliated parties.
             46444          (b) If the metals or metalliferous mineral products are not actually sold but are shipped,
             46445      transported, or delivered out of state, the gross proceeds shall be the multiple of the recoverable
             46446      units of finished metals, or of the finished metals contained in the metalliferous minerals shipped,
             46447      and the average daily price per unit of contained metals as quoted by an established authority for
             46448      market prices of metals for the period during which the tax imposed by this chapter is due. The
             46449      established authority or authorities shall be designated by the commission by rule adopted in
             46450      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             46451      Act.
             46452          (c) In the case of metals or metalliferous minerals not sold, but otherwise disposed of,
             46453      for which there is no established authority for market prices of metals for the period during

             46454      which the tax imposed by this chapter is due, gross proceeds is determined by allocating to the
             46455      state the same proportion of the producer's total sales of metals or metalliferous minerals sold or
             46456      otherwise disposed of as the producer's total Utah costs bear to the total costs associated with
             46457      sale or disposal of the metal or metalliferous mineral.
             46458          (d) In the event of a sale of metals or metalliferous minerals between affiliated
             46459      companies which is not a bona fide sale because the value received is not proportionate to the
             46460      fair market value of the metals or metalliferous minerals or in the event that Subsection (1)(a),
             46461      (b), or (c) are not applicable, the commission shall determine the value of such metals or
             46462      metalliferous minerals in an equitable manner by reference to an objective standard as specified
             46463      in a rule adopted in accordance with the provisions of [Title 63, Chapter 46a] Title 63G,
             46464      Chapter 3, Utah Administrative Rulemaking Act.
             46465          (2) For all metals except beryllium, the taxable value of the metalliferous mineral sold or
             46466      otherwise disposed of is 30% of the gross proceeds received for the metals sold or otherwise
             46467      disposed of by the producer of the metal.
             46468          (3) (a) Beginning on January 1, 1990, through December 31, 2004, for beryllium sold
             46469      or otherwise disposed of, the taxable value is 20% of the gross proceeds received for the
             46470      beryllium sold or otherwise disposed of by the producer.
             46471          (b) (i) Notwithstanding Subsection (1) or (4) and subject to Subsection (3)(b)(ii),
             46472      beginning on January 1, 2005, the taxable value of beryllium sold or otherwise disposed of by
             46473      the producer of the beryllium is equal to 125% of the direct mining costs incurred in mining the
             46474      beryllium.
             46475          (ii) For an action or proceeding filed on or after January 1, 2005, if the taxable value of
             46476      beryllium is calculated under Subsection (3)(a) for purposes of imposing a tax on beryllium
             46477      under this part, the taxable value of beryllium calculated under Subsection (3)(a) may not
             46478      exceed the taxable value of beryllium calculated under Subsection (3)(b)(i).
             46479          (4) Except as provided in Subsection (3), if the metalliferous mineral sold or otherwise
             46480      disposed of is sold or shipped out of state in the form of ore, then the taxable value is 80% of
             46481      the gross proceeds.

             46482          Section 988. Section 59-5-204 is amended to read:
             46483           59-5-204. Statements filed -- Contents -- Verification -- Falsification as perjury.
             46484          (1) Every person engaged in the business of mining or extracting metalliferous minerals
             46485      shall make and file with the commission, on or before June 1 of each year on forms furnished by
             46486      the commission, a statement containing:
             46487          (a) the name, description, and location of the mine owned and operated by the person
             46488      during the preceding calendar year;
             46489          (b) the number of tons of mineral mined during the preceding calendar year and the
             46490      disposition of the mineral;
             46491          (c) the total amount received during the preceding calendar year from the sale of
             46492      minerals; and
             46493          (d) such other reasonable and necessary information as the commission may require for
             46494      the proper enforcement of this chapter as specified in a rule adopted under [Title 63, Chapter
             46495      46a] Title 63G, Chapter 3, the Administrative Rulemaking Act.
             46496          (2) The owner of the mine shall be responsible for the statement or report required by
             46497      this section, but the principal lessee, contractor, or operator may, with the consent of the
             46498      commission, report and pay the tax as agent for the owner. The owner shall be entitled to
             46499      deduct and remit to the commission any tax chargeable upon the operations conducted by the
             46500      lessees or other parties.
             46501          (3) The statements or reports required to be filed with the commission shall be signed
             46502      and sworn to by the person required to file the statements or reports, by a partner if a
             46503      partnership, or by the president, secretary, or managing officer, if a corporation. Any willful
             46504      false swearing as to the purported material facts set out in this report constitutes the crime of
             46505      perjury and shall be punished as such under Title 76, the Utah Criminal Code.
             46506          Section 989. Section 59-5-210 is amended to read:
             46507           59-5-210. Decisions of commission.
             46508          Every decision of the commission shall be in writing and notice of the decision shall be
             46509      mailed to the taxpayer within ten days. All decisions become final upon the expiration of 30

             46510      days after notice has been mailed to the taxpayer, unless proceedings are taken within such time
             46511      for a review in accordance with [Title 63, Chapter 46b, the] Title 63G, Chapter 4,
             46512      Administrative Procedures Act, in which case it becomes final as specified in the Administrative
             46513      Procedures Act.
             46514          Section 990. Section 59-6-104 is amended to read:
             46515           59-6-104. State laws applicable to chapter -- Rules of commission.
             46516          (1) The provisions of Title 59, Chapter 10, applicable to withholding of taxes by
             46517      employers under Title 59, Chapter 10, Part 4, relating to records, penalties, interest,
             46518      deficiencies, overpayments, refunds, assessments, venue, and civil and criminal penalties are
             46519      applicable to the withholding and payment of withheld taxes under this chapter to the extent
             46520      that those provisions are consistent with this chapter.
             46521          (2) The commission may adopt rules pursuant to [Title 63, Chapter 46a] Title 63G,
             46522      Chapter 3, the Administrative Rulemaking Act, necessary to effectuate the purposes of this
             46523      chapter.
             46524          Section 991. Section 59-7-101 is amended to read:
             46525           59-7-101. Definitions.
             46526          As used in this chapter:
             46527          (1) "Adjusted income" means unadjusted income as modified by Sections 59-7-105 and
             46528      59-7-106 .
             46529          (2) (a) "Affiliated group" means one or more chains of corporations that are connected
             46530      through stock ownership with a common parent corporation that meet the following
             46531      requirements:
             46532          (i) at least 80% of the stock of each of the corporations in the group, excluding the
             46533      common parent corporation, is owned by one or more of the other corporations in the group;
             46534      and
             46535          (ii) the common parent directly owns at least 80% of the stock of at least one of the
             46536      corporations in the group.
             46537          (b) "Affiliated group" does not include corporations that are qualified to do business but

             46538      are not otherwise doing business in this state.
             46539          (c) For purposes of this Subsection (2), "stock" does not include nonvoting stock which
             46540      is limited and preferred as to dividends.
             46541          (3) "Apportionable income" means adjusted income less nonbusiness income net of
             46542      related expenses, to the extent included in adjusted income.
             46543          (4) "Apportioned income" means apportionable income multiplied by the apportionment
             46544      fraction as determined in Section 59-7-311 .
             46545          (5) "Business income" is as defined in Section 59-7-302 .
             46546          (6) "Corporate return" or "return" includes a combined report.
             46547          (7) (a) "Common ownership" means the direct or indirect control or ownership of more
             46548      than 50% of the outstanding voting stock of:
             46549          (i) a parent-subsidiary controlled group as defined in Section 1563, Internal Revenue
             46550      Code, except that 50% shall be substituted for 80%;
             46551          (ii) a brother-sister controlled group as defined in Section 1563, Internal Revenue
             46552      Code, except that 50% shall be substituted for 80%; or
             46553          (iii) three or more corporations each of which is a member of a group of corporations
             46554      described in Subsection (2)(a)(i) or (2)(a)(ii), and one of which is:
             46555          (A) a common parent corporation included in a group of corporations described in
             46556      Subsection (2)(a)(i); and
             46557          (B) included in a group of corporations described in Subsection (2)(a)(ii).
             46558          (b) Ownership of outstanding voting stock shall be determined by Section 1563,
             46559      Internal Revenue Code.
             46560          (8) "Corporation" includes:
             46561          (a) entities defined as corporations under Sections 7701(a) and 7704, Internal Revenue
             46562      Code; and
             46563          (b) other organizations that are taxed as corporations for federal income tax purposes
             46564      under the Internal Revenue Code.
             46565          (9) "Dividend" means any distribution, including money or other type of property, made

             46566      by a corporation to its shareholders out of its earnings or profits accumulated after December
             46567      31, 1930.
             46568          (10) (a) "Doing business" includes any transaction in the course of its business by a
             46569      domestic corporation, or by a foreign corporation qualified to do or doing intrastate business in
             46570      this state.
             46571          (b) Except as provided in Subsection 59-7-102 (2), "doing business" includes:
             46572          (i) the right to do business through incorporation or qualification;
             46573          (ii) the owning, renting, or leasing of real or personal property within this state; and
             46574          (iii) the participation in joint ventures, working and operating agreements, the
             46575      performance of which takes place in this state.
             46576          (11) "Domestic corporation" means a corporation that is incorporated or organized
             46577      under the laws of this state.
             46578          (12) (a) "Farmers' cooperative" means an association, corporation, or other
             46579      organization that is:
             46580          (i) (A) an association, corporation, or other organization of:
             46581          (I) farmers; or
             46582          (II) fruit growers; or
             46583          (B) an association, corporation, or other organization that is similar to an association,
             46584      corporation, or organization described in Subsection (12)(a)(i)(A); and
             46585          (ii) organized and operated on a cooperative basis to:
             46586          (A) (I) market the products of members of the cooperative or the products of other
             46587      producers; and
             46588          (II) return to the members of the cooperative or other producers the proceeds of sales
             46589      less necessary marketing expenses on the basis of the quantity of the products of a member or
             46590      producer or the value of the products of a member or producer; or
             46591          (B) (I) purchase supplies and equipment for the use of members of the cooperative or
             46592      other persons; and
             46593          (II) turn over the supplies and equipment described in Subsection (12)(a)(ii)(B)(I) at

             46594      actual costs plus necessary expenses to the members of the cooperative or other persons.
             46595          (b) (i) Subject to Subsection (12)(b)(ii), for purposes of this Subsection (12), the
             46596      commission by rule, made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             46597      Utah Administrative Rulemaking Act, shall define:
             46598          (A) the terms:
             46599          (I) "member"; and
             46600          (II) "producer"; and
             46601          (B) what constitutes an association, corporation, or other organization that is similar to
             46602      an association, corporation, or organization described in Subsection (12)(a)(i)(A).
             46603          (ii) The rules made under this Subsection (12)(b) shall be consistent with the filing
             46604      requirements under federal law for a farmers' cooperative.
             46605          (13) "Foreign corporation" means a corporation that is not incorporated or organized
             46606      under the laws of this state.
             46607          (14) (a) "Foreign operating company" means a corporation that:
             46608          (i) is incorporated in the United States; and
             46609          (ii) 80% or more of whose business activity, as determined under Section 59-7-401 , is
             46610      conducted outside the United States.
             46611          (b) "Foreign operating company" does not include a corporation that qualifies for the
             46612      Puerto Rico and Possession Tax Credit as provided in Section 936, Internal Revenue Code.
             46613          (15) "Income" includes losses.
             46614          (16) "Internal Revenue Code" means Title 26 of the United States Code as effective
             46615      during the year in which Utah taxable income is determined.
             46616          (17) "Nonbusiness income" is as defined in Section 59-7-302 .
             46617          (18) "Nonresident shareholder" means any shareholder of an S corporation who on the
             46618      last day of the taxable year of the S corporation, is:
             46619          (a) an individual not domiciled in Utah; or
             46620          (b) a nonresident trust or nonresident estate, as defined in Section 59-10-103 .
             46621          (19) "Related expenses" means:

             46622          (a) expenses directly attributable to nonbusiness income; and
             46623          (b) the portion of interest or other expense indirectly attributable to both nonbusiness
             46624      and business income which bears the same ratio to the aggregate amount of such interest or
             46625      other expense, determined without regard to this Subsection (19), as the average amount of the
             46626      asset producing the nonbusiness income bears to the average amount of all assets of the
             46627      taxpayer within the taxable year.
             46628          (20) "Resident shareholder" means any shareholder of an S corporation who is not a
             46629      nonresident shareholder.
             46630          (21) "S corporation" means an S corporation as defined in Section 1361, Internal
             46631      Revenue Code.
             46632          (22) "Safe harbor lease" means a lease that qualified as a safe harbor lease under
             46633      Section 168, Internal Revenue Code.
             46634          (23) "State of the United States" includes any of the 50 states or the District of
             46635      Columbia and "United States" includes the 50 states and the District of Columbia.
             46636          (24) (a) "Taxable year" means the calendar year or the fiscal year ending during such
             46637      calendar year upon the basis of which the adjusted income is computed.
             46638          (b) In the case of a return made for a fractional part of a year under this chapter or
             46639      under rules prescribed by the commission, "taxable year" includes the period for which such
             46640      return is made.
             46641          (25) "Taxpayer" means any corporation subject to the tax imposed by this chapter.
             46642          (26) "Threshold level of business activity" means business activity in the United States
             46643      equal to or greater than 20% of the corporation's total business activity as determined under
             46644      Section 59-7-401 .
             46645          (27) "Unadjusted income" means federal taxable income as determined on a separate
             46646      return basis before intercompany eliminations as determined by the Internal Revenue Code,
             46647      before the net operating loss deduction and special deductions for dividends received.
             46648          (28) (a) "Unitary group" means a group of corporations that:
             46649          (i) are related through common ownership; and

             46650          (ii) by a preponderance of the evidence as determined by a court of competent
             46651      jurisdiction or the commission, are economically interdependent with one another as
             46652      demonstrated by the following factors:
             46653          (A) centralized management;
             46654          (B) functional integration; and
             46655          (C) economies of scale.
             46656          (b) "Unitary group" does not include S corporations.
             46657          (29) "Utah net loss" means the current year Utah taxable income before Utah net loss
             46658      deduction, if determined to be less than zero.
             46659          (30) "Utah net loss deduction" means the amount of Utah net losses from other taxable
             46660      years that may be carried back or carried forward to the current taxable year in accordance with
             46661      Section 59-7-110 .
             46662          (31) (a) "Utah taxable income" means Utah taxable income before net loss deduction
             46663      less Utah net loss deduction.
             46664          (b) "Utah taxable income" includes income from tangible or intangible property located
             46665      or having situs in this state, regardless of whether carried on in intrastate, interstate, or foreign
             46666      commerce.
             46667          (32) "Utah taxable income before net loss deduction" means apportioned income plus
             46668      nonbusiness income allocable to Utah net of related expenses.
             46669          (33) (a) "Water's edge combined report" means a report combining the income and
             46670      activities of:
             46671          (i) all members of a unitary group that are:
             46672          (A) corporations organized or incorporated in the United States, including those
             46673      corporations qualifying for the Puerto Rico and Possession Tax Credit as provided in Section
             46674      936, Internal Revenue Code, in accordance with Subsection (33)(b); and
             46675          (B) corporations organized or incorporated outside of the United States meeting the
             46676      threshold level of business activity; and
             46677          (ii) an affiliated group electing to file a water's edge combined report under Subsection

             46678      59-7-402 (2).
             46679          (b) There is a rebuttable presumption that a corporation which qualifies for the Puerto
             46680      Rico and Possession Tax Credit provided in Section 936, Internal Revenue Code, is part of a
             46681      unitary group.
             46682          (34) "Worldwide combined report" means the combination of the income and activities
             46683      of all members of a unitary group irrespective of the country in which the corporations are
             46684      incorporated or conduct business activity.
             46685          Section 992. Section 59-7-311 is amended to read:
             46686           59-7-311. Method of apportionment of business income.
             46687          (1) All business income shall be apportioned to this state by multiplying the business
             46688      income by a fraction calculated as provided in Subsection (2).
             46689          (2) The fraction described in Subsection (1) is calculated as follows:
             46690          (a) for a taxpayer that does not make an election authorized by Subsection (3):
             46691          (i) the numerator of the fraction is the sum of:
             46692          (A) the property factor as calculated under Section 59-7-312 ;
             46693          (B) the payroll factor as calculated under Section 59-7-315 ; and
             46694          (C) the sales factor as calculated under Section 59-7-317 ; and
             46695          (ii) the denominator of the fraction is three; and
             46696          (b) for a taxpayer that makes an election authorized by Subsection (3):
             46697          (i) the numerator of the fraction is the sum of:
             46698          (A) the property factor as calculated under Section 59-7-312 ;
             46699          (B) the payroll factor as calculated under Section 59-7-315 ; and
             46700          (C) the product of:
             46701          (I) the sales factor as calculated under Section 59-7-317 ; and
             46702          (II) two; and
             46703          (ii) the denominator of the fraction is four.
             46704          (3) (a) For purposes of Subsection (2) and subject to Subsection (3)(b), for taxable
             46705      years beginning on or after January 1, 2006, a taxpayer may elect to calculate the fraction for

             46706      apportioning business income under this section in accordance with Subsection (2)(b).
             46707          (b) If a taxpayer makes the election described in Subsection (3)(a), the taxpayer may
             46708      not revoke the election for a period of five taxable years.
             46709          (c) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             46710      Administrative Rulemaking Act, the commission may make rules providing procedures for a
             46711      taxpayer to make the election described in Subsection (3)(a).
             46712          Section 993. Section 59-7-610 is amended to read:
             46713           59-7-610. Recycling market development zones tax credit.
             46714          (1) For taxable years beginning on or after January 1, 1996, a business operating in a
             46715      recycling market development zone as defined in Section [ 63-38f-1102 ] 63M-1-1102 may claim
             46716      a tax credit as provided in this section.
             46717          (a) (i) There shall be allowed a nonrefundable tax credit of 5% of the purchase price
             46718      paid for machinery and equipment used directly in:
             46719          (A) commercial composting; or
             46720          (B) manufacturing facilities or plant units that:
             46721          (I) manufacture, process, compound, or produce recycled items of tangible personal
             46722      property for sale; or
             46723          (II) reduce or reuse postconsumer waste material.
             46724          (ii) The Governor's Office of Economic Development shall certify that the machinery
             46725      and equipment described in Subsection (1)(a)(i) are integral to the composting or recycling
             46726      process:
             46727          (A) on a form provided by the commission; and
             46728          (B) before a taxpayer is allowed a tax credit under this section.
             46729          (iii) The Governor's Office of Economic Development shall provide a taxpayer seeking
             46730      to claim a tax credit under this section with a copy of the form described in Subsection
             46731      (1)(a)(ii).
             46732          (iv) The taxpayer described in Subsection (1)(a)(iii) shall retain a copy of the form
             46733      received under Subsection (1)(a)(iii).

             46734          (b) There shall be allowed a nonrefundable tax credit equal to 20% of net expenditures
             46735      up to $10,000 to third parties for rent, wages, supplies, tools, test inventory, and utilities made
             46736      by the taxpayer for establishing and operating recycling or composting technology in Utah, with
             46737      an annual maximum tax credit of $2,000.
             46738          (2) The total nonrefundable tax credit allowed under this section may not exceed 40%
             46739      of the Utah income tax liability of the taxpayer prior to any tax credits in the taxable year of
             46740      purchase prior to claiming the tax credit authorized by this section.
             46741          (3) (a) Any tax credit not used for the taxable year in which the purchase price on
             46742      composting or recycling machinery and equipment was paid may be carried over for credit
             46743      against the business' income taxes in the three succeeding taxable years until the total tax credit
             46744      amount is used.
             46745          (b) Tax credits not claimed by a business on the business' state income tax return within
             46746      three years are forfeited.
             46747          (4) The commission shall make rules governing what information shall be filed with the
             46748      commission to verify the entitlement to and amount of a tax credit.
             46749          (5) (a) Notwithstanding Subsection (1)(a), for taxable years beginning on or after
             46750      January 1, 2001, a taxpayer may not claim or carry forward a tax credit described in Subsection
             46751      (1)(a) in a taxable year during which the taxpayer claims or carries forward a tax credit under
             46752      Section [ 63-38f-413 ] 63M-1-413 .
             46753          (b) For a taxable year other than a taxable year during which the taxpayer may not claim
             46754      or carry forward a tax credit in accordance with Subsection (5)(a), a taxpayer may claim or
             46755      carry forward a tax credit described in Subsection (1)(a):
             46756          (i) if the taxpayer may claim or carry forward the tax credit in accordance with
             46757      Subsections (1) and (2); and
             46758          (ii) subject to Subsections (3) and (4).
             46759          (6) Notwithstanding Subsection (1)(b), for taxable years beginning on or after January
             46760      1, 2001, a taxpayer may not claim a tax credit described in Subsection (1)(b) in a taxable year
             46761      during which the taxpayer claims or carries forward a tax credit under Section [ 63-38f-413 ]

             46762      63M-1-413 .
             46763          (7) A taxpayer may not claim or carry forward a tax credit available under this section
             46764      for a taxable year during which the taxpayer has claimed the targeted business income tax credit
             46765      available under Section [ 63-38f-503 ] 63M-1-504 .
             46766          Section 994. Section 59-7-612 is amended to read:
             46767           59-7-612. Tax credits for research activities conducted in the state -- Carry
             46768      forward -- Commission to report modification or repeal of certain federal provisions --
             46769      Utah Tax Review Commission study.
             46770          (1) (a) A taxpayer meeting the requirements of this section may claim the following
             46771      nonrefundable tax credits:
             46772          (i) a research tax credit of 7% of the taxpayer's qualified research expenses for the
             46773      current taxable year that exceed the base amount provided for under Subsection (4);
             46774          (ii) a tax credit for payments to qualified organizations for basic research as provided in
             46775      Section 41(e), Internal Revenue Code, of 7% for the current taxable year that exceed the base
             46776      amount provided for under Subsection (4); and
             46777          (iii) a tax credit equal to 5% of the taxpayer's qualified research expenses for the current
             46778      taxable year.
             46779          (b) (i) Except as provided in Subsection (1)(b)(ii), a taxpayer may:
             46780          (A) claim the tax credit or a portion of the tax credit for the taxable year immediately
             46781      following the taxable year for which the taxpayer qualifies for the tax credit;
             46782          (B) carry forward the tax credit or a portion of the tax credit as provided in Subsection
             46783      (5); or
             46784          (C) claim a portion of the tax credit and carry forward a portion of the tax credit as
             46785      provided in Subsections (1)(b)(i)(A) and (B).
             46786          (ii) A taxpayer may not carry forward the tax credit allowed by Subsection (1)(a)(iii).
             46787          (c) The tax credits provided for in this section do not include the alternative incremental
             46788      credit provided for in Section 41(c)(4), Internal Revenue Code.
             46789          (2) For purposes of claiming a tax credit under this section, a unitary group as defined

             46790      in Section 59-7-101 is considered to be one taxpayer.
             46791          (3) Except as specifically provided for in this section:
             46792          (a) the tax credits authorized under Subsection (1) shall be calculated as provided in
             46793      Section 41, Internal Revenue Code; and
             46794          (b) the definitions provided in Section 41, Internal Revenue Code, apply in calculating
             46795      the tax credits authorized under Subsection (1).
             46796          (4) For purposes of this section:
             46797          (a) the base amount shall be calculated as provided in Sections 41(c) and 41(h), Internal
             46798      Revenue Code, except that:
             46799          (i) the base amount does not include the calculation of the alternative incremental credit
             46800      provided for in Section 41(c)(4), Internal Revenue Code;
             46801          (ii) a taxpayer's gross receipts include only those gross receipts attributable to sources
             46802      within this state as provided in Part 3, Allocation and Apportionment of Income -- Utah
             46803      UDITPA Provisions; and
             46804          (iii) notwithstanding Section 41(c), Internal Revenue Code, for purposes of calculating
             46805      the base amount, a taxpayer:
             46806          (A) may elect to be treated as a start-up company as provided in Section 41(c)(3)(B)
             46807      regardless of whether the taxpayer meets the requirements of Section 41(c)(3)(B)(i)(I) or (II);
             46808      and
             46809          (B) may not revoke an election to be treated as a start-up company under Subsection
             46810      (4)(a)(iii)(A);
             46811          (b) "basic research" is as defined in Section 41(e)(7), Internal Revenue Code, except
             46812      that the term includes only basic research conducted in this state;
             46813          (c) "qualified research" is as defined in Section 41(d), Internal Revenue Code, except
             46814      that the term includes only qualified research conducted in this state;
             46815          (d) "qualified research expenses" is as defined and calculated in Section 41(b), Internal
             46816      Revenue Code, except that the term includes only:
             46817          (i) in-house research expenses incurred in this state; and

             46818          (ii) contract research expenses incurred in this state; and
             46819          (e) a tax credit provided for in this section is not terminated if a credit terminates under
             46820      Section 41, Internal Revenue Code.
             46821          (5) If the amount of a tax credit claimed by a taxpayer under Subsection (1)(a)(i) or (ii)
             46822      exceeds the taxpayer's tax liability under this chapter for a taxable year, the amount of the tax
             46823      credit exceeding the tax liability:
             46824          (a) may be carried forward for a period that does not exceed the next 14 taxable years;
             46825      and
             46826          (b) may not be carried back to a taxable year preceding the current taxable year.
             46827          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             46828      Administrative Rulemaking Act, the commission may make rules for purposes of this section
             46829      prescribing a certification process for qualified organizations to ensure that amounts paid to the
             46830      qualified organizations are for basic research conducted in this state.
             46831          (7) If a provision of Section 41, Internal Revenue Code, is modified or repealed, the
             46832      commission shall report the modification or repeal to the Utah Tax Review Commission within
             46833      60 days after the day on which the modification or repeal becomes effective.
             46834          (8) (a) The Utah Tax Review Commission shall review the tax credits provided for in
             46835      this section on or before October 1 of the year after the year in which the commission reports
             46836      under Subsection (7) a modification or repeal of a provision of Section 41, Internal Revenue
             46837      Code.
             46838          (b) Notwithstanding Subsection (8)(a), the Utah Tax Review Commission is not
             46839      required to review the tax credits provided for in this section if the only modification to a
             46840      provision of Section 41, Internal Revenue Code, is the extension of the termination date
             46841      provided for in Section 41(h), Internal Revenue Code.
             46842          (c) The Utah Tax Review Commission shall address in a review under this section:
             46843          (i) the cost of the tax credits provided for in this section;
             46844          (ii) the purpose and effectiveness of the tax credits provided for in this section;
             46845          (iii) whether the tax credits provided for in this section benefit the state; and

             46846          (iv) whether the tax credits provided for in this section should be:
             46847          (A) continued;
             46848          (B) modified; or
             46849          (C) repealed.
             46850          (d) If the Utah Tax Review Commission reviews the tax credits provided for in this
             46851      section, the Utah Tax Review Commission shall report its findings to the Revenue and Taxation
             46852      Interim Committee on or before the November interim meeting of the year in which the Utah
             46853      Tax Review Commission reviews the tax credits.
             46854          Section 995. Section 59-7-613 is amended to read:
             46855           59-7-613. Credits for machinery, equipment, or both primarily used for
             46856      conducting qualified research or basic research -- Carry forward -- Commission to report
             46857      modification or repeal of federal credits -- Tax Review Commission study.
             46858          (1) As used in this section:
             46859          (a) "Basic research" is as defined in Section 41(e)(7), Internal Revenue Code, except
             46860      that the term includes only basic research conducted in this state.
             46861          (b) "Equipment" includes:
             46862          (i) computers;
             46863          (ii) computer equipment; and
             46864          (iii) computer software.
             46865          (c) "Purchase price":
             46866          (i) includes the cost of installing an item of machinery or equipment; and
             46867          (ii) does not include sales or use taxes imposed on an item of machinery or equipment.
             46868          (d) "Qualified organization" is as defined in Section 41(e)(6), Internal Revenue Code.
             46869          (e) "Qualified research" is as defined in Section 41(d), Internal Revenue Code, except
             46870      that the term includes only qualified research conducted in this state.
             46871          (2) (a) Except as provided in Subsection (2)(c), for taxable years beginning on or after
             46872      January 1, 1999, but beginning before December 31, 2010, a taxpayer shall qualify for the
             46873      following nonrefundable credits for the taxable year in which the machinery, equipment, or both,

             46874      meets the requirements of either Subsection (2)(a)(i) or (2)(a)(ii):
             46875          (i) a credit of 6% of the purchase price of either machinery, equipment, or both:
             46876          (A) purchased by the taxpayer during the taxable year;
             46877          (B) that is not exempt from sales or use taxes; and
             46878          (C) that is primarily used to conduct qualified research in this state; and
             46879          (ii) a credit of 6% of the purchase price of either machinery, equipment, or both:
             46880          (A) purchased by the taxpayer during the taxable year;
             46881          (B) that is not exempt from sales or use taxes;
             46882          (C) that is donated to a qualified organization; and
             46883          (D) that is primarily used to conduct basic research in this state.
             46884          (b) If a taxpayer qualifying for a credit under Subsection (2)(a) seeks to claim the
             46885      credit, the taxpayer shall:
             46886          (i) claim the credit or a portion of the credit for the taxable year immediately following
             46887      the taxable year for which the taxpayer qualifies for the credit;
             46888          (ii) carry the credit or a portion of the credit forward as provided in Subsection (5); or
             46889          (iii) claim a portion of the credit and carry forward a portion of the credit as provided in
             46890      Subsections (2)(b)(i) and (ii).
             46891          (c) Notwithstanding Subsection (2)(a), if a taxpayer qualifies for a credit under
             46892      Subsection (2)(a) for a purchase of machinery, equipment, or both, the taxpayer may not claim
             46893      the credit or carry the credit forward if the machinery, equipment, or both, is primarily used to
             46894      conduct qualified research in the state for a time period that is less than 12 consecutive months.
             46895          (3) For purposes of claiming a credit under this section, a unitary group as defined in
             46896      Section 59-7-101 is considered to be one taxpayer.
             46897          (4) Notwithstanding the provisions of Section 41(h), Internal Revenue Code, the credits
             46898      provided for in this section shall not terminate if the credits terminate under Section 41, Internal
             46899      Revenue Code.
             46900          (5) Notwithstanding the provisions of Sections 39 and 41(g), Internal Revenue Code,
             46901      governing the carry forward and carry back of federal tax credits, if the amount of a tax credit

             46902      claimed by a taxpayer under this section exceeds the taxpayer's tax liability under this chapter
             46903      for a taxable year, the amount of the credit exceeding the liability:
             46904          (a) may be carried forward for a period that does not exceed the next 14 taxable years;
             46905      and
             46906          (b) may not be carried back to a taxable year preceding the current taxable year.
             46907          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             46908      Administrative Rulemaking Act, the commission may make rules for purposes of this section
             46909      prescribing a certification process for qualified organizations to ensure that either machinery,
             46910      equipment, or both provided to the qualified organization is to be primarily used to conduct
             46911      basic research in this state.
             46912          (7) If a federal tax credit under Section 41, Internal Revenue Code, is modified or
             46913      repealed, the commission shall report the modification or repeal to the Tax Review Commission
             46914      within 60 days after the day on which the modification or repeal becomes effective.
             46915          (8) (a) Except as provided in Subsection (8)(b), the Tax Review Commission shall
             46916      review the credits provided for in this section on or before the earlier of:
             46917          (i) October 1 of the year after the year in which the commission reports under
             46918      Subsection (7) a modification or repeal of a federal tax credit under Section 41, Internal
             46919      Revenue Code; or
             46920          (ii) October 1, 2004.
             46921          (b) Notwithstanding Subsection (8)(a), the Tax Review Commission is not required to
             46922      review the credits provided for in this section if the only modification to a federal tax credit
             46923      under Section 41, Internal Revenue Code, is the extension of the termination date provided for
             46924      in Section 41(h), Internal Revenue Code.
             46925          (c) The Tax Review Commission shall address in a review under this section the:
             46926          (i) cost of the credit;
             46927          (ii) purpose and effectiveness of the credit;
             46928          (iii) whether the credit benefits the state; and
             46929          (iv) whether the credit should be:

             46930          (A) continued;
             46931          (B) modified; or
             46932          (C) repealed.
             46933          (d) If the Tax Review Commission reviews the credits provided for in this section, the
             46934      Tax Review Commission shall report its findings to the Revenue and Taxation Interim
             46935      Committee on or before the November interim meeting of the year in which the Tax Review
             46936      Commission reviews the credits.
             46937          Section 996. Section 59-7-614.1 is amended to read:
             46938           59-7-614.1. Refundable tax credit for hand tools used in farming operations --
             46939      Procedures for refund -- Transfers from General Fund to Education Fund -- Rulemaking
             46940      authority.
             46941          (1) For taxable years beginning on or after January 1, 2004, a taxpayer may claim a
             46942      refundable tax credit:
             46943          (a) as provided in this section;
             46944          (b) against taxes otherwise due under this chapter; and
             46945          (c) in an amount equal to the amount of tax the taxpayer pays:
             46946          (i) on a purchase of a hand tool:
             46947          (A) if the purchase is made on or after July 1, 2004;
             46948          (B) if the hand tool is used or consumed primarily and directly in a farming operation in
             46949      the state; and
             46950          (C) if the unit purchase price of the hand tool is more than $250; and
             46951          (ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
             46952      (1)(c)(i).
             46953          (2) A taxpayer:
             46954          (a) shall retain the following to establish the amount of tax the resident or nonresident
             46955      individual paid under Chapter 12, Sales and Use Tax Act, on the purchase described in
             46956      Subsection (1)(c)(i):
             46957          (i) a receipt;

             46958          (ii) an invoice; or
             46959          (iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
             46960          (b) may not carry forward or carry back a tax credit under this section.
             46961          (3) (a) In accordance with any rules prescribed by the commission under Subsection
             46962      (3)(b), the commission shall:
             46963          (i) make a refund to a taxpayer that claims a tax credit under this section if the amount
             46964      of the tax credit exceeds the taxpayer's tax liability under this chapter; and
             46965          (ii) transfer at least annually from the General Fund into the Education Fund an amount
             46966      equal to the amount of tax credit claimed under this section.
             46967          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             46968      Administrative Rulemaking Act, the commission may make rules providing procedures for
             46969      making:
             46970          (i) a refund to a taxpayer as required by Subsection (3)(a)(i); or
             46971          (ii) transfers from the General Fund into the Education Fund as required by Subsection
             46972      (3)(a)(ii).
             46973          Section 997. Section 59-7-703 is amended to read:
             46974           59-7-703. Payment or withholding of tax on behalf of nonresident shareholders --
             46975      Rate.
             46976          (1) As used in this section, "return" means:
             46977          (a) if a nonresident shareholder is required to file a return under this chapter, a return
             46978      filed under this chapter; or
             46979          (b) if a nonresident shareholder is required to file a return under Chapter 10, Individual
             46980      Income Tax Act, a return filed under Chapter 10, Individual Income Tax Act.
             46981          (2) (a) Except as provided in Subsection (4), an S corporation shall pay or withhold a
             46982      tax on behalf of any nonresident shareholder.
             46983          (b) The amount paid or withheld by an S corporation under Subsection (2)(a) shall be
             46984      determined by:
             46985          (i) calculating the items of income or loss from federal form 1120S, Schedule K;

             46986          (ii) applying the apportionment formula to determine the amount apportioned to Utah;
             46987          (iii) reducing the amount apportioned to Utah by the percentage of ownership
             46988      attributable to resident shareholders; and
             46989          (iv) applying the rate to the remaining balance.
             46990          (3) (a) For a nonresident shareholder who is required to file a return under this chapter:
             46991          (i) the nonresident shareholder may claim a credit on the nonresident shareholder's
             46992      return for the amount of tax paid or withheld by the S corporation on behalf of the nonresident
             46993      shareholder;
             46994          (ii) if the nonresident shareholder has no other Utah source income, the nonresident
             46995      shareholder may elect:
             46996          (A) not to claim the credit provided under Subsection (3)(a)(i); and
             46997          (B) not to file a return for the taxable year; and
             46998          (iii) if the nonresident shareholder may claim credits other than the credit described in
             46999      Subsection (3)(a)(i), the nonresident shareholder shall file a return to claim those credits.
             47000          (b) If a nonresident shareholder is required to file a return under Chapter 10, Individual
             47001      Income Tax Act, the nonresident shareholder is subject to Section 59-10-1103 .
             47002          (4) Notwithstanding Subsection (2), the obligation to pay or withhold a tax under
             47003      Subsection (2) does not apply to an organization that is exempt under Subsection
             47004      59-7-102 (1)(a) from the taxes imposed by this chapter.
             47005          (5) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             47006      Administrative Rulemaking Act, the commission shall by rule determine the rate at which an S
             47007      corporation shall withhold for nonresident shareholders.
             47008          (b) The rate described in Subsection (5)(a) shall be consistent with the composite tax
             47009      rate paid by partnerships.
             47010          (6) (a) If an S corporation fails to pay or withhold a tax as provided in this section, and
             47011      thereafter the income subject to payment or withholding is reported and the resulting tax is paid
             47012      by a nonresident shareholder, any tax required to be paid or withheld may not be collected from
             47013      the S corporation.

             47014          (b) A nonresident shareholder's payment under Subsection (6)(a) does not relieve the S
             47015      corporation from liability for penalties or interest associated with failure to pay or withhold a
             47016      tax as provided in this section.
             47017          (7) Penalties, refunds, assessments, and required records for S corporations shall be
             47018      governed by:
             47019          (a) this chapter if a nonresident shareholder is subject to this chapter; or
             47020          (b) Chapter 10, Individual Income Tax Act, if a nonresident shareholder is subject to
             47021      Chapter 10, Individual Income Tax Act.
             47022          (8) (a) An S corporation shall furnish each nonresident shareholder a statement
             47023      showing:
             47024          (i) the amount of the nonresident shareholder's share of the corporate earnings from
             47025      Utah sources; and
             47026          (ii) the amount of the withholding from the nonresident shareholder's share of the
             47027      corporate earnings from Utah sources.
             47028          (b) An S corporation shall pay the commission the amount withheld under this section:
             47029          (i) by the due date of the corporation's return, not including extensions; and
             47030          (ii) on forms furnished by the commission.
             47031          Section 998. Section 59-8-106 is amended to read:
             47032           59-8-106. Rulemaking authority.
             47033          The commission is charged with the administration and enforcement of this chapter and
             47034      may promulgate such rules under [Title 63, Chapter 46a] Title 63G, Chapter 3, the Utah
             47035      Administrative Rulemaking Act as may be required to effectuate the purposes of this chapter.
             47036          Section 999. Section 59-10-103 is amended to read:
             47037           59-10-103. Definitions.
             47038          (1) As used in this chapter:
             47039          (a) "Adjusted gross income":
             47040          (i) for a resident or nonresident individual, is as defined in Section 62, Internal Revenue
             47041      Code; or

             47042          (ii) for a resident or nonresident estate or trust, is as calculated in Section 67(e),
             47043      Internal Revenue Code.
             47044          (b) "Adoption expenses" means:
             47045          (i) any actual medical and hospital expenses of the mother of the adopted child which
             47046      are incident to the child's birth;
             47047          (ii) any welfare agency fees or costs;
             47048          (iii) any child placement service fees or costs;
             47049          (iv) any legal fees or costs; or
             47050          (v) any other fees or costs relating to an adoption.
             47051          (c) "Adult with a disability" means an individual who:
             47052          (i) is 18 years of age or older;
             47053          (ii) is eligible for services under Title 62A, Chapter 5, Services for People with
             47054      Disabilities; and
             47055          (iii) is not enrolled in:
             47056          (A) an education program for students with disabilities that is authorized under Section
             47057      53A-15-301 ; or
             47058          (B) a school established under Title 53A, Chapter 25, Schools for the Deaf and Blind.
             47059          (d) (i) For purposes of Subsection 59-10-114 (2)(l), "capital gain transaction" means a
             47060      transaction that results in a:
             47061          (A) short-term capital gain; or
             47062          (B) long-term capital gain.
             47063          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             47064      Administrative Rulemaking Act, the commission may by rule define the term "transaction."
             47065          (e) "Commercial domicile" means the principal place from which the trade or business
             47066      of a Utah small business corporation is directed or managed.
             47067          (f) "Corporation" includes:
             47068          (i) associations;
             47069          (ii) joint stock companies; and

             47070          (iii) insurance companies.
             47071          (g) "Dependent child with a disability" means an individual 21 years of age or younger
             47072      who:
             47073          (i) (A) is diagnosed by a school district representative under rules adopted by the State
             47074      Board of Education as having a disability classified as:
             47075          (I) autism;
             47076          (II) deafness;
             47077          (III) preschool developmental delay;
             47078          (IV) dual sensory impairment;
             47079          (V) hearing impairment;
             47080          (VI) intellectual disability;
             47081          (VII) multidisability;
             47082          (VIII) orthopedic impairment;
             47083          (IX) other health impairment;
             47084          (X) traumatic brain injury; or
             47085          (XI) visual impairment;
             47086          (B) is not receiving residential services from:
             47087          (I) the Division of Services for People with Disabilities created under Section
             47088      62A-5-102 ; or
             47089          (II) a school established under Title 53A, Chapter 25, Schools for the Deaf and Blind;
             47090      and
             47091          (C) is enrolled in:
             47092          (I) an education program for students with disabilities that is authorized under Section
             47093      53A-15-301 ; or
             47094          (II) a school established under Title 53A, Chapter 25, Schools for the Deaf and Blind;
             47095      or
             47096          (ii) is identified under guidelines of the Department of Health as qualified for:
             47097          (A) Early Intervention; or

             47098          (B) Infant Development Services.
             47099          (h) "Distributable net income" is as defined in Section 643, Internal Revenue Code.
             47100          (i) "Employee" is as defined in Section 59-10-401 .
             47101          (j) "Employer" is as defined in Section 59-10-401 .
             47102          (k) "Federal taxable income":
             47103          (i) for a resident or nonresident individual, means taxable income as defined by Section
             47104      63, Internal Revenue Code; or
             47105          (ii) for a resident or nonresident estate or trust, is as calculated in Section 641(a) and
             47106      (b), Internal Revenue Code.
             47107          (l) "Fiduciary" means:
             47108          (i) a guardian;
             47109          (ii) a trustee;
             47110          (iii) an executor;
             47111          (iv) an administrator;
             47112          (v) a receiver;
             47113          (vi) a conservator; or
             47114          (vii) any person acting in any fiduciary capacity for any individual.
             47115          (m) "Homesteaded land diminished from the Uintah and Ouray Reservation" means the
             47116      homesteaded land that was held to have been diminished from the Uintah and Ouray
             47117      Reservation in Hagen v. Utah, 510 U.S. 399 (1994).
             47118          (n) "Individual" means a natural person and includes aliens and minors.
             47119          (o) "Irrevocable trust" means a trust in which the settlor may not revoke or terminate all
             47120      or part of the trust without the consent of a person who has a substantial beneficial interest in
             47121      the trust and the interest would be adversely affected by the exercise of the settlor's power to
             47122      revoke or terminate all or part of the trust.
             47123          (p) For purposes of Subsection 59-10-114 (2)(l), "long-term capital gain" is as defined
             47124      in Section 1222, Internal Revenue Code.
             47125          (q) "Nonresident individual" means an individual who is not a resident of this state.

             47126          (r) "Nonresident trust" or "nonresident estate" means a trust or estate which is not a
             47127      resident estate or trust.
             47128          (s) (i) "Partnership" includes a syndicate, group, pool, joint venture, or other
             47129      unincorporated organization:
             47130          (A) through or by means of which any business, financial operation, or venture is
             47131      carried on; and
             47132          (B) which is not, within the meaning of this chapter:
             47133          (I) a trust;
             47134          (II) an estate; or
             47135          (III) a corporation.
             47136          (ii) "Partnership" does not include any organization not included under the definition of
             47137      "partnership" in Section 761, Internal Revenue Code.
             47138          (iii) "Partner" includes a member in a syndicate, group, pool, joint venture, or
             47139      organization described in Subsection (1)(s)(i).
             47140          (t) "Qualifying military servicemember" means a member of:
             47141          (i) The Utah Army National Guard;
             47142          (ii) The Utah Air National Guard; or
             47143          (iii) the following if the member is assigned to a unit that is located in the state:
             47144          (A) The Army Reserve;
             47145          (B) The Naval Reserve;
             47146          (C) The Air Force Reserve;
             47147          (D) The Marine Corps Reserve; or
             47148          (E) The Coast Guard Reserve.
             47149          (u) "Qualifying stock" means stock that is:
             47150          (i) (A) common; or
             47151          (B) preferred;
             47152          (ii) as defined by the commission by rule, originally issued to:
             47153          (A) a resident or nonresident individual; or

             47154          (B) a partnership if the resident or nonresident individual making a subtraction from
             47155      federal taxable income in accordance with Subsection 59-10-114 (2)(l):
             47156          (I) was a partner when the stock was issued; and
             47157          (II) remains a partner until the last day of the taxable year for which the resident or
             47158      nonresident individual makes the subtraction from federal taxable income in accordance with
             47159      Subsection 59-10-114 (2)(l); and
             47160          (iii) issued:
             47161          (A) by a Utah small business corporation;
             47162          (B) on or after January 1, 2003; and
             47163          (C) for:
             47164          (I) money; or
             47165          (II) other property, except for stock or securities.
             47166          (v) (i) "Resident individual" means:
             47167          (A) an individual who is domiciled in this state for any period of time during the taxable
             47168      year, but only for the duration of the period during which the individual is domiciled in this
             47169      state; or
             47170          (B) an individual who is not domiciled in this state but:
             47171          (I) maintains a permanent place of abode in this state; and
             47172          (II) spends in the aggregate 183 or more days of the taxable year in this state.
             47173          (ii) For purposes of Subsection (1)(v)(i)(B), a fraction of a calendar day shall be
             47174      counted as a whole day.
             47175          (w) "Resident estate" or "resident trust" is as defined in Section 75-7-103 .
             47176          (x) For purposes of Subsection 59-10-114 (2)(l), "short-term capital gain" is as defined
             47177      in Section 1222, Internal Revenue Code.
             47178          (y) "Taxable income" or "state taxable income":
             47179          (i) subject to Subsection 59-10-302 (2), for a resident individual other than a resident
             47180      individual described in Subsection (1)(y)(iii), means the resident individual's federal taxable
             47181      income after making the:

             47182          (A) additions and subtractions required by Section 59-10-114 ; and
             47183          (B) adjustments required by Section 59-10-115 ;
             47184          (ii) for a nonresident individual other than a nonresident individual described in
             47185      Subsection (1)(y)(iii), is as defined in Section 59-10-116 ;
             47186          (iii) for a resident or nonresident individual that collects and pays a tax described in Part
             47187      12, Single Rate Individual Income Tax Act, is as defined in Section 59-10-1202 ;
             47188          (iv) for a resident estate or trust, is as calculated under Section 59-10-201.1 ; and
             47189          (v) for a nonresident estate or trust, is as calculated under Section 59-10-204 .
             47190          (z) "Taxpayer" means any individual, estate, or trust or beneficiary of an estate or trust,
             47191      whose income is subject in whole or part to the tax imposed by this chapter.
             47192          (aa) "Uintah and Ouray Reservation" means the lands recognized as being included
             47193      within the Uintah and Ouray Reservation in:
             47194          (i) Hagen v. Utah, 510 U.S. 399 (1994); and
             47195          (ii) Ute Indian Tribe v. Utah, 114 F.3d 1513 (10th Cir. 1997).
             47196          (bb) (i) "Utah small business corporation" means a corporation that:
             47197          (A) is a small business corporation as defined in Section 1244(c)(3), Internal Revenue
             47198      Code;
             47199          (B) except as provided in Subsection (1)(bb)(ii), meets the requirements of Section
             47200      1244(c)(1)(C), Internal Revenue Code; and
             47201          (C) has its commercial domicile in this state.
             47202          (ii) Notwithstanding Subsection (1)(bb)(i)(B), the time period described in Section
             47203      1244(c)(1)(C) and Section 1244(c)(2), Internal Revenue Code, for determining the source of a
             47204      corporation's aggregate gross receipts shall end on the last day of the taxable year for which the
             47205      resident or nonresident individual makes a subtraction from federal taxable income in
             47206      accordance with Subsection 59-10-114 (2)(l).
             47207          (cc) "Ute tribal member" means a person who is enrolled as a member of the Ute Indian
             47208      Tribe of the Uintah and Ouray Reservation.
             47209          (dd) "Ute tribe" means the Ute Indian Tribe of the Uintah and Ouray Reservation.

             47210          (ee) "Wages" is as defined in Section 59-10-401 .
             47211          (2) (a) Any term used in this chapter has the same meaning as when used in comparable
             47212      context in the laws of the United States relating to federal income taxes unless a different
             47213      meaning is clearly required.
             47214          (b) Any reference to the Internal Revenue Code or to the laws of the United States shall
             47215      mean the Internal Revenue Code or other provisions of the laws of the United States relating to
             47216      federal income taxes that are in effect for the taxable year.
             47217          (c) Any reference to a specific section of the Internal Revenue Code or other provision
             47218      of the laws of the United States relating to federal income taxes shall include any corresponding
             47219      or comparable provisions of the Internal Revenue Code as hereafter amended, redesignated, or
             47220      reenacted.
             47221          Section 1000. Section 59-10-114 is amended to read:
             47222           59-10-114. Additions to and subtractions from federal taxable income of an
             47223      individual.
             47224          (1) There shall be added to federal taxable income of a resident or nonresident
             47225      individual:
             47226          (a) the amount of any income tax imposed by this or any predecessor Utah individual
             47227      income tax law and the amount of any income tax imposed by the laws of another state, the
             47228      District of Columbia, or a possession of the United States, to the extent deducted from adjusted
             47229      gross income in determining federal taxable income;
             47230          (b) a lump sum distribution that the taxpayer does not include in adjusted gross income
             47231      on the taxpayer's federal individual income tax return for the taxable year;
             47232          (c) for taxable years beginning on or after January 1, 2002, the amount of a child's
             47233      income calculated under Subsection (5) that:
             47234          (i) a parent elects to report on the parent's federal individual income tax return for the
             47235      taxable year; and
             47236          (ii) the parent does not include in adjusted gross income on the parent's federal
             47237      individual income tax return for the taxable year;

             47238          (d) 25% of the personal exemptions, as defined and calculated in the Internal Revenue
             47239      Code;
             47240          (e) a withdrawal from a medical care savings account and any penalty imposed in the
             47241      taxable year if:
             47242          (i) the resident or nonresident individual did not deduct or include the amounts on the
             47243      resident or nonresident individual's federal individual income tax return pursuant to Section 220,
             47244      Internal Revenue Code;
             47245          (ii) the withdrawal is subject to Subsections 31A-32a-105 (1) and (2); and
             47246          (iii) the withdrawal is deducted by the resident or nonresident individual under
             47247      Subsection (2)(h);
             47248          (f) the amount withdrawn under Title 53B, Chapter 8a, Higher Education Savings
             47249      Incentive Program, from the account of a resident or nonresident individual who is an account
             47250      owner as defined in Section 53B-8a-102 , for the taxable year for which the amount is
             47251      withdrawn, if that amount withdrawn from the account of the resident or nonresident individual
             47252      who is the account owner:
             47253          (i) is not expended for higher education costs as defined in Section 53B-8a-102 ; and
             47254          (ii) is:
             47255          (A) subtracted by the resident or nonresident individual:
             47256          (I) who is the account owner; and
             47257          (II) in accordance with Subsection (2)(i); or
             47258          (B) used as the basis for the resident or nonresident individual who is the account
             47259      owner to claim a tax credit under Section 59-10-1206.1 ;
             47260          (g) except as provided in Subsection (6), for taxable years beginning on or after January
             47261      1, 2003, for bonds, notes, and other evidences of indebtedness acquired on or after January 1,
             47262      2003, the interest from bonds, notes, and other evidences of indebtedness issued by one or more
             47263      of the following entities:
             47264          (i) a state other than this state;
             47265          (ii) the District of Columbia;

             47266          (iii) a political subdivision of a state other than this state; or
             47267          (iv) an agency or instrumentality of an entity described in Subsections (1)(g)(i) through
             47268      (iii);
             47269          (h) subject to Subsection (2)(n), any distribution received by a resident beneficiary of a
             47270      resident trust of income that was taxed at the trust level for federal tax purposes, but was
             47271      subtracted from state taxable income of the trust pursuant to Subsection 59-10-202 (2)(c);
             47272          (i) any distribution received by a resident beneficiary of a nonresident trust of
             47273      undistributed distributable net income realized by the trust on or after January 1, 2004, if that
             47274      undistributed distributable net income was taxed at the trust level for federal tax purposes, but
             47275      was not taxed at the trust level by any state, with undistributed distributable net income
             47276      considered to be distributed from the most recently accumulated undistributed distributable net
             47277      income; and
             47278          (j) any adoption expense:
             47279          (i) for which a resident or nonresident individual receives reimbursement from another
             47280      person; and
             47281          (ii) to the extent to which the resident or nonresident individual deducts that adoption
             47282      expense:
             47283          (A) under Subsection (2)(c); or
             47284          (B) from federal taxable income on a federal individual income tax return.
             47285          (2) There shall be subtracted from federal taxable income of a resident or nonresident
             47286      individual:
             47287          (a) the interest or a dividend on obligations or securities of the United States and its
             47288      possessions or of any authority, commission, or instrumentality of the United States, to the
             47289      extent that interest or dividend is included in gross income for federal income tax purposes for
             47290      the taxable year but exempt from state income taxes under the laws of the United States, but the
             47291      amount subtracted under this Subsection (2)(a) shall be reduced by any interest on indebtedness
             47292      incurred or continued to purchase or carry the obligations or securities described in this
             47293      Subsection (2)(a), and by any expenses incurred in the production of interest or dividend income

             47294      described in this Subsection (2)(a) to the extent that such expenses, including amortizable bond
             47295      premiums, are deductible in determining federal taxable income;
             47296          (b) 1/2 of the net amount of any income tax paid or payable to the United States after all
             47297      allowable credits, as reported on the United States individual income tax return of the taxpayer
             47298      for the same taxable year;
             47299          (c) the amount of adoption expenses for one of the following taxable years as elected by
             47300      the resident or nonresident individual:
             47301          (i) regardless of whether a court issues an order granting the adoption, the taxable year
             47302      in which the adoption expenses are:
             47303          (A) paid; or
             47304          (B) incurred;
             47305          (ii) the taxable year in which a court issues an order granting the adoption; or
             47306          (iii) any year in which the resident or nonresident individual may claim the federal
             47307      adoption expenses credit under Section 23, Internal Revenue Code;
             47308          (d) amounts received by taxpayers under age 65 as retirement income which, for
             47309      purposes of this section, means pensions and annuities, paid from an annuity contract purchased
             47310      by an employer under a plan which meets the requirements of Section 404(a)(2), Internal
             47311      Revenue Code, or purchased by an employee under a plan which meets the requirements of
             47312      Section 408, Internal Revenue Code, or paid by the United States, a state, or political
             47313      subdivision thereof, or the District of Columbia, to the employee involved or the surviving
             47314      spouse;
             47315          (e) for each taxpayer age 65 or over before the close of the taxable year, a $7,500
             47316      personal retirement exemption;
             47317          (f) 75% of the amount of the personal exemption, as defined and calculated in the
             47318      Internal Revenue Code, for each dependent child with a disability and adult with a disability
             47319      who is claimed as a dependent on a taxpayer's return;
             47320          (g) subject to the limitations of Subsection (3)(e), amounts a taxpayer pays during the
             47321      taxable year for health care insurance, as defined in Title 31A, Chapter 1, General Provisions:

             47322          (i) for:
             47323          (A) the taxpayer;
             47324          (B) the taxpayer's spouse; and
             47325          (C) the taxpayer's dependents; and
             47326          (ii) to the extent the taxpayer does not deduct the amounts under Section 125, 162, or
             47327      213, Internal Revenue Code, in determining federal taxable income for the taxable year;
             47328          (h) (i) except as provided in this Subsection (2)(h), the amount of a contribution made
             47329      during the taxable year on behalf of the taxpayer to a medical care savings account and interest
             47330      earned on a contribution to a medical care savings account established pursuant to Title 31A,
             47331      Chapter 32a, Medical Care Savings Account Act, to the extent the contribution is accepted by
             47332      the account administrator as provided in the Medical Care Savings Account Act, and if the
             47333      taxpayer did not deduct or include amounts on the taxpayer's federal individual income tax
             47334      return pursuant to Section 220, Internal Revenue Code; and
             47335          (ii) a contribution deductible under this Subsection (2)(h) may not exceed either of the
             47336      following:
             47337          (A) the maximum contribution allowed under the Medical Care Savings Account Act
             47338      for the tax year multiplied by two for taxpayers who file a joint return, if neither spouse is
             47339      covered by health care insurance as defined in Section 31A-1-301 or self-funded plan that
             47340      covers the other spouse, and each spouse has a medical care savings account; or
             47341          (B) the maximum contribution allowed under the Medical Care Savings Account Act
             47342      for the tax year for taxpayers:
             47343          (I) who do not file a joint return; or
             47344          (II) who file a joint return, but do not qualify under Subsection (2)(h)(ii)(A);
             47345          (i) subject to Subsection (1)(f), the amount of a qualified investment as defined in
             47346      Section 53B-8a-102 that:
             47347          (i) a resident or nonresident individual who is an account owner as defined in Section
             47348      53B-8a-102 makes during the taxable year;
             47349          (ii) the resident or nonresident individual described in Subsection (2)(i)(i) does not

             47350      deduct on a federal individual income tax return; and
             47351          (iii) does not exceed the maximum amount of the qualified investment that may be
             47352      subtracted from federal taxable income for a taxable year in accordance with Subsections
             47353      53B-8a-106 (1)(e) and (f);
             47354          (j) for taxable years beginning on or after January 1, 2000, any amounts paid for
             47355      premiums for long-term care insurance as defined in Section 31A-1-301 to the extent the
             47356      amounts paid for long-term care insurance were not deducted under Section 213, Internal
             47357      Revenue Code, in determining federal taxable income;
             47358          (k) for taxable years beginning on or after January 1, 2000, if the conditions of
             47359      Subsection (4)(a) are met, the amount of income derived by a Ute tribal member:
             47360          (i) during a time period that the Ute tribal member resides on homesteaded land
             47361      diminished from the Uintah and Ouray Reservation; and
             47362          (ii) from a source within the Uintah and Ouray Reservation;
             47363          (l) (i) for taxable years beginning on or after January 1, 2003, the total amount of a
             47364      resident or nonresident individual's short-term capital gain or long-term capital gain on a capital
             47365      gain transaction:
             47366          (A) that occurs on or after January 1, 2003;
             47367          (B) if 70% or more of the gross proceeds of the capital gain transaction are expended:
             47368          (I) to purchase qualifying stock in a Utah small business corporation; and
             47369          (II) within a 12-month period after the day on which the capital gain transaction occurs;
             47370      and
             47371          (C) if, prior to the purchase of the qualifying stock described in Subsection
             47372      (2)(l)(i)(B)(I), the resident or nonresident individual did not have an ownership interest in the
             47373      Utah small business corporation that issued the qualifying stock; and
             47374          (ii) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             47375      Administrative Rulemaking Act, the commission may make rules:
             47376          (A) defining the term "gross proceeds"; and
             47377          (B) for purposes of Subsection (2)(l)(i)(C), prescribing the circumstances under which a

             47378      resident or nonresident individual has an ownership interest in a Utah small business
             47379      corporation;
             47380          (m) for the taxable year beginning on or after January 1, 2005, but beginning on or
             47381      before December 31, 2005, the first $2,200 of income a qualifying military servicemember
             47382      receives:
             47383          (i) for service:
             47384          (A) as a qualifying military servicemember; or
             47385          (B) under an order into active service in accordance with Section 39-1-5 ; and
             47386          (ii) to the extent that income is included in adjusted gross income on that resident or
             47387      nonresident individual's federal individual income tax return for that taxable year;
             47388          (n) an amount received by a resident or nonresident individual or distribution received
             47389      by a resident or nonresident beneficiary of a resident trust:
             47390          (i) if that amount or distribution constitutes a refund of taxes imposed by:
             47391          (A) a state; or
             47392          (B) the District of Columbia; and
             47393          (ii) to the extent that amount or distribution is included in adjusted gross income for
             47394      that taxable year on the federal individual income tax return of the resident or nonresident
             47395      individual or resident or nonresident beneficiary of a resident trust;
             47396          (o) the amount of a railroad retirement benefit:
             47397          (i) paid:
             47398          (A) in accordance with The Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231 et
             47399      seq.;
             47400          (B) to a resident or nonresident individual; and
             47401          (C) for the taxable year; and
             47402          (ii) to the extent that railroad retirement benefit is included in adjusted gross income on
             47403      that resident or nonresident individual's federal individual income tax return for that taxable
             47404      year; and
             47405          (p) an amount:

             47406          (i) received by an enrolled member of an American Indian tribe; and
             47407          (ii) to the extent that the state is not authorized or permitted to impose a tax under this
             47408      part on that amount in accordance with:
             47409          (A) federal law;
             47410          (B) a treaty; or
             47411          (C) a final decision issued by a court of competent jurisdiction.
             47412          (3) (a) For purposes of Subsection (2)(d), the amount of retirement income subtracted
             47413      for taxpayers under 65 shall be the lesser of the amount included in federal taxable income, or
             47414      $4,800, except that:
             47415          (i) for married taxpayers filing joint returns, for each $1 of adjusted gross income
             47416      earned over $32,000, the amount of the retirement income exemption that may be subtracted
             47417      shall be reduced by 50 cents;
             47418          (ii) for married taxpayers filing separate returns, for each $1 of adjusted gross income
             47419      earned over $16,000, the amount of the retirement income exemption that may be subtracted
             47420      shall be reduced by 50 cents; and
             47421          (iii) for individual taxpayers, for each $1 of adjusted gross income earned over $25,000,
             47422      the amount of the retirement income exemption that may be subtracted shall be reduced by 50
             47423      cents.
             47424          (b) For purposes of Subsection (2)(e), the amount of the personal retirement exemption
             47425      shall be further reduced according to the following schedule:
             47426          (i) for married taxpayers filing joint returns, for each $1 of adjusted gross income
             47427      earned over $32,000, the amount of the personal retirement exemption shall be reduced by 50
             47428      cents;
             47429          (ii) for married taxpayers filing separate returns, for each $1 of adjusted gross income
             47430      earned over $16,000, the amount of the personal retirement exemption shall be reduced by 50
             47431      cents; and
             47432          (iii) for individual taxpayers, for each $1 of adjusted gross income earned over $25,000,
             47433      the amount of the personal retirement exemption shall be reduced by 50 cents.

             47434          (c) For purposes of Subsections (3)(a) and (b), adjusted gross income shall be
             47435      calculated by adding to adjusted gross income any interest income not otherwise included in
             47436      adjusted gross income.
             47437          (d) For purposes of determining ownership of items of retirement income common law
             47438      doctrine will be applied in all cases even though some items may have originated from service or
             47439      investments in a community property state. Amounts received by the spouse of a living retiree
             47440      because of the retiree's having been employed in a community property state are not deductible
             47441      as retirement income of such spouse.
             47442          (e) For purposes of Subsection (2)(g), a subtraction for an amount paid for health care
             47443      insurance as defined in Title 31A, Chapter 1, General Provisions, is not allowed:
             47444          (i) for an amount that is reimbursed or funded in whole or in part by the federal
             47445      government, the state, or an agency or instrumentality of the federal government or the state;
             47446      and
             47447          (ii) for a taxpayer who is eligible to participate in a health plan maintained and funded in
             47448      whole or in part by the taxpayer's employer or the taxpayer's spouse's employer.
             47449          (4) (a) A subtraction for an amount described in Subsection (2)(k) is allowed only if:
             47450          (i) the taxpayer is a Ute tribal member; and
             47451          (ii) the governor and the Ute tribe execute and maintain an agreement meeting the
             47452      requirements of this Subsection (4).
             47453          (b) The agreement described in Subsection (4)(a):
             47454          (i) may not:
             47455          (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
             47456          (B) provide a subtraction under this section greater than or different from the
             47457      subtraction described in Subsection (2)(k); or
             47458          (C) affect the power of the state to establish rates of taxation; and
             47459          (ii) shall:
             47460          (A) provide for the implementation of the subtraction described in Subsection (2)(k);
             47461          (B) be in writing;

             47462          (C) be signed by:
             47463          (I) the governor; and
             47464          (II) the chair of the Business Committee of the Ute tribe;
             47465          (D) be conditioned on obtaining any approval required by federal law; and
             47466          (E) state the effective date of the agreement.
             47467          (c) (i) The governor shall report to the commission by no later than February 1 of each
             47468      year regarding whether or not an agreement meeting the requirements of this Subsection (4) is
             47469      in effect.
             47470          (ii) If an agreement meeting the requirements of this Subsection (4) is terminated, the
             47471      subtraction permitted under Subsection (2)(k) is not allowed for taxable years beginning on or
             47472      after the January 1 following the termination of the agreement.
             47473          (d) For purposes of Subsection (2)(k) and in accordance with [Title 63, Chapter 46a]
             47474      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
             47475          (i) for determining whether income is derived from a source within the Uintah and
             47476      Ouray Reservation; and
             47477          (ii) that are substantially similar to how adjusted gross income derived from Utah
             47478      sources is determined under Section 59-10-117 .
             47479          (5) (a) For purposes of this Subsection (5), "Form 8814" means:
             47480          (i) the federal individual income tax Form 8814, Parents' Election To Report Child's
             47481      Interest and Dividends; or
             47482          (ii) (A) for taxable years beginning on or after January 1, 2002, a form designated by
             47483      the commission in accordance with Subsection (5)(a)(ii)(B) as being substantially similar to
             47484      2000 Form 8814 if for purposes of federal individual income taxes the information contained on
             47485      2000 Form 8814 is reported on a form other than Form 8814; and
             47486          (B) for purposes of Subsection (5)(a)(ii)(A) and in accordance with [Title 63, Chapter
             47487      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make
             47488      rules designating a form as being substantially similar to 2000 Form 8814 if for purposes of
             47489      federal individual income taxes the information contained on 2000 Form 8814 is reported on a

             47490      form other than Form 8814.
             47491          (b) The amount of a child's income added to adjusted gross income under Subsection
             47492      (1)(c) is equal to the difference between:
             47493          (i) the lesser of:
             47494          (A) the base amount specified on Form 8814; and
             47495          (B) the sum of the following reported on Form 8814:
             47496          (I) the child's taxable interest;
             47497          (II) the child's ordinary dividends; and
             47498          (III) the child's capital gain distributions; and
             47499          (ii) the amount not taxed that is specified on Form 8814.
             47500          (6) Notwithstanding Subsection (1)(g), interest from bonds, notes, and other evidences
             47501      of indebtedness issued by an entity described in Subsections (1)(g)(i) through (iv) may not be
             47502      added to federal taxable income of a resident or nonresident individual if, as annually
             47503      determined by the commission:
             47504          (a) for an entity described in Subsection (1)(g)(i) or (ii), the entity and all of the political
             47505      subdivisions, agencies, or instrumentalities of the entity do not impose a tax based on income on
             47506      any part of the bonds, notes, and other evidences of indebtedness of this state; or
             47507          (b) for an entity described in Subsection (1)(g)(iii) or (iv), the following do not impose
             47508      a tax based on income on any part of the bonds, notes, and other evidences of indebtedness of
             47509      this state:
             47510          (i) the entity; or
             47511          (ii) (A) the state in which the entity is located; or
             47512          (B) the District of Columbia, if the entity is located within the District of Columbia.
             47513          Section 1001. Section 59-10-115 is amended to read:
             47514           59-10-115. Adjustments to federal taxable income.
             47515          (1) The commission shall allow an adjustment to federal taxable income of a taxpayer if
             47516      the taxpayer would otherwise:
             47517          (a) receive a double tax benefit under this part; or

             47518          (b) suffer a double tax detriment under this part.
             47519          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             47520      Administrative Rulemaking Act, the commission may make rules to allow for the adjustment to
             47521      federal taxable income required by Subsection (1).
             47522          Section 1002. Section 59-10-116 is amended to read:
             47523           59-10-116. Definitions -- Tax on nonresident individual -- Calculation --
             47524      Exemption.
             47525          (1) For purposes of this section:
             47526          (a) "Military service" is as defined in Pub. L. No. 108-189, Sec. 101.
             47527          (b) "Servicemember" is as defined in Pub. L. No. 108-189, Sec. 101.
             47528          (c) "State income tax percentage" means a percentage equal to a nonresident
             47529      individual's adjusted gross income for the taxable year received from Utah sources, as
             47530      determined under Section 59-10-117 , divided by the difference between:
             47531          (i) the nonresident individual's total adjusted gross income for that taxable year; and
             47532          (ii) if the nonresident individual described in Subsection (1)(c)(i) is a servicemember,
             47533      the compensation the servicemember receives for military service if the servicemember is
             47534      serving in compliance with military orders.
             47535          (d) "State taxable income" means a nonresident individual's federal taxable income after
             47536      making the:
             47537          (i) additions and subtractions required by Section 59-10-114 ; and
             47538          (ii) adjustments required by Section 59-10-115 .
             47539          (e) "Unapportioned state tax" means the product of the:
             47540          (i) difference between:
             47541          (A) a nonresident individual's state taxable income; and
             47542          (B) if the nonresident individual described in Subsection (1)(e)(i)(A) is a
             47543      servicemember, compensation the servicemember receives for military service if the
             47544      servicemember is serving in compliance with military orders; and
             47545          (ii) tax rate imposed under Section 59-10-104 .

             47546          (2) Except as provided in Subsection (3) or Part 12, Single Rate Individual Income Tax
             47547      Act, a tax is imposed on a nonresident individual in an amount equal to the product of the
             47548      nonresident individual's:
             47549          (a) unapportioned state tax; and
             47550          (b) state income tax percentage.
             47551          (3) This section does not apply to a nonresident individual exempt from taxation under
             47552      Section 59-10-104.1 .
             47553          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             47554      Administrative Rulemaking Act, for purposes of Subsection (1), the commission may by rule
             47555      define what constitutes compensation.
             47556          Section 1003. Section 59-10-117 is amended to read:
             47557           59-10-117. Adjusted gross income derived from Utah sources.
             47558          (1) For purposes of Section 59-10-116 , adjusted gross income derived from Utah
             47559      sources includes those items includable in adjusted gross income attributable to or resulting
             47560      from:
             47561          (a) the ownership in this state of any interest in real or tangible personal property,
             47562      including real property or property rights from which "gross income from mining," as defined by
             47563      Section 613(c), Internal Revenue Code, is derived; or
             47564          (b) the carrying on of a business, trade, profession, or occupation in this state.
             47565          (2) For the purposes of Subsection (1):
             47566          (a) income from intangible personal property, including annuities, dividends, interest,
             47567      and gains from the disposition of intangible personal property shall constitute income derived
             47568      from Utah sources only to the extent that such income is from property employed in a trade,
             47569      business, profession, or occupation carried on in this state;
             47570          (b) deductions with respect to capital losses, net long-term capital gains, and net
             47571      operating losses shall be based solely on income, gain, loss, and deduction connected with Utah
             47572      sources, under rules prescribed by the commission in accordance with [Title 63, Chapter 46a]
             47573      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, but otherwise shall be determined

             47574      in the same manner as the corresponding federal deductions;
             47575          (c) salaries, wages, commissions, and compensation for personal services rendered
             47576      outside this state shall not be considered to be derived from Utah sources;
             47577          (d) a nonresident shareholder's distributive share of ordinary income, gain, loss, and
             47578      deduction derived from or connected with Utah sources shall be determined under Section
             47579      59-10-118 ;
             47580          (e) a nonresident, other than a dealer holding property primarily for sale to customers in
             47581      the ordinary course of the dealer's trade or business, may not be considered to carry on a trade,
             47582      business, profession, or occupation in this state solely by reason of the purchase or sale of
             47583      property for the nonresident's own account;
             47584          (f) if a trade, business, profession, or occupation is carried on partly within and partly
             47585      without this state, items of income, gain, loss, and deductions derived from or connected with
             47586      Utah sources shall be determined in accordance with the provisions of Section 59-10-118 ;
             47587          (g) a nonresident partner's distributive share of partnership income, gain, loss, and
             47588      deduction derived from or connected with Utah sources shall be determined under Section
             47589      59-10-303 ;
             47590          (h) the share of a nonresident estate or trust and nonresident beneficiaries of any estate
             47591      or trust in income, gain, loss, and deduction derived from or connected with Utah sources shall
             47592      be determined under Section 59-10-207 ; and
             47593          (i) any dividend, interest, or distributive share of income, gain, or loss from a real estate
             47594      investment trust, as defined in Section 59-7-116.5 , distributed or allocated to a nonresident
             47595      investor in the trust, including any shareholder, beneficiary, or owner of a beneficial interest in
             47596      the trust, shall be income from intangible personal property under Subsection (2)(a), and shall
             47597      constitute income derived from Utah sources only to the extent the nonresident investor is
             47598      employing its beneficial interest in the trust in a trade, business, profession, or occupation
             47599      carried on by the investor in this state.
             47600          Section 1004. Section 59-10-202 is amended to read:
             47601           59-10-202. Additions to and subtractions from federal taxable income of a

             47602      resident or nonresident estate or trust.
             47603          (1) There shall be added to federal taxable income of a resident or nonresident estate or
             47604      trust:
             47605          (a) the amount of any income tax imposed by this or any predecessor Utah individual
             47606      income tax law and the amount of any income tax imposed by the laws of another state, the
             47607      District of Columbia, or a possession of the United States, to the extent deducted from federal
             47608      adjusted total income as defined in Section 62, Internal Revenue Code, in determining federal
             47609      taxable income;
             47610          (b) a lump sum distribution allowable as a deduction under Section 402(d)(3) of the
             47611      Internal Revenue Code, to the extent deductible under Section 62(a)(8) of the Internal Revenue
             47612      Code in determining adjusted gross income;
             47613          (c) except as provided in Subsection (3), for taxable years beginning on or after January
             47614      1, 2003, for bonds, notes, and other evidences of indebtedness acquired on or after January 1,
             47615      2003, the interest from bonds, notes, and other evidences of indebtedness issued by one or more
             47616      of the following entities:
             47617          (i) a state other than this state;
             47618          (ii) the District of Columbia;
             47619          (iii) a political subdivision of a state other than this state; or
             47620          (iv) an agency or instrumentality of an entity described in Subsections (1)(c)(i) through
             47621      (iii);
             47622          (d) any portion of federal taxable income for a taxable year if that federal taxable
             47623      income is derived from stock:
             47624          (i) in an S corporation; and
             47625          (ii) that is held by an electing small business trust;
             47626          (e) (i) the amount withdrawn under Title 53B, Chapter 8a, Higher Education Savings
             47627      Incentive Program, from the account of a resident or nonresident estate or trust that is an
             47628      account owner as defined in Section 53B-8a-102 , for the taxable year for which the amount is
             47629      withdrawn, if that amount withdrawn from the account of the resident or nonresident estate or

             47630      trust that is the account owner:
             47631          (A) is not expended for higher education costs as defined in Section 53B-8a-102 ; and
             47632          (B) is subtracted by the resident or nonresident estate or trust:
             47633          (I) that is the account owner; and
             47634          (II) in accordance with Subsection (2)(j)(i); and
             47635          (ii) the amount withdrawn under Title 53B, Chapter 8a, Higher Education Savings
             47636      Incentive Program, from the account of a resident or nonresident estate or trust that is an
             47637      account owner as defined in Section 53B-8a-102 , for the taxable year beginning on or after
             47638      January 1, 2007, but beginning on or before December 31, 2007, if that amount withdrawn from
             47639      the account of the resident or nonresident estate or trust that is the account owner:
             47640          (A) is not expended for higher education costs as defined in Section 53B-8a-102 ; and
             47641          (B) is subtracted by the resident or nonresident estate or trust:
             47642          (I) that is the account owner; and
             47643          (II) in accordance with Subsection (2)(j)(ii); and
             47644          (f) any fiduciary adjustments required by Section 59-10-210 .
             47645          (2) There shall be subtracted from federal taxable income of a resident or nonresident
             47646      estate or trust:
             47647          (a) the interest or a dividend on obligations or securities of the United States and its
             47648      possessions or of any authority, commission, or instrumentality of the United States, to the
             47649      extent that interest or dividend is included in gross income for federal income tax purposes for
             47650      the taxable year but exempt from state income taxes under the laws of the United States, but the
             47651      amount subtracted under this Subsection (2) shall be reduced by any interest on indebtedness
             47652      incurred or continued to purchase or carry the obligations or securities described in this
             47653      Subsection (2), and by any expenses incurred in the production of interest or dividend income
             47654      described in this Subsection (2) to the extent that such expenses, including amortizable bond
             47655      premiums, are deductible in determining federal taxable income;
             47656          (b) 1/2 of the net amount of any income tax paid or payable to the United States after
             47657      all allowable credits, as per the United States fiduciary income tax return of the taxpayer for the

             47658      same taxable year;
             47659          (c) income of an irrevocable resident trust if:
             47660          (i) the income would not be treated as state taxable income derived from Utah sources
             47661      under Section 59-10-204 if received by a nonresident trust;
             47662          (ii) the trust first became a resident trust on or after January 1, 2004;
             47663          (iii) no assets of the trust were held, at any time after January 1, 2003, in another
             47664      resident irrevocable trust created by the same settlor or the spouse of the same settlor;
             47665          (iv) the trustee of the trust is a trust company as defined in Subsection 7-5-1 (1)(d);
             47666          (v) the amount subtracted under this Subsection (2) is reduced to the extent the settlor
             47667      or any other person is treated as an owner of any portion of the trust under Subtitle A,
             47668      Subchapter J, Subpart E of the Internal Revenue Code; and
             47669          (vi) the amount subtracted under this Subsection (2) is reduced by any interest on
             47670      indebtedness incurred or continued to purchase or carry the assets generating the income
             47671      described in this Subsection (2), and by any expenses incurred in the production of income
             47672      described in this Subsection (2), to the extent that those expenses, including amortizable bond
             47673      premiums, are deductible in determining federal taxable income;
             47674          (d) if the conditions of Subsection (4)(a) are met, the amount of income of a resident or
             47675      nonresident estate or trust derived from a deceased Ute tribal member:
             47676          (i) during a time period that the Ute tribal member resided on homesteaded land
             47677      diminished from the Uintah and Ouray Reservation; and
             47678          (ii) from a source within the Uintah and Ouray Reservation;
             47679          (e) (i) for taxable years beginning on or after January 1, 2003, the total amount of a
             47680      resident or nonresident estate's or trust's short-term capital gain or long-term capital gain on a
             47681      capital gain transaction:
             47682          (A) that occurs on or after January 1, 2003;
             47683          (B) if 70% or more of the gross proceeds of the capital gain transaction are expended:
             47684          (I) to purchase qualifying stock in a Utah small business corporation; and
             47685          (II) within a 12-month period after the day on which the capital gain transaction occurs;

             47686      and
             47687          (C) if, prior to the purchase of the qualifying stock described in Subsection
             47688      (2)(e)(i)(B)(I), the resident or nonresident estate or trust did not have an ownership interest in
             47689      the Utah small business corporation that issued the qualifying stock; and
             47690          (ii) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             47691      Administrative Rulemaking Act, the commission may make rules:
             47692          (A) defining the term "gross proceeds"; and
             47693          (B) for purposes of Subsection (2)(e)(i)(C), prescribing the circumstances under which
             47694      a resident or nonresident estate or trust has an ownership interest in a Utah small business
             47695      corporation;
             47696          (f) for the taxable year beginning on or after January 1, 2005, but beginning on or
             47697      before December 31, 2005, the first $2,200 of income of a resident or nonresident estate or
             47698      trust that is derived from a deceased qualifying military servicemember:
             47699          (i) for service:
             47700          (A) as a qualifying military servicemember; or
             47701          (B) under an order into active service in accordance with Section 39-1-5 ; and
             47702          (ii) to the extent that income is included in total income on that resident or nonresident
             47703      estate's or trust's federal income tax return for estates and trusts for that taxable year;
             47704          (g) any amount:
             47705          (i) received by a resident or nonresident estate or trust;
             47706          (ii) that constitutes a refund of taxes imposed by:
             47707          (A) a state; or
             47708          (B) the District of Columbia; and
             47709          (iii) to the extent that amount is included in total income on that resident or nonresident
             47710      estate's or trust's federal tax return for estates and trusts for that taxable year;
             47711          (h) the amount of a railroad retirement benefit:
             47712          (i) paid:
             47713          (A) in accordance with The Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231 et

             47714      seq.;
             47715          (B) to a resident or nonresident estate or trust derived from a deceased resident or
             47716      nonresident individual; and
             47717          (C) for the taxable year; and
             47718          (ii) to the extent that railroad retirement benefit is included in total income on that
             47719      resident or nonresident estate's or trust's federal tax return for estates and trusts;
             47720          (i) an amount:
             47721          (i) received by a resident or nonresident estate or trust if that amount is derived from a
             47722      deceased enrolled member of an American Indian tribe; and
             47723          (ii) to the extent that the state is not authorized or permitted to impose a tax under this
             47724      part on that amount in accordance with:
             47725          (A) federal law;
             47726          (B) a treaty; or
             47727          (C) a final decision issued by a court of competent jurisdiction;
             47728          (j) (i) subject to Subsection (1)(e)(i), for taxable years beginning on or after January 1,
             47729      2007, the amount of a qualified investment as defined in Section 53B-8a-102 that:
             47730          (A) a resident or nonresident estate or trust that is an account owner as defined in
             47731      Section 53B-8a-102 makes during the taxable year;
             47732          (B) the resident or nonresident estate or trust described in Subsection (2)(j)(i)(A) does
             47733      not deduct on a federal tax return for estates and trusts; and
             47734          (C) does not exceed the maximum amount of the qualified investment that may be
             47735      subtracted from federal taxable income for a taxable year in accordance with Subsections
             47736      53B-8a-106 (1)(e) and (f); and
             47737          (ii) subject to Subsection (1)(e)(ii), for the taxable year beginning on or after January 1,
             47738      2007, but beginning on or before December 31, 2007 only, and in addition to any subtraction a
             47739      resident or nonresident estate or trust that is an account owner as defined in Section
             47740      53B-8a-102 makes in accordance with Subsection (2)(j)(i), the amount of a qualified investment
             47741      as defined in Section 53B-8a-102 that:

             47742          (A) a resident or nonresident estate or trust that is an account owner as defined in
             47743      Section 53B-8a-102 could have subtracted under Subsection (2)(j)(i) for the taxable year
             47744      beginning on or after January 1, 2006, but beginning on or before December 31, 2006, had the
             47745      subtraction under Subsection (2)(j)(i) been in effect for the taxable year beginning on or after
             47746      January 1, 2006, but beginning on or before December 31, 2006;
             47747          (B) the resident or nonresident estate or trust described in Subsection (2)(j)(ii)(A)
             47748      makes during the taxable year beginning on or after January 1, 2006, but beginning on or before
             47749      December 31, 2006;
             47750          (C) the resident or nonresident estate or trust described in Subsection (2)(j)(ii)(A) does
             47751      not deduct on a federal tax return for estates and trusts; and
             47752          (D) does not exceed the maximum amount of the qualified investment that may be
             47753      subtracted from federal taxable income:
             47754          (I) for the taxable year beginning on or after January 1, 2006, but beginning on or
             47755      before December 31, 2006; and
             47756          (II) in accordance with Subsections 53B-8a-106 (1)(e) and (f); and
             47757          (k) any fiduciary adjustments required by Section 59-10-210 .
             47758          (3) Notwithstanding Subsection (1)(c), interest from bonds, notes, and other evidences
             47759      of indebtedness issued by an entity described in Subsections (1)(c)(i) through (iv) may not be
             47760      added to federal taxable income of a resident or nonresident estate or trust if, as annually
             47761      determined by the commission:
             47762          (a) for an entity described in Subsection (1)(c)(i) or (ii), the entity and all of the political
             47763      subdivisions, agencies, or instrumentalities of the entity do not impose a tax based on income on
             47764      any part of the bonds, notes, and other evidences of indebtedness of this state; or
             47765          (b) for an entity described in Subsection (1)(c)(iii) or (iv), the following do not impose a
             47766      tax based on income on any part of the bonds, notes, and other evidences of indebtedness of this
             47767      state:
             47768          (i) the entity; or
             47769          (ii) (A) the state in which the entity is located; or

             47770          (B) the District of Columbia, if the entity is located within the District of Columbia.
             47771          (4) (a) A subtraction for an amount described in Subsection (2)(d) is allowed only if:
             47772          (i) the income is derived from a deceased Ute tribal member; and
             47773          (ii) the governor and the Ute tribe execute and maintain an agreement meeting the
             47774      requirements of this Subsection (4).
             47775          (b) The agreement described in Subsection (4)(a):
             47776          (i) may not:
             47777          (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
             47778          (B) provide a subtraction under this section greater than or different from the
             47779      subtraction described in Subsection (2)(d); or
             47780          (C) affect the power of the state to establish rates of taxation; and
             47781          (ii) shall:
             47782          (A) provide for the implementation of the subtraction described in Subsection (2)(d);
             47783          (B) be in writing;
             47784          (C) be signed by:
             47785          (I) the governor; and
             47786          (II) the chair of the Business Committee of the Ute tribe;
             47787          (D) be conditioned on obtaining any approval required by federal law; and
             47788          (E) state the effective date of the agreement.
             47789          (c) (i) The governor shall report to the commission by no later than February 1 of each
             47790      year regarding whether or not an agreement meeting the requirements of this Subsection (4) is
             47791      in effect.
             47792          (ii) If an agreement meeting the requirements of this Subsection (4) is terminated, the
             47793      subtraction permitted under Subsection (2)(d) is not allowed for taxable years beginning on or
             47794      after the January 1 following the termination of the agreement.
             47795          (d) For purposes of Subsection (2)(d) and in accordance with [Title 63, Chapter 46a]
             47796      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
             47797          (i) for determining whether income is derived from a source within the Uintah and

             47798      Ouray Reservation; and
             47799          (ii) that are substantially similar to how adjusted gross income derived from Utah
             47800      sources is determined under Section 59-10-117 .
             47801          Section 1005. Section 59-10-209.1 is amended to read:
             47802           59-10-209.1. Adjustments to state taxable income.
             47803          (1) The commission shall allow an adjustment to state taxable income of a resident or
             47804      nonresident estate or trust if the resident or nonresident estate or trust would otherwise:
             47805          (a) receive a double tax benefit under this chapter; or
             47806          (b) suffer a double tax detriment under this chapter.
             47807          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             47808      Administrative Rulemaking Act, the commission may make rules to allow for the adjustment to
             47809      state taxable income required by Subsection (1).
             47810          Section 1006. Section 59-10-210 is amended to read:
             47811           59-10-210. Fiduciary adjustments.
             47812          (1) A share of the fiduciary adjustments described in Subsection (2) shall be added to or
             47813      subtracted from federal taxable income:
             47814          (a) of:
             47815          (i) a resident or nonresident estate or trust; or
             47816          (ii) a resident or nonresident beneficiary of a resident or nonresident estate or trust; and
             47817          (b) as provided in this section.
             47818          (2) For purposes of Subsection (1), the fiduciary adjustments are the following
             47819      amounts:
             47820          (a) the additions to and subtractions from federal taxable income of a resident or
             47821      nonresident estate or trust required by Section 59-10-202 , except for Subsection
             47822      59-10-202 (2)(b); and
             47823          (b) a tax credit claimed by a resident or nonresident estate or trust as allowed by:
             47824          (i) Section 59-6-102 ;
             47825          (ii) Part 10, Nonrefundable Tax Credit Act;

             47826          (iii) Part 11, Refundable Tax Credit Act;
             47827          (iv) Section 59-13-202 ;
             47828          (v) Section [ 63-38f-413 ] 63M-1-413 ; or
             47829          (vi) Section [ 63-38f-503 ] 63M-1-504 .
             47830          (3) (a) The respective shares of an estate or trust and its beneficiaries, including for the
             47831      purpose of this allocation a nonresident beneficiary, in the state fiduciary adjustments, shall be
             47832      allocated in proportion to their respective shares of federal distributable net income of the estate
             47833      or trust.
             47834          (b) If the estate or trust described in Subsection (3)(a) has no federal distributable net
             47835      income for the taxable year, the share of each beneficiary in the fiduciary adjustments shall be
             47836      allocated in proportion to that beneficiary's share of the estate or trust income for the taxable
             47837      year that is, under state law or the governing instrument, required to be distributed currently
             47838      plus any other amounts of that income distributed in that taxable year.
             47839          (c) After making the allocations required by Subsections (3)(a) and (b), any balance of
             47840      the fiduciary adjustments shall be allocated to the estate or trust.
             47841          (4) (a) The commission shall allow a fiduciary to use a method for determining the
             47842      allocation of the fiduciary adjustments described in Subsection (2) other than the method
             47843      described in Subsection (3) if using the method described in Subsection (3) results in an
             47844      inequity:
             47845          (i) in allocating the fiduciary adjustments described in Subsection (2); and
             47846          (ii) if the inequity is substantial:
             47847          (A) in amount; and
             47848          (B) in relation to the total amount of the fiduciary adjustments described in Subsection
             47849      (2).
             47850          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             47851      Administrative Rulemaking Act, the commission may make rules authorizing a fiduciary to use a
             47852      method for determining the allocation of the fiduciary adjustments described in Subsection (2)
             47853      other than the method described in Subsection (3) if using the method described in Subsection

             47854      (3) results in an inequity:
             47855          (i) in allocating the fiduciary adjustments described in Subsection (2); and
             47856          (ii) if the inequity is substantial:
             47857          (A) in amount; and
             47858          (B) in relation to the total amount of the fiduciary adjustments described in Subsection
             47859      (2).
             47860          Section 1007. Section 59-10-405.5 is amended to read:
             47861           59-10-405.5. Definitions -- Withholding tax license requirements -- Penalty --
             47862      Application process and requirements -- Fee not required -- Bonds.
             47863          (1) As used in this section:
             47864          (a) "applicant" means a person that:
             47865          (i) is required by this section to obtain a license; and
             47866          (ii) submits an application:
             47867          (A) to the commission; and
             47868          (B) for a license under this section;
             47869          (b) "application" means an application for a license under this section;
             47870          (c) "fiduciary of the applicant" means a person that:
             47871          (i) is required to collect, truthfully account for, and pay over an amount under this part
             47872      for an applicant; and
             47873          (ii) (A) is a corporate officer of the applicant described in Subsection (1)(c)(i);
             47874          (B) is a director of the applicant described in Subsection (1)(c)(i);
             47875          (C) is an employee of the applicant described in Subsection (1)(c)(i);
             47876          (D) is a partner of the applicant described in Subsection (1)(c)(i);
             47877          (E) is a trustee of the applicant described in Subsection (1)(c)(i); or
             47878          (F) has a relationship to the applicant described in Subsection (1)(c)(i) that is similar to
             47879      a relationship described in Subsections (1)(c)(ii)(A) through (E) as determined by the
             47880      commission by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             47881      Administrative Rulemaking Act;

             47882          (d) "fiduciary of the licensee" means a person that:
             47883          (i) is required to collect, truthfully account for, and pay over an amount under this part
             47884      for a licensee; and
             47885          (ii) (A) is a corporate officer of the licensee described in Subsection (1)(d)(i);
             47886          (B) is a director of the licensee described in Subsection (1)(d)(i);
             47887          (C) is an employee of the licensee described in Subsection (1)(d)(i);
             47888          (D) is a partner of the licensee described in Subsection (1)(d)(i);
             47889          (E) is a trustee of the licensee described in Subsection (1)(d)(i); or
             47890          (F) has a relationship to the licensee described in Subsection (1)(d)(i) that is similar to a
             47891      relationship described in Subsections (1)(d)(ii)(A) through (E) as determined by the commission
             47892      by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             47893      Administrative Rulemaking Act;
             47894          (e) "license" means a license under this section; and
             47895          (f) "licensee" means a person that is licensed under this section by the commission.
             47896          (2) The following persons are guilty of a criminal violation as provided in Section
             47897      59-1-401 :
             47898          (a) a person that:
             47899          (i) is required to withhold, report, or remit any amounts under this part; and
             47900          (ii) engages in business within the state before obtaining a license under this section; or
             47901          (b) a person that:
             47902          (i) pays wages under this part; and
             47903          (ii) engages in business within the state before obtaining a license under this section.
             47904          (3) The license described in Subsection (2):
             47905          (a) shall be granted and issued:
             47906          (i) by the commission in accordance with this section;
             47907          (ii) without a license fee; and
             47908          (iii) if:
             47909          (A) an applicant:

             47910          (I) states the applicant's name and address in the application; and
             47911          (II) provides other information in the application that the commission may require; and
             47912          (B) the person meets the requirements of this section to be granted a license as
             47913      determined by the commission;
             47914          (b) may not be assigned to another person; and
             47915          (c) is valid:
             47916          (i) only for the person named on the license; and
             47917          (ii) until:
             47918          (A) the person described in Subsection (3)(c)(i):
             47919          (I) ceases to do business; or
             47920          (II) changes that person's business address; or
             47921          (B) the commission revokes the license.
             47922          (4) The commission shall review an application and determine whether:
             47923          (a) the applicant meets the requirements of this section to be issued a license; and
             47924          (b) a bond is required to be posted with the commission in accordance with Subsections
             47925      (5) and (6) before the applicant may be issued a license.
             47926          (5) (a) An applicant shall post a bond with the commission before the commission may
             47927      issue the applicant a license if:
             47928          (i) a license under this section was revoked for a delinquency under this part for:
             47929          (A) the applicant;
             47930          (B) a fiduciary of the applicant; or
             47931          (C) a person for which the applicant or the fiduciary of the applicant is required to
             47932      collect, truthfully account for, and pay over an amount under this part; or
             47933          (ii) there is a delinquency in withholding, reporting, or remitting any amount under this
             47934      part for:
             47935          (A) an applicant;
             47936          (B) a fiduciary of the applicant; or
             47937          (C) a person for which the applicant or the fiduciary of the applicant is required to

             47938      collect, truthfully account for, and pay over an amount under this part.
             47939          (b) If the commission determines it is necessary to ensure compliance with this part, the
             47940      commission may require a licensee to:
             47941          (i) for a licensee that has not posted a bond under this section with the commission,
             47942      post a bond with the commission in accordance with Subsection (6); or
             47943          (ii) for a licensee that has posted a bond under this section with the commission,
             47944      increase the amount of the bond posted with the commission.
             47945          (6) (a) A bond required by Subsection (5) shall be:
             47946          (i) executed by:
             47947          (A) for an applicant, the applicant as principal, with a corporate surety; or
             47948          (B) for a licensee, the licensee as principal, with a corporate surety; and
             47949          (ii) payable to the commission conditioned upon the faithful performance of all of the
             47950      requirements of this part including:
             47951          (A) the withholding or remitting of any amount under this part;
             47952          (B) the payment of any:
             47953          (I) penalty as provided in Section 59-1-401 ; or
             47954          (II) interest as provided in Section 59-1-402 ; or
             47955          (C) any other obligation of the:
             47956          (I) applicant under this part; or
             47957          (II) licensee under this part.
             47958          (b) Except as provided in Subsection (6)(d), the commission shall calculate the amount
             47959      of a bond required by Subsection (5) on the basis of:
             47960          (i) commission estimates of:
             47961          (A) for an applicant, any amounts the applicant withholds, reports, or remits under this
             47962      part; or
             47963          (B) for a licensee, any amounts the licensee withholds, reports, or remits under this
             47964      part; and
             47965          (ii) any amount of a delinquency described in Subsection (6)(c).

             47966          (c) Except as provided in Subsection (6)(d), for purposes of Subsection (6)(b)(ii):
             47967          (i) for an applicant, the amount of the delinquency is the sum of:
             47968          (A) the amount of any delinquency that served as a basis for revoking the license under
             47969      this section of:
             47970          (I) the applicant;
             47971          (II) a fiduciary of the applicant; or
             47972          (III) a person for which the applicant or the fiduciary of the applicant is required to
             47973      collect, truthfully account for, and pay over an amount under this part; or
             47974          (B) the amount that any of the following owe under this part:
             47975          (I) the applicant;
             47976          (II) a fiduciary of the applicant; and
             47977          (III) a person for which the applicant or the fiduciary of the applicant is required to
             47978      collect, truthfully account for, and pay over an amount under this part; or
             47979          (ii) for a licensee, the amount of the delinquency is the sum of:
             47980          (A) the amount of any delinquency that served as a basis for revoking the license under
             47981      this section of:
             47982          (I) the licensee;
             47983          (II) a fiduciary of the licensee; or
             47984          (III) a person for which the licensee or the fiduciary of the licensee is required to
             47985      collect, truthfully account for, and pay over an amount under this part; or
             47986          (B) the amount that any of the following owe under this part:
             47987          (I) the licensee;
             47988          (II) a fiduciary of the licensee; and
             47989          (III) a person for which the licensee or the fiduciary of the licensee is required to
             47990      collect, truthfully account for, and pay over an amount under this part.
             47991          (d) Notwithstanding Subsection (6)(b) or (c), a bond required by Subsection (5) may
             47992      not:
             47993          (i) be less than $25,000; or

             47994          (ii) exceed $500,000.
             47995          (7) (a) The commission shall revoke a license under this section if:
             47996          (i) a licensee violates any provision of this part; and
             47997          (ii) before the commission revokes the license the commission provides the licensee:
             47998          (A) reasonable notice; and
             47999          (B) a hearing.
             48000          (b) If the commission revokes a licensee's license in accordance with Subsection (7)(a),
             48001      the commission may not issue another license to that licensee until that licensee complies with
             48002      the requirements of this part, including:
             48003          (i) paying any:
             48004          (A) amounts due under this part;
             48005          (B) penalty as provided in Section 59-1-401 ; or
             48006          (C) interest as provided in Section 59-1-402 ; and
             48007          (ii) posting a bond in accordance with Subsections (5) and (6).
             48008          Section 1008. Section 59-10-514 is amended to read:
             48009           59-10-514. Return filing requirements -- Rulemaking authority.
             48010          (1) Subject to Subsection (3):
             48011          (a) an individual income tax return filed for a tax imposed in accordance with Part 1,
             48012      Determination and Reporting of Tax Liability and Information, shall be filed with the
             48013      commission:
             48014          (i) except as provided in Subsection (1)(a)(ii), on or before the 15th day of the fourth
             48015      month following the last day of the taxpayer's taxable year; or
             48016          (ii) on or before the day on which a federal individual income tax return is due under the
             48017      Internal Revenue Code if the Internal Revenue Code provides a due date for filing that federal
             48018      individual income tax return that is different from the due date described in Subsection (1)(a)(i);
             48019          (b) a fiduciary income tax return filed for a tax imposed in accordance with Part 2,
             48020      Trusts and Estates, shall be filed with the commission:
             48021          (i) except as provided in Subsection (1)(b)(ii), on or before the 15th day of the fourth

             48022      month following the last day of the taxpayer's taxable year; or
             48023          (ii) on or before the day on which a federal tax return for estates and trusts is due under
             48024      the Internal Revenue Code if the Internal Revenue Code provides a due date for filing that
             48025      federal tax return for estates and trusts that is different from the due date described in
             48026      Subsection (1)(b)(i); or
             48027          (c) a return filed in accordance with Section 59-10-507 , shall be filed with the
             48028      commission:
             48029          (i) except as provided in Subsection (1)(c)(ii), in accordance with Section 59-10-507 ;
             48030      or
             48031          (ii) on or before the day on which a federal return of partnership income is due under
             48032      the Internal Revenue Code if the Internal Revenue Code provides a due date for filing that
             48033      federal return of partnership income that is different from the due date described in Subsection
             48034      (1)(c)(i).
             48035          (2) A person required to make and file a return under this chapter shall, without
             48036      assessment, notice, or demand, pay any tax due:
             48037          (a) to the commission; and
             48038          (b) before the due date for filing the return determined without regard to any extension
             48039      of time for filing the return.
             48040          (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             48041      Administrative Rulemaking Act, the commission may make rules prescribing what constitutes
             48042      filing a return with the commission.
             48043          Section 1009. Section 59-10-514.1 is amended to read:
             48044           59-10-514.1. Definitions -- Requirement to file returns using scan technology or
             48045      by electronic means -- Exceptions -- Waiver.
             48046          (1) As used in this section:
             48047          (a) (i) "electronic" means using a technology other than scan technology; and
             48048          (ii) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             48049      Administrative Rulemaking Act, the commission may make rules defining "technology";

             48050          (b) (i) except as provided in Subsection (1)(b)(ii), "income tax return preparer" means
             48051      an individual that prepares for compensation a return required to be filed by this chapter;
             48052          (ii) notwithstanding Subsection (1)(b)(i), "income tax return preparer" does not include
             48053      an individual who:
             48054          (A) performs only one or more of the following relating to a return required to be filed
             48055      by this chapter:
             48056          (I) types the return;
             48057          (II) reproduces the return; or
             48058          (III) performs an action similar to Subsection (1)(b)(ii)(A)(I) or (II) as determined by
             48059      the commission by rule, made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             48060      Utah Administrative Rulemaking Act; or
             48061          (B) prepares a return required to be filed by this chapter:
             48062          (I) of the individual's employer or an officer or employee of the employer if the
             48063      individual is regularly and continuously employed by that employer;
             48064          (II) of any person if that individual is a fiduciary for that person; or
             48065          (III) for a taxpayer in response to a tax order issued to that taxpayer;
             48066          (c) "prepare" means to prepare a substantial portion or more of a return required to be
             48067      filed by this chapter;
             48068          (d) (i) except as provided in Subsection (1)(d)(ii), "qualifying return" means a return
             48069      required to be filed by this chapter for any taxable year that begins on or after the January 1
             48070      described in Subsection (2)(c)(i); and
             48071          (ii) notwithstanding Subsection (1)(d)(i), "qualifying return" does not include:
             48072          (A) an amended return; or
             48073          (B) (I) a return filed for any taxable year that begins before the first day of the current
             48074      taxable year; and
             48075          (II) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             48076      Administrative Rulemaking Act, the commission may make rules defining "current taxable
             48077      year"; and

             48078          (e) (i) "scan technology" means technology that:
             48079          (A) allows a return to be scanned; and
             48080          (B) is approved by the commission; and
             48081          (ii) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             48082      Administrative Rulemaking Act, the commission may by rule specify what types of technology
             48083      constitute scan technology.
             48084          (2) (a) Subject to Subsections (2)(b) and (c) and except as provided in Subsection (3),
             48085      an income tax return preparer shall file all qualifying returns using scan technology or by
             48086      electronic means if the income tax return preparer prepares in any calendar year beginning on or
             48087      after January 1, 2005, a total of 101 or more returns required to be filed by this chapter.
             48088          (b) (i) For purposes of Subsection (2)(a), if two or more income tax return preparers
             48089      are affiliated with the same establishment, the total number of returns required to be filed by this
             48090      chapter that are prepared in a calendar year beginning on or after January 1, 2005, by all of the
             48091      income tax return preparers that are affiliated with that establishment shall be included in
             48092      determining whether an income tax return preparer prepares in a calendar year beginning on or
             48093      after January 1, 2005, a total of 101 or more returns required to be filed by this chapter.
             48094          (ii) For purposes of Subsection (2)(b)(i), in accordance with [Title 63, Chapter 46a]
             48095      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule
             48096      determine the circumstances under which two or more income tax return preparers are affiliated
             48097      with the same establishment.
             48098          (c) If an income tax return preparer is required by this Subsection (2) to file all
             48099      qualifying returns using scan technology or by electronic means, the income tax return preparer
             48100      shall file those qualifying returns using scan technology or by electronic means:
             48101          (i) beginning on January 1 of the first calendar year immediately following the day on
             48102      which the income tax return preparer meets the requirements of this Subsection (2); and
             48103          (ii) for all calendar years after the calendar year described in Subsection (2)(c)(i).
             48104          (3) Notwithstanding Subsection (2), an income tax return preparer is not required to file
             48105      a qualifying return using scan technology or by electronic means if:

             48106          (a) a schedule required to be attached to the qualifying return cannot be filed using scan
             48107      technology or by electronic means;
             48108          (b) the taxpayer for which the qualifying return is prepared requests in writing that the
             48109      income tax return preparer not file the qualifying return using scan technology or by electronic
             48110      means; or
             48111          (c) subject to Subsection (4), the commission waives for one or more qualifying returns
             48112      filed by the income tax return preparer the requirement imposed by this section to file the
             48113      qualifying returns using scan technology or by electronic means.
             48114          (4) (a) For purposes of Subsection (3)(c), the commission may waive for one or more
             48115      qualifying returns filed by an income tax return preparer the requirement imposed by this section
             48116      to file the qualifying returns using scan technology or by electronic means if the income tax
             48117      return preparer demonstrates to the commission that it would be an undue hardship to file the
             48118      qualifying returns using scan technology or by electronic means.
             48119          (b) For purposes of Subsection (4)(a) and in accordance with [Title 63, Chapter 46a]
             48120      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall by rule define
             48121      the circumstances that constitute an undue hardship to file a qualifying return using scan
             48122      technology or by electronic means.
             48123          Section 1010. Section 59-10-549 is amended to read:
             48124           59-10-549. Contributions for education.
             48125          (1) Except as provided in Section 59-10-551 , a taxpayer that files a return pursuant to
             48126      Section 59-10-502 may designate on the return a contribution as provided in this section to:
             48127          (a) (i) the foundation of any school district if that foundation is exempt from federal
             48128      income taxation under Section 501(c)(3), Internal Revenue Code; or
             48129          (ii) a school district described in Title 53A, Chapter 2, School Districts, if the school
             48130      district has not established a foundation;
             48131          (b) a college campus of the Utah College of Applied Technology listed in Section
             48132      53B-2a-105 ; or
             48133          (c) for taxable years beginning on or after January 1, 2004, but beginning on or before

             48134      December 31, 2006, the Uniform School Fund.
             48135          (2) (a) A taxpayer may designate as a contribution under this section any whole dollar
             48136      amount of $1 or more.
             48137          (b) (i) If the taxpayer is owed an individual income tax refund for the taxable year, the
             48138      amount of a contribution under this section shall be deducted from the taxpayer's individual
             48139      income tax refund.
             48140          (ii) If the taxpayer is not owed an individual income tax refund for the taxable year, the
             48141      taxpayer may remit a contribution under this section with the taxpayer's individual income tax
             48142      return.
             48143          (c) If a taxpayer files a joint return, the contribution under this section shall be a joint
             48144      contribution.
             48145          (d) A contribution under this section is irrevocable during the taxable year for which the
             48146      taxpayer makes the contribution.
             48147          (3) If a taxpayer designates an amount as a contribution under:
             48148          (a) Subsection (1)(a)(i), but does not designate a particular school district foundation to
             48149      receive the contribution, the contribution shall be made to the Utah State Office of Education to
             48150      be distributed to one or more associations of foundations:
             48151          (i) if those foundations that are members of the association are established in
             48152      accordance with Section 53A-4-205 ; and
             48153          (ii) as determined by the Utah State Office of Education; or
             48154          (b) Subsection (1)(a)(ii), but does not designate a particular school district to receive
             48155      the contribution, the contribution shall be made to the Utah State Office of Education.
             48156          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             48157      Administrative Rulemaking Act, the commission may make rules to implement this section.
             48158          (5) The commission shall:
             48159          (a) determine annually the total amount of contributions designated in accordance with
             48160      this section; and
             48161          (b) report this amount to the state treasurer.

             48162          (6) The state treasurer shall credit any contributions reported to the state treasurer in
             48163      accordance with Subsection (5):
             48164          (a) subject to Subsection (3), if a taxpayer designates a contribution to an entity listed in
             48165      Subsection (1)(a) or (b) in accordance with this section, to the entity that is designated by the
             48166      taxpayer; or
             48167          (b) if a taxpayer designates a contribution to the Uniform School Fund under
             48168      Subsection (1)(c) in accordance with this section, to the Uniform School Fund.
             48169          Section 1011. Section 59-10-1007 is amended to read:
             48170           59-10-1007. Recycling market development zones tax credit.
             48171          (1) For taxable years beginning on or after January 1, 1996, a claimant, estate, or trust
             48172      in a recycling market development zone as defined in Section [ 63-38f-1102 ] 63M-1-1102 may
             48173      claim a nonrefundable tax credit as provided in this section.
             48174          (a) (i) There shall be allowed a tax credit of 5% of the purchase price paid for
             48175      machinery and equipment used directly in:
             48176          (A) commercial composting; or
             48177          (B) manufacturing facilities or plant units that:
             48178          (I) manufacture, process, compound, or produce recycled items of tangible personal
             48179      property for sale; or
             48180          (II) reduce or reuse postconsumer waste material.
             48181          (ii) The Governor's Office of Economic Development shall certify that the machinery
             48182      and equipment described in Subsection (1)(a)(i) are integral to the composting or recycling
             48183      process:
             48184          (A) on a form provided by the commission; and
             48185          (B) before a claimant, estate, or trust is allowed a tax credit under this section.
             48186          (iii) The Governor's Office of Economic Development shall provide a claimant, estate,
             48187      or trust seeking to claim a tax credit under this section with a copy of the form described in
             48188      Subsection (1)(a)(ii).
             48189          (iv) The claimant, estate, or trust described in Subsection (1)(a)(iii) shall retain a copy

             48190      of the form received under Subsection (1)(a)(iii).
             48191          (b) There shall be allowed a tax credit equal to 20% of net expenditures up to $10,000
             48192      to third parties for rent, wages, supplies, tools, test inventory, and utilities made by the claimant,
             48193      estate, or trust for establishing and operating recycling or composting technology in Utah, with
             48194      an annual maximum tax credit of $2,000.
             48195          (2) The total tax credit allowed under this section may not exceed 40% of the Utah
             48196      income tax liability of the claimant, estate, or trust prior to any tax credits in the taxable year of
             48197      purchase prior to claiming the tax credit authorized by this section.
             48198          (3) (a) Any tax credit not used for the taxable year in which the purchase price on
             48199      composting or recycling machinery and equipment was paid may be carried forward against the
             48200      claimant's, estate's, or trusts's tax liability under this chapter in the three succeeding taxable
             48201      years until the total tax credit amount is used.
             48202          (b) Tax credits not claimed by a claimant, estate, or trust on the claimant's, estate's, or
             48203      trust's tax return under this chapter within three years are forfeited.
             48204          (4) The commission shall make rules governing what information shall be filed with the
             48205      commission to verify the entitlement to and amount of a tax credit.
             48206          (5) (a) Notwithstanding Subsection (1)(a), for taxable years beginning on or after
             48207      January 1, 2001, a claimant, estate, or trust may not claim or carry forward a tax credit
             48208      described in Subsection (1)(a) in a taxable year during which the claimant, estate, or trust claims
             48209      or carries forward a tax credit under Section [ 63-38f-413 ] 63M-1-413 .
             48210          (b) For a taxable year other than a taxable year during which the claimant, estate, or
             48211      trust may not claim or carry forward a tax credit in accordance with Subsection (5)(a), a
             48212      claimant, estate, or trust may claim or carry forward a tax credit described in Subsection (1)(a):
             48213          (i) if the claimant, estate, or trust may claim or carry forward the tax credit in
             48214      accordance with Subsections (1) and (2); and
             48215          (ii) subject to Subsections (3) and (4).
             48216          (6) Notwithstanding Subsection (1)(b), for taxable years beginning on or after January
             48217      1, 2001, a claimant, estate, or trust may not claim a tax credit described in Subsection (1)(b) in

             48218      a taxable year during which the claimant, estate, or trust claims or carries forward a tax credit
             48219      under Section [ 63-38f-413 ] 63M-1-413 .
             48220          (7) A claimant, estate, or trust may not claim or carry forward a tax credit available
             48221      under this section for a taxable year during which the claimant, estate, or trust has claimed the
             48222      targeted business income tax credit available under Section [ 63-38f-503 ] 63M-1-504 .
             48223          Section 1012. Section 59-10-1012 is amended to read:
             48224           59-10-1012. Tax credits for research activities conducted in the state -- Carry
             48225      forward -- Commission to report modification or repeal of certain federal provisions --
             48226      Utah Tax Review Commission study.
             48227          (1) (a) A claimant, estate, or trust meeting the requirements of this section may claim
             48228      the following nonrefundable tax credits:
             48229          (i) a research tax credit of 7% of the claimant's, estate's, or trust's qualified research
             48230      expenses for the current taxable year that exceed the base amount provided for under
             48231      Subsection (3);
             48232          (ii) a tax credit for payments to qualified organizations for basic research as provided in
             48233      Section 41(e), Internal Revenue Code of 7% for the current taxable year that exceed the base
             48234      amount provided for under Subsection (3); and
             48235          (iii) a tax credit equal to 5% of the claimant's, estate's, or trust's qualified research
             48236      expenses for the current taxable year.
             48237          (b) (i) Except as provided in Subsection (1)(b)(ii), a claimant, estate, or trust may:
             48238          (A) claim the tax credit or a portion of the tax credit for the taxable year immediately
             48239      following the taxable year for which the claimant, estate, or trust qualifies for the tax credit;
             48240          (B) carry forward the tax credit or a portion of the tax credit as provided in Subsection
             48241      (4); or
             48242          (C) claim a portion of the tax credit and carry forward a portion of the tax credit as
             48243      provided in Subsections (1)(b)(i)(A) and (B).
             48244          (ii) A claimant, estate, or trust may not carry forward the tax credit allowed by
             48245      Subsection (1)(a)(iii).

             48246          (c) The tax credits provided for in this section do not include the alternative incremental
             48247      credit provided for in Section 41(c)(4), Internal Revenue Code.
             48248          (2) Except as specifically provided for in this section:
             48249          (a) the tax credits authorized under Subsection (1) shall be calculated as provided in
             48250      Section 41, Internal Revenue Code; and
             48251          (b) the definitions provided in Section 41, Internal Revenue Code, apply in calculating
             48252      the tax credits authorized under Subsection (1).
             48253          (3) For purposes of this section:
             48254          (a) the base amount shall be calculated as provided in Sections 41(c) and 41(h), Internal
             48255      Revenue Code, except that:
             48256          (i) the base amount does not include the calculation of the alternative incremental credit
             48257      provided for in Section 41(c)(4), Internal Revenue Code;
             48258          (ii) a claimant's, estate's, or trust's gross receipts include only those gross receipts
             48259      attributable to sources within this state as provided in Section 59-10-118 ; and
             48260          (iii) notwithstanding Section 41(c), Internal Revenue Code, for purposes of calculating
             48261      the base amount, a claimant, estate, or trust:
             48262          (A) may elect to be treated as a start-up company as provided in Section 41(c)(3)(B)
             48263      regardless of whether the claimant, estate, or trust meets the requirements of Section
             48264      41(c)(3)(B)(i)(I) or (II); and
             48265          (B) may not revoke an election to be treated as a start-up company under Subsection
             48266      (3)(a)(iii)(A);
             48267          (b) "basic research" is as defined in Section 41(e)(7), Internal Revenue Code, except
             48268      that the term includes only basic research conducted in this state;
             48269          (c) "qualified research" is as defined in Section 41(d), Internal Revenue Code, except
             48270      that the term includes only qualified research conducted in this state;
             48271          (d) "qualified research expenses" is as defined and calculated in Section 41(b), Internal
             48272      Revenue Code, except that the term includes only:
             48273          (i) in-house research expenses incurred in this state; and

             48274          (ii) contract research expenses incurred in this state; and
             48275          (e) a tax credit provided for in this section is not terminated if a credit terminates under
             48276      Section 41, Internal Revenue Code.
             48277          (4) If the amount of a tax credit claimed by a claimant, estate, or trust under Subsection
             48278      (1)(a)(i) or (ii) exceeds the claimant's, estate's, or trust's tax liability under this chapter for a
             48279      taxable year, the amount of the tax credit exceeding the tax liability:
             48280          (a) may be carried forward for a period that does not exceed the next 14 taxable years;
             48281      and
             48282          (b) may not be carried back to a taxable year preceding the current taxable year.
             48283          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             48284      Administrative Rulemaking Act, the commission may make rules for purposes of this section
             48285      prescribing a certification process for qualified organizations to ensure that amounts paid to the
             48286      qualified organizations are for basic research conducted in this state.
             48287          (6) If a provision of Section 41, Internal Revenue Code, is modified or repealed, the
             48288      commission shall report the modification or repeal to the Utah Tax Review Commission within
             48289      60 days after the day on which the modification or repeal becomes effective.
             48290          (7) (a) The Utah Tax Review Commission shall review the tax credits provided for in
             48291      this section on or before October 1 of the year after the year in which the commission reports
             48292      under Subsection (6) a modification or repeal of a provision of Section 41, Internal Revenue
             48293      Code.
             48294          (b) Notwithstanding Subsection (7)(a), the Utah Tax Review Commission is not
             48295      required to review the tax credits provided for in this section if the only modification to a
             48296      provision of Section 41, Internal Revenue Code, is the extension of the termination date
             48297      provided for in Section 41(h), Internal Revenue Code.
             48298          (c) The Utah Tax Review Commission shall address in a review under this section:
             48299          (i) the cost of the tax credits provided for in this section;
             48300          (ii) the purpose and effectiveness of the tax credits provided for in this section;
             48301          (iii) whether the tax credits provided for in this section benefit the state; and

             48302          (iv) whether the tax credits provided for in this section should be:
             48303          (A) continued;
             48304          (B) modified; or
             48305          (C) repealed.
             48306          (d) If the Utah Tax Review Commission reviews the tax credits provided for in this
             48307      section, the Utah Tax Review Commission shall report its findings to the Revenue and Taxation
             48308      Interim Committee on or before the November interim meeting of the year in which the Utah
             48309      Tax Review Commission reviews the tax credits.
             48310          Section 1013. Section 59-10-1013 is amended to read:
             48311           59-10-1013. Credits for machinery, equipment, or both primarily used for
             48312      conducting qualified research or basic research -- Carry forward -- Commission to report
             48313      modification or repeal of federal credits.
             48314          (1) As used in this section:
             48315          (a) "Basic research" is as defined in Section 41(e)(7), Internal Revenue Code, except
             48316      that the term includes only basic research conducted in this state.
             48317          (b) "Equipment" includes:
             48318          (i) computers;
             48319          (ii) computer equipment; and
             48320          (iii) computer software.
             48321          (c) "Purchase price":
             48322          (i) includes the cost of installing an item of machinery or equipment; and
             48323          (ii) does not include sales or use taxes imposed on an item of machinery or equipment.
             48324          (d) "Qualified organization" is as defined in Section 41(e)(6), Internal Revenue Code.
             48325          (e) "Qualified research" is as defined in Section 41(d), Internal Revenue Code, except
             48326      that the term includes only qualified research conducted in this state.
             48327          (2) (a) Except as provided in Subsection (2)(c), for taxable years beginning on or after
             48328      January 1, 1999, but beginning before December 31, 2010, a claimant, estate, or trust shall
             48329      qualify for the following nonrefundable tax credits for the taxable year in which the machinery,

             48330      equipment, or both, meets the requirements of either Subsection (2)(a)(i) or (2)(a)(ii):
             48331          (i) a tax credit of 6% of the purchase price of either machinery, equipment, or both:
             48332          (A) purchased by the claimant, estate, or trust during the taxable year;
             48333          (B) that is not exempt from sales or use taxes; and
             48334          (C) that is primarily used to conduct qualified research in this state; and
             48335          (ii) a tax credit of 6% of the purchase price paid by the claimant, estate, or trust for
             48336      either machinery, equipment, or both:
             48337          (A) purchased by the claimant, estate, or trust during the taxable year;
             48338          (B) that is not exempt from sales or use taxes;
             48339          (C) that is donated to a qualified organization; and
             48340          (D) that is primarily used to conduct basic research in this state.
             48341          (b) If a claimant, estate, or trust qualifying for a tax credit under Subsection (2)(a)
             48342      seeks to claim the tax credit, the claimant, estate, or trust shall:
             48343          (i) claim the tax credit or a portion of the tax credit for the taxable year immediately
             48344      following the taxable year for which the claimant, estate, or trust qualifies for the tax credit;
             48345          (ii) carry the tax credit or a portion of the tax credit forward as provided in Subsection
             48346      (5); or
             48347          (iii) claim a portion of the tax credit and carry forward a portion of the tax credit as
             48348      provided in Subsections (2)(b)(i) and (ii).
             48349          (c) Notwithstanding Subsection (2)(a), if a claimant, estate, or trust qualifies for a tax
             48350      credit under Subsection (2)(a) for a purchase of machinery, equipment, or both, the claimant,
             48351      estate, or trust may not claim the tax credit or carry the tax credit forward if the machinery,
             48352      equipment, or both, is primarily used to conduct qualified research in the state for a time period
             48353      that is less than 12 consecutive months.
             48354          (3) For purposes of claiming a tax credit under this section, a unitary group as defined
             48355      in Section 59-7-101 is considered to be one claimant.
             48356          (4) Notwithstanding the provisions of Section 41(h), Internal Revenue Code, the tax
             48357      credits provided for in this section shall not terminate if the credits terminate under Section 41,

             48358      Internal Revenue Code.
             48359          (5) Notwithstanding the provisions of Sections 39 and 41(g), Internal Revenue Code,
             48360      governing the carry forward and carry back of federal tax credits, if the amount of a tax credit
             48361      claimed by a claimant, estate, or trust under this section exceeds a claimant's, estate's, or trust's
             48362      tax liability under this chapter for a taxable year, the amount of the tax credit exceeding the
             48363      liability:
             48364          (a) may be carried forward for a period that does not exceed the next 14 taxable years;
             48365      and
             48366          (b) may not be carried back to a taxable year preceding the current taxable year.
             48367          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             48368      Administrative Rulemaking Act, the commission may make rules for purposes of this section
             48369      prescribing a certification process for qualified organizations to ensure that either machinery,
             48370      equipment, or both provided to the qualified organization is to be primarily used to conduct
             48371      basic research in this state.
             48372          (7) If a federal credit under Section 41, Internal Revenue Code, is modified or repealed,
             48373      the commission shall report the modification or repeal to the Tax Review Commission within 60
             48374      days after the day on which the modification or repeal becomes effective.
             48375          Section 1014. Section 59-10-1015 is amended to read:
             48376           59-10-1015. Definitions -- Tax credit for live organ donation expenses --
             48377      Rulemaking authority.
             48378          (1) As used in this section:
             48379          (a) "human organ" means:
             48380          (i) human bone marrow; or
             48381          (ii) any part of a human:
             48382          (A) intestine;
             48383          (B) kidney;
             48384          (C) liver;
             48385          (D) lung; or

             48386          (E) pancreas;
             48387          (b) "live organ donation" means that an individual who is living donates one or more of
             48388      that individual's human organs:
             48389          (i) to another human; and
             48390          (ii) to be transplanted:
             48391          (A) using a medical procedure; and
             48392          (B) to the body of the other human; and
             48393          (c) (i) "live organ donation expenses" means the total amount of expenses:
             48394          (A) incurred by a claimant; and
             48395          (B) that:
             48396          (I) are not reimbursed to that claimant by any person;
             48397          (II) are directly related to a live organ donation by:
             48398          (Aa) the claimant; or
             48399          (Bb) another individual that the claimant is allowed to claim as a dependent in
             48400      accordance with Section 151, Internal Revenue Code; and
             48401          (III) are for:
             48402          (Aa) travel;
             48403          (Bb) lodging; or
             48404          (Cc) a lost wage; and
             48405          (ii) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             48406      Administrative Rulemaking Act, the commission may by rule define "lost wage."
             48407          (2) For taxable years beginning on or after January 1, 2005, a claimant may claim a
             48408      nonrefundable tax credit:
             48409          (a) as provided in this section;
             48410          (b) against taxes otherwise due under this chapter;
             48411          (c) for live organ donation expenses incurred during the taxable year for which the live
             48412      organ donation occurs; and
             48413          (d) in an amount equal to the lesser of:

             48414          (i) the actual amount of the live organ donation expenses; or
             48415          (ii) $10,000.
             48416          (3) If the amount of a tax credit under this section exceeds a claimant's tax liability
             48417      under this chapter for a taxable year, the amount of the tax credit that exceeds the claimant's tax
             48418      liability may be carried forward for a period that does not exceed the next five taxable years.
             48419          Section 1015. Section 59-10-1105 is amended to read:
             48420           59-10-1105. Tax credit for hand tools used in farming operations -- Procedures
             48421      for refund -- Transfers from General Fund to Education Fund -- Rulemaking authority.
             48422          (1) For taxable years beginning on or after January 1, 2004, a claimant, estate, or trust
             48423      may claim a refundable tax credit:
             48424          (a) as provided in this section;
             48425          (b) against taxes otherwise due under this chapter; and
             48426          (c) in an amount equal to the amount of tax the claimant, estate, or trust pays:
             48427          (i) on a purchase of a hand tool:
             48428          (A) if the purchase is made on or after July 1, 2004;
             48429          (B) if the hand tool is used or consumed primarily and directly in a farming operation in
             48430      the state; and
             48431          (C) if the unit purchase price of the hand tool is more than $250; and
             48432          (ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
             48433      (1)(c)(i).
             48434          (2) A claimant, estate, or trust:
             48435          (a) shall retain the following to establish the amount of tax the claimant, estate, or trust
             48436      paid under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
             48437      (1)(c)(i):
             48438          (i) a receipt;
             48439          (ii) an invoice; or
             48440          (iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
             48441          (b) may not carry forward or carry back a tax credit under this section.

             48442          (3) (a) In accordance with any rules prescribed by the commission under Subsection
             48443      (3)(b), the commission shall:
             48444          (i) make a refund to a claimant, estate, or trust that claims a tax credit under this section
             48445      if the amount of the tax credit exceeds the claimant's, estate's, or trust's tax liability under this
             48446      chapter; and
             48447          (ii) transfer at least annually from the General Fund into the Education Fund an amount
             48448      equal to the amount of tax credit claimed under this section.
             48449          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             48450      Administrative Rulemaking Act, the commission may make rules providing procedures for
             48451      making:
             48452          (i) a refund to a claimant, estate, or trust as required by Subsection (3)(a)(i); or
             48453          (ii) transfers from the General Fund into the Education Fund as required by Subsection
             48454      (3)(a)(ii).
             48455          Section 1016. Section 59-10-1205 is amended to read:
             48456           59-10-1205. Adjustments to adjusted gross income of a resident or nonresident
             48457      individual.
             48458          (1) In calculating state taxable income for purposes of this part, the commission shall
             48459      allow an adjustment to adjusted gross income of a resident or nonresident individual if the
             48460      resident or nonresident individual would otherwise:
             48461          (a) receive a double tax benefit under this part; or
             48462          (b) suffer a double tax detriment under this part.
             48463          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             48464      Administrative Rulemaking Act, the commission may make rules to allow for the adjustment to
             48465      adjusted gross income required by Subsection (1).
             48466          Section 1017. Section 59-11-113 is amended to read:
             48467           59-11-113. Administration by commission -- Action for collection of tax --
             48468      Limitation of action -- Limit for refund or credit of tax -- Appeal.
             48469          (1) The commission is charged with the administration and enforcement of this chapter

             48470      and may promulgate rules under [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             48471      Administrative Rulemaking Act, to effectuate the purposes of this chapter.
             48472          (2) The commission shall collect the tax provided for under this chapter, including
             48473      applicable interest and penalties, and shall represent this state in all matters pertaining to
             48474      collection, either before courts or otherwise. The commission may institute proceedings for the
             48475      collection of this tax, and any interest and penalties on the tax, in the district court of any county
             48476      in which any portion of the property is situated. For this purpose the commission may call to its
             48477      assistance the attorney general and the various county attorneys throughout the state.
             48478          (3) (a) Except as provided in Subsections (4) through (7), the commission shall assess a
             48479      tax under this chapter within three years after a taxpayer files a return.
             48480          (b) Except as provided in Subsections (4) through (7), if the commission does not assess
             48481      a tax under this chapter within the three-year period provided in Subsection (3)(a), the
             48482      commission may not file an action to collect the tax.
             48483          (4) Notwithstanding Subsection (3), the commission may assess a tax at any time if a
             48484      taxpayer:
             48485          (a) files a false or fraudulent return with intent to evade; or
             48486          (b) does not file a return.
             48487          (5) Notwithstanding Subsection (3), beginning on July 1, 1998, the commission may
             48488      extend the period to make an assessment or to commence a proceeding to collect the tax under
             48489      this chapter if:
             48490          (a) the three-year period under Subsection (3) has not expired; and
             48491          (b) the commission and the taxpayer sign a written agreement:
             48492          (i) authorizing the extension; and
             48493          (ii) providing for the length of the extension.
             48494          (6) If the commission delays an audit at the request of a taxpayer, the commission may
             48495      make an assessment as provided in Subsection (7) if:
             48496          (a) the taxpayer subsequently refuses to agree to an extension request by the
             48497      commission; and

             48498          (b) the three-year period under Subsection (3) expires before the commission completes
             48499      the audit.
             48500          (7) An assessment under Subsection (6) shall be:
             48501          (a) for the time period for which the commission could not make an assessment because
             48502      of the expiration of the three-year period; and
             48503          (b) in an amount equal to the difference between:
             48504          (i) the commission's estimate of the amount of taxes the taxpayer would have been
             48505      assessed for the time period described in Subsection (7)(a); and
             48506          (ii) the amount of taxes the taxpayer actually paid for the time period described in
             48507      Subsection (7)(a).
             48508          (8) A taxpayer shall:
             48509          (a) notify the commission within 90 days after a final determination of a change made in
             48510      a taxpayer's net income on the taxpayer's federal estate tax return if:
             48511          (i) the change is made because:
             48512          (A) the taxpayer filed an amended federal return; or
             48513          (B) of an action by the federal government; and
             48514          (ii) the change affects the taxpayer's state tax liability; and
             48515          (b) if the taxpayer is required to notify the commission of a change as provided in
             48516      Subsection (8)(a)(i), file a copy of:
             48517          (i) the amended federal return; and
             48518          (ii) an amended state return which conforms to the changes on the federal return.
             48519          (9) (a) The commission may assess a deficiency in state estate taxes as a result of a
             48520      change in a taxpayer's net income under Subsection (8):
             48521          (i) within three years after a taxpayer files an amended return under Subsection (8)(b) if
             48522      the taxpayer files an amended return; or
             48523          (ii) within six years after the change if a taxpayer does not file an amended return under
             48524      Subsection (8)(b).
             48525          (b) The amount of a deficiency assessed under Subsection (9)(a) may not exceed the

             48526      amount of the increase in Utah tax attributable to the change in the taxpayer's net income under
             48527      Subsection (8)(a).
             48528          (10) (a) Except as provided in Subsection (10)(b), the commission may not make a
             48529      credit or refund unless the taxpayer files a claim with the commission within three years of the
             48530      date of overpayment.
             48531          (b) Notwithstanding Subsection (10)(a), beginning on July 1, 1998, the commission
             48532      shall extend the period for a taxpayer to file a claim under Subsection (10)(a) if:
             48533          (i) the three-year period under Subsection (10)(a) has not expired; and
             48534          (ii) the commission and the taxpayer sign a written agreement:
             48535          (A) authorizing the extension; and
             48536          (B) providing for the length of the extension.
             48537          (11) Any party to a proceeding before the district court concerning the tax imposed by
             48538      this chapter, including the commission, may appeal from the order, judgment, or decree entered
             48539      by the district court.
             48540          Section 1018. Section 59-12-102 is amended to read:
             48541           59-12-102. Definitions.
             48542          As used in this chapter:
             48543          (1) (a) "Admission or user fees" includes season passes.
             48544          (b) "Admission or user fees" does not include annual membership dues to private
             48545      organizations.
             48546          (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
             48547      Section 59-12-102.1 .
             48548          (3) "Agreement combined tax rate" means the sum of the tax rates:
             48549          (a) listed under Subsection (4); and
             48550          (b) that are imposed within a local taxing jurisdiction.
             48551          (4) "Agreement sales and use tax" means a tax imposed under:
             48552          (a) Subsection 59-12-103 (2)(a)(i);
             48553          (b) Subsection 59-12-103 (2)(b)(i);

             48554          (c) Subsection 59-12-103 (2)(c)(i);
             48555          (d) Subsection 59-12-103 (2)(d)(i);
             48556          (e) Subsection 59-12-103 (2)(e)(ii)(A);
             48557          (f) Subsection 59-12-103 (2)(e)(iii)(A);
             48558          (g) Section 59-12-204 ;
             48559          (h) Section 59-12-401 ;
             48560          (i) Section 59-12-402 ;
             48561          (j) Section 59-12-501 ;
             48562          (k) Section 59-12-502 ;
             48563          (l) Section 59-12-703 ;
             48564          (m) Section 59-12-802 ;
             48565          (n) Section 59-12-804 ;
             48566          (o) Section 59-12-1001 ;
             48567          (p) Section 59-12-1102 ;
             48568          (q) Section 59-12-1302 ;
             48569          (r) Section 59-12-1402 ;
             48570          (s) Section 59-12-1503 ; or
             48571          (t) Section 59-12-1703 .
             48572          (5) "Aircraft" is as defined in Section 72-10-102 .
             48573          (6) "Alcoholic beverage" means a beverage that:
             48574          (a) is suitable for human consumption; and
             48575          (b) contains .5% or more alcohol by volume.
             48576          (7) "Area agency on aging" is as defined in Section 62A-3-101 .
             48577          (8) "Assisted amusement device" means an amusement device, skill device, or ride
             48578      device that is started and stopped by an individual:
             48579          (a) who is not the purchaser or renter of the right to use or operate the amusement
             48580      device, skill device, or ride device; and
             48581          (b) at the direction of the seller of the right to use the amusement device, skill device, or

             48582      ride device.
             48583          (9) "Assisted cleaning or washing of tangible personal property" means cleaning or
             48584      washing of tangible personal property if the cleaning or washing labor is primarily performed by
             48585      an individual:
             48586          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             48587      property; and
             48588          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             48589      property.
             48590          (10) "Authorized carrier" means:
             48591          (a) in the case of vehicles operated over public highways, the holder of credentials
             48592      indicating that the vehicle is or will be operated pursuant to both the International Registration
             48593      Plan and the International Fuel Tax Agreement;
             48594          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             48595      certificate or air carrier's operating certificate; or
             48596          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             48597      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             48598          (11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the
             48599      following that is used as the primary source of energy to produce fuel or electricity:
             48600          (i) material from a plant or tree; or
             48601          (ii) other organic matter that is available on a renewable basis, including:
             48602          (A) slash and brush from forests and woodlands;
             48603          (B) animal waste;
             48604          (C) methane produced:
             48605          (I) at landfills; or
             48606          (II) as a byproduct of the treatment of wastewater residuals;
             48607          (D) aquatic plants; and
             48608          (E) agricultural products.
             48609          (b) "Biomass energy" does not include:

             48610          (i) black liquor;
             48611          (ii) treated woods; or
             48612          (iii) biomass from municipal solid waste other than methane produced:
             48613          (A) at landfills; or
             48614          (B) as a byproduct of the treatment of wastewater residuals.
             48615          (12) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             48616      property if:
             48617          (i) one or more of the items of tangible personal property is food and food ingredients;
             48618      and
             48619          (ii) the items of tangible personal property are:
             48620          (A) distinct and identifiable; and
             48621          (B) sold for one price that is not itemized.
             48622          (b) "Bundled transaction" does not include the sale of tangible personal property if the
             48623      sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
             48624      tangible personal property included in the transaction.
             48625          (c) For purposes of Subsection (12)(a)(ii)(A), tangible personal property that is distinct
             48626      and identifiable does not include:
             48627          (i) packaging that:
             48628          (A) accompanies the sale of the tangible personal property; and
             48629          (B) is incidental or immaterial to the sale of the tangible personal property;
             48630          (ii) tangible personal property provided free of charge with the purchase of another item
             48631      of tangible personal property; or
             48632          (iii) an item of tangible personal property included in the definition of "purchase price."
             48633          (d) For purposes of Subsection (12)(c)(ii), an item of tangible personal property is
             48634      provided free of charge with the purchase of another item of tangible personal property if the
             48635      sales price of the purchased item of tangible personal property does not vary depending on the
             48636      inclusion of the tangible personal property provided free of charge.
             48637          (13) "Certified automated system" means software certified by the governing board of

             48638      the agreement in accordance with Section 59-12-102.1 that:
             48639          (a) calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
             48640          (i) on a transaction; and
             48641          (ii) in the states that are members of the agreement;
             48642          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             48643      member of the agreement; and
             48644          (c) maintains a record of the transaction described in Subsection (13)(a)(i).
             48645          (14) "Certified service provider" means an agent certified:
             48646          (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
             48647      and
             48648          (b) to perform all of a seller's sales and use tax functions for an agreement sales and use
             48649      tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
             48650      own purchases.
             48651          (15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
             48652      suitable for general use.
             48653          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             48654      Administrative Rulemaking Act, the commission shall make rules:
             48655          (i) listing the items that constitute "clothing"; and
             48656          (ii) that are consistent with the list of items that constitute "clothing" under the
             48657      agreement.
             48658          (16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             48659          (17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             48660      fuels that does not constitute industrial use under Subsection (42) or residential use under
             48661      Subsection (80).
             48662          (18) (a) "Common carrier" means a person engaged in or transacting the business of
             48663      transporting passengers, freight, merchandise, or other property for hire within this state.
             48664          (b) (i) "Common carrier" does not include a person who, at the time the person is
             48665      traveling to or from that person's place of employment, transports a passenger to or from the

             48666      passenger's place of employment.
             48667          (ii) For purposes of Subsection (18)(b)(i), in accordance with [Title 63, Chapter 46a]
             48668      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules
             48669      defining what constitutes a person's place of employment.
             48670          (19) "Component part" includes:
             48671          (a) poultry, dairy, and other livestock feed, and their components;
             48672          (b) baling ties and twine used in the baling of hay and straw;
             48673          (c) fuel used for providing temperature control of orchards and commercial
             48674      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             48675      off-highway type farm machinery; and
             48676          (d) feed, seeds, and seedlings.
             48677          (20) "Computer" means an electronic device that accepts information:
             48678          (a) (i) in digital form; or
             48679          (ii) in a form similar to digital form; and
             48680          (b) manipulates that information for a result based on a sequence of instructions.
             48681          (21) "Computer software" means a set of coded instructions designed to cause:
             48682          (a) a computer to perform a task; or
             48683          (b) automatic data processing equipment to perform a task.
             48684          (22) "Construction materials" means any tangible personal property that will be
             48685      converted into real property.
             48686          (23) "Delivered electronically" means delivered to a purchaser by means other than
             48687      tangible storage media.
             48688          (24) (a) "Delivery charge" means a charge:
             48689          (i) by a seller of:
             48690          (A) tangible personal property; or
             48691          (B) services; and
             48692          (ii) for preparation and delivery of the tangible personal property or services described
             48693      in Subsection (24)(a)(i) to a location designated by the purchaser.

             48694          (b) "Delivery charge" includes a charge for the following:
             48695          (i) transportation;
             48696          (ii) shipping;
             48697          (iii) postage;
             48698          (iv) handling;
             48699          (v) crating; or
             48700          (vi) packing.
             48701          (25) (a) "Dental prosthesis" means the following if fabricated in a laboratory:
             48702          (i) a bridge;
             48703          (ii) a crown if that crown covers at least 75% of a tooth structure;
             48704          (iii) a denture;
             48705          (iv) an implant;
             48706          (v) an orthodontic device designed to:
             48707          (A) retain the position or spacing of teeth; and
             48708          (B) replace a missing tooth;
             48709          (vi) a partial denture; or
             48710          (vii) a device similar to Subsections (25)(a)(i) through (vi).
             48711          (b) "Dental prosthesis" does not include an appliance or device, other than a device
             48712      described in Subsection (25)(a), if that appliance or device is used in orthodontic therapy to
             48713      apply force to the teeth and their supporting structures to:
             48714          (i) produce changes in their relationship to each other; and
             48715          (ii) control their growth and development.
             48716          (26) "Dietary supplement" means a product, other than tobacco, that:
             48717          (a) is intended to supplement the diet;
             48718          (b) contains one or more of the following dietary ingredients:
             48719          (i) a vitamin;
             48720          (ii) a mineral;
             48721          (iii) an herb or other botanical;

             48722          (iv) an amino acid;
             48723          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             48724      dietary intake; or
             48725          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             48726      described in Subsections (26)(b)(i) through (v);
             48727          (c) (i) except as provided in Subsection (26)(c)(ii), is intended for ingestion in:
             48728          (A) tablet form;
             48729          (B) capsule form;
             48730          (C) powder form;
             48731          (D) softgel form;
             48732          (E) gelcap form; or
             48733          (F) liquid form; or
             48734          (ii) notwithstanding Subsection (26)(c)(i), if the product is not intended for ingestion in
             48735      a form described in Subsections (26)(c)(i)(A) through (F), is not represented:
             48736          (A) as conventional food; and
             48737          (B) for use as a sole item of:
             48738          (I) a meal; or
             48739          (II) the diet; and
             48740          (d) is required to be labeled as a dietary supplement:
             48741          (i) identifiable by the "Supplemental Facts" box found on the label; and
             48742          (ii) as required by 21 C.F.R. Sec. 101.36.
             48743          (27) (a) "Direct mail" means printed material delivered or distributed by United States
             48744      mail or other delivery service:
             48745          (i) to:
             48746          (A) a mass audience; or
             48747          (B) addressees on a mailing list provided by a purchaser of the mailing list; and
             48748          (ii) if the cost of the printed material is not billed directly to the recipients.
             48749          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a

             48750      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             48751          (c) "Direct mail" does not include multiple items of printed material delivered to a single
             48752      address.
             48753          (28) (a) "Disposable home medical equipment or supplies" means medical equipment or
             48754      supplies that:
             48755          (i) cannot withstand repeated use; and
             48756          (ii) are purchased by, for, or on behalf of a person other than:
             48757          (A) a health care facility as defined in Section 26-21-2 ;
             48758          (B) a health care provider as defined in Section 78-14-3 ;
             48759          (C) an office of a health care provider described in Subsection (28)(a)(ii)(B); or
             48760          (D) a person similar to a person described in Subsections (28)(a)(ii)(A) through (C).
             48761          (b) "Disposable home medical equipment or supplies" does not include:
             48762          (i) a drug;
             48763          (ii) durable medical equipment;
             48764          (iii) a hearing aid;
             48765          (iv) a hearing aid accessory;
             48766          (v) mobility enhancing equipment; or
             48767          (vi) tangible personal property used to correct impaired vision, including:
             48768          (A) eyeglasses; or
             48769          (B) contact lenses.
             48770          (c) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             48771      Administrative Rulemaking Act, the commission may by rule define what constitutes medical
             48772      equipment or supplies.
             48773          (29) (a) "Drug" means a compound, substance, or preparation, or a component of a
             48774      compound, substance, or preparation that is:
             48775          (i) recognized in:
             48776          (A) the official United States Pharmacopoeia;
             48777          (B) the official Homeopathic Pharmacopoeia of the United States;

             48778          (C) the official National Formulary; or
             48779          (D) a supplement to a publication listed in Subsections (29)(a)(i)(A) through (C);
             48780          (ii) intended for use in the:
             48781          (A) diagnosis of disease;
             48782          (B) cure of disease;
             48783          (C) mitigation of disease;
             48784          (D) treatment of disease; or
             48785          (E) prevention of disease; or
             48786          (iii) intended to affect:
             48787          (A) the structure of the body; or
             48788          (B) any function of the body.
             48789          (b) "Drug" does not include:
             48790          (i) food and food ingredients;
             48791          (ii) a dietary supplement;
             48792          (iii) an alcoholic beverage; or
             48793          (iv) a prosthetic device.
             48794          (30) (a) Except as provided in Subsection (30)(c), "durable medical equipment" means
             48795      equipment that:
             48796          (i) can withstand repeated use;
             48797          (ii) is primarily and customarily used to serve a medical purpose;
             48798          (iii) generally is not useful to a person in the absence of illness or injury; and
             48799          (iv) is not worn in or on the body.
             48800          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             48801      equipment described in Subsection (30)(a).
             48802          (c) Notwithstanding Subsection (30)(a), "durable medical equipment" does not include
             48803      mobility enhancing equipment.
             48804          (31) "Electronic" means:
             48805          (a) relating to technology; and

             48806          (b) having:
             48807          (i) electrical capabilities;
             48808          (ii) digital capabilities;
             48809          (iii) magnetic capabilities;
             48810          (iv) wireless capabilities;
             48811          (v) optical capabilities;
             48812          (vi) electromagnetic capabilities; or
             48813          (vii) capabilities similar to Subsections (31)(b)(i) through (vi).
             48814          (32) "Employee" is as defined in Section 59-10-401 .
             48815          (33) "Fixed guideway" means a public transit facility that uses and occupies:
             48816          (a) rail for the use of public transit; or
             48817          (b) a separate right-of-way for the use of public transit.
             48818          (34) (a) "Food and food ingredients" means substances:
             48819          (i) regardless of whether the substances are in:
             48820          (A) liquid form;
             48821          (B) concentrated form;
             48822          (C) solid form;
             48823          (D) frozen form;
             48824          (E) dried form; or
             48825          (F) dehydrated form; and
             48826          (ii) that are:
             48827          (A) sold for:
             48828          (I) ingestion by humans; or
             48829          (II) chewing by humans; and
             48830          (B) consumed for the substance's:
             48831          (I) taste; or
             48832          (II) nutritional value.
             48833          (b) "Food and food ingredients" includes an item described in Subsection (66)(b)(iii).

             48834          (c) "Food and food ingredients" does not include:
             48835          (i) an alcoholic beverage;
             48836          (ii) tobacco; or
             48837          (iii) prepared food.
             48838          (35) (a) "Fundraising sales" means sales:
             48839          (i) (A) made by a school; or
             48840          (B) made by a school student;
             48841          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             48842      materials, or provide transportation; and
             48843          (iii) that are part of an officially sanctioned school activity.
             48844          (b) For purposes of Subsection (35)(a)(iii), "officially sanctioned school activity" means
             48845      a school activity:
             48846          (i) that is conducted in accordance with a formal policy adopted by the school or school
             48847      district governing the authorization and supervision of fundraising activities;
             48848          (ii) that does not directly or indirectly compensate an individual teacher or other
             48849      educational personnel by direct payment, commissions, or payment in kind; and
             48850          (iii) the net or gross revenues from which are deposited in a dedicated account
             48851      controlled by the school or school district.
             48852          (36) "Geothermal energy" means energy contained in heat that continuously flows
             48853      outward from the earth that is used as the sole source of energy to produce electricity.
             48854          (37) "Governing board of the agreement" means the governing board of the agreement
             48855      that is:
             48856          (a) authorized to administer the agreement; and
             48857          (b) established in accordance with the agreement.
             48858          (38) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             48859          (i) the executive branch of the state, including all departments, institutions, boards,
             48860      divisions, bureaus, offices, commissions, and committees;
             48861          (ii) the judicial branch of the state, including the courts, the Judicial Council, the Office

             48862      of the Court Administrator, and similar administrative units in the judicial branch;
             48863          (iii) the legislative branch of the state, including the House of Representatives, the
             48864      Senate, the Legislative Printing Office, the Office of Legislative Research and General Counsel,
             48865      the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal Analyst;
             48866          (iv) the National Guard;
             48867          (v) an independent entity as defined in Section 63E-1-102 ; or
             48868          (vi) a political subdivision as defined in Section 17B-1-102 .
             48869          (b) "Governmental entity" does not include the state systems of public and higher
             48870      education, including:
             48871          (i) a college campus of the Utah College of Applied Technology;
             48872          (ii) a school;
             48873          (iii) the State Board of Education;
             48874          (iv) the State Board of Regents; or
             48875          (v) a state institution of higher education as defined in Section 53B-3-102 .
             48876          (39) (a) "Hearing aid" means:
             48877          (i) an instrument or device having an electronic component that is designed to:
             48878          (A) (I) improve impaired human hearing; or
             48879          (II) correct impaired human hearing; and
             48880          (B) (I) be worn in the human ear; or
             48881          (II) affixed behind the human ear;
             48882          (ii) an instrument or device that is surgically implanted into the cochlea; or
             48883          (iii) a telephone amplifying device.
             48884          (b) "Hearing aid" does not include:
             48885          (i) except as provided in Subsection (39)(a)(i)(B) or (39)(a)(ii), an instrument or device
             48886      having an electronic component that is designed to be worn on the body;
             48887          (ii) except as provided in Subsection (39)(a)(iii), an assistive listening device or system
             48888      designed to be used by one individual, including:
             48889          (A) a personal amplifying system;

             48890          (B) a personal FM system;
             48891          (C) a television listening system; or
             48892          (D) a device or system similar to a device or system described in Subsections
             48893      (39)(b)(ii)(A) through (C); or
             48894          (iii) an assistive listening device or system designed to be used by more than one
             48895      individual, including:
             48896          (A) a device or system installed in:
             48897          (I) an auditorium;
             48898          (II) a church;
             48899          (III) a conference room;
             48900          (IV) a synagogue; or
             48901          (V) a theater; or
             48902          (B) a device or system similar to a device or system described in Subsections
             48903      (39)(b)(iii)(A)(I) through (V).
             48904          (40) (a) "Hearing aid accessory" means a hearing aid:
             48905          (i) component;
             48906          (ii) attachment; or
             48907          (iii) accessory.
             48908          (b) "Hearing aid accessory" includes:
             48909          (i) a hearing aid neck loop;
             48910          (ii) a hearing aid cord;
             48911          (iii) a hearing aid ear mold;
             48912          (iv) hearing aid tubing;
             48913          (v) a hearing aid ear hook; or
             48914          (vi) a hearing aid remote control.
             48915          (c) "Hearing aid accessory" does not include:
             48916          (i) a component, attachment, or accessory designed to be used only with an:
             48917          (A) instrument or device described in Subsection (39)(b)(i); or

             48918          (B) assistive listening device or system described in Subsection (39)(b)(ii) or (iii); or
             48919          (ii) a hearing aid battery.
             48920          (41) "Hydroelectric energy" means water used as the sole source of energy to produce
             48921      electricity.
             48922          (42) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             48923      other fuels:
             48924          (a) in mining or extraction of minerals;
             48925          (b) in agricultural operations to produce an agricultural product up to the time of
             48926      harvest or placing the agricultural product into a storage facility, including:
             48927          (i) commercial greenhouses;
             48928          (ii) irrigation pumps;
             48929          (iii) farm machinery;
             48930          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             48931      registered under Title 41, Chapter 1a, Part 2, Registration; and
             48932          (v) other farming activities;
             48933          (c) in manufacturing tangible personal property at an establishment described in SIC
             48934      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             48935      Executive Office of the President, Office of Management and Budget;
             48936          (d) by a scrap recycler if:
             48937          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             48938      one or more of the following items into prepared grades of processed materials for use in new
             48939      products:
             48940          (A) iron;
             48941          (B) steel;
             48942          (C) nonferrous metal;
             48943          (D) paper;
             48944          (E) glass;
             48945          (F) plastic;

             48946          (G) textile; or
             48947          (H) rubber; and
             48948          (ii) the new products under Subsection (42)(d)(i) would otherwise be made with
             48949      nonrecycled materials; or
             48950          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             48951      cogeneration facility as defined in Section 54-2-1 .
             48952          (43) (a) Except as provided in Subsection (43)(b), "installation charge" means a charge
             48953      for installing tangible personal property.
             48954          (b) Notwithstanding Subsection (43)(a), "installation charge" does not include a charge
             48955      for repairs or renovations of tangible personal property.
             48956          (44) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             48957      personal property for:
             48958          (i) (A) a fixed term; or
             48959          (B) an indeterminate term; and
             48960          (ii) consideration.
             48961          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             48962      amount of consideration may be increased or decreased by reference to the amount realized
             48963      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             48964      Code.
             48965          (c) "Lease" or "rental" does not include:
             48966          (i) a transfer of possession or control of property under a security agreement or
             48967      deferred payment plan that requires the transfer of title upon completion of the required
             48968      payments;
             48969          (ii) a transfer of possession or control of property under an agreement that requires the
             48970      transfer of title:
             48971          (A) upon completion of required payments; and
             48972          (B) if the payment of an option price does not exceed the greater of:
             48973          (I) $100; or

             48974          (II) 1% of the total required payments; or
             48975          (iii) providing tangible personal property along with an operator for a fixed period of
             48976      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             48977      designed.
             48978          (d) For purposes of Subsection (44)(c)(iii), an operator is necessary for equipment to
             48979      perform as designed if the operator's duties exceed the:
             48980          (i) set-up of tangible personal property;
             48981          (ii) maintenance of tangible personal property; or
             48982          (iii) inspection of tangible personal property.
             48983          (45) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             48984      if the tangible storage media is not physically transferred to the purchaser.
             48985          (46) "Local taxing jurisdiction" means a:
             48986          (a) county that is authorized to impose an agreement sales and use tax;
             48987          (b) city that is authorized to impose an agreement sales and use tax; or
             48988          (c) town that is authorized to impose an agreement sales and use tax.
             48989          (47) "Manufactured home" is as defined in Section 58-56-3 .
             48990          (48) For purposes of Section 59-12-104 , "manufacturing facility" means:
             48991          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             48992      Industrial Classification Manual of the federal Executive Office of the President, Office of
             48993      Management and Budget;
             48994          (b) a scrap recycler if:
             48995          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             48996      one or more of the following items into prepared grades of processed materials for use in new
             48997      products:
             48998          (A) iron;
             48999          (B) steel;
             49000          (C) nonferrous metal;
             49001          (D) paper;

             49002          (E) glass;
             49003          (F) plastic;
             49004          (G) textile; or
             49005          (H) rubber; and
             49006          (ii) the new products under Subsection (48)(b)(i) would otherwise be made with
             49007      nonrecycled materials; or
             49008          (c) a cogeneration facility as defined in Section 54-2-1 .
             49009          (49) "Member of the immediate family of the producer" means a person who is related
             49010      to a producer described in Subsection 59-12-104 (20)(a) as a:
             49011          (a) child or stepchild, regardless of whether the child or stepchild is:
             49012          (i) an adopted child or adopted stepchild; or
             49013          (ii) a foster child or foster stepchild;
             49014          (b) grandchild or stepgrandchild;
             49015          (c) grandparent or stepgrandparent;
             49016          (d) nephew or stepnephew;
             49017          (e) niece or stepniece;
             49018          (f) parent or stepparent;
             49019          (g) sibling or stepsibling;
             49020          (h) spouse;
             49021          (i) person who is the spouse of a person described in Subsections (49)(a) through (g);
             49022      or
             49023          (j) person similar to a person described in Subsections (49)(a) through (i) as determined
             49024      by the commission by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter
             49025      3, Utah Administrative Rulemaking Act.
             49026          (50) "Mobile home" is as defined in Section 58-56-3 .
             49027          (51) "Mobile telecommunications service" is as defined in the Mobile
             49028      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             49029          (52) (a) Except as provided in Subsection (52)(c), "mobility enhancing equipment"

             49030      means equipment that is:
             49031          (i) primarily and customarily used to provide or increase the ability to move from one
             49032      place to another;
             49033          (ii) appropriate for use in a:
             49034          (A) home; or
             49035          (B) motor vehicle; and
             49036          (iii) not generally used by persons with normal mobility.
             49037          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             49038      the equipment described in Subsection (52)(a).
             49039          (c) Notwithstanding Subsection (52)(a), "mobility enhancing equipment" does not
             49040      include:
             49041          (i) a motor vehicle;
             49042          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             49043      vehicle manufacturer;
             49044          (iii) durable medical equipment; or
             49045          (iv) a prosthetic device.
             49046          (53) "Model 1 seller" means a seller that has selected a certified service provider as the
             49047      seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
             49048      use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
             49049      seller's own purchases.
             49050          (54) "Model 2 seller" means a seller that:
             49051          (a) except as provided in Subsection (54)(b), has selected a certified automated system
             49052      to perform the seller's sales tax functions for agreement sales and use taxes; and
             49053          (b) notwithstanding Subsection (54)(a), retains responsibility for remitting all of the
             49054      sales tax:
             49055          (i) collected by the seller; and
             49056          (ii) to the appropriate local taxing jurisdiction.
             49057          (55) (a) Subject to Subsection (55)(b), "model 3 seller" means a seller that has:

             49058          (i) sales in at least five states that are members of the agreement;
             49059          (ii) total annual sales revenues of at least $500,000,000;
             49060          (iii) a proprietary system that calculates the amount of tax:
             49061          (A) for an agreement sales and use tax; and
             49062          (B) due to each local taxing jurisdiction; and
             49063          (iv) entered into a performance agreement with the governing board of the agreement.
             49064          (b) For purposes of Subsection (55)(a), "model 3 seller" includes an affiliated group of
             49065      sellers using the same proprietary system.
             49066          (56) "Modular home" means a modular unit as defined in Section 58-56-3 .
             49067          (57) "Motor vehicle" is as defined in Section 41-1a-102 .
             49068          (58) "Oil shale" means a group of fine black to dark brown shales containing bituminous
             49069      material that yields petroleum upon distillation.
             49070          (59) (a) "Other fuels" means products that burn independently to produce heat or
             49071      energy.
             49072          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             49073      personal property.
             49074          (60) "Pawnbroker" is as defined in Section 13-32a-102 .
             49075          (61) "Pawn transaction" is as defined in Section 13-32a-102 .
             49076          (62) (a) "Permanently attached to real property" means that for tangible personal
             49077      property attached to real property:
             49078          (i) the attachment of the tangible personal property to the real property:
             49079          (A) is essential to the use of the tangible personal property; and
             49080          (B) suggests that the tangible personal property will remain attached to the real
             49081      property in the same place over the useful life of the tangible personal property; or
             49082          (ii) if the tangible personal property is detached from the real property, the detachment
             49083      would:
             49084          (A) cause substantial damage to the tangible personal property; or
             49085          (B) require substantial alteration or repair of the real property to which the tangible

             49086      personal property is attached.
             49087          (b) "Permanently attached to real property" includes:
             49088          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             49089          (A) essential to the operation of the tangible personal property; and
             49090          (B) attached only to facilitate the operation of the tangible personal property;
             49091          (ii) a temporary detachment of tangible personal property from real property for a repair
             49092      or renovation if the repair or renovation is performed where the tangible personal property and
             49093      real property are located; or
             49094          (iii) an attachment of the following tangible personal property to real property,
             49095      regardless of whether the attachment to real property is only through a line that supplies water,
             49096      electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
             49097      rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             49098      Rulemaking Act:
             49099          (A) property attached to oil, gas, or water pipelines, other than the property listed in
             49100      Subsection (62)(c)(iii);
             49101          (B) a hot water heater;
             49102          (C) a water softener system; or
             49103          (D) a water filtration system, other than a water filtration system manufactured as part
             49104      of a refrigerator.
             49105          (c) "Permanently attached to real property" does not include:
             49106          (i) the attachment of portable or movable tangible personal property to real property if
             49107      that portable or movable tangible personal property is attached to real property only for:
             49108          (A) convenience;
             49109          (B) stability; or
             49110          (C) for an obvious temporary purpose;
             49111          (ii) the detachment of tangible personal property from real property other than the
             49112      detachment described in Subsection (62)(b)(ii); or
             49113          (iii) an attachment of the following tangible personal property to real property if the

             49114      attachment to real property is only through a line that supplies water, electricity, gas, telephone,
             49115      cable, or supplies a similar item as determined by the commission by rule made in accordance
             49116      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             49117          (A) a refrigerator;
             49118          (B) a washer;
             49119          (C) a dryer;
             49120          (D) a stove;
             49121          (E) a television;
             49122          (F) a computer;
             49123          (G) a telephone; or
             49124          (H) tangible personal property similar to Subsections (62)(c)(iii)(A) through (G) as
             49125      determined by the commission by rule made in accordance with [Title 63, Chapter 46a] Title
             49126      63G, Chapter 3, Utah Administrative Rulemaking Act.
             49127          (63) "Person" includes any individual, firm, partnership, joint venture, association,
             49128      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             49129      municipality, district, or other local governmental entity of the state, or any group or
             49130      combination acting as a unit.
             49131          (64) "Place of primary use":
             49132          (a) for telephone service other than mobile telecommunications service, means the
             49133      street address representative of where the purchaser's use of the telephone service primarily
             49134      occurs, which shall be:
             49135          (i) the residential street address of the purchaser; or
             49136          (ii) the primary business street address of the purchaser; or
             49137          (b) for mobile telecommunications service, is as defined in the Mobile
             49138      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             49139          (65) "Postproduction" means an activity related to the finishing or duplication of a
             49140      medium described in Subsection 59-12-104 (56)(a).
             49141          (66) (a) "Prepared food" means:

             49142          (i) food:
             49143          (A) sold in a heated state; or
             49144          (B) heated by a seller;
             49145          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             49146      item; or
             49147          (iii) except as provided in Subsection (66)(c), food sold with an eating utensil provided
             49148      by the seller, including a:
             49149          (A) plate;
             49150          (B) knife;
             49151          (C) fork;
             49152          (D) spoon;
             49153          (E) glass;
             49154          (F) cup;
             49155          (G) napkin; or
             49156          (H) straw.
             49157          (b) "Prepared food" does not include:
             49158          (i) food that a seller only:
             49159          (A) cuts;
             49160          (B) repackages; or
             49161          (C) pasteurizes; or
             49162          (ii) (A) the following:
             49163          (I) raw egg;
             49164          (II) raw fish;
             49165          (III) raw meat;
             49166          (IV) raw poultry; or
             49167          (V) a food containing an item described in Subsections (66)(b)(ii)(A)(I) through (IV);
             49168      and
             49169          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the

             49170      Food and Drug Administration's Food Code that a consumer cook the items described in
             49171      Subsection (66)(b)(ii)(A) to prevent food borne illness; or
             49172          (iii) the following if sold without eating utensils provided by the seller:
             49173          (A) food and food ingredients sold by a seller if the seller's proper primary classification
             49174      under the 2002 North American Industry Classification System of the federal Executive Office
             49175      of the President, Office of Management and Budget, is manufacturing in Sector 311, Food
             49176      Manufacturing, except for Subsector 3118, Bakeries and Tortilla Manufacturing;
             49177          (B) food and food ingredients sold in an unheated state:
             49178          (I) by weight or volume; and
             49179          (II) as a single item; or
             49180          (C) a bakery item, including:
             49181          (I) a bagel;
             49182          (II) a bar;
             49183          (III) a biscuit;
             49184          (IV) bread;
             49185          (V) a bun;
             49186          (VI) a cake;
             49187          (VII) a cookie;
             49188          (VIII) a croissant;
             49189          (IX) a danish;
             49190          (X) a donut;
             49191          (XI) a muffin;
             49192          (XII) a pastry;
             49193          (XIII) a pie;
             49194          (XIV) a roll;
             49195          (XV) a tart;
             49196          (XVI) a torte; or
             49197          (XVII) a tortilla.

             49198          (c) Notwithstanding Subsection (66)(a)(iii), an eating utensil provided by the seller does
             49199      not include the following used to transport the food:
             49200          (i) a container; or
             49201          (ii) packaging.
             49202          (67) "Prescription" means an order, formula, or recipe that is issued:
             49203          (a) (i) orally;
             49204          (ii) in writing;
             49205          (iii) electronically; or
             49206          (iv) by any other manner of transmission; and
             49207          (b) by a licensed practitioner authorized by the laws of a state.
             49208          (68) (a) Except as provided in Subsection (68)(b)(ii) or (iii), "prewritten computer
             49209      software" means computer software that is not designed and developed:
             49210          (i) by the author or other creator of the computer software; and
             49211          (ii) to the specifications of a specific purchaser.
             49212          (b) "Prewritten computer software" includes:
             49213          (i) a prewritten upgrade to computer software if the prewritten upgrade to the
             49214      computer software is not designed and developed:
             49215          (A) by the author or other creator of the computer software; and
             49216          (B) to the specifications of a specific purchaser;
             49217          (ii) notwithstanding Subsection (68)(a), computer software designed and developed by
             49218      the author or other creator of the computer software to the specifications of a specific purchaser
             49219      if the computer software is sold to a person other than the purchaser; or
             49220          (iii) notwithstanding Subsection (68)(a) and except as provided in Subsection (68)(c),
             49221      prewritten computer software or a prewritten portion of prewritten computer software:
             49222          (A) that is modified or enhanced to any degree; and
             49223          (B) if the modification or enhancement described in Subsection (68)(b)(iii)(A) is
             49224      designed and developed to the specifications of a specific purchaser.
             49225          (c) Notwithstanding Subsection (68)(b)(iii), "prewritten computer software" does not

             49226      include a modification or enhancement described in Subsection (68)(b)(iii) if the charges for the
             49227      modification or enhancement are:
             49228          (i) reasonable; and
             49229          (ii) separately stated on the invoice or other statement of price provided to the
             49230      purchaser.
             49231          (69) (a) "Prosthetic device" means a device that is worn on or in the body to:
             49232          (i) artificially replace a missing portion of the body;
             49233          (ii) prevent or correct a physical deformity or physical malfunction; or
             49234          (iii) support a weak or deformed portion of the body.
             49235          (b) "Prosthetic device" includes:
             49236          (i) parts used in the repairs or renovation of a prosthetic device;
             49237          (ii) replacement parts for a prosthetic device; or
             49238          (iii) a dental prosthesis.
             49239          (c) "Prosthetic device" does not include:
             49240          (i) corrective eyeglasses;
             49241          (ii) contact lenses; or
             49242          (iii) hearing aids.
             49243          (70) (a) "Protective equipment" means an item:
             49244          (i) for human wear; and
             49245          (ii) that is:
             49246          (A) designed as protection:
             49247          (I) to the wearer against injury or disease; or
             49248          (II) against damage or injury of other persons or property; and
             49249          (B) not suitable for general use.
             49250          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             49251      Administrative Rulemaking Act, the commission shall make rules:
             49252          (i) listing the items that constitute "protective equipment"; and
             49253          (ii) that are consistent with the list of items that constitute "protective equipment" under

             49254      the agreement.
             49255          (71) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             49256      printed matter, other than a photocopy:
             49257          (i) regardless of:
             49258          (A) characteristics;
             49259          (B) copyright;
             49260          (C) form;
             49261          (D) format;
             49262          (E) method of reproduction; or
             49263          (F) source; and
             49264          (ii) made available in printed or electronic format.
             49265          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             49266      Administrative Rulemaking Act, the commission may by rule define the term "photocopy."
             49267          (72) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             49268          (i) valued in money; and
             49269          (ii) for which tangible personal property or services are:
             49270          (A) sold;
             49271          (B) leased; or
             49272          (C) rented.
             49273          (b) "Purchase price" and "sales price" include:
             49274          (i) the seller's cost of the tangible personal property or services sold;
             49275          (ii) expenses of the seller, including:
             49276          (A) the cost of materials used;
             49277          (B) a labor cost;
             49278          (C) a service cost;
             49279          (D) interest;
             49280          (E) a loss;
             49281          (F) the cost of transportation to the seller; or

             49282          (G) a tax imposed on the seller; or
             49283          (iii) a charge by the seller for any service necessary to complete the sale.
             49284          (c) "Purchase price" and "sales price" do not include:
             49285          (i) a discount:
             49286          (A) in a form including:
             49287          (I) cash;
             49288          (II) term; or
             49289          (III) coupon;
             49290          (B) that is allowed by a seller;
             49291          (C) taken by a purchaser on a sale; and
             49292          (D) that is not reimbursed by a third party; or
             49293          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             49294      provided to the purchaser:
             49295          (A) the amount of a trade-in;
             49296          (B) the following from credit extended on the sale of tangible personal property or
             49297      services:
             49298          (I) interest charges;
             49299          (II) financing charges; or
             49300          (III) carrying charges;
             49301          (C) a tax or fee legally imposed directly on the consumer;
             49302          (D) a delivery charge; or
             49303          (E) an installation charge.
             49304          (73) "Purchaser" means a person to whom:
             49305          (a) a sale of tangible personal property is made; or
             49306          (b) a service is furnished.
             49307          (74) "Regularly rented" means:
             49308          (a) rented to a guest for value three or more times during a calendar year; or
             49309          (b) advertised or held out to the public as a place that is regularly rented to guests for

             49310      value.
             49311          (75) "Renewable energy" means:
             49312          (a) biomass energy;
             49313          (b) hydroelectric energy;
             49314          (c) geothermal energy;
             49315          (d) solar energy; or
             49316          (e) wind energy.
             49317          (76) (a) "Renewable energy production facility" means a facility that:
             49318          (i) uses renewable energy to produce electricity; and
             49319          (ii) has a production capacity of 20 kilowatts or greater.
             49320          (b) A facility is a renewable energy production facility regardless of whether the facility
             49321      is:
             49322          (i) connected to an electric grid; or
             49323          (ii) located on the premises of an electricity consumer.
             49324          (77) "Rental" is as defined in Subsection (44).
             49325          (78) "Repairs or renovations of tangible personal property" means:
             49326          (a) a repair or renovation of tangible personal property that is not permanently attached
             49327      to real property; or
             49328          (b) attaching tangible personal property to other tangible personal property if the other
             49329      tangible personal property to which the tangible personal property is attached is not
             49330      permanently attached to real property.
             49331          (79) "Research and development" means the process of inquiry or experimentation
             49332      aimed at the discovery of facts, devices, technologies, or applications and the process of
             49333      preparing those devices, technologies, or applications for marketing.
             49334          (80) "Residential use" means the use in or around a home, apartment building, sleeping
             49335      quarters, and similar facilities or accommodations.
             49336          (81) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             49337      than:

             49338          (a) resale;
             49339          (b) sublease; or
             49340          (c) subrent.
             49341          (82) (a) "Retailer" means any person engaged in a regularly organized business in
             49342      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             49343      who is selling to the user or consumer and not for resale.
             49344          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             49345      engaged in the business of selling to users or consumers within the state.
             49346          (83) (a) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
             49347      in any manner, of tangible personal property or any other taxable transaction under Subsection
             49348      59-12-103 (1), for consideration.
             49349          (b) "Sale" includes:
             49350          (i) installment and credit sales;
             49351          (ii) any closed transaction constituting a sale;
             49352          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             49353      chapter;
             49354          (iv) any transaction if the possession of property is transferred but the seller retains the
             49355      title as security for the payment of the price; and
             49356          (v) any transaction under which right to possession, operation, or use of any article of
             49357      tangible personal property is granted under a lease or contract and the transfer of possession
             49358      would be taxable if an outright sale were made.
             49359          (84) "Sale at retail" is as defined in Subsection (81).
             49360          (85) "Sale-leaseback transaction" means a transaction by which title to tangible personal
             49361      property that is subject to a tax under this chapter is transferred:
             49362          (a) by a purchaser-lessee;
             49363          (b) to a lessor;
             49364          (c) for consideration; and
             49365          (d) if:

             49366          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             49367      of the tangible personal property;
             49368          (ii) the sale of the tangible personal property to the lessor is intended as a form of
             49369      financing:
             49370          (A) for the property; and
             49371          (B) to the purchaser-lessee; and
             49372          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee is
             49373      required to:
             49374          (A) capitalize the property for financial reporting purposes; and
             49375          (B) account for the lease payments as payments made under a financing arrangement.
             49376          (86) "Sales price" is as defined in Subsection (72).
             49377          (87) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             49378      amounts charged by a school:
             49379          (i) sales that are directly related to the school's educational functions or activities
             49380      including:
             49381          (A) the sale of:
             49382          (I) textbooks;
             49383          (II) textbook fees;
             49384          (III) laboratory fees;
             49385          (IV) laboratory supplies; or
             49386          (V) safety equipment;
             49387          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             49388      that:
             49389          (I) a student is specifically required to wear as a condition of participation in a
             49390      school-related event or school-related activity; and
             49391          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             49392      place of ordinary clothing;
             49393          (C) sales of the following if the net or gross revenues generated by the sales are

             49394      deposited into a school district fund or school fund dedicated to school meals:
             49395          (I) food and food ingredients; or
             49396          (II) prepared food; or
             49397          (D) transportation charges for official school activities; or
             49398          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             49399      event or school-related activity.
             49400          (b) "Sales relating to schools" does not include:
             49401          (i) bookstore sales of items that are not educational materials or supplies;
             49402          (ii) except as provided in Subsection (87)(a)(i)(B):
             49403          (A) clothing;
             49404          (B) clothing accessories or equipment;
             49405          (C) protective equipment; or
             49406          (D) sports or recreational equipment; or
             49407          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             49408      event or school-related activity if the amounts paid or charged are passed through to a person:
             49409          (A) other than a:
             49410          (I) school;
             49411          (II) nonprofit organization authorized by a school board or a governing body of a
             49412      private school to organize and direct a competitive secondary school activity; or
             49413          (III) nonprofit association authorized by a school board or a governing body of a
             49414      private school to organize and direct a competitive secondary school activity; and
             49415          (B) that is required to collect sales and use taxes under this chapter.
             49416          (c) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             49417      Administrative Rulemaking Act, the commission may make rules defining the term "passed
             49418      through."
             49419          (88) For purposes of this section and Section 59-12-104 , "school":
             49420          (a) means:
             49421          (i) an elementary school or a secondary school that:

             49422          (A) is a:
             49423          (I) public school; or
             49424          (II) private school; and
             49425          (B) provides instruction for one or more grades kindergarten through 12; or
             49426          (ii) a public school district; and
             49427          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             49428          (89) "Seller" means a person that makes a sale, lease, or rental of:
             49429          (a) tangible personal property; or
             49430          (b) a service.
             49431          (90) (a) "Semiconductor fabricating, processing, research, or development materials"
             49432      means tangible personal property:
             49433          (i) used primarily in the process of:
             49434          (A) (I) manufacturing a semiconductor;
             49435          (II) fabricating a semiconductor; or
             49436          (III) research or development of a:
             49437          (Aa) semiconductor; or
             49438          (Bb) semiconductor manufacturing process; or
             49439          (B) maintaining an environment suitable for a semiconductor; or
             49440          (ii) consumed primarily in the process of:
             49441          (A) (I) manufacturing a semiconductor;
             49442          (II) fabricating a semiconductor; or
             49443          (III) research or development of a:
             49444          (Aa) semiconductor; or
             49445          (Bb) semiconductor manufacturing process; or
             49446          (B) maintaining an environment suitable for a semiconductor.
             49447          (b) "Semiconductor fabricating, processing, research, or development materials"
             49448      includes:
             49449          (i) parts used in the repairs or renovations of tangible personal property described in

             49450      Subsection (90)(a); or
             49451          (ii) a chemical, catalyst, or other material used to:
             49452          (A) produce or induce in a semiconductor a:
             49453          (I) chemical change; or
             49454          (II) physical change;
             49455          (B) remove impurities from a semiconductor; or
             49456          (C) improve the marketable condition of a semiconductor.
             49457          (91) "Senior citizen center" means a facility having the primary purpose of providing
             49458      services to the aged as defined in Section 62A-3-101 .
             49459          (92) "Simplified electronic return" means the electronic return:
             49460          (a) described in Section 318(C) of the agreement; and
             49461          (b) approved by the governing board of the agreement.
             49462          (93) "Solar energy" means the sun used as the sole source of energy for producing
             49463      electricity.
             49464          (94) (a) "Sports or recreational equipment" means an item:
             49465          (i) designed for human use; and
             49466          (ii) that is:
             49467          (A) worn in conjunction with:
             49468          (I) an athletic activity; or
             49469          (II) a recreational activity; and
             49470          (B) not suitable for general use.
             49471          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             49472      Administrative Rulemaking Act, the commission shall make rules:
             49473          (i) listing the items that constitute "sports or recreational equipment"; and
             49474          (ii) that are consistent with the list of items that constitute "sports or recreational
             49475      equipment" under the agreement.
             49476          (95) "State" means the state of Utah, its departments, and agencies.
             49477          (96) "Storage" means any keeping or retention of tangible personal property or any

             49478      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             49479      sale in the regular course of business.
             49480          (97) (a) "Tangible personal property" means personal property that:
             49481          (i) may be:
             49482          (A) seen;
             49483          (B) weighed;
             49484          (C) measured;
             49485          (D) felt; or
             49486          (E) touched; or
             49487          (ii) is in any manner perceptible to the senses.
             49488          (b) "Tangible personal property" includes:
             49489          (i) electricity;
             49490          (ii) water;
             49491          (iii) gas;
             49492          (iv) steam; or
             49493          (v) prewritten computer software.
             49494          (98) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
             49495      and require further processing other than mechanical blending before becoming finished
             49496      petroleum products.
             49497          (99) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             49498      software" means an item listed in Subsection (99)(b) if that item is purchased or leased primarily
             49499      to enable or facilitate one or more of the following to function:
             49500          (i) telecommunications switching or routing equipment, machinery, or software; or
             49501          (ii) telecommunications transmission equipment, machinery, or software.
             49502          (b) The following apply to Subsection (99)(a):
             49503          (i) a pole;
             49504          (ii) software;
             49505          (iii) a supplementary power supply;

             49506          (iv) temperature or environmental equipment or machinery;
             49507          (v) test equipment;
             49508          (vi) a tower; or
             49509          (vii) equipment, machinery, or software that functions similarly to an item listed in
             49510      Subsections (99)(b)(i) through (vi) as determined by the commission by rule made in
             49511      accordance with Subsection (99)(c).
             49512          (c) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             49513      Administrative Rulemaking Act, the commission may by rule define what constitutes equipment,
             49514      machinery, or software that functions similarly to an item listed in Subsections (99)(b)(i)
             49515      through (vi).
             49516          (100) "Telecommunications equipment, machinery, or software required for 911
             49517      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
             49518      Sec. 20.18.
             49519          (101) "Telecommunications maintenance or repair equipment, machinery, or software"
             49520      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             49521      one or more of the following, regardless of whether the equipment, machinery, or software is
             49522      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             49523      following:
             49524          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             49525          (b) telecommunications switching or routing equipment, machinery, or software; or
             49526          (c) telecommunications transmission equipment, machinery, or software.
             49527          (102) (a) "Telecommunications switching or routing equipment, machinery, or
             49528      software" means an item listed in Subsection (102)(b) if that item is purchased or leased
             49529      primarily for switching or routing:
             49530          (i) voice communications;
             49531          (ii) data communications; or
             49532          (iii) telephone service.
             49533          (b) The following apply to Subsection (102)(a):

             49534          (i) a bridge;
             49535          (ii) a computer;
             49536          (iii) a cross connect;
             49537          (iv) a modem;
             49538          (v) a multiplexer;
             49539          (vi) plug in circuitry;
             49540          (vii) a router;
             49541          (viii) software;
             49542          (ix) a switch; or
             49543          (x) equipment, machinery, or software that functions similarly to an item listed in
             49544      Subsections (102)(b)(i) through (ix) as determined by the commission by rule made in
             49545      accordance with Subsection (102)(c).
             49546          (c) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             49547      Administrative Rulemaking Act, the commission may by rule define what constitutes equipment,
             49548      machinery, or software that functions similarly to an item listed in Subsections (102)(b)(i)
             49549      through (ix).
             49550          (103) (a) "Telecommunications transmission equipment, machinery, or software" means
             49551      an item listed in Subsection (103)(b) if that item is purchased or leased primarily for sending,
             49552      receiving, or transporting:
             49553          (i) voice communications;
             49554          (ii) data communications; or
             49555          (iii) telephone service.
             49556          (b) The following apply to Subsection (103)(a):
             49557          (i) an amplifier;
             49558          (ii) a cable;
             49559          (iii) a closure;
             49560          (iv) a conduit;
             49561          (v) a controller;

             49562          (vi) a duplexer;
             49563          (vii) a filter;
             49564          (viii) an input device;
             49565          (ix) an input/output device;
             49566          (x) an insulator;
             49567          (xi) microwave machinery or equipment;
             49568          (xii) an oscillator;
             49569          (xiii) an output device;
             49570          (xiv) a pedestal;
             49571          (xv) a power converter;
             49572          (xvi) a power supply;
             49573          (xvii) a radio channel;
             49574          (xviii) a radio receiver;
             49575          (xix) a radio transmitter;
             49576          (xx) a repeater;
             49577          (xxi) software;
             49578          (xxii) a terminal;
             49579          (xxiii) a timing unit;
             49580          (xxiv) a transformer;
             49581          (xxv) a wire; or
             49582          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             49583      Subsections (103)(b)(i) through (xxv) as determined by the commission by rule made in
             49584      accordance with Subsection (103)(c).
             49585          (c) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             49586      Administrative Rulemaking Act, the commission may by rule define what constitutes equipment,
             49587      machinery, or software that functions similarly to an item listed in Subsections (103)(b)(i)
             49588      through (xxv).
             49589          (104) (a) "Telephone service" means a two-way transmission:

             49590          (i) by:
             49591          (A) wire;
             49592          (B) radio;
             49593          (C) lightwave; or
             49594          (D) other electromagnetic means; and
             49595          (ii) of one or more of the following:
             49596          (A) a sign;
             49597          (B) a signal;
             49598          (C) writing;
             49599          (D) an image;
             49600          (E) sound;
             49601          (F) a message;
             49602          (G) data; or
             49603          (H) other information of any nature.
             49604          (b) "Telephone service" includes:
             49605          (i) mobile telecommunications service;
             49606          (ii) private communications service; or
             49607          (iii) automated digital telephone answering service.
             49608          (c) "Telephone service" does not include a service or a transaction that a state or a
             49609      political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
             49610      Tax Freedom Act, Pub. L. No. 105-277.
             49611          (105) Notwithstanding where a call is billed or paid, "telephone service address" means:
             49612          (a) if the location described in this Subsection (105)(a) is known, the location of the
             49613      telephone service equipment:
             49614          (i) to which a call is charged; and
             49615          (ii) from which the call originates or terminates;
             49616          (b) if the location described in Subsection (105)(a) is not known but the location
             49617      described in this Subsection (105)(b) is known, the location of the origination point of the signal

             49618      of the telephone service first identified by:
             49619          (i) the telecommunications system of the seller; or
             49620          (ii) if the system used to transport the signal is not that of the seller, information
             49621      received by the seller from its service provider; or
             49622          (c) if the locations described in Subsection (105)(a) or (b) are not known, the location
             49623      of a purchaser's primary place of use.
             49624          (106) (a) "Telephone service provider" means a person that:
             49625          (i) owns, controls, operates, or manages a telephone service; and
             49626          (ii) engages in an activity described in Subsection (106)(a)(i) for the shared use with or
             49627      resale to any person of the telephone service.
             49628          (b) A person described in Subsection (106)(a) is a telephone service provider whether
             49629      or not the Public Service Commission of Utah regulates:
             49630          (i) that person; or
             49631          (ii) the telephone service that the person owns, controls, operates, or manages.
             49632          (107) "Tobacco" means:
             49633          (a) a cigarette;
             49634          (b) a cigar;
             49635          (c) chewing tobacco;
             49636          (d) pipe tobacco; or
             49637          (e) any other item that contains tobacco.
             49638          (108) "Unassisted amusement device" means an amusement device, skill device, or ride
             49639      device that is started and stopped by the purchaser or renter of the right to use or operate the
             49640      amusement device, skill device, or ride device.
             49641          (109) (a) "Use" means the exercise of any right or power over tangible personal
             49642      property under Subsection 59-12-103 (1), incident to the ownership or the leasing of that
             49643      property, item, or service.
             49644          (b) "Use" does not include the sale, display, demonstration, or trial of that property in
             49645      the regular course of business and held for resale.

             49646          (110) (a) Subject to Subsection (110)(b), "vehicle" means the following that are
             49647      required to be titled, registered, or titled and registered:
             49648          (i) an aircraft as defined in Section 72-10-102 ;
             49649          (ii) a vehicle as defined in Section 41-1a-102 ;
             49650          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             49651          (iv) a vessel as defined in Section 41-1a-102 .
             49652          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             49653          (i) a vehicle described in Subsection (110)(a); or
             49654          (ii) (A) a locomotive;
             49655          (B) a freight car;
             49656          (C) railroad work equipment; or
             49657          (D) other railroad rolling stock.
             49658          (111) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             49659      exchanging a vehicle as defined in Subsection (110).
             49660          (112) (a) Except as provided in Subsection (112)(b), "waste energy facility" means a
             49661      facility that generates electricity:
             49662          (i) using as the primary source of energy waste materials that would be placed in a
             49663      landfill or refuse pit if it were not used to generate electricity, including:
             49664          (A) tires;
             49665          (B) waste coal; or
             49666          (C) oil shale; and
             49667          (ii) in amounts greater than actually required for the operation of the facility.
             49668          (b) "Waste energy facility" does not include a facility that incinerates:
             49669          (i) municipal solid waste;
             49670          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             49671          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             49672          (113) "Watercraft" means a vessel as defined in Section 73-18-2 .
             49673          (114) "Wind energy" means wind used as the sole source of energy to produce

             49674      electricity.
             49675          (115) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             49676      location by the United States Postal Service.
             49677          Section 1019. Section 59-12-104 is amended to read:
             49678           59-12-104. Exemptions.
             49679          The following sales and uses are exempt from the taxes imposed by this chapter:
             49680          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             49681      under Chapter 13, Motor and Special Fuel Tax Act;
             49682          (2) sales to the state, its institutions, and its political subdivisions; however, this
             49683      exemption does not apply to sales of:
             49684          (a) construction materials except:
             49685          (i) construction materials purchased by or on behalf of institutions of the public
             49686      education system as defined in Utah Constitution Article X, Section 2, provided the
             49687      construction materials are clearly identified and segregated and installed or converted to real
             49688      property which is owned by institutions of the public education system; and
             49689          (ii) construction materials purchased by the state, its institutions, or its political
             49690      subdivisions which are installed or converted to real property by employees of the state, its
             49691      institutions, or its political subdivisions; or
             49692          (b) tangible personal property in connection with the construction, operation,
             49693      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             49694      providing additional project capacity, as defined in Section 11-13-103 ;
             49695          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             49696          (i) the proceeds of each sale do not exceed $1; and
             49697          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             49698      the cost of the item described in Subsection (3)(b) as goods consumed; and
             49699          (b) Subsection (3)(a) applies to:
             49700          (i) food and food ingredients; or
             49701          (ii) prepared food;

             49702          (4) sales of the following to a commercial airline carrier for in-flight consumption:
             49703          (a) food and food ingredients;
             49704          (b) prepared food; or
             49705          (c) services related to Subsection (4)(a) or (b);
             49706          (5) sales of parts and equipment for installation in aircraft operated by common carriers
             49707      in interstate or foreign commerce;
             49708          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             49709      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             49710      exhibitor, distributor, or commercial television or radio broadcaster;
             49711          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             49712      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             49713      washing of tangible personal property;
             49714          (b) if a seller that sells at the same business location assisted cleaning or washing of
             49715      tangible personal property and cleaning or washing of tangible personal property that is not
             49716      assisted cleaning or washing of tangible personal property, the exemption described in
             49717      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning or
             49718      washing of the tangible personal property; and
             49719          (c) for purposes of Subsection (7)(b) and in accordance with [Title 63, Chapter 46a]
             49720      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
             49721          (i) governing the circumstances under which sales are at the same business location; and
             49722          (ii) establishing the procedures and requirements for a seller to separately account for
             49723      sales of assisted cleaning or washing of tangible personal property;
             49724          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             49725      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             49726      fulfilled;
             49727          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             49728      this state if the vehicle is:
             49729          (a) not registered in this state; and

             49730          (b) (i) not used in this state; or
             49731          (ii) used in this state:
             49732          (A) if the vehicle is not used to conduct business, for a time period that does not exceed
             49733      the longer of:
             49734          (I) 30 days in any calendar year; or
             49735          (II) the time period necessary to transport the vehicle to the borders of this state; or
             49736          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             49737      the vehicle to the borders of this state;
             49738          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             49739          (i) the item is intended for human use; and
             49740          (ii) (A) a prescription was issued for the item; or
             49741          (B) the item was purchased by a hospital or other medical facility; and
             49742          (b) (i) Subsection (10)(a) applies to:
             49743          (A) a drug;
             49744          (B) a syringe; or
             49745          (C) a stoma supply; and
             49746          (ii) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             49747      Administrative Rulemaking Act, the commission may by rule define the terms:
             49748          (A) "syringe"; or
             49749          (B) "stoma supply";
             49750          (11) sales or use of property, materials, or services used in the construction of or
             49751      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             49752          (12) (a) sales of an item described in Subsection (12)(c) served by:
             49753          (i) the following if the item described in Subsection (12)(c) is not available to the
             49754      general public:
             49755          (A) a church; or
             49756          (B) a charitable institution;
             49757          (ii) an institution of higher education if:

             49758          (A) the item described in Subsection (12)(c) is not available to the general public; or
             49759          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             49760      offered by the institution of higher education; or
             49761          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             49762          (i) a medical facility; or
             49763          (ii) a nursing facility; and
             49764          (c) Subsections (12)(a) and (b) apply to:
             49765          (i) food and food ingredients;
             49766          (ii) prepared food; or
             49767          (iii) alcoholic beverages;
             49768          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             49769      by a person:
             49770          (i) regardless of the number of transactions involving the sale of that tangible personal
             49771      property by that person; and
             49772          (ii) not regularly engaged in the business of selling that type of tangible personal
             49773      property;
             49774          (b) this Subsection (13) does not apply if:
             49775          (i) the sale is one of a series of sales of a character to indicate that the person is
             49776      regularly engaged in the business of selling that type of tangible personal property;
             49777          (ii) the person holds that person out as regularly engaged in the business of selling that
             49778      type of tangible personal property;
             49779          (iii) the person sells an item of tangible personal property that the person purchased as a
             49780      sale that is exempt under Subsection (25); or
             49781          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             49782      this state in which case the tax is based upon:
             49783          (A) the bill of sale or other written evidence of value of the vehicle or vessel being sold;
             49784      or
             49785          (B) in the absence of a bill of sale or other written evidence of value, the fair market

             49786      value of the vehicle or vessel being sold at the time of the sale as determined by the commission;
             49787      and
             49788          (c) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             49789      Administrative Rulemaking Act, the commission shall make rules establishing the circumstances
             49790      under which:
             49791          (i) a person is regularly engaged in the business of selling a type of tangible personal
             49792      property;
             49793          (ii) a sale of tangible personal property is one of a series of sales of a character to
             49794      indicate that a person is regularly engaged in the business of selling that type of tangible
             49795      personal property; or
             49796          (iii) a person holds that person out as regularly engaged in the business of selling a type
             49797      of tangible personal property;
             49798          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             49799      July 1, 2006, for a purchase or lease by a manufacturing facility other than a cogeneration
             49800      facility, for the following:
             49801          (i) machinery and equipment that:
             49802          (A) is used:
             49803          (I) for a manufacturing facility other than a manufacturing facility that is a scrap
             49804      recycler described in Subsection 59-12-102 (48)(b):
             49805          (Aa) in the manufacturing process; and
             49806          (Bb) to manufacture an item sold as tangible personal property; or
             49807          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             49808      59-12-102 (48)(b), to process an item sold as tangible personal property; and
             49809          (B) has an economic life of three or more years; and
             49810          (ii) normal operating repair or replacement parts that:
             49811          (A) have an economic life of three or more years; and
             49812          (B) are used:
             49813          (I) for a manufacturing facility in the state other than a manufacturing facility that is a

             49814      scrap recycler described in Subsection 59-12-102 (48)(b), in the manufacturing process; or
             49815          (II) for a manufacturing facility in the state that is a scrap recycler described in
             49816      Subsection 59-12-102 (48)(b), to process an item sold as tangible personal property;
             49817          (b) (i) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             49818      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             49819      for the following:
             49820          (A) machinery and equipment that:
             49821          (I) is used:
             49822          (Aa) in the manufacturing process; and
             49823          (Bb) to manufacture an item sold as tangible personal property; and
             49824          (II) has an economic life of three or more years; and
             49825          (B) normal operating repair or replacement parts that:
             49826          (I) are used in the manufacturing process in a manufacturing facility in the state; and
             49827          (II) have an economic life of three or more years; and
             49828          (ii) for amounts paid or charged on or after July 1, 2005, but on or before June 30,
             49829      2006, for a purchase or lease described in Subsection (14)(b)(i), a cogeneration facility may
             49830      claim the exemption allowed by Subsection (14)(b)(i) by filing for a refund:
             49831          (A) for sales and use taxes paid under this chapter on the purchase or lease payment;
             49832      and
             49833          (B) in accordance with Section 59-12-110 ;
             49834          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             49835      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             49836      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             49837      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             49838      of the 2002 North American Industry Classification System of the federal Executive Office of
             49839      the President, Office of Management and Budget:
             49840          (i) machinery and equipment that:
             49841          (A) are used in:

             49842          (I) the production process, other than the production of real property; or
             49843          (II) research and development; and
             49844          (B) have an economic life of three or more years; and
             49845          (ii) normal operating repair or replacement parts that:
             49846          (A) have an economic life of three or more years; and
             49847          (B) are used in:
             49848          (I) the production process, other than the production of real property, in an
             49849      establishment described in this Subsection (14)(c) in the state; or
             49850          (II) research and development in an establishment described in this Subsection (14)(c)
             49851      in the state;
             49852          (d) for purposes of this Subsection (14) and in accordance with [Title 63, Chapter 46a]
             49853      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission:
             49854          (i) shall by rule define the term "establishment"; and
             49855          (ii) may by rule define what constitutes:
             49856          (A) processing an item sold as tangible personal property;
             49857          (B) the production process, other than the production of real property; or
             49858          (C) research and development; and
             49859          (e) on or before October 1, 2011, and every five years after October 1, 2011, the
             49860      commission shall:
             49861          (i) review the exemptions described in this Subsection (14) and make recommendations
             49862      to the Revenue and Taxation Interim Committee concerning whether the exemptions should be
             49863      continued, modified, or repealed; and
             49864          (ii) include in its report:
             49865          (A) the cost of the exemptions;
             49866          (B) the purpose and effectiveness of the exemptions; and
             49867          (C) the benefits of the exemptions to the state;
             49868          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             49869          (i) tooling;

             49870          (ii) special tooling;
             49871          (iii) support equipment;
             49872          (iv) special test equipment; or
             49873          (v) parts used in the repairs or renovations of tooling or equipment described in
             49874      Subsections (15)(a)(i) through (iv); and
             49875          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             49876          (i) the tooling, equipment, or parts are used or consumed exclusively in the performance
             49877      of any aerospace or electronics industry contract with the United States government or any
             49878      subcontract under that contract; and
             49879          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             49880      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             49881      by:
             49882          (A) a government identification tag placed on the tooling, equipment, or parts; or
             49883          (B) listing on a government-approved property record if placing a government
             49884      identification tag on the tooling, equipment, or parts is impractical;
             49885          (16) sales of newspapers or newspaper subscriptions;
             49886          (17) (a) except as provided in Subsection (17)(b), tangible personal property traded in
             49887      as full or part payment of the purchase price, except that for purposes of calculating sales or use
             49888      tax upon vehicles not sold by a vehicle dealer, trade-ins are limited to other vehicles only, and
             49889      the tax is based upon:
             49890          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             49891      vehicle being traded in; or
             49892          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             49893      fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
             49894      commission; and
             49895          (b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
             49896      following items of tangible personal property traded in as full or part payment of the purchase
             49897      price:

             49898          (i) money;
             49899          (ii) electricity;
             49900          (iii) water;
             49901          (iv) gas; or
             49902          (v) steam;
             49903          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
             49904      used or consumed primarily and directly in farming operations, regardless of whether the
             49905      tangible personal property:
             49906          (A) becomes part of real estate; or
             49907          (B) is installed by a:
             49908          (I) farmer;
             49909          (II) contractor; or
             49910          (III) subcontractor; or
             49911          (ii) sales of parts used in the repairs or renovations of tangible personal property if the
             49912      tangible personal property is exempt under Subsection (18)(a)(i); and
             49913          (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following
             49914      tangible personal property are subject to the taxes imposed by this chapter:
             49915          (i) (A) subject to Subsection (18)(b)(i)(B), the following tangible personal property if
             49916      the tangible personal property is used in a manner that is incidental to farming:
             49917          (I) machinery;
             49918          (II) equipment;
             49919          (III) materials; or
             49920          (IV) supplies; and
             49921          (B) tangible personal property that is considered to be used in a manner that is
             49922      incidental to farming includes:
             49923          (I) hand tools; or
             49924          (II) maintenance and janitorial equipment and supplies;
             49925          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property if the tangible

             49926      personal property is used in an activity other than farming; and
             49927          (B) tangible personal property that is considered to be used in an activity other than
             49928      farming includes:
             49929          (I) office equipment and supplies; or
             49930          (II) equipment and supplies used in:
             49931          (Aa) the sale or distribution of farm products;
             49932          (Bb) research; or
             49933          (Cc) transportation; or
             49934          (iii) a vehicle required to be registered by the laws of this state during the period ending
             49935      two years after the date of the vehicle's purchase;
             49936          (19) sales of hay;
             49937          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             49938      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             49939      garden, farm, or other agricultural produce is sold by:
             49940          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             49941      agricultural produce;
             49942          (b) an employee of the producer described in Subsection (20)(a); or
             49943          (c) a member of the immediate family of the producer described in Subsection (20)(a);
             49944          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             49945      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             49946          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             49947      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             49948      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             49949      manufacturer, processor, wholesaler, or retailer;
             49950          (23) property stored in the state for resale;
             49951          (24) (a) purchases of property if:
             49952          (i) the property is:
             49953          (A) purchased outside of this state;

             49954          (B) brought into this state:
             49955          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             49956          (II) by a nonresident person who is not living or working in this state at the time of the
             49957      purchase;
             49958          (C) used for the personal use or enjoyment of the nonresident person described in
             49959      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             49960          (D) not used in conducting business in this state; and
             49961          (ii) for:
             49962          (A) property other than the property described in Subsection (24)(a)(ii)(B), the first use
             49963      of the property for a purpose for which the property is designed occurs outside of this state;
             49964          (B) a boat, the boat is registered outside of this state; or
             49965          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             49966      outside of this state;
             49967          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             49968          (i) a lease or rental of property; or
             49969          (ii) a sale of a vehicle exempt under Subsection (33); and
             49970          (c) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             49971      Administrative Rulemaking Act, for purposes of Subsection (24)(a), the commission may by
             49972      rule define what constitutes the following:
             49973          (i) conducting business in this state if that phrase has the same meaning in this
             49974      Subsection (24) as in Subsection (66);
             49975          (ii) the first use of property if that phrase has the same meaning in this Subsection (24)
             49976      as in Subsection (66); or
             49977          (iii) a purpose for which property is designed if that phrase has the same meaning in this
             49978      Subsection (24) as in Subsection (66);
             49979          (25) property purchased for resale in this state, in the regular course of business, either
             49980      in its original form or as an ingredient or component part of a manufactured or compounded
             49981      product;

             49982          (26) property upon which a sales or use tax was paid to some other state, or one of its
             49983      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             49984      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             49985      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             49986      Act;
             49987          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             49988      person for use in compounding a service taxable under the subsections;
             49989          (28) purchases made in accordance with the special supplemental nutrition program for
             49990      women, infants, and children established in 42 U.S.C. Sec. 1786;
             49991          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             49992      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
             49993      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification Manual
             49994      of the federal Executive Office of the President, Office of Management and Budget;
             49995          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             49996      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             49997          (a) not registered in this state; and
             49998          (b) (i) not used in this state; or
             49999          (ii) used in this state:
             50000          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             50001      time period that does not exceed the longer of:
             50002          (I) 30 days in any calendar year; or
             50003          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             50004      the borders of this state; or
             50005          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
             50006      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             50007      state;
             50008          (31) sales of aircraft manufactured in Utah if sold for delivery and use outside Utah
             50009      where a sales or use tax is not imposed, even if the title is passed in Utah;

             50010          (32) amounts paid for the purchase of telephone service for purposes of providing
             50011      telephone service;
             50012          (33) sales, leases, or uses of the following:
             50013          (a) a vehicle by an authorized carrier; or
             50014          (b) tangible personal property that is installed on a vehicle:
             50015          (i) sold or leased to or used by an authorized carrier; and
             50016          (ii) before the vehicle is placed in service for the first time;
             50017          (34) (a) 45% of the sales price of any new manufactured home; and
             50018          (b) 100% of the sales price of any used manufactured home;
             50019          (35) sales relating to schools and fundraising sales;
             50020          (36) sales or rentals of durable medical equipment if:
             50021          (a) a person presents a prescription for the durable medical equipment; and
             50022          (b) the durable medical equipment is used for home use only;
             50023          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             50024      Section 72-11-102 ; and
             50025          (b) the commission shall by rule determine the method for calculating sales exempt
             50026      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
             50027          (38) sales to a ski resort of:
             50028          (a) snowmaking equipment;
             50029          (b) ski slope grooming equipment;
             50030          (c) passenger ropeways as defined in Section 72-11-102 ; or
             50031          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             50032      described in Subsections (38)(a) through (c);
             50033          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
             50034          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             50035      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             50036      59-12-102 ;
             50037          (b) if a seller that sells or rents at the same business location the right to use or operate

             50038      for amusement, entertainment, or recreation one or more unassisted amusement devices and one
             50039      or more assisted amusement devices, the exemption described in Subsection (40)(a) applies if
             50040      the seller separately accounts for the sales or rentals of the right to use or operate for
             50041      amusement, entertainment, or recreation for the assisted amusement devices; and
             50042          (c) for purposes of Subsection (40)(b) and in accordance with [Title 63, Chapter 46a]
             50043      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules:
             50044          (i) governing the circumstances under which sales are at the same business location; and
             50045          (ii) establishing the procedures and requirements for a seller to separately account for
             50046      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
             50047      assisted amusement devices;
             50048          (41) (a) sales of photocopies by:
             50049          (i) a governmental entity; or
             50050          (ii) an entity within the state system of public education, including:
             50051          (A) a school; or
             50052          (B) the State Board of Education; or
             50053          (b) sales of publications by a governmental entity;
             50054          (42) amounts paid for admission to an athletic event at an institution of higher
             50055      education that is subject to the provisions of Title IX of the Education Amendments of 1972, 20
             50056      U.S.C. Sec. 1681 et seq.;
             50057          (43) sales of telephone service charged to a prepaid telephone calling card;
             50058          (44) (a) sales of:
             50059          (i) hearing aids;
             50060          (ii) hearing aid accessories; or
             50061          (iii) except as provided in Subsection (44)(b), parts used in the repairs or renovations of
             50062      hearing aids or hearing aid accessories; and
             50063          (b) for purposes of this Subsection (44), notwithstanding Subsection (44)(a)(iii), "parts"
             50064      does not include batteries;
             50065          (45) (a) sales made to or by:

             50066          (i) an area agency on aging; or
             50067          (ii) a senior citizen center owned by a county, city, or town; or
             50068          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             50069          (46) sales or leases of semiconductor fabricating, processing, research, or development
             50070      materials regardless of whether the semiconductor fabricating, processing, research, or
             50071      development materials:
             50072          (a) actually come into contact with a semiconductor; or
             50073          (b) ultimately become incorporated into real property;
             50074          (47) an amount paid by or charged to a purchaser for accommodations and services
             50075      described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section
             50076      59-12-104.2 ;
             50077          (48) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             50078      sports event registration certificate in accordance with Section 41-3-306 for the event period
             50079      specified on the temporary sports event registration certificate;
             50080          (49) sales or uses of electricity, if the sales or uses are:
             50081          (a) made under a tariff adopted by the Public Service Commission of Utah only for
             50082      purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
             50083      source, as designated in the tariff by the Public Service Commission of Utah; and
             50084          (b) for an amount of electricity that is:
             50085          (i) unrelated to the amount of electricity used by the person purchasing the electricity
             50086      under the tariff described in Subsection (49)(a); and
             50087          (ii) equivalent to the number of kilowatthours specified in the tariff described in
             50088      Subsection (49)(a) that may be purchased under the tariff described in Subsection (49)(a);
             50089          (50) sales or rentals of mobility enhancing equipment if a person presents a prescription
             50090      for the mobility enhancing equipment;
             50091          (51) sales of water in a:
             50092          (a) pipe;
             50093          (b) conduit;

             50094          (c) ditch; or
             50095          (d) reservoir;
             50096          (52) sales of currency or coinage that constitute legal tender of the United States or of a
             50097      foreign nation;
             50098          (53) (a) sales of an item described in Subsection (53)(b) if the item:
             50099          (i) does not constitute legal tender of any nation; and
             50100          (ii) has a gold, silver, or platinum content of 80% or more; and
             50101          (b) Subsection (53)(a) applies to a gold, silver, or platinum:
             50102          (i) ingot;
             50103          (ii) bar;
             50104          (iii) medallion; or
             50105          (iv) decorative coin;
             50106          (54) amounts paid on a sale-leaseback transaction;
             50107          (55) sales of a prosthetic device:
             50108          (a) for use on or in a human;
             50109          (b) for which a prescription is issued; and
             50110          (c) to a person that presents a prescription for the prosthetic device;
             50111          (56) (a) except as provided in Subsection (56)(b), purchases, leases, or rentals of
             50112      machinery or equipment by an establishment described in Subsection (56)(c) if the machinery or
             50113      equipment is primarily used in the production or postproduction of the following media for
             50114      commercial distribution:
             50115          (i) a motion picture;
             50116          (ii) a television program;
             50117          (iii) a movie made for television;
             50118          (iv) a music video;
             50119          (v) a commercial;
             50120          (vi) a documentary; or
             50121          (vii) a medium similar to Subsections (56)(a)(i) through (vi) as determined by the

             50122      commission by administrative rule made in accordance with Subsection (56)(d); or
             50123          (b) notwithstanding Subsection (56)(a), purchases, leases, or rentals of machinery or
             50124      equipment by an establishment described in Subsection (56)(c) that is used for the production or
             50125      postproduction of the following are subject to the taxes imposed by this chapter:
             50126          (i) a live musical performance;
             50127          (ii) a live news program; or
             50128          (iii) a live sporting event;
             50129          (c) the following establishments listed in the 1997 North American Industry
             50130      Classification System of the federal Executive Office of the President, Office of Management
             50131      and Budget, apply to Subsections (56)(a) and (b):
             50132          (i) NAICS Code 512110; or
             50133          (ii) NAICS Code 51219; and
             50134          (d) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             50135      Administrative Rulemaking Act, the commission may by rule:
             50136          (i) prescribe what constitutes a medium similar to Subsections (56)(a)(i) through (vi);
             50137      or
             50138          (ii) define:
             50139          (A) "commercial distribution";
             50140          (B) "live musical performance";
             50141          (C) "live news program"; or
             50142          (D) "live sporting event";
             50143          (57) (a) leases of seven or more years or purchases made on or after July 1, 2004 but
             50144      on or before June 30, 2009, of machinery or equipment that:
             50145          (i) is leased or purchased for or by a facility that:
             50146          (A) is a renewable energy production facility;
             50147          (B) is located in the state; and
             50148          (C) (I) becomes operational on or after July 1, 2004; or
             50149          (II) has its generation capacity increased by one or more megawatts on or after July 1,

             50150      2004 as a result of the use of the machinery or equipment;
             50151          (ii) has an economic life of five or more years; and
             50152          (iii) is used to make the facility or the increase in capacity of the facility described in
             50153      Subsection (57)(a)(i) operational up to the point of interconnection with an existing
             50154      transmission grid including:
             50155          (A) a wind turbine;
             50156          (B) generating equipment;
             50157          (C) a control and monitoring system;
             50158          (D) a power line;
             50159          (E) substation equipment;
             50160          (F) lighting;
             50161          (G) fencing;
             50162          (H) pipes; or
             50163          (I) other equipment used for locating a power line or pole; and
             50164          (b) this Subsection (57) does not apply to:
             50165          (i) machinery or equipment used in construction of:
             50166          (A) a new renewable energy production facility; or
             50167          (B) the increase in the capacity of a renewable energy production facility;
             50168          (ii) contracted services required for construction and routine maintenance activities; and
             50169          (iii) unless the machinery or equipment is used or acquired for an increase in capacity of
             50170      the facility described in Subsection (57)(a)(i)(C)(II), machinery or equipment used or acquired
             50171      after:
             50172          (A) the renewable energy production facility described in Subsection (57)(a)(i) is
             50173      operational as described in Subsection (57)(a)(iii); or
             50174          (B) the increased capacity described in Subsection (57)(a)(i) is operational as described
             50175      in Subsection (57)(a)(iii);
             50176          (58) (a) leases of seven or more years or purchases made on or after July 1, 2004 but
             50177      on or before June 30, 2009, of machinery or equipment that:

             50178          (i) is leased or purchased for or by a facility that:
             50179          (A) is a waste energy production facility;
             50180          (B) is located in the state; and
             50181          (C) (I) becomes operational on or after July 1, 2004; or
             50182          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             50183      2004 as a result of the use of the machinery or equipment;
             50184          (ii) has an economic life of five or more years; and
             50185          (iii) is used to make the facility or the increase in capacity of the facility described in
             50186      Subsection (58)(a)(i) operational up to the point of interconnection with an existing
             50187      transmission grid including:
             50188          (A) generating equipment;
             50189          (B) a control and monitoring system;
             50190          (C) a power line;
             50191          (D) substation equipment;
             50192          (E) lighting;
             50193          (F) fencing;
             50194          (G) pipes; or
             50195          (H) other equipment used for locating a power line or pole; and
             50196          (b) this Subsection (58) does not apply to:
             50197          (i) machinery or equipment used in construction of:
             50198          (A) a new waste energy facility; or
             50199          (B) the increase in the capacity of a waste energy facility;
             50200          (ii) contracted services required for construction and routine maintenance activities; and
             50201          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             50202      described in Subsection (58)(a)(i)(C)(II), machinery or equipment used or acquired after:
             50203          (A) the waste energy facility described in Subsection (58)(a)(i) is operational as
             50204      described in Subsection (58)(a)(iii); or
             50205          (B) the increased capacity described in Subsection (58)(a)(i) is operational as described

             50206      in Subsection (58)(a)(iii);
             50207          (59) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
             50208      or before June 30, 2009, of machinery or equipment that:
             50209          (i) is leased or purchased for or by a facility that:
             50210          (A) is located in the state;
             50211          (B) produces fuel from biomass energy including:
             50212          (I) methanol; or
             50213          (II) ethanol; and
             50214          (C) (I) becomes operational on or after July 1, 2004; or
             50215          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004 as
             50216      a result of the installation of the machinery or equipment;
             50217          (ii) has an economic life of five or more years; and
             50218          (iii) is installed on the facility described in Subsection (59)(a)(i);
             50219          (b) this Subsection (59) does not apply to:
             50220          (i) machinery or equipment used in construction of:
             50221          (A) a new facility described in Subsection (59)(a)(i); or
             50222          (B) the increase in capacity of the facility described in Subsection (59)(a)(i); or
             50223          (ii) contracted services required for construction and routine maintenance activities; and
             50224          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             50225      described in Subsection (59)(a)(i)(C)(II), machinery or equipment used or acquired after:
             50226          (A) the facility described in Subsection (59)(a)(i) is operational; or
             50227          (B) the increased capacity described in Subsection (59)(a)(i) is operational;
             50228          (60) amounts paid to a purchaser as a rebate from the manufacturer of a new vehicle for
             50229      purchasing the new vehicle;
             50230          (61) (a) subject to Subsection (61)(b), sales of tangible personal property to persons
             50231      within this state that is subsequently shipped outside the state and incorporated pursuant to
             50232      contract into and becomes a part of real property located outside of this state, except to the
             50233      extent that the other state or political entity imposes a sales, use, gross receipts, or other similar

             50234      transaction excise tax on it against which the other state or political entity allows a credit for
             50235      taxes imposed by this chapter; and
             50236          (b) the exemption provided for in Subsection (61)(a):
             50237          (i) is allowed only if the exemption is applied:
             50238          (A) in calculating the purchase price of the tangible personal property; and
             50239          (B) to a written contract that is in effect on July 1, 2004; and
             50240          (ii) (A) does not apply beginning on the day on which the contract described in
             50241      Subsection (61)(b)(i):
             50242          (I) is substantially modified; or
             50243          (II) terminates; and
             50244          (B) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             50245      Administrative Rulemaking Act, the commission may by rule prescribe the circumstances under
             50246      which a contract is substantially modified;
             50247          (62) purchases:
             50248          (a) of one or more of the following items in printed or electronic format:
             50249          (i) a list containing information that includes one or more:
             50250          (A) names; or
             50251          (B) addresses; or
             50252          (ii) a database containing information that includes one or more:
             50253          (A) names; or
             50254          (B) addresses; and
             50255          (b) used to send direct mail;
             50256          (63) redemptions or repurchases of property by a person if that property was:
             50257          (a) delivered to a pawnbroker as part of a pawn transaction; and
             50258          (b) redeemed or repurchased within the time period established in a written agreement
             50259      between the person and the pawnbroker for redeeming or repurchasing the property;
             50260          (64) (a) purchases or leases of an item described in Subsection (64)(b) if the item:
             50261          (i) is purchased or leased by, or on behalf of, a telephone service provider; and

             50262          (ii) has a useful economic life of one or more years; and
             50263          (b) the following apply to Subsection (64)(a):
             50264          (i) telecommunications enabling or facilitating equipment, machinery, or software;
             50265          (ii) telecommunications equipment, machinery, or software required for 911 service;
             50266          (iii) telecommunications maintenance or repair equipment, machinery, or software;
             50267          (iv) telecommunications switching or routing equipment, machinery, or software; or
             50268          (v) telecommunications transmission equipment, machinery, or software;
             50269          (65) (a) beginning on July 1, 2006, and ending on June 30, 2016, purchases of tangible
             50270      personal property used in the research and development of coal-to-liquids, oil shale, or tar sands
             50271      technology; and
             50272          (b) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             50273      Administrative Rulemaking Act, the commission may, for purposes of Subsection (65)(a), make
             50274      rules defining what constitutes tangible personal property used in the research and development
             50275      of coal-to-liquids, oil shale, and tar sands technology;
             50276          (66) (a) purchases of property if:
             50277          (i) the property is:
             50278          (A) purchased outside of this state;
             50279          (B) brought into this state at any time after the purchase described in Subsection
             50280      (66)(a)(i)(A); and
             50281          (C) used in conducting business in this state; and
             50282          (ii) for:
             50283          (A) property other than the property described in Subsection (66)(a)(ii)(B), the first use
             50284      of the property for a purpose for which the property is designed occurs outside of this state; or
             50285          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             50286      outside of this state;
             50287          (b) the exemption provided for in Subsection (66)(a) does not apply to:
             50288          (i) a lease or rental of property; or
             50289          (ii) a sale of a vehicle exempt under Subsection (33); and

             50290          (c) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             50291      Administrative Rulemaking Act, for purposes of Subsection (66)(a), the commission may by
             50292      rule define what constitutes the following:
             50293          (i) conducting business in this state if that phrase has the same meaning in this
             50294      Subsection (66) as in Subsection (24);
             50295          (ii) the first use of property if that phrase has the same meaning in this Subsection (66)
             50296      as in Subsection (24); or
             50297          (iii) a purpose for which property is designed if that phrase has the same meaning in this
             50298      Subsection (66) as in Subsection (24);
             50299          (67) sales of disposable home medical equipment or supplies if:
             50300          (a) a person presents a prescription for the disposable home medical equipment or
             50301      supplies;
             50302          (b) the disposable home medical equipment or supplies are used exclusively by the
             50303      person to whom the prescription described in Subsection (67)(a) is issued; and
             50304          (c) the disposable home medical equipment and supplies are listed as eligible for
             50305      payment under:
             50306          (i) Title XVIII, federal Social Security Act; or
             50307          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
             50308      and
             50309          (68) sales to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
             50310      District Act, or to a subcontractor of a public transit district, including sales of construction
             50311      materials that are to be installed or converted to real property owned by the public transit
             50312      district.
             50313          Section 1020. Section 59-12-104.1 is amended to read:
             50314           59-12-104.1. Exemptions for religious or charitable institutions.
             50315          (1) Except as provided in Section 59-12-104 , sales made by religious or charitable
             50316      institutions or organizations are exempt from the sales and use tax imposed by this chapter if the
             50317      sale is made in the conduct of the institution's or organization's regular religious or charitable

             50318      functions or activities.
             50319          (2) (a) Except as provided in Section 59-12-104 , sales made to a religious or charitable
             50320      institution or organization are exempt from the sales and use tax imposed by this chapter if the
             50321      sale is made in the conduct of the institution's or organization's regular religious or charitable
             50322      functions and activities.
             50323          (b) In order to facilitate the efficient administration of the exemption granted by this
             50324      section, the exemption shall be administered as follows:
             50325          (i) the exemption shall be at point of sale if the sale is in the amount of at least $1,000;
             50326          (ii) except as provided in Subsection (2)(b)(iii), if the sale is less than $1,000, the
             50327      exemption shall be in the form of a refund of sales or use taxes paid at the point of sale; and
             50328          (iii) notwithstanding Subsection (2)(b)(ii), the exemption under this section shall be at
             50329      point of sale if the sale is:
             50330          (A) made pursuant to a contract between the seller and the charitable or religious
             50331      institution or organization; or
             50332          (B) made by a public utility, as defined in Section 54-2-1 , to a religious or charitable
             50333      institution or organization.
             50334          (3) (a) Religious or charitable institutions or organizations entitled to a refund under
             50335      Subsection (2)(b)(ii) may apply to the commission for the refund of sales or use taxes paid.
             50336          (b) The commission shall designate the following by commission rule adopted in
             50337      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             50338      Act:
             50339          (i) procedures for applying for a sales and use tax refund;
             50340          (ii) standards for determining and verifying the amount of purchase at the point of sale;
             50341          (iii) procedures for submitting a request for refund on a monthly basis anytime the
             50342      taxpayer has accumulated $100 or more in sales tax payments; and
             50343          (iv) procedures for submitting a request for refund on a quarterly basis for any
             50344      cumulative amount of sales tax payments.
             50345          Section 1021. Section 59-12-106 is amended to read:

             50346           59-12-106. Definitions -- Sales and use tax license requirements -- Penalty --
             50347      Application process and requirements -- No fee -- Bonds -- Presumption of taxability --
             50348      Exemption certificates -- Exemption certificate license number to accompany contract
             50349      bids.
             50350          (1) As used in this section:
             50351          (a) "applicant" means a person that:
             50352          (i) is required by this section to obtain a license; and
             50353          (ii) submits an application:
             50354          (A) to the commission; and
             50355          (B) for a license under this section;
             50356          (b) "application" means an application for a license under this section;
             50357          (c) "fiduciary of the applicant" means a person that:
             50358          (i) is required to collect, truthfully account for, and pay over a tax under this chapter for
             50359      an applicant; and
             50360          (ii) (A) is a corporate officer of the applicant described in Subsection (1)(c)(i);
             50361          (B) is a director of the applicant described in Subsection (1)(c)(i);
             50362          (C) is an employee of the applicant described in Subsection (1)(c)(i);
             50363          (D) is a partner of the applicant described in Subsection (1)(c)(i);
             50364          (E) is a trustee of the applicant described in Subsection (1)(c)(i); or
             50365          (F) has a relationship to the applicant described in Subsection (1)(c)(i) that is similar to
             50366      a relationship described in Subsections (1)(c)(ii)(A) through (E) as determined by the
             50367      commission by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             50368      Administrative Rulemaking Act;
             50369          (d) "fiduciary of the licensee" means a person that:
             50370          (i) is required to collect, truthfully account for, and pay over a tax under this chapter for
             50371      a licensee; and
             50372          (ii) (A) is a corporate officer of the licensee described in Subsection (1)(d)(i);
             50373          (B) is a director of the licensee described in Subsection (1)(d)(i);

             50374          (C) is an employee of the licensee described in Subsection (1)(d)(i);
             50375          (D) is a partner of the licensee described in Subsection (1)(d)(i);
             50376          (E) is a trustee of the licensee described in Subsection (1)(d)(i); or
             50377          (F) has a relationship to the licensee described in Subsection (1)(d)(i) that is similar to a
             50378      relationship described in Subsections (1)(d)(ii)(A) through (E) as determined by the commission
             50379      by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             50380      Administrative Rulemaking Act;
             50381          (e) "license" means a license under this section; and
             50382          (f) "licensee" means a person that is licensed under this section by the commission.
             50383          (2) (a) It is unlawful for any person required to collect a tax under this chapter to
             50384      engage in business within the state without first having obtained a license to do so.
             50385          (b) The license described in Subsection (2)(a):
             50386          (i) shall be granted and issued by the commission;
             50387          (ii) is not assignable;
             50388          (iii) is valid only for the person in whose name the license is issued;
             50389          (iv) is valid until:
             50390          (A) the person described in Subsection (2)(b)(iii):
             50391          (I) ceases to do business; or
             50392          (II) changes that person's business address; or
             50393          (B) the license is revoked by the commission; and
             50394          (v) subject to Subsection (2)(d), shall be granted by the commission only upon an
             50395      application that:
             50396          (A) states the name and address of the applicant; and
             50397          (B) provides other information the commission may require.
             50398          (c) At the time an applicant makes an application under Subsection (2)(b)(v), the
             50399      commission shall notify the applicant of the responsibilities and liability of a business owner
             50400      successor under Section 59-12-112 .
             50401          (d) The commission shall review an application and determine whether the applicant:

             50402          (i) meets the requirements of this section to be issued a license; and
             50403          (ii) is required to post a bond with the commission in accordance with Subsections
             50404      (2)(e) and (f) before the applicant may be issued a license.
             50405          (e) (i) An applicant shall post a bond with the commission before the commission may
             50406      issue the applicant a license if:
             50407          (A) a license under this section was revoked for a delinquency under this chapter for:
             50408          (I) the applicant;
             50409          (II) a fiduciary of the applicant; or
             50410          (III) a person for which the applicant or the fiduciary of the applicant is required to
             50411      collect, truthfully account for, and pay over a tax under this chapter; or
             50412          (B) there is a delinquency in paying a tax under this chapter for:
             50413          (I) the applicant;
             50414          (II) a fiduciary of the applicant; or
             50415          (III) a person for which the applicant or the fiduciary of the applicant is required to
             50416      collect, truthfully account for, and pay over a tax under this chapter.
             50417          (ii) If the commission determines it is necessary to ensure compliance with this chapter,
             50418      the commission may require a licensee to:
             50419          (A) for a licensee that has not posted a bond under this section with the commission,
             50420      post a bond with the commission in accordance with Subsection (2)(f); or
             50421          (B) for a licensee that has posted a bond under this section with the commission,
             50422      increase the amount of the bond posted with the commission.
             50423          (f) (i) A bond required by Subsection (2)(e) shall be:
             50424          (A) executed by:
             50425          (I) for an applicant, the applicant as principal, with a corporate surety; or
             50426          (II) for a licensee, the licensee as principal, with a corporate surety; and
             50427          (B) payable to the commission conditioned upon the faithful performance of all of the
             50428      requirements of this chapter including:
             50429          (I) the payment of any tax under this chapter;

             50430          (II) the payment of any:
             50431          (Aa) penalty as provided in Section 59-1-401 ; or
             50432          (Bb) interest as provided in Section 59-1-402 ; or
             50433          (III) any other obligation of the:
             50434          (Aa) applicant under this chapter; or
             50435          (Bb) licensee under this chapter.
             50436          (ii) Except as provided in Subsection (2)(f)(iv), the commission shall calculate the
             50437      amount of a bond required by Subsection (2)(e) on the basis of:
             50438          (A) commission estimates of:
             50439          (I) an applicant's tax liability under this chapter; or
             50440          (II) a licensee's tax liability under this chapter; and
             50441          (B) any amount of a delinquency described in Subsection (2)(f)(iii).
             50442          (iii) Except as provided in Subsection (2)(f)(iv), for purposes of Subsection
             50443      (2)(f)(ii)(B):
             50444          (A) for an applicant, the amount of the delinquency is the sum of:
             50445          (I) the amount of any delinquency that served as a basis for revoking the license under
             50446      this section of:
             50447          (Aa) the applicant;
             50448          (Bb) a fiduciary of the applicant; or
             50449          (Cc) a person for which the applicant or the fiduciary of the applicant is required to
             50450      collect, truthfully account for, and pay over a tax under this chapter; or
             50451          (II) the amount of tax that any of the following owe under this chapter:
             50452          (Aa) the applicant;
             50453          (Bb) a fiduciary of the applicant; and
             50454          (Cc) a person for which the applicant or the fiduciary of the applicant is required to
             50455      collect, truthfully account for, and pay over a tax under this chapter; or
             50456          (B) for a licensee, the amount of the delinquency is the sum of:
             50457          (I) the amount of any delinquency that served as a basis for revoking the license under

             50458      this section of:
             50459          (Aa) the licensee;
             50460          (Bb) a fiduciary of the licensee; or
             50461          (Cc) a person for which the licensee or the fiduciary of the licensee is required to
             50462      collect, truthfully account for, and pay over a tax under this chapter; or
             50463          (II) the amount of tax that any of the following owe under this chapter:
             50464          (Aa) the licensee;
             50465          (Bb) a fiduciary of the licensee; and
             50466          (Cc) a person for which the licensee or the fiduciary of the licensee is required to
             50467      collect, truthfully account for, and pay over a tax under this chapter.
             50468          (iv) Notwithstanding Subsection (2)(f)(ii) or (2)(f)(iii), a bond required by Subsection
             50469      (2)(e) may not:
             50470          (A) be less than $25,000; or
             50471          (B) exceed $500,000.
             50472          (g) If business is transacted at two or more separate places by one person, a separate
             50473      license for each place of business is required.
             50474          (h) (i) The commission shall, on a reasonable notice and after a hearing, revoke the
             50475      license of any licensee violating any provisions of this chapter.
             50476          (ii) A license may not be issued to a licensee described in Subsection (2)(h)(i) until the
             50477      licensee has complied with the requirements of this chapter, including:
             50478          (A) paying any:
             50479          (I) tax due under this chapter;
             50480          (II) penalty as provided in Section 59-1-401 ; or
             50481          (III) interest as provided in Section 59-1-402 ; and
             50482          (B) posting a bond in accordance with Subsections (2)(e) and (f).
             50483          (i) Any person required to collect a tax under this chapter within this state without
             50484      having secured a license to do so is guilty of a criminal violation as provided in Section
             50485      59-1-401 .

             50486          (j) A license:
             50487          (i) is not required for any person engaged exclusively in the business of selling
             50488      commodities that are exempt from taxation under this chapter; and
             50489          (ii) shall be issued to the person by the commission without a license fee.
             50490          (3) (a) For the purpose of the proper administration of this chapter and to prevent
             50491      evasion of the tax and the duty to collect the tax, it shall be presumed that tangible personal
             50492      property or any other taxable transaction under Subsection 59-12-103 (1) sold by any person for
             50493      delivery in this state is sold for storage, use, or other consumption in this state unless the person
             50494      selling the property, item, or service has taken from the purchaser an exemption certificate:
             50495          (i) bearing the name and address of the purchaser; and
             50496          (ii) providing that the property, item, or service was exempted under Section
             50497      59-12-104 .
             50498          (b) An exemption certificate described in Subsection (3)(a):
             50499          (i) shall contain information as prescribed by the commission; and
             50500          (ii) if a paper exemption certificate is used, shall be signed by the purchaser.
             50501          (c) Except as provided in Subsection (3)(d), a seller that has taken an exemption
             50502      certificate from a purchaser in accordance with this Subsection (3) with respect to a transaction
             50503      is not liable to collect a tax under this chapter:
             50504          (i) on that transaction; and
             50505          (ii) if the commission or a court of competent jurisdiction subsequently determines that
             50506      the purchaser improperly claimed the exemption.
             50507          (d) Notwithstanding Subsection (3)(c), Subsection (3)(c) does not apply to a seller that:
             50508          (i) fraudulently fails to collect a tax under this chapter; or
             50509          (ii) solicits a purchaser to participate in improperly claiming an exemption from a tax
             50510      under this chapter.
             50511          (4) A person filing a contract bid with the state or a political subdivision of the state for
             50512      the sale of tangible personal property or any other taxable transaction under Subsection
             50513      59-12-103 (1) shall include with the bid the number of the license issued to that person under

             50514      Subsection (2).
             50515          Section 1022. Section 59-12-107 is amended to read:
             50516           59-12-107. Collection, remittance, and payment of tax by sellers or other persons
             50517      -- Returns -- Direct payment by purchaser of vehicle -- Other liability for collection --
             50518      Rulemaking authority -- Credits -- Treatment of bad debt -- Penalties.
             50519          (1) (a) Except as provided in Subsection (1)(d) or Section 59-12-107.1 and subject to
             50520      Subsection (1)(e), each seller shall pay or collect and remit the sales and use taxes imposed by
             50521      this chapter if within this state the seller:
             50522          (i) has or utilizes:
             50523          (A) an office;
             50524          (B) a distribution house;
             50525          (C) a sales house;
             50526          (D) a warehouse;
             50527          (E) a service enterprise; or
             50528          (F) a place of business similar to Subsections (1)(a)(i)(A) through (E);
             50529          (ii) maintains a stock of goods;
             50530          (iii) regularly solicits orders, regardless of whether or not the orders are accepted in the
             50531      state, unless the seller's only activity in the state is:
             50532          (A) advertising; or
             50533          (B) solicitation by:
             50534          (I) direct mail;
             50535          (II) electronic mail;
             50536          (III) the Internet;
             50537          (IV) telephone; or
             50538          (V) a means similar to Subsection (1)(a)(iii)(A) or (B);
             50539          (iv) regularly engages in the delivery of property in the state other than by:
             50540          (A) common carrier; or
             50541          (B) United States mail; or

             50542          (v) regularly engages in an activity directly related to the leasing or servicing of
             50543      property located within the state.
             50544          (b) A seller that does not meet one or more of the criteria provided for in Subsection
             50545      (1)(a):
             50546          (i) except as provided in Subsection (1)(b)(ii), may voluntarily:
             50547          (A) collect a tax on a transaction described in Subsection 59-12-103 (1); and
             50548          (B) remit the tax to the commission as provided in this part; or
             50549          (ii) notwithstanding Subsection (1)(b)(i), shall collect a tax on a transaction described in
             50550      Subsection 59-12-103 (1) if Section 59-12-103.1 requires the seller to collect the tax.
             50551          (c) A person shall pay a use tax imposed by this chapter on a transaction described in
             50552      Subsection 59-12-103 (1) if:
             50553          (i) the seller did not collect a tax imposed by this chapter on the transaction; and
             50554          (ii) the person:
             50555          (A) stores the tangible personal property in the state;
             50556          (B) uses the tangible personal property in the state; or
             50557          (C) consumes the tangible personal property in the state.
             50558          (d) The ownership of property that is located at the premises of a printer's facility with
             50559      which the retailer has contracted for printing and that consists of the final printed product,
             50560      property that becomes a part of the final printed product, or copy from which the printed
             50561      product is produced, shall not result in the retailer being considered to have or maintain an
             50562      office, distribution house, sales house, warehouse, service enterprise, or other place of business,
             50563      or to maintain a stock of goods, within this state.
             50564          (e) (i) As used in this Subsection (1)(e):
             50565          (A) "affiliated group" is as defined in Section 59-7-101 , except that "affiliated group"
             50566      includes a corporation that is qualified to do business but is not otherwise doing business in this
             50567      state;
             50568          (B) "common ownership" is as defined in Section 59-7-101 ;
             50569          (C) "related seller" means a seller that:

             50570          (I) is not required to pay or collect and remit sales and use taxes under Subsection
             50571      (1)(a) or Section 59-12-103.1 ;
             50572          (II) is:
             50573          (Aa) related to a seller that is required to pay or collect and remit sales and use taxes
             50574      under Subsection (1)(a) as part of an affiliated group or because of common ownership; or
             50575          (Bb) a limited liability company owned by the parent corporation of an affiliated group
             50576      if that parent corporation of the affiliated group is required to pay or collect and remit sales and
             50577      use taxes under Subsection (1)(a); and
             50578          (III) does not voluntarily collect and remit a tax under Subsection (1)(b)(i).
             50579          (ii) A seller is not required to pay or collect and remit sales and use taxes under
             50580      Subsection (1)(a):
             50581          (A) if the seller is a related seller;
             50582          (B) if the seller to which the related seller is related does not engage in any of the
             50583      following activities on behalf of the related seller:
             50584          (I) advertising;
             50585          (II) marketing;
             50586          (III) sales; or
             50587          (IV) other services; and
             50588          (C) if the seller to which the related seller is related accepts the return of an item sold by
             50589      the related seller, the seller to which the related seller is related accepts the return of that item:
             50590          (I) sold by a seller that is not a related seller; and
             50591          (II) on the same terms as the return of an item sold by that seller to which the related
             50592      seller is related.
             50593          (2) (a) Except as provided in Section 59-12-107.1 , a tax under this chapter shall be
             50594      collected from a purchaser.
             50595          (b) A seller may not collect as tax an amount, without regard to fractional parts of one
             50596      cent, in excess of the tax computed at the rates prescribed by this chapter.
             50597          (c) (i) Each seller shall:

             50598          (A) give the purchaser a receipt for the tax collected; or
             50599          (B) bill the tax as a separate item and declare the name of this state and the seller's sales
             50600      and use tax license number on the invoice for the sale.
             50601          (ii) The receipt or invoice is prima facie evidence that the seller has collected the tax
             50602      and relieves the purchaser of the liability for reporting the tax to the commission as a consumer.
             50603          (d) A seller is not required to maintain a separate account for the tax collected, but is
             50604      considered to be a person charged with receipt, safekeeping, and transfer of public moneys.
             50605          (e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the
             50606      benefit of the state and for payment to the commission in the manner and at the time provided
             50607      for in this chapter.
             50608          (f) If any seller, during any reporting period, collects as a tax an amount in excess of the
             50609      lawful state and local percentage of total taxable sales allowed under this chapter, the seller shall
             50610      remit to the commission the full amount of the tax imposed under this chapter, plus any excess.
             50611          (g) If the accounting methods regularly employed by the seller in the transaction of the
             50612      seller's business are such that reports of sales made during a calendar month or quarterly period
             50613      will impose unnecessary hardships, the commission may accept reports at intervals that will, in
             50614      the commission's opinion, better suit the convenience of the taxpayer or seller and will not
             50615      jeopardize collection of the tax.
             50616          (3) (a) Except as provided in Subsection (4) and Section 59-12-108 , the sales or use tax
             50617      imposed by this chapter is due and payable to the commission quarterly on or before the last day
             50618      of the month next succeeding each calendar quarterly period.
             50619          (b) (i) Each seller shall, on or before the last day of the month next succeeding each
             50620      calendar quarterly period, file with the commission a return for the preceding quarterly period.
             50621          (ii) The seller shall remit with the return under Subsection (3)(b)(i) the amount of the
             50622      tax required under this chapter to be collected or paid for the period covered by the return.
             50623          (c) Each return shall contain information and be in a form the commission prescribes by
             50624      rule.
             50625          (d) The sales tax as computed in the return shall be based upon the total nonexempt

             50626      sales made during the period, including both cash and charge sales.
             50627          (e) The use tax as computed in the return shall be based upon the total amount of sales
             50628      and purchases for storage, use, or other consumption in this state made during the period,
             50629      including both by cash and by charge.
             50630          (f) (i) Subject to Subsection (3)(f)(ii) and in accordance with [Title 63, Chapter 46a]
             50631      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule extend
             50632      the time for making returns and paying the taxes.
             50633          (ii) An extension under Subsection (3)(f)(i) may not be for more than 90 days.
             50634          (g) The commission may require returns and payment of the tax to be made for other
             50635      than quarterly periods if the commission considers it necessary in order to ensure the payment
             50636      of the tax imposed by this chapter.
             50637          (4) (a) On each vehicle sale made by other than a regular licensed vehicle dealer, the
             50638      purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to
             50639      titling or registration under the laws of this state.
             50640          (b) The commission shall collect the tax described in Subsection (4)(a) when the vehicle
             50641      is titled or registered.
             50642          (5) If any sale of tangible personal property or any other taxable transaction under
             50643      Subsection 59-12-103 (1), is made by a wholesaler to a retailer, the wholesaler is not responsible
             50644      for the collection or payment of the tax imposed on the sale and the retailer is responsible for
             50645      the collection or payment of the tax imposed on the sale if:
             50646          (a) the retailer represents that the personal property is purchased by the retailer for
             50647      resale; and
             50648          (b) the personal property is not subsequently resold.
             50649          (6) If any sale of property or service subject to the tax is made to a person prepaying
             50650      sales or use tax in accordance with [Title 63, Chapter 51] Title 63M, Chapter 5, Resource
             50651      Development, or to a contractor or subcontractor of that person, the person to whom such
             50652      payment or consideration is payable is not responsible for the collection or payment of the sales
             50653      or use tax and the person prepaying the sales or use tax is responsible for the collection or

             50654      payment of the sales or use tax if the person prepaying the sales or use tax represents that the
             50655      amount prepaid as sales or use tax has not been fully credited against sales or use tax due and
             50656      payable under the rules promulgated by the commission.
             50657          (7) (a) For purposes of this Subsection (7):
             50658          (i) Except as provided in Subsection (7)(a)(ii), "bad debt" is as defined in Section 166,
             50659      Internal Revenue Code.
             50660          (ii) Notwithstanding Subsection (7)(a)(i), "bad debt" does not include:
             50661          (A) an amount included in the purchase price of tangible personal property or a service
             50662      that is:
             50663          (I) not a transaction described in Subsection 59-12-103 (1); or
             50664          (II) exempt under Section 59-12-104 ;
             50665          (B) a financing charge;
             50666          (C) interest;
             50667          (D) a tax imposed under this chapter on the purchase price of tangible personal
             50668      property or a service;
             50669          (E) an uncollectible amount on tangible personal property that:
             50670          (I) is subject to a tax under this chapter; and
             50671          (II) remains in the possession of a seller until the full purchase price is paid;
             50672          (F) an expense incurred in attempting to collect any debt; or
             50673          (G) an amount that a seller does not collect on repossessed property.
             50674          (b) A seller may deduct bad debt from the total amount from which a tax under this
             50675      chapter is calculated on a return.
             50676          (c) A seller may file a refund claim with the commission if:
             50677          (i) the amount of bad debt for the time period described in Subsection (7)(e) exceeds
             50678      the amount of the seller's sales that are subject to a tax under this chapter for that same time
             50679      period; and
             50680          (ii) as provided in Section 59-12-110 .
             50681          (d) A bad debt deduction under this section may not include interest.

             50682          (e) A bad debt may be deducted under this Subsection (7) on a return for the time
             50683      period during which the bad debt:
             50684          (i) is written off as uncollectible in the seller's books and records; and
             50685          (ii) would be eligible for a bad debt deduction:
             50686          (A) for federal income tax purposes; and
             50687          (B) if the seller were required to file a federal income tax return.
             50688          (f) If a seller recovers any portion of bad debt for which the seller makes a deduction or
             50689      claims a refund under this Subsection (7), the seller shall report and remit a tax under this
             50690      chapter:
             50691          (i) on the portion of the bad debt the seller recovers; and
             50692          (ii) on a return filed for the time period for which the portion of the bad debt is
             50693      recovered.
             50694          (g) For purposes of reporting a recovery of a portion of bad debt under Subsection
             50695      (7)(f), a seller shall apply amounts received on the bad debt in the following order:
             50696          (i) in a proportional amount:
             50697          (A) to the purchase price of the tangible personal property or service; and
             50698          (B) to the tax due under this chapter on the tangible personal property or service; and
             50699          (ii) to:
             50700          (A) interest charges;
             50701          (B) service charges; and
             50702          (C) other charges.
             50703          (8) (a) A seller may not, with intent to evade any tax, fail to timely remit the full amount
             50704      of tax required by this chapter.
             50705          (b) A violation of this section is punishable as provided in Section 59-1-401 .
             50706          (c) Each person who fails to pay any tax to the state or any amount of tax required to
             50707      be paid to the state, except amounts determined to be due by the commission under Sections
             50708      59-12-110 and 59-12-111 , within the time required by this chapter, or who fails to file any
             50709      return as required by this chapter, shall pay, in addition to the tax, penalties and interest as

             50710      provided in Section 59-12-110 .
             50711          (d) For purposes of prosecution under this section, each quarterly tax period in which a
             50712      seller, with intent to evade any tax, collects a tax and fails to timely remit the full amount of the
             50713      tax required to be remitted, constitutes a separate offense.
             50714          Section 1023. Section 59-12-107.1 is amended to read:
             50715           59-12-107.1. Direct payment permit.
             50716          (1) The commission may issue a direct payment permit to a seller that:
             50717          (a) obtains a license under Section 59-12-106 ;
             50718          (b) is required to remit taxes under this chapter by electronic funds transfer in
             50719      accordance with Subsection 59-12-108 (1);
             50720          (c) has a record of timely payment of taxes under this chapter as determined by the
             50721      commission; and
             50722          (d) demonstrates to the commission that the seller has the ability to determine the
             50723      appropriate location of a transaction under Section 59-12-207 for each transaction for which the
             50724      seller makes a purchase using the direct payment permit.
             50725          (2) A direct payment permit may not be used in connection with the following
             50726      transactions:
             50727          (a) a purchase of the following purchased in the same transaction:
             50728          (i) prepared food; and
             50729          (ii) food and food ingredients;
             50730          (b) amounts paid or charged for accommodations and services described in Subsection
             50731      59-12-103 (1)(i);
             50732          (c) amounts paid or charged for admission or user fees under Subsection
             50733      59-12-103 (1)(f);
             50734          (d) a purchase of:
             50735          (i) a motor vehicle;
             50736          (ii) an aircraft;
             50737          (iii) a watercraft;

             50738          (iv) a modular home;
             50739          (v) a manufactured home; or
             50740          (vi) a mobile home;
             50741          (e) amounts paid under Subsection 59-12-103 (1)(b); or
             50742          (f) sales under Subsection 59-12-103 (1)(c).
             50743          (3) The holder of a direct payment permit shall:
             50744          (a) present evidence of the direct payment permit to a seller at the time the holder of the
             50745      direct payment permit makes a purchase using the direct payment permit;
             50746          (b) determine the appropriate location of a transaction under Section 59-12-207 for
             50747      each transaction for which the holder of the direct payment permit makes a purchase using the
             50748      direct payment permit;
             50749          (c) notwithstanding Section 59-12-107 , determine the amount of any sales and use tax
             50750      due on each transaction for which the holder of the direct payment permit uses the direct
             50751      payment permit;
             50752          (d) report and remit to the commission the sales and use tax described in Subsection
             50753      (3)(c) at the same time and in the same manner as the holder of the direct payment permit
             50754      reports and remits a tax under this chapter; and
             50755          (e) maintain records:
             50756          (i) that indicate the appropriate location of a transaction under Section 59-12-207 for
             50757      each transaction for which a purchase is made using the direct payment permit; and
             50758          (ii) necessary to determine the amount described in Subsection (3)(c) for each
             50759      transaction for which the holder of the direct payment permit uses the direct payment permit.
             50760          (4) A seller that is presented evidence of a direct payment permit at the time of a
             50761      transaction:
             50762          (a) notwithstanding Section 59-12-107 , may not collect sales and use tax on the
             50763      transaction;
             50764          (b) shall, for a period of three years from the date the seller files a return with the
             50765      commission reporting the transaction, retain records to verify that the transaction was made

             50766      using a direct payment permit; and
             50767          (c) notwithstanding Section 59-12-107 , is not liable for sales and use tax on the
             50768      transaction.
             50769          (5) The holder of a direct payment permit may calculate the amount the holder of the
             50770      direct payment permit may retain under Section 59-12-108 on the amount described in
             50771      Subsection (3)(c):
             50772          (a) for each transaction for which the holder of the direct payment permit uses the
             50773      direct payment permit; and
             50774          (b) that the holder of the direct payment permit remits to the commission under this
             50775      section.
             50776          (6) The commission may revoke a direct payment permit issued under this section at
             50777      any time if the holder of the direct payment permit fails to comply with any provision of this
             50778      chapter.
             50779          (7) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             50780      Administrative Rulemaking Act, the commission may make rules to administer this section.
             50781          Section 1024. Section 59-12-108 is amended to read:
             50782           59-12-108. Monthly payment -- Amount of tax a seller may retain -- Penalty --
             50783      Certain amounts allocated to local taxing jurisdictions.
             50784          (1) (a) Notwithstanding Section 59-12-107 , a seller that has a tax liability under this
             50785      chapter of $50,000 or more for the previous calendar year shall:
             50786          (i) file a return with the commission:
             50787          (A) monthly on or before the last day of the month immediately following the month for
             50788      which the seller collects a tax under this chapter; and
             50789          (B) for the month for which the seller collects a tax under this chapter; and
             50790          (ii) remit with the return required by Subsection (1)(a)(i) the amount the person is
             50791      required to remit to the commission for each tax, fee, or charge described in Subsection (1)(b):
             50792          (A) if that seller's tax liability under this chapter for the previous calendar year is less
             50793      than $96,000, by any method permitted by the commission; or

             50794          (B) if that seller's tax liability under this chapter for the previous calendar year is
             50795      $96,000 or more, by electronic funds transfer.
             50796          (b) Subsections (1)(a)(i) and (ii) apply to the following taxes, fees, or charges:
             50797          (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             50798          (ii) a fee under Section 19-6-716 ;
             50799          (iii) a fee under Section 19-6-805 ;
             50800          (iv) a charge under Section 69-2-5.5 ; or
             50801          (v) a tax under this chapter.
             50802          (c) Notwithstanding Subsection (1)(a)(ii) and in accordance with [Title 63, Chapter
             50803      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make
             50804      rules providing for a method for making same-day payments other than by electronic funds
             50805      transfer if making payments by electronic funds transfer fails.
             50806          (d) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             50807      Administrative Rulemaking Act, the commission shall establish by rule procedures and
             50808      requirements for determining the amount a seller is required to remit to the commission under
             50809      this Subsection (1).
             50810          (2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
             50811      seller described in Subsection (4) may retain each month the amount allowed by this Subsection
             50812      (2).
             50813          (b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
             50814      each month 1.31% of any amounts the seller is required to remit to the commission:
             50815          (i) for a transaction described in Subsection 59-12-103 (1) that is subject to a state tax
             50816      and a local tax imposed in accordance with the following, for the month for which the seller is
             50817      filing a return in accordance with Subsection (1):
             50818          (A) Subsection 59-12-103 (2)(a);
             50819          (B) Subsection 59-12-103 (2)(b);
             50820          (C) Subsection 59-12-103 (2)(d), except for the state tax and the local tax imposed on
             50821      the amounts paid or charged for food and food ingredients in accordance with Subsections

             50822      59-12-103 (2)(d)(i)(C) and (2)(d)(ii); and
             50823          (D) Subsection 59-12-103 (2)(e); and
             50824          (ii) for an agreement sales and use tax.
             50825          (c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
             50826      retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described
             50827      in Subsection 59-12-103 (1) that is subject to the state tax and the local tax imposed in
             50828      accordance with Subsection 59-12-103 (2)(c).
             50829          (ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
             50830      equal to the sum of:
             50831          (A) 1.31% of any amounts the seller is required to remit to the commission for:
             50832          (I) the state tax and the local tax imposed in accordance with Subsection
             50833      59-12-103 (2)(c);
             50834          (II) the month for which the seller is filing a return in accordance with Subsection (1);
             50835      and
             50836          (III) an agreement sales and use tax; and
             50837          (B) 1.31% of the difference between:
             50838          (I) the amounts the seller would have been required to remit to the commission:
             50839          (Aa) in accordance with Subsection 59-12-103 (2)(a) if the transaction had been subject
             50840      to the state tax and the local tax imposed in accordance with Subsection 59-12-103 (2)(a);
             50841          (Bb) for the month for which the seller is filing a return in accordance with Subsection
             50842      (1); and
             50843          (Cc) for an agreement sales and use tax; and
             50844          (II) the amounts the seller is required to remit to the commission for:
             50845          (Aa) the state tax and the local tax imposed in accordance with Subsection
             50846      59-12-103 (2)(c);
             50847          (Bb) the month for which the seller is filing a return in accordance with Subsection (1);
             50848      and
             50849          (Cc) an agreement sales and use tax.

             50850          (d) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
             50851      retain each month the amount calculated under Subsection (2)(d)(ii) for a transaction described
             50852      in Subsection 59-12-103 (1) that is subject to the state tax and the local tax imposed on the
             50853      amounts paid or charged for food and food ingredients in accordance with Subsections
             50854      59-12-103 (2)(d)(i)(C) and (2)(d)(ii).
             50855          (ii) For purposes of Subsection (2)(d)(i), the amount a seller may retain is an amount
             50856      equal to the sum of:
             50857          (A) 1.31% of any amounts the seller is required to remit to the commission for:
             50858          (I) the state tax and the local tax imposed on the amounts paid or charged for food and
             50859      food ingredients in accordance with Subsections 59-12-103 (2)(d)(i)(C) and (2)(d)(ii);
             50860          (II) the month for which the seller is filing a return in accordance with Subsection (1);
             50861      and
             50862          (III) an agreement sales and use tax; and
             50863          (B) 1.31% of the difference between:
             50864          (I) the amounts the seller would have been required to remit to the commission:
             50865          (Aa) in accordance with Subsections 59-12-103 (2)(d)(i)(A) and (2)(d)(ii) if the
             50866      transaction had been subject to the state tax and the local tax imposed in accordance with
             50867      Subsections 59-12-103 (2)(d)(i)(A) and (2)(d)(ii);
             50868          (Bb) for the month for which the seller is filing a return in accordance with Subsection
             50869      (1); and
             50870          (Cc) for an agreement sales and use tax; and
             50871          (II) the amounts the seller is required to remit to the commission for:
             50872          (Aa) the state tax and the local tax imposed in accordance with Subsections
             50873      59-12-103 (2)(d)(i)(C) and (2)(d)(ii);
             50874          (Bb) the month for which the seller is filing a return in accordance with Subsection (1);
             50875      and
             50876          (Cc) an agreement sales and use tax.
             50877          (e) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain

             50878      each month 1% of any amounts the seller is required to remit to the commission:
             50879          (i) for the month for which the seller is filing a return in accordance with Subsection
             50880      (1); and
             50881          (ii) under:
             50882          (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             50883          (B) Subsection 59-12-603 (1)(a)(i)(A); or
             50884          (C) Subsection 59-12-603 (1)(a)(i)(B).
             50885          (3) A state government entity that is required to remit taxes monthly in accordance with
             50886      Subsection (1) may not retain any amount under Subsection (2).
             50887          (4) A seller that has a tax liability under this chapter for the previous calendar year of
             50888      less than $50,000 may:
             50889          (a) voluntarily meet the requirements of Subsection (1); and
             50890          (b) if the seller voluntarily meets the requirements of Subsection (1), retain the amounts
             50891      allowed by Subsection (2).
             50892          (5) Penalties for late payment shall be as provided in Section 59-1-401 .
             50893          (6) (a) For any amounts required to be remitted to the commission under this part, the
             50894      commission shall each month calculate an amount equal to the difference between:
             50895          (i) the total amount retained for that month by all sellers had the percentages listed
             50896      under Subsections (2)(b), (2)(c)(ii), and (2)(d)(ii) been 1.5%; and
             50897          (ii) the total amount retained for that month by all sellers at the percentages listed under
             50898      Subsections (2)(b), (2)(c)(ii), and (2)(d)(ii).
             50899          (b) The commission shall each month allocate the amount calculated under Subsection
             50900      (6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
             50901      tax that the commission distributes to each county, city, and town for that month compared to
             50902      the total agreement sales and use tax that the commission distributes for that month to all
             50903      counties, cities, and towns.
             50904          Section 1025. Section 59-12-110 is amended to read:
             50905           59-12-110. Overpayments, deficiencies, and refunds procedures.

             50906          (1) (a) As soon as practicable after a return is filed, the commission shall examine the
             50907      return.
             50908          (b) If the commission determines that the correct amount of tax to be remitted is greater
             50909      or less than the amount shown to be due on the return, the commission shall recompute the tax.
             50910          (c) If the amount paid exceeds the amount due, the excess, plus interest as provided in
             50911      Section 59-1-402 , shall be credited or refunded to the taxpayer as provided in Subsection (2).
             50912          (d) The commission may not credit or refund to the taxpayer interest on an
             50913      overpayment under Subsection (1)(c) if the commission determines that the overpayment was
             50914      made for the purpose of investment.
             50915          (2) (a) If a taxpayer pays a tax, penalty, or interest more than once or the commission
             50916      erroneously receives, collects, or computes any tax, penalty, or interest, including an
             50917      overpayment described in Subsection (1)(c), the commission shall:
             50918          (i) credit the amount of tax, penalty, or interest paid by the taxpayer against any
             50919      amounts of tax, penalties, or interest the taxpayer owes; and
             50920          (ii) refund any balance to the taxpayer or the taxpayer's successors, administrators,
             50921      executors, or assigns.
             50922          (b) Except as provided in Subsections (2)(c) and (d) or Section 19-2-124 , a taxpayer
             50923      shall file a claim with the commission to obtain a refund or credit under this Subsection (2)
             50924      within three years from the day on which the taxpayer overpaid the tax, penalty, or interest.
             50925          (c) Notwithstanding Subsection (2)(b), beginning on July 1, 1998, the commission shall
             50926      extend the period for a taxpayer to file a claim under Subsection (2)(b) if:
             50927          (i) the three-year period under Subsection (2)(b) has not expired; and
             50928          (ii) the commission and the taxpayer sign a written agreement:
             50929          (A) authorizing the extension; and
             50930          (B) providing for the length of the extension.
             50931          (d) Notwithstanding Subsection (2)(b), a seller that files a claim for a refund under
             50932      Subsection 59-12-107 (7)(c) for bad debt shall file the claim with the commission within three
             50933      years from the date on which the seller could first claim the refund for the bad debt.

             50934          (e) A taxpayer may file a claim to obtain a refund or credit under this Subsection (2)
             50935      regardless of whether the taxpayer received or objected to a notice of deficiency or a notice of
             50936      assessment as provided in Subsection 59-12-114 (1).
             50937          (f) A taxpayer may obtain a refund under this Subsection (2) of a tax paid under this
             50938      chapter on a transaction that is taxable under Section 59-12-103 if:
             50939          (i) the sale or use was exempt from sales and use taxes under Section 59-12-104 on the
             50940      date of purchase; and
             50941          (ii) except as provided in Subsection (2)(c), the taxpayer files a claim for a refund with
             50942      the commission as provided in Subsections (2)(b) through (e).
             50943          (g) If the commission denies a claim for a refund or credit under this Subsection (2), the
             50944      taxpayer may request a redetermination of the denial by filing a petition or request for agency
             50945      action with the commission as provided in [Title 63, Chapter 46b] Title 63G, Chapter 4,
             50946      Administrative Procedures Act.
             50947          (3) If the commission erroneously determines an amount to be due from a taxpayer, the
             50948      commission shall authorize the amounts to be cancelled upon its records.
             50949          (4) (a) Subject to the provisions of Subsection (4)(b), the commission may impose on a
             50950      deficiency under this section:
             50951          (i) a penalty as provided in Section 59-1-401 ; and
             50952          (ii) interest as provided in Section 59-1-402 .
             50953          (b) The commission may impose a penalty and interest on the entire deficiency if any
             50954      part of the deficiency is due to:
             50955          (i) negligence;
             50956          (ii) intentional disregard of law or rule; or
             50957          (iii) fraud with intent to evade the tax.
             50958          (5) (a) Except as provided in Subsection (5)(b), a taxpayer shall pay a tax deficiency,
             50959      including penalties or interest under this section, within ten days after the commission provides
             50960      the taxpayer notice and demand of the deficiency, penalty, or interest.
             50961          (b) Notwithstanding Subsection (5)(a), a taxpayer may pay a tax deficiency, penalty, or

             50962      interest within 30 days after the commission provides the taxpayer notice and demand of the
             50963      deficiency, penalty, or interest if the commission determines:
             50964          (i) that a greater amount was due than was shown on the return; and
             50965          (ii) the tax is not in jeopardy.
             50966          (6) (a) Except as provided in Subsections (6)(c) through (f), the commission shall
             50967      assess the amount of taxes imposed by this chapter, and any penalties and interest, within three
             50968      years after a taxpayer files a return.
             50969          (b) Except as provided in Subsections (6)(c) through (f), if the commission does not
             50970      make an assessment under Subsection (6)(a) within three years, the commission may not
             50971      commence a proceeding for the collection of the taxes after the expiration of the three-year
             50972      period.
             50973          (c) Notwithstanding Subsections (6)(a) and (b), the commission may make an
             50974      assessment or commence a proceeding to collect a tax at any time if a deficiency is due to:
             50975          (i) fraud; or
             50976          (ii) failure to file a return.
             50977          (d) Notwithstanding Subsections (6)(a) and (b), beginning on July 1, 1998, the
             50978      commission may extend the period to make an assessment or to commence a proceeding to
             50979      collect the tax under this chapter if:
             50980          (i) the three-year period under this Subsection (6) has not expired; and
             50981          (ii) the commission and the taxpayer sign a written agreement:
             50982          (A) authorizing the extension; and
             50983          (B) providing for the length of the extension.
             50984          (e) If the commission delays an audit at the request of a taxpayer, the commission may
             50985      make an assessment as provided in Subsection (6)(f) if:
             50986          (i) the taxpayer subsequently refuses to agree to an extension request by the
             50987      commission; and
             50988          (ii) the three-year period under this Subsection (6) expires before the commission
             50989      completes the audit.

             50990          (f) An assessment under Subsection (6)(e) shall be:
             50991          (i) for the time period for which the commission could not make an assessment because
             50992      of the expiration of the three-year period; and
             50993          (ii) in an amount equal to the difference between:
             50994          (A) the commission's estimate of the amount of taxes the taxpayer would have been
             50995      assessed for the time period described in Subsection (6)(f)(i); and
             50996          (B) the amount of taxes the taxpayer actually paid for the time period described in
             50997      Subsection (6)(f)(i).
             50998          Section 1026. Section 59-12-114 is amended to read:
             50999           59-12-114. Taxpayer objections -- Available remedies.
             51000          (1) A taxpayer may object to a notice of deficiency or notice of assessment issued by
             51001      the commission by applying to the commission as provided in [Title 63, Chapter 46b] Title 63G,
             51002      Chapter 4, Administrative Procedures Act.
             51003          (2) A taxpayer who has not previously adjudicated a tax deficiency as provided in
             51004      Subsection (1) may object to a final assessment issued by the commission by:
             51005          (a) paying the tax; and
             51006          (b) filing a claim for a refund as provided in Section 59-12-110 .
             51007          Section 1027. Section 59-12-207 is amended to read:
             51008           59-12-207. Report of tax collections -- Point of sale when retailer has no
             51009      permanent place of business or more than one place of business is determined by rule of
             51010      commission -- Public utilities -- Telecommunications service.
             51011          (1) Except as provided in Subsection (5), any sales and use taxes collected under this
             51012      part shall be reported to the commission on forms that accurately identify the location where the
             51013      transaction resulting in a tax under this chapter is consummated.
             51014          (2) Except as provided in Subsection (5), for purposes of this part, the location of
             51015      where a transaction is consummated:
             51016          (a) is determined under rules of the commission if:
             51017          (i) a retailer has no permanent place of business in the state; or

             51018          (ii) has more than one place of business;
             51019          (b) is where a purchaser receives the following products or services sold by a public
             51020      utility, as defined in Section 54-2-1 , to that purchaser:
             51021          (i) gas; or
             51022          (ii) electricity; and
             51023          (c) is as provided in Section 59-12-207.4 for a service described in Section
             51024      59-12-207.4 .
             51025          (3) The form required under Subsection (1) shall:
             51026          (a) accompany the sales and use tax returns required under this chapter; and
             51027          (b) identify the location of any transaction consummated during the return filing period.
             51028          (4) Subject to Subsection (5) and in accordance with [Title 63, Chapter 46a] Title 63G,
             51029      Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules regarding the
             51030      determination of the location of where under Subsection (2)(a) a transaction is consummated.
             51031          (5) Notwithstanding Subsections (1) and (2), mobile telecommunications service is
             51032      subject to the sourcing rules provided in the Mobile Telecommunications Sourcing Act, 4
             51033      U.S.C. Sec. 116 et seq.
             51034          Section 1028. Section 59-12-208.1 is amended to read:
             51035           59-12-208.1. Enactment or repeal of tax -- Effective date -- Notice requirements.
             51036          (1) For purposes of this section:
             51037          (a) "Annexation" means an annexation to:
             51038          (i) a county under Title 17, Chapter 2, Annexation to County; or
             51039          (ii) a city or town under Title 10, Chapter 2, Part 4, Annexation.
             51040          (b) "Annexing area" means an area that is annexed into a county, city, or town.
             51041          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after July 1, 2004, a
             51042      county, city, or town enacts or repeals a tax under this part, the enactment or repeal shall take
             51043      effect:
             51044          (i) on the first day of a calendar quarter; and
             51045          (ii) after a 90-day period beginning on the date the commission receives notice meeting

             51046      the requirements of Subsection (2)(b) from the county, city, or town.
             51047          (b) The notice described in Subsection (2)(a)(ii) shall state:
             51048          (i) that the county, city, or town will enact or repeal a tax under this part;
             51049          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
             51050          (iii) the effective date of the tax described in Subsection (2)(b)(i); and
             51051          (iv) if the county, city, or town enacts the tax described in Subsection (2)(b)(i), the rate
             51052      of the tax.
             51053          (c) (i) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
             51054      (2)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             51055          (A) that begins after the effective date of the enactment of the tax; and
             51056          (B) if the billing period for the transaction begins before the effective date of the
             51057      enactment of the tax under Section 59-12-204 .
             51058          (ii) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
             51059      (2)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             51060          (A) that began before the effective date of the repeal of the tax; and
             51061          (B) if the billing period for the transaction begins before the effective date of the repeal
             51062      of the tax imposed under Section 59-12-204 .
             51063          (iii) Subsections (2)(c)(i) and (ii) apply to transactions subject to a tax under:
             51064          (A) Subsection 59-12-103 (1)(b);
             51065          (B) Subsection 59-12-103 (1)(c);
             51066          (C) Subsection 59-12-103 (1)(d);
             51067          (D) Subsection 59-12-103 (1)(e);
             51068          (E) Subsection 59-12-103 (1)(f);
             51069          (F) Subsection 59-12-103 (1)(g);
             51070          (G) Subsection 59-12-103 (1)(h);
             51071          (H) Subsection 59-12-103 (1)(i);
             51072          (I) Subsection 59-12-103 (1)(j); or
             51073          (J) Subsection 59-12-103 (1)(k).

             51074          (d) (i) Notwithstanding Subsection (2)(a), if a tax due under this chapter on a catalogue
             51075      sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment
             51076      or repeal of a tax described in Subsection (2)(a) takes effect:
             51077          (A) on the first day of a calendar quarter; and
             51078          (B) beginning 60 days after the effective date of the enactment or repeal under
             51079      Subsection (2)(a).
             51080          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51081      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             51082          (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
             51083      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             51084      part for an annexing area, the enactment or repeal shall take effect:
             51085          (i) on the first day of a calendar quarter; and
             51086          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             51087      the requirements of Subsection (3)(b) from the county, city, or town that annexes the annexing
             51088      area.
             51089          (b) The notice described in Subsection (3)(a)(ii) shall state:
             51090          (i) that the annexation described in Subsection (3)(a) will result in an enactment or
             51091      repeal of a tax under this part for the annexing area;
             51092          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
             51093          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
             51094          (iv) the rate of the tax described in Subsection (3)(b)(i).
             51095          (c) (i) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
             51096      (3)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             51097          (A) that begins after the effective date of the enactment of the tax; and
             51098          (B) if the billing period for the transaction begins before the effective date of the
             51099      enactment of the tax under Section 59-12-204 .
             51100          (ii) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
             51101      (3)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:

             51102          (A) that began before the effective date of the repeal of the tax; and
             51103          (B) if the billing period for the transaction begins before the effective date of the repeal
             51104      of the tax imposed under Section 59-12-204 .
             51105          (iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under:
             51106          (A) Subsection 59-12-103 (1)(b);
             51107          (B) Subsection 59-12-103 (1)(c);
             51108          (C) Subsection 59-12-103 (1)(d);
             51109          (D) Subsection 59-12-103 (1)(e);
             51110          (E) Subsection 59-12-103 (1)(f);
             51111          (F) Subsection 59-12-103 (1)(g);
             51112          (G) Subsection 59-12-103 (1)(h);
             51113          (H) Subsection 59-12-103 (1)(i);
             51114          (I) Subsection 59-12-103 (1)(j); or
             51115          (J) Subsection 59-12-103 (1)(k).
             51116          (d) (i) Notwithstanding Subsection (3)(a), if a tax due under this chapter on a catalogue
             51117      sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment
             51118      or repeal of a tax described in Subsection (3)(a) takes effect:
             51119          (A) on the first day of a calendar quarter; and
             51120          (B) beginning 60 days after the effective date of the enactment or repeal under
             51121      Subsection (3)(a).
             51122          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51123      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             51124          Section 1029. Section 59-12-209 is amended to read:
             51125           59-12-209. Participation of counties, cities, and towns in administration and
             51126      enforcement of local option sales and use tax.
             51127          (1) Notwithstanding the provisions of [Title 63, Chapter 46b] Title 63G, Chapter 4,
             51128      Administrative Procedures Act, a county, city, or town shall not have the right to any of the
             51129      following, except as specifically allowed by Subsection (2) and Section 59-12-210 :

             51130          (a) to inspect, review, or have access to any taxpayer sales and use tax records; or
             51131          (b) to be informed of, participate in, intervene in, or appeal from any adjudicative
             51132      proceeding commenced pursuant to Section [ 63-46b-3 ] 63G-4-201 to determine the liability of
             51133      any taxpayer for sales and use tax imposed pursuant to Title 59, Chapter 12, Sales and Use Tax
             51134      Act.
             51135          (2) Counties, cities, and towns shall have access to records and information on file with
             51136      the commission, and shall have the right to notice of, and such rights to intervene in or to appeal
             51137      from, a proposed final agency action of the commission as follows:
             51138          (a) If the commission, following a formal adjudicative proceeding commenced pursuant
             51139      to [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, proposes to
             51140      take final agency action that would reduce the amount of sales and use tax liability alleged in the
             51141      notice of deficiency, the commission shall provide notice of a proposed agency action to each
             51142      qualified county, city, and town.
             51143          (b) For purposes of this section, a county, city, or town is a qualified county, city, or
             51144      town if a proposed final agency action reduces the local option sales and use tax distributable to
             51145      that county, city, or town by more than $10,000 below the amount of the tax that would have
             51146      been distributable to that county, city, or town had a notice of deficiency, as described in
             51147      Section 59-12-110 , not been reduced.
             51148          (c) A qualified county, city, or town may designate a representative who shall have the
             51149      right to review the record of the formal hearing and any other commission records relating to a
             51150      proposed final agency action subject to the confidentiality provisions of Section 59-1-403 .
             51151          (d) No later than ten days after receiving the notice of the commission's proposed final
             51152      agency action, a qualified county, city, or town may file a notice of intervention with the
             51153      commission.
             51154          (e) No later than 20 days after filing a notice of intervention, if a qualified county, city,
             51155      or town objects to the proposed final agency action, that qualified county, city, or town may file
             51156      a petition for reconsideration with the commission and shall serve copies of the petition on the
             51157      taxpayer and the appropriate division in the commission.

             51158          (f) The taxpayer and appropriate division in the commission may each file a response to
             51159      the petition for reconsideration within 20 days of receipt of the petition for reconsideration.
             51160          (g) After consideration of the petition for reconsideration and any response, and any
             51161      additional proceeding the commission considers appropriate, the commission may affirm,
             51162      modify, or amend its proposed final agency action. The taxpayer and any qualified county, city,
             51163      or town that has filed a petition for reconsideration may appeal the final agency action.
             51164          Section 1030. Section 59-12-210 is amended to read:
             51165           59-12-210. Commission to provide data to counties.
             51166          (1) (a) The commission shall provide to each county the sales and use tax collection
             51167      data necessary to verify that the local sales and use tax revenues collected by the commission
             51168      are distributed to each county, city, and town in accordance with Sections 59-12-205 ,
             51169      59-12-206 , 59-12-207 , and 59-12-207.4 .
             51170          (b) The data described in Subsection (1)(a) shall include the commission's reports of
             51171      seller sales, sales and use tax distribution reports, and a breakdown of local revenues.
             51172          (2) (a) In addition to the access to information provided in Subsection (1) and Section
             51173      59-12-109 , the commission shall provide a county, city, or town with copies of returns and
             51174      other information required by this chapter relating to a tax under this chapter.
             51175          (b) The information described in Subsection (2)(a) is available only in official matters
             51176      and must be requested in writing by the chief executive officer or the chief executive officer's
             51177      designee.
             51178          (c) The request described in Subsection (2)(b) shall specifically indicate the information
             51179      being sought and how the information will be used.
             51180          (d) Information received pursuant to the request described in Subsection (2)(b) shall be:
             51181          (i) classified as private or protected under Section [ 63-2-302 ] 63G-2-302 or [ 63-2-304 ]
             51182      63G-2-305 ; and
             51183          (ii) subject to the confidentiality provisions of Section 59-1-403 .
             51184          Section 1031. Section 59-12-301 is amended to read:
             51185           59-12-301. Transient room tax -- Rate -- Expenditure of revenues -- Enactment

             51186      or repeal of tax -- Tax rate change -- Effective date -- Notice requirements.
             51187          (1) (a) A county legislative body may impose a tax on charges for the accommodations
             51188      and services described in Subsection 59-12-103 (1)(i) at a rate of not to exceed 4.25% beginning
             51189      on or after October 1, 2006.
             51190          (b) Subject to Subsection (2), the revenues raised from the tax imposed under
             51191      Subsection (1)(a) shall be used for the purposes listed in Section 17-31-2 .
             51192          (c) The tax imposed under Subsection (1)(a) shall be in addition to the tax imposed
             51193      under Part 6, Tourism, Recreation, Cultural, and Convention Facilities Tax.
             51194          (2) If a county legislative body of a county of the first class imposes a tax under this
             51195      section, beginning on July 1, 2007, and ending on June 30, 2027, each year the first 15% of the
             51196      revenues collected from the tax authorized by Subsection (1)(a) within that county shall be:
             51197          (a) deposited into the Transient Room Tax Fund created by Section [ 63-38f-2203 ]
             51198      63M-1-2203 ; and
             51199          (b) expended as provided in Section [ 63-38f-2203 ] 63M-1-2203 .
             51200          (3) Subject to Subsection (4), a county legislative body:
             51201          (a) may increase or decrease the tax authorized under this part; and
             51202          (b) shall regulate the tax authorized under this part by ordinance.
             51203          (4) (a) For purposes of this Subsection (4):
             51204          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
             51205      Annexation to County.
             51206          (ii) "Annexing area" means an area that is annexed into a county.
             51207          (b) (i) Except as provided in Subsection (4)(c), if, on or after July 1, 2004, a county
             51208      enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
             51209      change shall take effect:
             51210          (A) on the first day of a calendar quarter; and
             51211          (B) after a 90-day period beginning on the date the commission receives notice meeting
             51212      the requirements of Subsection (4)(b)(ii) from the county.
             51213          (ii) The notice described in Subsection (4)(b)(i)(B) shall state:

             51214          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
             51215          (B) the statutory authority for the tax described in Subsection (4)(b)(ii)(A);
             51216          (C) the effective date of the tax described in Subsection (4)(b)(ii)(A); and
             51217          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             51218      (4)(b)(ii)(A), the rate of the tax.
             51219          (c) (i) Notwithstanding Subsection (4)(b)(i), for a transaction described in Subsection
             51220      (4)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             51221      first billing period:
             51222          (A) that begins after the effective date of the enactment of the tax or the tax rate
             51223      increase; and
             51224          (B) if the billing period for the transaction begins before the effective date of the
             51225      enactment of the tax or the tax rate increase imposed under this section.
             51226          (ii) Notwithstanding Subsection (4)(b)(i), for a transaction described in Subsection
             51227      (4)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             51228      billing period:
             51229          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             51230      and
             51231          (B) if the billing period for the transaction begins before the effective date of the repeal
             51232      of the tax or the tax rate decrease imposed under this section.
             51233          (iii) Subsections (4)(c)(i) and (ii) apply to transactions subject to a tax under Subsection
             51234      59-12-103 (1)(i).
             51235          (d) (i) Except as provided in Subsection (4)(e), if, for an annexation that occurs on or
             51236      after July 1, 2004, the annexation will result in the enactment, repeal, or a change in the rate of
             51237      a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
             51238          (A) on the first day of a calendar quarter; and
             51239          (B) after a 90-day period beginning on the date the commission receives notice meeting
             51240      the requirements of Subsection (4)(d)(ii) from the county that annexes the annexing area.
             51241          (ii) The notice described in Subsection (4)(d)(i)(B) shall state:

             51242          (A) that the annexation described in Subsection (4)(d)(i) will result in an enactment,
             51243      repeal, or change in the rate of a tax under this part for the annexing area;
             51244          (B) the statutory authority for the tax described in Subsection (4)(d)(ii)(A);
             51245          (C) the effective date of the tax described in Subsection(4)(d)(ii)(A); and
             51246          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             51247      (4)(d)(ii)(A), the rate of the tax.
             51248          (e) (i) Notwithstanding Subsection(4)(d)(i), for a transaction described in Subsection
             51249      (4)(e)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             51250      first billing period:
             51251          (A) that begins after the effective date of the enactment of the tax or the tax rate
             51252      increase; and
             51253          (B) if the billing period for the transaction begins before the effective date of the
             51254      enactment of the tax or the tax rate increase imposed under this section.
             51255          (ii) Notwithstanding Subsection(4)(d)(i), for a transaction described in Subsection
             51256      (4)(e)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             51257      billing period:
             51258          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             51259      and
             51260          (B) if the billing period for the transaction begins before the effective date of the repeal
             51261      of the tax or the tax rate decrease imposed under this section.
             51262          (iii) Subsections(4)(e)(i) and (ii) apply to transactions subject to a tax under Subsection
             51263      59-12-103 (1)(i).
             51264          Section 1032. Section 59-12-403 is amended to read:
             51265           59-12-403. Enactment or repeal of tax -- Tax rate change -- Effective date --
             51266      Notice requirements -- Administration, collection, and enforcement of tax.
             51267          (1) For purposes of this section:
             51268          (a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
             51269      4, Annexation.

             51270          (b) "Annexing area" means an area that is annexed into a city or town.
             51271          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, a
             51272      city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             51273      repeal, or change shall take effect:
             51274          (i) on the first day of a calendar quarter; and
             51275          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             51276      the requirements of Subsection (2)(b) from the city or town.
             51277          (b) The notice described in Subsection (2)(a)(ii) shall state:
             51278          (i) that the city or town will enact or repeal a tax or change the rate of a tax under this
             51279      part;
             51280          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
             51281          (iii) the effective date of the tax described in Subsection (2)(b)(i); and
             51282          (iv) if the city or town enacts the tax or changes the rate of the tax described in
             51283      Subsection (2)(b)(i), the rate of the tax.
             51284          (c) (i) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
             51285      (2)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             51286      first billing period:
             51287          (A) that begins after the effective date of the enactment of the tax or the tax rate
             51288      increase; and
             51289          (B) if the billing period for the transaction begins before the effective date of the
             51290      enactment of the tax or the tax rate increase imposed under:
             51291          (I) Section 59-12-401 ; or
             51292          (II) Section 59-12-402 .
             51293          (ii) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
             51294      (2)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             51295      billing period:
             51296          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             51297      and

             51298          (B) if the billing period for the transaction begins before the effective date of the repeal
             51299      of the tax or the tax rate decrease imposed under:
             51300          (I) Section 59-12-401 ; or
             51301          (II) Section 59-12-402 .
             51302          (iii) Subsections (2)(c)(i) and (ii) apply to transactions subject to a tax under:
             51303          (A) Subsection 59-12-103 (1)(b);
             51304          (B) Subsection 59-12-103 (1)(c);
             51305          (C) Subsection 59-12-103 (1)(d);
             51306          (D) Subsection 59-12-103 (1)(e);
             51307          (E) Subsection 59-12-103 (1)(f);
             51308          (F) Subsection 59-12-103 (1)(g);
             51309          (G) Subsection 59-12-103 (1)(h);
             51310          (H) Subsection 59-12-103 (1)(i);
             51311          (I) Subsection 59-12-103 (1)(j); or
             51312          (J) Subsection 59-12-103 (1)(k).
             51313          (d) (i) Notwithstanding Subsection (2)(a), if a tax due under this chapter on a catalogue
             51314      sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment,
             51315      repeal, or change in the rate of a tax described in Subsection (2)(a) takes effect:
             51316          (A) on the first day of a calendar quarter; and
             51317          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             51318      rate of the tax under Subsection (2)(a).
             51319          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51320      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             51321          (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
             51322      on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate
             51323      of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
             51324          (i) on the first day of a calendar quarter; and
             51325          (ii) after a 90-day period beginning on the date the commission receives notice meeting

             51326      the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
             51327          (b) The notice described in Subsection (3)(a)(ii) shall state:
             51328          (i) that the annexation described in Subsection (3)(a) will result in an enactment, repeal,
             51329      or change in the rate of a tax under this part for the annexing area;
             51330          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
             51331          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
             51332          (iv) if the city or town enacts the tax or changes the rate of the tax described in
             51333      Subsection (3)(b)(i), the rate of the tax.
             51334          (c) (i) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
             51335      (3)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             51336      first billing period:
             51337          (A) that begins after the effective date of the enactment of the tax or the tax rate
             51338      increase; and
             51339          (B) if the billing period for the transaction begins before the effective date of the
             51340      enactment of the tax or the tax rate increase imposed under:
             51341          (I) Section 59-12-401 ; or
             51342          (II) Section 59-12-402 .
             51343          (ii) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
             51344      (3)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             51345      billing period:
             51346          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             51347      and
             51348          (B) if the billing period for the transaction begins before the effective date of the repeal
             51349      of the tax or the tax rate decrease imposed under:
             51350          (I) Section 59-12-401 ; or
             51351          (II) Section 59-12-402 .
             51352          (iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under:
             51353          (A) Subsection 59-12-103 (1)(b);

             51354          (B) Subsection 59-12-103 (1)(c);
             51355          (C) Subsection 59-12-103 (1)(d);
             51356          (D) Subsection 59-12-103 (1)(e);
             51357          (E) Subsection 59-12-103 (1)(f);
             51358          (F) Subsection 59-12-103 (1)(g);
             51359          (G) Subsection 59-12-103 (1)(h);
             51360          (H) Subsection 59-12-103 (1)(i);
             51361          (I) Subsection 59-12-103 (1)(j); or
             51362          (J) Subsection 59-12-103 (1)(k).
             51363          (d) (i) Notwithstanding Subsection (3)(a), if a tax due under this chapter on a catalogue
             51364      sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment,
             51365      repeal, or change in the rate of a tax described in Subsection (3)(a) takes effect:
             51366          (A) on the first day of a calendar quarter; and
             51367          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             51368      rate of the tax under Subsection (3)(a).
             51369          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51370      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             51371          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
             51372      administered, collected, and enforced in accordance with:
             51373          (i) the same procedures used to administer, collect, and enforce the tax under:
             51374          (A) Part 1, Tax Collection; or
             51375          (B) Part 2, Local Sales and Use Tax Act; and
             51376          (ii) Chapter 1, General Taxation Policies.
             51377          (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
             51378      Subsections 59-12-205 (2) through (7).
             51379          Section 1033. Section 59-12-504 is amended to read:
             51380           59-12-504. Enactment or repeal of tax -- Effective date -- Notice requirements --
             51381      Administration, collection, and enforcement of tax.

             51382          (1) For purposes of this section:
             51383          (a) "Annexation" means an annexation to:
             51384          (i) a county under Title 17, Chapter 2, Annexation to County; or
             51385          (ii) a city or town under Title 10, Chapter 2, Part 4, Annexation.
             51386          (b) "Annexing area" means an area that is annexed into a county, city, or town.
             51387          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, a
             51388      county, city, or town enacts or repeals a tax under this part, the enactment or repeal shall take
             51389      effect:
             51390          (i) on the first day of a calendar quarter; and
             51391          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             51392      the requirements of Subsection (2)(b) from the county, city, or town.
             51393          (b) The notice described in Subsection (2)(a)(ii) shall state:
             51394          (i) that the county, city, or town will enact or repeal a tax under this part;
             51395          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
             51396          (iii) the effective date of the tax described in Subsection (2)(b)(i); and
             51397          (iv) if the county, city, or town enacts the tax described in Subsection (2)(b)(i), the rate
             51398      of the tax.
             51399          (c) (i) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
             51400      (2)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             51401          (A) that begins after the effective date of the enactment of the tax; and
             51402          (B) if the billing period for the transaction begins before the effective date of the
             51403      enactment of the tax under:
             51404          (I) Section 59-12-501 ; or
             51405          (II) Section 59-12-502 .
             51406          (ii) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
             51407      (2)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             51408          (A) that began before the effective date of the repeal of the tax; and
             51409          (B) if the billing period for the transaction begins before the effective date of the repeal

             51410      of the tax imposed under:
             51411          (I) Section 59-12-501 ; or
             51412          (II) Section 59-12-502 .
             51413          (iii) Subsections (2)(c)(i) and (ii) apply to transactions subject to a tax under:
             51414          (A) Subsection 59-12-103 (1)(b);
             51415          (B) Subsection 59-12-103 (1)(c);
             51416          (C) Subsection 59-12-103 (1)(d);
             51417          (D) Subsection 59-12-103 (1)(e);
             51418          (E) Subsection 59-12-103 (1)(f);
             51419          (F) Subsection 59-12-103 (1)(g);
             51420          (G) Subsection 59-12-103 (1)(h);
             51421          (H) Subsection 59-12-103 (1)(i);
             51422          (I) Subsection 59-12-103 (1)(j); or
             51423          (J) Subsection 59-12-103 (1)(k).
             51424          (d) (i) Notwithstanding Subsection (2)(a), if a tax due under this chapter on a catalogue
             51425      sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment
             51426      or repeal of a tax described in Subsection (2)(a) takes effect:
             51427          (A) on the first day of a calendar quarter; and
             51428          (B) beginning 60 days after the effective date of the enactment or repeal under
             51429      Subsection (2)(a).
             51430          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51431      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             51432          (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
             51433      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             51434      part for an annexing area, the enactment or repeal shall take effect:
             51435          (i) on the first day of a calendar quarter; and
             51436          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             51437      the requirements of Subsection (3)(b) from the county, city, or town that annexes the annexing

             51438      area.
             51439          (b) The notice described in Subsection (3)(a)(ii) shall state:
             51440          (i) that the annexation described in Subsection (3)(a) will result in an enactment or
             51441      repeal of a tax under this part for the annexing area;
             51442          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
             51443          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
             51444          (iv) the rate of the tax described in Subsection (3)(b)(i).
             51445          (c) (i) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
             51446      (3)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             51447          (A) that begins after the effective date of the enactment of the tax; and
             51448          (B) if the billing period for the transaction begins before the effective date of the
             51449      enactment of the tax under:
             51450          (I) Section 59-12-501 ; or
             51451          (II) Section 59-12-502 .
             51452          (ii) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
             51453      (3)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             51454          (A) that began before the effective date of the repeal of the tax; and
             51455          (B) if the billing period for the transaction begins before the effective date of the repeal
             51456      of the tax imposed under:
             51457          (I) Section 59-12-501 ; or
             51458          (II) Section 59-12-502 .
             51459          (iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under:
             51460          (A) Subsection 59-12-103 (1)(b);
             51461          (B) Subsection 59-12-103 (1)(c);
             51462          (C) Subsection 59-12-103 (1)(d);
             51463          (D) Subsection 59-12-103 (1)(e);
             51464          (E) Subsection 59-12-103 (1)(f);
             51465          (F) Subsection 59-12-103 (1)(g);

             51466          (G) Subsection 59-12-103 (1)(h);
             51467          (H) Subsection 59-12-103 (1)(i);
             51468          (I) Subsection 59-12-103 (1)(j); or
             51469          (J) Subsection 59-12-103 (1)(k).
             51470          (d) (i) Notwithstanding Subsection (3)(a), if a tax due under this chapter on a catalogue
             51471      sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment
             51472      or repeal of a tax described in Subsection (3)(a) takes effect:
             51473          (A) on the first day of a calendar quarter; and
             51474          (B) beginning 60 days after the effective date of the enactment or repeal under
             51475      Subsection (3)(a).
             51476          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51477      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             51478          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
             51479      administered, collected, and enforced in accordance with:
             51480          (i) the same procedures used to administer, collect, and enforce the tax under:
             51481          (A) Part 1, Tax Collection; or
             51482          (B) Part 2, Local Sales and Use Tax Act; and
             51483          (ii) Chapter 1, General Taxation Policies.
             51484          (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
             51485      Subsections 59-12-205 (2) through (7).
             51486          Section 1034. Section 59-12-703 is amended to read:
             51487           59-12-703. Opinion question election -- Base -- Rate -- Imposition of tax -- Uses of
             51488      tax monies -- Enactment or repeal of tax -- Effective date -- Notice requirements.
             51489          (1) (a) (i) A county legislative body may submit an opinion question to the residents of
             51490      that county, by majority vote of all members of the legislative body, so that each resident of the
             51491      county, except residents in municipalities that have already imposed a sales and use tax under
             51492      Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and Zoological
             51493      Organizations or Facilities, has an opportunity to express the resident's opinion on the

             51494      imposition of a local sales and use tax of .1% on the transactions described in Subsection
             51495      59-12-103 (1) located within the county, to fund recreational and zoological facilities, botanical,
             51496      cultural, and zoological organizations, and rural radio stations, in that county.
             51497          (ii) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
             51498      tax under this section on:
             51499          (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             51500      are exempt from taxation under Section 59-12-104 ;
             51501          (B) sales and uses within municipalities that have already imposed a sales and use tax
             51502      under Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and
             51503      Zoological Organizations or Facilities;
             51504          (C) amounts paid or charged by a seller that collects a tax under Subsection
             51505      59-12-107 (1)(b); and
             51506          (D) except as provided in Subsection (1)(c), amounts paid or charged for food and food
             51507      ingredients.
             51508          (b) For purposes of this Subsection (1), the location of a transaction shall be determined
             51509      in accordance with Section 59-12-207 .
             51510          (c) A county legislative body imposing a tax under this section shall impose the tax on
             51511      amounts paid or charged for food and food ingredients if:
             51512          (i) the food and food ingredients are sold as part of a bundled transaction attributable to
             51513      food and food ingredients and tangible personal property other than food and food ingredients;
             51514      and
             51515          (ii) the seller collecting the tax is a seller other than a seller that collects a tax in
             51516      accordance with Subsection 59-12-107 (1)(b).
             51517          (d) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
             51518      Government Bonding Act.
             51519          (2) (a) If the county legislative body determines that a majority of the county's
             51520      registered voters voting on the imposition of the tax have voted in favor of the imposition of the
             51521      tax as prescribed in Subsection (1)(a), the county legislative body may impose the tax by a

             51522      majority vote of all members of the legislative body on the transactions:
             51523          (i) described in Subsection (1); and
             51524          (ii) within the county, including the cities and towns located in the county, except those
             51525      cities and towns that have already imposed a sales and use tax under Part 14, City or Town
             51526      Option Funding For Botanical, Cultural, Recreational, and Zoological Organizations or
             51527      Facilities.
             51528          (b) A county legislative body may revise county ordinances to reflect statutory changes
             51529      to the distribution formula or eligible recipients of revenues generated from a tax imposed under
             51530      Subsection (2)(a):
             51531          (i) after the county legislative body submits an opinion question to residents of the
             51532      county in accordance with Subsection (1) giving them the opportunity to express their opinion
             51533      on the proposed revisions to county ordinances; and
             51534          (ii) if the county legislative body determines that a majority of those voting on the
             51535      opinion question have voted in favor of the revisions.
             51536          (3) The monies generated from any tax imposed under Subsection (2) shall be used for
             51537      funding:
             51538          (a) recreational and zoological facilities located within the county or a city or town
             51539      located in the county, except a city or town that has already imposed a sales and use tax under
             51540      Part 14, City or Town Option Funding For Botanical, Cultural, Recreational, and Zoological
             51541      Organizations or Facilities; and
             51542          (b) ongoing operating expenses of:
             51543          (i) recreational facilities described in Subsection (3)(a);
             51544          (ii) botanical, cultural, and zoological organizations within the county; and
             51545          (iii) rural radio stations within the county.
             51546          (4) (a) A tax authorized under this part shall be:
             51547          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
             51548      accordance with:
             51549          (A) the same procedures used to administer, collect, and enforce the tax under:

             51550          (I) Part 1, Tax Collection; or
             51551          (II) Part 2, Local Sales and Use Tax Act; and
             51552          (B) Chapter 1, General Taxation Policies; and
             51553          (ii) levied for a period of ten years and may be reauthorized at the end of the ten-year
             51554      period in accordance with this section.
             51555          (b) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
             51556      Subsections 59-12-205 (2) through (7).
             51557          (5) (a) For purposes of this Subsection (5):
             51558          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
             51559      Annexation to County.
             51560          (ii) "Annexing area" means an area that is annexed into a county.
             51561          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
             51562      county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
             51563          (A) on the first day of a calendar quarter; and
             51564          (B) after a 90-day period beginning on the date the commission receives notice meeting
             51565      the requirements of Subsection (5)(b)(ii) from the county.
             51566          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             51567          (A) that the county will enact or repeal a tax under this part;
             51568          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             51569          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             51570          (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the tax.
             51571          (c) (i) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
             51572      (5)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             51573          (A) that begins after the effective date of the enactment of the tax; and
             51574          (B) if the billing period for the transaction begins before the effective date of the
             51575      enactment of the tax under this section.
             51576          (ii) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
             51577      (5)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:

             51578          (A) that began before the effective date of the repeal of the tax; and
             51579          (B) if the billing period for the transaction begins before the effective date of the repeal
             51580      of the tax imposed under this section.
             51581          (iii) Subsections (5)(c)(i) and (ii) apply to transactions subject to a tax under:
             51582          (A) Subsection 59-12-103 (1)(b);
             51583          (B) Subsection 59-12-103 (1)(c);
             51584          (C) Subsection 59-12-103 (1)(d);
             51585          (D) Subsection 59-12-103 (1)(e);
             51586          (E) Subsection 59-12-103 (1)(f);
             51587          (F) Subsection 59-12-103 (1)(g);
             51588          (G) Subsection 59-12-103 (1)(h);
             51589          (H) Subsection 59-12-103 (1)(i);
             51590          (I) Subsection 59-12-103 (1)(j); or
             51591          (J) Subsection 59-12-103 (1)(k).
             51592          (d) (i) Notwithstanding Subsection (5)(b)(i), if a tax due under this chapter on a
             51593      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
             51594      enactment or repeal of a tax described in Subsection (5)(b)(i) takes effect:
             51595          (A) on the first day of a calendar quarter; and
             51596          (B) beginning 60 days after the effective date of the enactment or repeal under
             51597      Subsection (5)(b)(i).
             51598          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51599      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             51600          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             51601      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             51602      part for an annexing area, the enactment or repeal shall take effect:
             51603          (A) on the first day of a calendar quarter; and
             51604          (B) after a 90-day period beginning on the date the commission receives notice meeting
             51605      the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.

             51606          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
             51607          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
             51608      repeal of a tax under this part for the annexing area;
             51609          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             51610          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             51611          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
             51612          (f) (i) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
             51613      (5)(f)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             51614          (A) that begins after the effective date of the enactment of the tax; and
             51615          (B) if the billing period for the transaction begins before the effective date of the
             51616      enactment of the tax under this section.
             51617          (ii) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
             51618      (5)(f)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             51619          (A) that began before the effective date of the repeal of the tax; and
             51620          (B) if the billing period for the transaction begins before the effective date of the repeal
             51621      of the tax imposed under this section.
             51622          (iii) Subsections (5)(f)(i) and (ii) apply to transactions subject to a tax under:
             51623          (A) Subsection 59-12-103 (1)(b);
             51624          (B) Subsection 59-12-103 (1)(c);
             51625          (C) Subsection 59-12-103 (1)(d);
             51626          (D) Subsection 59-12-103 (1)(e);
             51627          (E) Subsection 59-12-103 (1)(f);
             51628          (F) Subsection 59-12-103 (1)(g);
             51629          (G) Subsection 59-12-103 (1)(h);
             51630          (H) Subsection 59-12-103 (1)(i);
             51631          (I) Subsection 59-12-103 (1)(j); or
             51632          (J) Subsection 59-12-103 (1)(k).
             51633          (g) (i) Notwithstanding Subsection (5)(e)(i), if a tax due under this chapter on a

             51634      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
             51635      enactment or repeal of a tax described in Subsection (5)(e)(i) takes effect:
             51636          (A) on the first day of a calendar quarter; and
             51637          (B) beginning 60 days after the effective date of the enactment or repeal under
             51638      Subsection (5)(e)(i).
             51639          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51640      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             51641          Section 1035. Section 59-12-806 is amended to read:
             51642           59-12-806. Enactment or repeal of tax -- Tax rate change -- Effective date --
             51643      Notice requirements.
             51644          (1) For purposes of this section:
             51645          (a) "Annexation" means an annexation to:
             51646          (i) a county under Title 17, Chapter 2, Annexation to County; or
             51647          (ii) a city under Title 10, Chapter 2, Part 4, Annexation.
             51648          (b) "Annexing area" means an area that is annexed into a county or city.
             51649          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after July 1, 2004, a
             51650      county or city enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
             51651      repeal, or change shall take effect:
             51652          (i) on the first day of a calendar quarter; and
             51653          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             51654      the requirements of Subsection (2)(b) from the county or city.
             51655          (b) The notice described in Subsection (2)(a)(ii) shall state:
             51656          (i) that the county or city will enact or repeal a tax or change the rate of a tax under this
             51657      part;
             51658          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
             51659          (iii) the effective date of the tax described in Subsection (2)(b)(i); and
             51660          (iv) if the county or city enacts the tax or changes the rate of the tax described in
             51661      Subsection (2)(b)(i), the rate of the tax.

             51662          (c) (i) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
             51663      (2)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             51664      first billing period:
             51665          (A) that begins after the effective date of the enactment of the tax or the tax rate
             51666      increase; and
             51667          (B) if the billing period for the transaction begins before the effective date of the
             51668      enactment of the tax or the tax rate increase imposed under:
             51669          (I) Section 59-12-802 ; or
             51670          (II) Section 59-12-804 .
             51671          (ii) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
             51672      (2)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             51673      billing period:
             51674          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             51675      and
             51676          (B) if the billing period for the transaction begins before the effective date of the repeal
             51677      of the tax or the tax rate decrease imposed under:
             51678          (I) Section 59-12-802 ; or
             51679          (II) Section 59-12-804 .
             51680          (iii) Subsections (2)(c)(i) and (ii) apply to transactions subject to a tax under:
             51681          (A) Subsection 59-12-103 (1)(b);
             51682          (B) Subsection 59-12-103 (1)(c);
             51683          (C) Subsection 59-12-103 (1)(d);
             51684          (D) Subsection 59-12-103 (1)(e);
             51685          (E) Subsection 59-12-103 (1)(f);
             51686          (F) Subsection 59-12-103 (1)(g);
             51687          (G) Subsection 59-12-103 (1)(h);
             51688          (H) Subsection 59-12-103 (1)(i);
             51689          (I) Subsection 59-12-103 (1)(j); or

             51690          (J) Subsection 59-12-103 (1)(k).
             51691          (d) (i) Notwithstanding Subsection (2)(a), if a tax due under this chapter on a catalogue
             51692      sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment,
             51693      repeal, or change in the rate of a tax described in Subsection (2)(a) takes effect:
             51694          (A) on the first day of a calendar quarter; and
             51695          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             51696      rate of the tax under Subsection (2)(a).
             51697          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51698      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             51699          (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
             51700      on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate
             51701      of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
             51702          (i) on the first day of a calendar quarter; and
             51703          (ii) after a 90-day period beginning on the date the commission receives notice meeting
             51704      the requirements of Subsection (3)(b) from the county or city that annexes the annexing area.
             51705          (b) The notice described in Subsection (3)(a)(ii) shall state:
             51706          (i) that the annexation described in Subsection (3)(a) will result in an enactment, repeal,
             51707      or change in the rate of a tax under this part for the annexing area;
             51708          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
             51709          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
             51710          (iv) if the county or city enacts the tax or changes the rate of the tax described in
             51711      Subsection (3)(b)(i), the rate of the tax.
             51712          (c) (i) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
             51713      (3)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             51714      first billing period:
             51715          (A) that begins after the effective date of the enactment of the tax or the tax rate
             51716      increase; and
             51717          (B) if the billing period for the transaction begins before the effective date of the

             51718      enactment of the tax or the tax rate increase imposed under:
             51719          (I) Section 59-12-802 ; or
             51720          (II) Section 59-12-804 .
             51721          (ii) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
             51722      (3)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             51723      billing period:
             51724          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             51725      and
             51726          (B) if the billing period for the transaction begins before the effective date of the repeal
             51727      of the tax or the tax rate decrease imposed under:
             51728          (I) Section 59-12-802 ; or
             51729          (II) Section 59-12-804 .
             51730          (iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under:
             51731          (A) Subsection 59-12-103 (1)(b);
             51732          (B) Subsection 59-12-103 (1)(c);
             51733          (C) Subsection 59-12-103 (1)(d);
             51734          (D) Subsection 59-12-103 (1)(e);
             51735          (E) Subsection 59-12-103 (1)(f);
             51736          (F) Subsection 59-12-103 (1)(g);
             51737          (G) Subsection 59-12-103 (1)(h);
             51738          (H) Subsection 59-12-103 (1)(i);
             51739          (I) Subsection 59-12-103 (1)(j); or
             51740          (J) Subsection 59-12-103 (1)(k).
             51741          (d) (i) Notwithstanding Subsection (3)(a), if a tax due under this chapter on a catalogue
             51742      sale is computed on the basis of sales and use tax rates published in the catalogue, an enactment,
             51743      repeal, or change in the rate of a tax described in Subsection (3)(a) takes effect:
             51744          (A) on the first day of a calendar quarter; and
             51745          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the

             51746      rate of a tax under Subsection (3)(a).
             51747          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51748      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             51749          Section 1036. Section 59-12-902 is amended to read:
             51750           59-12-902. Sales tax refund for qualified emergency food agencies -- Use of
             51751      amounts received as refund -- Administration -- Rulemaking authority.
             51752          (1) Beginning on January 1, 1998, a qualified emergency food agency may claim a sales
             51753      tax refund as provided in this section on the pounds of food and food ingredients donated to the
             51754      qualified emergency food agency.
             51755          (2) (a) Subject to the adjustments provided for in Subsection (2)(b), a qualified
             51756      emergency food agency may claim a refund in an amount equal to the pounds of food and food
             51757      ingredients donated to the qualified emergency food agency multiplied by:
             51758          (i) $1.70; and
             51759          (ii) the sum of:
             51760          (A) 4.75%; and
             51761          (B) the sum of the tax rates provided for in Subsection (2)(b).
             51762          (b) Tax rates authorized under the following apply to Subsection (2)(a)(ii)(B):
             51763          (i) the tax rate authorized by Section 59-12-204 ;
             51764          (ii) the tax rate authorized by Section 59-12-501 or Section 59-12-1001 , but only if all
             51765      of the counties, cities, and towns in the state impose the tax:
             51766          (A) under Section 59-12-501 ; or
             51767          (B) under Section 59-12-1001 ;
             51768          (iii) the tax rate authorized by Section 59-12-502 , but only if all of the counties, cities,
             51769      and towns in the state impose the tax under Section 59-12-502 ;
             51770          (iv) the tax rate authorized by Section 59-12-703 , but only if all of the counties in the
             51771      state impose the tax under Section 59-12-703 ; and
             51772          (v) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
             51773      state impose the tax under Section 59-12-1102 .

             51774          (c) Beginning on January 1, 1999, the commission shall annually adjust on or before the
             51775      second Monday of February the $1.70 provided in Subsection (2)(a)(i) by a percentage equal to
             51776      the percentage difference between the food at home category of the Consumer Price Index for:
             51777          (i) the preceding calendar year; and
             51778          (ii) calendar year 1997.
             51779          (3) To claim a sales tax refund under this section, a qualified emergency food agency
             51780      shall file an application with the commission.
             51781          (4) A qualified emergency food agency may use amounts received as a sales tax refund
             51782      under this section only for a purpose related to:
             51783          (a) warehousing and distributing food and food ingredients to other agencies and
             51784      organizations providing food and food ingredients to low-income persons; or
             51785          (b) providing food and food ingredients directly to low-income persons.
             51786          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51787      Administrative Rulemaking Act, the commission may make rules providing procedures for
             51788      implementing the sales tax refund under this section, including:
             51789          (a) standards for determining and verifying the amount of the sales tax refund; and
             51790          (b) procedures for a qualified emergency food agency to apply for a sales tax refund,
             51791      including the frequency with which a qualified emergency food agency may apply for a sales tax
             51792      refund.
             51793          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51794      Administrative Rulemaking Act, the Division of Housing and Community Development may
             51795      establish rules providing for the certification of emergency food agencies to claim a refund
             51796      under this part.
             51797          Section 1037. Section 59-12-1001 is amended to read:
             51798           59-12-1001. Authority to impose tax for highways or to fund a system for public
             51799      transit -- Base -- Rate -- Ordinance requirements -- Voter approval requirements --
             51800      Election requirements -- Notice of election requirements -- Exceptions to voter approval
             51801      requirements -- Enactment or repeal of tax -- Effective date -- Notice requirements.

             51802          (1) (a) A city or town in which the transactions described in Subsection 59-12-103 (1)
             51803      are not subject to a sales and use tax under Section 59-12-501 may as provided in this part
             51804      impose a sales and use tax of:
             51805          (i) beginning on January 1, 1998, and ending on December 31, 2007, .25% on the
             51806      transactions described in Subsection 59-12-103 (1) located within the city or town; or
             51807          (ii) beginning on January 1, 2008, .30% on the transactions described in Subsection
             51808      59-12-103 (1) located within the city or town.
             51809          (b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
             51810      section on:
             51811          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             51812      exempt from taxation under Section 59-12-104 ;
             51813          (ii) amounts paid or charged by a seller that collects a tax under Subsection
             51814      59-12-107 (1)(b); and
             51815          (iii) except as provided in Subsection (1)(d), amounts paid or charged for food and food
             51816      ingredients.
             51817          (c) For purposes of this Subsection (1), the location of a transaction shall be determined
             51818      in accordance with Section 59-12-207 .
             51819          (d) A city or town imposing a tax under this section shall impose the tax on amounts
             51820      paid or charged for food and food ingredients if:
             51821          (i) the food and food ingredients are sold as part of a bundled transaction attributable to
             51822      food and food ingredients and tangible personal property other than food and food ingredients;
             51823      and
             51824          (ii) the seller collecting the tax is a seller other than a seller that collects a tax in
             51825      accordance with Subsection 59-12-107 (1)(b).
             51826          (2) (a) A city or town imposing a tax under this part may use the revenues generated by
             51827      the tax:
             51828          (i) for the construction and maintenance of highways under the jurisdiction of the city
             51829      or town imposing the tax;

             51830          (ii) subject to Subsection (2)(b), to fund a system for public transit; or
             51831          (iii) for a combination of the purposes described in Subsections (2)(a)(i) and (ii).
             51832          (b) (i) For purposes of Subsection (2)(a)(ii) and except as provided in Subsection
             51833      (2)(b)(ii), "public transit" is as defined in Section 17B-2a-802 .
             51834          (ii) Notwithstanding Subsection (2)(b)(i), "public transit" does not include a fixed
             51835      guideway system.
             51836          (3) To impose a tax under this part, the governing body of the city or town shall:
             51837          (a) pass an ordinance approving the tax; and
             51838          (b) except as provided in Subsection (7) or (8), obtain voter approval for the tax as
             51839      provided in Subsection (4).
             51840          (4) To obtain voter approval for a tax under Subsection (3)(b), a city or town shall:
             51841          (a) hold an election during:
             51842          (i) a regular general election; or
             51843          (ii) a municipal general election; and
             51844          (b) publish notice of the election:
             51845          (i) 15 days or more before the day on which the election is held; and
             51846          (ii) in a newspaper of general circulation in the city or town.
             51847          (5) An ordinance approving a tax under this part shall provide an effective date for the
             51848      tax as provided in Subsection (6).
             51849          (6) (a) For purposes of this Subsection (6):
             51850          (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
             51851      4, Annexation.
             51852          (ii) "Annexing area" means an area that is annexed into a city or town.
             51853          (b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after April 1, 2008, a city
             51854      or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
             51855          (A) on the first day of a calendar quarter; and
             51856          (B) after a 90-day period beginning on the date the commission receives notice meeting
             51857      the requirements of Subsection (6)(b)(ii) from the city or town.

             51858          (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
             51859          (A) that the city or town will enact or repeal a tax under this part;
             51860          (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
             51861          (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
             51862          (D) if the city or town enacts the tax described in Subsection (6)(b)(ii)(A), the rate of
             51863      the tax.
             51864          (c) (i) Notwithstanding Subsection (6)(b)(i), for a transaction described in Subsection
             51865      (6)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             51866          (A) that begins after the effective date of the enactment of the tax; and
             51867          (B) if the billing period for the transaction begins before the effective date of the
             51868      enactment of the tax under Subsection (1).
             51869          (ii) Notwithstanding Subsection (6)(b)(i), for a transaction described in Subsection
             51870      (6)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             51871          (A) that began before the effective date of the repeal of the tax; and
             51872          (B) if the billing period for the transaction begins before the effective date of the repeal
             51873      of the tax imposed under Subsection (1).
             51874          (iii) Subsections (6)(c)(i) and (ii) apply to transactions subject to a tax under:
             51875          (A) Subsection 59-12-103 (1)(b);
             51876          (B) Subsection 59-12-103 (1)(c);
             51877          (C) Subsection 59-12-103 (1)(d);
             51878          (D) Subsection 59-12-103 (1)(e);
             51879          (E) Subsection 59-12-103 (1)(f);
             51880          (F) Subsection 59-12-103 (1)(g);
             51881          (G) Subsection 59-12-103 (1)(h);
             51882          (H) Subsection 59-12-103 (1)(i);
             51883          (I) Subsection 59-12-103 (1)(j); or
             51884          (J) Subsection 59-12-103 (1)(k).
             51885          (d) (i) Notwithstanding Subsection (6)(b)(i), if a tax due under this chapter on a

             51886      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
             51887      enactment or repeal of a tax described in Subsection (6)(b)(i) takes effect:
             51888          (A) on the first day of a calendar quarter; and
             51889          (B) beginning 60 days after the effective date of the enactment or repeal under
             51890      Subsection (6)(b)(i).
             51891          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51892      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             51893          (e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs
             51894      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             51895      part for an annexing area, the enactment or repeal shall take effect:
             51896          (A) on the first day of a calendar quarter; and
             51897          (B) after a 90-day period beginning on the date the commission receives notice meeting
             51898      the requirements of Subsection (6)(e)(ii) from the city or town that annexes the annexing area.
             51899          (ii) The notice described in Subsection (6)(e)(i)(B) shall state:
             51900          (A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or
             51901      repeal of a tax under this part for the annexing area;
             51902          (B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
             51903          (C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
             51904          (D) the rate of the tax described in Subsection (6)(e)(ii)(A).
             51905          (f) (i) Notwithstanding Subsection (6)(e)(i), for a transaction described in Subsection
             51906      (6)(f)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             51907          (A) that begins after the effective date of the enactment of the tax; and
             51908          (B) if the billing period for the transaction begins before the effective date of the
             51909      enactment of the tax under Subsection (1).
             51910          (ii) Notwithstanding Subsection (6)(e)(i), for a transaction described in Subsection
             51911      (6)(f)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             51912          (A) that began before the effective date of the repeal of the tax; and
             51913          (B) if the billing period for the transaction begins before the effective date of the repeal

             51914      of the tax imposed under Subsection (1).
             51915          (iii) Subsections (6)(f)(i) and (ii) apply to transactions subject to a tax under:
             51916          (A) Subsection 59-12-103 (1)(b);
             51917          (B) Subsection 59-12-103 (1)(c);
             51918          (C) Subsection 59-12-103 (1)(d);
             51919          (D) Subsection 59-12-103 (1)(e);
             51920          (E) Subsection 59-12-103 (1)(f);
             51921          (F) Subsection 59-12-103 (1)(g);
             51922          (G) Subsection 59-12-103 (1)(h);
             51923          (H) Subsection 59-12-103 (1)(i);
             51924          (I) Subsection 59-12-103 (1)(j); or
             51925          (J) Subsection 59-12-103 (1)(k).
             51926          (g) (i) Notwithstanding Subsection (6)(e)(i), if a tax due under this chapter on a
             51927      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
             51928      enactment or repeal of a tax described in Subsection (6)(e)(i) takes effect:
             51929          (A) on the first day of a calendar quarter; and
             51930          (B) beginning 60 days after the effective date of the enactment or repeal under
             51931      Subsection (6)(e)(i).
             51932          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             51933      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             51934          (7) (a) Except as provided in Subsection (7)(b), a city or town is not subject to the
             51935      voter approval requirements of Subsection (3)(b) if:
             51936          (i) on or before January 1, 1996, the city or town imposed a license fee or tax on
             51937      businesses based on gross receipts pursuant to Section 10-1-203 ; or
             51938          (ii) the city or town:
             51939          (A) on or before June 30, 2002, obtained voter approval in accordance with Subsection
             51940      (3)(b) to impose a tax under this part for a purpose described in Subsection (2)(a)(i); and
             51941          (B) on or after July 1, 2002, uses the revenues generated by a tax under this part for a

             51942      purpose described in Subsection (2)(a).
             51943          (b) Notwithstanding Subsection (7)(a), the exception from the voter approval
             51944      requirements in Subsection (7)(a)(i) does not apply to a city or town that, on or before January
             51945      1, 1996, imposed a license fee or tax on only one class of businesses based on gross receipts
             51946      pursuant to Section 10-1-203 .
             51947          (8) A city or town is not subject to the voter approval requirements of Subsection
             51948      (3)(b) if:
             51949          (a) on December 31, 2007, the city or town imposes a tax of .25% under this section;
             51950      and
             51951          (b) on or after January 1, 2008, the city or town increases the tax rate under this section
             51952      to .30%.
             51953          Section 1038. Section 59-12-1102 is amended to read:
             51954           59-12-1102. Base -- Rate -- Imposition of tax -- Distribution of revenue --
             51955      Administration -- Enactment or repeal of tax -- Effective date -- Notice requirements.
             51956          (1) (a) (i) Subject to Subsections (2) through (5), and in addition to any other tax
             51957      authorized by this chapter, a county may impose by ordinance a county option sales and use tax
             51958      of .25% upon the transactions described in Subsection 59-12-103 (1).
             51959          (ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this
             51960      section on:
             51961          (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             51962      are exempt from taxation under Section 59-12-104 ; and
             51963          (B) any amounts paid or charged by a seller that collects a tax under Subsection
             51964      59-12-107 (1)(b) unless all of the counties in the state impose a tax under this section.
             51965          (b) For purposes of this Subsection (1), the location of a transaction shall be determined
             51966      in accordance with Section 59-12-207 .
             51967          (c) The county option sales and use tax under this section shall be imposed:
             51968          (i) upon transactions that are located within the county, including transactions that are
             51969      located within municipalities in the county; and

             51970          (ii) except as provided in Subsection (1)(d) or (5), beginning on the first day of January:
             51971          (A) of the next calendar year after adoption of the ordinance imposing the tax if the
             51972      ordinance is adopted on or before May 25; or
             51973          (B) of the second calendar year after adoption of the ordinance imposing the tax if the
             51974      ordinance is adopted after May 25.
             51975          (d) Notwithstanding Subsection (1)(c)(ii), the county option sales and use tax under this
             51976      section shall be imposed:
             51977          (i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
             51978      September 4, 1997; or
             51979          (ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997
             51980      but after September 4, 1997.
             51981          (2) (a) Before imposing a county option sales and use tax under Subsection (1), a
             51982      county shall hold two public hearings on separate days in geographically diverse locations in
             51983      the county.
             51984          (b) (i) At least one of the hearings required by Subsection (2)(a) shall have a starting
             51985      time of no earlier than 6 p.m.
             51986          (ii) The earlier of the hearings required by Subsection (2)(a) shall be no less than seven
             51987      days after the day the first advertisement required by Subsection (2)(c) is published.
             51988          (c) (i) Before holding the public hearings required by Subsection (2)(a), the county shall
             51989      advertise in a newspaper of general circulation in the county:
             51990          (A) its intent to adopt a county option sales and use tax;
             51991          (B) the date, time, and location of each public hearing; and
             51992          (C) a statement that the purpose of each public hearing is to obtain public comments
             51993      regarding the proposed tax.
             51994          (ii) The advertisement shall be published once each week for the two weeks preceding
             51995      the earlier of the two public hearings.
             51996          (iii) The advertisement shall be no less than 1/8 page in size, and the type used shall be
             51997      no smaller than 18 point and surrounded by a 1/4-inch border.

             51998          (iv) The advertisement may not be placed in that portion of the newspaper where legal
             51999      notices and classified advertisements appear.
             52000          (v) Whenever possible:
             52001          (A) the advertisement shall appear in a newspaper that is published at least five days a
             52002      week, unless the only newspaper in the county is published less than five days a week; and
             52003          (B) the newspaper selected shall be one of general interest and readership in the
             52004      community, and not one of limited subject matter.
             52005          (d) The adoption of an ordinance imposing a county option sales and use tax is subject
             52006      to a local referendum election as provided in Title 20A, Chapter 7, Part 6, Local Referenda -
             52007      Procedures, except that:
             52008          (i) notwithstanding Subsection 20A-7-609 (2)(a), the county clerk shall hold a
             52009      referendum election that qualifies for the ballot on the earlier of the next regular general election
             52010      date or the next municipal general election date more than 155 days after adoption of an
             52011      ordinance under this section;
             52012          (ii) for 1997 only, the 120-day period in Subsection 20A-7-606 (1) shall be 30 days; and
             52013          (iii) the deadlines in Subsections 20A-7-606 (2) and (3) do not apply, and the clerk shall
             52014      take the actions required by those subsections before the referendum election.
             52015          (3) (a) If the aggregate population of the counties imposing a county option sales and
             52016      use tax under Subsection (1) is less than 75% of the state population, the tax levied under
             52017      Subsection (1) shall be distributed to the county in which the tax was collected.
             52018          (b) If the aggregate population of the counties imposing a county option sales and use
             52019      tax under Subsection (1) is greater than or equal to 75% of the state population:
             52020          (i) 50% of the tax collected under Subsection (1) in each county shall be distributed to
             52021      the county in which the tax was collected; and
             52022          (ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection
             52023      (1) in each county shall be distributed proportionately among all counties imposing the tax,
             52024      based on the total population of each county.
             52025          (c) If the amount to be distributed annually to a county under Subsection (3)(b)(ii),

             52026      when combined with the amount distributed to the county under Subsection (3)(b)(i), does not
             52027      equal at least $75,000, then:
             52028          (i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall
             52029      be increased so that, when combined with the amount distributed to the county under
             52030      Subsection (3)(b)(i), the amount distributed annually to the county is $75,000; and
             52031          (ii) the amount to be distributed annually to all other counties under Subsection
             52032      (3)(b)(ii) shall be reduced proportionately to offset the additional amount distributed under
             52033      Subsection (3)(c)(i).
             52034          (d) The commission shall establish rules to implement the distribution of the tax under
             52035      Subsections (3)(a), (b), and (c).
             52036          (e) Notwithstanding Subsections (3)(a) and (b), if a county imposes a tax under this
             52037      section on any amounts paid or charged by a seller that collects a tax in accordance with
             52038      Subsection 59-12-107 (1)(b), the revenues generated by the tax shall be distributed as provided
             52039      in Subsection 59-12-103 (3)(c).
             52040          (4) (a) Except as provided in Subsection (4)(b) or (c), a tax authorized under this part
             52041      shall be administered, collected, and enforced in accordance with:
             52042          (i) the same procedures used to administer, collect, and enforce the tax under:
             52043          (A) Part 1, Tax Collection; or
             52044          (B) Part 2, Local Sales and Use Tax Act; and
             52045          (ii) Chapter 1, General Taxation Policies.
             52046          (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
             52047      Subsections 59-12-205 (2) through (7).
             52048          (c) Notwithstanding Subsection (4)(a), the fee charged by the commission under
             52049      Section 59-12-206 shall be based on the distribution amounts resulting after all the applicable
             52050      distribution calculations under Subsection (3) have been made.
             52051          (5) (a) For purposes of this Subsection (5):
             52052          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
             52053      Annexation to County.

             52054          (ii) "Annexing area" means an area that is annexed into a county.
             52055          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
             52056      county enacts or repeals a tax under this part:
             52057          (A) (I) the enactment shall take effect as provided in Subsection (1)(c); or
             52058          (II) the repeal shall take effect on the first day of a calendar quarter; and
             52059          (B) after a 90-day period beginning on the date the commission receives notice meeting
             52060      the requirements of Subsection (5)(b)(ii) from the county.
             52061          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             52062          (A) that the county will enact or repeal a tax under this part;
             52063          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             52064          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             52065          (D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the tax.
             52066          (c) (i) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
             52067      (5)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             52068          (A) that begins after the effective date of the enactment of the tax; and
             52069          (B) if the billing period for the transaction begins before the effective date of the
             52070      enactment of the tax under Subsection (1).
             52071          (ii) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
             52072      (5)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             52073          (A) that began before the effective date of the repeal of the tax; and
             52074          (B) if the billing period for the transaction begins before the effective date of the repeal
             52075      of the tax imposed under Subsection (1).
             52076          (iii) Subsections (5)(c)(i) and (ii) apply to transactions subject to a tax under:
             52077          (A) Subsection 59-12-103 (1)(b);
             52078          (B) Subsection 59-12-103 (1)(c);
             52079          (C) Subsection 59-12-103 (1)(d);
             52080          (D) Subsection 59-12-103 (1)(e);
             52081          (E) Subsection 59-12-103 (1)(f);

             52082          (F) Subsection 59-12-103 (1)(g);
             52083          (G) Subsection 59-12-103 (1)(h);
             52084          (H) Subsection 59-12-103 (1)(i);
             52085          (I) Subsection 59-12-103 (1)(j); or
             52086          (J) Subsection 59-12-103 (1)(k).
             52087          (d) (i) Notwithstanding Subsection (5)(b)(i), if a tax due under this chapter on a
             52088      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
             52089      enactment or repeal of a tax described in Subsection (5)(b)(i) takes effect:
             52090          (A) on the first day of a calendar quarter; and
             52091          (B) beginning 60 days after the effective date of the enactment or repeal under
             52092      Subsection (5)(b)(i).
             52093          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             52094      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             52095          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             52096      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             52097      part for an annexing area, the enactment or repeal shall take effect:
             52098          (A) on the first day of a calendar quarter; and
             52099          (B) after a 90-day period beginning on the date the commission receives notice meeting
             52100      the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
             52101          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
             52102          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
             52103      repeal of a tax under this part for the annexing area;
             52104          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             52105          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             52106          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
             52107          (f) (i) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
             52108      (5)(f)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             52109          (A) that begins after the effective date of the enactment of the tax; and

             52110          (B) if the billing period for the transaction begins before the effective date of the
             52111      enactment of the tax under Subsection (1).
             52112          (ii) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
             52113      (5)(f)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             52114          (A) that began before the effective date of the repeal of the tax; and
             52115          (B) if the billing period for the transaction begins before the effective date of the repeal
             52116      of the tax imposed under Subsection (1).
             52117          (iii) Subsections (5)(f)(i) and (ii) apply to transactions subject to a tax under:
             52118          (A) Subsection 59-12-103 (1)(b);
             52119          (B) Subsection 59-12-103 (1)(c);
             52120          (C) Subsection 59-12-103 (1)(d);
             52121          (D) Subsection 59-12-103 (1)(e);
             52122          (E) Subsection 59-12-103 (1)(f);
             52123          (F) Subsection 59-12-103 (1)(g);
             52124          (G) Subsection 59-12-103 (1)(h);
             52125          (H) Subsection 59-12-103 (1)(i);
             52126          (I) Subsection 59-12-103 (1)(j); or
             52127          (J) Subsection 59-12-103 (1)(k).
             52128          (g) (i) Notwithstanding Subsection (5)(e)(i), if a tax due under this chapter on a
             52129      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
             52130      enactment or repeal of a tax described in Subsection (5)(e)(i) takes effect:
             52131          (A) on the first day of a calendar quarter; and
             52132          (B) beginning 60 days after the effective date of the enactment or repeal under
             52133      Subsection (5)(e)(i).
             52134          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             52135      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             52136          Section 1039. Section 59-12-1302 is amended to read:
             52137           59-12-1302. Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax

             52138      rate change -- Effective date -- Notice requirements.
             52139          (1) Beginning on or after January 1, 1998, the governing body of a town may impose a
             52140      tax as provided in this part in an amount that does not exceed 1%.
             52141          (2) A town may impose a tax as provided in this part if the town imposed a license fee
             52142      or tax on businesses based on gross receipts under Section 10-1-203 on or before January 1,
             52143      1996.
             52144          (3) A town imposing a tax under this section shall:
             52145          (a) except as provided in Subsection (4), impose the tax on the transactions described in
             52146      Subsection 59-12-103 (1) located within the town; and
             52147          (b) provide an effective date for the tax as provided in Subsection (5).
             52148          (4) (a) Notwithstanding Subsection (3)(a), a town may not impose a tax under this
             52149      section on:
             52150          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             52151      exempt from taxation under Section 59-12-104 ;
             52152          (ii) amounts paid or charged by a seller that collects a tax under Subsection
             52153      59-12-107 (1)(b); and
             52154          (iii) except as provided in Subsection (4)(c), amounts paid or charged for food and food
             52155      ingredients.
             52156          (b) For purposes of this Subsection (4), the location of a transaction shall be determined
             52157      in accordance with Section 59-12-207 .
             52158          (c) A town imposing a tax under this section shall impose the tax on amounts paid or
             52159      charged for food and food ingredients if:
             52160          (i) the food and food ingredients are sold as part of a bundled transaction attributable to
             52161      food and food ingredients and tangible personal property other than food and food ingredients;
             52162      and
             52163          (ii) the seller collecting the tax is a seller other than a seller that collects a tax in
             52164      accordance with Subsection 59-12-107 (1)(b).
             52165          (5) (a) For purposes of this Subsection (5):

             52166          (i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
             52167      Annexation.
             52168          (ii) "Annexing area" means an area that is annexed into a town.
             52169          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
             52170      town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
             52171      or change shall take effect:
             52172          (A) on the first day of a calendar quarter; and
             52173          (B) after a 90-day period beginning on the date the commission receives notice meeting
             52174      the requirements of Subsection (5)(b)(ii) from the town.
             52175          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             52176          (A) that the town will enact or repeal a tax or change the rate of a tax under this part;
             52177          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             52178          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             52179          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
             52180      (5)(b)(ii)(A), the rate of the tax.
             52181          (c) (i) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
             52182      (5)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             52183      first billing period:
             52184          (A) that begins after the effective date of the enactment of the tax or the tax rate
             52185      increase; and
             52186          (B) if the billing period for the transaction begins before the effective date of the
             52187      enactment of the tax or the tax rate increase imposed under Subsection (1).
             52188          (ii) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
             52189      (5)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             52190      billing period:
             52191          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             52192      and
             52193          (B) if the billing period for the transaction begins before the effective date of the repeal

             52194      of the tax or the tax rate decrease imposed under Subsection (1).
             52195          (iii) Subsections (5)(c)(i) and (ii) apply to transactions subject to a tax under:
             52196          (A) Subsection 59-12-103 (1)(b);
             52197          (B) Subsection 59-12-103 (1)(c);
             52198          (C) Subsection 59-12-103 (1)(d);
             52199          (D) Subsection 59-12-103 (1)(e);
             52200          (E) Subsection 59-12-103 (1)(f);
             52201          (F) Subsection 59-12-103 (1)(g);
             52202          (G) Subsection 59-12-103 (1)(h);
             52203          (H) Subsection 59-12-103 (1)(i);
             52204          (I) Subsection 59-12-103 (1)(j); or
             52205          (J) Subsection 59-12-103 (1)(k).
             52206          (d) (i) Notwithstanding Subsection (5)(b)(i), if a tax due under this chapter on a
             52207      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
             52208      enactment, repeal, or change in the rate of a tax described in Subsection (5)(b)(i) takes effect:
             52209          (A) on the first day of a calendar quarter; and
             52210          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             52211      rate of the tax under Subsection (5)(b)(i).
             52212          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             52213      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             52214          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             52215      on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate
             52216      of a tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
             52217          (A) on the first day of a calendar quarter; and
             52218          (B) after a 90-day period beginning on the date the commission receives notice meeting
             52219      the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
             52220          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
             52221          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,

             52222      repeal, or change in the rate of a tax under this part for the annexing area;
             52223          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             52224          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             52225          (D) if the town enacts the tax or changes the rate of the tax described in Subsection
             52226      (5)(e)(ii)(A), the rate of the tax.
             52227          (f) (i) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
             52228      (5)(f)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
             52229      first billing period:
             52230          (A) that begins after the effective date of the enactment of the tax or the tax rate
             52231      increase; and
             52232          (B) if the billing period for the transaction begins before the effective date of the
             52233      enactment of the tax or the tax rate increase imposed under Subsection (1).
             52234          (ii) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
             52235      (5)(f)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             52236      billing period:
             52237          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
             52238      and
             52239          (B) if the billing period for the transaction begins before the effective date of the repeal
             52240      of the tax or the tax rate decrease imposed under Subsection (1).
             52241          (iii) Subsections (5)(f)(i) and (ii) apply to transactions subject to a tax under:
             52242          (A) Subsection 59-12-103 (1)(b);
             52243          (B) Subsection 59-12-103 (1)(c);
             52244          (C) Subsection 59-12-103 (1)(d);
             52245          (D) Subsection 59-12-103 (1)(e);
             52246          (E) Subsection 59-12-103 (1)(f);
             52247          (F) Subsection 59-12-103 (1)(g);
             52248          (G) Subsection 59-12-103 (1)(h);
             52249          (H) Subsection 59-12-103 (1)(i);

             52250          (I) Subsection 59-12-103 (1)(j); or
             52251          (J) Subsection 59-12-103 (1)(k).
             52252          (g) (i) Notwithstanding Subsection (5)(e)(i), if a tax due under this chapter on a
             52253      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
             52254      enactment, repeal, or change in the rate of a tax described in Subsection (5)(e)(i) takes effect:
             52255          (A) on the first day of a calendar quarter; and
             52256          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             52257      rate of the tax under Subsection (5)(e)(i).
             52258          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             52259      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             52260          (6) The commission shall:
             52261          (a) except as provided in Subsection (6)(c), distribute the revenues generated by the tax
             52262      under this section to the town imposing the tax;
             52263          (b) except as provided in Subsection (7), administer, collect, and enforce the tax
             52264      authorized under this section in accordance with:
             52265          (i) the same procedures used to administer, collect, and enforce the tax under:
             52266          (A) Part 1, Tax Collection; or
             52267          (B) Part 2, Local Sales and Use Tax Act; and
             52268          (ii) Chapter 1, General Taxation Policies; and
             52269          (c) deduct from the distribution under Subsection (6)(a) an administrative charge for
             52270      collecting the tax as provided in Section 59-12-206 .
             52271          (7) Notwithstanding Subsection (6)(b), a tax under this section is not subject to
             52272      Subsections 59-12-205 (2) through (7).
             52273          Section 1040. Section 59-12-1402 is amended to read:
             52274           59-12-1402. Opinion question election -- Base -- Rate -- Imposition of tax -- Uses
             52275      of tax monies -- Enactment or repeal of tax -- Effective date -- Notice requirements.
             52276          (1) (a) (i) Subject to Subsection (6), beginning on January 1, 2003, a city or town
             52277      legislative body subject to this part may submit an opinion question to the residents of that city

             52278      or town, by majority vote of all members of the legislative body, so that each resident of the city
             52279      or town has an opportunity to express the resident's opinion on the imposition of a local sales
             52280      and use tax of .1% on the transactions described in Subsection 59-12-103 (1) located within the
             52281      city or town, to fund recreational and zoological facilities and botanical, cultural, and zoological
             52282      organizations in that city or town.
             52283          (ii) Notwithstanding Subsection (1)(a)(i), a city or town legislative body may not
             52284      impose a tax under this section:
             52285          (A) if the county in which the city or town is located imposes a tax under Part 7,
             52286      County Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
             52287      Facilities;
             52288          (B) on the sales and uses described in Section 59-12-104 to the extent the sales and
             52289      uses are exempt from taxation under Section 59-12-104 ;
             52290          (C) on amounts paid or charged by a seller that collects a tax under Subsection
             52291      59-12-107 (1)(b); and
             52292          (D) except as provided in Subsection (1)(c), on amounts paid or charged for food and
             52293      food ingredients.
             52294          (b) For purposes of this Subsection (1), the location of a transaction shall be determined
             52295      in accordance with Section 59-12-207 .
             52296          (c) A city or town legislative body imposing a tax under this section shall impose the tax
             52297      on amounts paid or charged for food and food ingredients if:
             52298          (i) the food and food ingredients are sold as part of a bundled transaction attributable to
             52299      food and food ingredients and tangible personal property other than food and food ingredients;
             52300      and
             52301          (ii) the seller collecting the tax is a seller other than a seller that collects a tax in
             52302      accordance with Subsection 59-12-107 (1)(b).
             52303          (d) The election shall be held at a regular general election or a municipal general
             52304      election, as those terms are defined in Section 20A-1-102 , and shall follow the procedures
             52305      outlined in Title 11, Chapter 14, Local Government Bonding Act, except as provided in

             52306      Subsection (6).
             52307          (2) If the city or town legislative body determines that a majority of the city's or town's
             52308      registered voters voting on the imposition of the tax have voted in favor of the imposition of the
             52309      tax as prescribed in Subsection (1)(a), the city or town legislative body may impose the tax by a
             52310      majority vote of all members of the legislative body.
             52311          (3) The monies generated from any tax imposed under Subsection (2) shall be used for
             52312      financing:
             52313          (a) recreational and zoological facilities within the city or town or within the geographic
             52314      area of entities that are parties to an interlocal agreement, to which the city or town is a party,
             52315      providing for recreational or zoological facilities; and
             52316          (b) ongoing operating expenses of botanical, cultural, and zoological organizations
             52317      within the city or town or within the geographic area of entities that are parties to an interlocal
             52318      agreement, to which the city or town is a party, providing for the support of botanical, cultural,
             52319      or zoological organizations.
             52320          (4) (a) A tax authorized under this part shall be:
             52321          (i) except as provided in Subsection (4)(b), administered, collected, and enforced in
             52322      accordance with:
             52323          (A) the same procedures used to administer, collect, and enforce the tax under:
             52324          (I) Part 1, Tax Collection; or
             52325          (II) Part 2, Local Sales and Use Tax Act; and
             52326          (B) Chapter 1, General Taxation Policies; and
             52327          (ii) (A) levied for a period of eight years; and
             52328          (B) may be reauthorized at the end of the eight-year period in accordance with this
             52329      section.
             52330          (b) Notwithstanding Subsection (4)(a)(i), a tax under this section is not subject to
             52331      Subsections 59-12-205 (2) through (7).
             52332          (5) (a) For purposes of this Subsection (5):
             52333          (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part

             52334      4, Annexation.
             52335          (ii) "Annexing area" means an area that is annexed into a city or town.
             52336          (b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a city
             52337      or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
             52338          (A) on the first day of a calendar quarter; and
             52339          (B) after a 90-day period beginning on the date the commission receives notice meeting
             52340      the requirements of Subsection (5)(b)(ii) from the city or town.
             52341          (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
             52342          (A) that the city or town will enact or repeal a tax under this part;
             52343          (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
             52344          (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
             52345          (D) if the city or town enacts the tax described in Subsection (5)(b)(ii)(A), the rate of
             52346      the tax.
             52347          (c) (i) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
             52348      (5)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             52349          (A) that begins after the effective date of the enactment of the tax; and
             52350          (B) if the billing period for the transaction begins before the effective date of the
             52351      enactment of the tax under this section.
             52352          (ii) Notwithstanding Subsection (5)(b)(i), for a transaction described in Subsection
             52353      (5)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             52354          (A) that began before the effective date of the repeal of the tax; and
             52355          (B) if the billing period for the transaction begins before the effective date of the repeal
             52356      of the tax imposed under this section.
             52357          (iii) Subsections (5)(c)(i) and (ii) apply to transactions subject to a tax under:
             52358          (A) Subsection 59-12-103 (1)(b);
             52359          (B) Subsection 59-12-103 (1)(c);
             52360          (C) Subsection 59-12-103 (1)(d);
             52361          (D) Subsection 59-12-103 (1)(e);

             52362          (E) Subsection 59-12-103 (1)(f);
             52363          (F) Subsection 59-12-103 (1)(g);
             52364          (G) Subsection 59-12-103 (1)(h);
             52365          (H) Subsection 59-12-103 (1)(i);
             52366          (I) Subsection 59-12-103 (1)(j); or
             52367          (J) Subsection 59-12-103 (1)(k).
             52368          (d) (i) Notwithstanding Subsection (5)(b)(i), if a tax due under this chapter on a
             52369      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
             52370      enactment or repeal of a tax described in Subsection (5)(b)(i) takes effect:
             52371          (A) on the first day of a calendar quarter; and
             52372          (B) beginning 60 days after the effective date of the enactment or repeal under
             52373      Subsection (5)(b)(i).
             52374          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             52375      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             52376          (e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
             52377      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             52378      part for an annexing area, the enactment or repeal shall take effect:
             52379          (A) on the first day of a calendar quarter; and
             52380          (B) after a 90-day period beginning on the date the commission receives notice meeting
             52381      the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
             52382          (ii) The notice described in Subsection (5)(e)(i)(B) shall state:
             52383          (A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
             52384      repeal a tax under this part for the annexing area;
             52385          (B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
             52386          (C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
             52387          (D) the rate of the tax described in Subsection (5)(e)(ii)(A).
             52388          (f) (i) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
             52389      (5)(f)(iii), the enactment of a tax shall take effect on the first day of the first billing period:

             52390          (A) that begins after the effective date of the enactment of the tax; and
             52391          (B) if the billing period for the transaction begins before the effective date of the
             52392      enactment of the tax under this section.
             52393          (ii) Notwithstanding Subsection (5)(e)(i), for a transaction described in Subsection
             52394      (5)(f)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             52395          (A) that began before the effective date of the repeal of the tax; and
             52396          (B) if the billing period for the transaction begins before the effective date of the repeal
             52397      of the tax imposed under this section.
             52398          (iii) Subsections (5)(f)(i) and (ii) apply to transactions subject to a tax under:
             52399          (A) Subsection 59-12-103 (1)(b);
             52400          (B) Subsection 59-12-103 (1)(c);
             52401          (C) Subsection 59-12-103 (1)(d);
             52402          (D) Subsection 59-12-103 (1)(e);
             52403          (E) Subsection 59-12-103 (1)(f);
             52404          (F) Subsection 59-12-103 (1)(g);
             52405          (G) Subsection 59-12-103 (1)(h);
             52406          (H) Subsection 59-12-103 (1)(i);
             52407          (I) Subsection 59-12-103 (1)(j); or
             52408          (J) Subsection 59-12-103 (1)(k).
             52409          (g) (i) Notwithstanding Subsection (5)(e)(i), if a tax due under this chapter on a
             52410      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
             52411      enactment or repeal of a tax described in Subsection (5)(e)(i) takes effect:
             52412          (A) on the first day of a calendar quarter; and
             52413          (B) beginning 60 days after the effective date of the enactment or repeal under
             52414      Subsection (5)(e)(i).
             52415          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             52416      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             52417          (6) (a) Before a city or town legislative body submits an opinion question to the

             52418      residents of the city or town under Subsection (1)(a)(i), the city or town legislative body shall:
             52419          (i) submit to the county legislative body in which the city or town is located a written
             52420      notice of the intent to submit the opinion question to the residents of the city or town; and
             52421          (ii) receive from the county legislative body:
             52422          (A) a written resolution passed by the county legislative body stating that the county
             52423      legislative body is not seeking to impose a tax under Part 7, County Option Funding for
             52424      Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or
             52425          (B) a written statement that in accordance with Subsection (6)(b) the results of a county
             52426      opinion question submitted to the residents of the county under Part 7, County Option Funding
             52427      for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city
             52428      or town legislative body to submit the opinion question to the residents of the city or town in
             52429      accordance with this part.
             52430          (b) (i) Within 60 days after the day the county legislative body receives from a city or
             52431      town legislative body described in Subsection (6)(a) the notice of the intent to submit an opinion
             52432      question to the residents of the city or town, the county legislative body shall provide the city or
             52433      town legislative body:
             52434          (A) the written resolution described in Subsection (6)(a)(ii)(A); or
             52435          (B) written notice that the county legislative body will submit an opinion question to the
             52436      residents of the county under Part 7, County Option Funding for Botanical, Cultural,
             52437      Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under
             52438      that part.
             52439          (ii) If the county legislative body provides the city or town legislative body the written
             52440      notice that the county legislative body will submit an opinion question as provided in Subsection
             52441      (6)(b)(i)(B), the county legislative body shall submit the opinion question by no later than, from
             52442      the date the county legislative body sends the written notice, the later of:
             52443          (A) a 12-month period;
             52444          (B) the next regular primary election; or
             52445          (C) the next regular general election.

             52446          (iii) Within 30 days of the date of the canvass of the election at which the opinion
             52447      question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the
             52448      city or town legislative body described in Subsection (6)(a) written results of the opinion
             52449      question submitted by the county legislative body under Part 7, County Option Funding for
             52450      Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:
             52451          (A) (I) the city or town legislative body may not impose a tax under this part because a
             52452      majority of the county's registered voters voted in favor of the county imposing the tax and the
             52453      county legislative body by a majority vote approved the imposition of the tax; or
             52454          (II) for at least 12 months from the date the written results are submitted to the city or
             52455      town legislative body, the city or town legislative body may not submit to the county legislative
             52456      body a written notice of the intent to submit an opinion question under this part because a
             52457      majority of the county's registered voters voted against the county imposing the tax and the
             52458      majority of the registered voters who are residents of the city or town described in Subsection
             52459      (6)(a) voted against the imposition of the county tax; or
             52460          (B) the city or town legislative body may submit the opinion question to the residents of
             52461      the city or town in accordance with this part because although a majority of the county's
             52462      registered voters voted against the county imposing the tax, the majority of the registered voters
             52463      who are residents of the city or town voted for the imposition of the county tax.
             52464          (c) Notwithstanding Subsection (6)(b), at any time a county legislative body may
             52465      provide a city or town legislative body described in Subsection (6)(a) a written resolution
             52466      passed by the county legislative body stating that the county legislative body is not seeking to
             52467      impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and
             52468      Zoological Organizations or Facilities, which permits the city or town legislative body to submit
             52469      under Subsection (1)(a)(i) an opinion question to the city's or town's residents.
             52470          Section 1041. Section 59-12-1503 is amended to read:
             52471           59-12-1503. Opinion question election -- Base -- Rate -- Imposition of tax -- Use
             52472      of tax revenues -- Administration, collection, and enforcement of tax by commission --
             52473      Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.

             52474          (1) (a) Subject to the other provisions of this part, the county legislative body of a
             52475      qualifying county may impose a sales and use tax of:
             52476          (i) beginning on April 1, 2004, and ending on December 31, 2007, .25%:
             52477          (A) on the transactions:
             52478          (I) described in Subsection 59-12-103 (1); and
             52479          (II) within the county, including the cities and towns within the county;
             52480          (B) for the purposes determined by the county legislative body in accordance with
             52481      Subsection (2); and
             52482          (C) in addition to any other sales and use tax authorized under this chapter; or
             52483          (ii) beginning on January 1, 2008, up to .30%:
             52484          (A) on the transactions:
             52485          (I) described in Subsection 59-12-103 (1); and
             52486          (II) within the county, including the cities and towns within the county;
             52487          (B) for the purposes determined by the county legislative body in accordance with
             52488      Subsection (2); and
             52489          (C) in addition to any other sales and use tax authorized under this chapter.
             52490          (b) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
             52491      under this section on:
             52492          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             52493      exempt from taxation under Section 59-12-104 ;
             52494          (ii) amounts paid or charged by a seller that collects a tax under Subsection
             52495      59-12-107 (1)(b); and
             52496          (iii) except as provided in Subsection (1)(d), amounts paid or charged for food and food
             52497      ingredients.
             52498          (c) For purposes of this Subsection (1), the location of a transaction shall be determined
             52499      in accordance with Section 59-12-207 .
             52500          (d) A county legislative body imposing a tax under this section shall impose the tax on
             52501      amounts paid or charged for food and food ingredients if:

             52502          (i) the food and food ingredients are sold as part of a bundled transaction attributable to
             52503      food and food ingredients and tangible personal property other than food and food ingredients;
             52504      and
             52505          (ii) the seller collecting the tax is a seller other than a seller that collects a tax in
             52506      accordance with Subsection 59-12-107 (1)(b).
             52507          (2) (a) Subject to Subsection (2)(b), before obtaining the approval required by
             52508      Subsection (3), a county legislative body shall adopt a resolution specifying the percentage of
             52509      revenues the county will receive from the tax under this part that will be allocated to fund one
             52510      or more of the following:
             52511          (i) a project or service relating to a fixed guideway system for the portion of the project
             52512      or service that is performed within the county;
             52513          (ii) a project or service relating to a system for public transit for the portion of the
             52514      project or service that is performed within the county; or
             52515          (iii) the following relating to a state highway or a local highway of regional significance
             52516      within the county:
             52517          (A) a project beginning on or after the day on which a county legislative body imposes a
             52518      tax under this part only within the county involving:
             52519          (I) new construction;
             52520          (II) a renovation;
             52521          (III) an improvement; or
             52522          (IV) an environmental study;
             52523          (B) debt service on a project described in Subsections (2)(a)(iii)(A)(I) through (IV); or
             52524          (C) bond issuance costs relating to a project described in Subsections (2)(a)(iii)(A)(I)
             52525      through (IV).
             52526          (b) (i) A county legislative body shall in the resolution required by Subsection (2)(a)
             52527      allocate as required by Subsection (2)(a) 100% of the revenues the county will receive from the
             52528      tax under this part.
             52529          (ii) For purposes of this Subsection (2)(b), the revenues a county will receive from the

             52530      tax under this part do not include amounts retained by the commission in accordance with
             52531      Subsection (8).
             52532          (3) (a) Except as provided in Subsection (3)(d), before imposing a tax under this part, a
             52533      county legislative body shall:
             52534          (i) obtain approval from a majority of the members of the county legislative body to:
             52535          (A) impose the tax; and
             52536          (B) allocate the revenues the county will receive from the tax in accordance with the
             52537      resolution adopted in accordance with Subsection (2); and
             52538          (ii) subject to Subsection (3)(b), submit an opinion question to the county's registered
             52539      voters voting on the imposition of the tax so that each registered voter has the opportunity to
             52540      express the registered voter's opinion on whether a tax should be imposed under this part.
             52541          (b) The opinion question required by Subsection (3)(a)(ii) shall state the allocations
             52542      specified in the resolution:
             52543          (i) adopted in accordance with Subsection (2); and
             52544          (ii) approved by the county legislative body in accordance with Subsection (3)(a).
             52545          (c) The election required by this Subsection (3) shall be held:
             52546          (i) (A) at a regular general election; and
             52547          (B) in accordance with the procedures and requirements of Title 20A, Election Code,
             52548      governing regular general elections; or
             52549          (ii) (A) at a special election called by the county legislative body;
             52550          (B) only on the date of a municipal general election provided in Subsection
             52551      20A-1-202 (1); and
             52552          (C) in accordance with the procedures and requirements of Section 20A-1-203 .
             52553          (d) A county is not subject to the voter approval requirements of this section if:
             52554          (i) on December 31, 2007, the county imposes a tax of .25% under this section; and
             52555          (ii) on or after January 1, 2008, the county increases the tax rate under this section to
             52556      up to .30%.
             52557          (4) (a) Subject to Subsection (8), if a county legislative body determines that a majority

             52558      of the county's registered voters voting on the imposition of the tax have voted in favor of the
             52559      imposition of the tax in accordance with Subsection (3), the county legislative body may impose
             52560      the tax by a majority vote of all of the members of the county legislative body.
             52561          (b) If a county legislative body imposes a tax under Subsection (4)(a), the revenues
             52562      generated by the tax shall be:
             52563          (i) allocated in accordance with the allocations specified in the resolution under
             52564      Subsection (2); and
             52565          (ii) expended as provided in this part.
             52566          (5) If a county legislative body allocates revenues generated by the tax for a project
             52567      described in Subsection (2)(a)(iii)(A), before beginning the state highway project within the
             52568      county, the county legislative body shall:
             52569          (a) obtain approval from the Transportation Commission to complete the project; and
             52570          (b) enter into an interlocal agreement:
             52571          (i) established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act;
             52572          (ii) with the Department of Transportation; and
             52573          (iii) to complete the project.
             52574          (6) (a) If after a county legislative body imposes a tax under Subsection (4) the county
             52575      legislative body seeks to change the allocation of the tax specified in the resolution under
             52576      Subsection (2), the county legislative body may change the allocation of the tax by:
             52577          (i) adopting a resolution in accordance with Subsection (2) specifying the percentage of
             52578      revenues the county will receive from the tax under this part that will be allocated to fund one
             52579      or more of the systems or projects described in Subsection (2);
             52580          (ii) obtaining approval to change the allocation of the tax from a majority of the
             52581      members of the county legislative body; and
             52582          (iii) (A) submitting an opinion question to the county's registered voters voting on
             52583      changing the allocation of the tax so that each registered voter has the opportunity to express
             52584      the registered voter's opinion on whether the allocation of the tax should be changed; and
             52585          (B) obtaining approval to change the allocation of the tax from a majority of the

             52586      county's registered voters voting on changing the allocation of the tax.
             52587          (b) (i) The opinion question required by Subsection (6)(a)(iii) shall state the allocations
             52588      specified in the resolution:
             52589          (A) adopted in accordance with Subsection (6)(a)(i); and
             52590          (B) approved by the county legislative body in accordance with Subsection (6)(a)(ii).
             52591          (ii) The election required by Subsection (6)(a)(iii) shall follow the procedures and
             52592      requirements of Title 11, Chapter 14, Local Government Bonding Act.
             52593          (7) (a) (i) Except as provided in Subsection (7)(a)(ii), revenues generated by a tax
             52594      under this part that are allocated for a purpose described in Subsection (2)(a)(i) or (ii) shall be
             52595      transmitted:
             52596          (A) by the commission;
             52597          (B) to the county;
             52598          (C) monthly; and
             52599          (D) by electronic funds transfer.
             52600          (ii) Notwithstanding Subsection (7)(a)(i), a county may request that the commission
             52601      transfer the revenues described in Subsection (7)(a)(i):
             52602          (A) directly to a public transit district:
             52603          (I) organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act; and
             52604          (II) designated by the county; and
             52605          (B) by providing written notice to the commission:
             52606          (I) requesting the revenues to be transferred directly to a public transit district as
             52607      provided in Subsection (7)(a)(ii)(A); and
             52608          (II) designating the public transit district to which the revenues are requested to be
             52609      transferred.
             52610          (b) Revenues generated by a tax under this part that are allocated for a purpose
             52611      described in Subsection (2)(a)(iii) shall be:
             52612          (i) deposited into the State Highway Projects Within Counties Fund created by Section
             52613      72-2-121.1 ; and

             52614          (ii) expended as provided in Section 72-2-121.1 .
             52615          (8) (a) (i) Except as provided in Subsection (8)(a)(ii), the tax authorized under this part
             52616      shall be administered, collected, and enforced in accordance with:
             52617          (A) the same procedures used to administer, collect, and enforce the tax under:
             52618          (I) Part 1, Tax Collection; or
             52619          (II) Part 2, Local Sales and Use Tax Act; and
             52620          (B) Chapter 1, General Taxation Policies.
             52621          (ii) Notwithstanding Subsection (8)(a)(i), a tax under this part is not subject to
             52622      Subsections 59-12-205 (2) through (7).
             52623          (b) (i) The commission may retain an amount of tax collected under this part of not to
             52624      exceed the lesser of:
             52625          (A) 1.5%; or
             52626          (B) an amount equal to the cost to the commission of administering this part.
             52627          (ii) Any amount the commission retains under Subsection (8)(b)(i) shall be:
             52628          (A) placed in the Sales and Use Tax Administrative Fees Account; and
             52629          (B) used as provided in Subsection 59-12-206 (2).
             52630          (9) (a) (i) Except as provided in Subsection (9)(b) or (c), if, on or after April 1, 2008, a
             52631      county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
             52632          (A) on the first day of a calendar quarter; and
             52633          (B) after a 90-day period beginning on the date the commission receives notice meeting
             52634      the requirements of Subsection (9)(a)(ii) from the county.
             52635          (ii) The notice described in Subsection (9)(a)(i)(B) shall state:
             52636          (A) that the county will enact or repeal a tax under this part;
             52637          (B) the statutory authority for the tax described in Subsection (9)(a)(ii)(A);
             52638          (C) the effective date of the tax described in Subsection (9)(a)(ii)(A); and
             52639          (D) if the county enacts the tax described in Subsection (9)(a)(ii)(A), the rate of the tax.
             52640          (b) (i) Notwithstanding Subsection (9)(a)(i), for a transaction described in Subsection
             52641      (9)(b)(iii), the enactment of a tax shall take effect on the first day of the first billing period:

             52642          (A) that begins after the effective date of the enactment of the tax; and
             52643          (B) if the billing period for the transaction begins before the effective date of the
             52644      enactment of the tax under Subsection (1).
             52645          (ii) Notwithstanding Subsection (9)(a)(i), for a transaction described in Subsection
             52646      (9)(b)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             52647          (A) that began before the effective date of the repeal of the tax; and
             52648          (B) if the billing period for the transaction begins before the effective date of the repeal
             52649      of the tax imposed under Subsection (1).
             52650          (iii) Subsections (9)(b)(i) and (ii) apply to transactions subject to a tax under:
             52651          (A) Subsection 59-12-103 (1)(b);
             52652          (B) Subsection 59-12-103 (1)(c);
             52653          (C) Subsection 59-12-103 (1)(d);
             52654          (D) Subsection 59-12-103 (1)(e);
             52655          (E) Subsection 59-12-103 (1)(f);
             52656          (F) Subsection 59-12-103 (1)(g);
             52657          (G) Subsection 59-12-103 (1)(h);
             52658          (H) Subsection 59-12-103 (1)(i);
             52659          (I) Subsection 59-12-103 (1)(j); or
             52660          (J) Subsection 59-12-103 (1)(k).
             52661          (c) (i) Notwithstanding Subsection (9)(a)(i), if a tax due under this chapter on a
             52662      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
             52663      enactment or repeal of a tax described in Subsection (9)(a)(i) takes effect:
             52664          (A) on the first day of a calendar quarter; and
             52665          (B) beginning 60 days after the effective date of the enactment or repeal under
             52666      Subsection (9)(a)(i).
             52667          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             52668      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             52669          (d) (i) Except as provided in Subsection (9)(e) or (f), if, for an annexation that occurs

             52670      on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
             52671      part for an annexing area, the enactment or repeal shall take effect:
             52672          (A) on the first day of a calendar quarter; and
             52673          (B) after a 90-day period beginning on the date the commission receives notice meeting
             52674      the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
             52675          (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
             52676          (A) that the annexation described in Subsection (9)(d)(i)(B) will result in an enactment
             52677      or repeal of a tax under this part for the annexing area;
             52678          (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
             52679          (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
             52680          (D) the rate of the tax described in Subsection (9)(d)(ii)(A).
             52681          (e) (i) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
             52682      (9)(e)(iii), the enactment of a tax shall take effect on the first day of the first billing period:
             52683          (A) that begins after the effective date of the enactment of the tax; and
             52684          (B) if the billing period for the transaction begins before the effective date of the
             52685      enactment of the tax under Subsection (1).
             52686          (ii) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
             52687      (9)(e)(iii), the repeal of a tax shall take effect on the first day of the last billing period:
             52688          (A) that began before the effective date of the repeal of the tax; and
             52689          (B) if the billing period for the transaction begins before the effective date of the repeal
             52690      of the tax imposed under Subsection (1).
             52691          (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
             52692          (A) Subsection 59-12-103 (1)(b);
             52693          (B) Subsection 59-12-103 (1)(c);
             52694          (C) Subsection 59-12-103 (1)(d);
             52695          (D) Subsection 59-12-103 (1)(e);
             52696          (E) Subsection 59-12-103 (1)(f);
             52697          (F) Subsection 59-12-103 (1)(g);

             52698          (G) Subsection 59-12-103 (1)(h);
             52699          (H) Subsection 59-12-103 (1)(i);
             52700          (I) Subsection 59-12-103 (1)(j); or
             52701          (J) Subsection 59-12-103 (1)(k).
             52702          (f) (i) Notwithstanding Subsection (9)(d)(i), if a tax due under this chapter on a
             52703      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
             52704      enactment or repeal of a tax described in Subsection (9)(d)(i) takes effect:
             52705          (A) on the first day of a calendar quarter; and
             52706          (B) beginning 60 days after the effective date of the enactment or repeal under
             52707      Subsection (9)(d)(i).
             52708          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             52709      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             52710          (10) A county that imposed a sales and use tax under this section prior to July 1, 2007,
             52711      may expend revenues allocated in the resolution for the purpose described in Subsection
             52712      (2)(a)(iii) on local highway of regional significance projects in addition to or in substitution of
             52713      state highway projects within the county.
             52714          Section 1042. Section 59-12-1703 is amended to read:
             52715           59-12-1703. Opinion question election -- Base -- Rate -- Imposition of tax -- Use
             52716      of tax revenues -- Administration, collection, and enforcement of tax by commission --
             52717      Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
             52718          (1) (a) Subject to the other provisions of this part, a county legislative body may impose
             52719      a sales and use tax of up to .25%:
             52720          (i) on the transactions:
             52721          (A) described in Subsection 59-12-103 (1); and
             52722          (B) within the county, including the cities and towns within the county;
             52723          (ii) for the purposes described in Subsection (4); and
             52724          (iii) in addition to any other sales and use tax authorized under this chapter.
             52725          (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a

             52726      tax under this section on:
             52727          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             52728      exempt from taxation under Section 59-12-104 ;
             52729          (ii) amounts paid or charged by a seller that collects a tax under Subsection
             52730      59-12-107 (1)(b); and
             52731          (iii) except as provided in Subsection (1)(d), amounts paid or charged for food and food
             52732      ingredients.
             52733          (c) For purposes of this Subsection (1), the location of a transaction shall be determined
             52734      in accordance with Section 59-12-207 .
             52735          (d) A county legislative body imposing a tax under this section shall impose the tax on
             52736      amounts paid or charged for food and food ingredients if:
             52737          (i) the food and food ingredients are sold as part of a bundled transaction attributable to
             52738      food and food ingredients and tangible personal property other than food and food ingredients;
             52739      and
             52740          (ii) the seller collecting the tax is a seller other than a seller that collects a tax in
             52741      accordance with Subsection 59-12-107 (1)(b).
             52742          (2) (a) Except as provided in Subsection (2)(d), before imposing a tax under this part, a
             52743      county legislative body shall:
             52744          (i) obtain approval from a majority of the members of the county legislative body to
             52745      impose the tax; and
             52746          (ii) submit an opinion question to the county's registered voters voting on the
             52747      imposition of the tax so that each registered voter has the opportunity to express the registered
             52748      voter's opinion on whether a tax should be imposed under this part.
             52749          (b) (i) In a county of the first or second class, the opinion question required by
             52750      Subsection (2)(a)(ii) shall state the following:
             52751          "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
             52752      amount of the sales and use tax up to .25%) sales and use tax for corridor preservation,
             52753      congestion mitigation, or to expand capacity for regionally significant transportation facilities?"

             52754          (ii) In a county of the third, fourth, fifth, or sixth class, the opinion question required by
             52755      Subsection (2)(a)(ii) shall state the following:
             52756          "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
             52757      amount of the sales and use tax up to .25%) sales and use tax for transportation projects,
             52758      corridor preservation, congestion mitigation, or to expand capacity for regionally significant
             52759      transportation facilities?"
             52760          (c) Except as provided in Subsection (2)(d), the election required by this Subsection (2)
             52761      shall be held:
             52762          (i) at a regular general election conducted in accordance with the procedures and
             52763      requirements of Title 20A, Election Code, governing regular elections; or
             52764          (ii) at a special election called by the county legislative body that is:
             52765          (A) held only on the date of a municipal general election as provided in Subsection
             52766      20A-1-202 (1); and
             52767          (B) authorized in accordance with the procedures and requirements of Section
             52768      20A-1-203 .
             52769          (d) Notwithstanding Subsection (2)(a) or (c), if a county seeks to impose a tax under
             52770      this part on or after April 1, 2007, but on or before December 31, 2007, the county legislative
             52771      body shall:
             52772          (i) obtain the approval required by Subsection (2)(a)(i) within five calendar days of
             52773      September 20, 2006;
             52774          (ii) direct the county clerk to submit the opinion question required by Subsection
             52775      (2)(a)(ii) during the November 7, 2006 general election; and
             52776          (iii) hold the election required by this section on November 7, 2006.
             52777          (3) If a county legislative body determines that a majority of the county's registered
             52778      voters voting on the imposition of the tax have voted in favor of the imposition of the tax in
             52779      accordance with Subsection (2), the county legislative body shall impose the tax in accordance
             52780      with this section.
             52781          (4) (a) Subject to Subsections (5) and (6), the revenues generated by a tax under this

             52782      part may only be expended for:
             52783          (i) a project or service:
             52784          (A) relating to a regionally significant transportation facility;
             52785          (B) for the portion of the project or service that is performed within the county;
             52786          (C) for new capacity or congestion mitigation if the project or service is performed
             52787      within a county:
             52788          (I) of the first class;
             52789          (II) of the second class; or
             52790          (III) that is part of an area metropolitan planning organization;
             52791          (D) (I) if the project or service is a principal arterial highway or a minor arterial
             52792      highway in a county of the first or second class, that is part of the county and municipal master
             52793      plan and part of:
             52794          (Aa) the statewide long-range plan; or
             52795          (Bb) the regional transportation plan of the area metropolitan planning organization if a
             52796      metropolitan planning organization exists for the area; or
             52797          (II) if the project or service is for a fixed guideway or an airport, that is part of the
             52798      regional transportation plan of the area metropolitan planning organization if a metropolitan
             52799      planning organization exists for the area; and
             52800          (E) that is on a priority list:
             52801          (I) created by the county's council of governments in accordance with Subsection (5);
             52802      and
             52803          (II) approved by the county legislative body in accordance with Subsection (6);
             52804          (ii) corridor preservation for a project described in Subsection (4)(a)(i) as provided in
             52805      Subsection (7)(b); or
             52806          (iii) any debt service and bond issuance costs related to a project described in
             52807      Subsection (4)(a)(i) or (ii).
             52808          (b) In a county of the first or second class, a regionally significant transportation facility
             52809      project or service described in Subsection (4)(a)(i)(A) must have a funded year priority

             52810      designation on a Statewide Transportation Improvement Program and Transportation
             52811      Improvement Program if the project or service described in Subsection (4)(a)(i) is:
             52812          (i) a principal arterial highway as defined in Section 72-4-102.5 ;
             52813          (ii) a minor arterial highway as defined in Section 72-4-102.5 ; or
             52814          (iii) a major collector highway:
             52815          (A) as defined in Section 72-4-102.5 ; and
             52816          (B) in a rural area.
             52817          (c) Notwithstanding the designated use of revenues in Subsection (4)(a), of the
             52818      revenues generated by the tax imposed under this section by any county of the first or second
             52819      class, 25% or more shall be expended for the purpose described in Subsection (4)(a)(ii).
             52820          (d) For purposes of this Subsection (4), the revenues a county will receive from a tax
             52821      under this part do not include amounts retained by the commission in accordance with
             52822      Subsection (8).
             52823          (5) (a) The county's council of governments shall create a priority list of regionally
             52824      significant transportation facility projects described in Subsection (4)(a) using the process
             52825      described in Subsection (5)(b) and present the priority list to the county's legislative body for
             52826      approval as described in Subsection (6).
             52827          (b) Subject to Sections 59-12-1704 and 59-12-1705 , a council of governments shall
             52828      establish a council of governments' endorsement process which includes prioritization and
             52829      application procedures for use of the revenues a county will receive from a tax under this part.
             52830          (6) (a) The council of governments shall submit the priority list described in Subsection
             52831      (5) to the county's legislative body and obtain approval of the list from a majority of the
             52832      members of the county legislative body.
             52833          (b) A county's council of governments may only submit one priority list per calendar
             52834      year.
             52835          (c) A county legislative body may only consider and approve one priority list per
             52836      calendar year.
             52837          (7) (a) (i) Except as provided in Subsections (7)(a)(ii) and (7)(b), revenues described in

             52838      Subsection (4) shall be transmitted:
             52839          (A) by the commission;
             52840          (B) to the county;
             52841          (C) monthly; and
             52842          (D) by electronic funds transfer.
             52843          (ii) A county may request that the commission transfer a portion of the revenues
             52844      described in Subsection (4):
             52845          (A) directly to a public transit district:
             52846          (I) organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act; and
             52847          (II) designated by the county; and
             52848          (B) by providing written notice to the commission:
             52849          (I) requesting the revenues to be transferred directly to a public transit district as
             52850      provided in Subsection (7)(a)(ii)(A); and
             52851          (II) designating the public transit district to which the revenues are requested to be
             52852      transferred.
             52853          (b) (i) Except as provided in Subsection (7)(b)(ii), revenues generated by a tax under
             52854      this part that are allocated for a purpose described in Subsection (4)(a)(ii) shall be:
             52855          (A) deposited in or transferred to the Local Transportation Corridor Preservation Fund
             52856      created by Section 72-2-117.5 ; and
             52857          (B) expended as provided in Section 72-2-117.5 .
             52858          (ii) In a county of the first class, revenues generated by a tax under this part that are
             52859      allocated for a purpose described in Subsection (4)(a)(ii) shall be:
             52860          (A) deposited in or transferred to the County of the First Class State Highway Projects
             52861      Fund created by Section 72-2-121 ; and
             52862          (B) expended as provided in Section 72-2-121 .
             52863          (8) (a) (i) Except as provided in Subsection (8)(b), the tax authorized under this part
             52864      shall be administered, collected, and enforced in accordance with:
             52865          (A) the same procedures used to administer, collect, and enforce the tax under:

             52866          (I) Part 1, Tax Collection; or
             52867          (II) Part 2, Local Sales and Use Tax Act; and
             52868          (B) Chapter 1, General Taxation Policies.
             52869          (ii) A tax under this part is not subject to Subsections 59-12-205 (2) through (7).
             52870          (b) (i) The commission may retain an amount of tax collected under this part of not to
             52871      exceed the lesser of:
             52872          (A) 1.5%; or
             52873          (B) an amount equal to the cost to the commission of administering this part.
             52874          (ii) Any amount the commission retains under Subsection (8)(b)(i) shall be:
             52875          (A) placed in the Sales and Use Tax Administrative Fees Account; and
             52876          (B) used as provided in Subsection 59-12-206 (2).
             52877          (9) (a) (i) Except as provided in Subsection (9)(b) or (c), if, on or after April 1, 2007, a
             52878      county enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
             52879      or change shall take effect:
             52880          (A) on the first day of a calendar quarter; and
             52881          (B) after a 90-day period beginning on the date the commission receives notice meeting
             52882      the requirements of Subsection (9)(a)(ii) from the county.
             52883          (ii) The notice described in Subsection (9)(a)(i)(B) shall state:
             52884          (A) that the county will enact, repeal, or change the rate of a tax under this part;
             52885          (B) the statutory authority for the tax described in Subsection (9)(a)(ii)(A);
             52886          (C) the effective date of the tax described in Subsection (9)(a)(ii)(A); and
             52887          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             52888      (9)(a)(ii)(A), the rate of the tax.
             52889          (b) (i) For a transaction described in Subsection (9)(b)(iii), if the billing period for the
             52890      transaction begins before the effective date of the enactment of the tax or tax rate increase
             52891      under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
             52892      day of the first billing period that begins after the effective date of the enactment of the tax or
             52893      the tax rate increase.

             52894          (ii) For a transaction described in Subsection (9)(b)(iii), if the billing period for the
             52895      transaction begins before the effective date of the repeal of the tax or the tax rate decrease
             52896      imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
             52897      first day of the last billing period that began before the effective date of the repeal of the tax or
             52898      the tax rate decrease.
             52899          (iii) Subsections (9)(b)(i) and (ii) apply to transactions subject to a tax under:
             52900          (A) Subsection 59-12-103 (1)(b);
             52901          (B) Subsection 59-12-103 (1)(c);
             52902          (C) Subsection 59-12-103 (1)(d);
             52903          (D) Subsection 59-12-103 (1)(e);
             52904          (E) Subsection 59-12-103 (1)(f);
             52905          (F) Subsection 59-12-103 (1)(g);
             52906          (G) Subsection 59-12-103 (1)(h);
             52907          (H) Subsection 59-12-103 (1)(i);
             52908          (I) Subsection 59-12-103 (1)(j); or
             52909          (J) Subsection 59-12-103 (1)(k).
             52910          (c) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             52911      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             52912      a tax described in Subsection (9)(a)(i) takes effect:
             52913          (A) on the first day of a calendar quarter; and
             52914          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             52915      rate of the tax under Subsection (9)(a)(i).
             52916          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             52917      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             52918          (d) (i) Except as provided in Subsection (9)(e) or (f), if, for an annexation that occurs
             52919      on or after April 1, 2007, the annexation will result in the enactment, repeal, or change in the
             52920      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
             52921      effect:

             52922          (A) on the first day of a calendar quarter; and
             52923          (B) after a 90-day period beginning on the date the commission receives notice meeting
             52924      the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
             52925          (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
             52926          (A) that the annexation described in Subsection (9)(d)(i)(B) will result in an enactment,
             52927      repeal, or change in the rate of a tax under this part for the annexing area;
             52928          (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
             52929          (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
             52930          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             52931      (9)(d)(ii)(A), the rate of the tax.
             52932          (e) (i) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
             52933      transaction begins before the effective date of the enactment of the tax or a tax rate increase
             52934      under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
             52935      day of the first billing period that begins after the effective date of the enactment of the tax or
             52936      the tax rate increase.
             52937          (ii) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
             52938      transaction begins before the effective date of the repeal of the tax or the tax rate decrease
             52939      imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
             52940      first day of the last billing period that began before the effective date of the repeal of the tax or
             52941      the tax rate decrease.
             52942          (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
             52943          (A) Subsection 59-12-103 (1)(b);
             52944          (B) Subsection 59-12-103 (1)(c);
             52945          (C) Subsection 59-12-103 (1)(d);
             52946          (D) Subsection 59-12-103 (1)(e);
             52947          (E) Subsection 59-12-103 (1)(f);
             52948          (F) Subsection 59-12-103 (1)(g);
             52949          (G) Subsection 59-12-103 (1)(h);

             52950          (H) Subsection 59-12-103 (1)(i);
             52951          (I) Subsection 59-12-103 (1)(j); or
             52952          (J) Subsection 59-12-103 (1)(k).
             52953          (f) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             52954      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             52955      a tax described in Subsection (9)(d)(i) takes effect:
             52956          (A) on the first day of a calendar quarter; and
             52957          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             52958      rate under Subsection (9)(d)(i).
             52959          (ii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             52960      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             52961          Section 1043. Section 59-12-1803 is amended to read:
             52962           59-12-1803. Enactment or repeal of tax -- Effective date -- Administration,
             52963      collection, and enforcement of tax.
             52964          (1) Subject to Subsections (2) and (3), a tax rate repeal or a tax rate change for a tax
             52965      imposed under this part shall take effect on the first day of a calendar quarter.
             52966          (2) (a) For a transaction described in Subsection (2)(c), the enactment of a tax shall
             52967      take effect on the first day of the first billing period that begins after the effective date of the
             52968      enactment of the tax if the billing period for the transaction begins before the effective date of
             52969      the tax under this part.
             52970          (b) For a transaction described in Subsection (2)(c), the repeal of a tax shall take effect
             52971      on the first day of the last billing period that began before the effective date of the repeal of the
             52972      tax if the billing period for the transaction begins before the effective date of the repeal of the
             52973      tax imposed under this part.
             52974          (c) Subsections (2)(a) and (b) apply to transactions subject to a tax under:
             52975          (i) Subsection 59-12-103 (1)(b);
             52976          (ii) Subsection 59-12-103 (1)(c);
             52977          (iii) Subsection 59-12-103 (1)(d);

             52978          (iv) Subsection 59-12-103 (1)(e);
             52979          (v) Subsection 59-12-103 (1)(f);
             52980          (vi) Subsection 59-12-103 (1)(g);
             52981          (vii) Subsection 59-12-103 (1)(h);
             52982          (viii) Subsection 59-12-103 (1)(i);
             52983          (ix) Subsection 59-12-103 (1)(j); or
             52984          (x) Subsection 59-12-103 (1)(k).
             52985          (3) (a) If a tax due under this part on a catalogue sale is computed on the basis of sales
             52986      and use tax rates published in the catalogue, an enactment or repeal of a tax under this part
             52987      takes effect:
             52988          (i) on the first day of a calendar quarter; and
             52989          (ii) beginning 60 days after the effective date of the enactment or repeal of the tax under
             52990      this part.
             52991          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             52992      Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale."
             52993          (4) A tax imposed by this part shall be administered, collected, and enforced in
             52994      accordance with:
             52995          (a) the same procedures used to administer, collect, and enforce the tax under Part 1,
             52996      Tax Collection; and
             52997          (b) Chapter 1, General Taxation Policies.
             52998          Section 1044. Section 59-13-201 is amended to read:
             52999           59-13-201. Rate -- Tax basis -- Exemptions -- Revenue deposited in the
             53000      Transportation Fund -- Restricted account for boating uses -- Refunds -- Reduction of
             53001      tax in limited circumstances.
             53002          (1) (a) Subject to the provisions of this section, a tax is imposed at the rate of 24-1/2
             53003      cents per gallon upon all motor fuel that is sold, used, or received for sale or used in this state.
             53004          (b) In lieu of the tax imposed under Subsection (1)(a) and subject to the provisions of
             53005      this section, a tax is imposed at the rate of 3/19 of the rate imposed under Subsection (1)(a),

             53006      rounded up to the nearest penny, upon all motor fuels that meet the definition of clean fuel in
             53007      Section 59-13-102 and are sold, used, or received for sale or use in this state.
             53008          (2) Any increase or decrease in tax rate applies to motor fuel that is imported to the
             53009      state or sold at refineries in the state on or after the effective date of the rate change.
             53010          (3) (a) No motor fuel tax is imposed upon:
             53011          (i) motor fuel that is brought into and sold in this state in original packages as purely
             53012      interstate commerce sales;
             53013          (ii) motor fuel that is exported from this state if proof of actual exportation on forms
             53014      prescribed by the commission is made within 180 days after exportation;
             53015          (iii) motor fuel or components of motor fuel that is sold and used in this state and
             53016      distilled from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons located in this
             53017      state; or
             53018          (iv) motor fuel that is sold to the United States government, this state, or the political
             53019      subdivisions of this state.
             53020          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53021      Administrative Rulemaking Act, the commission shall make rules governing the procedures for
             53022      administering the tax exemption provided under Subsection (3)(a)(iv).
             53023          (4) The commission may either collect no tax on motor fuel exported from the state or,
             53024      upon application, refund the tax paid.
             53025          (5) (a) All revenue received by the commission under this part shall be deposited daily
             53026      with the state treasurer and credited to the Transportation Fund.
             53027          (b) An appropriation from the Transportation Fund shall be made to the commission to
             53028      cover expenses incurred in the administration and enforcement of this part and the collection of
             53029      the motor fuel tax.
             53030          (6) (a) The commission shall determine what amount of motor fuel tax revenue is
             53031      received from the sale or use of motor fuel used in motorboats registered under the provisions
             53032      of the State Boating Act, and this amount shall be deposited in a restricted revenue account in
             53033      the General Fund of the state.

             53034          (b) The funds from this account shall be used for the construction, improvement,
             53035      operation, and maintenance of state-owned boating facilities and for the payment of the costs
             53036      and expenses of the Division of Parks and Recreation in administering and enforcing the State
             53037      Boating Act.
             53038          (7) (a) The United States government or any of its instrumentalities, this state, or a
             53039      political subdivision of this state that has purchased motor fuel from a licensed distributor or
             53040      from a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in this
             53041      section is entitled to a refund of the tax and may file with the commission for a quarterly refund.
             53042          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53043      Administrative Rulemaking Act, the commission shall make rules governing the application and
             53044      refund provided for in Subsection (7)(a).
             53045          (8) (a) The commission shall refund annually into the Off-Highway Vehicle Account in
             53046      the General Fund an amount equal to the lesser of the following:
             53047          (i) .5% of the motor fuel tax revenues collected under this section; or
             53048          (ii) $1,050,000.
             53049          (b) This amount shall be used as provided in Section 41-22-19 .
             53050          (c) This Subsection (8) sunsets on July 1, 2010.
             53051          (9) (a) Beginning on April 1, 2001, a tax imposed under this section on motor fuel that
             53052      is sold, used, or received for sale or use in this state is reduced to the extent provided in
             53053      Subsection (9)(b) if:
             53054          (i) a tax imposed on the basis of the sale, use, or receipt for sale or use of the motor fuel
             53055      is paid to the Navajo Nation;
             53056          (ii) the tax described in Subsection (9)(a)(i) is imposed without regard to whether or
             53057      not the person required to pay the tax is an enrolled member of the Navajo Nation; and
             53058          (iii) the commission and the Navajo Nation execute and maintain an agreement as
             53059      provided in this Subsection (9) for the administration of the reduction of tax.
             53060          (b) (i) If but for Subsection (9)(a) the motor fuel is subject to a tax imposed by this
             53061      section:

             53062          (A) the state shall be paid the difference described in Subsection (9)(b)(ii) if that
             53063      difference is greater than $0; and
             53064          (B) a person may not require the state to provide a refund, a credit, or similar tax relief
             53065      if the difference described in Subsection (9)(b)(ii) is less than or equal to $0.
             53066          (ii) The difference described in Subsection (9)(b)(i) is equal to the difference between:
             53067          (A) the amount of tax imposed on the motor fuel by this section; less
             53068          (B) the tax imposed and collected by the Navajo Nation on the motor fuel.
             53069          (c) For purposes of Subsections (9)(a) and (b), the tax paid to the Navajo Nation under
             53070      a tax imposed by the Navajo Nation on the basis of the sale, use, or receipt for sale or use of
             53071      motor fuel does not include any interest or penalties a taxpayer may be required to pay to the
             53072      Navajo Nation.
             53073          (d) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53074      Administrative Rulemaking Act, the commission shall make rules governing the procedures for
             53075      administering the reduction of tax provided under this Subsection (9).
             53076          (e) The agreement required under Subsection (9)(a):
             53077          (i) may not:
             53078          (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
             53079          (B) provide a reduction of taxes greater than or different from the reduction described
             53080      in this Subsection (9); or
             53081          (C) affect the power of the state to establish rates of taxation;
             53082          (ii) shall:
             53083          (A) be in writing;
             53084          (B) be signed by:
             53085          (I) the chair of the commission or the chair's designee; and
             53086          (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
             53087          (C) be conditioned on obtaining any approval required by federal law;
             53088          (D) state the effective date of the agreement; and
             53089          (E) state any accommodation the Navajo Nation makes related to the construction and

             53090      maintenance of state highways and other infrastructure within the Utah portion of the Navajo
             53091      Nation; and
             53092          (iii) may:
             53093          (A) notwithstanding Section 59-1-403 , authorize the commission to disclose to the
             53094      Navajo Nation information that is:
             53095          (I) contained in a document filed with the commission; and
             53096          (II) related to the tax imposed under this section;
             53097          (B) provide for maintaining records by the commission or the Navajo Nation; or
             53098          (C) provide for inspections or audits of distributors, carriers, or retailers located or
             53099      doing business within the Utah portion of the Navajo Nation.
             53100          (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
             53101      imposed on motor fuel, any change in the reduction of taxes under this Subsection (9) as a
             53102      result of the change in the tax rate is not effective until the first day of the calendar quarter after
             53103      a 60-day period beginning on the date the commission receives notice:
             53104          (A) from the Navajo Nation; and
             53105          (B) meeting the requirements of Subsection (9)(f)(ii).
             53106          (ii) The notice described in Subsection (9)(f)(i) shall state:
             53107          (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
             53108      motor fuel;
             53109          (B) the effective date of the rate change of the tax described in Subsection (9)(f)(ii)(A);
             53110      and
             53111          (C) the new rate of the tax described in Subsection (9)(f)(ii)(A).
             53112          (g) If the agreement required by Subsection (9)(a) terminates, a reduction of tax is not
             53113      permitted under this Subsection (9) beginning on the first day of the calendar quarter after a
             53114      30-day period beginning on the day the agreement terminates.
             53115          (h) If there is a conflict between this Subsection (9) and the agreement required by
             53116      Subsection (9)(a), this Subsection (9) governs.
             53117          Section 1045. Section 59-13-201.5 is amended to read:

             53118           59-13-201.5. Refund of taxes impacting Ute tribe and Ute tribal members.
             53119          (1) In accordance with this section, the Ute tribe may receive a refund from the state of
             53120      amounts paid to a distributor for taxes imposed on the distributor in accordance with Section
             53121      59-13-204 if:
             53122          (a) the motor fuel is purchased from a licensed distributor;
             53123          (b) the Ute tribe pays the distributor as provided in Section 59-13-204 ;
             53124          (c) the motor fuel is purchased for use by:
             53125          (i) the Ute tribe; or
             53126          (ii) a Ute tribal member from a retail station:
             53127          (A) wholly owned by the Ute tribe; and
             53128          (B) that is located on Ute trust land; and
             53129          (d) the governor and the Ute tribe execute and maintain an agreement meeting the
             53130      requirements of Subsection (3).
             53131          (2) In addition to the agreement required by Subsection (1), the commission shall enter
             53132      into an agreement with the Ute tribe that:
             53133          (a) provides an allocation formula or procedure for determining:
             53134          (i) the amount of motor fuel sold by the Ute tribe to a Ute tribal member; and
             53135          (ii) the amount of motor fuel sold by the Ute tribe to a person who is not a Ute tribal
             53136      member; and
             53137          (b) provides a process by which:
             53138          (i) the Ute tribe obtains a refund permitted by this section; and
             53139          (ii) reports and remits motor fuel tax to the state for sales made to persons who are not
             53140      Ute tribal members.
             53141          (3) The agreement required under Subsection (1):
             53142          (a) may not:
             53143          (i) authorize the state to impose a tax in addition to a tax imposed under this chapter; or
             53144          (ii) provide a refund, credit, or similar tax relief that is greater or different than the
             53145      refund permitted under this section;

             53146          (iii) affect the power of the state to establish rates of taxation; and
             53147          (b) shall:
             53148          (i) provide that the state agrees to allow the refund described in this section;
             53149          (ii) be in writing;
             53150          (iii) be signed by:
             53151          (A) the governor; and
             53152          (B) the chair of the Business Committee of the Ute tribe;
             53153          (iv) be conditioned on obtaining any approval required by federal law; and
             53154          (v) state the effective date of the agreement.
             53155          (4) (a) The governor shall report to the commission by no later than February 1 of each
             53156      year as to whether or not an agreement meeting the requirements of this Subsection (4) is in
             53157      effect.
             53158          (b) If an agreement meeting the requirements of this Subsection (4) is terminated, the
             53159      refund permitted under this section is not allowed beginning the January 1 following the date the
             53160      agreement terminates.
             53161          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53162      Administrative Rulemaking Act, the commission may make rules regarding the procedures for
             53163      seeking a refund agreed to under the agreement described in Subsection (2).
             53164          Section 1046. Section 59-13-202.5 is amended to read:
             53165           59-13-202.5. Refunds of tax due to fire, flood, storm, accident, crime, or
             53166      discharge in bankruptcy -- Filing claims and affidavits -- Commission approval --
             53167      Rulemaking -- Appeals -- Penalties.
             53168          (1) (a) A retailer, wholesaler, or licensed distributor, who without fault, sustains a loss
             53169      or destruction of 8,000 or more gallons of motor fuel in a single incident due to fire, flood,
             53170      storm, accident, or the commission of a crime and who has paid or is required to pay the tax on
             53171      the motor fuel as provided by this part, is entitled to a refund or credit of the tax subject to the
             53172      conditions and limitations provided under this section.
             53173          (b) The claimant shall file a claim for a refund or credit with the commission within 90

             53174      days of the incident.
             53175          (c) Any part of a loss or destruction eligible for indemnification under an insurance
             53176      policy for the taxes paid or required on the loss or destruction of motor fuel is not eligible for a
             53177      refund or credit under this section.
             53178          (d) Any claimant filing a claim for a refund or credit shall furnish any or all of the
             53179      information outlined in this section upon request of the commission.
             53180          (e) The burden of proof of loss or destruction is on the claimant who shall provide
             53181      evidence of loss or destruction to the satisfaction of the commission.
             53182          (f) (i) The claim shall include an affidavit containing the:
             53183          (A) name of claimant;
             53184          (B) claimant's address;
             53185          (C) date, time, and location of the incident;
             53186          (D) cause of the incident;
             53187          (E) name of the investigating agencies at the scene;
             53188          (F) number of gallons actually lost from sale; and
             53189          (G) information on any insurance coverages related to the incident.
             53190          (ii) The claimant shall support the claim by submitting the original invoices or copy of
             53191      the original invoices.
             53192          (iii) This original claim and all information contained in it constitutes a permanent file
             53193      with the commission in the name of the claimant.
             53194          (2) (a) A retailer, wholesaler, or licensed distributor who has paid the tax on motor fuel
             53195      as provided by this part is entitled to a refund for taxes paid on that portion of an account that:
             53196          (i) relates to 4,500 or more gallons of motor fuel purchased in a single transaction for
             53197      which no payment has been received; and
             53198          (ii) has been discharged in a bankruptcy proceeding.
             53199          (b) The claimant shall file a claim for refund with the commission within 90 days from
             53200      the date of the discharge.
             53201          (c) Any claimant filing a claim for a refund shall furnish any or all of the information

             53202      outlined in this section upon request of the commission.
             53203          (d) The burden of proof of discharge is on the claimant who shall provide evidence of
             53204      discharge to the satisfaction of the commission.
             53205          (e) The claim shall include an affidavit containing the following:
             53206          (i) the name of the claimant;
             53207          (ii) the claimant's address;
             53208          (iii) the name of the debtor that received a discharge in bankruptcy; and
             53209          (iv) the portion of the account that is subject to an order granting a discharge.
             53210          (f) The claimant shall support the claim by submitting:
             53211          (i) the original invoices or a copy of the original invoices; and
             53212          (ii) a certified copy of the notice of discharge.
             53213          (g) This original claim and all information contained in it constitutes a permanent file
             53214      with the commission in the name of the claimant.
             53215          (h) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53216      Administrative Rulemaking Act, the commission shall promulgate rules for the allocation of the
             53217      discharge under this Subsection (2) to maximize the claimant's refund amount.
             53218          (3) Upon commission approval of the claim for a refund, the commission shall pay the
             53219      amount found due to the claimant. The total amount of claims for refunds shall be paid from
             53220      the Transportation Fund.
             53221          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53222      Administrative Rulemaking Act, the commission may promulgate rules to enforce this part, and
             53223      may refuse to accept unsubstantiated evidence for the claim. If the commission is not satisfied
             53224      with the evidence submitted in connection with the claim, it may reject the claim or require
             53225      additional evidence.
             53226          (5) Any person aggrieved by the decision of the commission with respect to a refund or
             53227      credit may file a request for agency action, requesting a hearing before the commission.
             53228          (6) Any person who makes any false claim, report, or statement, either as claimant,
             53229      agent, or creditor, with intent to defraud or secure a refund or credit to which the claimant is

             53230      not entitled, is subject to the criminal penalties provided under Section 59-1-401 , and the
             53231      commission shall initiate the filing of a complaint for alleged violations of this part. In addition
             53232      to these penalties, the person may not receive any refund or credit as a claimant or as a creditor
             53233      of a claimant for refund or credit for a period of five years.
             53234          (7) Any refund or credit made under this section does not affect any deduction allowed
             53235      under Section 59-13-207 .
             53236          Section 1047. Section 59-13-203.1 is amended to read:
             53237           59-13-203.1. Definitions -- License requirements -- Penalty -- Application process
             53238      and requirements -- Fee not required -- Bonds.
             53239          (1) As used in this section:
             53240          (a) "applicant" means a person that:
             53241          (i) is required by this section to obtain a license; and
             53242          (ii) submits an application:
             53243          (A) to the commission; and
             53244          (B) for a license under this section;
             53245          (b) "application" means an application for a license under this section;
             53246          (c) "fiduciary of the applicant" means a person that:
             53247          (i) is required to collect, truthfully account for, and pay over a tax under this part for an
             53248      applicant; and
             53249          (ii) (A) is a corporate officer of the applicant described in Subsection (1)(c)(i);
             53250          (B) is a director of the applicant described in Subsection (1)(c)(i);
             53251          (C) is an employee of the applicant described in Subsection (1)(c)(i);
             53252          (D) is a partner of the applicant described in Subsection (1)(c)(i);
             53253          (E) is a trustee of the applicant described in Subsection (1)(c)(i); or
             53254          (F) has a relationship to the applicant described in Subsection (1)(c)(i) that is similar to
             53255      a relationship described in Subsections (1)(c)(ii)(A) through (E) as determined by the
             53256      commission by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53257      Administrative Rulemaking Act;

             53258          (d) "fiduciary of the licensee" means a person that:
             53259          (i) is required to collect, truthfully account for, and pay over a tax under this part for a
             53260      licensee; and
             53261          (ii) (A) is a corporate officer of the licensee described in Subsection (1)(d)(i);
             53262          (B) is a director of the licensee described in Subsection (1)(d)(i);
             53263          (C) is an employee of the licensee described in Subsection (1)(d)(i);
             53264          (D) is a partner of the licensee described in Subsection (1)(d)(i);
             53265          (E) is a trustee of the licensee described in Subsection (1)(d)(i); or
             53266          (F) has a relationship to the licensee described in Subsection (1)(d)(i) that is similar to a
             53267      relationship described in Subsections (1)(d)(ii)(A) through (E) as determined by the commission
             53268      by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53269      Administrative Rulemaking Act;
             53270          (e) "license" means a license under this section; and
             53271          (f) "licensee" means a person that is licensed under this section by the commission.
             53272          (2) A person that is required to collect a tax under this part is guilty of a criminal
             53273      violation as provided in Section 59-1-401 if before obtaining a license under this section that
             53274      person engages in business within the state.
             53275          (3) The license described in Subsection (2):
             53276          (a) shall be granted and issued:
             53277          (i) by the commission in accordance with this section;
             53278          (ii) without a license fee; and
             53279          (iii) if:
             53280          (A) an applicant:
             53281          (I) states the applicant's name and address in the application; and
             53282          (II) provides other information in the application that the commission may require; and
             53283          (B) the person meets the requirements of this section to be granted a license as
             53284      determined by the commission;
             53285          (b) may not be assigned to another person; and

             53286          (c) is valid:
             53287          (i) only for the person named on the license; and
             53288          (ii) until:
             53289          (A) the person described in Subsection (3)(c)(i):
             53290          (I) ceases to do business; or
             53291          (II) changes that person's business address; or
             53292          (B) the commission revokes the license.
             53293          (4) The commission shall review an application and determine whether:
             53294          (a) the applicant meets the requirements of this section to be issued a license; and
             53295          (b) a bond is required to be posted with the commission in accordance with Subsection
             53296      (5) before the applicant may be issued a license.
             53297          (5) (a) An applicant shall post a bond with the commission before the commission may
             53298      issue the applicant a license if:
             53299          (i) a license under this section was revoked for a delinquency under this part for:
             53300          (A) the applicant;
             53301          (B) a fiduciary of the applicant; or
             53302          (C) a person for which the applicant or the fiduciary of the applicant is required to
             53303      collect, truthfully account for, and pay over a tax under this part; or
             53304          (ii) there is a delinquency in paying a tax under this part for:
             53305          (A) the applicant;
             53306          (B) a fiduciary of the applicant; or
             53307          (C) a person for which the applicant or the fiduciary of the applicant is required to
             53308      collect, truthfully account for, and pay over a tax under this part.
             53309          (b) If the commission determines it is necessary to ensure compliance with this part, the
             53310      commission may require a licensee to:
             53311          (i) for a licensee that has not posted a bond under this section with the commission,
             53312      post a bond with the commission in accordance with Subsections (5)(c) through (g); or
             53313          (ii) for a licensee that has posted a bond under this section with the commission,

             53314      increase the amount of the bond posted with the commission.
             53315          (c) A bond under this Subsection (5) shall be:
             53316          (i) executed by:
             53317          (A) for an applicant, the applicant as principal, with a corporate surety; or
             53318          (B) for a licensee, the licensee as principal, with a corporate surety; and
             53319          (ii) payable to the commission conditioned upon the faithful performance of all of the
             53320      requirements of this part including:
             53321          (A) the payment of all taxes under this part;
             53322          (B) the payment of any:
             53323          (I) penalty as provided in Section 59-1-401 ; or
             53324          (II) interest as provided in Section 59-1-402 ; or
             53325          (C) any other obligation of the:
             53326          (I) applicant under this part; or
             53327          (II) licensee under this part.
             53328          (d) Except as provided in Subsection (5)(f), the commission shall calculate the amount
             53329      of a bond under this Subsection (5) on the basis of:
             53330          (i) commission estimates of:
             53331          (A) an applicant's tax liability under this part; or
             53332          (B) a licensee's tax liability under this part; and
             53333          (ii) the amount of a delinquency described in Subsection (5)(e) if:
             53334          (A) a license under this section was revoked for a delinquency under this part for:
             53335          (I) (Aa) an applicant; or
             53336          (Bb) a licensee;
             53337          (II) a fiduciary of the:
             53338          (Aa) applicant; or
             53339          (Bb) licensee; or
             53340          (III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of
             53341      the licensee is required to collect, truthfully account for, and pay over a tax under this part; or

             53342          (B) there is a delinquency in paying a tax under this part for:
             53343          (I) (Aa) an applicant; or
             53344          (Bb) a licensee;
             53345          (II) a fiduciary of the:
             53346          (Aa) applicant; or
             53347          (Bb) licensee; or
             53348          (III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of
             53349      the licensee is required to collect, truthfully account for, and pay over a tax under this part.
             53350          (e) Except as provided in Subsection (5)(f), for purposes of Subsection (5)(d)(ii):
             53351          (i) for an applicant, the amount of the delinquency is the sum of:
             53352          (A) the amount of any delinquency that served as a basis for revoking the license under
             53353      this section of:
             53354          (I) the applicant;
             53355          (II) a fiduciary of the applicant; or
             53356          (III) a person for which the applicant or the fiduciary of the applicant is required to
             53357      collect, truthfully account for, and pay over a tax under this part; or
             53358          (B) the amount of tax that any of the following owe under this part:
             53359          (I) the applicant;
             53360          (II) a fiduciary of the applicant; and
             53361          (III) a person for which the applicant or the fiduciary of the applicant is required to
             53362      collect, truthfully account for, and pay over a tax under this part; or
             53363          (ii) for a licensee, the amount of the delinquency is the sum of:
             53364          (A) the amount of any delinquency that served as a basis for revoking the license under
             53365      this section of:
             53366          (I) the licensee;
             53367          (II) a fiduciary of the licensee; or
             53368          (III) a person for which the licensee or the fiduciary of the licensee is required to
             53369      collect, truthfully account for, and pay over a tax under this part; or

             53370          (B) the amount of tax that any of the following owe under this part:
             53371          (I) the licensee;
             53372          (II) a fiduciary of the licensee; and
             53373          (III) a person for which the licensee or the fiduciary of the licensee is required to
             53374      collect, truthfully account for, and pay over a tax under this part.
             53375          (f) Notwithstanding Subsection (5)(d) or (e), a bond required by this Subsection (5)
             53376      may not:
             53377          (i) be less than $10,000; or
             53378          (ii) exceed $500,000.
             53379          (g) (i) Subject to Subsection (5)(g)(ii), a bond required by this section may be combined
             53380      into one bond with any other bond required by this chapter.
             53381          (ii) For purposes of Subsection (5)(g)(i), if a bond required by this section is combined
             53382      into one bond with any other bond required by this chapter, the amount of that combined bond
             53383      is determined by:
             53384          (A) calculating the separate amount of each bond required for each type of fuel included
             53385      in the combined bond; and
             53386          (B) aggregating the separate amounts calculated in Subsection (5)(g)(ii)(A).
             53387          (6) (a) The commission shall revoke a license under this section if:
             53388          (i) a licensee violates any provision of this part; and
             53389          (ii) before the commission revokes the license the commission provides the licensee:
             53390          (A) reasonable notice; and
             53391          (B) a hearing.
             53392          (b) If the commission revokes a licensee's license in accordance with Subsection (6)(a),
             53393      the commission may not issue another license to that licensee until that licensee complies with
             53394      the requirements of this part, including:
             53395          (i) paying any:
             53396          (A) tax due under this part;
             53397          (B) penalty as provided in Section 59-1-401 ; or

             53398          (C) interest as provided in Section 59-1-402 ; and
             53399          (ii) posting a bond in accordance with Subsection (5).
             53400          Section 1048. Section 59-13-301 is amended to read:
             53401           59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer
             53402      and credited to Transportation Fund -- Reduction of tax in limited circumstances.
             53403          (1) (a) Except as provided in Subsections (2), (3), and (11) and Section 59-13-304 , a
             53404      tax is imposed at the same rate imposed under Subsection 59-13-201 (1)(a) on the:
             53405          (i) removal of undyed diesel fuel from any refinery;
             53406          (ii) removal of undyed diesel fuel from any terminal;
             53407          (iii) entry into the state of any undyed diesel fuel for consumption, use, sale, or
             53408      warehousing;
             53409          (iv) sale of undyed diesel fuel to any person who is not registered as a supplier under
             53410      this part unless the tax has been collected under this section;
             53411          (v) any untaxed special fuel blended with undyed diesel fuel; or
             53412          (vi) use of untaxed special fuel, other than a clean special fuel.
             53413          (b) The tax imposed under this section shall only be imposed once upon any special
             53414      fuel.
             53415          (2) (a) No special fuel tax is imposed or collected upon dyed diesel fuel which:
             53416          (i) is sold or used for any purpose other than to operate or propel a motor vehicle upon
             53417      the public highways of the state, but this exemption applies only in those cases where the
             53418      purchasers or the users of special fuel establish to the satisfaction of the commission that the
             53419      special fuel was used for purposes other than to operate a motor vehicle upon the public
             53420      highways of the state; or
             53421          (ii) is sold to this state or any of its political subdivisions.
             53422          (b) No special fuel tax is imposed on undyed diesel fuel which:
             53423          (i) is sold to the United States government or any of its instrumentalities or to this state
             53424      or any of its political subdivisions;
             53425          (ii) is exported from this state if proof of actual exportation on forms prescribed by the

             53426      commission is made within 180 days after exportation;
             53427          (iii) is used in a vehicle off-highway;
             53428          (iv) is used to operate a power take-off unit of a vehicle;
             53429          (v) is used for off-highway agricultural uses;
             53430          (vi) is used in a separately fueled engine on a vehicle that does not propel the vehicle
             53431      upon the highways of the state; or
             53432          (vii) is used in machinery and equipment not registered and not required to be registered
             53433      for highway use.
             53434          (3) No tax is imposed or collected on special fuel if it is:
             53435          (a) purchased for business use in machinery and equipment not registered and not
             53436      required to be registered for highway use; and
             53437          (b) used pursuant to the conditions of a state implementation plan approved under Title
             53438      19, Chapter 2, Air Conservation Act.
             53439          (4) Upon request of a buyer meeting the requirements under Subsection (3), the
             53440      Division of Air Quality shall issue an exemption certificate that may be shown to a seller.
             53441          (5) The special fuel tax shall be paid by the supplier.
             53442          (6) (a) The special fuel tax shall be paid by every user who is required by Sections
             53443      59-13-303 and 59-13-305 to obtain a special fuel user permit and file special fuel tax reports.
             53444          (b) The user shall receive a refundable credit for special fuel taxes paid on purchases
             53445      which are delivered into vehicles and for which special fuel tax liability is reported.
             53446          (7) (a) Except as provided under Subsections (7)(b) and (c), all revenue received by the
             53447      commission from taxes and license fees under this part shall be deposited daily with the state
             53448      treasurer and credited to the Transportation Fund.
             53449          (b) An appropriation from the Transportation Fund shall be made to the commission to
             53450      cover expenses incurred in the administration and enforcement of this part and the collection of
             53451      the special fuel tax.
             53452          (c) Five dollars of each special fuel user trip permit fee paid under Section 59-13-303
             53453      may be used by the commission as a dedicated credit to cover the costs of electronic

             53454      credentialing as provided in Section 41-1a-303 .
             53455          (8) The commission may either collect no tax on special fuel exported from the state or,
             53456      upon application, refund the tax paid.
             53457          (9) (a) The United States government or any of its instrumentalities, this state, or a
             53458      political subdivision of this state that has purchased special fuel from a supplier or from a retail
             53459      dealer of special fuel and has paid the tax on the special fuel as provided in this section is
             53460      entitled to a refund of the tax and may file with the commission for a quarterly refund in a
             53461      manner prescribed by the commission.
             53462          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53463      Administrative Rulemaking Act, the commission shall make rules governing the application and
             53464      refund provided for in Subsection (9)(a).
             53465          (10) (a) The purchaser shall pay the tax on diesel fuel purchased for uses under
             53466      Subsections (2)(b)(i), (iii), (iv), (v), (vi), and (vii) and apply for a refund for the tax paid as
             53467      provided in Subsection (9) and this Subsection (10).
             53468          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53469      Administrative Rulemaking Act, the commission shall make rules governing the application and
             53470      refund for off-highway and nonhighway uses provided under Subsections (2)(b)(iii), (iv), (vi),
             53471      and (vii).
             53472          (c) A refund of tax paid under this part on diesel fuel used for nonhighway agricultural
             53473      uses shall be made in accordance with the tax return procedures under Section 59-13-202 .
             53474          (11) (a) Beginning on April 1, 2001, a tax imposed under this section on special fuel is
             53475      reduced to the extent provided in Subsection (11)(b) if:
             53476          (i) the Navajo Nation imposes a tax on the special fuel;
             53477          (ii) the tax described in Subsection (11)(a)(i) is imposed without regard to whether the
             53478      person required to pay the tax is an enrolled member of the Navajo Nation; and
             53479          (iii) the commission and the Navajo Nation execute and maintain an agreement as
             53480      provided in this Subsection (11) for the administration of the reduction of tax.
             53481          (b) (i) If but for Subsection (11)(a) the special fuel is subject to a tax imposed by this

             53482      section:
             53483          (A) the state shall be paid the difference described in Subsection (11)(b)(ii) if that
             53484      difference is greater than $0; and
             53485          (B) a person may not require the state to provide a refund, a credit, or similar tax relief
             53486      if the difference described in Subsection (11)(b)(ii) is less than or equal to $0.
             53487          (ii) The difference described in Subsection (11)(b)(i) is equal to the difference between:
             53488          (A) the amount of tax imposed on the special fuel by this section; less
             53489          (B) the tax imposed and collected by the Navajo Nation on the special fuel.
             53490          (c) For purposes of Subsections (11)(a) and (b), the tax paid to the Navajo Nation on
             53491      the special fuel does not include any interest or penalties a taxpayer may be required to pay to
             53492      the Navajo Nation.
             53493          (d) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53494      Administrative Rulemaking Act, the commission shall make rules governing the procedures for
             53495      administering the reduction of tax provided under this Subsection (11).
             53496          (e) The agreement required under Subsection (11)(a):
             53497          (i) may not:
             53498          (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
             53499          (B) provide a reduction of taxes greater than or different from the reduction described
             53500      in this Subsection (11); or
             53501          (C) affect the power of the state to establish rates of taxation;
             53502          (ii) shall:
             53503          (A) be in writing;
             53504          (B) be signed by:
             53505          (I) the chair of the commission or the chair's designee; and
             53506          (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
             53507          (C) be conditioned on obtaining any approval required by federal law;
             53508          (D) state the effective date of the agreement; and
             53509          (E) state any accommodation the Navajo Nation makes related to the construction and

             53510      maintenance of state highways and other infrastructure within the Utah portion of the Navajo
             53511      Nation; and
             53512          (iii) may:
             53513          (A) notwithstanding Section 59-1-403 , authorize the commission to disclose to the
             53514      Navajo Nation information that is:
             53515          (I) contained in a document filed with the commission; and
             53516          (II) related to the tax imposed under this section;
             53517          (B) provide for maintaining records by the commission or the Navajo Nation; or
             53518          (C) provide for inspections or audits of suppliers, distributors, carriers, or retailers
             53519      located or doing business within the Utah portion of the Navajo Nation.
             53520          (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
             53521      imposed on special fuel, any change in the amount of the reduction of taxes under this
             53522      Subsection (11) as a result of the change in the tax rate is not effective until the first day of the
             53523      calendar quarter after a 60-day period beginning on the date the commission receives notice:
             53524          (A) from the Navajo Nation; and
             53525          (B) meeting the requirements of Subsection (11)(f)(ii).
             53526          (ii) The notice described in Subsection (11)(f)(i) shall state:
             53527          (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
             53528      special fuel;
             53529          (B) the effective date of the rate change of the tax described in Subsection
             53530      (11)(f)(ii)(A); and
             53531          (C) the new rate of the tax described in Subsection (11)(f)(ii)(A).
             53532          (g) If the agreement required by Subsection (11)(a) terminates, a reduction of tax is not
             53533      permitted under this Subsection (11) beginning on the first day of the calendar quarter after a
             53534      30-day period beginning on the day the agreement terminates.
             53535          (h) If there is a conflict between this Subsection (11) and the agreement required by
             53536      Subsection (11)(a), this Subsection (11) governs.
             53537          Section 1049. Section 59-13-301.5 is amended to read:

             53538           59-13-301.5. Refund of taxes impacting Ute tribe and Ute tribal members.
             53539          (1) In accordance with this section, the Ute tribe may receive a refund from the state of
             53540      amounts paid in accordance with Section 59-13-301 if:
             53541          (a) the amounts paid by the Ute tribe when it purchases the special fuel includes the
             53542      amount paid in taxes on the special fuel;
             53543          (b) the special fuel is purchased for use by:
             53544          (i) the Ute tribe; or
             53545          (ii) a Ute tribal member from a retail station that is:
             53546          (A) wholly owned by the Ute tribe; and
             53547          (B) located on Ute trust land; and
             53548          (c) the governor and the Ute tribe execute and maintain an agreement meeting the
             53549      requirements of Subsection (3).
             53550          (2) In addition to the agreement required by Subsection (1), the commission shall enter
             53551      into an agreement with the Ute tribe that:
             53552          (a) provides an allocation formula or procedure for determining:
             53553          (i) the amount of special fuel sold by the Ute tribe to a Ute tribal member; and
             53554          (ii) the amount of special fuel sold by the Ute tribe to a person who is not a Ute tribal
             53555      member; and
             53556          (b) provides a process by which:
             53557          (i) the Ute tribe obtains a refund permitted by this section; and
             53558          (ii) reports and remits special fuel tax to the state for sales made to persons who are not
             53559      Ute tribal members.
             53560          (3) The agreement required under Subsection (1):
             53561          (a) may not:
             53562          (i) authorize the state to impose a tax in addition to a tax imposed under this chapter;
             53563          (ii) provide a refund, credit, or similar tax relief that is greater or different than the
             53564      refund permitted under this section; or
             53565          (iii) affect the power of the state to establish rates of taxation; and

             53566          (b) shall:
             53567          (i) provide that the state agrees to allow the refund described in this section;
             53568          (ii) be in writing;
             53569          (iii) be signed by:
             53570          (A) the governor; and
             53571          (B) the chair of the Business Committee of the Ute tribe;
             53572          (iv) be conditioned on obtaining any approval required by federal law; and
             53573          (v) state the effective date of the agreement.
             53574          (4) (a) The governor shall report to the commission by no later than February 1 of each
             53575      year as to whether or not an agreement meeting the requirements of this Subsection (4) is in
             53576      effect.
             53577          (b) If an agreement meeting the requirements of this Subsection (4) is terminated, the
             53578      refund permitted under this section is not allowed beginning the January 1 following the date the
             53579      agreement terminates.
             53580          (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53581      Administrative Rulemaking Act, the commission may make rules regarding the procedures for
             53582      seeking a refund agreed to under the agreement described in Subsection (2).
             53583          Section 1050. Section 59-13-302 is amended to read:
             53584           59-13-302. Definitions -- License requirements -- Penalty -- Application process
             53585      and requirements -- Fee not required -- Bonds -- Discontinuance of business -- Liens
             53586      upon property.
             53587          (1) As used in this section:
             53588          (a) "applicant" means a person that:
             53589          (i) is required by this section to obtain a license; and
             53590          (ii) submits an application:
             53591          (A) to the commission; and
             53592          (B) for a license under this section;
             53593          (b) "application" means an application for a license under this section;

             53594          (c) "fiduciary of the applicant" means a person that:
             53595          (i) is required to collect, truthfully account for, and pay over an amount under this part
             53596      for an applicant; and
             53597          (ii) (A) is a corporate officer of the applicant described in Subsection (1)(c)(i);
             53598          (B) is a director of the applicant described in Subsection (1)(c)(i);
             53599          (C) is an employee of the applicant described in Subsection (1)(c)(i);
             53600          (D) is a partner of the applicant described in Subsection (1)(c)(i);
             53601          (E) is a trustee of the applicant described in Subsection (1)(c)(i); or
             53602          (F) has a relationship to the applicant described in Subsection (1)(c)(i) that is similar to
             53603      a relationship described in Subsections (1)(c)(ii)(A) through (E) as determined by the
             53604      commission by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53605      Administrative Rulemaking Act;
             53606          (d) "fiduciary of the licensee" means a person that:
             53607          (i) is required to collect, truthfully account for, and pay over an amount under this part
             53608      for a licensee; and
             53609          (ii) (A) is a corporate officer of the licensee described in Subsection (1)(d)(i);
             53610          (B) is a director of the licensee described in Subsection (1)(d)(i);
             53611          (C) is an employee of the licensee described in Subsection (1)(d)(i);
             53612          (D) is a partner of the licensee described in Subsection (1)(d)(i);
             53613          (E) is a trustee of the licensee described in Subsection (1)(d)(i); or
             53614          (F) has a relationship to the licensee described in Subsection (1)(d)(i) that is similar to a
             53615      relationship described in Subsections (1)(d)(ii)(A) through (E) as determined by the commission
             53616      by rule made in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53617      Administrative Rulemaking Act;
             53618          (e) "license" means a license under this section; and
             53619          (f) "licensee" means a person that is licensed under this section by the commission.
             53620          (2) A person that is required to collect an amount under this part is guilty of a criminal
             53621      violation as provided in Section 59-1-401 if before obtaining a license under this section that

             53622      person engages in business within the state.
             53623          (3) The license described in Subsection (2):
             53624          (a) shall be granted and issued:
             53625          (i) by the commission in accordance with this section;
             53626          (ii) without a license fee; and
             53627          (iii) if:
             53628          (A) an applicant:
             53629          (I) states the applicant's name and address in the application; and
             53630          (II) provides other information in the application that the commission may require; and
             53631          (B) the person meets the requirements of this section to be granted a license as
             53632      determined by the commission;
             53633          (b) may not be assigned to another person; and
             53634          (c) is valid:
             53635          (i) only for the person named on the license; and
             53636          (ii) until:
             53637          (A) the person described in Subsection (3)(c)(i):
             53638          (I) ceases to do business; or
             53639          (II) changes that person's business address; or
             53640          (B) the commission revokes the license.
             53641          (4) The commission shall review an application and determine whether:
             53642          (a) the applicant meets the requirements of this section to be issued a license; and
             53643          (b) a bond is required to be posted with the commission in accordance with Subsection
             53644      (5) before the applicant may be issued a license.
             53645          (5) (a) An applicant shall post a bond with the commission before the commission may
             53646      issue the applicant a license if:
             53647          (i) a license under this section was revoked for a delinquency under this part for:
             53648          (A) the applicant;
             53649          (B) a fiduciary of the applicant; or

             53650          (C) a person for which the applicant or the fiduciary of the applicant is required to
             53651      collect, truthfully account for, and pay over a tax under this part; or
             53652          (ii) there is a delinquency in paying a tax under this part for:
             53653          (A) the applicant;
             53654          (B) a fiduciary of the applicant; or
             53655          (C) a person for which the applicant or the fiduciary of the applicant is required to
             53656      collect, truthfully account for, and pay over a tax under this part.
             53657          (b) If the commission determines it is necessary to ensure compliance with this part, the
             53658      commission may require a licensee to:
             53659          (i) for a licensee that has not posted a bond under this section with the commission,
             53660      post a bond with the commission in accordance with Subsections (5)(c) through (g); or
             53661          (ii) for a licensee that has posted a bond under this section with the commission,
             53662      increase the amount of the bond posted with the commission.
             53663          (c) A bond under this Subsection (5) shall be:
             53664          (i) executed by:
             53665          (A) for an applicant, the applicant as principal, with a corporate surety; or
             53666          (B) for a licensee, the licensee as principal, with a corporate surety; and
             53667          (ii) payable to the commission conditioned upon the faithful performance of all of the
             53668      requirements of this part including:
             53669          (A) the payment of all amounts under this part;
             53670          (B) the payment of any:
             53671          (I) penalty as provided in Section 59-1-401 ; or
             53672          (II) interest as provided in Section 59-1-402 ; or
             53673          (C) any other obligation of the:
             53674          (I) applicant under this part; or
             53675          (II) licensee under this part.
             53676          (d) Except as provided in Subsection (5)(f), the commission shall calculate the amount
             53677      of a bond under this Subsection (5) on the basis of:

             53678          (i) commission estimates of:
             53679          (A) an applicant's liability for any amount under this part; or
             53680          (B) a licensee's liability for any amount under this part; and
             53681          (ii) the amount of a delinquency described in Subsection (5)(e) if:
             53682          (A) a license under this section was revoked for a delinquency under this part for:
             53683          (I) (Aa) an applicant; or
             53684          (Bb) a licensee;
             53685          (II) a fiduciary of the:
             53686          (Aa) applicant; or
             53687          (Bb) licensee; or
             53688          (III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of
             53689      the licensee is required to collect, truthfully account for, and pay over an amount under this
             53690      part; or
             53691          (B) there is a delinquency in paying an amount under this part for:
             53692          (I) (Aa) an applicant; or
             53693          (Bb) a licensee;
             53694          (II) a fiduciary of the:
             53695          (Aa) applicant; or
             53696          (Bb) licensee; or
             53697          (III) a person for which the applicant, licensee, fiduciary of the applicant, or fiduciary of
             53698      the licensee is required to collect, truthfully account for, and pay over an amount under this
             53699      part.
             53700          (e) Except as provided in Subsection (5)(f), for purposes of Subsection (5)(d)(ii):
             53701          (i) for an applicant, the amount of the delinquency is the sum of:
             53702          (A) the amount of any delinquency that served as a basis for revoking the license under
             53703      this section of:
             53704          (I) the applicant;
             53705          (II) a fiduciary of the applicant; or

             53706          (III) a person for which the applicant or the fiduciary of the applicant is required to
             53707      collect, truthfully account for, and pay over an amount under this part; or
             53708          (B) the amount that any of the following owe under this part:
             53709          (I) the applicant;
             53710          (II) a fiduciary of the applicant; and
             53711          (III) a person for which the applicant or the fiduciary of the applicant is required to
             53712      collect, truthfully account for, and pay over an amount under this part; or
             53713          (ii) for a licensee, the amount of the delinquency is the sum of:
             53714          (A) the amount of any delinquency that served as a basis for revoking the license under
             53715      this section of:
             53716          (I) the licensee;
             53717          (II) a fiduciary of the licensee; or
             53718          (III) a person for which the licensee or the fiduciary of the licensee is required to
             53719      collect, truthfully account for, and pay over an amount under this part; or
             53720          (B) the amount that any of the following owe under this part:
             53721          (I) the licensee;
             53722          (II) a fiduciary of the licensee; and
             53723          (III) a person for which the licensee or the fiduciary of the licensee is required to
             53724      collect, truthfully account for, and pay over an amount under this part.
             53725          (f) Notwithstanding Subsection (5)(d) or (e), a bond required by this Subsection (5)
             53726      may not:
             53727          (i) be less than $10,000; or
             53728          (ii) exceed $500,000.
             53729          (g) (i) Subject to Subsection (5)(g)(ii), a bond required by this section may be combined
             53730      into one bond with any other bond required by this chapter.
             53731          (ii) For purposes of Subsection (5)(g)(i), if a bond required by this section is combined
             53732      into one bond with any other bond required by this chapter, the amount of that combined bond
             53733      is determined by:

             53734          (A) calculating the separate amount of each bond required for each type of fuel included
             53735      in the combined bond; and
             53736          (B) aggregating the separate amounts calculated in Subsection (5)(g)(ii)(A).
             53737          (6) (a) The commission shall revoke a license under this section if:
             53738          (i) a licensee violates any provision of this part; and
             53739          (ii) before the commission revokes the license the commission provides the licensee:
             53740          (A) reasonable notice; and
             53741          (B) a hearing.
             53742          (b) If the commission revokes a licensee's license in accordance with Subsection (6)(a),
             53743      the commission may not issue another license to that licensee until that licensee complies with
             53744      the requirements of this part, including:
             53745          (i) paying any:
             53746          (A) amounts due under this part;
             53747          (B) penalty as provided in Section 59-1-401 ; or
             53748          (C) interest as provided in Section 59-1-402 ; and
             53749          (ii) posting a bond in accordance with Subsection (5).
             53750          (7) (a) If any person ceases to be a supplier within the state by reason of the
             53751      discontinuance, sale, or transfer of the person's business, the supplier shall notify the
             53752      commission in writing at the time the discontinuance, sale, or transfer takes effect.
             53753          (b) The notice shall give the date of discontinuance and, in the event of a sale, the date
             53754      of the sale and the name and address of the purchaser or transferee.
             53755          (c) Taxes on all special fuel delivery or removal made prior to the discontinuance, sale,
             53756      or transfer, shall become due and payable on the date of discontinuance, sale, or transfer.
             53757          (d) The supplier shall make a report and pay all taxes, interest, and penalties and
             53758      surrender to the commission the license certificate that was issued to the supplier by the
             53759      commission.
             53760          (8) (a) The tax imposed by this part shall be a lien upon the property of any supplier
             53761      liable for an amount of tax that is required to be collected, if the supplier sells the business,

             53762      stock of goods, or quits business, and if the supplier fails to make a final return and payment
             53763      within 15 days after the date of selling or quitting business.
             53764          (b) The successor or assigns, if any, shall be required to withhold a sufficient amount of
             53765      the purchase money to cover the amount of the taxes that are required to be collected and
             53766      interest or penalties due and paid under Sections 59-1-401 and 59-1-402 until the former owner
             53767      produces a receipt from the commission showing that the taxes have been paid or a certificate
             53768      stating that no amount of tax is due. If the purchaser of a business or stock of goods fails to
             53769      withhold sufficient purchase money, the purchaser shall be personally liable for the payment of
             53770      the amount that is due.
             53771          Section 1051. Section 59-13-322 is amended to read:
             53772           59-13-322. Refunds of tax due to fire, flood, storm, accident, crime, or discharge
             53773      in bankruptcy -- Filing claims and affidavits -- Commission approval -- Rulemaking --
             53774      Appeals -- Penalties.
             53775          (1) (a) A retailer, wholesaler, or licensed supplier, who without fault, sustains a loss or
             53776      destruction of 7,000 or more gallons of diesel fuel in a single incident due to fire, flood, storm,
             53777      accident, or the commission of a crime and who has paid or is required to pay the tax on the
             53778      special fuel as provided by this part, is entitled to a refund or credit of the tax subject to the
             53779      conditions and limitations provided under this section.
             53780          (b) The claimant shall file a claim for a refund or credit with the commission within 90
             53781      days of the incident.
             53782          (c) Any part of a loss or destruction eligible for indemnification under an insurance
             53783      policy for the taxes paid or required on the loss or destruction of special fuel is not eligible for a
             53784      refund or credit under this section.
             53785          (d) Any claimant filing a claim for a refund or credit shall furnish any or all of the
             53786      information outlined in this section upon request of the commission.
             53787          (e) The burden of proof of loss or destruction is on the claimant who shall provide
             53788      evidence of loss or destruction to the satisfaction of the commission.
             53789          (f) (i) The claim shall include an affidavit containing the:

             53790          (A) name of claimant;
             53791          (B) claimant's address;
             53792          (C) date, time, and location of the incident;
             53793          (D) cause of the incident;
             53794          (E) name of the investigating agencies at the scene;
             53795          (F) number of gallons actually lost from sale; and
             53796          (G) information on any insurance coverages related to the incident.
             53797          (ii) The claimant shall support the claim by submitting the original invoices or copy of
             53798      the original invoices.
             53799          (iii) This original claim and all information contained in it constitutes a permanent file
             53800      with the commission in the name of the claimant.
             53801          (2) (a) A retailer, wholesaler, or licensed distributor who has paid the tax on special fuel
             53802      as provided by this part is entitled to a refund for taxes paid on that portion of an account that:
             53803          (i) relates to 4,500 or more gallons of special fuel purchased in a single transaction for
             53804      which no payment has been received; and
             53805          (ii) has been discharged in a bankruptcy proceeding.
             53806          (b) The claimant shall file a claim for refund with the commission within 90 days from
             53807      the date of the discharge.
             53808          (c) Any claimant filing a claim for a refund shall furnish any or all of the information
             53809      outlined in this section upon request of the commission.
             53810          (d) The burden of proof of discharge is on the claimant who shall provide evidence of
             53811      discharge to the satisfaction of the commission.
             53812          (e) The claim shall include an affidavit containing the following:
             53813          (i) the name of the claimant;
             53814          (ii) the claimant's address;
             53815          (iii) the name of the debtor that received a discharge in bankruptcy; and
             53816          (iv) the portion of the account that is subject to an order granting a discharge.
             53817          (f) The claimant shall support the claim by submitting:

             53818          (i) the original invoices or a copy of the original invoices; and
             53819          (ii) a certified copy of the notice of discharge.
             53820          (g) This original claim and all information contained in it constitutes a permanent file
             53821      with the commission in the name of the claimant.
             53822          (h) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53823      Administrative Rulemaking Act, the commission shall promulgate rules for the allocation of the
             53824      discharge under this Subsection (2) to maximize the claimant's refund amount.
             53825          (3) Upon commission approval of the claim for a refund, the commission shall pay the
             53826      amount found due to the claimant. The total amount of claims for refunds shall be paid from
             53827      the Transportation Fund.
             53828          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53829      Administrative Rulemaking Act, the commission may promulgate rules to enforce this part, and
             53830      may refuse to accept unsubstantiated evidence for the claim. If the commission is not satisfied
             53831      with the evidence submitted in connection with the claim, it may reject the claim or require
             53832      additional evidence.
             53833          (5) Any person aggrieved by the decision of the commission with respect to a refund or
             53834      credit may file a request for agency action, requesting a hearing before the commission.
             53835          (6) Any person who makes any false claim, report, or statement, either as claimant,
             53836      agent, or creditor, with intent to defraud or secure a refund or credit to which the claimant is
             53837      not entitled, is subject to the criminal penalties provided under Section 59-1-401 , and the
             53838      commission shall initiate the filing of a complaint for alleged violations of this part. In addition
             53839      to these penalties, the person may not receive any refund or credit as a claimant or as a creditor
             53840      of a claimant for refund or credit for a period of five years.
             53841          Section 1052. Section 59-13-404 is amended to read:
             53842           59-13-404. Refunds of aviation fuel tax -- Filing claims -- Commission approval --
             53843      Rulemaking -- Appeals -- Penalties.
             53844          (1) A federally certificated air carrier is entitled to a $.015 refund or credit of the
             53845      aviation fuel tax paid on gallons of aviation fuel purchased at the Salt Lake International

             53846      Airport, subject to the conditions and limitations provided under this section.
             53847          (2) (a) A federally certificated air carrier shall file a claim for a refund or credit with the
             53848      commission within 90 days of the end of the tax year for which a claim is made.
             53849          (b) A federally certificated air carrier filing a claim for a refund or credit shall furnish
             53850      any or all of the information outlined in this section upon request of the commission.
             53851          (3) (a) The claim shall include an application containing:
             53852          (i) the name of the federally certificated air carrier claimant;
             53853          (ii) the number of gallons actually purchased;
             53854          (iii) the place of purchase; and
             53855          (iv) any other information required by the commission to support the claim.
             53856          (b) This original claim and all information contained in it, constitutes a permanent file
             53857      with the commission in the name of the federally certificated air carrier claimant.
             53858          (4) Upon commission approval of the claim for a refund, the commission shall pay the
             53859      amount found due to the federally certificated air carrier claimant. The total amount of claims
             53860      for refunds shall be paid from the Transportation Fund.
             53861          (5) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             53862      Administrative Rulemaking Act, the commission may promulgate rules to enforce this part, and
             53863      may refuse to accept unsubstantiated evidence for the claim.
             53864          (b) If the commission is not satisfied with the evidence submitted in connection with the
             53865      claim, it may reject the claim or require additional evidence.
             53866          (6) A federally certificated air carrier aggrieved by the decision of the commission with
             53867      respect to a refund or credit may file a request for agency action, requesting a hearing before the
             53868      commission.
             53869          (7) A federally certificated air carrier who makes any false claim, report, or statement,
             53870      with intent to defraud or secure a refund or credit to which the claimant is not entitled, is
             53871      subject to the criminal penalties provided under Section 59-1-401 , and the commission shall
             53872      initiate the filing of a complaint for alleged violations of this part. In addition to these penalties,
             53873      the federally certificated air carrier may not receive any refund or credit as a claimant for a

             53874      period of five years.
             53875          Section 1053. Section 59-13-502 is amended to read:
             53876           59-13-502. Interstate fuel tax agreements -- Compliance procedures.
             53877          (1) After the commission's membership in an agreement provided for under Section
             53878      59-13-501 becomes effective, a taxpayer shall, for vehicles powered by special fuel qualifying
             53879      under the agreement, be required to pay the special fuel tax at the rate established under Part 3
             53880      in accordance with the provisions of the agreement.
             53881          (2) Any taxpayer who has vehicles, qualifying under an agreement entered into under
             53882      this part, which operate on motor fuel as defined under Section 59-13-102 , shall account for
             53883      and pay tax on fuel used in those vehicles at the rate established under Part 2 in accordance with
             53884      the agreement, and receive credit for taxes paid under Part 2 on purchases as provided for in the
             53885      agreement.
             53886          (3) The statutory notice procedures of this chapter, penalty provisions of Section
             53887      59-1-401 , and adjudicative procedures in [Title 63, Chapter 46b] Title 63G, Chapter 4,
             53888      Administrative Procedures Act, are applicable to this part.
             53889          Section 1054. Section 59-14-204 is amended to read:
             53890           59-14-204. Tax basis -- Rate -- Future increase -- Restricted account -- Use of
             53891      revenues.
             53892          (1) Except for cigarettes described under Subsection 59-14-210 (3), there is levied a tax
             53893      upon the sale, use, storage, or distribution of cigarettes in the state.
             53894          (2) The rates of the tax levied under Subsection (1) are:
             53895          (a) 3.475 cents on each cigarette, for all cigarettes weighing not more than three
             53896      pounds per thousand cigarettes; and
             53897          (b) 4.075 cents on each cigarette, for all cigarettes weighing in excess of three pounds
             53898      per thousand cigarettes.
             53899          (3) Except as otherwise provided under this chapter, the tax levied under Subsection (1)
             53900      shall be paid by any person who is the manufacturer, jobber, importer, distributor, wholesaler,
             53901      retailer, user, or consumer.

             53902          (4) The tax rates specified in this section shall be increased by the commission by the
             53903      same amount as any future reduction in the federal excise tax on cigarettes.
             53904          (5) (a) There is created within the General Fund a restricted account known as the
             53905      "Cigarette Tax Restricted Account."
             53906          (b) Beginning on July 1, 1998, $250,000 of the revenues generated by the increase in
             53907      the cigarette tax under this section enacted during the 1997 Annual General Session shall be
             53908      annually deposited into the account.
             53909          (c) The Department of Health shall expend the funds deposited in the account under
             53910      Subsection (5)(b) for a tobacco prevention and control media campaign targeted towards
             53911      children.
             53912          (d) The following revenue generated from the tax increase imposed under Subsection
             53913      (1) during the 2002 General Session shall be deposited in the Cigarette Tax Restricted Account:
             53914          (i) 22% of the revenue to be annually appropriated to the Department of Health for
             53915      tobacco prevention, reduction, cessation, and control programs;
             53916          (ii) 15% of the revenue to be annually appropriated to the University of Utah Health
             53917      Sciences Center for the Huntsman Cancer Institute for cancer research; and
             53918          (iii) 21% of the revenue to be annually appropriated to the University of Utah Health
             53919      Sciences Center for medical education at the University of Utah School of Medicine.
             53920          (e) Any balance remaining in the Cigarette Tax Restricted Account at the end of the
             53921      fiscal year shall be appropriated during the next fiscal year for the purposes set forth in
             53922      Subsections (5)(d)(i) through (5)(d)(iii) in proportion to the amount of revenue deposited into
             53923      the account for each purpose.
             53924          (f) The Legislature shall give particular consideration to appropriating any revenues
             53925      resulting from the change in tax rates under Subsection (2) adopted during the 2002 Annual
             53926      General Session and not otherwise appropriated pursuant to Subsection (5)(d) to enhance
             53927      Medicaid provider reimbursement rates and medical coverage for the uninsured.
             53928          (g) Any program or entity that receives funding under Subsection (5)(d) shall provide
             53929      an annual report to the Health and Human Services Interim Committee no later that September

             53930      1 of each year. The report shall include:
             53931          (i) the amount funded;
             53932          (ii) the amount expended;
             53933          (iii) a description of the effectiveness of the program; and
             53934          (iv) if the program is a tobacco cessation program, the report required in Section
             53935      [ 63-97-401 ] 51-9-203 .
             53936          Section 1055. Section 59-14-407 is amended to read:
             53937           59-14-407. Reporting of manufacturer name.
             53938          (1) As used in this section:
             53939          (a) "Cigarette" has the same meaning as defined in Section 59-22-202 .
             53940          (b) "Tobacco product manufacturer" has the same meaning as defined in Section
             53941      59-22-202 .
             53942          (2) Any manufacturer, distributor, wholesaler, or retail dealer who under Section
             53943      59-14-205 affixes a stamp to an individual package or container of cigarettes manufactured or
             53944      sold by a tobacco product manufacturer required to place funds into escrow under Section
             53945      59-22-203 shall report quarterly to the commission:
             53946          (a) the quantity of cigarettes in the package or container; and
             53947          (b) the name of the manufacturer of the cigarettes.
             53948          (3) Any manufacturer, distributor, wholesaler, retail dealer, or other person who is
             53949      required to pay the tax levied under Part 3, Tobacco Products, on a tobacco product defined as
             53950      a cigarette under Section 59-22-202 and manufactured or sold by a tobacco product
             53951      manufacturer required to place funds into escrow under Section 59-22-203 shall report
             53952      quarterly to the commission:
             53953          (a) the quantity of cigarettes upon which the tax is levied; and
             53954          (b) the name of the manufacturer of each cigarette.
             53955          (4) (a) The reports under Subsections (2) and (3) shall be made no later than quarterly
             53956      on or before the last day of the month following each calendar quarterly period pursuant to rules
             53957      established by the commission in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,

             53958      Utah Administrative Rulemaking Act.
             53959          (b) A person required to file a report under this section is subject to the penalties under
             53960      Section 59-1-401 for failing to file a report in a timely manner, or for supplying false or
             53961      fraudulent information.
             53962          Section 1056. Section 59-14-409 is amended to read:
             53963           59-14-409. Definitions -- Credit or refund for tax paid on cigarette or tobacco
             53964      product that is destroyed or returned to the manufacturer -- Interest -- Rulemaking
             53965      authority.
             53966          (1) As used in this section, "licensed person" means a person:
             53967          (a) licensed by the commission in accordance with Section 59-14-202 ; and
             53968          (b) that is a:
             53969          (i) distributor;
             53970          (ii) jobber;
             53971          (iii) manufacturer;
             53972          (iv) retailer;
             53973          (v) wholesaler; or
             53974          (vi) a person similar to a person described in Subsections (1)(b)(i) through (v) as
             53975      determined by the commission by rule.
             53976          (2) A licensed person may apply to the commission for a credit or refund as provided in
             53977      Subsection (3) if:
             53978          (a) on or after July 1, 2005, the following are removed from retail sale or from storage:
             53979          (i) a cigarette; or
             53980          (ii) a tobacco product;
             53981          (b) before a cigarette or tobacco product is removed from retail sale or from storage in
             53982      accordance with Subsection (2)(a), the licensed person remits a tax:
             53983          (i) to the commission;
             53984          (ii) on the:
             53985          (A) cigarette; or

             53986          (B) tobacco product; and
             53987          (iii) in accordance with:
             53988          (A) Part 2, Cigarettes; or
             53989          (B) Part 3, Tobacco Products; and
             53990          (c) the licensed person verifies to the commission that the cigarette or tobacco product
             53991      described in Subsection (2)(a) has been:
             53992          (i) returned to the manufacturer of the cigarette or tobacco product; or
             53993          (ii) destroyed.
             53994          (3) The amount of the credit or refund described in Subsection (2) is equal to:
             53995          (a) for a cigarette removed from retail sale or from storage, the amount of tax the
             53996      licensed person paid on the cigarette in accordance with Part 2, Cigarettes; or
             53997          (b) for a tobacco product removed from retail sale or from storage, the amount of tax
             53998      the licensed person paid on the tobacco product in accordance with Part 3, Tobacco Products.
             53999          (4) (a) The commission shall grant a credit or refund under this section if the
             54000      commission determines that a licensed person meets the requirements of Subsection (2).
             54001          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             54002      Administrative Rulemaking Act, the commission may make rules establishing procedures and
             54003      requirements for a licensed person to verify to the commission that a cigarette or tobacco
             54004      product described in Subsection (2)(a) has been:
             54005          (i) returned to the manufacturer of the cigarette or tobacco product; or
             54006          (ii) destroyed.
             54007          (5) (a) If the commission makes a credit or refund under this section within a 90-day
             54008      period after the day on which a licensed person submits an application to the commission for the
             54009      credit or refund, interest may not be added to the amount of credit or refund.
             54010          (b) If the commission makes a credit or refund under this section more than 90 days
             54011      after the day on which a licensed person submits an application to the commission for the credit
             54012      or refund, interest shall be added to the amount of credit or refund as provided in Section
             54013      59-1-402 .

             54014          (6) (a) The commission may create a form for:
             54015          (i) a licensed person to:
             54016          (A) submit a claim for a credit or refund; or
             54017          (B) verify to the commission that a cigarette or tobacco product has been:
             54018          (I) returned to the manufacturer of the cigarette or tobacco product; or
             54019          (II) destroyed; or
             54020          (ii) processing a claim for a credit or refund for payment.
             54021          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             54022      Administrative Rulemaking Act, the commission may make rules defining a person similar to a
             54023      person described in Subsections (1)(b)(i) through (v).
             54024          Section 1057. Section 59-14-603 is amended to read:
             54025           59-14-603. Directory of cigarettes approved for stamping and sale.
             54026          (1) No later than August 30, 2005, the commission shall develop and publish on its
             54027      website a directory listing:
             54028          (a) all tobacco product manufacturers that have provided current and accurate
             54029      certifications conforming to the requirements of Section 59-14-602 ; and
             54030          (b) all brand families that are listed in the certifications required by Section 59-14-602 ,
             54031      except the commission shall not include or retain in the directory:
             54032          (i) the name or brand families of any nonparticipating manufacturer:
             54033          (A) who failed to provide the certification required by Section 59-14-602 ; or
             54034          (B) whose certification is determined by the commission to be out of compliance with
             54035      Section 59-14-602 , unless the commission has determined that the violation has been cured to
             54036      the satisfaction of the commission; or
             54037          (ii) a tobacco product manufacturer or brand family of a nonparticipating manufacturer
             54038      for which the commission determines:
             54039          (A) any escrow payment required by Section 59-22-203 for any period, for any brand
             54040      family, whether or not listed by the nonparticipating manufacturer, has not been fully paid into a
             54041      qualified escrow fund governed by a qualified escrow agreement; or

             54042          (B) any outstanding final judgment, including interest thereon, for a violation of the
             54043      Model Tobacco Settlement Act has not been fully satisfied for the brand family or the tobacco
             54044      product manufacturer.
             54045          (2) The commission shall update the directory required by this section as necessary:
             54046          (a) to correct mistakes;
             54047          (b) to add or remove a tobacco product manufacturer or brand family; and
             54048          (c) to keep the directory in conformity with the requirements of this part.
             54049          (3) (a) Every stamping agent shall provide to the commission a current and valid
             54050      electronic mail address for the purpose of receiving notifications from the commission
             54051      concerning information required by this section and this part.
             54052          (b) The stamping agent shall update the electronic mail address as necessary.
             54053          (4) A determination by the commission to not include or to remove a brand family or
             54054      tobacco product manufacturer from the directory required by this section is subject to review in
             54055      the manner prescribed by [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             54056      Procedures Act.
             54057          Section 1058. Section 59-19-105 is amended to read:
             54058           59-19-105. Stamps to be affixed to marihuana and controlled substance --
             54059      Anonymity provided when purchasing stamps -- Collection and distribution of tax --
             54060      Property in kind.
             54061          (1) When a dealer purchases, acquires, transports, or imports into this state marihuana
             54062      or controlled substances, [he] the dealer shall permanently affix the official indicia on the
             54063      marihuana or controlled substances evidencing the payment of the tax required under this
             54064      chapter. A stamp or other official indicia may not be used more than once.
             54065          (2) Taxes imposed upon marihuana or controlled substances by this chapter are due and
             54066      payable immediately upon acquisition or possession in this state by a dealer.
             54067          (3) Payments required by this chapter shall be made to the commission on forms
             54068      provided by the commission.
             54069          (4) (a) A dealer is not required to give [his] the dealer's name, address, Social Security

             54070      number, or other identifying information on the form.
             54071          (b) The commission or its employees may not reveal any facts contained in any report,
             54072      form, or return required by this chapter or any information obtained from a dealer.
             54073          (c) None of the information contained in a report, form, or return or otherwise obtained
             54074      from a dealer in connection with this section may be used against the dealer in any criminal
             54075      proceeding unless it is independently obtained, except in connection with a proceeding involving
             54076      taxes due under this chapter from the dealer making the return. This subsection supersedes any
             54077      provision to the contrary.
             54078          (d) A person who discloses information in violation of this subsection is guilty of a class
             54079      A misdemeanor.
             54080          (5) This section does not prohibit the commission from publishing statistics that do not
             54081      disclose the identity of a dealer or the actual contents of any reports, forms, or returns.
             54082          (6) (a) The commission shall collect all taxes imposed under this chapter. Amounts
             54083      collected under this chapter, whether characterized as taxes, interest, or penalties, shall be
             54084      deposited in the Drug Stamp Tax Fund as a dedicated credit and shall be applied and distributed
             54085      under Section [ 63-38-9 ] 63J-1-404 of the Budgetary Procedures Act as follows:
             54086          (i) forty percent to the commission for administrative costs of recovery; and
             54087          (ii) sixty percent to the law enforcement agency conducting the controlled substance
             54088      investigation, to be used and applied by the agency in the continued enforcement of controlled
             54089      substance laws.
             54090          (b) If there is more than one participating law enforcement agency, the 60% under
             54091      Subsection (6)(a)(ii) shall be divided equitably and distributed among the agencies by the
             54092      administrative law judge conducting the hearing to determine taxpayer liability. The distribution
             54093      shall be based upon the extent of agency participation as appears from evidence submitted by
             54094      each agency relative to actual time and expense incurred in the investigation.
             54095          (c) If no law enforcement agency is involved in the collection of a specific amount
             54096      under this chapter, the entire amount collected shall be applied under Subsection (6)(a)(i) to
             54097      administrative costs of recovery.

             54098          (7) (a) If property in kind obtained from the taxpayer is of use or benefit to the
             54099      commission in the enforcement of this chapter or is of use or benefit to the participating law
             54100      enforcement agency in the continued enforcement of controlled substance laws, either the
             54101      commission or the law enforcement agency may apply to the administrative law judge for the
             54102      award of the property. If the administrative law judge finds the property is of use or benefit
             54103      either to the commission or the law enforcement agency, the property shall be awarded
             54104      accordingly.
             54105          (b) Before an award under this subsection is ordered, the property shall be appraised by
             54106      a court-appointed appraiser and the appraised value shall be credited to the taxpayer. If the
             54107      taxpayer objects to the results of the court-appointed appraisal, [he] the taxpayer may obtain
             54108      [his] the taxpayer's own appraisal at [his] the taxpayer's own expense within ten days of the
             54109      court-appointed appraisal. The decision of the administrative law judge as to value is
             54110      controlling.
             54111          (c) The value of any property in kind awarded to the commission or to the participating
             54112      law enforcement agency shall be counted as a portion of its percentage share under Subsection
             54113      (6).
             54114          (8) Property of the taxpayer otherwise subject to forfeiture under Section 58-37-13 is
             54115      not affected by this chapter if there is compliance with Section 58-37-13 regarding the forfeiture
             54116      and the proceeds and property seized and forfeited are accordingly divided and distributed.
             54117          Section 1059. Section 59-21-2 is amended to read:
             54118           59-21-2. Mineral Bonus Account created -- Contents -- Use of Mineral Bonus
             54119      Account money -- Mineral Lease Account created -- Contents -- Appropriation of monies
             54120      from Mineral Lease Account.
             54121          (1) (a) The Mineral Bonus Account is created within the General Fund.
             54122          (b) The Mineral Bonus Account consists of federal mineral lease bonus payments
             54123      deposited pursuant to Subsection 59-21-1 (3).
             54124          (c) The Legislature shall make appropriations from the Mineral Bonus Account in
             54125      accordance with Section 35 of the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 191.

             54126          (d) The state treasurer shall:
             54127          (i) invest the money in the Mineral Bonus Account by following the procedures and
             54128      requirements of Title 51, Chapter 7, State Money Management Act; and
             54129          (ii) deposit all interest or other earnings derived from the account into the Mineral
             54130      Bonus Account.
             54131          (2) (a) The Mineral Lease Account is created within the General Fund.
             54132          (b) The Mineral Lease Account consists of federal mineral lease money deposited
             54133      pursuant to Subsection 59-21-1 (1).
             54134          (c) The Legislature shall make appropriations from the Mineral Lease Account as
             54135      provided in Subsection 59-21-1 (1) and this Subsection (2).
             54136          (d) The Legislature shall annually appropriate 32.5% of all deposits made to the Mineral
             54137      Lease Account to the Permanent Community Impact Fund established by Section 9-4-303 .
             54138          (e) The Legislature shall annually appropriate 2.25% of all deposits made to the Mineral
             54139      Lease Account to the State Board of Education, to be used for education research and
             54140      experimentation in the use of staff and facilities designed to improve the quality of education in
             54141      Utah.
             54142          (f) The Legislature shall annually appropriate 2.25% of all deposits made to the Mineral
             54143      Lease Account to the Utah Geological Survey, to be used for activities carried on by the survey
             54144      having as a purpose the development and exploitation of natural resources in the state.
             54145          (g) The Legislature shall annually appropriate 2.25% of all deposits made to the Mineral
             54146      Lease Account to the Water Research Laboratory at Utah State University, to be used for
             54147      activities carried on by the laboratory having as a purpose the development and exploitation of
             54148      water resources in the state.
             54149          (h) (i) The Legislature shall annually appropriate to the Department of Transportation
             54150      40% of all deposits made to the Mineral Lease Account to be distributed as provided in
             54151      Subsection (2)(h)(ii) to:
             54152          (A) counties;
             54153          (B) special service districts established:

             54154          (I) by counties;
             54155          (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
             54156          (III) for the purpose of constructing, repairing, or maintaining roads; or
             54157          (C) special service districts established:
             54158          (I) by counties;
             54159          (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
             54160          (III) for other purposes authorized by statute.
             54161          (ii) The Department of Transportation shall allocate the funds specified in Subsection
             54162      (2)(h)(i):
             54163          (A) in amounts proportionate to the amount of mineral lease money generated by each
             54164      county; and
             54165          (B) to a county or special service district established by a county under Title 17A,
             54166      Chapter 2, Part 13, Utah Special Service District Act, as determined by the county legislative
             54167      body.
             54168          (i) (i) The Legislature shall annually appropriate 5% of all deposits made to the Mineral
             54169      Lease Account to the Department of Community and Culture to be distributed to:
             54170          (A) special service districts established:
             54171          (I) by counties;
             54172          (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
             54173          (III) for the purpose of constructing, repairing, or maintaining roads; or
             54174          (B) special service districts established:
             54175          (I) by counties;
             54176          (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
             54177          (III) for other purposes authorized by statute.
             54178          (ii) The Department of Community and Culture may distribute the amounts described in
             54179      Subsection (2)(i)(i) only to special service districts established under Title 17A, Chapter 2, Part
             54180      13, Utah Special Service District Act, by counties:
             54181          (A) of the third, fourth, fifth, or sixth class;

             54182          (B) in which 4.5% or less of the mineral lease moneys within the state are generated;
             54183      and
             54184          (C) that are significantly socially or economically impacted as provided in Subsection
             54185      (3)(i)(iii) by the development of minerals under the Mineral Lands Leasing Act, 30 U.S.C. Sec.
             54186      181 et seq.
             54187          (iii) The significant social or economic impact required under Subsection (2)(i)(ii)(C)
             54188      shall be as a result of:
             54189          (A) the transportation within the county of hydrocarbons, including solid hydrocarbons
             54190      as defined in Section 59-5-101 ;
             54191          (B) the employment of persons residing within the county in hydrocarbon extraction,
             54192      including the extraction of solid hydrocarbons as defined in Section 59-5-101 ; or
             54193          (C) a combination of Subsections (2)(i)(iii)(A) and (B).
             54194          (iv) For purposes of distributing the appropriations under this Subsection (2)(i) to
             54195      special service districts established by counties under Title 17A, Chapter 2, Part 13, Utah
             54196      Special Service District Act, the Department of Community and Culture shall:
             54197          (A) (I) allocate 50% of the appropriations equally among the counties meeting the
             54198      requirements of Subsections (2)(i)(ii) and (iii); and
             54199          (II) allocate 50% of the appropriations based on the ratio that the population of each
             54200      county meeting the requirements of Subsections (2)(i)(ii) and (iii) bears to the total population
             54201      of all of the counties meeting the requirements of Subsections (2)(i)(ii) and (iii); and
             54202          (B) after making the allocations described in Subsection (2)(i)(iv)(A), distribute the
             54203      allocated revenues to special service districts established by the counties under Title 17A,
             54204      Chapter 2, Part 13, Utah Special Service District Act, as determined by the executive director of
             54205      the Department of Community and Culture after consulting with the county legislative bodies of
             54206      the counties meeting the requirements of Subsections (2)(i)(ii) and (iii).
             54207          (v) The executive director of the Department of Community and Culture:
             54208          (A) shall determine whether a county meets the requirements of Subsections (2)(i)(ii)
             54209      and (iii);

             54210          (B) shall distribute the appropriations under Subsection (2)(i)(i) to special service
             54211      districts established by counties under Title 17A, Chapter 2, Part 13, Utah Special Service
             54212      District Act, that meet the requirements of Subsections (2)(i)(ii) and (iii); and
             54213          (C) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             54214      Administrative Rulemaking Act, may make rules:
             54215          (I) providing a procedure for making the distributions under this Subsection (2)(i) to
             54216      special service districts; and
             54217          (II) defining the term "population" for purposes of Subsection (2)(i)(iv).
             54218          (j) (i) The Legislature shall annually make the following appropriations from the
             54219      Mineral Lease Account:
             54220          (A) an amount equal to 52 cents multiplied by the number of acres of school or
             54221      institutional trust lands, lands owned by the Division of Parks and Recreation, and lands owned
             54222      by the Division of Wildlife Resources that are not under an in lieu of taxes contract, to each
             54223      county in which those lands are located;
             54224          (B) to each county in which school or institutional trust lands are transferred to the
             54225      federal government after December 31, 1992, an amount equal to the number of transferred
             54226      acres in the county multiplied by a payment per acre equal to the difference between 52 cents
             54227      per acre and the per acre payment made to that county in the most recent payment under the
             54228      federal payment in lieu of taxes program, 31 U.S.C. Sec. 6901 et seq., unless the federal
             54229      payment was equal to or exceeded the 52 cents per acre, in which case a payment under this
             54230      Subsection (2)(j)(i)(B) may not be made for the transferred lands;
             54231          (C) to each county in which federal lands, which are entitlement lands under the federal
             54232      in lieu of taxes program, are transferred to the school or institutional trust, an amount equal to
             54233      the number of transferred acres in the county multiplied by a payment per acre equal to the
             54234      difference between the most recent per acre payment made under the federal payment in lieu of
             54235      taxes program and 52 cents per acre, unless the federal payment was equal to or less than 52
             54236      cents per acre, in which case a payment under this Subsection (2)(j)(i)(C) may not be made for
             54237      the transferred land; and

             54238          (D) to a county of the fifth or sixth class, an amount equal to the product of:
             54239          (I) $1,000; and
             54240          (II) the number of residences described in Subsection (2)(j)(iv) that are located within
             54241      the county.
             54242          (ii) A county receiving money under Subsection (2)(j)(i) may, as determined by the
             54243      county legislative body, distribute the money or a portion of the money to:
             54244          (A) special service districts established by the county under Title 17A, Chapter 2, Part
             54245      13, Utah Special Service District Act;
             54246          (B) school districts; or
             54247          (C) public institutions of higher education.
             54248          (iii) (A) Beginning in fiscal year 1994-95 and in each year after fiscal year 1994-95, the
             54249      Division of Finance shall increase or decrease the amounts per acre provided for in Subsections
             54250      (2)(j)(i)(A) through (C) by the average annual change in the Consumer Price Index for all urban
             54251      consumers published by the Department of Labor.
             54252          (B) For fiscal years beginning on or after fiscal year 2001-02, the Division of Finance
             54253      shall increase or decrease the amount described in Subsection (2)(j)(i)(D)(I) by the average
             54254      annual change in the Consumer Price Index for all urban consumers published by the
             54255      Department of Labor.
             54256          (iv) Residences for purposes of Subsection (2)(j)(i)(D)(II) are residences that are:
             54257          (A) owned by:
             54258          (I) the Division of Parks and Recreation; or
             54259          (II) the Division of Wildlife Resources;
             54260          (B) located on lands that are owned by:
             54261          (I) the Division of Parks and Recreation; or
             54262          (II) the Division of Wildlife Resources; and
             54263          (C) are not subject to taxation under:
             54264          (I) Chapter 2, Property Tax Act; or
             54265          (II) Chapter 4, Privilege Tax.

             54266          (k) The Legislature shall annually appropriate to the Permanent Community Impact
             54267      Fund all deposits remaining in the Mineral Lease Account after making the appropriations
             54268      provided for in Subsections (2)(d) through (j).
             54269          (3) (a) Each agency, board, institution of higher education, and political subdivision
             54270      receiving money under this chapter shall provide the Legislature, through the Office of the
             54271      Legislative Fiscal Analyst, with a complete accounting of the use of that money on an annual
             54272      basis.
             54273          (b) The accounting required under Subsection (3)(a) shall:
             54274          (i) include actual expenditures for the prior fiscal year, budgeted expenditures for the
             54275      current fiscal year, and planned expenditures for the following fiscal year; and
             54276          (ii) be reviewed by the Economic Development and Human Resources Appropriation
             54277      Subcommittee as part of its normal budgetary process under [Title 63, Chapter 38] Title 63J,
             54278      Chapter 1, Budgetary Procedures Act.
             54279          Section 1060. Section 59-24-108 is amended to read:
             54280           59-24-108. Rulemaking authority.
             54281          The commission may make rules under [Title 63, Chapter 46a] Title 63G, Chapter 3,
             54282      Utah Administrative Rulemaking Act, to implement and enforce this chapter.
             54283          Section 1061. Section 59-25-108 is amended to read:
             54284           59-25-108. Rulemaking authority.
             54285          The commission may make rules under [Title 63, Chapter 46a] Title 63G, Chapter 3,
             54286      Utah Administrative Rulemaking Act, to implement and enforce this chapter.
             54287          Section 1062. Section 59-26-106 is amended to read:
             54288           59-26-106. Records.
             54289          (1) A multi-channel video or audio service provider shall maintain records, statements,
             54290      books, or accounts necessary to determine the amount of tax that the multi-channel video or
             54291      audio service provider is required to remit to the commission under this chapter.
             54292          (2) The commission may require a multi-channel video or audio service provider to
             54293      make or keep the records, statements, books, or accounts the commission considers sufficient to

             54294      show the amount of tax for which the multi-channel video or audio service provider is required
             54295      to remit to the commission under this chapter:
             54296          (a) by notice served upon that multi-channel video or audio service provider; or
             54297          (b) by administrative rule made in accordance with [Title 63, Chapter 46a] Title 63G,
             54298      Chapter 3, Utah Administrative Rulemaking Act.
             54299          (3) After notice by the commission, a multi-channel video or audio service provider
             54300      shall open the records, statements, books, or accounts specified in Subsection (2) for
             54301      examination by the commission or a duly authorized agent of the commission.
             54302          Section 1063. Section 59-26-108 is amended to read:
             54303           59-26-108. Rulemaking authority.
             54304          The commission may make rules in accordance with [Title 63, Chapter 46a] Title 63G,
             54305      Chapter 3, Utah Administrative Rulemaking Act, to implement and enforce this chapter.
             54306          Section 1064. Section 59-27-104 is amended to read:
             54307           59-27-104. Payment of tax.
             54308          (1) Subject to Subsection (2), a sexually explicit business or escort service subject to
             54309      the tax imposed by this chapter shall file a return with the commission and pay the tax calculated
             54310      on the return to the commission:
             54311          (a) quarterly on or before the last day of the month immediately following the last day
             54312      of the previous calendar quarter if:
             54313          (i) the sexually explicit business or escort service is required to file a quarterly sales and
             54314      use tax return with the commission under Section 59-12-107 ; or
             54315          (ii) the sexually explicit business or escort service is not required to file a sales and use
             54316      tax return with the commission under Chapter 12, Sales and Use Tax Act; or
             54317          (b) monthly on or before the last day of the month immediately following the last day of
             54318      the previous calendar month if the sexually explicit business is required to file a monthly sales
             54319      and use tax return with the commission under Section 59-12-108 .
             54320          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             54321      Administrative Rulemaking Act, the commission may make rules to:

             54322          (a) establish standards for determining whether an operation is a sexually explicit
             54323      business or escort service; and
             54324          (b) determine, for purposes of Section 59-27-102 , amounts that are similar to an
             54325      amount paid for:
             54326          (i) a salary;
             54327          (ii) a fee;
             54328          (iii) a commission;
             54329          (iv) hire; or
             54330          (v) profit.
             54331          Section 1065. Section 61-1-4 is amended to read:
             54332           61-1-4. Licensing and notice filing procedure.
             54333          (1) (a) A broker-dealer, agent, investment adviser, or investment adviser representative
             54334      must obtain an initial or renewal license by filing with the division or its designee an application
             54335      together with a consent to service of process under Section 61-1-26 .
             54336          (b) (i) The application shall contain the applicant's Social Security number and whatever
             54337      information the division by rule requires concerning such matters as:
             54338          (A) the applicant's form and place of organization;
             54339          (B) the applicant's proposed method of doing business;
             54340          (C) the qualifications and business history of the applicant; in the case of a
             54341      broker-dealer or investment adviser, the qualifications and business history of any partner,
             54342      officer, or director, any person occupying a similar status or performing similar functions, or any
             54343      person directly or indirectly controlling the broker-dealer or investment adviser;
             54344          (D) any injunction or administrative order or conviction of a misdemeanor involving a
             54345      security or any aspect of the securities business and any conviction of a felony; and
             54346          (E) the applicant's financial condition and history.
             54347          (ii) An applicant's Social Security number is a private record under Subsection
             54348      [ 63-2-302 ] 63G-2-302 (1)(h).
             54349          (c) The division may, by rule or order, require an applicant for an initial license to

             54350      publish an announcement of the application in one or more specified newspapers published in
             54351      this state.
             54352          (d) Licenses or notice filings of broker-dealers, agents, investment advisers, and
             54353      investment adviser representatives shall expire on December 31 of each year.
             54354          (e) (i) If no denial order is in effect and no proceeding is pending under Section 61-1-6 ,
             54355      a license becomes effective at noon of the 30th day after an application is filed.
             54356          (ii) The division may by rule or order specify an earlier effective date and may by order
             54357      defer the effective date until noon of the 30th day after the filing of any amendment.
             54358          (iii) Licensing of a broker-dealer automatically constitutes licensing of only one partner,
             54359      officer, director, or a person occupying a similar status or performing similar functions as a
             54360      licensed agent of the broker-dealer.
             54361          (iv) Licensing of an investment adviser automatically constitutes licensing of only one
             54362      partner, officer, director, or a person occupying a similar status or performing similar functions.
             54363          (2) Except with respect to federal covered advisers whose only clients are those
             54364      described in Subsection 61-1-3 (3)(b) or (c), a federal covered adviser shall file with the division,
             54365      prior to acting as a federal covered adviser in this state, a notice filing consisting of such
             54366      documents as have been filed with the Securities and Exchange Commission as the division by
             54367      rule or order may require.
             54368          (3) (a) Any applicant for an initial or renewal license as a broker-dealer or agent shall
             54369      pay a reasonable filing fee as determined under Section 61-1-18.4 .
             54370          (b) Any applicant for an initial or renewal license as an investment adviser or investment
             54371      adviser representative who is subject to licensing under this chapter shall pay a reasonable filing
             54372      fee as determined under Section 61-1-18.4 .
             54373          (c) Any person acting as a federal covered adviser in this state shall pay an initial and
             54374      renewal notice filing fee as determined under Section 61-1-18.4 .
             54375          (d) If the license or renewal is not granted or the application is withdrawn, the division
             54376      shall retain the fee.
             54377          (4) A licensed broker-dealer or investment adviser may file an application for licensing

             54378      of a successor for the unexpired portion of the year. There shall be no filing fee.
             54379          (5) The division may by rule or order require a minimum capital for licensed
             54380      broker-dealers, subject to the limitations of Section 15 of the Securities Exchange Act of 1934,
             54381      and establish minimum financial requirements for investment advisers, subject to the limitations
             54382      of Section 222 of the Investment Advisers Act of 1940, which may include different
             54383      requirements for those investment advisers who maintain custody of or have discretionary
             54384      authority over client funds or securities and those investment advisers who do not.
             54385          (6) (a) The division may by rule or order require licensed broker-dealers and investment
             54386      advisers who have custody of or discretionary authority over client funds or securities to post
             54387      bonds in amounts as the division may prescribe, subject to the limitations of Section 15 of the
             54388      Securities Exchange Act of 1934 for broker-dealers and Section 222 of the Investment Advisers
             54389      Act of 1940 for investment advisers, and may determine their conditions.
             54390          (b) Any appropriate deposit of cash or securities may be accepted in lieu of any required
             54391      bond.
             54392          (c) No bond may be required of any licensee whose net capital, or in the case of an
             54393      investment adviser whose minimum financial requirements, which may be defined by rule,
             54394      exceeds the amounts required by the division.
             54395          (d) Every bond shall provide for suit on the bond by any person who has a cause of
             54396      action under Section 61-1-22 and, if the division by rule or order requires, by any person who
             54397      has a cause of action not arising under this chapter.
             54398          (e) Every bond shall provide that no suit may be maintained to enforce any liability on
             54399      the bond unless brought before the expiration of four years after the act or transaction
             54400      constituting the violation or the expiration of two years after the discovery by the plaintiff of the
             54401      facts constituting the violation, whichever expires first.
             54402          Section 1066. Section 61-1-6 is amended to read:
             54403           61-1-6. Denial, suspension, revocation, cancellation, or withdrawal of license --
             54404      Sanctions.
             54405          (1) Subject to the requirements of Subsections (2) and (3), the director, by means of

             54406      adjudicative proceedings conducted in accordance with [Title 63, Chapter 46b] Title 63G,
             54407      Chapter 4, Administrative Procedures Act, may issue an order:
             54408          (a) denying, suspending, or revoking any license;
             54409          (b) barring or censuring any licensee or any officer, director, partner, or person
             54410      occupying a similar status or performing similar functions for a licensee from employment with
             54411      a licensed broker-dealer or investment adviser;
             54412          (c) restricting or limiting a licensee as to any function or activity of the business for
             54413      which a license is required in this state;
             54414          (d) imposing a fine; or
             54415          (e) any combination of Subsections (1)(a) through (d).
             54416          (2) The director may impose the sanctions in Subsection (1) if the director finds that it
             54417      is in the public interest and finds, with respect to the applicant or licensee or, in the case of a
             54418      broker-dealer or investment adviser, any partner, officer, or director, or any person occupying a
             54419      similar status or performing similar functions, or any person directly or indirectly controlling the
             54420      broker-dealer or investment adviser, that the person:
             54421          (a) has filed an application for a license that, as of its effective date or as of any date
             54422      after filing in the case of an order denying effectiveness, was incomplete in any material respect
             54423      or contained any statement that was, in light of the circumstances under which it was made,
             54424      false or misleading with respect to any material fact;
             54425          (b) has willfully violated or willfully failed to comply with any provision of this chapter
             54426      or a predecessor act or any rule or order under this chapter or a predecessor act;
             54427          (c) was convicted, within the past ten years, of any misdemeanor involving a security or
             54428      any aspect of the securities business, or any felony;
             54429          (d) is permanently or temporarily enjoined by any court of competent jurisdiction from
             54430      engaging in or continuing any conduct or practice involving any aspect of the securities
             54431      business;
             54432          (e) is the subject of an order of the director or any predecessor denying, suspending, or
             54433      revoking license as a broker-dealer, agent, investment adviser, or investment adviser

             54434      representative;
             54435          (f) is the subject of:
             54436          (i) an adjudication or determination, within the past five years by a securities or
             54437      commodities agency or administrator of another state, Canadian province or territory, or a court
             54438      of competent jurisdiction that the person has willfully violated the Securities Act of 1933, the
             54439      Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment
             54440      Company Act of 1940, the Commodity Exchange Act, or the securities or commodities law of
             54441      any other state; or
             54442          (ii) an order entered within the past five years by the securities administrator of any
             54443      state or Canadian province or territory or by the Securities and Exchange Commission denying
             54444      or revoking license as a broker-dealer, agent, investment adviser, or investment adviser
             54445      representative or the substantial equivalent of those terms or is the subject of an order of the
             54446      Securities and Exchange Commission suspending or expelling the person from a national
             54447      securities exchange or national securities association registered under the Securities Exchange
             54448      Act of 1934, or is the subject of a United States post office fraud order; except that
             54449          (iii) the division may not commence agency action to revoke or suspend any license
             54450      under Subsection (2)(f) more than one year from the date of the order relied on, and the
             54451      director may not enter an order under Subsection (2)(f) on the basis of an order under another
             54452      state's law unless that order was based on facts that would currently constitute a ground for an
             54453      agency action under this section;
             54454          (g) has engaged in dishonest or unethical practices in the securities business;
             54455          (h) is insolvent, either in the sense that liabilities exceed assets or in the sense that
             54456      obligations cannot be met as they mature, except that the director may not enter an order
             54457      against a broker-dealer or investment adviser under this Subsection (2)(h) without a finding of
             54458      insolvency as to the broker-dealer or investment adviser;
             54459          (i) is not qualified on the basis of the lack of training, experience, and knowledge of the
             54460      securities business, except as otherwise provided in Subsection (6);
             54461          (j) has failed reasonably to supervise [his] the person's agents or employees if the person

             54462      is a broker-dealer, or his investment adviser representatives or employees if the person is an
             54463      investment adviser; or
             54464          (k) has failed to pay the proper filing fee within 30 days after being notified by the
             54465      division of a deficiency.
             54466          (3) Before the director may issue an order under Subsection (1) that: revokes any
             54467      license; bars or censures any licensee or any officer, director, partner, or person occupying a
             54468      similar status or performing similar functions for a licensee from employment with a licensed
             54469      broker-dealer or investment adviser; or imposes a fine, the Securities Advisory Board shall:
             54470          (a) review the order; and
             54471          (b) if a majority of the Securities Advisory Board approves the order, authorize the
             54472      director to issue it.
             54473          (4) The division may enter a denial order under Subsection (2)(j) or (k), but shall
             54474      vacate the order when the deficiency has been corrected.
             54475          (5) The division may not institute a suspension or revocation proceeding on the basis of
             54476      a fact or transaction known to it when the license became effective unless the proceeding is
             54477      instituted within the next 120 days.
             54478          (6) The following provisions govern the application of Subsection (2)(i):
             54479          (a) The director may not enter an order against a broker-dealer on the basis of the lack
             54480      of qualification of any person other than:
             54481          (i) the broker-dealer [himself] if [he] the broker-dealer is an individual; or
             54482          (ii) an agent of the broker-dealer.
             54483          (b) The director may not enter an order against an investment adviser on the basis of the
             54484      lack of qualification of any person other than:
             54485          (i) the investment adviser [himself] if [he] the investment adviser is an individual; or
             54486          (ii) an investment adviser representative.
             54487          (c) The director may not enter an order solely on the basis of lack of experience if the
             54488      applicant or licensee is qualified by training or knowledge.
             54489          (d) The director shall consider that an agent who will work under the supervision of a

             54490      licensed broker-dealer need not have the same qualifications as a broker-dealer and that an
             54491      investment adviser representative who will work under the supervision of a licensed investment
             54492      adviser need not have the same qualifications as an investment adviser.
             54493          (e) (i) The director shall consider that an investment adviser is not necessarily qualified
             54494      solely on the basis of experience as a broker-dealer or agent.
             54495          (ii) When the director finds that an applicant for a license as a broker-dealer is not
             54496      qualified as an investment adviser, the director may condition the applicant's license as a
             54497      broker-dealer upon the applicant's not transacting business in this state as an investment adviser.
             54498          (f) (i) The division may by rule provide for examinations, which may be written or oral
             54499      or both, to be taken by any class of or all applicants.
             54500          (ii) The division may by rule or order waive the examination requirement as to a person
             54501      or class of persons if the division determines that the examination is not necessary for the
             54502      protection of investors.
             54503          (7) If the director finds that any licensee or applicant for a license is no longer in
             54504      existence, has ceased to do business as a broker-dealer, agent, investment adviser, or investment
             54505      adviser representative, or is subject to an adjudication of mental incompetence or to the control
             54506      of a committee, conservator, or guardian, or cannot be located after reasonable search, the
             54507      division may summarily cancel or deny the license or application according to the procedures
             54508      and requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures
             54509      Act.
             54510          (8) (a) Withdrawal from license as a broker-dealer, agent, investment adviser, or
             54511      investment adviser representative becomes effective 30 days after receipt of an application to
             54512      withdraw or within a shorter period of time as determined by the director, unless:
             54513          (i) a revocation or suspension proceeding is pending when the application is filed;
             54514          (ii) a proceeding to revoke or suspend or to impose conditions upon the withdrawal is
             54515      instituted within 30 days after the application is filed; or
             54516          (iii) additional information is requested by the division regarding the withdrawal
             54517      application.

             54518          (b) (i) If a proceeding described in Subsection (8)(a) is pending or instituted, the
             54519      director shall designate by order when and under what conditions the withdrawal becomes
             54520      effective.
             54521          (ii) If additional information is requested, withdrawal is effective 30 days after the
             54522      additional information is filed.
             54523          (c) (i) If no proceeding is pending or instituted, and withdrawal automatically becomes
             54524      effective, the director may initiate a revocation or suspension proceeding under this section
             54525      within one year after withdrawal became effective.
             54526          (ii) The director shall enter any order under Subsection (2)(b) as of the last date on
             54527      which the license was effective.
             54528          Section 1067. Section 61-1-11.1 is amended to read:
             54529           61-1-11.1. Hearings for certain exchanges of securities.
             54530          (1) An application may be made to the division for approval to issue securities or to
             54531      deliver other consideration in exchange for:
             54532          (a) one or more bona fide outstanding securities, claims, or property interests; or
             54533          (b) partly in exchange for one or more bona fide outstanding securities, claims, or
             54534      property interests, and partly for cash.
             54535          (2) The director may:
             54536          (a) hold a hearing upon the fairness of the terms and conditions of an exchange
             54537      described in Subsection (1); and
             54538          (b) approve or disapprove the terms and conditions of an exchange described in
             54539      Subsection (1).
             54540          (3) After conducting a hearing under this section, if the director finds that the terms and
             54541      conditions of an exchange described in Subsection (1) are fair to those to whom the securities
             54542      will be issued, the director may:
             54543          (a) approve the fairness of the terms and conditions of the exchange described in
             54544      Subsection (1); and
             54545          (b) approve the exchange described in Subsection (1).

             54546          (4) In a hearing under this section, all persons to whom it is proposed to issue securities
             54547      or to deliver other consideration in an exchange under Subsection (1) may appear.
             54548          (5) An application under Subsection (1) shall contain the information and be
             54549      accompanied by the documents required by rule or order of the division.
             54550          (6) Every person filing an application under Subsection (1) shall pay a filing fee as
             54551      determined under Section 61-1-18.4 .
             54552          (7) An applicant under this section shall provide adequate notice of any hearing under
             54553      this section to all persons that have a right to appear, under Subsection (4), at the hearing.
             54554          (8) An application may be made under this section regardless of whether the security or
             54555      transaction being issued is:
             54556          (a) exempt from registration; or
             54557          (b) not required to be registered.
             54558          (9) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             54559      Administrative Rulemaking Act, the division may establish rules to govern the conduct of a
             54560      hearing permitted by this section.
             54561          (10) This section is intended to provide for a fairness hearing that satisfies the
             54562      requirements of Section 3(a)(10) of the Securities Act of 1933, 15 U.S.C. Section 77c(a)(10),
             54563      or any comparable section that may subsequently be enacted.
             54564          Section 1068. Section 61-1-12 is amended to read:
             54565           61-1-12. Denial, suspension, and revocation of registration.
             54566          (1) Upon approval by a majority of the Securities Advisory Board, the director, by
             54567      means of adjudicative proceedings conducted in accordance with [Title 63, Chapter 46b, the]
             54568      Title 63G, Chapter 4, Administrative Procedures Act, may issue a stop order that denies
             54569      effectiveness to, or suspends or revokes the effectiveness of, any securities registration
             54570      statement and may impose a fine if [he] the director finds that the order is in the public interest
             54571      and that:
             54572          (a) the registration statement, as of its effective date or as of any earlier date in the case
             54573      of an order denying effectiveness, or any amendment under Subsection 61-1-11 (10) as of its

             54574      effective date, or any report under Subsection 61-1-11 (9), is incomplete in any material respect,
             54575      or contains any statement that was, in the light of the circumstances under which it was made,
             54576      false or misleading with respect to any material fact;
             54577          (b) any provision of this chapter, or any rule, order, or condition lawfully imposed
             54578      under this chapter, has been willfully violated, in connection with the offering, by:
             54579          (i) the person filing the registration statement;
             54580          (ii) the issuer, any partner, officer, or director of the issuer, any person occupying a
             54581      similar status or performing similar functions, or any person directly or indirectly controlling or
             54582      controlled by the issuer, but only if the person filing the registration statement is directly or
             54583      indirectly controlled by or acting for the issuer; or
             54584          (iii) any underwriter;
             54585          (c) the security registered or sought to be registered is the subject of an administrative
             54586      stop order or similar order, or a permanent or temporary injunction of any court of competent
             54587      jurisdiction entered under any other federal or state act applicable to the offering; except that
             54588      the division may not commence agency action against an effective registration statement under
             54589      this subsection more than one year from the date of the order or injunction relied on, and it may
             54590      not enter an order under this subsection on the basis of an order or injunction entered under the
             54591      securities act of any other state unless that order or injunction was based on facts that would
             54592      currently constitute a ground for a stop order under this section;
             54593          (d) the issuer's enterprise or method of business includes or would include activities that
             54594      are illegal where performed;
             54595          (e) the offering has worked or tended to work a fraud upon purchasers or would so
             54596      operate;
             54597          (f) the offering has been or would be made with unreasonable amounts of underwriters'
             54598      and sellers' discounts, commissions, or other compensation, or promoters' profits or
             54599      participation, or unreasonable amounts or kinds of options;
             54600          (g) when a security is sought to be registered by notification, it is not eligible for such
             54601      registration;

             54602          (h) when a security is sought to be registered by coordination, there has been a failure
             54603      to comply with the undertaking required by Subsection 61-1-9 (2)(d); or
             54604          (i) the applicant or registrant has failed to pay the proper filing fee.
             54605          (2) The director may enter an order under this section but may vacate the order if [he]
             54606      the director finds that the conditions that prompted its entry have changed or that it is otherwise
             54607      in the public interest to do so.
             54608          (3) The director may not issue a stop order against an effective registration statement
             54609      on the basis of a fact or transaction known to the division when the registration statement
             54610      became effective unless the proceeding is instituted within the next 120 days.
             54611          (4) No person may be considered to have violated Section 61-1-7 or 61-1-15 by reason
             54612      of any order or sale effected after the entry of an order under this section if that person proves
             54613      by a preponderance of the evidence that [he] the person did not know, and in the exercise of
             54614      reasonable care could not have known, of the order.
             54615          Section 1069. Section 61-1-13 is amended to read:
             54616           61-1-13. Definitions.
             54617          (1) As used in this chapter:
             54618          (a) "Affiliate" means a person that, directly or indirectly, through one or more
             54619      intermediaries, controls or is controlled by, or is under common control with a person specified.
             54620          (b) (i) "Agent" means any individual other than a broker-dealer who represents a
             54621      broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities.
             54622          (ii) "Agent" does not include an individual who represents:
             54623          (A) an issuer, who receives no commission or other remuneration, directly or indirectly,
             54624      for effecting or attempting to effect purchases or sales of securities in this state, and who
             54625      effects transactions:
             54626          (I) in securities exempted by Subsection 61-1-14 (1)(a), (b), (c), (i), or (j);
             54627          (II) exempted by Subsection 61-1-14 (2);
             54628          (III) in a covered security as described in Sections 18(b)(3) and 18(b)(4)(D) of the
             54629      Securities Act of 1933; or

             54630          (IV) with existing employees, partners, officers, or directors of the issuer; or
             54631          (B) a broker-dealer in effecting transactions in this state limited to those transactions
             54632      described in Section 15(h)(2) of the Securities Exchange Act of 1934.
             54633          (iii) A partner, officer, or director of a broker-dealer or issuer, or a person occupying a
             54634      similar status or performing similar functions, is an agent only if the partner, officer, director, or
             54635      person otherwise comes within the definition of "agent."
             54636          (iv) "Agent" does not include a person described in Subsection (3).
             54637          (c) (i) "Broker-dealer" means any person engaged in the business of effecting
             54638      transactions in securities for the account of others or for the person's own account.
             54639          (ii) "Broker-dealer" does not include:
             54640          (A) an agent;
             54641          (B) an issuer;
             54642          (C) a bank, savings institution, or trust company;
             54643          (D) a person who has no place of business in this state if:
             54644          (I) the person effects transactions in this state exclusively with or through:
             54645          (Aa) the issuers of the securities involved in the transactions;
             54646          (Bb) other broker-dealers; or
             54647          (Cc) banks, savings institutions, trust companies, insurance companies, investment
             54648      companies as defined in the Investment Company Act of 1940, pension or profit-sharing trusts,
             54649      or other financial institutions or institutional buyers, whether acting for themselves or as
             54650      trustees; or
             54651          (II) during any period of 12 consecutive months the person does not direct more than
             54652      15 offers to sell or buy into this state in any manner to persons other than those specified in
             54653      Subsection (1)(c)(ii)(D)(I), whether or not the offeror or any of the offerees is then present in
             54654      this state;
             54655          (E) a general partner who organizes and effects transactions in securities of three or
             54656      fewer limited partnerships, of which the person is the general partner, in any period of 12
             54657      consecutive months;

             54658          (F) a person whose participation in transactions in securities is confined to those
             54659      transactions made by or through a broker-dealer licensed in this state;
             54660          (G) a person who is a real estate broker licensed in this state and who effects
             54661      transactions in a bond or other evidence of indebtedness secured by a real or chattel mortgage
             54662      or deed of trust, or by an agreement for the sale of real estate or chattels, if the entire mortgage,
             54663      deed or trust, or agreement, together with all the bonds or other evidences of indebtedness
             54664      secured thereby, is offered and sold as a unit;
             54665          (H) a person effecting transactions in commodity contracts or commodity options;
             54666          (I) a person described in Subsection (3); or
             54667          (J) other persons as the division, by rule or order, may designate, consistent with the
             54668      public interest and protection of investors, as not within the intent of this Subsection (1)(c).
             54669          (d) "Buy" or "purchase" means every contract for purchase of, contract to buy, or
             54670      acquisition of a security or interest in a security for value.
             54671          (e) "Commodity" means, except as otherwise specified by the division by rule:
             54672          (i) any agricultural, grain, or livestock product or byproduct, except real property or
             54673      any timber, agricultural, or livestock product grown or raised on real property and offered or
             54674      sold by the owner or lessee of the real property;
             54675          (ii) any metal or mineral, including a precious metal, except a numismatic coin whose
             54676      fair market value is at least 15% greater than the value of the metal it contains;
             54677          (iii) any gem or gemstone, whether characterized as precious, semi-precious, or
             54678      otherwise;
             54679          (iv) any fuel, whether liquid, gaseous, or otherwise;
             54680          (v) any foreign currency; and
             54681          (vi) all other goods, articles, products, or items of any kind, except any work of art
             54682      offered or sold by art dealers, at public auction or offered or sold through a private sale by the
             54683      owner of the work.
             54684          (f) (i) "Commodity contract" means any account, agreement, or contract for the
             54685      purchase or sale, primarily for speculation or investment purposes and not for use or

             54686      consumption by the offeree or purchaser, of one or more commodities, whether for immediate
             54687      or subsequent delivery or whether delivery is intended by the parties, and whether characterized
             54688      as a cash contract, deferred shipment or deferred delivery contract, forward contract, futures
             54689      contract, installment or margin contract, leverage contract, or otherwise.
             54690          (ii) Any commodity contract offered or sold shall, in the absence of evidence to the
             54691      contrary, be presumed to be offered or sold for speculation or investment purposes.
             54692          (iii) (A) A commodity contract shall not include any contract or agreement which
             54693      requires, and under which the purchaser receives, within 28 calendar days from the payment in
             54694      good funds any portion of the purchase price, physical delivery of the total amount of each
             54695      commodity to be purchased under the contract or agreement.
             54696          (B) The purchaser is not considered to have received physical delivery of the total
             54697      amount of each commodity to be purchased under the contract or agreement when the
             54698      commodity or commodities are held as collateral for a loan or are subject to a lien of any person
             54699      when the loan or lien arises in connection with the purchase of each commodity or commodities.
             54700          (g) (i) "Commodity option" means any account, agreement, or contract giving a party
             54701      to the option the right but not the obligation to purchase or sell one or more commodities or
             54702      one or more commodity contracts, or both whether characterized as an option, privilege,
             54703      indemnity, bid, offer, put, call, advance guaranty, decline guaranty, or otherwise.
             54704          (ii) "Commodity option" does not include an option traded on a national securities
             54705      exchange registered:
             54706          (A) with the United States Securities and Exchange Commission; or
             54707          (B) on a board of trade designated as a contract market by the Commodity Futures
             54708      Trading Commission.
             54709          (h) "Director" means the director of the Division of Securities charged with the
             54710      administration and enforcement of this chapter.
             54711          (i) "Division" means the Division of Securities established by Section 61-1-18 .
             54712          (j) "Executive director" means the executive director of the Department of Commerce.
             54713          (k) "Federal covered adviser" means a person who:

             54714          (i) is registered under Section 203 of the Investment Advisers Act of 1940; or
             54715          (ii) is excluded from the definition of "investment adviser" under Section 202(a)(11) of
             54716      the Investment Advisers Act of 1940.
             54717          (l) "Federal covered security" means any security that is a covered security under
             54718      Section 18(b) of the Securities Act of 1933 or rules or regulations promulgated under Section
             54719      18(b) of the Securities Act of 1933.
             54720          (m) "Fraud," "deceit," and "defraud" are not limited to their common-law meanings.
             54721          (n) "Guaranteed" means guaranteed as to payment of principal or interest as to debt
             54722      securities, or dividends as to equity securities.
             54723          (o) (i) "Investment adviser" means any person who:
             54724          (A) for compensation, engages in the business of advising others, either directly or
             54725      through publications or writings, as to the value of securities or as to the advisability of
             54726      investing in, purchasing, or selling securities; or
             54727          (B) for compensation and as a part of a regular business, issues or promulgates analyses
             54728      or reports concerning securities.
             54729          (ii) "Investment adviser" includes financial planners and other persons who:
             54730          (A) as an integral component of other financially related services, provide the
             54731      investment advisory services described in Subsection (1)(o)(i) to others for compensation and as
             54732      part of a business; or
             54733          (B) hold themselves out as providing the investment advisory services described in
             54734      Subsection (1)(o)(i) to others for compensation.
             54735          (iii) "Investment adviser" does not include:
             54736          (A) an investment adviser representative;
             54737          (B) a bank, savings institution, or trust company;
             54738          (C) a lawyer, accountant, engineer, or teacher whose performance of these services is
             54739      solely incidental to the practice of [his] the profession;
             54740          (D) a broker-dealer or its agent whose performance of these services is solely incidental
             54741      to the conduct of its business as a broker-dealer and who receives no special compensation for

             54742      the services;
             54743          (E) a publisher of any bona fide newspaper, news column, news letter, news magazine,
             54744      or business or financial publication or service, of general, regular, and paid circulation, whether
             54745      communicated in hard copy form, or by electronic means, or otherwise, that does not consist of
             54746      the rendering of advice on the basis of the specific investment situation of each client;
             54747          (F) any person who is a federal covered adviser;
             54748          (G) a person described in Subsection (3); or
             54749          (H) such other persons not within the intent of this Subsection (1)(o) as the division
             54750      may by rule or order designate.
             54751          (p) (i) "Investment adviser representative" means any partner, officer, director of, or a
             54752      person occupying a similar status or performing similar functions, or other individual, except
             54753      clerical or ministerial personnel, who:
             54754          (A) (I) is employed by or associated with an investment adviser who is licensed or
             54755      required to be licensed under this chapter; or
             54756          (II) has a place of business located in this state and is employed by or associated with a
             54757      federal covered adviser; and
             54758          (B) does any of the following:
             54759          (I) makes any recommendations or otherwise renders advice regarding securities;
             54760          (II) manages accounts or portfolios of clients;
             54761          (III) determines which recommendation or advice regarding securities should be given;
             54762          (IV) solicits, offers, or negotiates for the sale of or sells investment advisory services; or
             54763          (V) supervises employees who perform any of the acts described in this Subsection
             54764      (1)(p)(i)(B).
             54765          (ii) "Investment advisor representative" does not include a person described in
             54766      Subsection (3).
             54767          (q) (i) "Issuer" means any person who issues or proposes to issue any security or has
             54768      outstanding a security that it has issued.
             54769          (ii) With respect to a preorganization certificate or subscription, "issuer" means the

             54770      promoter or the promoters of the person to be organized.
             54771          (iii) "Issuer" means the person or persons performing the acts and assuming duties of a
             54772      depositor or manager under the provisions of the trust or other agreement or instrument under
             54773      which the security is issued with respect to:
             54774          (A) interests in trusts, including collateral trust certificates, voting trust certificates, and
             54775      certificates of deposit for securities; or
             54776          (B) shares in an investment company without a board of directors.
             54777          (iv) With respect to an equipment trust certificate, a conditional sales contract, or
             54778      similar securities serving the same purpose, "issuer" means the person by whom the equipment
             54779      or property is to be used.
             54780          (v) With respect to interests in partnerships, general or limited, "issuer" means the
             54781      partnership itself and not the general partner or partners.
             54782          (vi) With respect to certificates of interest or participation in oil, gas, or mining titles or
             54783      leases or in payment out of production under the titles or leases, "issuer" means the owner of
             54784      the title or lease or right of production, whether whole or fractional, who creates fractional
             54785      interests therein for the purpose of sale.
             54786          (r) "Nonissuer" means not directly or indirectly for the benefit of the issuer.
             54787          (s) "Person" means:
             54788          (i) an individual;
             54789          (ii) a corporation;
             54790          (iii) a partnership;
             54791          (iv) a limited liability company;
             54792          (v) an association;
             54793          (vi) a joint-stock company;
             54794          (vii) a joint venture;
             54795          (viii) a trust where the interests of the beneficiaries are evidenced by a security;
             54796          (ix) an unincorporated organization;
             54797          (x) a government; or

             54798          (xi) a political subdivision of a government.
             54799          (t) "Precious metal" means the following, whether in coin, bullion, or other form:
             54800          (i) silver;
             54801          (ii) gold;
             54802          (iii) platinum;
             54803          (iv) palladium;
             54804          (v) copper; and
             54805          (vi) such other substances as the division may specify by rule.
             54806          (u) "Promoter" means any person who, acting alone or in concert with one or more
             54807      persons, takes initiative in founding or organizing the business or enterprise of a person.
             54808          (v) (i) "Sale" or "sell" includes every contract for sale of, contract to sell, or disposition
             54809      of, a security or interest in a security for value.
             54810          (ii) "Offer" or "offer to sell" includes every attempt or offer to dispose of, or solicitation
             54811      of an offer to buy, a security or interest in a security for value.
             54812          (iii) The following are examples of the definitions in Subsection (1)(v)(i) or (ii):
             54813          (A) any security given or delivered with or as a bonus on account of any purchase of a
             54814      security or any other thing, is part of the subject of the purchase, and has been offered and sold
             54815      for value;
             54816          (B) a purported gift of assessable stock is an offer or sale as is each assessment levied
             54817      on the stock;
             54818          (C) an offer or sale of a security that is convertible into, or entitles its holder to acquire
             54819      or subscribe to another security of the same or another issuer is an offer or sale of that security,
             54820      and also an offer of the other security, whether the right to convert or acquire is exercisable
             54821      immediately or in the future;
             54822          (D) any conversion or exchange of one security for another shall constitute an offer or
             54823      sale of the security received in a conversion or exchange, and the offer to buy or the purchase of
             54824      the security converted or exchanged;
             54825          (E) securities distributed as a dividend wherein the person receiving the dividend

             54826      surrenders the right, or the alternative right, to receive a cash or property dividend is an offer or
             54827      sale;
             54828          (F) a dividend of a security of another issuer is an offer or sale; or
             54829          (G) the issuance of a security under a merger, consolidation, reorganization,
             54830      recapitalization, reclassification, or acquisition of assets shall constitute the offer or sale of the
             54831      security issued as well as the offer to buy or the purchase of any security surrendered in
             54832      connection therewith, unless the sole purpose of the transaction is to change the issuer's
             54833      domicile.
             54834          (iv) The terms defined in Subsections (1)(v)(i) and (ii) do not include:
             54835          (A) a good faith gift;
             54836          (B) a transfer by death;
             54837          (C) a transfer by termination of a trust or of a beneficial interest in a trust;
             54838          (D) a security dividend not within Subsection (1)(v)(iii)(E) or (F);
             54839          (E) a securities split or reverse split; or
             54840          (F) any act incident to a judicially approved reorganization in which a security is issued
             54841      in exchange for one or more outstanding securities, claims, or property interests, or partly in
             54842      such exchange and partly for cash.
             54843          (w) "Securities Act of 1933," "Securities Exchange Act of 1934," "Public Utility
             54844      Holding Company Act of 1935," and "Investment Company Act of 1940" mean the federal
             54845      statutes of those names as amended before or after the effective date of this chapter.
             54846          (x) (i) "Security" means any:
             54847          (A) note;
             54848          (B) stock;
             54849          (C) treasury stock;
             54850          (D) bond;
             54851          (E) debenture;
             54852          (F) evidence of indebtedness;
             54853          (G) certificate of interest or participation in any profit-sharing agreement;

             54854          (H) collateral-trust certificate;
             54855          (I) preorganization certificate or subscription;
             54856          (J) transferable share;
             54857          (K) investment contract;
             54858          (L) burial certificate or burial contract;
             54859          (M) voting-trust certificate;
             54860          (N) certificate of deposit for a security;
             54861          (O) certificate of interest or participation in an oil, gas, or mining title or lease or in
             54862      payments out of production under such a title or lease;
             54863          (P) commodity contract or commodity option;
             54864          (Q) interest in a limited liability company;
             54865          (R) viatical settlement interest; or
             54866          (S) in general, any interest or instrument commonly known as a "security," or any
             54867      certificate of interest or participation in, temporary or interim certificate for, receipt for,
             54868      guarantee of, or warrant or right to subscribe to or purchase any of the foregoing.
             54869          (ii) "Security" does not include any:
             54870          (A) insurance or endowment policy or annuity contract under which an insurance
             54871      company promises to pay money in a lump sum or periodically for life or some other specified
             54872      period;
             54873          (B) interest in a limited liability company in which the limited liability company is
             54874      formed as part of an estate plan where all of the members are related by blood or marriage,
             54875      there are five or fewer members, or the person claiming this exception can prove that all of the
             54876      members are actively engaged in the management of the limited liability company; or
             54877          (C) (I) a whole long-term estate in real property;
             54878          (II) an undivided fractionalized long-term estate in real property that consists of ten or
             54879      fewer owners; or
             54880          (III) an undivided fractionalized long-term estate in real property that consists of more
             54881      than ten owners if, when the real property estate is subject to a management agreement:

             54882          (Aa) the management agreement permits a simple majority of owners of the real
             54883      property estate to not renew or to terminate the management agreement at the earlier of the end
             54884      of the management agreement's current term, or 180 days after the day on which the owners
             54885      give notice of termination to the manager;
             54886          (Bb) the management agreement prohibits, directly or indirectly, the lending of the
             54887      proceeds earned from the real property estate or the use or pledge of its assets to any person or
             54888      entity affiliated with or under common control of the manager; and
             54889          (Cc) the management agreement complies with any other requirement imposed by rule
             54890      by the Real Estate Commission under Section 61-2-26 .
             54891          (iii) For purposes of Subsection (1)(x)(ii)(B), evidence that members vote or have the
             54892      right to vote, or the right to information concerning the business and affairs of the limited
             54893      liability company, or the right to participate in management, shall not establish, without more,
             54894      that all members are actively engaged in the management of the limited liability company.
             54895          (y) "State" means any state, territory, or possession of the United States, the District of
             54896      Columbia, and Puerto Rico.
             54897          (z) (i) "Undivided fractionalized long-term estate" means an ownership interest in real
             54898      property by two or more persons that is a:
             54899          (A) tenancy in common; or
             54900          (B) any other legal form of undivided estate in real property including:
             54901          (I) a fee estate;
             54902          (II) a life estate; or
             54903          (III) other long-term estate.
             54904          (ii) "Undivided fractionalized long-term estate" does not include a joint tenancy.
             54905          (aa) (i) "Viatical settlement interest" means the entire interest or any fractional interest
             54906      in any of the following that is the subject of a viatical settlement:
             54907          (A) a life insurance policy; or
             54908          (B) the death benefit under a life insurance policy.
             54909          (ii) "Viatical settlement interest" does not include the initial purchase from the viator by

             54910      a viatical settlement provider.
             54911          (bb) "Whole long-term estate" means a person or persons through joint tenancy owns
             54912      real property through:
             54913          (i) a fee estate;
             54914          (ii) a life estate; or
             54915          (iii) other long-term estate.
             54916          (cc) "Working days" means 8 a.m. to 5 p.m., Monday through Friday, exclusive of legal
             54917      holidays listed in Section [ 63-13-2 ] 63G-1-301 .
             54918          (2) A term not defined in this section shall have the meaning as established by division
             54919      rule. The meaning of a term neither defined in this section nor by rule of the division shall be
             54920      the meaning commonly accepted in the business community.
             54921          (3) (a) This Subsection (3) applies to:
             54922          (i) the offer or sale of a real property estate exempted from the definition of security
             54923      under Subsection (1)(x)(ii)(C); or
             54924          (ii) the offer or sale of an undivided fractionalized long-term estate that is the offer of a
             54925      security.
             54926          (b) A person who, directly or indirectly receives compensation in connection with the
             54927      offer or sale as provided in this Subsection (3) of a real property estate is not an agent,
             54928      broker-dealer, investment adviser, or investor adviser representative under this chapter if that
             54929      person is licensed under Chapter 2, Division of Real Estate, as:
             54930          (i) a principal real estate broker;
             54931          (ii) an associate real estate broker; or
             54932          (iii) a real estate sales agent.
             54933          (4) The list of real property estates excluded from the definition of securities under
             54934      Subsection (1)(x)(ii)(C) is not an exclusive list of real property estates or interests that are not a
             54935      security.
             54936          Section 1070. Section 61-1-14 is amended to read:
             54937           61-1-14. Exemptions.

             54938          (1) The following securities are exempted from Sections 61-1-7 and 61-1-15 :
             54939          (a) any security, including a revenue obligation, issued or guaranteed by the United
             54940      States, any state, any political subdivision of a state, or any agency or corporate or other
             54941      instrumentality of one or more of the foregoing, or any certificate of deposit for any of the
             54942      foregoing;
             54943          (b) any security issued or guaranteed by Canada, any Canadian province, any political
             54944      subdivision of any Canadian province, any agency or corporate or other instrumentality of one
             54945      or more of the foregoing, or any other foreign government with which the United States
             54946      currently maintains diplomatic relations, if the security is recognized as a valid obligation by the
             54947      issuer or guarantor;
             54948          (c) any security issued by and representing an interest in or a debt of, or guaranteed by,
             54949      any bank organized under the laws of the United States, or any bank, savings institution, or trust
             54950      company supervised under the laws of any state;
             54951          (d) any security issued by and representing an interest in or a debt of, or guaranteed by,
             54952      any federal savings and loan association, or any building and loan or similar association
             54953      organized under the laws of any state and authorized to do business in this state;
             54954          (e) any security issued or guaranteed by any federal credit union or any credit union,
             54955      industrial loan association, or similar association organized and supervised under the laws of this
             54956      state;
             54957          (f) any security issued or guaranteed by any public utility or holding company which is a
             54958      registered holding company under the Public Utility Holding Company Act of 1935 or a
             54959      subsidiary of such a company within the meaning of that act, or any security regulated in respect
             54960      of its rates or in its issuance by a governmental authority of the United States, any state,
             54961      Canada, or any Canadian province;
             54962          (g) any security listed on the National Association of Securities Dealers Automated
             54963      Quotation National Market System, the New York Stock Exchange, the American Stock
             54964      Exchange, or on any other stock exchange or medium approved by the division, except that the
             54965      director may at any time suspend or revoke this exemption for any particular stock exchange,

             54966      medium, security, or securities under Subsection (4); any other security of the same issuer
             54967      which is of senior or substantially equal rank to any security so listed and approved by the
             54968      director, any security called for by subscription rights or warrants so listed or approved, or any
             54969      warrant or right to purchase or subscribe to any of the foregoing;
             54970          (h) (i) any security issued by any person organized and operated not for private profit
             54971      but exclusively for religious, educational, benevolent, charitable, fraternal, social, athletic, or
             54972      reformatory purposes, or as a chamber of commerce or trade or professional association; and
             54973          (ii) any security issued by a corporation organized under Title 3, Chapter 1, and any
             54974      security issued by a corporation to which the provisions of that chapter are made applicable by
             54975      compliance with the requirements of Section 3-1-21 ;
             54976          (i) a promissory note, draft, bill of exchange, or banker's acceptance that evidences an
             54977      obligation to pay cash within nine months after the date of issuance, exclusive of days of grace,
             54978      or a renewal of such an obligation that is likewise limited, or a guarantee of such an obligation
             54979      or of a renewal:
             54980          (i) issued in denominations of at least $50,000; and
             54981          (ii) either:
             54982          (A) receives a rating in one of the three highest rating categories from a nationally
             54983      recognized statistical rating organization; or
             54984          (B) the issuer satisfies requirements established by rule or order of the division;
             54985          (j) any investment contract issued in connection with an employees' stock purchase,
             54986      option, savings, pension, profit-sharing, or similar benefit plan;
             54987          (k) a security issued by an issuer registered as an open-end management investment
             54988      company or unit investment trust under Section 8 of the Investment Company Act of 1940, if:
             54989          (i) (A) the issuer is advised by an investment adviser that is a depository institution
             54990      exempt from registration under the Investment Advisers Act of 1940 or that is currently
             54991      registered as an investment adviser, and has been registered, or is affiliated with an adviser that
             54992      has been registered, as an investment adviser under the Investment Advisers Act of 1940 for at
             54993      least three years next preceding an offer or sale of a security claimed to be exempt under this

             54994      subsection; and
             54995          (B) the adviser has acted, or is affiliated with an investment adviser that has acted as
             54996      investment adviser to one or more registered investment companies or unit investment trusts for
             54997      at least three years next preceding an offer or sale of a security claimed to be exempt under this
             54998      subsection; or
             54999          (ii) the issuer has a sponsor that has at all times throughout the three years before an
             55000      offer or sale of a security claimed to be exempt under this subsection sponsored one or more
             55001      registered investment companies or unit investment trusts the aggregate total assets of which
             55002      have exceeded $100,000,000;
             55003          (iii) in addition to Subsection (i) or (ii), the division has received prior to any sale
             55004      exempted herein:
             55005          (A) a notice of intention to sell which has been executed by the issuer which sets forth
             55006      the name and address of the issuer and the title of the securities to be offered in this state; and
             55007          (B) a filing fee as determined under Section 61-1-18.4 ;
             55008          (iv) in the event any offer or sale of a security of an open-end management investment
             55009      company is to be made more than 12 months after the date on which the notice and fee under
             55010      Subsection (iii) is received by the director, another notice and payment of the applicable fee
             55011      shall be required;
             55012          (v) for the purpose of this subsection, an investment adviser is affiliated with another
             55013      investment adviser if it controls, is controlled by, or is under common control with the other
             55014      investment adviser; and
             55015          (l) any security as to which the director, by rule or order, finds that registration is not
             55016      necessary or appropriate for the protection of investors.
             55017          (2) The following transactions are exempted from Sections 61-1-7 and 61-1-15 :
             55018          (a) any isolated transaction, whether effected through a broker-dealer or not;
             55019          (b) any nonissuer transaction in an outstanding security, if as provided by rule of the
             55020      division:
             55021          (i) information about the issuer of the security as required by the division is currently

             55022      listed in a securities manual recognized by the division, and the listing is based upon such
             55023      information as required by rule of the division; or
             55024          (ii) the security has a fixed maturity or a fixed interest or dividend provision and there
             55025      has been no default during the current fiscal year or within the three preceding fiscal years, or
             55026      during the existence of the issuer and any predecessors if less than three years, in the payment of
             55027      principal, interest, or dividends on the security;
             55028          (c) any nonissuer transaction effected by or through a registered broker-dealer pursuant
             55029      to an unsolicited order or offer to buy;
             55030          (d) any transaction between the issuer or other person on whose behalf the offering is
             55031      made and an underwriter, or among underwriters;
             55032          (e) any transaction in a bond or other evidence of indebtedness secured by a real or
             55033      chattel mortgage or deed of trust, or by an agreement for the sale of real estate or chattels, if the
             55034      entire mortgage, deed of trust, or agreement, together with all the bonds or other evidences of
             55035      indebtedness secured thereby, is offered and sold as a unit;
             55036          (f) any transaction by an executor, administrator, sheriff, marshal, receiver, trustee in
             55037      bankruptcy, guardian, or conservator;
             55038          (g) any transaction executed by a bona fide pledgee without any purpose of evading this
             55039      chapter;
             55040          (h) any offer or sale to a bank, savings institution, trust company, insurance company,
             55041      investment company as defined in the Investment Company Act of 1940, pension or
             55042      profit-sharing trust, or other financial institution or institutional investor, or to a broker-dealer,
             55043      whether the purchaser is acting for itself or in some fiduciary capacity;
             55044          (i) any offer or sale of a preorganization certificate or subscription if:
             55045          (i) no commission or other remuneration is paid or given directly or indirectly for
             55046      soliciting any prospective subscriber;
             55047          (ii) the number of subscribers acquiring any legal or beneficial interest therein does not
             55048      exceed ten; and
             55049          (iii) there is no general advertising or solicitation in connection with the offer or sale;

             55050          (j) any transaction pursuant to an offer by an issuer of its securities to its existing
             55051      securities holders, if:
             55052          (i) no commission or other remuneration, other than a standby commission is paid or
             55053      given directly or indirectly for soliciting any security holders in this state and the transaction
             55054      constitutes either:
             55055          (A) the conversion of convertible securities;
             55056          (B) the exercise of nontransferable rights or warrants;
             55057          (C) the exercise of transferable rights or warrants if the rights or warrants are
             55058      exercisable not more than 90 days after their issuance; or
             55059          (D) the purchase of securities under a preemptive right; and
             55060          (ii) the exemption created by Subsection (2)(j) is not available for an offer or sale of
             55061      securities to existing securities holders who have acquired their securities from the issuer in a
             55062      transaction in violation of Section 61-1-7 ;
             55063          (k) any offer, but not a sale, of a security for which registration statements have been
             55064      filed under both this chapter and the Securities Act of 1933 if no stop order or refusal order is in
             55065      effect and no public proceeding or examination looking toward such an order is pending;
             55066          (l) a distribution of securities as a dividend if the person distributing the dividend is the
             55067      issuer of the securities distributed;
             55068          (m) any nonissuer transaction effected by or through a registered broker-dealer where
             55069      the broker-dealer or issuer files with the division, and the broker-dealer maintains in [his] the
             55070      broker-dealer's records, and makes reasonably available upon request to any person expressing
             55071      an interest in a proposed transaction in the security with the broker-dealer information
             55072      prescribed by the division under its rules;
             55073          (n) any transactions not involving a public offering;
             55074          (o) any offer or sale of "condominium units" or "time period units" as those terms are
             55075      defined in the Condominium Ownership Act, whether or not to be sold by installment contract,
             55076      if the provisions of the Condominium Ownership Act, or if the units are located in another state,
             55077      the condominium act of that state, the Utah Uniform Land Sales Practices Act, the Utah

             55078      Timeshare and Camp Resort Act, and the Utah Uniform Consumer Credit Code are complied
             55079      with;
             55080          (p) any transaction or series of transactions involving a merger, consolidation,
             55081      reorganization, recapitalization, reclassification, or sale of assets, if the consideration for which,
             55082      in whole or in part, is the issuance of securities of a person or persons, and if:
             55083          (i) the transaction or series of transactions is incident to a vote of the securities holders
             55084      of each person involved or by written consent or resolution of some or all of the securities
             55085      holders of each person involved;
             55086          (ii) the vote, consent, or resolution is given under a provision in:
             55087          (A) the applicable corporate statute or other controlling statute;
             55088          (B) the controlling articles of incorporation, trust indenture, deed of trust, or
             55089      partnership agreement; or
             55090          (C) the controlling agreement among securities holders;
             55091          (iii) (A) one person involved in the transaction is required to file proxy or informational
             55092      materials under Section 14 (a) or (c) of the Securities Exchange Act of 1934 or Section 20 of
             55093      the Investment Company Act of 1940 and has so filed;
             55094          (B) one person involved in the transaction is an insurance company which is exempt
             55095      from filing under Section 12(g)(2)(G) of the Securities Exchange Act of 1934, and has filed
             55096      proxy or informational materials with the appropriate regulatory agency or official of its
             55097      domiciliary state; or
             55098          (C) all persons involved in the transaction are exempt from filing under Section
             55099      12(g)(1) of the Securities Exchange Act of 1934, and file with the division such proxy or
             55100      informational material as the division requires by rule;
             55101          (iv) the proxy or informational material is filed with the division and distributed to all
             55102      securities holders entitled to vote in the transaction or series of transactions at least ten working
             55103      days prior to any necessary vote by the securities holders or action on any necessary consent or
             55104      resolution; and
             55105          (v) the division does not, by order, deny or revoke the exemption within ten working

             55106      days after filing of the proxy or informational materials;
             55107          (q) any transaction pursuant to an offer to sell securities of an issuer if:
             55108          (i) the transaction is part of an issue in which there are not more than 15 purchasers in
             55109      this state, other than those designated in Subsection (2)(h), during any 12 consecutive months;
             55110          (ii) no general solicitation or general advertising is used in connection with the offer to
             55111      sell or sale of the securities;
             55112          (iii) no commission or other similar compensation is given, directly or indirectly, to a
             55113      person other than a broker-dealer or agent licensed under this chapter, for soliciting a
             55114      prospective purchaser in this state;
             55115          (iv) the seller reasonably believes that all the purchasers in this state are purchasing for
             55116      investment;
             55117          (v) the transaction is part of an aggregate offering that does not exceed $500,000, or a
             55118      greater amount as prescribed by a division rule, during any 12 consecutive months; and
             55119          (vi) the director, as to a security or transaction, or a type of security or transaction, may
             55120      withdraw or further condition this exemption or waive one or more of the conditions in
             55121      Subsection (q);
             55122          (r) any transaction involving a commodity contract or commodity option; and
             55123          (s) any transaction as to which the division finds that registration is not necessary or
             55124      appropriate for the protection of investors.
             55125          (3) Every person filing an exemption notice or application shall pay a filing fee as
             55126      determined under Section 61-1-18.4 .
             55127          (4) Upon approval by a majority of the Securities Advisory Board, the director, by
             55128      means of an adjudicative proceeding conducted in accordance with [Title 63, Chapter 46b] Title
             55129      63G, Chapter 4, Administrative Procedures Act, may deny or revoke any exemption specified in
             55130      Subsection (1)(g), (h), or (j) or in Subsection (2) with respect to:
             55131          (a) a specific security, transaction, or series of transactions; or
             55132          (b) any person or issuer, any affiliate or successor to a person or issuer, or any entity
             55133      subsequently organized by or on behalf of a person or issuer generally and may impose a fine if

             55134      [he] the person finds that the order is in the public interest and that:
             55135          (i) the application for or notice of exemption filed with the division is incomplete in any
             55136      material respect or contains any statement which was, in the light of the circumstances under
             55137      which it was made, false or misleading with respect to any material fact;
             55138          (ii) any provision of this chapter, or any rule, order, or condition lawfully imposed
             55139      under this chapter has been willfully violated in connection with the offering or exemption by:
             55140          (A) the person filing any application for or notice of exemption;
             55141          (B) the issuer, any partner, officer, or director of the issuer, any person occupying a
             55142      similar status or performing similar functions, or any person directly or indirectly controlling or
             55143      controlled by the issuer, but only if the person filing the application for or notice of exemption is
             55144      directly or indirectly controlled by or acting for the issuer; or
             55145          (C) any underwriter;
             55146          (iii) the security for which the exemption is sought is the subject of an administrative
             55147      stop order or similar order, or a permanent or temporary injunction or any court of competent
             55148      jurisdiction entered under any other federal or state act applicable to the offering or exemption;
             55149      the division may not institute a proceeding against an effective exemption under this subsection
             55150      more than one year from the date of the order or injunction relied on, and it may not enter an
             55151      order under this subsection on the basis of an order or injunction entered under any other state
             55152      act unless that order or injunction was based on facts that would currently constitute a ground
             55153      for a stop order under this section;
             55154          (iv) the issuer's enterprise or method of business includes or would include activities
             55155      that are illegal where performed;
             55156          (v) the offering has worked, has tended to work, or would operate to work a fraud
             55157      upon purchasers;
             55158          (vi) the offering has been or was made with unreasonable amounts of underwriters' and
             55159      sellers' discounts, commissions, or other compensation, or promoters' profits or participation, or
             55160      unreasonable amounts or kinds of options;
             55161          (vii) an exemption is sought for a security or transaction which is not eligible for the

             55162      exemption; or
             55163          (viii) the proper filing fee, if required, has not been paid.
             55164          (5) (a) No order under Subsection (4) may operate retroactively.
             55165          (b) No person may be considered to have violated Section 61-1-7 or 61-1-15 by reason
             55166      of any offer or sale effected after the entry of an order under this subsection if [he] the person
             55167      sustains the burden of proof that [he] the person did not know, and in the exercise of reasonable
             55168      care could not have known, of the order.
             55169          Section 1071. Section 61-1-15.5 is amended to read:
             55170           61-1-15.5. Federal covered securities.
             55171          (1) The division by rule or order may require the filing of any of the following
             55172      documents with respect to a covered security under Section 18(b)(2) of the Securities Act of
             55173      1933:
             55174          (a) prior to the initial offer of federal covered security in this state, a notice form as
             55175      prescribed by the division or all documents that are part of a federal registration statement filed
             55176      with the U.S. Securities and Exchange Commission under the Securities Act of 1933, together
             55177      with a consent to service of process signed by the issuer and a filing fee as determined under
             55178      Section 61-1-18.4 ;
             55179          (b) after the initial offer of such federal covered security in this state, all documents that
             55180      are part of an amendment to a federal registration statement filed with the U.S. Securities and
             55181      Exchange Commission under the Securities Act of 1933, which shall be filed concurrently with
             55182      the division;
             55183          (c) a report of the value of federal covered securities offered or sold in this state,
             55184      together with a filing fee as determined under Section 61-1-18.4 ; and
             55185          (d) a notice filing under this section shall be effective for one year and shall be renewed
             55186      annually in order to continue to offer or sell the federal covered securities for which the notice
             55187      was filed.
             55188          (2) With respect to any security that is a covered security under Section 18(b)(4)(D) of
             55189      the Securities Act of 1933, the division by rule or order may require the issuer to file a notice on

             55190      SEC Form D and a consent to service of process signed by the issuer no later than 15 days after
             55191      the first sale of such covered security in this state, together with a filing fee as determined under
             55192      Section 61-1-18.4 .
             55193          (3) The division by rule or order may require the filing of any document filed with the
             55194      U.S. Securities and Exchange Commission under the Securities Act of 1933, with respect to a
             55195      covered security under Section 18(b)(3) or (4) of the Securities Act of 1933, together with a
             55196      filing fee as determined under Section 61-1-18.4 .
             55197          (4) Upon approval by a majority of the Securities Advisory Board, the director, by
             55198      means of adjudicative proceedings conducted in accordance with [Title 63, Chapter 46b] Title
             55199      63G, Chapter 4, Administrative Procedures Act, may issue a stop order suspending the offer
             55200      and sale of any federal covered security, except a covered security under Section 18(b)(1) of the
             55201      Securities Act of 1933, if the director finds that the order is in the public interest and there is a
             55202      failure to comply with any condition established under this section.
             55203          (5) The division by rule or order may waive any or all of the provisions of this section.
             55204          Section 1072. Section 61-1-18.4 is amended to read:
             55205           61-1-18.4. Fees collected by division.
             55206          The Division of Securities shall establish, charge, and collect fees pursuant to Section
             55207      [ 63-38-3.2 ] 63J-1-303 , except when it can be demonstrated that the fee amount should be based
             55208      on factors other than cost, for the following:
             55209          (1) the fair and reasonable cost of any examination, audit, or investigation authorized or
             55210      required by this chapter or other state law;
             55211          (2) certificate of serving and mailing process served upon the division in any action or
             55212      proceeding commenced or prosecuted in this state against any person who has appointed the
             55213      division its agent as provided in Subsection 61-1-26 (7); and
             55214          (3) copies and authentication of all papers, publications, data, and other records
             55215      available to the public or issued under the division's authority.
             55216          Section 1073. Section 61-1-18.6 is amended to read:
             55217           61-1-18.6. Procedures -- Adjudicative proceedings.

             55218          The Division of Securities shall comply with the procedures and requirements of [Title
             55219      63, Chapter 46b,] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
             55220      proceedings.
             55221          Section 1074. Section 61-1-18.7 is amended to read:
             55222           61-1-18.7. Funding of securities investor education and training.
             55223          (1) There is created a restricted special revenue fund known as the "Securities Investor
             55224      Education and Training Fund" to provide revenue for educating the public and the securities
             55225      industry as provided in this section.
             55226          (2) All money received by the state by reason of civil penalties ordered and
             55227      administrative fines collected pursuant to this chapter shall be deposited in the Securities
             55228      Investor Education and Training Fund, and subject to the requirements of Title 51, Chapter 5,
             55229      Funds Consolidation Act.
             55230          (3) The special revenue fund may include any fines collected by the division after July 1,
             55231      1989, pursuant to voluntary settlements or administrative orders.
             55232          (4) (a) The fund shall earn interest.
             55233          (b) All interest earned on fund monies shall be deposited into the fund.
             55234          (5) Notwithstanding [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures
             55235      Act, the director may use special revenue fund monies, upon concurrence of the Securities
             55236      Advisory Board and the executive director of the Department of Commerce, in a manner
             55237      consistent with the duties of the division under this chapter and only for any or all of the
             55238      following and the expense of providing them:
             55239          (a) education and training of Utah residents in matters concerning securities laws and
             55240      investment decisions, by publications or presentations;
             55241          (b) education of registrants and licensees under this chapter, by:
             55242          (i) publication of this chapter and rules and policy statements and opinion letters of the
             55243      division; and
             55244          (ii) sponsorship of seminars or meetings to educate registrants and licensees as to the
             55245      requirements of this chapter; and

             55246          (c) investigation and litigation.
             55247          (6) If the balance in the fund exceeds $100,000 at the close of any fiscal year, the excess
             55248      shall be transferred to the General Fund.
             55249          Section 1075. Section 61-1-23 is amended to read:
             55250           61-1-23. Review of orders.
             55251          Any person aggrieved by a final order of the director determining all of the issues of an
             55252      adjudicative proceeding may obtain review of the order by the executive director in accordance
             55253      with [Title 63, Chapter 46b, the] Title 63G, Chapter 4, Administrative Procedures Act.
             55254          Section 1076. Section 61-2-5.1 is amended to read:
             55255           61-2-5.1. Procedures -- Adjudicative proceedings.
             55256          The Division of Real Estate shall comply with the procedures and requirements of [Title
             55257      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
             55258      proceedings.
             55259          Section 1077. Section 61-2-6 is amended to read:
             55260           61-2-6. Licensing procedures and requirements.
             55261          (1) (a) Except as provided in Subsection (5), the commission shall determine the
             55262      qualifications and requirements of applicants for:
             55263          (i) a principal broker license;
             55264          (ii) an associate broker license; or
             55265          (iii) a sales agent license.
             55266          (b) The division, with the concurrence of the commission, shall require and pass upon
             55267      proof necessary to determine the honesty, integrity, truthfulness, reputation, and competency of
             55268      each applicant for an initial license or for renewal of an existing license.
             55269          (c) (i) The division, with the concurrence of the commission, shall require an applicant
             55270      for:
             55271          (A) a sales agent license to complete an approved educational program not to exceed
             55272      90 hours; and
             55273          (B) an associate broker or principal broker license to complete an approved educational

             55274      program not to exceed 120 hours.
             55275          (ii) The hours required by this section mean 50 minutes of instruction in each 60
             55276      minutes.
             55277          (iii) The maximum number of program hours available to an individual is ten hours per
             55278      day.
             55279          (d) The division, with the concurrence of the commission, shall require the applicant to
             55280      pass an examination approved by the commission covering:
             55281          (i) the fundamentals of:
             55282          (A) the English language;
             55283          (B) arithmetic;
             55284          (C) bookkeeping; and
             55285          (D) real estate principles and practices;
             55286          (ii) the provisions of this chapter;
             55287          (iii) the rules established by the commission; and
             55288          (iv) any other aspect of Utah real estate license law considered appropriate.
             55289          (e) (i) Three years' full-time experience as a real estate sales agent or its equivalent is
             55290      required before any applicant may apply for, and secure a principal broker or associate broker
             55291      license in this state.
             55292          (ii) The commission shall establish by rule, made in accordance with [Title 63, Chapter
             55293      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the criteria by which the
             55294      commission will accept experience or special education in similar fields of business in lieu of the
             55295      three years' experience.
             55296          (2) (a) The division, with the concurrence of the commission, may require an applicant
             55297      to furnish a sworn statement setting forth evidence satisfactory to the division of the applicant's
             55298      reputation and competency as set forth by rule.
             55299          (b) The division shall require an applicant to provide the applicant's Social Security
             55300      number, which is a private record under Subsection [ 63-2-302 ] 63G-2-302 (1)(h).
             55301          (3) (a) A nonresident principal broker may be licensed in this state by conforming to all

             55302      the provisions of this chapter except that of residency.
             55303          (b) A nonresident associate broker or sales agent may become licensed in this state by:
             55304          (i) conforming to all the provisions of this chapter except that of residency; and
             55305          (ii) being employed or engaged as an independent contractor by or on behalf of a
             55306      nonresident or resident principal broker who is licensed in this state.
             55307          (4) (a) Except as provided in Subsection 61-2-9 (1)(e)(iv), the application to be
             55308      relicensed of an applicant who has had a real estate license revoked shall be treated as an
             55309      original application.
             55310          (b) In the case of an applicant for a new license as a principal broker or associate
             55311      broker, the applicant is not entitled to credit for experience gained prior to the revocation of a
             55312      real estate license.
             55313          (5) (a) Notwithstanding Subsection (1), the commission may delegate to the division
             55314      the authority to:
             55315          (i) review a class or category of applications for initial or renewed licenses;
             55316          (ii) determine whether an applicant meets the licensing criteria in Subsection (1); and
             55317          (iii) approve or deny a license application without concurrence by the commission.
             55318          (b) (i) If the commission delegates to the division the authority to approve or deny an
             55319      application without concurrence by the commission and the division denies an application for
             55320      licensure, the applicant who is denied licensure may petition the commission for review of the
             55321      denial of licensure.
             55322          (ii) An applicant who is denied licensure pursuant to this Subsection (5) may seek
             55323      agency review by the executive director only after the commission has reviewed the division's
             55324      denial of the applicant's application.
             55325          Section 1078. Section 61-2-7.1 is amended to read:
             55326           61-2-7.1. Change of information -- Failure to notify -- Notification to an
             55327      applicant, licensee, or certificate holder.
             55328          (1) An applicant, licensee, or certificate holder shall send the division a signed statement
             55329      in the form required by the division notifying the division within ten business days of any change

             55330      of:
             55331          (a) principal broker;
             55332          (b) principal business location;
             55333          (c) mailing address;
             55334          (d) home street address;
             55335          (e) an individual's name; or
             55336          (f) business name.
             55337          (2) The division may charge a fee established in accordance with Section [ 63-38-3.2 ]
             55338      63J-1-303 for processing any notification of change submitted by an applicant, licensee, or
             55339      certificate holder.
             55340          (3) (a) When providing the division a business location or home street address, a
             55341      physical location or street address must be provided.
             55342          (b) When providing a mailing address, an applicant, licensee, or certificate holder may
             55343      provide a post office box or other mail drop location.
             55344          (4) Failure to notify the division of a change described in Subsection (1) is separate
             55345      grounds for disciplinary action against the applicant, licensee, or certificate holder.
             55346          (5) An applicant, licensee, or certificate holder is considered to have received any
             55347      notification that has been sent to the last address furnished to the division by the applicant,
             55348      licensee, or certificate holder.
             55349          Section 1079. Section 61-2-9 is amended to read:
             55350           61-2-9. Examination and license fees -- Criminal background check -- Renewal of
             55351      licenses -- Education requirements -- Activation of inactive licenses -- Recertification --
             55352      Licenses of firm, partnership, or association -- Miscellaneous fees.
             55353          (1) (a) Upon filing an application for a principal broker, associate broker, or sales agent
             55354      license examination, the applicant shall pay a nonrefundable fee as determined by the
             55355      commission with the concurrence of the division under Section [ 63-38-3.2 ] 63J-1-303 for
             55356      admission to the examination.
             55357          (b) A principal broker, associate broker, or sales agent applicant shall pay a

             55358      nonrefundable fee as determined by the commission with the concurrence of the division under
             55359      Section [ 63-38-3.2 ] 63J-1-303 for issuance of an initial license or license renewal.
             55360          (c) Each license issued under this Subsection (1) shall be issued for a period of not less
             55361      than two years as determined by the division with the concurrence of the commission.
             55362          (d) (i) Any of the following applicants shall comply with this Subsection (1)(d):
             55363          (A) a new sales agent applicant; or
             55364          (B) an out-of-state broker applicant.
             55365          (ii) An applicant described in this Subsection (1)(d) shall:
             55366          (A) submit fingerprint cards in a form acceptable to the division at the time the license
             55367      application is filed; and
             55368          (B) consent to a criminal background check by the Utah Bureau of Criminal
             55369      Identification and the Federal Bureau of Investigation regarding the application.
             55370          (iii) The division shall request the Department of Public Safety to complete a Federal
             55371      Bureau of Investigation criminal background check for each applicant described in this
             55372      Subsection (1)(d) through the national criminal history system or any successor system.
             55373          (iv) The cost of the criminal background check and the fingerprinting shall be borne by
             55374      the applicant.
             55375          (v) Funds paid to the division by an applicant for the cost of the criminal background
             55376      check shall be nonlapsing.
             55377          (e) (i) Any license issued under Subsection (1)(d) shall be conditional, pending
             55378      completion of the criminal background check. If the criminal background check discloses the
             55379      applicant has failed to accurately disclose a criminal history, the license shall be immediately and
             55380      automatically revoked.
             55381          (ii) Any person whose conditional license has been revoked under Subsection (1)(e)(i)
             55382      shall be entitled to a post-revocation hearing to challenge the revocation. The hearing shall be
             55383      conducted in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             55384      Procedures Act.
             55385          (iii) The division director shall designate one of the following to act as the presiding

             55386      officer in a postrevocation hearing described in this Subsection (1)(e):
             55387          (A) the division; or
             55388          (B) the division with the concurrence of the commission.
             55389          (iv) The decision on whether relief from the revocation of a license under this
             55390      Subsection (1)(e) will be granted shall be made by the presiding officer.
             55391          (v) Relief from a revocation under this Subsection (1)(e) may be granted only if:
             55392          (A) the criminal history upon which the division based the revocation:
             55393          (I) did not occur; or
             55394          (II) is the criminal history of another person;
             55395          (B) (I) the revocation is based on a failure to accurately disclose a criminal history; and
             55396          (II) the applicant had a reasonable good faith belief at the time of application that there
             55397      was no criminal history to be disclosed; or
             55398          (C) the division failed to follow the prescribed procedure for the revocation.
             55399          (vi) If a license is revoked or a revocation under this Subsection (1)(e) is upheld after a
             55400      post-revocation hearing, the person may not apply for a new license until at least 12 months
             55401      after the day on which the license is revoked.
             55402          (2) (a) (i) A license expires if it is not renewed on or before its expiration date.
             55403          (ii) As a condition of renewal, each active licensee shall demonstrate competence:
             55404          (A) by viewing an approved real estate education video program and completing a
             55405      supplementary workbook; or
             55406          (B) by completing 12 hours of professional education approved by the division and
             55407      commission within each two-year renewal period.
             55408          (iii) The division with the concurrence of the commission shall certify education which
             55409      may include:
             55410          (A) state conventions;
             55411          (B) home study courses;
             55412          (C) video courses; and
             55413          (D) closed circuit television courses.

             55414          (iv) The commission with concurrence of the division may exempt a licensee from the
             55415      education requirement of this Subsection (2)(a) for a period not to exceed four years:
             55416          (A) upon a finding of reasonable cause, including military service; and
             55417          (B) under conditions established by rule made in accordance with [Title 63, Chapter
             55418      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             55419          (b) For a period of 30 days after the expiration date of a license, the license may be
             55420      reinstated upon:
             55421          (i) payment of a renewal fee and a late fee determined by the commission with the
             55422      concurrence of the division under Section [ 63-38-3.2 ] 63J-1-303 ; and
             55423          (ii) providing proof acceptable to the division and the commission of the licensee having
             55424      completed the hours of education or demonstrated competence as required under Subsection
             55425      (2)(a).
             55426          (c) After the 30-day period described in Subsection (2)(b), and until six months after
             55427      the expiration date, the license may be reinstated by:
             55428          (i) paying a renewal fee and a late fee determined by the commission with the
             55429      concurrence of the division under Section [ 63-38-3.2 ] 63J-1-303 ;
             55430          (ii) providing to the division proof of satisfactory completion of 12 hours of continuing
             55431      education:
             55432          (A) in addition to the requirements for a timely renewal; and
             55433          (B) on a subject determined by the commission by rule made in accordance with [Title
             55434      63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
             55435          (iii) providing proof acceptable to the division and the commission of the licensee
             55436      having:
             55437          (A) completed the hours of education; or
             55438          (B) demonstrated competence as required under Subsection (2)(a).
             55439          (d) A person who does not renew that person's license within six months after the
             55440      expiration date shall be relicensed as prescribed for an original application.
             55441          (3) (a) As a condition for the activation of an inactive license that was in an inactive

             55442      status at the time of the licensee's most recent renewal, the licensee shall supply the division
             55443      with proof of:
             55444          (i) successful completion of the respective sales agent or broker licensing examination
             55445      within six months prior to applying to activate the license; or
             55446          (ii) the successful completion of 12 hours of continuing education that the licensee
             55447      would have been required to complete under Subsection (2)(a) if the license had been on active
             55448      status at the time of the licensee's most recent renewal.
             55449          (b) The commission may, in accordance with [Title 63, Chapter 46a] Title 63G, Chapter
             55450      3, Utah Administrative Rulemaking Act, establish by rule:
             55451          (i) the nature or type of continuing education required for reactivation of a license; and
             55452          (ii) how long prior to reactivation the continuing education must have been completed.
             55453          (4) (a) A principal broker license may be granted to a corporation, partnership, or
             55454      association if the corporation, partnership, or association has affiliated with it an individual who:
             55455          (i) has qualified as a principal broker under the terms of this chapter; and
             55456          (ii) serves in the capacity of a principal broker.
             55457          (b) Application for the license described in Subsection (4)(a) shall be made in
             55458      accordance with the rules adopted by the division with the concurrence of the commission.
             55459          (5) The division may charge and collect reasonable fees determined by the commission
             55460      with the concurrence of the division under Section [ 63-38-3.2 ] 63J-1-303 to cover the costs for:
             55461          (a) issuance of a new or duplicate license;
             55462          (b) license histories or certifications;
             55463          (c) certified copies of official documents, orders, and other papers and transcripts;
             55464          (d) certifying real estate schools, courses, and instructors, the fees for which shall,
             55465      notwithstanding Section 13-1-2 , be deposited in the Real Estate Education, Research, and
             55466      Recovery Fund; and
             55467          (e) other duties required by this chapter.
             55468          (6) If a licensee submits or causes to be submitted a check, draft, or other negotiable
             55469      instrument to the division for payment of fees, and the check, draft, or other negotiable

             55470      instrument is dishonored, the transaction for which the payment was submitted is void and will
             55471      be reversed by the division if payment of the applicable fee is not received in full.
             55472          (7) (a) The fees under this chapter and the additional license fee for the Real Estate
             55473      Education, Research, and Recovery Fund under Section 61-2a-4 are in lieu of all other license
             55474      fees or assessments that might otherwise be imposed or charged by the state or any of its
             55475      political subdivisions, upon, or as a condition of, the privilege of conducting the business
             55476      regulated by this chapter, except that a political subdivision within the state may charge a
             55477      business license fee on a principal broker if the principal broker maintains a place of business
             55478      within the jurisdiction of the political subdivision.
             55479          (b) Unless otherwise exempt, each licensee under this chapter is subject to all taxes
             55480      imposed under Title 59, Revenue and Taxation.
             55481          Section 1080. Section 61-2-10 is amended to read:
             55482           61-2-10. Restriction on commissions -- Affiliation with more than one broker --
             55483      Specialized licenses -- Designation of agents or brokers.
             55484          (1) It is unlawful for any associate broker or sales agent to accept valuable
             55485      consideration for the performance of any of the acts specified in this chapter from any person
             55486      except the principal broker with whom [he] the associate broker or sales agent is affiliated and
             55487      licensed.
             55488          (2) An inactive associate broker or sales agent is not authorized to conduct real estate
             55489      transactions until the inactive associate broker or sales agent becomes affiliated with a licensed
             55490      principal broker and submits the required documentation to the division. An inactive principal
             55491      broker is not authorized to conduct real estate transactions until the principal broker's license is
             55492      activated with the division.
             55493          (3) No sales agent or associate broker may affiliate with more than one principal broker
             55494      at the same time.
             55495          (4) (a) Except as provided by rule, a principal broker may not be responsible for more
             55496      than one real estate brokerage at the same time.
             55497          (b) In addition to issuing principal broker, associate broker, and sales agent licenses

             55498      authorizing the performance of all of the acts set forth in Subsection 61-2-2 (12), the division
             55499      may issue specialized sales licenses and specialized property management licenses with the
             55500      scope of practice limited to the specialty. An individual may hold a specialized license in
             55501      addition to a license to act as a principal broker, an associate broker, or a sales agent. The
             55502      commission may adopt rules pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             55503      Administrative Procedures Act, for the administration of this provision, including prelicensing
             55504      and postlicensing education requirements, examination requirements, affiliation with real estate
             55505      brokerages or property management companies, and other licensing procedures.
             55506          (c) An individual may not be a principal broker of a brokerage and a sales agent or
             55507      associate broker for a different brokerage at the same time.
             55508          (5) Any owner, purchaser, lessor, or lessee who engages the services of a principal
             55509      broker may designate which sales agents or associate brokers affiliated with that principal
             55510      broker will also represent that owner, purchaser, lessor, or lessee in the purchase, sale, lease, or
             55511      exchange of real estate, or in exercising an option relating to real estate.
             55512          Section 1081. Section 61-2-12 is amended to read:
             55513           61-2-12. Disciplinary action -- Judicial review.
             55514          (1) (a) On the basis of a violation of this chapter, the commission with the concurrence
             55515      of the director, may issue an order:
             55516          (i) imposing an educational requirement;
             55517          (ii) imposing a civil penalty not to exceed the greater of:
             55518          (A) $2,500 for each violation; or
             55519          (B) the amount of any gain or economic benefit derived from each violation;
             55520          (iii) taking any of the following actions related to a license or certificate:
             55521          (A) revoking;
             55522          (B) suspending;
             55523          (C) placing on probation;
             55524          (D) denying the renewal, reinstatement, or application for an original license or
             55525      certificate; or

             55526          (E) in the case of denial or revocation of a license or certificate, setting a waiting period
             55527      for an applicant to apply for a license or certificate under this title;
             55528          (iv) issuing a cease and desist order; or
             55529          (v) doing any combination of Subsections (1)(a)(i) through (iv).
             55530          (b) If the licensee is an active sales agent or active associate broker, the division shall
             55531      inform the principal broker with whom the licensee is affiliated of the charge and of the time and
             55532      place of any hearing.
             55533          (2) (a) Any applicant, certificate holder, licensee, or person aggrieved, including the
             55534      complainant, may obtain agency review by the executive director and judicial review of any
             55535      adverse ruling, order, or decision of the division.
             55536          (b) If the applicant, certificate holder, or licensee prevails in the appeal and the court
             55537      finds that the state action was undertaken without substantial justification, the court may award
             55538      reasonable litigation expenses to the applicant, certificate holder, or licensee as provided under
             55539      Title 78, Chapter 27a, Small Business Equal Access to Justice Act.
             55540          (c) (i) An order, ruling, or decision of the division shall take effect and become
             55541      operative 30 days after the service of the order, ruling, or decision unless otherwise provided in
             55542      the order.
             55543          (ii) If an appeal is taken by a licensee, the division may stay enforcement of an order,
             55544      ruling, or decision in accordance with Section [ 63-46b-18 ] 63G-4-405 .
             55545          (iii) The appeal shall be governed by the Utah Rules of Appellate Procedure.
             55546          (3) The commission and the director shall comply with the procedures and requirements
             55547      of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in all
             55548      adjudicative proceedings.
             55549          Section 1082. Section 61-2-21 is amended to read:
             55550           61-2-21. Remedies and action for violations.
             55551          (1) (a) The director shall issue and serve upon a person an order directing that person
             55552      to cease and desist from an act if:
             55553          (i) the director has reason to believe that the person has been engaging, is about to

             55554      engage, or is engaging in the act constituting a violation of this chapter; and
             55555          (ii) it appears to the director that it would be in the public interest to stop the act.
             55556          (b) Within ten days after receiving the order, the person upon whom the order is served
             55557      may request an adjudicative proceeding.
             55558          (c) Pending the hearing, any cease and desist order shall remain in effect.
             55559          (d) If a request for a hearing is made, the division shall follow the procedures and
             55560      requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             55561          (2) (a) After the hearing, if the commission and the director agree that the act of the
             55562      person violates this chapter, the director:
             55563          (i) shall issue an order making the order issued under Subsection (1) permanent; and
             55564          (ii) may impose a civil penalty not to exceed the greater of:
             55565          (A) $2,500 for each violation; or
             55566          (B) the amount of any gain or economic benefit derived from each violation.
             55567          (b) The director shall file suit in the name of the Department of Commerce and the
             55568      Division of Real Estate, in the district court in the county in which an act described in
             55569      Subsection (1) occurred or where the person resides or carries on business, to enjoin and
             55570      restrain the person from violating this chapter if:
             55571          (i) (A) no hearing is requested; and
             55572          (B) the person fails to cease the act described in Subsection (1); or
             55573          (ii) after discontinuing the act described in Subsection (1), the person again commences
             55574      the act.
             55575          (c) The district courts of this state shall have jurisdiction of an action brought under this
             55576      section.
             55577          (d) Upon a proper showing in an action brought under this section related to an
             55578      undivided fractionalized long-term estate, the court may:
             55579          (i) issue a permanent or temporary, prohibitory or mandatory injunction;
             55580          (ii) issue a restraining order or writ of mandamus;
             55581          (iii) enter a declaratory judgment;

             55582          (iv) appoint a receiver or conservator for the defendant or the defendant's assets;
             55583          (v) order disgorgement;
             55584          (vi) order rescission;
             55585          (vii) impose a civil penalty not to exceed the greater of:
             55586          (A) $2,500 for each violation; or
             55587          (B) the amount of any gain or economic benefit derived from each violation; and
             55588          (viii) enter any other relief the court considers just.
             55589          (e) The court may not require the division to post a bond in an action brought under
             55590      this Subsection (2).
             55591          (3) The remedies and action provided in this section may not interfere with, or prevent
             55592      the prosecution of, any other remedies or actions including criminal proceedings.
             55593          Section 1083. Section 61-2-26 is amended to read:
             55594           61-2-26. Rulemaking required for offer or sale of an undivided fractionalized
             55595      long-term estate -- Disclosures -- Management agreement.
             55596          (1) (a) A licensee or certificate holder under this chapter who sells or offers to sell an
             55597      undivided fractionalized long-term estate shall comply with the disclosure requirements imposed
             55598      by rules made by the commission under this section.
             55599          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             55600      Administrative Rulemaking Act, the commission shall make rules as to the timing, form, and
             55601      substance of disclosures required to be made by a licensee or certificate holder under this
             55602      section.
             55603          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             55604      Administrative Rulemaking Act, the commission shall make rules imposing requirements for a
             55605      management agreement related to an undivided fractionalized long-term estate that makes the
             55606      offer or sale of the undivided fractionalized long-term estate treated as a real estate transaction
             55607      and not treated as an offer or sale of a security under Chapter 1, Utah Uniform Securities Act.
             55608          (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             55609      Administrative Rulemaking Act, the commission shall make rules establishing:

             55610          (a) the disclosures required in the sale or offer of an undivided fractionalized long-term
             55611      estate that is subject to a master lease;
             55612          (b) requirements for the management of a master lease on an undivided fractionalized
             55613      long-term estate; and
             55614          (c) the requirements on the structure of a master lease on an undivided fractionalized
             55615      long-term estate.
             55616          Section 1084. Section 61-2-28 is amended to read:
             55617           61-2-28. Utah Housing Opportunity Restricted Account.
             55618          (1) There is created in the General Fund a restricted account known as the "Utah
             55619      Housing Opportunity Restricted Account."
             55620          (2) The account shall be funded by:
             55621          (a) contributions deposited into the Utah Housing Opportunity Restricted Account in
             55622      accordance with Section 41-1a-422 ;
             55623          (b) private contributions;
             55624          (c) donations or grants from public or private entities; and
             55625          (d) interest and earnings on fund monies.
             55626          (3) Funds in the account are nonlapsing.
             55627          (4) The Legislature shall appropriate money in the account to the division.
             55628          (5) The division shall distribute the funds to one or more charitable organizations that:
             55629          (a) qualify as being tax exempt under Section 501(c)(3), Internal Revenue Code; and
             55630          (b) have as a primary part of their mission to provide support to organizations that
             55631      create affordable housing for those in severe need.
             55632          (6) The division may only consider proposals that are:
             55633          (a) proposed by an organization under Subsection (5); and
             55634          (b) designed to provide support to organizations that create affordable housing for
             55635      those in severe need.
             55636          (7) (a) An organization described in Subsection (5) may apply to the division to receive
             55637      a distribution in accordance with Subsection (5).

             55638          (b) An organization that receives a distribution from the division in accordance with
             55639      Subsection (5) shall expend the distribution only to provide support to organizations that create
             55640      affordable housing for those in severe need.
             55641          (8) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             55642      Administrative Rulemaking Act, the division shall make rules providing procedures for an
             55643      organization to apply to receive funds under this section.
             55644          Section 1085. Section 61-2b-2 is amended to read:
             55645           61-2b-2. Definitions.
             55646          (1) As used in this chapter:
             55647          (a) (i) "Appraisal" means an unbiased analysis, opinion, or conclusion relating to the
             55648      nature, quality, value, or utility of specified interests in, or aspects of, identified real estate or
             55649      identified real property.
             55650          (ii) An appraisal shall be classified by the nature of the assignment as a valuation
             55651      appraisal, an analysis assignment, or a review assignment in accordance with the following
             55652      definitions:
             55653          [(B)] (A) "Analysis assignment" means an unbiased analysis, opinion, or conclusion that
             55654      relates to the nature, quality, or utility of identified real estate or identified real property.
             55655          [(C)] (B) "Review assignment" means an unbiased analysis, opinion, or conclusion that
             55656      forms an opinion as to the adequacy and appropriateness of a valuation appraisal or an analysis
             55657      assignment.
             55658          [(A) ] (C) "Valuation appraisal" means an unbiased analysis, opinion, or conclusion that
             55659      estimates the value of an identified parcel of real estate or identified real property at a particular
             55660      point in time.
             55661          (b) "Appraisal Foundation" means the Appraisal Foundation that was incorporated as
             55662      an Illinois not-for-profit corporation on November 30, 1987.
             55663          (c) (i) "Appraisal report" means any communication, written or oral, of an appraisal.
             55664          (ii) An appraisal report shall be classified by the nature of the assignment as a valuation
             55665      report, analysis report, or review report in accordance with the definitions provided in

             55666      Subsection (1)(a)(ii).
             55667          (iii) The testimony of a person relating to the person's analyses, conclusions, or
             55668      opinions concerning identified real estate or identified real property is considered to be an oral
             55669      appraisal report.
             55670          (d) "Board" means the Real Estate Appraiser Licensing and Certification Board that is
             55671      established in Section 61-2b-7 .
             55672          (e) "Certified appraisal report" means a written or oral appraisal report that is certified
             55673      by a state-certified general appraiser or state-certified residential appraiser.
             55674          (f) (i) (A) "Consultation service" means an engagement to provide a real estate
             55675      valuation service analysis, opinion, conclusion, or other service that does not fall within the
             55676      definition of appraisal.
             55677          (B) "Consultation service" does not mean a valuation appraisal, analysis assignment, or
             55678      review assignment.
             55679          (ii) Regardless of the intention of the client or employer, if a person prepares an
             55680      unbiased analysis, opinion, or conclusion, the analysis, opinion, or conclusion is considered to
             55681      be an appraisal and not a consultation service.
             55682          (g) "Contingent fee" means a fee or other form of compensation, payment of which is
             55683      dependent on or conditioned by:
             55684          (i) the reporting of a predetermined analysis, opinion, or conclusion by the person
             55685      performing the analysis, opinion, or conclusion; or
             55686          (ii) achieving a result specified by the person requesting the analysis, opinion, or
             55687      conclusion.
             55688          (h) "Division" means the Division of Real Estate of the Department of Commerce.
             55689          (i) "Federally related transaction" means any real estate related transaction that is
             55690      required by federal law or by federal regulation to be supported by an appraisal prepared by:
             55691          (i) a state-licensed appraiser; or
             55692          (ii) a state-certified appraiser.
             55693          (j) "Real estate" means an identified parcel or tract of land including improvements if

             55694      any.
             55695          (k) "Real estate appraisal activity" means the act or process of making an appraisal of
             55696      real estate or real property and preparing an appraisal report.
             55697          (l) "Real estate related transaction" means:
             55698          (i) the sale, lease, purchase, investment in, or exchange of real property or an interest in
             55699      real property, or the financing of such a transaction;
             55700          (ii) the refinancing of real property or an interest in real property; or
             55701          (iii) the use of real property or an interest in real property as security for a loan or
             55702      investment, including mortgage-backed securities.
             55703          (m) "Real property" means one or more defined interests, benefits, or rights inherent in
             55704      the ownership of real estate.
             55705          (n) "State-certified general appraiser" means a person who holds a current, valid
             55706      certification as a state-certified general appraiser issued under this chapter.
             55707          (o) "State-certified residential appraiser" means a person who holds a current, valid
             55708      certification as a state-certified residential real estate appraiser issued under this chapter.
             55709          (p) "State-licensed appraiser" means a person who holds a current, valid license as a
             55710      state-licensed appraiser issued under this chapter.
             55711          (q) "State-registered appraiser" means a person who before May 3, 1999, was
             55712      registered as an appraiser under this chapter.
             55713          (r) "Trainee" means an individual who:
             55714          (i) does not hold an appraiser license or appraiser certification issued under this chapter;
             55715      and
             55716          (ii) works under the direct supervision of a state-licensed appraiser or state-certified
             55717      appraiser to earn experience for licensure.
             55718          (s) "Unbiased analysis, opinion, or conclusion" means an analysis, opinion, or
             55719      conclusion relating to the nature, quality, value, or utility of identified real estate or identified
             55720      real property that is prepared by a person who is employed or retained to act, or would be
             55721      perceived by third parties or the public as acting, as a disinterested third party in rendering the

             55722      analysis, opinion, or conclusion.
             55723          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             55724      meaning established by the division by rule made in accordance with [Title 63, Chapter 46a]
             55725      Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             55726          (b) If a term not defined in this section is not defined by rule, the term shall have the
             55727      meaning commonly accepted in the business community.
             55728          Section 1086. Section 61-2b-6 is amended to read:
             55729           61-2b-6. Duties and powers of division.
             55730          (1) The division shall have the powers and duties listed in this Subsection (1).
             55731          (a) The division shall:
             55732          (i) receive applications for licensing and certification;
             55733          (ii) establish appropriate administrative procedures for the processing of applications for
             55734      licensure or certification;
             55735          (iii) issue licenses and certifications to qualified applicants pursuant to this chapter; and
             55736          (iv) maintain a registry of the names and addresses of individuals who are currently
             55737      licensed or certified as appraisers under this chapter.
             55738          (b) (i) The division shall require a trainee to notify the division that the trainee is acting
             55739      in the capacity of a trainee earning experience for licensure.
             55740          (ii) The board shall adopt rules in accordance with [Title 63, Chapter 46a] Title 63G,
             55741      Chapter 3, Utah Administrative Rulemaking Act, for the trainee notification required by this
             55742      Subsection (1)(b).
             55743          (c) The division shall hold public hearings under the direction of the board.
             55744          (d) The division may:
             55745          (i) solicit bids and enter into contracts with one or more educational testing services or
             55746      organizations for the preparation of a bank of questions and answers approved by the board for
             55747      licensing and certification examinations; and
             55748          (ii) administer or contract for the administration of licensing and certification
             55749      examinations as may be required to carry out the division's responsibilities under this chapter.

             55750          (e) The division shall provide administrative assistance to the board by providing to the
             55751      board the facilities, equipment, supplies, and personnel that are required to enable the board to
             55752      carry out the board's responsibilities under this chapter.
             55753          (f) The division shall assist the board in upgrading and improving the quality of the
             55754      education and examinations required under this chapter.
             55755          (g) The division shall assist the board in improving the quality of the continuing
             55756      education available to persons licensed and certified under this chapter.
             55757          (h) The division shall assist the board with respect to the proper interpretation or
             55758      explanation of the Uniform Standards of Professional Appraisal Practice as required by Section
             55759      61-2b-27 when an interpretation or explanation becomes necessary in the enforcement of this
             55760      chapter.
             55761          (i) The division shall establish fees in accordance with Section [ 63-38-3.2 ] 63J-1-303 :
             55762          (i) for processing:
             55763          (A) trainee notifications;
             55764          (B) applications for licensing and certification; and
             55765          (C) registration of expert witnesses; and
             55766          (ii) for all other functions required or permitted by this chapter.
             55767          (j) The division may:
             55768          (i) investigate complaints against:
             55769          (A) trainees; or
             55770          (B) persons licensed or certified under this chapter;
             55771          (ii) subpoena witnesses and the production of books, documents, records, and other
             55772      papers;
             55773          (iii) administer oaths; and
             55774          (iv) take testimony and receive evidence concerning all matters within the division's
             55775      jurisdiction.
             55776          (k) The division may promote research and conduct studies relating to the profession of
             55777      real estate appraising and sponsor real estate appraisal educational activities.

             55778          (l) The division shall adopt, with the concurrence of the board, rules for the
             55779      administration of this chapter pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             55780      Administrative Rulemaking Act, that are not inconsistent with this chapter or the constitution
             55781      and laws of this state or of the United States.
             55782          (m) The division shall employ an appropriate staff to investigate allegations that persons
             55783      licensed or certified under this chapter failed to comply with this chapter.
             55784          (n) The division may employ such other professional, clerical, and technical staff as may
             55785      be necessary to properly administer the work of the division under this chapter.
             55786          (o) The division may make available, at a reasonable cost determined by the division, a
             55787      list of the names and addresses of all persons licensed or certified by the division under this
             55788      chapter to the extent the information is a public record under [Title 63, Chapter 2] Title 63G,
             55789      Chapter 2, Government Records Access and Management Act.
             55790          (2) (a) The division shall register expert witnesses who are not otherwise licensed or
             55791      certified under this chapter to appear in all administrative and judicial tax proceedings to
             55792      provide evidence related to the valuation of real property that is assessed by the tax
             55793      commission, provided that the:
             55794          (i) registration is limited to a specific proceeding;
             55795          (ii) registration is valid until the proceeding becomes final;
             55796          (iii) applicant pays a registration fee to the division;
             55797          (iv) applicant provides the applicant's name, address, occupation, and professional
             55798      credentials; and
             55799          (v) applicant provides a notarized statement that:
             55800          (A) the applicant is competent to render an appraisal and to testify as an expert witness
             55801      in the proceeding; and
             55802          (B) the appraisal and testimony to be offered shall be in accordance with the Uniform
             55803      Standards of Professional Appraisal Practice adopted by the board.
             55804          (b) Subsection (2)(a) shall be effective for all administrative and judicial property tax
             55805      proceedings related to the valuation of real property that is assessed by the tax commission,

             55806      including those filed but which are not final as of May 3, 1994.
             55807          (3) The division shall be immune from any civil action or criminal prosecution for
             55808      initiating or assisting in any lawful investigation of the actions of or participating in any
             55809      disciplinary proceeding concerning a trainee or a person licensed, certified, or registered as an
             55810      expert witness pursuant to this chapter if the action is taken without malicious intent and in the
             55811      reasonable belief that the action was taken pursuant to the powers and duties vested in the
             55812      members of the division under this chapter.
             55813          Section 1087. Section 61-2b-8 is amended to read:
             55814           61-2b-8. Duties of board.
             55815          The board shall provide technical assistance to the division relating to real estate
             55816      appraisal standards and real estate appraiser qualifications and shall have the responsibilities,
             55817      powers, and duties listed in this section.
             55818          (1) The board shall:
             55819          (a) determine the experience, education, and examination requirements appropriate for
             55820      persons licensed under this chapter;
             55821          (b) determine the experience, education, and examination requirements appropriate for
             55822      persons certified under this chapter in compliance with the minimum requirements of Financial
             55823      Institutions Reform, Recovery, and Enforcement Act of 1989, and consistent with the intent of
             55824      this chapter;
             55825          (c) determine the appraisal related acts that may be performed by:
             55826          (i) a trainee on the basis of the trainee's education and experience;
             55827          (ii) clerical staff; and
             55828          (iii) a person who:
             55829          (A) does not hold a license or certification; and
             55830          (B) assists appraisers licensed or certified under this chapter in providing appraisal
             55831      services or consultation services;
             55832          (d) determine the procedures for a trainee notifying the division that the trainee will
             55833      assist persons licensed or certified under this chapter in providing appraisal services or

             55834      consultation services; and
             55835          (e) develop programs to upgrade and improve the experience, education, and
             55836      examinations as required under this chapter.
             55837          (2) (a) The experience, education, and examination requirements established by the
             55838      board for persons licensed or certified under this chapter shall be the minimum criteria
             55839      established by the Appraiser Qualification Board of the Appraisal Foundation, unless, after
             55840      notice and a public hearing held in accordance with [Title 63, Chapter 46a] Title 63G, Chapter
             55841      3, Utah Administrative Rulemaking Act, the board finds that the minimum criteria are not
             55842      appropriate for state-licensed appraisers or state-certified appraisers in this state.
             55843          (b) If under Subsection (2)(a) the board makes a finding that the minimum criteria are
             55844      not appropriate, the board shall recommend appropriate criteria to the Legislature.
             55845          (3) The board shall:
             55846          (a) determine the continuing education requirements appropriate for the renewal of
             55847      licenses and certifications issued under this chapter;
             55848          (b) develop programs to upgrade and improve continuing education; and
             55849          (c) recommend to the division available continuing education courses that meet the
             55850      requirements of this chapter.
             55851          (4) (a) The board shall consider the proper interpretation or explanation of the Uniform
             55852      Standards of Professional Appraisal Practice as required by Section 61-2b-27 when:
             55853          (i) an interpretation or explanation becomes necessary in the enforcement of this
             55854      chapter; and
             55855          (ii) the Appraisal Standards Board of the Appraisal Foundation has not as yet issued an
             55856      interpretation or explanation.
             55857          (b) If the conditions of Subsection (4)(a) are met, the board shall recommend to the
             55858      division the appropriate interpretation or explanation that the division should adopt as a rule
             55859      under this chapter.
             55860          (5) The board shall develop and establish or approve the examination specifications and
             55861      the minimum score required to pass the examinations for licensure and certification.

             55862          (6) The board shall review the:
             55863          (a) bank of questions and answers that comprise the examination for persons licensed
             55864      and certified under this chapter;
             55865          (b) procedure that is established for selecting individual questions from the bank of
             55866      questions for use in each scheduled examination; and
             55867          (c) questions in the bank of questions and the related answers to determine whether
             55868      they meet the examination specifications established by the board.
             55869          (7) (a) The board shall conduct administrative hearings, not delegated by the board to
             55870      an administrative law judge, in connection with all disciplinary proceedings under Sections
             55871      61-2b-30 and 61-2b-31 concerning:
             55872          (i) a person licensed or certified under this chapter; and
             55873          (ii) the person's failure to comply with this chapter and the Uniform Standards of
             55874      Professional Appraisal Practice as adopted under Section 61-2b-27 .
             55875          (b) The board shall issue in each administrative hearing a decision that contains findings
             55876      of fact and conclusions of law.
             55877          (c) When a determination is made that a person licensed or certified under this chapter
             55878      has violated any provision of this chapter, the division shall implement disciplinary action
             55879      determined by the board.
             55880          (8) The members of the board shall be immune from any civil action or criminal
             55881      prosecution for any disciplinary proceeding concerning a person registered, licensed, or certified
             55882      under this chapter if the action is taken without malicious intent and in the reasonable belief that
             55883      the action taken was taken pursuant to the powers and duties vested in the members of the
             55884      board under this chapter.
             55885          (9) The board shall require and pass upon proof necessary to determine the honesty,
             55886      competency, integrity, and truthfulness of each applicant for original or renewal licensure or
             55887      certification.
             55888          Section 1088. Section 61-2b-18 is amended to read:
             55889           61-2b-18. Application for certification or licensure -- Registration as an expert

             55890      witness.
             55891          (1) An application for the following shall be sent to the division on forms approved by
             55892      the division:
             55893          (a) original certification or licensure;
             55894          (b) registration as an expert witness; and
             55895          (c) renewal of certification or licensure.
             55896          (2) The payment of the appropriate fee, as fixed by the division with the concurrence of
             55897      the board in accordance with Section [ 63-38-3.2 ] 63J-1-303 , must accompany an application
             55898      for:
             55899          (a) registration as an expert witness;
             55900          (b) original certification or licensure; and
             55901          (c) renewal of certification or licensure.
             55902          (3) At the time of filing an application described in Subsection (1), each applicant shall:
             55903          (a) sign a pledge to comply with the Uniform Standards of Professional Appraisal
             55904      Practice and the ethical rules to be observed by an appraiser that are established under Section
             55905      61-2b-27 for certified or licensed appraisers or registered expert witnesses under this chapter;
             55906      and
             55907          (b) certify that the applicant understands the types of misconduct, as set forth in this
             55908      chapter, for which disciplinary proceedings may be initiated against persons certified or licensed
             55909      under this chapter.
             55910          Section 1089. Section 61-2b-21 is amended to read:
             55911           61-2b-21. Denial of licensure or certification.
             55912          The division may, upon compliance with [Title 63, Chapter 46b] Title 63G, Chapter 4,
             55913      Administrative Procedures Act, deny the issuance of a license or certification to an applicant on
             55914      any of the grounds enumerated in this chapter.
             55915          Section 1090. Section 61-2b-22 is amended to read:
             55916           61-2b-22. Licensing, certification, or expert witness requirements for
             55917      nonresidents -- Temporary license or certificate -- Revocation.

             55918          (1) Each applicant for registration as an expert witness, licensure, or certification under
             55919      this chapter who is not a resident of this state shall submit with the applicant's application an
             55920      irrevocable consent that service of process upon the applicant may be made by delivery of the
             55921      process to the director of the division if, in an action against the applicant in a court of this state
             55922      arising out of the applicant's activities as a real estate appraiser in this state, the plaintiff cannot,
             55923      in the exercise of due diligence, obtain personal service upon the applicant.
             55924          (2) A nonresident of this state who has complied with the provisions of Subsection (1)
             55925      may obtain a registration as an expert witness, a license, or a certification in this state by
             55926      complying with all of the provisions of this chapter relating to registration of expert witnesses,
             55927      licensure, or certification.
             55928          (3) A nonresident of this state who has complied with the provisions of Subsection (1)
             55929      may obtain a temporary license or certification to perform a contract relating to the appraisal of
             55930      real estate or real property in this state. To qualify for the issuance of a temporary license or
             55931      certification, an applicant must:
             55932          (a) submit an application on a form approved by the division;
             55933          (b) submit evidence that the applicant is licensed or certified in the state in which the
             55934      applicant primarily conducts business;
             55935          (c) certify that no formal charges alleging violation of state appraisal licensing or
             55936      certification laws have been filed against the applicant by the applicant's state of domicile; and
             55937          (d) pay an application fee in an amount established by the division with the concurrence
             55938      of the board.
             55939          (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             55940      Administrative Rulemaking Act, the division, with the concurrence of the board, shall make
             55941      rules establishing the duration of a temporary permit and procedures for renewal of a temporary
             55942      permit.
             55943          (5) A temporary permit issued under this section shall be immediately and automatically
             55944      revoked if the appraiser's license or certification is suspended or revoked in the appraiser's state
             55945      of domicile.

             55946          (6) Any person whose license or certification has been revoked under Subsection (5) is
             55947      entitled to a postrevocation hearing to challenge the revocation. The hearing shall be conducted
             55948      in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures
             55949      Act.
             55950          Section 1091. Section 61-2b-27 is amended to read:
             55951           61-2b-27. Professional conduct -- Uniform standards.
             55952          (1) (a) Each person licensed, certified, or registered as an expert witness under this
             55953      chapter must comply with generally accepted standards of professional appraisal practice and
             55954      generally accepted ethical rules to be observed by a real estate appraiser.
             55955          (b) Generally accepted standards of professional appraisal practice are evidenced by the
             55956      Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal
             55957      Foundation.
             55958          (c) After a public hearing held in accordance with [Title 63, Chapter 46a] Title 63G,
             55959      Chapter 3, Utah Administrative Rulemaking Act, the board shall adopt and may make
             55960      modifications of or additions to the Uniform Standards of Professional Appraisal Practice as the
             55961      board considers appropriate to comply with the Financial Institutions Reform, Recovery, and
             55962      Enforcement Act of 1989.
             55963          (2) If the Appraisal Standards Board of the Appraisal Foundation modifies the Uniform
             55964      Standards of Professional Appraisal Practice, issues supplemental appraisal standards which it
             55965      considers appropriate for residential real estate appraisers or for general real estate appraisers,
             55966      or issues ethical rules to be observed by a real estate appraiser and requests the board to
             55967      consider the adoption of the modified or supplemental standards or ethical rules, the board shall
             55968      schedule a public hearing pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             55969      Administrative Rulemaking Act, for the purpose of deciding whether or not the board should
             55970      require the modified or supplemental standards or the ethical rules to be observed by persons
             55971      licensed, certified, or registered as an expert witness under this chapter.
             55972          (3) If, after the notice and public hearing, the board finds that the modified or
             55973      supplemental standards or the ethical rules issued by the Appraisal Standards Board of the

             55974      Appraisal Foundation are appropriate for persons licensed, certified, or registered as an expert
             55975      witness under this chapter, the board shall recommend rules requiring all persons licensed,
             55976      certified, or registered as an expert witness under this chapter to observe the modified or
             55977      supplemental standards or the ethical rules.
             55978          Section 1092. Section 61-2b-28 is amended to read:
             55979           61-2b-28. Enforcement -- Investigation -- Orders -- Hearings.
             55980          (1) (a) The division may investigate the actions of:
             55981          (i) any person licensed or certified under this chapter;
             55982          (ii) an applicant for licensure or certification;
             55983          (iii) an applicant for renewal of licensure or certification; or
             55984          (iv) a person required to be licensed or certified under this chapter.
             55985          (b) The division may initiate an agency action against a person described in Subsection
             55986      (1)(a) in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             55987      Procedures Act, to:
             55988          (i) impose disciplinary action;
             55989          (ii) deny issuance to an applicant of an original or renewal license or certification; or
             55990          (iii) issue a cease and desist order as provided in Subsection (3).
             55991          (2) (a) The division may:
             55992          (i) administer an oath or affirmation;
             55993          (ii) subpoena witnesses;
             55994          (iii) take evidence; and
             55995          (iv) require the production of books, papers, contracts, records, other documents, or
             55996      information relevant to the investigation described in Subsection (1).
             55997          (b) The division may serve subpoenas by certified mail.
             55998          (c) Each failure to respond to a request by the division in an investigation authorized
             55999      under this chapter is considered to be a separate violation of this chapter, including:
             56000          (i) failing to respond to a subpoena;
             56001          (ii) withholding evidence; or

             56002          (iii) failing to produce documents or records.
             56003          (3) (a) The director shall issue and serve upon a person an order directing that person
             56004      to cease and desist from an act if:
             56005          (i) the director has reason to believe that the person has been engaging, is about to
             56006      engage, or is engaging in the act constituting a violation of this chapter; and
             56007          (ii) it appears to the director that it would be in the public interest to stop the act.
             56008          (b) Within ten days after receiving the order, the person upon whom the order is served
             56009      may request an adjudicative proceeding.
             56010          (c) Pending the hearing, the cease and desist order shall remain in effect.
             56011          (d) If a request for hearing is made, the division shall follow the procedures and
             56012      requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             56013          (4) (a) After the hearing, if the board agrees that the acts of the person violate this
             56014      chapter, the board:
             56015          (i) shall issue an order making the cease and desist order permanent; and
             56016          (ii) may impose a civil penalty not to exceed the greater of:
             56017          (A) $2,500 for each violation; or
             56018          (B) the amount of any gain or economic benefit derived from each violation.
             56019          (b) The director shall commence an action in the name of the Department of Commerce
             56020      and Division of Real Estate, in the district court in the county in which an act described in
             56021      Subsection (3) occurs or where the person resides or carries on business, to enjoin and restrain
             56022      the person from violating this chapter if:
             56023          (i) (A) no hearing is requested; and
             56024          (B) the person fails to cease the act described in Subsection (3); or
             56025          (ii) after discontinuing the act described in Subsection (3), the person again commences
             56026      the act.
             56027          (5) The remedies and action provided in this section do not limit, interfere with, or
             56028      prevent the prosecution of any other remedies or actions including criminal proceedings.
             56029          Section 1093. Section 61-2b-30 is amended to read:

             56030           61-2b-30. Compliance with Administrative Procedures Act.
             56031          The division and board shall comply with [Title 63, Chapter 46b, the] Title 63G,
             56032      Chapter 4, Administrative Procedures Act, in conducting any disciplinary proceedings under this
             56033      chapter.
             56034          Section 1094. Section 61-2b-37 is amended to read:
             56035           61-2b-37. Division service fees -- Federal registry fees.
             56036          (1) The division, with the concurrence of the board, shall establish and collect fees in
             56037      accordance with Section [ 63-38-3.2 ] 63J-1-303 for its services under this chapter.
             56038          (2) The division shall collect the annual registry fee established by the Federal Financial
             56039      Institutions Examinations Council from those certificate holders who seek to perform appraisals
             56040      in federally related transactions. The division shall transmit the fees to the federal Appraisal
             56041      Subcommittee at least annually.
             56042          Section 1095. Section 61-2c-102 is amended to read:
             56043           61-2c-102. Definitions.
             56044          (1) As used in this chapter:
             56045          (a) "Affiliate" means an individual or an entity that directly, or indirectly through one or
             56046      more intermediaries, controls or is controlled by, or is under common control with, a specified
             56047      individual or entity.
             56048          (b) "Applicant" means an individual or entity applying for a license under this chapter.
             56049          (c) "Associate lending manager" means a person who:
             56050          (i) has qualified under this chapter as a principal lending manager; and
             56051          (ii) works by or on behalf of another principal lending manager in transacting the
             56052      business of residential mortgage loans.
             56053          (d) "Branch office" means a licensed entity's office:
             56054          (i) for the transaction of the business of residential mortgage loans regulated under this
             56055      chapter; and
             56056          (ii) other than the main office of the licensed entity.
             56057          (e) (i) "Business of residential mortgage loans" means for compensation to:

             56058          (A) make or originate a residential mortgage loan;
             56059          (B) directly or indirectly solicit, place, or negotiate a residential mortgage loan for
             56060      another; or
             56061          (C) render services related to the origination of a residential mortgage loan including:
             56062          (I) taking applications; and
             56063          (II) communicating with the borrower and lender.
             56064          (ii) "Business of residential mortgage loans" does not include:
             56065          (A) the performance of clerical functions such as:
             56066          (I) gathering information related to a residential mortgage loan on behalf of the
             56067      prospective borrower or a person licensed under this chapter; or
             56068          (II) requesting or gathering information, word processing, sending correspondence, or
             56069      assembling files by an individual who works under the instruction of a person licensed under this
             56070      chapter;
             56071          (B) ownership of an entity that engages in the business of residential mortgage loans if
             56072      the owner does not personally perform the acts listed in Subsection (1)(e)(i);
             56073          (C) acting as a loan wholesaler;
             56074          (D) acting as an account executive for a loan wholesaler;
             56075          (E) acting as a loan underwriter;
             56076          (F) acting as a loan closer; or
             56077          (G) funding a loan.
             56078          (f) "Closed-end" means a loan with a fixed amount borrowed and which does not
             56079      permit additional borrowing secured by the same collateral.
             56080          (g) "Commission" means the Residential Mortgage Regulatory Commission created in
             56081      Section 61-2c-104 .
             56082          (h) "Compensation" means anything of economic value that is paid, loaned, granted,
             56083      given, donated, or transferred to an individual or entity for or in consideration of:
             56084          (i) services;
             56085          (ii) personal or real property; or

             56086          (iii) other thing of value.
             56087          (i) "Control," as used in Subsection (1)(a), means the power to directly or indirectly:
             56088          (i) direct or exercise a controlling interest over:
             56089          (A) the management or policies of an entity; or
             56090          (B) the election of a majority of the directors, officers, managers, or managing partners
             56091      of an entity;
             56092          (ii) vote 20% or more of any class of voting securities of an entity by an individual; or
             56093          (iii) vote more than 5% of any class of voting securities of any entity by another entity.
             56094          (j) "Depository institution" is as defined in Section 7-1-103 .
             56095          (k) "Director" means the director of the division.
             56096          (l) "Division" means the Division of Real Estate.
             56097          (m) "Dwelling" means a residential structure attached to real property that contains one
             56098      to four units including any of the following if used as a residence:
             56099          (i) a condominium unit;
             56100          (ii) a cooperative unit;
             56101          (iii) a manufactured home; or
             56102          (iv) a house.
             56103          (n) "Entity" means any corporation, limited liability company, partnership, company,
             56104      association, joint venture, business trust, trust, or other organization.
             56105          (o) "Executive director" means the executive director of the Department of Commerce.
             56106          (p) "Inactive status" means a dormant status into which an unexpired license is placed
             56107      when the holder of the license is not currently engaging in the business of residential mortgage
             56108      loans.
             56109          (q) "Lending manager" or "principal lending manager" means a person licensed as a
             56110      principal lending manager under Section 61-2c-206 .
             56111          (r) "Licensee" means an individual or entity licensed with the division under this
             56112      chapter.
             56113          (s) (i) Except as provided in Subsection (1)(s)(ii), "mortgage officer" means an

             56114      individual who is licensed with the division to transact the business of residential mortgage loans
             56115      through a principal lending manager.
             56116          (ii) "Mortgage officer" does not include a principal lending manager.
             56117          (t) "Record" means information that is:
             56118          (i) prepared, owned, received, or retained by an individual or entity; and
             56119          (ii) (A) inscribed on a tangible medium; or
             56120          (B) (I) stored in an electronic or other medium; and
             56121          (II) retrievable in perceivable form.
             56122          (u) "Residential mortgage loan" means a closed-end, first mortgage loan or extension of
             56123      credit, if:
             56124          (i) the loan or extension of credit is secured by a:
             56125          (A) mortgage;
             56126          (B) deed of trust; or
             56127          (C) lien interest; and
             56128          (ii) the mortgage, deed of trust, or lien interest described in Subsection (1)(u)(i):
             56129          (A) is on a dwelling located in the state; and
             56130          (B) created with the consent of the owner of the residential real property.
             56131          (v) "State" means:
             56132          (i) a state, territory, or possession of the United States;
             56133          (ii) the District of Columbia; or
             56134          (iii) the Commonwealth of Puerto Rico.
             56135          (2) (a) If a term not defined in this section is defined by rule, the term shall have the
             56136      meaning established by the division by rule made in accordance with [Title 63, Chapter 46a]
             56137      Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             56138          (b) If a term not defined in this section is not defined by rule, the term shall have the
             56139      meaning commonly accepted in the business community.
             56140          Section 1096. Section 61-2c-103 is amended to read:
             56141           61-2c-103. Powers and duties of the division.

             56142          (1) The division shall administer this chapter.
             56143          (2) In addition to any power or duty expressly provided in this chapter, the division
             56144      may:
             56145          (a) receive and act on complaints including:
             56146          (i) taking action designed to obtain voluntary compliance with this chapter; or
             56147          (ii) commencing administrative or judicial proceedings on the division's own initiative;
             56148          (b) establish programs for the education of consumers with respect to residential
             56149      mortgage loans;
             56150          (c) (i) make studies appropriate to effectuate the purposes and policies of this chapter;
             56151      and
             56152          (ii) make the results of the studies described in Subsection (2)(c)(i) available to the
             56153      public;
             56154          (d) visit and investigate an entity licensed under this chapter, regardless of whether the
             56155      entity is located in Utah; and
             56156          (e) employ any necessary hearing examiners, investigators, clerks, and other employees
             56157      and agents.
             56158          (3) The division shall make rules for the administration of this chapter in accordance
             56159      with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             56160      including:
             56161          (a) licensure procedures for:
             56162          (i) individuals and entities required by this chapter to obtain a license with the division;
             56163      and
             56164          (ii) the establishment of a branch office by an entity;
             56165          (b) proper handling of funds received by licensees;
             56166          (c) record-keeping requirements by licensees; and
             56167          (d) standards of conduct for licensees.
             56168          (4) The division may make available to the public a list of the names and mailing
             56169      addresses of all licensees:

             56170          (a) either directly or through a third party; and
             56171          (b) at a reasonable cost.
             56172          (5) The division shall:
             56173          (a) certify education providers who offer:
             56174          (i) prelicensing education to candidates for licensure under this chapter; or
             56175          (ii) continuing education to individuals licensed under this chapter; and
             56176          (b) make available to the public, licensees, and candidates for licensure a list of the
             56177      names and addresses of all education providers certified under this Subsection (5).
             56178          (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             56179      Administrative Rulemaking Act, the division shall make rules establishing:
             56180          (a) certification criteria and procedures for providers of prelicensing education and
             56181      continuing education; and
             56182          (b) standards of conduct for certified education providers.
             56183          (7) The division may charge a fee established in accordance with Section [ 63-38-3.2 ]
             56184      63J-1-303 for processing any of the changes that a licensee is required by Section 61-2c-205 to
             56185      report to the division.
             56186          Section 1097. Section 61-2c-104 is amended to read:
             56187           61-2c-104. Residential Mortgage Regulatory Commission.
             56188          (1) (a) There is created within the division the Residential Mortgage Regulatory
             56189      Commission consisting of the following members appointed by the executive director with the
             56190      approval of the governor:
             56191          (i) four members having at least three years of experience in transacting the business of
             56192      residential mortgage loans and who are currently licensed under this chapter; and
             56193          (ii) one member from the general public.
             56194          (b) (i) The executive director with the approval of the governor may appoint an
             56195      alternate member to the board.
             56196          (ii) The alternate member shall:
             56197          (A) at the time of the appointment, have at least three years of experience in transacting

             56198      the business of residential mortgage loans; and
             56199          (B) be licensed under this chapter at the time of and during appointment.
             56200          (2) (a) Except as required by Subsection (2)(b), the executive director shall appoint
             56201      each new member or reappointed member subject to appointment by the executive director to a
             56202      four-year term ending June 30.
             56203          (b) Notwithstanding the requirements of Subsection (2)(a), the executive director shall,
             56204      at the time of appointment or reappointment, adjust the length of terms to ensure that the terms
             56205      of commission members are staggered so that approximately half of the commission is
             56206      appointed every two years.
             56207          (c) If a vacancy occurs in the membership of the commission for any reason, the
             56208      replacement shall be appointed for the unexpired term.
             56209          (3) Members of the commission shall annually select one member to serve as chair.
             56210          (4) (a) The commission shall meet at least quarterly.
             56211          (b) The director may call a meeting in addition to the meetings required by Subsection
             56212      (4)(a):
             56213          (i) at the discretion of the director;
             56214          (ii) at the request of the chair of the commission; or
             56215          (iii) at the written request of three or more commission members.
             56216          (5) (a) Three members of the commission constitute a quorum for the transaction of
             56217      business.
             56218          (b) If a quorum of members is unavailable for any meeting and an alternate member has
             56219      been appointed to the commission by the executive director with the approval of the governor,
             56220      the alternate member shall serve as a regular member of the commission for that meeting if with
             56221      the presence of the alternate member there is a quorum present at the meeting.
             56222          (c) The action of a majority of a quorum present is an action of the commission.
             56223          (6) (a) (i) A member who is not a government employee shall receive no compensation
             56224      or benefits for the member's services, but may receive per diem and expenses incurred in the
             56225      performance of the member's official duties at the rates established by the Division of Finance

             56226      under Sections 63A-3-106 and 63A-3-107 .
             56227          (ii) A member who is not a government employee may decline to receive per diem and
             56228      expenses for the member's service.
             56229          (b) (i) A state government officer and employee member who does not receive salary,
             56230      per diem, or expenses from the member's agency for the member's service may receive per diem
             56231      and expenses incurred in the performance of the member's official duties from the commission at
             56232      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             56233          (ii) A state government officer and employee member may decline to receive per diem
             56234      and expenses for the member's service.
             56235          (7) The commission shall:
             56236          (a) except as provided in Subsection 61-2c-202 (2), concur in the licensure or denial of
             56237      licensure of individuals and entities under this chapter in accordance with Part 2, Licensure;
             56238          (b) take disciplinary action with the concurrence of the director in accordance with Part
             56239      4, Enforcement;
             56240          (c) advise the division concerning matters related to the administration and enforcement
             56241      of this chapter; and
             56242          (d) with the concurrence of the division, determine the requirements for:
             56243          (i) the examination required under Section 61-2c-202 , covering at least:
             56244          (A) the fundamentals of the English language;
             56245          (B) arithmetic;
             56246          (C) the provisions of this chapter;
             56247          (D) rules adopted by the division;
             56248          (E) basic residential mortgage principles and practices; and
             56249          (F) any other aspect of Utah law the commission determines is appropriate;
             56250          (ii) with the concurrence of the division, the continuing education requirements under
             56251      Section 61-2c-205 , including:
             56252          (A) except as provided in Subsection 61-2c-202 (4)(a)(iii) and Subsection
             56253      61-2c-206 (1)(c), the appropriate number of hours of prelicensing education and required

             56254      continuing education; and
             56255          (B) the subject matter of courses the division may accept for continuing education
             56256      purposes;
             56257          (iii) with the concurrence of the division, the prelicensing education required under
             56258      Sections 61-2c-202 and 61-2c-206 , including online education or distance learning options; and
             56259          (iv) the examination required under Section 61-2c-206 covering:
             56260          (A) advanced residential mortgage principles and practices; and
             56261          (B) other aspects of Utah law the commission, with the concurrence of the division,
             56262      determines appropriate.
             56263          (8) The commission may appoint a committee to make recommendations to the
             56264      commission concerning approval of prelicensing education and continuing education courses.
             56265          (9) The commission and the division shall make the examination and prelicensing
             56266      education and continuing education requirements described in this section available through the
             56267      Internet or other distance education methods approved by the commission and division when
             56268      reasonably practicable.
             56269          (10) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             56270      Administrative Rulemaking Act, the commission, with the concurrence of the division, shall
             56271      make rules establishing procedures under which a licensee may be exempted from continuing
             56272      education requirements:
             56273          (a) for a period not to exceed four years; and
             56274          (b) upon a finding of reasonable cause.
             56275          Section 1098. Section 61-2c-105 is amended to read:
             56276           61-2c-105. Scope of chapter.
             56277          (1) (a) This chapter applies to a closed-end residential mortgage loan secured by a first
             56278      lien or equivalent security interest on a one to four unit dwelling.
             56279          (b) This chapter does not apply to a transaction covered by Title 70C, Utah Consumer
             56280      Credit Code.
             56281          (2) The following are exempt from this chapter:

             56282          (a) the federal government;
             56283          (b) a state;
             56284          (c) a political subdivision of a state;
             56285          (d) an agency of or entity created by a governmental entity described in Subsections
             56286      (2)(a) through (c) including:
             56287          (i) the Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah Housing
             56288      Corporation Act;
             56289          (ii) the Federal National Mortgage Corporation;
             56290          (iii) the Federal Home Loan Mortgage Corporation;
             56291          (iv) the Federal Deposit Insurance Corporation;
             56292          (v) the Resolution Trust Corporation;
             56293          (vi) the Government National Mortgage Association;
             56294          (vii) the Federal Housing Administration;
             56295          (viii) the National Credit Union Administration;
             56296          (ix) the Farmers Home Administration; and
             56297          (x) the United States Department of Veterans Affairs;
             56298          (e) a depository institution;
             56299          (f) an affiliate of a depository institution;
             56300          (g) an employee or agent of an entity described in Subsections (2)(a) through (f) when
             56301      that person acts on behalf of the entity described in Subsections (2)(a) through (f);
             56302          (h) an individual or entity:
             56303          (i) that makes a loan:
             56304          (A) secured by an interest in real property;
             56305          (B) with the individual's or the entity's own money; and
             56306          (C) for the individual's or entity's own investment; and
             56307          (ii) that does not engage in the business of making loans secured by an interest in real
             56308      property;
             56309          (i) an individual or entity who receives a mortgage, deed of trust, or lien interest on real

             56310      property if the individual or entity:
             56311          (i) is the seller of real property; and
             56312          (ii) receives the mortgage, deed of trust, or lien interest on real property as security for
             56313      a separate money obligation;
             56314          (j) an individual or entity who receives a mortgage, deed of trust, or lien interest on real
             56315      property if:
             56316          (i) the individual or entity receives the mortgage, deed of trust, or lien interest as
             56317      security for an obligation payable on an installment or deferred payment basis;
             56318          (ii) the obligation described in Subsection (2)(j)(i) arises from an individual or entity
             56319      providing materials or services used in the improvement of the real property that is the subject
             56320      of the mortgage, deed of trust, or lien interest; and
             56321          (iii) the mortgage, deed of trust, or lien interest was created without the consent of the
             56322      owner of the real property that is the subject of the mortgage, deed of trust, or lien interest;
             56323          (k) a nonprofit corporation that:
             56324          (i) is exempt from paying federal income taxes;
             56325          (ii) is certified by the United States Small Business Administration as a small business
             56326      investment company;
             56327          (iii) is organized to promote economic development in this state; and
             56328          (iv) has as its primary activity providing financing for business expansion;
             56329          (l) a court appointed fiduciary; or
             56330          (m) an attorney admitted to practice law in this state:
             56331          (i) if the attorney is not principally engaged in the business of negotiating residential
             56332      mortgage loans; and
             56333          (ii) when the attorney renders services in the course of the attorney's practice as an
             56334      attorney.
             56335          (3) (a) Notwithstanding Subsection (2)(m), an attorney exempt from this chapter may
             56336      not engage in conduct described in Section 61-2c-301 when transacting business of residential
             56337      mortgage loans.

             56338          (b) If an attorney exempt from this chapter violates Subsection (3)(a), the attorney:
             56339          (i) is not subject to enforcement by the division under Part 4, Enforcement; and
             56340          (ii) is subject to disciplinary action generally applicable to an attorney admitted to
             56341      practice law in this state.
             56342          (c) If the division receives a complaint alleging an attorney exempt from this chapter is
             56343      in violation of Subsection (3)(a), the division shall forward the complaint to the Utah State Bar
             56344      for disciplinary action.
             56345          (4) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             56346      Administrative Rulemaking Act, the division shall, by rule, determine a date, on or after
             56347      December 31, 2004, after which an individual who is exempt under Subsection (2) may
             56348      voluntarily obtain a license pursuant to Subsection (4)(b).
             56349          (b) (i) After the date described in Subsection (4)(a), an individual who is exempt under
             56350      Subsection (2) may voluntarily obtain a license under this chapter by complying with Part 2,
             56351      Licensure.
             56352          (ii) An individual who voluntarily obtains a license pursuant to this Subsection (4)(b)
             56353      shall comply with all the provisions of this chapter.
             56354          Section 1099. Section 61-2c-201 is amended to read:
             56355           61-2c-201. Licensure required of individuals and entities engaged in the business
             56356      of residential mortgage loans -- Mortgage officer -- Principal lending manager.
             56357          (1) Unless exempt from this chapter under Section 61-2c-105 , an individual or entity
             56358      may not transact the business of residential mortgage loans, as defined in Section 61-2c-102 ,
             56359      without obtaining a license under this chapter.
             56360          (2) For purposes of this chapter, an individual or entity transacts business in this state if:
             56361          (a) (i) the individual or entity engages in an act that constitutes the business of
             56362      residential mortgage loans; and
             56363          (ii) (A) the act described in Subsection (2)(a)(i) is directed to or received in this state;
             56364      and
             56365          (B) the real property that is the subject of the act described in Subsection (2)(a)(i) is

             56366      located in this state; or
             56367          (b) a representation is made by the individual or entity that the individual or entity
             56368      transacts the business of residential mortgage loans in this state.
             56369          (3) An individual who has an ownership interest in an entity required to be licensed
             56370      under this chapter is not required to obtain an individual license under this chapter unless the
             56371      individual transacts the business of residential mortgage loans.
             56372          (4) Unless otherwise exempted under this chapter, licensure under this chapter is
             56373      required of both:
             56374          (a) the individual who directly transacts the business of residential mortgage loans; and
             56375          (b) if the individual transacts business as an employee or agent of an entity or individual,
             56376      the entity or individual for whom the employee or agent transacts the business of residential
             56377      mortgage loans.
             56378          (5) (a) An individual licensed under this chapter may not engage in the business of
             56379      residential mortgage loans on behalf of more than one entity at the same time.
             56380          (b) This Subsection (5) does not restrict the number of:
             56381          (i) different lenders an individual or entity may use as a funding source for residential
             56382      mortgage loans; or
             56383          (ii) entities in which an individual may have an ownership interest, regardless of whether
             56384      the entities are:
             56385          (A) licensed under this chapter; or
             56386          (B) exempt under Section 61-2c-105 .
             56387          (6) An individual licensed under this chapter may not transact the business of residential
             56388      mortgage loans for the following at the same time:
             56389          (a) an entity licensed under this chapter; and
             56390          (b) an entity that is exempt from licensure under Section 61-2c-105 .
             56391          (7) A mortgage officer may not receive consideration for transacting the business of
             56392      residential mortgage loans from any person or entity except the principal lending manager with
             56393      whom the mortgage officer is licensed.

             56394          (8) A mortgage officer shall conduct all business of residential mortgage loans:
             56395          (a) through the principal lending manager with which the individual is licensed; and
             56396          (b) in the business name under which the principal lending manager is authorized by the
             56397      division to do business.
             56398          (9) (a) (i) This Subsection (9)(a) does not apply to an individual who transacts the
             56399      business of residential mortgage loans as an employee or agent of another individual or entity.
             56400          (ii) If an entity that is authorized by this chapter to transact the business of residential
             56401      mortgage loans transacts the business of residential mortgage loans under an assumed business
             56402      name, the entity shall:
             56403          (A) register the assumed name with the division; and
             56404          (B) furnish the division proof that the assumed business name has been filed with the
             56405      Division of Corporations and Commercial Code pursuant to Title 42, Chapter 2, Conducting
             56406      Business Under Assumed Name.
             56407          (b) The division may charge a fee established in accordance with Section [ 63-38-3.2 ]
             56408      63J-1-303 for registering an assumed name pursuant to this Subsection (9).
             56409          (10) A licensee whose license is in inactive status may not transact the business of
             56410      residential mortgage loans.
             56411          Section 1100. Section 61-2c-202 is amended to read:
             56412           61-2c-202. Licensure procedures.
             56413          (1) To apply for licensure under this chapter an applicant shall:
             56414          (a) submit to the division a licensure statement that:
             56415          (i) lists any name under which the individual or entity will transact business in this state;
             56416          (ii) lists the address of the principal business location of the applicant;
             56417          (iii) if the applicant is an entity:
             56418          (A) lists the principal lending manager of the entity; and
             56419          (B) contains the signature of the principal lending manager;
             56420          (iv) demonstrates that the applicant meets the qualifications listed in Section 61-2c-203 ;
             56421          (v) if the applicant is an entity, lists:

             56422          (A) all jurisdictions in which the entity is registered, licensed, or otherwise regulated in
             56423      the business of residential mortgage loans; and
             56424          (B) the history of any disciplinary action or adverse administrative action taken against
             56425      the entity by any regulatory agency within the ten years preceding the application; and
             56426          (vi) includes any information required by the division by rule;
             56427          (b) pay to the division:
             56428          (i) an application fee established by the division in accordance with Section [ 63-38-3.2 ]
             56429      63J-1-303 ; and
             56430          (ii) the reasonable expenses incurred in processing the application for licensure
             56431      including the costs incurred by the division under Subsection (4); and
             56432          (c) comply with Subsection (4).
             56433          (2) (a) The division shall issue a license to an applicant if the division, with the
             56434      concurrence of the commission, finds that the applicant:
             56435          (i) meets the qualifications of Section 61-2c-203 ; and
             56436          (ii) complies with this section.
             56437          (b) The commission may delegate to the division the authority to:
             56438          (i) review any class or category of application for initial or renewed licenses;
             56439          (ii) determine whether an applicant meets the licensing criteria in Section 61-2c-203 ;
             56440          (iii) conduct any necessary hearing on an application; and
             56441          (iv) approve or deny a license application without concurrence by the commission.
             56442          (c) If the commission delegates to the division the authority to approve or deny an
             56443      application without concurrence by the commission and the division denies an application for
             56444      licensure, the applicant who is denied licensure may petition the commission for review of the
             56445      denial.
             56446          (d) An applicant who is denied licensure under this Subsection (2)(b) may seek agency
             56447      review by the executive director only after the commission has reviewed the division's denial of
             56448      the applicant's application.
             56449          (3) Subject to Subsection (2)(d) and in accordance with [Title 63, Chapter 46b] Title

             56450      63G, Chapter 4, Administrative Procedures Act, an applicant who is denied licensure under this
             56451      chapter may submit a request for agency review to the executive director within 30 days
             56452      following the issuance of the commission order denying the licensure.
             56453          (4) (a) An individual applying for a license under this chapter shall:
             56454          (i) submit a fingerprint card in a form acceptable to the division at the time the licensure
             56455      statement is filed;
             56456          (ii) consent to a criminal background check by:
             56457          (A) the Utah Bureau of Criminal Identification; and
             56458          (B) the Federal Bureau of Investigation;
             56459          (iii) provide proof using methods approved by the division of having successfully
             56460      completed 20 hours of approved prelicensing education required by the commission under
             56461      Section 61-2c-104 before taking the examination required by Subsection (4)(a)(iv); and
             56462          (iv) provide proof using methods approved by the division of having successfully passed
             56463      an examination approved by the commission under Section 61-2c-104 .
             56464          (b) The division shall request the Department of Public Safety to complete a Federal
             56465      Bureau of Investigation criminal background check for each applicant and each control person
             56466      of an applicant through a national criminal history system.
             56467          (c) The applicant shall pay the cost of:
             56468          (i) the fingerprinting required by this section; and
             56469          (ii) the criminal background check required by this section.
             56470          (d) (i) A license under this chapter is conditional pending completion of the criminal
             56471      background check required by this Subsection (4).
             56472          (ii) If a criminal background check discloses that an applicant failed to accurately
             56473      disclose a criminal history, the license shall be immediately and automatically revoked.
             56474          (iii) An individual or entity whose conditional license is revoked under Subsection
             56475      (4)(d)(ii) may appeal the revocation in a hearing conducted by the commission:
             56476          (A) after the revocation; and
             56477          (B) in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative

             56478      Procedures Act.
             56479          (iv) The commission may delegate to the division or an administrative law judge the
             56480      authority to conduct a hearing described in Subsection (4)(d)(iii).
             56481          (v) Relief from a revocation may be granted only if:
             56482          (A) the criminal history upon which the division based the revocation:
             56483          (I) did not occur; or
             56484          (II) is the criminal history of another person;
             56485          (B) (I) the revocation is based on a failure to accurately disclose a criminal history; and
             56486          (II) the applicant had a reasonable good faith belief at the time of application that there
             56487      was no criminal history to be disclosed; or
             56488          (C) the division failed to follow the prescribed procedure for the revocation.
             56489          (e) If a license is revoked or a revocation is upheld after a hearing described in
             56490      Subsection (4)(d)(iii), the person may not apply for a new license for a period of 12 months
             56491      after the day on which the license is revoked.
             56492          (f) The funds paid by an applicant for the cost of the criminal background check shall be
             56493      nonlapsing.
             56494          (g) The commission may delegate to the division the authority to make a decision on
             56495      whether relief from a revocation should be granted.
             56496          Section 1101. Section 61-2c-205 is amended to read:
             56497           61-2c-205. Term of licensure -- Renewal -- Reporting of changes.
             56498          (1) (a) A license under this chapter is valid for a two-year period.
             56499          (b) Notwithstanding Subsection (1)(a), the time period of a license may be extended or
             56500      shortened by as much as one year to maintain or change a renewal cycle established by rule by
             56501      the division.
             56502          (2) To renew a license, no later than the date the license expires, a licensee shall:
             56503          (a) (i) file the renewal form required by the division; and
             56504          (ii) furnish the information required by Subsection 61-2c-202 (1);
             56505          (b) pay a fee to the division established by the division in accordance with Section

             56506      [ 63-38-3.2 ] 63J-1-303 ; and
             56507          (c) if the licensee is an individual and the individual's license is in active status at the
             56508      time of application for renewal, submit proof using forms approved by the division of having
             56509      completed during the two years prior to application the continuing education required by the
             56510      commission under Section 61-2c-104 .
             56511          (3) (a) A licensee under this chapter shall notify the division using the form required by
             56512      the division within ten days of the date on which there is a change in:
             56513          (i) a name under which the licensee transacts the business of residential mortgage loans
             56514      in this state;
             56515          (ii) (A) if the licensee is an entity, the business location of the licensee; or
             56516          (B) if the licensee is an individual, the home and business addresses of the individual;
             56517          (iii) the principal lending manager of the entity;
             56518          (iv) the entity with which an individual licensee is licensed to conduct the business of
             56519      residential mortgage loans; or
             56520          (v) any other information that is defined as material by rule made by the division.
             56521          (b) Failure to notify the division of a change described in Subsection (3)(a) is separate
             56522      grounds for disciplinary action against a licensee.
             56523          (4) A licensee shall notify the division by sending the division a signed statement within
             56524      ten business days of:
             56525          (a) (i) a conviction of any criminal offense;
             56526          (ii) the entry of a plea in abeyance to any criminal offense; or
             56527          (iii) the potential resolution of any criminal case by:
             56528          (A) a diversion agreement; or
             56529          (B) any other agreement under which criminal charges are held in suspense for a period
             56530      of time;
             56531          (b) filing a personal bankruptcy or bankruptcy of a business that transacts the business
             56532      of residential mortgage loans;
             56533          (c) the suspension, revocation, surrender, cancellation, or denial of a professional

             56534      license or professional registration of the licensee, whether the license or registration is issued
             56535      by this state or another jurisdiction; or
             56536          (d) the entry of a cease and desist order or a temporary or permanent injunction:
             56537          (i) against the licensee by a court or licensing agency; and
             56538          (ii) based on:
             56539          (A) conduct or a practice involving the business of residential mortgage loans; or
             56540          (B) conduct involving fraud, misrepresentation, or deceit.
             56541          (5) (a) A license under this chapter expires if the licensee does not apply to renew the
             56542      license on or before the expiration date of the license.
             56543          (b) Within 30 calendar days after the expiration date, a licensee whose license has
             56544      expired may apply to reinstate the expired license upon:
             56545          (i) payment of a renewal fee and a late fee determined by the division under Section
             56546      [ 63-38-3.2 ] 63J-1-303 ; and
             56547          (ii) if the licensee is an individual and is applying to reinstate a license to active status,
             56548      providing proof using forms approved by the division of having completed, during the two years
             56549      prior to application, the continuing education required by the commission under Section
             56550      61-2c-104 .
             56551          (c) After the 30 calendar days described in Subsection (5)(b) and within six months
             56552      after the expiration date, a licensee whose license has expired may apply to reinstate an expired
             56553      license upon:
             56554          (i) payment of a renewal fee and a late fee determined by the division under Section
             56555      [ 63-38-3.2 ] 63J-1-303 ;
             56556          (ii) if the licensee is an individual and is applying to reinstate a license to active status,
             56557      providing proof using forms approved by the division of having completed, during the two years
             56558      prior to application, the continuing education required by the commission under Section
             56559      61-2c-104 ; and
             56560          (iii) in addition to the continuing education required for a timely renewal, completing an
             56561      additional 12 hours of continuing education approved by the commission under Section

             56562      61-2c-104 .
             56563          (d) A licensee whose license has been expired for more than six months shall be
             56564      relicensed as prescribed for an original application under Section 61-2c-202 .
             56565          Section 1102. Section 61-2c-206 is amended to read:
             56566           61-2c-206. Principal lending manager licenses.
             56567          (1) Except as provided in Subsection (2), to qualify as a principal lending manager
             56568      under this chapter, an individual shall, in addition to meeting the standards in Section
             56569      61-2c-203 :
             56570          (a) submit an application on a form approved by the division;
             56571          (b) pay fees determined by the division under Section [ 63-38-3.2 ] 63J-1-303 ;
             56572          (c) submit proof of having successfully completed 40 hours of prelicensing education
             56573      approved by the commission under Section 61-2c-104 ;
             56574          (d) submit proof of having successfully completed the principal lending manager
             56575      examination approved by the commission under Section 61-2c-104 ;
             56576          (e) submit proof on forms approved by the division of three years of full-time active
             56577      experience as a mortgage officer in the five years preceding the day on which the application is
             56578      submitted, or its equivalent as approved by the commission; and
             56579          (f) if the individual is not licensed under this chapter at the time of application, submit
             56580      to the criminal background check required by Subsection 61-2c-202 (4).
             56581          (2) (a) Notwithstanding Subsection (1), an individual described in Subsection (2)(b)
             56582      may qualify as a principal lending manager without:
             56583          (i) meeting the requirements of Subsection (1)(c); and
             56584          (ii) completing the portions of the principal lending manager examination described in
             56585      Subsection (1)(d) that:
             56586          (A) relate to federal law; and
             56587          (B) do not relate to Utah law.
             56588          (b) An individual may qualify as a principal lending manager pursuant to Subsection
             56589      (2)(a) if the individual:

             56590          (i) submits to the division an affidavit that the individual has five years of experience in
             56591      the business of residential mortgage loans;
             56592          (ii) establishes that the individual's experience described in this Subsection (2)(b) was
             56593      acquired:
             56594          (A) under requirements substantially equivalent to the requirements of this chapter; and
             56595          (B) in compliance with the requirements of this chapter; and
             56596          (iii) provides any other information required by the division by rule under Subsection
             56597      (2)(c).
             56598          (c) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             56599      Administrative Rulemaking Act, the division shall define the information an individual shall
             56600      provide to the division pursuant to Subsection (2)(b).
             56601          (3) A principal lending manager may not engage in the business of residential mortgage
             56602      loans on behalf of more than one entity at the same time.
             56603          Section 1103. Section 61-2c-207 is amended to read:
             56604           61-2c-207. Reciprocal licensure.
             56605          (1) The division may enter into a reciprocity agreement with another state and issue a
             56606      reciprocal license to a licensee of that state if the division determines that the:
             56607          (a) state has substantially equivalent licensing laws;
             56608          (b) state requires a licensing examination that is substantially equivalent to the
             56609      examination required by this chapter; and
             56610          (c) licensee has not had:
             56611          (i) formal charges alleging a violation of state mortgage laws filed against the licensee;
             56612      or
             56613          (ii) disciplinary action or license restriction taken by the licensee's state of domicile.
             56614          (2) The division may issue a reciprocal license to a licensee of a state with which the
             56615      division does not have a reciprocity agreement if the individual:
             56616          (a) submits to the division an affidavit that the individual has five years of experience in
             56617      the business of residential mortgage loans;

             56618          (b) establishes that the individual's experience described in Subsection (2)(a) was under
             56619      requirements substantially equivalent to the licensing requirements of this chapter; and
             56620          (c) provides any other information required by the division by rule under Subsection
             56621      (3).
             56622          (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             56623      Administrative Rulemaking Act, the division shall define the information an individual shall
             56624      provide to the division pursuant to Subsection (2).
             56625          Section 1104. Section 61-2c-208 is amended to read:
             56626           61-2c-208. Activation and inactivation of license.
             56627          (1) (a) A licensee may request that the division place the license on inactive status by
             56628      submitting an inactivation form approved by the division.
             56629          (b) The license of a mortgage officer or mortgage entity not affiliated with an active
             56630      license of a principal lending manager automatically converts to inactive status on the day on
             56631      which the mortgage officer or mortgage entity is not affiliated with the active license of the
             56632      principal lending manager.
             56633          (c) A licensee whose license is in inactive status may not transact the business of
             56634      residential mortgage loans.
             56635          (2) To activate a license that has been placed on inactive status, a licensee shall:
             56636          (a) submit an activation form:
             56637          (i) approved by the division; and
             56638          (ii) signed by the principal lending manager with whom the licensee is affiliating;
             56639          (b) pay an activation fee established by the division under Section [ 63-38-3.2 ]
             56640      63J-1-303 ; and
             56641          (c) if the licensee is an individual whose license was in inactive status at the time of the
             56642      previous renewal, the licensee shall supply the division with proof of the successful completion
             56643      of the number of hours of continuing education that the licensee would have been required to
             56644      complete under Subsection 61-2c-205 (2)(c) if the licensee's license had been on active status,
             56645      up to a maximum of the number of hours required for two licensing periods.

             56646          Section 1105. Section 61-2c-402.1 is amended to read:
             56647           61-2c-402.1. Adjudicative proceedings -- Review.
             56648          (1) (a) Before the actions described in Section 61-2c-402 may be taken, the division
             56649      shall:
             56650          (i) give notice to the individual or entity; and
             56651          (ii) commence an adjudicative proceeding.
             56652          (b) If after the adjudicative proceeding is commenced under Subsection (1)(a) the
             56653      presiding officer determines that an individual or entity required to be licensed under this
             56654      chapter has violated this chapter, the division may take an action described in Section 61-2c-402
             56655      by written order.
             56656          (2) In accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             56657      Procedures Act, an individual or entity against whom action is taken under this section may seek
             56658      review by the executive director of the action.
             56659          (3) If an individual or entity prevails in a judicial appeal and the court finds that the state
             56660      action was undertaken without substantial justification, the court may award reasonable
             56661      litigation expenses to that individual or entity as provided under Title 78, Chapter 27a, Small
             56662      Business Equal Access to Justice Act.
             56663          (4) (a) An order issued under this section takes effect 30 days after the service of the
             56664      order unless otherwise provided in the order.
             56665          (b) If an appeal of an order issued under this section is taken by an individual or entity,
             56666      the division may stay enforcement of the order in accordance with Section [ 63-46b-18 ]
             56667      63G-4-405 .
             56668          (5) If ordered by the court of competent jurisdiction, the division shall promptly take an
             56669      action described in Section 61-2c-402 against a license granted under this chapter.
             56670          Section 1106. Section 61-2c-403 is amended to read:
             56671           61-2c-403. Cease and desist orders.
             56672          (1) (a) The director may issue and serve by certified mail, or by personal service, on an
             56673      individual or entity an order to cease and desist if:

             56674          (i) the director has reason to believe that the individual or entity has been engaged, is
             56675      engaging in, or is about to engage in acts constituting a violation of this chapter; and
             56676          (ii) it appears to the director that it would be in the public interest to stop the acts.
             56677          (b) Within ten days after service of the order, the party named in the order may request
             56678      an adjudicative proceeding to be held in accordance with [Title 63, Chapter 46b] Title 63G,
             56679      Chapter 4, Administrative Procedures Act.
             56680          (c) Pending the hearing, the cease and desist order shall remain in effect.
             56681          (2) (a) After the hearing described in Subsection (1), if the director finds that the acts of
             56682      the individual or entity violate this chapter, the director:
             56683          (i) shall issue an order making the cease and desist order permanent; and
             56684          (ii) may impose a civil penalty not to exceed the greater of:
             56685          (A) $2,500 for each violation; or
             56686          (B) the amount of any gain or economic benefit derived from each violation.
             56687          (b) (i) The director may file suit in the name of the division to enjoin and restrain an
             56688      individual or entity on whom an order is served under this section from violating this chapter if:
             56689          (A) (I) the individual or entity did not request a hearing under Subsection (1); or
             56690          (II) a permanent cease and desist order is issued against the individual or entity
             56691      following a hearing or stipulation; and
             56692          (B) (I) the individual or entity fails to cease the acts; or
             56693          (II) after discontinuing the acts, the individual or entity again commences the acts.
             56694          (ii) The suit described in Subsection (2)(b)(i) shall be filed in the district court in the
             56695      county:
             56696          (A) in which the acts occurred;
             56697          (B) where the individual resides; or
             56698          (C) where the individual or entity carries on business.
             56699          (3) The cease and desist order issued under this section may not interfere with or
             56700      prevent the prosecution of a remedy or action enforcement under this chapter.
             56701          (4) An individual who violates a cease and desist order issued under this section is

             56702      guilty of a class A misdemeanor.
             56703          Section 1107. Section 62A-1-106 is amended to read:
             56704           62A-1-106. Adjudicative proceedings.
             56705          The department and its boards, divisions, and offices described in Section 62A-1-105
             56706      shall comply with the procedures and requirements of [Title 63, Chapter 46b,] Title 63G,
             56707      Chapter 4, Administrative Procedures Act, in their adjudicative proceedings.
             56708          Section 1108. Section 62A-1-108.5 is amended to read:
             56709           62A-1-108.5. Mental illness and mental retardation examinations --
             56710      Responsibilities of the department.
             56711          (1) In accomplishing its duties to conduct mental illness and mental retardation
             56712      examinations under Title 77, Utah Code of Criminal Procedure, the department shall proceed as
             56713      outlined in this section and within appropriations authorized by the Legislature. The executive
             56714      director may delegate [his] the executive director's responsibilities under this section to one or
             56715      more divisions within the department.
             56716          (2) When the department is ordered by the court to conduct a mental illness or mental
             56717      retardation examination, the executive director shall:
             56718          (a) direct that the examination be performed at the Utah State Hospital; or
             56719          (b) designate at least one examiner, selected under Subsection (3), to examine the
             56720      defendant in [his] the defendant's current custody or status.
             56721          (3) The department shall establish criteria, in consultation with the Commission on
             56722      Criminal and Juvenile Justice, and shall contract with persons or organizations to conduct
             56723      mental illness and mental retardation examinations under Subsection (2)(b). In making this
             56724      selection, the department shall follow the provisions of [Title 63, Chapter 56] Title 63G,
             56725      Chapter 6, Utah Procurement Code.
             56726          (4) Nothing in this section prohibits the executive director, at the request of defense
             56727      counsel or a prosecuting attorney in a criminal proceeding under Title 77, Utah Code of
             56728      Criminal Procedure, and for good cause shown, from proposing a person who has not been
             56729      previously selected under Subsection (3) to contract with the department to conduct the

             56730      examination. In selecting that person, the criteria of the department established under
             56731      Subsection (3) and the provisions of [Title 63, Chapter 56] Title 63G, Chapter 6, Utah
             56732      Procurement Code, shall be met.
             56733          Section 1109. Section 62A-1-111 is amended to read:
             56734           62A-1-111. Department authority.
             56735          The department may, in addition to all other authority and responsibility granted to it by
             56736      law:
             56737          (1) adopt rules, not inconsistent with law, as the department may consider necessary or
             56738      desirable for providing social services to the people of this state;
             56739          (2) establish and manage client trust accounts in the department's institutions and
             56740      community programs, at the request of the client or [his] the client's legal guardian or
             56741      representative, or in accordance with federal law;
             56742          (3) purchase, as authorized or required by law, services that the department is
             56743      responsible to provide for legally eligible persons;
             56744          (4) conduct adjudicative proceedings for clients and providers in accordance with the
             56745      procedures of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act;
             56746          (5) establish eligibility standards for its programs, not inconsistent with state or federal
             56747      law or regulations;
             56748          (6) take necessary steps, including legal action, to recover money or the monetary value
             56749      of services provided to a recipient who was not eligible;
             56750          (7) set and collect fees for its services;
             56751          (8) license agencies, facilities, and programs, except as otherwise allowed, prohibited,
             56752      or limited by law;
             56753          (9) acquire, manage, and dispose of any real or personal property needed or owned by
             56754      the department, not inconsistent with state law;
             56755          (10) receive gifts, grants, devises, and donations; gifts, grants, devises, donations, or the
             56756      proceeds thereof, may be credited to the program designated by the donor, and may be used for
             56757      the purposes requested by the donor, as long as the request conforms to state and federal

             56758      policy; all donated funds shall be considered private, nonlapsing funds and may be invested
             56759      under guidelines established by the state treasurer;
             56760          (11) accept and employ volunteer labor or services; the department is authorized to
             56761      reimburse volunteers for necessary expenses, when the department considers that
             56762      reimbursement to be appropriate;
             56763          (12) carry out the responsibility assigned in the Workforce Services Plan by the State
             56764      Council on Workforce Services;
             56765          (13) carry out the responsibility assigned by Section 9-4-802 with respect to
             56766      coordination of services for the homeless;
             56767          (14) carry out the responsibility assigned by Section 62A-5a-105 with respect to
             56768      coordination of services for students with a disability;
             56769          (15) provide training and educational opportunities for its staff;
             56770          (16) collect child support payments and any other monies due to the department;
             56771          (17) apply the provisions of Title 78, Chapter 45, Uniform Civil Liability for Support
             56772      Act, to parents whose child lives out of the home in a department licensed or certified setting;
             56773          (18) establish policy and procedures in cases where the department is given custody of
             56774      a minor by the juvenile court pursuant to Section 78-3a-118 ; any policy and procedures shall
             56775      include:
             56776          (a) designation of interagency teams for each juvenile court district in the state;
             56777          (b) delineation of assessment criteria and procedures;
             56778          (c) minimum requirements, and timeframes, for the development and implementation of
             56779      a collaborative service plan for each minor placed in department custody; and
             56780          (d) provisions for submittal of the plan and periodic progress reports to the court;
             56781          (19) carry out the responsibilities assigned to it by statute;
             56782          (20) examine and audit the expenditures of any public funds provided to local substance
             56783      abuse authorities, local mental health authorities, local area agencies on aging, and any person,
             56784      agency, or organization that contracts with or receives funds from those authorities or agencies.
             56785      Those local authorities, area agencies, and any person or entity that contracts with or receives

             56786      funds from those authorities or area agencies, shall provide the department with any information
             56787      the department considers necessary. The department is further authorized to issue directives
             56788      resulting from any examination or audit to local authorities, area agencies, and persons or
             56789      entities that contract with or receive funds from those authorities with regard to any public
             56790      funds. If the department determines that it is necessary to withhold funds from a local mental
             56791      health authority or local substance abuse authority based on failure to comply with state or
             56792      federal law, policy, or contract provisions, it may take steps necessary to ensure continuity of
             56793      services. For purposes of this Subsection (20) "public funds" means the same as that term is
             56794      defined in Section 62A-15-102 ; and
             56795          (21) pursuant to Subsection 62A-2-106 (1)(d), accredit one or more agencies and
             56796      persons to provide intercountry adoption services.
             56797          Section 1110. Section 62A-1-112 is amended to read:
             56798           62A-1-112. Participation in federal programs -- Federal grants -- Authority of
             56799      executive director.
             56800          (1) The executive director may, by following the procedures and requirements of [Title
             56801      63, Chapter 38e] Title 63J, Chapter 5, Federal Funds Procedures, seek federal grants, loans, or
             56802      participation in federal programs.
             56803          (2) Wherever state law authorizes a board, director, division, or office of the
             56804      department to accept any grant, fund, or service which is to be advanced or contributed in
             56805      whole or in part by the federal government, that acceptance shall be subject to the approval or
             56806      disapproval of the executive director. All applications for federal grants or other federal
             56807      financial assistance for the support of any department program is subject to the approval of the
             56808      executive director.
             56809          (3) If any executive or legislative provision of the federal government so requires, as a
             56810      condition to participation by this state in any fund, property, or service, the executive director,
             56811      with the governor's approval, shall expend whatever funds are necessary out of the moneys
             56812      provided by the Legislature for use and disbursement by that department.
             56813          Section 1111. Section 62A-1-118 is amended to read:

             56814           62A-1-118. Access to abuse and neglect information to screen employees and
             56815      volunteers.
             56816          (1) With respect to department employees and volunteers, the department may only
             56817      access information in the Division of Child and Family Service's Management Information
             56818      System created by Section 62A-4a-1003 and the Division of Aging and Adult Services database
             56819      created by Section 62A-3-311.1 for the purpose of determining at the time of hire and each year
             56820      thereafter whether a department employee or volunteer has an adjudication of abuse or neglect
             56821      or since January 1, 1994, a substantiated finding of abuse or neglect after notice and an
             56822      opportunity for a hearing consistent with [Title 63, Chapter 46b] Title 63G, Chapter 4,
             56823      Administrative Procedures Act, but only if identification as a possible perpetrator of abuse or
             56824      neglect is directly relevant to the employment or volunteer activities of that person.
             56825          (2) A department employee or volunteer to whom Subsection (1) applies shall submit to
             56826      the department [his] the employee or volunteer's name and other identifying information upon
             56827      request.
             56828          (3) The department shall process the information to determine whether the employee or
             56829      volunteer has a substantiated finding of child abuse or neglect.
             56830          (4) The department shall adopt rules defining permissible and impermissible
             56831      work-related activities for a department employee or volunteer with one or more substantiated
             56832      findings of abuse or neglect.
             56833          Section 1112. Section 62A-2-105 is amended to read:
             56834           62A-2-105. Licensing board responsibilities.
             56835          (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             56836      Administrative Rulemaking Act, the licensing board shall review and approve rules regarding:
             56837          (a) approving, denying, suspending, and revoking licenses;
             56838          (b) conditional licenses, variances from department rule, and exclusions;
             56839          (c) the protection of the basic health and safety of clients;
             56840          (d) licensing of all persons and human services programs that are required to be
             56841      licensed under this chapter; and

             56842          (e) notification to providers and subproviders of rights and responsibilities including
             56843      who to contact within the department when filing a complaint against a licensee or human
             56844      services program, and the responsibility of the department to follow up once contacted.
             56845          (2) The licensing board shall:
             56846          (a) define information that shall be submitted to the department with an application for
             56847      a license;
             56848          (b) review and approve fees, in accordance with Section [ 63-38-3.2 ] 63J-1-303 , for
             56849      licenses issued under this chapter;
             56850          (c) represent the community and licensees; and
             56851          (d) advise the department as requested, concerning enforcement of rules established
             56852      under this chapter.
             56853          Section 1113. Section 62A-2-106 is amended to read:
             56854           62A-2-106. Office responsibilities.
             56855          (1) Subject to the requirements of federal and state law, the office shall:
             56856          (a) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             56857      Administrative Rulemaking Act, to establish:
             56858          (i) except as provided in Subsection (1)(a)(ii), basic health and safety standards for
             56859      licensees, that shall be limited to:
             56860          (A) fire safety;
             56861          (B) food safety;
             56862          (C) sanitation;
             56863          (D) infectious disease control;
             56864          (E) safety of the:
             56865          (I) physical facility and grounds; and
             56866          (II) area and community surrounding the physical facility;
             56867          (F) transportation safety;
             56868          (G) emergency preparedness and response;
             56869          (H) the administration of medical standards and procedures, consistent with the related

             56870      provisions of this title;
             56871          (I) staff and client safety and protection;
             56872          (J) the administration and maintenance of client and service records;
             56873          (K) staff qualifications and training, including standards for permitting experience to be
             56874      substituted for education, unless prohibited by law;
             56875          (L) staff to client ratios; and
             56876          (M) access to firearms;
             56877          (ii) basic health and safety standards for therapeutic schools, that shall be limited to:
             56878          (A) fire safety, except that the standards are limited to those required by law or rule
             56879      under Title 53, Chapter 7, Part 2, Fire Prevention and Fireworks Act;
             56880          (B) food safety;
             56881          (C) sanitation;
             56882          (D) infectious disease control, except that the standards are limited to:
             56883          (I) those required by law or rule under Title 26, Utah Health Code or Title 26A, Local
             56884      Health Authorities; and
             56885          (II) requiring a separate room for clients who are sick;
             56886          (E) safety of the physical facility and grounds, except that the standards are limited to
             56887      those required by law or rule under Title 53, Chapter 7, Part 2, Fire Prevention and Fireworks
             56888      Act;
             56889          (F) transportation safety;
             56890          (G) emergency preparedness and response;
             56891          (H) access to appropriate medical care, including:
             56892          (I) subject to the requirements of law, designation of a person who is authorized to
             56893      dispense medication; and
             56894          (II) storing, tracking, and securing medication;
             56895          (I) staff and client safety and protection that permits the school to provide for the direct
             56896      supervision of clients at all times;
             56897          (J) the administration and maintenance of client and service records;

             56898          (K) staff qualifications and training, including standards for permitting experience to be
             56899      substituted for education, unless prohibited by law;
             56900          (L) staff to client ratios; and
             56901          (M) access to firearms;
             56902          (iii) procedures and standards for permitting a licensee to:
             56903          (A) provide in the same facility and under the same conditions as children, residential
             56904      treatment services to a person 18 years old or older who:
             56905          (I) begins to reside at the licensee's residential treatment facility before the person's 18th
             56906      birthday;
             56907          (II) has resided at the licensee's residential treatment facility continuously since the time
             56908      described in Subsection (1)(a)(iii)(A)(I);
             56909          (III) has not completed the course of treatment for which the person began residing at
             56910      the licensee's residential treatment facility; and
             56911          (IV) voluntarily consents to complete the course of treatment described in Subsection
             56912      (1)(a)(iii)(A)(III); or
             56913          (B) (I) provide residential treatment services to a child who is:
             56914          (Aa) 12 years old or older; and
             56915          (Bb) under the custody of the Division of Juvenile Justice Services; and
             56916          (II) provide, in the same facility as a child described in Subsection (1)(a)(iii)(B)(I),
             56917      residential treatment services to a person who is:
             56918          (Aa) at least 18 years old, but younger than 21 years old; and
             56919          (Bb) under the custody of the Division of Juvenile Justice Services;
             56920          (iv) minimum administration and financial requirements for licensees; and
             56921          (v) guidelines for variances from rules established under this Subsection (1);
             56922          (b) enforce rules approved by the licensing board;
             56923          (c) issue licenses in accordance with this chapter;
             56924          (d) if the United States Department of State executes an agreement with the office that
             56925      designates the office to act as an accrediting entity in accordance with the Intercountry

             56926      Adoption Act of 2000, Pub. L. No. 106-279, accredit one or more agencies and persons to
             56927      provide intercountry adoption services pursuant to:
             56928          (i) the Intercountry Adoption Act of 2000, Pub. L. No. 106-279; and
             56929          (ii) the implementing regulations for the Intercountry Adoption Act of 2000, Pub. L.
             56930      No. 106-279;
             56931          (e) make rules to implement the provisions of Subsection (1)(d);
             56932          (f) conduct surveys and inspections of licensees and facilities in accordance with
             56933      Section 62A-2-118 ;
             56934          (g) collect licensure fees;
             56935          (h) provide necessary administrative support to the licensing board;
             56936          (i) notify licensees of the name of a person within the department to contact when filing
             56937      a complaint;
             56938          (j) investigate complaints regarding any licensee or human services program;
             56939          (k) have access to all records, correspondence, and financial data required to be
             56940      maintained by a licensee;
             56941          (l) have authority to interview any client, family member of a client, employee, or
             56942      officer of a licensee; and
             56943          (m) have authority to deny, condition, revoke, suspend, or extend any license issued by
             56944      the department under this chapter by following the procedures and requirements of [Title 63,
             56945      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             56946          (2) In establishing rules under Subsection (1)(a)(ii)(G), the office shall require a licensee
             56947      to establish and comply with an emergency response plan that requires clients and staff to:
             56948          (a) immediately report to law enforcement any significant criminal activity, as defined
             56949      by rule, committed:
             56950          (i) on the premises where the licensee operates its human services program;
             56951          (ii) by or against its clients; or
             56952          (iii) by or against a staff member while the staff member is on duty;
             56953          (b) immediately report to emergency medical services any medical emergency, as

             56954      defined by rule:
             56955          (i) on the premises where the licensee operates its human services program;
             56956          (ii) involving its clients; or
             56957          (iii) involving a staff member while the staff member is on duty; and
             56958          (c) immediately report other emergencies that occur on the premises where the licensee
             56959      operates its human services program to the appropriate emergency services agency.
             56960          Section 1114. Section 62A-2-108.2 is amended to read:
             56961           62A-2-108.2. Licensing residential treatment programs -- Notification of local
             56962      government.
             56963          (1) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             56964      Administrative Rulemaking Act, the office shall make rules that establish categories of
             56965      residential treatment licenses based on differences in the types of residential treatment programs.
             56966          (b) The categories referred to in Subsection (1)(a) may be based on differences in:
             56967          (i) services offered;
             56968          (ii) types of clients served;
             56969          (iii) risks posed to the community; or
             56970          (iv) other factors that make regulatory differences advisable.
             56971          (2) Subject to the requirements of federal and state law, and pursuant to the authority
             56972      granted by Section 62A-2-106 , the office shall establish and enforce rules that:
             56973          (a) relate generally to all categories of residential treatment program licenses; and
             56974          (b) relate to specific categories of residential treatment program licenses on the basis of
             56975      the regulatory needs, as determined by the office, of residential treatment programs within those
             56976      specific categories.
             56977          (3) Before submitting an application for a license to operate a residential treatment
             56978      program, the applicant shall serve notice of its intent to operate a residential treatment program
             56979      on the governing body of:
             56980          (a) the city in which the residential treatment program will be located; or
             56981          (b) if the residential treatment program will be located in the unincorporated area of a

             56982      county, the county in which the residential treatment program will be located.
             56983          (4) The notice described in Subsection (3) shall include the following information
             56984      relating to the residential treatment program:
             56985          (a) an accurate description of the residential treatment program;
             56986          (b) the location where the residential treatment program will be operated;
             56987          (c) the services that will be provided by the residential treatment program;
             56988          (d) the type of clients that the residential treatment program will serve;
             56989          (e) the category of license for which the residential treatment program is applying to the
             56990      office;
             56991          (f) the name, telephone number, and address of a person that may be contacted to make
             56992      inquiries about the residential treatment program; and
             56993          (g) any other information that the office may require by rule.
             56994          (5) When submitting an application for a license to operate a residential treatment
             56995      program, the applicant shall include with the application:
             56996          (a) a copy of the notice described in Subsection (3); and
             56997          (b) proof that the applicant served the notice described in Subsection (3) on the
             56998      governing body described in Subsection (3).
             56999          Section 1115. Section 62A-2-108.3 is amended to read:
             57000           62A-2-108.3. Local government -- Certified local inspector -- Local inspection of
             57001      a residential treatment facility -- Reporting violations.
             57002          (1) (a) Subject to this Subsection (1) and Subsection (3), the office shall designate, or
             57003      renew the designation of, a local government employee as a certified local inspector if:
             57004          (i) the governing body of a local government gives the office written notice:
             57005          (A) of the name of an employee of the local government; and
             57006          (B) requesting that the office designate the employee described in Subsection
             57007      (1)(a)(i)(A) as a certified local inspector; and
             57008          (ii) the employee described in Subsection (1)(a)(i) successfully completes the training
             57009      described in Subsection (1)(b).

             57010          (b) Before designating a local government employee as a certified local inspector, the
             57011      office shall:
             57012          (i) provide training to the local government employee on:
             57013          (A) this chapter;
             57014          (B) the rules established under:
             57015          (I) Subsection (2); and
             57016          (II) Subsection 62A-2-106 (1)(a);
             57017          (C) the Fourth Amendment to the Constitution of the United States; and
             57018          (D) other issues relating to conducting the inspections described in Subsection (4); and
             57019          (ii) conduct a criminal background check of the local government employee pursuant to
             57020      the same procedures established for a criminal background check of an applicant for an initial
             57021      license under Section 62A-2-120 .
             57022          (c) Subject to Subsection (6), the office may not designate a person as a certified local
             57023      inspector:
             57024          (i) unless the office approves the person to have direct access to children or vulnerable
             57025      adults pursuant to Section 62A-2-120 ; or
             57026          (ii) if the office determines that, based on the conduct of the person, it is not in the
             57027      public's best interest to designate the person as a certified local inspector.
             57028          (d) The office shall provide to a certified local inspector identification that:
             57029          (i) identifies the person as a certified local inspector;
             57030          (ii) contains a photograph of the certified local inspector;
             57031          (iii) states the date on which the certification of the certified local inspector expires; and
             57032          (iv) identifies the geographic location where the certified local inspector is authorized to
             57033      conduct an inspection.
             57034          (e) Nothing in this section shall be construed to require a local government to employ a
             57035      certified local inspector.
             57036          (2) The office shall make rules in accordance with [Title 63, Chapter 46a] Title 63G,
             57037      Chapter 3, Utah Administrative Rulemaking Act, to establish procedures for:

             57038          (a) complying with this section; and
             57039          (b) the conduct of inspections by a certified local inspector.
             57040          (3) For purposes of Subsection (1):
             57041          (a) the designation of a person as a certified local inspector shall expire one calendar
             57042      year from the day on which the designation is made;
             57043          (b) the designation of a person as a certified local inspector may not be renewed unless
             57044      Subsection (1) is complied with, including:
             57045          (i) providing a refresher course on the training described in Subsection (1)(b)(i); and
             57046          (ii) conducting a new criminal background check pursuant to Subsection (1)(b)(ii); and
             57047          (c) the office:
             57048          (i) shall revoke a person's designation as a certified local inspector if:
             57049          (A) subject to Subsection (6), the person commits an act that is grounds for refusing to
             57050      designate a person as a certified local inspector;
             57051          (B) the person's local government employer requests that the designation described in
             57052      this Subsection (3)(c)(i) be revoked; or
             57053          (C) the person is no longer employed by a local government, unless:
             57054          (I) the person is employed by another local government; and
             57055          (II) the governing body of the local government described in Subsection (3)(c)(i)(C)(I),
             57056      requests, in writing, that the person's designation as a certified local inspector continue; and
             57057          (ii) subject to Subsection (6), may revoke a person's designation as a certified local
             57058      inspector if the person violates:
             57059          (A) this section; or
             57060          (B) a rule made by the department that relates to this section.
             57061          (4) (a) Subject to Subsection (4)(b), a certified local inspector may inspect a residential
             57062      treatment facility of a licensee:
             57063          (i) if the certified local inspector is an employee of a local government that is a:
             57064          (A) (I) city; and
             57065          (II) the residential treatment facility is located within the city; or

             57066          (B) (I) county; and
             57067          (II) the residential treatment facility is located within the unincorporated area of the
             57068      county;
             57069          (ii) only during regular business hours;
             57070          (iii) pursuant to:
             57071          (A) this section; and
             57072          (B) the rules made by the office under this section; and
             57073          (iv) to determine whether the residential treatment facility is in compliance with the
             57074      requirements of:
             57075          (A) this chapter; and
             57076          (B) the rules made pursuant to this chapter.
             57077          (b) Notwithstanding Subsection (4)(a), a certified local inspector, may not:
             57078          (i) inspect a residential treatment facility of a licensee:
             57079          (A) if the office instructs the certified local inspector to not conduct an inspection; or
             57080          (B) except in an emergency, without giving the office prior notice of the inspection; and
             57081          (ii) unless otherwise authorized by law, examine or obtain any record of a residential
             57082      treatment facility, including a record relating to:
             57083          (A) a client of the residential treatment facility;
             57084          (B) an employee of the residential treatment facility; or
             57085          (C) an incident that occurs at the residential treatment facility.
             57086          (c) Within 24 hours, excluding weekends and holidays, of conducting an inspection
             57087      under this Subsection (4), the inspector shall provide the office with a written report informing
             57088      the office of the details of the inspection, including any violation by the licensee of:
             57089          (i) this chapter; or
             57090          (ii) the rules made pursuant to this chapter.
             57091          (5) (a) A local government employee who is a certified local inspector:
             57092          (i) may not take any action pursuant to this section without approval from the certified
             57093      local inspector's local government employer;

             57094          (ii) when taking any action pursuant to this section, shall at all times be considered an
             57095      employee of the certified local inspector's local government employer; and
             57096          (iii) is not an employee of the:
             57097          (A) office; or
             57098          (B) department.
             57099          (b) If a certified local inspector acts or fails to act in a way that would otherwise incur
             57100      any liability to the office or the department, the certified local inspector's local government
             57101      employer shall indemnify, defend, and hold harmless the office and the department for that
             57102      liability.
             57103          (c) (i) A local government employer of a certified local inspector is primarily
             57104      responsible for the training of the local government employer's certified local inspector.
             57105          (ii) The training described in Subsection (1)(b)(i) that is provided by the office is
             57106      supplemental to the primary training responsibility of the certified local inspector's local
             57107      government employer.
             57108          (d) The local government employer of a certified local inspector shall be responsible to
             57109      pay the certified local inspector for all action taken by the certified local inspector under this
             57110      section, including:
             57111          (i) conducting an inspection;
             57112          (ii) preparing an inspection report for the office; and
             57113          (iii) participating in training.
             57114          (6) (a) For purposes of Subsection (1), and Subsections (3)(c)(i)(A) and (3)(c)(ii), if the
             57115      office determines to not designate or renew the designation of a person as a certified local
             57116      inspector, the office shall notify the person and the governing body of the local government that
             57117      employs the person:
             57118          (i) of the determination described in this Subsection (6)(a);
             57119          (ii) of the reasons for the determination described in this Subsection (6)(a); and
             57120          (iii) that the person or the local government, or both, may request a hearing in the
             57121      department's Office of Administrative Hearings, to challenge the office's decision.

             57122          (b) A person for whom a hearing is requested under Subsection (6)(a)(iii) is not a
             57123      certified local inspector until:
             57124          (i) a final decision is made that the office should designate the person as a certified local
             57125      inspector; and
             57126          (ii) (A) all appeals of the determination described in Subsection (6)(a) are exhausted; or
             57127          (B) the time for an appeal described in Subsection (6)(b)(ii)(A) has expired.
             57128          (7) (a) If the office determines that a residential treatment facility has violated this
             57129      chapter or the rules made pursuant to this chapter, the office shall provide written notice of the
             57130      violation to the governing body of:
             57131          (i) the city that the residential treatment facility is located in; or
             57132          (ii) the county that the residential treatment facility is located in, if the residential
             57133      treatment facility is located in the unincorporated area of the county.
             57134          (b) The written notice described in Subsection (7)(a):
             57135          (i) subject to Subsection (7)(b)(ii), shall include:
             57136          (A) the name of the residential treatment facility;
             57137          (B) the location of the residential treatment facility;
             57138          (C) the date and time that the violation occurred; and
             57139          (D) the provision of the statute or rule that is violated; and
             57140          (ii) may not include:
             57141          (A) the name of any person connected with the violation; or
             57142          (B) any information prohibited from disclosure by [Title 63, Chapter 2] Title 63G,
             57143      Chapter 2, Government Records Access and Management Act.
             57144          (c) A local government may seek additional information relating to a violation described
             57145      in this Subsection (7) to the extent permitted by [Title 63, Chapter 2] Title 63G, Chapter 2,
             57146      Government Records Access and Management Act.
             57147          Section 1116. Section 62A-2-109 is amended to read:
             57148           62A-2-109. License application -- Classification of information.
             57149          (1) An application for a license under this chapter shall be made to the office and shall

             57150      contain information that the board determines is necessary in accordance with approved rules.
             57151          (2) Information received by the office through reports and inspections shall be classified
             57152      in accordance with [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
             57153      Management Act.
             57154          Section 1117. Section 62A-2-111 is amended to read:
             57155           62A-2-111. Adjudicative proceedings.
             57156          (1) Whenever the office has reason to believe that a licensee is in violation of this
             57157      chapter or rules made under this chapter, the office may commence adjudicative proceedings to
             57158      determine the legal rights of the licensee by serving notice of agency action in accordance with
             57159      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             57160          (2) A licensee, human services program, or individual may commence adjudicative
             57161      proceedings, in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             57162      Procedures Act, regarding all office actions that determine the legal rights, duties, privileges,
             57163      immunities, or other legal interests of the licensee, human services program, or persons
             57164      associated with the licensee, including all office actions to grant, deny, place conditions on,
             57165      revoke, suspend, withdraw, or amend an authority, right, or license under this chapter.
             57166          Section 1118. Section 62A-2-120 is amended to read:
             57167           62A-2-120. Criminal background checks -- Direct access to children or
             57168      vulnerable adults.
             57169          (1) (a) Except as provided in Subsection (7), an applicant for an initial license or a
             57170      license renewal under this chapter shall submit to the office the names and other identifying
             57171      information, which may include fingerprints, of all persons associated with the licensee, as
             57172      defined in Section 62A-2-101 , with direct access to children or vulnerable adults.
             57173          (b) The Criminal Investigations and Technical Services Division of the Department of
             57174      Public Safety, or the office as authorized under Section 53-10-108 , shall process the information
             57175      described in Subsection (1)(a) to determine whether the individual has been convicted of any
             57176      crime.
             57177          (c) Except as provided in Subsection (1)(d), if an individual has not continuously lived

             57178      in Utah for the five years immediately preceding the day on which the information referred to in
             57179      Subsection (1)(a) is submitted to the office, the individual shall submit fingerprints for a FBI
             57180      national criminal history record check. The fingerprints shall be submitted to the FBI through
             57181      the Criminal Investigations and Technical Services Division.
             57182          (d) An individual is not required to comply with Subsection (1)(c) if:
             57183          (i) the individual continuously lived in Utah for the five years immediately preceding the
             57184      day on which the information described in Subsection (1)(a) is submitted to the office, except
             57185      for time spent outside of the United States and its territories; and
             57186          (ii) the background check of the individual is being conducted for a purpose other than
             57187      a purpose described in Subsection (1)(f).
             57188          (e) If an applicant described in Subsection (1)(a) spent time outside of the United States
             57189      and its territories during the five years immediately preceding the day on which the information
             57190      described in Subsection (1)(a) is submitted to the office, the office shall require the applicant to
             57191      submit documentation establishing whether the applicant was convicted of a crime during the
             57192      time that the applicant spent outside of the United States and its territories.
             57193          (f) Notwithstanding any other provision of this Subsection (1), an applicant described in
             57194      Subsection (1)(a) shall submit fingerprints for an FBI national criminal history records check,
             57195      through the Criminal Investigations and Technical Services Division, if the background check of
             57196      the applicant is being conducted for the purpose of:
             57197          (i) licensing a prospective foster home; or
             57198          (ii) approving a prospective adoptive placement of a child in state custody.
             57199          (g) In addition to the other requirements of this section, if the background check of an
             57200      applicant described in Subsection (1)(a) is being conducted for the purpose of licensing a
             57201      prospective foster home or approving a prospective adoptive placement of a child in state
             57202      custody, the office shall:
             57203          (i) check the child abuse and neglect registry in each state where each prospective foster
             57204      parent or prospective adoptive parent resided in the five years immediately preceding the day on
             57205      which the prospective foster parent or prospective adoptive parent applied to be a foster parent

             57206      or adoptive parent, to determine whether the prospective foster parent or prospective adoptive
             57207      parent is listed in the registry as having a substantiated or supported finding of child abuse or
             57208      neglect; and
             57209          (ii) check the child abuse and neglect registry in each state where each adult living in the
             57210      home of the prospective foster parent or prospective adoptive parent described in Subsection
             57211      (1)(g)(i) resided in the five years immediately preceding the day on which the prospective foster
             57212      parent or prospective adoptive parent applied to be a foster parent or adoptive parent, to
             57213      determine whether the adult is listed in the registry as having a substantiated or supported
             57214      finding of child abuse or neglect.
             57215          (h) The office shall make rules, in accordance with [Title 63, Chapter 46a] Title 63G,
             57216      Chapter 3, Utah Administrative Rulemaking Act, to implement the provisions of this Subsection
             57217      (1).
             57218          (2) The office shall approve a person for whom identifying information is submitted
             57219      under Subsection (1) to have direct access to children or vulnerable adults in the licensee
             57220      program if:
             57221          (a) (i) the person is found to have no criminal history record; or
             57222          (ii) (A) the only convictions in the person's criminal history record are misdemeanors or
             57223      infractions not involving any of the offenses described in Subsection (3); and
             57224          (B) the date of the last conviction under Subsection (2)(a)(ii)(A) is more than five years
             57225      before the date of the search;
             57226          (b) the person is not listed in the statewide database of the Division of Aging and Adult
             57227      Services created by Section 62A-3-311.1 ;
             57228          (c) juvenile court records do not show that a court made a substantiated finding, under
             57229      Section 78-3a-320 , that the person committed a severe type of child abuse or neglect;
             57230          (d) the person is not listed in the Licensing Information System of the Division of Child
             57231      and Family Services created by Section 62A-4a-1006 ;
             57232          (e) the person has not pled guilty or no contest to a pending charge for any:
             57233          (i) felony;

             57234          (ii) misdemeanor listed in Subsection (3); or
             57235          (iii) infraction listed in Subsection (3); and
             57236          (f) for a person described in Subsection (1)(g), the registry check described in
             57237      Subsection (1)(g) does not indicate that the person is listed in a child abuse and neglect registry
             57238      of another state as having a substantiated or supported finding of child abuse or neglect.
             57239          (3) Except as provided in Subsection (8), unless at least ten years have passed since the
             57240      date of conviction, the office may not approve a person to have direct access to children or
             57241      vulnerable adults in the licensee's human services program if that person has been convicted of
             57242      an offense, whether a felony, misdemeanor, or infraction, that is:
             57243          (a) identified as a sexual offense, domestic violence, lewdness, assault, or battery;
             57244          (b) a violation of any pornography law, including sexual exploitation of a minor;
             57245          (c) prostitution;
             57246          (d) included in:
             57247          (i) Title 76, Chapter 5, Offenses Against the Person;
             57248          (ii) Title 76, Chapter 5a, Sexual Exploitation of Children; or
             57249          (iii) Title 76, Chapter 7, Offenses Against the Family;
             57250          (e) a violation of Section 76-6-103 , aggravated arson;
             57251          (f) a violation of Section 76-6-203 , aggravated burglary;
             57252          (g) a violation of Section 76-6-302 , aggravated robbery; or
             57253          (h) a conviction for an offense committed outside of the state that, if committed in the
             57254      state, would constitute a violation of an offense described in Subsections (3)(d) through (g).
             57255          (4) (a) Except as provided in Subsection (8), if a person for whom identifying
             57256      information is submitted under Subsection (1) is not approved by the office under Subsection
             57257      (2) or (3) to have direct access to children or vulnerable adults in the licensee program, the
             57258      office shall conduct a comprehensive review of criminal and court records and related
             57259      circumstances if the reason the approval is not granted is due solely to one or more of the
             57260      following:
             57261          (i) a conviction for:

             57262          (A) any felony not listed in Subsection (3);
             57263          (B) any misdemeanor or infraction, not listed in Subsection (3), within five years of the
             57264      date of the search;
             57265          (C) a protective order or ex parte protective order violation under Section 76-5-108 or
             57266      a similar statute in another state; or
             57267          (D) any felony, misdemeanor, or infraction listed in Subsection (3) if at least ten years
             57268      have passed since the date of conviction;
             57269          (ii) a plea of guilty or no contest to a pending:
             57270          (A) felony;
             57271          (B) misdemeanor listed in Subsection (3); or
             57272          (C) infraction listed in Subsection (3);
             57273          (iii) the person is listed in the statewide database of the Division of Aging and Adult
             57274      Services created by Section 62A-3-311.1 ;
             57275          (iv) juvenile court records show that a court made a substantiated finding, under
             57276      Section 78-3a-320 , that the person committed a severe type of child abuse or neglect;
             57277          (v) the person is listed in the Licensing Information System of the Division of Child and
             57278      Family Services created by Section 62A-4a-1006 ; or
             57279          (vi) the person is listed in a child abuse or neglect registry of another state as having a
             57280      substantiated or supported finding of child abuse or neglect.
             57281          (b) The comprehensive review under Subsection (4)(a) shall include an examination of:
             57282          (i) the date of the offense or incident;
             57283          (ii) the nature and seriousness of the offense or incident;
             57284          (iii) the circumstances under which the offense or incident occurred;
             57285          (iv) the age of the perpetrator when the offense or incident occurred;
             57286          (v) whether the offense or incident was an isolated or repeated incident;
             57287          (vi) whether the offense or incident directly relates to abuse of a child or vulnerable
             57288      adult, including:
             57289          (A) actual or threatened, nonaccidental physical or mental harm;

             57290          (B) sexual abuse;
             57291          (C) sexual exploitation; and
             57292          (D) negligent treatment;
             57293          (vii) any evidence provided by the person of rehabilitation, counseling, or psychiatric
             57294      treatment received, or additional academic or vocational schooling completed, by the person;
             57295      and
             57296          (viii) any other pertinent information.
             57297          (c) At the conclusion of the comprehensive review under Subsection (4)(a), the office
             57298      shall approve the person who is the subject of the review to have direct access to children or
             57299      vulnerable adults, unless it finds that approval will likely create a risk of harm to a child or
             57300      vulnerable adult.
             57301          (d) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             57302      Administrative Rulemaking Act, the office may make rules, consistent with this chapter,
             57303      defining procedures for the comprehensive review described in this Subsection (4).
             57304          (5) (a) For purposes of this Subsection (5), "directly supervised" means that the person
             57305      being supervised is under the uninterrupted visual and auditory surveillance of the person doing
             57306      the supervising.
             57307          (b) A licensee may not permit any person to have direct access to a child or a vulnerable
             57308      adult unless, subject to Subsection (5)(c), that person is:
             57309          (i) associated with the licensee and:
             57310          (A) approved by the office to have direct access to children or vulnerable adults under
             57311      this section; or
             57312          (B) (I) the office has not determined whether to approve that person to have direct
             57313      access to children or vulnerable adults;
             57314          (II) the information described in Subsection (1)(a), relating to that person, is submitted
             57315      to the department; and
             57316          (III) that person is directly supervised by a person associated with the licensee who is
             57317      approved by the office to have direct access to children or vulnerable adults under this section;

             57318          (ii) (A) not associated with the licensee; and
             57319          (B) directly supervised by a person associated with the licensee who is approved by the
             57320      office to have direct access to children or vulnerable adults under this section;
             57321          (iii) the parent or guardian of the child or vulnerable adult; or
             57322          (iv) a person approved by the parent or guardian of the child or vulnerable adult to have
             57323      direct access to the child or vulnerable adult.
             57324          (c) Notwithstanding Subsection (5)(b), a person may not have direct access to a child
             57325      or a vulnerable adult if that person is prohibited by court order from having that access.
             57326          (6) (a) Within 30 days after receiving the identifying information for a person under
             57327      Subsection (1), the office shall give written notice to the person and to the licensee or applicant
             57328      with whom the person is associated of:
             57329          (i) the office's decision regarding its background screening clearance and findings; and
             57330          (ii) a list of any convictions found in the search.
             57331          (b) With the notice described in Subsection (6)(a), the office shall also give to the
             57332      person the details of any comprehensive review conducted under Subsection (4).
             57333          (c) If the notice under Subsection (6)(a) states that the person is not approved to have
             57334      direct access to children or vulnerable adults, the notice shall further advise the persons to
             57335      whom the notice is given that either the person or the licensee or applicant with whom the
             57336      person is associated, or both, may, under Subsection 62A-2-111 (2), request a hearing in the
             57337      department's Office of Administrative Hearings, to challenge the office's decision.
             57338          (d) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             57339      Administrative Rulemaking Act, the office shall make rules, consistent with this chapter:
             57340          (i) defining procedures for the challenge of its background screening decision described
             57341      in this Subsection (6); and
             57342          (ii) expediting the process for renewal of a license under the requirements of this section
             57343      and other applicable sections.
             57344          (7) Notwithstanding Subsection (1)(a), this section does not apply to an applicant for an
             57345      initial license, or license renewal, to operate a substance abuse program that provides services to

             57346      adults only.
             57347          (8) (a) Notwithstanding Subsections (2) through (4), the office may not approve or
             57348      license a person as a prospective foster parent or a prospective adoptive parent if the person has
             57349      been convicted of:
             57350          (i) a felony involving conduct that constitutes any of the following:
             57351          (A) child abuse, as described in Section 76-5-109 ;
             57352          (B) commission of domestic violence in the presence of a child, as described in Section
             57353      76-5-109.1 ;
             57354          (C) abuse or neglect of a disabled child, as described in Section 76-5-110 ;
             57355          (D) endangerment of a child, as described in Section 76-5-112.5 ;
             57356          (E) aggravated murder, as described in Section 76-5-202 ;
             57357          (F) murder, as described in Section 76-5-203 ;
             57358          (G) manslaughter, as described in Section 76-5-205 ;
             57359          (H) child abuse homicide, as described in Section 76-5-208 ;
             57360          (I) homicide by assault, as described in Section 76-5-209 ;
             57361          (J) kidnapping, as described in Section 76-5-301 ;
             57362          (K) child kidnapping, as described in Section 76-5-301.1 ;
             57363          (L) aggravated kidnapping, as described in Section 76-5-302 ;
             57364          (M) an offense described in Title 76, Chapter 5, Part 4, Sexual Offenses;
             57365          (N) an offense described in Title 76, Chapter 5a, Sexual Exploitation of Children;
             57366          (O) aggravated arson, as described in Section 76-6-103 ;
             57367          (P) aggravated burglary, as described in Section 76-6-203 ;
             57368          (Q) aggravated robbery, as described in Section 76-6-302 ; or
             57369          (R) domestic violence, as described in Section 77-36-1 ; or
             57370          (ii) an offense committed outside the state that, if committed in the state, would
             57371      constitute a violation of an offense described in Subsection (8)(a)(i).
             57372          (b) Notwithstanding Subsections (2) through (4), the office may not approve or license
             57373      a person as a prospective foster parent or a prospective adoptive parent if, within the five years

             57374      immediately preceding the day on which the person would otherwise be approved or licensed,
             57375      the person has been convicted of a felony involving conduct that constitutes any of the
             57376      following:
             57377          (i) aggravated assault, as described in Section 76-5-103 ;
             57378          (ii) aggravated assault by a prisoner, as described in Section 76-5-103.5 ;
             57379          (iii) mayhem, as described in Section 76-5-105 ;
             57380          (iv) an offense described in Title 58, Chapter 37, Utah Controlled Substances Act;
             57381          (v) an offense described in Title 58, Chapter 37a, Utah Drug Paraphernalia Act;
             57382          (vi) an offense described in Title 58, Chapter 37b, Imitation Controlled Substances Act;
             57383          (vii) an offense described in Title 58, Chapter 37c, Utah Controlled Substance
             57384      Precursor Act; or
             57385          (viii) an offense described in Title 58, Chapter 37d, Clandestine Drug Lab Act.
             57386          Section 1119. Section 62A-2-121 is amended to read:
             57387           62A-2-121. Access to abuse and neglect information.
             57388          (1) For purposes of this section:
             57389          (a) "Direct service worker" is as defined in Section 62A-5-101 .
             57390          (b) "Personal care attendant" is as defined in Section 62A-3-101 .
             57391          (2) With respect to a licensee, a certified local inspector applicant, a direct service
             57392      worker, or a personal care attendant, the department may access only the Licensing Information
             57393      System of the Division of Child and Family Services created by Section 62A-4a-1006 and
             57394      juvenile court records under Subsection 78-3a-320 (6), for the purpose of:
             57395          (a) (i) determining whether a person associated with a licensee, with direct access to
             57396      children:
             57397          (A) is listed in the Licensing Information System; or
             57398          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or
             57399      neglect under Subsections 78-3a-320 (1) and (2); and
             57400          (ii) informing a licensee that a person associated with the licensee:
             57401          (A) is listed in the Licensing Information System; or

             57402          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or
             57403      neglect under Subsections 78-3a-320 (1) and (2);
             57404          (b) (i) determining whether a certified local inspector applicant:
             57405          (A) is listed in the Licensing Information System; or
             57406          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or
             57407      neglect under Subsections 78-3a-320 (1) and (2); and
             57408          (ii) informing a local government that a certified local inspector applicant:
             57409          (A) is listed in the Licensing Information System; or
             57410          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or
             57411      neglect under Subsections 78-3a-320 (1) and (2);
             57412          (c) (i) determining whether a direct service worker:
             57413          (A) is listed in the Licensing Information System; or
             57414          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or
             57415      neglect under Subsections 78-3a-320 (1) and (2); and
             57416          (ii) informing a direct service worker or the direct service worker's employer that the
             57417      direct service worker:
             57418          (A) is listed in the Licensing Information System; or
             57419          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or
             57420      neglect under Subsections 78-3a-320 (1) and (2); or
             57421          (d) (i) determining whether a personal care attendant:
             57422          (A) is listed in the Licensing Information System; or
             57423          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or
             57424      neglect under Subsections 78-3a-320 (1) and (2); and
             57425          (ii) informing a person described in Subsections 62A-3-101 (9)(a)(i) through (iv) that a
             57426      personal care attendant:
             57427          (A) is listed in the Licensing Information System; or
             57428          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or
             57429      neglect under Subsections 78-3a-320 (1) and (2).

             57430          (3) Notwithstanding Subsection (2), the department may access the Division of Child
             57431      and Family Service's Management Information System under Section 62A-4a-1003 :
             57432          (a) for the purpose of licensing and monitoring foster parents; and
             57433          (b) for the purposes described in Subsection 62A-4a-1003 (1)(d).
             57434          (4) After receiving identifying information for a person under Subsection 62A-2-120 (1),
             57435      the department shall process the information for the purposes described in Subsection (2).
             57436          (5) The department shall adopt rules under [Title 63, Chapter 46a] Title 63G, Chapter
             57437      3, Utah Administrative Rulemaking Act, consistent with this chapter, defining the circumstances
             57438      under which a person may have direct access or provide services to children when:
             57439          (a) the person is listed in the Licensing Information System of the Division of Child and
             57440      Family Services created by Section 62A-4a-1006 ; or
             57441          (b) juvenile court records show that a court made a substantiated finding under Section
             57442      78-3a-320 , that the person committed a severe type of child abuse or neglect.
             57443          Section 1120. Section 62A-2-122 is amended to read:
             57444           62A-2-122. Access to vulnerable adult abuse and neglect information.
             57445          (1) For purposes of this section:
             57446          (a) "direct service worker" is as defined in Section 62A-5-101 ; and
             57447          (b) "personal care attendant" is as defined in Section 62A-3-101 .
             57448          (2) With respect to a licensee, a certified local inspector applicant, a direct service
             57449      worker, or a personal care attendant, the department may access the data base created by
             57450      Section 62A-3-311.1 for the purpose of:
             57451          (a) (i) determining whether a person associated with a licensee, with direct access to
             57452      vulnerable adults, has a substantiated finding of:
             57453          (A) abuse;
             57454          (B) neglect; or
             57455          (C) exploitation; and
             57456          (ii) informing a licensee that a person associated with the licensee has a substantiated
             57457      finding of:

             57458          (A) abuse;
             57459          (B) neglect; or
             57460          (C) exploitation;
             57461          (b) (i) determining whether a certified local inspector applicant has a substantiated
             57462      finding of:
             57463          (A) abuse;
             57464          (B) neglect; or
             57465          (C) exploitation; and
             57466          (ii) informing a local government that a certified local inspector applicant has a
             57467      substantiated finding of:
             57468          (A) abuse;
             57469          (B) neglect; or
             57470          (C) exploitation; or
             57471          (c) (i) determining whether a direct service worker has a substantiated finding of:
             57472          (A) abuse;
             57473          (B) neglect; or
             57474          (C) exploitation; and
             57475          (ii) informing a direct service worker or the direct service worker's employer that the
             57476      direct service worker has a substantiated finding of:
             57477          (A) abuse;
             57478          (B) neglect; or
             57479          (C) exploitation; or
             57480          (d) (i) determining whether a personal care attendant has a substantiated finding of:
             57481          (A) abuse;
             57482          (B) neglect; or
             57483          (C) exploitation; and
             57484          (ii) informing a person described in Subsections 62A-3-101 (9)(a)(i) through (iv) that a
             57485      personal care attendant has a substantiated finding of:

             57486          (A) abuse;
             57487          (B) neglect; or
             57488          (C) exploitation;
             57489          (3) After receiving identifying information for a person under Subsection 62A-2-120 (1),
             57490      the department shall process the information for the purposes described in Subsection (2).
             57491          (4) The department shall adopt rules under [Title 63, Chapter 46a] Title 63G, Chapter
             57492      3, Utah Administrative Rulemaking Act, consistent with this chapter and consistent with Section
             57493      62A-3-311.1 , defining the circumstances under which a person may have direct access or
             57494      provide services to vulnerable adults when the person is listed in the statewide database of the
             57495      Division of Aging and Adult Services created by Section 62A-3-311.1 as having a substantiated
             57496      finding of abuse, neglect, or exploitation.
             57497          Section 1121. Section 62A-3-104 is amended to read:
             57498           62A-3-104. Authority of division.
             57499          (1) The division is the sole state agency, as defined by the Older Americans Act of
             57500      1965, 42 U.S.C. 3001 et seq., to:
             57501          (a) serve as an effective and visible advocate for the aging and adult population of this
             57502      state;
             57503          (b) develop and administer a state plan under the policy direction of the board; and
             57504          (c) take primary responsibility for state activities relating to provisions of the Older
             57505      Americans Act of 1965, as amended.
             57506          (2) (a) The division has authority to designate:
             57507          (i) planning and service areas for the state; and
             57508          (ii) an area agency on aging within each planning and service area to design and
             57509      implement a comprehensive and coordinated system of services and programs for the aged
             57510      within appropriations from the Legislature.
             57511          (b) Designation as an area agency on aging may be withdrawn:
             57512          (i) upon request of the area agency on aging; or
             57513          (ii) upon noncompliance with the provisions of the:

             57514          (A) Older Americans Act of 1965, 42 U.S.C. 3001 et seq.;
             57515          (B) federal regulations enacted under the Older Americans Act of 1965, 42 U.S.C.
             57516      3001 et seq.;
             57517          (C) provisions of this chapter; or
             57518          (D) rules, policies, or procedures established by the division.
             57519          (3) (a) The division has the authority to designate:
             57520          (i) planning and service areas for the state; and
             57521          (ii) subject to Subsection (3)(b), an area agency on high risk adults within each planning
             57522      and service area to design and implement a comprehensive and coordinated system of case
             57523      management and programs for high risk adults within appropriations from the Legislature.
             57524          (b) For purposes of Subsection (3)(a)(ii), before October 1, 1998, the division shall
             57525      designate as the area agency on high risk adults in a planning and service area:
             57526          (i) the area agency on aging that operates within the same geographic area if that
             57527      agency requests, before July 1, 1998, to expand that agency's current contract with the division
             57528      to include the responsibility of:
             57529          (A) being the area agency on high risk adults; or
             57530          (B) operating the area agency on high risk adults:
             57531          (I) through joint cooperation with one or more existing area agencies on aging; and
             57532          (II) without reducing geographical coverage in any service area; or
             57533          (ii) a public or private nonprofit agency or office if the area agency on aging that
             57534      operates within the same geographic area has not made a request in accordance with Subsection
             57535      (3)(b)(i).
             57536          (c) (i) Area agencies on high risk adults shall be in operation before July 1, 1999.
             57537          (ii) The division's efforts to establish area agencies on high risk adults shall start with
             57538      counties with a population of more than 150,000 people.
             57539          (d) Designation as an area agency on high risk adults may be withdrawn:
             57540          (i) upon request by the area agency; or
             57541          (ii) upon noncompliance with:

             57542          (A) state law;
             57543          (B) federal law; or
             57544          (C) rules, policies, or procedures established by the division.
             57545          (4) (a) The division may, by following the procedures and requirements of [Title 63,
             57546      Chapter 38e] Title 63J, Chapter 5, Federal Funds Procedures:
             57547          (i) seek federal grants, loans, or participation in federal programs; and
             57548          (ii) receive and distribute state and federal funds for the division's programs and services
             57549      to the aging and adult populations of the state.
             57550          (b) The division may not disburse public funds to a personal care attendant as payment
             57551      for personal services rendered to an aged person or high risk adult, except as provided in
             57552      Section 62A-3-104.3 .
             57553          (5) The division has authority to establish, either directly or by contract, programs of
             57554      advocacy, monitoring, evaluation, technical assistance, and public education to enhance the
             57555      quality of life for aging and adult citizens of the state.
             57556          (6) In accordance with the rules of the division and [Title 63, Chapter 56] Title 63G,
             57557      Chapter 6, Utah Procurement Code, the division may contract with:
             57558          (a) the governing body of an area agency to provide a comprehensive program of
             57559      services; or
             57560          (b) public and private entities for special services.
             57561          (7) The division has authority to provide for collection, compilation, and dissemination
             57562      of information, statistics, and reports relating to issues facing aging and adult citizens.
             57563          (8) The division has authority to prepare and submit reports regarding the operation and
             57564      administration of the division to the department, the Legislature, and the governor, as
             57565      requested.
             57566          (9) The division shall:
             57567          (a) implement and enforce policies established by the board governing all aspects of the
             57568      division's programs for aging and adult persons in the state;
             57569          (b) in order to ensure compliance with all applicable state and federal statutes, policies,

             57570      and procedures, monitor and evaluate programs provided by or under contract with:
             57571          (i) the division;
             57572          (ii) area agencies; and
             57573          (iii) an entity that receives funds from an area agency;
             57574          (c) examine expenditures of public funds;
             57575          (d) withhold funds from programs based on contract noncompliance;
             57576          (e) review and approve plans of area agencies in order to ensure:
             57577          (i) compliance with division policies; and
             57578          (ii) a statewide comprehensive program;
             57579          (f) in order to further programs for aging and adult persons and prevent duplication of
             57580      services, promote and establish cooperative relationships with:
             57581          (i) state and federal agencies;
             57582          (ii) social and health agencies;
             57583          (iii) education and research organizations; and
             57584          (iv) other related groups;
             57585          (g) advocate for the aging and adult populations;
             57586          (h) promote and conduct research on the problems and needs of aging and adult
             57587      persons;
             57588          (i) submit recommendations for changes in policies, programs, and funding to the:
             57589          (i) governor; and
             57590          (ii) Legislature; and
             57591          (j) (i) accept contributions to and administer the funds contained in the "Out and
             57592      About" Homebound Transportation Assistance Fund created in Section 62A-3-110 ; and
             57593          (ii) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             57594      Administrative Rulemaking Act, to facilitate the administration of the "Out and About"
             57595      Homebound Transportation Assistance Fund in accordance with Section 62A-3-110 .
             57596          Section 1122. Section 62A-3-104.1 is amended to read:
             57597           62A-3-104.1. Powers and duties of area agencies.

             57598          (1) An area agency that provides services to an aged person, or a high risk adult shall
             57599      within the area agency's respective jurisdiction:
             57600          (a) advocate by monitoring, evaluating, and providing input on all policies, programs,
             57601      hearings, and levies that affect a person described in this Subsection (1);
             57602          (b) design and implement a comprehensive and coordinated system of services within a
             57603      designated planning and service area;
             57604          (c) conduct periodic reviews and evaluations of needs and services;
             57605          (d) prepare and submit to the division plans for funding and service delivery for services
             57606      within the designated planning and service area;
             57607          (e) establish, either directly or by contract, programs licensed under Chapter 2,
             57608      Licensure of Programs and Facilities;
             57609          (f) (i) appoint an area director;
             57610          (ii) prescribe the area director's duties; and
             57611          (iii) provide adequate and qualified staff to carry out the area plan described in
             57612      Subsection (1)(d);
             57613          (g) establish rules not contrary to policies of the board and rules of the division,
             57614      regulating local services and facilities;
             57615          (h) operate other services and programs funded by sources other than those
             57616      administered by the division;
             57617          (i) establish mechanisms to provide direct citizen input, including an area agency
             57618      advisory council with a majority of members who are eligible for services from the area agency;
             57619          (j) establish fee schedules; and
             57620          (k) comply with the requirements and procedures of:
             57621          (i) Title 11, Chapter 13, Interlocal Cooperation Act; and
             57622          (ii) Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal
             57623      Organizations, and Other Local Entities Act.
             57624          (2) Before disbursing any public funds, an area agency shall require that all entities
             57625      receiving any public funds agree in writing that:

             57626          (a) the division may examine the entity's program and financial records; and
             57627          (b) the auditor of the local area agency may examine and audit the entity's program and
             57628      financial records, if requested by the local area agency.
             57629          (3) An area agency on aging may not disburse public funds to a personal care attendant
             57630      as payment for personal services rendered to an aged person or high risk adult, except as
             57631      provided in Section 62A-3-104.3 .
             57632          (4) (a) For the purpose of providing services pursuant to this part, a local area agency
             57633      may receive:
             57634          (i) property;
             57635          (ii) grants;
             57636          (iii) gifts;
             57637          (iv) supplies;
             57638          (v) materials;
             57639          (vi) any benefit derived from the items described in Subsections (4)(a)(i) through (v);
             57640      and
             57641          (vii) contributions.
             57642          (b) If a gift is conditioned upon the gift's use for a specified service or program, the gift
             57643      shall be used for the specific service or program.
             57644          (5) (a) Area agencies shall award all public funds in compliance with:
             57645          (i) the requirements of [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement
             57646      Code; or
             57647          (ii) a county procurement ordinance that requires procurement procedures similar to
             57648      those described in Subsection (5)(a)(i).
             57649          (b) (i) If all initial bids on a project are rejected, the area agency shall publish a new
             57650      invitation to bid.
             57651          (ii) If no satisfactory bid is received by the area agency described in Subsection
             57652      (5)(b)(i), when the bids received from the second invitation are opened the area agency may
             57653      execute a contract without requiring competitive bidding.

             57654          (c) (i) An area agency need not comply with the procurement provisions of this section
             57655      when it disburses public funds to another governmental entity.
             57656          (ii) For purposes of this Subsection (5)(c), "governmental entity" means any political
             57657      subdivision or institution of higher education of the state.
             57658          (d) (i) Contracts awarded by an area agency shall be for a:
             57659          (A) fixed amount; and
             57660          (B) limited period.
             57661          (ii) The contracts described in Subsection (5)(d)(i) may be modified due to changes in
             57662      available funding for the same contract purpose without competition.
             57663          (6) Local area agencies shall comply with:
             57664          (a) applicable state and federal:
             57665          (i) statutes;
             57666          (ii) policies; and
             57667          (iii) audit requirements; and
             57668          (b) directives resulting from an audit described in Subsection (6)(a)(iii).
             57669          Section 1123. Section 62A-3-106.5 is amended to read:
             57670           62A-3-106.5. Agency responsible to investigate and provide services.
             57671          (1) For purposes of this section, "responsible agency" means the agency responsible to
             57672      investigate or provide services in a particular case under the rules established under Subsection
             57673      (2)(a).
             57674          (2) In order to avoid duplication in responding to a report of alleged abuse, neglect, or
             57675      exploitation of a vulnerable adult who resides in a long-term care facility, the division shall make
             57676      rules, in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             57677      Rulemaking Act, that establish procedures to:
             57678          (a) determine whether Adult Protective Services or the Long-Term Care Ombudsman
             57679      Program will be responsible to investigate or provide services in a particular case; and
             57680          (b) determine whether, and under what circumstances, the agency described in
             57681      Subsection (2)(a) that is not the responsible agency will provide assistance to the responsible

             57682      agency in a particular case.
             57683          (3) Notwithstanding Subsection (2), or the rules made pursuant to Subsection (2),
             57684      Adult Protective Services shall be the agency within the division that is responsible for receiving
             57685      all reports of alleged abuse, neglect, or exploitation of a vulnerable adult as provided in Section
             57686      62A-3-305 .
             57687          Section 1124. Section 62A-3-109 is amended to read:
             57688           62A-3-109. Adjudicative proceedings.
             57689          The board shall comply with the procedures and requirements of [Title 63, Chapter
             57690      46b,] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative proceedings.
             57691          Section 1125. Section 62A-3-205 is amended to read:
             57692           62A-3-205. Procedures -- Adjudicative proceedings.
             57693          The long-term care ombudsman shall comply with the procedures and requirements of
             57694      [Title 63, Chapter 46b,] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
             57695      proceedings.
             57696          Section 1126. Section 62A-3-311 is amended to read:
             57697           62A-3-311. Requests for information.
             57698          Requests for information contained in an adult protection case file shall be made in
             57699      writing to Adult Protective Services. Requests should indicate the specific information
             57700      requested and the reason for the request. Notwithstanding the provisions of [Title 63, Chapter
             57701      2] Title 63G, Chapter 2, Government Records Access and Management Act, nothing may be
             57702      released in response to a request except as provided in Section 62A-3-312 .
             57703          Section 1127. Section 62A-3-311.1 is amended to read:
             57704           62A-3-311.1. Statewide data base -- Restricted use and access.
             57705          (1) The division shall maintain a data base for reports of vulnerable adult abuse, neglect,
             57706      or exploitation made pursuant to this part.
             57707          (2) The data base shall include:
             57708          (a) the names and identifying data of the abused, neglected, or exploited adult and the
             57709      reported abuser;

             57710          (b) information regarding whether or not the abuse, neglect, or exploitation was
             57711      substantiated or unsubstantiated; and
             57712          (c) any other information that may be helpful in furthering the purposes of this part, as
             57713      determined by the division, subject to the restrictions of Section 62A-3-306 .
             57714          (3) Information obtained from the data base may be used only for:
             57715          (a) compiling statistical summaries that do not include names or other identifying data;
             57716          (b) granting or denying licenses or other grants of privilege by the department where
             57717      identification as a possible adult abuser may be relevant to the privilege in question, in
             57718      accordance with Subsection (4); and
             57719          (c) licensing purposes by the Bureau of Licensing within the Department of Health, as
             57720      provided for in Section 26-21-9.5 , in determining whether a person associated with a covered
             57721      health care facility who provides direct care to vulnerable adults has a substantiated finding of
             57722      vulnerable adult abuse, neglect, or exploitation if identification as a possible perpetrator is
             57723      relevant to the employment activities of that person.
             57724          (4) (a) A license or privilege may not be denied under Subsection (3) solely on the basis
             57725      of information in the data base.
             57726          (b) Before a license or privilege may be denied under Subsection (3), the department
             57727      taking the action shall conduct a review and provide the person making application for the
             57728      license or privilege with notice and an opportunity to be heard in accordance with [Title 63,
             57729      Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             57730          Section 1128. Section 62A-3-312 is amended to read:
             57731           62A-3-312. Access to information in data base.
             57732          The records and information contained in the data base and the adult protection case file
             57733      are protected records under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             57734      Access and Management Act. However, notwithstanding the provisions of [Title 63, Chapter
             57735      2] Title 63G, Chapter 2, Government Records Access and Management Act, information and
             57736      records contained in the data base and in the adult protection case file are not open to public
             57737      inspection. Pertinent parts of the data base and the adult protection case file shall be made

             57738      available to law enforcement agencies, the attorney general's office, and county or district
             57739      attorney's offices and may be made available, at the discretion of the division, to:
             57740          (1) subjects of a report as follows:
             57741          (a) a vulnerable adult named in a report as a victim of abuse, neglect, or exploitation, or
             57742      that adult's attorney or legal guardian; and
             57743          (b) a person identified in a report as having abused, neglected, or exploited a vulnerable
             57744      adult, or that person's attorney; and
             57745          (2) persons involved in an evaluation or assessment of the vulnerable adult as follows:
             57746          (a) an employee of the department who is responsible for the evaluation or assessment
             57747      of an adult protection case file;
             57748          (b) a multidisciplinary team approved by the division to assist Adult Protective Services
             57749      in the evaluation, assessment, and disposition of a vulnerable adult case;
             57750          (c) an authorized person or agency providing services to or responsible for the care,
             57751      treatment, assessment, or supervision of a vulnerable adult named in the report as a victim,
             57752      when in the opinion of the division that information will assist in the protection of or provide
             57753      other benefits to the victim;
             57754          (d) a licensing authority for a facility, program, or person providing care to a victim
             57755      named in a report;
             57756          (e) the person or entity that reported the abuse, neglect, or exploitation, as considered
             57757      necessary on an individual case basis by the division; and
             57758          (f) legally authorized protection and advocacy agencies when they represent a victim or
             57759      have been requested by the division to assist on a case.
             57760          Section 1129. Section 62A-4a-102 is amended to read:
             57761           62A-4a-102. Board of Child and Family Services.
             57762          (1) (a) The Board of Child and Family Services, created in accordance with this section
             57763      and with Sections 62A-1-105 and 62A-1-107 , is responsible for establishing by rule, under
             57764      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the policy
             57765      of the division in accordance with the requirements of this chapter and Title 78, Chapter 3a,

             57766      Juvenile Court Act of 1996, regarding abuse, neglect, and dependency proceedings, and
             57767      domestic violence services. The board is responsible to see that the legislative purposes for the
             57768      division are carried out.
             57769          (b) (i) The governor shall appoint, with the consent of the Senate, 12 members to the
             57770      Board of Child and Family Services.
             57771          (ii) Except as required by Subsection (1)(b)(iii), as terms of current board members
             57772      expire, the governor shall appoint each new member or reappointed member to a four-year
             57773      term.
             57774          (iii) Notwithstanding the requirements of Subsection (1)(b)(ii), the governor shall, at
             57775      the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             57776      board members are staggered so that approximately half of the board is appointed every two
             57777      years.
             57778          (c) The board shall include:
             57779          (i) two members who are or have been consumers;
             57780          (ii) two members who are actively involved in children's issues specifically related to
             57781      abuse and neglect;
             57782          (iii) a licensed foster parent;
             57783          (iv) a recognized expert in the social, developmental, and mental health needs of
             57784      children;
             57785          (v) a physician licensed to practice medicine in this state who is:
             57786          (A) a board certified pediatrician; and
             57787          (B) an expert in child abuse and neglect;
             57788          (vi) a representative of private residential treatment facilities; and
             57789          (vii) an adult relative of a child who is or has been in the foster care system.
             57790          (d) Seven members of the board are necessary to constitute a quorum at any meeting.
             57791          (e) When a vacancy occurs in the membership for any reason, the replacement shall be
             57792      appointed for the unexpired term.
             57793          (2) (a) A member shall receive no compensation or benefits for the member's services,

             57794      but may receive per diem and expenses incurred in the performance of the member's official
             57795      duties at the rates established by the Division of Finance under Sections 63A-3-106 and
             57796      63A-3-107 .
             57797          (b) A member may decline to receive per diem and expenses for the member's service.
             57798          (3) The board shall:
             57799          (a) approve fee schedules for programs within the division;
             57800          (b) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             57801      Administrative Rulemaking Act, establish, by rule, policies to ensure that private citizens,
             57802      consumers, foster parents, private contract providers, allied state and local agencies, and others
             57803      are provided with an opportunity to comment and provide input regarding any new policy or
             57804      proposed revision of an existing policy; and
             57805          (c) provide a mechanism for:
             57806          (i) systematic and regular review of existing policy; and
             57807          (ii) consideration of policy changes proposed by the persons and agencies described in
             57808      Subsection (3)(b).
             57809          (4) (a) The board shall establish policies for the determination of eligibility for services
             57810      offered by the division in accordance with this chapter.
             57811          (b) The division may, by rule, establish eligibility standards for consumers.
             57812          (5) The board shall adopt and maintain rules and policies regarding placement for
             57813      adoption or foster care that are consistent with, and no more restrictive than, applicable
             57814      statutory provisions.
             57815          Section 1130. Section 62A-4a-112 is amended to read:
             57816           62A-4a-112. Request to examine family services payment.
             57817          (1) An individual who is a taxpayer and resident of this state and who desires to
             57818      examine a payment for services offered by the division in accordance with this chapter, shall
             57819      sign a statement using a form prescribed by the division. That statement shall include the
             57820      assertion that the individual is a taxpayer and a resident, and shall include a commitment that
             57821      any information obtained will not be used for commercial or political purposes. No partial or

             57822      complete list of names, addresses, or amounts of payment may be made by any individual under
             57823      this subsection, and none of that information may be removed from the offices of the division.
             57824          (2) The board shall, after due consideration of the public interest, define the nature of
             57825      confidential information to be safeguarded by the division and shall establish policies and rules
             57826      to govern the custody and disclosure of confidential information, as well as to provide access to
             57827      information regarding payments for services offered by the division.
             57828          (3) This section does not prohibit the division or its agents, or individuals, commissions,
             57829      or agencies duly authorized for the purpose, from making special studies or from issuing or
             57830      publishing statistical material and reports of a general character. This section does not prohibit
             57831      the division or its representatives or employees from conveying or providing to local, state, or
             57832      federal governmental agencies written information that would affect an individual's eligibility or
             57833      ineligibility for financial service, or other beneficial programs offered by that governmental
             57834      agency. Access to the division's program plans, policies, and records, as well as consumer
             57835      records and data, is governed by [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             57836      Records Access and Management Act.
             57837          (4) This section does not apply to a board member while acting in [his] the board
             57838      member's official capacity as a board member.
             57839          (5) Violation of this section is a class B misdemeanor.
             57840          Section 1131. Section 62A-4a-115 is amended to read:
             57841           62A-4a-115. Administrative proceedings.
             57842          The department, board, and division shall comply with the procedures and requirements
             57843      of [Title 63, Chapter 46b,] Title 63G, Chapter 4, Administrative Procedures Act, in their
             57844      adjudicative proceedings.
             57845          Section 1132. Section 62A-4a-119 is amended to read:
             57846           62A-4a-119. Division required to produce "family impact statement" with regard
             57847      to policies and rules.
             57848          Beginning May 1, 2000, whenever the division establishes a rule, in accordance with
             57849      [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, or the

             57850      board establishes any policy in accordance with its statutory authority, those processes shall
             57851      include an assessment of the impact of that rule or policy on families. Those assessments shall
             57852      determine the impact of the rule or policy on the authority of parents to oversee the care,
             57853      supervision, upbringing, and education of children in the parents' custody. The division shall
             57854      publish a family impact statement describing those assessments and determinations, within 90
             57855      days of the establishment of each rule or policy.
             57856          Section 1133. Section 62A-4a-120 is amended to read:
             57857           62A-4a-120. Accommodation of moral and religious beliefs and culture.
             57858          (1) The division shall adopt rules in accordance with [Title 63, Chapter 46a] Title 63G,
             57859      Chapter 3, Utah Administrative Rulemaking Act, and establish procedures to accommodate the
             57860      moral and religious beliefs, and culture, of the minors and families it serves, including:
             57861          (a) the immediate family and other relatives of a minor in any type of custody or
             57862      otherwise under the jurisdiction of the court;
             57863          (b) foster and other out-of-home placement families; and
             57864          (c) adoptive families.
             57865          (2) The accommodation under Subsection (1) applies to placements, treatment plans,
             57866      services, and other activities of the division.
             57867          Section 1134. Section 62A-4a-206 is amended to read:
             57868           62A-4a-206. Process for removal of a child from foster family -- Procedural due
             57869      process.
             57870          (1) (a) The Legislature finds that, except with regard to a child's natural parent or legal
             57871      guardian, a foster family has a very limited but recognized interest in its familial relationship
             57872      with a foster child who has been in the care and custody of that family. In making
             57873      determinations regarding removal of a child from a foster home, the division may not dismiss
             57874      the foster family as a mere collection of unrelated individuals.
             57875          (b) The Legislature finds that children in the temporary custody and custody of the
             57876      division are experiencing multiple changes in foster care placements with little or no
             57877      documentation, and that numerous studies of child growth and development emphasize the

             57878      importance of stability in foster care living arrangements.
             57879          (c) For the reasons described in Subsections (1)(a) and (b), the division shall provide
             57880      procedural due process for a foster family prior to removal of a foster child from their home,
             57881      regardless of the length of time the child has been in that home, unless removal is for the
             57882      purpose of:
             57883          (i) returning the child to the child's natural parent or legal guardian;
             57884          (ii) immediately placing the child in an approved adoptive home;
             57885          (iii) placing the child with a relative, as defined in Subsection 78-3a-307 (5)(d), who
             57886      obtained custody or asserted an interest in the child within the preference period described in
             57887      Subsection 78-3a-307 (8); or
             57888          (iv) placing an Indian child in accordance with preplacement preferences and other
             57889      requirements described in the Indian Child Welfare Act, 25 U.S.C. Sec. 1915.
             57890          (2) (a) The division shall maintain and utilize due process procedures for removal of a
             57891      foster child from a foster home, in accordance with the procedures and requirements of [Title
             57892      63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             57893          (b) Those procedures shall include requirements for:
             57894          (i) personal communication with and explanation to foster parents prior to removal of
             57895      the child; and
             57896          (ii) an opportunity for foster parents to present their information and concerns to the
             57897      division and to request a review by a third party neutral fact finder prior to removal of the child.
             57898          (c) If the division determines that there is a reasonable basis to believe that the child is
             57899      in danger or that there is a substantial threat of danger to the health or welfare of the child, it
             57900      shall place the child in emergency foster care during the pendency of the procedures described
             57901      in this subsection, instead of making another foster care placement.
             57902          (3) If the division removes a child from a foster home based upon the child's statement
             57903      alone, the division shall initiate and expedite the processes described in Subsection (2). The
             57904      division may take no formal action with regard to that foster parent's license until after those
             57905      processes, in addition to any other procedure or hearing required by law, have been completed.

             57906          (4) When a complaint is made to the division by a foster child against a foster parent,
             57907      the division shall, within 30 business days, provide the foster parent with information regarding
             57908      the specific nature of the complaint, the time and place of the alleged incident, and who was
             57909      alleged to have been involved.
             57910          (5) Whenever the division places a child in a foster home, it shall provide the foster
             57911      parents with:
             57912          (a) notification of the requirements of this section;
             57913          (b) a written description of the procedures enacted by the division pursuant to
             57914      Subsection (2) and how to access those processes; and
             57915          (c) written notification of the foster parents' ability to petition the juvenile court directly
             57916      for review of a decision to remove a foster child who has been in their custody for 12 months or
             57917      longer, in accordance with the limitations and requirements of Section 78-3a-315 .
             57918          (6) The requirements of this section do not apply to the removal of a child based on a
             57919      foster parent's request for that removal.
             57920          Section 1135. Section 62A-4a-207 is amended to read:
             57921           62A-4a-207. Child Welfare Legislative Oversight Panel -- Responsibilities.
             57922          (1) (a) There is created the Child Welfare Legislative Oversight Panel composed of the
             57923      following members:
             57924          (i) two members of the Senate, one from the majority party and one from the minority
             57925      party, appointed by the president of the Senate; and
             57926          (ii) three members of the House of Representatives, two from the majority party and
             57927      one from the minority party, appointed by the speaker of the House of Representatives.
             57928          (b) Members of the panel shall serve for two-year terms, or until their successors are
             57929      appointed.
             57930          (c) A vacancy exists whenever a member ceases to be a member of the Legislature, or
             57931      when a member resigns from the panel. Vacancies shall be filled by the appointing authority,
             57932      and the replacement shall fill the unexpired term.
             57933          (2) The president of the Senate shall designate one of the senators appointed to the

             57934      panel under Subsection (1) as the Senate chair of the panel. The speaker of the House of
             57935      Representatives shall designate one of the representatives appointed to the panel under
             57936      Subsection (1) as the House chair of the panel.
             57937          (3) The panel shall follow the interim committee rules established by the Legislature.
             57938          (4) The panel shall:
             57939          (a) examine and observe the process and execution of laws governing the child welfare
             57940      system by the executive branch and the judicial branch;
             57941          (b) upon request, receive testimony from the public, the juvenile court, and from all
             57942      state agencies involved with the child welfare system including, but not limited to, the division,
             57943      other offices and agencies within the department, the attorney general's office, the Office of the
             57944      Guardian Ad Litem Director, and school districts;
             57945          (c) before October 1, 2002, and before October 1 of each year thereafter receive
             57946      reports from the division, the attorney general, and the judicial branch identifying the cases not
             57947      in compliance with the time limits established in Section 78-3a-308 , regarding pretrial and
             57948      adjudication hearings, Section 78-3a-311 , regarding dispositional hearings and reunification
             57949      services, and Section 78-3a-312 , regarding permanency hearings and petitions for termination,
             57950      and the reasons for the noncompliance;
             57951          (d) receive recommendations from, and make recommendations to the governor, the
             57952      Legislature, the attorney general, the division, the Office of the Guardian Ad Litem Director, the
             57953      juvenile court, and the public;
             57954          (e) (i) receive reports from the executive branch and the judicial branch on budgetary
             57955      issues impacting the child welfare system; and
             57956          (ii) recommend, as it considers advisable, budgetary proposals to the Health and Human
             57957      Services Joint Appropriations Subcommittee, the Executive Offices and Criminal Justice
             57958      Appropriations Subcommittee, and the Executive Appropriations Committee, which
             57959      recommendation should be made before December 1 of each year;
             57960          (f) study and recommend proposed changes to laws governing the child welfare system;
             57961          (g) study actions the state can take to preserve, unify, and strengthen the child's family

             57962      ties whenever possible in the child's best interest, including recognizing the constitutional rights
             57963      and claims of parents whenever those family ties are severed or infringed;
             57964          (h) perform such other duties related to the oversight of the child welfare system as the
             57965      panel considers appropriate; and
             57966          (i) annually report its findings and recommendations to the president of the Senate, the
             57967      speaker of the House of Representatives, the Health and Human Services Interim Committee,
             57968      and the Judiciary Interim Committee.
             57969          (5) (a) The panel has authority to review and discuss individual cases.
             57970          (b) When an individual case is discussed, the panel's meeting may be closed pursuant to
             57971      Title 52, Chapter 4, Open and Public Meetings Act.
             57972          (c) When discussing an individual case, the panel shall make reasonable efforts to
             57973      identify and consider the concerns of all parties to the case.
             57974          (6) (a) The panel has authority to make recommendations to the Legislature, the
             57975      governor, the Board of Juvenile Court Judges, the division, and any other statutorily created
             57976      entity related to the policies and procedures of the child welfare system. The panel does not
             57977      have authority to make recommendations to the court, the division, or any other public or
             57978      private entity regarding the disposition of any individual case.
             57979          (b) The panel may hold public hearings, as it considers advisable, in various locations
             57980      within the state in order to afford all interested persons an opportunity to appear and present
             57981      their views regarding the child welfare system in this state.
             57982          (7) (a) All records of the panel regarding individual cases shall be classified private, and
             57983      may be disclosed only in accordance with federal law and the provisions of [Title 63, Chapter 2]
             57984      Title 63G, Chapter 2, Government Records Access and Management Act.
             57985          (b) The panel shall have access to all of the division's records, including those regarding
             57986      individual cases. In accordance with [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             57987      Records Access Management Act, all documents and information received by the panel shall
             57988      maintain the same classification that was designated by the division.
             57989          (8) In order to accomplish its oversight functions, the panel has:

             57990          (a) all powers granted to legislative interim committees in Section 36-12-11 ; and
             57991          (b) legislative subpoena powers under Title 36, Chapter 14, Legislative Subpoena
             57992      Powers.
             57993          (9) Members of the panel shall receive salary and expenses in accordance with Section
             57994      36-2-2 .
             57995          (10) (a) The Office of Legislative Research and General Counsel shall provide staff
             57996      support to the panel.
             57997          (b) The panel is authorized to employ additional professional assistance and other staff
             57998      members as it considers necessary and appropriate.
             57999          Section 1136. Section 62A-4a-208 is amended to read:
             58000           62A-4a-208. Child protection ombudsman -- Responsibility -- Authority.
             58001          (1) As used in this section:
             58002          (a) "Complainant" means a person who initiates a complaint with the ombudsman.
             58003          (b) "Ombudsman" means the child protection ombudsman appointed pursuant to this
             58004      section.
             58005          (2) (a) There is created within the department the position of child protection
             58006      ombudsman. The ombudsman shall be appointed by and serve at the pleasure of the executive
             58007      director.
             58008          (b) The ombudsman shall be:
             58009          (i) an individual of recognized executive and administrative capacity;
             58010          (ii) selected solely with regard to qualifications and fitness to discharge the duties of
             58011      ombudsman; and
             58012          (iii) have experience in child welfare, and in state laws and policies governing abused,
             58013      neglected, and dependent children.
             58014          (c) The ombudsman shall devote full time to the duties of office.
             58015          (3) (a) Except as provided in Subsection (b), the ombudsman shall, upon receipt of a
             58016      complaint from any person, investigate whether an act or omission of the division with respect
             58017      to a particular child:

             58018          (i) is contrary to statute, rule, or policy;
             58019          (ii) places a child's health or safety at risk;
             58020          (iii) is made without an adequate statement of reason; or
             58021          (iv) is based on irrelevant, immaterial, or erroneous grounds.
             58022          (b) The ombudsman may decline to investigate any complaint. If the ombudsman
             58023      declines to investigate a complaint or continue an investigation, the ombudsman shall notify the
             58024      complainant and the division of the decision and of the reasons for that decision.
             58025          (c) The ombudsman may conduct an investigation on [his] the ombudsman's own
             58026      initiative.
             58027          (4) The ombudsman shall:
             58028          (a) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             58029      Administrative Rulemaking Act, make rules that govern the following:
             58030          (i) receiving and processing complaints;
             58031          (ii) notifying complainants and the division regarding a decision to investigate or to
             58032      decline to investigate a complaint;
             58033          (iii) prioritizing workload;
             58034          (iv) maximum time within which investigations shall be completed;
             58035          (v) conducting investigations;
             58036          (vi) notifying complainants and the division regarding the results of investigations; and
             58037          (vii) making recommendations based on the findings and results of recommendations;
             58038          (b) report findings and recommendations in writing to the complainant and the division,
             58039      in accordance with the provisions of this section;
             58040          (c) within appropriations from the Legislature, employ staff as may be necessary to
             58041      carry out the ombudsman's duties under this part;
             58042          (d) provide information regarding the role, duties, and functions of the ombudsman to
             58043      public agencies, private entities, and individuals;
             58044          (e) annually report to the:
             58045          (i) Child Welfare Legislative Oversight Panel;

             58046          (ii) governor;
             58047          (iii) Board of Child and Family Services;
             58048          (iv) executive director of the department; and
             58049          (v) director of the division; and
             58050          (f) as appropriate, make recommendations to the division regarding individual cases,
             58051      and the rules, policies, and operations of the division.
             58052          (5) (a) Upon rendering a decision to investigate a complaint, the ombudsman shall
             58053      notify the complainant and the division of that decision.
             58054          (b) The ombudsman may advise a complainant to pursue all administrative remedies or
             58055      channels of complaint before pursuing a complaint with the ombudsman. Subsequent to
             58056      processing a complaint, the ombudsman may conduct further investigations upon the request of
             58057      the complainant or upon the ombudsman's own initiative. Nothing in this subsection precludes a
             58058      complainant from making a complaint directly to the ombudsman before pursuing an
             58059      administrative remedy.
             58060          (c) If the ombudsman finds that an individual's act or omission violates state or federal
             58061      criminal law, the ombudsman shall immediately report that finding to the appropriate county or
             58062      district attorney or to the attorney general.
             58063          (d) The ombudsman shall immediately notify the division if the ombudsman finds that a
             58064      child needs protective custody, as that term is defined in Section 78-3a-103 .
             58065          (e) The ombudsman shall immediately comply with Part 4, Child Abuse or Neglect
             58066      Reporting Requirements.
             58067          (6) (a) All records of the ombudsman regarding individual cases shall be classified in
             58068      accordance with federal law and the provisions of [Title 63, Chapter 2] Title 63G, Chapter 2,
             58069      Government Records Access and Management Act. The ombudsman may make public a report
             58070      prepared pursuant to this section in accordance with the provisions of [Title 63, Chapter 2] Title
             58071      63G, Chapter 2, Government Records Access and Management Act.
             58072          (b) The ombudsman shall have access to all of the department's written and electronic
             58073      records and databases, including those regarding individual cases. In accordance with [Title 63,

             58074      Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act, all
             58075      documents and information received by the ombudsman shall maintain the same classification
             58076      that was designated by the department.
             58077          (7) (a) The ombudsman shall prepare a written report of the findings and
             58078      recommendations, if any, of each investigation.
             58079          (b) The ombudsman shall make recommendations to the division if the ombudsman
             58080      finds that:
             58081          (i) a matter should be further considered by the division;
             58082          (ii) an administrative act should be addressed, modified, or canceled;
             58083          (iii) action should be taken by the division with regard to one of its employees; or
             58084          (iv) any other action should be taken by the division.
             58085          Section 1137. Section 62A-4a-303 is amended to read:
             58086           62A-4a-303. Director's responsibility.
             58087          The director, under the direction of the board, shall:
             58088          (1) contract with public or private nonprofit organizations, agencies, schools, or with
             58089      qualified individuals to establish voluntary community-based educational and service programs
             58090      designed to reduce the occurrence or recurrence of child abuse and neglect;
             58091          (2) facilitate the exchange of information between and among groups concerned with
             58092      families and children;
             58093          (3) consult with appropriate state agencies, commissions, and boards to help determine
             58094      the probable effectiveness, fiscal soundness, and need for proposed education and service
             58095      programs for the prevention and treatment of child abuse and neglect;
             58096          (4) develop policies to determine whether programs will be discontinued or will receive
             58097      continuous funding;
             58098          (5) establish flexible fees and fee schedules based on the recipient's ability to pay for
             58099      part or all of the costs of service received; and
             58100          (6) adopt rules under [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             58101      Rulemaking Act, as necessary to carry out the purposes of this part.

             58102          Section 1138. Section 62A-4a-304 is amended to read:
             58103           62A-4a-304. Contracts for services.
             58104          (1) (a) Contracts for services to prevent child abuse and neglect shall be awarded on the
             58105      basis of probability of success, based in part on sound research data.
             58106          (b) Each contract entered into by the director under Section 62A-4a-303 shall contain a
             58107      provision for the evaluation of services provided under the contract.
             58108          (2) Contract funds awarded for the treatment of victims of physical or sexual abuse are
             58109      not a collateral source as described in Section [ 63-25a-402 ] 63M-7-502 .
             58110          Section 1139. Section 62A-4a-410 is amended to read:
             58111           62A-4a-410. Immunity from liability.
             58112          (1) Any person, official, or institution participating in good faith in making a report,
             58113      taking photographs or X-rays, assisting an investigator from the division, serving as a member
             58114      of a child protection team, or taking a child into protective custody pursuant to this part, is
             58115      immune from any liability, civil or criminal, that otherwise might result by reason of those
             58116      actions.
             58117          (2) This section does not provide immunity with respect to acts or omissions of a
             58118      governmental employee except as provided in [Title 63, Chapter 30d] Title 63G, Chapter 7,
             58119      Governmental Immunity Act of Utah.
             58120          Section 1140. Section 62A-4a-412 is amended to read:
             58121           62A-4a-412. Reports and information confidential.
             58122          (1) Except as otherwise provided in this chapter, reports made pursuant to this part, as
             58123      well as any other information in the possession of the division obtained as the result of a report
             58124      are private, protected, or controlled records under [Title 63, Chapter 2] Title 63G, Chapter 2,
             58125      Government Records Access and Management Act, and may only be made available to:
             58126          (a) a police or law enforcement agency investigating a report of known or suspected
             58127      child abuse or neglect;
             58128          (b) a physician who reasonably believes that a child may be the subject of abuse or
             58129      neglect;

             58130          (c) an agency that has responsibility or authority to care for, treat, or supervise a minor
             58131      who is the subject of a report;
             58132          (d) a contract provider that has a written contract with the division to render services to
             58133      a minor who is the subject of a report;
             58134          (e) any subject of the report, the natural parents of the child, and the guardian ad litem;
             58135          (f) a court, upon a finding that access to the records may be necessary for the
             58136      determination of an issue before the court, provided that in a divorce, custody, or related
             58137      proceeding between private parties, the record alone is:
             58138          (i) limited to objective or undisputed facts that were verified at the time of the
             58139      investigation; and
             58140          (ii) devoid of conclusions drawn by the division or any of the division's workers on the
             58141      ultimate issue of whether or not a person's acts or omissions constituted any level of abuse or
             58142      neglect of another person;
             58143          (g) an office of the public prosecutor or its deputies in performing an official duty;
             58144          (h) a person authorized by a Children's Justice Center, for the purposes described in
             58145      Section 67-5b-102 ;
             58146          (i) a person engaged in bona fide research, when approved by the director of the
             58147      division, if the information does not include names and addresses;
             58148          (j) the State Office of Education, acting on behalf of itself or on behalf of a school
             58149      district, for the purpose of evaluating whether an individual should be permitted to obtain or
             58150      retain a license as an educator or serve as an employee or volunteer in a school, limited to
             58151      information with substantiated findings involving an alleged sexual offense, an alleged felony or
             58152      class A misdemeanor drug offense, or any alleged offense against the person under Title 76,
             58153      Chapter 5, Offenses Against the Person, and with the understanding that the office must provide
             58154      the subject of a report received under Subsection (1)(k) with an opportunity to respond to the
             58155      report before making a decision concerning licensure or employment;
             58156          (k) any person identified in the report as a perpetrator or possible perpetrator of child
             58157      abuse or neglect, after being advised of the screening prohibition in Subsection (2);

             58158          (l) a person filing a petition for a child protective order on behalf of a child who is the
             58159      subject of the report; and
             58160          (m) a licensed child-placing agency or person who is performing a preplacement
             58161      adoptive evaluation in accordance with the requirements of Section 78-30-3.5 .
             58162          (2) (a) A person, unless listed in Subsection (1), may not request another person to
             58163      obtain or release a report or any other information in the possession of the division obtained as a
             58164      result of the report that is available under Subsection (1)(k) to screen for potential perpetrators
             58165      of child abuse or neglect.
             58166          (b) A person who requests information knowing that it is a violation of Subsection
             58167      (2)(a) to do so is subject to the criminal penalty in Subsection (4).
             58168          (3) (a) Except as provided in Section 62A-4a-1007 and Subsection (3)(b), the division
             58169      and law enforcement officials shall ensure the anonymity of the person or persons making the
             58170      initial report and any others involved in its subsequent investigation.
             58171          (b) Notwithstanding any other provision of law, excluding Section 78-3a-314 , but
             58172      including this chapter and [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             58173      Access and Management Act, when the division makes a report or other information in its
             58174      possession available under Subsection (1)(e) to a subject of the report or a parent of a child, the
             58175      division shall remove from the report or other information only the names, addresses, and
             58176      telephone numbers of individuals or specific information that could:
             58177          (i) identify the referent;
             58178          (ii) impede a criminal investigation; or
             58179          (iii) endanger a person's safety.
             58180          (4) Any person who wilfully permits, or aides and abets the release of data or
             58181      information obtained as a result of this part, in the possession of the division or contained on
             58182      any part of the Management Information System, in violation of this part or Sections
             58183      62A-4a-1003 through 62A-4a-1007 , is guilty of a class C misdemeanor.
             58184          (5) The physician-patient privilege is not a ground for excluding evidence regarding a
             58185      child's injuries or the cause of those injuries, in any proceeding resulting from a report made in

             58186      good faith pursuant to this part.
             58187          (6) A child-placing agency or person who receives a report in connection with a
             58188      preplacement adoptive evaluation pursuant to Section 78-30-3.5 :
             58189          (a) may provide this report to the person who is the subject of the report; and
             58190          (b) may provide this report to a person who is performing a preplacement adoptive
             58191      evaluation in accordance with the requirement of Section 78-30-3.5 , or to a licensed
             58192      child-placing agency or to an attorney seeking to facilitate an adoption.
             58193          Section 1141. Section 62A-4a-906 is amended to read:
             58194           62A-4a-906. Termination or modification of adoption assistance.
             58195          (1) Adoption assistance may not be terminated or modified unless the division has given
             58196      adoptive parents notice and opportunity for a hearing as required in [Title 63, Chapter 46b]
             58197      Title 63G, Chapter 4, Administrative Procedures Act.
             58198          (2) Adoption assistance shall be terminated if any of the following occur:
             58199          (a) the adoptive parents request termination;
             58200          (b) the child reaches 18 years of age, unless approval has been given by the division to
             58201      continue beyond the age of 18 due to mental or physical disability, but in no case shall
             58202      assistance continue after a child reaches 21 years of age;
             58203          (c) the child dies;
             58204          (d) the adoptive parents die;
             58205          (e) the adoptive parent's legal responsibility for the child ceases;
             58206          (f) the state determines that the child is no longer receiving support from the adoptive
             58207      parents;
             58208          (g) the child marries; or
             58209          (h) the child enters military service.
             58210          Section 1142. Section 62A-4a-1003 is amended to read:
             58211           62A-4a-1003. Management Information System -- Requirements -- Contents --
             58212      Purpose -- Access.
             58213          (1) (a) The division shall develop and implement a Management Information System

             58214      that meets the requirements of this section and the requirements of federal law and regulation.
             58215          (b) The information and records contained in the Management Information System:
             58216          (i) are protected records under [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             58217      Records Access and Management Act; and
             58218          (ii) except as provided in Subsections (1)(c) and (d), are available only to a person with
             58219      statutory authorization under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             58220      Access and Management Act, to review the information and records described in this
             58221      Subsection (1)(b).
             58222          (c) Notwithstanding Subsection (1)(b)(ii), the information and records described in
             58223      Subsection (1)(b) are available to a person:
             58224          (i) as provided under Subsection (6) or Section 62A-4a-1006 ; or
             58225          (ii) who has specific statutory authorization to access the information or records for the
             58226      purpose of assisting the state with state and federal requirements to maintain information solely
             58227      for the purpose of protecting minors and providing services to families in need.
             58228          (d) Notwithstanding Subsection (1)(b)(ii), the information and records described in
             58229      Subsection (1)(b) may, to the extent required by Title IV-B or IV-E of the Social Security Act,
             58230      be provided by the division:
             58231          (i) to comply with child abuse and neglect registry checks requested by other states; and
             58232          (ii) to the United States Department of Health and Human Services for purposes of
             58233      maintaining an electronic national registry of substantiated cases of child abuse and neglect.
             58234          (2) With regard to all child welfare cases, the Management Information System shall
             58235      provide each caseworker and the department's office of licensing, exclusively for the purposes
             58236      of foster parent licensure and monitoring, with a complete history of each child in that worker's
             58237      caseload, including:
             58238          (a) a record of all past action taken by the division with regard to that child and the
             58239      child's siblings;
             58240          (b) the complete case history and all reports and information in the control or keeping
             58241      of the division regarding that child and the child's siblings;

             58242          (c) the number of times the child has been in the custody of the division;
             58243          (d) the cumulative period of time the child has been in the custody of the division;
             58244          (e) a record of all reports of abuse or neglect received by the division with regard to
             58245      that child's parent, parents, or guardian including:
             58246          (i) for each report, documentation of the:
             58247          (A) latest status; or
             58248          (B) final outcome or determination; and
             58249          (ii) information that indicates whether each report was found to be:
             58250          (A) supported;
             58251          (B) unsupported;
             58252          (C) substantiated by a juvenile court;
             58253          (D) unsubstantiated by a juvenile court; or
             58254          (E) without merit;
             58255          (f) the number of times the child's parent or parents failed any child and family plan; and
             58256          (g) the number of different caseworkers who have been assigned to that child in the
             58257      past.
             58258          (3) The division's Management Information System shall:
             58259          (a) contain all key elements of each family's current child and family plan, including:
             58260          (i) the dates and number of times the plan has been administratively or judicially
             58261      reviewed;
             58262          (ii) the number of times the parent or parents have failed that child and family plan; and
             58263          (iii) the exact length of time the child and family plan has been in effect; and
             58264          (b) alert caseworkers regarding deadlines for completion of and compliance with policy,
             58265      including child and family plans.
             58266          (4) With regard to all child protective services cases, the Management Information
             58267      System shall:
             58268          (a) monitor the compliance of each case with:
             58269          (i) division rule and policy;

             58270          (ii) state law; and
             58271          (iii) federal law and regulation; and
             58272          (b) include the age and date of birth of the alleged perpetrator at the time the abuse or
             58273      neglect is alleged to have occurred, in order to ensure accuracy regarding the identification of
             58274      the alleged perpetrator.
             58275          (5) Except as provided in Subsection (6) regarding contract providers and Section
             58276      62A-4a-1006 regarding limited access to the Licensing Information System, all information
             58277      contained in the division's Management Information System is available to the department, upon
             58278      the approval of the executive director, on a need-to-know basis.
             58279          (6) (a) Subject to this Subsection (6), the division may allow its contract providers,
             58280      court clerks designated by the Administrative Office of the Courts, and the Office of the
             58281      Guardian Ad Litem to have limited access to the Management Information System.
             58282          (b) A division contract provider has access only to information about a person who is
             58283      currently receiving services from that specific contract provider.
             58284          (c) (i) Designated court clerks may only have access to information necessary to comply
             58285      with Subsection 78-3h-102 (2).
             58286          (ii) The Office of the Guardian Ad Litem may access only the information that:
             58287          (A) relates to children and families where the Office of the Guardian Ad Litem is
             58288      appointed by a court to represent the interests of the children; and
             58289          (B) except as provided in Subsection (6)(d), is entered into the Management
             58290      Information System on or after July 1, 2004.
             58291          (d) Notwithstanding Subsection (6)(c)(ii)(B), the Office of the Guardian Ad Litem shall
             58292      have access to all child abuse and neglect referrals about children and families where the office
             58293      has been appointed by a court to represent the interests of the children, regardless of the date
             58294      that the information is entered into the Management Information System.
             58295          (e) Each contract provider and designated representative of the Office of the Guardian
             58296      Ad Litem who requests access to information contained in the Management Information System
             58297      shall:

             58298          (i) take all necessary precautions to safeguard the security of the information contained
             58299      in the Management Information System;
             58300          (ii) train its employees regarding:
             58301          (A) requirements for protecting the information contained in the Management
             58302      Information System as required by this chapter and under [Title 63, Chapter 2] Title 63G,
             58303      Chapter 2, Government Records Access and Management Act; and
             58304          (B) the criminal penalties under Sections 62A-4a-412 and [ 63-2-801 ] 63G-2-801 for
             58305      improper release of information; and
             58306          (iii) monitor its employees to ensure that they protect the information contained in the
             58307      Management Information System as required by law.
             58308          (f) The division shall take reasonable precautions to ensure that its contract providers
             58309      comply with the requirements of this Subsection (6).
             58310          (7) The division shall take all necessary precautions, including password protection and
             58311      other appropriate and available technological techniques, to prevent unauthorized access to or
             58312      release of information contained in the Management Information System.
             58313          Section 1143. Section 62A-4a-1006 is amended to read:
             58314           62A-4a-1006. Licensing Information System -- Contents -- Juvenile court finding
             58315      -- Protected record -- Access -- Criminal penalty.
             58316          (1) (a) The division shall maintain a sub-part of the Management Information System
             58317      established pursuant to Section 62A-4a-1003 , to be known as the Licensing Information
             58318      System, to be used:
             58319          (i) for licensing purposes; or
             58320          (ii) as otherwise specifically provided for by law.
             58321          (b) The Licensing Information System shall include only the following information:
             58322          (i) the information described in Subsections 62A-4a-1005 (1)(b) and (3)(b);
             58323          (ii) consented-to supported findings by alleged perpetrators under Subsection
             58324      62A-4a-1005 (3)(a)(iii); and
             58325          (iii) the information in the licensing part of the division's Management Information

             58326      System as of May 6, 2002.
             58327          (2) Notwithstanding Subsection (1), the department's access to information in the
             58328      Management Information System for the licensure and monitoring of foster parents is governed
             58329      by Sections 62A-4a-1003 and 62A-2-121 .
             58330          (3) Subject to Subsection 62A-4a-1005 (3)(e), upon receipt of a finding from the
             58331      juvenile court under Section 78-3a-320 , the division shall:
             58332          (a) promptly amend the Licensing Information System; and
             58333          (b) enter the information in the Management Information System.
             58334          (4) (a) Information contained in the Licensing Information System is classified as a
             58335      protected record under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access
             58336      and Management Act.
             58337          (b) Notwithstanding the disclosure provisions of [Title 63, Chapter 2] Title 63G,
             58338      Chapter 2, Government Records Access and Management Act, the information contained in the
             58339      Licensing Information System may only be used or disclosed as specifically provided in this
             58340      chapter and Section 62A-2-121 .
             58341          (c) The information described in Subsection (4)(b) is accessible only to:
             58342          (i) the Office of Licensing within the department:
             58343          (A) for licensing purposes; or
             58344          (B) as otherwise specifically provided for by law;
             58345          (ii) the division to:
             58346          (A) screen a person at the request of the Office of the Guardian Ad Litem Director:
             58347          (I) at the time that person seeks a paid or voluntary position with the Office of the
             58348      Guardian Ad Litem Director; and
             58349          (II) on an annual basis, throughout the time that the person remains with the Office of
             58350      Guardian Ad Litem Director; and
             58351          (B) respond to a request for information from a person whose name is listed in the
             58352      Licensing Information System;
             58353          (iii) two persons designated by and within the Department of Health, only for the

             58354      following purposes:
             58355          (A) licensing a child care program or provider; or
             58356          (B) determining whether a person associated with a covered health care facility, as
             58357      defined by the Department of Health by rule, who provides direct care to a child, has a
             58358      supported finding of a severe type of child abuse or neglect; and
             58359          (iv) the department, as specifically provided in this chapter.
             58360          (5) The two persons designated by the Department of Health under Subsection
             58361      (4)(c)(iii) shall adopt measures to:
             58362          (a) protect the security of the Licensing Information System; and
             58363          (b) strictly limit access to the Licensing Information System to those persons designated
             58364      by statute.
             58365          (6) All persons designated by statute as having access to information contained in the
             58366      Licensing Information System shall receive training from the department with respect to:
             58367          (a) accessing the Licensing Information System;
             58368          (b) maintaining strict security; and
             58369          (c) the criminal provisions of Sections 62A-4a-412 and [ 63-2-801 ] 63G-2-801
             58370      pertaining to the improper release of information.
             58371          (7) (a) A person, except those authorized by this chapter, may not request another
             58372      person to obtain or release any other information in the Licensing Information System to screen
             58373      for potential perpetrators of child abuse or neglect.
             58374          (b) A person who requests information knowing that it is a violation of this Subsection
             58375      (7) to do so is subject to the criminal penalty described in Sections 62A-4a-412 and [ 63-2-801 ]
             58376      63G-2-801 .
             58377          Section 1144. Section 62A-4a-1009 is amended to read:
             58378           62A-4a-1009. Notice and opportunity to challenge supported finding in
             58379      Management Information System -- Right of judicial review.
             58380          (1) (a) Except as provided in Subsection (2), the division shall send a notice of agency
             58381      action to a person with respect to whom the division makes a supported finding. In addition, if

             58382      the alleged perpetrator is under the age of 18, the division shall:
             58383          (i) make reasonable efforts to identify the alleged perpetrator's parent or guardian; and
             58384          (ii) send a notice to each parent or guardian identified under Subsection (1)(a)(i) that
             58385      lives at a different address, unless there is good cause, as defined by rule, for not sending a
             58386      notice to a parent or guardian.
             58387          (b) Nothing in this section may be construed as affecting:
             58388          (i) the manner in which the division conducts an investigation; or
             58389          (ii) the use or effect, in any other setting, of a supported finding by the division at the
             58390      completion of an investigation for any purpose other than for notification under Subsection (1)
             58391      (a).
             58392          (2) Subsection (1) does not apply to a person who has been served with notice under
             58393      Subsection 62A-4a-1005 (1)(a).
             58394          (3) The notice described in Subsection (1) shall state:
             58395          (a) that the division has conducted an investigation regarding alleged child abuse,
             58396      neglect, or dependency;
             58397          (b) that the division has made a supported finding of abuse, neglect, or dependency;
             58398          (c) that facts gathered by the division support the supported finding;
             58399          (d) that the person has the right to request:
             58400          (i) a copy of the report; and
             58401          (ii) an opportunity to challenge the supported finding by the division; and
             58402          (e) that failure to request an opportunity to challenge the supported finding within 30
             58403      days of receiving the notice will result in an unappealable supported finding of child abuse,
             58404      neglect, or dependency unless the person can show good cause for why compliance within the
             58405      30-day requirement was virtually impossible or unreasonably burdensome.
             58406          (4) (a) A person may make a request to challenge a supported finding within 30 days of
             58407      a notice being received under this section.
             58408          (b) Upon receipt of a request under Subsection (4)(a), the Office of Administrative
             58409      Hearings shall hold an adjudicative proceeding pursuant to [Title 63, Chapter 46b] Title 63G,

             58410      Chapter 4, Administrative Procedures Act.
             58411          (5) (a) In an adjudicative proceeding held pursuant to this section, the division shall
             58412      have the burden of proving, by a preponderance of the evidence, that child abuse, neglect, or
             58413      dependency occurred and that the alleged perpetrator was substantially responsible for the abuse
             58414      or neglect that occurred.
             58415          (b) Any party shall have the right of judicial review of final agency action, in accordance
             58416      with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             58417          (6) Except as otherwise provided in this chapter, an alleged perpetrator who, after
             58418      receiving notice, fails to challenge a supported finding in accordance with this section:
             58419          (a) may not further challenge the finding; and
             58420          (b) shall have no right to:
             58421          (i) agency review of the finding;
             58422          (ii) an adjudicative hearing on the finding; or
             58423          (iii) judicial review of the finding.
             58424          (7) (a) Except as provided in Subsection (7)(b), an alleged perpetrator may not make a
             58425      request under Subsection (4) to challenge a supported finding if a court of competent
             58426      jurisdiction entered a finding, in a proceeding in which the alleged perpetrator was a party, that
             58427      the alleged perpetrator is substantially responsible for the abuse, neglect, or dependency which
             58428      was also the subject of the supported finding.
             58429          (b) Subsection (7)(a) does not apply to pleas in abeyance or diversion agreements.
             58430          (c) An adjudicative proceeding under Subsection (5) may be stayed during the time a
             58431      judicial action on the same matter is pending.
             58432          (8) Pursuant to Section 78-3a 320, an adjudicative proceeding on a supported finding of
             58433      a type of abuse or neglect that does not constitute a severe type of child abuse or neglect may
             58434      be joined in the juvenile court with an adjudicative proceeding on a supported finding of a
             58435      severe type of child abuse or neglect.
             58436          Section 1145. Section 62A-5-103 is amended to read:
             58437           62A-5-103. Responsibility and authority of division.

             58438          (1) For purposes of this section "administer" means to:
             58439          (a) plan;
             58440          (b) develop;
             58441          (c) manage;
             58442          (d) monitor; and
             58443          (e) conduct certification reviews.
             58444          (2) The division has the authority and responsibility to:
             58445          (a) administer an array of services and supports for persons with disabilities and their
             58446      families throughout the state;
             58447          (b) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             58448      Administrative Rulemaking Act, that establish eligibility criteria for the services and supports
             58449      described in Subsection (2)(a);
             58450          (c) consistent with Section 62A-5-206 , supervise the programs and facilities of the
             58451      Developmental Center;
             58452          (d) in order to enhance the quality of life for a person with a disability, establish either
             58453      directly, or by contract with private, nonprofit organizations, programs of:
             58454          (i) outreach;
             58455          (ii) information and referral;
             58456          (iii) prevention;
             58457          (iv) technical assistance; and
             58458          (v) public awareness;
             58459          (e) supervise the programs and facilities operated by, or under contract with, the
             58460      division;
             58461          (f) cooperate with other state, governmental, and private agencies that provide services
             58462      to a person with a disability;
             58463          (g) subject to Subsection (3), ensure that a person with a disability is not deprived of
             58464      that person's constitutionally protected rights without due process procedures designed to
             58465      minimize the risk of error when a person with a disability is admitted to any structured

             58466      residential mental retardation facility, including:
             58467          (i) the developmental center; and
             58468          (ii) facilities within the community;
             58469          (h) determine whether to approve providers;
             58470          (i) monitor and sanction approved providers, as specified in the providers' contract;
             58471          (j) subject to Section 62A-5-103.5 , receive and disburse public funds;
             58472          (k) review financial actions of a provider who is a representative payee appointed by the
             58473      Social Security Administration;
             58474          (l) establish standards and rules for the administration and operation of programs
             58475      conducted by, or under contract with, the division;
             58476          (m) approve and monitor division programs to insure compliance with the board's rules
             58477      and standards;
             58478          (n) establish standards and rules necessary to fulfill the division's responsibilities under
             58479      Parts 2 and 3 of this chapter with regard to mental retardation facilities;
             58480          (o) assess and collect equitable fees for a person who receives services provided under
             58481      this chapter;
             58482          (p) maintain records of, and account for, the funds described in Subsection (2)(o);
             58483          (q) establish and apply rules to determine whether to approve, deny, or defer the
             58484      division's services to a person who is:
             58485          (i) applying to receive the services; or
             58486          (ii) currently receiving the services;
             58487          (r) in accordance with state law, establish rules:
             58488          (i) relating to a mental retardation facility that is an endorsed program; and
             58489          (ii) governing the admission, transfer, and discharge of a person with a disability;
             58490          (s) manage funds for a person residing in a facility operated by the division:
             58491          (i) upon request of a parent or guardian of the person; or
             58492          (ii) under administrative or court order; and
             58493          (t) fulfill the responsibilities described in Chapter 5a, Coordinating Council for Persons

             58494      with Disabilities.
             58495          (3) The due process procedures described in Subsection (2)(g):
             58496          (a) shall include initial and periodic reviews to determine the constitutional
             58497      appropriateness of the placement; and
             58498          (b) with regard to facilities in the community, do not require commitment to the
             58499      division.
             58500          Section 1146. Section 62A-5-103.1 is amended to read:
             58501           62A-5-103.1. Pilot program for provision of supported employment services.
             58502          (1) There is established a pilot program for the provision of supported employment
             58503      services to be administered by the division, beginning on July 1, 2006, and ending on July 1,
             58504      2008.
             58505          (2) The division shall make rules, in accordance with [Title 63, Chapter 46a] Title 63G,
             58506      Chapter 3, Utah Administrative Rulemaking Act, as necessary for the implementation and
             58507      administration of this section.
             58508          (3) In accordance with Subsection (4), within funds appropriated by the Legislature for
             58509      the pilot program described in this section, the division shall provide supported employment
             58510      services to a person with a disability who:
             58511          (a) is eligible to receive services from the division;
             58512          (b) has applied for, and is waiting to, receive services from the division;
             58513          (c) is not receiving other ongoing services from the division;
             58514          (d) is not able to receive sufficient supported employment services from other sources;
             58515          (e) the division determines would substantially benefit from the provision of supported
             58516      employment services; and
             58517          (f) does not require the provision of other ongoing services from the division in order to
             58518      substantially benefit from the provision of supported employment services.
             58519          (4) (a) The division shall provide supported employment services under this section
             58520      outside of the prioritization criteria established by the division for the receipt of other services
             58521      from the division.

             58522          (b) The division shall establish criteria to determine the priority, between persons
             58523      eligible for services under this section, for receiving services under this section.
             58524          (5) It is the intent of the Legislature that the services provided under the pilot program
             58525      described in this section:
             58526          (a) shall be provided separately from the Medicaid program described in Title XIX of
             58527      the Social Security Act;
             58528          (b) may not be supported with Medicaid funds;
             58529          (c) may not be provided as part of a Medicaid waiver;
             58530          (d) do not constitute an entitlement of any kind; and
             58531          (e) may be withdrawn from a person at any time.
             58532          (6) The director of the division shall report to the Health and Human Services Interim
             58533      Committee during the 2007 interim regarding:
             58534          (a) the operation and accomplishments of the pilot program described in this section;
             58535          (b) whether the Legislature should convert the pilot program to an ongoing program
             58536      within the division; and
             58537          (c) recommendations for changes, if any, relating to the pilot program.
             58538          (7) During the 2007 interim, the Health and Human Services Interim Committee shall:
             58539          (a) hear or review the report described in Subsection (6); and
             58540          (b) determine whether the pilot program described in this section should be converted
             58541      to an ongoing program within the division.
             58542          Section 1147. Section 62A-5-103.2 is amended to read:
             58543           62A-5-103.2. Pilot program for family preservation services.
             58544          (1) There is established a pilot program for the provision of family preservation services
             58545      to a person with a disability and that person's family, beginning on July 1, 2007, and ending on
             58546      July 1, 2009.
             58547          (2) The family preservation services described in Subsection (1) may include:
             58548          (a) family skill building classes;
             58549          (b) respite hours for class attendance; or

             58550          (c) professional intervention.
             58551          (3) The division shall make rules, in accordance with [Title 63, Chapter 46a] Title 63G,
             58552      Chapter 3, Utah Administrative Rulemaking Act, as necessary for the implementation and
             58553      administration of this section.
             58554          (4) In accordance with Subsection (5), within funds appropriated by the Legislature for
             58555      the pilot program described in this section, the division shall provide family preservation
             58556      services to a person with a disability, and that person's family, if that person:
             58557          (a) is eligible to receive services from the division;
             58558          (b) has applied for, and is willing to receive, services from the division;
             58559          (c) is not receiving other ongoing services from the division;
             58560          (d) is not able to receive sufficient family preservation services from other sources;
             58561          (e) is determined by the division to be a person who would substantially benefit from
             58562      the provision of family preservation services; and
             58563          (f) does not require the provision of other ongoing services from the division in order to
             58564      substantially benefit from the provision of family preservation services.
             58565          (5) (a) The division shall provide family preservation services under this section outside
             58566      of the prioritization criteria established by the division for the receipt of other services from the
             58567      division.
             58568          (b) The division shall establish criteria to determine the priority, between persons
             58569      eligible for services under this section, for receiving services under this section.
             58570          (6) It is the intent of the Legislature that the services provided under the pilot program
             58571      described in this section:
             58572          (a) shall be provided separately from the Medicaid program described in Title XIX of
             58573      the Social Security Act;
             58574          (b) may not be supported with Medicaid funds;
             58575          (c) may not be provided as part of a Medicaid waiver;
             58576          (d) do not constitute an entitlement of any kind; and
             58577          (e) may be withdrawn from a person at any time.

             58578          (7) The director of the division shall report to the Health and Human Services Interim
             58579      Committee during the 2008 interim regarding:
             58580          (a) the operation and accomplishments of the pilot program described in this section;
             58581          (b) whether the Legislature should convert the pilot program to an ongoing program
             58582      within the division; and
             58583          (c) recommendations for changes, if any, related to the pilot program.
             58584          (8) During the 2008 interim, the Health and Human Services Interim Committee shall:
             58585          (a) hear or review the report described in Subsection (7); and
             58586          (b) determine whether the pilot program described in this section should be converted
             58587      into an ongoing program within the division.
             58588          Section 1148. Section 62A-5-105 is amended to read:
             58589           62A-5-105. Board -- Membership -- Responsibilities -- Policy mediation.
             58590          (1) The board is the policymaking body for the division and shall establish by rule the
             58591      policy of the division in accordance with:
             58592          (a) the policy of the Legislature as set forth by this chapter; and
             58593          (b) [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             58594          (2) The board shall:
             58595          (a) establish program policy for the division, the developmental center, and programs
             58596      and facilities operated by or under contract with the division;
             58597          (b) establish policies for the assessment and collection of fees for programs within the
             58598      division;
             58599          (c) no later than July 1, 2003, establish a graduated fee schedule based on ability to pay
             58600      and implement the schedule with respect to service recipients and their families where not
             58601      otherwise prohibited by federal law or regulation or not otherwise provided for in Section
             58602      62A-5-109 ;
             58603          (d) establish procedures to ensure that private citizens, consumers, private contract
             58604      providers, allied state and local agencies, and others are provided with an opportunity to
             58605      comment and provide input regarding any new policy or proposed revision to an existing policy;

             58606          (e) provide a mechanism for systematic and regular review of existing policy and for
             58607      consideration of policy changes proposed by the persons and agencies described under
             58608      Subsection (2)(d);
             58609          (f) (i) establish and periodically review the criteria used to determine who may receive
             58610      services from the division and how the delivery of those services is prioritized within available
             58611      funding; and
             58612          (ii) make periodic recommendations based on the review conducted under Subsection
             58613      (2)(f)(i) to the Health and Human Services Interim Committee beginning at or before the
             58614      September 2002 meeting of the committee;
             58615          (g) review implementation and compliance by the division with policies established by
             58616      the board to ensure that the policies established by the Legislature in this chapter are carried
             58617      out; and
             58618          (h) annually report to the executive director.
             58619          (3) At least one member of the board shall be a person whose life or family is directly
             58620      affected by a disability, and at least one other board member shall be a person with a physical
             58621      disability.
             58622          (4) The executive director shall mediate any differences which arise between the
             58623      policies of the board and those of any other policy board in the department.
             58624          Section 1149. Section 62A-5-313 is amended to read:
             58625           62A-5-313. Transfer -- Procedures.
             58626          (1) The director of the division, or [his] the director's designee, may place an
             58627      involuntarily committed resident in appropriate care or treatment outside the mental retardation
             58628      facility. During that placement, the order of commitment shall remain in effect, until the
             58629      resident is discharged or the order is terminated.
             58630          (2) If the resident, or [his] the resident's parent or guardian, objects to a proposed
             58631      placement under this section, [he] the resident may appeal the decision to the executive director
             58632      or [his] the executive director's designee. Those appeals shall be conducted in accordance with
             58633      the procedures and requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4,

             58634      Administrative Procedures Act. If an objection is made, the proposed placement may not take
             58635      effect until the committee holds that hearing and the executive director makes a final decision on
             58636      the placement.
             58637          Section 1150. Section 62A-5a-104 is amended to read:
             58638           62A-5a-104. Powers of council.
             58639          (1) The council has authority, after local or individual efforts have failed, including,
             58640      with regard to persons under 22 years of age, actions by local interagency councils established
             58641      under Section [ 63-75-5.7 ] 63M-9-301 , to:
             58642          (a) coordinate the appropriate transition of persons with disabilities who receive
             58643      services and support from one state agency to receive services and support from another state
             58644      agency;
             58645          (b) coordinate policies governing the provision of services and support for persons with
             58646      disabilities by state agencies; and
             58647          (c) consider issues regarding eligibility for services and support and, where possible,
             58648      develop uniform eligibility standards for state agencies.
             58649          (2) The council may receive appropriations from the Legislature to purchase services
             58650      and supports for persons with disabilities as the council deems appropriate.
             58651          Section 1151. Section 62A-7-202 is amended to read:
             58652           62A-7-202. Location of detention facilities and services.
             58653          (1) The division shall provide detention facilities and services in each county, or group
             58654      of counties, as the population demands, in accordance with the provisions of this chapter.
             58655          (2) The division, through its detention centers, is responsible for development,
             58656      implementation, and administration of home detention services, and shall establish criteria for
             58657      placement on home detention.
             58658          (3) The division shall make rules, in accordance with [Title 63, Chapter 46a] Title 63G,
             58659      Chapter 3, Utah Administrative Rulemaking Act, establishing standards for admission to secure
             58660      detention and home detention programs.
             58661          (4) The division shall provide training regarding implementation of the rules to law

             58662      enforcement agencies, division employees, juvenile court employees, and other affected
             58663      agencies and individuals upon their request.
             58664          Section 1152. Section 62A-11-104.1 is amended to read:
             58665           62A-11-104.1. Disclosure of information regarding employees.
             58666          (1) Upon request by the office, for purposes of an official investigation made in
             58667      connection with its duties under Section 62A-11-104 , the following disclosures shall be made to
             58668      the office:
             58669          (a) a public or private employer shall disclose an employee's name, address, date of
             58670      birth, income, social security number, and health insurance information pertaining to the
             58671      employee and [his] the employee's dependents;
             58672          (b) an insurance organization subject to Title 31A, Insurance Code, or the insurance
             58673      administrators of a self-insured employer shall disclose health insurance information pertaining
             58674      to an insured or an insured's dependents, if known; and
             58675          (c) a financial institution subject to Title 7, Financial Institutions, shall disclose financial
             58676      record information of a customer named in the request.
             58677          (2) The office shall specify by rule the type of health insurance and financial record
             58678      information required to be disclosed under this section.
             58679          (3) All information received under this section is subject to [Title 63, Chapter 2] Title
             58680      63G, Chapter 2, Government Records Access and Management Act.
             58681          (4) An employer, financial institution, or insurance organization, or its agent or
             58682      employee, is not civilly or criminally liable for providing information to the office in accordance
             58683      with this section, whether the information is provided pursuant to oral or written request.
             58684          Section 1153. Section 62A-11-105 is amended to read:
             58685           62A-11-105. Adjudicative proceedings.
             58686          The office and the department shall comply with the procedures and requirements of
             58687      [Title 63, Chapter 46b,] Title 63G, Chapter 4, Administrative Procedures Act, in their
             58688      adjudicative proceedings.
             58689          Section 1154. Section 62A-11-303 is amended to read:

             58690           62A-11-303. Definitions.
             58691          As used in this part:
             58692          (1) "Adjudicative proceeding" means an action or proceeding of the office conducted in
             58693      accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
             58694          (2) "Administrative order" means an order that has been issued by the office, the
             58695      department, or an administrative agency of another state or other comparable jurisdiction with
             58696      similar authority to that of the office.
             58697          (3) "Assistance" or "public assistance" is defined in Section 62A-11-103 .
             58698          (4) "Business day" means a day on which state offices are open for regular business.
             58699          (5) "Child" means:
             58700          (a) a son or daughter under the age of 18 years who is not otherwise emancipated,
             58701      self-supporting, married, or a member of the armed forces of the United States;
             58702          (b) a son or daughter over the age of 18 years, while enrolled in high school during the
             58703      normal and expected year of graduation and not otherwise emancipated, self-supporting,
             58704      married, or a member of the armed forces of the United States; or
             58705          (c) a son or daughter of any age who is incapacitated from earning a living and is
             58706      without sufficient means.
             58707          (6) "Child support" is defined in Section 62A-11-401 .
             58708          (7) "Child support guidelines" or "guidelines" is defined in Section 78-45-2 .
             58709          (8) "Child support order" or "support order" is defined in Section 62A-11-401 .
             58710          (9) "Child support services" or "IV-D child support services" is defined in Section
             58711      62A-11-103 .
             58712          (10) "Court order" means a judgment or order of a tribunal of appropriate jurisdiction
             58713      of this state, another state, Native American tribe, the federal government, or any other
             58714      comparable jurisdiction.
             58715          (11) "Director" means the director of the Office of Recovery Services.
             58716          (12) "Disposable earnings" is defined in Section 62A-11-103 .
             58717          (13) "High-volume automated administrative enforcement" in interstate cases means, on

             58718      the request of another state, the identification by the office, through automatic data matches
             58719      with financial institutions and other entities where assets may be found, of assets owned by
             58720      persons who owe child support in the requesting state, and the seizure of the assets by the
             58721      office, through levy or other appropriate processes.
             58722          (14) "Income" is defined in Section 62A-11-103 .
             58723          (15) "Notice of agency action" means the notice required to commence an adjudicative
             58724      proceeding in accordance with Section [ 63-46b-3 ] 63G-4-201 .
             58725          (16) "Obligee" means an individual, this state, another state, or other comparable
             58726      jurisdiction to whom a duty of child support is owed, or who is entitled to reimbursement of
             58727      child support or public assistance.
             58728          (17) "Obligor" means a person, firm, corporation, or the estate of a decedent owing a
             58729      duty of support to this state, to an individual, to another state, or other corporate jurisdiction in
             58730      whose behalf this state is acting.
             58731          (18) "Office" is defined in Section 62A-11-103 .
             58732          (19) "Parent" means a natural parent or an adoptive parent of a dependent child.
             58733          (20) "Person" includes an individual, firm, corporation, association, political
             58734      subdivision, department, or office.
             58735          (21) "Presiding officer" means a presiding officer described in Section [ 63-46b-2 ]
             58736      63G-4-103 .
             58737          (22) "Support" includes past-due, present, and future obligations established by:
             58738          (a) a tribunal or imposed by law for the financial support, maintenance, medical, or
             58739      dental care of a dependent child; and
             58740          (b) a tribunal for the financial support of a spouse or former spouse with whom the
             58741      obligor's dependent child resides if the obligor also owes a child support obligation that is being
             58742      enforced by the state.
             58743          (23) "Support debt," "past-due support," or "arrears" means the debt created by
             58744      nonpayment of support.
             58745          (24) "Tribunal" means the district court, the Department of Human Services, the Office

             58746      of Recovery Services, or court or administrative agency of any state, territory, possession of the
             58747      United States, the District of Columbia, the Commonwealth of Puerto Rico, Native American
             58748      Tribe, or other comparable domestic or foreign jurisdiction.
             58749          Section 1155. Section 62A-11-304.1 is amended to read:
             58750           62A-11-304.1. Expedited procedures for establishing paternity or establishing,
             58751      modifying, or enforcing a support order.
             58752          (1) The office may, without the necessity of initiating an adjudicative proceeding or
             58753      obtaining an order from any other judicial or administrative tribunal, take the following actions
             58754      related to the establishment of paternity or the establishment, modification, or enforcement of a
             58755      support order, and to recognize and enforce the authority of state agencies of other states to
             58756      take the following actions:
             58757          (a) require a child, mother, and alleged father to submit to genetic testing;
             58758          (b) subpoena financial or other information needed to establish, modify, or enforce a
             58759      support order, including:
             58760          (i) the name, address, and employer of a person who owes or is owed support that
             58761      appears on the customer records of public utilities and cable television companies; and
             58762          (ii) information held by financial institutions on such things as the assets and liabilities of
             58763      a person who owes or is owed support;
             58764          (c) require a public or private employer to promptly disclose information to the office
             58765      on the name, address, date of birth, social security number, employment status, compensation,
             58766      and benefits, including health insurance, of any person employed as an employee or contractor
             58767      by the employer;
             58768          (d) require an insurance organization subject to Title 31A, Insurance Code, or an
             58769      insurance administrator of a self-insured employer to promptly disclose to the office health
             58770      insurance information pertaining to an insured or an insured's dependents, if known;
             58771          (e) obtain access to information in the records and automated databases of other state
             58772      and local government agencies, including:
             58773          (i) marriage, birth, and divorce records;

             58774          (ii) state and local tax and revenue records providing information on such things as
             58775      residential and mailing addresses, employers, income, and assets;
             58776          (iii) real and titled personal property records;
             58777          (iv) records concerning occupational and professional licenses and the ownership and
             58778      control of corporations, partnerships, and other business entities;
             58779          (v) employment security records;
             58780          (vi) records of agencies administering public assistance programs;
             58781          (vii) motor vehicle department records; and
             58782          (viii) corrections records;
             58783          (f) upon providing notice to the obligor and obligee, direct an obligor or other payor to
             58784      change the payee to the office if support has been assigned to the office under Section
             58785      35A-7-108 or if support is paid through the office pursuant to the Social Security Act, 42
             58786      U.S.C. Sec. 654B;
             58787          (g) order income withholding in accordance with Part 4 of this chapter;
             58788          (h) secure assets to satisfy past-due support by:
             58789          (i) intercepting or seizing periodic or lump-sum payments from:
             58790          (A) a state or local government agency, including unemployment compensation,
             58791      workers' compensation, and other benefits; and
             58792          (B) judgments, settlements, and lotteries;
             58793          (ii) attaching and seizing assets of an obligor held in financial institutions;
             58794          (iii) attaching public and private retirement funds, if the obligor presently:
             58795          (A) receives periodic payments; or
             58796          (B) has the authority to withdraw some or all of the funds; and
             58797          (iv) imposing liens against real and personal property in accordance with this section
             58798      and Section 62A-11-312.5 ; and
             58799          (i) increase monthly payments in accordance with Section 62A-11-320 .
             58800          (2) (a) When taking action under Subsection (1), the office shall send notice under this
             58801      Subsection (2)(a) to the person or entity who is required to comply with the action if not a party

             58802      to a case receiving IV-D services. The notice shall include:
             58803          (i) the authority of the office to take the action;
             58804          (ii) the response required by the recipient;
             58805          (iii) the opportunity to provide clarifying information to the office under Subsection
             58806      (2)(b);
             58807          (iv) the name and telephone number of a person in the office who can respond to
             58808      inquiries; and
             58809          (v) the protection from criminal and civil liability extended under Subsection (7).
             58810          (b) The recipient of a notice sent under Subsection (2)(a) shall promptly comply with
             58811      the terms of the notice and may, if the recipient believes the office's request is in error, send
             58812      clarifying information to the office setting forth the basis for the recipient's belief.
             58813          (3) The office shall in any case in which it requires genetic testing under Subsection
             58814      (1)(a):
             58815          (a) consider clarifying information if submitted by the obligee and alleged father;
             58816          (b) proceed with testing as the office considers appropriate;
             58817          (c) pay the cost of the tests, subject to recoupment from the alleged father if paternity is
             58818      established;
             58819          (d) order a second test if the original test result is challenged, and the challenger pays
             58820      the cost of the second test in advance; and
             58821          (e) require that the genetic test is:
             58822          (i) of a type generally acknowledged as reliable by accreditation bodies designated by
             58823      the federal Secretary of Health and Human Services; and
             58824          (ii) performed by a laboratory approved by such an accreditation body.
             58825          (4) The office may impose a penalty against an entity for failing to provide information
             58826      requested in a subpoena issued under Subsection (1) as follows:
             58827          (a) $25 for each failure to provide requested information; or
             58828          (b) $500 if the failure to provide requested information is the result of a conspiracy
             58829      between the entity and the obligor to not supply the requested information or to supply false or

             58830      incomplete information.
             58831          (5) (a) Unless a court or administrative agency has reduced past-due support to a sum
             58832      certain judgment, the office shall provide concurrent notice to an obligor in accordance with
             58833      Section 62A-11-304.4 of:
             58834          (i) any action taken pursuant to Subsections (1)(h)(i)(B), (l)(h)(ii), (1)(h)(iii), or
             58835      Subsection 62A-11-304.5 (1)(b) if Subsection (5)(b)(iii) does not apply; and
             58836          (ii) the opportunity of the obligor to contest the action and the amount claimed to be
             58837      past-due by filing a written request for an adjudicative proceeding with the office within 15 days
             58838      of notice being sent.
             58839          (b) (i) Upon receipt of a notice of levy from the office for an action taken pursuant to
             58840      Subsections (1)(h)(i)(B), (1)(h)(ii), (1)(h)(iii), or Subsection 62A-11-304.5 (1)(b), a person in
             58841      possession of personal property of the obligor shall:
             58842          (A) secure the property from unauthorized transfer or disposition as required by Section
             58843      62A-11-313 ; and
             58844          (B) surrender the property to the office after 21 days of receiving the notice unless the
             58845      office has notified the person to release all or part of the property to the obligor.
             58846          (ii) Unless released by the office, a notice of levy upon personal property shall be:
             58847          (A) valid for 60 days; and
             58848          (B) effective against any additional property which the obligor may deposit or transfer
             58849      into the possession of the person up to the amount of the levy.
             58850          (iii) If the property upon which the office imposes a levy is insufficient to satisfy the
             58851      specified amount of past-due support and the obligor fails to contest that amount under
             58852      Subsection (5)(a)(ii), the office may proceed under Subsections (1)(h)(i)(B), (1)(h)(ii),
             58853      (1)(h)(iii), or Subsection 62A-11-304.5 (1)(b) against additional property of the obligor until the
             58854      amount specified and the reasonable costs of collection are fully paid.
             58855          (c) Except as provided in Subsection (5)(b)(iii), the office may not disburse funds
             58856      resulting from action requiring notice under Subsection (5)(a)(i) until:
             58857          (i) 21 days after notice was sent to the obligor; and

             58858          (ii) the obligor, if [he] the obligor contests the action under Subsection (5)(a)(ii), has
             58859      exhausted [his] the obligor's administrative remedies and, if appealed to a district court, the
             58860      district court has rendered a final decision.
             58861          (d) Before intercepting or seizing any periodic or lump-sum payment under Subsection
             58862      (1)(h)(i)(A), the office shall:
             58863          (i) comply with Subsection 59-10-529 (2)(a); and
             58864          (ii) include in the notice required by Subsection 59-10-529 (2)(a) reference to
             58865      Subsection (1)(h)(i)(A).
             58866          (e) If Subsection (5)(a) or (5)(d) does not apply, an action against the real or personal
             58867      property of the obligor shall be in accordance with Section 62A-11-312.5 .
             58868          (6) All information received under this section is subject to [Title 63, Chapter 2] Title
             58869      63G, Chapter 2, Government Records Access and Management Act.
             58870          (7) No employer, financial institution, public utility, cable company, insurance
             58871      organization, its agent or employee, or related entity may be civilly or criminally liable for
             58872      providing information to the office or taking any other action requested by the office pursuant
             58873      to this section.
             58874          (8) The actions the office may take under Subsection (1) are in addition to the actions
             58875      the office may take pursuant to Part 4, Income Withholding in IV-D Cases.
             58876          Section 1156. Section 62A-11-304.2 is amended to read:
             58877           62A-11-304.2. Issuance or modification of administrative order -- Compliance
             58878      with court order -- Authority of office -- Stipulated agreements -- Notification
             58879      requirements.
             58880          (1) Through an adjudicative proceeding the office may issue or modify an administrative
             58881      order that:
             58882          (a) determines paternity;
             58883          (b) determines whether an obligor owes support;
             58884          (c) determines temporary orders of child support upon clear and convincing evidence of
             58885      paternity in the form of genetic test results or other evidence;

             58886          (d) requires an obligor to pay a specific or determinable amount of present and future
             58887      support;
             58888          (e) determines the amount of past-due support;
             58889          (f) orders an obligor who owes past-due support and is obligated to support a child
             58890      receiving public assistance to participate in appropriate work activities if the obligor is
             58891      unemployed and is not otherwise incapacitated;
             58892          (g) imposes a penalty authorized under this chapter;
             58893          (h) determines an issue that may be specifically contested under this chapter by a party
             58894      who timely files a written request for an adjudicative proceeding with the office; and
             58895          (i) renews an administrative judgment.
             58896          (2) (a) An abstract of a final administrative order issued under this section or a notice of
             58897      judgment-lien under Section 62A-11-312.5 may be filed with the clerk of any district court.
             58898          (b) Upon a filing under Subsection (2)(a), the clerk of the court shall:
             58899          (i) docket the abstract or notice in the judgment docket of the court and note the time
             58900      of receipt on the abstract or notice and in the judgment docket; and
             58901          (ii) at the request of the office, place a copy of the abstract or notice in the file of a child
             58902      support action involving the same parties.
             58903          (3) If a judicial order has been issued, the office may not issue an order under
             58904      Subsection (1) that is not based on the judicial order, except:
             58905          (a) the office may establish a new obligation in those cases in which the juvenile court
             58906      has ordered the parties to meet with the office to determine the support pursuant to Section
             58907      78-3a-906 ; or
             58908          (b) the office may issue an order of current support in accordance with the child support
             58909      guidelines if the conditions of Subsection 78-45f-207 (2)(c) are met.
             58910          (4) The office may proceed under this section in the name of this state, another state
             58911      under Section 62A-11-305 , any department of this state, the office, or the obligee.
             58912          (5) The office may accept voluntary acknowledgment of a support obligation and enter
             58913      into stipulated agreements providing for the issuance of an administrative order under this part.

             58914          (6) The office may act in the name of the obligee in endorsing and cashing any drafts,
             58915      checks, money orders, or other negotiable instruments received by the office for support.
             58916          (7) The obligor shall, after a notice of agency action has been served on [him] the
             58917      obligor in accordance with Section [ 63-46b-3 ] 63G-4-201 , keep the office informed of:
             58918          (a) [his] the obligor's current address;
             58919          (b) the name and address of current payors of income;
             58920          (c) availability of or access to health insurance coverage; and
             58921          (d) applicable health insurance policy information.
             58922          Section 1157. Section 62A-11-304.4 is amended to read:
             58923           62A-11-304.4. Filing of location information -- Service of process.
             58924          (1) (a) Upon the entry of an order in a proceeding to establish paternity or to establish,
             58925      modify, or enforce a support order, each party shall file identifying information and shall update
             58926      that information as changes occur:
             58927          (i) with the court or administrative agency that conducted the proceeding; and
             58928          (ii) after October 1, 1998, with the state case registry.
             58929          (b) The identifying information required under Subsection (1)(a) shall include the
             58930      person's Social Security number, driver's license number, residential and mailing addresses,
             58931      telephone numbers, the name, address, and telephone number of employers, and any other data
             58932      required by the United States Secretary of Health and Human Services.
             58933          (c) In any subsequent child support action involving the office or between the parties,
             58934      state due process requirements for notice and service of process shall be satisfied as to a party
             58935      upon:
             58936          (i) a sufficient showing that diligent effort has been made to ascertain the location of the
             58937      party; and
             58938          (ii) delivery of notice to the most recent residential or employer address filed with the
             58939      court, administrative agency, or state case registry under Subsection (1)(a).
             58940          (2) (a) The office shall provide individuals who are applying for or receiving services
             58941      under this chapter or who are parties to cases in which services are being provided under this

             58942      chapter:
             58943          (i) with notice of all proceedings in which support obligations might be established or
             58944      modified; and
             58945          (ii) with a copy of any order establishing or modifying a child support obligation, or in
             58946      the case of a petition for modification, a notice of determination that there should be no change
             58947      in the amount of the child support award, within 14 days after issuance of such order or
             58948      determination.
             58949          (b) Notwithstanding Subsection (2)(a)(ii), notice in the case of an interstate order shall
             58950      be provided in accordance with Section 78-45f-614 .
             58951          (3) Service of all notices and orders under this part shall be made in accordance with
             58952      [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, the Utah Rules of
             58953      Civil Procedure, or this section.
             58954          (4) Consistent with [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
             58955      Access and Management Act, the office shall adopt procedures to classify records to prohibit
             58956      the unauthorized use or disclosure of information relating to a proceeding to:
             58957          (a) establish paternity; or
             58958          (b) establish or enforce support.
             58959          (5) (a) The office shall, upon written request, provide location information available in
             58960      its files on a custodial or noncustodial parent to the other party or the other party's legal counsel
             58961      provided that:
             58962          (i) the party seeking the information produces a copy of the parent-time order signed by
             58963      the court;
             58964          (ii) the information has not been safeguarded in accordance with Section 454 of the
             58965      Social Security Act;
             58966          (iii) the party whose location is being sought has been afforded notice in accordance
             58967      with this section of the opportunity to contest release of the information;
             58968          (iv) the party whose location is being sought has not provided the office with a copy of
             58969      a protective order, a current court order prohibiting disclosure, a current court order limiting or

             58970      prohibiting the requesting person's contact with the party or child whose location is being
             58971      sought, a criminal order, an administrative order pursuant to Section 62A-4a-1009 , or
             58972      documentation of a pending proceeding for any of the above; and
             58973          (v) there is no other state or federal law that would prohibit disclosure.
             58974          (b) "Location information" shall consist of the current residential address of the
             58975      custodial or noncustodial parent and, if different and known to the office, the current residence
             58976      of any children who are the subject of the parent-time order. If there is no current residential
             58977      address available, the person's place of employment and any other location information shall be
             58978      disclosed.
             58979          (c) For the purposes of this section, "reason to believe" under Section 454 of the Social
             58980      Security Act means that the person seeking to safeguard information has provided to the office
             58981      a copy of a protective order, current court order prohibiting disclosure, current court order
             58982      prohibiting or limiting the requesting person's contact with the party or child whose location is
             58983      being sought, criminal order signed by a court of competent jurisdiction, an administrative order
             58984      pursuant to Section 62A-4a-1009 , or documentation of a pending proceeding for any of the
             58985      above.
             58986          (d) Neither the state, the department, the office nor its employees shall be liable for any
             58987      information released in accordance with this section.
             58988          (6) Custodial or noncustodial parents or their legal representatives who are denied
             58989      location information in accordance with Subsection (5) may serve the Office of Recovery
             58990      Services to initiate an action to obtain the information.
             58991          Section 1158. Section 62A-11-326.3 is amended to read:
             58992           62A-11-326.3. Determination of parental liability.
             58993          (1) In accordance with [Title 63, Chapter 46b, Utah] Title 63G, Chapter 4,
             58994      Administrative Procedures Act, the office may determine by order the amount of a parent's
             58995      liability for uninsured medical, hospital, and dental expenses of a dependent child, when the
             58996      parent:
             58997          (a) is required by a prior court or administrative order to:

             58998          (i) share those expenses with the other parent of the dependent child; or
             58999          (ii) obtain medical, hospital, or dental care insurance but fails to do so; or
             59000          (b) receives direct payment from an insurer under insurance coverage obtained after the
             59001      prior court or administrative order was issued.
             59002          (2) If the prior court or administrative order does not specify what proportions of the
             59003      expenses are to be shared, the office may determine the amount of liability in accordance with
             59004      established rules.
             59005          (3) This section applies to an order without regard to when it was issued.
             59006          Section 1159. Section 62A-11-333 is amended to read:
             59007           62A-11-333. Right to judicial review.
             59008          (1) (a) Within 30 days of notice of any administrative action on the part of the office to
             59009      establish paternity or establish, modify or enforce a child support order, the obligor may file a
             59010      petition for de novo review with the district court.
             59011          (b) For purposes of Subsection (1)(a), notice includes:
             59012          (i) notice actually received by the obligor in accordance with Section 62A-11-304.4 ;
             59013          (ii) participation by the obligor in the proceedings related to the establishment of the
             59014      paternity or the modification or enforcement of child support; or
             59015          (iii) receiving a paycheck in which a reduction has been made for child support.
             59016          (2) The petition shall name the office and all other appropriate parties as respondents
             59017      and meet the form requirements specified in Section [ 63-46b-15 ] 63G-4-402 .
             59018          (3) A copy of the petition shall be served upon the Child and Family Support Division
             59019      of the Office of Attorney General.
             59020          (4) (a) If the petition is regarding the amount of the child support obligation established
             59021      in accordance with Title 78, Chapter 45, Uniform Civil Liability for Support Act, the court may
             59022      issue a temporary order for child support until a final order is issued.
             59023          (b) The petitioner may file an affidavit stating the amount of child support reasonably
             59024      believed to be due and the court may issue a temporary order for that amount. The temporary
             59025      order shall be valid for 60 days, unless extended by the court while the action is being pursued.

             59026          (c) If the court upholds the amount of support established in Subsection (4)(a), the
             59027      petitioner shall be ordered to make up the difference between the amount originally ordered in
             59028      Subsection (4)(a) and the amount temporarily ordered under Subsection (4)(b).
             59029          (d) This Subsection (4) does not apply to an action for the court-ordered modification
             59030      of a judicial child support order.
             59031          (5) The court may, on its own initiative and based on the evidence before it, determine
             59032      whether the petitioner violated U.R. Civ. P. Rule 11 by filing the action. If the court determines
             59033      that U.R.Civ.P. Rule 11 was violated, it shall, at a minimum, award to the office attorneys' fees
             59034      and costs for the action.
             59035          (6) Nothing in this section precludes the obligor from seeking administrative remedies
             59036      as provided in this chapter.
             59037          Section 1160. Section 62A-11-407 is amended to read:
             59038           62A-11-407. Payor's procedures for income withholding.
             59039          (1) (a) A payor is subject to the requirements, penalties, and effects of a notice served
             59040      on the payor under Section 62A-11-406 .
             59041          (b) A payment of withheld income mailed to the office in an envelope postmarked
             59042      within seven business days of the date the amount would have been paid or credited to the
             59043      obligor but for this section satisfies Subsection 62A-11-406 (3).
             59044          (2) (a) If a payor fails to comply with a notice served upon him under Section
             59045      62A-11-406 , the office, the obligee, if an assignment has not been made under Section
             59046      35A-7-108 , or the obligor may proceed with a civil action against the payor to enforce a
             59047      provision of the notice.
             59048          (b) In addition to a civil action under Subsection (2)(a), the office may bring an
             59049      administrative action pursuant to [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
             59050      Procedures Act, to enforce a provision of the notice.
             59051          (c) If an obligee or obligor brings a civil action under Subsection (2)(a) to enforce a
             59052      provision of the notice, the obligee or obligor may recover any penalty related to that provision
             59053      under Section 62A-11-406 in place of the office.

             59054          (3) If the obligor's child support is owed monthly and the payor's pay periods are at
             59055      more frequent intervals, the payor, with the consent of the office may withhold an equal amount
             59056      at each pay period cumulatively sufficient to pay the monthly child support obligation.
             59057          (4) A payor may combine amounts which [he] the payor has withheld from the incomes
             59058      of multiple obligors into a single payment to the office. If such a combined payment is made,
             59059      the payor shall specify the amount attributable to each individual obligor by name and Social
             59060      Security number.
             59061          (5) In addition to any other remedy provided in this section, a payor is liable to the
             59062      office, obligee, or obligor for costs and reasonable attorneys' fees incurred in enforcing a
             59063      provision in the notice mailed or delivered under Section 62A-11-406 .
             59064          (6) Notwithstanding this section or Section 62A-11-406 , if a payor receives an income
             59065      withholding order or notice issued by another state, the payor shall apply the income
             59066      withholding law of the state of the obligor's principal place of employment in determining:
             59067          (a) the payor's fee for processing income withholding;
             59068          (b) the maximum amount permitted to be withheld from the obligor's income;
             59069          (c) the time periods within which the payor must implement income withholding and
             59070      forward child support payments;
             59071          (d) the priorities for withholding and allocating withheld income for multiple child
             59072      support obligees; and
             59073          (e) any term or condition for withholding not specified in the notice.
             59074          Section 1161. Section 62A-11-603 (Effective 07/01/08) is amended to read:
             59075           62A-11-603 (Effective 07/01/08). Suspension of driver license for child support
             59076      delinquency -- Reinstatement.
             59077          (1) Subject to the provisions of this section, the office may order the suspension of a
             59078      person's driver license if the person is delinquent on a child support obligation.
             59079          (2) Before ordering a suspension of a person's driver license, the office shall serve the
             59080      person with a "notice of intent to suspend driver license."
             59081          (3) The notice described in Subsection (2) shall:

             59082          (a) be personally served or served by certified mail;
             59083          (b) except as otherwise provided in this section, comply with [Title 63, Chapter 46b]
             59084      Title 63G, Chapter 4, Administrative Procedures Act;
             59085          (c) state the amount that the person is in arrears on the person's child support
             59086      obligation; and
             59087          (d) state that, if the person desires to contest the suspension of the person's driver
             59088      license, the person must request an informal adjudicative proceeding with the office within 30
             59089      days after the day on which the notice is mailed or personally served.
             59090          (4) (a) The office shall hold an informal adjudicative proceeding to determine whether a
             59091      person's driver license should be suspended if the person requests a hearing within 30 days after
             59092      the day on which the notice described in Subsection (2) is mailed or personally served on the
             59093      person.
             59094          (b) The informal adjudicative proceeding described in Subsection (4)(a), and any appeal
             59095      of the decision rendered in that proceeding, shall comply with [Title 63, Chapter 46b] Title 63G,
             59096      Chapter 4, Administrative Procedures Act.
             59097          (5) Except as provided in Subsection (6), the office may order that a person's driver
             59098      license be suspended:
             59099          (a) if, after the notice described in Subsection (2) is mailed or personally served, the
             59100      person fails to request an informal adjudicative proceeding within the time period described in
             59101      Subsection (4)(a); or
             59102          (b) following the informal adjudicative proceeding described in Subsection (4)(a), if:
             59103          (i) the presiding officer finds that the person is delinquent on a child support obligation;
             59104      and
             59105          (ii) the finding described in Subsection (5)(b)(i):
             59106          (A) is not timely appealed; or
             59107          (B) is upheld after a timely appeal becomes final.
             59108          (6) The office may not order the suspension of a person's driver license if the person:
             59109          (a) pays the full amount that the person is in arrears on the person's child support

             59110      obligation;
             59111          (b) subject to Subsection (8):
             59112          (i) enters into a payment agreement with the office for the payment of the person's
             59113      current child support obligation and all arrears; and
             59114          (ii) complies with the agreement described in Subsection (6)(b)(i) for any initial
             59115      compliance period required by the agreement;
             59116          (c) obtains a judicial order staying enforcement of the person's child support obligation
             59117      or the amount in arrears; or
             59118          (d) is not currently delinquent on a child support obligation.
             59119          (7) The office shall rescind an order made by the office to suspend a driver license if the
             59120      person:
             59121          (a) pays the full amount that the person is in arrears on the person's child support
             59122      obligation;
             59123          (b) subject to Subsection (8):
             59124          (i) enters into a payment agreement with the office for the payment of the person's
             59125      current child support obligation and all arrears; and
             59126          (ii) complies with the agreement described in Subsection (7)(b)(i) for any initial
             59127      compliance period required by the agreement;
             59128          (c) obtains a judicial order staying enforcement of the person's child support obligation
             59129      or the amount in arrears; or
             59130          (d) is not currently delinquent on a child support obligation.
             59131          (8) For purposes of Subsections (6)(b) and (7)(b), the office shall diligently strive to
             59132      enter into a fair and reasonable payment agreement that takes into account the person's
             59133      employment and financial ability to make payments, provided that there is a reasonable basis to
             59134      believe that the person will comply with the agreement.
             59135          (9) (a) If, after the office seeks to suspend a person's driver license under this section, it
             59136      is determined that the person is not delinquent, the office shall refund to the person any
             59137      noncustodial parent income withholding fee that was collected from the person during the

             59138      erroneously alleged delinquency.
             59139          (b) Subsection (9)(a) does not apply if the person described in Subsection (9)(a) is
             59140      otherwise in arrears on a child support obligation.
             59141          (10) (a) A person whose driver license is ordered suspended pursuant to this section
             59142      may file a request with the office, on a form provided by the office, to have the office rescind
             59143      the order of suspension if:
             59144          (i) the person claims that, since the time of the suspension, circumstances have changed
             59145      such that the person is entitled to have the order of suspension rescinded under Subsection (7);
             59146      and
             59147          (ii) the office has not rescinded the order of suspension.
             59148          (b) The office shall respond, in writing, to a person described in Subsection (10), within
             59149      10 days after the day on which the request is filed with the office, stating whether the person is
             59150      entitled to have the order of suspension rescinded.
             59151          (c) If the office determines, under Subsection (10)(b), that an order to suspend a
             59152      person's license should be rescinded, the office shall immediately rescind the order.
             59153          (d) If the office determines, under Subsection (10)(b), that an order to suspend a
             59154      person's license should not be rescinded:
             59155          (i) the office shall, as part of the response described in Subsection (10)(b), notify the
             59156      person, in writing, of the reasons for that determination; and
             59157          (ii) the person described in this Subsection (10)(d) may, within 15 days after the day on
             59158      which the office sends the response described in Subsection (10)(b), appeal the determination of
             59159      the office to district court.
             59160          (e) The office may not require that a person file the request described in Subsection
             59161      (10)(a) before the office orders that an order of suspension is rescinded, if the office has already
             59162      determined that the order of suspension should be rescinded under Subsection (7).
             59163          (11) The office may make rules, in accordance with [Title 63, Chapter 46a] Title 63G,
             59164      Chapter 3, Utah Administrative Rulemaking Act, to:
             59165          (a) implement the provisions of this part; and

             59166          (b) determine when the arrears described in Subsections (6) and (7) are considered paid.
             59167          Section 1162. Section 62A-13-105 is amended to read:
             59168           62A-13-105. Department duties and powers.
             59169          (1) The department shall administer this chapter within the Division of Substance Abuse
             59170      and Mental Health, created in Section 62A-15-103 and under the policy direction of the Board
             59171      of Substance Abuse and Mental Health created in Section 62A-1-105 .
             59172          (2) The Division of Substance Abuse and Mental Health shall establish rules in
             59173      accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
             59174      Act to:
             59175          (a) establish application procedures for grants and scholarships;
             59176          (b) establish eligibility and selection criteria for grant and scholarship recipients;
             59177          (c) determine grant and scholarship awards and conditions for each recipient;
             59178          (d) designate eligible underserved rural areas regarding available mental health therapy
             59179      services in which recipients may fulfill their service obligations; and
             59180          (e) establish educational requirements necessary for the grant or scholarship recipient to
             59181      be qualified to meet service obligations.
             59182          (3) The Division of Substance Abuse and Mental Health may:
             59183          (a) approve the specific site at which a recipient may fulfill [his] the recipient's service
             59184      obligations under this chapter;
             59185          (b) set limitations on the amount an individual may receive and on the number of years
             59186      for which an individual may receive funds under this chapter;
             59187          (c) cancel grants or scholarships for cause and, for compelling reasons, accept a lesser
             59188      measure of damages for breach of a grant or scholarship contract or release a recipient from the
             59189      service obligation without penalty for extreme hardship or other good cause;
             59190          (d) cancel a grant or scholarship for cause without penalty to the state; and
             59191          (e) cancel a grant or a scholarship if the recipient fails to meet the conditions of the
             59192      award or if it reasonably appears the recipient will not meet the grant or scholarship conditions.
             59193          (4) The department may accept gifts, grants, loans, and other aid or funds from any

             59194      person, association, foundation, trust, corporation, governmental agency, or other entity for the
             59195      purposes set forth in this chapter.
             59196          Section 1163. Section 62A-14-105 is amended to read:
             59197           62A-14-105. Powers and duties of the office.
             59198          (1) The office shall:
             59199          (a) before January 1, 2000, develop and operate a statewide program to:
             59200          (i) educate the public about the role and function of guardians and conservators; and
             59201          (ii) serve as a guardian, conservator, or both for a ward upon appointment by a court
             59202      when no other person is able and willing to do so and the office petitioned for or agreed in
             59203      advance to the appointment;
             59204          (b) possess and exercise all the powers and duties specifically given to the office by
             59205      virtue of being appointed as guardian or conservator of a ward, including the power to access a
             59206      ward's records;
             59207          (c) review and monitor the personal and, if appropriate, financial status of each ward for
             59208      whom the office has been appointed to serve as guardian or conservator;
             59209          (d) train and monitor each employee and volunteer, and monitor each contract provider
             59210      to whom the office has delegated a responsibility for a ward;
             59211          (e) retain all court-delegated powers and duties for a ward;
             59212          (f) report on the personal and financial status of a ward as required by a court in
             59213      accordance with Title 75, Chapter 5, Protection of Persons under Disability and their Property;
             59214          (g) handle a ward's funds in accordance with the department's trust account system;
             59215          (h) request that the department's audit plan, established pursuant to Section
             59216      [ 63-91-401 ] 63I-5-401 , include the requirement of an annual audit of all funds and property
             59217      held by the office on behalf of wards;
             59218          (i) maintain accurate records concerning each ward, [his] the ward's property, and
             59219      office services provided to [him] the ward;
             59220          (j) make reasonable and continuous efforts to find a family member, friend, or other
             59221      person to serve as a ward's guardian or conservator;

             59222          (k) after termination as guardian or conservator, distribute a ward's property in
             59223      accordance with Title 75, Chapter 5, Protection of Persons under Disability and their Property;
             59224          (l) submit recommendations for changes in state law and funding to the governor and
             59225      the Legislature and report to the governor and Legislature, upon request; and
             59226          (m) implement and enforce policies established by the board.
             59227          (2) The office may:
             59228          (a) petition a court pursuant to Title 75, Chapter 5, Protection of Persons under
             59229      Disability and their Property, to be appointed an incapacitated person's guardian, conservator,
             59230      or both after conducting a prepetition assessment under Section 62A-14-107 ;
             59231          (b) develop and operate a statewide program to recruit, train, supervise, and monitor
             59232      volunteers to assist the office in providing guardian and conservator services;
             59233          (c) delegate one or more responsibilities for a ward to an employee, volunteer, or
             59234      contract provider, except as provided in Subsection 62A-14-107 (1);
             59235          (d) solicit and receive private donations to provide guardian and conservator services
             59236      under this chapter; and
             59237          (e) adopt rules, in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             59238      Administrative Rulemaking Act, to:
             59239          (i) effectuate board policy; and
             59240          (ii) carry out the office's role as guardian and conservator of wards as provided in this
             59241      chapter.
             59242          Section 1164. Section 62A-14-106 is amended to read:
             59243           62A-14-106. Board of Public Guardian Services.
             59244          (1) The Board of Public Guardian Services, created in accordance with this section and
             59245      Section 62A-1-105 , is responsible for establishing the policy of the office in accordance with
             59246      this chapter and seeing that the legislative purposes for the office are carried out.
             59247          (2) The executive director shall appoint nine members to the Board of Public Guardian
             59248      Services, as follows:
             59249          (a) a member of the Board of Aging and Adult Services or designee;

             59250          (b) a member of the Board of Services for Persons with Disabilities or designee;
             59251          (c) a member of the Board of Substance Abuse and Mental Health or designee;
             59252          (d) a representative of the long-term care industry;
             59253          (e) a representative of the hospital industry;
             59254          (f) a representative of persons with disabilities;
             59255          (g) a representative of senior citizens;
             59256          (h) a physician; and
             59257          (i) an attorney with experience in guardianship and conservatorship law.
             59258          (3) (a) Except as provided in Subsection (3)(b), each member shall be appointed for a
             59259      four-year term and eligible for one reappointment.
             59260          (b) Notwithstanding Subsection (3)(a), the executive director shall, at the time of
             59261      appointment or reappointment, adjust the length of terms to ensure that the terms of board
             59262      members are staggered so that approximately half of the board is appointed every two years,
             59263      taking into account the remaining term of board members who serve on other department
             59264      boards.
             59265          (c) A board member shall continue in office until the expiration of the member's term
             59266      and until a successor is appointed, which may not exceed 90 days after the formal expiration of
             59267      the term.
             59268          (d) When a vacancy occurs in membership for any reason, the replacement shall be
             59269      appointed for the unexpired term.
             59270          (e) The make up of the board should reflect political and geographic diversity.
             59271          (4) The board shall annually elect a chairperson from its membership. The board shall
             59272      hold meetings at least once every three months. Meetings shall be held from time to time on the
             59273      call of the chairperson or a majority of the board members. Five board members are necessary
             59274      to constitute a quorum at any meeting and, if a quorum exists, the action of a majority of
             59275      members present shall be the action of the board.
             59276          (5) (a) Board members who are not government employees may not receive
             59277      compensation or benefits for their services, but may receive per diem and expenses incurred in

             59278      the performance of their official duties at rates established by the Division of Finance under
             59279      Sections 63A-3-106 and 63A-3-107 .
             59280          (b) Members of the board may decline to receive per diem expenses for their services.
             59281          (6) The board shall:
             59282          (a) establish program policy for the office;
             59283          (b) establish a mechanism for systematic and regular review of existing policy and for
             59284      consideration of policy changes; and
             59285          (c) set fees for the office, excluding attorneys fees, in accordance with Section
             59286      [ 63-38-3.2 ] 63J-1-303 .
             59287          Section 1165. Section 62A-14-108 is amended to read:
             59288           62A-14-108. Office volunteers.
             59289          (1) A person who desires to be an office volunteer shall:
             59290          (a) possess demonstrated personal characteristics of honesty, integrity, compassion, and
             59291      concern for incapacitated persons; and
             59292          (b) upon request, submit information for a background check pursuant to Section
             59293      62A-1-118 .
             59294          (2) An office volunteer may not receive compensation or benefits, but may be
             59295      reimbursed by the office for expenses actually and reasonably incurred, consistent with Title 67,
             59296      Chapter 20, Volunteer Government Workers Act.
             59297          (3) An office volunteer is immune from civil liability pursuant to [Title 63, Chapter 30b]
             59298      Title 63G, Chapter 8, Immunity for Persons Performing Voluntary Services.
             59299          Section 1166. Section 62A-14-109 is amended to read:
             59300           62A-14-109. Contract for services.
             59301          (1) In accordance with [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement
             59302      Code, the office may contract with one or more providers to perform guardian and conservator
             59303      duties.
             59304          (2) The office shall review and monitor the services provided by a contract provider to
             59305      a ward for whom the office has been appointed guardian or conservator.

             59306          Section 1167. Section 62A-15-103 is amended to read:
             59307           62A-15-103. Division -- Creation -- Responsibilities.
             59308          (1) There is created the Division of Substance Abuse and Mental Health within the
             59309      department, under the administration and general supervision of the executive director, and,
             59310      with regard to its programs, under the policy direction of the board. The division is the
             59311      substance abuse authority and the mental health authority for this state.
             59312          (2) The division shall:
             59313          (a) (i) educate the general public regarding the nature and consequences of substance
             59314      abuse by promoting school and community-based prevention programs;
             59315          (ii) render support and assistance to public schools through approved school-based
             59316      substance abuse education programs aimed at prevention of substance abuse;
             59317          (iii) promote or establish programs for the prevention of substance abuse within the
             59318      community setting through community-based prevention programs;
             59319          (iv) cooperate and assist other organizations and private treatment centers for substance
             59320      abusers, by providing them with essential materials for furthering programs of prevention and
             59321      rehabilitation of actual and potential substance abusers; and
             59322          (v) promote or establish programs for education and certification of instructors to
             59323      educate persons convicted of driving under the influence of alcohol or drugs or driving with any
             59324      measurable controlled substance in the body;
             59325          (b) (i) collect and disseminate information pertaining to mental health; and
             59326          (ii) provide direction over the state hospital including approval of its budget,
             59327      administrative policy, and coordination of services with local service plans;
             59328          (iii) promulgate rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             59329      Utah Administrative Rulemaking Act, to educate families concerning mental illness and promote
             59330      family involvement, when appropriate, and with patient consent, in the treatment program of a
             59331      family member; and
             59332          (iv) promulgate rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
             59333      Utah Administrative Rulemaking Act, to direct that all individuals receiving services through

             59334      local mental health authorities or the Utah State Hospital be informed about and, if desired,
             59335      provided assistance in completion of a declaration for mental health treatment in accordance
             59336      with Section 62A-15-1002 ;
             59337          (c) (i) consult and coordinate with local substance abuse authorities and local mental
             59338      health authorities regarding programs and services;
             59339          (ii) provide consultation and other assistance to public and private agencies and groups
             59340      working on substance abuse and mental health issues;
             59341          (iii) promote and establish cooperative relationships with courts, hospitals, clinics,
             59342      medical and social agencies, public health authorities, law enforcement agencies, education and
             59343      research organizations, and other related groups;
             59344          (iv) promote or conduct research on substance abuse and mental health issues, and
             59345      submit to the governor and the Legislature recommendations for changes in policy and
             59346      legislation;
             59347          (v) receive, distribute, and provide direction over public funds for substance abuse and
             59348      mental health services;
             59349          (vi) monitor and evaluate programs provided by local substance abuse authorities and
             59350      local mental health authorities;
             59351          (vii) examine expenditures of any local, state, and federal funds;
             59352          (viii) monitor the expenditure of public funds by:
             59353          (A) local substance abuse authorities;
             59354          (B) local mental health authorities; and
             59355          (C) in counties where they exist, the private contract provider that has an annual or
             59356      otherwise ongoing contract to provide comprehensive substance abuse or mental health
             59357      programs or services for the local substance abuse authority or local mental health authorities;
             59358          (ix) contract with local substance abuse authorities and local mental health authorities
             59359      to provide a comprehensive continuum of services in accordance with board and division policy,
             59360      contract provisions, and the local plan;
             59361          (x) contract with private and public entities for special statewide or nonclinical services

             59362      according to board and division policy;
             59363          (xi) review and approve each local substance abuse authority's plan and each local
             59364      mental health authority's plan in order to ensure:
             59365          (A) a statewide comprehensive continuum of substance abuse services;
             59366          (B) a statewide comprehensive continuum of mental health services; and
             59367          (C) appropriate expenditure of public funds;
             59368          (xii) review and make recommendations regarding each local substance abuse
             59369      authority's contract with its provider of substance abuse programs and services and each local
             59370      mental health authority's contract with its provider of mental health programs and services to
             59371      ensure compliance with state and federal law and policy;
             59372          (xiii) monitor and ensure compliance with board and division policy and contract
             59373      requirements; and
             59374          (xiv) withhold funds from local substance abuse authorities, local mental health
             59375      authorities, and public and private providers for contract noncompliance, failure to comply with
             59376      division directives regarding the use of public funds, or for misuse of public funds or monies;
             59377          (d) assure that the requirements of this part are met and applied uniformly by local
             59378      substance abuse authorities and local mental health authorities across the state;
             59379          (e) require each local substance abuse authority and each local mental health authority
             59380      to submit its plan to the division by May 1 of each year;
             59381          (f) conduct an annual program audit and review of each local substance abuse authority
             59382      in the state and its contract provider and each local mental health authority in the state and its
             59383      contract provider, including:
             59384          (i) a review and determination regarding whether:
             59385          (A) public funds allocated to local substance abuse authorities and local mental health
             59386      authorities are consistent with services rendered and outcomes reported by them or their
             59387      contract providers; and
             59388          (B) each local substance abuse authority and each local mental health authority is
             59389      exercising sufficient oversight and control over public funds allocated for substance abuse and

             59390      mental health programs and services; and
             59391          (ii) items determined by the division to be necessary and appropriate;
             59392          (g) by July 1 of each year, provide to the Health and Human Services Interim
             59393      Committee and the Health and Human Services Appropriations Subcommittee a written report
             59394      that includes:
             59395          (i) the annual audit and review;
             59396          (ii) the financial expenditures of each local substance abuse authority and its contract
             59397      provider and each local mental health authority and its contract provider;
             59398          (iii) the status of the compliance of each local authority and its contract provider with
             59399      its plan, state statutes, and the provisions of the contract awarded; and
             59400          (iv) whether audit guidelines established under Section 62A-15-110 and Subsection
             59401      67-3-1 (10) provide the division with sufficient criteria and assurances of appropriate
             59402      expenditures of public funds; and
             59403          (h) if requested by the Health and Human Services Interim Committee or the Health and
             59404      Human Services Appropriations Subcommittee, provide an oral report as requested.
             59405          (3) (a) The division may refuse to contract with and may pursue its legal remedies
             59406      against any local substance abuse authority or local mental health authority that fails, or has
             59407      failed, to expend public funds in accordance with state law, division policy, contract provisions,
             59408      or directives issued in accordance with state law.
             59409          (b) The division may withhold funds from a local substance abuse authority or local
             59410      mental health authority if the authority's contract with its provider of substance abuse or mental
             59411      health programs or services fails to comply with state and federal law or policy.
             59412          (4) Before reissuing or renewing a contract with any local substance abuse authority or
             59413      local mental health authority, the division shall review and determine whether the local
             59414      substance abuse authority or local mental health authority is complying with its oversight and
             59415      management responsibilities described in Sections 17-43-201 , 17-43-203 , 17-43-303 , and
             59416      17-43-309 . Nothing in this Subsection (4) may be used as a defense to the responsibility and
             59417      liability described in Section 17-43-303 and to the responsibility and liability described in

             59418      Section 17-43-203 .
             59419          (5) In carrying out its duties and responsibilities, the division may not duplicate
             59420      treatment or educational facilities that exist in other divisions or departments of the state, but
             59421      shall work in conjunction with those divisions and departments in rendering the treatment or
             59422      educational services that those divisions and departments are competent and able to provide.
             59423          (6) (a) The division may accept in the name of and on behalf of the state donations,
             59424      gifts, devises, or bequests of real or personal property or services to be used as specified by the
             59425      donor.
             59426          (b) Those donations, gifts, devises, or bequests shall be used by the division in
             59427      performing its powers and duties. Any money so obtained shall be considered private
             59428      nonlapsing funds and shall be deposited into an interest-bearing restricted special revenue fund
             59429      to be used by the division for substance abuse or mental health services. The state treasurer
             59430      may invest the fund and all interest shall remain with the fund.
             59431          (7) The division shall annually review with each local substance abuse authority and
             59432      each local mental health authority the authority's statutory and contract responsibilities
             59433      regarding:
             59434          (a) the use of public funds;
             59435          (b) oversight responsibilities regarding public funds; and
             59436          (c) governance of substance abuse and mental health programs and services.
             59437          (8) The Legislature may refuse to appropriate funds to the division upon the division's
             59438      failure to comply with the provisions of this part.
             59439          Section 1168. Section 62A-15-105 is amended to read:
             59440           62A-15-105. Authority and responsibilities of board.
             59441          The board is the policymaking body for the division and for programs funded with state
             59442      and federal moneys under Sections 17-43-201 , 17-43-301 , 17-43-304 , and 62A-15-110 . The
             59443      board shall:
             59444          (1) in establishing policy, seek input from local substance abuse authorities, local mental
             59445      health authorities, consumers, providers, advocates, division staff, and other interested parties

             59446      as determined by the board;
             59447          (2) establish, by rule, minimum standards for local substance abuse authorities and local
             59448      mental health authorities;
             59449          (3) establish, by rule, procedures for developing its policies which ensure that local
             59450      substance abuse authorities and local mental health authorities are given opportunity to
             59451      comment and provide input on any new policy of the board or proposed changes in existing
             59452      policy of the board;
             59453          (4) provide a mechanism for review of its existing policy, and for consideration of
             59454      policy changes that are proposed by local substance abuse authorities or local mental health
             59455      authorities;
             59456          (5) develop program policies, standards, rules, and fee schedules for the division; and
             59457          (6) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             59458      Administrative Rulemaking Act, make rules approving the form and content of substance abuse
             59459      treatment, educational series, screening, and assessment that are described in Section
             59460      41-6a-501 .
             59461          Section 1169. Section 62A-15-401 is amended to read:
             59462           62A-15-401. Alcohol training and education seminar.
             59463          (1) As used in this part:
             59464          (a) "Instructor" means a person that directly provides the instruction during an alcohol
             59465      training and education seminar for a seminar provider.
             59466          (b) "Licensee" means a person who is:
             59467          (i) (A) a new or renewing licensee under Title 32A, Alcoholic Beverage Control Act;
             59468      and
             59469          (B) engaged in the retail sale of alcoholic beverages for consumption on the premises of
             59470      the licensee; or
             59471          (ii) a business that is:
             59472          (A) a new or renewing licensee licensed by a city, town, or county; and
             59473          (B) engaged in the retail sale of beer for consumption off the premises of the licensee.

             59474          (c) "Off-premise beer retailer" is as defined in Section 32A-1-105 .
             59475          (d) "Seminar provider" means a person other than the division who provides an alcohol
             59476      training and education seminar meeting the requirements of this section.
             59477          (2) (a) This section applies to an individual who, as defined by the board by rule:
             59478          (i) manages operations at the premises of a licensee engaged in the retail sale of
             59479      alcoholic beverages for consumption on the premises of the licensee;
             59480          (ii) supervises the serving of alcoholic beverages to a customer for consumption on the
             59481      premises of a licensee;
             59482          (iii) serves alcoholic beverages to a customer for consumption on the premises of a
             59483      licensee;
             59484          (iv) directly supervises the sale of beer to a customer for consumption off the premises
             59485      of an off-premise beer retailer licensee; or
             59486          (v) sells beer to a customer for consumption off the premises of an off-premise beer
             59487      retailer licensee.
             59488          (b) If the individual does not have a valid certificate that the individual has completed an
             59489      alcohol training and education seminar, an individual described in Subsection (2)(a) shall:
             59490          (i) (A) complete an alcohol training and education seminar within 30 days of the
             59491      following if the individual is described in Subsections (2)(a)(i) through (iii):
             59492          (I) if the individual is an employee, the day the individual begins employment;
             59493          (II) if the individual is an independent contractor, the day the individual is first hired; or
             59494          (III) if the individual holds an ownership interest in the licensee, the day that the
             59495      individual first engages in an activity that would result in that individual being required to
             59496      complete an alcohol training and education seminar; or
             59497          (B) complete an alcohol training and education seminar within the time periods
             59498      specified in Subsection 32A-10-103 (1) if the individual is described in Subsections (2)(a)(iv)
             59499      and (v); and
             59500          (ii) pay a fee:
             59501          (A) to the seminar provider; and

             59502          (B) that is equal to or greater than the amount established under Subsection (4)(h).
             59503          (c) An individual shall have a valid certificate that the individual completed an alcohol
             59504      training and education seminar within the time period provided in this Subsection (2) to engage
             59505      in an activity described in Subsection (2)(a).
             59506          (d) A certificate that an individual has completed an alcohol training and education
             59507      seminar is valid for:
             59508          (i) three years from the day on which the certificate is issued for an individual described
             59509      in Subsection (2)(a)(i), (ii), or (iii); and
             59510          (ii) five years from the day on which the certificate is issued for an individual described
             59511      in Subsection (2)(a)(iv) or (v).
             59512          (3) (a) A licensee may not permit an individual who is not in compliance with
             59513      Subsection (2) to:
             59514          (i) serve or supervise the serving of alcoholic beverages to a customer for consumption
             59515      on the premises of the licensee;
             59516          (ii) engage in any activity that would constitute managing operations at the premises of
             59517      a licensee that engages in the retail sale of alcoholic beverages for consumption on the premises
             59518      of the licensee;
             59519          (iii) directly supervise the sale of beer to a customer for consumption off the premises
             59520      of an off-premise beer retailer licensee; or
             59521          (iv) sell beer to a customer for consumption off the premises of an off-premise beer
             59522      retailer licensee.
             59523          (b) A licensee that violates Subsection (3)(a) is subject to Section 32A-1-401 .
             59524          (4) The division shall:
             59525          (a) (i) provide alcohol training and education seminars; or
             59526          (ii) certify one or more seminar providers;
             59527          (b) establish the curriculum for an alcohol training and education seminar that includes
             59528      the following subjects:
             59529          (i) (A) alcohol as a drug; and

             59530          (B) alcohol's effect on the body and behavior;
             59531          (ii) recognizing the problem drinker or signs of intoxication;
             59532          (iii) an overview of state alcohol laws related to responsible beverage sale or service, as
             59533      determined in consultation with the Department of Alcoholic Beverage Control;
             59534          (iv) dealing with the problem customer, including ways to terminate sale or service; and
             59535          (v) for those supervising or engaging in the retail sale of alcoholic beverages for
             59536      consumption on the premises of a licensee, alternative means of transportation to get the
             59537      customer safely home;
             59538          (c) recertify each seminar provider every three years;
             59539          (d) monitor compliance with the curriculum described in Subsection (4)(b);
             59540          (e) maintain for at least five years a record of every person who has completed an
             59541      alcohol training and education seminar;
             59542          (f) provide the information described in Subsection (4)(e) on request to:
             59543          (i) the Department of Alcoholic Beverage Control;
             59544          (ii) law enforcement; or
             59545          (iii) a person licensed by the state or a local government to sell alcoholic beverages;
             59546          (g) provide the Department of Alcoholic Beverage Control on request a list of any
             59547      seminar provider certified by the division; and
             59548          (h) establish a fee amount for each person attending an alcohol training and education
             59549      seminar that is sufficient to offset the division's cost of administering this section.
             59550          (5) The board shall by rule made in accordance with [Title 63, Chapter 46a] Title 63G,
             59551      Chapter 3, Utah Administrative Rulemaking Act:
             59552          (a) define what constitutes under this section an individual who:
             59553          (i) manages operations at the premises of a licensee engaged in the retail sale of
             59554      alcoholic beverages for consumption on the premises of the licensee;
             59555          (ii) supervises the serving of alcoholic beverages to a customer for consumption on the
             59556      premises of a licensee;
             59557          (iii) serves alcoholic beverages to a customer for consumption on the premises of a

             59558      licensee;
             59559          (iv) directly supervises the sale of beer to a customer for consumption off the premises
             59560      of an off-premise retailer beer licensee; or
             59561          (v) sells beer to a customer for consumption off the premises of an off-premise beer
             59562      retailer licensee;
             59563          (b) establish criteria for certifying and recertifying a seminar provider; and
             59564          (c) establish guidelines for the manner in which an instructor provides an alcohol
             59565      education and training seminar.
             59566          (6) A seminar provider shall:
             59567          (a) obtain recertification by the division every three years;
             59568          (b) ensure that an instructor used by the seminar provider:
             59569          (i) follows the curriculum established under this section; and
             59570          (ii) conducts an alcohol training and education seminar in accordance with the
             59571      guidelines established by rule;
             59572          (c) ensure that any information provided by the seminar provider or instructor of a
             59573      seminar provider is consistent with:
             59574          (i) the curriculum established under this section; and
             59575          (ii) this section;
             59576          (d) provide the division with the names of all persons who complete an alcohol training
             59577      and education seminar provided by the seminar provider;
             59578          (e) (i) collect a fee for each person attending an alcohol training and education seminar
             59579      in accordance with Subsection (2); and
             59580          (ii) forward to the division the portion of the fee that is equal to the amount described in
             59581      Subsection (4)(h); and
             59582          (f) issue a certificate to an individual that completes an alcohol training and education
             59583      seminar provided by the seminar provider.
             59584          (7) (a) If after a hearing conducted in accordance with [Title 63, Chapter 46b] Title
             59585      63G, Chapter 4, Administrative Procedures Act, the division finds that a seminar provider

             59586      violates this section or that an instructor of the seminar provider violates this section, the
             59587      division may:
             59588          (i) suspend the certification of the seminar provider for a period not to exceed 90 days;
             59589          (ii) revoke the certification of the seminar provider;
             59590          (iii) require the seminar provider to take corrective action regarding an instructor; or
             59591          (iv) prohibit the seminar provider from using an instructor until such time that the
             59592      seminar provider establishes to the satisfaction of the division that the instructor is in
             59593      compliance with Subsection (6)(b).
             59594          (b) The division may certify a seminar provider whose certification is revoked:
             59595          (i) no sooner than 90 days from the date the certification is revoked; and
             59596          (ii) if the seminar provider establishes to the satisfaction of the division that the seminar
             59597      provider will comply with this section.
             59598          Section 1170. Section 62A-15-704 is amended to read:
             59599           62A-15-704. Invasive treatment -- Due process proceedings.
             59600          (1) For purposes of this section, "invasive treatment" means treatment in which a
             59601      constitutionally protected liberty or privacy interest may be affected, including antipsychotic
             59602      medication, electroshock therapy, and psychosurgery.
             59603          (2) The requirements of this section apply to all children receiving services or treatment
             59604      from a local mental health authority, its designee, or its provider regardless of whether a local
             59605      mental health authority has physical custody of the child or the child is receiving outpatient
             59606      treatment from the local authority, its designee, or provider.
             59607          (3) (a) The division shall promulgate rules, in accordance with [Title 63, Chapter 46a]
             59608      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing due process
             59609      procedures for children prior to any invasive treatment as follows:
             59610          (i) with regard to antipsychotic medications, if either the parent or child disagrees with
             59611      that treatment, a due process proceeding shall be held in compliance with the procedures
             59612      established under this Subsection (3);
             59613          (ii) with regard to psychosurgery and electroshock therapy, a due process proceeding

             59614      shall be conducted pursuant to the procedures established under this Subsection (3), regardless
             59615      of whether the parent or child agree or disagree with the treatment; and
             59616          (iii) other possible invasive treatments may be conducted unless either the parent or
             59617      child disagrees with the treatment, in which case a due process proceeding shall be conducted
             59618      pursuant to the procedures established under this Subsection (3).
             59619          (b) In promulgating the rules required by Subsection (3)(a), the division shall consider
             59620      the advisability of utilizing an administrative law judge, court proceedings, a neutral and
             59621      detached fact finder, and other methods of providing due process for the purposes of this
             59622      section. The division shall also establish the criteria and basis for determining when invasive
             59623      treatment should be administered.
             59624          Section 1171. Section 62A-15-707 is amended to read:
             59625           62A-15-707. Confidentiality of information and records -- Exceptions -- Penalty.
             59626          (1) Notwithstanding the provisions of [Sections 63-2-101 through 63-2-909 ] Title 63G,
             59627      Chapter 2, Government Records Access Management Act, all certificates, applications, records,
             59628      and reports made for the purpose of this part that directly or indirectly identify a patient or
             59629      former patient or an individual whose commitment has been sought under this part, shall be kept
             59630      confidential and may not be disclosed by any person except as follows:
             59631          (a) the individual identified consents after reaching 18 years of age;
             59632          (b) the child's parent or legal guardian consents;
             59633          (c) disclosure is necessary to carry out any of the provisions of this part; or
             59634          (d) a court may direct, upon its determination that disclosure is necessary for the
             59635      conduct of proceedings before it, and that failure to make the disclosure would be contrary to
             59636      the public interest.
             59637          (2) A person who violates any provision of this section is guilty of a class B
             59638      misdemeanor.
             59639          Section 1172. Section 62A-15-902 is amended to read:
             59640           62A-15-902. Design and operation -- Security.
             59641          (1) The forensic mental health facility is a secure treatment facility.

             59642          (2) (a) The forensic mental health facility accommodates the following populations:
             59643          (i) prison inmates displaying mental illness, as defined in Section 62A-15-602 ,
             59644      necessitating treatment in a secure mental health facility;
             59645          (ii) criminally adjudicated persons found guilty and mentally ill or guilty and mentally ill
             59646      at the time of the offense undergoing evaluation for mental illness under Title 77, Chapter 16a,
             59647      Commitment and Treatment of Mentally Ill Persons;
             59648          (iii) criminally adjudicated persons undergoing evaluation for competency or found
             59649      guilty and mentally ill or guilty and mentally ill at the time of the offense under Title 77, Chapter
             59650      16a, Commitment and Treatment of Mentally Ill Persons, also have mental retardation;
             59651          (iv) persons undergoing evaluation for competency or found by a court to be
             59652      incompetent to proceed in accordance with Title 77, Chapter 15, Inquiry Into Sanity of
             59653      Defendant, or not guilty by reason of insanity under Title 77, Chapter 14, Defenses;
             59654          (v) persons who are civilly committed to the custody of a local mental health authority
             59655      in accordance with Title 62A, Chapter 15, Part 6, Utah State Hospital and Other Mental Health
             59656      Facilities, and who may not be properly supervised by the Utah State Hospital because of a lack
             59657      of necessary security, as determined by the superintendent or [his] the superintendent's designee;
             59658      and
             59659          (vi) persons ordered to commit themselves to the custody of the Division of Substance
             59660      Abuse and Mental Health for treatment at the Utah State Hospital as a condition of probation or
             59661      stay of sentence pursuant to Title 77, Chapter 18, The Judgment.
             59662          (b) Placement of an offender in the forensic mental health facility under any category
             59663      described in Subsection (2)(a)(ii), (iii), (iv), or (vi) shall be made on the basis of the offender's
             59664      status as established by the court at the time of adjudication.
             59665          (c) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             59666      Administrative Rulemaking Act, the department shall make rules providing for the allocation of
             59667      beds to the categories described in Subsection (2)(a).
             59668          (3) The department shall:
             59669          (a) own and operate the forensic mental health facility;

             59670          (b) provide and supervise administrative and clinical staff; and
             59671          (c) provide security staff who are trained as psychiatric technicians.
             59672          (4) Pursuant to Subsection 62A-15-603 (3) the executive director shall designate
             59673      individuals to perform security functions for the state hospital.
             59674          Section 1173. Section 63-11-12 is amended to read:
             59675           63-11-12. Board of Parks and Recreation -- Creation -- Functions.
             59676          There is created within the Department of Natural Resources a Board of Parks and
             59677      Recreation which, except as otherwise provided in this act, shall assume all of the policy-making
             59678      functions, powers, duties, rights and responsibilities of the Utah State Park and Recreation
             59679      Commission, together with all functions, powers, duties, rights and responsibilities granted to
             59680      the Board of Parks and Recreation by this act. The Board of Parks and Recreation shall be the
             59681      policy-making body of the Division of Parks and Recreation. Except as otherwise provided in
             59682      this act, whenever reference is made in Title 63, or any other provision of law, to the Utah State
             59683      Park and Recreation Commission, it shall be construed as referring to the Board of Parks and
             59684      Recreation where such reference pertains to policy-making functions, powers, duties, rights and
             59685      responsibilities; but in all other instances such reference shall be construed as referring to the
             59686      Division of Parks and Recreation.
             59687          Section 1174. Section 63-11-17 is amended to read:
             59688           63-11-17. Powers and duties of Board and Division of Parks and Recreation.
             59689          (1) (a) The board may make rules:
             59690          (i) governing the use of the state park system;
             59691          (ii) to protect state parks and their natural and cultural resources from misuse or
             59692      damage, including watersheds, plants, wildlife, and park amenities; and
             59693          (iii) to provide for public safety and preserve the peace within state parks.
             59694          (b) To accomplish the purposes stated in Subsection (1)(a), the board may enact rules
             59695      that:
             59696          (i) close or partially close state parks; or
             59697          (ii) establish use or access restrictions within state parks.

             59698          (c) Rules made under Subsection (1) may not have the effect of preventing the transfer
             59699      of livestock along a livestock highway established in accordance with Section 72-3-112 .
             59700          (2) The Division of Wildlife Resources shall retain the power and jurisdiction conferred
             59701      upon it by law within state parks and on property controlled by the Division of Parks and
             59702      Recreation with reference to fish and game.
             59703          (3) The Division of Parks and Recreation shall permit multiple use of state parks and
             59704      property controlled by it for purposes such as grazing, fishing and hunting, mining, and the
             59705      development and utilization of water and other natural resources.
             59706          (4) (a) The division may acquire real and personal property in the name of the state by
             59707      all legal and proper means, including purchase, gift, devise, eminent domain, lease, exchange, or
             59708      otherwise, subject to the approval of the executive director and the governor.
             59709          (b) As used in this section, "real property" includes land under water, upland, and all
             59710      other property commonly or legally defined as real property.
             59711          (c) In acquiring any real or personal property, the credit of the state may not be pledged
             59712      without the consent of the legislature.
             59713          (5) (a) Before acquiring any real property, the division shall notify the county legislative
             59714      body of the county where the property is situated of its intention to acquire the property.
             59715          (b) If the county legislative body requests a hearing within ten days of receipt of the
             59716      notice, the board shall hold a public hearing in the county concerning the matter.
             59717          (6) Acceptance of gifts or devises of land or other property shall be at the discretion of
             59718      the division, subject to the approval of the executive director of the Department of Natural
             59719      Resources and the governor.
             59720          (7) Acquisition of property by eminent domain shall be in the manner authorized by
             59721      Title 78, Chapter 34, Eminent Domain.
             59722          (8) (a) The Division of Parks and Recreation may make charges for special services and
             59723      use of facilities, the income from which shall be available for park and recreation purposes.
             59724          (b) The division may conduct and operate those services necessary for the comfort and
             59725      convenience of the public.

             59726          (c) The board shall adopt appropriate rules governing the collection of charges under
             59727      this Subsection (8).
             59728          (9) (a) The division may lease or rent concessions of all lawful kinds and nature in state
             59729      parks and property to persons, partnerships, and corporations for a valuable consideration upon
             59730      the recommendation of the board.
             59731          (b) The division shall comply with [Title 63, Chapter 56] Title 63G, Chapter 6, Utah
             59732      Procurement Code, in selecting concessionaires.
             59733          (10) The division shall proceed without delay to negotiate with the federal government
             59734      concerning the Weber Basin and other recreation and reclamation projects.
             59735          Section 1175. Section 63-11a-503 is amended to read:
             59736           63-11a-503. Centennial Nonmotorized Paths and Trail Crossings Program --
             59737      Eligibility and distribution -- Rulemaking.
             59738          (1) There is created the Centennial Nonmotorized Paths and Trail Crossings Program.
             59739          (2) The program shall be funded from the following sources:
             59740          (a) appropriations made to the program by the Legislature; and
             59741          (b) contributions from other public and private sources for deposit into the program.
             59742          (3) All monies appropriated to the Centennial Nonmotorized Paths and Trail Crossings
             59743      Program are nonlapsing.
             59744          (4) Subject to Subsection (5), the division, upon the recommendation of the council,
             59745      shall authorize the use of program monies for state, county, and municipal projects that:
             59746          (a) provide continuous and safe routes, paths, or trails for equestrian riders, pedestrians,
             59747      bicyclists, and other human powered vehicle operators; and
             59748          (b) provide access past major highways and other physical impediments that limit safe
             59749      equestrian riders, pedestrian, bicyclist, and other human powered vehicles.
             59750          (5) The program monies authorized under Subsection (4) are subject to:
             59751          (a) monies available in the program;
             59752          (b) the provisions of this section; and
             59753          (c) rules made under Subsection (8).

             59754          (6) (a) The state, a county, or a municipality may apply to the division under this
             59755      section for monies from the program for a specified project.
             59756          (b) (i) Program monies may not exceed 50% of the total costs for any project. The
             59757      remaining project costs must be provided by the state, the county, or the municipality that
             59758      applies for program monies as matching funds.
             59759          (ii) Matching funds may be provided from any available source, including grants and
             59760      other private or public sources.
             59761          (7) A single project may not receive more than 50% of the total program monies
             59762      available in a fiscal year except upon the unanimous recommendation of the council.
             59763          (8) (a) The division shall administer the program.
             59764          (b) The Board of Parks and Recreation shall make rules in accordance with [Title 63,
             59765      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing the:
             59766          (i) prioritizing and awarding of program monies by the division; and
             59767          (ii) procedures for the state, a county, or a municipality to apply for program monies for
             59768      projects.
             59769          Section 1176. Section 63-34-3.1 is amended to read:
             59770           63-34-3.1. Procedures -- Adjudicative proceedings.
             59771          The Department of Natural Resources and the divisions, boards, and councils referred to
             59772      in Section 63-34-3 shall comply with the procedures and requirements of [Title 63, Chapter
             59773      46b,] Title 63G, Chapter 4, Administrative Procedures Act, in their adjudicative proceedings.
             59774          Section 1177. Section 63-34-5 (Contingently Effective) is amended to read:
             59775           63-34-5 (Contingently Effective). Executive director of Department of Natural
             59776      Resources -- Appointment -- Removal -- Compensation -- Responsibilities -- Department
             59777      fee schedule.
             59778          (1) (a) The chief administrative officer of the Department of Natural Resources shall be
             59779      an executive director appointed by the governor with the consent of the Senate.
             59780          (b) The executive director may be removed at the will of the governor.
             59781          (c) The executive director shall receive a salary established by the governor within the

             59782      salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
             59783          (2) The executive director shall:
             59784          (a) administer and supervise the Department of Natural Resources and provide for
             59785      coordination and cooperation among the boards, divisions, and offices of the department;
             59786          (b) approve the budget of each board and division;
             59787          (c) participate in regulatory proceedings as appropriate to the functions and duties of
             59788      the department;
             59789          (d) ensure that funds appropriated to the Department of Natural Resources from the
             59790      Wetlands Protection Account created by Section 63-34-3.2 are expended in accordance with
             59791      Subsection 63-34-3.2 (3);
             59792          (e) ensure that funds appropriated to the Department of Natural Resources from the
             59793      Recreational Trails and Streams Enhancement and Protection Account created by Section
             59794      63-34-3.3 are expended in accordance with Subsection 63-34-3.3 (3);
             59795          (f) report at the end of each fiscal year to the governor on department activities, and
             59796      activities of the boards and divisions; and
             59797          (g) perform other duties as provided by the Legislature by statute.
             59798          (3) (a) Unless otherwise provided by statute, the department may adopt a schedule of
             59799      fees assessed for services provided by the department.
             59800          (b) A fee described in Subsection (3)(a) shall:
             59801          (i) be reasonable and fair; and
             59802          (ii) reflect the cost of services provided.
             59803          (c) Each fee established under this Subsection (3) shall be submitted to and approved by
             59804      the Legislature as part of the department's annual appropriations request.
             59805          (d) The department may not charge or collect any fee established under this Subsection
             59806      (3) without approval of the Legislature.
             59807          Section 1178. Section 63-34-15 is amended to read:
             59808           63-34-15. Outdoor recreation facilities -- Participation in federal programs.
             59809          (1) The Legislature finds that the state of Utah and its political subdivisions should

             59810      enjoy the benefits of federal assistance programs for the planning and development of the
             59811      outdoor recreation resources of the state, including the acquisition of lands and waters and
             59812      interests in land and water.
             59813          (2) To accomplish those purposes, the executive director of the Department of Natural
             59814      Resources may, by following the procedures and requirements of [Title 63, Chapter 38e] Title
             59815      63J, Chapter 5, Federal Funds Procedures, seek federal grants, loans, or participation in federal
             59816      programs.
             59817          Section 1179. Section 63-34-17 is amended to read:
             59818           63-34-17. Outdoor recreation facilities -- Powers of executive director to obtain
             59819      federal aid.
             59820          The executive director of natural resources may, by following the procedures and
             59821      requirements of [Title 63, Chapter 38e] Title 63J, Chapter 5, Federal Funds Procedures, apply
             59822      to any appropriate agency or officer of the United States for participation in or the receipt of aid
             59823      from any federal program respecting outdoor recreation. [He] The executive director may, in
             59824      cooperation with other state agencies and after obtaining the approvals required by [Title 63,
             59825      Chapter 38e] Title 63J, Chapter 5, Federal Funds Procedures, enter into contracts and
             59826      agreements with the United States or any appropriate agency thereof, keep financial and other
             59827      records relating thereto, and furnish to appropriate officials and agencies of the United States
             59828      such reports and information as may be reasonably necessary to enable such officials and
             59829      agencies to perform their duties under such programs. In connection with obtaining the benefits
             59830      of any such program, the executive director of natural resources shall coordinate the
             59831      department's activities with and represent the interests of all agencies and subdivisions of the
             59832      state having interests in the planning, development, and maintenance of outdoor recreation
             59833      resources and facilities.
             59834          Section 1180. Section 63-63c-101 is amended to read:
             59835           63-63c-101. Security surcharge -- Application and exemptions -- Deposit in
             59836      restricted account.
             59837          (1) In addition to any fine, penalty, forfeiture, or other surcharge, a security surcharge

             59838      of $25 shall be assessed in all courts of record on all criminal convictions and juvenile
             59839      delinquency judgments.
             59840          (2) The security surcharge may not be imposed upon:
             59841          (a) nonmoving traffic violations;
             59842          (b) community service; and
             59843          (c) penalties assessed by the juvenile court as part of the nonjudicial adjustment of a
             59844      case under Section 78-3a-502 .
             59845          (3) The security surcharge shall be collected after the surcharge under Section
             59846      [ 63-63a-1 ] 51-9-401 , but before any fine, and deposited with the state treasurer. A fine that
             59847      would otherwise have been charged may not be reduced due to the imposition of the security
             59848      surcharge.
             59849          (4) The state treasurer shall deposit the collected security surcharge in the restricted
             59850      account, Court Security Account, as provided in Section 63-63c-102 .
             59851          Section 1181. Section 63-73-4 is amended to read:
             59852           63-73-4. Responsibilities of board.
             59853          The board has the following responsibilities:
             59854          (1) establish and review policies, programs, and priorities;
             59855          (2) review and recommend budgets;
             59856          (3) assess the needs of the community with regard to development and use of geologic
             59857      resources;
             59858          (4) keep the director advised concerning survey policies; and
             59859          (5) enact rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, the
             59860      Utah Administrative Rulemaking Act, that are necessary to carry out the purposes of this
             59861      chapter.
             59862          Section 1182. Section 63-73-6 is amended to read:
             59863           63-73-6. Powers and duties of survey.
             59864          (1) The survey shall:
             59865          (a) assist and advise state and local governmental agencies and state educational

             59866      institutions on geologic, paleontologic, and mineralogic subjects;
             59867          (b) collect and distribute reliable information regarding the mineral industry and mineral
             59868      resources, topography, paleontology, and geology of the state;
             59869          (c) survey the geology of the state, including mineral occurrences and the ores of
             59870      metals, energy resources, industrial minerals and rocks, mineral-bearing waters, and surface and
             59871      ground water resources, with special reference to their economic contents, values, uses, kind,
             59872      and availability in order to facilitate their economic use;
             59873          (d) investigate the kind, amount, and availability of mineral substances contained in
             59874      lands owned and controlled by the state, to contribute to the most effective and beneficial
             59875      administration of these lands for the state;
             59876          (e) determine and investigate areas of geologic and topographic hazards that could
             59877      affect the safety of, or cause economic loss to, the citizens of the state;
             59878          (f) assist local and state government agencies in their planning, zoning, and building
             59879      regulation functions by publishing maps, delineating appropriately wide special earthquake risk
             59880      areas, and, at the request of state agencies or other governmental agencies, review the siting of
             59881      critical facilities;
             59882          (g) cooperate with state agencies, political subdivisions of the state, quasi-governmental
             59883      agencies, federal agencies, schools of higher education, and others in fields of mutual concern,
             59884      which may include field investigations and preparation, publication, and distribution of reports
             59885      and maps;
             59886          (h) collect and preserve data pertaining to mineral resource exploration and
             59887      development programs and construction activities, such as claim maps, location of drill holes,
             59888      location of surface and underground workings, geologic plans and sections, drill logs, and assay
             59889      and sample maps, including the maintenance of a sample library of cores and cuttings;
             59890          (i) study and analyze other scientific, economic, or aesthetic problems as, in the
             59891      judgment of the board, should be undertaken by the survey to serve the needs of the state and to
             59892      support the development of natural resources and utilization of lands within the state;
             59893          (j) prepare, publish, distribute, and sell maps, reports, and bulletins, embodying the

             59894      work accomplished by the survey, directly or in collaboration with others, and collect and
             59895      prepare exhibits of the geological and mineral resources of this state and interpret their
             59896      significance;
             59897          (k) collect, maintain, and preserve data and information in order to accomplish the
             59898      purposes of this section and act as a repository for information concerning the geology of this
             59899      state;
             59900          (l) stimulate research, study, and activities in the field of paleontology;
             59901          (m) mark, protect, and preserve critical paleontological sites;
             59902          (n) collect, preserve, and administer critical paleontological specimens until they are
             59903      placed in a repository or curation facility;
             59904          (o) administer critical paleontological site excavation records;
             59905          (p) edit and publish critical paleontological records and reports; and
             59906          (q) by following the procedures and requirements of [Title 63, Chapter 38e] Title 63J,
             59907      Chapter 5, Federal Funds Procedures, seek federal grants, loans, or participation in federal
             59908      programs, and, in accordance with applicable federal program guidelines, administer federally
             59909      funded state programs regarding:
             59910          (i) renewable energy;
             59911          (ii) energy efficiency; and
             59912          (iii) energy conservation.
             59913          (2) (a) The survey may maintain as confidential, and not as a public record, information
             59914      provided to the survey by any source.
             59915          (b) The board shall adopt rules in order to determine whether to accept such
             59916      information and to maintain the confidentiality of the accepted information.
             59917          (c) The survey shall maintain information received from any source at the level of
             59918      confidentiality assigned to it by the source.
             59919          (3) Upon approval of the board, the survey shall undertake other activities consistent
             59920      with Subsection (1).
             59921          (4) (a) Subject to the authority granted to the department, the survey may enter into

             59922      cooperative agreements with the entities specified in Subsection (1)(g), if approved by the
             59923      board, and may accept or commit allocated or budgeted funds in connection with those
             59924      agreements.
             59925          (b) The survey may undertake joint projects with private entities if:
             59926          (i) the action is approved by the board;
             59927          (ii) the projects are not inconsistent with the state's objectives; and
             59928          (iii) the results of the projects are available to the public.
             59929          Section 1183. Section 63A-1-105.5 is amended to read:
             59930           63A-1-105.5. Rulemaking authority of executive director.
             59931          The executive director shall, upon the recommendation of the appropriate division
             59932      directors, make rules consistent with state and federal law, and in accordance with [Title 63,
             59933      Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, governing:
             59934          (1) administrative services; and
             59935          (2) the provision and use of administrative services furnished to state agencies and
             59936      institutions.
             59937          Section 1184. Section 63A-1-112 is amended to read:
             59938           63A-1-112. Certificates of participation -- Legislative approval required --
             59939      Definition -- Exception.
             59940          (1) (a) Certificates of participation for either capital facilities or capital improvements
             59941      may not be issued by the department, its subdivisions, or any other state agency after July 1,
             59942      1985, without prior legislative approval.
             59943          (b) Nothing in this section affects the rights and obligations surrounding certificates of
             59944      participation that were issued prior to July 1, 1985.
             59945          (2) (a) As used in this section, "certificate of participation" means an instrument that
             59946      acts as evidence of the certificate holder's undivided interest in property being lease-purchased,
             59947      the payment on which is subject to appropriation by the Legislature.
             59948          (b) (i) For purposes of this Subsection (2)(b), "energy savings agreement" has the
             59949      meaning as defined in Section [ 63-9-67 ] 63A-5-701 .

             59950          (ii) "Certificate of participation" does not include an energy savings agreement.
             59951          Section 1185. Section 63A-1-114 is amended to read:
             59952           63A-1-114. Rate Committee -- Membership -- Duties.
             59953          (1) (a) There is created a Rate Committee which shall consist of:
             59954          (i) the director of the Governor's Office of Planning and Budget, or a designee;
             59955          (ii) the executive directors of three state agencies that use services and pay rates to one
             59956      of the department internal service funds, or their designee, appointed by the governor for a
             59957      two-year term;
             59958          (iii) the executive director of the Department of Administrative Services, or a designee;
             59959          (iv) the director of the Division of Finance, or a designee; and
             59960          (v) the chief information officer.
             59961          (b) (i) The committee shall elect a chair from its members.
             59962          (ii) Members of the committee who are state government employees and who do not
             59963      receive salary, per diem, or expenses from their agency for their service on the committee shall
             59964      receive no compensation, benefits, per diem, or expenses for the members' service on the
             59965      committee.
             59966          (c) The Department of Administrative Services shall provide staff services to the
             59967      committee.
             59968          (2) (a) The internal service funds managed by the following divisions shall submit to the
             59969      committee a proposed rate and fee schedule for services rendered by the divisions to an
             59970      executive branch entity or an entity that subscribes to services rendered by the division, the:
             59971          (i) Division of Facilities Construction and Management;
             59972          (ii) Division of Fleet Operations;
             59973          (iii) Division of Purchasing and General Services; and
             59974          (iv) Division of Risk Management.
             59975          (b) The committee shall:
             59976          (i) conduct meetings in accordance with Title 52, Chapter 4, Open and Public Meetings
             59977      Act;

             59978          (ii) review the proposed rate and fee schedules and may approve, increase, or decrease
             59979      the rate and fee;
             59980          (iii) recommend a proposed rate and fee schedule for each internal service fund to:
             59981          (A) the Governor's Office of Planning and Budget; and
             59982          (B) the legislative appropriations subcommittees that, in accordance with Section
             59983      [ 63-38-3.5 ] 63J-1-306 , approve the internal service fund agency's rates, fees, and budget; and
             59984          (iv) review and approve, increase or decrease an interim rate, fee, or amount when an
             59985      internal service fund agency begins a new service or introduces a new product between annual
             59986      general sessions of the Legislature.
             59987          (c) The committee may in accordance with Subsection [ 63-38-3.5 ] 63J-1-306 (4)
             59988      decrease a rate, fee, or amount that has been approved by the Legislature.
             59989          Section 1186. Section 63A-2-103 is amended to read:
             59990           63A-2-103. General services provided -- Subscription by state departments, state
             59991      agencies, and certain local governmental entities -- Fee schedule.
             59992          (1) (a) The director of the Division of Purchasing and General Services shall operate,
             59993      manage, and maintain:
             59994          (i) a central mailing service; and
             59995          (ii) an electronic central store system for procuring goods and services.
             59996          (b) The director may establish microfilming, duplicating, printing, addressograph, and
             59997      other central services.
             59998          (2) (a) Each state department and agency shall subscribe to all of the services described
             59999      in Subsection (1), unless the director delegates the director's authority to a department or
             60000      agency under Section 63A-2-104 .
             60001          (b) An institution of higher education, school district, or political subdivision of the
             60002      state may subscribe to one or more of the services described in Subsection (1).
             60003          (3) The director shall:
             60004          (a) prescribe a schedule of fees to be charged for all services provided by the division to
             60005      any department or agency after the director:

             60006          (i) submits the proposed rate, fees, or other amounts for services provided by the
             60007      division's internal service fund to the Rate Committee established in Section 63A-1-114 ; and
             60008          (ii) obtains the approval of the Legislature, as required by Sections [ 63-38-3.2 ]
             60009      63J-1-303 and [ 63-38-3.5 ] 63J-1-306 ;
             60010          (b) when practicable, ensure that the fees are approximately equal to the cost of
             60011      providing the services; and
             60012          (c) conduct a market analysis by July 1, 2005, and periodically thereafter of fees, which
             60013      analysis shall include comparison of the division's rates with the fees of other public or private
             60014      sector providers where comparable services and rates are reasonably available.
             60015          Section 1187. Section 63A-3-306 is amended to read:
             60016           63A-3-306. Hearing examiner -- Procedures -- Adjudicative proceedings.
             60017          (1) (a) The hearing shall be held before a hearing examiner designated by the state.
             60018          (b) The hearing examiner may not be an officer or employee of the entity in state
             60019      government responsible for collecting or administering the account.
             60020          (2) The state shall comply with the procedures and requirements of [Title 63, Chapter
             60021      46b] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative proceedings.
             60022          Section 1188. Section 63A-4-102 is amended to read:
             60023           63A-4-102. Risk manager -- Powers.
             60024          (1) The risk manager may:
             60025          (a) enter into contracts;
             60026          (b) purchase insurance;
             60027          (c) adjust, settle, and pay claims;
             60028          (d) pay expenses and costs;
             60029          (e) study the risks of all state agencies and properties;
             60030          (f) issue certificates of coverage to state agencies for any risks covered by Risk
             60031      Management Fund;
             60032          (g) make recommendations about risk management and risk reduction strategies to state
             60033      agencies;

             60034          (h) in consultation with the attorney general, prescribe insurance and liability provisions
             60035      to be included in all state contracts;
             60036          (i) review agency building construction, major remodeling plans, agency program plans,
             60037      and make recommendations to the agency about needed changes to address risk considerations;
             60038          (j) attend agency planning and management meetings when necessary;
             60039          (k) review any proposed legislation and communicate with legislators and legislative
             60040      committees about the liability or risk management issues connected with any legislation; and
             60041          (l) solicit any needed information about agency plans, agency programs, or agency risks
             60042      necessary to perform [his] the risk manager's responsibilities under this part.
             60043          (2) (a) The risk manager may expend monies from the Risk Management Fund to
             60044      procure and provide coverage to all state agencies and their indemnified employees, except
             60045      those agencies or employees specifically exempted by statute.
             60046          (b) The risk manager shall apportion the costs of that coverage according to the
             60047      requirements of this part.
             60048          (3) Before charging a rate, fee, or other amount to an executive branch agency, or to a
             60049      subscriber of services other than an executive branch agency, the director shall:
             60050          (a) submit the proposed rates, fees, or other amount and cost analysis to the Rate
             60051      Committee established in Section 63A-1-114 ; and
             60052          (b) obtain the approval of the Legislature as required by Section [ 63-38-3.5 ] 63J-1-306 .
             60053          (4) The director shall conduct a market analysis by July 1, 2005, and periodically
             60054      thereafter, of proposed rates and fees, which analysis shall include a comparison of the division's
             60055      rates and fees with the fees of other public or private sector providers where comparable
             60056      services and rates are reasonably available.
             60057          Section 1189. Section 63A-4-204 is amended to read:
             60058           63A-4-204. School district participation in Risk Management Fund.
             60059          (1) (a) For the purpose of this section, action by a public school district shall be taken
             60060      upon resolution by a majority of the members of the school district's board of education.
             60061          (b) (i) Upon approval by the state risk manager and the board of education of the

             60062      school district, a public school district may participate in the Risk Management Fund and may
             60063      permit a foundation established under Section 53A-4-205 to participate in the Risk Management
             60064      Fund.
             60065          (ii) Upon approval by the state risk manager and the State Board of Education, a state
             60066      public education foundation may participate in the Risk Management Fund.
             60067          (c) Subject to any cancellation or other applicable coverage provisions, either the state
             60068      risk manager or the public school district may terminate participation in the fund.
             60069          (2) The state risk manager shall contract for all insurance, legal, loss adjustment,
             60070      consulting, loss control, safety, and other related services necessary to support the insurance
             60071      program provided to a participating public school district, except that all supporting legal
             60072      services are subject to the prior approval of the state attorney general.
             60073          (3) (a) The state risk manager shall treat each participating public school district as a
             60074      state agency when participating in the Risk Management Fund.
             60075          (b) Each public school district participating in the fund shall comply with the provisions
             60076      of this part that affect state agencies.
             60077          (4) (a) By no later than March 31 of each year, the risk manager shall prepare, in
             60078      writing, the information required by Subsection (4)(b) regarding the coverage against legal
             60079      liability provided a school district employee of this state:
             60080          (i) by the Risk Management Fund;
             60081          (ii) under [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of
             60082      Utah; and
             60083          (iii) under [Title 63, Chapter 30a] Title 52, Chapter 6, Reimbursement of Legal Fees
             60084      and Costs to Officers and Employees.
             60085          (b) (i) The information described in Subsection (4)(a) shall include:
             60086          (A) the eligibility requirements, if any, to receive the coverage;
             60087          (B) the basic nature of the coverage for a school district employee, including what is
             60088      not covered; and
             60089          (C) whether the coverage is primary or in excess of any other coverage the risk

             60090      manager knows is commonly available to a school district employee in this state.
             60091          (ii) The information described in Subsection (4)(a) may include:
             60092          (A) comparisons the risk manager considers beneficial to a school district employee
             60093      between:
             60094          (I) the coverage described in Subsection (4)(a); and
             60095          (II) other coverage the risk manager knows is commonly available to a school district
             60096      employee in this state; and
             60097          (B) any other information the risk manager considers appropriate.
             60098          (c) The risk manager shall provide the information prepared under this Subsection (4)
             60099      to each school district that participates in the Risk Management Fund.
             60100          (d) A school district that participates in the Risk Management Fund shall provide a copy
             60101      of the information described in Subsection (4)(c) to each school district employee within the
             60102      school district:
             60103          (i) at the time an employee enters into an employment contract and signs a separate
             60104      acknowledgment of legal liability protection in accordance with Section 53A-3-411 ; or
             60105          (ii) if the school district does not provide the information to the employee pursuant to
             60106      Subsection (4)(d)(i):
             60107          (A) within 30 days of the day the school district employee is hired by the school district;
             60108      and
             60109          (B) by no later than April 15 of each calendar year.
             60110          Section 1190. Section 63A-4-204.5 is amended to read:
             60111           63A-4-204.5. Charter school participation in Risk Management Fund.
             60112          (1) A charter school established under the authority of Title 53A, Chapter 1a, Part 5,
             60113      The Utah Charter Schools Act, may participate in the Risk Management Fund upon the
             60114      approval of the state risk manager and the governing body of the charter school.
             60115          (2) (a) For purposes of administration, the state risk manager shall treat each charter
             60116      school participating in the fund as a state agency.
             60117          (b) Each charter school participating in the fund shall comply with the provisions of this

             60118      part that affect state agencies.
             60119          (3) (a) By no later than March 31 of each year, the risk manager shall prepare, in
             60120      writing, the information required by Subsection (3)(b) regarding the coverage against legal
             60121      liability provided a charter school employee of this state:
             60122          (i) by the Risk Management Fund;
             60123          (ii) under [Title 63, Chapter 30d] Title 63G, Chapter 7, Utah Governmental Immunity
             60124      Act of Utah; and
             60125          (iii) under [Title 63, Chapter 30a] Title 52, Chapter 6, Reimbursement of Legal Fees
             60126      and Costs to Officers and Employees.
             60127          (b) (i) The information described in Subsection (3)(a) shall include:
             60128          (A) the eligibility requirements, if any, to receive the coverage;
             60129          (B) the basic nature of the coverage for a charter school employee, including what is
             60130      not covered; and
             60131          (C) whether the coverage is primary or in excess of any other coverage the risk
             60132      manager knows is commonly available to a charter school employee in this state.
             60133          (ii) The information described in Subsection (3)(a) may include:
             60134          (A) comparisons the risk manager considers beneficial to a charter school employee
             60135      between:
             60136          (I) the coverage described in Subsection (3)(a); and
             60137          (II) other coverage the risk manager knows is commonly available to a charter school
             60138      employee in this state; and
             60139          (B) any other information the risk manager considers appropriate.
             60140          (c) The risk manager shall provide the information prepared under this Subsection (3)
             60141      to each charter school that participates in the Risk Management Fund.
             60142          (d) A charter school that participates in the Risk Management Fund shall provide a
             60143      copy of the information described in Subsection (3)(c) to each charter school employee within
             60144      the charter school:
             60145          (i) within 30 days of the day the charter school employee is hired by the charter school;

             60146      and
             60147          (ii) by no later than April 15 of each calendar year.
             60148          Section 1191. Section 63A-4-207 is amended to read:
             60149           63A-4-207. Records of risk management.
             60150          (1) A record provided to the Division of Risk Management by any governmental entity
             60151      or political subdivision covered by the Risk Management Fund for the purpose of risk control or
             60152      claims activities of the division shall be considered a record of the originating governmental
             60153      entity or political subdivision for purposes of [Title 63, Chapter 2] Title 63G, Chapter 2,
             60154      Government Records Access and Management Act, if the originating governmental entity or
             60155      political subdivision retains a copy of the record.
             60156          (2) Notwithstanding Subsection [ 63-2-201 ] 63G-2-201 (5), records may be exchanged
             60157      between the Division of Risk Management and any governmental entity or political subdivision
             60158      covered by the Risk Management Fund without meeting the requirements of Section [ 63-2-206 ]
             60159      63G-2-206 , provided that they are used only for purposes of risk control or claims activities.
             60160          Section 1192. Section 63A-5-103 is amended to read:
             60161           63A-5-103. Board -- Powers.
             60162          (1) The State Building Board shall:
             60163          (a) in cooperation with state institutions, departments, commissions, and agencies,
             60164      prepare a master plan of structures built or contemplated;
             60165          (b) submit to the governor and the Legislature a comprehensive five-year building plan
             60166      for the state containing the information required by Subsection (2);
             60167          (c) amend and keep current the five-year building program for submission to the
             60168      governor and subsequent legislatures;
             60169          (d) as a part of the long-range plan, recommend to the governor and Legislature any
             60170      changes in the law that are necessary to insure an effective, well-coordinated building program
             60171      for all state institutions;
             60172          (e) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             60173      Administrative Rulemaking Act, make rules:

             60174          (i) that are necessary to discharge its duties and the duties of the Division of Facilities
             60175      Construction and Management; and
             60176          (ii) to establish standards and requirements for life cycle cost-effectiveness of state
             60177      facility projects;
             60178          (f) with support from the Division of Facilities Construction and Management, establish
             60179      design criteria, standards, and procedures for planning, design, and construction of new state
             60180      facilities and for improvements to existing state facilities, including life-cycle costing,
             60181      cost-effectiveness studies, and other methods and procedures that address:
             60182          (i) the need for the building or facility;
             60183          (ii) the effectiveness of its design;
             60184          (iii) the efficiency of energy use; and
             60185          (iv) the usefulness of the building or facility over its lifetime;
             60186          (g) prepare and submit a yearly request to the governor and the Legislature for a
             60187      designated amount of square footage by type of space to be leased by the Division of Facilities
             60188      Construction and Management in that fiscal year; and
             60189          (h) assure the efficient use of all building space.
             60190          (2) In order to provide adequate information upon which the State Building Board may
             60191      make its recommendation under Subsection (1), any state agency requesting new full-time
             60192      employees for the next fiscal year shall report those anticipated requests to the building board at
             60193      least 90 days before the annual general session in which the request is made.
             60194          (3) (a) The State Building Board shall ensure that the five-year building plan required
             60195      by Subsection (1)(c) includes:
             60196          (i) a list that prioritizes construction of new buildings for all structures built or
             60197      contemplated based upon each agency's, department's, commission's, and institution's present
             60198      and future needs;
             60199          (ii) information, and space use data for all state-owned and leased facilities;
             60200          (iii) substantiating data to support the adequacy of any projected plans;
             60201          (iv) a summary of all statewide contingency reserve and project reserve balances as of

             60202      the end of the most recent fiscal year;
             60203          (v) a list of buildings that have completed a comprehensive facility evaluation by an
             60204      architect/engineer or are scheduled to have an evaluation;
             60205          (vi) for those buildings that have completed the evaluation, the estimated costs of
             60206      needed improvements; and
             60207          (vii) for projects recommended in the first two years of the five-year building plan:
             60208          (A) detailed estimates of the cost of each project;
             60209          (B) the estimated cost to operate and maintain the building or facility on an annual
             60210      basis;
             60211          (C) the estimated number of new agency full-time employees expected to be housed in
             60212      the building or facility;
             60213          (D) the estimated cost of new or expanded programs and personnel expected to be
             60214      housed in the building or facility;
             60215          (E) the estimated lifespan of the building with associated costs for major component
             60216      replacement over the life of the building; and
             60217          (F) the estimated cost of any required support facilities.
             60218          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             60219      Administrative Rulemaking Act, the State Building Board may make rules prescribing the
             60220      format for submitting the information required by this Subsection (3).
             60221          (4) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             60222      Administrative Rulemaking Act, the State Building Board may make rules establishing
             60223      circumstances under which bids may be modified when all bids for a construction project exceed
             60224      available funds as certified by the director.
             60225          (b) In making those rules, the State Building Board shall provide for the fair and
             60226      equitable treatment of bidders.
             60227          (5) (a) A person who violates a rule adopted by the board under Subsection (1)(e) is
             60228      subject to a civil penalty not to exceed $2,500 for each violation plus the amount of any actual
             60229      damages, expenses, and costs related to the violation of the rule that are incurred by the state.

             60230          (b) The board may take any other action allowed by law.
             60231          (c) If any violation of a rule adopted by the board is also an offense under Title 76,
             60232      Utah Criminal Code, the violation is subject to the civil penalty, damages, expenses, and costs
             60233      allowed under Subsection (1)(e) in addition to any criminal prosecution.
             60234          Section 1193. Section 63A-5-104 is amended to read:
             60235           63A-5-104. Capital development and capital improvement process -- Approval
             60236      requirements -- Limitations on new projects -- Emergencies.
             60237          (1) As used in this section:
             60238          (a) "Capital developments" means any:
             60239          (i) remodeling, site, or utility projects with a total cost of $2,500,000 or more;
             60240          (ii) new facility with a construction cost of $500,000 or more; or
             60241          (iii) purchase of real property where an appropriation is requested to fund the purchase.
             60242          (b) "Capital improvements" means any:
             60243          (i) remodeling, alteration, replacement, or repair project with a total cost of less than
             60244      $2,500,000;
             60245          (ii) site and utility improvement with a total cost of less than $2,500,000; or
             60246          (iii) new facility with a total construction cost of less than $500,000.
             60247          (c) (i) "New facility" means the construction of any new building on state property
             60248      regardless of funding source.
             60249          (ii) "New facility" includes:
             60250          (A) an addition to an existing building; and
             60251          (B) the enclosure of space that was not previously fully enclosed.
             60252          (iii) "New facility" does not mean:
             60253          (A) the replacement of state-owned space that is demolished or that is otherwise
             60254      removed from state use, if the total construction cost of the replacement space is less than
             60255      $2,500,000; or
             60256          (B) the construction of facilities that do not fully enclose a space.
             60257          (d) "Replacement cost of existing state facilities" means the replacement cost, as

             60258      determined by the Division of Risk Management, of state facilities, excluding auxiliary facilities
             60259      as defined by the State Building Board.
             60260          (e) "State funds" means public monies appropriated by the Legislature.
             60261          (2) The State Building Board, on behalf of all state agencies, commissions,
             60262      departments, and institutions shall submit its capital development recommendations and
             60263      priorities to the Legislature for approval and prioritization.
             60264          (3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development
             60265      project may not be constructed on state property without legislative approval.
             60266          (b) Legislative approval is not required for a capital development project if the State
             60267      Building Board determines that:
             60268          (i) the requesting higher education institution has provided adequate assurance that:
             60269          (A) state funds will not be used for the design or construction of the facility; and
             60270          (B) the higher education institution has a plan for funding in place that will not require
             60271      increased state funding to cover the cost of operations and maintenance to, or state funding for,
             60272      immediate or future capital improvements to the resulting facility; and
             60273          (ii) the use of the state property is:
             60274          (A) appropriate and consistent with the master plan for the property; and
             60275          (B) will not create an adverse impact on the state.
             60276          (c) (i) The Division of Facilities Construction and Management shall maintain a record
             60277      of facilities constructed under the exemption provided in Subsection (3)(b).
             60278          (ii) For facilities constructed under the exemption provided in Subsection (3)(b), a
             60279      higher education institution may not request:
             60280          (A) increased state funds for operations and maintenance; or
             60281          (B) state capital improvement funding.
             60282          (d) Legislative approval is not required for:
             60283          (i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds;
             60284          (ii) facilities to be built with nonstate funds and owned by nonstate entities within
             60285      research park areas at the University of Utah and Utah State University;

             60286          (iii) facilities to be built at This is the Place State Park by This is the Place Foundation
             60287      with funds of the foundation, including grant monies from the state, or with donated services or
             60288      materials;
             60289          (iv) capital projects that are funded by the Navajo Trust Fund Board from Navajo Trust
             60290      Fund monies and the Uintah Basin Revitalization Fund that do not provide a new facility for a
             60291      state agency or higher education institution; or
             60292          (v) capital projects on school and institutional trust lands that are funded by the School
             60293      and Institutional Trust Lands Administration from the Land Grant Management Fund and that
             60294      do not fund construction of a new facility for a state agency or higher education institution.
             60295          (e) (i) Legislative approval is not required for capital development projects to be built
             60296      for the Department of Transportation as a result of an exchange of real property under Section
             60297      72-5-111 .
             60298          (ii) When the Department of Transportation approves those exchanges, it shall notify
             60299      the president of the Senate, the speaker of the House, and the cochairs of the Capital Facilities
             60300      and Administrative Services Subcommittee of the Legislature's Joint Appropriation Committee
             60301      about any new facilities to be built under this exemption.
             60302          (4) (a) The State Building Board, on behalf of all state agencies, commissions,
             60303      departments, and institutions shall by January 15 of each year, submit a list of anticipated capital
             60304      improvement requirements to the Legislature for review and approval.
             60305          (b) Unless otherwise directed by the Legislature, the building board shall prioritize
             60306      capital improvements from the list submitted to the Legislature up to the level of appropriation
             60307      made by the Legislature.
             60308          (c) In prioritizing capital improvements, the building board shall consider the results of
             60309      facility evaluations completed by an architect/engineer as stipulated by the building board's
             60310      facilities maintenance standards.
             60311          (d) The building board may require an entity that benefits from a capital improvement
             60312      project to repay the capital improvement funds from savings that result from the project.
             60313          (5) The Legislature may authorize:

             60314          (a) the total square feet to be occupied by each state agency; and
             60315          (b) the total square feet and total cost of lease space for each agency.
             60316          (6) (a) Except as provided in Subsection (6)(b), the Legislature may not fund the design
             60317      or construction of any new capital development projects, except to complete the funding of
             60318      projects for which partial funding has been previously provided, until the Legislature has
             60319      appropriated 1.1% of the replacement cost of existing state facilities to capital improvements.
             60320          (b) (i) As used in this Subsection (6)(b), "operating deficit" means that estimated
             60321      General Fund or Uniform School Fund revenues are less than budgeted for the current or next
             60322      fiscal year.
             60323          (ii) If the Legislature determines that an operating deficit exists, the Legislature may, in
             60324      eliminating the deficit, reduce the amount appropriated to capital improvements to 0.9% of the
             60325      replacement cost of state buildings.
             60326          (7) (a) If, after approval of capital development and capital improvement priorities by
             60327      the Legislature under this section, emergencies arise that create unforeseen critical capital
             60328      improvement projects, the State Building Board may, notwithstanding the requirements of [Title
             60329      63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures Act, reallocate capital
             60330      improvement funds to address those projects.
             60331          (b) The building board shall report any changes it makes in capital improvement
             60332      allocations approved by the Legislature to:
             60333          (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
             60334          (ii) the Legislature at its next annual general session.
             60335          (8) (a) The State Building Board may adopt a rule allocating to institutions and
             60336      agencies their proportionate share of capital improvement funding.
             60337          (b) The building board shall ensure that the rule:
             60338          (i) reserves funds for the Division of Facilities Construction and Management for
             60339      emergency projects; and
             60340          (ii) allows the delegation of projects to some institutions and agencies with the
             60341      requirement that a report of expenditures will be filed annually with the Division of Facilities

             60342      Construction and Management and appropriate governing bodies.
             60343          (9) It is the intent of the Legislature that in funding capital improvement requirements
             60344      under this section the General Fund be considered as a funding source for at least half of those
             60345      costs.
             60346          Section 1194. Section 63A-5-204 is amended to read:
             60347           63A-5-204. Specific powers and duties of director.
             60348          (1) As used in this section, "capitol hill facilities" and "capitol hill grounds" have the
             60349      same meaning as provided in Section 63C-9-102 .
             60350          (2) (a) The director shall:
             60351          (i) recommend rules to the executive director for the use and management of facilities
             60352      and grounds owned or occupied by the state for the use of its departments and agencies;
             60353          (ii) supervise and control the allocation of space, in accordance with legislative directive
             60354      through annual appropriations acts or other specific legislation, to the various departments,
             60355      commissions, institutions, and agencies in all buildings or space owned, leased, or rented by or
             60356      to the state, except capitol hill facilities and capitol hill grounds and except as otherwise
             60357      provided by law;
             60358          (iii) comply with the procedures and requirements of Title 63A, Chapter 5, Part 3,
             60359      Division of Facilities Construction and Management Leasing;
             60360          (iv) except as provided in Subsection (2)(b), acquire, as authorized by the Legislature
             60361      through the appropriations act or other specific legislation, and hold title to, in the name of the
             60362      division, all real property, buildings, fixtures, or appurtenances owned by the state or any of its
             60363      agencies;
             60364          (v) adopt and use a common seal, of a form and design determined by the director, and
             60365      of which courts shall take judicial notice;
             60366          (vi) file a description and impression of the seal with the Division of Archives;
             60367          (vii) collect and maintain all deeds, abstracts of title, and all other documents evidencing
             60368      title to or interest in property belonging to the state or any of its departments, except
             60369      institutions of higher education and the School and Institutional Trust Lands Administration;

             60370          (viii) report all properties acquired by the state, except those acquired by institutions of
             60371      higher education, to the director of the Division of Finance for inclusion in the state's financial
             60372      records;
             60373          (ix) before charging a rate, fee, or other amount for services provided by the division's
             60374      internal service fund to an executive branch agency, or to a subscriber of services other than an
             60375      executive branch agency:
             60376          (A) submit the proposed rates, fees, and cost analysis to the Rate Committee
             60377      established in Section 63A-1-114 ; and
             60378          (B) obtain the approval of the Legislature as required by Section [ 63-38-3.5 ]
             60379      63J-1-306 ;
             60380          (x) conduct a market analysis by July 1, 2005, and periodically thereafter, of proposed
             60381      rates and fees, which analysis shall include a comparison of the division's rates and fees with the
             60382      fees of other public or private sector providers where comparable services and rates are
             60383      reasonably available;
             60384          (xi) implement the State Building Energy Efficiency Program under Section [ 63-9-67 ]
             60385      63A-5-701 ; and
             60386          (xii) take all other action necessary for carrying out the purposes of this chapter.
             60387          (b) Legislative approval is not required for acquisitions by the division that cost less
             60388      than $250,000.
             60389          (3) (a) The director shall direct or delegate maintenance and operations, preventive
             60390      maintenance, and facilities inspection programs and activities for any department, commission,
             60391      institution, or agency, except:
             60392          (i) the State Capitol Preservation Board; and
             60393          (ii) state institutions of higher education.
             60394          (b) The director may choose to delegate responsibility for these functions only when the
             60395      director determines that:
             60396          (i) the department or agency has requested the responsibility;
             60397          (ii) the department or agency has the necessary resources and skills to comply with

             60398      facility maintenance standards approved by the State Building Board; and
             60399          (iii) the delegation would result in net cost savings to the state as a whole.
             60400          (c) The State Capitol Preservation Board and state institutions of higher education are
             60401      exempt from Division of Facilities Construction and Management oversight.
             60402          (d) Each state institution of higher education shall comply with the facility maintenance
             60403      standards approved by the State Building Board.
             60404          (e) Except for the State Capitol Preservation Board, agencies and institutions that are
             60405      exempt from division oversight shall annually report their compliance with the facility
             60406      maintenance standards to the division in the format required by the division.
             60407          (f) The division shall:
             60408          (i) prescribe a standard format for reporting compliance with the facility maintenance
             60409      standards;
             60410          (ii) report agency and institution compliance or noncompliance with the standards to the
             60411      Legislature; and
             60412          (iii) conduct periodic audits of exempt agencies and institutions to ensure that they are
             60413      complying with the standards.
             60414          (4) (a) In making any allocations of space under Subsection (2), the director shall:
             60415          (i) conduct studies to determine the actual needs of each department, commission,
             60416      institution, or agency; and
             60417          (ii) comply with the restrictions contained in this Subsection (4).
             60418          (b) The supervision and control of the legislative area is reserved to the Legislature.
             60419          (c) The supervision and control of the judicial area is reserved to the judiciary for trial
             60420      courts only.
             60421          (d) The director may not supervise or control the allocation of space for entities in the
             60422      public and higher education systems.
             60423          (e) The supervision and control of capitol hill facilities and capitol hill grounds is
             60424      reserved to the State Capitol Preservation Board.
             60425          (5) The director may:

             60426          (a) hire or otherwise procure assistance and services, professional, skilled, or otherwise,
             60427      that are necessary to carry out the director's responsibilities, and may expend funds provided for
             60428      that purpose either through annual operating budget appropriations or from nonlapsing project
             60429      funds;
             60430          (b) sue and be sued in the name of the division; and
             60431          (c) hold, buy, lease, and acquire by exchange or otherwise, as authorized by the
             60432      Legislature, whatever real or personal property that is necessary for the discharge of the
             60433      director's duties.
             60434          (6) Notwithstanding the provisions of Subsection (2)(a)(iv), the following entities may
             60435      hold title to any real property, buildings, fixtures, and appurtenances held by them for purposes
             60436      other than administration that are under their control and management:
             60437          (a) the Office of Trust Administrator;
             60438          (b) the Department of Transportation;
             60439          (c) the Division of Forestry, Fire and State Lands;
             60440          (d) the Department of Natural Resources;
             60441          (e) the Utah National Guard;
             60442          (f) any area vocational center or other institution administered by the State Board of
             60443      Education;
             60444          (g) any institution of higher education; and
             60445          (h) the Utah Science Technology and Research Governing Authority.
             60446          (7) The director shall ensure that any firm performing testing and inspection work
             60447      governed by the American Society for Testing Materials Standard E-329 on public buildings
             60448      under the director's supervision shall:
             60449          (a) fully comply with the American Society for Testing Materials standard specifications
             60450      for agencies engaged in the testing and inspection of materials known as ASTM E-329; and
             60451          (b) carry a minimum of $1,000,000 of errors and omissions insurance.
             60452          (8) Notwithstanding Subsections (2)(a)(iii) and (iv), the School and Institutional Trust
             60453      Lands Administration may hold title to any real property, buildings, fixtures, and appurtenances

             60454      held by it that are under its control.
             60455          Section 1195. Section 63A-5-205 is amended to read:
             60456           63A-5-205. Contracting powers of director -- Retainage.
             60457          (1) As used in this section, "capital developments" and "capital improvements" have the
             60458      same meaning as provided in Section 63A-5-104 .
             60459          (2) In accordance with [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement
             60460      Code, the director may:
             60461          (a) enter into contracts for any work or professional services which the division or the
             60462      State Building Board may do or have done; and
             60463          (b) as a condition of any contract for architectural or engineering services, prohibit the
             60464      architect or engineer from retaining a sales or agent engineer for the necessary design work.
             60465          (3) The judgment of the director as to the responsibility and qualifications of a bidder is
             60466      conclusive, except in case of fraud or bad faith.
             60467          (4) The division shall make all payments to the contractor for completed work in
             60468      accordance with the contract and pay the interest specified in the contract on any payments that
             60469      are late.
             60470          (5) If any payment on a contract with a private contractor to do work for the division or
             60471      the State Building Board is retained or withheld, it shall be retained or withheld and released as
             60472      provided in Section 13-8-5 .
             60473          Section 1196. Section 63A-5-206 is amended to read:
             60474           63A-5-206. Construction, alteration, and repair of state facilities -- Powers of
             60475      director -- Exceptions -- Expenditure of appropriations -- Notification to local
             60476      governments for construction or modification of certain facilities.
             60477          (1) As used in this section:
             60478          (a) "Capital developments" and "capital improvements" have the same meaning as
             60479      provided in Section 63A-5-104 .
             60480          (b) "Compliance agency" has the same meaning as provided in Subsection 58-56-3 (4).
             60481          (c) (i) "Facility" means any building, structure, or other improvement that is constructed

             60482      on property owned by the state, its departments, commissions, institutions, or agencies.
             60483          (ii) "Facility" does not mean an unoccupied structure that is a component of the state
             60484      highway system.
             60485          (d) "Life cycle cost-effective" means, as provided for in rules adopted by the State
             60486      Building Board, in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             60487      Administrative Rulemaking Act, the most prudent cost of owning and operating a facility,
             60488      including the initial cost, energy costs, operation and maintenance costs, repair costs, and the
             60489      costs of energy conservation and renewable energy systems.
             60490          (e) "Local government" means the county, municipality, or local school district that
             60491      would have jurisdiction to act as the compliance agency if the property on which the project is
             60492      being constructed were not owned by the state.
             60493          (f) "Renewable energy system" means a system designed to use solar, wind, geothermal
             60494      power, wood, or other replenishable energy source to heat, cool, or provide electricity to a
             60495      building.
             60496          (2) (a) (i) Except as provided in Subsections (3) and (4), the director shall exercise
             60497      direct supervision over the design and construction of all new facilities, and all alterations,
             60498      repairs, and improvements to existing facilities if the total project construction cost, regardless
             60499      of the funding source, is greater than $100,000.
             60500          (ii) A state entity may exercise direct supervision over the design and construction of all
             60501      new facilities, and all alterations, repairs, and improvements to existing facilities if:
             60502          (A) the total project construction cost, regardless of the funding sources, is $100,000 or
             60503      less; and
             60504          (B) the state entity assures compliance with the division's forms and contracts and the
             60505      division's design, construction, alteration, repair, improvements, and code inspection standards.
             60506          (b) The director shall prepare or have prepared by private firms or individuals designs,
             60507      plans, and specifications for the projects administered by the division.
             60508          (c) Before proceeding with construction, the director and the officials charged with the
             60509      administration of the affairs of the particular department, commission, institution, or agency

             60510      shall approve the location, design, plans, and specifications.
             60511          (3) Projects for the construction of new facilities and alterations, repairs, and
             60512      improvements to existing facilities are not subject to Subsection (2) if the project:
             60513          (a) occurs on property under the jurisdiction of the State Capitol Preservation Board;
             60514          (b) is within a designated research park at the University of Utah or Utah State
             60515      University;
             60516          (c) occurs within the boundaries of This is the Place State Park and is administered by
             60517      This is the Place Foundation except that This is the Place Foundation may request the director
             60518      to administer the design and construction; or
             60519          (d) is for the creation and installation of art under Title 9, Chapter 6, Part 4, Utah
             60520      Percent-for-Art Act.
             60521          (4) (a) (i) The State Building Board may authorize the delegation of control over
             60522      design, construction, and all other aspects of any project to entities of state government on a
             60523      project-by-project basis or for projects within a particular dollar range and a particular project
             60524      type.
             60525          (ii) The state entity to whom control is delegated shall assume fiduciary control over
             60526      project finances, shall assume all responsibility for project budgets and expenditures, and shall
             60527      receive all funds appropriated for the project, including any contingency funds contained in the
             60528      appropriated project budget.
             60529          (iii) Delegation of project control does not exempt the state entity from complying with
             60530      the codes and guidelines for design and construction adopted by the division and the State
             60531      Building Board.
             60532          (iv) State entities that receive a delegated project may not access, for the delegated
             60533      project, the division's statewide contingency reserve and project reserve authorized in Section
             60534      63A-5-209 .
             60535          (b) For facilities that will be owned, operated, maintained, and repaired by an entity that
             60536      is not a state agency or institution and that are located on state property, the State Building
             60537      Board may authorize the owner to administer the design and construction of the project instead

             60538      of the division.
             60539          (5) Notwithstanding any other provision of this section, if a donor donates land to an
             60540      eligible institution of higher education and commits to build a building or buildings on that land,
             60541      and the institution agrees to provide funds for the operations and maintenance costs from
             60542      sources other than state funds, and agrees that the building or buildings will not be eligible for
             60543      state capital improvement funding, the higher education institution may:
             60544          (a) oversee and manage the construction without involvement, oversight, or
             60545      management from the division; or
             60546          (b) arrange for management of the project by the division.
             60547          (6) (a) The role of compliance agency as provided in Title 58, Chapter 56, Utah
             60548      Uniform Building Standards Act, shall be provided by:
             60549          (i) the director, for projects administered by the division;
             60550          (ii) the entity designated by the State Capitol Preservation Board, for projects under
             60551      Subsection (3)(a);
             60552          (iii) the local government, for projects exempt from the division's administration under
             60553      Subsection (3)(b) or administered by This is the Place Foundation under Subsection (3)(c);
             60554          (iv) the state entity or local government designated by the State Building Board, for
             60555      projects under Subsection (4); or
             60556          (v) the institution, for projects exempt from the division's administration under
             60557      Subsection (5)(a).
             60558          (b) For the installation of art under Subsection (3)(d), the role of compliance agency
             60559      shall be provided by the entity that is acting in this capacity for the balance of the project as
             60560      provided in Subsection (6)(a).
             60561          (c) The local government acting as the compliance agency under Subsection (6)(a)(iii)
             60562      may:
             60563          (i) only review plans and inspect construction to enforce the building codes as adopted
             60564      by the Uniform Building Codes Commission; and
             60565          (ii) charge a building permit fee of no more than the amount it could have charged if the

             60566      land upon which the improvements are located were not owned by the state.
             60567          (d) (i) The use of state property and any improvements constructed on state property,
             60568      including improvements constructed by nonstate entities, is not subject to the zoning authority
             60569      of local governments as provided in Sections 10-9a-304 and 17-27a-304 .
             60570          (ii) The state entity controlling the use of the state property shall consider any input
             60571      received from the local government in determining how the property shall be used.
             60572          (7) Before construction may begin, the director shall review the design of projects
             60573      exempted from the division's administration under Subsection (4) to determine if the design:
             60574          (a) complies with any restrictions placed on the project by the State Building Board;
             60575      and
             60576          (b) is appropriate for the purpose and setting of the project.
             60577          (8) The director shall ensure that state-owned facilities, except for facilities under the
             60578      control of the State Capitol Preservation Board, are life cycle cost-effective.
             60579          (9) The director may expend appropriations for statewide projects from funds provided
             60580      by the Legislature for those specific purposes and within guidelines established by the State
             60581      Building Board.
             60582          (10) (a) The director, with the approval of the Office of Legislative Fiscal Analyst, shall
             60583      develop standard forms to present capital development and capital improvement cost summary
             60584      data.
             60585          (b) The director shall:
             60586          (i) within 30 days after the completion of each capital development project, submit cost
             60587      summary data for the project on the standard form to the Office of Legislative Fiscal Analyst;
             60588      and
             60589          (ii) upon request, submit cost summary data for a capital improvement project to the
             60590      Office of Legislative Fiscal Analyst on the standard form.
             60591          (11) Notwithstanding the requirements of [Title 63, Chapter 38] Title 63J, Chapter 1,
             60592      Budgetary Procedures Act, the director may:
             60593          (a) accelerate the design of projects funded by any appropriation act passed by the

             60594      Legislature in its annual general session;
             60595          (b) use any unencumbered existing account balances to fund that design work; and
             60596          (c) reimburse those account balances from the amount funded for those projects when
             60597      the appropriation act funding the project becomes effective.
             60598          (12) (a) The director, [his] the director's designee, or the state entity to whom control
             60599      has been designated under Subsection (4), shall notify in writing the elected representatives of
             60600      local government entities directly and substantively affected by any diagnostic, treatment,
             60601      parole, probation, or other secured facility project exceeding $250,000, if:
             60602          (i) the nature of the project has been significantly altered since prior notification;
             60603          (ii) the project would significantly change the nature of the functions presently
             60604      conducted at the location; or
             60605          (iii) the project is new construction.
             60606          (b) At the request of either the state entity or the local government entity,
             60607      representatives from the state entity and the affected local entity shall conduct or participate in a
             60608      local public hearing or hearings to discuss these issues.
             60609          (13) (a) (i) Before beginning the construction of student housing on property owned by
             60610      the state or a public institution of higher education, the director shall provide written notice of
             60611      the proposed construction, as provided in Subsection (13)(a)(ii), if any of the proposed student
             60612      housing buildings is within 300 feet of privately owned residential property.
             60613          (ii) Each notice under Subsection (13)(a)(i) shall be provided to the legislative body
             60614      and, if applicable, the mayor of:
             60615          (A) the county in whose unincorporated area the privately owned residential property is
             60616      located; or
             60617          (B) the municipality in whose boundaries the privately owned residential property is
             60618      located.
             60619          (b) (i) Within 21 days after receiving the notice required by Subsection (13)(a)(i), a
             60620      county or municipality entitled to the notice may submit a written request to the director for a
             60621      public hearing on the proposed student housing construction.

             60622          (ii) If a county or municipality requests a hearing under Subsection (13)(b)(i), the
             60623      director and the county or municipality shall jointly hold a public hearing to provide information
             60624      to the public and to allow the director and the county or municipality to receive input from the
             60625      public about the proposed student housing construction.
             60626          Section 1197. Section 63A-5-208 is amended to read:
             60627           63A-5-208. Definitions -- Certain public construction bids to list subcontractors
             60628      -- Changing subcontractors -- Bidders as subcontractors -- Dispute resolution process --
             60629      Penalties.
             60630          (1) As used in this section:
             60631          (a) "First-tier subcontractor" means a subcontractor who contracts directly with the
             60632      prime contractor.
             60633          (b) "Subcontractor" means any person or entity under contract with a contractor or
             60634      another subcontractor to provide services or labor for the construction, installation, or repair of
             60635      an improvement to real property.
             60636          (c) "Subcontractor" includes a trade contractor or specialty contractor.
             60637          (d) "Subcontractor" does not include suppliers who provide only materials, equipment,
             60638      or supplies to a contractor or subcontractor.
             60639          (2) The director shall apply the provisions of this section to achieve fair and competitive
             60640      bidding and to discourage bid-shopping by contractors.
             60641          (3) (a) (i) (A) On each public construction project, the director shall require the
             60642      apparent lowest three bidders to submit a list of their first-tier subcontractors indicating each
             60643      subcontractor's name, bid amount, and other information required by rule.
             60644          (B) Other bidders who are not one of the apparent lowest three bidders may also submit
             60645      a list of their first-tier subcontractors containing the information required by this Subsection (3).
             60646          (C) The director may not consider any bid submitted by a bidder if the bidder fails to
             60647      submit a subcontractor list meeting the requirements of this section.
             60648          (ii) On projects where the contractor's total bid is less than $500,000, subcontractors
             60649      whose bid is less than $20,000 need not be listed.

             60650          (iii) On projects where the contractor's total bid is $500,000 or more, subcontractors
             60651      whose bid is less than $35,000 need not be listed.
             60652          (b) (i) The bidders shall submit this list within 24 hours after the bid opening time, not
             60653      including Saturdays, Sundays, and state holidays.
             60654          (ii) This list does not limit the director's right to authorize a change in the listing of any
             60655      subcontractor.
             60656          (c) The bidders shall verify that all subcontractors listed as part of their bids are licensed
             60657      as required by state law.
             60658          (d) Twenty-four hours after the bid opening, the contractor may change [his] the
             60659      contractor's subcontractors only after:
             60660          (i) receiving permission from the director; and
             60661          (ii) establishing that:
             60662          (A) the change is in the best interest of the state; and
             60663          (B) the contractor establishes reasons for the change that meet the standards established
             60664      by the State Building Board.
             60665          (e) If the director approves any changes in subcontractors that result in a net lower
             60666      contract price for subcontracted work, the total of the prime contract may be reduced to reflect
             60667      the changes.
             60668          (4) (a) A bidder may list himself as a subcontractor when the bidder is currently licensed
             60669      to perform the portion of the work for which the bidder lists himself as a subcontractor and:
             60670          (i) the bidder intends to perform the work of a subcontractor himself; or
             60671          (ii) the bidder intends to obtain a subcontractor to perform the work at a later date
             60672      because the bidder was unable to:
             60673          (A) obtain a bid from a qualified subcontractor; or
             60674          (B) obtain a bid from a qualified subcontractor at a cost that the bidder considers to be
             60675      reasonable.
             60676          (b) (i) When the bidder intends to perform the work of a subcontractor himself, the
             60677      director may, by written request, require that the bidder provide the director with information

             60678      indicating the bidder's:
             60679          (A) previous experience in the type of work to be performed; and
             60680          (B) qualifications for performing the work.
             60681          (ii) The bidder must respond in writing within five business days of receiving the
             60682      director's written request.
             60683          (iii) If the bidder's submitted information causes the director to reasonably believe that
             60684      self-performance of the portion of the work by the bidder is likely to yield a substandard
             60685      finished product, the director shall:
             60686          (A) require the bidder to use a subcontractor for the portion of the work in question
             60687      and obtain the subcontractor bid under the supervision of the director; or
             60688          (B) reject the bidder's bid.
             60689          (c) (i) When the bidder intends to obtain a subcontractor to perform the work at a later
             60690      date, the bidder shall provide documentation with the subcontractor list describing:
             60691          (A) the bidder's efforts to obtain a bid of a qualified subcontractor at a reasonable cost;
             60692      and
             60693          (B) why the bidder was unable to obtain a qualified subcontractor bid.
             60694          (ii) If the bidder who intends to obtain a subcontractor to perform the work at a later
             60695      date is awarded a contract, the director shall supervise the bidder's efforts to obtain a qualified
             60696      subcontractor bid.
             60697          (iii) The director may not adjust the amount of the contract awarded in order to reflect
             60698      the actual amount of the subcontractor's bid.
             60699          (5) The division may not disclose any subcontractor bid amounts obtained under this
             60700      section until the division has awarded the project to a contractor.
             60701          (6) (a) The director shall, in consultation with the State Building Board, prepare draft
             60702      rules establishing a process for resolving disputes involved with contracts under the division's
             60703      procurement authority.
             60704          (b) The draft rules shall be presented to the Government Operations Interim Committee
             60705      for review, comment, and recommendations before August 31, 2004.

             60706          (c) The director shall consider, and the rules may include:
             60707          (i) requirements regarding preliminary resolution efforts between the parties directly
             60708      involved with the dispute;
             60709          (ii) requirements for the filing of claims, including notification, timeframes, and
             60710      documentation;
             60711          (iii) identification of the types of costs eligible for allocation and a method for allocating
             60712      costs among the parties to the dispute;
             60713          (iv) required time periods, not to exceed 60 days, for the resolution of the claim;
             60714          (v) provision for an independent hearing officer, panel, or arbitrator to extend the time
             60715      period for resolution of the claim by not to exceed 60 additional days for good cause;
             60716          (vi) provision for the extension of required time periods if the claimant agrees;
             60717          (vii) requirements that decisions be issued in writing;
             60718          (viii) provisions for administrative appeals of the decision;
             60719          (ix) provisions for the timely payment of claims after resolution of the dispute, including
             60720      any appeals;
             60721          (x) a requirement that the final determination resulting from the dispute resolution
             60722      process provided for in the rules is a final agency action subject to judicial review as provided in
             60723      Sections [ 63-46b-14 ] 63G-4-401 and [ 63-46b-15 ] 63G-4-402 ;
             60724          (xi) a requirement that a claim or dispute that does not include a monetary claim against
             60725      the division or its agents is not limited to the dispute resolution process provided for in this
             60726      Subsection (6);
             60727          (xii) requirements for claims and disputes to be eligible for this dispute resolution
             60728      process;
             60729          (xiii) the use of an independent hearing officer, panel, arbitration, or mediation; and
             60730          (xiv) the circumstances under which a subcontractor may file a claim directly with the
             60731      division.
             60732          (d) Persons pursuing claims under the process required by this Subsection (6):
             60733          (i) are bound by the decision reached under this process unless the decision is properly

             60734      appealed; and
             60735          (ii) may not pursue claims or disputes under the dispute resolution process established
             60736      in Sections [ 63-56-805 ] 63G-6-805 through [ 63-56-814 ] 63G-6-814 .
             60737          (7) In addition to all other reasons allowed by law or rule, the director may reject all
             60738      bids if none of the bidders whose bid is within the budget of the project submit a subcontractor
             60739      list that meets the requirements of this section.
             60740          (8) Any violation of this section, or any fraudulent misrepresentation by a contractor,
             60741      subcontractor, or supplier, may be grounds for:
             60742          (a) the contractor, subcontractor, or supplier to be suspended or debarred by the
             60743      director; or
             60744          (b) the contractor or subcontractor to be disciplined by the Division of Professional and
             60745      Occupational Licensing.
             60746          Section 1198. Section 63A-5-302 is amended to read:
             60747           63A-5-302. Leasing responsibilities of the director.
             60748          (1) The director shall:
             60749          (a) lease, in the name of the division, all real property space to be occupied by an
             60750      agency;
             60751          (b) in leasing space, comply with:
             60752          (i) [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code; and
             60753          (ii) any legislative mandates contained in the appropriations act or other specific
             60754      legislation;
             60755          (c) apply the criteria contained in Subsection (e) to prepare a report evaluating each
             60756      high-cost lease at least 12 months before it expires;
             60757          (d) evaluate each lease under the division's control and apply the criteria contained in
             60758      Subsection (e), when appropriate, to evaluate those leases;
             60759          (e) in evaluating leases:
             60760          (i) determine whether or not the lease is cost-effective when the needs of the agency to
             60761      be housed in the leased facilities are considered;

             60762          (ii) determine whether or not another option such as construction, use of other
             60763      state-owned space, or a lease-purchase agreement is more cost-effective than leasing;
             60764          (iii) determine whether or not the significant lease terms are cost-effective and provide
             60765      the state with sufficient flexibility and protection from liability;
             60766          (iv) compare the proposed lease payments to the current market rates, and evaluate
             60767      whether or not the proposed lease payments are reasonable under current market conditions;
             60768          (v) compare proposed significant lease terms to the current market, and recommend
             60769      whether or not these proposed terms are reasonable under current market conditions; and
             60770          (vi) if applicable, recommend that the lease or modification to a lease be approved or
             60771      disapproved;
             60772          (f) based upon the evaluation, include in the report recommendations that identify viable
             60773      alternatives to:
             60774          (i) make the lease cost-effective; or
             60775          (ii) meet the agency's needs when the lease expires; and
             60776          (g) upon request, provide the information included in the report to:
             60777          (i) the agency benefited by the lease; and
             60778          (ii) the Office of Legislative Fiscal Analyst.
             60779          (2) The director may:
             60780          (a) subject to legislative appropriation, enter into facility leases with terms of up to ten
             60781      years when the length of the lease's term is economically advantageous to the state; and
             60782          (b) with the approval of the State Building Board and subject to legislative
             60783      appropriation, enter into facility leases with terms of more than ten years when the length of the
             60784      lease's term is economically advantageous to the state.
             60785          Section 1199. Section 63A-5-501 , which is renumbered from Section 63-9-21 is
             60786      renumbered and amended to read:
             60787     
Part 5. Keys to Public Buildings

             60788           [63-9-21].     63A-5-501. Making keys to buildings of state, political subdivisions
             60789      or colleges and universities without permission prohibited.

             60790          No person shall knowingly make or cause to be made any key or duplicate key for any
             60791      building, laboratory, facility, room, dormitory, hall or any other structure or part thereof owned
             60792      by the state, by any political subdivision thereof or by the board of regents or other governing
             60793      body of any college or university which is supported wholly or in part by the state without the
             60794      prior written consent of the state, political subdivision, board of regents, or other governing
             60795      body.
             60796          Section 1200. Section 63A-5-502 , which is renumbered from Section 63-9-22 is
             60797      renumbered and amended to read:
             60798           [63-9-22].     63A-5-502. Violation -- Misdemeanor.
             60799          Any person who violates this act shall be guilty of a misdemeanor.
             60800          Section 1201. Section 63A-5-601 , which is renumbered from Section 63-9-63 is
             60801      renumbered and amended to read:
             60802     
Part 6. Energy Conservation and Alternative Financing

             60803           [63-9-63].     63A-5-601. Legislative findings and policy.
             60804          (1) The Legislature finds the following:
             60805          (a) The operation of facilities owned and controlled by the state consumes significant
             60806      amounts of energy.
             60807          (b) Facilities owned and controlled by the state present a significant opportunity for
             60808      energy cost savings through the implementation of conservation measures.
             60809          (c) Principles which produce efficient facility management in the private sector are
             60810      equally applicable to the management of public buildings and facilities.
             60811          (d) There exists, in the private sector, favorable alternative methods of financing energy
             60812      conservation measures which are not readily adaptable to financing state facility energy
             60813      efficiency improvements due to current budgetary practices.
             60814          (e) Maximization of energy conservation efforts in light of limited resources requires
             60815      careful advance planning by responsible agencies.
             60816          (2) The Legislature declares that it is the policy of the state to:
             60817          (a) undertake aggressive programs designed to reduce energy use in state facilities in

             60818      order to reduce the operating costs of state government and to set an example of energy
             60819      efficiency for the public;
             60820          (b) utilize, to the greatest practical extent, alternative funding sources and methods of
             60821      financing energy efficiency improvements in state facilities in a manner which minimizes the
             60822      necessity for increased appropriations;
             60823          (c) employ private sector management incentive principles, to the extent practicable, to
             60824      implement the policies in Subsections (2)(a) and (b);
             60825          (d) develop incentives to encourage state entities to conserve energy, reduce energy
             60826      costs, and utilize renewable energy sources where practicable; and
             60827          (e) procure and use energy efficient products where practicable.
             60828          Section 1202. Section 63A-5-701 , which is renumbered from Section 63-9-67 is
             60829      renumbered and amended to read:
             60830     
Part 7. State Building Energy Efficiency Program

             60831           [63-9-67].     63A-5-701. State Building Energy Efficiency Program.
             60832          (1) For purposes of this section:
             60833          (a) "Division" means the Division of Facilities Construction and Management
             60834      established in Section 63A-5-201 .
             60835          (b) "Energy efficiency measures" means actions taken or initiated by a state agency that
             60836      reduce the state agency's energy use, increase the state agency's energy efficiency, reduce source
             60837      energy consumption, reduce water consumption, or lower the costs of energy or water to the
             60838      state agency.
             60839          (c) "Energy savings agreement" means an agreement entered into by a state agency
             60840      whereby the state agency implements energy efficiency measures and finances the costs
             60841      associated with implementation of energy efficiency measures using the stream of expected
             60842      savings in utility costs resulting from implementation of the energy efficiency measures as the
             60843      funding source for repayment.
             60844          (d) "State agency" means each executive, legislative, and judicial branch department,
             60845      agency, board, commission, or division, and includes a state institution of higher education as

             60846      defined in Section 53B-3-102 .
             60847          (e) "State Building Energy Efficiency Program" means a program established under this
             60848      section for the purpose of improving energy efficiency measures and reducing the energy costs
             60849      for state facilities.
             60850          (f) (i) "State facility" means any building, structure, or other improvement that is
             60851      constructed on property owned by the state, its departments, commissions, institutions, or
             60852      agencies, or a state institution of higher education.
             60853          (ii) "State facility" does not mean:
             60854          (A) an unoccupied structure that is a component of the state highway system;
             60855          (B) a privately owned structure that is located on property owned by the state, its
             60856      departments, commissions, institutions, or agencies, or a state institution of higher education; or
             60857          (C) a structure that is located on land administered by the School and Institutional Trust
             60858      Lands Administration under a lease, permit, or contract with the School and Institutional Trust
             60859      Lands Administration.
             60860          (2) The division shall:
             60861          (a) develop and administer the state building energy efficiency program, which shall
             60862      include guidelines and procedures to improve energy efficiency in the maintenance and
             60863      management of state facilities;
             60864          (b) provide information and assistance to state agencies in their efforts to improve
             60865      energy efficiency;
             60866          (c) analyze energy consumption by state agencies to identify opportunities for improved
             60867      energy efficiency;
             60868          (d) establish an advisory group composed of representatives of state agencies to
             60869      provide information and assistance in the development and implementation of the state building
             60870      energy efficiency program; and
             60871          (e) submit to the governor and to the Capital Facilities and Administrative Services
             60872      Appropriations Subcommittee of the Legislature an annual report that:
             60873          (i) identifies strategies for long-term improvement in energy efficiency;

             60874          (ii) identifies goals for energy conservation for the upcoming year; and
             60875          (iii) details energy management programs and strategies that were undertaken in the
             60876      previous year to improve the energy efficiency of state agencies and the energy savings
             60877      achieved.
             60878          (3) Each state agency shall:
             60879          (a) designate a staff member that is responsible for coordinating energy efficiency
             60880      efforts within the agency;
             60881          (b) provide energy consumption and costs information to the division;
             60882          (c) develop strategies for improving energy efficiency and reducing energy costs; and
             60883          (d) provide the division with information regarding the agency's energy efficiency and
             60884      reduction strategies.
             60885          (4) (a) A state agency may enter into an energy savings agreement for a term of up to
             60886      20 years.
             60887          (b) Before entering into an energy savings agreement, the state agency shall:
             60888          (i) utilize the division to oversee the project unless the project is exempt from the
             60889      division's oversight or the oversight is delegated to the agency under the provisions of Section
             60890      63A-5-206 ;
             60891          (ii) obtain the prior approval of the governor or the governor's designee; and
             60892          (iii) provide the Office of Legislative Fiscal Analyst with a copy of the proposed
             60893      agreement before the agency enters into the agreement.
             60894          Section 1203. Section 63A-5-801 , which is renumbered from Section 63-9-68 is
             60895      renumbered and amended to read:
             60896     
Part 8. State Memorials

             60897           [63-9-68].     63A-5-801. Memorials by the state or state agencies.
             60898          (1) As used in this section:
             60899          (a) "State agency" means any of the following of the state that holds title to state land:
             60900          (i) a department;
             60901          (ii) a division;

             60902          (iii) a board;
             60903          (iv) an institution of higher education; or
             60904          (v) for the judicial branch, the state court administrator.
             60905          (b) "State agency" does not mean a local district under Title 17B, Limited Purpose
             60906      Local Government Entities - Local Districts, a special service district under Title 17A, Chapter
             60907      2, Part 13, Utah Special Service District Act, or a dependent district under Title 17A, Chapter
             60908      3, Dependent Districts.
             60909          (2) The Legislature, the governor, or a state agency may authorize the use or donation
             60910      of state land for the purpose of maintaining, erecting, or contributing to the erection or
             60911      maintenance of a memorial to commemorate those individuals who have:
             60912          (a) participated in or have given their lives in any of the one or more wars or military
             60913      conflicts in which the United States of America has been a participant; or
             60914          (b) given their lives in association with public service on behalf of the state, including
             60915      firefighters, peace officers, highway patrol officers, or other public servants.
             60916          (3) The use or donation of state land in relation to a memorial described in Subsection
             60917      (2) may include:
             60918          (a) using or appropriating public funds for the purchase, development, improvement, or
             60919      maintenance of state land on which a memorial is located or established;
             60920          (b) using or appropriating public funds for the erection, improvement, or maintenance
             60921      of a memorial;
             60922          (c) donating or selling state land for use in relation to a memorial; or
             60923          (d) authorizing the use of state land for a memorial that is funded or maintained in part
             60924      or in full by another public or private entity.
             60925          (4) The Legislature, the governor, or a state agency may specify the form, placement,
             60926      and design of a memorial that is subject to this section if the Legislature, the governor, or the
             60927      state agency holds title to, has authority over, or donates the land on which a memorial is
             60928      established.
             60929          (5) Memorials within the definition of a capital development as defined in Section

             60930      63A-5-104 must be approved as provided for in Section 63A-5-104 .
             60931          (6) Nothing in this section shall be construed as a prohibition of memorials, including
             60932      those for purposes not covered by this section, which have been erected within the approval
             60933      requirements in effect at the time of their erection or which may be duly authorized through
             60934      other legal means.
             60935          Section 1204. Section 63A-8-201 is amended to read:
             60936           63A-8-201. Office of State Debt Collection created -- Duties.
             60937          (1) The state and each state agency shall comply with the requirements of this chapter
             60938      and any rules established by the Office of State Debt Collection.
             60939          (2) There is created the Office of State Debt Collection in the Department of
             60940      Administrative Services.
             60941          (3) The office shall:
             60942          (a) have overall responsibility for collecting and managing state receivables;
             60943          (b) develop consistent policies governing the collection and management of state
             60944      receivables;
             60945          (c) oversee and monitor state receivables to ensure that state agencies are:
             60946          (i) implementing all appropriate collection methods;
             60947          (ii) following established receivables guidelines; and
             60948          (iii) accounting for and reporting receivables in the appropriate manner;
             60949          (d) develop policies, procedures, and guidelines for accounting, reporting, and
             60950      collecting monies owed to the state;
             60951          (e) provide information, training, and technical assistance to all state agencies on
             60952      various collection-related topics;
             60953          (f) write an inclusive receivables management and collection manual for use by all state
             60954      agencies;
             60955          (g) prepare quarterly and annual reports of the state's receivables;
             60956          (h) create or coordinate a state accounts receivable database;
             60957          (i) develop reasonable criteria to gauge state agencies' efforts in maintaining an effective

             60958      accounts receivable program;
             60959          (j) identify those state agencies that are not making satisfactory progress toward
             60960      implementing collection techniques and improving accounts receivable collections;
             60961          (k) coordinate information, systems, and procedures between state agencies to
             60962      maximize the collection of past-due accounts receivable;
             60963          (l) establish an automated cash receipt process between state agencies;
             60964          (m) establish procedures for writing off accounts receivable for accounting and
             60965      collection purposes;
             60966          (n) establish standard time limits after which an agency will delegate responsibility to
             60967      collect state receivables to the office or its designee;
             60968          (o) be a real party in interest for an account receivable referred to the office by any state
             60969      agency; and
             60970          (p) allocate monies collected for judgments registered under Section 77-18-6 in
             60971      accordance with Sections [ 63-63a-2 ] 51-9-402 , 63A-8-302 , and 78-3-14.5 .
             60972          (4) The office may:
             60973          (a) recommend to the Legislature new laws to enhance collection of past-due accounts
             60974      by state agencies;
             60975          (b) collect accounts receivables for higher education entities, if the higher education
             60976      entity agrees;
             60977          (c) prepare a request for proposal for consulting services to:
             60978          (i) analyze the state's receivable management and collection efforts; and
             60979          (ii) identify improvements needed to further enhance the state's effectiveness in
             60980      collecting its receivables;
             60981          (d) contract with private or state agencies to collect past-due accounts;
             60982          (e) perform other appropriate and cost-effective coordinating work directly related to
             60983      collection of state receivables;
             60984          (f) obtain access to records of any state agency that are necessary to the duties of the
             60985      office by following the procedures and requirements of Section [ 63-2-206 ] 63G-2-206 ;

             60986          (g) collect interest and fees related to the collection of receivables under this chapter,
             60987      and establish, by following the procedures and requirements of Section [ 63-38-3.2 ] 63J-1-303 :
             60988          (i) a fee to cover the administrative costs of collection, on accounts administered by the
             60989      office;
             60990          (ii) a late penalty fee that may not be more than 10% of the account receivable on
             60991      accounts administered by the office;
             60992          (iii) an interest charge that is:
             60993          (A) the postjudgment interest rate established by Section 15-1-4 in judgments
             60994      established by the courts; or
             60995          (B) not more than 2% above the prime rate as of July 1 of each fiscal year for accounts
             60996      receivable for which no court judgment has been entered; and
             60997          (iv) fees to collect accounts receivable for higher education;
             60998          (h) collect reasonable attorney's fees and reasonable costs of collection that are related
             60999      to the collection of receivables under this chapter;
             61000          (i) make rules that allow accounts receivable to be collected over a reasonable period of
             61001      time and under certain conditions with credit cards;
             61002          (j) file a satisfaction of judgment in the district court by following the procedures and
             61003      requirements of the Utah Rules of Civil Procedure;
             61004          (k) ensure that judgments for which the office is the judgment creditor are renewed, as
             61005      necessary; and
             61006          (l) notwithstanding Section [ 63-2-206 ] 63G-2-206 , share records obtained under
             61007      Subsection (4)(f) with private sector vendors under contract with the state to assist state
             61008      agencies in collecting debts owed to the state agencies without changing the classification of any
             61009      private, controlled, or protected record into a public record.
             61010          (5) The office shall ensure that:
             61011          (a) a record obtained by the office or a private sector vendor as referred to in
             61012      Subsection (4)(l):
             61013          (i) is used only for the limited purpose of collecting accounts receivable; and

             61014          (ii) is subject to federal, state, and local agency records restrictions; and
             61015          (b) any person employed by, or formerly employed by, the office or a private sector
             61016      vendor as referred to in Subsection (4)(l) is subject to:
             61017          (i) the same duty of confidentiality with respect to the record imposed by law on
             61018      officers and employees of the state agency from which the record was obtained; and
             61019          (ii) any civil or criminal penalties imposed by law for violations of lawful access to a
             61020      private, controlled, or protected record.
             61021          (6) (a) The office shall collect accounts receivable ordered by the district court as a
             61022      result of prosecution for a criminal offense that have been transferred to the office under
             61023      Subsection 76-3-201.1 (5)(h) or (8).
             61024          (b) The office may not assess the interest charge established by the office under
             61025      Subsection (4) on an account receivable subject to the postjudgment interest rate established by
             61026      Section 15-1-4 .
             61027          (7) The office shall require state agencies to:
             61028          (a) transfer collection responsibilities to the office or its designee according to time
             61029      limits established by the office;
             61030          (b) make annual progress towards implementing collection techniques and improved
             61031      accounts receivable collections;
             61032          (c) use the state's accounts receivable system or develop systems that are adequate to
             61033      properly account for and report their receivables;
             61034          (d) develop and implement internal policies and procedures that comply with the
             61035      collections policies and guidelines established by the office;
             61036          (e) provide internal accounts receivable training to staff involved in their management
             61037      and collection of receivables as a supplement to statewide training;
             61038          (f) bill for and make initial collection efforts of its receivables up to the time the
             61039      accounts must be transferred; and
             61040          (g) submit quarterly receivable reports to the office that identify the age, collection
             61041      status, and funding source of each receivable.

             61042          (8) The office shall use the information provided by the agencies and any additional
             61043      information from the office's records to compile a one-page summary report of each agency.
             61044          (9) The summary shall include:
             61045          (a) the type of revenue that is owed to the agency;
             61046          (b) any attempted collection activity; and
             61047          (c) any costs incurred in the collection process.
             61048          (10) The office shall annually provide copies of each agency's summary to the governor
             61049      and to the Legislature.
             61050          Section 1205. Section 63A-8-204 is amended to read:
             61051           63A-8-204. Rulemaking authority -- Collection techniques.
             61052          In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
             61053      Rulemaking Act, the office shall make rules:
             61054          (1) providing details, as necessary, for the distribution of debts collected in accordance
             61055      with the priorities under Subsection 63A-8-301 (3); and
             61056          (2) to govern collection techniques, which may include the use of:
             61057          (a) credit reporting bureaus;
             61058          (b) collection agencies;
             61059          (c) garnishments;
             61060          (d) liens;
             61061          (e) judgments; and
             61062          (f) administrative offsets.
             61063          Section 1206. Section 63A-9-401 is amended to read:
             61064           63A-9-401. Division -- Duties.
             61065          (1) The division shall:
             61066          (a) perform all administrative duties and functions related to management of state
             61067      vehicles;
             61068          (b) coordinate all purchases of state vehicles;
             61069          (c) establish one or more fleet automation and information systems for state vehicles;

             61070          (d) make rules establishing requirements for:
             61071          (i) maintenance operations for state vehicles;
             61072          (ii) use requirements for state vehicles;
             61073          (iii) fleet safety and loss prevention programs;
             61074          (iv) preventative maintenance programs;
             61075          (v) procurement of state vehicles, including:
             61076          (A) vehicle standards;
             61077          (B) alternative fuel vehicle requirements;
             61078          (C) short-term lease programs;
             61079          (D) equipment installation; and
             61080          (E) warranty recovery programs;
             61081          (vi) fuel management programs;
             61082          (vii) cost management programs;
             61083          (viii) business and personal use practices, including commute standards;
             61084          (ix) cost recovery and billing procedures;
             61085          (x) disposal of state vehicles;
             61086          (xi) reassignment of state vehicles and reallocation of vehicles throughout the fleet;
             61087          (xii) standard use and rate structures for state vehicles; and
             61088          (xiii) insurance and risk management requirements;
             61089          (e) establish a parts inventory;
             61090          (f) create and administer a fuel dispensing services program that meets the requirements
             61091      of Subsection (2);
             61092          (g) emphasize customer service when dealing with agencies and agency employees;
             61093          (h) conduct an annual audit of all state vehicles for compliance with division
             61094      requirements;
             61095          (i) before charging a rate, fee, or other amount to an executive branch agency, or to a
             61096      subscriber of services other than an executive branch agency:
             61097          (i) submit the proposed rates, fees, and cost analysis to the Rate Committee established

             61098      in Section 63A-1-114 ; and
             61099          (ii) obtain the approval of the Legislature as required by Section [ 63-38-3.5 ] 63J-1-306 ;
             61100      and
             61101          (j) conduct an annual market analysis of proposed rates and fees, which analysis shall
             61102      include a comparison of the division's rates and fees with the fees of other public or private
             61103      sector providers where comparable services and rates are reasonably available.
             61104          (2) The division shall operate a fuel dispensing services program in a manner that:
             61105          (a) reduces the risk of environmental damage and subsequent liability for leaks
             61106      involving state-owned underground storage tanks;
             61107          (b) eliminates fuel site duplication and reduces overall costs associated with fuel
             61108      dispensing;
             61109          (c) provides efficient fuel management and efficient and accurate accounting of
             61110      fuel-related expenses;
             61111          (d) where practicable, privatizes portions of the state's fuel dispensing system;
             61112          (e) provides central planning for fuel contingencies;
             61113          (f) establishes fuel dispensing sites that meet geographical distribution needs and that
             61114      reflect usage patterns;
             61115          (g) where practicable, uses alternative sources of energy; and
             61116          (h) provides safe, accessible fuel supplies in an emergency.
             61117          (3) The division shall:
             61118          (a) ensure that the state and each of its agencies comply with state and federal law and
             61119      state and federal rules and regulations governing underground storage tanks;
             61120          (b) coordinate the installation of new state-owned underground storage tanks and the
             61121      upgrading or retrofitting of existing underground storage tanks; and
             61122          (c) ensure that counties, municipalities, school districts, local districts, and special
             61123      service districts subscribing to services provided by the division sign a contract that:
             61124          (i) establishes the duties and responsibilities of the parties;
             61125          (ii) establishes the cost for the services; and

             61126          (iii) defines the liability of the parties.
             61127          (4) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             61128      Administrative Rulemaking Act, the director of the Division of Fleet Operations:
             61129          (i) may make rules governing fuel dispensing; and
             61130          (ii) shall make rules establishing standards and procedures for purchasing the most
             61131      economically appropriate size and type of vehicle for the purposes and driving conditions for
             61132      which the vehicle will be used, including procedures for granting exceptions to the standards by
             61133      the executive director of the Department of Administrative Services.
             61134          (b) Rules made under Subsection (4)(a)(ii):
             61135          (i) shall designate a standard vehicle size and type that shall be designated as the
             61136      statewide standard vehicle for fleet expansion and vehicle replacement;
             61137          (ii) may designate different standard vehicle size and types based on defined categories
             61138      of vehicle use;
             61139          (iii) may, when determining a standard vehicle size and type for a specific category of
             61140      vehicle use, consider the following factors affecting the vehicle class:
             61141          (A) size requirements;
             61142          (B) economic savings;
             61143          (C) fuel efficiency;
             61144          (D) driving and use requirements;
             61145          (E) safety;
             61146          (F) maintenance requirements; and
             61147          (G) resale value; and
             61148          (iv) shall require agencies that request a vehicle size and type that is different from the
             61149      standard vehicle size and type to:
             61150          (A) submit a written request for a nonstandard vehicle to the division that contains the
             61151      following:
             61152          (I) the make and model of the vehicle requested, including acceptable alternate vehicle
             61153      makes and models as applicable;

             61154          (II) the reasons justifying the need for a nonstandard vehicle size or type;
             61155          (III) the date of the request; and
             61156          (IV) the name and signature of the person making the request; and
             61157          (B) obtain the division's written approval for the nonstandard vehicle.
             61158          (5) (a) (i) Each state agency and each higher education institution shall subscribe to the
             61159      fuel dispensing services provided by the division.
             61160          (ii) A state agency may not provide or subscribe to any other fuel dispensing services,
             61161      systems, or products other than those provided by the division.
             61162          (b) Counties, municipalities, school districts, local districts, special service districts, and
             61163      federal agencies may subscribe to the fuel dispensing services provided by the division if:
             61164          (i) the county or municipal legislative body, the school district, or the local district or
             61165      special service district board recommends that the county, municipality, school district, local
             61166      district, or special service district subscribe to the fuel dispensing services of the division; and
             61167          (ii) the division approves participation in the program by that government unit.
             61168          (6) The director, with the approval of the executive director, may delegate functions to
             61169      institutions of higher education, by contract or other means authorized by law, if:
             61170          (a) the agency or institution of higher education has requested the authority;
             61171          (b) in the judgment of the director, the state agency or institution has the necessary
             61172      resources and skills to perform the delegated responsibilities; and
             61173          (c) the delegation of authority is in the best interest of the state and the function
             61174      delegated is accomplished according to provisions contained in law or rule.
             61175          Section 1207. Section 63A-9-801 is amended to read:
             61176           63A-9-801. State surplus property program -- Definitions -- Administration.
             61177          (1) As used in this section:
             61178          (a) "Agency" means:
             61179          (i) the Utah Departments of Administrative Services, Agriculture, Alcoholic Beverage
             61180      Control, Commerce, Community and Culture, Corrections, Workforce Services, Health, Human
             61181      Resource Management, Human Services, Insurance, Natural Resources, Public Safety,

             61182      Technology Services, and Transportation and the Labor Commission;
             61183          (ii) the Utah Offices of the Auditor, Attorney General, Court Administrator, Crime
             61184      Victim Reparations, Rehabilitation, and Treasurer;
             61185          (iii) the Public Service Commission and State Tax Commission;
             61186          (iv) the State Boards of Education, Pardons and Parole, and Regents;
             61187          (v) the Career Service Review Board;
             61188          (vi) other state agencies designated by the governor;
             61189          (vii) the legislative branch, the judicial branch, and the State Board of Regents; and
             61190          (viii) an institution of higher education, its president, and its board of trustees for
             61191      purposes of Section 63A-9-802 .
             61192          (b) "Division" means the Division of Fleet Operations.
             61193          (c) "Information technology equipment" means any equipment that is designed to
             61194      electronically manipulate, store, or transfer any form of data.
             61195          (d) "Inventory property" means property in the possession of the division that is
             61196      available for purchase by an agency or the public.
             61197          (e) "Judicial district" means the geographic districts established by Section 78-1-2.1 .
             61198          (f) (i) "Surplus property" means property purchased by, seized by, or donated to, an
             61199      agency that the agency wishes to dispose of.
             61200          (ii) "Surplus property" does not mean real property.
             61201          (g) "Transfer" means transfer of surplus property without cash consideration.
             61202          (2) (a) The division shall make rules establishing a state surplus property program that
             61203      meets the requirements of this chapter by following the procedures and requirements of [Title
             61204      63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             61205          (b) Those rules shall include:
             61206          (i) a requirement prohibiting the transfer of surplus property from one agency to
             61207      another agency without written approval from the division;
             61208          (ii) procedures and requirements governing division administration requirements that an
             61209      agency must follow;

             61210          (iii) requirements governing purchase priorities;
             61211          (iv) requirements governing accounting, reimbursement, and payment procedures;
             61212          (v) procedures for collecting bad debts;
             61213          (vi) requirements and procedures for disposing of firearms;
             61214          (vii) the elements of the rates or other charges assessed by the division for services and
             61215      handling;
             61216          (viii) procedures governing the timing and location of public sales of inventory
             61217      property; and
             61218          (ix) procedures governing the transfer of information technology equipment by state
             61219      agencies directly to public schools.
             61220          (c) The division shall report all transfers of information technology equipment by state
             61221      agencies to public schools to the Utah Technology Commission and to the Legislative Interim
             61222      Education Committee at the end of each fiscal year.
             61223          (3) In creating and administering the program, the division shall:
             61224          (a) when conditions, inventory, and demand permit:
             61225          (i) establish facilities to store inventory property at geographically dispersed locations
             61226      throughout the state; and
             61227          (ii) hold public sales of property at geographically dispersed locations throughout the
             61228      state;
             61229          (b) establish, after consultation with the agency requesting the sale of surplus property,
             61230      the price at which the surplus property shall be sold; and
             61231          (c) transfer proceeds arising from the sale of state surplus property to the agency
             61232      requesting the sale in accordance with [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary
             61233      Procedures Act, less an amount established by the division by rule to pay the costs of
             61234      administering the surplus property program.
             61235          (4) Unless specifically exempted from this chapter by explicit reference to this chapter,
             61236      each state agency shall dispose of and acquire surplus property only by participating in the
             61237      division's program.

             61238          Section 1208. Section 63A-9-808 is amended to read:
             61239           63A-9-808. Personal handheld electronic device -- Rulemaking on giving priority
             61240      to state and local agencies in purchasing surplus property -- Rulemaking on the sale or
             61241      use of a personal handheld electronic device.
             61242          (1) As used in this section, "personal handheld electronic device":
             61243          (a) means an electronic device that is designed for handheld use and permits the user to
             61244      store or access information, the primary value of which is specific to the user of the device; and
             61245          (b) includes a mobile phone, pocket personal computer, personal digital assistant,
             61246      wireless, or similar device.
             61247          (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             61248      Administrative Rulemaking Act, the division shall make rules:
             61249          (a) giving state and local agencies priority to purchase surplus property for a 30-day
             61250      period except for personal handheld electronic devices under Subsection (2)(b); and
             61251          (b) allowing the sale of a personal handheld electronic device to a user who:
             61252          (i) is provided the device as part of the user's employment; and
             61253          (ii) subsequently makes a change in employment status including, departure, retirement,
             61254      or transfer to another agency within state government.
             61255          Section 1209. Section 63A-11-107 is amended to read:
             61256           63A-11-107. Records access.
             61257          (1) (a) Notwithstanding [Title 63, Chapter 2] Title 63G, Chapter 2, Government
             61258      Records Access and Management Act, and except as provided in Subsection (1)(b), all records
             61259      of a contracted parental defense attorney are protected and may not be released or made public
             61260      upon subpoena, search warrant, discovery proceedings, or otherwise.
             61261          (b) All records of a contracted parental defense attorney are subject to legislative
             61262      subpoena, under Title 36, Chapter 14, Legislative Subpoena Powers.
             61263          (2) Records released in accordance with Subsection (1)(b) shall be maintained as
             61264      confidential by the Legislature. The professional legislative staff may, however, include
             61265      summary data and nonidentifying information in its audits and reports to the Legislature.

             61266          Section 1210. Section 63A-11-202 is amended to read:
             61267           63A-11-202. Contracted parental defense attorney.
             61268          (1) With respect to child welfare cases, a contracted parental defense attorney shall:
             61269          (a) adequately prepare for and attend all court hearings, including initial and continued
             61270      shelter hearings and mediations;
             61271          (b) fully advise the client of the nature of the proceedings and of the client's rights,
             61272      communicate to the client any offers of settlement or compromise, and advise the client
             61273      regarding the reasonably foreseeable consequences of any course of action in the proceedings;
             61274          (c) be reasonably available to consult with the client outside of court proceedings;
             61275          (d) where attendance of a parental defense attorney is reasonably needed, attend
             61276      meetings regarding the client's case with representatives of one or more of the Division of Child
             61277      and Family Services, the Office of the Attorney General, and the Office of the Guardian Ad
             61278      Litem;
             61279          (e) represent the interest of the client at all stages of the proceedings before the trial
             61280      court;
             61281          (f) participate in the training courses and otherwise maintain the standards described in
             61282      Subsection (3).
             61283          (2) If the office enters into a contract with an attorney under Section 63A-11-105 , the
             61284      contract shall require that each attorney in the firm who will provide representation of parents in
             61285      child welfare cases under the contract perform the duties described in Subsection (1).
             61286          (3) (a) Except as otherwise provided in Subsection (3)(b), a contracted parental defense
             61287      attorney shall meet the standards developed by the director which may include:
             61288          (i) completion of a basic training course provided by the office;
             61289          (ii) experience in child welfare cases; and
             61290          (iii) participation each calendar year in continuing legal education courses providing no
             61291      fewer than eight hours of instruction in child welfare law.
             61292          (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
             61293      Administrative Rulemaking Act, the director may, by rule, exempt from the requirements of

             61294      Subsection (3)(a) an attorney who has equivalent training or adequate experience.
             61295          (4) Payment for the representation, costs, and expenses of the contracted parental
             61296      defense attorney shall be made from the Child Welfare Parental Defense Fund as provided in
             61297      Section 63A-11-203 .
             61298          Section 1211. Section 63A-11-204 is amended to read:
             61299           63A-11-204. Agreements for coverage by the Child Welfare Parental Defense
             61300      Fund -- Eligibility -- County and state obligations -- Termination -- Revocation.
             61301          (1) A county legislative body and the office may annually enter into a written agreement
             61302      for the office to provide parental defense attorney services in the county out of the Child
             61303      Welfare Parental Defense Fund.
             61304          (2) An agreement described in Subsection (1) shall provide that the county shall pay
             61305      into the fund an amount defined by a formula established in rule by the office.
             61306          (3) (a) After the first year of operation of the fund, any county that elects to initiate
             61307      participation in the fund, or reestablish participation in the fund after participation was
             61308      terminated, shall be required to make an equity payment, in addition to the assessment provided
             61309      in Subsection (2).
             61310          (b) The amount of the equity payment described in Subsection (3)(a) shall be
             61311      determined by the office pursuant to rules established by the office under [Title 63, Chapter
             61312      46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             61313          (4) The agreement shall provide for revocation of the agreement for failure to pay
             61314      assessments on the due date established by rule.
             61315          (5) Any county that elects to withdraw from participation in the fund, or whose
             61316      participation in the fund is revoked due to failure to pay its assessments when due, shall forfeit
             61317      any right to any previously paid assessments by the county or coverage from the fund.
             61318          Section 1212. Section 63A-12-101 , which is renumbered from Section 63-2-901 is
             61319      renumbered and amended to read:
             61320     
Part 1. Archives and Records Service

             61321           [63-2-901].     63A-12-101. Division of Archives and Records Service created --

             61322      Duties.
             61323          (1) There is created the Division of Archives and Records Service within the
             61324      Department of Administrative Services.
             61325          (2) The state archives shall:
             61326          (a) administer the state's archives and records management programs, including storage
             61327      of records, central microphotography programs, and quality control;
             61328          (b) apply fair, efficient, and economical management methods to the collection,
             61329      creation, use, maintenance, retention, preservation, disclosure, and disposal of records and
             61330      documents;
             61331          (c) establish standards, procedures, and techniques for the effective management and
             61332      physical care of records;
             61333          (d) conduct surveys of office operations and recommend improvements in current
             61334      records management practices, including the use of space, equipment, automation, and supplies
             61335      used in creating, maintaining, storing, and servicing records;
             61336          (e) establish standards for the preparation of schedules providing for the retention of
             61337      records of continuing value and for the prompt and orderly disposal of state records no longer
             61338      possessing sufficient administrative, historical, legal, or fiscal value to warrant further retention;
             61339          (f) establish, maintain, and operate centralized microphotography lab facilities and
             61340      quality control for the state;
             61341          (g) provide staff and support services to the records committee;
             61342          (h) develop training programs to assist records officers and other interested officers and
             61343      employees of governmental entities to administer this [chapter] part and Title 63G, Chapter 2,
             61344      Government Records Access and Management Act;
             61345          (i) provide access to public records deposited in the archives;
             61346          (j) administer and maintain the Utah Public Notice Website established under Section
             61347      63F-1-701 ;
             61348          (k) provide assistance to any governmental entity in administering this [chapter] part
             61349      and Title 63G, Chapter 2, Government Records Access and Management Act; and

             61350          (l) prepare forms for use by all governmental entities for a person requesting access to a
             61351      record.
             61352          (3) The state archives may:
             61353          (a) establish a report and directives management program; and
             61354          (b) establish a forms management program.
             61355          (4) The executive director of the Department of Administrative Services may direct the
             61356      state archives to administer other functions or services consistent with this [chapter] part and
             61357      Title 63G, Chapter 2, Government Records Access and Management Act.
             61358          Section 1213. Section 63A-12-102 , which is renumbered from Section 63-2-902 is
             61359      renumbered and amended to read:
             61360           [63-2-902].     63A-12-102. State archivist -- Duties.
             61361          (1) With the approval of the governor, the executive director of the Department of
             61362      Administrative Services shall appoint the state archivist to serve as director of the state archives.
             61363      The state archivist shall be qualified by archival training, education, and experience.
             61364          (2) The state archivist is charged with custody of the following:
             61365          (a) the enrolled copy of the Utah constitution;
             61366          (b) the acts and resolutions passed by the Legislature;
             61367          (c) all records kept or deposited with the state archivist as provided by law;
             61368          (d) the journals of the Legislature and all bills, resolutions, memorials, petitions, and
             61369      claims introduced in the Senate or the House of Representatives;
             61370          (e) Indian war records; and
             61371          (f) oaths of office of all state officials.
             61372          (3) (a) The state archivist is the official custodian of all noncurrent records of
             61373      permanent or historic value that are not required by law to remain in the custody of the
             61374      originating governmental entity.
             61375          (b) Upon the termination of any governmental entity, its records shall be transferred to
             61376      the state archives.
             61377          Section 1214. Section 63A-12-103 , which is renumbered from Section 63-2-903 is

             61378      renumbered and amended to read:
             61379           [63-2-903].     63A-12-103. Duties of governmental entities.
             61380          The chief administrative officer of each governmental entity shall:
             61381          (1) establish and maintain an active, continuing program for the economical and
             61382      efficient management of the governmental entity's records as provided by this [chapter] part and
             61383      Title 63G, Chapter 2, Government Records Access and Management Act;
             61384          (2) appoint one or more records officers who will be trained to work with the state
             61385      archives in the care, maintenance, scheduling, disposal, classification, designation, access, and
             61386      preservation of records;
             61387          (3) ensure that officers and employees of the governmental entity that receive or
             61388      process records requests receive required training on the procedures and requirements of this
             61389      [chapter] part and Title 63G, Chapter 2, Government Records Access and Management Act;
             61390          (4) make and maintain adequate and proper documentation of the organization,
             61391      functions, policies, decisions, procedures, and essential transactions of the governmental entity
             61392      designed to furnish information to protect the legal and financial rights of persons directly
             61393      affected by the entity's activities;
             61394          (5) submit to the state archivist proposed schedules of records for final approval by the
             61395      records committee;
             61396          (6) cooperate with the state archivist in conducting surveys made by the state archivist;
             61397          (7) comply with rules issued by the Department of Administrative Services as provided
             61398      by Section [ 63-2-904 ] 63A-12-104 ;
             61399          (8) report to the state archives the designation of record series that it maintains;
             61400          (9) report to the state archives the classification of each record series that is classified;
             61401      and
             61402          (10) establish and report to the state archives retention schedules for objects that the
             61403      governmental entity determines are not defined as a record under Section [ 63-2-103 ]
             61404      63G-2-103 , but that have historical or evidentiary value.
             61405          Section 1215. Section 63A-12-104 , which is renumbered from Section 63-2-904 is

             61406      renumbered and amended to read:
             61407           [63-2-904].     63A-12-104. Rulemaking authority.
             61408          (1) The executive director of the Department of Administrative Services, with the
             61409      recommendation of the state archivist, may make rules as provided by [Title 63, Chapter 46a]
             61410      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement provisions of this
             61411      [chapter] part and Title 63G, Chapter 2, Government Records Access and Management Act,
             61412      dealing with procedures for the collection, storage, designation, classification, access, and
             61413      management of records.
             61414          (2) A governmental entity that includes divisions, boards, departments, committees,
             61415      commissions, or other subparts that fall within the definition of a governmental entity under this
             61416      chapter, may, by rule, specify at which level the requirements specified in this chapter shall be
             61417      undertaken.
             61418          Section 1216. Section 63A-12-105 , which is renumbered from Section 63-2-905 is
             61419      renumbered and amended to read:
             61420           [63-2-905].     63A-12-105. Records declared property of the state -- Disposition.
             61421          (1) All records created or maintained by a governmental entity of the state are the
             61422      property of the state and shall not be mutilated, destroyed, or otherwise damaged or disposed
             61423      of, in whole or part, except as provided in this [chapter] part and Title 63G, Chapter 2,
             61424      Government Records Access and Management Act.
             61425          (2) (a) Except as provided in Subsection (b), all records created or maintained by a
             61426      political subdivision of the state are the property of the state and shall not be mutilated,
             61427      destroyed, or otherwise damaged or disposed of, in whole or in part, except as provided in this
             61428      [chapter] part and Title 63G, Chapter 2, Government Records Access and Management Act.
             61429          (b) Records which constitute a valuable intellectual property shall be the property of the
             61430      political subdivision.
             61431          (c) The state archives may, upon request from a political subdivision, take custody of
             61432      any record series of the political subdivision. A political subdivision which no longer wishes to
             61433      maintain custody of a record which must be retained under the political subdivision's retention

             61434      schedule or the state archive's retention schedule shall transfer it to the state archives for
             61435      safekeeping and management.
             61436          (3) It is unlawful for a governmental entity or political subdivision to intentionally
             61437      mutilate, destroy, or otherwise damage or dispose of a record series knowing that such
             61438      mutilation, destruction, or damage is in contravention of the political subdivision's or the state
             61439      archive's properly adopted retention schedule.
             61440          Section 1217. Section 63A-12-106 , which is renumbered from Section 63-2-906 is
             61441      renumbered and amended to read:
             61442           [63-2-906].     63A-12-106. Certified and microphotographed copies.
             61443          (1) Upon demand, the state archives shall furnish certified copies of a record in its
             61444      exclusive custody that is classified public or that is otherwise determined to be public under this
             61445      chapter by the originating governmental entity, the records committee, or a court of law. When
             61446      certified by the state archivist under the seal of the state archives, the copy has the same legal
             61447      force and effect as if certified by the originating governmental entity.
             61448          (2) The state archives may microphotograph records when it determines that
             61449      microphotography is an efficient and economical way to care, maintain, and preserve the record.
             61450      A transcript, exemplification, or certified copy of a microphotograph has the same legal force
             61451      and effect as the original. Upon review and approval of the microphotographed film by the
             61452      state archivist, the source documents may be destroyed.
             61453          (3) The state archives may allow another governmental entity to microphotograph
             61454      records in accordance with standards set by the state archives.
             61455          Section 1218. Section 63A-12-107 , which is renumbered from Section 63-2-907 is
             61456      renumbered and amended to read:
             61457           [63-2-907].     63A-12-107. Right to replevin.
             61458          To secure the safety and preservation of records, the state archivist or [his] the state
             61459      archivist's representative may examine all records. On behalf of the state archivist, the attorney
             61460      general may replevin any records that are not adequately safeguarded.
             61461          Section 1219. Section 63A-12-108 , which is renumbered from Section 63-2-908 is

             61462      renumbered and amended to read:
             61463           [63-2-908].     63A-12-108. Inspection and summary of record series.
             61464          The state archives shall provide for public inspection of the title and a summary
             61465      description of each record series.
             61466          Section 1220. Section 63B-1a-401 is amended to read:
             61467           63B-1a-401. Status of bond records -- Compliance with Registered Public
             61468      Obligations Act.
             61469          (1) The records of ownership, registration, transfer, and exchange of the bonds, and of
             61470      persons to whom payment with respect to the obligations are made, are private records as
             61471      provided in Section [ 63-2-302 ] 63G-2-302 or protected records as provided in Section
             61472      [ 63-2-304 ] 63G-2-305 .
             61473          (2) The bonds and any evidences of participation interest in the bonds may be issued,
             61474      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             61475      Title 15, Chapter 7, Registered Public Obligations Act.
             61476          Section 1221. Section 63B-1b-101 , which is renumbered from Section 63-65-1 is
             61477      renumbered and amended to read:
             61478     
CHAPTER 1b. STATE FINANCING CONSOLIDATION ACT

             61479     
Part 1. General Provisions

             61480           [63-65-1].     63B-1b-101. Title.
             61481          This chapter [shall be] is known as the "State Financing Consolidation Act."
             61482          Section 1222. Section 63B-1b-102 , which is renumbered from Section 63-65-2 is
             61483      renumbered and amended to read:
             61484           [63-65-2].     63B-1b-102. Definitions.
             61485          As used in this chapter:
             61486          (1) "Agency bonds" means any bond, note, contract, or other evidence of indebtedness
             61487      representing loans or grants made by an authorizing agency.
             61488          (2) "Authorized official" means the state treasurer or other person authorized by a bond
             61489      document to perform the required action.

             61490          (3) "Authorizing agency" means the board, person, or unit with legal responsibility for
             61491      administering and managing revolving loan funds.
             61492          (4) "Bond document" means:
             61493          (a) a resolution of the commission; or
             61494          (b) an indenture or other similar document authorized by the commission that
             61495      authorizes and secures outstanding revenue bonds from time to time.
             61496          (5) "Commission" means the State Bonding Commission created in Section 63B-1-201 .
             61497          (6) "Revenue bonds" means any special fund revenue bonds issued under this chapter.
             61498          (7) "Revolving Loan Funds" means:
             61499          (a) the Water Resources Conservation and Development Fund, created in Section
             61500      73-10-24 ;
             61501          (b) the Water Resources Construction Fund, created in Section 73-10-8 ;
             61502          (c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22 ;
             61503          (d) the Clean Fuel Conversion Funds, created in Title 19, Chapter 1, Part 4, Clean Fuels
             61504      and Vehicle Technology Program Act;
             61505          (e) the Water Development Security Fund and its subaccounts created in Section
             61506      73-10c-5 ;
             61507          (f) the Agriculture Resource Development Fund, created in Section 4-18-6 ;
             61508          (g) the Utah Rural Rehabilitation Fund, created in Section 4-19-4 ;
             61509          (h) the Permanent Community Impact Fund, created in Section 9-4-303 ;
             61510          (i) the Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3 ; and
             61511          (j) the Transportation Infrastructure Loan Fund, created in Section 72-2-202 .
             61512          Section 1223. Section 63B-1b-201 , which is renumbered from Section 63-65-3 is
             61513      renumbered and amended to read:
             61514     
Part 2. Officers in State Treasurer's Office

             61515           [63-65-3].     63B-1b-201. Investment officer -- Powers and duties.
             61516          (1) There is created within the Office of the State Treasurer an investment banking
             61517      officer to advise, counsel, and render technical assistance to authorizing agencies in the

             61518      management of state loan and grant programs.
             61519          (2) This officer shall:
             61520          (a) work cooperatively with the staff and boards of authorizing agencies as an advisor
             61521      on technical financial aspects concerning loan and grant programs authorized by law;
             61522          (b) coordinate procedures for the closing of and assist authorizing agencies in closing
             61523      all loans and grants of funds or other subsidy agreements;
             61524          (c) analyze, in conjunction with the appropriate authorizing agency, the financial
             61525      feasibility and economic and capital efficiency of projects of applicants to authorizing agencies
             61526      for loans and grants, review financing options, and make recommendations to each authorizing
             61527      agency regarding terms of loans or grants and levels of state subsidy in accordance with the
             61528      financial feasibility of the project and the efficiency of available state capital;
             61529          (d) coordinate and consolidate, to the extent possible, all financial and legal analysis of
             61530      financing plans and closings of loans and grants made by each authorizing agency; and
             61531          (e) provide an annual report of [his] the officer's activities to the state treasurer, the
             61532      governor, the Division of Finance, and the boards of each authorizing agency.
             61533          (3) The analysis under Subsection (2)(c) shall include consideration of the following
             61534      criteria:
             61535          (a) a demonstration of need based on the applicant's overall financial profile, including
             61536      overlapping debt, tax levies, user rates, fees, charges, assessments, and other revenue and
             61537      obligations existing within the community as a whole;
             61538          (b) the ability of the applicant to obtain financing from other, preferably private, sources
             61539      on terms and conditions reasonably affordable;
             61540          (c) the availability and advisability of financing methods such as loans, grants, interest
             61541      buy down arrangements, bond insurance, loan or bond guarantees, or any other appropriate
             61542      method;
             61543          (d) the economic and efficiency of capital advantages enuring to the authorizing agency
             61544      if the financing plan is adopted;
             61545          (e) a demonstration of local public support for the financing plan; and

             61546          (f) availability of other funds and financing methods under law.
             61547          (4) Each authorizing agency shall consult with and cooperate with the officer and shall
             61548      consider [his] the officer's recommendations before proceeding to fund a project, but the final
             61549      decision as to the appropriate financing plan shall rest with the board of the authorizing agency
             61550      according to their legal authority existing at the time.
             61551          Section 1224. Section 63B-1b-202 , which is renumbered from Section 63-65-4 is
             61552      renumbered and amended to read:
             61553           [63-65-4].     63B-1b-202. Custodial officer -- Powers and duties.
             61554          (1) (a) There is created within the Division of Finance an officer responsible for the
             61555      care, custody, safekeeping, collection, and accounting of all bonds, notes, contracts, trust
             61556      documents, and other evidences of indebtedness:
             61557          (i) owned or administered by the state or any of its agencies; and
             61558          (ii) except as provided in Subsection (1)(b), relating to revolving loan funds.
             61559          (b) Notwithstanding Subsection (1)(a), the officer described in Subsection (1)(a) is not
             61560      responsible for the care, custody, safekeeping, collection, and accounting of a bond, note,
             61561      contract, trust document, or other evidence of indebtedness relating to the:
             61562          (i) Agriculture Resource Development Fund, created in Section 4-18-6 ;
             61563          (ii) Utah Rural Rehabilitation Fund, created in Section 4-19-4 ;
             61564          (iii) Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3 ;
             61565          (iv) Olene Walker Housing Loan Fund, created in Section 9-4-702 ;
             61566          (v) Business Development for Disadvantaged Rural Communities Restricted Account,
             61567      created in Section [ 63-38f-2003 ] 63M-1-2003 ; and
             61568          (vi) Brownfields Fund, created in Section 19-8-120 .
             61569          (2) (a) Each authorizing agency shall deliver to this officer for the officer's care,
             61570      custody, safekeeping, collection, and accounting all bonds, notes, contracts, trust documents,
             61571      and other evidences of indebtedness:
             61572          (i) owned or administered by the state or any of its agencies; and
             61573          (ii) except as provided in Subsection (1)(b), relating to revolving loan funds.

             61574          (b) This officer shall:
             61575          (i) establish systems, programs, and facilities for the care, custody, safekeeping,
             61576      collection, and accounting for the bonds, notes, contracts, trust documents, and other evidences
             61577      of indebtedness submitted to the officer under this Subsection (2); and
             61578          (ii) shall make available updated reports to each authorizing agency as to the status of
             61579      loans under their authority.
             61580          (3) The officer described in Section [ 63-65-3 ] 63B-1b-201 shall deliver to the officer
             61581      described in Subsection (1)(a) for the care, custody, safekeeping, collection, and accounting by
             61582      the officer described in Subsection (1)(a) of all bonds, notes, contracts, trust documents, and
             61583      other evidences of indebtedness closed as provided in Subsection [ 63-65-3 ] 63B-1b-201 (2)(b).
             61584          Section 1225. Section 63B-1b-301 , which is renumbered from Section 63-65-5 is
             61585      renumbered and amended to read:
             61586     
Part 3. Transfer or Liquidation of Bonds

             61587           [63-65-5].     63B-1b-301. State treasurer may sell, assign, or liquidate agency
             61588      bonds -- Marketing plan required.
             61589          (1) One or more authorizing agencies may from time to time request the state treasurer
             61590      to sell, assign, or liquidate agency bonds on behalf of the authorizing agencies as provided in
             61591      Section [ 63-65-6 ] 63B-1b-302 .
             61592          (2) (a) Agency bonds shall be sold, assigned, transferred, or liquidated by the state
             61593      treasurer pursuant to a marketing plan provided by the state treasurer under Section [ 63-65-6 ]
             61594      63B-1b-302 .
             61595          (b) The governor or the governor's designee and the appropriate authorizing agency
             61596      shall approve the marketing plan, in writing.
             61597          Section 1226. Section 63B-1b-302 , which is renumbered from Section 63-65-6 is
             61598      renumbered and amended to read:
             61599           [63-65-6].     63B-1b-302. Marketing plan and related agreements -- Use of
             61600      proceeds of liquidation of agency bonds -- Report to Division of Finance -- Special funds
             61601      -- Limitation on liability.

             61602          (1) (a) Before the liquidation of any agency bonds pursuant to the request of an
             61603      authorizing agency as provided in Section [ 63-65-5 ] 63B-1b-301 , the state treasurer shall
             61604      provide a written marketing plan to the governor or the governor's designee and the appropriate
             61605      authorizing agency or agencies for written approval.
             61606          (b) The marketing plan may provide for:
             61607          (i) the terms and conditions under which the agency bonds may be sold, assigned, or
             61608      liquidated by the state treasurer;
             61609          (ii) the particular agency bonds to be sold, assigned, or liquidated, or a maximum par
             61610      amount of agency bonds to be sold, assigned, or liquidated;
             61611          (iii) the price or a range of prices of the agency bonds to be sold, assigned, or
             61612      liquidated, which may be at, above, or below par, as the state treasurer determines in the
             61613      marketing plan;
             61614          (iv) the terms and conditions of agreements entered into by the state treasurer on behalf
             61615      of the state with financial and other institutions for financial advisory services, trustee services,
             61616      insurance, letters of credit, reimbursement agreements, tender agreements, put agreements,
             61617      repurchase agreements, and indexing and tender agent agreements to facilitate the marketing
             61618      plan or to secure or provide liquidity to support any agreement, obligation, or contract entered
             61619      into by the state treasurer on behalf of the state in connection with the sale, assignment, or
             61620      liquidation of the agency bonds and any repurchase, remarketing, or other liquidation of the
             61621      agency bonds and any insurance, repurchase, remarketing, tender, put, letter of credit, or
             61622      agreement, obligation, or contract entered in connection with them, including payment of fees,
             61623      charges, or other amounts coming due under agreements entered into with financial or other
             61624      institutions by the state treasurer, from the proceeds of any sale, assignment, or other liquidation
             61625      of agency bonds, and from any investment earnings on such proceeds, and no other state money
             61626      may be used for this purpose;
             61627          (v) the application of the proceeds received from the sale, assignment, or liquidation of
             61628      agency bonds, and any investment earnings on them; and
             61629          (vi) all other details relating to the sale, assignment, or liquidation of agency bonds and

             61630      any related, attached, or accompanying insurance, tender, put, repurchase, remarketing, letter of
             61631      credit, or other agreement, obligation, or contract deemed necessary or appropriate by the state
             61632      treasurer.
             61633          (c) The state treasurer, on behalf of the state, may enter into the agreements
             61634      contemplated in the marketing plan.
             61635          (2) (a) After the payment of, or provision for payment of, the fees, charges, or other
             61636      amounts pursuant to Subsection (1), the state treasurer shall deliver the proceeds of the sale,
             61637      assignment, or other liquidation of agency bonds under this section to the appropriate
             61638      authorizing agency to be applied as authorized by the law creating or authorizing the loan or
             61639      grant program of the authorizing agency.
             61640          (b) (i) The marketing plan may provide that if any agreement, obligation, or contract
             61641      entered into by the state treasurer on behalf of the state with respect to the sale, repurchase,
             61642      remarketing, tender, put, assignment, or other liquidation of the agency bonds remains
             61643      outstanding under the marketing plan, the proceeds, and investment earnings on them, may be
             61644      pledged, escrowed, held in trust, or otherwise held in reserve by the state treasurer to secure
             61645      these agreements, obligations, or contracts of the state treasurer entered into on behalf of the
             61646      state.
             61647          (ii) Any obligations of the state treasurer entered into on behalf of the state under
             61648      Subsection (2)(b)(i) shall be limited solely to those proceeds and the investment earnings on
             61649      them.
             61650          (c) No holder or beneficiary of any put, tender, repurchase, remarketing, or other
             61651      similar rights under such agreements, obligations, or contracts of the state treasurer entered into
             61652      on behalf of the state has any rights against the state, the state treasurer or any state agency, or
             61653      funds of the state, the state treasurer, or any state agency, other than those expressly set forth in
             61654      the agreement or contract embodying those rights, consistent with the marketing plan and the
             61655      limitation set forth in this Subsection (2).
             61656          (3) (a) (i) The state treasurer may establish more than one marketing plan under this
             61657      section.

             61658          (ii) Agency bonds may be combined in any combination and sold, pledged, assigned, or
             61659      otherwise liquidated in any amounts, at any time, and from time to time as provided in the
             61660      applicable marketing plan.
             61661          (b) The state treasurer may, by order, set forth the sale price, form, manner of
             61662      execution, payment, manner of sale, assignment, or other liquidation, and all details of
             61663      agreements or contracts entered into in connection with them, including the application of any
             61664      proceeds and the investment earnings on them, consistent with the marketing plan and this
             61665      section.
             61666          (c) The state treasurer shall make a verified return to the Division of Finance
             61667      immediately upon completion of each transaction of:
             61668          (i) the amount of agency bonds involved;
             61669          (ii) the amounts received in each transaction entered into under this section; and
             61670          (iii) a brief description of any pledge or other restriction on the proceeds of the
             61671      transaction or the investment earnings on the proceeds.
             61672          (4) The state treasurer may:
             61673          (a) create any funds necessary to carry out the purposes of this section;
             61674          (b) invest all money held in those funds in accordance with Title 51, Chapter 7, State
             61675      Money Management Act, and in accordance with any agreement of the state, pursuant to the
             61676      marketing plan, with respect to the investment and application of the money; and
             61677          (c) invest money held in the funds in obligations of any state, territory, or possession of
             61678      the United States, or of any of the political subdivisions of any state, territory, or possession of
             61679      the United States, or of the District of Columbia, described in Section 103, Internal Revenue
             61680      Code of 1986.
             61681          (5) The limitations contained in this section with respect to the liability of the state or its
             61682      agencies may not be construed to limit or alter the obligations of political subdivisions on the
             61683      bonds in the hands of the holders of them in any manner.
             61684          Section 1227. Section 63B-1b-401 , which is renumbered from Section 63-65-7 is
             61685      renumbered and amended to read:

             61686     
Part 4. Issuance of Bonds

             61687           [63-65-7].     63B-1b-401. Pledge of agency bonds to pay revenue bonds --
             61688      Contents of financing agreements -- Use of monies received by authorizing agencies.
             61689          (1) With the approval of the relevant authorizing agency, the State Bonding
             61690      Commission may pledge, assign, or otherwise transfer any agency bonds, any monies payable on
             61691      or with respect to them, any legally available monies or other security administered by an
             61692      authorizing agency, or any combination of bonds, monies, or other security to provide for the
             61693      payment of revenue bonds issued under Section [ 63-65-8 ] 63B-1b-402 and the payment of any
             61694      amounts due under agreements and contracts described in Subsection [ 63-65-8 ] 63B-1b-402 (9).
             61695          (2) (a) Before issuing revenue bonds under Section [ 63-65-8 ] 63B-1b-402 , the
             61696      commission shall enter into a financing agreement with the appropriate authorizing agency or
             61697      agencies.
             61698          (b) This agreement shall specify:
             61699          (i) any agency bonds, monies, or other security to be pledged by the commission to
             61700      provide for the payment of the revenue bonds;
             61701          (ii) the amount to be paid to the order of the authorizing agency or agencies for the
             61702      agency bonds, monies, or other security; and
             61703          (iii) other matters that the commission considers necessary or appropriate.
             61704          (3) The amounts received by each authorizing agency from the proceeds of the revenue
             61705      bonds, together with all amounts paid to the authorizing agencies pursuant to Subsection
             61706      [ 63-65-8 ] 63B-1b-402 (10), shall be applied by the authorizing agency as authorized by the law
             61707      creating or authorizing the loan or grant program of the authorizing agency.
             61708          Section 1228. Section 63B-1b-402 , which is renumbered from Section 63-65-8 is
             61709      renumbered and amended to read:
             61710           [63-65-8].     63B-1b-402. Commission may authorize revenue bonds -- Contents
             61711      of bond document -- Special and reserve funds -- Limitation on liability -- Restoration of
             61712      monies in reserve funds -- Payment of bonds and other technical requirements --
             61713      Refunding -- Report to Division of Finance.

             61714          (1) (a) In order to provide authorizing agencies with an alternative method of
             61715      liquidating agency bonds and, by doing so, providing authorizing agencies with additional funds
             61716      to further the purposes of authorizing agencies, the commission may authorize the issuance of
             61717      revenue bonds from time to time by the state.
             61718          (b) These revenue bonds shall be payable solely from a special fund established by the
             61719      state treasurer as provided in Subsection (4).
             61720          (c) Revenue bonds may be sold at public or private sale and may be issued in one or
             61721      more series.
             61722          (2) Revenue bonds may be authorized, issued, and sold by the commission on behalf of
             61723      the state at a time or times and in a manner set forth in a bond document that provides for:
             61724          (a) the terms and conditions of sale, including price, whether at, below or above face
             61725      value;
             61726          (b) interest rates, including a variable rate;
             61727          (c) authorized denomination;
             61728          (d) maturity dates;
             61729          (e) form;
             61730          (f) manner of execution;
             61731          (g) manner of authentication;
             61732          (h) place and medium of payment;
             61733          (i) redemption terms;
             61734          (j) authorized signatures of public officials; and
             61735          (k) other provisions and details considered necessary or appropriate.
             61736          (3) To the extent set forth in the resolution, the proceeds of revenue bonds may be used
             61737      for the purposes set forth in Subsection (1) and to:
             61738          (a) provide for any necessary or desirable reserve fund as provided for in Subsection
             61739      (5); and
             61740          (b) pay fees, charges, and other amounts related to the issuance and sale of the revenue
             61741      bonds.

             61742          (4) (a) As provided in the bond document, the principal of, premium, if any, and interest
             61743      on, any issue of revenue bonds is payable solely from and secured by one or more special funds
             61744      consisting of:
             61745          (i) the pledge and assignment of any agency bonds, including all amounts payable on or
             61746      with respect to them, and other monies and security, as provided for in an agreement entered
             61747      into under Subsection [ 63-65-7 ] 63B-1b-401 (2);
             61748          (ii) amounts on deposit in the reserve fund, if any, established under Subsection (5);
             61749          (iii) amounts available pursuant to any security device or credit enhancement device that
             61750      the commission authorizes for the purpose of improving the marketability of the revenue bonds;
             61751      and
             61752          (iv) other amounts available and pledged by the commission to secure payment of that
             61753      issue of revenue bonds.
             61754          (b) Owners of revenue bonds do not have recourse against the general funds or general
             61755      credit of the state or its political subdivisions or agencies, but this limitation does not limit or
             61756      alter the obligations of political subdivisions on agency bonds in any manner.
             61757          (c) Revenue bonds do not constitute nor give rise to a general obligation or liability of,
             61758      or constitute a charge or lien against, the general credit or taxing power of the state or its
             61759      political subdivisions or agencies, including any authorizing agency.
             61760          (d) Revenue bonds shall contain on their face a statement that:
             61761          (i) the revenue bonds are payable solely from the sources set forth in this Subsection (4)
             61762      and specified in the bond document with respect to the revenue bonds;
             61763          (ii) neither the state nor any political subdivision of the state is obligated to pay the
             61764      revenue bonds; and
             61765          (iii) neither the faith and credit nor the taxing power of the state or any of its political
             61766      subdivisions is pledged to the payment of principal or redemption price of, or premium, if any,
             61767      or interest on the revenue bonds.
             61768          (e) Revenue bonds do not constitute debt of the state within the meaning of Utah
             61769      Constitution Article XIII, Sec. 5 (3) or Article XIV, Sec. 1.

             61770          (5) (a) The commission may establish a reserve fund with respect to any issue of
             61771      revenue bonds.
             61772          (b) If a reserve fund is established, the bond document relating to that issue of revenue
             61773      bonds shall specify:
             61774          (i) the minimum amount that is required to be on deposit in the reserve fund;
             61775          (ii) the amount of sale proceeds from the sale of that issue of revenue bonds that shall
             61776      be deposited in the reserve fund; and
             61777          (iii) the manner in which any deficiency in the reserve fund shall be replenished.
             61778          (c) (i) On or before the first day of December of each year, the state treasurer shall
             61779      certify to the governor and the director of the Division of Finance the amount, if any, that may
             61780      be required to restore all reserve funds established to the minimum amount specified by the state
             61781      treasurer with respect to each reserve fund.
             61782          (ii) The governor may request an appropriation from the Legislature equal to the
             61783      certified amount in order to restore each reserve fund to the specified minimum amount.
             61784          (6) (a) (i) The commission may provide in the bond document that any signature of a
             61785      public official authorized to sign revenue bonds may be by the facsimile signature of that official
             61786      imprinted, engraved, stamped, or otherwise placed on the revenue bonds.
             61787          (ii) If all signatures of public officials on the revenue bonds are facsimile signatures, the
             61788      bond document shall provide for a manual authenticating signature on the revenue bonds by or
             61789      on behalf of a designated authenticating agent.
             61790          (iii) If an official ceases to hold office before delivery of the revenue bonds signed by
             61791      that official, the signature or facsimile signature of the official is valid and sufficient for all
             61792      purposes.
             61793          (b) A facsimile of the seal of the state may be imprinted, engraved, stamped, or
             61794      otherwise placed on the revenue bonds.
             61795          (7) (a) The commission may provide in the bond document for the replacement of lost,
             61796      destroyed, stolen, or mutilated revenue bonds or for the exchange of revenue bonds after
             61797      issuance for revenue bonds of smaller or larger denominations.

             61798          (b) Revenue bonds in changed denominations shall:
             61799          (i) be exchanged for the original revenue bonds in the aggregate principal amounts and
             61800      in a manner that prevents the duplication of interest; and
             61801          (ii) bear interest at the same rate, be of the same series, mature on the same date, and be
             61802      as nearly as practicable in the same form as the original revenue bonds.
             61803          (8) (a) (i) Revenue bonds may be registered as to both principal and interest or may be
             61804      in a book entry form under which the right to principal and interest may be transferred only
             61805      through a book entry.
             61806          (ii) The commission may provide for the services and payment for the services of one or
             61807      more financial institutions, other entities or persons, or nominees, within or outside the state,
             61808      for:
             61809          (A) authentication;
             61810          (B) registration;
             61811          (C) transfer, including record, bookkeeping, or book entry functions;
             61812          (D) exchange; and
             61813          (E) payment.
             61814          (b) The records of ownership, registration, transfer, and exchange of the revenue bonds,
             61815      and of persons to whom payment with respect to them is made, are classified as private or
             61816      protected as defined in [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access
             61817      and Management Act.
             61818          (c) The revenue bonds and any evidences of participation interests in the revenue bonds
             61819      may be issued, executed, authenticated, registered, transferred, exchanged, and otherwise made
             61820      to comply with Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the
             61821      Legislature relating to the registration of obligations enacted to meet the requirements of
             61822      Section 149 (a), Internal Revenue Code of 1986, or any comparable predecessor or successor
             61823      provision, and applicable regulations.
             61824          (9) (a) The commission may authorize the execution and delivery of whatever
             61825      agreements and contracts that the commission considers necessary and appropriate in

             61826      connection with the issuance of revenue bonds.
             61827          (b) These agreements and contracts may include agreements and contracts with
             61828      financial and other institutions for financial advisory services, trustee services, insurance, letters
             61829      of credit, reimbursement agreements, tender agreements, put agreements, repurchase
             61830      agreements, and indexing and tender agent agreements to:
             61831          (i) facilitate the sale of the revenue bonds; or
             61832          (ii) secure or provide liquidity to support any agreement, obligation, or contract entered
             61833      into by an authorized officer on behalf of the state in connection with:
             61834          (A) the issuance and sale of the revenue bonds;
             61835          (B) any repurchase, remarketing, or other pledge of the revenue bonds; and
             61836          (C) any insurance, repurchase, remarketing, tender, put, letter of credit, or agreement,
             61837      obligation, or contract entered into in connection with them, including payment of fees, charges,
             61838      or other amounts coming due under agreements entered into with financial or other institutions
             61839      on behalf of the state.
             61840          (10) When all revenue bonds of an issue have been paid, or provision for their payment
             61841      has been made, there shall be transferred to the appropriate authorizing agency or agencies, in
             61842      the amounts and in the manner that the commission considers fair and equitable, and to the
             61843      extent not required to secure payment of the revenue bonds and related fees, charges, and other
             61844      amounts:
             61845          (a) all amounts remaining on deposit in any reserve fund established with respect to the
             61846      issue of revenue bonds; and
             61847          (b) all other amounts and all agency bonds held by the commission and any trustee and
             61848      pledged to the payment of the revenue bonds.
             61849          (11) (a) The state treasurer or the commission may create any funds and accounts
             61850      necessary to carry out the purposes of this section.
             61851          (b) (i) The state treasurer shall administer and maintain those funds and accounts.
             61852          (ii) The state treasurer may invest all monies held in those funds and accounts in
             61853      accordance with Title 51, Chapter 7, State Money Management Act, and in accordance with the

             61854      bond document or any other agreement entered into on behalf of the state as authorized by the
             61855      bond document.
             61856          (iii) The commission may not approve the bond document or other agreement with
             61857      respect to the investment and application of these monies unless the state treasurer has
             61858      affirmatively approved any investment provisions contained in the bond document or other
             61859      agreement.
             61860          (c) All income from the monies invested in a fund or account created under this
             61861      Subsection (11) shall accrue to the benefit of the fund or account and shall be used for the
             61862      purpose for which the fund or account was established.
             61863          (12) (a) The commission may authorize the issuance of refunding revenue bonds of the
             61864      state in accordance with Title 11, Chapter 27, Utah Refunding Bond Act, for the purpose of
             61865      refunding any revenue bonds.
             61866          (b) The state is considered a "public body" and the commission its "governing body" for
             61867      purposes of that act.
             61868          (13) (a) Revenue bonds may not be issued under this section until an authorized official
             61869      finds and certifies that all conditions precedent to the issuance of the revenue bond have been
             61870      satisfied.
             61871          (b) A recital on any revenue bond of a finding and certification conclusively establishes
             61872      the completion and satisfaction of all conditions of this section.
             61873          (14) Revenue bonds, interest paid on revenue bonds, and any income from revenue
             61874      bonds is not taxable within this state for any purpose, except for the corporate franchise tax.
             61875          (15) (a) Revenue bonds are legal investments for all state trust funds, insurance
             61876      companies, banks, trust companies, and the State School Fund.
             61877          (b) Revenue bonds may also be used as collateral to secure legal obligations.
             61878          (16) Immediately upon the issuance of each issue of revenue bonds, an authorized
             61879      official shall make a verified return to the Division of Finance of:
             61880          (a) the aggregate principal amount of revenue bonds issued;
             61881          (b) the amount of proceeds of sale of revenue bonds received by the state;

             61882          (c) the amount paid to the authorizing agency or agencies for the agency bonds;
             61883          (d) the total amount of all fees and expenses relating to the issuance of the revenue
             61884      bonds;
             61885          (e) the amount of sale proceeds of the revenue bonds used to pay fees and expenses;
             61886      and
             61887          (f) the amount of sale proceeds of the revenue bonds deposited in the reserve fund
             61888      established with respect to the issue of revenue bonds, if any.
             61889          Section 1229. Section 63B-1b-501 , which is renumbered from Section 63-65-8.1 is
             61890      renumbered and amended to read:
             61891     
Part 5. Tax Status

             61892           [63-65-8.1].     63B-1b-501. Tax status -- Exemption.
             61893          The revenue bonds issued under this chapter, any interest paid on the revenue bonds,
             61894      and any income from the bonds is not taxable in Utah for any purpose, except for the corporate
             61895      franchise tax.
             61896          Section 1230. Section 63B-1b-601 , which is renumbered from Section 63-65-8.2 is
             61897      renumbered and amended to read:
             61898     
Part 6. Notice Requirements

             61899           [63-65-8.2].     63B-1b-601. Publication of resolution or notice -- Limitation on
             61900      actions to contest legality.
             61901          (1) The commission may either:
             61902          (a) publish once in a newspaper having general circulation in Utah any resolution
             61903      adopted by it; or
             61904          (b) in lieu of publishing the entire resolution, publish a notice of revenue bonds to be
             61905      issued, titled as such, containing:
             61906          (i) the purpose of the revenue bond issue;
             61907          (ii) the maximum principal amount that may be issued;
             61908          (iii) the maximum number of years over which the revenue bonds may mature;
             61909          (iv) the maximum interest rate that the revenue bonds may bear, if any;

             61910          (v) the maximum discount from par, expressed as a percentage of principal amount, at
             61911      which the revenue bonds may be sold; and
             61912          (vi) a statement that a copy of the resolution or other bond document may be examined
             61913      at the office of the state treasurer during regular business hours for at least 30 days after the
             61914      publication of the notice.
             61915          (2) For 30 days after the date of publication, any interested person may contest:
             61916          (a) the legality of the resolution or other bond document;
             61917          (b) any of the revenue bonds authorized under it; or
             61918          (c) any of the provisions made for the repayment of the revenue bonds.
             61919          (3) After 30 days, a person may not, for any cause, contest:
             61920          (a) the legality of the resolution or other bond document;
             61921          (b) any of the revenue bonds authorized under the resolution or other bond document;
             61922      or
             61923          (c) any of the provisions made for the security and repayment of the revenue bonds.
             61924          Section 1231. Section 63B-1b-701 , which is renumbered from Section 63-65-9 is
             61925      renumbered and amended to read:
             61926     
Part 7. Payment of Expenses

             61927           [63-65-9].     63B-1b-701. Payment of expenses.
             61928          (1) All expenses incurred by the state under this chapter may be paid:
             61929          (a) in the case of expenses incurred under Section [ 63-65-6 ] 63B-1b-302 , from the
             61930      proceeds of the liquidation of agency bonds; and
             61931          (b) in the case of expenses incurred under Section [ 63-65-8 ] 63B-1b-402 , from the
             61932      proceeds of sale of revenue bonds.
             61933          (2) (a) Any expenses incurred by the state under this chapter that are not paid from the
             61934      proceeds of the liquidation of agency bonds or the issuance of state revenue bonds shall be paid
             61935      from the revolving funds of the authorizing agencies.
             61936          (b) These expenses are not a charge to or an appropriation from the General Fund.
             61937          Section 1232. Section 63B-2-102 is amended to read:

             61938           63B-2-102. Maximum amount -- Projects authorized.
             61939          (1) The total amount of bonds issued under this part may not exceed $80,000,000.
             61940          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             61941      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             61942      Subsection (2).
             61943          (b) These costs may include the cost of acquiring land, interests in land, easements and
             61944      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             61945      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             61946      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             61947      covered by construction of the projects plus a period of six months after the end of the
             61948      construction period and all related engineering, architectural, and legal fees.
             61949          (c) For the division, proceeds shall be provided for the following:
             61950      CAPITAL IMPROVEMENTS
             61951      1    Alterations, Repairs, and Improvements
$8,413,900

             61952      TOTAL IMPROVEMENTS                
$8,413,900

             61953     
CAPITAL FACILITIES CONSTRUCTION

             61954                                               ESTIMATED
             61955                                               OPERATIONS
             61956                                                  AND
             61957      PROJECT        PROJECT                AMOUNT     MAINTENANCE
             61958      PRIORITY        DESCRIPTION            FUNDED        COSTS
             61959      1    Corrections - Northern Utah                 $2,729,700        $158,000
             61960          Community Corrections Center Phase II
             61961      2    University of Utah                    $10,200,000        $881,600
             61962          Marriot Library Phase II
             61963      3    Ogden Courts Building Phase II            $12,096,000        $340,000
             61964      4    Utah National Guard -                 $397,800         $70,500
             61965          Southeast Utah Armory Phase II

             61966      5    Southern Utah University                 $7,004,400        $427,000
             61967          Library Phase II
             61968      6    Utah Valley Special Events                $11,845,300        $536,900
             61969          Center Phase II
             61970      7    Salt Lake Community College             $1,300,000         $0
             61971          - Land
             61972      8    Tax Commission Building                $14,224,000        $812,000
             61973      9    Dixie College Business Building             $2,823,300        $187,800
             61974      10    Salt Lake Community College             $4,009,500        $257,600
             61975          South City 3rd Floor and Boiler
             61976      11    Public Education -                     $3,456,100        $124,800
             61977          Deaf and Blind Classrooms
             61978          TOTAL CONSTRUCTION                $70,086,100
             61979          TOTAL IMPROVEMENTS AND            $78,500,000
             61980              CONSTRUCTION
             61981          (d) For purposes of this section, operations and maintenance costs:
             61982          (i) are estimates only;
             61983          (ii) may include any operations and maintenance costs already funded in existing agency
             61984      budgets; and
             61985          (iii) are not commitments by this Legislature or future Legislatures to fund those
             61986      operations and maintenance costs.
             61987          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             61988      constitute a limitation on the amount that may be expended for any project.
             61989          (b) The board may revise these estimates and redistribute the amount estimated for a
             61990      project among the projects authorized.
             61991          (c) The commission, by resolution and in consultation with the board, may delete one or
             61992      more projects from this list if the inclusion of that project or those projects in the list could be
             61993      construed to violate state law or federal law or regulation.

             61994          (4) (a) The division may enter into agreements related to these projects before the
             61995      receipt of proceeds of bonds issued under this chapter.
             61996          (b) The division shall make those expenditures from unexpended and unencumbered
             61997      building funds already appropriated to the Capital Projects Fund.
             61998          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             61999      of bonds issued under this chapter.
             62000          (d) The commission may, by resolution, make any statement of intent relating to that
             62001      reimbursement that is necessary or desirable to comply with federal tax law.
             62002          (5) (a) For those projects for which only partial funding is provided in Subsection (2), it
             62003      is the intent of the Legislature that the balance necessary to complete the projects be addressed
             62004      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             62005          (b) For those phased projects, the division may enter into contracts for amounts not to
             62006      exceed the anticipated full project funding but may not allow work to be performed on those
             62007      contracts in excess of the funding already authorized by the Legislature.
             62008          (c) Those contracts shall contain a provision for termination of the contract for the
             62009      convenience of the state as required by Section [ 63-56-601 ] 63G-6-601 .
             62010          (d) It is also the intent of the Legislature that this authorization to the division does not
             62011      bind future Legislatures to fund projects initiated from this authorization.
             62012          Section 1233. Section 63B-2-105 is amended to read:
             62013           63B-2-105. Terms and conditions of sale -- Plan of financing -- Signatures --
             62014      Replacement -- Registration -- Federal rebate.
             62015          (1) In the issuance of bonds, the commission may determine by resolution:
             62016          (a) the manner of sale, including public or private sale;
             62017          (b) the terms and conditions of sale, including price, whether at, below, or above face
             62018      value;
             62019          (c) denominations;
             62020          (d) form;
             62021          (e) manner of execution;

             62022          (f) manner of authentication;
             62023          (g) place and medium of purchase;
             62024          (h) redemption terms; and
             62025          (i) other provisions and details it considers appropriate.
             62026          (2) The commission may by resolution adopt a plan of financing, which may include
             62027      terms and conditions of arrangements entered into by the commission on behalf of the state with
             62028      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             62029      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             62030      including payment from any legally available source of fees, charges, or other amounts coming
             62031      due under the agreements entered into by the commission.
             62032          (3) (a) Any signature of a public official authorized by resolution of the commission to
             62033      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             62034      otherwise placed on the bonds.
             62035          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             62036      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             62037      authentication agent.
             62038          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             62039      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             62040          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             62041      placed on the bonds.
             62042          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             62043      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             62044      or larger denominations.
             62045          (b) Bonds in changed denominations shall:
             62046          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             62047      manner that prevents the duplication of interest; and
             62048          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             62049      practicable in the form of the original bonds.

             62050          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             62051      entry form under which the right to principal and interest may be transferred only through a
             62052      book entry.
             62053          (b) The commission may provide for the services and payment for the services of one or
             62054      more financial institutions or other entities or persons, or nominees, within or outside the state,
             62055      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             62056      functions, exchange, and payment of the bonds.
             62057          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             62058      persons to whom payment with respect to the obligations is made, are private records as
             62059      provided in Section [ 63-2-302 ] 63G-2-302 or protected records as provided in Section
             62060      [ 63-2-304 ] 63G-2-305 .
             62061          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             62062      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             62063      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             62064      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             62065      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             62066          (6) The commission may:
             62067          (a) by resolution, provide for payment to the United States of whatever amounts are
             62068      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             62069      and
             62070          (b) enter into agreements with financial and other institutions and attorneys to provide
             62071      for:
             62072          (i) the calculation, holding, and payment of those amounts; and
             62073          (ii) payment from any legally available source of fees, charges, or other amounts coming
             62074      due under any agreements entered into by the commission.
             62075          Section 1234. Section 63B-2-205 is amended to read:
             62076           63B-2-205. Terms and conditions of sale -- Plan of financing -- Signatures --
             62077      Replacement -- Registration -- Federal rebate.

             62078          (1) In the issuance of bonds, the commission may determine by resolution:
             62079          (a) the manner of sale, including public or private sale;
             62080          (b) the terms and conditions of sale, including price, whether at, below, or above face
             62081      value;
             62082          (c) denominations;
             62083          (d) form;
             62084          (e) manner of execution;
             62085          (f) manner of authentication;
             62086          (g) place and medium of purchase;
             62087          (h) redemption terms; and
             62088          (i) other provisions and details it considers appropriate.
             62089          (2) The commission may by resolution adopt a plan of financing which may include
             62090      terms and conditions of arrangements entered into by the commission on behalf of the state with
             62091      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             62092      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             62093      including payment from any legally available source of fees, charges, or other amounts coming
             62094      due under the agreements entered into by the commission.
             62095          (3) (a) Any signature of a public official authorized by resolution of the commission to
             62096      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             62097      otherwise placed on the bonds.
             62098          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             62099      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             62100      authentication agent.
             62101          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             62102      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             62103          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             62104      placed on the bonds.
             62105          (4) (a) The commission may enact resolutions providing for the replacement of lost,

             62106      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             62107      or larger denominations.
             62108          (b) Bonds in changed denominations shall:
             62109          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             62110      manner that prevents the duplication of interest; and
             62111          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             62112      practicable in the form of the original bonds.
             62113          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             62114      entry form under which the right to principal and interest may be transferred only through a
             62115      book entry.
             62116          (b) The commission may provide for the services and payment for the services of one or
             62117      more financial institutions or other entities or persons, or nominees, within or outside the state,
             62118      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             62119      functions, exchange, and payment of the bonds.
             62120          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             62121      persons to whom payment with respect to the obligations is made, are private records as
             62122      provided in Section [ 63-2-302 ] 63G-2-302 , or protected records as provided in Section
             62123      [ 63-2-304 ] 63G-2-305 .
             62124          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             62125      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             62126      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             62127      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             62128      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             62129          (6) The commission may:
             62130          (a) by resolution, provide for payment to the United States of whatever amounts are
             62131      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             62132      and
             62133          (b) enter into agreements with financial and other institutions and attorneys to provide

             62134      for:
             62135          (i) the calculation, holding, and payment of those amounts; and
             62136          (ii) payment from any legally available source of fees, charges, or other amounts coming
             62137      due under any agreements entered into by the commission.
             62138          Section 1235. Section 63B-2-301 is amended to read:
             62139           63B-2-301. Legislative intent -- Additional projects.
             62140          It is the intent of the Legislature that:
             62141          (1) The Department of Employment Security use monies in the special administrative
             62142      fund to plan, design, and construct a Davis County facility under the supervision of the director
             62143      of the Division of Facilities Construction and Management unless supervisory authority is
             62144      delegated by him as authorized by Section 63A-5-206 .
             62145          (2) The University of Utah may use donated funds to plan, design, and construct the
             62146      Nora Eccles Harrison addition under the supervision of the director of the Division of Facilities
             62147      Construction and Management unless supervisory authority is delegated by him as authorized by
             62148      Section 63A-5-206 .
             62149          (3) The University of Utah may use hospital funds to plan, design, and construct the
             62150      West Patient Services Building under the supervision of the director of the Division of Facilities
             62151      Construction and Management unless supervisory authority is delegated by him as authorized by
             62152      Section 63A-5-206 .
             62153          (4) The University of Utah may use federal funds to plan, design, and construct the
             62154      Computational Science Building under the supervision of the director of the Division of
             62155      Facilities Construction and Management unless supervisory authority is delegated by him as
             62156      authorized by Section 63A-5-206 .
             62157          (5) The Board of Regents may issue revenue bonds to provide:
             62158          (a) $6,700,000 to plan, design, and construct single student housing at Utah State
             62159      University under the supervision of the director of the Division of Facilities Construction and
             62160      Management unless supervisory authority is delegated by him as authorized by Section
             62161      63A-5-206 ; and

             62162          (b) additional monies necessary to:
             62163          (i) pay costs incident to the issuance and sale of the bonds;
             62164          (ii) pay interest on the bonds that accrues during construction and acquisition of the
             62165      project and for up to one year after construction is completed; and
             62166          (iii) fund any reserve requirements for the bonds.
             62167          (6) Utah State University may use federal funds to plan, design, and construct the
             62168      Natural Resources Lab addition under the supervision of the director of the Division of
             62169      Facilities Construction and Management unless supervisory authority is delegated by him as
             62170      authorized by Section 63A-5-206 .
             62171          (7) Utah State University may use funds derived from property sales to plan, design,
             62172      and construct emergency relocation facilities for the Farmington Botanical Gardens under the
             62173      supervision of the director of the Division of Facilities Construction and Management unless
             62174      supervisory authority is delegated by him as authorized by Section 63A-5-206 .
             62175          (8) Utah State University may use institutional funds to plan, design, and construct an
             62176      institutional residence for the president under the supervision of the director of the Division of
             62177      Facilities Construction and Management unless supervisory authority is delegated by him as
             62178      authorized by Section 63A-5-206 .
             62179          (9) Weber State University may use discretionary funds to construct a remodel and
             62180      expansion of the stores building and mail service facilities under the supervision of the director
             62181      of the Division of Facilities Construction and Management unless supervisory authority is
             62182      delegated by him as authorized by Section 63A-5-206 .
             62183          (10) Weber State University may use fees and auxiliary revenue to plan, design, and
             62184      construct a remodel and expansion of the Shepherd Student Union Building under the
             62185      supervision of the director of the Division of Facilities Construction and Management unless
             62186      supervisory authority is delegated by him as authorized by Section 63A-5-206 .
             62187          (11) Southern Utah University may use donated funds to plan, design, and construct an
             62188      alumni house under the supervision of the director of the Division of Facilities Construction and
             62189      Management unless supervisory authority is delegated by him as authorized by Section

             62190      63A-5-206 .
             62191          (12) The College of Eastern Utah may use auxiliary revenues and other fees to:
             62192          (a) make lease or other payments;
             62193          (b) redeem revenue bonds or repay loans issued on behalf of the college; and
             62194          (c) plan, design, and construct a 200 person residence hall under the supervision of the
             62195      director of the Division of Facilities Construction and Management unless supervisory authority
             62196      is delegated by him as authorized by Section 63A-5-206 .
             62197          (13) The Sevier Valley Applied Technology Center may use private and Community
             62198      Impact Board funds, if approved, to plan, design, and construct a performing arts/multi-use
             62199      facility under the supervision of the director of the Division of Facilities Construction and
             62200      Management unless supervisory authority is delegated by him as authorized by Section
             62201      63A-5-206 .
             62202          (14) Ogden City and Weber County may have offices and related space for their
             62203      attorneys included in the Ogden Courts building if the city and county are able to provide
             62204      upfront funding to cover all costs associated with the design and construction of that space. In
             62205      addition, the city and county shall cover their proportionate share of all operations and
             62206      maintenance costs of their facility, including future major repairs to the building.
             62207          (15) If the Legislature authorizes the Division of Facilities Construction and
             62208      Management to enter into a lease purchase agreement for the Department of Human Services
             62209      facility at 1385 South State Street in Salt Lake City or for the State Board of Education facility
             62210      and adjacent space in Salt Lake City, or for both of those facilities, the State Building
             62211      Ownership Authority, at the reasonable rates and amounts it may determine, and with technical
             62212      assistance from the state treasurer, the director of the Division of Finance, and the director of
             62213      the Governor's Office of Planning and Budget, may seek out the most cost effective lease
             62214      purchase plans available to the state and may, pursuant to [Title 63, Chapter 9a, State Building
             62215      Ownership Act] Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act,
             62216      certificate out interests in, or obligations of the authority pertaining to:
             62217          (a) the lease purchase obligation; or

             62218          (b) lease rental payments under the lease purchase obligation.
             62219          (16) Salt Lake Community College may use donated funds to plan, design, and
             62220      construct an amphitheater under the supervision of the director of the Division of Facilities
             62221      Construction and Management unless supervisory authority is delegated by him as authorized by
             62222      Section 63A-5-206 .
             62223          (17) For the Tax Commission building, that:
             62224          (a) All costs associated with the construction and furnishing of the Tax Commission
             62225      building that are incurred before the issuance of the 1993 general obligation bonds be
             62226      reimbursed by bond proceeds.
             62227          (b) The maximum amount of cost that may be reimbursed from the 1993 general
             62228      obligation bond proceeds for the Tax Commission building and furnishings may not exceed
             62229      $14,230,000.
             62230          (c) This intent statement for Subsection (17) constitutes a declaration of official intent
             62231      under Section 1.103-18 of the U.S. Treasury Regulations.
             62232          Section 1236. Section 63B-3-102 is amended to read:
             62233           63B-3-102. Maximum amount -- Projects authorized.
             62234          (1) The total amount of bonds issued under this part may not exceed $64,600,000.
             62235          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             62236      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             62237      Subsection (2).
             62238          (b) These costs may include the cost of acquiring land, interests in land, easements and
             62239      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             62240      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             62241      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             62242      covered by construction of the projects plus a period of six months after the end of the
             62243      construction period and all related engineering, architectural, and legal fees.
             62244          (c) For the division, proceeds shall be provided for the following:
             62245     
CAPITAL IMPROVEMENTS

             62246      1    Alterations, Repairs, and Improvements
$5,000,000        

             62247      TOTAL IMPROVEMENTS
$5,000,000

             62248     
CAPITAL AND ECONOMIC DEVELOPMENT

             62249                                               ESTIMATED
             62250                                               OPERATIONS
             62251                                                  AND
             62252      PROJECT    PROJECT                    AMOUNT     MAINTENANCE
             62253      PRIORITY    DESCRIPTION                FUNDED        COSTS
             62254          1    University of Utah                $13,811,500         $881,600
             62255              Marriott Library Phase III (Final)
             62256          2    Bridgerland Applied Technology Center    $2,400,000            $0
             62257              Utah State University Space
             62258          3    Weber State University -            $2,332,100         $9,600
             62259              Heat Plant
             62260          4    Department of Human Services        $4,180,000         $400,000
             62261              - Division of Youth Corrections renamed
             62262              in 2003 to the Division of Juvenile
             62263              Justice Services
             62264          5    Snow College -                $3,885,100         $224,500
             62265              Administrative Services/Student Center
             62266          6    Ogden Weber Applied             $750,000            $0
             62267              Technology Center -
             62268              Metal Trades Building Design and
             62269              Equipment Purchase
             62270          7    Department of Corrections            $1,237,100         $72,000
             62271              B-Block Remodel
             62272          8    Utah State University -             $550,000            $0
             62273              Old Main Phase III Design

             62274          9    Department of Corrections - 144 bed        $6,700,000         $168,800
             62275              Uintah Expansion
             62276          10    Southern Utah University            $5,630,400         $314,200
             62277              Administrative Services/Student Center
             62278          11    Anasazi Museum                 $760,200         $8,500
             62279          12    Hill Air Force Base -                $9,500,000            $0
             62280              Easements Purchase
             62281          13    Signetics Building Remodel            $2,000,000            $0
             62282          14    Antelope Island Visitors Center         $750,000         $30,000
             62283          15    State Fair Park -                 $150,000            $0
             62284              Master Study
             62285          16    Utah National Guard - Draper Land         $380,800            $0
             62286          17    Davis Applied Technology Center -         $325,000            $0
             62287              Design
             62288          18    Palisade State Park - Land             $800,000            $0
             62289              and Park Development
             62290          19    Department of Human Services         $80,000            $0
             62291              - Cedar City Land
             62292          20    Department of Human Services         $163,400            $0
             62293              - Clearfield Land
             62294          21    Electronic technology,            $2,500,000            $0
             62295              equipment, and hardware
             62296      TOTAL CAPITAL AND ECONOMIC DEVELOPMENT        $58,885,600
             62297      TOTAL IMPROVEMENTS AND
             62298      CAPITAL AND ECONOMIC DEVELOPMENT            $63,885,600
             62299          (d) For purposes of this section, operations and maintenance costs:
             62300          (i) are estimates only;
             62301          (ii) may include any operations and maintenance costs already funded in existing agency

             62302      budgets; and
             62303          (iii) are not commitments by this Legislature or future Legislatures to fund those
             62304      operations and maintenance costs.
             62305          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             62306      constitute a limitation on the amount that may be expended for any project.
             62307          (b) The board may revise these estimates and redistribute the amount estimated for a
             62308      project among the projects authorized.
             62309          (c) The commission, by resolution and in consultation with the board, may delete one or
             62310      more projects from this list if the inclusion of that project or those projects in the list could be
             62311      construed to violate state law or federal law or regulation.
             62312          (4) (a) The division may enter into agreements related to these projects before the
             62313      receipt of proceeds of bonds issued under this chapter.
             62314          (b) The division shall make those expenditures from unexpended and unencumbered
             62315      building funds already appropriated to the Capital Projects Fund.
             62316          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             62317      of bonds issued under this chapter.
             62318          (d) The commission may, by resolution, make any statement of intent relating to that
             62319      reimbursement that is necessary or desirable to comply with federal tax law.
             62320          (5) (a) For those projects for which only partial funding is provided in Subsection (2), it
             62321      is the intent of the Legislature that the balance necessary to complete the projects be addressed
             62322      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             62323          (b) For those phased projects, the division may enter into contracts for amounts not to
             62324      exceed the anticipated full project funding but may not allow work to be performed on those
             62325      contracts in excess of the funding already authorized by the Legislature.
             62326          (c) Those contracts shall contain a provision for termination of the contract for the
             62327      convenience of the state as required by Section [ 63-56-601 ] 63G-6-601 .
             62328          (d) It is also the intent of the Legislature that this authorization to the division does not
             62329      bind future Legislatures to fund projects initiated from this authorization.

             62330          Section 1237. Section 63B-3-105 is amended to read:
             62331           63B-3-105. Terms and conditions of sale -- Plan of financing -- Signatures --
             62332      Replacement -- Registration -- Federal rebate.
             62333          (1) In the issuance of bonds, the commission may determine by resolution:
             62334          (a) the manner of sale, including public or private sale;
             62335          (b) the terms and conditions of sale, including price, whether at, below, or above face
             62336      value;
             62337          (c) denominations;
             62338          (d) form;
             62339          (e) manner of execution;
             62340          (f) manner of authentication;
             62341          (g) place and medium of purchase;
             62342          (h) redemption terms; and
             62343          (i) other provisions and details it considers appropriate.
             62344          (2) The commission may by resolution adopt a plan of financing, which may include
             62345      terms and conditions of arrangements entered into by the commission on behalf of the state with
             62346      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             62347      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             62348      including payment from any legally available source of fees, charges, or other amounts coming
             62349      due under the agreements entered into by the commission.
             62350          (3) (a) Any signature of a public official authorized by resolution of the commission to
             62351      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             62352      otherwise placed on the bonds.
             62353          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             62354      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             62355      authentication agent.
             62356          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             62357      the signature or facsimile signature of the official is nevertheless valid for all purposes.

             62358          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             62359      placed on the bonds.
             62360          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             62361      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             62362      or larger denominations.
             62363          (b) Bonds in changed denominations shall:
             62364          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             62365      manner that prevents the duplication of interest; and
             62366          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             62367      practicable in the form of the original bonds.
             62368          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             62369      entry form under which the right to principal and interest may be transferred only through a
             62370      book entry.
             62371          (b) The commission may provide for the services and payment for the services of one or
             62372      more financial institutions or other entities or persons, or nominees, within or outside the state,
             62373      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             62374      functions, exchange, and payment of the bonds.
             62375          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             62376      persons to whom payment with respect to the obligations is made, are private records as
             62377      provided in Section [ 63-2-302 ] 63G-2-302 or protected records as provided in Section
             62378      [ 63-2-304 ] 63G-2-305 .
             62379          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             62380      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             62381      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             62382      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             62383      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             62384          (6) The commission may:
             62385          (a) by resolution, provide for payment to the United States of whatever amounts are

             62386      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             62387      and
             62388          (b) enter into agreements with financial and other institutions and attorneys to provide
             62389      for:
             62390          (i) the calculation, holding, and payment of those amounts; and
             62391          (ii) payment from any legally available source of fees, charges, or other amounts coming
             62392      due under any agreements entered into by the commission.
             62393          Section 1238. Section 63B-3-205 is amended to read:
             62394           63B-3-205. Terms and conditions of sale -- Plan of financing -- Signatures --
             62395      Replacement -- Registration -- Federal rebate.
             62396          (1) In the issuance of bonds, the commission may determine by resolution:
             62397          (a) the manner of sale, including public or private sale;
             62398          (b) the terms and conditions of sale, including price, whether at, below, or above face
             62399      value;
             62400          (c) denominations;
             62401          (d) form;
             62402          (e) manner of execution;
             62403          (f) manner of authentication;
             62404          (g) place and medium of purchase;
             62405          (h) redemption terms; and
             62406          (i) other provisions and details it considers appropriate.
             62407          (2) The commission may by resolution adopt a plan of financing which may include
             62408      terms and conditions of arrangements entered into by the commission on behalf of the state with
             62409      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             62410      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             62411      including payment from any legally available source of fees, charges, or other amounts coming
             62412      due under the agreements entered into by the commission.
             62413          (3) (a) Any signature of a public official authorized by resolution of the commission to

             62414      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             62415      otherwise placed on the bonds.
             62416          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             62417      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             62418      authentication agent.
             62419          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             62420      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             62421          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             62422      placed on the bonds.
             62423          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             62424      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             62425      or larger denominations.
             62426          (b) Bonds in changed denominations shall:
             62427          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             62428      manner that prevents the duplication of interest; and
             62429          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             62430      practicable in the form of the original bonds.
             62431          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             62432      entry form under which the right to principal and interest may be transferred only through a
             62433      book entry.
             62434          (b) The commission may provide for the services and payment for the services of one or
             62435      more financial institutions or other entities or persons, or nominees, within or outside the state,
             62436      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             62437      functions, exchange, and payment of the bonds.
             62438          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             62439      persons to whom payment with respect to the obligations is made, are private records as
             62440      provided in Section [ 63-2-302 ] 63G-2-302 , or protected records as provided in Section
             62441      [ 63-2-304 ] 63G-2-305 .

             62442          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             62443      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             62444      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             62445      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             62446      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             62447          (6) The commission may:
             62448          (a) by resolution, provide for payment to the United States of whatever amounts are
             62449      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             62450      and
             62451          (b) enter into agreements with financial and other institutions and attorneys to provide
             62452      for:
             62453          (i) the calculation, holding, and payment of those amounts; and
             62454          (ii) payment from any legally available source of fees, charges, or other amounts coming
             62455      due under any agreements entered into by the commission.
             62456          Section 1239. Section 63B-3-301 is amended to read:
             62457           63B-3-301. Legislative intent -- Additional projects.
             62458          (1) It is the intent of the Legislature that, for any lease purchase agreement that the
             62459      Legislature may authorize the Division of Facilities Construction and Management to enter into
             62460      during its 1994 Annual General Session, the State Building Ownership Authority, at the
             62461      reasonable rates and amounts it may determine, and with technical assistance from the state
             62462      treasurer, the director of the Division of Finance, and the director of the Governor's Office of
             62463      Planning and Budget, may seek out the most cost effective and prudent lease purchase plans
             62464      available to the state and may, pursuant to [Title 63, Chapter 9a, State Building Ownership Act]
             62465      Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act, certificate out interests
             62466      in, or obligations of the authority pertaining to:
             62467          (a) the lease purchase obligation; or
             62468          (b) lease rental payments under the lease purchase obligation.
             62469          (2) It is the intent of the Legislature that the Department of Transportation dispose of

             62470      surplus real properties and use the proceeds from those properties to acquire or construct
             62471      through the Division of Facilities Construction and Management a new District Two Complex.
             62472          (3) It is the intent of the Legislature that the State Building Board allocate funds from
             62473      the Capital Improvement appropriation and donations to cover costs associated with the
             62474      upgrade of the Governor's Residence that go beyond the restoration costs which can be covered
             62475      by insurance proceeds.
             62476          (4) (a) It is the intent of the Legislature to authorize the State Building Ownership
             62477      Authority under authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B,
             62478      Chapter 1, Part 3, State Building Ownership Authority Act, to issue or execute obligations or
             62479      enter into or arrange for a lease purchase agreement in which participation interests may be
             62480      created, to provide up to $10,600,000 for the construction of a Natural Resources Building in
             62481      Salt Lake City, together with additional amounts necessary to:
             62482          (i) pay costs of issuance;
             62483          (ii) pay capitalized interest; and
             62484          (iii) fund any debt service reserve requirements.
             62485          (b) It is the intent of the Legislature that the authority seek out the most cost effective
             62486      and prudent lease purchase plan available with technical assistance from the state treasurer, the
             62487      director of the Division of Finance, and the director of the Governor's Office of Planning and
             62488      Budget.
             62489          (c) It is the intent of the Legislature that the operating budget for the Department of
             62490      Natural Resources not be increased to fund these lease payments.
             62491          (5) (a) It is the intent of the Legislature to authorize the State Building Ownership
             62492      Authority under authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B,
             62493      Chapter 1, Part 3, State Building Ownership Authority Act, to issue or execute obligations or
             62494      enter into or arrange for a lease purchase agreement in which participation interests may be
             62495      created, to provide up to $8,300,000 for the acquisition of the office buildings currently
             62496      occupied by the Department of Environmental Quality and approximately 19 acres of additional
             62497      vacant land at the Airport East Business Park in Salt Lake City, together with additional

             62498      amounts necessary to:
             62499          (i) pay costs of issuance;
             62500          (ii) pay capitalized interest; and
             62501          (iii) fund any debt service reserve requirements.
             62502          (b) It is the intent of the Legislature that the authority seek out the most cost effective
             62503      and prudent lease purchase plan available with technical assistance from the state treasurer, the
             62504      director of the Division of Finance, and the director of the Governor's Office of Planning and
             62505      Budget.
             62506          (6) (a) It is the intent of the Legislature to authorize the State Building Ownership
             62507      Authority under authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B,
             62508      Chapter 1, Part 3, State Building Ownership Authority Act, to issue or execute obligations or
             62509      enter into or arrange for a lease purchase agreement in which participation interests may be
             62510      created, to provide up to $9,000,000 for the acquisition or construction of up to two field
             62511      offices for the Department of Human Services in the southwestern portion of Salt Lake County,
             62512      together with additional amounts necessary to:
             62513          (i) pay costs of issuance;
             62514          (ii) pay capitalized interest; and
             62515          (iii) fund any debt service reserve requirements.
             62516          (b) It is the intent of the Legislature that the authority seek out the most cost effective
             62517      and prudent lease purchase plan available with technical assistance from the state treasurer, the
             62518      director of the Division of Finance, and the director of the Governor's Office of Planning and
             62519      Budget.
             62520          (7) (a) It is the intent of the Legislature to authorize the State Building Ownership
             62521      Authority under authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B,
             62522      Chapter 1, Part 3, State Building Ownership Authority Act, to issue or execute obligations or
             62523      enter into or arrange for lease purchase agreements in which participation interests may be
             62524      created, to provide up to $5,000,000 for the acquisition or construction of up to 13 stores for
             62525      the Department of Alcoholic Beverage Control, together with additional amounts necessary to:

             62526          (i) pay costs of issuance;
             62527          (ii) pay capitalized interest; and
             62528          (iii) fund any debt service reserve requirements.
             62529          (b) It is the intent of the Legislature that the authority seek out the most cost effective
             62530      and prudent lease purchase plan available with technical assistance from the state treasurer, the
             62531      director of the Division of Finance, and the director of the Governor's Office of Planning and
             62532      Budget.
             62533          (c) It is the intent of the Legislature that the operating budget for the Department of
             62534      Alcoholic Beverage Control not be increased to fund these lease payments.
             62535          (8) (a) It is the intent of the Legislature to authorize the State Building Ownership
             62536      Authority under authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B,
             62537      Chapter 1, Part 3, State Building Ownership Authority Act, to issue or execute obligations or
             62538      enter into or arrange for a lease purchase agreement in which participation interests may be
             62539      created, to provide up to $6,800,000 for the construction of a Prerelease and Parole Center for
             62540      the Department of Corrections, containing a minimum of 300 beds, together with additional
             62541      amounts necessary to:
             62542          (i) pay costs of issuance;
             62543          (ii) pay capitalized interest; and
             62544          (iii) fund any debt service reserve requirements.
             62545          (b) It is the intent of the Legislature that the authority seek out the most cost effective
             62546      and prudent lease purchase plan available with technical assistance from the state treasurer, the
             62547      director of the Division of Finance, and the director of the Governor's Office of Planning and
             62548      Budget.
             62549          (9) If S.B. 275, 1994 General Session, which authorizes funding for a Courts Complex
             62550      in Salt Lake City, becomes law, it is the intent of the Legislature that:
             62551          (a) the Legislative Management Committee, the Interim Appropriation Subcommittees
             62552      for General Government and Capital Facilities and Executive Offices, Courts, and Corrections,
             62553      the Office of the Legislative Fiscal Analyst, the Governor's Office of Planning and Budget, and

             62554      the State Building Board participate in a review of the proposed facility design for the Courts
             62555      Complex no later than December 1994; and
             62556          (b) although this review will not affect the funding authorization issued by the 1994
             62557      Legislature, it is expected that Division of Facilities Construction and Management will give
             62558      proper attention to concerns raised in these reviews and make appropriate design changes
             62559      pursuant to the review.
             62560          (10) It is the intent of the Legislature that:
             62561          (a) the Division of Facilities Construction and Management, in cooperation with the
             62562      Division of Youth Corrections renamed in 2003 to the Division of Juvenile Justice Services,
             62563      develop a flexible use prototype facility for the Division of Youth Corrections renamed in 2003
             62564      to the Division of Juvenile Justice Services;
             62565          (b) the development process use existing prototype proposals unless it can be
             62566      quantifiably demonstrated that the proposals cannot be used;
             62567          (c) the facility is designed so that with minor modifications, it can accommodate
             62568      detention, observation and assessment, transition, and secure programs as needed at specific
             62569      geographical locations;
             62570          (d) (i) funding as provided in the fiscal year 1995 bond authorization for the Division of
             62571      Youth Corrections renamed in 2003 to the Division of Juvenile Justice Services is used to
             62572      design and construct one facility and design the other;
             62573          (ii) the Division of Youth Corrections renamed in 2003 to the Division of Juvenile
             62574      Justice Services shall:
             62575          (A) determine the location for the facility for which design and construction are fully
             62576      funded; and
             62577          (B) in conjunction with the Division of Facilities Construction and Management,
             62578      determine the best methodology for design and construction of the fully funded facility;
             62579          (e) the Division of Facilities Construction and Management submit the prototype as
             62580      soon as possible to the Capital Facilities and Administrative Services Appropriation
             62581      Subcommittee and Executive Offices, Criminal Justice, and Legislature Appropriation

             62582      Subcommittee for review;
             62583          (f) the Division of Facilities Construction and Management issue a Request for Proposal
             62584      for one of the facilities, with that facility designed and constructed entirely by the winning firm;
             62585          (g) the other facility be designed and constructed under the existing Division of
             62586      Facilities Construction and Management process;
             62587          (h) that both facilities follow the program needs and specifications as identified by
             62588      Division of Facilities Construction and Management and the Division of Youth Corrections
             62589      renamed in 2003 to the Division of Juvenile Justice Services in the prototype; and
             62590          (i) the fully funded facility should be ready for occupancy by September 1, 1995.
             62591          (11) It is the intent of the Legislature that the fiscal year 1995 funding for the State Fair
             62592      Park Master Study be used by the Division of Facilities Construction and Management to
             62593      develop a master plan for the State Fair Park that:
             62594          (a) identifies capital facilities needs, capital improvement needs, building configuration,
             62595      and other long term needs and uses of the State Fair Park and its buildings; and
             62596          (b) establishes priorities for development, estimated costs, and projected timetables.
             62597          (12) It is the intent of the Legislature that:
             62598          (a) the Division of Facilities Construction and Management, in cooperation with the
             62599      Division of Parks and Recreation and surrounding counties, develop a master plan and general
             62600      program for the phased development of Antelope Island;
             62601          (b) the master plan:
             62602          (i) establish priorities for development;
             62603          (ii) include estimated costs and projected time tables; and
             62604          (iii) include recommendations for funding methods and the allocation of responsibilities
             62605      between the parties; and
             62606          (c) the results of the effort be reported to the Natural Resources Appropriations
             62607      Subcommittee and Capital Facilities and Administrative Services Appropriation Subcommittee.
             62608          (13) It is the intent of the Legislature to authorize the University of Utah to use:
             62609          (a) bond reserves to plan, design, and construct the Kingsbury Hall renovation under

             62610      the supervision of the director of the Division of Facilities Construction and Management unless
             62611      supervisory authority is delegated by the director; and
             62612          (b) donated and other nonappropriated funds to plan, design, and construct the Biology
             62613      Research Building under the supervision of the director of the Division of Facilities
             62614      Construction and Management unless supervisory authority is delegated by the director.
             62615          (14) It is the intent of the Legislature to authorize Utah State University to use:
             62616          (a) federal and other funds to plan, design, and construct the Bee Lab under the
             62617      supervision of the director of the Division of Facilities Construction and Management unless
             62618      supervisory authority is delegated by the director;
             62619          (b) donated and other nonappropriated funds to plan, design, and construct an Athletic
             62620      Facility addition and renovation under the supervision of the director of the Division of Facilities
             62621      Construction and Management unless supervisory authority is delegated by the director;
             62622          (c) donated and other nonappropriated funds to plan, design, and construct a renovation
             62623      to the Nutrition and Food Science Building under the supervision of the director of the Division
             62624      of Facilities Construction and Management unless supervisory authority is delegated by the
             62625      director; and
             62626          (d) federal and private funds to plan, design, and construct the Millville Research
             62627      Facility under the supervision of the director of the Division of Facilities Construction and
             62628      Management unless supervisory authority is delegated by the director.
             62629          (15) It is the intent of the Legislature to authorize Salt Lake Community College to use:
             62630          (a) institutional funds to plan, design, and construct a remodel to the Auto Trades
             62631      Office and Learning Center under the supervision of the director of the Division of Facilities
             62632      Construction and Management unless supervisory authority is delegated by the director;
             62633          (b) institutional funds to plan, design, and construct the relocation and expansion of a
             62634      temporary maintenance compound under the supervision of the director of the Division of
             62635      Facilities Construction and Management unless supervisory authority is delegated by the
             62636      director; and
             62637          (c) institutional funds to plan, design, and construct the Alder Amphitheater under the

             62638      supervision of the director of the Division of Facilities Construction and Management unless
             62639      supervisory authority is delegated by the director.
             62640          (16) It is the intent of the Legislature to authorize Southern Utah University to use:
             62641          (a) federal funds to plan, design, and construct a Community Services Building under
             62642      the supervision of the director of the Division of Facilities Construction and Management unless
             62643      supervisory authority is delegated by the director; and
             62644          (b) donated and other nonappropriated funds to plan, design, and construct a stadium
             62645      expansion under the supervision of the director of the Division of Facilities Construction and
             62646      Management unless supervisory authority is delegated by the director.
             62647          (17) It is the intent of the Legislature to authorize the Department of Corrections to use
             62648      donated funds to plan, design, and construct a Prison Chapel at the Central Utah Correctional
             62649      Facility in Gunnison under the supervision of the director of the Division of Facilities
             62650      Construction and Management unless supervisory authority is delegated by the director.
             62651          (18) If the Utah National Guard does not relocate in the Signetics Building, it is the
             62652      intent of the Legislature to authorize the Guard to use federal funds and funds from Provo City
             62653      to plan and design an Armory in Provo, Utah, under the supervision of the director of the
             62654      Division of Facilities Construction and Management unless supervisory authority is delegated by
             62655      the director.
             62656          (19) It is the intent of the Legislature that the Utah Department of Transportation use
             62657      $250,000 of the fiscal year 1995 highway appropriation to fund an environmental study in
             62658      Ogden, Utah of the 2600 North Corridor between Washington Boulevard and I-15.
             62659          (20) It is the intent of the Legislature that the Ogden-Weber Applied Technology
             62660      Center use the monies appropriated for fiscal year 1995 to design the Metal Trades Building and
             62661      purchase equipment for use in that building that could be used in metal trades or other programs
             62662      in other Applied Technology Centers.
             62663          (21) It is the intent of the Legislature that the Bridgerland Applied Technology Center
             62664      and the Ogden-Weber Applied Technology Center projects as designed in fiscal year 1995 be
             62665      considered as the highest priority projects for construction funding in fiscal year 1996.

             62666          (22) It is the intent of the Legislature that:
             62667          (a) the Division of Facilities Construction and Management complete physical space
             62668      utilization standards by June 30, 1995, for the use of technology education activities;
             62669          (b) these standards are to be developed with and approved by the State Office of
             62670      Education, the Board of Regents, and the Utah State Building Board;
             62671          (c) these physical standards be used as the basis for:
             62672          (i) determining utilization of any technology space based on number of stations capable
             62673      and occupied for any given hour of operation; and
             62674          (ii) requests for any new space or remodeling;
             62675          (d) the fiscal year 1995 projects at the Bridgerland Applied Technology Center and the
             62676      Ogden-Weber Applied Technology Center are exempt from this process; and
             62677          (e) the design of the Davis Applied Technology Center take into account the utilization
             62678      formulas established by the Division of Facilities Construction and Management.
             62679          (23) It is the intent of the Legislature that Utah Valley State College may use the
             62680      monies from the bond allocated to the remodel of the Signetics building to relocate its technical
             62681      education programs at other designated sites or facilities under the supervision of the director of
             62682      the Division of Facilities Construction and Management unless supervisory authority is
             62683      delegated by the director.
             62684          (24) It is the intent of the Legislature that the monies provided for the fiscal year 1995
             62685      project for the Bridgerland Applied Technology Center be used to design and construct the
             62686      space associated with Utah State University and design the technology center portion of the
             62687      project.
             62688          (25) It is the intent of the Legislature that the governor provide periodic reports on the
             62689      expenditure of the funds provided for electronic technology, equipment, and hardware to the
             62690      Information Technology Commission, the Capital Facilities and Administrative Services
             62691      Appropriation Subcommittee, and the Legislative Management Committee.
             62692          Section 1240. Section 63B-4-102 is amended to read:
             62693           63B-4-102. Maximum amount -- Projects authorized.

             62694          (1) The total amount of bonds issued under this part may not exceed $45,300,000.
             62695          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             62696      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             62697      Subsection (2).
             62698          (b) These costs may include the cost of acquiring land, interests in land, easements and
             62699      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             62700      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             62701      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             62702      covered by construction of the projects plus a period of six months after the end of the
             62703      construction period, and all related engineering, architectural, and legal fees.
             62704          (c) For the division, proceeds shall be provided for the following:
             62705     
CAPITAL IMPROVEMENTS

             62706          Alterations, Repairs, and Improvements                    $7,200,000
             62707      TOTAL IMPROVEMENTS                                $7,200,000
             62708     
CAPITAL AND ECONOMIC DEVELOPMENT

             62709              PROJECT                 AMOUNT         ESTIMATED
             62710              DESCRIPTION             FUNDED     OPERATIONS AND
             62711                                              MAINTENANCE
             62712                                                  COSTS
             62713          Corrections - Uinta IVA                $11,300,000        $212,800
             62714          Utah County Youth Correctional Facility        $6,650,000        $245,000
             62715          Ogden Weber Applied Technology Center -        $5,161,000        $176,000
             62716          Metal Trades        
             62717          Project Reserve Fund                    $3,500,000        None
             62718          Weber State University - Browning Center         $3,300,000        None
             62719          Remodel
             62720          Heber Wells Building Remodel            $2,000,000        None
             62721          Higher Education Davis County - Land Purchase    $1,600,000        None

             62722          National Guard -- Provo Armory            $1,500,000        $128,000
             62723          Department of Natural Resources - Pioneer         $900,000        $65,000
             62724          Trails Visitor Center
             62725          Higher Education Design Projects            $800,000        Varies
             62726                                                  depending
             62727                                                  upon
             62728                                                  projects
             62729                                                  selected
             62730          Salt Lake Community College -
             62731          South Valley Planning                $300,000        None
             62732          Division of Youth Corrections renamed in 2003
             62733          to the Division of Juvenile Justice
             62734          Services - Logan Land                $120,000        None
             62735          Purchase
             62736      TOTAL CAPITAL AND ECONOMIC DEVELOPMENT                $37,131,000
             62737      TOTAL IMPROVEMENTS AND
             62738      CAPITAL AND ECONOMIC DEVELOPMENT                    $44,331,000
             62739          (d) For purposes of this section, operations and maintenance costs:
             62740          (i) are estimates only;
             62741          (ii) may include any operations and maintenance costs already funded in existing agency
             62742      budgets; and
             62743          (iii) are not commitments by this Legislature or future Legislatures to fund those
             62744      operations and maintenance costs.
             62745          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             62746      constitute a limitation on the amount that may be expended for any project.
             62747          (b) The board may revise these estimates and redistribute the amount estimated for a
             62748      project among the projects authorized.
             62749          (c) The commission, by resolution and in consultation with the board, may delete one or

             62750      more projects from this list if the inclusion of that project or those projects in the list could be
             62751      construed to violate state law or federal law or regulation.
             62752          (4) (a) The division may enter into agreements related to these projects before the
             62753      receipt of proceeds of bonds issued under this chapter.
             62754          (b) The division shall make those expenditures from unexpended and unencumbered
             62755      building funds already appropriated to the Capital Projects Fund.
             62756          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             62757      of bonds issued under this chapter.
             62758          (d) The commission may, by resolution, make any statement of intent relating to that
             62759      reimbursement that is necessary or desirable to comply with federal tax law.
             62760          (5) (a) For those projects for which only partial funding is provided in Subsection (2), it
             62761      is the intent of the Legislature that the balance necessary to complete the projects be addressed
             62762      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             62763          (b) For those phased projects, the division may enter into contracts for amounts not to
             62764      exceed the anticipated full project funding but may not allow work to be performed on those
             62765      contracts in excess of the funding already authorized by the Legislature.
             62766          (c) Those contracts shall contain a provision for termination of the contract for the
             62767      convenience of the state as required by Section [ 63-56-601 ] 63G-6-601 .
             62768          (d) It is also the intent of the Legislature that this authorization to the division does not
             62769      bind future Legislatures to fund projects initiated from this authorization.
             62770          Section 1241. Section 63B-4-105 is amended to read:
             62771           63B-4-105. Terms and conditions of sale -- Plan of financing -- Signatures --
             62772      Replacement -- Registration -- Federal rebate.
             62773          (1) In the issuance of bonds, the commission may determine by resolution:
             62774          (a) the manner of sale, including public or private sale;
             62775          (b) the terms and conditions of sale, including price, whether at, below, or above face
             62776      value;
             62777          (c) denominations;

             62778          (d) form;
             62779          (e) manner of execution;
             62780          (f) manner of authentication;
             62781          (g) place and medium of purchase;
             62782          (h) redemption terms; and
             62783          (i) other provisions and details it considers appropriate.
             62784          (2) The commission may by resolution adopt a plan of financing, which may include
             62785      terms and conditions of arrangements entered into by the commission on behalf of the state with
             62786      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             62787      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             62788      including payment from any legally available source of fees, charges, or other amounts coming
             62789      due under the agreements entered into by the commission.
             62790          (3) (a) Any signature of a public official authorized by resolution of the commission to
             62791      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             62792      otherwise placed on the bonds.
             62793          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             62794      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             62795      authentication agent.
             62796          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             62797      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             62798          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             62799      placed on the bonds.
             62800          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             62801      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             62802      or larger denominations.
             62803          (b) Bonds in changed denominations shall:
             62804          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             62805      manner that prevents the duplication of interest; and

             62806          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             62807      practicable in the form of the original bonds.
             62808          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             62809      entry form under which the right to principal and interest may be transferred only through a
             62810      book entry.
             62811          (b) The commission may provide for the services and payment for the services of one or
             62812      more financial institutions or other entities or persons, or nominees, within or outside the state,
             62813      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             62814      functions, exchange, and payment of the bonds.
             62815          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             62816      persons to whom payment with respect to the obligations is made, are private records as
             62817      provided in Section [ 63-2-302 ] 63G-2-302 or protected records as provided in Section
             62818      [ 63-2-304 ] 63G-2-305 .
             62819          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             62820      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             62821      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             62822      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             62823      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             62824          (6) The commission may:
             62825          (a) by resolution, provide for payment to the United States of whatever amounts are
             62826      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             62827      and
             62828          (b) enter into agreements with financial and other institutions and attorneys to provide
             62829      for:
             62830          (i) the calculation, holding, and payment of those amounts; and
             62831          (ii) payment from any legally available source of fees, charges, or other amounts coming
             62832      due under any agreements entered into by the commission.
             62833          Section 1242. Section 63B-4-201 is amended to read:

             62834           63B-4-201. Legislative intent statements -- Capital facilities.
             62835          (1) (a) It is the intent of the Legislature that the University of Utah use institutional and
             62836      other funds to plan, design, and construct two campus child care centers under the supervision
             62837      of the director of the Division of Facilities Construction and Management unless supervisory
             62838      authority is delegated by the director.
             62839          (b) The university shall work with Salt Lake City and the surrounding neighborhood to
             62840      ensure site compatibility for future recreational development by the city.
             62841          (2) It is the intent of the Legislature that the University of Utah use institutional funds
             62842      to plan, design, and construct:
             62843          (a) the Union Parking structure under the supervision of the director of the Division of
             62844      Facilities Construction and Management unless supervisory authority is delegated by the
             62845      director;
             62846          (b) the stadium renovation under the supervision of the director of the Division of
             62847      Facilities Construction and Management unless supervisory authority is delegated by the
             62848      director;
             62849          (c) the Huntsman Cancer Institute under the supervision of the director of the Division
             62850      of Facilities Construction and Management unless supervisory authority is delegated by the
             62851      director;
             62852          (d) the Business Case Method Building under the supervision of the director of the
             62853      Division of Facilities Construction and Management unless supervisory authority is delegated by
             62854      the director; and
             62855          (e) the Fine Arts Museum expansion under the supervision of the director of the
             62856      Division of Facilities Construction and Management unless supervisory authority is delegated by
             62857      the director.
             62858          (3) It is the intent of the Legislature that Utah State University use institutional funds to
             62859      plan, design, and construct:
             62860          (a) a student health services facility under the supervision of the director of the Division
             62861      of Facilities Construction and Management unless supervisory authority is delegated by the

             62862      director;
             62863          (b) a women's softball field under the supervision of the director of the Division of
             62864      Facilities Construction and Management unless supervisory authority is delegated by the
             62865      director;
             62866          (c) an addition to the Nutrition and Food Services Building under the supervision of the
             62867      director of the Division of Facilities Construction and Management unless supervisory authority
             62868      is delegated by the director; and
             62869          (d) a Human Resource Research Center under the supervision of the director of the
             62870      Division of Facilities Construction and Management unless supervisory authority is delegated by
             62871      the director.
             62872          (4) It is the intent of the Legislature that Weber State University use institutional funds
             62873      to plan, design, and construct:
             62874          (a) a track renovation under the supervision of the director of the Division of Facilities
             62875      Construction and Management unless supervisory authority is delegated by the director; and
             62876          (b) the Dee Events Center offices under the supervision of the director of the Division
             62877      of Facilities Construction and Management unless supervisory authority is delegated by the
             62878      director.
             62879          (5) It is the intent of the Legislature that Southern Utah University use:
             62880          (a) institutional funds to plan, design, and construct an institutional residence under the
             62881      supervision of the director of the Division of Facilities Construction and Management unless
             62882      supervisory authority is delegated by the director; and
             62883          (b) project revenues and other funds to plan, design, and construct the Shakespearean
             62884      Festival support facilities under the supervision of the director of the Division of Facilities
             62885      Construction and Management unless supervisory authority is delegated by the director.
             62886          (6) It is the intent of the Legislature that Dixie College use institutional funds to plan,
             62887      design, and construct an institutional residence under the supervision of the director of the
             62888      Division of Facilities Construction and Management unless supervisory authority is delegated by
             62889      the director.

             62890          (7) It is the intent of the Legislature that the Division of Forestry, Fire and State Lands
             62891      use federal and other funds to plan, design, and construct a wetlands enhancement facility under
             62892      the supervision of the director of the Division of Facilities Construction and Management unless
             62893      supervisory authority is delegated by the director.
             62894          (8) (a) As provided in Subsection 63A-5-209 (2), the funds appropriated to the Project
             62895      Reserve Fund may only be used for the award of contracts in excess of the construction budget
             62896      if these funds are required to meet the intent of the project.
             62897          (b) It is the intent of the Legislature that:
             62898          (i) up to $2,000,000 of the amount may be used to award the construction contract for
             62899      the Ogden Court Building; and
             62900          (ii) the need for any funds remaining as of December 31, 1995 be reviewed by the 1996
             62901      Legislature.
             62902          (9) (a) It is the intent of the Legislature that the State Building Ownership Authority,
             62903      under authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter 1,
             62904      Part 3, State Building Ownership Authority Act, issue or execute obligations or enter into or
             62905      arrange for a lease purchase agreement in which participation interests may be created to
             62906      provide up to $539,700 for the purchase and demolition of the Keyston property and
             62907      construction of parking facilities adjacent to the State Office of Education Building in Salt Lake
             62908      City, with additional amounts necessary to:
             62909          (i) pay costs of issuance;
             62910          (ii) pay capitalized interest; and
             62911          (iii) fund any debt service reserve requirements.
             62912          (b) It is the intent of the Legislature that the authority seek out the most cost effective
             62913      and prudent lease purchase plan available with technical assistance from the state treasurer, the
             62914      director of the Division of Finance, and the director of the Governor's Office of Planning and
             62915      Budget.
             62916          (10) (a) It is the intent of the Legislature that the monies appropriated for Phase One of
             62917      the Remodeling/Life Safety Upgrades of the Browning Fine Arts Center at Weber State

             62918      University is to include design of full code compliance, life safety, space necessary to maintain
             62919      required programs, and seismic upgrades.
             62920          (b) The design shall identify the full scope and cost of Phase Two of the remodeling for
             62921      funding consideration in the fiscal year 1997 budget cycle.
             62922          (11) It is the intent of the Legislature that:
             62923          (a) the fiscal year 1996 appropriation for the Davis County Higher Education land
             62924      purchase includes up to $250,000 for planning purposes;
             62925          (b) the Division of Facilities Construction and Management, the Board of Regents, and
             62926      the assigned institution of higher education work jointly to ensure the following elements are
             62927      part of the planning process:
             62928          (i) projections of student enrollment and programmatic needs for the next ten years;
             62929          (ii) review and make recommendations for better use of existing space, current
             62930      technologies, public/private partnerships, and other alternatives as a means to reduce the need
             62931      for new facilities and still accommodate the projected student needs; and
             62932          (iii) use of a master plan that includes issues of utilities, access, traffic circulation,
             62933      drainage, rights of way, future developments, and other infrastructure items considered
             62934      appropriate; and
             62935          (c) every effort is used to minimize expenditures for this part until a definitive decision
             62936      has been made by BRACC relative to Hill Air Force Base.
             62937          (12) (a) It is the intent of the Legislature that the State Building Ownership Authority,
             62938      under authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter 1,
             62939      Part 3, State Building Ownership Authority Act, issue or execute obligations or enter into or
             62940      arrange for a lease purchase agreement in which participation interests may be created, to
             62941      provide up to $7,400,000 for the acquisition and improvement of the Human Services Building
             62942      located at 120 North 200 West, Salt Lake City, Utah, with associated parking for the
             62943      Department of Human Services together with additional amounts necessary to:
             62944          (i) pay costs of issuance;
             62945          (ii) pay capitalized interest; and

             62946          (iii) fund any debt service reserve requirements.
             62947          (b) It is the intent of the Legislature that the authority seek out the most cost effective
             62948      and prudent lease purchase plan available with technical assistance from the state treasurer, the
             62949      director of the Division of Finance, and the director of the Governor's Office of Planning and
             62950      Budget.
             62951          (13) (a) It is the intent of the Legislature that the State Building Ownership Authority,
             62952      under authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter 1,
             62953      Part 3, State Building Ownership Authority Act, issue or execute obligations or enter into or
             62954      arrange for a lease purchase agreement in which participation interests may be created to
             62955      provide up to $63,218,600 for the construction of a Salt Lake Courts Complex together with
             62956      additional amounts necessary to:
             62957          (i) pay costs of issuance;
             62958          (ii) pay capitalized interest; and
             62959          (iii) fund any debt service reserve requirements.
             62960          (b) It is the intent of the Legislature that the authority seek out the most cost effective
             62961      and prudent lease purchase plan available with technical assistance from the state treasurer, the
             62962      director of the Division of Finance, and the director of the Governor's Office of Planning and
             62963      Budget.
             62964          (c) It is the intent of the Legislature that the Division of Facilities Construction and
             62965      Management lease land to the State Building Ownership Authority for the construction of a Salt
             62966      Lake Courts Complex.
             62967          (14) It is the intent of the Legislature that:
             62968          (a) the Board of Regents use the higher education design project monies to design no
             62969      more than two higher education projects from among the following projects:
             62970          (i) College of Eastern Utah - Student Center;
             62971          (ii) Snow College - Noyes Building;
             62972          (iii) University of Utah - Gardner Hall;
             62973          (iv) Utah State University - Widtsoe Hall; or

             62974          (v) Southern Utah University - Physical Education Building; and
             62975          (b) the higher education institutions that receive approval from the Board of Regents to
             62976      design projects under this chapter design those projects under the supervision of the director of
             62977      the Division of Facilities Construction and Management unless supervisory authority is
             62978      delegated by the director.
             62979          (15) It is the intent of the Legislature that:
             62980          (a) the Board of Regents may authorize the University of Utah to use institutional funds
             62981      and donated funds to design Gardner Hall; and
             62982          (b) if authorized by the Board of Regents, the University of Utah may use institutional
             62983      funds and donated funds to design Gardner Hall under the supervision of the director of the
             62984      Division of Facilities Construction and Management unless supervisory authority is delegated by
             62985      the director.
             62986          (16) It is the intent of the Legislature that the Division of Facilities Construction and
             62987      Management use up to $250,000 of the capital improvement monies to fund the site
             62988      improvements required at the San Juan campus of the College of Eastern Utah.
             62989          Section 1243. Section 63B-4-301 is amended to read:
             62990           63B-4-301. Bonds for golf course at Wasatch Mountain State Park.
             62991          (1) The State Building Ownership Authority under authority of Title 63, Chapter 9a,
             62992      State Building Ownership Authority Act, may issue or execute obligations, or enter into or
             62993      arrange for a lease purchase agreement in which participation interests may be created, to
             62994      provide up to $2,500,000 for a new nine-hole golf course at Wasatch Mountain State Park for
             62995      the Division of Parks and Recreation, together with additional amounts necessary to:
             62996          (a) pay costs of issuance;
             62997          (b) pay capitalized interest; and
             62998          (c) fund any debt service reserve requirements.
             62999          (2) (a) The State Building Ownership Authority shall work cooperatively with the
             63000      Division of Parks and Recreation to seek out the most cost effective and prudent lease purchase
             63001      plan available.

             63002          (b) The state treasurer, the director of the Division of Finance, and the director of the
             63003      Governor's Office of Planning and Budget shall provide technical assistance to accomplish the
             63004      purpose specified in Subsection (2)(a).
             63005          Section 1244. Section 63B-5-102 is amended to read:
             63006           63B-5-102. Maximum amount -- Projects authorized.
             63007          (1) The total amount of bonds issued under this part may not exceed $32,000,000.
             63008          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             63009      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             63010      Subsection (2).
             63011          (b) These costs may include the cost of acquiring land, interests in land, easements and
             63012      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             63013      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             63014      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             63015      covered by construction of the projects plus a period of six months after the end of the
             63016      construction period, and all related engineering, architectural, and legal fees.
             63017          (c) For the division, proceeds shall be provided for the following:
             63018     
CAPITAL IMPROVEMENTS

             63019          Alterations, Repairs, and Improvements        $7,600,000
             63020      TOTAL IMPROVEMENTS                    $7,600,000
             63021     
CAPITAL AND ECONOMIC DEVELOPMENT

             63022                                               ESTIMATED
             63023                                           OPERATIONS AND
             63024              PROJECT                    AMOUNT     MAINTENANCE
             63025              DESCRIPTION                 FUNDED     COSTS
             63026          Corrections - Gunnison (192 Beds)            $13,970,000        $210,000
             63027          University of Utah -- Gardner Hall            $7,361,000        $203,900
             63028          Weber State University Davis Campus        $771,000        None
             63029          -- Land Purchase

             63030          Department of Workforce Services Cedar City    $148,000        None
             63031          -- Land Purchase
             63032          College of Eastern Utah Durrant School        $400,000        None
             63033          -- Land Purchase
             63034          State Hospital - Forensic Design (200 beds)        $750,000        $575,000
             63035      TOTAL CAPITAL AND ECONOMIC DEVELOPMENT    $23,400,000
             63036      TOTAL IMPROVEMENTS AND
             63037      CAPITAL AND ECONOMIC DEVELOPMENT        $31,000,000
             63038          (d) For purposes of this section, operations and maintenance costs:
             63039          (i) are estimates only;
             63040          (ii) may include any operations and maintenance costs already funded in existing agency
             63041      budgets; and
             63042          (iii) are not commitments by this Legislature or future Legislatures to fund those
             63043      operations and maintenance costs.
             63044          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             63045      constitute a limitation on the amount that may be expended for any project.
             63046          (b) The board may revise these estimates and redistribute the amount estimated for a
             63047      project among the projects authorized.
             63048          (c) The commission, by resolution and in consultation with the board, may delete one or
             63049      more projects from this list if the inclusion of that project or those projects in the list could be
             63050      construed to violate state law or federal law or regulation.
             63051          (4) (a) The division may enter into agreements related to these projects before the
             63052      receipt of proceeds of bonds issued under this chapter.
             63053          (b) The division shall make those expenditures from unexpended and unencumbered
             63054      building funds already appropriated to the Capital Projects Fund.
             63055          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             63056      of bonds issued under this chapter.
             63057          (d) The commission may, by resolution, make any statement of intent relating to that

             63058      reimbursement that is necessary or desirable to comply with federal tax law.
             63059          (5) (a) For those projects for which only partial funding is provided in Subsection (2), it
             63060      is the intent of the Legislature that the balance necessary to complete the projects be addressed
             63061      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             63062          (b) For those phased projects, the division may enter into contracts for amounts not to
             63063      exceed the anticipated full project funding but may not allow work to be performed on those
             63064      contracts in excess of the funding already authorized by the Legislature.
             63065          (c) Those contracts shall contain a provision for termination of the contract for the
             63066      convenience of the state as required by Section [ 63-56-601 ] 63G-6-601 .
             63067          (d) It is also the intent of the Legislature that this authorization to the division does not
             63068      bind future Legislatures to fund projects initiated from this authorization.
             63069          Section 1245. Section 63B-5-105 is amended to read:
             63070           63B-5-105. Terms and conditions of sale -- Plan of financing -- Signatures --
             63071      Replacement -- Registration -- Federal rebate.
             63072          (1) In the issuance of bonds, the commission may determine by resolution:
             63073          (a) the manner of sale, including public or private sale;
             63074          (b) the terms and conditions of sale, including price, whether at, below, or above face
             63075      value;
             63076          (c) denominations;
             63077          (d) form;
             63078          (e) manner of execution;
             63079          (f) manner of authentication;
             63080          (g) place and medium of purchase;
             63081          (h) redemption terms; and
             63082          (i) other provisions and details it considers appropriate.
             63083          (2) The commission may by resolution adopt a plan of financing, which may include
             63084      terms and conditions of arrangements entered into by the commission on behalf of the state with
             63085      financial and other institutions for letters of credit, standby letters of credit, reimbursement

             63086      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             63087      including payment from any legally available source of fees, charges, or other amounts coming
             63088      due under the agreements entered into by the commission.
             63089          (3) (a) Any signature of a public official authorized by resolution of the commission to
             63090      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             63091      otherwise placed on the bonds.
             63092          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             63093      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             63094      authentication agent.
             63095          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             63096      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             63097          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             63098      placed on the bonds.
             63099          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             63100      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             63101      or larger denominations.
             63102          (b) Bonds in changed denominations shall:
             63103          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             63104      manner that prevents the duplication of interest; and
             63105          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             63106      practicable in the form of the original bonds.
             63107          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             63108      entry form under which the right to principal and interest may be transferred only through a
             63109      book entry.
             63110          (b) The commission may provide for the services and payment for the services of one or
             63111      more financial institutions or other entities or persons, or nominees, within or outside the state,
             63112      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             63113      functions, exchange, and payment of the bonds.

             63114          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             63115      persons to whom payment with respect to the obligations are made, are private records as
             63116      provided in Section [ 63-2-302 ] 63G-2-302 or protected records as provided in Section
             63117      [ 63-2-304 ] 63G-2-305 .
             63118          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             63119      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             63120      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             63121      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             63122      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             63123          (6) The commission may:
             63124          (a) by resolution, provide for payment to the United States of whatever amounts are
             63125      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             63126      and
             63127          (b) enter into agreements with financial and other institutions and attorneys to provide
             63128      for:
             63129          (i) the calculation, holding, and payment of those amounts; and
             63130          (ii) payment from any legally available source of fees, charges, or other amounts coming
             63131      due under any agreements entered into by the commission.
             63132          Section 1246. Section 63B-6-102 is amended to read:
             63133           63B-6-102. Maximum amount -- Projects authorized.
             63134          (1) The total amount of bonds issued under this part may not exceed $57,000,000.
             63135          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             63136      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             63137      Subsection (2).
             63138          (b) These costs may include the cost of acquiring land, interests in land, easements and
             63139      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             63140      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             63141      convenient to the facilities, interest estimated to accrue on these bonds during the period to be

             63142      covered by construction of the projects plus a period of six months after the end of the
             63143      construction period, and all related engineering, architectural, and legal fees.
             63144          (c) For the division, proceeds shall be provided for the following:
             63145     
CAPITAL AND ECONOMIC DEVELOPMENT

             63146                                              ESTIMATED
             63147                                              OPERATIONS
             63148                                  AMOUNT        AND
             63149      PROJECT DESCRIPTION                FUNDED        MAINTENANCE
             63150      Youth Corrections - Carbon / Emery (18 beds)    $2,298,100        $70,000
             63151      State Hospital - 100 bed Forensic Facility        $13,800,700        $320,600
             63152      Utah State University - Widtsoe Hall        $23,986,700        $750,200
             63153      Davis Applied Technology Center            $6,344,900        $144,000
             63154      - Medical/Health Tech Addition
             63155      Southern Utah University -- Physical        $1,100,000        $456,100
             63156      Education Building (Design)
             63157      Salt Lake Community College -- High        $1,165,000        $718,500
             63158      Technology Building, 90th So. Campus (Design)
             63159      Department of Natural Resources - Antelope    $3,600,000        None
             63160      Island Road
             63161      Youth Corrections                    $1,500,000        None
             63162      - Region 1 72 Secured Bed Facility
             63163      Department of Natural Resources - Dead Horse    $1,350,000        $5,700
             63164      Point Visitors Center
             63165      TOTAL CAPITAL AND ECONOMIC        $55,145,400
             63166      DEVELOPMENT
             63167          (d) For purposes of this section, operations and maintenance costs:
             63168          (i) are estimates only;
             63169          (ii) may include any operations and maintenance costs already funded in existing agency

             63170      budgets; and
             63171          (iii) are not commitments by this Legislature or future Legislatures to fund those
             63172      operations and maintenance costs.
             63173          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             63174      constitute a limitation on the amount that may be expended for any project.
             63175          (b) The board may revise these estimates and redistribute the amount estimated for a
             63176      project among the projects authorized.
             63177          (c) The commission, by resolution and in consultation with the board, may delete one or
             63178      more projects from this list if the inclusion of that project or those projects in the list could be
             63179      construed to violate state law or federal law or regulation.
             63180          (4) (a) The division may enter into agreements related to these projects before the
             63181      receipt of proceeds of bonds issued under this chapter.
             63182          (b) The division shall make those expenditures from unexpended and unencumbered
             63183      building funds already appropriated to the Capital Projects Fund.
             63184          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             63185      of bonds issued under this chapter.
             63186          (d) The commission may, by resolution, make any statement of intent relating to that
             63187      reimbursement that is necessary or desirable to comply with federal tax law.
             63188          (5) (a) For those projects for which only partial funding is provided in Subsection (2), it
             63189      is the intent of the Legislature that the balance necessary to complete the projects be addressed
             63190      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             63191          (b) For those phased projects, the division may enter into contracts for amounts not to
             63192      exceed the anticipated full project funding but may not allow work to be performed on those
             63193      contracts in excess of the funding already authorized by the Legislature.
             63194          (c) Those contracts shall contain a provision for termination of the contract for the
             63195      convenience of the state as required by Section [ 63-56-601 ] 63G-6-601 .
             63196          (d) It is also the intent of the Legislature that this authorization to the division does not
             63197      bind future Legislatures to fund projects initiated from this authorization.

             63198          Section 1247. Section 63B-6-105 is amended to read:
             63199           63B-6-105. Terms and conditions of sale -- Plan of financing -- Signatures --
             63200      Replacement -- Registration -- Federal rebate.
             63201          (1) In the issuance of bonds, the commission may determine by resolution:
             63202          (a) the manner of sale, including public or private sale;
             63203          (b) the terms and conditions of sale, including price, whether at, below, or above face
             63204      value;
             63205          (c) denominations;
             63206          (d) form;
             63207          (e) manner of execution;
             63208          (f) manner of authentication;
             63209          (g) place and medium of purchase;
             63210          (h) redemption terms; and
             63211          (i) other provisions and details it considers appropriate.
             63212          (2) The commission may by resolution adopt a plan of financing, which may include
             63213      terms and conditions of arrangements entered into by the commission on behalf of the state with
             63214      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             63215      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             63216      including payment from any legally available source of fees, charges, or other amounts coming
             63217      due under the agreements entered into by the commission.
             63218          (3) (a) Any signature of a public official authorized by resolution of the commission to
             63219      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             63220      otherwise placed on the bonds.
             63221          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             63222      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             63223      authentication agent.
             63224          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             63225      the signature or facsimile signature of the official is nevertheless valid for all purposes.

             63226          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             63227      placed on the bonds.
             63228          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             63229      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             63230      or larger denominations.
             63231          (b) Bonds in changed denominations shall:
             63232          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             63233      manner that prevents the duplication of interest; and
             63234          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             63235      practicable in the form of the original bonds.
             63236          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             63237      entry form under which the right to principal and interest may be transferred only through a
             63238      book entry.
             63239          (b) The commission may provide for the services and payment for the services of one or
             63240      more financial institutions or other entities or persons, or nominees, within or outside the state,
             63241      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             63242      functions, exchange, and payment of the bonds.
             63243          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             63244      persons to whom payment with respect to the obligations are made, are private records as
             63245      provided in Section [ 63-2-302 ] 63G-2-302 or protected records as provided in Section
             63246      [ 63-2-304 ] 63G-2-305 .
             63247          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             63248      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             63249      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             63250      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             63251      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             63252          (6) The commission may:
             63253          (a) by resolution, provide for payment to the United States of whatever amounts are

             63254      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             63255      and
             63256          (b) enter into agreements with financial and other institutions and attorneys to provide
             63257      for:
             63258          (i) the calculation, holding, and payment of those amounts; and
             63259          (ii) payment from any legally available source of fees, charges, or other amounts coming
             63260      due under any agreements entered into by the commission.
             63261          Section 1248. Section 63B-6-205 is amended to read:
             63262           63B-6-205. Terms and conditions of sale -- Plan of financing -- Signatures --
             63263      Replacement -- Registration -- Federal rebate.
             63264          (1) In the issuance of bonds, the commission may determine by resolution:
             63265          (a) the manner of sale, including public or private sale;
             63266          (b) the terms and conditions of sale, including price, whether at, below, or above face
             63267      value;
             63268          (c) denominations;
             63269          (d) form;
             63270          (e) manner of execution;
             63271          (f) manner of authentication;
             63272          (g) place and medium of purchase;
             63273          (h) redemption terms; and
             63274          (i) other provisions and details it considers appropriate.
             63275          (2) The commission may, by resolution, adopt a plan of financing, which may include
             63276      terms and conditions of arrangements entered into by the commission on behalf of the state with
             63277      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             63278      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             63279      including payment from any legally available source of fees, charges, or other amounts coming
             63280      due under the agreements entered into by the commission.
             63281          (3) (a) Any signature of a public official authorized by resolution of the commission to

             63282      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             63283      otherwise placed on the bonds.
             63284          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             63285      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             63286      authentication agent.
             63287          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             63288      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             63289          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             63290      placed on the bonds.
             63291          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             63292      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             63293      or larger denominations.
             63294          (b) Bonds in changed denominations shall:
             63295          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             63296      manner that prevents the duplication of interest; and
             63297          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             63298      practicable in the form of the original bonds.
             63299          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             63300      entry form under which the right to principal and interest may be transferred only through a
             63301      book entry.
             63302          (b) The commission may provide for the services and payment for the services of one or
             63303      more financial institutions or other entities or persons, or nominees, within or outside the state,
             63304      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             63305      functions, exchange, and payment of the bonds.
             63306          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             63307      persons to whom payment with respect to the obligations is made, are private records as
             63308      provided in Section [ 63-2-302 ] 63G-2-302 , or protected records as provided in Section
             63309      [ 63-2-304 ] 63G-2-305 .

             63310          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             63311      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             63312      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             63313      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             63314      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             63315          (6) The commission may:
             63316          (a) by resolution, provide for payment to the United States of whatever amounts are
             63317      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             63318      and
             63319          (b) enter into agreements with financial and other institutions and attorneys to provide
             63320      for:
             63321          (i) the calculation, holding, and payment of those amounts; and
             63322          (ii) payment from any legally available source of fees, charges, or other amounts coming
             63323      due under any agreements entered into by the commission.
             63324          Section 1249. Section 63B-6-402 is amended to read:
             63325           63B-6-402. Maximum amount -- Projects authorized.
             63326          (1) The total amount of bonds issued under this part may not exceed $9,000,000.
             63327          (2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax
             63328      Commission to provide funds to pay all or part of the cost of the project described in this
             63329      Subsection (2).
             63330          (b) These costs may include:
             63331          (i) the cost of acquisition, development, and conversion of computer hardware and
             63332      software for motor vehicle fee systems and tax collection and accounting systems of the state;
             63333          (ii) interest estimated to accrue on these bonds during the period to be covered by that
             63334      development and conversion, plus a period of six months following the completion of the
             63335      development and conversion; and
             63336          (iii) all related engineering, consulting, and legal fees.
             63337          (c) For the State Tax Commission, proceeds shall be provided for the following:

             63338              PROJECT                    AMOUNT
             63339              DESCRIPTION                FUNDED
             63340          UTAX SYSTEMS                    $8,500,000
             63341          ACQUISITION AND DEVELOPMENT
             63342          (3) The commission, by resolution may decline to issue bonds if the project could be
             63343      construed to violate state law or federal law or regulation.
             63344          (4) (a) For this project, for which only partial funding is provided in Subsection (2), it is
             63345      the intent of the Legislature that the balance necessary to complete the project be addressed by
             63346      future Legislatures, either through appropriations or through the issuance or sale of bonds.
             63347          (b) The State Tax Commission may enter into contracts for amounts not to exceed the
             63348      anticipated full project funding but may not allow work to be performed on those contracts in
             63349      excess of the funding already authorized by the Legislature.
             63350          (c) Those contracts shall contain a provision for termination of the contract for the
             63351      convenience of the state as required by Section [ 63-56-601 ] 63G-6-601 .
             63352          (d) It is also the intent of the Legislature that this authorization to the State Tax
             63353      Commission does not bind future Legislatures to fund projects initiated from this authorization.
             63354          Section 1250. Section 63B-6-405 is amended to read:
             63355           63B-6-405. Terms and conditions of sale -- Plan of financing -- Signatures --
             63356      Replacement -- Registration -- Federal rebate.
             63357          (1) In the issuance of bonds, the commission may determine by resolution:
             63358          (a) the manner of sale, including public or private sale;
             63359          (b) the terms and conditions of sale, including price, whether at, below, or above face
             63360      value;
             63361          (c) denominations;
             63362          (d) form;
             63363          (e) manner of execution;
             63364          (f) manner of authentication;
             63365          (g) place and medium of purchase;

             63366          (h) redemption terms; and
             63367          (i) other provisions and details it considers appropriate.
             63368          (2) The commission may by resolution adopt a plan of financing, which may include
             63369      terms and conditions of arrangements entered into by the commission on behalf of the state with
             63370      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             63371      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             63372      including payment from any legally available source of fees, charges, or other amounts coming
             63373      due under the agreements entered into by the commission.
             63374          (3) (a) Any signature of a public official authorized by resolution of the commission to
             63375      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             63376      otherwise placed on the bonds.
             63377          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             63378      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             63379      authentication agent.
             63380          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             63381      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             63382          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             63383      placed on the bonds.
             63384          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             63385      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             63386      or larger denominations.
             63387          (b) Bonds in changed denominations shall:
             63388          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             63389      manner that prevents the duplication of interest; and
             63390          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             63391      practicable in the form of the original bonds.
             63392          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             63393      entry form under which the right to principal and interest may be transferred only through a

             63394      book entry.
             63395          (b) The commission may provide for the services and payment for the services of one or
             63396      more financial institutions or other entities or persons, or nominees, within or outside the state,
             63397      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             63398      functions, exchange, and payment of the bonds.
             63399          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             63400      persons to whom payment with respect to the obligations are made, are private records as
             63401      provided in Section [ 63-2-302 ] 63G-2-302 or protected records as provided in Section
             63402      [ 63-2-304 ] 63G-2-305 .
             63403          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             63404      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             63405      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             63406      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             63407      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             63408          (6) The commission may:
             63409          (a) by resolution, provide for payment to the United States of whatever amounts are
             63410      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             63411      and
             63412          (b) enter into agreements with financial and other institutions and attorneys to provide
             63413      for:
             63414          (i) the calculation, holding, and payment of those amounts; and
             63415          (ii) payment from any legally available source of fees, charges, or other amounts coming
             63416      due under any agreements entered into by the commission.
             63417          Section 1251. Section 63B-6-501 is amended to read:
             63418           63B-6-501. Revenue bond authorizations.
             63419          (1) (a) It is the intent of the Legislature that:
             63420          (i) the State Board of Regents, on behalf of the University of Utah, issue, sell, and
             63421      deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow

             63422      money on the credit and income and revenues of the University of Utah, other than
             63423      appropriations of the Legislature, to finance the cost of constructing, furnishing, and equipping
             63424      a renovation and expansion of the Robert L. Rice Stadium; and
             63425          (ii) Olympic funds, University funds, and activity revenues be used as the primary
             63426      revenue sources for repayment of any obligation created under the authority of this Subsection
             63427      (1).
             63428          (b) The bonds or other evidences of indebtedness authorized may provide up to
             63429      $50,000,000 together with other amounts necessary to pay costs of issuance, pay capitalized
             63430      interest, and fund any debt service reserve requirements.
             63431          (2) (a) The State Building Ownership Authority, under authority of Title 63, Chapter
             63432      9a, State Building Ownership Authority Act, may issue or execute obligations or enter into or
             63433      arrange for a lease purchase agreement in which participation interests may be created to
             63434      provide up to $350,000 for the remodeling and completion of the Wasatch Mountain State Park
             63435      Clubhouse for the Division of Parks and Recreation, together with additional amounts necessary
             63436      to pay costs of issuance, pay capitalized interest, and fund any debt service reserve
             63437      requirements.
             63438          (b) The State Building Ownership Authority shall work cooperatively with the Division
             63439      of Parks and Recreation to seek out the most cost effective and prudent lease purchase plan
             63440      available.
             63441          (c) It is the intent of the Legislature that park revenues be used as the primary revenue
             63442      sources for repayment of any obligation created under authority of this Subsection (2).
             63443          (3) It is the intent of the Legislature that:
             63444          (a) the State Building Ownership Authority, under the authority of [Title 63, Chapter
             63445      9a, State Building Ownership Act] Title 63B, Chapter 1, Part 3, State Building Ownership
             63446      Authority Act, may issue or execute obligations, or enter into or arrange for a lease purchase
             63447      agreement in which participation interests may be created, to provide up to $6,000,000 for the
             63448      construction, or acquisition, or both, of liquor stores, together with additional amounts
             63449      necessary to pay costs of issuance, pay capitalized interest, and fund any debt service

             63450      requirements; and
             63451          (b) liquor control funds be used as the primary revenue source for the repayment of any
             63452      obligation created under authority of this Subsection (3).
             63453          Section 1252. Section 63B-7-102 is amended to read:
             63454           63B-7-102. Maximum amount -- Projects authorized.
             63455          (1) The total amount of bonds issued under this part may not exceed $33,600,000.
             63456          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             63457      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             63458      Subsection (2).
             63459          (b) These costs may include the cost of acquiring land, interests in land, easements and
             63460      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             63461      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             63462      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             63463      covered by construction of the projects plus a period of six months after the end of the
             63464      construction period, and all related engineering, architectural, and legal fees.
             63465          (c) For the division, proceeds shall be provided for the following:
             63466      PROJECT                 AMOUNT                ESTIMATED
             63467      DESCRIPTION             FUNDED             OPERATIONS AND
             63468                                              MAINTENANCE
             63469      Southern Utah University         $4,600,000                $0
             63470          Land Purchase
             63471      Salt Lake Community College     $3,980,700                $507,900
             63472          High Tech Center -
             63473          Jordan Campus
             63474      Children's Special Health Care     $755,400                $247,600
             63475          Needs Clinic
             63476      Youth Corrections - 2 @ 32 beds     $419,500                $276,000
             63477          (Vernal / Logan)

             63478      Corrections - Gunnison 288 bed     $8,425,600                $0
             63479          and Lagoon Expansion
             63480      University of Utah -             $445,500                $101,700
             63481          Cowles Building
             63482      Utah Valley State College -         $1,166,300                $391,000
             63483          Technical Building
             63484      Sevier Valley Applied Technology     $3,014,300                $443,300
             63485          Center - Shop Expansion
             63486      Division of Parks and Recreation     $1,000,000                $22,700
             63487          Statewide Restrooms
             63488      Murray Highway Patrol Office     $2,300,000                $81,000
             63489      Department of Workforce         $2,780,000                $128,100
             63490          Services - Davis County
             63491          Employment Center
             63492      State Hospital - Rampton II         $1,600,000                $462,000
             63493      Courts - 4th District             $1,368,000                $0
             63494          Land - Provo
             63495      Dixie College - Land             $1,000,000                $0
             63496      TOTAL CAPITAL AND         $32,855,300
             63497      ECONOMIC DEVELOPMENT
             63498          (d) For purposes of this section, operations and maintenance costs:
             63499          (i) are estimates only;
             63500          (ii) may include any operations and maintenance costs already funded in existing agency
             63501      budgets; and
             63502          (iii) are not commitments by this Legislature or future Legislatures to fund those
             63503      operations and maintenance costs.
             63504          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             63505      constitute a limitation on the amount that may be expended for any project.

             63506          (b) The board may revise these estimates and redistribute the amount estimated for a
             63507      project among the projects authorized.
             63508          (c) The commission, by resolution and in consultation with the board, may delete one or
             63509      more projects from this list if the inclusion of that project or those projects in the list could be
             63510      construed to violate state law or federal law or regulation.
             63511          (4) (a) The division may enter into agreements related to these projects before the
             63512      receipt of proceeds of bonds issued under this chapter.
             63513          (b) The division shall make those expenditures from unexpended and unencumbered
             63514      building funds already appropriated to the Capital Projects Fund.
             63515          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             63516      of bonds issued under this chapter.
             63517          (d) The commission may, by resolution, make any statement of intent relating to that
             63518      reimbursement that is necessary or desirable to comply with federal tax law.
             63519          (5) (a) For those projects for which only partial funding is provided in Subsection (2), it
             63520      is the intent of the Legislature that the balance necessary to complete the projects be addressed
             63521      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             63522          (b) For those phased projects, the division may enter into contracts for amounts not to
             63523      exceed the anticipated full project funding but may not allow work to be performed on those
             63524      contracts in excess of the funding already authorized by the Legislature.
             63525          (c) Those contracts shall contain a provision for termination of the contract for the
             63526      convenience of the state as required by Section [ 63-56-601 ] 63G-6-601 .
             63527          (d) It is also the intent of the Legislature that this authorization to the division does not
             63528      bind future Legislatures to fund projects initiated from this authorization.
             63529          Section 1253. Section 63B-7-105 is amended to read:
             63530           63B-7-105. Terms and conditions of sale -- Plan of financing -- Signatures --
             63531      Replacement -- Registration -- Federal rebate.
             63532          (1) In the issuance of bonds, the commission may determine by resolution:
             63533          (a) the manner of sale, including public or private sale;

             63534          (b) the terms and conditions of sale, including price, whether at, below, or above face
             63535      value;
             63536          (c) denominations;
             63537          (d) form;
             63538          (e) manner of execution;
             63539          (f) manner of authentication;
             63540          (g) place and medium of purchase;
             63541          (h) redemption terms; and
             63542          (i) other provisions and details it considers appropriate.
             63543          (2) The commission may by resolution adopt a plan of financing, which may include
             63544      terms and conditions of arrangements entered into by the commission on behalf of the state with
             63545      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             63546      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             63547      including payment from any legally available source of fees, charges, or other amounts coming
             63548      due under the agreements entered into by the commission.
             63549          (3) (a) Any signature of a public official authorized by resolution of the commission to
             63550      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             63551      otherwise placed on the bonds.
             63552          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             63553      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             63554      authentication agent.
             63555          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             63556      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             63557          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             63558      placed on the bonds.
             63559          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             63560      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             63561      or larger denominations.

             63562          (b) Bonds in changed denominations shall:
             63563          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             63564      manner that prevents the duplication of interest; and
             63565          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             63566      practicable in the form of the original bonds.
             63567          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             63568      entry form under which the right to principal and interest may be transferred only through a
             63569      book entry.
             63570          (b) The commission may provide for the services and payment for the services of one or
             63571      more financial institutions or other entities or persons, or nominees, within or outside the state,
             63572      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             63573      functions, exchange, and payment of the bonds.
             63574          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             63575      persons to whom payment with respect to the obligations are made, are private records as
             63576      provided in Section [ 63-2-302 ] 63G-2-302 or protected records as provided in Section
             63577      [ 63-2-304 ] 63G-2-305 .
             63578          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             63579      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             63580      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             63581      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             63582      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             63583          (6) The commission may:
             63584          (a) by resolution, provide for payment to the United States of whatever amounts are
             63585      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             63586      and
             63587          (b) enter into agreements with financial and other institutions and attorneys to provide
             63588      for:
             63589          (i) the calculation, holding, and payment of those amounts; and

             63590          (ii) payment from any legally available source of fees, charges, or other amounts coming
             63591      due under any agreements entered into by the commission.
             63592          Section 1254. Section 63B-7-205 is amended to read:
             63593           63B-7-205. Terms and conditions of sale -- Plan of financing -- Signatures --
             63594      Replacement -- Registration -- Federal rebate.
             63595          (1) In the issuance of bonds, the commission may determine by resolution:
             63596          (a) the manner of sale, including public or private sale;
             63597          (b) the terms and conditions of sale, including price, whether at, below, or above face
             63598      value;
             63599          (c) denominations;
             63600          (d) form;
             63601          (e) manner of execution;
             63602          (f) manner of authentication;
             63603          (g) place and medium of purchase;
             63604          (h) redemption terms; and
             63605          (i) other provisions and details it considers appropriate.
             63606          (2) The commission may, by resolution, adopt a plan of financing, which may include
             63607      terms and conditions of arrangements entered into by the commission on behalf of the state with
             63608      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             63609      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             63610      including payment from any legally available source of fees, charges, or other amounts coming
             63611      due under the agreements entered into by the commission.
             63612          (3) (a) Any signature of a public official authorized by resolution of the commission to
             63613      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             63614      otherwise placed on the bonds.
             63615          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             63616      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             63617      authentication agent.

             63618          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             63619      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             63620          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             63621      placed on the bonds.
             63622          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             63623      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             63624      or larger denominations.
             63625          (b) Bonds in changed denominations shall:
             63626          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             63627      manner that prevents the duplication of interest; and
             63628          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             63629      practicable in the form of the original bonds.
             63630          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             63631      entry form under which the right to principal and interest may be transferred only through a
             63632      book entry.
             63633          (b) The commission may provide for the services and payment for the services of one or
             63634      more financial institutions or other entities or persons, or nominees, within or outside the state,
             63635      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             63636      functions, exchange, and payment of the bonds.
             63637          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             63638      persons to whom payment with respect to the obligations is made, are private records as
             63639      provided in Section [ 63-2-302 ] 63G-2-302 , or protected records as provided in Section
             63640      [ 63-2-304 ] 63G-2-305 .
             63641          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             63642      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             63643      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             63644      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             63645      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.

             63646          (6) The commission may:
             63647          (a) by resolution, provide for payment to the United States of whatever amounts are
             63648      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             63649      and
             63650          (b) enter into agreements with financial and other institutions and attorneys to provide
             63651      for:
             63652          (i) the calculation, holding, and payment of those amounts; and
             63653          (ii) payment from any legally available source of fees, charges, or other amounts coming
             63654      due under any agreements entered into by the commission.
             63655          Section 1255. Section 63B-7-402 is amended to read:
             63656           63B-7-402. Maximum amount -- Projects authorized.
             63657          (1) The total amount of bonds issued under this part may not exceed $16,500,000.
             63658          (2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax
             63659      Commission to provide funds to pay all or part of the cost of the project described in this
             63660      Subsection (2).
             63661          (b) These costs may include:
             63662          (i) the cost of acquisition, development, and conversion of computer hardware and
             63663      software for motor vehicle fee systems and tax collection and accounting systems of the state;
             63664          (ii) interest estimated to accrue on these bonds during the period to be covered by that
             63665      development and conversion, plus a period of six months following the completion of the
             63666      development and conversion; and
             63667          (iii) all related engineering, consulting, and legal fees.
             63668          (c) For the State Tax Commission, proceeds shall be provided for the following:
             63669          PROJECT                    AMOUNT
             63670          DESCRIPTION                FUNDED
             63671          UTAX SYSTEMS                $15,650,000
             63672          ACQUISITION AND DEVELOPMENT
             63673          (3) The commission, by resolution may decline to issue bonds if the project could be

             63674      construed to violate state law or federal law or regulation.
             63675          (4) (a) For this project, for which only partial funding is provided in Subsection (2), it is
             63676      the intent of the Legislature that the balance necessary to complete the project be addressed by
             63677      future Legislatures, either through appropriations or through the issuance or sale of bonds.
             63678          (b) The State Tax Commission may enter into contracts for amounts not to exceed the
             63679      anticipated full project funding but may not allow work to be performed on those contracts in
             63680      excess of the funding already authorized by the Legislature.
             63681          (c) Those contracts shall contain a provision for termination of the contract for the
             63682      convenience of the state as required by Section [ 63-56-601 ] 63G-6-601 .
             63683          (d) It is also the intent of the Legislature that this authorization to the State Tax
             63684      Commission does not bind future Legislatures to fund projects initiated from this authorization.
             63685          Section 1256. Section 63B-7-405 is amended to read:
             63686           63B-7-405. Terms and conditions of sale -- Plan of financing -- Signatures --
             63687      Replacement -- Registration -- Federal rebate.
             63688          (1) In the issuance of bonds, the commission may determine by resolution:
             63689          (a) the manner of sale, including public or private sale;
             63690          (b) the terms and conditions of sale, including price, whether at, below, or above face
             63691      value;
             63692          (c) denominations;
             63693          (d) form;
             63694          (e) manner of execution;
             63695          (f) manner of authentication;
             63696          (g) place and medium of purchase;
             63697          (h) redemption terms; and
             63698          (i) other provisions and details it considers appropriate.
             63699          (2) The commission may by resolution adopt a plan of financing, which may include
             63700      terms and conditions of arrangements entered into by the commission on behalf of the state with
             63701      financial and other institutions for letters of credit, standby letters of credit, reimbursement

             63702      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             63703      including payment from any legally available source of fees, charges, or other amounts coming
             63704      due under the agreements entered into by the commission.
             63705          (3) (a) Any signature of a public official authorized by resolution of the commission to
             63706      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             63707      otherwise placed on the bonds.
             63708          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             63709      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             63710      authentication agent.
             63711          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             63712      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             63713          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             63714      placed on the bonds.
             63715          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             63716      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             63717      or larger denominations.
             63718          (b) Bonds in changed denominations shall:
             63719          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             63720      manner that prevents the duplication of interest; and
             63721          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             63722      practicable in the form of the original bonds.
             63723          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             63724      entry form under which the right to principal and interest may be transferred only through a
             63725      book entry.
             63726          (b) The commission may provide for the services and payment for the services of one or
             63727      more financial institutions or other entities or persons, or nominees, within or outside the state,
             63728      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             63729      functions, exchange, and payment of the bonds.

             63730          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             63731      persons to whom payment with respect to the obligations are made, are private records as
             63732      provided in Section [ 63-2-302 ] 63G-2-302 or protected records as provided in Section
             63733      [ 63-2-304 ] 63G-2-305 .
             63734          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             63735      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             63736      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             63737      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             63738      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             63739          (6) The commission may:
             63740          (a) by resolution, provide for payment to the United States of whatever amounts are
             63741      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             63742      and
             63743          (b) enter into agreements with financial and other institutions and attorneys to provide
             63744      for:
             63745          (i) the calculation, holding, and payment of those amounts; and
             63746          (ii) payment from any legally available source of fees, charges, or other amounts coming
             63747      due under any agreements entered into by the commission.
             63748          Section 1257. Section 63B-7-501 is amended to read:
             63749           63B-7-501. Revenue bond authorizations.
             63750          (1) (a) It is the intent of the Legislature that the State Building Ownership Authority,
             63751      under the authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter
             63752      1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
             63753      into or arrange for a lease purchase agreement in which participation interests may be created,
             63754      to provide up to $1,568,600 for the construction of a Utah Correctional Industries Facility at
             63755      the Central Utah Correctional Facility at Gunnison, together with additional amounts necessary
             63756      to pay costs of issuance, pay capitalized interest, and fund any debt service requirements.
             63757          (b) The State Building Ownership Authority shall work cooperatively with the

             63758      Department of Corrections to seek out the most cost effective and prudent lease purchase plan
             63759      available.
             63760          (c) It is the intent of the Legislature that program revenues be used as the primary
             63761      revenue source for repayment of any obligation created under authority of this Subsection (1).
             63762          (2) It is the intent of the Legislature that:
             63763          (a) the State Board of Regents, on behalf of the University of Utah, issue, sell, and
             63764      deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
             63765      money on the credit, income, and revenues of the University of Utah, other than appropriations
             63766      of the Legislature, to finance the cost of constructing, furnishing, and equipping student
             63767      housing;
             63768          (b) University funds and housing rental revenues be used as the primary revenue source
             63769      for repayment of any obligation created under authority of this Subsection (2); and
             63770          (c) the bonds or other evidences of indebtedness authorized by this Subsection (2) may
             63771      provide up to $86,000,000 together with other amounts necessary to pay costs of issuance, pay
             63772      capitalized interest, and fund any debt service reserve requirements.
             63773          (3) It is the intent of the Legislature that:
             63774          (a) the State Board of Regents on behalf of the University of Utah issue, sell, and
             63775      deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
             63776      money on the credit, income, and revenues of the University of Utah, other than appropriations
             63777      of the Legislature, to finance the cost of constructing, furnishing, and equipping a Health
             63778      Sciences Parking Structure;
             63779          (b) University funds and parking revenues be used as the primary revenue source for
             63780      repayment of any obligation created under authority of this Subsection (3); and
             63781          (c) the bonds or other evidences of indebtedness authorized by this Subsection (3) may
             63782      provide up to $12,000,000, together with other amounts necessary to pay costs of issuance, pay
             63783      capitalized interest, and fund any debt service reserve requirements.
             63784          (4) It is the intent of the Legislature that:
             63785          (a) the State Board of Regents, on behalf of the University of Utah, issue, sell, and

             63786      deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
             63787      money on the credit and income and revenues of the University of Utah, other than
             63788      appropriations of the Legislature, to finance the cost of constructing, furnishing, and equipping
             63789      a Southwest Campus Parking Structure;
             63790          (b) University funds and parking revenues be used as the primary revenue source for
             63791      repayment of any obligation created under authority of this Subsection (4); and
             63792          (c) the bonds or other evidences of indebtedness authorized by this Subsection (4) may
             63793      provide up to $7,200,000, together with other amounts necessary to pay costs of issuance, pay
             63794      capitalized interest, and fund any debt service reserve requirements.
             63795          (5) It is the intent of the Legislature that:
             63796          (a) the State Board of Regents, on behalf of the University of Utah, issue, sell, and
             63797      deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
             63798      money on the credit and income and revenues of the University of Utah, other than
             63799      appropriations of the Legislature, to finance the cost of constructing, furnishing, and equipping
             63800      an expansion of the Eccles Broadcast Center;
             63801          (b) University funds and service revenues be used as the primary revenue source for
             63802      repayment of any obligation created under authority of this Subsection (5); and
             63803          (c) the bonds or other evidences of indebtedness authorized by this Subsection (5) may
             63804      provide up to $5,100,000, together with other amounts necessary to pay costs of issuance, pay
             63805      capitalized interest, and fund any debt service reserve requirements.
             63806          (6) It is the intent of the Legislature that:
             63807          (a) the State Board of Regents, on behalf of the University of Utah, issue, sell, and
             63808      deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
             63809      money on the credit and income and revenues of the University of Utah, other than
             63810      appropriations of the Legislature, to finance the cost of constructing, furnishing, equipping, and
             63811      remodeling facilities for perinatal services, adult critical care services, clinical training and
             63812      support, and upgrade of the University Hospital Rehabilitation Unit, and for purchase of the
             63813      University Neuropsychiatric Institute and Summit Health Center in Park West;

             63814          (b) University Hospital revenues be used as the primary revenue source for repayment
             63815      of any obligation created under authority of this Subsection (6); and
             63816          (c) the bonds or other evidences of indebtedness authorized by this Subsection (6) may
             63817      provide up to $23,300,000 together with other amounts necessary to pay costs of issuance, pay
             63818      capitalized interest, and fund any debt service reserve requirements.
             63819          (7) It is the intent of the Legislature that:
             63820          (a) the State Board of Regents, on behalf of Weber State University, issue, sell, and
             63821      deliver revenue bonds or other evidences of indebtedness of Weber State University to borrow
             63822      money on the credit and income and revenues of Weber State University, other than
             63823      appropriations of the Legislature, to finance the cost of constructing, furnishing, and equipping
             63824      student housing;
             63825          (b) University funds and housing rental revenues be used as the primary revenue source
             63826      for repayment of any obligation created under authority of this Subsection (7); and
             63827          (c) the bonds or other evidences of indebtedness authorized by this Subsection (7) may
             63828      provide up to $19,000,000 together with other amounts necessary to pay costs of issuance, pay
             63829      capitalized interest, and fund any debt service reserve requirements.
             63830          (8) (a) It is the intent of the Legislature that the State Building Ownership Authority,
             63831      under the authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter
             63832      1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
             63833      into or arrange for a lease purchase agreement in which participation interests may be created,
             63834      to provide up to $1,100,000 for the construction of surplus property facilities for the Division of
             63835      Fleet Operations, together with additional amounts necessary to pay costs of issuance, pay
             63836      capitalized interest, and fund any debt service reserve requirements.
             63837          (b) The State Building Ownership Authority shall work cooperatively with the
             63838      Department of Administrative Services to seek out the most cost effective and prudent lease
             63839      purchase plan available.
             63840          (c) It is the intent of the Legislature that Internal Service Fund revenues be used as the
             63841      primary revenue source for repayment of any obligation created under authority of this

             63842      Subsection (8).
             63843          (9) (a) Contingent upon the state of Utah receiving a perfected security interest in
             63844      accordance with Senate Joint Resolution 14, 1998 Annual General Session, the State Building
             63845      Ownership Authority, under authority of Title 63, Chapter 9a, State Building Ownership
             63846      Authority Act, may issue or execute obligations, or enter into or arrange for a lease purchase
             63847      agreement in which participation interests may be created, to provide up to $25,000,000 for the
             63848      cost of constructing, furnishing, and equipping housing facilities at the University of Utah,
             63849      together with additional amounts necessary to:
             63850          (i) pay costs of issuance;
             63851          (ii) pay capitalized interest; and
             63852          (iii) fund any debt service reserve requirements.
             63853          (b) The State Building Ownership Authority and the University of Utah may enter into
             63854      real estate arrangements and security arrangements that are:
             63855          (i) necessary to accomplish the purposes of this Subsection (9); and
             63856          (ii) not inconsistent with the requirements of Senate Joint Resolution 14, 1998 Annual
             63857      General Session.
             63858          (10) In order to achieve a debt service savings, it is the intent of the Legislature that the
             63859      State Building Ownership Authority, under authority of Title 63, Chapter 9a, State Building
             63860      Ownership Authority Act, may issue or execute obligations, or enter into or arrange for a lease
             63861      purchase agreement in which participation interests may be created, to provide sufficient
             63862      funding to exercise the state's option to purchase the Youth Corrections Facility in Salt Lake
             63863      County currently financed by Salt Lake County.
             63864          Section 1258. Section 63B-7-503 is amended to read:
             63865           63B-7-503. Highway revenue bond authorization.
             63866          It is the intent of the Legislature that:
             63867          (1) the State Building Ownership Authority, under the authority of [Title 63, Chapter
             63868      9a, State Building Ownership Act] Title 63B, Chapter 1, Part 3, State Building Ownership
             63869      Authority Act, may issue or execute obligations to provide up to $10,000,000 for the

             63870      acquisition of real property or any interests in real property for state, county, or municipal
             63871      transportation corridors as provided in Section 72-2-117 ; and
             63872          (2) revenues of the Transportation Corridor Preservation Revolving Loan Fund be used
             63873      as the primary revenue source for the repayment of any obligation created under authority of
             63874      this section.
             63875          Section 1259. Section 63B-8-102 is amended to read:
             63876           63B-8-102. Maximum amount -- Projects authorized.
             63877          (1) The total amount of bonds issued under this part may not exceed $48,500,000.
             63878          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             63879      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             63880      Subsection (2).
             63881          (b) These costs may include the cost of acquiring land, interests in land, easements and
             63882      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             63883      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             63884      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             63885      covered by construction of the projects plus a period of six months after the end of the
             63886      construction period, and all related engineering, architectural, and legal fees.
             63887          (c) For the division, proceeds shall be provided for the following:
             63888          PROJECT                    AMOUNT         ESTIMATED
             63889          DESCRIPTION                FUNDED     OPERATIONS AND
             63890                                              MAINTENANCE
             63891          Southern Utah University -            $2,493,200            $447,744
             63892              Physical Education Building
             63893          Utah Valley State College -            $29,000,000            $721,875
             63894              Information Sciences Building
             63895          University of Utah -                 $7,268,500            $140,217
             63896              Cowles Building Renovation
             63897          Vernal District Court                $4,539,500            $149,989

             63898          Salt Lake Community College -        $4,200,000            $281,784
             63899              Applied Education Center
             63900          TOTAL CAPITAL AND            $47,501,200
             63901          ECONOMIC DEVELOPMENT
             63902          (d) For purposes of this section, operations and maintenance costs:
             63903          (i) are estimates only;
             63904          (ii) may include any operations and maintenance costs already funded in existing agency
             63905      budgets; and
             63906          (iii) are not commitments by this Legislature or future Legislatures to fund those
             63907      operations and maintenance costs.
             63908          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             63909      constitute a limitation on the amount that may be expended for any project.
             63910          (b) The board may revise these estimates and redistribute the amount estimated for a
             63911      project among the projects authorized.
             63912          (c) The commission, by resolution and in consultation with the board, may delete one or
             63913      more projects from this list if the inclusion of that project or those projects in the list could be
             63914      construed to violate state law or federal law or regulation.
             63915          (4) (a) The division may enter into agreements related to these projects before the
             63916      receipt of proceeds of bonds issued under this chapter.
             63917          (b) The division shall make those expenditures from unexpended and unencumbered
             63918      building funds already appropriated to the Capital Projects Fund.
             63919          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             63920      of bonds issued under this chapter.
             63921          (d) The commission may, by resolution, make any statement of intent relating to that
             63922      reimbursement that is necessary or desirable to comply with federal tax law.
             63923          (5) (a) For those projects for which only partial funding is provided in Subsection (2), it
             63924      is the intent of the Legislature that the balance necessary to complete the projects be addressed
             63925      by future Legislatures, either through appropriations or through the issuance or sale of bonds.

             63926          (b) For those phased projects, the division may enter into contracts for amounts not to
             63927      exceed the anticipated full project funding but may not allow work to be performed on those
             63928      contracts in excess of the funding already authorized by the Legislature.
             63929          (c) Those contracts shall contain a provision for termination of the contract for the
             63930      convenience of the state as required by Section [ 63-56-601 ] 63G-6-601 .
             63931          (d) It is also the intent of the Legislature that this authorization to the division does not
             63932      bind future Legislatures to fund projects initiated from this authorization.
             63933          Section 1260. Section 63B-8-105 is amended to read:
             63934           63B-8-105. Terms and conditions of sale -- Plan of financing -- Signatures --
             63935      Replacement -- Registration -- Federal rebate.
             63936          (1) In the issuance of bonds, the commission may determine by resolution:
             63937          (a) the manner of sale, including public or private sale;
             63938          (b) the terms and conditions of sale, including price, whether at, below, or above face
             63939      value;
             63940          (c) denominations;
             63941          (d) form;
             63942          (e) manner of execution;
             63943          (f) manner of authentication;
             63944          (g) place and medium of purchase;
             63945          (h) redemption terms; and
             63946          (i) other provisions and details it considers appropriate.
             63947          (2) The commission may by resolution adopt a plan of financing, which may include
             63948      terms and conditions of arrangements entered into by the commission on behalf of the state with
             63949      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             63950      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             63951      including payment from any legally available source of fees, charges, or other amounts coming
             63952      due under the agreements entered into by the commission.
             63953          (3) (a) Any signature of a public official authorized by resolution of the commission to

             63954      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             63955      otherwise placed on the bonds.
             63956          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             63957      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             63958      authentication agent.
             63959          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             63960      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             63961          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             63962      placed on the bonds.
             63963          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             63964      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             63965      or larger denominations.
             63966          (b) Bonds in changed denominations shall:
             63967          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             63968      manner that prevents the duplication of interest; and
             63969          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             63970      practicable in the form of the original bonds.
             63971          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             63972      entry form under which the right to principal and interest may be transferred only through a
             63973      book entry.
             63974          (b) The commission may provide for the services and payment for the services of one or
             63975      more financial institutions or other entities or persons, or nominees, within or outside the state,
             63976      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             63977      functions, exchange, and payment of the bonds.
             63978          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             63979      persons to whom payment with respect to the obligations are made, are private records as
             63980      provided in Section [ 63-2-302 ] 63G-2-302 or protected records as provided in Section
             63981      [ 63-2-304 ] 63G-2-305 .

             63982          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             63983      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             63984      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             63985      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             63986      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             63987          (6) The commission may:
             63988          (a) by resolution, provide for payment to the United States of whatever amounts are
             63989      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             63990      and
             63991          (b) enter into agreements with financial and other institutions and attorneys to provide
             63992      for:
             63993          (i) the calculation, holding, and payment of those amounts; and
             63994          (ii) payment from any legally available source of fees, charges, or other amounts coming
             63995      due under any agreements entered into by the commission.
             63996          Section 1261. Section 63B-8-205 is amended to read:
             63997           63B-8-205. Terms and conditions of sale -- Plan of financing -- Signatures --
             63998      Replacement -- Registration -- Federal rebate.
             63999          (1) In the issuance of bonds, the commission may determine by resolution:
             64000          (a) the manner of sale, including public or private sale;
             64001          (b) the terms and conditions of sale, including price, whether at, below, or above face
             64002      value;
             64003          (c) denominations;
             64004          (d) form;
             64005          (e) manner of execution;
             64006          (f) manner of authentication;
             64007          (g) place and medium of purchase;
             64008          (h) redemption terms; and
             64009          (i) other provisions and details it considers appropriate.

             64010          (2) The commission may, by resolution, adopt a plan of financing, which may include
             64011      terms and conditions of arrangements entered into by the commission on behalf of the state with
             64012      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             64013      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             64014      including payment from any legally available source of fees, charges, or other amounts coming
             64015      due under the agreements entered into by the commission.
             64016          (3) (a) Any signature of a public official authorized by resolution of the commission to
             64017      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             64018      otherwise placed on the bonds.
             64019          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             64020      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             64021      authentication agent.
             64022          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             64023      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             64024          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             64025      placed on the bonds.
             64026          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             64027      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             64028      or larger denominations.
             64029          (b) Bonds in changed denominations shall:
             64030          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             64031      manner that prevents the duplication of interest; and
             64032          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             64033      practicable in the form of the original bonds.
             64034          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             64035      entry form under which the right to principal and interest may be transferred only through a
             64036      book entry.
             64037          (b) The commission may provide for the services and payment for the services of one or

             64038      more financial institutions or other entities or persons, or nominees, within or outside the state,
             64039      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             64040      functions, exchange, and payment of the bonds.
             64041          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             64042      persons to whom payment with respect to the obligations is made, are private records as
             64043      provided in Section [ 63-2-302 ] 63G-2-302 , or protected records as provided in Section
             64044      [ 63-2-304 ] 63G-2-305 .
             64045          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             64046      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             64047      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             64048      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             64049      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             64050          (6) The commission may:
             64051          (a) by resolution, provide for payment to the United States of whatever amounts are
             64052      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             64053      and
             64054          (b) enter into agreements with financial and other institutions and attorneys to provide
             64055      for:
             64056          (i) the calculation, holding, and payment of those amounts; and
             64057          (ii) payment from any legally available source of fees, charges, or other amounts coming
             64058      due under any agreements entered into by the commission.
             64059          Section 1262. Section 63B-8-402 is amended to read:
             64060           63B-8-402. Maximum amount -- Projects authorized.
             64061          (1) The total amount of bonds issued under this part may not exceed $7,400,000.
             64062          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             64063      funds to pay all or part of the cost of acquiring and constructing the project listed in this
             64064      Subsection (2).
             64065          (b) These costs may include the cost of acquiring land, interests in land, easements and

             64066      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             64067      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             64068      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             64069      covered by construction of the projects plus a period of six months after the end of the
             64070      construction period, and all related engineering, architectural, and legal fees.
             64071          (c) For the division, proceeds shall be provided for the following:
             64072          PROJECT                 AMOUNT            ESTIMATED
             64073          DESCRIPTION            FUNDED         OPERATIONS AND
             64074                                              MAINTENANCE
             64075          State Hospital - Rampton II        $7,000,000            $462,000
             64076          (d) For purposes of this section, operations and maintenance costs:
             64077          (i) are estimates only;
             64078          (ii) may include any operations and maintenance costs already funded in existing agency
             64079      budgets; and
             64080          (iii) are not commitments by this Legislature or future Legislatures to fund those
             64081      operations and maintenance costs.
             64082          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             64083      constitute a limitation on the amount that may be expended for any project.
             64084          (b) The board may revise these estimates and redistribute the amount estimated for a
             64085      project among the projects authorized.
             64086          (c) The commission, by resolution and in consultation with the board, may delete one or
             64087      more projects from this list if the inclusion of that project or those projects in the list could be
             64088      construed to violate state law or federal law or regulation.
             64089          (4) (a) The division may enter into agreements related to these projects before the
             64090      receipt of proceeds of bonds issued under this chapter.
             64091          (b) The division shall make those expenditures from unexpended and unencumbered
             64092      building funds already appropriated to the Capital Projects Fund.
             64093          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds

             64094      of bonds issued under this chapter.
             64095          (d) The commission may, by resolution, make any statement of intent relating to that
             64096      reimbursement that is necessary or desirable to comply with federal tax law.
             64097          (5) (a) For those projects for which only partial funding is provided in Subsection (2), it
             64098      is the intent of the Legislature that the balance necessary to complete the projects be addressed
             64099      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             64100          (b) For those phased projects, the division may enter into contracts for amounts not to
             64101      exceed the anticipated full project funding but may not allow work to be performed on those
             64102      contracts in excess of the funding already authorized by the Legislature.
             64103          (c) Those contracts shall contain a provision for termination of the contract for the
             64104      convenience of the state as required by Section [ 63-56-601 ] 63G-6-601 .
             64105          (d) It is also the intent of the Legislature that this authorization to the division does not
             64106      bind future Legislatures to fund projects initiated from this authorization.
             64107          Section 1263. Section 63B-8-405 is amended to read:
             64108           63B-8-405. Terms and conditions of sale -- Plan of financing -- Signatures --
             64109      Replacement -- Registration -- Federal rebate.
             64110          (1) In the issuance of bonds, the commission may determine by resolution:
             64111          (a) the manner of sale, including public or private sale;
             64112          (b) the terms and conditions of sale, including price, whether at, below, or above face
             64113      value;
             64114          (c) denominations;
             64115          (d) form;
             64116          (e) manner of execution;
             64117          (f) manner of authentication;
             64118          (g) place and medium of purchase;
             64119          (h) redemption terms; and
             64120          (i) other provisions and details it considers appropriate.
             64121          (2) The commission may by resolution adopt a plan of financing, which may include

             64122      terms and conditions of arrangements entered into by the commission on behalf of the state with
             64123      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             64124      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             64125      including payment from any legally available source of fees, charges, or other amounts coming
             64126      due under the agreements entered into by the commission.
             64127          (3) (a) Any signature of a public official authorized by resolution of the commission to
             64128      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             64129      otherwise placed on the bonds.
             64130          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             64131      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             64132      authentication agent.
             64133          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             64134      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             64135          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             64136      placed on the bonds.
             64137          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             64138      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             64139      or larger denominations.
             64140          (b) Bonds in changed denominations shall:
             64141          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             64142      manner that prevents the duplication of interest; and
             64143          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             64144      practicable in the form of the original bonds.
             64145          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             64146      entry form under which the right to principal and interest may be transferred only through a
             64147      book entry.
             64148          (b) The commission may provide for the services and payment for the services of one or
             64149      more financial institutions or other entities or persons, or nominees, within or outside the state,

             64150      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             64151      functions, exchange, and payment of the bonds.
             64152          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             64153      persons to whom payment with respect to the obligations are made, are private records as
             64154      provided in Section [ 63-2-302 ] 63G-2-302 or protected records as provided in Section
             64155      [ 63-2-304 ] 63G-2-305 .
             64156          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             64157      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             64158      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             64159      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             64160      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             64161          (6) The commission may:
             64162          (a) by resolution, provide for payment to the United States of whatever amounts are
             64163      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             64164      and
             64165          (b) enter into agreements with financial and other institutions and attorneys to provide
             64166      for:
             64167          (i) the calculation, holding, and payment of those amounts; and
             64168          (ii) payment from any legally available source of fees, charges, or other amounts coming
             64169      due under any agreements entered into by the commission.
             64170          Section 1264. Section 63B-8-501 is amended to read:
             64171           63B-8-501. Revenue bond authorizations.
             64172          (1) (a) It is the intent of the Legislature that the State Building Ownership Authority,
             64173      under the authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter
             64174      1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
             64175      into or arrange for a lease purchase agreement in which participation interests may be created,
             64176      to provide up to $2,510,000 for the acquisition of the Department of Human Services Office in
             64177      Brigham City, together with additional amounts necessary to pay costs of issuance, pay

             64178      capitalized interest, and fund any debt service reserve requirements.
             64179          (b) It is the intent of the Legislature that amounts representing existing budgets for rent
             64180      for the Department of Human Services be used as the primary revenue source for the
             64181      Department of Human Services to pay the state for repayment of any obligation created under
             64182      authority of this Subsection (1).
             64183          (2) (a) It is the intent of the Legislature that the State Building Ownership Authority,
             64184      under the authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter
             64185      1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
             64186      into or arrange for a lease purchase agreement in which participation interests may be created,
             64187      to provide up to $6,518,000 for the construction of an office building to house the Department
             64188      of Corrections and the Board of Pardons and Parole Administration, together with additional
             64189      amounts necessary to pay costs of issuance, pay capitalized interest, and fund any debt service
             64190      reserve requirements.
             64191          (b) It is the intent of the Legislature that amounts representing existing budgets for rent
             64192      for the Department of Corrections and the Board of Pardons and Parole Administration be used
             64193      as the primary revenue source for the Department of Corrections and the Board of Pardons and
             64194      Parole Administration to pay the state for repayment of any obligation created under authority
             64195      of this Subsection (2).
             64196          Section 1265. Section 63B-9-102 is amended to read:
             64197           63B-9-102. State Building Ownership Authority revenue bond authorizations.
             64198          (1) It is the intent of the Legislature that the State Building Ownership Authority, under
             64199      the authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter 1, Part
             64200      3, State Building Ownership Authority Act, may issue or execute obligations, or enter into or
             64201      arrange for a lease purchase agreement in which participation interests may be created, to
             64202      provide up to $10,500,000 for the construction of a multipurpose building for the state fair
             64203      park, together with additional amounts necessary to:
             64204          (a) pay costs of issuance;
             64205          (b) pay capitalized interest; and

             64206          (c) fund any debt service reserve requirements.
             64207          (2) The State Building Ownership Authority shall work cooperatively with the board of
             64208      directors of the Utah State Fair Corporation to seek out the most effective and prudent lease
             64209      purchase plan available.
             64210          Section 1266. Section 63B-9-103 is amended to read:
             64211           63B-9-103. Other capital facility authorizations and intent language.
             64212          (1) It is the intent of the Legislature that:
             64213          (a) Utah State University use institutional funds to plan, design, and construct a
             64214      renovation and expansion of the Edith Bowen School under the direction of the director of the
             64215      Division of Facilities Construction and Management unless supervisory authority has been
             64216      delegated;
             64217          (b) no state funds be used for any portion of this project; and
             64218          (c) the university may request state funds for operations and maintenance to the extent
             64219      that the university is able to demonstrate to the Board of Regents that the facility meets
             64220      approved academic and training purposes under Board of Regents policy R710.
             64221          (2) It is the intent of the Legislature that:
             64222          (a) the University of Utah use institutional funds to plan, design, and construct a
             64223      College of Science Math Center under the direction of the director of the Division of Facilities
             64224      Construction and Management unless supervisory authority has been delegated;
             64225          (b) no state funds be used for any portion of this project; and
             64226          (c) the university may request state funds for operations and maintenance to the extent
             64227      that the university is able to demonstrate to the Board of Regents that the facility meets
             64228      approved academic and training purposes under Board of Regents policy R710.
             64229          (3) It is the intent of the Legislature that:
             64230          (a) the University of Utah use institutional funds to plan, design, and construct a
             64231      Burbidge Athletics and Academics Building under the direction of the director of the Division of
             64232      Facilities Construction and Management unless supervisory authority has been delegated;
             64233          (b) no state funds be used for any portion of this project; and

             64234          (c) the university may not request state funds for operations and maintenance.
             64235          (4) It is the intent of the Legislature that:
             64236          (a) the University of Utah use institutional funds to plan, design, and construct an
             64237      expansion to the bookstore under the direction of the director of the Division of Facilities
             64238      Construction and Management unless supervisory authority has been delegated;
             64239          (b) no state funds be used for any portion of this project; and
             64240          (c) the university may not request state funds for operations and maintenance.
             64241          (5) It is the intent of the Legislature that:
             64242          (a) the University of Utah use institutional funds to plan, design, and construct a Health
             64243      Sciences/Basic Sciences Building under the direction of the director of the Division of Facilities
             64244      Construction and Management unless supervisory authority has been delegated;
             64245          (b) no state funds be used for any portion of this project; and
             64246          (c) the university may request state funds for operations and maintenance to the extent
             64247      that the university is able to demonstrate to the Board of Regents that the facility meets
             64248      approved academic and training purposes under Board of Regents policy R710.
             64249          (6) It is the intent of the Legislature that:
             64250          (a) Weber State University use institutional funds to plan, design, and construct an
             64251      expansion to the stadium under the direction of the director of the Division of Facilities
             64252      Construction and Management unless supervisory authority has been delegated;
             64253          (b) no state funds be used for any portion of this project; and
             64254          (c) the university may not request state funds for operations and maintenance.
             64255          (7) It is the intent of the Legislature that:
             64256          (a) Utah Valley State College use institutional funds to plan, design, and construct a
             64257      baseball stadium under the direction of the director of the Division of Facilities Construction
             64258      and Management unless supervisory authority has been delegated;
             64259          (b) no state funds be used for any portion of this project; and
             64260          (c) the college may not request state funds for operations and maintenance.
             64261          (8) It is the intent of the Legislature that:

             64262          (a) Southern Utah University use institutional funds to plan, design, and construct a
             64263      weight training room under the direction of the director of the Division of Facilities
             64264      Construction and Management unless supervisory authority has been delegated;
             64265          (b) no state funds be used for any portion of this project; and
             64266          (c) the university may not request state funds for operations and maintenance.
             64267          (9) It is the intent of the Legislature that:
             64268          (a) Snow College may lease land at the Snow College Richfield campus to a private
             64269      developer for the construction and operation of student housing;
             64270          (b) the oversight and inspection of the construction comply with Section 63A-5-206 ;
             64271          (c) no state funds be used for any portion of this project; and
             64272          (d) the college may not request state funds for operations and maintenance.
             64273          (10) It is the intent of the Legislature that:
             64274          (a) Salt Lake Community College may lease land at the Jordan campus to Jordan
             64275      School District for the construction and operation of an Applied Technology Education Center;
             64276          (b) the oversight and inspection of the construction comply with Section 63A-5-206 ;
             64277          (c) no state funds be used for any portion of this project; and
             64278          (d) the college may not request state funds for operations and maintenance.
             64279          (11) It is the intent of the Legislature that:
             64280          (a) the Department of Transportation exchange its maintenance station at Kimball
             64281      Junction for property located near Highway 40 in Summit County; and
             64282          (b) the Department of Transportation use federal funds, rent paid by the Salt Lake
             64283      Organizing Committee for the use of the maintenance station, and any net proceeds resulting
             64284      from the exchange of property to construct a replacement facility under the direction of the
             64285      director of the Division of Facilities Construction and Management unless supervisory authority
             64286      has been delegated.
             64287          (12) It is the intent of the Legislature that:
             64288          (a) the Department of Transportation sell surplus property in Utah County;
             64289          (b) the Department of Transportation use funds from that sale to remodel existing space

             64290      and add an addition to the Region 3 Complex; and
             64291          (c) the project cost not exceed the funds received through sale of property.
             64292          (13) It is the intent of the Legislature that the Department of Workforce Services use
             64293      proceeds from property sales to purchase additional property adjacent to its state-owned facility
             64294      in Logan.
             64295          (14) (a) It is the intent of the Legislature that, because only partial funding is provided
             64296      for the Heat Plant/Infrastructure Project at Utah State University, the balance necessary to
             64297      complete this project be addressed by future Legislatures, either through appropriations or
             64298      through the issuance of bonds.
             64299          (b) (i) In compliance with Section 63A-5-207 , the division may enter into contracts for
             64300      amounts not to exceed the anticipated full project funding but may not allow work to be
             64301      performed on those contracts in excess of the funding already authorized by the Legislature.
             64302          (ii) Those contracts shall contain a provision for termination of the contract for the
             64303      convenience of the state as required by Section [ 63-56-601 ] 63G-6-601 .
             64304          (c) It is also the intent of the Legislature that this authorization to the division does not
             64305      bind future Legislatures to fund the Heat Plant/Infrastructure Project at Utah State University.
             64306          Section 1267. Section 63B-9-205 is amended to read:
             64307           63B-9-205. Terms and conditions of sale -- Plan of financing -- Signatures --
             64308      Replacement -- Registration -- Federal rebate.
             64309          (1) In the issuance of bonds, the commission may determine by resolution:
             64310          (a) the manner of sale, including public or private sale;
             64311          (b) the terms and conditions of sale, including price, whether at, below, or above face
             64312      value;
             64313          (c) denominations;
             64314          (d) form;
             64315          (e) manner of execution;
             64316          (f) manner of authentication;
             64317          (g) place and medium of purchase;

             64318          (h) redemption terms; and
             64319          (i) other provisions and details it considers appropriate.
             64320          (2) The commission may, by resolution, adopt a plan of financing, which may include
             64321      terms and conditions of arrangements entered into by the commission on behalf of the state with
             64322      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             64323      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             64324      including payment from any legally available source of fees, charges, or other amounts coming
             64325      due under the agreements entered into by the commission.
             64326          (3) (a) Any signature of a public official authorized by resolution of the commission to
             64327      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             64328      otherwise placed on the bonds.
             64329          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             64330      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             64331      authentication agent.
             64332          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             64333      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             64334          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             64335      placed on the bonds.
             64336          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             64337      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             64338      or larger denominations.
             64339          (b) Bonds in changed denominations shall:
             64340          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             64341      manner that prevents the duplication of interest; and
             64342          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             64343      practicable in the form of the original bonds.
             64344          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             64345      entry form under which the right to principal and interest may be transferred only through a

             64346      book entry.
             64347          (b) The commission may provide for the services and payment for the services of one or
             64348      more financial institutions or other entities or persons, or nominees, within or outside the state,
             64349      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             64350      functions, exchange, and payment of the bonds.
             64351          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             64352      persons to whom payment with respect to the obligations is made, are private records as
             64353      provided in Section [ 63-2-302 ] 63G-2-302 , or protected records as provided in Section
             64354      [ 63-2-304 ] 63G-2-305 .
             64355          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             64356      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             64357      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             64358      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             64359      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             64360          (6) The commission may:
             64361          (a) by resolution, provide for payment to the United States of whatever amounts are
             64362      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             64363      and
             64364          (b) enter into agreements with financial and other institutions and attorneys to provide
             64365      for:
             64366          (i) the calculation, holding, and payment of those amounts; and
             64367          (ii) payment from any legally available source of fees, charges, or other amounts coming
             64368      due under any agreements entered into by the commission.
             64369          Section 1268. Section 63B-10-105 is amended to read:
             64370           63B-10-105. Terms and conditions of sale -- Plan of financing -- Signatures --
             64371      Replacement -- Registration -- Federal rebate.
             64372          (1) In the issuance of bonds, the commission may determine by resolution:
             64373          (a) the manner of sale, including public or private sale;

             64374          (b) the terms and conditions of sale, including price, whether at, below, or above face
             64375      value;
             64376          (c) denominations;
             64377          (d) form;
             64378          (e) manner of execution;
             64379          (f) manner of authentication;
             64380          (g) place and medium of purchase;
             64381          (h) redemption terms; and
             64382          (i) other provisions and details it considers appropriate.
             64383          (2) The commission may, by resolution, adopt a plan of financing, which may include
             64384      terms and conditions of arrangements entered into by the commission on behalf of the state with
             64385      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             64386      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             64387      including payment from any legally available source of fees, charges, or other amounts coming
             64388      due under the agreements entered into by the commission.
             64389          (3) (a) Any signature of a public official authorized by resolution of the commission to
             64390      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             64391      otherwise placed on the bonds.
             64392          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             64393      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             64394      authentication agent.
             64395          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             64396      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             64397          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             64398      placed on the bonds.
             64399          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             64400      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             64401      or larger denominations.

             64402          (b) Bonds in changed denominations shall:
             64403          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             64404      manner that prevents the duplication of interest; and
             64405          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             64406      practicable in the form of the original bonds.
             64407          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             64408      entry form under which the right to principal and interest may be transferred only through a
             64409      book entry.
             64410          (b) The commission may provide for the services and payment for the services of one or
             64411      more financial institutions or other entities or persons, or nominees, within or outside the state,
             64412      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             64413      functions, exchange, and payment of the bonds.
             64414          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             64415      persons to whom payment with respect to the obligations is made, are private records as
             64416      provided in Section [ 63-2-302 ] 63G-2-302 , or protected records as provided in Section
             64417      [ 63-2-304 ] 63G-2-305 .
             64418          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             64419      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             64420      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             64421      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             64422      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             64423          (6) The commission may:
             64424          (a) by resolution, provide for payment to the United States of whatever amounts are
             64425      necessary to comply with Section 148(f) of the Internal Revenue Code of 1986, as amended;
             64426      and
             64427          (b) enter into agreements with financial and other institutions and attorneys to provide
             64428      for:
             64429          (i) the calculation, holding, and payment of those amounts; and

             64430          (ii) payment from any legally available source of fees, charges, or other amounts coming
             64431      due under any agreements entered into by the commission.
             64432          Section 1269. Section 63B-10-301 is amended to read:
             64433           63B-10-301. Revenue bond authorizations.
             64434          (1) (a) It is the intent of the Legislature that the State Building Ownership Authority,
             64435      under the authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter
             64436      1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
             64437      into or arrange for a lease purchase agreement in which participation interests may be created,
             64438      to provide up to $8,281,000 for the construction of an expansion of the Department of
             64439      Alcoholic Beverage Control warehouse together with additional amounts necessary to pay costs
             64440      of issuance, pay capitalized interest, and fund any debt service reserve requirements.
             64441          (b) It is the intent of the Legislature that enhanced revenues of the Department of
             64442      Alcoholic Beverage Control be used as the primary revenue source for repayment of any
             64443      obligation created under authority of this Subsection (1).
             64444          (2) (a) It is the intent of the Legislature that the State Building Ownership Authority,
             64445      under the authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter
             64446      1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
             64447      into or arrange for a lease purchase agreement in which participation interests may be created,
             64448      to provide up to $957,100 for the acquisition of a site and construction of a store in the western
             64449      part of Salt Lake County for the Department of Alcoholic Beverage Control together with
             64450      additional amounts necessary to pay costs of issuance, pay capitalized interest, and fund any
             64451      debt service reserve requirements.
             64452          (b) It is the intent of the Legislature that enhanced revenues of the Department of
             64453      Alcoholic Beverage Control be used as the primary revenue source for repayment of any
             64454      obligation created under authority of this Subsection (2).
             64455          (3) (a) It is the intent of the Legislature that the State Building Ownership Authority,
             64456      under the authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter
             64457      1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter

             64458      into or arrange for a lease purchase agreement in which participation interests may be created,
             64459      to provide up to $1,497,700 for the acquisition of a site and construction of a store in the
             64460      southern part of Salt Lake County for the Department of Alcoholic Beverage Control together
             64461      with additional amounts necessary to pay costs of issuance, pay capitalized interest, and fund
             64462      any debt service reserve requirements.
             64463          (b) It is the intent of the Legislature that enhanced revenues of the Department of
             64464      Alcoholic Beverage Control be used as the primary revenue source for repayment of any
             64465      obligation created under authority of this Subsection (3).
             64466          (4) (a) It is the intent of the Legislature that the State Building Ownership Authority,
             64467      under the authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter
             64468      1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
             64469      into or arrange for a lease purchase agreement in which participation interests may be created,
             64470      to provide up to $100,000,000 for the acquisition and construction of a cancer clinical research
             64471      hospital facility adjacent to the University of Utah Medical Center, together with additional
             64472      amounts necessary to pay costs of issuance, pay capitalized interest, and fund any debt service
             64473      reserve requirements.
             64474          (b) The State Building Ownership Authority shall work cooperatively with the Division
             64475      of Facilities Construction and Management and the University of Utah to seek out the most cost
             64476      effective and prudent lease purchase plan available.
             64477          (c) It is the intent of the Legislature that the University of Utah lease land to the State
             64478      Building Ownership Authority for the construction of a cancer clinical research hospital facility
             64479      adjacent to the University of Utah Medical Center.
             64480          (d) The anticipated revenue sources for repayment of any obligation created under
             64481      authority of this section are:
             64482          (i) the institutional funds of the University of Utah, including the University's annual
             64483      distribution of tobacco settlement funds from the state; and
             64484          (ii) donations from the Huntsman Cancer Foundation and other donors.
             64485          (e) By September 1 of each year of the existence of this revenue bond, the University of

             64486      Utah shall give an annual report regarding the status of the bond and the bond payments to the
             64487      Legislative Fiscal Analyst. This report shall be reviewed by the Higher Education
             64488      Appropriations Subcommittee and the Capital Facilities Appropriation Subcommittee.
             64489          (5) It is the intent of the Legislature that:
             64490          (a) the Board of Regents, on behalf of the University of Utah, issue, sell, and deliver
             64491      revenue bonds or other evidences of indebtedness of the University of Utah to borrow money
             64492      on the credit, revenues, and reserves of the University of Utah, other than appropriations of the
             64493      Legislature, to finance the cost of acquiring, constructing, furnishing, and equipping an
             64494      expansion of the University Hospital;
             64495          (b) University Hospital revenues be used as the primary revenue source for repayment
             64496      of any obligation created under authority of this section; and
             64497          (c) the bonds or other evidences of indebtedness authorized by this section may provide
             64498      up to $25,000,000, together with other amounts necessary to pay costs of issuance, pay
             64499      capitalized interest, and fund any debt service reserve requirements.
             64500          (6) It is the intent of the Legislature that:
             64501          (a) the Board of Regents, on behalf of Salt Lake Community College, issue, sell, and
             64502      deliver revenue bonds or other evidences of indebtedness of Salt Lake Community College to
             64503      borrow money on the credit, revenues, and reserves of Salt Lake Community College, other
             64504      than appropriations of the Legislature, to finance the cost of acquiring, constructing, furnishing,
             64505      and equipping the remodel of the cafeteria and expansion of the Student Center;
             64506          (b) student fees be used as the primary revenue source for repayment of any obligation
             64507      created under authority of this section; and
             64508          (c) the bonds or other evidences of indebtedness authorized by this section may provide
             64509      up to $6,000,000, together with other amounts necessary to pay costs of issuance, pay
             64510      capitalized interest, and fund any debt service reserve requirements.
             64511          (7) It is the intent of the Legislature that:
             64512          (a) the Board of Regents, on behalf of Dixie College, issue, sell, and deliver revenue
             64513      bonds or other evidences of indebtedness of Dixie College to borrow money on the credit,

             64514      revenues, and reserves of Dixie College, other than appropriations of the Legislature, to finance
             64515      the cost of acquiring, constructing, furnishing, and equipping an expansion of the Gardner
             64516      Student Center;
             64517          (b) student fees be used as the primary revenue source for repayment of any obligation
             64518      created under authority of this section; and
             64519          (c) the bonds or other evidences of indebtedness authorized by this section may provide
             64520      up to $1,500,000, together with other amounts necessary to pay costs of issuance, pay
             64521      capitalized interest, and fund any debt service reserve requirements.
             64522          Section 1270. Section 63B-10-302 is amended to read:
             64523           63B-10-302. Other revenue bond authorizations.
             64524          (1) It is the intent of the Legislature that the State Building Ownership Authority, under
             64525      the authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter 1, Part
             64526      3, State Building Ownership Authority Act, may issue or execute obligations to provide up to
             64527      $12,000,000 for the construction of a 36-hole golf course at Soldier Hollow in the Wasatch
             64528      Mountain State Park, including necessary facilities such as a clubhouse, restroom facilities, and
             64529      maintenance facilities, together with additional amounts necessary to:
             64530          (a) pay costs of issuance;
             64531          (b) pay capitalized interest; and
             64532          (c) fund any debt service reserve requirements.
             64533          (2) The State Building Ownership Authority shall work cooperatively with the Division
             64534      of Parks and Recreation in the design and construction of the golf course at Soldier Hollow.
             64535          Section 1271. Section 63B-11-105 is amended to read:
             64536           63B-11-105. Terms and conditions of sale -- Plan of financing -- Signatures --
             64537      Replacement -- Registration -- Federal rebate.
             64538          (1) In the issuance of bonds, the commission may determine by resolution:
             64539          (a) the manner of sale, including public or private sale;
             64540          (b) the terms and conditions of sale, including price, whether at, below, or above face
             64541      value;

             64542          (c) denominations;
             64543          (d) form;
             64544          (e) manner of execution;
             64545          (f) manner of authentication;
             64546          (g) place and medium of purchase;
             64547          (h) redemption terms; and
             64548          (i) other provisions and details it considers appropriate.
             64549          (2) The commission may, by resolution, adopt a plan of financing, which may include
             64550      terms and conditions of arrangements entered into by the commission on behalf of the state with
             64551      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             64552      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             64553      including payment from any legally available source of fees, charges, or other amounts coming
             64554      due under the agreements entered into by the commission.
             64555          (3) (a) Any signature of a public official authorized by resolution of the commission to
             64556      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             64557      otherwise placed on the bonds.
             64558          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             64559      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             64560      authentication agent.
             64561          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             64562      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             64563          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             64564      placed on the bonds.
             64565          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             64566      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             64567      or larger denominations.
             64568          (b) Bonds in changed denominations shall:
             64569          (i) be exchanged for the original bonds in like aggregate principal amounts and in a

             64570      manner that prevents the duplication of interest; and
             64571          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             64572      practicable in the form of the original bonds.
             64573          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             64574      entry form under which the right to principal and interest may be transferred only through a
             64575      book entry.
             64576          (b) The commission may provide for the services and payment for the services of one or
             64577      more financial institutions or other entities or persons, or nominees, within or outside the state,
             64578      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             64579      functions, exchange, and payment of the bonds.
             64580          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             64581      persons to whom payment with respect to the obligations is made, are private records as
             64582      provided in Section [ 63-2-302 ] 63G-2-302 or protected records as provided in Section
             64583      [ 63-2-304 ] 63G-2-305 .
             64584          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             64585      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             64586      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             64587      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             64588      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             64589          (6) The commission may:
             64590          (a) by resolution, provide for payment to the United States of whatever amounts are
             64591      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             64592      and
             64593          (b) enter into agreements with financial and other institutions and attorneys to provide
             64594      for:
             64595          (i) the calculation, holding, and payment of those amounts; and
             64596          (ii) payment from any legally available source of fees, charges, or other amounts coming
             64597      due under any agreements entered into by the commission.

             64598          Section 1272. Section 63B-11-202 is amended to read:
             64599           63B-11-202. Maximum amount -- Projects authorized.
             64600          (1) (a) The total amount of bonds issued under this part may not exceed $21,250,000.
             64601          (b) When Utah State University certifies to the commission that the university has
             64602      obtained reliable commitments, convertible to cash, of $5,000,000 or more in nonstate funds to
             64603      construct an addition to the new engineering building and demolish the existing engineering
             64604      classroom building, the commission may issue and sell general obligation bonds in a total
             64605      amount not to exceed $6,100,000.
             64606          (c) When the University of Utah certifies to the commission that the university has
             64607      obtained reliable commitments, convertible to cash, of $13,000,000 or more in nonstate funds to
             64608      construct a new engineering building, the commission may issue and sell general obligation
             64609      bonds in a total amount not to exceed $15,150,000.
             64610          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             64611      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             64612      Subsection (2).
             64613          (b) These costs may include the cost of acquiring land, interests in land, easements and
             64614      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             64615      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             64616      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             64617      covered by construction of the projects plus a period of six months after the end of the
             64618      construction period, and all related engineering, architectural, and legal fees.
             64619          (c) For the division, proceeds shall be provided for the following:
             64620      PROJECT            AMOUNT            ESTIMATED OPERATING
             64621      DESCRIPTION        FUNDED            AND MAINTENANCE COSTS
             64622      1. Utah State            $5,943,500            $425,000
             64623      University
             64624      Engineering Building
             64625      Renovation

             64626      2. University of        $15,000,000            $489,000
             64627      Utah New
             64628      Engineering Building
             64629      COSTS OF ISSUANCE    $306,500
             64630      TOTAL CAPITAL AND ECONOMIC DEVELOPMENT        $21,250,000
             64631          (d) For purposes of this section, operations and maintenance costs:
             64632          (i) are estimates only;
             64633          (ii) may include any operations and maintenance costs already funded in existing agency
             64634      budgets; and
             64635          (iii) are not commitments by this Legislature or future Legislatures to fund those
             64636      operations and maintenance costs.
             64637          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             64638      constitute a limitation on the amount that may be expended for any project.
             64639          (b) The board may revise these estimates and redistribute the amount estimated for a
             64640      project among the projects authorized.
             64641          (c) The commission, by resolution and in consultation with the board, may delete one or
             64642      more projects from this list if the inclusion of that project or those projects in the list could be
             64643      construed to violate state law or federal law or regulation.
             64644          (4) (a) The division may enter into agreements related to these projects before the
             64645      receipt of proceeds of bonds issued under this chapter.
             64646          (b) The division shall make those expenditures from unexpended and unencumbered
             64647      building funds already appropriated to the Capital Projects Fund.
             64648          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             64649      of bonds issued under this chapter.
             64650          (d) The commission may, by resolution, make any statement of intent relating to that
             64651      reimbursement that is necessary or desirable to comply with federal tax law.
             64652          (5) (a) For those projects for which only partial funding is provided in Subsection (2), it
             64653      is the intent of the Legislature that the balance necessary to complete the projects be addressed

             64654      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             64655          (b) For those phased projects, the division may enter into contracts for amounts not to
             64656      exceed the anticipated full project funding but may not allow work to be performed on those
             64657      contracts in excess of the funding already authorized by the Legislature.
             64658          (c) Those contracts shall contain a provision for termination of the contract for the
             64659      convenience of the state as required by Section [ 63-56-601 ] 63G-6-601 .
             64660          (d) It is also the intent of the Legislature that this authorization to the division does not
             64661      bind future Legislatures to fund projects initiated from this authorization.
             64662          Section 1273. Section 63B-11-205 is amended to read:
             64663           63B-11-205. Terms and conditions of sale -- Plan of financing -- Signatures --
             64664      Replacement -- Registration -- Federal rebate.
             64665          (1) In the issuance of bonds, the commission may determine by resolution:
             64666          (a) the manner of sale, including public or private sale;
             64667          (b) the terms and conditions of sale, including price, whether at, below, or above face
             64668      value;
             64669          (c) denominations;
             64670          (d) form;
             64671          (e) manner of execution;
             64672          (f) manner of authentication;
             64673          (g) place and medium of purchase;
             64674          (h) redemption terms; and
             64675          (i) other provisions and details it considers appropriate.
             64676          (2) The commission may, by resolution, adopt a plan of financing, which may include
             64677      terms and conditions of arrangements entered into by the commission on behalf of the state with
             64678      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             64679      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             64680      including payment from any legally available source of fees, charges, or other amounts coming
             64681      due under the agreements entered into by the commission.

             64682          (3) (a) Any signature of a public official authorized by resolution of the commission to
             64683      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             64684      otherwise placed on the bonds.
             64685          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             64686      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             64687      authentication agent.
             64688          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             64689      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             64690          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             64691      placed on the bonds.
             64692          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             64693      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             64694      or larger denominations.
             64695          (b) Bonds in changed denominations shall:
             64696          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             64697      manner that prevents the duplication of interest; and
             64698          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             64699      practicable in the form of the original bonds.
             64700          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             64701      entry form under which the right to principal and interest may be transferred only through a
             64702      book entry.
             64703          (b) The commission may provide for the services and payment for the services of one or
             64704      more financial institutions or other entities or persons, or nominees, within or outside the state,
             64705      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             64706      functions, exchange, and payment of the bonds.
             64707          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             64708      persons to whom payment with respect to the obligations is made, are private records as
             64709      provided in Section [ 63-2-302 ] 63G-2-302 or protected records as provided in Section

             64710      [ 63-2-304 ] 63G-2-305 .
             64711          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             64712      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             64713      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             64714      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             64715      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             64716          (6) The commission may:
             64717          (a) by resolution, provide for payment to the United States of whatever amounts are
             64718      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             64719      and
             64720          (b) enter into agreements with financial and other institutions and attorneys to provide
             64721      for:
             64722          (i) the calculation, holding, and payment of those amounts; and
             64723          (ii) payment from any legally available source of fees, charges, or other amounts coming
             64724      due under any agreements entered into by the commission.
             64725          Section 1274. Section 63B-11-305 is amended to read:
             64726           63B-11-305. Terms and conditions of sale -- Plan of financing -- Signatures --
             64727      Replacement -- Registration -- Federal rebate.
             64728          (1) In the issuance of bonds, the commission may determine by resolution:
             64729          (a) the manner of sale, including public or private sale;
             64730          (b) the terms and conditions of sale, including price, whether at, below, or above face
             64731      value;
             64732          (c) denominations;
             64733          (d) form;
             64734          (e) manner of execution;
             64735          (f) manner of authentication;
             64736          (g) place and medium of purchase;
             64737          (h) redemption terms; and

             64738          (i) other provisions and details it considers appropriate.
             64739          (2) The commission may, by resolution, adopt a plan of financing, which may include
             64740      terms and conditions of arrangements entered into by the commission on behalf of the state with
             64741      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             64742      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             64743      including payment from any legally available source of fees, charges, or other amounts coming
             64744      due under the agreements entered into by the commission.
             64745          (3) (a) Any signature of a public official authorized by resolution of the commission to
             64746      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             64747      otherwise placed on the bonds.
             64748          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             64749      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             64750      authentication agent.
             64751          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             64752      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             64753          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             64754      placed on the bonds.
             64755          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             64756      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             64757      or larger denominations.
             64758          (b) Bonds in changed denominations shall:
             64759          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             64760      manner that prevents the duplication of interest; and
             64761          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             64762      practicable in the form of the original bonds.
             64763          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             64764      entry form under which the right to principal and interest may be transferred only through a
             64765      book entry.

             64766          (b) The commission may provide for the services and payment for the services of one or
             64767      more financial institutions or other entities or persons, or nominees, within or outside the state,
             64768      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             64769      functions, exchange, and payment of the bonds.
             64770          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             64771      persons to whom payment with respect to the obligations is made, are private records as
             64772      provided in Section [ 63-2-302 ] 63G-2-302 , or protected records as provided in Section
             64773      [ 63-2-304 ] 63G-2-305 .
             64774          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             64775      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             64776      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             64777      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             64778      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             64779          (6) The commission may:
             64780          (a) by resolution, provide for payment to the United States of whatever amounts are
             64781      necessary to comply with Section 148(f) of the Internal Revenue Code of 1986, as amended;
             64782      and
             64783          (b) enter into agreements with financial and other institutions and attorneys to provide
             64784      for:
             64785          (i) the calculation, holding, and payment of those amounts; and
             64786          (ii) payment from any legally available source of fees, charges, or other amounts coming
             64787      due under any agreements entered into by the commission.
             64788          Section 1275. Section 63B-11-505 is amended to read:
             64789           63B-11-505. Terms and conditions of sale -- Plan of financing -- Signatures --
             64790      Replacement -- Registration -- Federal rebate.
             64791          (1) In the issuance of bonds, the commission may determine by resolution:
             64792          (a) the manner of sale, including public or private sale;
             64793          (b) the terms and conditions of sale, including price, whether at, below, or above face

             64794      value;
             64795          (c) denominations;
             64796          (d) form;
             64797          (e) manner of execution;
             64798          (f) manner of authentication;
             64799          (g) place and medium of purchase;
             64800          (h) redemption terms; and
             64801          (i) other provisions and details it considers appropriate.
             64802          (2) The commission may, by resolution, adopt a plan of financing, which may include
             64803      terms and conditions of arrangements entered into by the commission on behalf of the state with
             64804      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             64805      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds,
             64806      including payment from any legally available source of fees, charges, or other amounts coming
             64807      due under the agreements entered into by the commission.
             64808          (3) (a) Any signature of a public official authorized by resolution of the commission to
             64809      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             64810      otherwise placed on the bonds.
             64811          (b) If all signatures of public officials on the bonds are facsimile signatures, provision
             64812      shall be made for a manual authenticating signature on the bonds by or on behalf of a designated
             64813      authentication agent.
             64814          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             64815      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             64816          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise
             64817      placed on the bonds.
             64818          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             64819      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller
             64820      or larger denominations.
             64821          (b) Bonds in changed denominations shall:

             64822          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             64823      manner that prevents the duplication of interest; and
             64824          (ii) bear interest at the same rate, mature on the same date, and be as nearly as
             64825      practicable in the form of the original bonds.
             64826          (5) (a) Bonds may be registered as to both principal and interest or may be in a book
             64827      entry form under which the right to principal and interest may be transferred only through a
             64828      book entry.
             64829          (b) The commission may provide for the services and payment for the services of one or
             64830      more financial institutions or other entities or persons, or nominees, within or outside the state,
             64831      for the authentication, registration, transfer, including record, bookkeeping, or book entry
             64832      functions, exchange, and payment of the bonds.
             64833          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             64834      persons to whom payment with respect to the obligations is made, are private records as
             64835      provided in Section [ 63-2-302 ] 63G-2-302 , or protected records as provided in Section
             64836      [ 63-2-304 ] 63G-2-305 .
             64837          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             64838      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             64839      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature
             64840      relating to the registration of obligations enacted to meet the requirements of Section 149 of the
             64841      Internal Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             64842          (6) The commission may:
             64843          (a) by resolution, provide for payment to the United States of whatever amounts are
             64844      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended;
             64845      and
             64846          (b) enter into agreements with financial and other institutions and attorneys to provide
             64847      for:
             64848          (i) the calculation, holding, and payment of those amounts; and
             64849          (ii) payment from any legally available source of fees, charges, or other amounts coming

             64850      due under any agreements entered into by the commission.
             64851          Section 1276. Section 63B-11-701 is amended to read:
             64852           63B-11-701. Revenue bond authorizations.
             64853          (1) It is the intent of the Legislature that:
             64854          (a) the Board of Regents, on behalf of the University of Utah, issue, sell, and deliver
             64855      revenue bonds or other evidences of indebtedness of the University of Utah to borrow money
             64856      on the credit, revenues, and reserves of the University of Utah, other than appropriations of the
             64857      Legislature, to refinance the cost of acquiring, constructing, furnishing, and equipping the
             64858      East-Campus Central Plant and related energy improvements;
             64859          (b) savings in heating and cooling costs be used as the primary revenue source for
             64860      repayment of any obligation created under authority of this section; and
             64861          (c) the bonds or other evidences of indebtedness authorized by this section may provide
             64862      up to $33,000,000, together with other amounts necessary to pay costs of issuance, pay
             64863      capitalized interest, and fund any debt service reserve requirements.
             64864          (2) It is the intent of the Legislature that:
             64865          (a) the Board of Regents, on behalf of Utah State University, issue, sell, and deliver
             64866      revenue bonds or other evidences of indebtedness of Utah State University to borrow money on
             64867      the credit, revenues, and reserves of Utah State University, other than appropriations of the
             64868      Legislature, to finance the cost of acquiring, constructing, furnishing, and equipping research
             64869      and office facilities at its Research Park;
             64870          (b) revenues from research activities, the Utah State University Research Foundation,
             64871      and other institutional funds be used as the primary revenue source for repayment of any
             64872      obligation created under authority of this section; and
             64873          (c) the bonds or other evidences of indebtedness authorized by this section may provide
             64874      up to $19,000,000, together with other amounts necessary to pay costs of issuance, pay
             64875      capitalized interest, and fund any debt service reserve requirements.
             64876          (3) It is the intent of the Legislature that:
             64877          (a) the Board of Regents, on behalf of Southern Utah University, issue, sell, and deliver

             64878      revenue bonds or other evidences of indebtedness of Southern Utah University to borrow
             64879      money on the credit, revenues, and reserves of Southern Utah University, other than
             64880      appropriations of the Legislature, to finance the cost of acquiring, constructing, furnishing, and
             64881      equipping a Student Living and Learning Facility;
             64882          (b) student housing and other auxiliary revenues and student building fees be used as
             64883      the primary revenue source for repayment of any obligation created under authority of this
             64884      section; and
             64885          (c) the bonds or other evidences of indebtedness authorized by this section may provide
             64886      up to $9,000,000, together with other amounts necessary to pay costs of issuance, pay
             64887      capitalized interest, and fund any debt service reserve requirements.
             64888          (4) It is the intent of the Legislature that:
             64889          (a) the Board of Regents, on behalf of Snow College, issue, sell, and deliver revenue
             64890      bonds or other evidences of indebtedness of Snow College to borrow money on the credit,
             64891      revenues, and reserves of Snow College, other than appropriations of the Legislature, to finance
             64892      the cost of acquiring, constructing, furnishing, and equipping a Multi-Event Center in Richfield;
             64893          (b) usage fees and other operating revenues be used as the primary revenue source for
             64894      repayment of any obligation created under authority of this section; and
             64895          (c) the bonds or other evidences of indebtedness authorized by this section may provide
             64896      up to $2,500,000, together with other amounts necessary to pay costs of issuance, pay
             64897      capitalized interest, and fund any debt service reserve requirements.
             64898          (5) It is the intent of the Legislature that the State Building Ownership Authority, under
             64899      the authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter 1, Part
             64900      3, State Building Ownership Authority Act, may issue or execute obligations, or enter into or
             64901      arrange for a lease purchase agreement in which participation interests may be created, to
             64902      provide up to $1,836,000 for the acquisition of a site and construction of a store in Tooele for
             64903      the Department of Alcoholic Beverage Control, together with additional amounts necessary to
             64904      pay costs of issuance, pay capitalized interest, and fund any debt service reserve requirements.
             64905          Section 1277. Section 63B-12-201 is amended to read:

             64906           63B-12-201. Revenue bond authorizations.
             64907          (1) (a) It is the intent of the Legislature that the State Building Ownership Authority,
             64908      under the authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter
             64909      1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
             64910      into or arrange for a lease purchase agreement in which participation interests may be created,
             64911      to provide up to $14,099,000 for the construction of a state courthouse in the City of West
             64912      Jordan together with additional amounts necessary to pay costs of issuance, pay capitalized
             64913      interest, and fund any debt service reserve requirements.
             64914          (b) It is the intent of the Legislature that, before entering into the obligations authorized
             64915      by this Subsection (1), the State Building Ownership Authority shall confirm that the projected
             64916      amount of fees in the Courts Complex Fund, Fund 106, along with other funds in existing
             64917      budgets of the courts are adequate to cover the repayment of any obligation created under
             64918      authority of this Subsection (1).
             64919          (c) It is further the intent of the Legislature that when Sandy City has entered into a
             64920      binding agreement with the Division of Facilities Construction and Management to purchase the
             64921      existing Sandy Courthouse at an amount that will provide sale proceeds, net of any rent that
             64922      may be charged to the courts for occupying the Sandy Courthouse during construction of the
             64923      new courthouse, of not less than $4,500,000, those proceeds may be used to include
             64924      replacement space for the district court in the new courthouse.
             64925          (2) (a) It is the intent of the Legislature that the State Building Ownership Authority,
             64926      under the authority of [Title 63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter
             64927      1, Part 3, State Building Ownership Authority Act, issue or execute obligations, or enter into or
             64928      arrange for a lease purchase agreement in which participation interests may be created, to
             64929      provide up to $1,242,000 for the construction of a driver license office in West Valley City,
             64930      together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
             64931      and fund any debt service reserve requirements.
             64932          (b) It is further the intent of the Legislature that fees for driver licenses be used as the
             64933      primary revenue source for repayment of any obligation created under authority of this

             64934      Subsection (2).
             64935          Section 1278. Section 63C-4-101 is amended to read:
             64936           63C-4-101. Creation of Constitutional Defense Council -- Membership --
             64937      Vacancies -- Reports -- Per diem and funding.
             64938          (1) There is created the Constitutional Defense Council.
             64939          (2) (a) The defense council shall consist of the following 11 members:
             64940          (i) the governor, who shall serve as chair of the council;
             64941          (ii) the president of the Senate or [his] the president of the Senate's designee;
             64942          (iii) the speaker of the House or [his] the speaker of the House's designee;
             64943          (iv) the minority leader of the Senate or [his] the minority leader of the Senate's
             64944      designee;
             64945          (v) the minority leader of the House or [his] the minority leader of the House's
             64946      designee;
             64947          (vi) the attorney general or [his] the attorney general's designee;
             64948          (vii) one citizen member appointed by the governor; and
             64949          (viii) four elected county commissioners, county council members, or county executives
             64950      from different counties who are selected by the Utah Association of Counties.
             64951          (b) The council shall select a vice-chair from its members.
             64952          (3) When a vacancy occurs in the membership for any reason, the replacement shall be
             64953      appointed for the unexpired term in the same manner as the original appointment.
             64954          (4) (a) (i) Except as provided in Subsection (4)(a)(ii), the defense council shall meet at
             64955      least monthly or more frequently as needed.
             64956          (ii) The defense council need not meet monthly if the chair, after polling the members,
             64957      determines that a majority of the members do not wish to meet.
             64958          (b) The governor or any six members of the council may call a meeting of the council.
             64959          (c) Before calling a meeting, the governor or council members shall solicit items for the
             64960      agenda from other members of the council.
             64961          (d) (i) The Constitutional Defense Council shall require that any entity that receives

             64962      monies from the Constitutional Defense Restricted Account provide financial reports and
             64963      litigation reports to the Council.
             64964          (ii) Nothing in this Subsection (4)(d) prohibits the council from closing a meeting under
             64965      Title 52, Chapter 4, Open and Public Meetings Act, or prohibits the council from complying
             64966      with [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and Management
             64967      Act.
             64968          (e) A majority of the membership on the defense council is required for a quorum to
             64969      conduct council business. A majority vote of the quorum is required for any action taken by the
             64970      defense council.
             64971          (5) The Office of the Attorney General shall provide staff to the defense council.
             64972          (6) (a) (i) State government officer and employee members who do not receive salary,
             64973      per diem, or expenses from their agency for their service may receive per diem and expenses
             64974      incurred in the performance of their official duties from the council at the rates established by
             64975      the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             64976          (ii) State government officer and employee members may decline to receive per diem
             64977      and expenses for their service.
             64978          (b) (i) Local government members who do not receive salary, per diem, or expenses
             64979      from the entity that they represent for their service may receive per diem and expenses incurred
             64980      in the performance of their official duties at the rates established by the Division of Finance
             64981      under Sections 63A-3-106 and 63A-3-107 .
             64982          (ii) Local government members may decline to receive per diem and expenses for their
             64983      service.
             64984          (c) Legislators on the committee shall receive compensation and expenses as provided
             64985      by law and legislative rule.
             64986          (7) (a) The council shall be funded from the Constitutional Defense Restricted Account
             64987      created in Section 63C-4-103 .
             64988          (b) Monies appropriated for or received by the council may be expended by the
             64989      governor in consultation with the council.

             64990          Section 1279. Section 63C-4-102 is amended to read:
             64991           63C-4-102. Duties.
             64992          (1) The Constitutional Defense Council is a council to assist the governor and the
             64993      Legislature on the following types of issues:
             64994          (a) the constitutionality of unfunded federal mandates;
             64995          (b) when making recommendations to challenge the federal mandates and regulations
             64996      described in Subsections (1)(e)(i) through (v), the rationale for and effectiveness of those
             64997      federal mandates or regulations;
             64998          (c) legal and policy issues surrounding state and local government rights under R.S.
             64999      2477;
            65000         (d) legal issues relating to the rights of the School and Institutional Trust Lands
            65001     Administration and its beneficiaries; and
            65002         (e) the advisability, feasibility, estimated cost, and likelihood of success of challenging:
            65003         (i) federal court rulings that hinder the management of the state's prison system and
            65004     place undue financial hardship on the state's taxpayers;
            65005         (ii) federal laws or regulations that reduce or negate water rights or the rights of owners
            65006     of private property, or the rights and interest of state and local governments, including
            65007     sovereignty interests and the power to provide for the health, safety, and welfare, and promote
            65008     the prosperity of their inhabitants;
            65009         (iii) conflicting federal regulations or policies in land management on federal land;
            65010         (iv) federal intervention that would damage the state's mining, timber, and ranching
            65011     industries;
            65012         (v) the authority of the Environmental Protection Agency and Congress to mandate
            65013     local air quality standards and penalties; and
            65014         (vi) other issues that are relevant to Subsections (1)(a) through (e).
            65015         (2) The council chair may require the attorney general or a designee to provide
            65016     testimony on potential legal actions that would enhance the state's sovereignty or authority on
            65017     issues affecting Utah and the well-being of its citizens.

            65018         (3) The council chair may direct the attorney general to initiate and prosecute any
            65019     action that the council determines will further its purposes.
            65020         (4) (a) Subject to the provisions of this section, the council may select and employ
            65021     attorneys to implement the purposes and duties of the council.
            65022         (b) The council chair may, in consultation with the council, direct any council attorney
            65023     in any manner considered appropriate by the attorney general to best serve the purposes of the
            65024     council.
            65025         (c) The attorney general shall negotiate a contract for services with any attorney
            65026     selected and approved for employment under this section.
            65027         (5) The council chair shall, only with the concurrence of the council, review and
            65028     approve all claims for payments for legal services that are submitted to the council.
            65029         (6) Within five business days' notice, the council chair may, with the concurrence of the
            65030     council, order the attorney general or an attorney employed by the council to cease work to be
            65031     charged to the fund.
            65032         (7) (a) At least 20 calendar days before the state submits comments on the draft
            65033     environmental impact statement or environmental assessment for a proposed land management
            65034     plan of any federal land management agency, the governor shall make those documents available
            65035     to:
            65036         (i) members of the council; and
            65037         (ii) any county executive, county council member, or county commissioner of a county
            65038     that is covered by the management plan and that has established formal cooperating agency
            65039     status with the relevant federal land management agency regarding the proposed plan.
            65040         (b) (i) Council members or local government officials receiving the documents may
            65041     make recommendations to the governor or the governor's designee concerning changes to the
            65042     documents before they are submitted to the federal land management agency.
            65043         (ii) Council members or local government officials shall submit recommendations to the
            65044     governor or the governor's designee no later than ten calendar days after receiving the
            65045     documents under Subsection (7)(a).

            65046         (c) Documents transmitted or received under this Subsection (7) are drafts and are
            65047     protected records pursuant to Subsection [ 63-2-304 ] 63G-2-305 (22).
            65048         (8) The council shall submit a report on December 1 of each year to the speaker of the
            65049     House of Representatives and the president of the Senate that summarizes the council's
            65050     activities.
            65051         Section 1280. Section 63C-4-103 is amended to read:
            65052          63C-4-103. Creation of Constitutional Defense Restricted Account -- Sources of
            65053      funds -- Uses of funds -- Reports.
            65054         (1) There is created a restricted account within the General Fund known as the
            65055     Constitutional Defense Restricted Account.
            65056         (2) The account consists of monies from the following revenue sources:
            65057         (a) monies deposited to the account as required by Section 53C-3-203 ;
            65058         (b) voluntary contributions;
            65059         (c) monies received by the Constitutional Defense Council from other state agencies;
            65060     and
            65061         (d) appropriations made by the Legislature.
            65062         (3) Funds in the account shall be nonlapsing.
            65063         (4) The account balance may not exceed $2,000,000.
            65064         (5) The Legislature may annually appropriate monies from the Constitutional Defense
            65065     Restricted Account to one or more of the following:
            65066         (a) the Constitutional Defense Council to carry out its duties in Section 63C-4-102 ;
            65067         (b) the Public Lands Policy Coordinating Office to carry out its duties in Section
            65068     [ 63-38d-603 ] 63J-4-603 ;
            65069         (c) the Public Lands Policy Coordinating Council to carry out its duties in Section
            65070     [ 63-38d-605 ] 63J-4-605 ;
            65071         (d) the Office of the Governor, to be used only for the purpose of asserting, defending,
            65072     or litigating state and local government rights under R.S. 2477, in accordance with a plan
            65073     developed and approved as provided in Section 63C-4-104 ;

            65074         (e) a county or association of counties to assist counties, consistent with the purposes
            65075     of the council, in pursuing issues affecting the counties; or
            65076         (f) the Office of the Attorney General, to be used only for public lands counsel and
            65077     assistance and litigation to the state or local governments including asserting, defending, or
            65078     litigating state and local government rights under R.S. 2477 in accordance with a plan
            65079     developed and approved as provided in Section 63C-4-104 .
            65080         (6) (a) The Constitutional Defense Council shall require that any entity that receives
            65081     monies from the Constitutional Defense Restricted Account provide financial reports and
            65082     litigation reports to the Council.
            65083         (b) Nothing in this Subsection (6) prohibits the council from closing a meeting under
            65084     Title 52, Chapter 4, Open and Public Meetings Act, or prohibits the council from complying
            65085     with [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and Management
            65086     Act.
            65087         Section 1281. Section 63C-7-210 is amended to read:
            65088          63C-7-210. Exemption from certain acts.
            65089         (1) The Utah Communications Agency Network is exempt from:
            65090         (a) [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures Act;
            65091         (b) Title 63A, Utah Administrative Services Code, except as provided in Section
            65092      63A-4-205.5 ;
            65093         (c) [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code;
            65094         (d) [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act; and
            65095         (e) Title 67, Chapter 19, Utah State Personnel Management Act.
            65096         (2) The board shall adopt budgetary procedures, accounting, procurement, and
            65097     personnel policies substantially similar to those from which they have been exempted in
            65098     Subsection (1).
            65099         Section 1282. Section 63C-8-105 is amended to read:
            65100          63C-8-105. Powers of council.
            65101         The council may:

            65102         (1) conduct surveys, with the assistance of the Division of Occupational and
            65103     Professional Licensing within the Department of Commerce, to assess and meet changing
            65104     market and education needs;
            65105         (2) notwithstanding the provisions of Subsection 35A-4-312 (3), receive information
            65106     obtained by the Division of Workforce Information and Payment Services under the provisions
            65107     of Section 35A-4-312 for purposes consistent with the council's duties as identified under
            65108     Section 63C-8-104 , including identifying changes in the medical and health care workforce
            65109     numbers, types, and geographic distribution;
            65110         (3) appoint advisory committees of broad representation on interdisciplinary clinical
            65111     education, workforce mix planning and projections, funding mechanisms, and other topics as is
            65112     necessary;
            65113         (4) use federal monies for necessary administrative expenses to carry out its duties and
            65114     powers as permitted by federal law;
            65115         (5) distribute program monies in accordance with Subsection 63C-8-104 (7); and
            65116         (6) as is necessary to carry out its duties under Section 63C-8-104 :
            65117         (a) hire employees; and
            65118         (b) adopt rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            65119     Administrative Rulemaking Act.
            65120         Section 1283. Section 63C-8-106 is amended to read:
            65121          63C-8-106. Rural residency training program.
            65122         (1) For purposes of this section:
            65123         (a) "Physician" means:
            65124         (i) a person licensed to practice medicine under Title 58 Chapter 67, Utah Medical
            65125     Practice Act or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; and
            65126         (ii) a person licensed to practice dentistry under Title 58, Chapter 69, Dentist and
            65127     Dental Hygienist Practice Act.
            65128         (b) "Rural residency training program" means an accredited clinical training program as
            65129     defined in Section 63C-8-101 which places a physician into a rural county for a part or all of the

            65130     physician's clinical training.
            65131         (2) (a) Subject to appropriations from the Legislature, the council shall establish a pilot
            65132     program to place physicians into rural residency training programs.
            65133         (b) The pilot program shall begin July 1, 2005 and sunset July 1, 2015, in accordance
            65134     with Section [ 63-55-263 ] 63I-1-263 .
            65135         (3) (a) The council shall report to the Legislature's Health and Human Services Interim
            65136     Committee concerning the implementation of the pilot program and the success of the program
            65137     in increasing the retention or recruitment of physicians in rural counties in the state.
            65138         (b) The report required by this Subsection (3) shall be made by November 30 of each
            65139     year.
            65140         Section 1284. Section 63C-9-301 is amended to read:
            65141          63C-9-301. Board powers -- Subcommittees.
            65142         (1) The board shall:
            65143         (a) except as provided in Subsection (2), exercise complete jurisdiction and stewardship
            65144     over capitol hill facilities, capitol hill grounds, and the capitol hill complex;
            65145         (b) preserve, maintain, and restore the capitol hill complex, capitol hill facilities, capitol
            65146     hill grounds, and their contents;
            65147         (c) before October 1 of each year, review and approve the executive director's annual
            65148     budget request for submittal to the governor and Legislature;
            65149         (d) by October 1 of each year, prepare and submit a recommended budget request for
            65150     the upcoming fiscal year for the capitol hill complex to:
            65151         (i) the governor, through the Governor's Office of Planning and Budget; and
            65152         (ii) the Legislature's appropriations subcommittee responsible for capitol hill facilities,
            65153     through the Office of Legislative Fiscal Analyst;
            65154         (e) review and approve the executive director's:
            65155         (i) annual work plan;
            65156         (ii) long-range master plan for the capitol hill complex, capitol hill facilities, and capitol
            65157     hill grounds; and

            65158         (iii) furnishings plan for placement and care of objects under the care of the board;
            65159         (f) approve all changes to the buildings and their grounds, including:
            65160         (i) restoration, remodeling, and rehabilitation projects;
            65161         (ii) usual maintenance program; and
            65162         (iii) any transfers or loans of objects under the board's care;
            65163         (g) define and identify all significant aspects of the capitol hill complex, capitol hill
            65164     facilities, and capitol hill grounds, after consultation with the:
            65165         (i) Division of Facilities Construction and Management;
            65166         (ii) State Library Division;
            65167         (iii) Division of Archives and Records Service;
            65168         (iv) Division of State History;
            65169         (v) Office of Museum Services; and
            65170         (vi) Arts Council;
            65171         (h) inventory, define, and identify all significant contents of the buildings and all
            65172     state-owned items of historical significance that were at one time in the buildings, after
            65173     consultation with the:
            65174         (i) Division of Facilities Construction and Management;
            65175         (ii) State Library Division;
            65176         (iii) Division of Archives and Records Service;
            65177         (iv) Division of State History;
            65178         (v) Office of Museum Services; and
            65179         (vi) Arts Council;
            65180         (i) maintain archives relating to the construction and development of the buildings, the
            65181     contents of the buildings and their grounds, including documents such as plans, specifications,
            65182     photographs, purchase orders, and other related documents, the original copies of which shall
            65183     be maintained by the Division of Archives and Records Service;
            65184         (j) comply with federal and state laws related to program and facility accessibility; and
            65185         (k) establish procedures for receiving, hearing, and deciding complaints or other issues

            65186     raised about the capitol hill complex, capitol hill facilities, and capitol hill grounds, or their use.
            65187         (2) Notwithstanding Subsection (1)(a), the supervision and control of the legislative
            65188     area, as defined in Section 36-5-1 , is reserved to the Legislature.
            65189         (3) (a) The board shall make rules to govern, administer, and regulate the capitol hill
            65190     complex, capitol hill facilities, and capitol hill grounds by following the procedures and
            65191     requirements of [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
            65192     Act.
            65193         (b) A person who violates a rule adopted by the board under the authority of this
            65194     Subsection (3) is subject to a civil penalty not to exceed $2,500 for each violation, plus the
            65195     amount of any actual damages, expenses, and costs related to the violation of the rule that are
            65196     incurred by the state.
            65197         (c) The board may take any other legal action allowed by law.
            65198         (d) If any violation of a rule adopted by the board is also an offense under Title 76,
            65199     Utah Criminal Code, the violation is subject to the civil penalty, damages, expenses, and costs
            65200     allowed under this Subsection (3) in addition to any criminal prosecution.
            65201         (e) The board may not apply this section or rules adopted under the authority of this
            65202     section in a manner that violates a person's rights under the Utah Constitution or the First
            65203     Amendment to the United States Constitution, including the right of persons to peaceably
            65204     assemble.
            65205         (f) The board shall send proposed rules under this section to the legislative general
            65206     counsel and the governor's general counsel for review and comment before the board adopts the
            65207     rules.
            65208         (4) The board is exempt from the requirements of [Title 63, Chapter 56] Title 63G,
            65209     Chapter 6, Utah Procurement Code, but shall adopt procurement rules substantially similar to
            65210     the requirements of that chapter.
            65211         (5) (a) The board may:
            65212         (i) establish subcommittees made up of board members and members of the public to
            65213     assist and support the executive director in accomplishing the executive director's duties;

            65214         (ii) establish fees for the use of capitol hill facilities and capitol hill grounds;
            65215         (iii) assign and allocate specific duties and responsibilities to any other state agency, if
            65216     the other agency agrees to perform the duty or accept the responsibility;
            65217         (iv) contract with another state agency to provide services;
            65218         (v) delegate by specific motion of the board any authority granted to it by this section to
            65219     the executive director;
            65220         (vi) in conjunction with Salt Lake City, expend monies to improve or maintain public
            65221     property contiguous to East Capitol Boulevard and capitol hill;
            65222         (vii) provide wireless Internet service to the public without a fee in any capitol hill
            65223     facility; and
            65224         (viii) when necessary, consult with the:
            65225         (A) Division of Facilities Construction and Management;
            65226         (B) State Library Division;
            65227         (C) Division of Archives and Records Service;
            65228         (D) Division of State History;
            65229         (E) Office of Museum Services; and
            65230         (F) Arts Council.
            65231         (b) The board's provision of wireless Internet service under Subsection (5)(a)(vii) shall
            65232     be discontinued in the legislative area if the president of the Senate and the speaker of the
            65233     House of Representatives each submit a signed letter to the board indicating that the service is
            65234     disruptive to the legislative process and is to be discontinued.
            65235         (c) If a budget subcommittee is established by the board, the following shall serve as ex
            65236     officio, nonvoting members of the budget subcommittee:
            65237         (i) the legislative fiscal analyst, or the analyst's designee, who shall be from the Office of
            65238     Legislative Fiscal Analyst; and
            65239         (ii) the director of the Governor's Office of Planning and Budget, or the director's
            65240     designee, who shall be from the Governor's Office of Planning and Budget.
            65241         (d) If a preservation and maintenance subcommittee is established by the board, the

            65242     board may, by majority vote, appoint one or each of the following to serve on the subcommittee
            65243     as voting members of the subcommittee:
            65244         (i) an architect, who shall be selected from a list of three architects submitted by the
            65245     American Institute of Architects; or
            65246         (ii) an engineer, who shall be selected from a list of three engineers submitted by the
            65247     American Civil Engineers Council.
            65248         (e) If the board establishes any subcommittees, the board may, by majority vote,
            65249     appoint up to two people who are not members of the board to serve, at the will of the board,
            65250     as nonvoting members of a subcommittee.
            65251         (f) Members of each subcommittee shall, at the first meeting of each calendar year,
            65252     select one individual to act as chair of the subcommittee for a one-year term.
            65253         (6) (a) The board, and the employees of the board, may not move the office of the
            65254     governor, lieutenant governor, president of the Senate, speaker of the House of
            65255     Representatives, or a member of the Legislature from the State Capitol Building unless the
            65256     removal is approved by:
            65257         (i) the governor, in the case of the governor's office;
            65258         (ii) the lieutenant governor, in the case of the lieutenant governor's office;
            65259         (iii) the president of the Senate, in the case of the president's office or the office of a
            65260     member of the Senate; or
            65261         (iv) the speaker of the House of Representatives, in the case of the speaker's office or
            65262     the office of a member of the House.
            65263         (b) The board and the employees of the board have no control over the furniture,
            65264     furnishings, and decorative objects in the offices of the governor, lieutenant governor, or the
            65265     members of the Legislature except as necessary to inventory or conserve items of historical
            65266     significance owned by the state.
            65267         (c) The board and the employees of the board have no control over records and
            65268     documents produced by or in the custody of a state agency, official, or employee having an
            65269     office in a building on the capitol hill complex.

            65270         (d) Except for items identified by the board as having historical significance, and except
            65271     as provided in Subsection (6)(b), the board and the employees of the board have no control
            65272     over moveable furnishings and equipment in the custody of a state agency, official, or employee
            65273     having an office in a building on the capitol hill complex.
            65274         Section 1285. Section 63C-11-202 is amended to read:
            65275          63C-11-202. Powers and duties of authority.
            65276         (1) The authority shall:
            65277         (a) hire an executive director, who shall serve as staff to the authority;
            65278         (b) oversee and make any necessary rules concerning the Pete Suazo Utah Athletic
            65279     Commission created in Section 63C-11-303 ; and
            65280         (c) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            65281     Administrative Rulemaking Act, necessary for the administration of this chapter.
            65282         (2) The authority may:
            65283         (a) hire employees to carry out its duties as budgetary constraints allow;
            65284         (b) solicit and accept contributions of moneys, services, and facilities from any other
            65285     sources, public or private, and shall use these funds for coordinating the promotion and
            65286     enhancement of sporting opportunities in Utah; and
            65287         (c) contract with an existing not-for-profit organization for the purpose of sports
            65288     development throughout the state, including:
            65289         (i) branding, advertising, and marketing;
            65290         (ii) sports tourism promotion, including attracting and developing sporting events;
            65291         (iii) coordinating with any other entity the promotion or enhancement of sporting
            65292     opportunities in Utah;
            65293         (iv) partnering with existing entities for Olympic-related sports development;
            65294         (v) coordinating with the Division of Parks and Recreation to establish a destination
            65295     golf program to promote golf-related tourism; and
            65296         (vi) coordinating with existing entities the recruitment and relocation of the United
            65297     States Olympic Committee National Governing Bodies and other organizations governing

            65298     sports.
            65299         (3) The authority may not perform any of the functions listed in Subsections (2)(c)(i)
            65300     through (vi).
            65301         (4) (a) The not-for-profit organization contracted with in Subsection (1):
            65302         (i) shall have at least five years' experience in the promotion, development, and
            65303     marketing of sports events and sports tourism;
            65304         (ii) shall represent all geographic areas of the state; and
            65305         (iii) may not have a financial or ownership interest in any sports venue.
            65306         (b) Development of sports under the contract entered into under Subsection (1) shall
            65307     include:
            65308         (i) summer and winter sports;
            65309         (ii) amateur and professional sports; and
            65310         (iii) participatory and spectator sports.
            65311         Section 1286. Section 63C-11-302 is amended to read:
            65312          63C-11-302. Definitions.
            65313         As used in this part:
            65314         (1) "Bodily injury" is as defined in Section 76-1-601 .
            65315         (2) "Boxing" means the sport of attack and defense using the fist, which is covered by
            65316     an approved boxing glove.
            65317         (3) (a) "Club fighting" means any contest of unarmed combat, whether admission is
            65318     charged or not, where:
            65319         (i) the rules of the contest are not approved by the commission;
            65320         (ii) a licensed physician or osteopath is not in attendance;
            65321         (iii) an HIV negative test regarding each contestant not less than 180 days before the
            65322     contest has not been provided to the commission;
            65323         (iv) the contest is not conducted in accordance with commission rules; or
            65324         (v) the contestants are not matched by the weight standards described in Section
            65325      63C-11-324 .

            65326         (b) "Club fighting" does not include sparring if:
            65327         (i) it is conducted for training purposes;
            65328         (ii) no tickets are sold to spectators;
            65329         (iii) no concessions are available for spectators;
            65330         (iv) protective clothing, including protective headgear, a mouthguard, and a protective
            65331     cup, is worn; and
            65332         (v) for boxing, 16 ounce boxing gloves are worn.
            65333         (4) "Commission" means the Pete Suazo Utah Athletic Commission created in this part.
            65334         (5) "Contest" means a live match, performance, or exhibition involving two or more
            65335     persons engaged in unarmed combat.
            65336         (6) "Contestant" means an individual who participates in a contest.
            65337         (7) "Designated commission member" means a member of the commission designated
            65338     to:
            65339         (a) attend and supervise a particular contest; and
            65340         (b) act on the behalf of the commission at a contest venue.
            65341         (8) "Elimination boxing contest" means a contest where:
            65342         (a) a number of contestants participate in a tournament;
            65343         (b) the duration is not more than 48 hours; and
            65344         (c) the loser of each contest is eliminated from further competition.
            65345         (9) "Exhibition" means an engagement in which the participants show or display their
            65346     skills without necessarily striving to win.
            65347         (10) "Judge" means an individual qualified by training or experience to:
            65348         (a) rate the performance of contestants;
            65349         (b) score a contest; and
            65350         (c) determine with other judges whether there is a winner of the contest or whether the
            65351     contestants performed equally, resulting in a draw.
            65352         (11) "Licensee" means an individual licensed by the commission to act as a:
            65353         (a) contestant;

            65354         (b) judge;
            65355         (c) manager;
            65356         (d) promoter;
            65357         (e) referee; or
            65358         (f) second.
            65359         (12) "Manager" means an individual who represents a contestant for the purposes of:
            65360         (a) obtaining a contest for a contestant;
            65361         (b) negotiating terms and conditions of the contract under which the contestant will
            65362     engage in a contest; or
            65363         (c) arranging for a second for the contestant at a contest.
            65364         (13) "Promoter" means a person who engages in producing or staging contests and
            65365     promotions.
            65366         (14) "Promotion" means a single contest or a combination of contests that:
            65367         (a) occur during the same time and at the same location; and
            65368         (b) is produced or staged by a promoter.
            65369         (15) "Purse" means any money, prize, remuneration, or any other valuable consideration
            65370     a contestant receives or may receive for participation in a contest.
            65371         (16) "Referee" means an individual qualified by training or experience to act as the
            65372     official attending a contest at the point of contact between contestants for the purpose of:
            65373         (a) enforcing the rules relating to the contest;
            65374         (b) stopping the contest in the event the health, safety, and welfare of a contestant or
            65375     any other person in attendance at the contest is in jeopardy; and
            65376         (c) to act as a judge if so designated by the commission.
            65377         (17) "Round" means one of a number of individual time periods that, taken together,
            65378     constitute a contest during which contestants are engaged in a form of unarmed combat.
            65379         (18) "Second" means an individual who attends a contestant at the site of the contest
            65380     before, during, and after the contest in accordance with contest rules.
            65381         (19) "Secretary" means the secretary of the Pete Suazo Utah Athletic Commission.

            65382         (20) "Serious bodily injury" is as defined in Section 76-1-601 .
            65383         (21) "Total gross receipts" means the amount of the face value of all tickets sold to a
            65384     particular contest plus any sums received as consideration for holding the contest at a particular
            65385     location.
            65386         (22) "Ultimate fighting" means a live contest, whether or not an admission fee is
            65387     charged, in which:
            65388         (a) contest rules permit contestants to use a combination of boxing, kicking, wrestling,
            65389     hitting, punching, or other combative contact techniques;
            65390         (b) contest rules incorporate a formalized system of combative techniques against which
            65391     a contestant's performance is judged to determine the prevailing contestant;
            65392         (c) contest rules divide nonchampionship contests into three equal and specified rounds
            65393     of no more than five minutes per round with a rest period of one minute between each round;
            65394         (d) contest rules divide championship contests into five equal and specified rounds of no
            65395     more than five minutes per round with a rest period of one minute between each round; and
            65396         (e) contest rules prohibit contestants from:
            65397         (i) using anything that is not part of the human body, except for boxing gloves, to
            65398     intentionally inflict serious bodily injury upon an opponent through direct contact or the
            65399     expulsion of a projectile;
            65400         (ii) striking a person who demonstrates an inability to protect himself from the advances
            65401     of an opponent;
            65402         (iii) biting; or
            65403         (iv) direct, intentional, and forceful strikes to the eyes, groin area, adam's apple area of
            65404     the neck, and temple area of the head.
            65405         (23) (a) "Unarmed combat" means boxing or any other form of competition in which a
            65406     blow is usually struck which may reasonably be expected to inflict bodily injury.
            65407         (b) "Unarmed combat" does not include a competition or exhibition between
            65408     participants in which the participants engage in simulated combat for entertainment purposes.
            65409         (24) "Unlawful conduct" means organizing, promoting, or participating in a contest

            65410     which involves contestants that are not licensed under this part.
            65411         (25) "Unprofessional conduct" means:
            65412         (a) entering into a contract for a contest in bad faith;
            65413         (b) participating in any sham or fake contest;
            65414         (c) participating in a contest pursuant to a collusive understanding or agreement in
            65415     which the contestant competes in or terminates the contest in a manner that is not based upon
            65416     honest competition or the honest exhibition of the skill of the contestant;
            65417         (d) engaging in an act or conduct that is detrimental to a contest, including any foul or
            65418     unsportsmanlike conduct in connection with a contest;
            65419         (e) failing to comply with any limitation, restriction, or condition placed on a license;
            65420         (f) striking of a downed opponent by a contestant while the contestant remains on the
            65421     contestant's feet unless the commission, following a hearing conducted under Subsection
            65422      63C-11-316 (3) and before the contest, has exempted the contest and each contestant from this
            65423     Subsection (25)(f);
            65424         (g) after entering the ring or contest area, penetrating an area within four feet of an
            65425     opponent by a contestant, manager or second before the commencement of the contest; or
            65426         (h) as further defined by rules made by the commission under [Title 63, Chapter 46a]
            65427     Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
            65428         (26) "White-collar contest" means a contest conducted at a training facility where no
            65429     alcohol is served in which:
            65430         (a) for boxing:
            65431         (i) neither contestant is or has been a licensed contestant in any state or an amateur
            65432     registered with USA Boxing, Inc.;
            65433         (ii) no cash prize, or other prize valued at greater than $35, is awarded;
            65434         (iii) protective clothing, including protective headgear, a mouthguard, a protective cup,
            65435     and for a female contestant a chestguard, is worn;
            65436         (iv) 16 ounce boxing gloves are worn;
            65437         (v) the contest is no longer than three rounds of no longer than three minutes each;

            65438         (vi) no winner is declared; and
            65439         (vii) the contestants do not compete in a cage; and
            65440         (b) for ultimate fighting:
            65441         (i) neither contestant is or has been a licensed contestant in any state or an amateur
            65442     registered with USA Boxing, Inc.;
            65443         (ii) no cash prize, or other prize valued at greater than $35, is awarded;
            65444         (iii) protective clothing, including a protective mouthguard and a protective cup, is
            65445     worn;
            65446         (iv) elbow strikes are not allowed;
            65447         (v) a contestant is not allowed to stand and strike a downed opponent;
            65448         (vi) a closed-hand blow to the head is not allowed while either contestant is on the
            65449     ground;
            65450         (vii) the contest is no longer than three rounds of no longer than three minutes each;
            65451     and
            65452         (viii) no winner is declared.
            65453         Section 1287. Section 63C-11-304 is amended to read:
            65454          63C-11-304. Commission powers and duties.
            65455         (1) The commission shall:
            65456         (a) purchase and use a seal;
            65457         (b) adopt rules for the administration of this part in accordance with [Title 63, Chapter
            65458     46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
            65459         (c) prepare all forms of contracts between sponsors, licensees, promoters, and
            65460     contestants; and
            65461         (d) hold hearings relating to matters under its jurisdiction, including violations of this
            65462     part or rules promulgated under this part.
            65463         (2) The commission may subpoena witnesses, take evidence, and require the production
            65464     of books, papers, documents, records, contracts, recordings, tapes, correspondence, or other
            65465     information relevant to an investigation if the commission or its designee considers it necessary.

            65466         Section 1288. Section 63C-11-308 is amended to read:
            65467          63C-11-308. Licensing.
            65468         (1) A license is required for a person to act as or to represent that the person is a:
            65469         (a) promoter;
            65470         (b) manager;
            65471         (c) contestant;
            65472         (d) second;
            65473         (e) referee; or
            65474         (f) judge.
            65475         (2) The commission shall issue to a person who qualifies under this part a license in the
            65476     classifications of:
            65477         (a) promoter;
            65478         (b) manager;
            65479         (c) contestant;
            65480         (d) second;
            65481         (e) referee; or
            65482         (f) judge.
            65483         (3) All moneys collected pursuant to this section and Sections 63C-11-312 ,
            65484      63C-11-315 , 63C-11-318 , and 63C-11-321 shall be deposited in the General Fund.
            65485         (4) Each applicant for licensure as a promoter shall:
            65486         (a) submit an application in a form prescribed by the commission;
            65487         (b) pay the fee determined by the commission under Section [ 63-38-3.2 ] 63J-1-303 ;
            65488         (c) provide to the commission evidence of financial responsibility, which shall include
            65489     financial statements and other information that the commission may reasonably require to
            65490     determine that the applicant or licensee is able to competently perform as and meet the
            65491     obligations of a promoter in this state;
            65492         (d) produce information, documentation, and assurances as may be required to establish
            65493     by a preponderance of the evidence the applicant's reputation for good character, honesty,

            65494     integrity, and responsibility, which shall include information, documentation, and assurances
            65495     that the applicant:
            65496         (i) has not been convicted of a crime in any jurisdiction which the commission
            65497     determines by the nature of the crime and circumstances surrounding the crime should disqualify
            65498     the applicant from licensure in the public interest;
            65499         (ii) is not engaging in illegal gambling with respect to sporting events or gambling with
            65500     respect to the promotions the applicant is promoting;
            65501         (iii) has not been found in a criminal or civil proceeding to have engaged in or
            65502     attempted to engage in any fraud or misrepresentation in connection with a contest or any other
            65503     sporting event; and
            65504         (iv) has not been found in a criminal or civil proceeding to have violated or attempted
            65505     to violate any law with respect to a contest in any jurisdiction or any law, rule, or order relating
            65506     to the regulation of contests in this state or any other jurisdiction;
            65507         (e) acknowledge in writing to the commission receipt, understanding, and intent to
            65508     comply with this part and the rules made under this part; and
            65509         (f) if requested by the commission or the secretary, meet with the commission or the
            65510     secretary to examine the applicant's qualifications for licensure.
            65511         (5) Each applicant for licensure as a contestant shall:
            65512         (a) be not less than 18 years of age at the time the application is submitted to the
            65513     commission;
            65514         (b) submit an application in a form prescribed by the commission;
            65515         (c) pay the fee established by the commission under Section [ 63-38-3.2 ] 63J-1-303 ;
            65516         (d) provide a certificate of physical examination, dated not more than 60 days prior to
            65517     the date of application for license, in a form provided by the commission, completed by a
            65518     licensed physician and surgeon certifying that the applicant is free from any physical or mental
            65519     condition that indicates the applicant should not engage in activity as a contestant;
            65520         (e) provide the commission with an accurate history of all matches that the applicant
            65521     has engaged in since becoming a contestant, including information on whether the applicant

            65522     won or lost each contest, and the matches in which there was a knockout or technical knockout;
            65523         (f) produce information, documentation, and assurances as may be required to establish
            65524     by a preponderance of the evidence the applicant's reputation for good character, honesty,
            65525     integrity, and responsibility, which shall include information, documentation, and assurances
            65526     that the applicant:
            65527         (i) has not been convicted of a crime in any jurisdiction which the commission
            65528     determines by the nature of the crime and circumstances surrounding that crime should
            65529     disqualify the applicant from licensure in the public interest;
            65530         (ii) is not engaging in illegal gambling with respect to sporting events or gambling with
            65531     respect to a contest in which the applicant will participate;
            65532         (iii) has not been found in a criminal or civil proceeding to have engaged in or
            65533     attempted to have engaged in any fraud or misrepresentation in connection with a contest or any
            65534     other sporting event; and
            65535         (iv) has not been found in a criminal or civil proceeding to have violated or attempted
            65536     to violate any law with respect to contests in any jurisdiction or any law, rule, or order relating
            65537     to the regulation of contests in this state or any other jurisdiction;
            65538         (g) acknowledge in writing to the commission receipt, understanding, and intent to
            65539     comply with this part and the rules made under this part; and
            65540         (h) if requested by the commission or the secretary, meet with the commission or the
            65541     secretary to examine the applicant's qualifications for licensure.
            65542         (6) Each applicant for licensure as a manager or second shall:
            65543         (a) submit an application in a form prescribed by the commission;
            65544         (b) pay a fee determined by the commission under Section [ 63-38-3.2 ] 63J-1-303 ;
            65545         (c) produce information, documentation, and assurances as may be required to establish
            65546     by a preponderance of the evidence the applicant's reputation for good character, honesty,
            65547     integrity, and responsibility, which shall include information, documentation, and assurances
            65548     that the applicant:
            65549         (i) has not been convicted of a crime in any jurisdiction which the commission

            65550     determines by the nature of the crime and circumstances surrounding that crime should
            65551     disqualify the applicant from licensure in the public interest;
            65552         (ii) is not engaging in illegal gambling with respect to sporting events or gambling with
            65553     respect to a contest in which the applicant is participating;
            65554         (iii) has not been found in a criminal or civil proceeding to have engaged in or
            65555     attempted to have engaged in any fraud or misrepresentation in connection with a contest or any
            65556     other sporting event; and
            65557         (iv) has not been found in a criminal or civil proceeding to have violated or attempted
            65558     to violate any law with respect to a contest in any jurisdiction or any law, rule, or order relating
            65559     to the regulation of contests in this state or any other jurisdiction;
            65560         (d) acknowledge in writing to the commission receipt, understanding, and intent to
            65561     comply with this part and the rules made under this part; and
            65562         (e) if requested by the commission or secretary, meet with the commission or the
            65563     secretary to examine the applicant's qualifications for licensure.
            65564         (7) Each applicant for licensure as a referee or judge shall:
            65565         (a) submit an application in a form prescribed by the commission;
            65566         (b) pay a fee determined by the commission under Section [ 63-38-3.2 ] 63J-1-303 ;
            65567         (c) produce information, documentation, and assurances as may be required to establish
            65568     by a preponderance of the evidence the applicant's reputation for good character, honesty,
            65569     integrity, and responsibility, which shall include information, documentation, and assurances
            65570     that the applicant:
            65571         (i) has not been convicted of a crime in any jurisdiction which the commission
            65572     determines by the nature of the crime and circumstances surrounding the crime should disqualify
            65573     the applicant from licensure in the public interest;
            65574         (ii) is not engaging in illegal gambling with respect to sporting events or gambling with
            65575     respect to a contest in which the applicant is participating;
            65576         (iii) has not been found in a criminal or civil proceeding to have engaged in or
            65577     attempted to have engaged in any fraud or misrepresentation in connection with a contest or any

            65578     other sporting event; and
            65579         (iv) has not been found in a criminal or civil proceeding to have violated or attempted
            65580     to violate any law with respect to contests in any jurisdiction or any law, rule, or order relating
            65581     to the regulation of contests in this state or any other jurisdiction;
            65582         (d) acknowledge in writing to the commission receipt, understanding, and intent to
            65583     comply with this part and the rules made under this part;
            65584         (e) provide evidence satisfactory to the commission that the applicant is qualified by
            65585     training and experience to competently act as a referee or judge in a contest; and
            65586         (f) if requested by the commission or the secretary, meet with the commission or the
            65587     secretary to examine the applicant's qualifications for licensure.
            65588         (8) (a) A licensee serves at the pleasure, and under the direction, of the commission
            65589     while participating in any way at a contest.
            65590         (b) A licensee's license may be suspended, or a fine imposed, if the licensee does not
            65591     follow the commission's direction at an event or contest.
            65592         Section 1289. Section 63C-11-310 is amended to read:
            65593          63C-11-310. Grounds for denial of license -- Disciplinary proceedings --
            65594      Reinstatement.
            65595         (1) The commission shall refuse to issue a license to an applicant and shall refuse to
            65596     renew or shall revoke, suspend, restrict, place on probation, or otherwise act upon the license of
            65597     a licensee who does not meet the qualifications for licensure under this part.
            65598         (2) The commission may refuse to issue a license to an applicant and may refuse to
            65599     renew or may revoke, suspend, restrict, place on probation, issue a public or private reprimand
            65600     to, or otherwise act upon the license of any licensee if:
            65601         (a) the applicant or licensee has engaged in unlawful or unprofessional conduct, as
            65602     defined by statute or rule under this part;
            65603         (b) the applicant or licensee has been determined to be mentally incompetent for any
            65604     reason by a court of competent jurisdiction; or
            65605         (c) the applicant or licensee is unable to practice the occupation or profession with

            65606     reasonable skill and safety because of illness, drunkenness, excessive use of drugs, narcotics,
            65607     chemicals, or any other type of material, or as a result of any other mental or physical condition,
            65608     when the licensee's condition demonstrates a threat or potential threat to the public health,
            65609     safety, or welfare.
            65610         (3) Any licensee whose license under this part has been suspended, revoked, or
            65611     restricted may apply for reinstatement of the license at reasonable intervals and upon
            65612     compliance with any conditions imposed upon the licensee by statute, rule, or terms of the
            65613     license suspension, revocation, or restriction.
            65614         (4) The commission may issue cease and desist orders:
            65615         (a) to a licensee or applicant who may be disciplined under Subsection (1) or (2); and
            65616         (b) to any person who otherwise violates this part or any rules adopted under this part.
            65617         (5) (a) The commission may impose an administrative fine for acts of unprofessional or
            65618     unlawful conduct under this part.
            65619         (b) An administrative fine under this Subsection (5) may not exceed $2,500 for each
            65620     separate act of unprofessional or unlawful conduct.
            65621         (c) The commission shall comply with [Title 63, Chapter 46b] Title 63G, Chapter 4,
            65622     Administrative Procedures Act, in any action to impose an administrative fine under this part.
            65623         (d) The imposition of a fine under this Subsection (5) does not affect any other action
            65624     the commission or department may take concerning a license issued under this part.
            65625         (6) (a) The commission may not take disciplinary action against any person for unlawful
            65626     or unprofessional conduct under this part, unless the commission initiates an adjudicative
            65627     proceeding regarding the conduct within four years after the conduct is reported to the
            65628     commission, except under Subsection (6)(b).
            65629         (b) The commission may not take disciplinary action against any person for unlawful or
            65630     unprofessional conduct more than ten years after the occurrence of the conduct, unless the
            65631     proceeding is in response to a civil or criminal judgment or settlement and the proceeding is
            65632     initiated within one year following the judgment or settlement.
            65633         (7) (a) Notwithstanding [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative

            65634     Procedures Act, the following may immediately suspend the license of a licensee at such time
            65635     and for such period that the following believes is necessary to protect the health, safety, and
            65636     welfare of the licensee, another licensee, or the public:
            65637         (i) the commission;
            65638         (ii) a designated commission member; or
            65639         (iii) if a designated commission member is not present, the secretary.
            65640         (b) The commission shall establish by rule appropriate procedures to invoke the
            65641     suspension and to provide a suspended licensee a right to a hearing before the commission with
            65642     respect to the suspension within a reasonable time after the suspension.
            65643         Section 1290. Section 63C-11-311 is amended to read:
            65644          63C-11-311. Additional fees for license of promoter -- Dedicated credits --
            65645      Promotion of contests -- Annual exemption of showcase event.
            65646         (1) In addition to the payment of any other fees and money due under this part, every
            65647     promoter shall pay a license fee determined by the commission, which may be:
            65648         (a) (i) $100 for a contest or event occurring in a venue of fewer than 200 seats;
            65649         (ii) $200 for a contest or event occurring in a venue of at least 200 but fewer than 500
            65650     seats;
            65651         (iii) $300 for a contest or event occurring in a venue of at least 500 seats but fewer than
            65652     1,000 seats;
            65653         (iv) $400 for a contest or event occurring in a venue of at least 1,000 seats but fewer
            65654     than 3,000 seats; or
            65655         (v) $600 for a contest or event occurring in a venue of at least 3,000 seats; and
            65656         (b) 3% of total gross receipts from the sale, lease, or other exploitation of broadcasting,
            65657     television, and motion picture rights for each contest or exhibition.
            65658         (2) (a) One-half of license fees collected under Subsection (1)(a) from professional
            65659     boxing contests or exhibitions shall be deposited in the General Fund.
            65660         (b) One-half of license fees collected under Subsection (1)(a) from professional boxing
            65661     contests or exhibitions shall be retained by the commission as a dedicated credit to be used by

            65662     the commission to award grants to organizations that promote amateur boxing in the state.
            65663         (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            65664     Administrative Rulemaking Act, the commission shall adopt rules:
            65665         (a) governing the manner in which applications for grants under Subsection (2) may be
            65666     submitted to the commission; and
            65667         (b) establishing standards for awarding grants under Subsection (2) to organizations
            65668     which promote amateur boxing in the state.
            65669         (4) (a) For the purpose of creating a greater interest in contests in the state, the
            65670     commission may exempt from the payment of license fees under this section one contest or
            65671     exhibition in each calendar year, intended as a showcase event.
            65672         (b) The commission shall select the contest or exhibition to be exempted based on
            65673     factors which include:
            65674         (i) attraction of the optimum number of spectators;
            65675         (ii) costs of promoting and producing the contest or exhibition;
            65676         (iii) ticket pricing;
            65677         (iv) committed promotions and advertising of the contest or exhibition;
            65678         (v) rankings and quality of the contestants; and
            65679         (vi) committed television and other media coverage of the contest or exhibition.
            65680         Section 1291. Section 63C-11-315 is amended to read:
            65681          63C-11-315. Approval to hold contest or promotion -- Bond required.
            65682         (1) An application to hold a contest or multiple contests as part of a single promotion
            65683     shall be made by a licensed promoter to the commission on forms provided by the commission.
            65684         (2) The application shall be accompanied by a contest fee determined by the
            65685     commission under Section [ 63-38-3.2 ] 63J-1-303 .
            65686         (3) (a) The commission may approve or deny approval to hold a contest or promotion
            65687     permitted under this part.
            65688         (b) Provisional approval under Subsection (3)(a) shall be granted upon a determination
            65689     by the commission that:

            65690         (i) the promoter of the contest or promotion is properly licensed;
            65691         (ii) a bond meeting the requirements of Subsection (6) has been posted by the promoter
            65692     of the contest or promotion; and
            65693         (iii) the contest or promotion will be held in accordance with this part and rules made
            65694     under this part.
            65695         (4) (a) Final approval to hold a contest or promotion may not be granted unless the
            65696     commission receives not less than seven days before the day of the contest with ten or more
            65697     rounds:
            65698         (i) proof of a negative HIV test performed not more than 180 days before the day of the
            65699     contest for each contestant;
            65700         (ii) a copy of each contestant's federal identification card;
            65701         (iii) a copy of a signed contract between each contestant and the promoter for the
            65702     contest;
            65703         (iv) a statement specifying the maximum number of rounds of the contest;
            65704         (v) a statement specifying the site, date, and time of weigh-in; and
            65705         (vi) the name of the physician selected from among a list of registered and
            65706     commission-approved ringside physicians who shall act as ringside physician for the contest.
            65707         (b) Notwithstanding Subsection (4)(a), the commission may approve a contest or
            65708     promotion if the requirements under Subsection (4)(a) are not met because of unforseen
            65709     circumstances beyond the promoter's control.
            65710         (5) Final approval for a contest under ten rounds in duration may be granted as
            65711     determined by the commission after receiving the materials identified in Subsection (4) at a time
            65712     determined by the commission.
            65713         (6) An applicant shall post a surety bond or cashier's check with the commission in the
            65714     greater of $10,000 or the amount of the purse, providing for forfeiture and disbursement of the
            65715     proceeds if the applicant fails to comply with:
            65716         (a) the requirements of this part; or
            65717         (b) rules made under this part relating to the promotion or conduct of the contest or

            65718     promotion.
            65719         Section 1292. Section 63C-11-316 is amended to read:
            65720          63C-11-316. Rules for the conduct of contests.
            65721         (1) The commission shall adopt rules in accordance with [Title 63, Chapter 46a] Title
            65722     63G, Chapter 3, Utah Administrative Rulemaking Act, for the conduct of contests in the state.
            65723         (2) The rules shall include:
            65724         (a) authority for:
            65725         (i) stopping contests; and
            65726         (ii) impounding purses with respect to contests when there is a question with respect to
            65727     the contest, contestants, or any other licensee associated with the contest; and
            65728         (b) reasonable and necessary provisions to ensure that all obligations of a promoter with
            65729     respect to any promotion or contest are paid in accordance with agreements made by the
            65730     promoter.
            65731         (3) (a) The commission may, in its discretion, exempt a contest and each contestant
            65732     from the definition of unprofessional conduct found in Subsection 63C-11-302 (25)(f) after:
            65733         (i) a promoter requests the exemption; and
            65734         (ii) the commission considers relevant factors, including:
            65735         (A) the experience of the contestants;
            65736         (B) the win and loss records of each contestant;
            65737         (C) each contestant's level of training; and
            65738         (D) any other evidence relevant to the contestants' professionalism and the ability to
            65739     safely conduct the contest.
            65740         (b) The commission's hearing of a request for an exemption under this Subsection (3) is
            65741     an informal adjudicative proceeding under Section [ 63-46b-4 ] 63G-4-202 .
            65742         (c) The commission's decision to grant or deny a request for an exemption under this
            65743     Subsection (3) is not subject to agency review under Section [ 63-46b-12 ] 63G-4-301 .
            65744         Section 1293. Section 63C-11-317 is amended to read:
            65745          63C-11-317. Medical examinations and drug tests.

            65746         (1) The commission shall adopt rules in accordance with [Title 63, Chapter 46a] Title
            65747     63G, Chapter 3, Utah Administrative Rulemaking Act, for medical examinations and drug
            65748     testing of contestants, including provisions under which contestants shall:
            65749         (a) produce evidence based upon competent laboratory examination that they are HIV
            65750     negative as a condition of participating as a contestant in any contest;
            65751         (b) be subject to random drug testing before or after participation in a contest, and
            65752     sanctions, including barring participation in a contest or withholding a percentage of any purse,
            65753     that shall be placed against a contestant testing positive for alcohol or any other drug that in the
            65754     opinion of the commission is inconsistent with the safe and competent participation of that
            65755     contestant in a contest;
            65756         (c) be subject to a medical examination by the ringside physician not more than 30
            65757     hours before the contest to identify any physical ailment or communicable disease that, in the
            65758     opinion of the commission or designated commission member, are inconsistent with the safe and
            65759     competent participation of that contestant in the contest; and
            65760         (d) be subject to medical testing for communicable diseases as considered necessary by
            65761     the commission to protect the health, safety, and welfare of the licensees and the public.
            65762         (2) (a) Medical information concerning a contestant shall be provided by the contestant
            65763     or medical professional or laboratory.
            65764         (b) A promoter or manager may not provide to or receive from the commission medical
            65765     information concerning a contestant.
            65766         Section 1294. Section 63C-11-318 is amended to read:
            65767          63C-11-318. Contests.
            65768         (1) Except as provided in Section 63C-11-325 , a licensee may not participate in:
            65769         (a) a boxing contest as a contestant if that person has participated in another boxing
            65770     contest as a contestant within 30 days before the proposed boxing contest; or
            65771         (b) an ultimate fighting contest as a contestant if that person has participated in another
            65772     ultimate fighting contest as a contestant within six days before the proposed ultimate fighting
            65773     contest.

            65774         (2) Subsection (1) applies regardless of where the previous boxing contest occurred.
            65775         (3) During the period of time beginning 60 minutes before the beginning of a contest,
            65776     the promoter shall demonstrate the promoter's compliance with the commission's security
            65777     requirements to all commission members present at the contest.
            65778         (4) The commission shall establish fees in accordance with Section [ 63-38-3.2 ]
            65779      63J-1-303 to be paid by a promoter for the conduct of each contest or event composed of
            65780     multiple contests conducted under this part.
            65781         Section 1295. Section 63D-2-103 is amended to read:
            65782          63D-2-103. Collection of personally identifiable information.
            65783         (1) A governmental entity may not collect personally identifiable information related to
            65784     a user of the governmental entity's governmental website unless the governmental entity has
            65785     taken reasonable steps to ensure that on the day on which the personally identifiable information
            65786     is collected the governmental entity's governmental website complies with Subsection (2).
            65787         (2) A governmental website shall contain a privacy policy statement that discloses:
            65788         (a) (i) the identity of the governmental website operator; and
            65789         (ii) how the governmental website operator may be contacted:
            65790         (A) by telephone; or
            65791         (B) electronically;
            65792         (b) the personally identifiable information collected by the governmental entity;
            65793         (c) a summary of how the personally identifiable information is used by:
            65794         (i) the governmental entity; or
            65795         (ii) the governmental website operator;
            65796         (d) the practices of the following related to disclosure of personally identifiable
            65797     information collected:
            65798         (i) the governmental entity; or
            65799         (ii) the governmental website operator;
            65800         (e) the procedures, if any, by which a user of a governmental entity may request:
            65801         (i) access to the user's personally identifiable information; and

            65802         (ii) access to correct the user's personally identifiable information; and
            65803         (f) without compromising the integrity of the security measures, a general description of
            65804     the security measures in place to protect a user's personally identifiable information from
            65805     unintended disclosure.
            65806         (3) (a) Personally identifiable information is not a classification of records under [Title
            65807     63, Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act.
            65808         (b) Access to government records is governed by [Title 63, Chapter 2] Title 63G,
            65809     Chapter 2, Government Records Access and Management Act.
            65810         Section 1296. Section 63E-1-102 is amended to read:
            65811          63E-1-102. Definitions.
            65812         As used in this title:
            65813         (1) "Authorizing statute" means the statute creating an entity as an independent entity.
            65814         (2) "Committee" means the Retirement and Independent Entities Committee created in
            65815     Section 63E-1-201 .
            65816         (3) "Independent corporation" means a corporation incorporated in accordance with
            65817     Chapter 2, Independent Corporations Act.
            65818         (4) (a) "Independent entity" means an entity having a public purpose relating to the
            65819     state or its citizens that is individually created by the state or is given by the state the right to
            65820     exist and conduct its affairs as an:
            65821         (i) independent state agency; or
            65822         (ii) independent corporation.
            65823         (b) "Independent entity" includes the:
            65824         (i) Dairy Commission created in Title 4, Chapter 22, Dairy Promotion Act;
            65825         (ii) Heber Valley Railroad Authority created in Title 9, Chapter 3, Part 3, Heber Valley
            65826     Historic Railroad Authority;
            65827         (iii) Utah Science Center Authority created in Title 9, Chapter 3, Part 4, Utah Science
            65828     Center Authority;
            65829         (iv) Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah Housing

            65830     Corporation Act;
            65831         (v) Utah State Fair Corporation created in Title 9, Chapter 4, Part 11, Utah State Fair
            65832     Corporation Act;
            65833         (vi) Workers' Compensation Fund created in Title 31A, Chapter 33, Workers'
            65834     Compensation Fund;
            65835         (vii) Utah State Retirement Office created in Title 49, Chapter 11, Utah State
            65836     Retirement Systems Administration;
            65837         (viii) School and Institutional Trust Lands Administration created in Title 53C, Chapter
            65838     1, Part 2, School and Institutional Trust Lands Administration;
            65839         (ix) Utah Communications Agency Network created in Title 63C, Chapter 7, Utah
            65840     Communications Agency Network Act; and
            65841         (x) Utah Capital Investment Corporation created in [Title 63, Chapter 38f] Title 63M,
            65842     Chapter 1, Part 12, Utah Venture Capital Enhancement Act.
            65843         (c) Notwithstanding this Subsection (4), "independent entity" does not include:
            65844         (i) the Public Service Commission of Utah created in Section 54-1-1 ;
            65845         (ii) an institution within the state system of higher education;
            65846         (iii) a city, county, or town;
            65847         (iv) a local school district;
            65848         (v) a local district under Title 17B, Limited Purpose Local Government Entities - Local
            65849     Districts; or
            65850         (vi) a special service district under Title 17A, Chapter 2, Part 13, Utah Special Service
            65851     District Act.
            65852         (5) "Independent state agency" means an entity that is created by the state, but is
            65853     independent of the governor's direct supervisory control.
            65854         (6) "Monies held in trust" means monies maintained for the benefit of:
            65855         (a) one or more private individuals, including public employees;
            65856         (b) one or more public or private entities; or
            65857         (c) the owners of a quasi-public corporation.

            65858         (7) "Public corporation" means an artificial person, public in ownership, individually
            65859     created by the state as a body politic and corporate for the administration of a public purpose
            65860     relating to the state or its citizens.
            65861         (8) "Quasi-public corporation" means an artificial person, private in ownership,
            65862     individually created as a corporation by the state which has accepted from the state the grant of
            65863     a franchise or contract involving the performance of a public purpose relating to the state or its
            65864     citizens.
            65865         Section 1297. Section 63E-2-109 is amended to read:
            65866          63E-2-109. State statutes.
            65867         (1) Except as specifically modified in its authorizing statute, each independent
            65868     corporation shall be exempt from the statutes governing state agencies, including:
            65869         (a) Title 51, Chapter 5, Funds Consolidation Act;
            65870         (b) Title 51, Chapter 7, State Money Management Act;
            65871         (c) [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures Act;
            65872         (d) [Title 63, Chapter 38a] Title 63J, Chapter 2, Revenue Procedures and Control Act;
            65873         (e) [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
            65874         (f) [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act;
            65875         (g) [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code;
            65876         (h) Title 63A, Utah Administrative Services Code; and
            65877         (i) Title 67, Chapter 19, Utah Personnel Management Act.
            65878         (2) Except as specifically modified in its authorizing statute, each independent
            65879     corporation shall be subject to:
            65880         (a) Title 52, Chapter 4, Open and Public Meetings Act; and
            65881         (b) [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
            65882     Management Act.
            65883         (3) Each independent corporation board may adopt its own policies and procedures
            65884     governing its:
            65885         (a) funds management;

            65886         (b) audits; and
            65887         (c) personnel.
            65888         Section 1298. Section 63F-1-103 is amended to read:
            65889          63F-1-103. Department of Technology Services.
            65890         (1) There is created within state government the Department of Technology Services
            65891     which has all of the policymaking functions, regulatory and enforcement powers, rights, duties,
            65892     and responsibilities outlined in this title.
            65893         (2) In accordance with Subsection [ 63-38-3.5 ] 63J-1-306 (7), the department has
            65894     authority to operate as an internal service fund agency as provided in Section [ 63-38-3.5 ]
            65895      63J-1-306 .
            65896         Section 1299. Section 63F-1-204 is amended to read:
            65897          63F-1-204. Agency information technology plans.
            65898         (1) (a) By July 1 of each year, each executive branch agency shall submit an agency
            65899     information technology plan to the chief information officer at the department level, unless the
            65900     governor or the chief information officer request an information technology plan be submitted
            65901     by a subunit of a department, or by an executive branch agency other than a department.
            65902         (b) The information technology plans required by this section shall be in the form and
            65903     level of detail required by the chief information officer, by administrative rule adopted in
            65904     accordance with Section 63F-1-206 , and shall include, at least:
            65905         (i) the information technology objectives of the agency;
            65906         (ii) any performance measures used by the agency for implementing the agency's
            65907     information technology objectives;
            65908         (iii) any planned expenditures related to information technology;
            65909         (iv) the agency's need for appropriations for information technology;
            65910         (v) how the agency's development of information technology coordinates with other
            65911     state and local governmental entities;
            65912         (vi) any efforts the agency has taken to develop public and private partnerships to
            65913     accomplish the information technology objectives of the agency; and

            65914         (vii) the efforts the executive branch agency has taken to conduct transactions
            65915     electronically in compliance with Section 46-4-503 .
            65916         (2) (a) Except as provided in Subsection (2)(b), an agency information technology plan
            65917     described in Subsection (1) shall comply with the executive branch strategic plan established in
            65918     accordance with Section 63F-1-203 .
            65919         (b) If the executive branch agency submitting the agency information technology plan
            65920     justifies the need to depart from the executive branch strategic plan, an agency information
            65921     technology plan may depart from the executive branch strategic plan to the extent approved by
            65922     the chief information officer.
            65923         (3) (a) On receipt of a state agency information technology plan, the chief information
            65924     officer shall forward a complete copy of the agency information technology plan to the Division
            65925     of Enterprise Technology created in Section 63F-1-401 and the Division of Integrated
            65926     Technology created in Section 63F-1-501 .
            65927         (b) The divisions shall provide the chief information officer a written analysis of each
            65928     agency plan submitted in accordance with Sections 63F-1-404 and 63F-1-504 .
            65929         (4) (a) The chief information officer shall review each agency plan to determine:
            65930         (i) (A) whether the agency plan complies with the executive branch strategic plan and
            65931     state information architecture; or
            65932         (B) to the extent that the agency plan does not comply with the executive branch
            65933     strategic plan or state information architecture, whether the executive branch entity is justified
            65934     in departing from the executive branch strategic plan, or state information architecture; and
            65935         (ii) whether the agency plan meets the information technology and other needs of:
            65936         (A) the executive branch agency submitting the plan; and
            65937         (B) the state.
            65938         (b) In conducting the review required by Subsection (4)(a), the chief information officer
            65939     shall consider the analysis submitted by the divisions under Subsection (3).
            65940         (5) After the chief information officer conducts the review described in Subsection (4)
            65941     of an agency information technology plan, the chief information officer may:

            65942         (a) approve the agency information technology plan;
            65943         (b) disapprove the agency information technology plan; or
            65944         (c) recommend modifications to the agency information technology plan.
            65945         (6) An executive branch agency or the department may not submit a request for
            65946     appropriation related to information technology or an information technology system to the
            65947     governor in accordance with Section [ 63-38-2 ] 63J-1-201 until after the executive branch
            65948     agency's information technology plan is approved by the chief information officer.
            65949         Section 1300. Section 63F-1-205 is amended to read:
            65950          63F-1-205. Approval of acquisitions of information technology.
            65951         (1) (a) In accordance with Subsection (2), the chief information officer shall approve
            65952     the acquisition by an executive branch agency of:
            65953         (i) information technology equipment;
            65954         (ii) telecommunications equipment;
            65955         (iii) software;
            65956         (iv) services related to the items listed in Subsections (1)(a)(i) through (iii); and
            65957         (v) data acquisition.
            65958         (b) The chief information officer may negotiate the purchase, lease, or rental of private
            65959     or public information technology or telecommunication services or facilities in accordance with
            65960     this section.
            65961         (c) Where practical, efficient, and economically beneficial, the chief information officer
            65962     shall use existing private and public information technology or telecommunication resources.
            65963         (2) Before negotiating a purchase, lease, or rental under Subsection (1) for an amount
            65964     that exceeds the value established by the chief information officer by rule in accordance with
            65965     Section 63F-1-206 , the chief information officer shall:
            65966         (a) conduct an analysis of the needs of executive branch agencies and subscribers of
            65967     services and the ability of the proposed information technology or telecommunications services
            65968     or supplies to meet those needs; and
            65969         (b) for purchases, leases, or rentals not covered by an existing statewide contract,

            65970     provide in writing to the chief procurement officer in the Division of Purchasing and General
            65971     Services that:
            65972         (i) the analysis required in Subsection (2)(a) was completed; and
            65973         (ii) based on the analysis, the proposed purchase, lease, rental, or master contract of
            65974     services, products, or supplies is practical, efficient, and economically beneficial to the state and
            65975     the executive branch agency or subscriber of services.
            65976         (3) In approving an acquisition described in Subsections (1) and (2), the chief
            65977     information officer shall:
            65978         (a) establish by administrative rule, in accordance with Section 63F-1-206 , standards
            65979     under which an agency must obtain approval from the chief information officer before acquiring
            65980     the items listed in Subsections (1) and (2);
            65981         (b) for those acquisitions requiring approval, determine whether the acquisition is in
            65982     compliance with:
            65983         (i) the executive branch strategic plan;
            65984         (ii) the applicable agency information technology plan;
            65985         (iii) the budget for the executive branch agency or department as adopted by the
            65986     Legislature; and
            65987         (iv) [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code; and
            65988         (c) in accordance with Section 63F-1-207 , require coordination of acquisitions between
            65989     two or more executive branch agencies if it is in the best interests of the state.
            65990         (4) (a) Each executive branch agency shall provide the chief information officer with
            65991     complete access to all information technology records, documents, and reports:
            65992         (i) at the request of the chief information officer; and
            65993         (ii) related to the executive branch agency's acquisition of any item listed in Subsection
            65994     (1).
            65995         (b) Beginning July 1, 2006 and in accordance with administrative rules established by
            65996     the department under Section 63F-1-206 , no new technology projects may be initiated by an
            65997     executive branch agency or the department unless the technology project is described in a

            65998     formal project plan and the business case analysis has been approved by the chief information
            65999     officer and agency head. The project plan and business case analysis required by this Subsection
            66000     (4) shall be in the form required by the chief information officer, and shall include:
            66001         (i) a statement of work to be done and existing work to be modified or displaced;
            66002         (ii) total cost of system development and conversion effort, including system analysis
            66003     and programming costs, establishment of master files, testing, documentation, special equipment
            66004     cost and all other costs, including overhead;
            66005         (iii) savings or added operating costs that will result after conversion;
            66006         (iv) other advantages or reasons that justify the work;
            66007         (v) source of funding of the work, including ongoing costs;
            66008         (vi) consistency with budget submissions and planning components of budgets; and
            66009         (vii) whether the work is within the scope of projects or initiatives envisioned when the
            66010     current fiscal year budget was approved.
            66011         (5) (a) The chief information officer and the Division of Purchasing and General
            66012     Services shall work cooperatively to establish procedures under which the chief information
            66013     officer shall monitor and approve acquisitions as provided in this section.
            66014         (b) The procedures established under this section shall include at least the written
            66015     certification required by Subsection [ 63-56-204 ] 63G-6-204 (8).
            66016         Section 1301. Section 63F-1-206 is amended to read:
            66017          63F-1-206. Rulemaking -- Policies.
            66018         (1) (a) Except as provided in Subsection (2), in accordance with [Title 63, Chapter 46a]
            66019     Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the chief information officer shall
            66020     make rules that:
            66021         (i) provide standards that impose requirements on executive branch agencies that:
            66022         (A) are related to the security of the statewide area network; and
            66023         (B) establish standards for when an agency must obtain approval before obtaining items
            66024     listed in Subsection 63F-1-205 (1);
            66025         (ii) specify the detail and format required in an agency information technology plan

            66026     submitted in accordance with Section 63F-1-204 ;
            66027         (iii) provide for standards related to the privacy policies of websites operated by or on
            66028     behalf of an executive branch agency;
            66029         (iv) provide for the acquisition, licensing, and sale of computer software;
            66030         (v) specify the requirements for the project plan and business case analysis required by
            66031     Section 63F-1-205 ;
            66032         (vi) provide for project oversight of agency technology projects when required by
            66033     Section 63F-1-205 ;
            66034         (vii) establish, in accordance with Subsection 63F-1-205 (2), the implementation of the
            66035     needs assessment for information technology purchases; and
            66036         (viii) establish telecommunications standards and specifications in accordance with
            66037     Section 63F-1-404 .
            66038         (b) The rulemaking authority in this Subsection (1) is in addition to any other
            66039     rulemaking authority granted by this title.
            66040         (2) (a) Notwithstanding [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            66041     Administrative Rulemaking Act, and subject to Subsection (2)(b), the chief information officer
            66042     may adopt a policy that outlines procedures to be followed by the chief information officer in
            66043     facilitating the implementation of this title by executive branch agencies if the policy:
            66044         (i) is consistent with the executive branch strategic plan; and
            66045         (ii) is not required to be made by rule under Subsection (1) or Section [ 63-46a-3 ]
            66046      63G-3-201 .
            66047         (b) (i) A policy adopted by the chief information officer under Subsection (2)(a) may
            66048     not take effect until 30 days after the day on which the chief information officer submits the
            66049     policy to:
            66050         (A) the governor; and
            66051         (B) all cabinet level officials.
            66052         (ii) During the 30-day period described in Subsection (2)(b)(i), cabinet level officials
            66053     may review and comment on a policy submitted under Subsection (2)(b)(i).

            66054         (3) (a) Notwithstanding Subsection (1) or (2) or [Title 63, Chapter 46a] Title 63G,
            66055     Chapter 3, Utah Administrative Rulemaking Act, without following the procedures of
            66056     Subsection (1) or (2), the chief information officer may adopt a security procedure to be
            66057     followed by executive branch agencies to protect the statewide area network if:
            66058         (i) broad communication of the security procedure would create a significant potential
            66059     for increasing the vulnerability of the statewide area network to breach or attack; and
            66060         (ii) after consultation with the chief information officer, the governor agrees that broad
            66061     communication of the security procedure would create a significant potential increase in the
            66062     vulnerability of the statewide area network to breach or attack.
            66063         (b) A security procedure described in Subsection (3)(a) is classified as a protected
            66064     record under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
            66065     Management Act.
            66066         (c) The chief information officer shall provide a copy of the security procedure as a
            66067     protected record to:
            66068         (i) the chief justice of the Utah Supreme Court for the judicial branch;
            66069         (ii) the speaker of the House of Representatives and the president of the Senate for the
            66070     legislative branch;
            66071         (iii) the chair of the Board of Regents; and
            66072         (iv) the chair of the State Board of Education.
            66073         Section 1302. Section 63F-1-207 is amended to read:
            66074          63F-1-207. Coordination within the executive branch -- Cooperation with other
            66075      branches.
            66076         (1) In accordance with the executive branch strategic plan and the requirements of this
            66077     title, the chief information officer shall coordinate the development of information technology
            66078     systems between two or more executive branch agencies subject to:
            66079         (a) the budget approved by the Legislature; and
            66080         (b) [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures Act.
            66081         (2) In addition to the coordination described in Subsection (1), the chief information

            66082     officer shall promote cooperation regarding information technology in a manner consistent with
            66083     the interbranch coordination plan created in accordance with Section 63F-1-201 .
            66084         Section 1303. Section 63F-1-209 is amended to read:
            66085          63F-1-209. Delegation of department staff to executive branch agencies --
            66086      Prohibition against executive branch agency information technology staff.
            66087         (1) (a) The chief information officer shall assign department staff to serve an agency
            66088     in-house if the chief information officer and the executive branch agency director jointly
            66089     determine it is appropriate to provide information technology services to:
            66090         (i) the agency's unique mission critical functions and applications;
            66091         (ii) the agency's participation in and use of statewide enterprise architecture under the
            66092     Division of Enterprise Technology; and
            66093         (iii) the agency's use of coordinated technology services with other agencies that share
            66094     similar characteristics with the agency under the Division of Integrated Technology.
            66095         (b) (i) An agency may request the chief information officer to assign in-house staff
            66096     support from the department.
            66097         (ii) The chief information officer shall respond to the agency's request for in-house staff
            66098     support in accordance with Subsection (1)(a).
            66099         (c) The department shall enter into service agreements with an agency when department
            66100     staff is assigned in-house to the agency under the provisions of this section.
            66101         (d) An agency that receives in-house staff support assigned from the department under
            66102     the provision of this section is responsible for paying the rates charged by the department for
            66103     that staff as established under Section 63F-1-301 .
            66104         (2) (a) After July 1, 2006, an executive branch agency may not create a full-time
            66105     equivalent position or part-time position, or request an appropriation to fund a full-time
            66106     equivalent position or part-time position under the provisions of Section [ 63-38-2 ] 63J-1-201
            66107     for the purpose of providing information technology services to the agency unless:
            66108         (i) the chief information officer has approved a delegation under Section 63F-1-208 ;
            66109     and

            66110         (ii) the Division of Agency Services conducts an audit under Section 63F-1-604 and
            66111     finds that the delegation of information technology services to the agency meets the
            66112     requirements of Section 63F-1-208 .
            66113         (b) The prohibition against a request for appropriation under Subsection (2)(a) does not
            66114     apply to a request for appropriation needed to pay rates imposed under Subsection (1)(d).
            66115         Section 1304. Section 63F-1-301 is amended to read:
            66116          63F-1-301. Cost based services -- Fees -- Rate committee.
            66117         (1) The chief information officer shall:
            66118         (a) at the lowest practical cost, manage the delivery of efficient and cost-effective
            66119     information technology and telecommunication services for:
            66120         (i) all executive branch agencies; and
            66121         (ii) entities that subscribe to the services in accordance with Section 63F-1-303 ; and
            66122         (b) provide priority service to public safety agencies.
            66123         (2) (a) In accordance with this Subsection (2), the chief information officer shall
            66124     prescribe a schedule of fees for all services rendered by the department to:
            66125         (i) an executive branch entity; or
            66126         (ii) an entity that subscribes to services rendered by the department in accordance with
            66127     Section 63F-1-303 .
            66128         (b) Each fee included in the schedule of fees required by Subsection (2)(a):
            66129         (i) shall be equitable;
            66130         (ii) should be based upon a zero based, full cost accounting of activities necessary to
            66131     provide each service for which a fee is established; and
            66132         (iii) for each service multiplied by the projected consumption of the service recovers no
            66133     more or less than the full cost of each service.
            66134         (c) Before charging a fee for its services to an executive branch agency or to a
            66135     subscriber of services other than an executive branch agency, the chief information officer shall:
            66136         (i) submit the proposed rates, fees, and cost analysis to the Rate Committee established
            66137     in Section 63F-1-302 ; and

            66138         (ii) obtain the approval of the Legislature as required by Section [ 63-38-3.5 ] 63J-1-306 .
            66139         (d) The chief information officer shall conduct a market analysis by July 1, 2006, and
            66140     periodically thereafter, of proposed rates and fees, which analysis shall include a comparison of
            66141     the department's rates with the fees of other public or private sector providers where
            66142     comparable services and rates are reasonably available.
            66143         Section 1305. Section 63F-1-302 is amended to read:
            66144          63F-1-302. Information Technology Rate Committee -- Membership -- Duties.
            66145         (1) (a) There is created an Information Technology Rate Committee which shall consist
            66146     of:
            66147         (i) the director of the Governor's Office of Planning and Budget, or a designee;
            66148         (ii) the executive directors, or their designee, of three executive branch agencies that
            66149     use services and pay rates to one of the department internal service funds, appointed by the
            66150     governor for a two-year term;
            66151         (iii) the director of the Division of Finance, or a designee; and
            66152         (iv) the chief information officer.
            66153         (b) (i) The director of the Division of Finance shall serve as chair of the committee.
            66154         (ii) Members of the committee who are state government employees and who do not
            66155     receive salary, per diem, or expenses from their agency for their service on the committee shall
            66156     receive no compensation, benefits, per diem, or expenses for the member's service on the
            66157     committee.
            66158         (c) The department shall provide staff services to the committee.
            66159         (2) (a) Any internal service funds managed by the department shall submit to the
            66160     committee a proposed rate and fee schedule for services rendered by the department to an
            66161     executive branch agency or an entity that subscribes to services rendered by the department.
            66162         (b) The committee shall:
            66163         (i) conduct meetings in accordance with Title 52, Chapter 4, Open and Public Meetings
            66164     Act;
            66165         (ii) review the proposed rate and fee schedule and determine if the proposed fee is

            66166     based on cost recovery as required by Subsection 63F-1-301 (2)(b);
            66167         (iii) review the proposed rate and fee schedules and may approve, increase, or decrease
            66168     the rate and fee;
            66169         (iv) recommend a proposed rate and fee schedule for each internal service fund to:
            66170         (A) the Governor's Office of Planning and Budget; and
            66171         (B) the Office of Legislative Fiscal Analyst for review by the Legislature in accordance
            66172     with Section [ 63-38-3.5 ] 63J-1-306 , which requires the Legislature to approve the internal
            66173     service fund agency's rates, fees, and budget in an appropriations act; and
            66174         (v) in accordance with Section [ 63-38-3.5 ] 63J-1-306 , review and approve, increase or
            66175     decrease an interim rate, fee, or amount when an internal service fund agency begins a new
            66176     service or introduces a new product between annual general sessions of the Legislature, which
            66177     rate, fee, or amount shall be submitted to the Legislature at the next annual general session.
            66178         (c) The committee may in accordance with Subsection [ 63-38-3.5 ] 63J-1-306 (4)
            66179     decrease a rate, fee, or amount that has been approved by the Legislature.
            66180         Section 1306. Section 63F-1-509 is amended to read:
            66181          63F-1-509. Statewide Global Positioning Reference Network created -- Advisory
            66182      committee.
            66183         (1) (a) There is created the Statewide Global Positioning Reference Network to
            66184     improve the quality of geographic information system data and the productivity, efficiency, and
            66185     cost-effectiveness of government services.
            66186         (b) The network shall provide a system of permanently mounted, fully networked,
            66187     global positioning system base stations that will provide real time radio navigation and establish
            66188     a standard statewide coordinate reference system.
            66189         (c) The center shall administer the network.
            66190         (2) (a) There is created the Global Positioning Systems Advisory Committee to advise
            66191     the center on implementing and maintaining the network.
            66192         (b) The committee membership shall consist of:
            66193         (i) the center manager or the manager's designee;

            66194         (ii) a representative from the Department of Transportation created by Section
            66195      72-1-201 designated by the executive director appointed under Section 72-1-202 ;
            66196         (iii) the chief information officer or the chief information officer's designee;
            66197         (iv) a representative from the Utah Association of County Surveyors; and
            66198         (v) a representative from the Utah Council of Land Surveyors.
            66199         (c) The representative from the center shall be the chair of the committee.
            66200         (d) The committee shall meet upon the call of the chair or a majority of the committee
            66201     members.
            66202         (e) The committee chair shall give reasonable notice to each member prior to any
            66203     meeting.
            66204         (f) Three members shall constitute a quorum for the transaction of business.
            66205         (g) The center shall provide staff support to the committee.
            66206         (h) Committee members who are state government employees shall receive no
            66207     additional compensation for their work on the committee.
            66208         (i) Committee members who are not state government employees shall receive no
            66209     compensation or expenses for their work on the committee.
            66210         (j) The committee shall recommend rules to the chief information officer for adoption
            66211     under Subsection (3).
            66212         (3) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            66213     Administrative Rulemaking Act, the chief information officer shall make, in consultation with
            66214     the committee, rules providing for operating policies and procedures for the network.
            66215         (b) The rules shall consider:
            66216         (i) network development that serves a public purpose;
            66217         (ii) increased productivity and efficiency for state agencies; and
            66218         (iii) costs and longevity of the network.
            66219         Section 1307. Section 63G-1-101 is enacted to read:
            66220     
TITLE 63G. GENERAL GOVERNMENT

            66221     
CHAPTER 1. STATE SYMBOLS AND DESIGNATIONS

            66222     
Part 1. General Provisions

            66223          63G-1-101. Title.
            66224         (1) This title is known as "General Government."
            66225         (2) This chapter is known as "State Symbols and Designations."
            66226         Section 1308. Section 63G-1-201 , which is renumbered from Section 63-13-1.5 is
            66227     renumbered and amended to read:
            66228     
Part 2. State Language

            66229          [63-13-1.5].     63G-1-201. Official state language.
            66230         (1) English is declared to be the official language of Utah.
            66231         (2) As the official language of this State, the English language is the sole language of
            66232     the government, except as otherwise provided in this section.
            66233         (3) Except as provided in Subsection (4), all official documents, transactions,
            66234     proceedings, meetings, or publications issued, conducted, or regulated by, on behalf of, or
            66235     representing the state and its political subdivisions shall be in English.
            66236         (4) Languages other than English may be used when required:
            66237         (a) by the United States Constitution, the Utah State Constitution, federal law, or
            66238     federal regulation;
            66239         (b) by law enforcement or public health and safety needs;
            66240         (c) by public and higher education systems according to rules made by the State Board
            66241     of Education and the State Board of Regents to comply with Subsection (5);
            66242         (d) in judicial proceedings, when necessary to insure that justice is served;
            66243         (e) to promote and encourage tourism and economic development, including the
            66244     hosting of international events such as the Olympics; and
            66245         (f) by libraries to:
            66246         (i) collect and promote foreign language materials; and
            66247         (ii) provide foreign language services and activities.
            66248         (5) The State Board of Education and the State Board of Regents shall make rules
            66249     governing the use of foreign languages in the public and higher education systems that promote

            66250     the following principles:
            66251         (a) non-English speaking children and adults should become able to read, write, and
            66252     understand English as quickly as possible;
            66253         (b) foreign language instruction should be encouraged;
            66254         (c) formal and informal programs in English as a Second Language should be initiated,
            66255     continued, and expanded; and
            66256         (d) public schools should establish communication with non-English speaking parents of
            66257     children within their systems, using a means designed to maximize understanding when
            66258     necessary, while encouraging those parents who do not speak English to become more
            66259     proficient in English.
            66260         (6) Unless exempted by Subsection (4), all state funds appropriated or designated for
            66261     the printing or translation of materials or the provision of services or information in a language
            66262     other than English shall be returned to the General Fund.
            66263         (a) Each state agency that has state funds appropriated or designated for the printing or
            66264     translation of materials or the provision of services or information in a language other than
            66265     English shall:
            66266         (i) notify the Division of Finance that those monies exist and the amount of those
            66267     monies; and
            66268         (ii) return those monies to the Division of Finance.
            66269         (b) The Division of Finance shall account for those monies and inform the Legislature
            66270     of the existence and amount of those monies at the beginning of the Legislature's annual general
            66271     session.
            66272         (c) The Legislature may appropriate any monies received under this section to the State
            66273     School Board for use in English as a Second Language programs.
            66274         (7) Nothing in this section affects the ability of government employees, private
            66275     businesses, non-profit organizations, or private individuals to exercise their rights under:
            66276         (a) the First Amendment of the United States Constitution; and
            66277         (b) Utah Constitution, Article 1, Sections 1 and 15.

            66278         (8) If any provision of this section, or the application of any such provision to any
            66279     person or circumstance, is held invalid, the remainder of this act shall be given effect without the
            66280     invalid provision or application.
            66281         Section 1309. Section 63G-1-301 , which is renumbered from Section 63-13-2 is
            66282     renumbered and amended to read:
            66283     
Part 3. State Holidays

            66284          [63-13-2].     63G-1-301. Legal holidays -- Personal preference day -- Governor
            66285      authorized to declare additional days.
            66286         (1) (a) The following-named days are legal holidays in this state:
            66287         (i) every Sunday;
            66288         (ii) January 1, called New Year's Day;
            66289         (iii) the third Monday of January, called Dr. Martin Luther King, Jr. Day;
            66290         (iv) the third Monday of February, called Washington and Lincoln Day;
            66291         (v) the last Monday of May, called Memorial Day;
            66292         (vi) July 4, called Independence Day;
            66293         (vii) July 24, called Pioneer Day;
            66294         (viii) the first Monday of September, called Labor Day;
            66295         (ix) the second Monday of October, called Columbus Day;
            66296         (x) November 11, called Veterans' Day;
            66297         (xi) the fourth Thursday of November, called Thanksgiving Day;
            66298         (xii) December 25, called Christmas; and
            66299         (xiii) all days which may be set apart by the President of the United States, or the
            66300     governor of this state by proclamation as days of fast or thanksgiving.
            66301         (b) If any of the holidays under Subsection (1)(a), except the first mentioned, namely
            66302     Sunday, falls on Sunday, then the following Monday shall be the holiday.
            66303         (c) If any of the holidays under Subsection (1)(a) falls on Saturday the preceding Friday
            66304     shall be the holiday.
            66305         (d) Each employee may select one additional day, called Personal Preference Day, to be

            66306     scheduled pursuant to rules adopted by the Department of Human Resource Management.
            66307         (2) (a) Whenever in [his] the governor's opinion extraordinary conditions exist justifying
            66308     the action, the governor may:
            66309         (i) declare, by proclamation, legal holidays in addition to those holidays under
            66310     Subsection (1); and
            66311         (ii) limit the holidays to certain classes of business and activities to be designated by
            66312     [him] the governor.
            66313         (b) A holiday may not extend for a longer period than 60 consecutive days.
            66314         (c) Any holiday may be renewed for one or more periods not exceeding 30 days each as
            66315     the governor may consider necessary, and any holiday may, by like proclamation, be terminated
            66316     before the expiration of the period for which it was declared.
            66317         Section 1310. Section 63G-1-401 , which is renumbered from Section 63-13-5.6 is
            66318     renumbered and amended to read:
            66319     
Part 4. State Commemorative Periods

            66320          [63-13-5.6].     63G-1-401. Commemorative periods.
            66321         (1) The following days shall be commemorated yearly:
            66322         (a) Bill of Rights Day, on December 15;
            66323         (b) Constitution Day, on September 17;
            66324         (c) Yellow Ribbon Day, on the third Monday in May, in honor of men and women who
            66325     are serving or have served in the U.S. armed forces around the world in defense of freedom;
            66326         (d) POW/MIA Recognition Day, on the third Friday in September; and
            66327         (e) Indigenous People Day, the Monday immediately preceding Thanksgiving.
            66328         (2) The Department of Veterans' Affairs shall coordinate activities, special programs,
            66329     and promotional information to heighten public awareness and involvement relating to
            66330     Subsections (1)(c) and (d).
            66331         (3) The month of November shall be commemorated yearly as American Indian
            66332     Heritage Month.
            66333         (4) The first full week of May shall be commemorated yearly as State Water Week to

            66334     recognize the importance of water conservation, quality, and supply in the state.
            66335         Section 1311. Section 63G-1-501 , which is renumbered from Section 63-13-5 is
            66336     renumbered and amended to read:
            66337     
Part 5. State Flag

            66338          [63-13-5].     63G-1-501. State flag.
            66339         The state flag of Utah shall be a flag of blue field, fringed, with gold borders, with the
            66340     following device worked in natural colors on the center of the blue field:
            66341         The center a shield; above the shield and thereon an American eagle with outstretched
            66342     wings; the top of the shield pierced with six arrows arranged crosswise; upon the shield under
            66343     the arrows the word "Industry," and below the word "Industry" on the center of the shield, a
            66344     beehive; on each side of the beehive, growing sego lilies; below the beehive and near the bottom
            66345     of the shield, the word "Utah," and below the word "Utah" and on the bottom of the shield, the
            66346     figures "1847"; with the appearance of being back of the shield there shall be two American
            66347     flags on flagstaffs placed crosswise with the flag so draped that they will project beyond each
            66348     side of the shield, the heads of the flagstaffs appearing in front of the eagle's wings and the
            66349     bottom of each staff appearing over the face of the draped flag below the shield; below the
            66350     shield and flags and upon the blue field, the figures "1896"; around the entire design, a narrow
            66351     circle in gold.
            66352         Section 1312. Section 63G-1-601 , which is renumbered from Section 63-13-5.5 is
            66353     renumbered and amended to read:
            66354     
Part 6. State Symbols

            66355          [63-13-5.5].     63G-1-601. State symbols.
            66356         (1) Utah's state animal is the elk.
            66357         (2) Utah's state bird is the sea gull.
            66358         (3) Utah's state centennial astronomical symbol is the Beehive Cluster located in the
            66359     constellation of Cancer the Crab.
            66360         (4) Utah's state centennial star is Dubhe, one of the seven bright stars composing the
            66361     Big Dipper in the constellation Ursa Major.

            66362         (5) Utah's state centennial tartan, which honors the first Scots known to have been in
            66363     Utah and those Utahns of Scottish heritage, shall have a pattern or repeating-half-sett of
            66364     white-2, blue-6, red-6, blue-4, red-6, green-18, red-6, and white-4 to represent the tartan worn
            66365     anciently by the Logan and Skene clans, with the addition of a white stripe.
            66366         (6) Utah's state cooking pot is the dutch oven.
            66367         (7) Utah's state emblem is the beehive.
            66368         (8) Utah's state fish is the Bonneville cutthroat trout.
            66369         (9) Utah's state flower is the sego lily.
            66370         (10) Utah's state folk dance is the square dance, the folk dance that is called, cued, or
            66371     prompted to the dancers and includes squares, rounds, clogging, contra, line, and heritage
            66372     dances.
            66373         (11) Utah's state fossil is the Allosaurus.
            66374         (12) Utah's state fruit is the cherry.
            66375         (13) Utah's state vegetable is the Spanish sweet onion.
            66376         (14) Utah's historic state vegetable is the sugar beet.
            66377         (15) Utah's state gem is topaz, as is prominently found in the Thomas Mountain Range
            66378     in Juab County, Utah.
            66379         (16) Utah's state grass is Indian rice grass.
            66380         (17) Utah's state hymn is "Utah We Love Thee" by Evan Stephens.
            66381         (18) Utah's state insect is the honeybee.
            66382         (19) Utah's state mineral is copper.
            66383         (20) Utah's state motto is "Industry."
            66384         (21) Utah's state railroad museum is Ogden Union Station.
            66385         (22) Utah's state rock is coal.
            66386         (23) Utah's state song is "Utah This is the Place" by Sam and Gary Francis.
            66387         (24) Utah's state tree is the blue spruce.
            66388         Section 1313. Section 63G-2-101 , which is renumbered from Section 63-2-101 is
            66389     renumbered and amended to read:

            66390     
CHAPTER 2. GOVERNMENT RECORDS ACCESS AND MANAGEMENT ACT

            66391     
Part 1. General Provisions

            66392          [63-2-101].     63G-2-101. Title.
            66393         This chapter is known as the "Government Records Access and Management Act."
            66394         Section 1314. Section 63G-2-102 , which is renumbered from Section 63-2-102 is
            66395     renumbered and amended to read:
            66396          [63-2-102].     63G-2-102. Legislative intent.
            66397         (1) In enacting this act, the Legislature recognizes two constitutional rights:
            66398         (a) the public's right of access to information concerning the conduct of the public's
            66399     business; and
            66400         (b) the right of privacy in relation to personal data gathered by governmental entities.
            66401         (2) The Legislature also recognizes a public policy interest in allowing a government to
            66402     restrict access to certain records, as specified in this chapter, for the public good.
            66403         (3) It is the intent of the Legislature to:
            66404         (a) promote the public's right of easy and reasonable access to unrestricted public
            66405     records;
            66406         (b) specify those conditions under which the public interest in allowing restrictions on
            66407     access to records may outweigh the public's interest in access;
            66408         (c) prevent abuse of confidentiality by governmental entities by permitting confidential
            66409     treatment of records only as provided in this chapter;
            66410         (d) provide guidelines for both disclosure and restrictions on access to government
            66411     records, which are based on the equitable weighing of the pertinent interests and which are
            66412     consistent with nationwide standards of information practices;
            66413         (e) favor public access when, in the application of this act, countervailing interests are
            66414     of equal weight; and
            66415         (f) establish fair and reasonable records management practices.
            66416         Section 1315. Section 63G-2-103 , which is renumbered from Section 63-2-103 is
            66417     renumbered and amended to read:

            66418          [63-2-103].     63G-2-103. Definitions.
            66419         As used in this chapter:
            66420         (1) "Audit" means:
            66421         (a) a systematic examination of financial, management, program, and related records for
            66422     the purpose of determining the fair presentation of financial statements, adequacy of internal
            66423     controls, or compliance with laws and regulations; or
            66424         (b) a systematic examination of program procedures and operations for the purpose of
            66425     determining their effectiveness, economy, efficiency, and compliance with statutes and
            66426     regulations.
            66427         (2) "Chronological logs" mean the regular and customary summary records of law
            66428     enforcement agencies and other public safety agencies that show:
            66429         (a) the time and general nature of police, fire, and paramedic calls made to the agency;
            66430     and
            66431         (b) [and] any arrests or jail bookings made by the agency.
            66432         (3) "Classification," "classify," and their derivative forms mean determining whether a
            66433     record series, record, or information within a record is public, private, controlled, protected, or
            66434     exempt from disclosure under Subsection [ 63-2-201 ] 63G-2-201 (3)(b).
            66435         (4) (a) "Computer program" means:
            66436         (i) a series of instructions or statements that permit the functioning of a computer
            66437     system in a manner designed to provide storage, retrieval, and manipulation of data from the
            66438     computer system; and
            66439         (ii) any associated documentation and source material that explain how to operate the
            66440     computer program.
            66441         (b) "Computer program" does not mean:
            66442         (i) the original data, including numbers, text, voice, graphics, and images;
            66443         (ii) analysis, compilation, and other manipulated forms of the original data produced by
            66444     use of the program; or
            66445         (iii) the mathematical or statistical formulas, excluding the underlying mathematical

            66446     algorithms contained in the program, that would be used if the manipulated forms of the original
            66447     data were to be produced manually.
            66448         (5) (a) "Contractor" means:
            66449         (i) any person who contracts with a governmental entity to provide goods or services
            66450     directly to a governmental entity; or
            66451         (ii) any private, nonprofit organization that receives funds from a governmental entity.
            66452         (b) "Contractor" does not mean a private provider.
            66453         (6) "Controlled record" means a record containing data on individuals that is controlled
            66454     as provided by Section [ 63-2-303 ] 63G-2-304 .
            66455         (7) "Designation," "designate," and their derivative forms mean indicating, based on a
            66456     governmental entity's familiarity with a record series or based on a governmental entity's review
            66457     of a reasonable sample of a record series, the primary classification that a majority of records in
            66458     a record series would be given if classified and the classification that other records typically
            66459     present in the record series would be given if classified.
            66460         (8) "Elected official" means each person elected to a state office, county office,
            66461     municipal office, school board or school district office, local district office, or special service
            66462     district office, but does not include judges.
            66463         (9) "Explosive" means a chemical compound, device, or mixture:
            66464         (a) commonly used or intended for the purpose of producing an explosion; and
            66465         (b) that contains oxidizing or combustive units or other ingredients in proportions,
            66466     quantities, or packing so that:
            66467         (i) an ignition by fire, friction, concussion, percussion, or detonator of any part of the
            66468     compound or mixture may cause a sudden generation of highly heated gases; and
            66469         (ii) the resultant gaseous pressures are capable of:
            66470         (A) producing destructive effects on contiguous objects; or
            66471         (B) causing death or serious bodily injury.
            66472         (10) "Government audit agency" means any governmental entity that conducts an audit.
            66473         (11) (a) "Governmental entity" means:

            66474         (i) executive department agencies of the state, the offices of the governor, lieutenant
            66475     governor, state auditor, attorney general, and state treasurer, the Board of Pardons and Parole,
            66476     the Board of Examiners, the National Guard, the Career Service Review Board, the State Board
            66477     of Education, the State Board of Regents, and the State Archives;
            66478         (ii) the Office of the Legislative Auditor General, Office of the Legislative Fiscal
            66479     Analyst, Office of Legislative Research and General Counsel, the Legislature, and legislative
            66480     committees, except any political party, group, caucus, or rules or sifting committee of the
            66481     Legislature;
            66482         (iii) courts, the Judicial Council, the Office of the Court Administrator, and similar
            66483     administrative units in the judicial branch;
            66484         (iv) any state-funded institution of higher education or public education; or
            66485         (v) any political subdivision of the state, but, if a political subdivision has adopted an
            66486     ordinance or a policy relating to information practices pursuant to Section [ 63-2-701 ]
            66487      63G-2-701 , this chapter shall apply to the political subdivision to the extent specified in Section
            66488     [ 63-2-701 ] 63G-2-701 or as specified in any other section of this chapter that specifically refers
            66489     to political subdivisions.
            66490         (b) "Governmental entity" also means every office, agency, board, bureau, committee,
            66491     department, advisory board, or commission of an entity listed in Subsection (11)(a) that is
            66492     funded or established by the government to carry out the public's business.
            66493         (12) "Gross compensation" means every form of remuneration payable for a given
            66494     period to an individual for services provided including salaries, commissions, vacation pay,
            66495     severance pay, bonuses, and any board, rent, housing, lodging, payments in kind, and any
            66496     similar benefit received from the individual's employer.
            66497         (13) "Individual" means a human being.
            66498         (14) (a) "Initial contact report" means an initial written or recorded report, however
            66499     titled, prepared by peace officers engaged in public patrol or response duties describing official
            66500     actions initially taken in response to either a public complaint about or the discovery of an
            66501     apparent violation of law, which report may describe:

            66502         (i) the date, time, location, and nature of the complaint, the incident, or offense;
            66503         (ii) names of victims;
            66504         (iii) the nature or general scope of the agency's initial actions taken in response to the
            66505     incident;
            66506         (iv) the general nature of any injuries or estimate of damages sustained in the incident;
            66507         (v) the name, address, and other identifying information about any person arrested or
            66508     charged in connection with the incident; or
            66509         (vi) the identity of the public safety personnel, except undercover personnel, or
            66510     prosecuting attorney involved in responding to the initial incident.
            66511         (b) Initial contact reports do not include follow-up or investigative reports prepared
            66512     after the initial contact report. However, if the information specified in Subsection (14)(a)
            66513     appears in follow-up or investigative reports, it may only be treated confidentially if it is private,
            66514     controlled, protected, or exempt from disclosure under Subsection [ 63-2-201 ]
            66515      63G-2-201 (3)(b).
            66516         (15) "Legislative body" means the Legislature.
            66517         (16) "Notice of compliance" means a statement confirming that a governmental entity
            66518     has complied with a records committee order.
            66519         (17) "Person" means:
            66520         (a) an individual;
            66521         (b) a nonprofit or profit corporation;
            66522         (c) a partnership;
            66523         (d) a sole proprietorship;
            66524         (e) other type of business organization; or
            66525         (f) any combination acting in concert with one another.
            66526         (18) "Private provider" means any person who contracts with a governmental entity to
            66527     provide services directly to the public.
            66528         (19) "Private record" means a record containing data on individuals that is private as
            66529     provided by Section [ 63-2-302 ] 63G-2-302 .

            66530         (20) "Protected record" means a record that is classified protected as provided by
            66531     Section [ 63-2-304 ] 63G-2-305 .
            66532         (21) "Public record" means a record that is not private, controlled, or protected and that
            66533     is not exempt from disclosure as provided in Subsection [ 63-2-201 ] 63G-2-201 (3)(b).
            66534         (22) (a) "Record" means a book, letter, document, paper, map, plan, photograph, film,
            66535     card, tape, recording, electronic data, or other documentary material regardless of physical form
            66536     or characteristics:
            66537         (i) that is prepared, owned, received, or retained by a governmental entity or political
            66538     subdivision; and
            66539         (ii) where all of the information in the original is reproducible by photocopy or other
            66540     mechanical or electronic means.
            66541         (b) "Record" does not mean:
            66542         (i) a personal note or personal communication prepared or received by an employee or
            66543     officer of a governmental entity in the employee's or officer's private capacity;
            66544         (ii) a temporary draft or similar material prepared for the originator's personal use or
            66545     prepared by the originator for the personal use of an individual for whom the originator is
            66546     working;
            66547         (iii) material that is legally owned by an individual in the individual's private capacity;
            66548         (iv) material to which access is limited by the laws of copyright or patent unless the
            66549     copyright or patent is owned by a governmental entity or political subdivision;
            66550         (v) proprietary software;
            66551         (vi) junk mail or a commercial publication received by a governmental entity or an
            66552     official or employee of a governmental entity;
            66553         (vii) a book that is cataloged, indexed, or inventoried and contained in the collections of
            66554     a library open to the public;
            66555         (viii) material that is cataloged, indexed, or inventoried and contained in the collections
            66556     of a library open to the public, regardless of physical form or characteristics of the material;
            66557         (ix) a daily calendar or other personal note prepared by the originator for the

            66558     originator's personal use or for the personal use of an individual for whom the originator is
            66559     working;
            66560         (x) a computer program that is developed or purchased by or for any governmental
            66561     entity for its own use;
            66562         (xi) a note or internal memorandum prepared as part of the deliberative process by:
            66563         (A) a member of the judiciary;
            66564         (B) an administrative law judge;
            66565         (C) a member of the Board of Pardons and Parole; or
            66566         (D) a member of any other body charged by law with performing a quasi-judicial
            66567     function; or
            66568         (xii) a telephone number or similar code used to access a mobile communication device
            66569     that is used by an employee or officer of a governmental entity, provided that the employee or
            66570     officer of the governmental entity has designated at least one business telephone number that is
            66571     a public record as provided in Section [ 63-2-301 ] 63G-2-301 .
            66572         (23) "Record series" means a group of records that may be treated as a unit for
            66573     purposes of designation, description, management, or disposition.
            66574         (24) "Records committee" means the State Records Committee created in Section
            66575     [ 63-2-501 ] 63G-2-501 .
            66576         (25) "Records officer" means the individual appointed by the chief administrative officer
            66577     of each governmental entity, or the political subdivision to work with state archives in the care,
            66578     maintenance, scheduling, designation, classification, disposal, and preservation of records.
            66579         (26) "Schedule," "scheduling," and their derivative forms mean the process of
            66580     specifying the length of time each record series should be retained by a governmental entity for
            66581     administrative, legal, fiscal, or historical purposes and when each record series should be
            66582     transferred to the state archives or destroyed.
            66583         (27) "Sponsored research" means research, training, and other sponsored activities as
            66584     defined by the federal Executive Office of the President, Office of Management and Budget:
            66585         (a) conducted:

            66586         (i) by an institution within the state system of higher education defined in Section
            66587      53B-1-102 ; and
            66588         (ii) through an office responsible for sponsored projects or programs; and
            66589         (b) funded or otherwise supported by an external:
            66590         (i) person that is not created or controlled by the institution within the state system of
            66591     higher education; or
            66592         (ii) federal, state, or local governmental entity.
            66593         (28) "State archives" means the Division of Archives and Records Service created in
            66594     Section [ 63-2-901 ] 63A-12-101 .
            66595         (29) "State archivist" means the director of the state archives.
            66596         (30) "Summary data" means statistical records and compilations that contain data
            66597     derived from private, controlled, or protected information but that do not disclose private,
            66598     controlled, or protected information.
            66599         Section 1316. Section 63G-2-104 , which is renumbered from Section 63-2-104 is
            66600     renumbered and amended to read:
            66601          [63-2-104].     63G-2-104. Administrative Procedures Act not applicable.
            66602         [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, does not
            66603     apply to this chapter except as provided in Section [ 63-2-603 ] 63G-2-603 .
            66604         Section 1317. Section 63G-2-105 , which is renumbered from Section 63-2-105 is
            66605     renumbered and amended to read:
            66606          [63-2-105].     63G-2-105. Confidentiality agreements.
            66607         If a governmental entity or political subdivision receives a request for a record that is
            66608     subject to a confidentiality agreement executed before April 1, 1992, the law in effect at the
            66609     time the agreement was executed, including late judicial interpretations of the law, shall govern
            66610     access to the record, unless all parties to the confidentiality agreement agree in writing to be
            66611     governed by the provisions of this chapter.
            66612         Section 1318. Section 63G-2-106 , which is renumbered from Section 63-2-106 is
            66613     renumbered and amended to read:

            66614          [63-2-106].     63G-2-106. Records of security measures.
            66615         The records of a governmental entity or political subdivision regarding security
            66616     measures designed for the protection of persons or property, public or private, are not subject
            66617     to this chapter. These records include:
            66618         (1) security plans;
            66619         (2) security codes and combinations, and passwords;
            66620         (3) passes and keys;
            66621         (4) security procedures; and
            66622         (5) building and public works designs, to the extent that the records or information
            66623     relate to the ongoing security measures of a public entity.
            66624         Section 1319. Section 63G-2-107 , which is renumbered from Section 63-2-107 is
            66625     renumbered and amended to read:
            66626          [63-2-107].     63G-2-107. Disclosure of records subject to federal law.
            66627         Notwithstanding the provisions of Subsections [ 63-2-201 ] 63G-2-201 (6)(a) and (b), this
            66628     chapter does not apply to a record containing protected health information as defined in 45
            66629     C.F.R., Part 164, Standards for Privacy of Individually Identifiable Health Information, if the
            66630     record is:
            66631         (1) controlled or maintained by a governmental entity; and
            66632         (2) governed by 45 C.F.R., Parts 160 and 164, Standards for Privacy of Individually
            66633     Identifiable Health Information.
            66634         Section 1320. Section 63G-2-201 , which is renumbered from Section 63-2-201 is
            66635     renumbered and amended to read:
            66636     
Part 2. Access to Records

            66637          [63-2-201].     63G-2-201. Right to inspect records and receive copies of records.
            66638         (1) Every person has the right to inspect a public record free of charge, and the right to
            66639     take a copy of a public record during normal working hours, subject to Sections [ 63-2-203 ]
            66640      63G-2-203 and [ 63-2-204 ] 63G-2-204 .
            66641         (2) A record is public unless otherwise expressly provided by statute.

            66642         (3) The following records are not public:
            66643         (a) a record that is private, controlled, or protected under Sections [ 63-2-302 ]
            66644      63G-2-302 , [ 63-2-302.5 ] 63G-2-303 , [ 63-2-303 ] 63G-2-304 , and [ 63-2-304 ] 63G-2-305 ; and
            66645         (b) a record to which access is restricted pursuant to court rule, another state statute,
            66646     federal statute, or federal regulation, including records for which access is governed or
            66647     restricted as a condition of participation in a state or federal program or for receiving state or
            66648     federal funds.
            66649         (4) Only a record specified in Section [ 63-2-302 ] 63G-2-302 , [ 63-2-302.5 ] 63G-2-303 ,
            66650     [ 63-2-303 ] 63G-2-304 , or [ 63-2-304 ] 63G-2-305 may be classified private, controlled, or
            66651     protected.
            66652         (5) (a) A governmental entity may not disclose a record that is private, controlled, or
            66653     protected to any person except as provided in Subsection (5)(b), Subsection (5)(c), Section
            66654     [ 63-2-202 ] 63G-2-202 , [ 63-2-206 ] 63G-2-206 , or [ 63-2-302.5 ] 63G-2-303 .
            66655         (b) A governmental entity may disclose a record that is private under Subsection
            66656     [ 63-2-302 ] 63G-2-302 (2) or protected under Section [ 63-2-304 ] 63G-2-305 to persons other
            66657     than those specified in Section [ 63-2-202 ] 63G-2-202 or [ 63-2-206 ] 63G-2-206 if the head of a
            66658     governmental entity, or a designee, determines that:
            66659         (i) there is no interest in restricting access to the record; or
            66660         (ii) the interests favoring access outweighs the interest favoring restriction of access.
            66661         (c) In addition to the disclosure under Subsection (5)(b), a governmental entity may
            66662     disclose a record that is protected under Subsection [ 63-2-304 ] 63G-2-305 (51) if:
            66663         (i) the head of the governmental entity, or a designee, determines that the disclosure:
            66664         (A) is mutually beneficial to:
            66665         (I) the subject of the record;
            66666         (II) the governmental entity; and
            66667         (III) the public; and
            66668         (B) serves a public purpose related to:
            66669         (I) public safety; or

            66670         (II) consumer protection; and
            66671         (ii) the person who receives the record from the governmental entity agrees not to use
            66672     or allow the use of the record for advertising or solicitation purposes.
            66673         (6) (a) The disclosure of a record to which access is governed or limited pursuant to
            66674     court rule, another state statute, federal statute, or federal regulation, including a record for
            66675     which access is governed or limited as a condition of participation in a state or federal program
            66676     or for receiving state or federal funds, is governed by the specific provisions of that statute, rule,
            66677     or regulation.
            66678         (b) This chapter applies to records described in Subsection (6)(a) insofar as this chapter
            66679     is not inconsistent with the statute, rule, or regulation.
            66680         (7) A governmental entity shall provide a person with a certified copy of a record if:
            66681         (a) the person requesting the record has a right to inspect it;
            66682         (b) the person identifies the record with reasonable specificity; and
            66683         (c) the person pays the lawful fees.
            66684         (8) (a) In response to a request, a governmental entity is not required to:
            66685         (i) create a record;
            66686         (ii) compile, format, manipulate, package, summarize, or tailor information;
            66687         (iii) provide a record in a particular format, medium, or program not currently
            66688     maintained by the governmental entity;
            66689         (iv) fulfill a person's records request if the request unreasonably duplicates prior records
            66690     requests from that person; or
            66691         (v) fill a person's records request if:
            66692         (A) the record requested is accessible in the identical physical form and content in a
            66693     public publication or product produced by the governmental entity receiving the request;
            66694         (B) the governmental entity provides the person requesting the record with the public
            66695     publication or product; and
            66696         (C) the governmental entity specifies where the record can be found in the public
            66697     publication or product.

            66698         (b) Upon request, a governmental entity may provide a record in a particular form
            66699     under Subsection (8)(a)(ii) or (iii) if:
            66700         (i) the governmental entity determines it is able to do so without unreasonably
            66701     interfering with the governmental entity's duties and responsibilities; and
            66702         (ii) the requester agrees to pay the governmental entity for providing the record in the
            66703     requested form in accordance with Section [ 63-2-203 ] 63G-2-203 .
            66704         (9) (a) A governmental entity may allow a person requesting more than 50 pages of
            66705     records to copy the records if:
            66706         (i) the records are contained in files that do not contain records that are exempt from
            66707     disclosure, or the records may be segregated to remove private, protected, or controlled
            66708     information from disclosure; and
            66709         (ii) the governmental entity provides reasonable safeguards to protect the public from
            66710     the potential for loss of a public record.
            66711         (b) When the requirements of Subsection (9)(a) are met, the governmental entity may:
            66712         (i) provide the requester with the facilities for copying the requested records and
            66713     require that the requester make the copies; or
            66714         (ii) allow the requester to provide the requester's own copying facilities and personnel
            66715     to make the copies at the governmental entity's offices and waive the fees for copying the
            66716     records.
            66717         (10) (a) A governmental entity that owns an intellectual property right and that offers
            66718     the intellectual property right for sale or license may control by ordinance or policy the
            66719     duplication and distribution of the material based on terms the governmental entity considers to
            66720     be in the public interest.
            66721         (b) Nothing in this chapter shall be construed to limit or impair the rights or protections
            66722     granted to the governmental entity under federal copyright or patent law as a result of its
            66723     ownership of the intellectual property right.
            66724         (11) A governmental entity may not use the physical form, electronic or otherwise, in
            66725     which a record is stored to deny, or unreasonably hinder the rights of a person to inspect and

            66726     receive a copy of a record under this chapter.
            66727         (12) A governmental entity may provide access to an electronic copy of a record in lieu
            66728     of providing access to its paper equivalent.
            66729         Section 1321. Section 63G-2-202 , which is renumbered from Section 63-2-202 is
            66730     renumbered and amended to read:
            66731          [63-2-202].     63G-2-202. Access to private, controlled, and protected documents.
            66732         (1) Upon request, a governmental entity shall disclose a private record to:
            66733         (a) the subject of the record;
            66734         (b) the parent or legal guardian of an unemancipated minor who is the subject of the
            66735     record;
            66736         (c) the legal guardian of a legally incapacitated individual who is the subject of the
            66737     record;
            66738         (d) any other individual who:
            66739         (i) has a power of attorney from the subject of the record;
            66740         (ii) submits a notarized release from the subject of the record or [his] the individual's
            66741     legal representative dated no more than 90 days before the date the request is made; or
            66742         (iii) if the record is a medical record described in Subsection [ 63-2-302 ]
            66743      63G-2-302 (1)(b), is a health care provider, as defined in Section 26-33a-102 , if releasing the
            66744     record or information in the record is consistent with normal professional practice and medical
            66745     ethics; or
            66746         (e) any person to whom the record must be provided pursuant to:
            66747         (i) court order as provided in Subsection (7); or
            66748         (ii) a legislative subpoena as provided in Title 36, Chapter 14.
            66749         (2) (a) Upon request, a governmental entity shall disclose a controlled record to:
            66750         (i) a physician, psychologist, certified social worker, insurance provider or producer, or
            66751     a government public health agency upon submission of:
            66752         (A) a release from the subject of the record that is dated no more than 90 days prior to
            66753     the date the request is made; and

            66754         (B) a signed acknowledgment of the terms of disclosure of controlled information as
            66755     provided by Subsection (2)(b); and
            66756         (ii) any person to whom the record must be disclosed pursuant to:
            66757         (A) a court order as provided in Subsection (7); or
            66758         (B) a legislative subpoena as provided in Title 36, Chapter 14.
            66759         (b) A person who receives a record from a governmental entity in accordance with
            66760     Subsection (2)(a)(i) may not disclose controlled information from that record to any person,
            66761     including the subject of the record.
            66762         (3) If there is more than one subject of a private or controlled record, the portion of the
            66763     record that pertains to another subject shall be segregated from the portion that the requester is
            66764     entitled to inspect.
            66765         (4) Upon request, a governmental entity shall disclose a protected record to:
            66766         (a) the person who submitted the record;
            66767         (b) any other individual who:
            66768         (i) has a power of attorney from all persons, governmental entities, or political
            66769     subdivisions whose interests were sought to be protected by the protected classification; or
            66770         (ii) submits a notarized release from all persons, governmental entities, or political
            66771     subdivisions whose interests were sought to be protected by the protected classification or from
            66772     their legal representatives dated no more than 90 days prior to the date the request is made;
            66773         (c) any person to whom the record must be provided pursuant to:
            66774         (i) a court order as provided in Subsection (7); or
            66775         (ii) a legislative subpoena as provided in Title 36, Chapter 14; or
            66776         (d) the owner of a mobile home park, subject to the conditions of Subsection
            66777      41-1a-116 (5).
            66778         (5) A governmental entity may disclose a private, controlled, or protected record to
            66779     another governmental entity, political subdivision, another state, the United States, or a foreign
            66780     government only as provided by Section [ 63-2-206 ] 63G-2-206 .
            66781         (6) Before releasing a private, controlled, or protected record, the governmental entity

            66782     shall obtain evidence of the requester's identity.
            66783         (7) A governmental entity shall disclose a record pursuant to the terms of a court order
            66784     signed by a judge from a court of competent jurisdiction, provided that:
            66785         (a) the record deals with a matter in controversy over which the court has jurisdiction;
            66786         (b) the court has considered the merits of the request for access to the record; and
            66787         (c) the court has considered and, where appropriate, limited the requester's use and
            66788     further disclosure of the record in order to protect:
            66789         (i) privacy interests in the case of private or controlled records;
            66790         (ii) business confidentiality interests in the case of records protected under Subsection
            66791     [ 63-2-304 ] 63G-2-305 (1), (2), (40)(a)(ii), or (40)(a)(vi); and
            66792         (iii) privacy interests or the public interest in the case of other protected records;
            66793         (d) to the extent the record is properly classified private, controlled, or protected, the
            66794     interests favoring access, considering limitations thereon, outweigh the interests favoring
            66795     restriction of access; and
            66796         (e) where access is restricted by a rule, statute, or regulation referred to in Subsection
            66797     [ 63-2-201 ] 63G-2-201 (3)(b), the court has authority independent of this chapter to order
            66798     disclosure.
            66799         (8) (a) A governmental entity may disclose or authorize disclosure of private or
            66800     controlled records for research purposes if the governmental entity:
            66801         (i) determines that the research purpose cannot reasonably be accomplished without use
            66802     or disclosure of the information to the researcher in individually identifiable form;
            66803         (ii) determines that:
            66804         (A) the proposed research is bona fide; and
            66805         (B) the value of the research outweighs the infringement upon personal privacy;
            66806         (iii) (A) requires the researcher to assure the integrity, confidentiality, and security of
            66807     the records; and
            66808         (B) requires the removal or destruction of the individual identifiers associated with the
            66809     records as soon as the purpose of the research project has been accomplished;

            66810         (iv) prohibits the researcher from:
            66811         (A) disclosing the record in individually identifiable form, except as provided in
            66812     Subsection (8)(b); or
            66813         (B) using the record for purposes other than the research approved by the governmental
            66814     entity; and
            66815         (v) secures from the researcher a written statement of the researcher's understanding of
            66816     and agreement to the conditions of this Subsection (8) and the researcher's understanding that
            66817     violation of the terms of this Subsection (8) may subject the researcher to criminal prosecution
            66818     under Section [ 63-2-801 ] 63G-2-801 .
            66819         (b) A researcher may disclose a record in individually identifiable form if the record is
            66820     disclosed for the purpose of auditing or evaluating the research program and no subsequent use
            66821     or disclosure of the record in individually identifiable form will be made by the auditor or
            66822     evaluator except as provided by this section.
            66823         (c) A governmental entity may require indemnification as a condition of permitting
            66824     research under this Subsection (8).
            66825         (9) (a) Under Subsections [ 63-2-201 ] 63G-2-201 (5)(b) and [ 63-2-401 ] 63G-2-401 (6),
            66826     a governmental entity may disclose to persons other than those specified in this section records
            66827     that are:
            66828         (i) private under Section [ 63-2-302 ] 63G-2-302 ; or
            66829         (ii) protected under Section [ 63-2-304 ] 63G-2-305 subject to Section [ 63-2-308 ]
            66830      63G-2-309 if a claim for business confidentiality has been made under Section [ 63-2-308 ]
            66831      63G-2-309 .
            66832         (b) Under Subsection [ 63-2-403 ] 63G-2-403 (11)(b), the records committee may require
            66833     the disclosure to persons other than those specified in this section of records that are:
            66834         (i) private under Section [ 63-2-302 ] 63G-2-302 ;
            66835         (ii) controlled under Section [ 63-2-303 ] 63G-2-304 ; or
            66836         (iii) protected under Section [ 63-2-304 ] 63G-2-305 subject to Section [ 63-2-308 ]
            66837      63G-2-309 if a claim for business confidentiality has been made under Section [ 63-2-308 ]

            66838      63G-2-309 .
            66839         (c) Under Subsection [ 63-2-404 ] 63G-2-404 (8), the court may require the disclosure of
            66840     records that are private under Section [ 63-2-302 ] 63G-2-302 , controlled under Section
            66841     [ 63-2-303 ] 63G-2-304 , or protected under Section [ 63-2-304 ] 63G-2-305 to persons other than
            66842     those specified in this section.
            66843         Section 1322. Section 63G-2-203 , which is renumbered from Section 63-2-203 is
            66844     renumbered and amended to read:
            66845          [63-2-203].     63G-2-203. Fees.
            66846         (1) A governmental entity may charge a reasonable fee to cover the governmental
            66847     entity's actual cost of providing a record. This fee shall be approved by the governmental
            66848     entity's executive officer.
            66849         (2) (a) When a governmental entity compiles a record in a form other than that normally
            66850     maintained by the governmental entity, the actual costs under this section may include the
            66851     following:
            66852         (i) the cost of staff time for compiling, formatting, manipulating, packaging,
            66853     summarizing, or tailoring the record either into an organization or media to meet the person's
            66854     request;
            66855         (ii) the cost of staff time for search, retrieval, and other direct administrative costs for
            66856     complying with a request; and
            66857         (iii) in the case of fees for a record that is the result of computer output other than word
            66858     processing, the actual incremental cost of providing the electronic services and products
            66859     together with a reasonable portion of the costs associated with formatting or interfacing the
            66860     information for particular users, and the administrative costs as set forth in Subsections (2)(a)(i)
            66861     and (ii).
            66862         (b) An hourly charge under Subsection (2)(a) may not exceed the salary of the lowest
            66863     paid employee who, in the discretion of the custodian of records, has the necessary skill and
            66864     training to perform the request.
            66865         (c) Notwithstanding Subsections (2)(a) and (b), no charge may be made for the first

            66866     quarter hour of staff time.
            66867         (3) (a) Fees shall be established as provided in this Subsection (3).
            66868         (b) A governmental entity with fees established by the Legislature:
            66869         (i) shall establish the fees defined in Subsection (2), or other actual costs associated
            66870     with this section through the budget process; and
            66871         (ii) may use the procedures of Section [ 63-38-3.2 ] 63J-1-303 to set fees until the
            66872     Legislature establishes fees through the budget process.
            66873         (c) Political subdivisions shall establish fees by ordinance or written formal policy
            66874     adopted by the governing body.
            66875         (d) The judiciary shall establish fees by rules of the judicial council.
            66876         (4) A governmental entity may fulfill a record request without charge and is encouraged
            66877     to do so when it determines that:
            66878         (a) releasing the record primarily benefits the public rather than a person;
            66879         (b) the individual requesting the record is the subject of the record, or an individual
            66880     specified in Subsection [ 63-2-202 ] 63G-2-202 (1) or (2); or
            66881         (c) the requester's legal rights are directly implicated by the information in the record,
            66882     and the requester is impecunious.
            66883         (5) A governmental entity may not charge a fee for:
            66884         (a) reviewing a record to determine whether it is subject to disclosure, except as
            66885     permitted by Subsection (2)(a)(ii); or
            66886         (b) inspecting a record.
            66887         (6) (a) A person who believes that there has been an unreasonable denial of a fee waiver
            66888     under Subsection (4) may appeal the denial in the same manner as a person appeals when
            66889     inspection of a public record is denied under Section [ 63-2-205 ] 63G-2-205 .
            66890         (b) The adjudicative body hearing the appeal has the same authority when a fee waiver
            66891     or reduction is denied as it has when the inspection of a public record is denied.
            66892         (7) (a) All fees received under this section by a governmental entity subject to
            66893     Subsection (3)(b) shall be retained by the governmental entity as a dedicated credit.

            66894         (b) Those funds shall be used to recover the actual cost and expenses incurred by the
            66895     governmental entity in providing the requested record or record series.
            66896         (8) (a) A governmental entity may require payment of past fees and future estimated
            66897     fees before beginning to process a request if:
            66898         (i) fees are expected to exceed $50; or
            66899         (ii) the requester has not paid fees from previous requests.
            66900         (b) Any prepaid amount in excess of fees due shall be returned to the requester.
            66901         (9) This section does not alter, repeal, or reduce fees established by other statutes or
            66902     legislative acts.
            66903         (10) (a) Notwithstanding Subsection (3)(c), fees for voter registration records shall be
            66904     set as provided in this Subsection (10).
            66905         (b) The lieutenant governor shall:
            66906         (i) after consultation with county clerks, establish uniform fees for voter registration
            66907     and voter history records that meet the requirements of this section; and
            66908         (ii) obtain legislative approval of those fees by following the procedures and
            66909     requirements of Section [ 63-38-3.2 ] 63J-1-303 .
            66910         Section 1323. Section 63G-2-204 , which is renumbered from Section 63-2-204 is
            66911     renumbered and amended to read:
            66912          [63-2-204].     63G-2-204. Requests -- Time limit for response and extraordinary
            66913      circumstances.
            66914         (1) A person making a request for a record shall furnish the governmental entity with a
            66915     written request containing:
            66916         (a) the person's name, mailing address, and daytime telephone number, if available; and
            66917         (b) a description of the record requested that identifies the record with reasonable
            66918     specificity.
            66919         (2) (a) Subject to Subsection (2)(b), a person making a request for a record shall submit
            66920     the request to the governmental entity that prepares, owns, or retains the record.
            66921         (b) In response to a request for a record, a governmental entity may not provide a

            66922     record that it has received under Section [ 63-2-206 ] 63G-2-206 as a shared record if the record
            66923     was shared for the purpose of auditing, if the governmental entity is authorized by state statute
            66924     to conduct an audit.
            66925         (c) If a governmental entity is prohibited from providing a record under Subsection
            66926     (2)(b), it shall:
            66927         (i) deny the records request; and
            66928         (ii) inform the person making the request that records requests must be submitted to the
            66929     governmental entity that prepares, owns, or retains the record.
            66930         (d) A governmental entity may make rules in accordance with [Title 63, Chapter 46a]
            66931     Title 63G, Chapter 3, Utah Administrative Rulemaking Act, specifying where and to whom
            66932     requests for access shall be directed.
            66933         (3) (a) As soon as reasonably possible, but no later than ten business days after
            66934     receiving a written request, or five business days after receiving a written request if the
            66935     requester demonstrates that expedited response to the record request benefits the public rather
            66936     than the person, the governmental entity shall respond to the request by:
            66937         (i) approving the request and providing the record;
            66938         (ii) denying the request;
            66939         (iii) notifying the requester that it does not maintain the record and providing, if known,
            66940     the name and address of the governmental entity that does maintain the record; or
            66941         (iv) notifying the requester that because of one of the extraordinary circumstances listed
            66942     in Subsection (4), it cannot immediately approve or deny the request.
            66943         (b) The notice described in Subsection (3)(a)(iv) shall:
            66944         (i) describe the circumstances relied upon; and
            66945         (ii) specify the date when the records will be available.
            66946         (c) Any person who requests a record to obtain information for a story or report for
            66947     publication or broadcast to the general public is presumed to be acting to benefit the public
            66948     rather than a person.
            66949         (4) The following circumstances constitute "extraordinary circumstances" that allow a

            66950     governmental entity to delay approval or denial by an additional period of time as specified in
            66951     Subsection (5) if the governmental entity determines that due to the extraordinary circumstances
            66952     it cannot respond within the time limits provided in Subsection (3):
            66953         (a) another governmental entity is using the record, in which case the originating
            66954     governmental entity shall promptly request that the governmental entity currently in possession
            66955     return the record;
            66956         (b) another governmental entity is using the record as part of an audit, and returning the
            66957     record before the completion of the audit would impair the conduct of the audit;
            66958         (c) (i) the request is for a voluminous quantity of records or a record series containing a
            66959     substantial number of records;
            66960         (ii) the requester seeks a substantial number of records or records series in requests
            66961     filed within five working days of each other;
            66962         (d) the governmental entity is currently processing a large number of records requests;
            66963         (e) the request requires the governmental entity to review a large number of records to
            66964     locate the records requested;
            66965         (f) the decision to release a record involves legal issues that require the governmental
            66966     entity to seek legal counsel for the analysis of statutes, rules, ordinances, regulations, or case
            66967     law;
            66968         (g) segregating information that the requester is entitled to inspect from information
            66969     that the requester is not entitled to inspect requires extensive editing; or
            66970         (h) segregating information that the requester is entitled to inspect from information
            66971     that the requester is not entitled to inspect requires computer programming.
            66972         (5) If one of the extraordinary circumstances listed in Subsection (4) precludes approval
            66973     or denial within the time specified in Subsection (3), the following time limits apply to the
            66974     extraordinary circumstances:
            66975         (a) for claims under Subsection (4)(a), the governmental entity currently in possession
            66976     of the record shall return the record to the originating entity within five business days of the
            66977     request for the return unless returning the record would impair the holder's work;

            66978         (b) for claims under Subsection (4)(b), the originating governmental entity shall notify
            66979     the requester when the record is available for inspection and copying;
            66980         (c) for claims under Subsections (4)(c), (d), and (e), the governmental entity shall:
            66981         (i) disclose the records that it has located which the requester is entitled to inspect;
            66982         (ii) provide the requester with an estimate of the amount of time it will take to finish the
            66983     work required to respond to the request;
            66984         (iii) complete the work and disclose those records that the requester is entitled to
            66985     inspect as soon as reasonably possible; and
            66986         (iv) for any person that does not establish a right to an expedited response as authorized
            66987     by Subsection (3)(a), a governmental entity may choose to:
            66988         (A) require the person to provide for copying of the records as provided in Subsection
            66989     [ 63-2-201 ] 63G-2-201 (9); or
            66990         (B) treat a request for multiple records as separate record requests, and respond
            66991     sequentially to each request;
            66992         (d) for claims under Subsection (4)(f), the governmental entity shall either approve or
            66993     deny the request within five business days after the response time specified for the original
            66994     request has expired;
            66995         (e) for claims under Subsection (4)(g), the governmental entity shall fulfill the request
            66996     within 15 business days from the date of the original request; or
            66997         (f) for claims under Subsection (4)(h), the governmental entity shall complete its
            66998     programming and disclose the requested records as soon as reasonably possible.
            66999         (6) (a) If a request for access is submitted to an office of a governmental entity other
            67000     than that specified by rule in accordance with Subsection (2), the office shall promptly forward
            67001     the request to the appropriate office.
            67002         (b) If the request is forwarded promptly, the time limit for response begins when the
            67003     record is received by the office specified by rule.
            67004         (7) If the governmental entity fails to provide the requested records or issue a denial
            67005     within the specified time period, that failure is considered the equivalent of a determination

            67006     denying access to the record.
            67007         Section 1324. Section 63G-2-205 , which is renumbered from Section 63-2-205 is
            67008     renumbered and amended to read:
            67009          [63-2-205].     63G-2-205. Denials.
            67010         (1) If the governmental entity denies the request in whole or part, it shall provide a
            67011     notice of denial to the requester either in person or by sending the notice to the requester's
            67012     address.
            67013         (2) The notice of denial shall contain the following information:
            67014         (a) a description of the record or portions of the record to which access was denied,
            67015     provided that the description does not disclose private, controlled, or protected information or
            67016     information exempt from disclosure under Subsection [ 63-2-201 ] 63G-2-201 (3)(b);
            67017         (b) citations to the provisions of this chapter, court rule or order, another state statute,
            67018     federal statute, or federal regulation that exempt the record or portions of the record from
            67019     disclosure, provided that the citations do not disclose private, controlled, or protected
            67020     information or information exempt from disclosure under Subsection [ 63-2-201 ]
            67021      63G-2-201 (3)(b);
            67022         (c) a statement that the requester has the right to appeal the denial to the chief
            67023     administrative officer of the governmental entity; and
            67024         (d) the time limits for filing an appeal, and the name and business address of the chief
            67025     administrative officer of the governmental entity.
            67026         (3) Unless otherwise required by a court or agency of competent jurisdiction, a
            67027     governmental entity may not destroy or give up custody of any record to which access was
            67028     denied until the period for an appeal has expired or the end of the appeals process, including
            67029     judicial appeal.
            67030         Section 1325. Section 63G-2-206 , which is renumbered from Section 63-2-206 is
            67031     renumbered and amended to read:
            67032          [63-2-206].     63G-2-206. Sharing records.
            67033         (1) A governmental entity may provide a record that is private, controlled, or protected

            67034     to another governmental entity, a government-managed corporation, a political subdivision, the
            67035     federal government, or another state if the requesting entity:
            67036         (a) serves as a repository or archives for purposes of historical preservation,
            67037     administrative maintenance, or destruction;
            67038         (b) enforces, litigates, or investigates civil, criminal, or administrative law, and the
            67039     record is necessary to a proceeding or investigation;
            67040         (c) is authorized by state statute to conduct an audit and the record is needed for that
            67041     purpose; or
            67042         (d) is one that collects information for presentence, probationary, or parole purposes.
            67043         (2) (a) A governmental entity may provide a private, controlled, or protected record or
            67044     record series to another governmental entity, a political subdivision, a government-managed
            67045     corporation, the federal government, or another state if the requesting entity provides written
            67046     assurance:
            67047         (i) that the record or record series is necessary to the performance of the governmental
            67048     entity's duties and functions;
            67049         (ii) that the record or record series will be used for a purpose similar to the purpose for
            67050     which the information in the record or record series was collected or obtained; and
            67051         (iii) that the use of the record or record series produces a public benefit that outweighs
            67052     the individual privacy right that protects the record or record series.
            67053         (b) A governmental entity may provide a private, controlled, or protected record or
            67054     record series to a contractor or a private provider according to the requirements of Subsection
            67055     (6)(b).
            67056         (3) (a) A governmental entity shall provide a private, controlled, or protected record to
            67057     another governmental entity, a political subdivision, a government-managed corporation, the
            67058     federal government, or another state if the requesting entity:
            67059         (i) is entitled by law to inspect the record;
            67060         (ii) is required to inspect the record as a condition of participating in a state or federal
            67061     program or for receiving state or federal funds; or

            67062         (iii) is an entity described in Subsection (1)(a), (b), (c), or (d).
            67063         (b) Subsection (3)(a)(iii) applies only if the record is a record described in Subsection
            67064     [ 63-2-304 ] 63G-2-305 (4).
            67065         (4) Before disclosing a record or record series under this section to another
            67066     governmental entity, another state, the United States, a foreign government, or to a contractor
            67067     or private provider, the originating governmental entity shall:
            67068         (a) inform the recipient of the record's classification and the accompanying restrictions
            67069     on access; and
            67070         (b) if the recipient is not a governmental entity to which this chapter applies, obtain the
            67071     recipient's written agreement which may be by mechanical or electronic transmission that it will
            67072     abide by those restrictions on access unless a statute, federal regulation, or interstate agreement
            67073     otherwise governs the sharing of the record or record series.
            67074         (5) A governmental entity may disclose a record to another state, the United States, or
            67075     a foreign government for the reasons listed in Subsections (1) and (2) without complying with
            67076     the procedures of Subsection (2) or (4) if disclosure is authorized by executive agreement,
            67077     treaty, federal statute, compact, federal regulation, or state statute.
            67078         (6) (a) Subject to Subsections (6)(b) and (c), an entity receiving a record under this
            67079     section is subject to the same restrictions on disclosure of the record as the originating entity.
            67080         (b) A contractor or a private provider may receive information under this section only
            67081     if:
            67082         (i) the contractor or private provider's use of the record or record series produces a
            67083     public benefit that outweighs the individual privacy right that protects the record or record
            67084     series;
            67085         (ii) the record or record series it requests:
            67086         (A) is necessary for the performance of a contract with a governmental entity;
            67087         (B) will only be used for the performance of the contract with the governmental entity;
            67088         (C) will not be disclosed to any other person; and
            67089         (D) will not be used for advertising or solicitation purposes; and

            67090         (iii) the contractor or private provider gives written assurance to the governmental
            67091     entity that is providing the record or record series that it will adhere to the restrictions of this
            67092     Subsection (6)(b).
            67093         (c) The classification of a record already held by a governmental entity and the
            67094     applicable restrictions on disclosure of that record are not affected by the governmental entity's
            67095     receipt under this section of a record with a different classification that contains information that
            67096     is also included in the previously held record.
            67097         (7) Notwithstanding any other provision of this section, if a more specific court rule or
            67098     order, state statute, federal statute, or federal regulation prohibits or requires sharing
            67099     information, that rule, order, statute, or federal regulation controls.
            67100         (8) The following records may not be shared under this section:
            67101         (a) records held by the Division of Oil, Gas and Mining that pertain to any person and
            67102     that are gathered under authority of Title 40, Chapter 6, Board and Division of Oil, Gas and
            67103     Mining; and
            67104         (b) records of publicly funded libraries as described in Subsection [ 63-2-302 ]
            67105      63G-2-302 (1)(c).
            67106         (9) Records that may evidence or relate to a violation of law may be disclosed to a
            67107     government prosecutor, peace officer, or auditor.
            67108         Section 1326. Section 63G-2-207 , which is renumbered from Section 63-2-207 is
            67109     renumbered and amended to read:
            67110          [63-2-207].     63G-2-207. Subpoenas -- Court ordered disclosure for discovery.
            67111         (1) Subpoenas and other methods of discovery under the state or federal statutes or
            67112     rules of civil, criminal, administrative, or legislative procedure are not written requests under
            67113     Section [ 63-2-204 ] 63G-2-204 .
            67114         (2) (a) (i) Except as otherwise provided in Subsection (2)(c), in judicial or
            67115     administrative proceedings in which an individual is requesting discovery of records classified
            67116     private, controlled, or protected under this chapter, or otherwise restricted from access by other
            67117     statutes, the court, or an administrative law judge shall follow the procedure in Subsection

            67118     [ 63-2-202 ] 63G-2-202 (7) before ordering disclosure.
            67119         (ii) Until the court or an administrative law judge orders disclosure, these records are
            67120     privileged from discovery.
            67121         (b) If, the court or administrative order requires disclosure, the terms of the order may
            67122     limit the requester's further use and disclosure of the record in accordance with Subsection
            67123     [ 63-2-202 ] 63G-2-202 (7), in order to protect the privacy interests recognized in this chapter.
            67124         (c) Unless a court or administrative law judge imposes limitations in a restrictive order,
            67125     this section does not limit the right to obtain:
            67126         (i) records through the procedures set forth in this chapter; or
            67127         (ii) medical records discoverable under state or federal court rules as authorized by
            67128     Subsection [ 63-2-302 ] 63G-2-302 (3).
            67129         Section 1327. Section 63G-2-301 , which is renumbered from Section 63-2-301 is
            67130     renumbered and amended to read:
            67131     
Part 3. Classification

            67132          [63-2-301].     63G-2-301. Records that must be disclosed.
            67133         (1) As used in this section:
            67134         (a) "Business address" means a single address of a governmental agency designated for
            67135     the public to contact an employee or officer of the governmental agency.
            67136         (b) "Business email address" means a single email address of a governmental agency
            67137     designated for the public to contact an employee or officer of the governmental agency.
            67138         (c) "Business telephone number" means a single telephone number of a governmental
            67139     agency designated for the public to contact an employee or officer of the governmental agency.
            67140         (2) The following records are public except to the extent they contain information
            67141     expressly permitted to be treated confidentially under the provisions of Subsections [ 63-2-201 ]
            67142      63G-2-201 (3)(b) and (6)(a):
            67143         (a) laws;
            67144         (b) the name, gender, gross compensation, job title, job description, business address,
            67145     business email address, business telephone number, number of hours worked per pay period,

            67146     dates of employment, and relevant education, previous employment, and similar job
            67147     qualifications of a current or former employee or officer of the governmental entity, excluding:
            67148         (i) undercover law enforcement personnel; and
            67149         (ii) investigative personnel if disclosure could reasonably be expected to impair the
            67150     effectiveness of investigations or endanger any individual's safety;
            67151         (c) final opinions, including concurring and dissenting opinions, and orders that are
            67152     made by a governmental entity in an administrative, adjudicative, or judicial proceeding except
            67153     that if the proceedings were properly closed to the public, the opinion and order may be
            67154     withheld to the extent that they contain information that is private, controlled, or protected;
            67155         (d) final interpretations of statutes or rules by a governmental entity unless classified as
            67156     protected as provided in Subsections [ 63-2-304 ] 63G-2-305 (16), (17), and (18);
            67157         (e) information contained in or compiled from a transcript, minutes, or report of the
            67158     open portions of a meeting of a governmental entity as provided by Title 52, Chapter 4, Open
            67159     and Public Meetings Act, including the records of all votes of each member of the governmental
            67160     entity;
            67161         (f) judicial records unless a court orders the records to be restricted under the rules of
            67162     civil or criminal procedure or unless the records are private under this chapter;
            67163         (g) unless otherwise classified as private under Section [ 63-2-302.5 ] 63G-2-303 ,
            67164     records or parts of records filed with or maintained by county recorders, clerks, treasurers,
            67165     surveyors, zoning commissions, the Division of Forestry, Fire and State Lands, the School and
            67166     Institutional Trust Lands Administration, the Division of Oil, Gas and Mining, the Division of
            67167     Water Rights, or other governmental entities that give public notice of:
            67168         (i) titles or encumbrances to real property;
            67169         (ii) restrictions on the use of real property;
            67170         (iii) the capacity of persons to take or convey title to real property; or
            67171         (iv) tax status for real and personal property;
            67172         (h) records of the Department of Commerce that evidence incorporations, mergers,
            67173     name changes, and uniform commercial code filings;

            67174         (i) data on individuals that would otherwise be private under this chapter if the
            67175     individual who is the subject of the record has given the governmental entity written permission
            67176     to make the records available to the public;
            67177         (j) documentation of the compensation that a governmental entity pays to a contractor
            67178     or private provider;
            67179         (k) summary data; and
            67180         (l) voter registration records, including an individual's voting history, except for those
            67181     parts of the record that are classified as private in Subsection [ 63-2-302 ] 63G-2-302 (1)(i).
            67182         (3) The following records are normally public, but to the extent that a record is
            67183     expressly exempt from disclosure, access may be restricted under Subsection [ 63-2-201 ]
            67184      63G-2-201 (3)(b), Section [ 63-2-302 ] 63G-2-302 , [ 63-2-303 ] 63G-2-304 , or [ 63-2-304 ]
            67185      63G-2-305 :
            67186         (a) administrative staff manuals, instructions to staff, and statements of policy;
            67187         (b) records documenting a contractor's or private provider's compliance with the terms
            67188     of a contract with a governmental entity;
            67189         (c) records documenting the services provided by a contractor or a private provider to
            67190     the extent the records would be public if prepared by the governmental entity;
            67191         (d) contracts entered into by a governmental entity;
            67192         (e) any account, voucher, or contract that deals with the receipt or expenditure of funds
            67193     by a governmental entity;
            67194         (f) records relating to government assistance or incentives publicly disclosed, contracted
            67195     for, or given by a governmental entity, encouraging a person to expand or relocate a business in
            67196     Utah, except as provided in Subsection [ 63-2-304 ] 63G-2-305 (35);
            67197         (g) chronological logs and initial contact reports;
            67198         (h) correspondence by and with a governmental entity in which the governmental entity
            67199     determines or states an opinion upon the rights of the state, a political subdivision, the public, or
            67200     any person;
            67201         (i) empirical data contained in drafts if:

            67202         (i) the empirical data is not reasonably available to the requester elsewhere in similar
            67203     form; and
            67204         (ii) the governmental entity is given a reasonable opportunity to correct any errors or
            67205     make nonsubstantive changes before release;
            67206         (j) drafts that are circulated to anyone other than:
            67207         (i) a governmental entity;
            67208         (ii) a political subdivision;
            67209         (iii) a federal agency if the governmental entity and the federal agency are jointly
            67210     responsible for implementation of a program or project that has been legislatively approved;
            67211         (iv) a government-managed corporation; or
            67212         (v) a contractor or private provider;
            67213         (k) drafts that have never been finalized but were relied upon by the governmental
            67214     entity in carrying out action or policy;
            67215         (l) original data in a computer program if the governmental entity chooses not to
            67216     disclose the program;
            67217         (m) arrest warrants after issuance, except that, for good cause, a court may order
            67218     restricted access to arrest warrants prior to service;
            67219         (n) search warrants after execution and filing of the return, except that a court, for good
            67220     cause, may order restricted access to search warrants prior to trial;
            67221         (o) records that would disclose information relating to formal charges or disciplinary
            67222     actions against a past or present governmental entity employee if:
            67223         (i) the disciplinary action has been completed and all time periods for administrative
            67224     appeal have expired; and
            67225         (ii) the charges on which the disciplinary action was based were sustained;
            67226         (p) records maintained by the Division of Forestry, Fire and State Lands, the School
            67227     and Institutional Trust Lands Administration, or the Division of Oil, Gas and Mining that
            67228     evidence mineral production on government lands;
            67229         (q) final audit reports;

            67230         (r) occupational and professional licenses;
            67231         (s) business licenses; and
            67232         (t) a notice of violation, a notice of agency action under Section [ 63-46b-3 ] 63G-4-201 ,
            67233     or similar records used to initiate proceedings for discipline or sanctions against persons
            67234     regulated by a governmental entity, but not including records that initiate employee discipline.
            67235         (4) The list of public records in this section is not exhaustive and should not be used to
            67236     limit access to records.
            67237         Section 1328. Section 63G-2-302 , which is renumbered from Section 63-2-302 is
            67238     renumbered and amended to read:
            67239          [63-2-302].     63G-2-302. Private records.
            67240         (1) The following records are private:
            67241         (a) records concerning an individual's eligibility for unemployment insurance benefits,
            67242     social services, welfare benefits, or the determination of benefit levels;
            67243         (b) records containing data on individuals describing medical history, diagnosis,
            67244     condition, treatment, evaluation, or similar medical data;
            67245         (c) records of publicly funded libraries that when examined alone or with other records
            67246     identify a patron;
            67247         (d) records received or generated for a Senate or House Ethics Committee concerning
            67248     any alleged violation of the rules on legislative ethics, prior to the meeting, and after the
            67249     meeting, if the ethics committee meeting was closed to the public;
            67250         (e) records received or generated for a Senate confirmation committee concerning
            67251     character, professional competence, or physical or mental health of an individual:
            67252         (i) if prior to the meeting, the chair of the committee determines release of the records:
            67253         (A) reasonably could be expected to interfere with the investigation undertaken by the
            67254     committee; or
            67255         (B) would create a danger of depriving a person of a right to a fair proceeding or
            67256     impartial hearing; and
            67257         (ii) after the meeting, if the meeting was closed to the public;

            67258         (f) employment records concerning a current or former employee of, or applicant for
            67259     employment with, a governmental entity that would disclose that individual's home address,
            67260     home telephone number, Social Security number, insurance coverage, marital status, or payroll
            67261     deductions;
            67262         (g) records or parts of records under Section [ 63-2-302.5 ] 63G-2-303 that a current or
            67263     former employee identifies as private according to the requirements of that section;
            67264         (h) that part of a record indicating a person's Social Security number or federal
            67265     employer identification number if provided under Section 31A-23a-104 , 31A-25-202 ,
            67266      31A-26-202 , 58-1-301 , 61-1-4 , or 61-2-6 ;
            67267         (i) that part of a voter registration record identifying a voter's driver license or
            67268     identification card number, Social Security number, or last four digits of the Social Security
            67269     number;
            67270         (j) a record that:
            67271         (i) contains information about an individual;
            67272         (ii) is voluntarily provided by the individual; and
            67273         (iii) goes into an electronic database that:
            67274         (A) is designated by and administered under the authority of the Chief Information
            67275     Officer; and
            67276         (B) acts as a repository of information about the individual that can be electronically
            67277     retrieved and used to facilitate the individual's online interaction with a state agency;
            67278         (k) information provided to the Commissioner of Insurance under:
            67279         (i) Subsection 31A-23a-115 (2)(a); or
            67280         (ii) Subsection 31A-23a-302 (3); and
            67281         (l) information obtained through a criminal background check under Title 11, Chapter
            67282     40, Criminal Background Checks by Political Subdivisions Operating Water Systems.
            67283         (2) The following records are private if properly classified by a governmental entity:
            67284         (a) records concerning a current or former employee of, or applicant for employment
            67285     with a governmental entity, including performance evaluations and personal status information

            67286     such as race, religion, or disabilities, but not including records that are public under Subsection
            67287     [ 63-2-301 ] 63G-2-301 (2)(b) or [ 63-2-301 ] 63G-2-301 (3)(o), or private under Subsection
            67288     (1)(b);
            67289         (b) records describing an individual's finances, except that the following are public:
            67290         (i) records described in Subsection [ 63-2-301 ] 63G-2-301 (2);
            67291         (ii) information provided to the governmental entity for the purpose of complying with
            67292     a financial assurance requirement; or
            67293         (iii) records that must be disclosed in accordance with another statute;
            67294         (c) records of independent state agencies if the disclosure of those records would
            67295     conflict with the fiduciary obligations of the agency;
            67296         (d) other records containing data on individuals the disclosure of which constitutes a
            67297     clearly unwarranted invasion of personal privacy; and
            67298         (e) records provided by the United States or by a government entity outside the state
            67299     that are given with the requirement that the records be managed as private records, if the
            67300     providing entity states in writing that the record would not be subject to public disclosure if
            67301     retained by it.
            67302         (3) (a) As used in this Subsection (3), "medical records" means medical reports,
            67303     records, statements, history, diagnosis, condition, treatment, and evaluation.
            67304         (b) Medical records in the possession of the University of Utah Hospital, its clinics,
            67305     doctors, or affiliated entities are not private records or controlled records under Section
            67306     [ 63-2-303 ] 63G-2-304 when the records are sought:
            67307         (i) in connection with any legal or administrative proceeding in which the patient's
            67308     physical, mental, or emotional condition is an element of any claim or defense; or
            67309         (ii) after a patient's death, in any legal or administrative proceeding in which any party
            67310     relies upon the condition as an element of the claim or defense.
            67311         (c) Medical records are subject to production in a legal or administrative proceeding
            67312     according to state or federal statutes or rules of procedure and evidence as if the medical
            67313     records were in the possession of a nongovernmental medical care provider.

            67314         Section 1329. Section 63G-2-303 , which is renumbered from Section 63-2-302.5 is
            67315     renumbered and amended to read:
            67316          [63-2-302.5].     63G-2-303. Private information concerning certain
            67317      government employees.
            67318         (1) As used in this section:
            67319         (a) "At-risk government employee" means a current or former:
            67320         (i) peace officer as specified in Section 53-13-102 ;
            67321         (ii) supreme court justice;
            67322         (iii) judge of an appellate, district, or juvenile court;
            67323         (iv) justice court judge;
            67324         (v) judge authorized by Title 39, Chapter 6, Utah Code of Military Justice;
            67325         (vi) federal judge;
            67326         (vii) federal magistrate judge;
            67327         (viii) judge authorized by Armed Forces, Title 10, United States Code;
            67328         (ix) United States Attorney;
            67329         (x) Assistant United States Attorney;
            67330         (xi) a prosecutor appointed pursuant to Armed Forces, Title 10, United States Code;
            67331         (xii) a law enforcement official as defined in Section 53-5-711 ; or
            67332         (xiii) a prosecutor authorized by Title 39, Chapter 6, Utah Code of Military Justice.
            67333         (b) "Family member" means the spouse, child, sibling, parent, or grandparent of an
            67334     at-risk government employee who is living with the employee.
            67335         (2) (a) Pursuant to Subsection [ 63-2-302 ] 63G-2-302 (1)(g), an at-risk government
            67336     employee may file a written application that:
            67337         (i) gives notice of the employee's status to each agency of a government entity holding a
            67338     record or a part of a record that would disclose the employee's or the employee's family
            67339     member's home address, home telephone number, Social Security number, insurance coverage,
            67340     marital status, or payroll deductions; and
            67341         (ii) requests that the government agency classify those records or parts of records

            67342     private.
            67343         (b) An at-risk government employee desiring to file an application under this section
            67344     may request assistance from the government agency to identify the individual records containing
            67345     the private information specified in Subsection (2)(a)(i).
            67346         (c) Each government agency shall develop a form that:
            67347         (i) requires the at-risk government employee to provide evidence of qualifying
            67348     employment;
            67349         (ii) requires the at-risk government employee to designate each specific record or part
            67350     of a record containing the employee's home address, home telephone number, Social Security
            67351     number, insurance coverage, marital status, or payroll deductions that the applicant desires to be
            67352     classified as private; and
            67353         (iii) affirmatively requests that the government entity holding those records classify
            67354     them as private.
            67355         (3) A county recorder, county treasurer, county auditor, or a county tax assessor may
            67356     fully satisfy the requirements of this section by:
            67357         (a) providing a method for the assessment roll and index and the tax roll and index that
            67358     will block public access to the home address, home telephone number, situs address, and Social
            67359     Security number; and
            67360         (b) providing the at-risk government employee requesting the classification with a
            67361     disclaimer informing the employee that the employee may not receive official announcements
            67362     affecting the employee's property, including notices about proposed annexations,
            67363     incorporations, or zoning modifications.
            67364         (4) A government agency holding records of an at-risk government employee classified
            67365     as private under this section may release the record or part of the record if:
            67366         (a) the employee or former employee gives written consent;
            67367         (b) a court orders release of the records; or
            67368         (c) the government agency receives a certified death certificate for the employee or
            67369     former employee.

            67370         (5) (a) If the government agency holding the private record receives a subpoena for the
            67371     records, the government agency shall attempt to notify the at-risk government employee or
            67372     former employee by mailing a copy of the subpoena to the employee's last-known mailing
            67373     address together with a request that the employee either:
            67374         (i) authorize release of the record; or
            67375         (ii) within ten days of the date that the copy and request are mailed, deliver to the
            67376     government agency holding the private record a copy of a motion to quash filed with the court
            67377     who issued the subpoena.
            67378         (b) The government agency shall comply with the subpoena if the government agency
            67379     has:
            67380         (i) received permission from the at-risk government employee or former employee to
            67381     comply with the subpoena;
            67382         (ii) has not received a copy of a motion to quash within ten days of the date that the
            67383     copy of the subpoena was mailed; or
            67384         (iii) receives a court order requiring release of the records.
            67385         Section 1330. Section 63G-2-304 , which is renumbered from Section 63-2-303 is
            67386     renumbered and amended to read:
            67387          [63-2-303].     63G-2-304. Controlled records.
            67388         A record is controlled if:
            67389         (1) the record contains medical, psychiatric, or psychological data about an individual;
            67390         (2) the governmental entity reasonably believes that:
            67391         (a) releasing the information in the record to the subject of the record would be
            67392     detrimental to the subject's mental health or to the safety of any individual; or
            67393         (b) releasing the information would constitute a violation of normal professional
            67394     practice and medical ethics; and
            67395         (3) the governmental entity has properly classified the record.
            67396         Section 1331. Section 63G-2-305 , which is renumbered from Section 63-2-304 is
            67397     renumbered and amended to read:

            67398          [63-2-304].     63G-2-305. Protected records.
            67399         The following records are protected if properly classified by a governmental entity:
            67400         (1) trade secrets as defined in Section 13-24-2 if the person submitting the trade secret
            67401     has provided the governmental entity with the information specified in Section [ 63-2-308 ]
            67402      63G-2-309 ;
            67403         (2) commercial information or nonindividual financial information obtained from a
            67404     person if:
            67405         (a) disclosure of the information could reasonably be expected to result in unfair
            67406     competitive injury to the person submitting the information or would impair the ability of the
            67407     governmental entity to obtain necessary information in the future;
            67408         (b) the person submitting the information has a greater interest in prohibiting access
            67409     than the public in obtaining access; and
            67410         (c) the person submitting the information has provided the governmental entity with the
            67411     information specified in Section [ 63-2-308 ] 63G-2-309 ;
            67412         (3) commercial or financial information acquired or prepared by a governmental entity
            67413     to the extent that disclosure would lead to financial speculations in currencies, securities, or
            67414     commodities that will interfere with a planned transaction by the governmental entity or cause
            67415     substantial financial injury to the governmental entity or state economy;
            67416         (4) records the disclosure of which could cause commercial injury to, or confer a
            67417     competitive advantage upon a potential or actual competitor of, a commercial project entity as
            67418     defined in Subsection 11-13-103 (4);
            67419         (5) test questions and answers to be used in future license, certification, registration,
            67420     employment, or academic examinations;
            67421         (6) records the disclosure of which would impair governmental procurement
            67422     proceedings or give an unfair advantage to any person proposing to enter into a contract or
            67423     agreement with a governmental entity, except that this Subsection (6) does not restrict the right
            67424     of a person to see bids submitted to or by a governmental entity after bidding has closed;
            67425         (7) records that would identify real property or the appraisal or estimated value of real

            67426     or personal property, including intellectual property, under consideration for public acquisition
            67427     before any rights to the property are acquired unless:
            67428         (a) public interest in obtaining access to the information outweighs the governmental
            67429     entity's need to acquire the property on the best terms possible;
            67430         (b) the information has already been disclosed to persons not employed by or under a
            67431     duty of confidentiality to the entity;
            67432         (c) in the case of records that would identify property, potential sellers of the described
            67433     property have already learned of the governmental entity's plans to acquire the property;
            67434         (d) in the case of records that would identify the appraisal or estimated value of
            67435     property, the potential sellers have already learned of the governmental entity's estimated value
            67436     of the property; or
            67437         (e) the property under consideration for public acquisition is a single family residence
            67438     and the governmental entity seeking to acquire the property has initiated negotiations to acquire
            67439     the property as required under Section 78-34-4.5 ;
            67440         (8) records prepared in contemplation of sale, exchange, lease, rental, or other
            67441     compensated transaction of real or personal property including intellectual property, which, if
            67442     disclosed prior to completion of the transaction, would reveal the appraisal or estimated value
            67443     of the subject property, unless:
            67444         (a) the public interest in access outweighs the interests in restricting access, including
            67445     the governmental entity's interest in maximizing the financial benefit of the transaction; or
            67446         (b) when prepared by or on behalf of a governmental entity, appraisals or estimates of
            67447     the value of the subject property have already been disclosed to persons not employed by or
            67448     under a duty of confidentiality to the entity;
            67449         (9) records created or maintained for civil, criminal, or administrative enforcement
            67450     purposes or audit purposes, or for discipline, licensing, certification, or registration purposes, if
            67451     release of the records:
            67452         (a) reasonably could be expected to interfere with investigations undertaken for
            67453     enforcement, discipline, licensing, certification, or registration purposes;

            67454         (b) reasonably could be expected to interfere with audits, disciplinary, or enforcement
            67455     proceedings;
            67456         (c) would create a danger of depriving a person of a right to a fair trial or impartial
            67457     hearing;
            67458         (d) reasonably could be expected to disclose the identity of a source who is not
            67459     generally known outside of government and, in the case of a record compiled in the course of an
            67460     investigation, disclose information furnished by a source not generally known outside of
            67461     government if disclosure would compromise the source; or
            67462         (e) reasonably could be expected to disclose investigative or audit techniques,
            67463     procedures, policies, or orders not generally known outside of government if disclosure would
            67464     interfere with enforcement or audit efforts;
            67465         (10) records the disclosure of which would jeopardize the life or safety of an individual;
            67466         (11) records the disclosure of which would jeopardize the security of governmental
            67467     property, governmental programs, or governmental recordkeeping systems from damage, theft,
            67468     or other appropriation or use contrary to law or public policy;
            67469         (12) records that, if disclosed, would jeopardize the security or safety of a correctional
            67470     facility, or records relating to incarceration, treatment, probation, or parole, that would interfere
            67471     with the control and supervision of an offender's incarceration, treatment, probation, or parole;
            67472         (13) records that, if disclosed, would reveal recommendations made to the Board of
            67473     Pardons and Parole by an employee of or contractor for the Department of Corrections, the
            67474     Board of Pardons and Parole, or the Department of Human Services that are based on the
            67475     employee's or contractor's supervision, diagnosis, or treatment of any person within the board's
            67476     jurisdiction;
            67477         (14) records and audit workpapers that identify audit, collection, and operational
            67478     procedures and methods used by the State Tax Commission, if disclosure would interfere with
            67479     audits or collections;
            67480         (15) records of a governmental audit agency relating to an ongoing or planned audit
            67481     until the final audit is released;

            67482         (16) records prepared by or on behalf of a governmental entity solely in anticipation of
            67483     litigation that are not available under the rules of discovery;
            67484         (17) records disclosing an attorney's work product, including the mental impressions or
            67485     legal theories of an attorney or other representative of a governmental entity concerning
            67486     litigation;
            67487         (18) records of communications between a governmental entity and an attorney
            67488     representing, retained, or employed by the governmental entity if the communications would be
            67489     privileged as provided in Section 78-24-8 ;
            67490         (19) (a) (i) personal files of a state legislator, including personal correspondence to or
            67491     from a member of the Legislature; and
            67492         (ii) notwithstanding Subsection (19)(a)(i), correspondence that gives notice of
            67493     legislative action or policy may not be classified as protected under this section; and
            67494         (b) (i) an internal communication that is part of the deliberative process in connection
            67495     with the preparation of legislation between:
            67496         (A) members of a legislative body;
            67497         (B) a member of a legislative body and a member of the legislative body's staff; or
            67498         (C) members of a legislative body's staff; and
            67499         (ii) notwithstanding Subsection (19)(b)(i), a communication that gives notice of
            67500     legislative action or policy may not be classified as protected under this section;
            67501         (20) (a) records in the custody or control of the Office of Legislative Research and
            67502     General Counsel, that, if disclosed, would reveal a particular legislator's contemplated
            67503     legislation or contemplated course of action before the legislator has elected to support the
            67504     legislation or course of action, or made the legislation or course of action public; and
            67505         (b) notwithstanding Subsection (20)(a), the form to request legislation submitted to the
            67506     Office of Legislative Research and General Counsel is a public document unless a legislator asks
            67507     that the records requesting the legislation be maintained as protected records until such time as
            67508     the legislator elects to make the legislation or course of action public;
            67509         (21) research requests from legislators to the Office of Legislative Research and

            67510     General Counsel or the Office of the Legislative Fiscal Analyst and research findings prepared in
            67511     response to these requests;
            67512         (22) drafts, unless otherwise classified as public;
            67513         (23) records concerning a governmental entity's strategy about collective bargaining or
            67514     pending litigation;
            67515         (24) records of investigations of loss occurrences and analyses of loss occurrences that
            67516     may be covered by the Risk Management Fund, the Employers' Reinsurance Fund, the
            67517     Uninsured Employers' Fund, or similar divisions in other governmental entities;
            67518         (25) records, other than personnel evaluations, that contain a personal recommendation
            67519     concerning an individual if disclosure would constitute a clearly unwarranted invasion of
            67520     personal privacy, or disclosure is not in the public interest;
            67521         (26) records that reveal the location of historic, prehistoric, paleontological, or
            67522     biological resources that if known would jeopardize the security of those resources or of
            67523     valuable historic, scientific, educational, or cultural information;
            67524         (27) records of independent state agencies if the disclosure of the records would
            67525     conflict with the fiduciary obligations of the agency;
            67526         (28) records of an institution within the state system of higher education defined in
            67527     Section 53B-1-102 regarding tenure evaluations, appointments, applications for admissions,
            67528     retention decisions, and promotions, which could be properly discussed in a meeting closed in
            67529     accordance with Title 52, Chapter 4, Open and Public Meetings Act, provided that records of
            67530     the final decisions about tenure, appointments, retention, promotions, or those students
            67531     admitted, may not be classified as protected under this section;
            67532         (29) records of the governor's office, including budget recommendations, legislative
            67533     proposals, and policy statements, that if disclosed would reveal the governor's contemplated
            67534     policies or contemplated courses of action before the governor has implemented or rejected
            67535     those policies or courses of action or made them public;
            67536         (30) records of the Office of the Legislative Fiscal Analyst relating to budget analysis,
            67537     revenue estimates, and fiscal notes of proposed legislation before issuance of the final

            67538     recommendations in these areas;
            67539         (31) records provided by the United States or by a government entity outside the state
            67540     that are given to the governmental entity with a requirement that they be managed as protected
            67541     records if the providing entity certifies that the record would not be subject to public disclosure
            67542     if retained by it;
            67543         (32) transcripts, minutes, or reports of the closed portion of a meeting of a public body
            67544     except as provided in Section 52-4-206 ;
            67545         (33) records that would reveal the contents of settlement negotiations but not including
            67546     final settlements or empirical data to the extent that they are not otherwise exempt from
            67547     disclosure;
            67548         (34) memoranda prepared by staff and used in the decision-making process by an
            67549     administrative law judge, a member of the Board of Pardons and Parole, or a member of any
            67550     other body charged by law with performing a quasi-judicial function;
            67551         (35) records that would reveal negotiations regarding assistance or incentives offered
            67552     by or requested from a governmental entity for the purpose of encouraging a person to expand
            67553     or locate a business in Utah, but only if disclosure would result in actual economic harm to the
            67554     person or place the governmental entity at a competitive disadvantage, but this section may not
            67555     be used to restrict access to a record evidencing a final contract;
            67556         (36) materials to which access must be limited for purposes of securing or maintaining
            67557     the governmental entity's proprietary protection of intellectual property rights including patents,
            67558     copyrights, and trade secrets;
            67559         (37) the name of a donor or a prospective donor to a governmental entity, including an
            67560     institution within the state system of higher education defined in Section 53B-1-102 , and other
            67561     information concerning the donation that could reasonably be expected to reveal the identity of
            67562     the donor, provided that:
            67563         (a) the donor requests anonymity in writing;
            67564         (b) any terms, conditions, restrictions, or privileges relating to the donation may not be
            67565     classified protected by the governmental entity under this Subsection (37); and

            67566         (c) except for an institution within the state system of higher education defined in
            67567     Section 53B-1-102 , the governmental unit to which the donation is made is primarily engaged in
            67568     educational, charitable, or artistic endeavors, and has no regulatory or legislative authority over
            67569     the donor, a member of the donor's immediate family, or any entity owned or controlled by the
            67570     donor or the donor's immediate family;
            67571         (38) accident reports, except as provided in Sections 41-6a-404 , 41-12a-202 , and
            67572      73-18-13 ;
            67573         (39) a notification of workers' compensation insurance coverage described in Section
            67574      34A-2-205 ;
            67575         (40) (a) the following records of an institution within the state system of higher
            67576     education defined in Section 53B-1-102 , which have been developed, discovered, disclosed to,
            67577     or received by or on behalf of faculty, staff, employees, or students of the institution:
            67578         (i) unpublished lecture notes;
            67579         (ii) unpublished notes, data, and information:
            67580         (A) relating to research; and
            67581         (B) of:
            67582         (I) the institution within the state system of higher education defined in Section
            67583      53B-1-102 ; or
            67584         (II) a sponsor of sponsored research;
            67585         (iii) unpublished manuscripts;
            67586         (iv) creative works in process;
            67587         (v) scholarly correspondence; and
            67588         (vi) confidential information contained in research proposals;
            67589         (b) Subsection (40)(a) may not be construed to prohibit disclosure of public information
            67590     required pursuant to Subsection 53B-16-302 (2)(a) or (b); and
            67591         (c) Subsection (40)(a) may not be construed to affect the ownership of a record;
            67592         (41) (a) records in the custody or control of the Office of Legislative Auditor General
            67593     that would reveal the name of a particular legislator who requests a legislative audit prior to the

            67594     date that audit is completed and made public; and
            67595         (b) notwithstanding Subsection (41)(a), a request for a legislative audit submitted to the
            67596     Office of the Legislative Auditor General is a public document unless the legislator asks that the
            67597     records in the custody or control of the Office of Legislative Auditor General that would reveal
            67598     the name of a particular legislator who requests a legislative audit be maintained as protected
            67599     records until the audit is completed and made public;
            67600         (42) records that provide detail as to the location of an explosive, including a map or
            67601     other document that indicates the location of:
            67602         (a) a production facility; or
            67603         (b) a magazine;
            67604         (43) information contained in the database described in Section 62A-3-311.1 ;
            67605         (44) information contained in the Management Information System and Licensing
            67606     Information System described in Title 62A, Chapter 4a, Child and Family Services;
            67607         (45) information regarding National Guard operations or activities in support of the
            67608     National Guard's federal mission;
            67609         (46) records provided by any pawn or secondhand business to a law enforcement
            67610     agency or to the central database in compliance with Title 13, Chapter 32a, Pawnshop and
            67611     Secondhand Merchandise Transaction Information Act;
            67612         (47) information regarding food security, risk, and vulnerability assessments performed
            67613     by the Department of Agriculture and Food;
            67614         (48) except to the extent that the record is exempt from this chapter pursuant to
            67615     Section [ 63-2-106 ] 63G-2-106 , records related to an emergency plan or program prepared or
            67616     maintained by the Division of Homeland Security the disclosure of which would jeopardize:
            67617         (a) the safety of the general public; or
            67618         (b) the security of:
            67619         (i) governmental property;
            67620         (ii) governmental programs; or
            67621         (iii) the property of a private person who provides the Division of Homeland Security

            67622     information;
            67623         (49) records of the Department of Agriculture and Food relating to the National Animal
            67624     Identification System or any other program that provides for the identification, tracing, or
            67625     control of livestock diseases, including any program established under Title 4, Chapter 24, Utah
            67626     Livestock Brand and Anti-theft Act or Title 4, Chapter 31, Livestock Inspection and
            67627     Quarantine;
            67628         (50) as provided in Section 26-39-109 :
            67629         (a) information or records held by the Department of Health related to a complaint
            67630     regarding a child care program or residential child care which the department is unable to
            67631     substantiate; and
            67632         (b) information or records related to a complaint received by the Department of Health
            67633     from an anonymous complainant regarding a child care program or residential child care; and
            67634         (51) unless otherwise classified as public under Section [ 63-2-301 ] 63G-2-301 and
            67635     except as provided under Section 41-1a-116 , an individual's home address, home telephone
            67636     number, or personal mobile phone number, if:
            67637         (a) the individual is required to provide the information in order to comply with a law,
            67638     ordinance, rule, or order of a government entity; and
            67639         (b) the subject of the record has a reasonable expectation that this information will be
            67640     kept confidential due to:
            67641         (i) the nature of the law, ordinance, rule, or order; and
            67642         (ii) the individual complying with the law, ordinance, rule, or order.
            67643         Section 1332. Section 63G-2-306 , which is renumbered from Section 63-2-305 is
            67644     renumbered and amended to read:
            67645          [63-2-305].     63G-2-306. Procedure to determine classification.
            67646         (1) If more than one provision of this chapter could govern the classification of a
            67647     record, the governmental entity shall classify the record by considering the nature of the
            67648     interests intended to be protected and the specificity of the competing provisions.
            67649         (2) Nothing in Subsection [ 63-2-302 ] 63G-2-302 (2), Section [ 63-2-303 ] 63G-2-304 , or

            67650     [ 63-2-304 ] 63G-2-305 requires a governmental entity to classify a record as private, controlled,
            67651     or protected.
            67652         Section 1333. Section 63G-2-307 , which is renumbered from Section 63-2-306 is
            67653     renumbered and amended to read:
            67654          [63-2-306].     63G-2-307. Duty to evaluate records and make designations and
            67655      classifications.
            67656         (1) A governmental entity shall:
            67657         (a) evaluate all record series that it uses or creates;
            67658         (b) designate those record series as provided by this chapter and Title 63A, Chapter 12,
            67659     Part 1, Archives and Records Service; and
            67660         (c) report the designations of its record series to the state archives.
            67661         (2) A governmental entity may classify a particular record, record series, or information
            67662     within a record at any time, but is not required to classify a particular record, record series, or
            67663     information until access to the record is requested.
            67664         (3) A governmental entity may redesignate a record series or reclassify a record or
            67665     record series, or information within a record at any time.
            67666         Section 1334. Section 63G-2-308 , which is renumbered from Section 63-2-307 is
            67667     renumbered and amended to read:
            67668          [63-2-307].     63G-2-308. Segregation of records.
            67669         Notwithstanding any other provision in this chapter, if a governmental entity receives a
            67670     request for access to a record that contains both information that the requester is entitled to
            67671     inspect and information that the requester is not entitled to inspect under this chapter, and, if the
            67672     information the requester is entitled to inspect is intelligible, the governmental entity:
            67673         (1) shall allow access to information in the record that the requester is entitled to
            67674     inspect under this chapter; and
            67675         (2) may deny access to information in the record if the information is exempt from
            67676     disclosure to the requester, issuing a notice of denial as provided in Section [ 63-2-205 ]
            67677      63G-2-205 .

            67678         Section 1335. Section 63G-2-309 , which is renumbered from Section 63-2-308 is
            67679     renumbered and amended to read:
            67680          [63-2-308].     63G-2-309. Confidentiality claims.
            67681         (1) (a) (i) Any person who provides to a governmental entity a record that the person
            67682     believes should be protected under Subsection [ 63-2-304 ] 63G-2-305 (1) or (2) or both
            67683     Subsections [ 63-2-304 ] 63G-2-305 (1) and (2) shall provide with the record:
            67684         (A) a written claim of business confidentiality; and
            67685         (B) a concise statement of reasons supporting the claim of business confidentiality.
            67686         (ii) Any of the following who provides to an institution within the state system of higher
            67687     education defined in Section 53B-1-102 a record that the person or governmental entity believes
            67688     should be protected under Subsection [ 63-2-304 ] 63G-2-305 (40)(a)(ii) or (vi) or both
            67689     Subsections [ 63-2-304 ] 63G-2-305 (40)(a)(ii) and (vi) shall provide the institution within the
            67690     state system of higher education a written claim of business confidentiality in accordance with
            67691     Section 53B-16-304 :
            67692         (A) a person;
            67693         (B) a federal governmental entity;
            67694         (C) a state governmental entity; or
            67695         (D) a local governmental entity.
            67696         (b) A person or governmental entity who complies with this Subsection (1) shall be
            67697     notified by the governmental entity to whom the request for a record is made if:
            67698         (i) a record claimed to be protected under one of the following is classified public:
            67699         (A) Subsection [ 63-2-304 ] 63G-2-305 (1);
            67700         (B) Subsection [ 63-2-304 ] 63G-2-305 (2);
            67701         (C) Subsection [ 63-2-304 ] 63G-2-305 (40)(a)(ii);
            67702         (D) Subsection [ 63-2-304 ] 63G-2-305 (40)(a)(vi); or
            67703         (E) a combination of the provisions described in Subsections (1)(b)(i)(A) through (D);
            67704     or
            67705         (ii) the governmental entity to whom the request for a record is made determines that

            67706     the record claimed to be protected under a provision listed in Subsection (1)(b)(i) should be
            67707     released after balancing interests under Subsection [ 63-2-201 ] 63G-2-201 (5)(b) or [Subsection
            67708      63-2-401 ] 63G-2-401 (6).
            67709         (2) Except as provided by court order, the governmental entity to whom the request for
            67710     a record is made may not disclose a record claimed to be protected under a provision listed in
            67711     Subsection (1)(b)(i) but which the governmental entity or records committee determines should
            67712     be disclosed until the period in which to bring an appeal expires or the end of the appeals
            67713     process, including judicial appeal. This Subsection (2) does not apply where the claimant, after
            67714     notice, has waived the claim by not appealing or intervening before the records committee.
            67715         (3) Disclosure or acquisition of information under this chapter does not constitute
            67716     misappropriation under Subsection 13-24-2 (2).
            67717         Section 1336. Section 63G-2-310 , which is renumbered from Section 63-2-909 is
            67718     renumbered and amended to read:
            67719          [63-2-909].     63G-2-310. Records made public after 75 years.
            67720         (1) The classification of a record is not permanent and a record that was not classified
            67721     public under this act shall become a public record when the justification for the original or any
            67722     subsequent restrictive classification no longer exists. A record shall be presumed to be public
            67723     75 years after its creation, except that a record that contains information about an individual 21
            67724     years old or younger at the time of the record's creation shall be presumed to be public 100
            67725     years after its creation.
            67726         (2) Subsection (1) does not apply to records of unclaimed property held by the state
            67727     treasurer in accordance with Title 67, Chapter 4a, Unclaimed Property Act.
            67728         Section 1337. Section 63G-2-401 , which is renumbered from Section 63-2-401 is
            67729     renumbered and amended to read:
            67730     
Part 4. Appeals

            67731          [63-2-401].     63G-2-401. Appeal to head of governmental entity.
            67732         (1) (a) Any person aggrieved by a governmental entity's access determination under this
            67733     chapter, including a person not a party to the governmental entity's proceeding, may appeal the

            67734     determination within 30 days to the chief administrative officer of the governmental entity by
            67735     filing a notice of appeal.
            67736         (b) If a governmental entity claims extraordinary circumstances and specifies the date
            67737     when the records will be available under Subsection [ 63-2-204 ] 63G-2-204 (3), and, if the
            67738     requester believes the extraordinary circumstances do not exist or that the time specified is
            67739     unreasonable, the requester may appeal the governmental entity's claim of extraordinary
            67740     circumstances or date for compliance within 30 days after notification of a claim of
            67741     extraordinary circumstances by the governmental entity, despite the lack of a "determination" or
            67742     its equivalent under Subsection [ 63-2-204 ] 63G-2-204 (7).
            67743         (2) The notice of appeal shall contain the following information:
            67744         (a) the petitioner's name, mailing address, and daytime telephone number; and
            67745         (b) the relief sought.
            67746         (3) The petitioner may file a short statement of facts, reasons, and legal authority in
            67747     support of the appeal.
            67748         (4) (a) If the appeal involves a record that is the subject of a business confidentiality
            67749     claim under Section [ 63-2-308 ] 63G-2-309 , the chief administrative officer shall:
            67750         (i) send notice of the requester's appeal to the business confidentiality claimant within
            67751     three business days after receiving notice, except that if notice under this section must be given
            67752     to more than 35 persons, it shall be given as soon as reasonably possible; and
            67753         (ii) send notice of the business confidentiality claim and the schedule for the chief
            67754     administrative officer's determination to the requester within three business days after receiving
            67755     notice of the requester's appeal.
            67756         (b) The claimant shall have seven business days after notice is sent by the administrative
            67757     officer to submit further support for the claim of business confidentiality.
            67758         (5) (a) The chief administrative officer shall make a determination on the appeal within
            67759     the following period of time:
            67760         (i) within five business days after the chief administrative officer's receipt of the notice
            67761     of appeal; or

            67762         (ii) within twelve business days after the governmental entity sends the requester's
            67763     notice of appeal to a person who submitted a claim of business confidentiality.
            67764         (b) If the chief administrative officer fails to make a determination within the time
            67765     specified in Subsection (5)(a), the failure shall be considered the equivalent of an order denying
            67766     the appeal.
            67767         (c) The provisions of this section notwithstanding, the parties participating in the
            67768     proceeding may, by agreement, extend the time periods specified in this section.
            67769         (6) The chief administrative officer may, upon consideration and weighing of the
            67770     various interests and public policies pertinent to the classification and disclosure or
            67771     nondisclosure, order the disclosure of information properly classified as private under [Section
            67772      63-2-302 ] Subsection 63G-2-302 (2) or protected under Section [ 63-2-304 ] 63G-2-305 if the
            67773     interests favoring access outweigh the interests favoring restriction of access.
            67774         (7) The governmental entity shall send written notice of the determination of the chief
            67775     administrative officer to all participants. If the chief administrative officer affirms the denial in
            67776     whole or in part, the denial shall include a statement that the requester has the right to appeal
            67777     the denial to either the records committee or district court, the time limits for filing an appeal,
            67778     and the name and business address of the executive secretary of the records committee.
            67779         (8) A person aggrieved by a governmental entity's classification or designation
            67780     determination under this chapter, but who is not requesting access to the records, may appeal
            67781     that determination using the procedures provided in this section. If a nonrequester is the only
            67782     appellant, the procedures provided in this section shall apply, except that the determination on
            67783     the appeal shall be made within 30 days after receiving the notice of appeal.
            67784         (9) The duties of the chief administrative officer under this section may be delegated.
            67785         Section 1338. Section 63G-2-402 , which is renumbered from Section 63-2-402 is
            67786     renumbered and amended to read:
            67787          [63-2-402].     63G-2-402. Option for appealing a denial.
            67788         (1) If the chief administrative officer of a governmental entity denies a records request
            67789     under Section [ 63-2-401 ] 63G-2-401 , the requester may:

            67790         (a) appeal the denial to the records committee as provided in Section [ 63-2-403 ]
            67791      63G-2-403 ; or
            67792         (b) petition for judicial review in district court as provided in Section [ 63-2-404 ]
            67793      63G-2-404 .
            67794         (2) Any person aggrieved by a determination of the chief administrative officer of a
            67795     governmental entity under this chapter, including persons who did not participate in the
            67796     governmental entity's proceeding, may appeal the determination to the records committee as
            67797     provided in Section [ 63-2-403 ] 63G-2-403 .
            67798         Section 1339. Section 63G-2-403 , which is renumbered from Section 63-2-403 is
            67799     renumbered and amended to read:
            67800          [63-2-403].     63G-2-403. Appeals to the records committee.
            67801         (1) A petitioner, including an aggrieved person who did not participate in the appeal to
            67802     the governmental entity's chief administrative officer, may appeal to the records committee by
            67803     filing a notice of appeal with the executive secretary no later than:
            67804         (a) 30 days after the chief administrative officer of the governmental entity has granted
            67805     or denied the record request in whole or in part, including a denial under Subsection [ 63-2-204 ]
            67806      63G-2-204 (7);
            67807         (b) 45 days after the original request for a record if:
            67808         (i) the circumstances described in Subsection [ 63-2-401 ] 63G-2-401 (1)(b) occur; and
            67809         (ii) the chief administrative officer failed to make a determination under Section
            67810     [ 63-2-401 ] 63G-2-401 .
            67811         (2) The notice of appeal shall contain the following information:
            67812         (a) the petitioner's name, mailing address, and daytime telephone number;
            67813         (b) a copy of any denial of the record request; and
            67814         (c) the relief sought.
            67815         (3) The petitioner may file a short statement of facts, reasons, and legal authority in
            67816     support of the appeal.
            67817         (4) (a) Except as provided in Subsection (4)(b), no later than five business days after

            67818     receiving a notice of appeal, the executive secretary of the records committee shall:
            67819         (i) schedule a hearing for the records committee to discuss the appeal at the next
            67820     regularly scheduled committee meeting falling at least 14 days after the date the notice of appeal
            67821     is filed but no longer than 52 calendar days after the date the notice of appeal was filed except
            67822     that the records committee may schedule an expedited hearing upon application of the petitioner
            67823     and good cause shown;
            67824         (ii) send a copy of the notice of hearing to the petitioner; and
            67825         (iii) send a copy of the notice of appeal, supporting statement, and a notice of hearing
            67826     to:
            67827         (A) each member of the records committee;
            67828         (B) the records officer and the chief administrative officer of the governmental entity
            67829     from which the appeal originated;
            67830         (C) any person who made a business confidentiality claim under Section [ 63-2-308 ]
            67831      63G-2-309 for a record that is the subject of the appeal; and
            67832         (D) all persons who participated in the proceedings before the governmental entity's
            67833     chief administrative officer.
            67834         (b) (i) The executive secretary of the records committee may decline to schedule a
            67835     hearing if the record series that is the subject of the appeal has been found by the committee in a
            67836     previous hearing involving the same government entity to be appropriately classified as private,
            67837     controlled, or protected.
            67838         (ii) (A) If the executive secretary of the records committee declines to schedule a
            67839     hearing, the executive secretary of the records committee shall send a notice to the petitioner
            67840     indicating that the request for hearing has been denied and the reason for the denial.
            67841         (B) The committee shall make rules to implement this section as provided by [Title 63,
            67842     Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
            67843         (5) (a) A written statement of facts, reasons, and legal authority in support of the
            67844     governmental entity's position must be submitted to the executive secretary of the records
            67845     committee not later than five business days before the hearing.

            67846         (b) The governmental entity shall send a copy of the written statement to the petitioner
            67847     by first class mail, postage prepaid. The executive secretary shall forward a copy of the written
            67848     statement to each member of the records committee.
            67849         (6) (a) No later than ten business days after the notice of appeal is sent by the executive
            67850     secretary, a person whose legal interests may be substantially affected by the proceeding may
            67851     file a request for intervention before the records committee.
            67852         (b) Any written statement of facts, reasons, and legal authority in support of the
            67853     intervener's position shall be filed with the request for intervention.
            67854         (c) The person seeking intervention shall provide copies of the statement described in
            67855     Subsection (6)(b) to all parties to the proceedings before the records committee.
            67856         (7) The records committee shall hold a hearing within the period of time described in
            67857     Subsection (4).
            67858         (8) At the hearing, the records committee shall allow the parties to testify, present
            67859     evidence, and comment on the issues. The records committee may allow other interested
            67860     persons to comment on the issues.
            67861         (9) (a) The records committee may review the disputed records. However, if the
            67862     committee is weighing the various interests under Subsection (11), the committee must review
            67863     the disputed records. The review shall be in camera.
            67864         (b) Members of the records committee may not disclose any information or record
            67865     reviewed by the committee in camera unless the disclosure is otherwise authorized by this
            67866     chapter.
            67867         (10) (a) Discovery is prohibited, but the records committee may issue subpoenas or
            67868     other orders to compel production of necessary evidence.
            67869         (b) When the subject of a records committee subpoena disobeys or fails to comply with
            67870     the subpoena, the records committee may file a motion for an order to compel obedience to the
            67871     subpoena with the district court.
            67872         (c) The records committee's review shall be de novo.
            67873         (11) (a) No later than five business days after the hearing, the records committee shall

            67874     issue a signed order either granting the petition in whole or in part or upholding the
            67875     determination of the governmental entity in whole or in part.
            67876         (b) The records committee may, upon consideration and weighing of the various
            67877     interests and public policies pertinent to the classification and disclosure or nondisclosure, order
            67878     the disclosure of information properly classified as private, controlled, or protected if the public
            67879     interest favoring access outweighs the interest favoring restriction of access.
            67880         (c) In making a determination under Subsection (11)(b), the records committee shall
            67881     consider and, where appropriate, limit the requester's use and further disclosure of the record in
            67882     order to protect:
            67883         (i) privacy interests in the case of a private or controlled record;
            67884         (ii) business confidentiality interests in the case of a record protected under Subsection
            67885     [ 63-2-304 ] 63G-2-305 (1), (2), (40)(a)(ii), or (40)(a)(vi); and
            67886         (iii) privacy interests or the public interest in the case of other protected records.
            67887         (12) The order of the records committee shall include:
            67888         (a) a statement of reasons for the decision, including citations to this chapter, court rule
            67889     or order, another state statute, federal statute, or federal regulation that governs disclosure of
            67890     the record, provided that the citations do not disclose private, controlled, or protected
            67891     information;
            67892         (b) a description of the record or portions of the record to which access was ordered or
            67893     denied, provided that the description does not disclose private, controlled, or protected
            67894     information or information exempt from disclosure under Subsection [ 63-2-201 ]
            67895      63G-2-201 (3)(b);
            67896         (c) a statement that any party to the proceeding before the records committee may
            67897     appeal the records committee's decision to district court; and
            67898         (d) a brief summary of the appeals process, the time limits for filing an appeal, and a
            67899     notice that in order to protect its rights on appeal, the party may wish to seek advice from an
            67900     attorney.
            67901         (13) If the records committee fails to issue a decision within 57 calendar days of the

            67902     filing of the notice of appeal, that failure shall be considered the equivalent of an order denying
            67903     the appeal. The petitioner shall notify the records committee in writing if the petitioner
            67904     considers the appeal denied.
            67905         (14) (a) Unless a notice of intent to appeal is filed under Subsection (14)(b), each party
            67906     to the proceeding shall comply with the order of the records committee.
            67907         (b) If a party disagrees with the order of the records committee, that party may file a
            67908     notice of intent to appeal the order of the records committee.
            67909         (c) If the records committee orders the governmental entity to produce a record and no
            67910     appeal is filed, or if, as a result of the appeal, the governmental entity is required to produce a
            67911     record, the governmental entity shall:
            67912         (i) produce the record; and
            67913         (ii) file a notice of compliance with the records committee.
            67914         (d) (i) If the governmental entity that is ordered to produce a record fails to file a notice
            67915     of compliance or a notice of intent to appeal, the records committee may do either or both of
            67916     the following:
            67917         (A) impose a civil penalty of up to $500 for each day of continuing noncompliance; or
            67918         (B) send written notice of the governmental entity's noncompliance to:
            67919         (I) the governor for executive branch entities;
            67920         (II) the Legislative Management Committee for legislative branch entities; and
            67921         (III) the Judicial Council for judicial branch agencies entities.
            67922         (ii) In imposing a civil penalty, the records committee shall consider the gravity and
            67923     circumstances of the violation, including whether the failure to comply was due to neglect or
            67924     was willful or intentional.
            67925         Section 1340. Section 63G-2-404 , which is renumbered from Section 63-2-404 is
            67926     renumbered and amended to read:
            67927          [63-2-404].     63G-2-404. Judicial review.
            67928         (1) (a) Any party to a proceeding before the records committee may petition for judicial
            67929     review by the district court of the records committee's order.

            67930         (b) The petition shall be filed no later than 30 days after the date of the records
            67931     committee's order.
            67932         (c) The records committee is a necessary party to the petition for judicial review.
            67933         (d) The executive secretary of the records committee shall be served with notice of the
            67934     petition in accordance with the Utah Rules of Civil Procedure.
            67935         (2) (a) A requester may petition for judicial review by the district court of a
            67936     governmental entity's determination as specified in Subsection [ 63-2-402 ] 63G-2-402 (1)(b).
            67937         (b) The requester shall file a petition no later than:
            67938         (i) 30 days after the governmental entity has responded to the records request by either
            67939     providing the requested records or denying the request in whole or in part;
            67940         (ii) 35 days after the original request if the governmental entity failed to respond to the
            67941     request; or
            67942         (iii) 45 days after the original request for records if:
            67943         (A) the circumstances described in Subsection [ 63-2-401 ] 63G-2-401 (1)(b) occur; and
            67944         (B) the chief administrative officer failed to make a determination under Section
            67945     [ 63-2-401 ] 63G-2-401 .
            67946         (3) The petition for judicial review shall be a complaint governed by the Utah Rules of
            67947     Civil Procedure and shall contain:
            67948         (a) the petitioner's name and mailing address;
            67949         (b) a copy of the records committee order from which the appeal is taken, if the
            67950     petitioner brought a prior appeal to the records committee;
            67951         (c) the name and mailing address of the governmental entity that issued the initial
            67952     determination with a copy of that determination;
            67953         (d) a request for relief specifying the type and extent of relief requested; and
            67954         (e) a statement of the reasons why the petitioner is entitled to relief.
            67955         (4) If the appeal is based on the denial of access to a protected record, the court shall
            67956     allow the claimant of business confidentiality to provide to the court the reasons for the claim of
            67957     business confidentiality.

            67958         (5) All additional pleadings and proceedings in the district court are governed by the
            67959     Utah Rules of Civil Procedure.
            67960         (6) The district court may review the disputed records. The review shall be in camera.
            67961         (7) The court shall:
            67962         (a) make its decision de novo, but allow introduction of evidence presented to the
            67963     records committee;
            67964         (b) determine all questions of fact and law without a jury; and
            67965         (c) decide the issue at the earliest practical opportunity.
            67966         (8) (a) The court may, upon consideration and weighing of the various interests and
            67967     public policies pertinent to the classification and disclosure or nondisclosure, order the
            67968     disclosure of information properly classified as private, controlled, or protected if the interest
            67969     favoring access outweighs the interest favoring restriction of access.
            67970         (b) The court shall consider and, where appropriate, limit the requester's use and further
            67971     disclosure of the record in order to protect privacy interests in the case of private or controlled
            67972     records, business confidentiality interests in the case of records protected under Subsections
            67973     [ 63-2-304 ] 63G-2-305 (1) and (2), and privacy interests or the public interest in the case of
            67974     other protected records.
            67975         Section 1341. Section 63G-2-405 , which is renumbered from Section 63-2-405 is
            67976     renumbered and amended to read:
            67977          [63-2-405].     63G-2-405. Confidential treatment of records for which no
            67978      exemption applies.
            67979         (1) A court may, on appeal or in a declaratory or other action, order the confidential
            67980     treatment of records for which no exemption from disclosure applies if:
            67981         (a) there are compelling interests favoring restriction of access to the record; and
            67982         (b) the interests favoring restriction of access clearly outweigh the interests favoring
            67983     access.
            67984         (2) If a governmental entity requests a court to restrict access to a record under this
            67985     section, the court shall require the governmental entity to pay the reasonable attorneys' fees

            67986     incurred by the lead party in opposing the governmental entity's request, if:
            67987         (a) the court finds that no statutory or constitutional exemption from disclosure could
            67988     reasonably apply to the record in question; and
            67989         (b) the court denies confidential treatment under this section.
            67990         (3) This section does not apply to records that are specifically required to be public
            67991     under statutory provisions outside of this chapter or under Section [ 63-2-301 ] 63G-2-301 ,
            67992     except as provided in Subsection (4).
            67993         (4) (a) Access to drafts and empirical data in drafts may be limited under this section,
            67994     but the court may consider, in its evaluation of interests favoring restriction of access, only
            67995     those interests that relate to the underlying information, and not to the deliberative nature of the
            67996     record.
            67997         (b) Access to original data in a computer program may be limited under this section, but
            67998     the court may consider, in its evaluation of interests favoring restriction of access, only those
            67999     interests that relate to the underlying information, and not to the status of that data as part of a
            68000     computer program.
            68001         Section 1342. Section 63G-2-501 , which is renumbered from Section 63-2-501 is
            68002     renumbered and amended to read:
            68003     
Part 5. State Records Committee

            68004          [63-2-501].     63G-2-501. State Records Committee created -- Membership --
            68005      Terms -- Vacancies -- Expenses.
            68006         (1) There is created the State Records Committee within the Department of
            68007     Administrative Services to consist of the following seven individuals:
            68008         (a) an individual in the private sector whose profession requires him to create or
            68009     manage records that if created by a governmental entity would be private or controlled;
            68010         (b) the state auditor or the auditor's designee;
            68011         (c) the director of the Division of State History or the director's designee;
            68012         (d) the governor or the governor's designee;
            68013         (e) one citizen member;

            68014         (f) one elected official representing political subdivisions; and
            68015         (g) one individual representing the news media.
            68016         (2) The members specified in Subsections (1)(a), (e), (f), and (g) shall be appointed by
            68017     the governor with the consent of the Senate.
            68018         (3) (a) Except as required by Subsection (3)(b), as terms of current committee members
            68019     expire, the governor shall appoint each new member or reappointed member to a four-year
            68020     term.
            68021         (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
            68022     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
            68023     committee members are staggered so that approximately half of the committee is appointed
            68024     every two years.
            68025         (c) Each appointed member is eligible for reappointment for one additional term.
            68026         (4) When a vacancy occurs in the membership for any reason, the replacement shall be
            68027     appointed for the unexpired term.
            68028         (5) (a) (i) Members who are not government employees shall receive no compensation
            68029     or benefits for their services, but may receive per diem and expenses incurred in the
            68030     performance of the member's official duties at the rates established by the Division of Finance
            68031     under Sections 63A-3-106 and 63A-3-107 .
            68032         (ii) Members may decline to receive per diem and expenses for their service.
            68033         (b) (i) State government officer and employee members who do not receive salary, per
            68034     diem, or expenses from their agency for their service may receive per diem and expenses
            68035     incurred in the performance of their official duties from the committee at the rates established by
            68036     the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            68037         (ii) State government officer and employee members may decline to receive per diem
            68038     and expenses for their service.
            68039         (c) (i) Local government members who do not receive salary, per diem, or expenses
            68040     from the entity that they represent for their service may receive per diem and expenses incurred
            68041     in the performance of their official duties at the rates established by the Division of Finance

            68042     under Sections 63A-3-106 and 63A-3-107 .
            68043         (ii) Local government members may decline to receive per diem and expenses for their
            68044     service.
            68045         Section 1343. Section 63G-2-502 , which is renumbered from Section 63-2-502 is
            68046     renumbered and amended to read:
            68047          [63-2-502].     63G-2-502. State Records Committee -- Duties.
            68048         (1) The records committee shall:
            68049         (a) meet at least once every three months;
            68050         (b) review and approve retention and disposal of records;
            68051         (c) hear appeals from determinations of access as provided by Section [ 63-2-403 ]
            68052      63G-2-403 ; and
            68053         (d) appoint a chairman from among its members.
            68054         (2) The records committee may:
            68055         (a) make rules to govern its own proceedings as provided by [Title 63, Chapter 46a]
            68056     Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
            68057         (b) by order, after notice and hearing, reassign classification and designation for any
            68058     record series by a governmental entity if the governmental entity's classification or designation is
            68059     inconsistent with this chapter.
            68060         (3) The records committee shall annually appoint an executive secretary to the records
            68061     committee. The executive secretary may not serve as a voting member of the committee.
            68062         (4) Five members of the records committee are a quorum for the transaction of
            68063     business.
            68064         (5) The state archives shall provide staff and support services for the records
            68065     committee.
            68066         (6) Unless otherwise reimbursed, the citizen member, the individual in the private
            68067     sector, and the representative of the news media shall receive a per diem as established by the
            68068     Division of Finance in Section 63A-3-106 .
            68069         (7) If the records committee reassigns the classification or designation of a record or

            68070     record series under Subsection (2)(b), any affected governmental entity or any other interested
            68071     person may appeal the reclassification or redesignation to the district court. The district court
            68072     shall hear the matter de novo.
            68073         (8) The Office of the Attorney General shall provide counsel to the records committee
            68074     and shall review proposed retention schedules.
            68075         Section 1344. Section 63G-2-601 , which is renumbered from Section 63-2-601 is
            68076     renumbered and amended to read:
            68077     
Part 6. Collection of Information and Accuracy of Records

            68078          [63-2-601].     63G-2-601. Rights of individuals on whom data is maintained --
            68079      Classification statement -- Notice to provider of information.
            68080         (1) (a) Each governmental entity shall file with the state archivist a statement explaining
            68081     the purposes for which a record series that is designated as private or controlled is collected and
            68082     used by that governmental entity.
            68083         (b) The statement filed under Subsection (1)(a) is a public record.
            68084         (2) (a) A governmental entity shall provide notice of the following to a person that is
            68085     asked to furnish information that could be classified as a private or controlled record:
            68086         (i) the reasons the person is asked to furnish the information;
            68087         (ii) the intended uses of the information;
            68088         (iii) the consequences for refusing to provide the information; and
            68089         (iv) the classes of persons and the governmental entities that currently:
            68090         (A) share the information with the governmental entity; or
            68091         (B) receive the information from the governmental entity on a regular or contractual
            68092     basis.
            68093         (b) The notice shall be:
            68094         (i) posted in a prominent place at all locations where the governmental entity collects
            68095     the information; or
            68096         (ii) included as part of the documents or forms that are used by the governmental entity
            68097     to collect the information.

            68098         (3) Upon request, each governmental entity shall explain to a person:
            68099         (a) the reasons the person is asked to furnish information that could be classified as a
            68100     private or controlled record;
            68101         (b) the intended uses of the information referred to in Subsection (3)(a);
            68102         (c) the consequences for refusing to provide the information referred to in Subsection
            68103     (3)(a); and
            68104         (d) the reasons and circumstances under which the information referred to in Subsection
            68105     (3)(a) may be shared with or provided to other persons or governmental entities.
            68106         (4) A governmental entity may use private or controlled records only for those
            68107     purposes:
            68108         (a) given in the statement filed with the state archivist under Subsection (1); or
            68109         (b) for which another governmental entity may use the record under Section [ 63-2-206 ]
            68110      63G-2-206 .
            68111         Section 1345. Section 63G-2-602 , which is renumbered from Section 63-2-602 is
            68112     renumbered and amended to read:
            68113          [63-2-602].     63G-2-602. Disclosure to subject of records -- Context of use.
            68114         When providing records under Subsection [ 63-2-202 ] 63G-2-202 (1) or when providing
            68115     public records about an individual to the persons specified in Subsection [ 63-2-202 ]
            68116      63G-2-202 (1), a governmental entity shall, upon request, disclose the context in which the
            68117     record is used.
            68118         Section 1346. Section 63G-2-603 , which is renumbered from Section 63-2-603 is
            68119     renumbered and amended to read:
            68120          [63-2-603].     63G-2-603. Requests to amend a record -- Appeals.
            68121         (1) Proceedings of state agencies under this section shall be governed by [Title 63,
            68122     Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
            68123         (2) (a) Subject to Subsection (8), an individual may contest the accuracy or
            68124     completeness of any public, or private, or protected record concerning him by requesting the
            68125     governmental entity to amend the record. However, this section does not affect the right of

            68126     access to private or protected records.
            68127         (b) The request shall contain the following information:
            68128         (i) the requester's name, mailing address, and daytime telephone number; and
            68129         (ii) a brief statement explaining why the governmental entity should amend the record.
            68130         (3) The governmental entity shall issue an order either approving or denying the request
            68131     to amend as provided in [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
            68132     Procedures Act, or, if the act does not apply, no later than 30 days after receipt of the request.
            68133         (4) If the governmental entity approves the request, it shall correct all of its records
            68134     that contain the same incorrect information as soon as practical. A governmental entity may not
            68135     disclose the record until it has amended it.
            68136         (5) If the governmental entity denies the request, it shall:
            68137         (a) inform the requester in writing; and
            68138         (b) provide a brief statement giving its reasons for denying the request.
            68139         (6) (a) If a governmental entity denies a request to amend a record, the requester may
            68140     submit a written statement contesting the information in the record.
            68141         (b) The governmental entity shall:
            68142         (i) file the requester's statement with the disputed record if the record is in a form such
            68143     that the statement can accompany the record or make the statement accessible if the record is
            68144     not in a form such that the statement can accompany the record; and
            68145         (ii) disclose the requester's statement along with the information in the record whenever
            68146     the governmental entity discloses the disputed information.
            68147         (7) The requester may appeal the denial of the request to amend a record pursuant to
            68148     the Administrative Procedures Act or, if that act does not apply, to district court.
            68149         (8) This section does not apply to records relating to title to real or personal property,
            68150     medical records, judicial case files, or any other records that the governmental entity determines
            68151     must be maintained in their original form to protect the public interest and to preserve the
            68152     integrity of the record system.
            68153         Section 1347. Section 63G-2-604 , which is renumbered from Section 63-2-604 is

            68154     renumbered and amended to read:
            68155          [63-2-604].     63G-2-604. Retention and disposition of records.
            68156         (1) (a) Except for a governmental entity that is permitted to maintain its own retention
            68157     schedules under Part 7, Applicability to Political Subdivisions, the Judiciary, and the
            68158     Legislature, each governmental entity shall file with the State Records Committee a proposed
            68159     schedule for the retention and disposition of each type of material that is defined as a record
            68160     under this chapter.
            68161         (b) After a retention schedule is reviewed and approved by the State Records
            68162     Committee under Subsection [ 63-2-502 ] 63G-2-502 (1)(b), the governmental entity shall
            68163     maintain and destroy records in accordance with the retention schedule.
            68164         (c) If a governmental entity subject to the provisions of this section has not received an
            68165     approved retention schedule for a specific type of material that is classified as a record under
            68166     this chapter, the model retention schedule maintained by the state archivist shall govern the
            68167     retention and destruction of that type of material.
            68168         (2) A retention schedule that is filed with or approved by the State Records Committee
            68169     under the requirements of this section is a public record.
            68170         Section 1348. Section 63G-2-701 , which is renumbered from Section 63-2-701 is
            68171     renumbered and amended to read:
            68172     
Part 7. Applicability to Political Subdivisions, the Judiciary, and the Legislature

            68173          [63-2-701].     63G-2-701. Political subdivisions may adopt ordinances in
            68174      compliance with chapter.
            68175         (1) (a) Each political subdivision may adopt an ordinance or a policy applicable
            68176     throughout its jurisdiction relating to information practices including classification, designation,
            68177     access, denials, segregation, appeals, management, retention, and amendment of records.
            68178         (b) The ordinance or policy shall comply with the criteria set forth in this section.
            68179         (c) If any political subdivision does not adopt and maintain an ordinance or policy, then
            68180     that political subdivision is subject to this chapter.
            68181         (d) Notwithstanding the adoption of an ordinance or policy, each political subdivision is

            68182     subject to Parts 1 and 3, and Sections [ 63-2-201 ] 63G-2-201 , [ 63-2-202 ] 63G-2-202 ,
            68183     [ 63-2-205 ] 63G-2-205 , [ 63-2-206 ] 63G-2-206 , [ 63-2-601 ] 63G-2-601 , [ 63-2-602 ] 63G-2-602 ,
            68184     [ 63-2-905 ] 63A-12-105 , and [ 63-2-907 ] 63A-12-107 .
            68185         (e) Every ordinance, policy, or amendment to the ordinance or policy shall be filed with
            68186     the state archives no later than 30 days after its effective date.
            68187         (f) The political subdivision shall also report to the state archives all retention schedules,
            68188     and all designations and classifications applied to record series maintained by the political
            68189     subdivision.
            68190         (g) The report required by Subsection (f) is notification to state archives of the political
            68191     subdivision's retention schedules, designations, and classifications. The report is not subject to
            68192     approval by state archives. If state archives determines that a different retention schedule is
            68193     needed for state purposes, state archives shall notify the political subdivision of the state's
            68194     retention schedule for the records and shall maintain the records if requested to do so under
            68195     Subsection [ 63-2-905 ] 63A-12-105 (2).
            68196         (2) Each ordinance or policy relating to information practices shall:
            68197         (a) provide standards for the classification and designation of the records of the political
            68198     subdivision as public, private, controlled, or protected in accordance with Part 3 of this chapter;
            68199         (b) require the classification of the records of the political subdivision in accordance
            68200     with those standards;
            68201         (c) provide guidelines for establishment of fees in accordance with Section [ 63-2-203 ]
            68202      63G-2-203 ; and
            68203         (d) provide standards for the management and retention of the records of the political
            68204     subdivision comparable to Section [ 63-2-903 ] 63A-12-103 .
            68205         (3) (a) Each ordinance or policy shall establish access criteria, procedures, and response
            68206     times for requests to inspect, obtain, or amend records of the political subdivision, and time
            68207     limits for appeals consistent with this chapter.
            68208         (b) In establishing response times for access requests and time limits for appeals, the
            68209     political subdivision may establish reasonable time frames different than those set out in Section

            68210     [ 63-2-204 ] 63G-2-204 and Part 4 of this chapter if it determines that the resources of the
            68211     political subdivision are insufficient to meet the requirements of those sections.
            68212         (4) (a) The political subdivision shall establish an appeals process for persons aggrieved
            68213     by classification, designation or access decisions.
            68214         (b) The policy or ordinance shall provide for:
            68215         (i) an appeals board composed of the governing body of the political subdivision; or
            68216         (ii) a separate appeals board composed of members of the governing body and the
            68217     public, appointed by the governing body.
            68218         (5) If the requester concurs, the political subdivision may also provide for an additional
            68219     level of administrative review to the records committee in accordance with Section [ 63-2-403 ]
            68220      63G-2-403 .
            68221         (6) Appeals of the decisions of the appeals boards established by political subdivisions
            68222     shall be by petition for judicial review to the district court. The contents of the petition for
            68223     review and the conduct of the proceeding shall be in accordance with Sections [ 63-2-402 ]
            68224      63G-2-402 and [ 63-2-404 ] 63G-2-404 .
            68225         (7) Any political subdivision that adopts an ordinance or policy under Subsection (1)
            68226     shall forward to state archives a copy and summary description of the ordinance or policy.
            68227         Section 1349. Section 63G-2-702 , which is renumbered from Section 63-2-702 is
            68228     renumbered and amended to read:
            68229          [63-2-702].     63G-2-702. Applicability to the judiciary.
            68230         (1) The judiciary is subject to the provisions of this chapter except as provided in this
            68231     section.
            68232         (2) (a) The judiciary is not subject to Part 4, Appeals, except as provided in Subsection
            68233     (5).
            68234         (b) The judiciary is not subject to Parts 5, State Records Committee, and 6, Collection
            68235     of Information and Accuracy of Records.
            68236         (c) The judiciary is subject to only the following sections in Part 9, Archives and
            68237     Records Service: Sections [ 63-2-905 ] 63A-12-105 and [ 63-2-906 ] 63A-12-106 .

            68238         (3) The Judicial Council, the Administrative Office of the Courts, the courts, and other
            68239     administrative units in the judicial branch shall designate and classify their records in accordance
            68240     with Sections [ 63-2-301 ] 63G-2-301 through [ 63-2-304 ] 63G-2-305 .
            68241         (4) Substantially consistent with the provisions of this chapter, the Judicial Council
            68242     shall:
            68243         (a) make rules governing requests for access, fees, classification, designation,
            68244     segregation, management, retention, denials and appeals of requests for access and retention,
            68245     and amendment of judicial records;
            68246         (b) establish an appellate board to handle appeals from denials of requests for access
            68247     and provide that a requester who is denied access by the appellate board may file a lawsuit in
            68248     district court; and
            68249         (c) provide standards for the management and retention of judicial records substantially
            68250     consistent with Section [ 63-2-903 ] 63A-12-103 .
            68251         (5) Rules governing appeals from denials of requests for access shall substantially
            68252     comply with the time limits provided in Section [ 63-2-204 ] 63G-2-204 and Part 4, Appeals.
            68253         (6) Upon request, the state archivist shall:
            68254         (a) assist with and advise concerning the establishment of a records management
            68255     program in the judicial branch; and
            68256         (b) as required by the judiciary, provide program services similar to those available to
            68257     the executive and legislative branches of government as provided in this chapter and Title 63A,
            68258     Chapter 12, Part 1, Archives and Records Service.
            68259         Section 1350. Section 63G-2-703 , which is renumbered from Section 63-2-703 is
            68260     renumbered and amended to read:
            68261          [63-2-703].     63G-2-703. Applicability to the Legislature.
            68262         (1) The Legislature and its staff offices shall designate and classify records in
            68263     accordance with Sections [ 63-2-301 ] 63G-2-301 through [ 63-2-304 ] 63G-2-305 as public,
            68264     private, controlled, or protected.
            68265         (2) (a) The Legislature and its staff offices are not subject to Section [ 63-2-203 ]

            68266      63G-2-203 or to Part 4, Appeals, 5, State Records Committee, or 6, Collection of Information
            68267     and Accuracy of Records.
            68268         (b) The Legislature is subject to only the following sections in Part 9, Archives and
            68269     Records Service: Sections [ 63-2-902 ] 63A-12-102 , [ 63-2-906 ] 63A-12-106 , and [ 63-2-909 ]
            68270      63G-2-310 .
            68271         (3) The Legislature, through the Legislative Management Committee:
            68272         (a) shall establish policies to handle requests for classification, designation, fees, access,
            68273     denials, segregation, appeals, management, retention, and amendment of records; and
            68274         (b) may establish an appellate board to hear appeals from denials of access.
            68275         (4) Policies shall include reasonable times for responding to access requests consistent
            68276     with the provisions of Part 2, Access to Records, fees, and reasonable time limits for appeals.
            68277         (5) Upon request, the state archivist shall:
            68278         (a) assist with and advise concerning the establishment of a records management
            68279     program in the Legislature; and
            68280         (b) as required by the Legislature, provide program services similar to those available to
            68281     the executive branch of government, as provided in this chapter and Title 63A, Chapter 12, Part
            68282     1, Archives and Records Service.
            68283         Section 1351. Section 63G-2-801 , which is renumbered from Section 63-2-801 is
            68284     renumbered and amended to read:
            68285     
Part 8. Remedies

            68286          [63-2-801].     63G-2-801. Criminal penalties.
            68287         (1) (a) A public employee or other person who has lawful access to any private,
            68288     controlled, or protected record under this chapter, and who intentionally discloses, provides a
            68289     copy of, or improperly uses a private, controlled, or protected record knowing that the
            68290     disclosure or use is prohibited under this chapter, is guilty of a class B misdemeanor.
            68291         (b) It is a defense to prosecution under Subsection (1)(a) that the actor used or released
            68292     private, controlled, or protected information in the reasonable belief that the use or disclosure of
            68293     the information was necessary to expose a violation of law involving government corruption,

            68294     abuse of office, or misappropriation of public funds or property.
            68295         (c) It is a defense to prosecution under Subsection (1)(a) that the record could have
            68296     lawfully been released to the recipient if it had been properly classified.
            68297         (2) (a) A person who by false pretenses, bribery, or theft, gains access to or obtains a
            68298     copy of any private, controlled, or protected record to which [he] the person is not legally
            68299     entitled is guilty of a class B misdemeanor.
            68300         (b) No person shall be guilty under Subsection (2)(a) who receives the record,
            68301     information, or copy after the fact and without prior knowledge of or participation in the false
            68302     pretenses, bribery, or theft.
            68303         (3) A public employee who intentionally refuses to release a record the disclosure of
            68304     which the employee knows is required by law or by final unappealed order from a governmental
            68305     entity, the records committee, or a court, is guilty of a class B misdemeanor.
            68306         Section 1352. Section 63G-2-802 , which is renumbered from Section 63-2-802 is
            68307     renumbered and amended to read:
            68308          [63-2-802].     63G-2-802. Injunction -- Attorney fees.
            68309         (1) A district court in this state may enjoin any governmental entity or political
            68310     subdivision that violates or proposes to violate the provisions of this chapter.
            68311         (2) (a) A district court may assess against any governmental entity or political
            68312     subdivision reasonable [attorneys'] attorney fees and other litigation costs reasonably incurred in
            68313     connection with a judicial appeal of a denial of a records request if the requester substantially
            68314     prevails.
            68315         (b) In determining whether to award attorneys' fees under this section, the court shall
            68316     consider:
            68317         (i) the public benefit derived from the case;
            68318         (ii) the nature of the requester's interest in the records; and
            68319         (iii) whether the governmental entity's or political subdivision's actions had a reasonable
            68320     basis.
            68321         (c) [Attorneys'] Attorney fees shall not ordinarily be awarded if the purpose of the

            68322     litigation is primarily to benefit the requester's financial or commercial interest.
            68323         (3) Neither [attorneys'] attorney fees nor costs shall be awarded for fees or costs
            68324     incurred during administrative proceedings.
            68325         (4) Notwithstanding Subsection (2), a court may only award fees and costs incurred in
            68326     connection with appeals to district courts under Subsection [ 63-2-404 ] 63G-2-404 (2) if the fees
            68327     and costs were incurred 20 or more days after the requester provided to the governmental entity
            68328     or political subdivision a statement of position that adequately explains the basis for the
            68329     requester's position.
            68330         (5) Claims for [attorneys'] attorney fees as provided in this section or for damages are
            68331     subject to [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah.
            68332         Section 1353. Section 63G-2-803 , which is renumbered from Section 63-2-803 is
            68333     renumbered and amended to read:
            68334          [63-2-803].     63G-2-803. No liability for certain decisions of a governmental
            68335      entity or a political subdivision.
            68336         (1) Neither the governmental entity or political subdivision, nor any officer or employee
            68337     of the governmental entity or political subdivision, is liable for damages resulting from the
            68338     release of a record where the person or government requesting the record presented evidence of
            68339     authority to obtain the record even if it is subsequently determined that the requester had no
            68340     authority.
            68341         (2) Neither the governmental entity or political subdivision, nor any officer or employee
            68342     of the governmental entity or political subdivision, is liable for damages arising from the
            68343     negligent disclosure of records classified as private under Subsection [ 63-2-302 ]
            68344      63G-2-302 (1)(f) unless:
            68345         (a) the disclosure was of employment records maintained by the governmental entity; or
            68346         (b) the current or former government employee had previously filed the notice required
            68347     by Section [ 63-2-302.5 ] 63G-2-303 and:
            68348         (i) the government entity did not take reasonable steps to preclude access or
            68349     distribution of the record; or

            68350         (ii) the release of the record was otherwise willfully or grossly negligent.
            68351         (3) A mailing from a government agency to an individual who has filed an application
            68352     under Section [ 63-2-302.5 ] 63G-2-303 is not a wrongful disclosure under this chapter.
            68353         Section 1354. Section 63G-2-804 , which is renumbered from Section 63-2-804 is
            68354     renumbered and amended to read:
            68355          [63-2-804].     63G-2-804. Disciplinary action.
            68356         A governmental entity or political subdivision may take disciplinary action which may
            68357     include suspension or discharge against any employee of the governmental entity or political
            68358     subdivision who intentionally violates any provision of this chapter.
            68359         Section 1355. Section 63G-2-901 , which is renumbered from Section 63-2-1001 is
            68360     renumbered and amended to read:
            68361     
Part 9. Public Associations

            68362          [63-2-1001].     63G-2-901. Definitions -- Public associations subject to act.
            68363         (1) As used in this section:
            68364         (a) "Public association" means any association, organization, or society whose members
            68365     include elected or appointed public officials and for which public funds are used or paid to the
            68366     public association for membership dues or for other support for the official's participation in the
            68367     public association.
            68368         (b) (i) "Public funds" means any monies received by a public entity from appropriations,
            68369     taxes, fees, interest, or other returns on investment.
            68370         (ii) "Public funds" does not include monies donated to a public entity by a person or
            68371     entity.
            68372         (2) The budget documents and financial statements of a public association shall be
            68373     released pursuant to a written request if 50% or more of the public association's:
            68374         (a) members are elected or appointed public officials from this state; and
            68375         (b) membership dues or other financial support come from public funds from this state.
            68376         Section 1356. Section 63G-3-101 , which is renumbered from Section 63-46a-1 is
            68377     renumbered and amended to read:

            68378     
CHAPTER 3. UTAH ADMINISTRATIVE RULEMAKING ACT

            68379     
Part 1. General Provisions

            68380          [63-46a-1].     63G-3-101. Title.
            68381         This [act] chapter is known as the "Utah Administrative Rulemaking Act."
            68382         Section 1357. Section 63G-3-102 , which is renumbered from Section 63-46a-2 is
            68383     renumbered and amended to read:
            68384          [63-46a-2].     63G-3-102. Definitions.
            68385         As used in this chapter:
            68386         (1) "Administrative record" means information an agency relies upon when making a
            68387     rule under this chapter including:
            68388         (a) the proposed rule, change in the proposed rule, and the rule analysis form;
            68389         (b) the public comment received and recorded by the agency during the public comment
            68390     period;
            68391         (c) the agency's response to the public comment;
            68392         (d) the agency's analysis of the public comment; and
            68393         (e) the agency's report of its decision-making process.
            68394         (2) "Agency" means each state board, authority, commission, institution, department,
            68395     division, officer, or other state government entity other than the Legislature, its committees, the
            68396     political subdivisions of the state, or the courts, which is authorized or required by law to make
            68397     rules, adjudicate, grant or withhold licenses, grant or withhold relief from legal obligations, or
            68398     perform other similar actions or duties delegated by law.
            68399         (3) "Bulletin" means the Utah State Bulletin.
            68400         (4) "Catchline" means a short summary of each section, part, rule, or title of the code
            68401     that follows the section, part, rule, or title reference placed before the text of the rule and serves
            68402     the same function as boldface in legislation as described in Section 68-3-13 .
            68403         (5) "Code" means the body of all effective rules as compiled and organized by the
            68404     division and entitled "Utah Administrative Code."
            68405         (6) "Director" means the director of the Division of Administrative Rules.

            68406         (7) "Division" means the Division of Administrative Rules.
            68407         (8) "Effective" means operative and enforceable.
            68408         (9) (a) "File" means to submit a document to the division as prescribed by the division.
            68409         (b) "Filing date" means the day and time the document is recorded as received by the
            68410     division.
            68411         (10) "Interested person" means any person affected by or interested in a proposed rule,
            68412     amendment to an existing rule, or a nonsubstantive change made under Section [ 63-46a-10 ]
            68413      63G-3-402 .
            68414         (11) "Order" means an agency action that determines the legal rights, duties, privileges,
            68415     immunities, or other interests of one or more specific persons, but not a class of persons.
            68416         (12) "Person" means any individual, partnership, corporation, association, governmental
            68417     entity, or public or private organization of any character other than an agency.
            68418         (13) "Publication" or "publish" means making a rule available to the public by including
            68419     the rule or a summary of the rule in the bulletin.
            68420         (14) "Publication date" means the inscribed date of the bulletin.
            68421         (15) "Register" may include an electronic database.
            68422         (16) (a) "Rule" means an agency's written statement that:
            68423         (i) is explicitly or implicitly required by state or federal statute or other applicable law;
            68424         (ii) implements or interprets a state or federal legal mandate; and
            68425         (iii) applies to a class of persons or another agency.
            68426         (b) "Rule" includes the amendment or repeal of an existing rule.
            68427         (c) "Rule" does not mean:
            68428         (i) orders;
            68429         (ii) an agency's written statement that applies only to internal management and that does
            68430     not restrict the legal rights of a public class of persons or another agency;
            68431         (iii) the governor's executive orders or proclamations;
            68432         (iv) opinions issued by the attorney general's office;
            68433         (v) declaratory rulings issued by the agency according to Section [ 63-46b-21 ]

            68434      63G-4-503 except as required by Section [ 63-46a-3 ] 63G-3-201 ;
            68435         (vi) rulings by an agency in adjudicative proceedings, except as required by Subsection
            68436     [ 63-46a-3 ] 63G-3-201 (6); or
            68437         (vii) an agency written statement that is in violation of any state or federal law.
            68438         (17) "Rule analysis" means the format prescribed by the division to summarize and
            68439     analyze rules.
            68440         (18) "Small business" means a business employing fewer than 50 persons.
            68441         (19) "Substantive change" means a change in a rule that affects the application or
            68442     results of agency actions.
            68443         Section 1358. Section 63G-3-201 , which is renumbered from Section 63-46a-3 is
            68444     renumbered and amended to read:
            68445     
Part 2. Circumstances Requiring Rulemaking - Status of Administrative Rules

            68446          [63-46a-3].     63G-3-201. When rulemaking is required.
            68447         (1) Each agency shall:
            68448         (a) maintain a current version of its rules; and
            68449         (b) make it available to the public for inspection during its regular business hours.
            68450         (2) In addition to other rulemaking required by law, each agency shall make rules when
            68451     agency action:
            68452         (a) authorizes, requires, or prohibits an action;
            68453         (b) provides or prohibits a material benefit;
            68454         (c) applies to a class of persons or another agency; and
            68455         (d) is explicitly or implicitly authorized by statute.
            68456         (3) Rulemaking is also required when an agency issues a written interpretation of a state
            68457     or federal legal mandate.
            68458         (4) Rulemaking is not required when:
            68459         (a) agency action applies only to internal agency management, inmates or residents of a
            68460     state correctional, diagnostic, or detention facility, persons under state legal custody, patients
            68461     admitted to a state hospital, members of the state retirement system, or students enrolled in a

            68462     state education institution;
            68463         (b) a standardized agency manual applies only to internal fiscal or administrative details
            68464     of governmental entities supervised under statute;
            68465         (c) an agency issues policy or other statements that are advisory, informative, or
            68466     descriptive, and do not conform to the requirements of Subsections (2) and (3); or
            68467         (d) an agency makes nonsubstantive changes in a rule, except that the agency shall file
            68468     all nonsubstantive changes in a rule with the division.
            68469         (5) A rule shall enumerate any penalty authorized by statute that may result from its
            68470     violation.
            68471         (6) Each agency shall enact rules incorporating the principles of law not already in its
            68472     rules that are established by final adjudicative decisions within 120 days after the decision is
            68473     announced in its cases.
            68474         (7) (a) Each agency may enact a rule that incorporates by reference:
            68475         (i) all or any part of another code, rule, or regulation that has been adopted by a federal
            68476     agency, an agency or political subdivision of this state, an agency of another state, or by a
            68477     nationally recognized organization or association;
            68478         (ii) state agency implementation plans mandated by the federal government for
            68479     participation in the federal program;
            68480         (iii) lists, tables, illustrations, or similar materials that are subject to frequent change,
            68481     fully described in the rule, and are available for public inspection; or
            68482         (iv) lists, tables, illustrations, or similar materials that the director determines are too
            68483     expensive to reproduce in the administrative code.
            68484         (b) Rules incorporating materials by reference shall:
            68485         (i) be enacted according to the procedures outlined in this chapter;
            68486         (ii) state that the referenced material is incorporated by reference;
            68487         (iii) state the date, issue, or version of the material being incorporated; and
            68488         (iv) define specifically what material is incorporated by reference and identify any
            68489     agency deviations from it.

            68490         (c) The agency shall identify any substantive changes in the material incorporated by
            68491     reference by following the rulemaking procedures of this chapter.
            68492         (d) The agency shall maintain a complete and current copy of the referenced material
            68493     available for public review at the agency and at the division.
            68494         (8) (a) This chapter is not intended to inhibit the exercise of agency discretion within
            68495     the limits prescribed by statute or agency rule.
            68496         (b) An agency may enact a rule creating a justified exception to a rule.
            68497         (9) An agency may obtain assistance from the attorney general to ensure that its rules
            68498     meet legal and constitutional requirements.
            68499         Section 1359. Section 63G-3-202 , which is renumbered from Section 63-46a-3.5 is
            68500     renumbered and amended to read:
            68501          [63-46a-3.5].     63G-3-202. Rules having the effect of law.
            68502         (1) An agency's written statement is a rule if it conforms to the definition of a rule under
            68503     Section [ 63-46a-2 ] 63G-3-102 , but the written statement is not enforceable unless it is made as
            68504     a rule in accordance with the requirements of this chapter.
            68505         (2) An agency's written statement that is made as a rule in accordance with the
            68506     requirements of this chapter is enforceable and has the effect of law.
            68507         Section 1360. Section 63G-3-301 , which is renumbered from Section 63-46a-4 is
            68508     renumbered and amended to read:
            68509     
Part 3. Rulemaking Procedures

            68510          [63-46a-4].     63G-3-301. Rulemaking procedure.
            68511         (1) An agency authorized to make rules is also authorized to amend or repeal those
            68512     rules.
            68513         (2) Except as provided in Sections [ 63-46a-6 ] 63G-3-303 and [ 63-46a-7 ] 63G-3-304 ,
            68514     when making, amending, or repealing a rule agencies shall comply with:
            68515         (a) the requirements of this section;
            68516         (b) consistent procedures required by other statutes;
            68517         (c) applicable federal mandates; and

            68518         (d) rules made by the division to implement this chapter.
            68519         (3) Subject to the requirements of this chapter, each agency shall develop and use
            68520     flexible approaches in drafting rules that meet the needs of the agency and that involve persons
            68521     affected by the agency's rules.
            68522         (4) (a) Each agency shall file its proposed rule and rule analysis with the division.
            68523         (b) Rule amendments shall be marked with new language underlined and deleted
            68524     language struck out.
            68525         (c) (i) The division shall publish the information required under [this] Subsection [(4)]
            68526     (6) on the rule analysis and the text of the proposed rule in the next issue of the bulletin.
            68527         (ii) For rule amendments, only the section or subsection of the rule being amended need
            68528     be printed.
            68529         (iii) If the director determines that the rule is too long to publish, the director shall
            68530     publish the rule analysis and shall publish the rule by reference to a copy on file with the
            68531     division.
            68532         (5) Prior to filing a rule with the division, the department head shall consider and
            68533     comment on the fiscal impact a rule may have on businesses.
            68534         (6) The rule analysis shall contain:
            68535         (a) a summary of the rule or change;
            68536         (b) the purpose of the rule or reason for the change;
            68537         (c) the statutory authority or federal requirement for the rule;
            68538         (d) the anticipated cost or savings to:
            68539         (i) the state budget;
            68540         (ii) local governments;
            68541         (iii) small businesses; and
            68542         (iv) persons other than small businesses, businesses, or local governmental entities;
            68543         (e) the compliance cost for affected persons;
            68544         (f) how interested persons may review the full text of the rule;
            68545         (g) how interested persons may present their views on the rule;

            68546         (h) the time and place of any scheduled public hearing;
            68547         (i) the name and telephone number of an agency employee who may be contacted about
            68548     the rule;
            68549         (j) the name of the agency head or designee who authorized the rule;
            68550         (k) the date on which the rule may become effective following the public comment
            68551     period; and
            68552         (l) comments by the department head on the fiscal impact the rule may have on
            68553     businesses.
            68554         (7) (a) For a rule being repealed and reenacted, the rule analysis shall contain a
            68555     summary that generally includes the following:
            68556         (i) a summary of substantive provisions in the repealed rule which are eliminated from
            68557     the enacted rule; and
            68558         (ii) a summary of new substantive provisions appearing only in the enacted rule.
            68559         (b) The summary required under this Subsection (7) is to aid in review and may not be
            68560     used to contest any rule on the ground of noncompliance with the procedural requirements of
            68561     this chapter.
            68562         (8) A copy of the rule analysis shall be mailed to all persons who have made timely
            68563     request of the agency for advance notice of its rulemaking proceedings and to any other person
            68564     who, by statutory or federal mandate or in the judgment of the agency, should also receive
            68565     notice.
            68566         (9) (a) Following the publication date, the agency shall allow at least 30 days for public
            68567     comment on the rule.
            68568         (b) The agency shall review and evaluate all public comments submitted in writing
            68569     within the time period under Subsection (9)(a) or presented at public hearings conducted by the
            68570     agency within the time period under Subsection (9)(a).
            68571         (10) (a) Except as provided in Sections [ 63-46a-6 ] 63G-3-303 and [ 63-46a-7 ]
            68572      63G-3-304 , a proposed rule becomes effective on any date specified by the agency that is no
            68573     fewer than seven calendar days after the close of the public comment period under Subsection

            68574     (9), nor more than 120 days after the publication date.
            68575         (b) The agency shall provide notice of the rule's effective date to the division in the form
            68576     required by the division.
            68577         (c) The notice of effective date may not provide for an effective date prior to the date it
            68578     is received by the division.
            68579         (d) The division shall publish notice of the effective date of the rule in the next issue of
            68580     the bulletin.
            68581         (e) A proposed rule lapses if a notice of effective date or a change to a proposed rule is
            68582     not filed with the division within 120 days of publication.
            68583         (11) (a) As used in this Subsection (11), "initiate rulemaking proceedings" means the
            68584     filing, for the purposes of publication in accordance with Subsection (4), of an agency's
            68585     proposed rule that is required by state statute.
            68586         (b) A state agency shall initiate rulemaking proceedings no later than 180 days after the
            68587     effective date of the statutory provision that requires the rulemaking.
            68588         (c) If a state agency does not initiate rulemaking proceedings in accordance with the
            68589     time requirements in Subsection (11)(b), the state agency shall appear before the legislative
            68590     Administrative Rules Review Committee and provide the reasons for the delay.
            68591         Section 1361. Section 63G-3-302 , which is renumbered from Section 63-46a-5 is
            68592     renumbered and amended to read:
            68593          [63-46a-5].     63G-3-302. Public hearings.
            68594         (1) Each agency may hold a public hearing on a proposed rule, amendment to a rule, or
            68595     repeal of a rule during the public comment period.
            68596         (2) Each agency shall hold a public hearing on a proposed rule, amendment to a rule, or
            68597     repeal of a rule if:
            68598         (a) a public hearing is required by state or federal mandate;
            68599         (b) (i) another state agency, ten interested persons, or an interested association having
            68600     not fewer than ten members request a public hearing; and
            68601         (ii) the agency receives the request in writing not more than 15 days after the

            68602     publication date of the proposed rule.
            68603         (3) The agency shall hold the hearing:
            68604         (a) before the rule becomes effective; and
            68605         (b) no less than seven days nor more than 30 days after receipt of the request for
            68606     hearing.
            68607         Section 1362. Section 63G-3-303 , which is renumbered from Section 63-46a-6 is
            68608     renumbered and amended to read:
            68609          [63-46a-6].     63G-3-303. Changes in rules.
            68610         (1) (a) To change a proposed rule already published in the bulletin, an agency shall file
            68611     with the division:
            68612         (i) the text of the changed rule; and
            68613         (ii) a rule analysis containing a description of the change and the information required
            68614     by Section [ 63-46a-4 ] 63G-3-301 .
            68615         (b) A change to a proposed rule may not be filed more than 120 days after publication
            68616     of the rule being changed.
            68617         (c) The division shall publish the rule analysis for the changed rule in the bulletin.
            68618         (d) The changed proposed rule and its associated proposed rule will become effective
            68619     on a date specified by the agency, not less than 30 days or more than 120 days after publication
            68620     of the last change in proposed rule.
            68621         (e) A changed proposed rule and its associated proposed rule lapse if a notice of
            68622     effective date or another change to a proposed rule is not filed with the division within 120 days
            68623     of publication of the last change in proposed rule.
            68624         (2) If the rule change is nonsubstantive:
            68625         (a) the agency need not comply with the requirements of Subsection (1); and
            68626         (b) the agency shall notify the division of the change in writing.
            68627         (3) If the rule is effective, the agency shall amend the rule according to the procedures
            68628     specified in Section [ 63-46a-4 ] 63G-3-301 .
            68629         Section 1363. Section 63G-3-304 , which is renumbered from Section 63-46a-7 is

            68630     renumbered and amended to read:
            68631          [63-46a-7].     63G-3-304. Emergency rulemaking procedure.
            68632         (1) All agencies shall comply with the rulemaking procedures of Section [ 63-46a-4 ]
            68633      63G-3-301 unless an agency finds that these procedures would:
            68634         (a) cause an imminent peril to the public health, safety, or welfare;
            68635         (b) cause an imminent budget reduction because of budget restraints or federal
            68636     requirements; or
            68637         (c) place the agency in violation of federal or state law.
            68638         (2) (a) When finding that its rule is excepted from regular rulemaking procedures by
            68639     this section, the agency shall file with the division:
            68640         (i) the text of the rule; and
            68641         (ii) a rule analysis that includes the specific reasons and justifications for its findings.
            68642         (b) The division shall publish the rule in the bulletin as provided in Subsection
            68643     [ 63-46a-4 ] 63G-3-301 (4).
            68644         (c) The agency shall notify interested persons as provided in Subsection [ 63-46a-4 ]
            68645      63G-3-301 (8).
            68646         (d) The rule becomes effective for a period not exceeding 120 days on the date of filing
            68647     or any later date designated in the rule.
            68648         (3) If the agency intends the rule to be effective beyond 120 days, the agency shall also
            68649     comply with the procedures of Section [ 63-46a-4 ] 63G-3-301 .
            68650         Section 1364. Section 63G-3-305 , which is renumbered from Section 63-46a-9 is
            68651     renumbered and amended to read:
            68652          [63-46a-9].     63G-3-305. Agency review of rules -- Schedule of filings -- Limited
            68653      exemption for certain rules.
            68654         (1) Each agency shall review each of its rules within five years of the rule's original
            68655     effective date or within five years of the filing of the last five-year review, whichever is later.
            68656     Rules effective prior to 1992 need not be reviewed until 1997.
            68657         (2) An agency may consider any substantial review of a rule to be a five-year review. If

            68658     the agency chooses to consider a review a five-year review, it shall follow the procedures
            68659     outlined in Subsection (3).
            68660         (3) At the conclusion of its review, the agency shall file a notice of review on or before
            68661     the anniversary date indicating its intent to continue, amend, or repeal the rule.
            68662         (a) If the agency continues the rule, it shall file a statement which includes:
            68663         (i) a concise explanation of the particular statutory provisions under which the rule is
            68664     enacted and how these provisions authorize or require the rule;
            68665         (ii) a summary of written comments received during and since the last five-year review
            68666     of the rule from interested persons supporting or opposing the rule; and
            68667         (iii) a reasoned justification for continuation of the rule, including reasons why the
            68668     agency disagrees with comments in opposition to the rule, if any.
            68669         (b) If the agency repeals the rule, it shall comply with Section [ 63-46a-4 ] 63G-3-301 .
            68670         (c) If the agency amends and continues the rule, it shall comply with the requirements of
            68671     Section [ 63-46a-4 ] 63G-3-301 and file the statement required in Subsection (3)(a).
            68672         (4) (a) The division shall publish the notice and statement in the bulletin.
            68673         (b) The division may schedule the publication of agency notices and statements,
            68674     provided that no notice and statement shall be published more than one year after the review
            68675     deadline established under Subsection (1).
            68676         (5) The division shall notify an agency of rules due for review at least 180 days prior to
            68677     the anniversary date.
            68678         (6) If an agency finds that it will not meet the deadline established in Subsection (1):
            68679         (a) the agency may file an extension prior to the anniversary date with the division
            68680     indicating the reason for the extension; and
            68681         (b) the division shall publish notice of the extension in the next issue of the bulletin.
            68682         (7) An extension permits the agency to file a notice no more than 120 days after the
            68683     anniversary date.
            68684         (8) If an agency fails to file a notice of review or extension on or before the date
            68685     specified in the notice mandated in Subsection (5), the division shall:

            68686         (a) publish a notice in the next issue of the bulletin that the rule has expired and is no
            68687     longer enforceable;
            68688         (b) remove the rule from the code; and
            68689         (c) notify the agency that the rule has expired.
            68690         (9) After a rule expires, an agency must comply with the requirements of Section
            68691     [ 63-46a-4 ] 63G-3-301 to reenact the rule.
            68692         (10) (a) Rules issued under the following provisions related to the Department of
            68693     Workforce Services or Labor Commission that are in effect on July 1, 1997, are not subject to
            68694     the requirements of this section until July 1, 1998:
            68695         (i) Title 34, Labor in General;
            68696         (ii) Title 34A, Utah Labor Code;
            68697         (iii) Title 35A, Utah Workforce Services Code;
            68698         (iv) Title 40, Chapter 2, Coal Mines; and
            68699         (v) Title 57, Chapter 21, Utah Fair Housing Act.
            68700         (b) Any rule described in Subsection (10)(a) that would have expired on or after July 1,
            68701     1997 but before July 1, 1998, expires July 1, 1998, unless for that rule the Department of
            68702     Workforce Services or Labor Commission files:
            68703         (i) the notice of review, described in Subsection (3); or
            68704         (ii) an extension described in Subsection (6).
            68705         Section 1365. Section 63G-3-401 , which is renumbered from Section 63-46a-9.5 is
            68706     renumbered and amended to read:
            68707     
Part 4. Division of Administrative Rules

            68708          [63-46a-9.5].     63G-3-401. Division of Administrative Rules created --
            68709      Appointment of director.
            68710         (1) There is created within the Department of Administrative Services the Division of
            68711     Administrative Rules, to be administered by a director.
            68712         (2) The director of administrative rules shall be appointed by the executive director with
            68713     the approval of the governor.

            68714         Section 1366. Section 63G-3-402 , which is renumbered from Section 63-46a-10 is
            68715     renumbered and amended to read:
            68716          [63-46a-10].     63G-3-402. Division of Administrative Rules -- Duties
            68717      generally.
            68718         (1) The Division of Administrative Rules shall:
            68719         (a) establish all filing, publication, and hearing procedures necessary to make rules
            68720     under this chapter;
            68721         (b) record in a register the receipt of all agency rules, rule analysis forms, and notices of
            68722     effective dates;
            68723         (c) make the register, copies of all proposed rules, and rulemaking documents available
            68724     for public inspection;
            68725         (d) publish all proposed rules, rule analyses, notices of effective dates, and review
            68726     notices in the bulletin at least monthly, except that the division may publish the complete text of
            68727     any proposed rule that the director determines is too long to print or too expensive to publish by
            68728     reference to the text maintained by the division;
            68729         (e) compile, format, number, and index all effective rules in an administrative code, and
            68730     periodically publish that code and supplements or revisions to it;
            68731         (f) publish a digest of all rules and notices contained in the most recent bulletin;
            68732         (g) publish at least annually an index of all changes to the administrative code and the
            68733     effective date of each change;
            68734         (h) print, or contract to print, all rulemaking publications the division determines
            68735     necessary to implement this chapter;
            68736         (i) distribute without charge the bulletin and administrative code to state-designated
            68737     repositories, the Administrative Rules Review Committee, the Office of Legislative Research
            68738     and General Counsel, and the two houses of the Legislature;
            68739         (j) distribute without charge the digest and index to state legislators, agencies, political
            68740     subdivisions on request, and the Office of Legislative Research and General Counsel;
            68741         (k) distribute, at prices covering publication costs, all paper rulemaking publications to

            68742     all other requesting persons and agencies;
            68743         (l) provide agencies assistance in rulemaking; and
            68744         (m) administer this chapter and require state agencies to comply with filing, publication,
            68745     and hearing procedures.
            68746         (2) The division may after notifying the agency make nonsubstantive changes to rules
            68747     filed with the division or published in the bulletin or code by:
            68748         (a) implementing a uniform system of formatting, punctuation, capitalization,
            68749     organization, numbering, and wording;
            68750         (b) correcting obvious errors and inconsistencies in punctuation, capitalization,
            68751     numbering, referencing, and wording;
            68752         (c) changing a catchline to more accurately reflect the substance of each section, part,
            68753     rule, or title;
            68754         (d) updating or correcting annotations associated with a section, part, rule, or title; and
            68755         (e) merging or determining priority of any amendment, enactment, or repeal to the same
            68756     rule or section made effective by an agency.
            68757         (3) In addition, the division may make the following nonsubstantive changes with the
            68758     concurrence of the agency:
            68759         (a) eliminate duplication within rules;
            68760         (b) eliminate obsolete and redundant words; and
            68761         (c) correcting defective or inconsistent section and paragraph structure in arrangement
            68762     of the subject matter of rules.
            68763         (4) For nonsubstantive changes made in accordance with Subsection (2) or (3) after
            68764     publication of the rule in the bulletin, the division shall publish a list of nonsubstantive changes
            68765     in the bulletin. For each nonsubstantive change, the list shall include:
            68766         (a) the affected code citation;
            68767         (b) a brief description of the change; and
            68768         (c) the date the change was made.
            68769         (5) All funds appropriated or collected for publishing the division's publications shall be

            68770     nonlapsing.
            68771         Section 1367. Section 63G-3-403 , which is renumbered from Section 63-46a-10.5 is
            68772     renumbered and amended to read:
            68773          [63-46a-10.5].     63G-3-403. Repeal and reenactment of Utah Administrative
            68774      Code.
            68775         (1) When the director determines that the Utah Administrative Code requires extensive
            68776     revision and reorganization, the division may repeal the code and reenact a new code according
            68777     to the requirements of this section.
            68778         (2) The division may:
            68779         (a) reorganize, reformat, and renumber the code;
            68780         (b) require each agency to review its rules and make any organizational or substantive
            68781     changes according to the requirements of Section [ 63-46a-6 ] 63G-3-303 ; and
            68782         (c) require each agency to prepare a brief summary of all substantive changes made by
            68783     the agency.
            68784         (3) The division may make nonsubstantive changes in the code by:
            68785         (a) adopting a uniform system of punctuation, capitalization, numbering, and wording;
            68786         (b) eliminating duplication;
            68787         (c) correcting defective or inconsistent section and paragraph structure in arrangement
            68788     of the subject matter of rules;
            68789         (d) eliminating all obsolete or redundant words;
            68790         (e) correcting obvious errors and inconsistencies in punctuation, capitalization,
            68791     numbering, referencing, and wording;
            68792         (f) changing a catchline to more accurately reflect the substance of each section, part,
            68793     rule, or title;
            68794         (g) updating or correcting annotations associated with a section, part, rule, or title; and
            68795         (h) merging or determining priority of any amendment, enactment, or repeal to the same
            68796     rule or section made effective by an agency.
            68797         (4) (a) To inform the public about the proposed code reenactment, the division shall

            68798     publish in the bulletin:
            68799         (i) notice of the code reenactment;
            68800         (ii) the date, time, and place of a public hearing where members of the public may
            68801     comment on the proposed reenactment of the code;
            68802         (iii) locations where the proposed reenactment of the code may be reviewed; and
            68803         (iv) agency summaries of substantive changes in the reenacted code.
            68804         (b) To inform the public about substantive changes in agency rules contained in the
            68805     proposed reenactment, each agency shall:
            68806         (i) make the text of their reenacted rules available:
            68807         (A) for public review during regular business hours; and
            68808         (B) in an electronic version; and
            68809         (ii) comply with the requirements of Subsection [ 63-46a-4 ] 63G-3-301 (8).
            68810         (5) The division shall hold a public hearing on the proposed code reenactment no fewer
            68811     than 30 days nor more than 45 days after the publication required by Subsection (4)(a).
            68812         (6) The division shall distribute complete text of the proposed code reenactment
            68813     without charge to:
            68814         (a) state-designated repositories in Utah;
            68815         (b) the Administrative Rules Review Committee; and
            68816         (c) the Office of Legislative Research and General Counsel.
            68817         (7) The former code is repealed and the reenacted code is effective at noon on a date
            68818     designated by the division that is not fewer than 45 days nor more than 90 days after the
            68819     publication date required by this section.
            68820         (8) Repeal and reenactment of the code meets the requirements of Section [ 63-46a-9 ]
            68821      63G-3-305 for a review of all agency rules.
            68822         Section 1368. Section 63G-3-501 , which is renumbered from Section 63-46a-11 is
            68823     renumbered and amended to read:
            68824     
Part 5. Legislative Oversight

            68825          [63-46a-11].     63G-3-501. Administrative Rules Review Committee.

            68826         (1) (a) There is created an Administrative Rules Review Committee of ten permanent
            68827     members and four ex officio members.
            68828         (b) (i) The committee's permanent members shall be composed of five members of the
            68829     Senate, appointed by the president of the Senate, and five members of the House, appointed by
            68830     the speaker of the House, with no more than three senators and three representatives from the
            68831     same political party.
            68832         (ii) The permanent members shall convene at least once each month as a committee to
            68833     review new agency rules, amendments to existing agency rules, and repeals of existing agency
            68834     rules. Meetings may be suspended at the discretion of the committee chairs.
            68835         (iii) Members shall serve for two-year terms or until their successors are appointed.
            68836         (iv) A vacancy exists whenever a committee member ceases to be a member of the
            68837     Legislature, or when a member resigns from the committee. Vacancies shall be filled by the
            68838     appointing authority, and the replacement shall serve out the unexpired term.
            68839         (c) When the committee reviews existing rules, the committee's permanent members
            68840     shall invite the Senate and House chairmen of the standing committee and the Senate and House
            68841     chairmen of the appropriation subcommittee that have jurisdiction over the agency whose
            68842     existing rules are being reviewed to participate as nonvoting, ex officio members with the
            68843     committee.
            68844         (d) Three representatives and three senators from the permanent members are a quorum
            68845     for the transaction of business at any meeting.
            68846         (2) Each agency rule as defined in Section [ 63-46a-2 ] 63G-3-102 shall be submitted to
            68847     the committee at the same time public notice is given under Section [ 63-46a-4 ] 63G-3-301 .
            68848         (3) (a) The committee shall exercise continuous oversight of the process of rulemaking.
            68849         (b) The committee shall examine rules submitted by each agency to determine:
            68850         (i) whether or not they are authorized by statute;
            68851         (ii) whether or not they comply with legislative intent;
            68852         (iii) their impact on the economy and the government operations of the state and local
            68853     political subdivisions; and

            68854         (iv) their impact on affected persons.
            68855         (c) To carry out these duties, the committee may examine any other issues that it
            68856     considers necessary. The committee may also notify and refer rules to the chairmen of the
            68857     interim committee which has jurisdiction over a particular agency when the committee
            68858     determines that an issue involved in an agency's rules may be more appropriately addressed by
            68859     that committee.
            68860         (d) In reviewing the rules, the committee shall follow generally accepted principles of
            68861     statutory construction.
            68862         (4) The committee may request that the Office of the Legislative Fiscal Analyst prepare
            68863     a fiscal note on any rule.
            68864         (5) In order to accomplish its oversight functions, the committee has all the powers
            68865     granted to legislative interim committees as set forth in Section 36-12-11 .
            68866         (6) (a) The committee may prepare written findings of its review of each rule and may
            68867     include any recommendations, including legislative action.
            68868         (b) The committee shall provide to the agency that enacted the rule:
            68869         (i) its findings, if any; and
            68870         (ii) a request that the agency notify the committee of any changes it makes in the rule.
            68871         (c) The committee shall provide its findings to any member of the Legislature and to
            68872     any person affected by the rule who requests the findings.
            68873         (d) The committee shall provide its findings to the presiding officers of both the House
            68874     and the Senate, Senate and House chairs of the standing committee, and the Senate and House
            68875     chairs of the Appropriation Subcommittee that have jurisdiction over the agency whose rules
            68876     are the subject of the findings.
            68877         (7) (a) The committee may submit a report on its review of state agency rules to each
            68878     member of the Legislature at each regular session.
            68879         (b) The report shall include:
            68880         (i) the findings and recommendations made by the committee under Subsection (6);
            68881         (ii) any action taken by an agency in response to committee recommendations; and

            68882         (iii) any recommendations by the committee for legislation.
            68883         Section 1369. Section 63G-3-502 , which is renumbered from Section 63-46a-11.5 is
            68884     renumbered and amended to read:
            68885          [63-46a-11.5].     63G-3-502. Legislative reauthorization of agency rules --
            68886      Extension of rules by governor.
            68887         (1) All grants of rulemaking power from the Legislature to a state agency in any statute
            68888     are made subject to the provisions of this section.
            68889         (2) (a) Except as provided in Subsection (2)(b), every agency rule that is in effect on
            68890     February 28 of any calendar year expires on May 1 of that year unless it has been reauthorized
            68891     by the Legislature.
            68892         (b) Notwithstanding the provisions of Subsection (2)(a), an agency's rules do not expire
            68893     if:
            68894         (i) the rule is explicitly mandated by a federal law or regulation; or
            68895         (ii) a provision of Utah's constitution vests the agency with specific constitutional
            68896     authority to regulate.
            68897         (3) (a) The Administrative Rules Review Committee shall have omnibus legislation
            68898     prepared for consideration by the Legislature during its annual general session.
            68899         (b) The omnibus legislation shall be substantially in the following form: "All rules of
            68900     Utah state agencies are reauthorized except for the following:".
            68901         (c) Before sending the legislation to the governor for [his] the governor's action, the
            68902     Administrative Rules Review Committee may send a letter to the governor and to the agency
            68903     explaining specifically why the committee believes any rule should not be reauthorized.
            68904         (d) For the purpose of this section, the entire rule, a single section, or any complete
            68905     paragraph of a rule may be excepted for reauthorization in the omnibus legislation considered by
            68906     the Legislature.
            68907         (4) The Legislature's reauthorization of a rule by legislation does not constitute
            68908     legislative approval of the rule, nor is it admissible in any proceeding as evidence of legislative
            68909     intent.

            68910         (5) (a) If an agency believes that a rule that has not been reauthorized by the Legislature
            68911     or that will be allowed to expire should continue in full force and effect and is a rule within their
            68912     authorized rulemaking power, the agency may seek the governor's declaration extending the
            68913     rule beyond the expiration date.
            68914         (b) In seeking the extension, the agency shall submit a petition to the governor that
            68915     affirmatively states:
            68916         (i) that the rule is necessary; and
            68917         (ii) a citation to the source of its authority to make the rule.
            68918         (c) (i) If the governor finds that the necessity does exist, and that the agency has the
            68919     authority to make the rule, [he] the governor may declare the rule to be extended by publishing
            68920     that declaration in the Administrative Rules Bulletin on or before April 15 of that year.
            68921         (ii) The declaration shall set forth the rule to be extended, the reasons the extension is
            68922     necessary, and a citation to the source of the agency's authority to make the rule.
            68923         (d) If the omnibus bill required by Subsection (3) fails to pass both houses of the
            68924     Legislature or is found to have a technical legal defect preventing reauthorization of
            68925     administrative rules intended to be reauthorized by the Legislature, the governor may declare all
            68926     rules to be extended by publishing a single declaration in the Administrative Rules Bulletin on or
            68927     before June 15 without meeting requirements of Subsections (5)(b) and (c).
            68928         Section 1370. Section 63G-3-601 , which is renumbered from Section 63-46a-12 is
            68929     renumbered and amended to read:
            68930     
Part 6. Judicial Review

            68931          [63-46a-12].     63G-3-601. Interested parties -- Petition for agency action.
            68932         (1) As used in this section, "initiate rulemaking proceedings" means the filing, for the
            68933     purposes of publication in accordance with Subsection [ 63-46a-4 ] 63G-3-301 (4), of an agency's
            68934     proposed rule to implement a petition for the making, amendment, or repeal of a rule as
            68935     provided in this section.
            68936         (2) An interested person may petition an agency to request the making, amendment, or
            68937     repeal of a rule.

            68938         (3) The division shall prescribe by rule the form for petitions and the procedure for their
            68939     submission, consideration, and disposition.
            68940         (4) A statement shall accompany the proposed rule, or proposed amendment or repeal
            68941     of a rule, demonstrating that the proposed action is within the jurisdiction of the agency and
            68942     appropriate to the powers of the agency.
            68943         (5) Within 60 days after submission of a petition, the agency shall either deny the
            68944     petition in writing, stating its reasons for the denial, or initiate rulemaking proceedings.
            68945         (6) (a) If the petition is submitted to a board that has been granted rulemaking authority
            68946     by the Legislature, the board shall, within 45 days of the submission of the petition, place the
            68947     petition on its agenda for review.
            68948         (b) Within 80 days of the submission of the petition, the board shall either:
            68949         (i) deny the petition in writing stating its reasons for denial; or
            68950         (ii) initiate rulemaking proceedings.
            68951         (7) If the agency or board has not provided the petitioner written notice that the agency
            68952     has denied the petition or initiated rulemaking proceedings within the time limitations specified
            68953     in Subsection (5) or (6) respectively, the petitioner may seek a writ of mandamus in state district
            68954     court.
            68955         Section 1371. Section 63G-3-602 , which is renumbered from Section 63-46a-12.1 is
            68956     renumbered and amended to read:
            68957          [63-46a-12.1].     63G-3-602. Judicial challenge to administrative rules.
            68958         (1) (a) Any person aggrieved by a rule may obtain judicial review of the rule by filing a
            68959     complaint with the county clerk in the district court where the person resides or in the district
            68960     court in Salt Lake County.
            68961         (b) Any person aggrieved by an agency's failure to comply with Section [ 63-46a-3 ]
            68962      63G-3-201 may obtain judicial review of the agency's failure to comply by filing a complaint
            68963     with the clerk of the district court where the person resides or in the district court in Salt Lake
            68964     County.
            68965         (2) (a) Except as provided in Subsection (2)(b), a person seeking judicial review under

            68966     this section shall exhaust that person's administrative remedies by complying with the
            68967     requirements of Section [ 63-46a-12 ] 63G-3-601 before filing the complaint.
            68968         (b) When seeking judicial review of a rule, the person need not exhaust that person's
            68969     administrative remedies if:
            68970         (i) less than six months has passed since the date that the rule became effective and the
            68971     person had submitted verbal or written comments on the rule to the agency during the public
            68972     comment period;
            68973         (ii) a statute granting rulemaking authority expressly exempts rules made under
            68974     authority of that statute from compliance with Section [ 63-46a-12 ] 63G-3-601 ; or
            68975         (iii) compliance with Section [ 63-46a-12 ] 63G-3-601 would cause the person
            68976     irreparable harm.
            68977         (3) (a) In addition to the information required by the Utah Rules of Civil Procedure, a
            68978     complaint filed under this section shall contain:
            68979         (i) the name and mailing address of the plaintiff;
            68980         (ii) the name and mailing address of the defendant agency;
            68981         (iii) the name and mailing address of any other party joined in the action as a defendant;
            68982         (iv) the text of the rule or proposed rule, if any;
            68983         (v) an allegation that the person filing the complaint has either exhausted the
            68984     administrative remedies by complying with Section [ 63-46a-12 ] 63G-3-601 or met the
            68985     requirements for waiver of exhaustion of administrative remedies established by Subsection
            68986     (2)(b);
            68987         (vi) the relief sought; and
            68988         (vii) factual and legal allegations supporting the relief sought.
            68989         (b) (i) The plaintiff shall serve a summons and a copy of the complaint as required by
            68990     the Utah Rules of Civil Procedure.
            68991         (ii) The defendants shall file a responsive pleading as required by the Utah Rules of Civil
            68992     Procedures.
            68993         (iii) The agency shall file the administrative record of the rule, if any, with its responsive

            68994     pleading.
            68995         (4) The district court may grant relief to the petitioner by:
            68996         (a) declaring the rule invalid, if the court finds that:
            68997         (i) the rule violates constitutional or statutory law or the agency does not have legal
            68998     authority to make the rule;
            68999         (ii) the rule is not supported by substantial evidence when viewed in light of the whole
            69000     administrative record; or
            69001         (iii) the agency did not follow proper rulemaking procedure;
            69002         (b) declaring the rule nonapplicable to the petitioner;
            69003         (c) remanding the matter to the agency for compliance with proper rulemaking
            69004     procedures or further fact-finding;
            69005         (d) ordering the agency to comply with Section [ 63-46a-3 ] 63G-3-201 ;
            69006         (e) issuing a judicial stay or injunction to enjoin the agency from illegal action or action
            69007     that would cause irreparable harm to the petitioner; or
            69008         (f) any combination of Subsections (4)(a) through (e).
            69009         (5) If the plaintiff meets the requirements of Subsection (2)(b), the district court may
            69010     review and act on a complaint under this section whether or not the plaintiff has requested the
            69011     agency review under Section [ 63-46a-12 ] 63G-3-601 .
            69012         Section 1372. Section 63G-3-603 , which is renumbered from Section 63-46a-14 is
            69013     renumbered and amended to read:
            69014          [63-46a-14].     63G-3-603. Time for contesting a rule -- Statute of
            69015      limitations.
            69016         (1) A proceeding to contest any rule on the ground of noncompliance with the
            69017     procedural requirements of this chapter shall commence within two years of the effective date of
            69018     the rule.
            69019         (2) A proceeding to contest any rule on the ground of not being supported by
            69020     substantial evidence when viewed in light of the whole administrative record shall commence
            69021     within four years of the effective date of the challenged action.

            69022         (3) A proceeding to contest any rule on the basis that a change to the rule made under
            69023     Subsection [ 63-46a-10 ] 63G-3-402 (2) or (3) substantively changed the rule shall be commenced
            69024     within two years of the date the change was made.
            69025         Section 1373. Section 63G-3-701 , which is renumbered from Section 63-46a-16 is
            69026     renumbered and amended to read:
            69027     
Part 7. Official Compilation of Administrative Rules

            69028          [63-46a-16].     63G-3-701. Utah Administrative Code as official compilation
            69029      of rules -- Judicial notice.
            69030         The code shall be received by all the judges, public officers, commissions, and
            69031     departments of the state government as evidence of the administrative law of the state of Utah
            69032     and as an authorized compilation of the administrative law of Utah. All courts shall take judicial
            69033     notice of the code and its provisions.
            69034         Section 1374. Section 63G-3-702 , which is renumbered from Section 63-46a-9.6 is
            69035     renumbered and amended to read:
            69036          [63-46a-9.6].     63G-3-702. Utah Administrative Code -- Organization --
            69037      Official compilation.
            69038         (1) The Utah Administrative Code shall be divided into three parts:
            69039         (a) titles, whose number shall begin with "R";
            69040         (b) rules; and
            69041         (c) sections.
            69042         (2) All sections contained in the code are referenced by a three-part number indicating
            69043     its location in the code.
            69044         (3) The division shall maintain the official compilation of the code and is the
            69045     state-designated repository for administrative rules. If a dispute arises in which there is more
            69046     than one version of a rule, the latest effective version on file with the division is considered the
            69047     correct, current version.
            69048         Section 1375. Section 63G-4-101 , which is renumbered from Section 63-46b-0.5 is
            69049     renumbered and amended to read:

            69050     
CHAPTER 4. ADMINISTRATIVE PROCEDURES ACT

            69051     
Part 1. General Provisions

            69052          [63-46b-0.5].     63G-4-101. Title.
            69053         This [act] chapter is known as the "Administrative Procedures Act."
            69054         Section 1376. Section 63G-4-102 , which is renumbered from Section 63-46b-1 is
            69055     renumbered and amended to read:
            69056          [63-46b-1].     63G-4-102. Scope and applicability of chapter.
            69057         (1) Except as set forth in Subsection (2), and except as otherwise provided by a statute
            69058     superseding provisions of this chapter by explicit reference to this chapter, the provisions of this
            69059     chapter apply to every agency of the state and govern:
            69060         (a) state agency action that determines the legal rights, duties, privileges, immunities, or
            69061     other legal interests of an identifiable person, including agency action to grant, deny, revoke,
            69062     suspend, modify, annul, withdraw, or amend an authority, right, or license; and
            69063         (b) judicial review of the action.
            69064         (2) This chapter does not govern:
            69065         (a) the procedure for making agency rules, or judicial review of the procedure or rules;
            69066         (b) the issuance of a notice of a deficiency in the payment of a tax, the decision to waive
            69067     a penalty or interest on taxes, the imposition of and penalty or interest on taxes, or the issuance
            69068     of a tax assessment, except that this chapter governs an agency action commenced by a taxpayer
            69069     or by another person authorized by law to contest the validity or correctness of the action;
            69070         (c) state agency action relating to extradition, to the granting of a pardon or parole, a
            69071     commutation or termination of a sentence, or to the rescission, termination, or revocation of
            69072     parole or probation, to the discipline of, resolution of a grievance of, supervision of,
            69073     confinement of, or the treatment of an inmate or resident of a correctional facility, the Utah
            69074     State Hospital, the Utah State Developmental Center, or a person in the custody or jurisdiction
            69075     of the Division of Substance Abuse and Mental Health, or a person on probation or parole, or
            69076     judicial review of the action;
            69077         (d) state agency action to evaluate, discipline, employ, transfer, reassign, or promote a

            69078     student or teacher in a school or educational institution, or judicial review of the action;
            69079         (e) an application for employment and internal personnel action within an agency
            69080     concerning its own employees, or judicial review of the action;
            69081         (f) the issuance of a citation or assessment under Title 34A, Chapter 6, Utah
            69082     Occupational Safety and Health Act, and Title 58, Chapter 3a, Architects Licensing Act,
            69083     Chapter 11a, Cosmetologist/Barber, Esthetician, Electrologist, and Nail Technician Licensing
            69084     Act, Chapter 17b, Pharmacy Practice Act, Chapter 22, Professional Engineers and Professional
            69085     Land Surveyors Licensing Act, Chapter 53, Landscape Architects Licensing Act, Chapter 55,
            69086     Utah Construction Trades Licensing Act, Chapter 63, Security Personnel Licensing Act, and
            69087     Chapter 76, Professional Geologist Licensing Act, except that this chapter governs an agency
            69088     action commenced by the employer, licensee, or other person authorized by law to contest the
            69089     validity or correctness of the citation or assessment;
            69090         (g) state agency action relating to management of state funds, the management and
            69091     disposal of school and institutional trust land assets, and contracts for the purchase or sale of
            69092     products, real property, supplies, goods, or services by or for the state, or by or for an agency
            69093     of the state, except as provided in those contracts, or judicial review of the action;
            69094         (h) state agency action under Title 7, Chapter 1, Article 3, Powers and Duties of
            69095     Commissioner of Financial Institutions, Title 7, Chapter 2, Possession of Depository Institution
            69096     by Commissioner, Title 7, Chapter 19, Acquisition of Failing Depository Institutions or Holding
            69097     Companies, and [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of
            69098     Utah, or judicial review of the action;
            69099         (i) the initial determination of a person's eligibility for unemployment benefits, the initial
            69100     determination of a person's eligibility for benefits under Title 34A, Chapter 2, Workers'
            69101     Compensation Act, and Title 34A, Chapter 3, Utah Occupational Disease Act, or the initial
            69102     determination of a person's unemployment tax liability;
            69103         (j) state agency action relating to the distribution or award of a monetary grant to or
            69104     between governmental units, or for research, development, or the arts, or judicial review of the
            69105     action;

            69106         (k) the issuance of a notice of violation or order under Title 26, Chapter 8a, Utah
            69107     Emergency Medical Services System Act, Title 19, Chapter 2, Air Conservation Act, Title 19,
            69108     Chapter 3, Radiation Control Act, Title 19, Chapter 4, Safe Drinking Water Act, Title 19,
            69109     Chapter 5, Water Quality Act, Title 19, Chapter 6, Part 1, Solid and Hazardous Waste Act,
            69110     Title 19, Chapter 6, Part 4, Underground Storage Tank Act, or Title 19, Chapter 6, Part 7,
            69111     Used Oil Management Act, or Title 19, Chapter 6, Part 10, Mercury Switch Removal Act,
            69112     except that this chapter governs an agency action commenced by a person authorized by law to
            69113     contest the validity or correctness of the notice or order;
            69114         (l) state agency action, to the extent required by federal statute or regulation, to be
            69115     conducted according to federal procedures;
            69116         (m) the initial determination of a person's eligibility for government or public assistance
            69117     benefits;
            69118         (n) state agency action relating to wildlife licenses, permits, tags, and certificates of
            69119     registration;
            69120         (o) a license for use of state recreational facilities;
            69121         (p) state agency action under [Title 63, Chapter 2] Title 63G, Chapter 2, Government
            69122     Records Access and Management Act, except as provided in Section [ 63-2-603 ] 63G-2-603 ;
            69123         (q) state agency action relating to the collection of water commissioner fees and
            69124     delinquency penalties, or judicial review of the action;
            69125         (r) state agency action relating to the installation, maintenance, and repair of headgates,
            69126     caps, values, or other water controlling works and weirs, flumes, meters, or other water
            69127     measuring devices, or judicial review of the action;
            69128         (s) the issuance and enforcement of an initial order under Section 73-2-25 ;
            69129         (t) (i) a hearing conducted by the Division of Securities under Section 61-1-11.1 ; and
            69130         (ii) an action taken by the Division of Securities pursuant to a hearing conducted under
            69131     Section 61-1-11.1 , including a determination regarding the fairness of an issuance or exchange
            69132     of securities described in Subsection 61-1-11.1 (1); and
            69133         (u) state agency action relating to water well driller licenses, water well drilling permits,

            69134     water well driller registration, or water well drilling construction standards, or judicial review of
            69135     the action.
            69136         (3) This chapter does not affect a legal remedy otherwise available to:
            69137         (a) compel an agency to take action; or
            69138         (b) challenge an agency's rule.
            69139         (4) This chapter does not preclude an agency, prior to the beginning of an adjudicative
            69140     proceeding, or the presiding officer during an adjudicative proceeding from:
            69141         (a) requesting or ordering a conference with parties and interested persons to:
            69142         (i) encourage settlement;
            69143         (ii) clarify the issues;
            69144         (iii) simplify the evidence;
            69145         (iv) facilitate discovery; or
            69146         (v) expedite the proceeding; or
            69147         (b) granting a timely motion to dismiss or for summary judgment if the requirements of
            69148     Rule 12(b) or Rule 56 of the Utah Rules of Civil Procedure are met by the moving party, except
            69149     to the extent that the requirements of those rules are modified by this chapter.
            69150         (5) (a) A declaratory proceeding authorized by Section [ 63-46b-21 ] 63G-4-503 is not
            69151     governed by this chapter, except as explicitly provided in that section.
            69152         (b) Judicial review of a declaratory proceeding authorized by Section [ 63-46b-21 ]
            69153      63G-4-503 is governed by this chapter.
            69154         (6) This chapter does not preclude an agency from enacting a rule affecting or
            69155     governing an adjudicative proceeding or from following the rule, if the rule is enacted according
            69156     to the procedures outlined in [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
            69157     Rulemaking Act, and if the rule conforms to the requirements of this chapter.
            69158         (7) (a) If the attorney general issues a written determination that a provision of this
            69159     chapter would result in the denial of funds or services to an agency of the state from the federal
            69160     government, the applicability of the provision to that agency shall be suspended to the extent
            69161     necessary to prevent the denial.

            69162         (b) The attorney general shall report the suspension to the Legislature at its next
            69163     session.
            69164         (8) Nothing in this chapter may be interpreted to provide an independent basis for
            69165     jurisdiction to review final agency action.
            69166         (9) Nothing in this chapter may be interpreted to restrict a presiding officer, for good
            69167     cause shown, from lengthening or shortening a time period prescribed in this chapter, except the
            69168     time period established for judicial review.
            69169         Section 1377. Section 63G-4-103 , which is renumbered from Section 63-46b-2 is
            69170     renumbered and amended to read:
            69171          [63-46b-2].     63G-4-103. Definitions.
            69172         (1) As used in this chapter:
            69173         (a) "Adjudicative proceeding" means an agency action or proceeding described in
            69174     Section [ 63-46b-1 ] 63G-4-102 .
            69175         (b) "Agency" means a board, commission, department, division, officer, council, office,
            69176     committee, bureau, or other administrative unit of this state, including the agency head, agency
            69177     employees, or other persons acting on behalf of or under the authority of the agency head, but
            69178     does not mean the Legislature, the courts, the governor, any political subdivision of the state, or
            69179     any administrative unit of a political subdivision of the state.
            69180         (c) "Agency head" means an individual or body of individuals in whom the ultimate
            69181     legal authority of the agency is vested by statute.
            69182         (d) "Declaratory proceeding" means a proceeding authorized and governed by Section
            69183     [ 63-46b-21 ] 63G-4-503 .
            69184         (e) "License" means a franchise, permit, certification, approval, registration, charter, or
            69185     similar form of authorization required by statute.
            69186         (f) "Party" means the agency or other person commencing an adjudicative proceeding,
            69187     all respondents, all persons permitted by the presiding officer to intervene in the proceeding, and
            69188     all persons authorized by statute or agency rule to participate as parties in an adjudicative
            69189     proceeding.

            69190         (g) "Person" means an individual, group of individuals, partnership, corporation,
            69191     association, political subdivision or its units, governmental subdivision or its units, public or
            69192     private organization or entity of any character, or another agency.
            69193         (h) (i) "Presiding officer" means an agency head, or an individual or body of individuals
            69194     designated by the agency head, by the agency's rules, or by statute to conduct an adjudicative
            69195     proceeding.
            69196         (ii) If fairness to the parties is not compromised, an agency may substitute one presiding
            69197     officer for another during any proceeding.
            69198         (iii) A person who acts as a presiding officer at one phase of a proceeding need not
            69199     continue as presiding officer through all phases of a proceeding.
            69200         (i) "Respondent" means a person against whom an adjudicative proceeding is initiated,
            69201     whether by an agency or any other person.
            69202         (j) "Superior agency" means an agency required or authorized by law to review the
            69203     orders of another agency.
            69204         (2) This section does not prohibit an agency from designating by rule the names or titles
            69205     of the agency head or the presiding officers with responsibility for adjudicative proceedings
            69206     before the agency.
            69207         Section 1378. Section 63G-4-104 , which is renumbered from Section 63-46b-2.1 is
            69208     renumbered and amended to read:
            69209          [63-46b-2.1].     63G-4-104. Bases for certain recommendations and decisions
            69210      limited.
            69211         (1) Except as provided in Subsection (2), no agency may recommend or rule on the
            69212     custody, placement, including foster placement, or other disposition alternative for a minor, or
            69213     the termination of parental rights, based on the fact that a parent or guardian of the minor
            69214     lawfully does one or more of the following:
            69215         (a) legally possesses or uses a firearm or other weapon;
            69216         (b) espouses particular religious beliefs; or
            69217         (c) schools the minor or other minors outside the public education system or is

            69218     otherwise sympathetic to schooling a minor outside the public education system.
            69219         (2) Subsection (1) does not prohibit a recommendation or ruling based on the
            69220     compatibility of a minor with a particular custody, placement, or other disposition alternative as
            69221     determined by the presence of any of the factors in Subsections (1)(a) through (1)(c).
            69222         Section 1379. Section 63G-4-105 , which is renumbered from Section 63-46b-22 is
            69223     renumbered and amended to read:
            69224          [63-46b-22].     63G-4-105. Transition procedures.
            69225         (1) The procedures for agency action, agency review, and judicial review contained in
            69226     this chapter are applicable to all agency adjudicative proceedings commenced by or before an
            69227     agency on or after January 1, 1988.
            69228         (2) Statutes and rules governing agency action, agency review, and judicial review that
            69229     are in effect on December 31, 1987, govern all agency adjudicative proceedings commenced by
            69230     or before an agency on or before December 31, 1987, even if those proceedings are still pending
            69231     before an agency or a court on January 1, 1988.
            69232         Section 1380. Section 63G-4-201 , which is renumbered from Section 63-46b-3 is
            69233     renumbered and amended to read:
            69234     
Part 2. Adjudicative Proceedings

            69235          [63-46b-3].     63G-4-201. Commencement of adjudicative proceedings.
            69236         (1) Except as otherwise permitted by Section [ 63-46b-20 ] 63G-4-502 , all adjudicative
            69237     proceedings shall be commenced by either:
            69238         (a) a notice of agency action, if proceedings are commenced by the agency; or
            69239         (b) a request for agency action, if proceedings are commenced by persons other than
            69240     the agency.
            69241         (2) A notice of agency action shall be filed and served according to the following
            69242     requirements:
            69243         (a) The notice of agency action shall be in writing, signed by a presiding officer, and
            69244     shall include:
            69245         (i) the names and mailing addresses of all persons to whom notice is being given by the

            69246     presiding officer, and the name, title, and mailing address of any attorney or employee who has
            69247     been designated to appear for the agency;
            69248         (ii) the agency's file number or other reference number;
            69249         (iii) the name of the adjudicative proceeding;
            69250         (iv) the date that the notice of agency action was mailed;
            69251         (v) a statement of whether the adjudicative proceeding is to be conducted informally
            69252     according to the provisions of rules adopted under Sections [ 63-46b-4 ] 63G-4-202 and
            69253     [ 63-46b-5 ] 63G-4-203 , or formally according to the provisions of Sections [ 63-46b-6 ]
            69254      63G-4-204 through [ 63-46b-11 ] 63G-4-209 ;
            69255         (vi) if the adjudicative proceeding is to be formal, a statement that each respondent
            69256     must file a written response within 30 days of the mailing date of the notice of agency action;
            69257         (vii) if the adjudicative proceeding is to be formal, or if a hearing is required by statute
            69258     or rule, a statement of the time and place of any scheduled hearing, a statement of the purpose
            69259     for which the hearing is to be held, and a statement that a party who fails to attend or participate
            69260     in the hearing may be held in default;
            69261         (viii) if the adjudicative proceeding is to be informal and a hearing is required by statute
            69262     or rule, or if a hearing is permitted by rule and may be requested by a party within the time
            69263     prescribed by rule, a statement that the parties may request a hearing within the time provided
            69264     by the agency's rules;
            69265         (ix) a statement of the legal authority and jurisdiction under which the adjudicative
            69266     proceeding is to be maintained;
            69267         (x) the name, title, mailing address, and telephone number of the presiding officer; and
            69268         (xi) a statement of the purpose of the adjudicative proceeding and, to the extent known
            69269     by the presiding officer, the questions to be decided.
            69270         (b) When adjudicative proceedings are commenced by the agency, the agency shall:
            69271         (i) mail the notice of agency action to each party;
            69272         (ii) publish the notice of agency action, if required by statute; and
            69273         (iii) mail the notice of agency action to any other person who has a right to notice under

            69274     statute or rule.
            69275         (3) (a) Where the law applicable to the agency permits persons other than the agency to
            69276     initiate adjudicative proceedings, that person's request for agency action shall be in writing and
            69277     signed by the person invoking the jurisdiction of the agency, or by that person's representative,
            69278     and shall include:
            69279         (i) the names and addresses of all persons to whom a copy of the request for agency
            69280     action is being sent;
            69281         (ii) the agency's file number or other reference number, if known;
            69282         (iii) the date that the request for agency action was mailed;
            69283         (iv) a statement of the legal authority and jurisdiction under which agency action is
            69284     requested;
            69285         (v) a statement of the relief or action sought from the agency; and
            69286         (vi) a statement of the facts and reasons forming the basis for relief or agency action.
            69287         (b) The person requesting agency action shall file the request with the agency and shall
            69288     mail a copy to each person known to have a direct interest in the requested agency action.
            69289         (c) An agency may, by rule, prescribe one or more forms eliciting the information
            69290     required by Subsection (3)(a) to serve as the request for agency action when completed and
            69291     filed by the person requesting agency action.
            69292         (d) The presiding officer shall promptly review a request for agency action and shall:
            69293         (i) notify the requesting party in writing that the request is granted and that the
            69294     adjudicative proceeding is completed;
            69295         (ii) notify the requesting party in writing that the request is denied and, if the
            69296     proceeding is a formal adjudicative proceeding, that the party may request a hearing before the
            69297     agency to challenge the denial; or
            69298         (iii) notify the requesting party that further proceedings are required to determine the
            69299     agency's response to the request.
            69300         (e) (i) Any notice required by Subsection (3)(d)(ii) shall contain the information
            69301     required by Subsection [ 63-46b-5 ] 63G-4-203 (1)(i) in addition to disclosure required by

            69302     Subsection (3)(d)(ii).
            69303         (ii) The agency shall mail any notice required by Subsection (3)(d) to all parties, except
            69304     that any notice required by Subsection (3)(d)(iii) may be published when publication is required
            69305     by statute.
            69306         (iii) The notice required by Subsection (3)(d)(iii) shall:
            69307         (A) give the agency's file number or other reference number;
            69308         (B) give the name of the proceeding;
            69309         (C) designate whether the proceeding is one of a category to be conducted informally
            69310     according to the provisions of rules enacted under Sections [ 63-46b-4 ] 63G-4-202 and
            69311     [ 63-46b-5 ] 63G-4-203 , with citation to the applicable rule authorizing that designation, or
            69312     formally according to Sections [ 63-46b-6 ] 63G-4-204 through [ 63-46b-11 ] 63G-4-209 ;
            69313         (D) in the case of a formal adjudicative proceeding, and where respondent parties are
            69314     known, state that a written response must be filed within 30 days of the date of the agency's
            69315     notice if mailed, or within 30 days of the last publication date of the agency's notice, if
            69316     published;
            69317         (E) if the adjudicative proceeding is to be formal, or if a hearing is to be held in an
            69318     informal adjudicative proceeding, state the time and place of any scheduled hearing, the purpose
            69319     for which the hearing is to be held, and that a party who fails to attend or participate in a
            69320     scheduled and noticed hearing may be held in default;
            69321         (F) if the adjudicative proceeding is to be informal, and a hearing is required by statute
            69322     or rule, or if a hearing is permitted by rule and may be requested by a party within the time
            69323     prescribed by rule, state the parties' right to request a hearing and the time within which a
            69324     hearing may be requested under the agency's rules; and
            69325         (G) give the name, title, mailing address, and telephone number of the presiding officer.
            69326         (4) When initial agency determinations or actions are not governed by this chapter, but
            69327     agency and judicial review of those initial determinations or actions are subject to the provisions
            69328     of this chapter, the request for agency action seeking review must be filed with the agency
            69329     within the time prescribed by the agency's rules.

            69330         (5) For designated classes of adjudicative proceedings, an agency may, by rule, provide
            69331     for a longer response time than allowed by this section, and may provide for a shorter response
            69332     time if required or permitted by applicable federal law.
            69333         (6) Unless the agency provides otherwise by rule or order, an application for a package
            69334     agency, license, permit, or certificate of approval filed under authority of Title 32A, Alcoholic
            69335     Beverage Control Act, is not considered to be a request for agency action under this chapter.
            69336         (7) If the purpose of the adjudicative proceeding is to award a license or other privilege
            69337     as to which there are multiple competing applicants, the agency may, by rule or order, conduct a
            69338     single adjudicative proceeding to determine the award of that license or privilege.
            69339         Section 1381. Section 63G-4-202 , which is renumbered from Section 63-46b-4 is
            69340     renumbered and amended to read:
            69341          [63-46b-4].     63G-4-202. Designation of adjudicative proceedings as informal --
            69342      Standards -- Undesignated proceedings formal.
            69343         (1) The agency may, by rule, designate categories of adjudicative proceedings to be
            69344     conducted informally according to the procedures set forth in rules enacted under the authority
            69345     of this chapter if:
            69346         (a) the use of the informal procedures does not violate any procedural requirement
            69347     imposed by a statute other than this chapter;
            69348         (b) in the view of the agency, the rights of the parties to the proceedings will be
            69349     reasonably protected by the informal procedures;
            69350         (c) in the view of the agency, the agency's administrative efficiency will be enhanced by
            69351     categorizations; and
            69352         (d) the cost of formal adjudicative proceedings outweighs the potential benefits to the
            69353     public of a formal adjudicative proceeding.
            69354         (2) Subject to the provisions of Subsection (3), all agency adjudicative proceedings not
            69355     specifically designated as informal proceedings by the agency's rules shall be conducted formally
            69356     in accordance with the requirements of this chapter.
            69357         (3) Any time before a final order is issued in any adjudicative proceeding, the presiding

            69358     officer may convert a formal adjudicative proceeding to an informal adjudicative proceeding, or
            69359     an informal adjudicative proceeding to a formal adjudicative proceeding if:
            69360         (a) conversion of the proceeding is in the public interest; and
            69361         (b) conversion of the proceeding does not unfairly prejudice the rights of any party.
            69362         Section 1382. Section 63G-4-203 , which is renumbered from Section 63-46b-5 is
            69363     renumbered and amended to read:
            69364          [63-46b-5].     63G-4-203. Procedures for informal adjudicative proceedings.
            69365         (1) If an agency enacts rules designating one or more categories of adjudicative
            69366     proceedings as informal adjudicative proceedings, the agency shall, by rule, prescribe
            69367     procedures for informal adjudicative proceedings that include the following:
            69368         (a) Unless the agency by rule provides for and requires a response, no answer or other
            69369     pleading responsive to the allegations contained in the notice of agency action or the request for
            69370     agency action need be filed.
            69371         (b) The agency shall hold a hearing if a hearing is required by statute or rule, or if a
            69372     hearing is permitted by rule and is requested by a party within the time prescribed by rule.
            69373         (c) In any hearing, the parties named in the notice of agency action or in the request for
            69374     agency action shall be permitted to testify, present evidence, and comment on the issues.
            69375         (d) Hearings will be held only after timely notice to all parties.
            69376         (e) Discovery is prohibited, but the agency may issue subpoenas or other orders to
            69377     compel production of necessary evidence.
            69378         (f) All parties shall have access to information contained in the agency's files and to all
            69379     materials and information gathered in any investigation, to the extent permitted by law.
            69380         (g) Intervention is prohibited, except that the agency may enact rules permitting
            69381     intervention where a federal statute or rule requires that a state permit intervention.
            69382         (h) All hearings shall be open to all parties.
            69383         (i) Within a reasonable time after the close of an informal adjudicative proceeding, the
            69384     presiding officer shall issue a signed order in writing that states the following:
            69385         (i) the decision;

            69386         (ii) the reasons for the decision;
            69387         (iii) a notice of any right of administrative or judicial review available to the parties; and
            69388         (iv) the time limits for filing an appeal or requesting a review.
            69389         (j) The presiding officer's order shall be based on the facts appearing in the agency's
            69390     files and on the facts presented in evidence at any hearings.
            69391         (k) A copy of the presiding officer's order shall be promptly mailed to each of the
            69392     parties.
            69393         (2) (a) The agency may record any hearing.
            69394         (b) Any party, at [his] the party's own expense, may have a reporter approved by the
            69395     agency prepare a transcript from the agency's record of the hearing.
            69396         (3) Nothing in this section restricts or precludes any investigative right or power given
            69397     to an agency by another statute.
            69398         Section 1383. Section 63G-4-204 , which is renumbered from Section 63-46b-6 is
            69399     renumbered and amended to read:
            69400          [63-46b-6].     63G-4-204. Procedures for formal adjudicative proceedings --
            69401      Responsive pleadings.
            69402         (1) In all formal adjudicative proceedings, unless modified by rule according to
            69403     Subsection [ 63-46b-3 ] 63G-4-201 (5), the respondent, if any, shall file and serve a written
            69404     response signed by the respondent or the respondent's representative within 30 days of the
            69405     mailing date or last date of publication of the notice of agency action or the notice under
            69406     Subsection [ 63-46b-3 ] 63G-4-201 (3)(d), which shall include:
            69407         (a) the agency's file number or other reference number;
            69408         (b) the name of the adjudicative proceeding;
            69409         (c) a statement of the relief that the respondent seeks;
            69410         (d) a statement of the facts; and
            69411         (e) a statement summarizing the reasons that the relief requested should be granted.
            69412         (2) The respondent shall send a copy of the response filed under Subsection (1) to each
            69413     party.

            69414         (3) The presiding officer, or the agency by rule, may permit or require pleadings in
            69415     addition to the notice of agency action, the request for agency action, and the response. All
            69416     documents permitted or required to be filed shall be filed with the agency and one copy shall be
            69417     sent to each party.
            69418         Section 1384. Section 63G-4-205 , which is renumbered from Section 63-46b-7 is
            69419     renumbered and amended to read:
            69420          [63-46b-7].     63G-4-205. Procedures for formal adjudicative proceedings --
            69421      Discovery and subpoenas.
            69422         (1) In formal adjudicative proceedings, the agency may, by rule, prescribe means of
            69423     discovery adequate to permit the parties to obtain all relevant information necessary to support
            69424     their claims or defenses. If the agency does not enact rules under this section, the parties may
            69425     conduct discovery according to the Utah Rules of Civil Procedure.
            69426         (2) Subpoenas and other orders to secure the attendance of witnesses or the production
            69427     of evidence in formal adjudicative proceedings shall be issued by the presiding officer when
            69428     requested by any party, or may be issued by the presiding officer on [his] the presiding officer's
            69429     own motion.
            69430         (3) Nothing in this section restricts or precludes any investigative right or power given
            69431     to an agency by another statute.
            69432         Section 1385. Section 63G-4-206 , which is renumbered from Section 63-46b-8 is
            69433     renumbered and amended to read:
            69434          [63-46b-8].     63G-4-206. Procedures for formal adjudicative proceedings --
            69435      Hearing procedure.
            69436         (1) Except as provided in Subsections [ 63-46b-3 ] 63G-4-201 (3)(d)(i) and (ii), in all
            69437     formal adjudicative proceedings, a hearing shall be conducted as follows:
            69438         (a) The presiding officer shall regulate the course of the hearing to obtain full disclosure
            69439     of relevant facts and to afford all the parties reasonable opportunity to present their positions.
            69440         (b) On [his] the presiding officer's own motion or upon objection by a party, the
            69441     presiding officer:

            69442         (i) may exclude evidence that is irrelevant, immaterial, or unduly repetitious;
            69443         (ii) shall exclude evidence privileged in the courts of Utah;
            69444         (iii) may receive documentary evidence in the form of a copy or excerpt if the copy or
            69445     excerpt contains all pertinent portions of the original document; and
            69446         (iv) may take official notice of any facts that could be judicially noticed under the Utah
            69447     Rules of Evidence, of the record of other proceedings before the agency, and of technical or
            69448     scientific facts within the agency's specialized knowledge.
            69449         (c) The presiding officer may not exclude evidence solely because it is hearsay.
            69450         (d) The presiding officer shall afford to all parties the opportunity to present evidence,
            69451     argue, respond, conduct cross-examination, and submit rebuttal evidence.
            69452         (e) The presiding officer may give persons not a party to the adjudicative proceeding
            69453     the opportunity to present oral or written statements at the hearing.
            69454         (f) All testimony presented at the hearing, if offered as evidence to be considered in
            69455     reaching a decision on the merits, shall be given under oath.
            69456         (g) The hearing shall be recorded at the agency's expense.
            69457         (h) Any party, at [his] the party's own expense, may have a person approved by the
            69458     agency prepare a transcript of the hearing, subject to any restrictions that the agency is
            69459     permitted by statute to impose to protect confidential information disclosed at the hearing.
            69460         (i) All hearings shall be open to all parties.
            69461         (2) This section does not preclude the presiding officer from taking appropriate
            69462     measures necessary to preserve the integrity of the hearing.
            69463         Section 1386. Section 63G-4-207 , which is renumbered from Section 63-46b-9 is
            69464     renumbered and amended to read:
            69465          [63-46b-9].     63G-4-207. Procedures for formal adjudicative proceedings --
            69466      Intervention.
            69467         (1) Any person not a party may file a signed, written petition to intervene in a formal
            69468     adjudicative proceeding with the agency. The person who wishes to intervene shall mail a copy
            69469     of the petition to each party. The petition shall include:

            69470         (a) the agency's file number or other reference number;
            69471         (b) the name of the proceeding;
            69472         (c) a statement of facts demonstrating that the petitioner's legal rights or interests are
            69473     substantially affected by the formal adjudicative proceeding, or that the petitioner qualifies as an
            69474     intervenor under any provision of law; and
            69475         (d) a statement of the relief that the petitioner seeks from the agency.
            69476         (2) The presiding officer shall grant a petition for intervention if the presiding officer
            69477     determines that:
            69478         (a) the petitioner's legal interests may be substantially affected by the formal
            69479     adjudicative proceeding; and
            69480         (b) the interests of justice and the orderly and prompt conduct of the adjudicative
            69481     proceedings will not be materially impaired by allowing the intervention.
            69482         (3) (a) Any order granting or denying a petition to intervene shall be in writing and
            69483     mailed to the petitioner and each party.
            69484         (b) An order permitting intervention may impose conditions on the intervenor's
            69485     participation in the adjudicative proceeding that are necessary for a just, orderly, and prompt
            69486     conduct of the adjudicative proceeding.
            69487         (c) The presiding officer may impose the conditions at any time after the intervention.
            69488         Section 1387. Section 63G-4-208 , which is renumbered from Section 63-46b-10 is
            69489     renumbered and amended to read:
            69490          [63-46b-10].     63G-4-208. Procedures for formal adjudicative proceedings
            69491      -- Orders.
            69492         In formal adjudicative proceedings:
            69493         (1) Within a reasonable time after the hearing, or after the filing of any posthearing
            69494     documents permitted by the presiding officer, or within the time required by any applicable
            69495     statute or rule of the agency, the presiding officer shall sign and issue an order that includes:
            69496         (a) a statement of the presiding officer's findings of fact based exclusively on the
            69497     evidence of record in the adjudicative proceedings or on facts officially noted;

            69498         (b) a statement of the presiding officer's conclusions of law;
            69499         (c) a statement of the reasons for the presiding officer's decision;
            69500         (d) a statement of any relief ordered by the agency;
            69501         (e) a notice of the right to apply for reconsideration;
            69502         (f) a notice of any right to administrative or judicial review of the order available to
            69503     aggrieved parties; and
            69504         (g) the time limits applicable to any reconsideration or review.
            69505         (2) The presiding officer may use the presiding officer's experience, technical
            69506     competence, and specialized knowledge to evaluate the evidence.
            69507         (3) A finding of fact that was contested may not be based solely on hearsay evidence
            69508     unless that evidence is admissible under the Utah Rules of Evidence.
            69509         (4) This section does not preclude the presiding officer from issuing interim orders to:
            69510         (a) notify the parties of further hearings;
            69511         (b) notify the parties of provisional rulings on a portion of the issues presented; or
            69512         (c) otherwise provide for the fair and efficient conduct of the adjudicative proceeding.
            69513         Section 1388. Section 63G-4-209 , which is renumbered from Section 63-46b-11 is
            69514     renumbered and amended to read:
            69515          [63-46b-11].     63G-4-209. Default.
            69516         (1) The presiding officer may enter an order of default against a party if:
            69517         (a) a party in an informal adjudicative proceeding fails to participate in the adjudicative
            69518     proceeding;
            69519         (b) a party to a formal adjudicative proceeding fails to attend or participate in a properly
            69520     scheduled hearing after receiving proper notice; or
            69521         (c) a respondent in a formal adjudicative proceeding fails to file a response under
            69522     Section [ 63-46b-6 ] 63G-4-204 .
            69523         (2) An order of default shall include a statement of the grounds for default and shall be
            69524     mailed to all parties.
            69525         (3) (a) A defaulted party may seek to have the agency set aside the default order, and

            69526     any order in the adjudicative proceeding issued subsequent to the default order, by following the
            69527     procedures outlined in the Utah Rules of Civil Procedure.
            69528         (b) A motion to set aside a default and any subsequent order shall be made to the
            69529     presiding officer.
            69530         (c) A defaulted party may seek agency review under Section [ 63-46b-12 ] 63G-4-301 ,
            69531     or reconsideration under Section [ 63-46b-13 ] 63G-4-302 , only on the decision of the presiding
            69532     officer on the motion to set aside the default.
            69533         (4) (a) In an adjudicative proceeding begun by the agency, or in an adjudicative
            69534     proceeding begun by a party that has other parties besides the party in default, the presiding
            69535     officer shall, after issuing the order of default, conduct any further proceedings necessary to
            69536     complete the adjudicative proceeding without the participation of the party in default and shall
            69537     determine all issues in the adjudicative proceeding, including those affecting the defaulting
            69538     party.
            69539         (b) In an adjudicative proceeding that has no parties other than the agency and the party
            69540     in default, the presiding officer shall, after issuing the order of default, dismiss the proceeding.
            69541         Section 1389. Section 63G-4-301 , which is renumbered from Section 63-46b-12 is
            69542     renumbered and amended to read:
            69543     
Part 3. Agency Review

            69544          [63-46b-12].     63G-4-301. Agency review -- Procedure.
            69545         (1) (a) If a statute or the agency's rules permit parties to any adjudicative proceeding to
            69546     seek review of an order by the agency or by a superior agency, the aggrieved party may file a
            69547     written request for review within 30 days after the issuance of the order with the person or
            69548     entity designated for that purpose by the statute or rule.
            69549         (b) The request shall:
            69550         (i) be signed by the party seeking review;
            69551         (ii) state the grounds for review and the relief requested;
            69552         (iii) state the date upon which it was mailed; and
            69553         (iv) be mailed to the presiding officer and to each party.

            69554         (2) (a) Within 15 days of the mailing date of the request for review, or within the time
            69555     period provided by agency rule, whichever is longer, any party may file a response with the
            69556     person designated by statute or rule to receive the response.
            69557         (b) The party who files a response under Subsection (2)(a) shall mail a copy of the
            69558     response to each of the parties and to the presiding officer.
            69559         (3) If a statute or the agency's rules require review of an order by the agency or a
            69560     superior agency, the agency or superior agency shall review the order within a reasonable time
            69561     or within the time required by statute or the agency's rules.
            69562         (4) To assist in review, the agency or superior agency may by order or rule permit the
            69563     parties to file briefs or other documents, or to conduct oral argument.
            69564         (5) Notice of hearings on review shall be mailed to all parties.
            69565         (6) (a) Within a reasonable time after the filing of any response, other filings, or oral
            69566     argument, or within the time required by statute or applicable rules, the agency or superior
            69567     agency shall issue a written order on review.
            69568         (b) The order on review shall be signed by the agency head or by a person designated
            69569     by the agency for that purpose and shall be mailed to each party.
            69570         (c) The order on review shall contain:
            69571         (i) a designation of the statute or rule permitting or requiring review;
            69572         (ii) a statement of the issues reviewed;
            69573         (iii) findings of fact as to each of the issues reviewed;
            69574         (iv) conclusions of law as to each of the issues reviewed;
            69575         (v) the reasons for the disposition;
            69576         (vi) whether the decision of the presiding officer or agency is to be affirmed, reversed,
            69577     or modified, and whether all or any portion of the adjudicative proceeding is to be remanded;
            69578         (vii) a notice of any right of further administrative reconsideration or judicial review
            69579     available to aggrieved parties; and
            69580         (viii) the time limits applicable to any appeal or review.
            69581         Section 1390. Section 63G-4-302 , which is renumbered from Section 63-46b-13 is

            69582     renumbered and amended to read:
            69583          [63-46b-13].     63G-4-302. Agency review -- Reconsideration.
            69584         (1) (a) Within 20 days after the date that an order is issued for which review by the
            69585     agency or by a superior agency under Section [ 63-46b-12 ] 63G-4-301 is unavailable, and if the
            69586     order would otherwise constitute final agency action, any party may file a written request for
            69587     reconsideration with the agency, stating the specific grounds upon which relief is requested.
            69588         (b) Unless otherwise provided by statute, the filing of the request is not a prerequisite
            69589     for seeking judicial review of the order.
            69590         (2) The request for reconsideration shall be filed with the agency and one copy shall be
            69591     mailed to each party by the person making the request.
            69592         (3) (a) The agency head, or a person designated for that purpose, shall issue a written
            69593     order granting the request or denying the request.
            69594         (b) If the agency head or the person designated for that purpose does not issue an order
            69595     within 20 days after the filing of the request, the request for reconsideration shall be considered
            69596     to be denied.
            69597         Section 1391. Section 63G-4-401 , which is renumbered from Section 63-46b-14 is
            69598     renumbered and amended to read:
            69599     
Part 4. Judicial Review

            69600          [63-46b-14].     63G-4-401. Judicial review -- Exhaustion of administrative
            69601      remedies.
            69602         (1) A party aggrieved may obtain judicial review of final agency action, except in
            69603     actions where judicial review is expressly prohibited by statute.
            69604         (2) A party may seek judicial review only after exhausting all administrative remedies
            69605     available, except that:
            69606         (a) a party seeking judicial review need not exhaust administrative remedies if this
            69607     chapter or any other statute states that exhaustion is not required;
            69608         (b) the court may relieve a party seeking judicial review of the requirement to exhaust
            69609     any or all administrative remedies if:

            69610         (i) the administrative remedies are inadequate; or
            69611         (ii) exhaustion of remedies would result in irreparable harm disproportionate to the
            69612     public benefit derived from requiring exhaustion.
            69613         (3) (a) A party shall file a petition for judicial review of final agency action within 30
            69614     days after the date that the order constituting the final agency action is issued or is considered to
            69615     have been issued under Subsection [ 63-46b-13 ] 63G-4-302 (3)(b).
            69616         (b) The petition shall name the agency and all other appropriate parties as respondents
            69617     and shall meet the form requirements specified in this chapter.
            69618         Section 1392. Section 63G-4-402 , which is renumbered from Section 63-46b-15 is
            69619     renumbered and amended to read:
            69620          [63-46b-15].     63G-4-402. Judicial review -- Informal adjudicative
            69621      proceedings.
            69622         (1) (a) The district courts have jurisdiction to review by trial de novo all final agency
            69623     actions resulting from informal adjudicative proceedings, except that the juvenile courts have
            69624     jurisdiction over all state agency actions relating to:
            69625         (i) the removal or placement of children in state custody;
            69626         (ii) the support of children under Subsection (1)(a)(i) as determined administratively
            69627     under Section 78-3a-906 ; and
            69628         (iii) substantiated findings of abuse or neglect made by the Division of Child and Family
            69629     Services, after an evidentiary hearing.
            69630         (b) Venue for judicial review of informal adjudicative proceedings shall be as provided
            69631     in the statute governing the agency or, in the absence of such a venue provision, in the county
            69632     where the petitioner resides or maintains the petitioner's principal place of business.
            69633         (2) (a) The petition for judicial review of informal adjudicative proceedings shall be a
            69634     complaint governed by the Utah Rules of Civil Procedure and shall include:
            69635         (i) the name and mailing address of the party seeking judicial review;
            69636         (ii) the name and mailing address of the respondent agency;
            69637         (iii) the title and date of the final agency action to be reviewed, together with a copy,

            69638     summary, or brief description of the agency action;
            69639         (iv) identification of the persons who were parties in the informal adjudicative
            69640     proceedings that led to the agency action;
            69641         (v) a copy of the written agency order from the informal proceeding;
            69642         (vi) facts demonstrating that the party seeking judicial review is entitled to obtain
            69643     judicial review;
            69644         (vii) a request for relief, specifying the type and extent of relief requested; and
            69645         (viii) a statement of the reasons why the petitioner is entitled to relief.
            69646         (b) All additional pleadings and proceedings in the district court are governed by the
            69647     Utah Rules of Civil Procedure.
            69648         (3) (a) The district court, without a jury, shall determine all questions of fact and law
            69649     and any constitutional issue presented in the pleadings.
            69650         (b) The Utah Rules of Evidence apply in judicial proceedings under this section.
            69651         Section 1393. Section 63G-4-403 , which is renumbered from Section 63-46b-16 is
            69652     renumbered and amended to read:
            69653          [63-46b-16].     63G-4-403. Judicial review -- Formal adjudicative
            69654      proceedings.
            69655         (1) As provided by statute, the Supreme Court or the Court of Appeals has jurisdiction
            69656     to review all final agency action resulting from formal adjudicative proceedings.
            69657         (2) (a) To seek judicial review of final agency action resulting from formal adjudicative
            69658     proceedings, the petitioner shall file a petition for review of agency action with the appropriate
            69659     appellate court in the form required by the appellate rules of the appropriate appellate court.
            69660         (b) The appellate rules of the appropriate appellate court shall govern all additional
            69661     filings and proceedings in the appellate court.
            69662         (3) The contents, transmittal, and filing of the agency's record for judicial review of
            69663     formal adjudicative proceedings are governed by the Utah Rules of Appellate Procedure, except
            69664     that:
            69665         (a) all parties to the review proceedings may stipulate to shorten, summarize, or

            69666     organize the record;
            69667         (b) the appellate court may tax the cost of preparing transcripts and copies for the
            69668     record:
            69669         (i) against a party who unreasonably refuses to stipulate to shorten, summarize, or
            69670     organize the record; or
            69671         (ii) according to any other provision of law.
            69672         (4) The appellate court shall grant relief only if, on the basis of the agency's record, it
            69673     determines that a person seeking judicial review has been substantially prejudiced by any of the
            69674     following:
            69675         (a) the agency action, or the statute or rule on which the agency action is based, is
            69676     unconstitutional on its face or as applied;
            69677         (b) the agency has acted beyond the jurisdiction conferred by any statute;
            69678         (c) the agency has not decided all of the issues requiring resolution;
            69679         (d) the agency has erroneously interpreted or applied the law;
            69680         (e) the agency has engaged in an unlawful procedure or decision-making process, or has
            69681     failed to follow prescribed procedure;
            69682         (f) the persons taking the agency action were illegally constituted as a decision-making
            69683     body or were subject to disqualification;
            69684         (g) the agency action is based upon a determination of fact, made or implied by the
            69685     agency, that is not supported by substantial evidence when viewed in light of the whole record
            69686     before the court;
            69687         (h) the agency action is:
            69688         (i) an abuse of the discretion delegated to the agency by statute;
            69689         (ii) contrary to a rule of the agency;
            69690         (iii) contrary to the agency's prior practice, unless the agency justifies the inconsistency
            69691     by giving facts and reasons that demonstrate a fair and rational basis for the inconsistency; or
            69692         (iv) otherwise arbitrary or capricious.
            69693         Section 1394. Section 63G-4-404 , which is renumbered from Section 63-46b-17 is

            69694     renumbered and amended to read:
            69695          [63-46b-17].     63G-4-404. Judicial review -- Type of relief.
            69696         (1) (a) In either the review of informal adjudicative proceedings by the district court or
            69697     the review of formal adjudicative proceedings by an appellate court, the court may award
            69698     damages or compensation only to the extent expressly authorized by statute.
            69699         (b) In granting relief, the court may:
            69700         (i) order agency action required by law;
            69701         (ii) order the agency to exercise its discretion as required by law;
            69702         (iii) set aside or modify agency action;
            69703         (iv) enjoin or stay the effective date of agency action; or
            69704         (v) remand the matter to the agency for further proceedings.
            69705         (2) Decisions on petitions for judicial review of final agency action are reviewable by a
            69706     higher court, if authorized by statute.
            69707         Section 1395. Section 63G-4-405 , which is renumbered from Section 63-46b-18 is
            69708     renumbered and amended to read:
            69709          [63-46b-18].     63G-4-405. Judicial review -- Stay and other temporary
            69710      remedies pending final disposition.
            69711         (1) Unless precluded by another statute, the agency may grant a stay of its order or
            69712     other temporary remedy during the pendency of judicial review, according to the agency's rules.
            69713         (2) Parties shall petition the agency for a stay or other temporary remedies unless
            69714     extraordinary circumstances require immediate judicial intervention.
            69715         (3) If the agency denies a stay or denies other temporary remedies requested by a party,
            69716     the agency's order of denial shall be mailed to all parties and shall specify the reasons why the
            69717     stay or other temporary remedy was not granted.
            69718         (4) If the agency has denied a stay or other temporary remedy to protect the public
            69719     health, safety, or welfare against a substantial threat, the court may not grant a stay or other
            69720     temporary remedy unless it finds that:
            69721         (a) the agency violated its own rules in denying the stay; or

            69722         (b) (i) the party seeking judicial review is likely to prevail on the merits when the court
            69723     finally disposes of the matter;
            69724         (ii) the party seeking judicial review will suffer irreparable injury without immediate
            69725     relief;
            69726         (iii) granting relief to the party seeking review will not substantially harm other parties
            69727     to the proceedings; and
            69728         (iv) the threat to the public health, safety, or welfare relied upon by the agency is not
            69729     sufficiently serious to justify the agency's action under the circumstances.
            69730         Section 1396. Section 63G-4-501 , which is renumbered from Section 63-46b-19 is
            69731     renumbered and amended to read:
            69732     
Part 5. Orders and Enforcement

            69733          [63-46b-19].     63G-4-501. Civil enforcement.
            69734         (1) (a) In addition to other remedies provided by law, an agency may seek enforcement
            69735     of an order by seeking civil enforcement in the district courts.
            69736         (b) The action seeking civil enforcement of an agency's order must name, as defendants,
            69737     each alleged violator against whom the agency seeks to obtain civil enforcement.
            69738         (c) Venue for an action seeking civil enforcement of an agency's order shall be
            69739     determined by the requirements of the Utah Rules of Civil Procedure.
            69740         (d) The action may request, and the court may grant, any of the following:
            69741         (i) declaratory relief;
            69742         (ii) temporary or permanent injunctive relief;
            69743         (iii) any other civil remedy provided by law; or
            69744         (iv) any combination of the foregoing.
            69745         (2) (a) Any person whose interests are directly impaired or threatened by the failure of
            69746     an agency to enforce an agency's order may timely file a complaint seeking civil enforcement of
            69747     that order, but the action may not be commenced:
            69748         (i) until at least 30 days after the plaintiff has given notice of [his] the plaintiff's intent to
            69749     seek civil enforcement of the alleged violation to the agency head, the attorney general, and to

            69750     each alleged violator against whom the petitioner seeks civil enforcement;
            69751         (ii) if the agency has filed and is diligently prosecuting a complaint seeking civil
            69752     enforcement of the same order against the same or a similarly situated defendant; or
            69753         (iii) if a petition for judicial review of the same order has been filed and is pending in
            69754     court.
            69755         (b) The complaint seeking civil enforcement of an agency's order must name, as
            69756     defendants, the agency whose order is sought to be enforced, the agency that is vested with the
            69757     power to enforce the order, and each alleged violator against whom the plaintiff seeks civil
            69758     enforcement.
            69759         (c) Except to the extent expressly authorized by statute, a complaint seeking civil
            69760     enforcement of an agency's order may not request, and the court may not grant, any monetary
            69761     payment apart from taxable costs.
            69762         (3) In a proceeding for civil enforcement of an agency's order, in addition to any other
            69763     defenses allowed by law, a defendant may defend on the ground that:
            69764         (a) the order sought to be enforced was issued by an agency without jurisdiction to
            69765     issue the order;
            69766         (b) the order does not apply to the defendant;
            69767         (c) the defendant has not violated the order; or
            69768         (d) the defendant violated the order but has subsequently complied.
            69769         (4) Decisions on complaints seeking civil enforcement of an agency's order are
            69770     reviewable in the same manner as other civil cases.
            69771         Section 1397. Section 63G-4-502 , which is renumbered from Section 63-46b-20 is
            69772     renumbered and amended to read:
            69773          [63-46b-20].     63G-4-502. Emergency adjudicative proceedings.
            69774         (1) An agency may issue an order on an emergency basis without complying with the
            69775     requirements of this chapter if:
            69776         (a) the facts known by the agency or presented to the agency show that an immediate
            69777     and significant danger to the public health, safety, or welfare exists; and

            69778         (b) the threat requires immediate action by the agency.
            69779         (2) In issuing its emergency order, the agency shall:
            69780         (a) limit its order to require only the action necessary to prevent or avoid the danger to
            69781     the public health, safety, or welfare;
            69782         (b) issue promptly a written order, effective immediately, that includes a brief statement
            69783     of findings of fact, conclusions of law, and reasons for the agency's utilization of emergency
            69784     adjudicative proceedings; and
            69785         (c) give immediate notice to the persons who are required to comply with the order.
            69786         (3) If the emergency order issued under this section will result in the continued
            69787     infringement or impairment of any legal right or interest of any party, the agency shall
            69788     commence a formal adjudicative proceeding in accordance with the other provisions of this
            69789     chapter.
            69790         Section 1398. Section 63G-4-503 , which is renumbered from Section 63-46b-21 is
            69791     renumbered and amended to read:
            69792          [63-46b-21].     63G-4-503. Declaratory orders.
            69793         (1) Any person may file a request for agency action, requesting that the agency issue a
            69794     declaratory order determining the applicability of a statute, rule, or order within the primary
            69795     jurisdiction of the agency to specified circumstances.
            69796         (2) Each agency shall issue rules that:
            69797         (a) provide for the form, contents, and filing of petitions for declaratory orders;
            69798         (b) provide for the disposition of the petitions;
            69799         (c) define the classes of circumstances in which the agency will not issue a declaratory
            69800     order;
            69801         (d) are consistent with the public interest and with the general policy of this chapter;
            69802     and
            69803         (e) facilitate and encourage agency issuance of reliable advice.
            69804         (3) (a) An agency may not issue a declaratory order if:
            69805         (i) the request is one of a class of circumstances that the agency has by rule defined as

            69806     being exempt from declaratory orders; or
            69807         (ii) the person requesting the declaratory order participated in an adjudicative
            69808     proceeding concerning the same issue within 12 months of the date of the present request.
            69809         (b) An agency may issue a declaratory order that would substantially prejudice the
            69810     rights of a person who would be a necessary party, only if that person consents in writing to the
            69811     determination of the matter by a declaratory proceeding.
            69812         (4) Persons may intervene in declaratory proceedings if:
            69813         (a) they meet the requirements of Section [ 63-46b-9 ] 63G-4-207 ; and
            69814         (b) they file timely petitions for intervention according to agency rules.
            69815         (5) An agency may provide, by rule or order, that other provisions of Sections
            69816     [ 63-46b-4 ] 63G-4-202 through [ 63-46b-13 ] 63G-4-302 apply to declaratory proceedings.
            69817         (6) (a) After receipt of a petition for a declaratory order, the agency may issue a written
            69818     order:
            69819         (i) declaring the applicability of the statute, rule, or order in question to the specified
            69820     circumstances;
            69821         (ii) setting the matter for adjudicative proceedings;
            69822         (iii) agreeing to issue a declaratory order within a specified time; or
            69823         (iv) declining to issue a declaratory order and stating the reasons for its action.
            69824         (b) A declaratory order shall contain:
            69825         (i) the names of all parties to the proceeding on which it is based;
            69826         (ii) the particular facts on which it is based; and
            69827         (iii) the reasons for its conclusion.
            69828         (c) A copy of all orders issued in response to a request for a declaratory proceeding
            69829     shall be mailed promptly to the petitioner and any other parties.
            69830         (d) A declaratory order has the same status and binding effect as any other order issued
            69831     in an adjudicative proceeding.
            69832         (7) Unless the petitioner and the agency agree in writing to an extension, if an agency
            69833     has not issued a declaratory order within 60 days after receipt of the petition for a declaratory

            69834     order, the petition is denied.
            69835         Section 1399. Section 63G-4-601 , which is renumbered from Section 63-46b-23 is
            69836     renumbered and amended to read:
            69837     
Part 6. Electronic Records

            69838          [63-46b-23].     63G-4-601. Electronic records and conversion of written
            69839      records by governmental agencies.
            69840         A governmental agency may make rules regarding electronic records and conversion of
            69841     written records as prescribed by Title 46, Chapter 4, Part 5, Electronic Records in Government
            69842     Agencies.
            69843         Section 1400. Section 63G-5-101 , which is renumbered from Section 63-46c-101 is
            69844     renumbered and amended to read:
            69845     
CHAPTER 5. GOVERNMENTAL DISPUTE RESOLUTION ACT

            69846     
Part 1. General Provisions

            69847          [63-46c-101].     63G-5-101. Title.
            69848         This chapter is known as the "Governmental Dispute Resolution Act."
            69849         Section 1401. Section 63G-5-102 , which is renumbered from Section 63-46c-102 is
            69850     renumbered and amended to read:
            69851          [63-46c-102].     63G-5-102. Definitions.
            69852         As used in this chapter:
            69853         (1) "Agency" is defined in Section [ 63-46b-2 ] 63G-4-103 .
            69854         (2) "Alternative dispute resolution" or "ADR" means a process other than litigation
            69855     used to resolve disputes including mediation, arbitration, facilitation, regulatory negotiation,
            69856     fact-finding, conciliation, early neutral evaluation, and policy dialogues.
            69857         (3) "ADR organization" is defined in Section 78-31b-2 .
            69858         (4) (a) "ADR provider" means a neutral person who:
            69859         (i) meets the qualifications established by Judicial Council rules authorized under
            69860     Section 78-31b-5 ; and
            69861         (ii) conducts an ADR procedure.

            69862         (b) "ADR provider" includes an arbitrator, mediator, and early neutral evaluator and
            69863     may be an employee or an independent contractor.
            69864         (5) "Arbitration" means a private hearing before an ADR provider or panel of ADR
            69865     providers who hear the evidence, consider the contentions of the parties, and enter a written
            69866     award to resolve the issues presented.
            69867         (6) "Mediation" is defined in Section 78-31b-2 .
            69868         (7) "Neutral" means a person who holds himself out to the public as a qualified person
            69869     trained to use alternative dispute resolution techniques to resolve conflicts.
            69870         Section 1402. Section 63G-5-201 , which is renumbered from Section 63-46c-103 is
            69871     renumbered and amended to read:
            69872     
Part 2. Alternative Dispute Resolution

            69873          [63-46c-103].     63G-5-201. Alternative dispute resolution -- Authorization --
            69874      Procedures -- Agency coordinators -- Contracts.
            69875         (1) An agency may use an ADR procedure to resolve any dispute, issue, or controversy
            69876     involving any of the agency's operations, programs, or functions, including formal and informal
            69877     adjudications, rulemakings, enforcement actions, permitting, certifications, licensing, policy
            69878     development, and contract administration only with the consent of all the interested parties.
            69879         (2) (a) An agency may develop and adopt an ADR procedure governed by rules,
            69880     adopted in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
            69881     Rulemaking Act.
            69882         (b) In developing and adopting an ADR procedure under Subsection (2)(a), an agency
            69883     shall consider:
            69884         (i) public interest in maintaining open access to and neutrality of an ADR provider or
            69885     neutral;
            69886         (ii) providing a broad selection of ADR providers or neutrals; and
            69887         (iii) creating objective criteria for an ADR provider or neutral to become qualified to
            69888     conduct an agency ADR procedure.
            69889         (3) ADR procedures developed and used by an agency must be consistent with the

            69890     requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
            69891         (4) ADR procedures are voluntary and may be used:
            69892         (a) at the discretion of the agency; or
            69893         (b) with an agency that has adopted an ADR procedure under Subsection (2), at the
            69894     request of an interested party to a dispute.
            69895         (5) An agency that chooses to use an ADR procedure shall develop an agreement with
            69896     interested parties that provides:
            69897         (a) (i) for the appointment of an ADR provider or a neutral;
            69898         (ii) whose appointment is agreed upon by all parties to the dispute;
            69899         (b) specifies any limitation periods applicable to the commencement or conclusion of
            69900     formal administrative or judicial proceedings and, if applicable, specifies any time periods that
            69901     the parties have agreed to waive; and
            69902         (c) sets forth how costs and expenses shall be apportioned among the parties.
            69903         (6) (a) An ADR provider or neutral agreed upon in Subsection (5) shall have no official,
            69904     financial, or personal conflict of interest with any issue or party in controversy unless the
            69905     conflict of interest is fully disclosed in writing to all of the parties and all of the parties agree
            69906     that the person may continue to serve.
            69907         (b) An agency may make rules in accordance with [Title 63, Chapter 46a] Title 63G,
            69908     Chapter 3, Utah Administrative Rulemaking Act, to develop standards to assure the neutrality
            69909     of an ADR provider or neutral.
            69910         (7) An agreement developed in accordance with Subsection (5) may be included in an
            69911     enforcement order, stipulation, contract, permit, or other document entered into or issued by
            69912     the agency.
            69913         (8) (a) The administrative head of an agency may designate an employee as the ADR
            69914     coordinator for that agency.
            69915         (b) The agency ADR coordinator shall:
            69916         (i) make recommendations to the agency's executive staff on issues and disputes that are
            69917     suitable for alternative dispute resolution;

            69918         (ii) analyze the agency's enabling statutes and rules to determine whether they contain
            69919     impediments to the use of ADR procedures and suggest any modifications;
            69920         (iii) monitor the agency's use of ADR procedures;
            69921         (iv) arrange for training of agency staff in ADR procedures; and
            69922         (v) provide information about the agency's ADR procedures to the agency's staff and to
            69923     the public.
            69924         (9) In order to implement the purposes of this chapter, an agency may employ or
            69925     contract with a neutral, an ADR provider, an ADR organization, another agency, or a private
            69926     entity for any service necessary on a case-by-case basis, on a service basis, or on a program
            69927     basis.
            69928         (10) ADR procedures developed and used under this chapter are subject to the
            69929     confidentiality requirements of Section 78-31b-8 .
            69930         Section 1403. Section 63G-5-301 , which is renumbered from Section 63-46c-104 is
            69931     renumbered and amended to read:
            69932     
Part 3. Application

            69933          [63-46c-104].     63G-5-301. Effect on other laws.
            69934         Nothing in this chapter or in the agreements and procedures developed in Section
            69935     [ 63-46c-103 ] 63G-5-201 shall:
            69936         (1) limit other dispute resolution procedures available to an agency; and
            69937         (2) deny a person a right granted under federal or other state law, including a right to an
            69938     administrative or judicial hearing.
            69939         Section 1404. Section 63G-6-101 is enacted to read:
            69940     
CHAPTER 6. UTAH PROCUREMENT CODE

            69941     
Part 1. General Provisions

            69942          63G-6-101. Title.
            69943         This chapter is known as the "Utah Procurement Code."
            69944         Section 1405. Section 63G-6-102 , which is renumbered from Section 63-56-101 is
            69945     renumbered and amended to read:

            69946          [63-56-101].     63G-6-102. Purpose of chapter.
            69947         The underlying purposes and policies of this chapter are:
            69948         (1) to simplify, clarify, and modernize the law governing procurement by this state;
            69949         (2) to ensure the fair and equitable treatment of all persons who deal with the
            69950     procurement system of this state;
            69951         (3) to provide increased economy in state procurement activities; and
            69952         (4) to foster effective broad-based competition within the free enterprise system.
            69953         Section 1406. Section 63G-6-103 , which is renumbered from Section 63-56-105 is
            69954     renumbered and amended to read:
            69955          [63-56-105].     63G-6-103. Definitions.
            69956         As used in this chapter:
            69957         (1) "Architect-engineer services" are those professional services within the scope of the
            69958     practice of architecture as defined in Section 58-3a-102 , or professional engineering as defined
            69959     in Section 58-22-102 .
            69960         (2) "Business" means any corporation, partnership, individual, sole proprietorship, joint
            69961     stock company, joint venture, or any other private legal entity.
            69962         (3) "Change order" means a written order signed by the procurement officer, directing
            69963     the contractor to suspend work or make changes, which the appropriate clauses of the contract
            69964     authorize the procurement officer to order without the consent of the contractor or any written
            69965     alteration in specifications, delivery point, rate of delivery, period of performance, price,
            69966     quantity, or other provisions of any contract accomplished by mutual action of the parties to the
            69967     contract.
            69968         (4) (a) "Construction" means the process of building, renovation, alteration,
            69969     improvement, or repair of any public building or public work.
            69970         (b) "Construction" does not mean the routine operation, routine repair, or routine
            69971     maintenance of existing structures, buildings, or real property.
            69972         (5) (a) "Construction Manager/General Contractor" means any contractor who enters
            69973     into a contract for the management of a construction project when that contract allows the

            69974     contractor to subcontract for additional labor and materials that were not included in the
            69975     contractor's cost proposal submitted at the time of the procurement of the Construction
            69976     Manager/General Contractor's services.
            69977         (b) "Construction Manager/General Contractor" does not mean a contractor whose
            69978     only subcontract work not included in the contractor's cost proposal submitted as part of the
            69979     procurement of construction is to meet subcontracted portions of change orders approved
            69980     within the scope of the project.
            69981         (6) "Contract" means any state agreement for the procurement or disposal of supplies,
            69982     services, or construction.
            69983         (7) "Cooperative purchasing" means procurement conducted by, or on behalf of, more
            69984     than one public procurement unit, or by a public procurement unit with an external procurement
            69985     unit.
            69986         (8) "Cost-reimbursement contract" means a contract under which a contractor is
            69987     reimbursed for costs which are allowed and allocated in accordance with the contract terms and
            69988     the provisions of this chapter, and a fee, if any.
            69989         (9) (a) "Design-build" means the procurement of architect-engineer services and
            69990     construction by the use of a single contract with the design-build provider.
            69991         (b) This method of design and construction can include the design-build provider
            69992     supplying the site as part of the contract.
            69993         (10) "Established catalogue price" means the price included in a catalogue, price list,
            69994     schedule, or other form that:
            69995         (a) is regularly maintained by a manufacturer or contractor;
            69996         (b) is either published or otherwise available for inspection by customers; and
            69997         (c) states prices at which sales are currently or were last made to a significant number
            69998     of any category of buyers or buyers constituting the general buying public for the supplies or
            69999     services involved.
            70000         (11) "External procurement unit" means any buying organization not located in this
            70001     state which, if located in this state, would qualify as a public procurement unit. An agency of

            70002     the United States is an external procurement unit.
            70003         (12) "Grant" means the furnishing by the state or by any other public or private source
            70004     assistance, whether financial or otherwise, to any person to support a program authorized by
            70005     law. It does not include an award whose primary purpose is to procure an end product,
            70006     whether in the form of supplies, services, or construction. A contract resulting from the award
            70007     is not a grant but a procurement contract.
            70008         (13) "Invitation for bids" means all documents, whether attached or incorporated by
            70009     reference, utilized for soliciting bids.
            70010         (14) "Local public procurement unit" means any political subdivision or institution of
            70011     higher education of the state or public agency of any subdivision, public authority, educational,
            70012     health, or other institution, and to the extent provided by law, any other entity which expends
            70013     public funds for the procurement of supplies, services, and construction, but not counties,
            70014     municipalities, political subdivisions created by counties or municipalities under the Interlocal
            70015     Cooperation Act, the Utah Housing Corporation, or the Legislature and its staff offices. It
            70016     includes two or more local public procurement units acting under legislation which authorizes
            70017     intergovernmental cooperation.
            70018         (15) "Person" means any business, individual, union, committee, club, other
            70019     organization, or group of individuals, not including a state agency or a local public procurement
            70020     unit.
            70021         (16) "Policy board" means the procurement policy board created by Section
            70022     [ 63-56-201 ] 63G-6-201 .
            70023         (17) "Preferred bidder" means a bidder that is entitled to receive a reciprocal preference
            70024     under the requirements of this chapter.
            70025         (18) "Procurement" means buying, purchasing, renting, leasing, leasing with an option
            70026     to purchase, or otherwise acquiring any supplies, services, or construction. It also includes all
            70027     functions that pertain to the obtaining of any supply, service, or construction, including
            70028     description of requirements, selection, and solicitation of sources, preparation, and award of a
            70029     contract, and all phases of contract administration.

            70030         (19) "Procurement officer" means any person or board duly authorized to enter into and
            70031     administer contracts and make written determinations with respect thereto. It also includes an
            70032     authorized representative acting within the limits of authority.
            70033         (20) "Public procurement unit" means either a local public procurement unit or a state
            70034     public procurement unit.
            70035         (21) "Purchase description" means the words used in a solicitation to describe the
            70036     supplies, services, or construction to be purchased, and includes specifications attached to or
            70037     made a part of the solicitation.
            70038         (22) "Purchasing agency" means any state agency other than the Division of Purchasing
            70039     and General Services that is authorized by this chapter or its implementing regulations, or by
            70040     delegation from the chief procurement officer, to enter into contracts.
            70041         (23) "Request for proposals" means all documents, whether attached or incorporated by
            70042     reference, used for soliciting proposals.
            70043         (24) "Responsible bidder or offeror" means a person who has the capability in all
            70044     respects to perform fully the contract requirements and who has the integrity and reliability
            70045     which will assure good faith performance.
            70046         (25) "Responsive bidder" means a person who has submitted a bid which conforms in
            70047     all material respects to the invitation for bids.
            70048         (26) "Sealed" does not preclude acceptance of electronically sealed and submitted bids
            70049     or proposals in addition to bids or proposals manually sealed and submitted.
            70050         (27) "Services" means the furnishing of labor, time, or effort by a contractor, not
            70051     involving the delivery of a specific end product other than reports which are merely incidental to
            70052     the required performance. It does not include employment agreements or collective bargaining
            70053     agreements.
            70054         (28) "Specification" means any description of the physical or functional characteristics,
            70055     or of the nature of a supply, service, or construction item. It may include a description of any
            70056     requirement for inspecting, testing, or preparing a supply, service, or construction item for
            70057     delivery.

            70058         (29) "State agency" or "the state" means any department, division, commission, council,
            70059     board, bureau, committee, institution, government corporation, or other establishment, official,
            70060     or employee of this state.
            70061         (30) "State public procurement unit" means the Division of Purchasing and General
            70062     Services and any other purchasing agency of this state.
            70063         (31) "Supplies" means all property, including equipment, materials, and printing.
            70064         (32) "Using agency" means any state agency which utilizes any supplies, services, or
            70065     construction procured under this chapter.
            70066         Section 1407. Section 63G-6-104 , which is renumbered from Section 63-56-102 is
            70067     renumbered and amended to read:
            70068          [63-56-102].     63G-6-104. Application of chapter.
            70069         (1) This chapter applies only to contracts solicited or entered into after the effective
            70070     date of this chapter unless the parties agree to its application to a contract solicited or entered
            70071     into prior to the effective date.
            70072         (2) Except as provided in Section [ 63-56-103 ] 63G-6-105 , this chapter shall apply to
            70073     every expenditure of public funds irrespective of their source, including federal assistance, by
            70074     any state agency under any contract.
            70075         (3) (a) Only the following sections shall apply to local public procurement units:
            70076     Sections [ 63-56-103 ] 63G-6-103 , [ 63-56-105 ] 63G-6-105 , [ 63-56-301 ] 63G-6-301 ,
            70077     [ 63-56-303 ] 63G-6-303 through [ 63-56-420 ] 63G-6-420 , [ 63-56-422 ] 63G-6-422 , [ 63-56-501 ]
            70078      63G-6-501 through [ 63-56-602 ] 63G-6-602 , [ 63-56-801 ] 63G-6-801 through [ 63-56-806 ]
            70079      63G-6-806 , and [ 63-56-815 ] 63G-6-815 through [ 63-56-819 ] 63G-6-819 ; provided, however,
            70080     that, except as provided in Sections [ 63-56-906 ] 63G-6-906 and [ 63-56-907 ] 63G-6-907 , the
            70081     jurisdiction of the procurement appeals board is limited to matters involving state agencies.
            70082         (b) Subsections [ 63-56-208 ] 63G-6-208 (1)(b), [ 63-56-503 ] 63G-6-504 (4), and
            70083     [ 63-56-504 ] 63G-6-505 (2) also apply to local public procurement units.
            70084         (c) For the purpose of application of those sections and subsections to a local public
            70085     procurement unit, "state" shall mean "local public procurement unit," "chief procurement

            70086     officer" or "head of a purchasing agency" shall mean any person conducting procurement for a
            70087     local public procurement unit, and "rules and regulations" shall mean ordinances and rules and
            70088     regulations promulgated by a local public procurement unit to implement or supplement those
            70089     sections.
            70090         (d) In addition to the sections and subsections listed above and except as provided in
            70091     Subsection 17B-1-108 (3) relating to local districts, each local public procurement unit shall
            70092     adopt ordinances relating to the procurement of architect-engineer services not inconsistent
            70093     with the provisions of Part 7, Architect-Engineer Services.
            70094         (e) Any other section of this chapter, or its implementing regulations, may be adopted
            70095     by any local public procurement unit.
            70096         (f) Any other implementing regulations adopted by local public procurement units may
            70097     not be inconsistent with the provisions of this chapter.
            70098         (4) Unless otherwise provided by statute, this chapter does not apply to procurement of
            70099     real property.
            70100         Section 1408. Section 63G-6-105 , which is renumbered from Section 63-56-103 is
            70101     renumbered and amended to read:
            70102          [63-56-103].     63G-6-105. Exemptions from chapter -- Compliance with
            70103      federal law.
            70104         (1) This chapter is not applicable to funds administered under the Percent-for-Art
            70105     Program of the Utah Percent-for-Art Act.
            70106         (2) This chapter is not applicable to grants awarded by the state or contracts between
            70107     the state and local public procurement units except as provided in Part 9, Intergovernmental
            70108     Relations.
            70109         (3) This chapter shall not prevent the state or a local public procurement unit from
            70110     complying with the terms and conditions of any grant, gift, or bequest that is otherwise
            70111     consistent with law.
            70112         (4) When a procurement involves the expenditure of federal assistance or contract
            70113     funds, the chief procurement officer or head of a purchasing agency shall comply with

            70114     mandatory applicable federal law and regulations not reflected in this chapter.
            70115         (5) This chapter may not supersede the requirements for retention or withholding of
            70116     construction proceeds and release of construction proceeds as provided in Section 13-8-5 .
            70117         Section 1409. Section 63G-6-106 , which is renumbered from Section 63-56-104 is
            70118     renumbered and amended to read:
            70119          [63-56-104].     63G-6-106. Records.
            70120         (1) All procurement records shall be retained and disposed of in accordance with [Title
            70121     63, Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act.
            70122         (2) Written determinations required by this chapter shall also be retained in the
            70123     appropriate official contract file of the Division of Purchasing and General Services or the
            70124     purchasing agency.
            70125         Section 1410. Section 63G-6-201 , which is renumbered from Section 63-56-201 is
            70126     renumbered and amended to read:
            70127     
Part 2. Procurement Organization

            70128          [63-56-201].     63G-6-201. Creation of procurement policy board.
            70129         (1) (a) There is created a state procurement policy board.
            70130         (b) The policy board shall consist of eight members who shall be appointed as follows:
            70131         (i) an employee of a state institution of higher education, appointed by the board of
            70132     regents;
            70133         (ii) an employee of the Department of Human Services, appointed by the executive
            70134     director of that department;
            70135         (iii) an employee of the Department of Transportation, appointed by the executive
            70136     director of that department;
            70137         (iv) an employee of a school district appointed by a cooperative purchasing entity for
            70138     school districts;
            70139         (v) an employee of the Division of Facilities Construction and Management appointed
            70140     by the director of that division;
            70141         (vi) an employee of a county, appointed by the Utah Association of Counties;

            70142         (vii) an employee of a city, appointed by the Utah League of Cities and Towns; and
            70143         (viii) an employee of a local district or special service district, appointed by the Utah
            70144     Association of Special Districts.
            70145         (c) Members of the policy board shall be knowledgeable and experienced in, and have
            70146     supervisory responsibility for, procurement in their official positions.
            70147         (2) Members shall be appointed to four-year staggered terms.
            70148         (3) When a vacancy occurs in the membership for any reason, the replacement shall be
            70149     appointed for the unexpired term.
            70150         (4) (a) The policy board shall:
            70151         (i) adopt rules of procedure for conducting its business; and
            70152         (ii) elect a chair to serve for one year.
            70153         (b) The chair may be elected to succeeding terms.
            70154         (c) The chief procurement officer shall serve as the nonvoting secretary to the policy
            70155     board.
            70156         (5) (a) (i) Members who are not government employees shall receive no compensation
            70157     or benefits for their services, but may receive per diem and expenses incurred in the
            70158     performance of the member's official duties at the rates established by the Division of Finance
            70159     under Sections 63A-3-106 and 63A-3-107 .
            70160         (ii) Members may decline to receive per diem and expenses for their service.
            70161         (b) (i) State government officer and employee members who do not receive salary, per
            70162     diem, or expenses from their agency for their service may receive per diem and expenses
            70163     incurred in the performance of their official duties from the board at the rates established by the
            70164     Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            70165         (ii) State government officer and employee members may decline to receive per diem
            70166     and expenses for their service.
            70167         (c) (i) Higher education members who do not receive salary, per diem, or expenses
            70168     from the entity that they represent for their service may receive per diem and expenses incurred
            70169     in the performance of their official duties from the committee at the rates established by the

            70170     Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            70171         (ii) Higher education members may decline to receive per diem and expenses for their
            70172     service.
            70173         (d) (i) Local government members who do not receive salary, per diem, or expenses
            70174     from the entity that they represent for their service may receive per diem and expenses incurred
            70175     in the performance of their official duties at the rates established by the Division of Finance
            70176     under Sections 63A-3-106 and 63A-3-107 .
            70177         (ii) Local government members may decline to receive per diem and expenses for their
            70178     service.
            70179         Section 1411. Section 63G-6-202 , which is renumbered from Section 63-56-202 is
            70180     renumbered and amended to read:
            70181          [63-56-202].     63G-6-202. Powers and duties of board.
            70182         (1) Except as otherwise provided in Sections [ 63-56-102 ] 63G-6-104 and [ 63-56-208 ]
            70183      63G-6-208 , the policy board shall:
            70184         (a) make rules, consistent with this chapter, governing the procurement, management,
            70185     and control of any and all supplies, services, and construction to be procured by the state; and
            70186         (b) consider and decide matters of policy within the provisions of this chapter, including
            70187     those referred to it by the chief procurement officer.
            70188         (2) (a) The policy board may:
            70189         (i) audit and monitor the implementation of its rules and the requirements of this
            70190     chapter;
            70191         (ii) upon the request of a local public procurement unit, review that procurement unit's
            70192     proposed rules to ensure that they are not inconsistent with the provisions of this chapter; and
            70193         (iii) approve the use of innovative procurement methods proposed by local public
            70194     procurement units.
            70195         (b) The policy board may not exercise authority over the award or administration of:
            70196         (i) any particular contact; or
            70197         (ii) over any dispute, claim, or litigation pertaining to any particular contract.

            70198         Section 1412. Section 63G-6-203 , which is renumbered from Section 63-56-203 is
            70199     renumbered and amended to read:
            70200          [63-56-203].     63G-6-203. Chief procurement officer -- Appointment --
            70201      Qualifications.
            70202         (1) The executive director of the Department of Administrative Services, with the
            70203     consent of the governor, shall appoint the chief procurement officer after considering
            70204     recommendations from the policy board.
            70205         (2) The chief procurement officer shall:
            70206         (a) have a minimum of eight years' experience in the large-scale procurement of supplies
            70207     and services or services and construction, at least five years of which shall have been in public
            70208     or comparable private procurement within 12 years preceding the date of appointment; and
            70209         (b) be a person with demonstrated executive and organizational ability.
            70210         (3) The chief procurement officer is also the director of the Division of Purchasing and
            70211     General Services.
            70212         Section 1413. Section 63G-6-204 , which is renumbered from Section 63-56-204 is
            70213     renumbered and amended to read:
            70214          [63-56-204].     63G-6-204. Duties of chief procurement officer.
            70215         Except as otherwise specifically provided in this chapter, the chief procurement officer
            70216     serves as the central procurement officer of the state and shall:
            70217         (1) adopt office policies governing the internal functions of the Division of Purchasing
            70218     and General Services;
            70219         (2) procure or supervise the procurement of all supplies, services, and construction
            70220     needed by the state;
            70221         (3) exercise general supervision and control over all inventories or supplies belonging to
            70222     the state;
            70223         (4) establish and maintain programs for the inspection, testing, and acceptance of
            70224     supplies, services, and construction;
            70225         (5) prepare statistical data concerning the procurement and usage of all supplies,

            70226     services, and construction;
            70227         (6) before June 1, 1990, notify all public procurement units of the requirements of
            70228     Section [ 63-56-406 ] 63G-6-406 regarding purchases of recycled paper and recycled paper
            70229     products, recycling requirements, and provide guidelines on the availability of recycled paper
            70230     and paper products, including the sources of supply and the potential uses of various grades of
            70231     recycled paper;
            70232         (7) before July 1, 1992:
            70233         (a) establish standards and specifications for determining which supplies are considered
            70234     recycled, based upon [his] the chief procurement officer's review of current definitions and
            70235     standards employed by national procurement, product recycling, and other relevant
            70236     organizations and the federal Environmental Protection Agency;
            70237         (b) compile and update as necessary the specifications, a list of recycled supplies
            70238     available on state contract, and sources where the supplies may be obtained;
            70239         (c) make the compiled information under Subsection (7)(b) available to:
            70240         (i) all local government entities under Section 11-37-101 ;
            70241         (ii) all local health departments under Section 26A-1-108.7 ;
            70242         (iii) all procurement officers or other persons responsible for purchasing supplies within
            70243     the public school system under Title 53A, State System of Public Education;
            70244         (iv) all procurement officers or other persons responsible for purchasing supplies within
            70245     the state system of higher education under Title 53B, State System of Higher Education; and
            70246         (v) all procurement officers or other persons responsible for purchasing supplies for all
            70247     public procurement units as defined in Section [ 63-56-105 ] 63G-6-103 ; and
            70248         (d) present a written report to the Natural Resources, Agriculture, and Environment
            70249     Interim Committee annually prior to November 30 regarding the purchases of recycled goods
            70250     on state contracts during the prior fiscal year; and
            70251         (8) ensure that:
            70252         (a) before approving a purchase, lease, or rental not covered by an existing statewide
            70253     contract for information technology or telecommunications supplies or services, the chief

            70254     information officer and the agency have provided in writing to the division, that the needs
            70255     analysis required in Section 63F-1-205 was completed; and
            70256         (b) the oversight authority required by Subsection (8)(a) is not delegated outside the
            70257     Division of Purchasing and General Services.
            70258         Section 1414. Section 63G-6-205 , which is renumbered from Section 63-56-205 is
            70259     renumbered and amended to read:
            70260          [63-56-205].     63G-6-205. Delegation of authority.
            70261         Subject to rules and regulations, the chief procurement officer may delegate authority to
            70262     designees or to any department, agency, or official.
            70263         Section 1415. Section 63G-6-206 , which is renumbered from Section 63-56-206 is
            70264     renumbered and amended to read:
            70265          [63-56-206].     63G-6-206. Transfer of power to policy board.
            70266         Except as otherwise provided in this chapter, all rights, powers, duties, and authority
            70267     relating to the procurement of supplies, services, and construction, and the management,
            70268     control, warehousing, and sale of supplies, services, and construction vested in or exercised by
            70269     any state agency on the effective date are transferred to the policy board as they relate to its
            70270     duties and to the Division of Purchasing and General Services as they relate to its duties.
            70271         Section 1416. Section 63G-6-207 , which is renumbered from Section 63-56-207 is
            70272     renumbered and amended to read:
            70273          [63-56-207].     63G-6-207. Specific statutory authority.
            70274         (1) The authority to procure certain supplies, services, and construction given the public
            70275     procurement units governed by the following provisions shall be retained:
            70276         (a) Title 53B, State System of Higher Education;
            70277         (b) Title 63A, Chapter 5, State Building Board - Division of Facilities Construction and
            70278     Management;
            70279         (c) Title 67, Chapter 5, Attorney General;
            70280         (d) Title 72, Transportation; and
            70281         (e) Title 78, Chapter 3, District Courts.

            70282         (2) This authority extends only to supplies, services, and construction to the extent
            70283     provided in the cited chapters. Except as otherwise provided in Sections [ 63-56-102 ]
            70284      63G-6-104 and [ 63-56-103 ] 63G-6-105 , the respective purchasing agencies shall procure
            70285     supplies, services, and construction in accordance with this chapter.
            70286         (3) (a) The Department of Transportation may make rules governing the procurement
            70287     of highway construction or improvement.
            70288         (b) This Subsection (3) supersedes Subsections (1) and (2).
            70289         (4) The Legislature may procure supplies and services for its own needs.
            70290         Section 1417. Section 63G-6-208 , which is renumbered from Section 63-56-208 is
            70291     renumbered and amended to read:
            70292          [63-56-208].     63G-6-208. Rules and regulations of policy board and
            70293      building board.
            70294         (1) (a) Except as provided in Subsection (2), the policy board shall make rules
            70295     governing state procurement by complying with the procedures and requirements of [Title 63,
            70296     Chapter 46a] Title 63G, Chapter 3, the Utah Administrative Rulemaking Act.
            70297         (b) The procurement rules adopted by the policy board under this section apply to all
            70298     local public procurement units unless the local public procurement unit's legislative body has
            70299     adopted separate rules governing procurement.
            70300         (2) The State Building Board rules governing procurement of construction,
            70301     architect-engineer services, and leases apply to the procurement of construction,
            70302     architect-engineer services, and leases of real property by the Division of Facilities Construction
            70303     and Management.
            70304         Section 1418. Section 63G-6-209 , which is renumbered from Section 63-56-209 is
            70305     renumbered and amended to read:
            70306          [63-56-209].     63G-6-209. Procurement Advisory Council.
            70307         (1) The policy board may establish a Procurement Advisory Council, which shall meet
            70308     at least once a year for the discussion of problems and recommendations for improvement of the
            70309     procurement process. When requested by the policy board, the Procurement Advisory Council

            70310     may conduct studies, research, analyses, and make reports and recommendations with respect to
            70311     subjects or matters within the jurisdiction of the policy board. The Procurement Advisory
            70312     Council shall consist of representatives of state and local government and any other persons the
            70313     policy board considers desirable.
            70314         (2) The chief procurement officer may appoint advisory groups to provide advice
            70315     regarding any matters within the authority of the chief procurement officer.
            70316         (3) Members of the Procurement Advisory Council and other advisory groups may be
            70317     reimbursed for expenses incurred in the performance of their duties, as provided by the policy
            70318     board.
            70319         Section 1419. Section 63G-6-301 , which is renumbered from Section 63-56-301 is
            70320     renumbered and amended to read:
            70321     
Part 3. Specifications

            70322          [63-56-301].     63G-6-301. Rules and regulations for specifications of
            70323      supplies.
            70324         Rules and regulations shall be promulgated to govern the preparation, maintenance, and
            70325     content of specifications for supplies, services, and construction required by the state. Rules
            70326     and regulations shall determine the extent to which a nonemployee who has prepared
            70327     specifications for use by the state may participate in any state procurement using such
            70328     specifications.
            70329         Section 1420. Section 63G-6-302 , which is renumbered from Section 63-56-302 is
            70330     renumbered and amended to read:
            70331          [63-56-302].     63G-6-302. Duty of chief procurement officer in maintaining
            70332      specifications of supplies.
            70333         The chief procurement officer shall prepare, issue, revise, maintain, and monitor the use
            70334     of specifications for supplies, services, and construction required by the state. The chief
            70335     procurement officer shall obtain expert advice and assistance from personnel of using agencies
            70336     in the development of specifications and may delegate in writing to a using agency the authority
            70337     to prepare and utilize its own specifications.

            70338         Section 1421. Section 63G-6-303 , which is renumbered from Section 63-56-303 is
            70339     renumbered and amended to read:
            70340          [63-56-303].     63G-6-303. Purpose of specifications.
            70341         All specifications shall seek to promote overall economy and best use for the purposes
            70342     intended and encourage competition in satisfying the state's needs, and shall not be unduly
            70343     restrictive. The requirements of this part regarding the purposes and nonrestrictiveness of
            70344     specifications shall apply to all specifications, including, but not limited to, those prepared by
            70345     architects, engineers, designers, and draftsmen for public contracts.
            70346         Section 1422. Section 63G-6-401 , which is renumbered from Section 63-56-401 is
            70347     renumbered and amended to read:
            70348     
Part 4. Source Selections and Contract Formation

            70349          [63-56-401].     63G-6-401. Contracts awarded by sealed bidding --
            70350      Procedure.
            70351         (1) Contracts shall be awarded by competitive sealed bidding except as otherwise
            70352     provided by this chapter.
            70353         (2) (a) An invitation for bids shall be issued when a contract is to be awarded by
            70354     competitive sealed bidding.
            70355         (b) The invitation shall include a purchase description and all contractual terms and
            70356     conditions applicable to the procurement.
            70357         (3) (a) Public notice of the invitation for bids shall be given a reasonable time before the
            70358     date set forth in the invitation for the opening of bids, in accordance with rules.
            70359         (b) The notice may include publication in a newspaper of general circulation a
            70360     reasonable time before bid opening.
            70361         (4) (a) Bids shall be opened publicly in the presence of one or more witnesses at the
            70362     time and place designated in the invitation for bids.
            70363         (b) The amount of each bid and any other relevant information specified by rules,
            70364     together with the name of each bidder, shall be recorded.
            70365         (c) The record and each bid shall be open to public inspection.

            70366         (5) (a) Bids shall be unconditionally accepted without alteration or correction, except as
            70367     authorized in this chapter.
            70368         (b) (i) Bids shall be evaluated based on the requirements set forth in the invitation for
            70369     bids, which may include criteria to determine acceptability such as inspection, testing, quality,
            70370     workmanship, delivery, and suitability for a particular purpose.
            70371         (ii) Those criteria that will affect the bid price and be considered in evaluation for award
            70372     shall be objectively measurable.
            70373         (iii) The criteria may include discounts, transportation costs, and total or life cycle
            70374     costs.
            70375         (c) No criteria may be used in bid evaluation that are not set forth in the invitation for
            70376     bids.
            70377         (6) (a) Correction or withdrawal of inadvertently erroneous bids before or after award,
            70378     or cancellation of awards or contracts based on the bid mistakes, shall be permitted in
            70379     accordance with rules.
            70380         (b) After bid opening, no changes in bid prices or other provisions of bids prejudicial to
            70381     the interest of the state or fair competition may be permitted.
            70382         (c) Except as otherwise provided by rule, all decisions to permit the correction or
            70383     withdrawal of bids or to cancel awards or contracts based on bid mistakes shall be supported by
            70384     a written determination made by the chief procurement officer or the head of a purchasing
            70385     agency.
            70386         (7) (a) The contract shall be awarded with reasonable promptness by written notice to
            70387     the lowest responsive and responsible bidder whose bid meets the requirements and criteria set
            70388     forth in the invitation for bids.
            70389         (b) (i) If all bids for a construction project exceed available funds as certified by the
            70390     appropriate fiscal officer, and the low responsive and responsible bid does not exceed those
            70391     funds by more than 5%, the chief procurement officer or the head of a purchasing agency may,
            70392     in situations where time or economic considerations preclude resolicitation of work of a
            70393     reduced scope, negotiate an adjustment of the bid price, including changes in the bid

            70394     requirements, with the low responsive and responsible bidder in order to bring the bid within the
            70395     amount of available funds.
            70396         (ii) If the State Building Board establishes alternative procedures by rule under Section
            70397      63A-5-103 , the Division of Facilities Construction and Management need not comply with the
            70398     provisions of this Subsection (7) when a bid meets the requirements of the State Building
            70399     Board's rule.
            70400         (8) When it is considered impractical to prepare initially a purchase description to
            70401     support an award based on price, an invitation for bids may be issued requesting the submission
            70402     of unpriced offers to be followed by an invitation for bids limited to those bidders whose offers
            70403     have been qualified under the criteria set forth in the first solicitation.
            70404         Section 1423. Section 63G-6-402 , which is renumbered from Section 63-56-402 is
            70405     renumbered and amended to read:
            70406          [63-56-402].     63G-6-402. Contracts awarded by reverse auction.
            70407         (1) As used in this section, "reverse auction" means a process where:
            70408         (a) contracts are awarded in an open and interactive environment, which may include
            70409     the use of electronic media; and
            70410         (b) bids are opened and made public immediately, and bidders given opportunity to
            70411     submit revised, lower bids, until the bidding process is complete.
            70412         (2) (a) Notwithstanding the requirements of this chapter, contracts may be awarded
            70413     through a reverse auction.
            70414         (b) The policy board shall make rules, consistent with this chapter, governing a reverse
            70415     auction process.
            70416         Section 1424. Section 63G-6-403 , which is renumbered from Section 63-56-403 is
            70417     renumbered and amended to read:
            70418          [63-56-403].     63G-6-403. Procurement -- Use of recycled goods.
            70419         The procurement officer or other person responsible for purchasing supplies for each
            70420     public procurement unit shall:
            70421         (1) comply with Section [ 63-56-406 ] 63G-6-406 ; and

            70422         (2) (a) maintain for reference a copy of the current listing of recycled items available on
            70423     state contract as issued by the chief procurement officer under Section [ 63-56-204 ] 63G-6-204 ;
            70424     and
            70425         (b) give recycled items consideration when inviting bids and purchasing supplies.
            70426         Section 1425. Section 63G-6-404 , which is renumbered from Section 63-56-404 is
            70427     renumbered and amended to read:
            70428          [63-56-404].     63G-6-404. Preference for providers of state products.
            70429         (1) (a) All public procurement units shall, in all purchases of goods, supplies,
            70430     equipment, materials, and printing, give a reciprocal preference to those bidders offering goods,
            70431     supplies, equipment, materials, or printing produced, manufactured, mined, grown, or
            70432     performed in Utah as against those bidders offering goods, supplies, equipment, materials, or
            70433     printing produced, manufactured, mined, grown, or performed in any state that gives or requires
            70434     a preference to goods, supplies, equipment, materials, or printing produced, manufactured,
            70435     mined, grown, or performed in that state.
            70436         (b) The amount of reciprocal preference shall be equal to the amount of the preference
            70437     applied by the other state for that particular good, supply, equipment, material, or printing.
            70438         (c) (i) The bidder shall certify on the bid that the goods, supplies, equipment, materials,
            70439     or printing offered are produced, manufactured, mined, grown, or performed in Utah.
            70440         (ii) The reciprocal preference is waived if that certification does not appear on the bid.
            70441         (2) (a) If the bidder submitting the lowest responsive and responsible bid offers goods,
            70442     supplies, equipment, materials, or printing produced, manufactured, mined, grown, or
            70443     performed in a state that gives or requires a preference, and if another bidder has submitted a
            70444     responsive and responsible bid offering goods, supplies, equipment, materials, or printing
            70445     produced, manufactured, mined, grown, or performed in Utah, and with the benefit of the
            70446     reciprocal preference, his bid is equal to or less than the original lowest bid, the procurement
            70447     officer shall:
            70448         (i) give notice to the bidder offering goods, supplies, equipment, materials, or printing
            70449     produced, manufactured, mined, grown, or performed in Utah that [he] the bidder qualifies as a

            70450     preferred bidder; and
            70451         (ii) make the purchase from the preferred bidder if, the bidder agrees, in writing, to
            70452     meet the low bid within 72 hours after notification [to him] that [he] the bidder is a preferred
            70453     bidder[, he agrees, in writing, to meet the low bid].
            70454         (b) The procurement officer shall include the exact price submitted by the lowest bidder
            70455     in the notice [he] the procurement officer submits to the preferred bidder.
            70456         (c) The procurement officer may not enter into a contract with any other bidder for the
            70457     purchase until 72 hours have elapsed after notification to the preferred bidder.
            70458         (3) (a) If there is more than one preferred bidder, the procurement officer shall award
            70459     the contract to the willing preferred bidder who was the lowest preferred bidder originally.
            70460         (b) If there were two or more equally low preferred bidders, the procurement officer
            70461     shall comply with the rules adopted by the Procurement Policy Board to determine which bidder
            70462     should be awarded the contract.
            70463         (4) The provisions of this section do not apply if application of this section might
            70464     jeopardize the receipt of federal funds.
            70465         Section 1426. Section 63G-6-405 , which is renumbered from Section 63-56-405 is
            70466     renumbered and amended to read:
            70467          [63-56-405].     63G-6-405. Preference for resident contractors.
            70468         (1) As used in this section, "resident contractor" means a person, partnership,
            70469     corporation, or other business entity that:
            70470         (a) either has its principal place of business in Utah or that employs workers who are
            70471     residents of this state when available; and
            70472         (b) was transacting business on the date when bids for the public contract were first
            70473     solicited.
            70474         (2) (a) When awarding contracts for construction, a public procurement unit shall grant
            70475     a resident contractor a reciprocal preference as against a nonresident contractor from any state
            70476     that gives or requires a preference to contractors from that state.
            70477         (b) The amount of the reciprocal preference shall be equal to the amount of the

            70478     preference applied by the state of the nonresident contractor.
            70479         (3) (a) The bidder shall certify on the bid that [he] the bidder qualifies as a resident
            70480     contractor.
            70481         (b) The reciprocal preference is waived if that certification does not appear on the bid.
            70482         (4) (a) If the contractor submitting the lowest responsive and responsible bid is not a
            70483     resident contractor and has his principal place of business in any state that gives or requires a
            70484     preference to contractors from that state, and if a resident contractor has also submitted a
            70485     responsive and responsible bid, and, with the benefit of the reciprocal preference, the resident
            70486     contractor's bid is equal to or less than the original lowest bid, the procurement officer shall:
            70487         (i) give notice to the resident contractor that [he] the resident contractor qualifies as a
            70488     preferred resident contractor; and
            70489         (ii) issue the contract to the resident contractor if[,] the resident contractor agrees, in
            70490     writing, to meet the low bid within 72 hours after notification [to him] that [he] the resident
            70491     contractor is a preferred resident contractor[, he agrees, in writing, to meet the low bid].
            70492         (b) The procurement officer shall include the exact price submitted by the lowest bidder
            70493     in the notice [he] the procurement officer submits to the preferred resident contractor.
            70494         (c) The procurement officer may not enter into a contract with any other bidder for the
            70495     construction until 72 hours have elapsed after notification to the preferred resident contractor.
            70496         (5) (a) If there is more than one preferred resident contractor, the procurement officer
            70497     shall award the contract to the willing preferred resident contractor who was the lowest
            70498     preferred resident contractor originally.
            70499         (b) If there were two or more equally low preferred resident contractors, the
            70500     procurement officer shall comply with the rules adopted by the Procurement Policy Board to
            70501     determine which bidder should be awarded the contract.
            70502         (6) The provisions of this section do not apply if application of this section might
            70503     jeopardize the receipt of federal funds.
            70504         Section 1427. Section 63G-6-406 , which is renumbered from Section 63-56-406 is
            70505     renumbered and amended to read:

            70506          [63-56-406].     63G-6-406. Preference for recycled paper and paper
            70507      products.
            70508         (1) As used in this section:
            70509         (a) "Chief procurement officer" is the chief procurement officer appointed under
            70510     Section [ 63-56-203 ] 63G-6-203 .
            70511         (b) "Paper" means any newspaper, high-grade office paper, fine paper, bond paper,
            70512     offset paper, xerographic paper, mimeographic paper, duplicator paper, and related types of
            70513     cellulosic material containing not more than 10% by weight or volume of noncellulosic material
            70514     such as laminates, binders, coatings, or saturants.
            70515         (c) "Paper product" means any paper items or commodities, including paper napkins,
            70516     towels, corrugated and other cardboard, toilet tissue, paper and related types of cellulosic
            70517     products containing not more than 10% by weight or volume of noncellulosic material such as
            70518     laminates, binders, coatings, or saturants. "Paper product" does not include preprinted
            70519     cellulosic products such as books, newspapers, calendars, and magazines.
            70520         (d) "Postconsumer waste," "recycled paper," "recycled paper product," and "secondary
            70521     waste paper material" are defined by rule made by the Division of Purchasing, Department of
            70522     Administrative Services. The division rules shall be based on current definitions and standards
            70523     employed by national procurement, product recycling, and other relevant organizations such as
            70524     the federal Environmental Protection Agency.
            70525         (2) Notwithstanding Section [ 63-56-401 ] 63G-6-401 , which requires public
            70526     procurement units to purchase products from the lowest responsible bidder, and subject to
            70527     Subsection (3), every public procurement unit shall give preference to the purchase of paper and
            70528     paper products which are manufactured or produced from recycled materials.
            70529         (3) A public procurement unit shall give preference to purchasing recycled paper and
            70530     recycled paper products unless:
            70531         (a) the bid or purchase price for recycled paper or paper products exceeds by more than
            70532     5% the lowest responsive and responsible bidder whose bid meets the requirements and criteria
            70533     set forth in the invitation for bids;

            70534         (b) there is no recycled paper or paper product reasonably available that meets the
            70535     requirements and criteria set forth in the invitation for bids; or
            70536         (c) the public procurement unit has purchased at least the minimum percentage
            70537     purchase requirement of recycled paper or recycled paper products as provided in Subsection
            70538     (4).
            70539         (4) (a) The minimum percentage purchase requirement for fiscal year 1990-91 is 10%
            70540     of the public procurement unit's projected annual paper and paper product purchases.
            70541         (b) The minimum percentage purchase requirement shall be increased by 5% each fiscal
            70542     year until the minimum percentage purchase requirement is 50%.
            70543         (5) Each public procurement unit shall provide the chief procurement officer with a
            70544     report at the end of each fiscal year documenting:
            70545         (a) the dollar amounts of paper and paper products purchased;
            70546         (b) the dollar amounts of recycled paper and recycled paper products purchased; and
            70547         (c) any additional costs resulting from purchasing recycled paper or recycled paper
            70548     products.
            70549         (6) The chief procurement officer shall provide a written report of the information
            70550     received under Subsection (5) to the Natural Resources, Agriculture, and Environment Interim
            70551     Committee prior to November 30 of each year.
            70552         (7) (a) Each state agency shall separate and collect all types of recyclable paper for
            70553     recycling, except under Subsection (7)(b). The chief procurement officer shall maintain an
            70554     updated list of which papers are recyclable.
            70555         (b) If the state agency conducts an evaluation under Subsection (8) and determines the
            70556     cost of recycling a certain type of recyclable paper is more than 10% greater than the cost of the
            70557     current disposal method, the entity is exempt from the requirements of Subsection (7)(a)
            70558     regarding that type of paper.
            70559         (8) A state agency's evaluation shall:
            70560         (a) determine the types and quantities of recyclable paper in the state agency's current
            70561     waste stream;

            70562         (b) determine the market value of the recyclable paper;
            70563         (c) determine and describe the alternatives for separating recyclable paper from the
            70564     waste stream;
            70565         (d) for each type of paper and for each method of separation, determine the cost of
            70566     separating and collecting the recyclable paper for recycling;
            70567         (e) determine the cost of the current disposal method for each type of recyclable paper;
            70568         (f) for each type of paper, compare the cost of the current disposal method with the
            70569     cost of separating and collecting the paper for recycling; and
            70570         (g) determine the cost of producing the report required under Subsection (13)(b).
            70571         (9) Each evaluation conducted under Subsection (8) shall:
            70572         (a) be in writing;
            70573         (b) justify all estimates;
            70574         (c) be retained by the state agency;
            70575         (d) be accessible to the public for review; and
            70576         (e) be submitted to the chief procurement officer.
            70577         (10) Each state agency conducting an evaluation shall revise the evaluation as
            70578     necessary, at least every 30 months.
            70579         (11) A state agency that is required to separate paper for recycling shall:
            70580         (a) designate an existing employee as a recycling coordinator to organize and
            70581     coordinate the state agency's recycling program;
            70582         (b) establish procedures for separating each type of paper required to be separated for
            70583     recycling;
            70584         (c) establish a system for separating and collecting each type of paper to be recycled,
            70585     which assures the recyclable paper is sold to appropriate industries for reuse or recycling; and
            70586         (d) make participation in the recycling program as easy as practicable for state agency
            70587     personnel by establishing clear policies.
            70588         (12) The monies received from the sale of recyclable paper shall be retained by the
            70589     agency for:

            70590         (a) reimbursement to the state agency for program administration costs incurred as a
            70591     result of recycling, if any; and
            70592         (b) funding recycling incentives programs.
            70593         (13) (a) The recycling coordinator designated in Subsection (11) shall keep records of:
            70594         (i) the quantity of paper recycled by the state agency;
            70595         (ii) the costs incurred by the state agency in recycling paper; and
            70596         (iii) the monies received from the sale of recyclable paper.
            70597         (b) Each recycling coordinator shall provide a written report of the state agency's
            70598     recycling activities including the information required under Subsection (13)(a) before
            70599     September 30 of each year to the chief procurement officer.
            70600         (14) The chief procurement officer shall provide a written report of the information
            70601     received under Subsection (13) to the Natural Resources, Agriculture, and Environment Interim
            70602     Committee prior to November 30 of each year.
            70603         Section 1428. Section 63G-6-407 , which is renumbered from Section 63-56-407 is
            70604     renumbered and amended to read:
            70605          [63-56-407].     63G-6-407. Use of alkaline paper.
            70606         (1) As used in this section, "alkaline paper" means paper that is acid-free, manufactured
            70607     with calcium carbonate as the principal filler, and meets standards for paper approved by the
            70608     American National Standards Institute, National Information Standards Organization, and
            70609     American Society for Testing and Materials.
            70610         (2) (a) Notwithstanding Section [ 63-56-401 ] 63G-6-401 , which requires public
            70611     procurement units to purchase products from the lowest responsible bidder, and except as
            70612     provided in Subsection (2)(b), every public procurement unit shall purchase and use alkaline
            70613     paper.
            70614         (b) A public procurement unit shall purchase alkaline paper unless:
            70615         (i) the bid or purchase price for alkaline paper or alkaline recycled paper exceeds the
            70616     lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth
            70617     in the invitation for bids;

            70618         (ii) there is no alkaline or alkaline recycled paper reasonably available that meets the
            70619     requirements and criteria set forth in the invitation for bids; or
            70620         (iii) other paper products have equal or better quality characteristics than alkaline paper
            70621     and meet standards for paper approved by the American National Standards Institute, National
            70622     Information Standards Organization, and American Society for Testing and Materials.
            70623         (3) The state archivist shall promote the use of alkaline paper within state government,
            70624     local units of government, and school districts.
            70625         Section 1429. Section 63G-6-408 , which is renumbered from Section 63-56-408 is
            70626     renumbered and amended to read:
            70627          [63-56-408].     63G-6-408. Use of competitive sealed proposals in lieu of
            70628      bids -- Procedure.
            70629         (1) (a) When, according to rules established by the Procurement Policy Board, the
            70630     chief procurement officer, the head of a purchasing agency, or a designee of either officer above
            70631     the level of procurement officer determines in writing that the use of competitive sealed bidding
            70632     is either not practicable or not advantageous to the state, a contract may be entered into by
            70633     competitive sealed proposals.
            70634         (b) (i) Competitive sealed proposals may be used for the procurement of services of
            70635     consultants, professionals, and providers as defined by the policy board by rule, whether or not
            70636     the determination described in this subsection has been made.
            70637         (ii) The policy board shall make rules establishing guidelines to assure maximum
            70638     practicable competition in those procurements, including the relative importance, if any, of the
            70639     fee to be charged by an offeror.
            70640         (iii) The rules may provide that it is either not practicable or not advantageous to the
            70641     state to procure certain types of supplies, services, or construction by competitive sealed
            70642     bidding or competitive sealed proposals.
            70643         (2) (a) Proposals shall be solicited through a request for proposals.
            70644         (b) Public notice of the request for proposals shall be given in accordance with policy
            70645     board rules.

            70646         (3) (a) Proposals shall be opened so as to avoid disclosure of contents to competing
            70647     offerors during the process of negotiation.
            70648         (b) A register of proposals shall be prepared in accordance with policy board rules and
            70649     shall be open for public inspection after the contract is awarded.
            70650         (4) The request for proposals shall state the relative importance of price and other
            70651     evaluating factors.
            70652         (5) (a) As provided in the request for proposals and under policy board rules,
            70653     discussions may be conducted with responsible offerors who submit proposals for the purpose
            70654     of assuring full understanding of, and responsiveness to, solicitation requirements.
            70655         (b) Offerors shall be accorded fair and equal treatment with respect to any opportunity
            70656     for discussion and revision of proposals, and revisions may be permitted after submissions and
            70657     before the contract is awarded for the purpose of obtaining best and final offers.
            70658         (c) In conducting discussions, there shall be no disclosure of any information derived
            70659     from proposals submitted by competing offerors.
            70660         (6) (a) Award shall be made to the responsible offeror whose proposal is determined in
            70661     writing to be the most advantageous to the state, taking into consideration price and the
            70662     evaluation factors set forth in the request for proposals.
            70663         (b) No other factors or criteria shall be used in the evaluation.
            70664         (c) The contract file shall contain the basis on which the award is made.
            70665         Section 1430. Section 63G-6-409 , which is renumbered from Section 63-56-409 is
            70666     renumbered and amended to read:
            70667          [63-56-409].     63G-6-409. Small purchases.
            70668         Small purchases shall be defined in, and may be made in accordance with procedures
            70669     established by, rules and regulations; except that the procurement requirement shall not be
            70670     artificially divided so as to constitute a small purchase under this section.
            70671         Section 1431. Section 63G-6-410 , which is renumbered from Section 63-56-410 is
            70672     renumbered and amended to read:
            70673          [63-56-410].     63G-6-410. Circumstances justifying award of contract

            70674      without competition.
            70675         A contract may be awarded for a supply, service, or construction item without
            70676     competition when, under rules and regulations, the chief procurement officer, the head of a
            70677     purchasing agency, or a designee of either officer above the level of procurement officer
            70678     determines in writing that:
            70679         (1) there is only one source for the required supply, service, or construction item; or
            70680         (2) the award to a specific supplier, service provider, or contractor is a condition of a
            70681     donation that will fund the full cost of the supply, service, or construction item.
            70682         Section 1432. Section 63G-6-411 , which is renumbered from Section 63-56-411 is
            70683     renumbered and amended to read:
            70684          [63-56-411].     63G-6-411. Emergency procurements.
            70685         Notwithstanding any other provision of this chapter, when there exists a threat to public
            70686     health, welfare, or safety under emergency conditions as defined in rules and regulations, the
            70687     chief procurement officer, the head of a purchasing agency, or a designee of either officer may
            70688     make or authorize others to make emergency procurements; provided that emergency
            70689     procurements shall be made with as much competition as practicable under the circumstances.
            70690     A written determination of the basis for the emergency and for the selection of the particular
            70691     contractor shall be included in the contract file.
            70692         Section 1433. Section 63G-6-412 , which is renumbered from Section 63-56-412 is
            70693     renumbered and amended to read:
            70694          [63-56-412].     63G-6-412. Cancellation and rejection of bids.
            70695         An invitation for bids, a request for proposals, or other solicitation may be cancelled, or
            70696     any or all bids or proposals may be rejected, in whole or in part, as may be specified in the
            70697     solicitation, when it is in the best interests of the state in accordance with rules and regulations.
            70698     The reasons shall be made part of the contract file.
            70699         Section 1434. Section 63G-6-413 , which is renumbered from Section 63-56-413 is
            70700     renumbered and amended to read:
            70701          [63-56-413].     63G-6-413. Determination of nonresponsibility of bidder.

            70702         A written determination of nonresponsibility of a bidder or offeror shall be made in
            70703     accordance with rules and regulations. The unreasonable failure of a bidder or offeror to
            70704     promptly supply information in connection with an inquiry with respect to responsibility may be
            70705     grounds for a determination of nonresponsibility with respect to the bidder or offeror.
            70706     Information furnished by a bidder or offeror pursuant to this section shall not be disclosed
            70707     outside of the purchasing division or the purchasing agency without prior written consent by the
            70708     bidder or offeror.
            70709         Section 1435. Section 63G-6-414 , which is renumbered from Section 63-56-414 is
            70710     renumbered and amended to read:
            70711          [63-56-414].     63G-6-414. Prequalification of suppliers.
            70712         Prospective suppliers may be prequalified for particular types of supplies, services, and
            70713     construction. Solicitation mailing lists of potential contractors shall include but shall not be
            70714     limited to prequalified suppliers.
            70715         Section 1436. Section 63G-6-415 , which is renumbered from Section 63-56-415 is
            70716     renumbered and amended to read:
            70717          [63-56-415].     63G-6-415. Rules and regulations to determine allowable
            70718      incurred costs -- Required information -- Auditing of books.
            70719         (1) Rules and regulations may be promulgated to set forth cost principles to be used to
            70720     determine the allowability of incurred costs for the purpose of reimbursing costs under contract
            70721     provisions which provide for the reimbursement of costs; provided that if a written
            70722     determination is approved at a level above the procurement officer, the cost principles may be
            70723     modified by contract.
            70724         (2) A person shall, except as provided in Subsection (4), submit cost or pricing data and
            70725     shall certify that, to the best of the person's knowledge and belief, the cost or pricing data
            70726     submitted were accurate, complete, and current as of a mutually determined specified date prior
            70727     to the date of:
            70728         (a) the pricing of any contract awarded by competitive sealed proposals or pursuant to
            70729     the sole source procurement authority, where the total contract price is expected to exceed an

            70730     amount established by rules and regulations; or
            70731         (b) the pricing of any change order which is expected to exceed an amount established
            70732     by rules and regulations.
            70733         (3) Any contract or change order under which a certificate is required shall contain a
            70734     provision that the price to the state, including profit or fee, shall be adjusted to exclude any
            70735     significant sums by which the state finds that the price was increased because the
            70736     contractor-furnished cost or pricing data were inaccurate, incomplete, or not current as of the
            70737     date agreed upon between the parties.
            70738         (4) The requirements of Subsections (2) and (3) need not be applied to contracts:
            70739         (a) where the contract price is based on adequate price competition;
            70740         (b) where the contract price is based on established catalogue prices or market prices;
            70741         (c) where contract prices are set by law or regulation; or
            70742         (d) where it is determined in writing in accordance with rules and regulations that the
            70743     requirements of this section may be waived, and the reasons for such waiver are stated in
            70744     writing.
            70745         (5) The state may, at reasonable times and places, audit the books and records of any
            70746     person who has submitted cost or pricing data pursuant to this section or any contractor or
            70747     subcontractor under any negotiated contract or subcontract other than a firm fixed-price
            70748     contract to the extent that the books and records relate to the cost or pricing data, contract, or
            70749     subcontract. The books and records shall be maintained by the contractor for three years
            70750     following the end of the fiscal year in which final payment is made under the prime contract and
            70751     by the subcontractor for three years following the end of the fiscal year in which final payment is
            70752     made under the subcontract, unless a shorter period is otherwise authorized in writing.
            70753         Section 1437. Section 63G-6-416 , which is renumbered from Section 63-56-416 is
            70754     renumbered and amended to read:
            70755          [63-56-416].     63G-6-416. Cost-plus-a-percentage-of-cost contract
            70756      prohibited.
            70757         (1) Subject to the limitations of this section, any type of contract which will promote

            70758     the best interests of the state may be used; provided that the use of a
            70759     cost-plus-a-percentage-of-cost contract is prohibited. A cost-reimbursement contract may be
            70760     used only when a determination is made in writing that such contract is likely to be less costly to
            70761     the state than any other type or that it is impracticable to obtain the supplies, services, or
            70762     construction required except under such a contract.
            70763         (2) Except with respect to firm fixed-price contracts, no contract type shall be used
            70764     unless it has been determined in writing by the chief procurement officer, the head of a
            70765     purchasing agency, or a designee of either officer that:
            70766         (a) the proposed contractor's accounting system will permit timely development of all
            70767     necessary cost data in the form required by the specific contract type contemplated; and
            70768         (b) the proposed contractor's accounting system is adequate to allocate costs in
            70769     accordance with generally accepted accounting principles.
            70770         Section 1438. Section 63G-6-417 , which is renumbered from Section 63-56-417 is
            70771     renumbered and amended to read:
            70772          [63-56-417].     63G-6-417. Period of time for contract of supplies.
            70773         (1) Unless otherwise provided by law, a contract for supplies or services may be
            70774     entered into for any period of time considered to be in the best interests of the state; provided
            70775     that the term of the contract and conditions of renewal or extension, if any, are included in the
            70776     solicitation and funds are available for the first fiscal period at the time of contracting. Payment
            70777     and performance obligations for succeeding fiscal periods shall be subject to the availability and
            70778     appropriation of funds.
            70779         (2) Prior to the utilization of a multiyear contract, it shall be determined in writing that
            70780     estimated requirements cover the period of the contract and are reasonably firm and continuing
            70781     and that such a contract will serve the best interests of the state by encouraging effective
            70782     competition or otherwise promoting economies in state procurement.
            70783         (3) When funds are not appropriated or otherwise made available to support
            70784     continuation of performance in a subsequent fiscal period, the contract shall be cancelled and
            70785     the contractor shall be reimbursed for the reasonable value of any nonrecurring costs incurred

            70786     but not amortized in the price of the supplies or services delivered under the contract. The cost
            70787     of cancellation may be paid from any appropriations available for that purpose.
            70788         Section 1439. Section 63G-6-418 , which is renumbered from Section 63-56-418 is
            70789     renumbered and amended to read:
            70790          [63-56-418].     63G-6-418. Right of state to inspect place of business of
            70791      contractor or subcontractor.
            70792         The state may, at reasonable times, inspect the part of the plant or place of business of a
            70793     contractor or any subcontractor which is related to the performance of any contract awarded or
            70794     to be awarded by the state.
            70795         Section 1440. Section 63G-6-419 , which is renumbered from Section 63-56-419 is
            70796     renumbered and amended to read:
            70797          [63-56-419].     63G-6-419. Determinations final except when arbitrary and
            70798      capricious.
            70799         The determinations required by Subsections [ 63-56-401 ] 63G-6-401 (6), [ 63-56-408 ]
            70800      63G-6-408 (1) and (6), Sections [ 63-56-410 ] 63G-6-410 , [ 63-56-411 ] 63G-6-411 , [ 63-56-413 ]
            70801      63G-6-413 , Subsection [ 63-56-415 ] 63G-6-415 (4), Section [ 63-56-416 ] 63G-6-416 , and
            70802     Subsection [ 63-56-417 ] 63G-6-417 (2) are final and conclusive unless they are arbitrary and
            70803     capricious or clearly erroneous.
            70804         Section 1441. Section 63G-6-420 , which is renumbered from Section 63-56-420 is
            70805     renumbered and amended to read:
            70806          [63-56-420].     63G-6-420. Factual information to attorney general if
            70807      collusion suspected.
            70808         When for any reason collusion or other anticompetitive practices are suspected among
            70809     bidders or offerors, a notice of the relevant facts shall be transmitted to the attorney general.
            70810         Section 1442. Section 63G-6-421 , which is renumbered from Section 63-56-421 is
            70811     renumbered and amended to read:
            70812          [63-56-421].     63G-6-421. Records of contracts made.
            70813         The chief procurement officer or the head of a purchasing agency shall maintain a record

            70814     listing all contracts made under Section [ 63-56-410 ] 63G-6-410 or [ 63-56-411 ] 63G-6-411 and
            70815     shall maintain the record in accordance with [Title 63, Chapter 2] Title 63G, Chapter 2,
            70816     Government Records Access and Management Act. The record shall contain each contractor's
            70817     name, the amount and type of each contract, and a listing of the supplies, services, or
            70818     construction procured under each contract.
            70819         Section 1443. Section 63G-6-422 , which is renumbered from Section 63-56-422 is
            70820     renumbered and amended to read:
            70821          [63-56-422].     63G-6-422. Exemptions from source selection and contract
            70822      requirements -- Violation penalty.
            70823         The policy board may, by rule, exempt a public procurement unit from the source
            70824     selection and contract award provisions of this part, if it considers that to be in the best
            70825     economic interest of the state.
            70826         On projects where public funds or political subdivisions are involved, the owner shall
            70827     follow the procedures outlined in the Utah Procurement Code when determining or selecting
            70828     their agent or construction manager. However, no exemption shall be permitted that allows
            70829     any political subdivision of this state to negotiate, enter into, or cause to be negotiated prior to
            70830     open bidding for the prime contracting agent any predetermined agreement or arrangement
            70831     which causes interference with the traditional fair competitive bidding process or the rights of
            70832     employees under state and federal law. Any agreement or arrangement entered into in violation
            70833     of this section is unenforceable and void ab initio and the parties to such an agreement or
            70834     arrangement are subject to a class B misdemeanor penalty.
            70835         This provision shall not apply to any political subdivision, agency, or department of this
            70836     state, if, as a condition of a federal grant, there is a requirement that a schedule of
            70837     predetermined wages be included in the contract.
            70838         Section 1444. Section 63G-6-423 , which is renumbered from Section 63-56-423 is
            70839     renumbered and amended to read:
            70840          [63-56-423].     63G-6-423. Purchase of prison industry goods.
            70841         (1) All public procurement units shall purchase goods and services produced by the

            70842     Utah Correctional Industries Division as provided by this section, which is an exemption from
            70843     this chapter. All political subdivisions of the state may purchase these goods and services and
            70844     are encouraged to do so when feasible.
            70845         (2) By July 1 of each year, the director of the Utah Correctional Industries shall publish
            70846     and distribute to all state agencies and interested political subdivisions a catalog of goods and
            70847     services provided by the Correctional Industries Division. The catalog shall include a
            70848     description and price of each item offered for sale. The catalog shall be updated and revised
            70849     during the year as the director considers necessary.
            70850         (3) (a) State departments, agencies, and institutions may not purchase any goods or
            70851     services provided by the Correctional Industries Division from any other source unless it has
            70852     been determined in writing by the director of Correctional Industries and the state procurement
            70853     officer or in the case of institutions of higher education, the institutional procurement officer,
            70854     that purchase from the Correctional Industries Division is not feasible due to one of the
            70855     following circumstances:
            70856         (i) the good or service offered by the division does not meet the reasonable
            70857     requirements of the purchasing agency;
            70858         (ii) the good or service cannot be supplied within a reasonable time by the division; or
            70859         (iii) the cost of the good or service, including basic price, transportation costs, and
            70860     other expenses of acquisition, is not competitive with the cost of procuring the item from
            70861     another source.
            70862         (b) In cases of disagreement, the decision may be appealed to a board consisting of the
            70863     director of the Department of Corrections, the director of Administrative Services, and a neutral
            70864     third party agreed upon by the other two members or, in the case of institutions of higher
            70865     education, the president of the involved institution shall make the final decision.
            70866         Section 1445. Section 63G-6-424 , which is renumbered from Section 63-56-424 is
            70867     renumbered and amended to read:
            70868          [63-56-424].     63G-6-424. Counties and municipalities eligible to
            70869      participate in state agreements, contracts, and surplus property program.

            70870         Utah counties, municipalities, and local public procurement units may purchase from or
            70871     otherwise participate in state public procurement unit agreements and contracts.
            70872         Section 1446. Section 63G-6-425 , which is renumbered from Section 63-56-425 is
            70873     renumbered and amended to read:
            70874          [63-56-425].     63G-6-425. Purchase from community rehabilitation
            70875      programs.
            70876         (1) As used in this section:
            70877         (a) "Board" means the Purchasing from Persons with Disabilities Advisory Board
            70878     created under this section.
            70879         (b) "Central not-for-profit association" means a group of experts designated by the
            70880     board to do the following, under guidelines established by the board:
            70881         (i) assist the board with its functions; and
            70882         (ii) facilitate the implementation of board policies.
            70883         (c) (i) "Community rehabilitation program" means a program that is operated primarily
            70884     for the purpose of the employment and training of persons with a disability by a government
            70885     agency or qualified nonprofit organization which is an income tax exempt organization under 26
            70886     U.S.C. Sec. 501(c)(3) of the Internal Revenue Code.
            70887         (ii) A community rehabilitation program:
            70888         (A) maintains an employment ratio of at least 75% of the program employees under the
            70889     procurement contract in question have severe disabilities;
            70890         (B) (I) complies with any applicable occupational health and safety standards prescribed
            70891     by the United States Department of Labor; or
            70892         (II) is a supported employment program approved by the Utah State Office of
            70893     Rehabilitation;
            70894         (C) has its principal place of business in Utah;
            70895         (D) produces any good provided under this section in Utah; and
            70896         (E) provides any service that is provided by individuals with a majority of whom
            70897     domiciled in Utah.

            70898         (d) "Person with a disability" means a person with any disability as defined by and
            70899     covered under the Americans with Disabilities Act of 1990, 42 U.S.C. 12102.
            70900         (2) (a) There is created the Purchasing from Persons with Disabilities Advisory Board
            70901     within the Division of Purchasing and General Services of the Department of Administrative
            70902     Services. The board shall be composed of the following three members:
            70903         (i) the director of the Division of Purchasing and General Services created under
            70904     Section 63A-2-101 or a designee;
            70905         (ii) the executive director of the Utah State Office of Rehabilitation created under
            70906     Section 53A-24-103 or a designee; and
            70907         (iii) a representative of the private business community who shall be appointed to a
            70908     three-year term by the governor with the advice and consent of the Senate.
            70909         (b) The board shall meet, as needed, to facilitate the procurement of goods and services
            70910     from community rehabilitation programs by a public procurement unit under this chapter by:
            70911         (i) identifying goods and services that are available from community rehabilitation
            70912     programs according to the requirements under Subsection (4);
            70913         (ii) approving prices in accordance with Subsection (4)(c) for goods and services that
            70914     are identified under Subsection (2)(b)(i);
            70915         (iii) developing, maintaining, and approving a preferred procurement contract list of
            70916     goods and services identified and priced under Subsections (2)(b)(i) and (ii);
            70917         (iv) reviewing bids received by a community rehabilitation program; and
            70918         (v) awarding and renewing specified contracts for set contract times, without
            70919     competitive bidding, for the purchase of goods and services under Subsection (4).
            70920         (c) The provisions of Subsections (2)(b) and (4)(a) are an exception to the procurement
            70921     provisions under this chapter.
            70922         (3) (a) The board may designate a central not-for-profit association, appoint its
            70923     members, and establish guidelines for its duties.
            70924         (b) The designated central not-for-profit association serves at the pleasure of the board
            70925     and the central not-for-profit association or its individual members may be removed by the

            70926     board at any time by a majority vote of the board.
            70927         (c) Subject to the board guidelines and discretion, a designated central not-for-profit
            70928     association may be assigned to perform the following duties:
            70929         (i) identify qualified community rehabilitation programs and the goods and services that
            70930     they provide or have the potential to provide;
            70931         (ii) help ensure that goods and services are provided at reasonable quality and delivery
            70932     levels;
            70933         (iii) recommend pricing for goods and services;
            70934         (iv) reviewing bids and recommending the award of contracts under the board's
            70935     direction;
            70936         (v) collecting and reporting program data to the board and to the division; and
            70937         (vi) other duties specified by the board.
            70938         (4) Except as provided under Subsection (6), notwithstanding any provision in this
            70939     chapter to the contrary, each public procurement unit shall purchase goods and services
            70940     produced by a community rehabilitation program using the preferred procurement contract list
            70941     approved under Subsection (2)(b)(iii) if:
            70942         (a) the good or service offered for sale by a community rehabilitation program
            70943     reasonably conforms to the needs and specifications of the public procurement unit;
            70944         (b) the community rehabilitation program can supply the good or service within a
            70945     reasonable time; and
            70946         (c) the price of the good or service is reasonably competitive with the cost of procuring
            70947     the good or service from another source.
            70948         (5) Each community rehabilitation program:
            70949         (a) may submit a bid to the board at any time and not necessarily in response to a
            70950     request for bids; and
            70951         (b) shall certify on any bid it submits to the board or to a public procurement unit under
            70952     this section that it is claiming a preference under this section.
            70953         (6) During a fiscal year, the requirement for a public procurement unit to purchase

            70954     goods and services produced by a community rehabilitation program under the preferred
            70955     procurement list under Subsection (4) does not apply if the Division of Purchasing and General
            70956     Services determines that the total amount of procurement contracts with community
            70957     rehabilitation programs has reached $5 million for that fiscal year.
            70958         (7) In the case of conflict between a purchase under this section and a purchase under
            70959     Section [ 63-56-423 ] 63G-6-423 , this section prevails.
            70960         Section 1447. Section 63G-6-426 , which is renumbered from Section 63-56-426 is
            70961     renumbered and amended to read:
            70962          [63-56-426].     63G-6-426. Tie bids -- Preference for providers of state
            70963      products -- Resolution of tie bids -- Record of tie bids.
            70964         (1) As used in this section:
            70965         (a) (i) "Commodity" means a good, product, material, or item, including an agricultural,
            70966     manufacturing, or mining product;
            70967         (ii) "Commodity" does not include:
            70968         (A) a service; or
            70969         (B) construction materials or services.
            70970         (b) "Provider of state products" means a bidder offering goods, supplies, products,
            70971     materials, or items that are produced, manufactured, mined, or grown in the state.
            70972         (c) "Tie bid" means a low responsive bid from a responsive bidder that is identical in
            70973     price to a responsive bid from another responsive bidder.
            70974         (2) In the event of a tie bid for the provision of a commodity where only one of the
            70975     bidders having the low responsive bid is a provider of state products, a public procurement unit
            70976     shall award the contract to the provider of state products if:
            70977         (a) the quality of the commodity offered by the provider of state products is equal to or
            70978     greater than the quality of the commodity offered by the other tied bidders;
            70979         (b) the commodity offered by the provider of state products is suitable for the use
            70980     required by the public procurement unit; and
            70981         (c) the provider of state products is able to produce the commodity in sufficient

            70982     quantity.
            70983         (3) Unless Subsection (2) applies, a public procurement unit shall make an award on a
            70984     tie bid by using one of the following procedures, which shall be selected in the sole discretion of
            70985     the procurement officer:
            70986         (a) where a tie bid includes the cost of delivery, awarding the contract to the bidder
            70987     closest to the point of delivery;
            70988         (b) awarding the contract to the identical bidder who received the previous award, and
            70989     continue to award succeeding contracts to the same bidder so long as all low bids are tie bids;
            70990         (c) awarding the contract to the bidder with the earliest delivery date;
            70991         (d) if the price of the tie bid is considered excessive or the bids are unsatisfactory for
            70992     another reason, rejecting all bids and negotiating a more favorable contact on the open market;
            70993     or
            70994         (e) if the procurement officer determines in writing that no method under this
            70995     Subsection (3) will equitably resolve the tie bid, awarding the contract by drawing lots.
            70996         (4) Awards of tie bids shall not be made by:
            70997         (a) dividing business among tied bidders; or
            70998         (b) drawing lots, except as provided in Subsection (3)(e).
            70999         (5) (a) A state public procurement unit shall retain a record of each invitation for bids
            71000     on which a tie bid is received, that shall include the following information:
            71001         (i) the invitation for bids;
            71002         (ii) the supply, service, or construction item requested by the invitation for bids;
            71003         (iii) all the bidders and the prices submitted;
            71004         (iv) the procedure used to resolve the tie bid; and
            71005         (v) the results of the procedure used to resolve the tie bid, including the name of the
            71006     bidder awarded the contract.
            71007         (b) A copy of the record maintained under Subsection (5)(a) shall be provided to the
            71008     attorney general for all contracts having a tie bid in excess of $50,000.
            71009         Section 1448. Section 63G-6-501 , which is renumbered from Section 63-56-501 is

            71010     renumbered and amended to read:
            71011     
Part 5. Procurement of Construction

            71012          [63-56-501].     63G-6-501. Alternative methods of construction contracting
            71013      management.
            71014         (1) (a) Rules shall provide as many alternative methods of construction contracting
            71015     management as determined to be feasible.
            71016         (b) These rules shall:
            71017         (i) grant to the chief procurement officer or the head of the purchasing agency
            71018     responsible for carrying out the construction project the discretion to select the appropriate
            71019     method of construction contracting management for a particular project; and
            71020         (ii) require the procurement officer to execute and include in the contract file a written
            71021     statement setting forth the facts which led to the selection of a particular method of construction
            71022     contracting management for each project.
            71023         (c) Before choosing a construction contracting management method, the chief
            71024     procurement officer or the head of the purchasing agency responsible for carrying out the
            71025     construction project shall consider the following factors:
            71026         (i) when the project must be ready to be occupied;
            71027         (ii) the type of project;
            71028         (iii) the extent to which the requirements of the procuring agencies and the ways in
            71029     which they are to be met are known;
            71030         (iv) the location of the project;
            71031         (v) the size, scope, complexity, and economics of the project;
            71032         (vi) the source of funding and any resulting constraints necessitated by the funding
            71033     source;
            71034         (vii) the availability, qualification, and experience of state personnel to be assigned to
            71035     the project and how much time the state personnel can devote to the project; and
            71036         (viii) the availability, qualifications, and experience of outside consultants and
            71037     contractors to complete the project under the various methods being considered.

            71038         (2) (a) Rules adopted by state public procurement units and local public procurement
            71039     units to implement this section may authorize the use of a Construction Manager/General
            71040     Contractor as one method of construction contracting management.
            71041         (b) Those rules shall require that:
            71042         (i) the Construction Manager/General Contractor shall be selected using one of the
            71043     source selection methods provided for in Part 4, Source Selections and Contract Formation, and
            71044     Section [ 63-56-502 ] 63G-6-502 ; and
            71045         (ii) when entering into any subcontract that was not specifically included in the
            71046     Construction Manager/General Contractor's cost proposal submitted under the requirements of
            71047     Subsection (2)(b)(i), the Construction Manager/General Contractor shall procure that
            71048     subcontractor by using one of the source selection methods provided for in Part 4, Source
            71049     Selections and Contract Formation, in the same manner as if the subcontract work was procured
            71050     directly by the state.
            71051         (3) Procurement rules adopted by the State Building Board under Subsection (1) for
            71052     state building construction projects may authorize the use of a design-build provider as one
            71053     method of construction contracting management.
            71054         Section 1449. Section 63G-6-502 , which is renumbered from Section 63-56-502 is
            71055     renumbered and amended to read:
            71056          [63-56-502].     63G-6-502. Procurement of design-build transportation
            71057      project contracts.
            71058         (1) As used in this section:
            71059         (a) "Design-build transportation project contract" means the procurement of both the
            71060     design and construction of a transportation project in a single contract with a company or
            71061     combination of companies capable of providing the necessary engineering services and
            71062     construction.
            71063         (b) "Transportation agency" means:
            71064         (i) the Department of Transportation;
            71065         (ii) a county of the first or second class, as defined in Section 17-50-501 ;

            71066         (iii) a municipality of the first class, as defined in Section 10-2-301 ;
            71067         (iv) a public transit district that has more than 200,000 people residing within its
            71068     boundaries; and
            71069         (v) a public airport authority.
            71070         (2) Except as provided in Subsection (3), a transportation agency may award a
            71071     design-build transportation project contract for any transportation project that has an estimated
            71072     cost of at least $50,000,000 by following the requirements of this section.
            71073         (3) (a) The Department of Transportation:
            71074         (i) may award a design-build transportation project contract for any transportation
            71075     project by following the requirements of this section; and
            71076         (ii) shall make rules, by following the procedures and requirements of [Title 63, Chapter
            71077     46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing requirements for
            71078     the procurement of its design-build transportation project contracts in addition to those required
            71079     by this section.
            71080         (b) A public transit district that has more than 200,000 people residing within its
            71081     boundaries:
            71082         (i) may award a design-build transportation project contract for any transportation
            71083     project by following the requirements of this section; and
            71084         (ii) shall pass ordinances or a resolution establishing requirements for the procurement
            71085     of its design-build transportation project contracts in addition to those required by this section.
            71086         (c) A design-build transportation project contract authorized under this Subsection (3)
            71087     is not subject to the estimated cost threshold under Subsection (2).
            71088         (4) (a) Before entering a design-build transportation project contract, a transportation
            71089     agency may issue a request for qualifications to prequalify potential contractors.
            71090         (b) Public notice of the request for qualifications shall be given in accordance with
            71091     policy board rules.
            71092         (c) A transportation agency shall require, as part of the qualifications specified in the
            71093     request for qualifications, that potential contractors at least demonstrate their:

            71094         (i) construction experience;
            71095         (ii) design experience;
            71096         (iii) financial, manpower, and equipment resources available for the project; and
            71097         (iv) experience in other design-build transportation projects with attributes similar to
            71098     the project being procured.
            71099         (d) The request for qualifications shall identify the number of eligible competing
            71100     proposers that the transportation agency will select to submit a proposal, which must be at least
            71101     two.
            71102         (5) (a) The transportation agency shall:
            71103         (i) evaluate the responses received from the request for qualifications;
            71104         (ii) select from their number those qualified to submit proposals; and
            71105         (iii) invite those respondents to submit proposals based upon the transportation agency's
            71106     request for proposals.
            71107         (b) (i) Except as provided in Subsection (5)(b)(ii), if the transportation agency fails to
            71108     receive at least two qualified eligible competing proposers, the transportation agency shall
            71109     readvertise the project.
            71110         (ii) Until July 1, 2010, a transportation agency may award a contract for a
            71111     transportation project that has an estimated cost of $5,000,000 or less to a qualified eligible
            71112     proposer if:
            71113         (A) only a single proposal is received; and
            71114         (B) the transportation agency determines that:
            71115         (I) the proposal is advantageous to the state; and
            71116         (II) the proposal price is reasonable.
            71117         (iii) The Transportation Interim Committee and Government Operations Interim
            71118     Committee of the Legislature shall review Subsection (5)(b)(ii) prior to November 30, 2009.
            71119         (6) The transportation agency shall issue a request for proposals to those qualified
            71120     respondents that:
            71121         (a) includes a scope of work statement constituting an information for proposal that

            71122     may include:
            71123         (i) preliminary design concepts;
            71124         (ii) design criteria, needs, and objectives;
            71125         (iii) warranty and quality control requirements;
            71126         (iv) applicable standards;
            71127         (v) environmental documents;
            71128         (vi) constraints;
            71129         (vii) time expectations or limitations;
            71130         (viii) incentives or disincentives; and
            71131         (ix) other special considerations;
            71132         (b) requires submitters to provide:
            71133         (i) a sealed cost proposal;
            71134         (ii) a critical path matrix schedule, including cash flow requirements;
            71135         (iii) proposal security; and
            71136         (iv) other items required by the department for the project; and
            71137         (c) may include award of a stipulated fee to be paid to submitters who submit
            71138     unsuccessful proposals.
            71139         (7) The transportation agency shall:
            71140         (a) evaluate the submissions received in response to the request for proposals from the
            71141     prequalified proposers;
            71142         (b) comply with rules relating to discussion of proposals, best and final offers, and
            71143     evaluations of the proposals submitted; and
            71144         (c) after considering price and other identified factors, award the contract to the
            71145     responsible proposer whose proposal is most advantageous to the state.
            71146         Section 1450. Section 63G-6-503 , which is renumbered from Section 63-56-502.5 is
            71147     renumbered and amended to read:
            71148          [63-56-502.5].     63G-6-503. Definitions -- Procurement of tollway
            71149      development agreements.

            71150         (1) As used in this section:
            71151         (a) "Department" means the Department of Transportation.
            71152         (b) "Tollway development agreement" has the same meaning as defined in Section
            71153      72-6-202 .
            71154         (2) The department and the Transportation Commission:
            71155         (a) may solicit a tollway development agreement proposal by following the
            71156     requirements of this section;
            71157         (b) may award a solicited tollway development agreement contract for any tollway
            71158     project by following the requirements of this section; and
            71159         (c) shall make rules, by following the procedures and requirements of [Title 63, Chapter
            71160     46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing requirements for
            71161     the procurement of tollway development agreement proposals in addition to those required by
            71162     this section.
            71163         (3) (a) Before entering into a tollway development agreement, the department may
            71164     issue a request for qualifications to prequalify potential contractors.
            71165         (b) Public notice of the request for qualifications shall be given in accordance with
            71166     policy board rules.
            71167         (c) The department shall require, as part of the qualifications specified in the request for
            71168     qualifications, that potential contractors at least provide:
            71169         (i) a demonstration of their experience with other transportation concession projects
            71170     with attributes similar to the project being procured;
            71171         (ii) a financial statement of the firm or consortium of firms making the proposal;
            71172         (iii) a conceptual project development plan and financing plan;
            71173         (iv) the legal structure of the firm or consortium of firms making the proposal;
            71174         (v) the organizational structure for the project; and
            71175         (vi) a statement describing why the firm or consortium of firms is best qualified for the
            71176     project.
            71177         (d) The request for qualifications shall identify the number of eligible competing

            71178     proposers that the department will select to submit a proposal.
            71179         (4) The department shall:
            71180         (a) evaluate the responses received from the request for qualifications;
            71181         (b) select from their number those qualified to submit proposals; and
            71182         (c) invite those respondents to submit proposals based upon the department's request
            71183     for proposals.
            71184         (5) The department shall issue a request for proposals to those qualified respondents
            71185     that may require, as appropriate for the procurement:
            71186         (a) a description of the proposed project or projects;
            71187         (b) a financial plan for the project, including:
            71188         (i) the anticipated financial commitment of all parties;
            71189         (ii) equity, debt, and other financing mechanisms;
            71190         (iii) an analysis of the projected return, rate of return, or both; and
            71191         (iv) the monetary benefit and other value to a government entity;
            71192         (c) assumptions about user fees or toll rates;
            71193         (d) a project development and management plan, including:
            71194         (i) the contracting structure;
            71195         (ii) the plan for quality management;
            71196         (iii) the proposed toll enforcement plan; and
            71197         (iv) the plan for safety management; and
            71198         (e) the proposal to comply with the minimum guidelines for tollway development
            71199     agreement proposals under Section 72-6-204 .
            71200         (6) The department and the Transportation Commission:
            71201         (a) shall evaluate the submissions received in response to the request for proposals from
            71202     the prequalified proposers;
            71203         (b) shall comply with rules relating to discussion of proposals, best and final offers, and
            71204     evaluations of the proposals submitted; and
            71205         (c) may after considering price and other identified factors and complying with the

            71206     requirements of Section 72-6-206 , award the contract to the responsible proposer whose
            71207     proposal is most advantageous to the state.
            71208         Section 1451. Section 63G-6-504 , which is renumbered from Section 63-56-503 is
            71209     renumbered and amended to read:
            71210          [63-56-503].     63G-6-504. Bid security requirements -- Directed suretyship
            71211      prohibited -- Penalty.
            71212         (1) Bid security in amount equal to at least 5% of the amount of the bid shall be
            71213     required for all competitive sealed bidding for construction contracts. Bid security shall be a
            71214     bond provided by a surety company authorized to do business in this state, the equivalent in
            71215     cash, or any other form satisfactory to the state.
            71216         (2) When a bidder fails to comply with the requirement for bid security set forth in the
            71217     invitation for bids, the bid shall be rejected unless, pursuant to rules, it is determined that the
            71218     failure to comply with the security requirements is nonsubstantial.
            71219         (3) After the bids are opened, they shall be irrevocable for the period specified in the
            71220     invitation for bids, except as provided in Subsection [ 63-56-401 ] 63G-6-401 (6). If a bidder is
            71221     permitted to withdraw a bid before award, no action shall be taken against the bidder or the bid
            71222     security.
            71223         (4) (a) When issuing an invitation for a bid under this chapter, the chief procurement
            71224     officer or the head of the purchasing agency responsible for carrying out a construction project
            71225     may not require a person or entity who is bidding for a contract to obtain a bond of the type
            71226     referred to in Subsection (1) from a specific insurance or surety company, producer, agent, or
            71227     broker.
            71228         (b) A person who violates Subsection (4)(a) is guilty of an infraction.
            71229         Section 1452. Section 63G-6-505 , which is renumbered from Section 63-56-504 is
            71230     renumbered and amended to read:
            71231          [63-56-504].     63G-6-505. Bonds necessary when contract is awarded --
            71232      Waiver -- Action -- Attorney fees.
            71233         (1) When a construction contract is awarded under this chapter, the contractor to

            71234     whom the contract is awarded shall deliver the following bonds or security to the state, which
            71235     shall become binding on the parties upon the execution of the contract:
            71236         (a) a performance bond satisfactory to the state that is in an amount equal to 100% of
            71237     the price specified in the contract and is executed by a surety company authorized to do
            71238     business in this state or any other form satisfactory to the state; and
            71239         (b) a payment bond satisfactory to the state that is in an amount equal to 100% of the
            71240     price specified in the contract and is executed by a surety company authorized to do business in
            71241     this state or any other form satisfactory to the state, which is for the protection of each person
            71242     supplying labor, service, equipment, or material for the performance of the work provided for in
            71243     the contract.
            71244         (2) (a) When a construction contract is awarded under this chapter, the chief
            71245     procurement officer or the head of the purchasing agency responsible for carrying out a
            71246     construction project may not require a contractor to whom a contract is awarded to obtain a
            71247     bond of the types referred to in Subsection (1) from a specific insurance or surety company,
            71248     producer, agent, or broker.
            71249         (b) A person who violates Subsection (2)(a) is guilty of an infraction.
            71250         (3) Rules may provide for waiver of the requirement of a bid, performance, or payment
            71251     bond for circumstances in which the state considers any or all of the bonds to be unnecessary to
            71252     protect the state.
            71253         (4) A person shall have a right of action on a payment bond under this section for any
            71254     unpaid amount due him if:
            71255         (a) [he] the person has furnished labor, service, equipment, or material for the work
            71256     provided for in the contract for which the payment bond is furnished under this section; and
            71257         (b) [he] the person has not been paid in full within 90 days after the last date on which
            71258     [he] the person performed the labor or service or supplied the equipment or material for which
            71259     the claim is made.
            71260         (5) An action upon a payment bond shall be brought in a court of competent jurisdiction
            71261     in any county where the construction contract was to be performed and not elsewhere. The

            71262     action is barred if not commenced within one year after the last day on which the claimant
            71263     performed the labor or service or supplied the equipment or material on which the claim is
            71264     based. The obligee named in the bond need not be joined as a party to the action.
            71265         (6) In any suit upon a payment bond, the court shall award reasonable [attorneys']
            71266     attorney fees to the prevailing party, which fees shall be taxed as costs in the action.
            71267         Section 1453. Section 63G-6-506 , which is renumbered from Section 63-56-505 is
            71268     renumbered and amended to read:
            71269          [63-56-505].     63G-6-506. Preliminary notice requirement.
            71270         (1) Any person furnishing labor, service, equipment, or material for which a payment
            71271     bond claim may be made under this chapter shall provide preliminary notice to the designated
            71272     agent as prescribed by Section 38-1-32 , except that this section does not apply:
            71273         (a) to a person performing labor for wages; or
            71274         (b) if a notice of commencement is not filed as prescribed in Section 38-1-31 for the
            71275     project or improvement for which labor, service, equipment, or material is furnished.
            71276         (2) Any person who fails to provide the preliminary notice required by Subsection (1)
            71277     may not make a payment bond claim under this chapter.
            71278         (3) The preliminary notice required by Subsection (1) must be provided prior to
            71279     commencement of any action on the payment bond.
            71280         Section 1454. Section 63G-6-507 , which is renumbered from Section 63-56-506 is
            71281     renumbered and amended to read:
            71282          [63-56-506].     63G-6-507. Form of bonds -- Effect of certified copy.
            71283         The form of the bonds required by this part shall be established by rules and regulations.
            71284     Any person may obtain from the state a certified copy of a bond upon payment of the cost of
            71285     reproduction of the bond and postage, if any. A certified copy of a bond shall be prima facie
            71286     evidence of the contents, execution, and delivery of the original.
            71287         Section 1455. Section 63G-6-601 , which is renumbered from Section 63-56-601 is
            71288     renumbered and amended to read:
            71289     
Part 6. Contract Clauses

            71290          [63-56-601].     63G-6-601. Required contract clauses -- Computation of
            71291      price adjustments -- Use of rules and regulations.
            71292         (1) Rules and regulations shall require for state construction contracts and may permit
            71293     or require for state contracts for supplies and services the inclusion of clauses providing for
            71294     adjustments in prices, time of performance, or other appropriate contract provisions, and
            71295     covering the following subjects:
            71296         (a) the unilateral right of the state to order in writing changes in the work within the
            71297     scope of the contract and changes in the time of performance of the contract that do not alter
            71298     the scope of the contract work;
            71299         (b) variations occurring between estimated quantities of work in a contract and actual
            71300     quantities;
            71301         (c) suspension of work ordered by the state; and
            71302         (d) site conditions differing from those indicated in the construction contract, or
            71303     ordinarily encountered, except that differing site conditions clauses required by the rules and
            71304     regulations need not be included in a construction contract when the contract is negotiated,
            71305     when the contractor provides the site or design, or when the parties have otherwise agreed with
            71306     respect to the risk of differing site conditions.
            71307         (2) Adjustments in price pursuant to clauses promulgated under Subsection (1) shall be
            71308     computed in one or more of the following ways:
            71309         (a) by agreement on a fixed price adjustment before commencement of the pertinent
            71310     performance or as soon thereafter as practicable;
            71311         (b) by unit prices specified in the contract or subsequently agreed upon;
            71312         (c) by the costs attributable to the events or situations under the clauses with
            71313     adjustment of profit or fee, all as specified in the contract or subsequently agreed upon;
            71314         (d) in any other manner as the contracting parties may mutually agree; or
            71315         (e) in the absence of agreement by the parties, by a unilateral determination by the state
            71316     of the costs attributable to the events or situations under the clauses with adjustment of profit or
            71317     fee, all as computed by the state in accordance with applicable sections of the rules and

            71318     regulations issued under Subsection [ 63-56-415 ] 63G-6-415 (1) and subject to the provisions of
            71319     Part 8, Legal and Contractual Remedies.
            71320         (3) A contractor shall be required to submit cost or pricing data if any adjustment in
            71321     contract price is subject to the provisions of Section [ 63-56-415 ] 63G-6-415 .
            71322         (4) Rules and regulations shall require for state construction contracts and may permit
            71323     or require for state contracts for supplies and services the inclusion of clauses providing for
            71324     appropriate remedies and covering at least the following subjects:
            71325         (a) liquidated damages as appropriate;
            71326         (b) specified excuses for delay or nonperformance;
            71327         (c) termination of the contract for default; and
            71328         (d) termination of the contract in whole or in part for the convenience of the state.
            71329         (5) The contract clauses promulgated under this section shall be set forth in rules and
            71330     regulations. However, the chief procurement officer or the head of a purchasing agency may
            71331     modify the clauses for inclusion in any particular contract. Any variations shall be supported by
            71332     a written determination that describes the circumstances justifying the variations, and notice of
            71333     any material variation shall be included in the invitation for bids or request for proposals.
            71334         Section 1456. Section 63G-6-602 , which is renumbered from Section 63-56-602 is
            71335     renumbered and amended to read:
            71336          [63-56-602].     63G-6-602. Certification of change order.
            71337         Under a construction contract, any change order which increases the contract amount
            71338     shall be subject to prior written certification that the change order is within the determined
            71339     project or contract budget. The certification shall be made by the fiscal officer of the entity
            71340     responsible for funding the project or the contract or other official responsible for monitoring
            71341     and reporting upon the status of the costs of the total project or contract budget. If the
            71342     certification discloses a resulting increase in the total project or contract budget, the
            71343     procurement officer shall not execute or make the change order unless sufficient funds are
            71344     available or the scope of the project or contract is adjusted to permit the degree of completion
            71345     feasible within the total project or contract budget as it existed prior to the change order under

            71346     consideration. However, with respect to the validity, as to the contractor, of any executed
            71347     change order upon which the contractor has reasonably relied, it shall be presumed that there
            71348     has been compliance with the provisions of this section.
            71349         Section 1457. Section 63G-6-701 , which is renumbered from Section 63-56-701 is
            71350     renumbered and amended to read:
            71351     
Part 7. Architect-Engineer Services

            71352          [63-56-701].     63G-6-701. Policy regarding architect-engineer services.
            71353         It is the policy of this state to publicly announce all requirements for architect-engineer
            71354     services and to negotiate contracts for architect-engineer services on the basis of demonstrated
            71355     competence and qualification for the type of services required, and at fair and reasonable prices.
            71356     Architect-engineer services shall be procured as provided in this part except as authorized by
            71357     Sections [ 63-56-409 ] 63G-6-409 through [ 63-56-411 ] 63G-6-411 . This part does not affect
            71358     the authority of, and does not apply to procedures undertaken by, a public procurement unit to
            71359     obtain the services of architects or engineers in the capacity of employees of such unit.
            71360         Section 1458. Section 63G-6-702 , which is renumbered from Section 63-56-702 is
            71361     renumbered and amended to read:
            71362          [63-56-702].     63G-6-702. Selection committee for architect-engineer
            71363      services.
            71364         In the procurement of architect-engineer services, the chief procurement officer or the
            71365     head of a purchasing agency shall encourage firms engaged in the lawful practice of their
            71366     profession to submit annually a statement of qualifications and performance data. The Building
            71367     Board shall be the selection committee for architect-engineer services contracts under its
            71368     authority. Selection committees for architect-engineer services contracts not under the authority
            71369     of the Building Board shall be established in accordance with rules and regulations promulgated
            71370     by the policy board. Selection committees shall evaluate current statements of qualifications and
            71371     performance data on file with the state, together with those that may be submitted by other
            71372     firms in response to the announcement of the proposed contract. Selection committees shall
            71373     consider no less than three firms and then shall select therefrom, based upon criteria established

            71374     and published by the selection committees, no less than three of the firms considered to be the
            71375     most highly qualified to provide the services required.
            71376         Section 1459. Section 63G-6-703 , which is renumbered from Section 63-56-703 is
            71377     renumbered and amended to read:
            71378          [63-56-703].     63G-6-703. Selection as part of design-build or lease.
            71379         Notwithstanding any other provision of this chapter, architect-engineer services may be
            71380     procured under Title 63A, Chapter 5, State Building Board - Division of Facilities Construction
            71381     and Management, as part of the services obtained in a design-build contract or as part of the
            71382     services obtained in a lease contract for real property, provided that the qualifications of those
            71383     providing the architect-engineer services are part of the consideration in the selection process.
            71384         Section 1460. Section 63G-6-704 , which is renumbered from Section 63-56-704 is
            71385     renumbered and amended to read:
            71386          [63-56-704].     63G-6-704. Determination of compensation for
            71387      architect-engineer services.
            71388         The procurement officer shall award a contract to a qualified firm at compensation
            71389     which the procurement officer determines in writing to be fair and reasonable to the state. In
            71390     making this decision, the procurement officer shall take into account the estimated value, the
            71391     scope, and complexity, and the professional nature of the services to be rendered. Should the
            71392     procurement officer be unable to agree to a satisfactory contract with the firm first selected, at a
            71393     price the procurement officer determines to be fair and reasonable to the state, discussions with
            71394     that firm shall be formally terminated. The procurement officer shall then undertake discussions
            71395     with a second qualified firm. Failing accord with the second firm, the procurement officer shall
            71396     formally terminate discussions. The procurement officer shall then undertake discussions with a
            71397     third qualified firm. Should the procurement officer be unable to award a contract at a fair and
            71398     reasonable price with any of the selected firms, the procurement officer shall select additional
            71399     firms, and the procurement officer shall continue discussions in accordance with this part until
            71400     an agreement is reached.
            71401         Section 1461. Section 63G-6-705 , which is renumbered from Section 63-56-705 is

            71402     renumbered and amended to read:
            71403          [63-56-705].     63G-6-705. Restrictions on state agency procurement of
            71404      architect-engineer services.
            71405         (1) Except as provided in Subsection (2), when a public procurement unit, in
            71406     accordance with Section [ 63-56-701 ] 63G-6-701 , elects to obtain architect or engineering
            71407     services by using a competitive procurement process and has provided public notice of its
            71408     competitive procurement process:
            71409         (a) a higher education entity, or any part of one, may not submit a proposal in response
            71410     to the public procurement unit's competitive procurement process; and
            71411         (b) the public procurement unit may not award a contract to perform the architect or
            71412     engineering services solicited in the competitive procurement process to a higher education
            71413     entity or any part of one.
            71414         (2) A public procurement unit need not comply with the requirements of Subsection (1)
            71415     when the public procurement unit is procuring architect or engineer services for contracts
            71416     related to research activities and technology transfer.
            71417         Section 1462. Section 63G-6-801 , which is renumbered from Section 63-56-801 is
            71418     renumbered and amended to read:
            71419     
Part 8. Legal and Contractual Remedies

            71420          [63-56-801].     63G-6-801. Protest to chief procurement officer -- Time --
            71421      Authority to resolve protest.
            71422         (1) Any actual or prospective bidder, offeror, or contractor who is aggrieved in
            71423     connection with the solicitation or award of a contract may protest to the chief procurement
            71424     officer or the head of a purchasing agency. A protest with respect to an invitation for bids or a
            71425     request for proposals shall be submitted in writing prior to the opening of bids or the closing
            71426     date for proposals, unless the aggrieved person did not know and should not have known of the
            71427     facts giving rise to the protest prior to bid opening or the closing date for proposals. The
            71428     protest shall be submitted in writing within five working days after the aggrieved person knows
            71429     or should have known of the facts giving rise thereto.

            71430         (2) The chief procurement officer, the head of a purchasing agency, or a designee of
            71431     either officer shall have the authority, prior to the commencement of an action in court
            71432     concerning the controversy, to settle and resolve the protest.
            71433         Section 1463. Section 63G-6-802 , which is renumbered from Section 63-56-802 is
            71434     renumbered and amended to read:
            71435          [63-56-802].     63G-6-802. Effect of timely protest.
            71436         In the event of a timely protest under Subsection [ 63-56-801 ] 63G-6-801 (1),
            71437     [ 63-56-810 ] 63G-6-810 (1), or [ 63-56-815 ] 63G-6-815 (1), the state shall not proceed further
            71438     with the solicitation or with the award of the contract until all administrative and judicial
            71439     remedies have been exhausted or until the chief procurement officer, after consultation with the
            71440     head of the using agency or the head of a purchasing agency, makes a written determination that
            71441     the award of the contract without delay is necessary to protect substantial interests of the state.
            71442         Section 1464. Section 63G-6-803 , which is renumbered from Section 63-56-803 is
            71443     renumbered and amended to read:
            71444          [63-56-803].     63G-6-803. Costs to or against protestor.
            71445         (1) When a protest is sustained administratively or upon administrative or judicial
            71446     review and the protesting bidder or offeror should have been awarded the contract under the
            71447     solicitation but is not, the protestor shall be entitled to the following relief as a claim against the
            71448     state:
            71449         (a) the reasonable costs incurred in connection with the solicitation, including bid
            71450     preparation and appeal costs; and
            71451         (b) any equitable relief determined to be appropriate by the reviewing administrative or
            71452     judicial body.
            71453         (2) When a protest is not sustained by the Procurement Appeals Board, the protestor
            71454     shall reimburse the Division of Purchasing and General Services for the per diem and expenses
            71455     paid by the division to witnesses or appeals board members and any additional expenses
            71456     incurred by the state agency staff who have provided materials and administrative services to the
            71457     board for that case.

            71458         Section 1465. Section 63G-6-804 , which is renumbered from Section 63-56-804 is
            71459     renumbered and amended to read:
            71460          [63-56-804].     63G-6-804. Debarment from consideration for award of
            71461      contracts -- Causes for debarment.
            71462         (1) After reasonable notice to the person involved and reasonable opportunity for that
            71463     person to be heard, the chief procurement officer or the head of a purchasing agency, after
            71464     consultation with the using agency and the attorney general, shall have authority to debar a
            71465     person for cause from consideration for award of contracts. The debarment shall not be for a
            71466     period exceeding three years. The same officer, after consultation with the using agency and the
            71467     attorney general, shall have authority to suspend a person from consideration for award of
            71468     contracts if there is probable cause to believe that the person has engaged in any activity which
            71469     might lead to debarment. The suspension shall not be for a period exceeding three months
            71470     unless an indictment has been issued for an offense which would be a cause for debarment under
            71471     Subsection (2), in which case the suspension shall, at the request of the attorney general, remain
            71472     in effect until after the trial of the suspended person.
            71473         (2) The causes for debarment include the following:
            71474         (a) conviction of a criminal offense as an incident to obtaining or attempting to obtain a
            71475     public or private contract or subcontract or in the performance of such contract or subcontract;
            71476         (b) conviction under state or federal statutes of embezzlement, theft, forgery, bribery,
            71477     falsification or destruction of records, receiving stolen property, or any other offense indicating
            71478     a lack of business integrity or business honesty which currently, seriously, and directly affects
            71479     responsibility as a state contractor;
            71480         (c) conviction under state or federal antitrust statutes;
            71481         (d) failure without good cause to perform in accordance with the terms of the contract;
            71482     or
            71483         (e) any other cause the chief procurement officer, or the head of a purchasing agency
            71484     determines to be so serious and compelling as to affect responsibility as a state contractor,
            71485     including debarment by another governmental entity for any cause listed in rules and

            71486     regulations.
            71487         Section 1466. Section 63G-6-805 , which is renumbered from Section 63-56-805 is
            71488     renumbered and amended to read:
            71489          [63-56-805].     63G-6-805. Authority to resolve controversy between state
            71490      and contractor.
            71491         The chief procurement officer, the head of a purchasing agency, or a designee of either
            71492     officer is authorized, prior to commencement of an action in court concerning the controversy,
            71493     to settle and resolve a controversy which arises between the state and a contractor under or by
            71494     virtue of a contract between them. This includes, without limitation, controversies based upon
            71495     breach of contract, mistakes, misrepresentation, or other cause for contract modification or
            71496     rescission.
            71497         Section 1467. Section 63G-6-806 , which is renumbered from Section 63-56-806 is
            71498     renumbered and amended to read:
            71499          [63-56-806].     63G-6-806. Decisions of chief procurement officer to be in
            71500      writing -- Effect of no writing.
            71501         (1) The chief procurement officer, the head of a purchasing agency, or the designee of
            71502     either officer shall promptly issue a written decision regarding any protest, debarment or
            71503     suspension, or contract controversy if it is not settled by a mutual agreement. The decision shall
            71504     state the reasons for the action taken and inform the protestor, contractor, or prospective
            71505     contractor of the right to judicial or administrative review as provided in this chapter.
            71506         (2) A decision shall be effective until stayed or reversed on appeal, except to the extent
            71507     provided in Section [ 63-56-802 ] 63G-6-802 . A copy of the decision under Subsection (1) shall
            71508     be mailed or otherwise furnished immediately to the protestor, prospective contractor, or
            71509     contractor. The decision shall be final and conclusive unless the protestor, prospective
            71510     contractor, or contractor appeals administratively to the procurement appeals board in
            71511     accordance with Subsection [ 63-56-810 ] 63G-6-810 (2) or the protestor, prospective
            71512     contractor, or contractor commences an action in district court in accordance with Section
            71513     [ 63-56-815 ] 63G-6-815 .

            71514         (3) If the chief procurement officer, the head of a purchasing agency, or the designee of
            71515     either officer does not issue the written decision regarding a contract controversy within 60
            71516     calendar days after written request for a final decision, or within such longer period as may be
            71517     agreed upon by the parties, then the contractor may proceed as if an adverse decision had been
            71518     received.
            71519         Section 1468. Section 63G-6-807 , which is renumbered from Section 63-56-807 is
            71520     renumbered and amended to read:
            71521          [63-56-807].     63G-6-807. Creation of Procurement Appeals Board.
            71522         (1) (a) A Procurement Appeals Board is created in the executive branch. The
            71523     Procurement Appeals Board shall be composed of a chair and one other member, to be
            71524     appointed by the governor, and a third member to be designated by the two appointed members
            71525     on a case-by-case basis.
            71526         (b) None of the members of the Procurement Appeals Board shall otherwise be
            71527     full-time employees of the state.
            71528         (c) The appointed members of the Procurement Appeals Board shall have been
            71529     members in good standing of the state bar for at least five years and shall be experienced in
            71530     contract or commercial matters.
            71531         (d) The designated member shall possess the technical expertise and experience needed
            71532     for the proper disposition of the factual issues presented by the case.
            71533         (2) (a) Except as required by Subsection (2)(b), as terms of current board members
            71534     expire, the governor shall appoint each new member or reappointed member to a four-year
            71535     term.
            71536         (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
            71537     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
            71538     board members are staggered so that approximately half of the board is appointed every two
            71539     years.
            71540         (c) The designated member shall serve for the case on which designated until the final
            71541     disposition of the case.

            71542         (d) Appointed members may be reappointed for succeeding terms and may continue to
            71543     serve after the expiration of their terms until a successor takes office.
            71544         (e) Qualified persons may be redesignated as members.
            71545         (3) When a vacancy occurs in the membership for any reason, the replacement shall be
            71546     appointed for the unexpired term.
            71547         (4) (a) Members shall receive no compensation or benefits for their services, but may
            71548     receive per diem and expenses incurred in the performance of the member's official duties at the
            71549     rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            71550         (b) Members may decline to receive per diem and expenses for their service.
            71551         Section 1469. Section 63G-6-808 , which is renumbered from Section 63-56-808 is
            71552     renumbered and amended to read:
            71553          [63-56-808].     63G-6-808. Rules of procedure to be adopted.
            71554         The Procurement Appeals Board shall adopt rules of procedure which, to the fullest
            71555     extent possible, will provide for the expeditious resolution of controversies, including
            71556     procedures to encourage agreements between the parties to a controversy prior to a hearing.
            71557     The board may adopt small claims procedures for the resolution of controversies involving
            71558     claims of less than $15,000.
            71559         Section 1470. Section 63G-6-809 , which is renumbered from Section 63-56-809 is
            71560     renumbered and amended to read:
            71561          [63-56-809].     63G-6-809. Decisions to be in writing.
            71562         The Procurement Appeals Board shall issue a decision in writing or take other
            71563     appropriate action of each appeal submitted. A copy of any decision shall be provided to all
            71564     parties and the chief procurement officer or the head of a purchasing agency.
            71565         Section 1471. Section 63G-6-810 , which is renumbered from Section 63-56-810 is
            71566     renumbered and amended to read:
            71567          [63-56-810].     63G-6-810. Jurisdiction of Procurement Appeals Board.
            71568         Unless an action has been initiated previously in district courts for essentially the same
            71569     cause of action, the board shall have jurisdiction to review and determine de novo:

            71570         (1) any protest of a solicitation or award of a contract addressed to the board by an
            71571     aggrieved actual or prospective bidder or offeror, or a contractor; and
            71572         (2) any appeal by an aggrieved party from a decision rendered or considered to have
            71573     been rendered pursuant to Section [ 63-56-806 ] 63G-6-806 .
            71574         Section 1472. Section 63G-6-811 , which is renumbered from Section 63-56-811 is
            71575     renumbered and amended to read:
            71576          [63-56-811].     63G-6-811. Time limits to file protest or appeal -- Effect of
            71577      filing.
            71578         (1) For a protest under Subsection [ 63-56-810 ] 63G-6-810 (1), the aggrieved person
            71579     shall file a protest with the board within five working days after the aggrieved person knows or
            71580     should have known of the facts and circumstances upon which the protest is based; provided,
            71581     however, that a protest with respect to an invitation for bids or request for proposals shall be
            71582     filed prior to the opening of bids or the closing date for proposals unless the aggrieved person
            71583     did not know and should not have known of the facts giving rise to the protest prior to bid
            71584     opening or the closing date for proposals.
            71585         (2) For an appeal from a decision regarding a protested solicitation or award, the
            71586     aggrieved person shall file an appeal within seven calendar days of receipt of a decision rendered
            71587     or considered to have been rendered pursuant to Section [ 63-56-806 ] 63G-6-806 .
            71588         (3) For an appeal from a decision regarding a debarment, suspension, or contract
            71589     controversy, the aggrieved person shall file an appeal within 60 calendar days of receipt of a
            71590     decision rendered or considered to have been rendered pursuant to Section [ 63-56-806 ]
            71591      63G-6-806 .
            71592         Section 1473. Section 63G-6-812 , which is renumbered from Section 63-56-812 is
            71593     renumbered and amended to read:
            71594          [63-56-812].     63G-6-812. Discontinued appeal with prejudice, except as
            71595      authorized.
            71596         After notice of an appeal has been filed with the Procurement Appeals Board, no party
            71597     may discontinue the appeal without prejudice, except as authorized by the Procurement Appeals

            71598     Board.
            71599         Section 1474. Section 63G-6-813 , which is renumbered from Section 63-56-813 is
            71600     renumbered and amended to read:
            71601          [63-56-813].     63G-6-813. Factual determination of appeals board final and
            71602      conclusive.
            71603         (1) On any protest or appeal under Section [ 63-56-810 ] 63G-6-810 , the Procurement
            71604     Appeals Board shall promptly decide the contract controversy or whether the solicitation or
            71605     award was in accordance with this chapter. Any prior determinations by administrative officials
            71606     regarding protests of solicitations or awards, suspension or debarments, contract controversies,
            71607     or breach of contract controversies shall not be final or conclusive.
            71608         (2) A determination of an issue of fact by the Procurement Appeals Board under
            71609     Subsection (1) shall be final and conclusive unless arbitrary and capricious or clearly erroneous.
            71610     No determination on an issue of law shall be final or conclusive.
            71611         Section 1475. Section 63G-6-814 , which is renumbered from Section 63-56-814 is
            71612     renumbered and amended to read:
            71613          [63-56-814].     63G-6-814. Right to appeal to Court of Appeals.
            71614         Any person receiving an adverse decision or the state may appeal a decision of the
            71615     Procurement Appeals Board to the Court of Appeals. However, no appeal may be made by the
            71616     state unless recommended by the chief procurement officer or the head of the purchasing agency
            71617     involved, and approved by the attorney general.
            71618         Section 1476. Section 63G-6-815 , which is renumbered from Section 63-56-815 is
            71619     renumbered and amended to read:
            71620          [63-56-815].     63G-6-815. Jurisdiction of district court.
            71621         (1) The district court shall have jurisdiction over an action, whether the action is at law
            71622     or in equity, between the state and:
            71623         (a) a bidder, offeror, or contractor, prospective or actual, who is aggrieved in
            71624     connection with the solicitation or award of a contract;
            71625         (b) a person who is subject to a suspension or debarment proceeding; and

            71626         (c) a contractor, for any cause of action which arises under, or by virtue of a contract.
            71627         (2) The provisions of [Title 63, Chapter 30d] Title 63G, Chapter 7, Part 4, Notice of
            71628     Claim Against a Governmental Entity or a Government Employee, and Section [ 63-30d-601 ]
            71629      63G-7-601 do not apply to actions brought under this chapter by an aggrieved party for
            71630     equitable relief or reasonable costs incurred in preparing or appealing an unsuccessful bid or
            71631     offer.
            71632         Section 1477. Section 63G-6-816 , which is renumbered from Section 63-56-816 is
            71633     renumbered and amended to read:
            71634          [63-56-816].     63G-6-816. Effect of prior determination by agents of state.
            71635         In any judicial action under Section [ 63-56-815 ] 63G-6-815 , determinations by
            71636     employees, agents, or other persons appointed by the state shall be final and conclusive only as
            71637     provided in Sections [ 63-56-419 ] 63G-6-419 and [ 63-56-806 ] 63G-6-806 , and Subsection
            71638     [ 63-56-813 ] 63G-6-813 (2).
            71639         Section 1478. Section 63G-6-817 , which is renumbered from Section 63-56-817 is
            71640     renumbered and amended to read:
            71641          [63-56-817].     63G-6-817. Statutes of limitations.
            71642         (1) Any action under Subsection [ 63-56-815 ] 63G-6-815 (1)(a) shall be initiated as
            71643     follows:
            71644         (a) within 20 calendar days after the aggrieved person knows or should have known of
            71645     the facts giving rise to the action; provided, however, that an action with respect to an invitation
            71646     for bids or request for proposals shall be initiated prior to the opening of bids or the closing date
            71647     for proposals unless the aggrieved person did not know and should not have known of the facts
            71648     giving rise to the action prior to bid opening or the closing date for proposals; or
            71649         (b) within 14 calendar days after receipt of a final administrative decision pursuant to
            71650     either Section [ 63-56-806 ] 63G-6-806 or Section [ 63-56-813 ] 63G-6-813 , whichever is
            71651     applicable.
            71652         (2) Any action under Subsection [ 63-56-815 ] 63G-6-815 (1)(b) shall be commenced
            71653     within six months after receipt of a final administrative decision pursuant to Section [ 63-56-806 ]

            71654      63G-6-806 or Section [ 63-56-813 ] 63G-6-813 , whichever is applicable.
            71655         (3) The statutory limitations on an action between private persons on a contract or for
            71656     breach of contract shall apply to any action commenced pursuant to Subsection [ 63-56-815 ]
            71657      63G-6-815 (1)(c), except notice of appeals from the Procurement Appeals Board pursuant to
            71658     Section [ 63-56-814 ] 63G-6-814 concerning actions on a contract or for breach of contract shall
            71659     be filed within one year after the date of the Procurement Appeals Board decision.
            71660         Section 1479. Section 63G-6-818 , which is renumbered from Section 63-56-818 is
            71661     renumbered and amended to read:
            71662          [63-56-818].     63G-6-818. Effect of violation prior to award of contract.
            71663         If prior to award it is determined administratively or upon administrative or judicial
            71664     review that a solicitation or proposed award of a contract is in violation of law, the solicitation
            71665     or proposed award shall be cancelled or revised to comply with the law.
            71666         Section 1480. Section 63G-6-819 , which is renumbered from Section 63-56-819 is
            71667     renumbered and amended to read:
            71668          [63-56-819].     63G-6-819. Effect of violation after award of contract.
            71669         If after an award it is determined administratively or upon administrative or judicial
            71670     review that a solicitation or award of a contract is in violation of law:
            71671         (1) If the person awarded the contract has not acted fraudulently or in bad faith:
            71672         (a) The contract may be ratified and affirmed if it is determined that doing so is in the
            71673     best interests of the state; or
            71674         (b) The contract may be terminated and the person awarded the contract shall be
            71675     compensated for the actual expenses reasonably incurred under the contract prior to
            71676     termination, plus a reasonable profit;
            71677         (2) If the person awarded the contract has acted fraudulently or in bad faith:
            71678         (a) The contract may be declared null and void; or
            71679         (b) The contract may be ratified and affirmed if such action is in the best interests of the
            71680     state, without prejudice to the state's rights to any appropriate damages.
            71681         Section 1481. Section 63G-6-820 , which is renumbered from Section 63-56-820 is

            71682     renumbered and amended to read:
            71683          [63-56-820].     63G-6-820. Interest rate.
            71684         (1) Except as provided in Subsection (2), in controversies between the state and
            71685     contractors under this part, interest on amounts ultimately determined to be due to a contractor
            71686     or to the state are payable at the rate applicable to judgments from the date the claim arose
            71687     through the date of decision or judgment, whichever is later.
            71688         (2) This section does not apply to public assistance benefits programs.
            71689         Section 1482. Section 63G-6-901 , which is renumbered from Section 63-56-901 is
            71690     renumbered and amended to read:
            71691     
Part 9. Intergovernmental Relations

            71692          [63-56-901].     63G-6-901. Agreements between public procurement units.
            71693         Under the terms agreed upon among the parties, any public procurement unit may enter
            71694     into agreements with one or more other public procurement units to:
            71695         (1) sponsor, conduct, or administer a cooperative agreement for the procurement or
            71696     disposal of any supplies, services, or construction;
            71697         (2) cooperatively use supplies or services;
            71698         (3) commonly use or share warehousing facilities, capital equipment, and other
            71699     facilities;
            71700         (4) provide personnel; provided that the requesting public procurement unit shall pay
            71701     the public procurement unit providing the personnel the direct and indirect cost of providing the
            71702     personnel, in accordance with the agreement; or
            71703         (5) make available informational, technical, and other services, provided that the
            71704     requirements of the public procurement unit tendering the services shall have precedence over
            71705     the requesting public procurement unit and that the requesting public procurement unit shall pay
            71706     for the expenses of the services so provided, in accordance with the agreement.
            71707         Section 1483. Section 63G-6-902 , which is renumbered from Section 63-56-902 is
            71708     renumbered and amended to read:
            71709          [63-56-902].     63G-6-902. Services between public procurement units.

            71710         (1) Upon request, any public procurement unit may make available to other public
            71711     procurement units the following services, among others: standard forms; printed manuals;
            71712     qualified products lists; source information; common use commodities listings; supplier
            71713     prequalification information; supplier performance ratings; debarred and suspended bidders lists;
            71714     forms for invitation for bids, requests for proposals, instructions to bidders, general contract
            71715     provisions, and other contract forms; and contracts or published summaries thereof, including
            71716     price and time of delivery information.
            71717         (2) Any public procurement unit may provide the following technical services, among
            71718     others, to other public procurement units; development of specifications; development of quality
            71719     assurance test methods, including receiving, inspection, and acceptance procedures; use of
            71720     testing and inspection facilities; and use of personnel training programs.
            71721         (3) Public procurement units may enter into contractual arrangements and publish a
            71722     schedule of fees for the services provided under Subsections (1) and (2).
            71723         Section 1484. Section 63G-6-903 , which is renumbered from Section 63-56-903 is
            71724     renumbered and amended to read:
            71725          [63-56-903].     63G-6-903. Payments between public procurement units.
            71726         All payments from any public procurement unit received by a public procurement unit
            71727     supplying personnel or services shall be available to the supplying public procurement unit.
            71728         Section 1485. Section 63G-6-904 , which is renumbered from Section 63-56-904 is
            71729     renumbered and amended to read:
            71730          [63-56-904].     63G-6-904. Compliance by one public procurement unit
            71731      pursuant to agreement considered compliance by others to agreement.
            71732         Where the public procurement unit administering a cooperative purchase complies with
            71733     the requirements of this chapter, any public procurement unit participating in such a purchase
            71734     shall be considered to have complied with this chapter. Public procurement units may not enter
            71735     into a cooperative purchasing agreement for the purpose of circumventing this chapter.
            71736         Section 1486. Section 63G-6-905 , which is renumbered from Section 63-56-905 is
            71737     renumbered and amended to read:

            71738          [63-56-905].     63G-6-905. Chief procurement officer to collect information
            71739      as to supplies, etc.
            71740         To the extent possible, the chief procurement officer may collect information concerning
            71741     the type, cost, quality, and quantity of commonly used supplies, services, or construction being
            71742     procured or used by state public procurement units and local public procurement units. The
            71743     chief procurement officer may make the information available to any public procurement unit
            71744     upon request.
            71745         Section 1487. Section 63G-6-906 , which is renumbered from Section 63-56-906 is
            71746     renumbered and amended to read:
            71747          [63-56-906].     63G-6-906. Resolving controversy arising under a
            71748      cooperative purchasing agreement.
            71749         Under a cooperative purchasing agreement, controversies arising between an
            71750     administering state public procurement unit and its bidders, offerors, or contractors shall be
            71751     resolved in accordance with Part 8, Legal and Contractual Remedies.
            71752         Section 1488. Section 63G-6-907 , which is renumbered from Section 63-56-907 is
            71753     renumbered and amended to read:
            71754          [63-56-907].     63G-6-907. Resolution of local public procurement
            71755      controversies.
            71756         Any local public procurement unit is authorized to enter into an agreement with the
            71757     State Procurement Appeals Board to resolve controversies between the local public
            71758     procurement unit and its contractors, whether or not such controversy arose from a cooperative
            71759     purchasing agreement.
            71760         Section 1489. Section 63G-6-1001 , which is renumbered from Section 63-56-1001 is
            71761     renumbered and amended to read:
            71762     
Part 10. Illegal Activities

            71763          [63-56-1001].     63G-6-1001. Felony to accept emolument.
            71764         Any person acting as a procurement officer for the state of Utah or any subdivision
            71765     thereof, or who in any official capacity participates in the procurement of any supplies, services,

            71766     construction, real property, or insurance for any such political units, is guilty of a felony if the
            71767     person asks, receives, or offers to receive any emolument, gratuity, contribution, loan, or
            71768     reward, or any promise thereof, either for the person's own use or the use or benefit of any
            71769     other person or organization from any person interested in the sale of such supplies, services,
            71770     construction, real property, or insurance.
            71771         Section 1490. Section 63G-6-1002 , which is renumbered from Section 63-56-1002 is
            71772     renumbered and amended to read:
            71773          [63-56-1002].     63G-6-1002. Felony to offer emolument.
            71774         A person who is interested in any way in the sale of any supplies, services, construction,
            71775     real property, or insurance to the state of Utah or any political subdivision thereof, is guilty of a
            71776     felony if the person gives or offers to give any emolument, gratuity, contribution, loan or
            71777     reward, or any promise thereof to any person acting as a procurement officer, or who in any
            71778     official capacity participates in the procurement of such supplies, services, construction, real
            71779     property, or insurance, whether it is given for [his] the person's own use or for the use or benefit
            71780     of any other person or organization.
            71781         Section 1491. Section 63G-7-101 , which is renumbered from Section 63-30d-101 is
            71782     renumbered and amended to read:
            71783     
CHAPTER 7. GOVERNMENTAL IMMUNITY ACT OF UTAH

            71784     
Part 1. General Provisions

            71785          [63-30d-101].     63G-7-101. Title, scope, and intent.
            71786         (1) This chapter is known as the "Governmental Immunity Act of Utah."
            71787         (2) (a) The waivers and retentions of immunity found in this chapter apply to all
            71788     functions of government, no matter how labeled.
            71789         (b) This single, comprehensive chapter governs all claims against governmental entities
            71790     or against their employees or agents arising out of the performance of the employee's duties,
            71791     within the scope of employment, or under color of authority.
            71792         Section 1492. Section 63G-7-102 , which is renumbered from Section 63-30d-102 is
            71793     renumbered and amended to read:

            71794          [63-30d-102].     63G-7-102. Definitions.
            71795         As used in this chapter:
            71796         (1) "Claim" means any asserted demand for or cause of action for money or damages,
            71797     whether arising under the common law, under state constitutional provisions, or under state
            71798     statutes, against a governmental entity or against an employee in the employee's personal
            71799     capacity.
            71800         (2) (a) "Employee" includes:
            71801         (i) a governmental entity's officers, employees, servants, trustees, or commissioners;
            71802         (ii) members of a governing body;
            71803         (iii) members of a government entity board;
            71804         (iv) members of a government entity commission;
            71805         (v) members of an advisory body, officers, and employees of a Children's Justice Center
            71806     created in accordance with Section 67-5b-104 ;
            71807         (vi) student teachers holding a letter of authorization in accordance with Sections
            71808      53A-6-103 and 53A-6-104 ;
            71809         (vii) educational aides;
            71810         (viii) students engaged in providing services to members of the public in the course of
            71811     an approved medical, nursing, or other professional health care clinical training program;
            71812         (ix) volunteers as defined by Subsection 67-20-2 (3); and
            71813         (x) tutors.
            71814         (b) "Employee" includes all of the positions identified in Subsection (2)(a), whether or
            71815     not the individual holding that position receives compensation.
            71816         (c) "Employee" does not include an independent contractor.
            71817         (3) "Governmental entity" means the state and its political subdivisions as both are
            71818     defined in this section.
            71819         (4) (a) "Governmental function" means each activity, undertaking, or operation of a
            71820     governmental entity.
            71821         (b) "Governmental function" includes each activity, undertaking, or operation

            71822     performed by a department, agency, employee, agent, or officer of a governmental entity.
            71823         (c) "Governmental function" includes a governmental entity's failure to act.
            71824         (5) "Injury" means death, injury to a person, damage to or loss of property, or any other
            71825     injury that a person may suffer to [his] the person or estate, that would be actionable if inflicted
            71826     by a private person or [his] the private person's agent.
            71827         (6) "Personal injury" means an injury of any kind other than property damage.
            71828         (7) "Political subdivision" means any county, city, town, school district, community
            71829     development and renewal agency, special improvement or taxing district, local district, special
            71830     service district, an entity created by an interlocal agreement adopted under Title 11, Chapter 13,
            71831     Interlocal Cooperation Act, or other governmental subdivision or public corporation.
            71832         (8) "Property damage" means injury to, or loss of, any right, title, estate, or interest in
            71833     real or personal property.
            71834         (9) "State" means the state of Utah, and includes each office, department, division,
            71835     agency, authority, commission, board, institution, hospital, college, university, Children's Justice
            71836     Center, or other instrumentality of the state.
            71837         (10) "Willful misconduct" means the intentional doing of a wrongful act, or the
            71838     wrongful failure to act, without just cause or excuse, where the actor is aware that [his] the
            71839     actor's conduct will probably result in injury.
            71840         Section 1493. Section 63G-7-201 , which is renumbered from Section 63-30d-201 is
            71841     renumbered and amended to read:
            71842     
Part 2. Governmental Immunity - Statement, Scope, and Effect

            71843          [63-30d-201].     63G-7-201. Immunity of governmental entities from suit.
            71844         (1) Except as may be otherwise provided in this chapter, each governmental entity and
            71845     each employee of a governmental entity are immune from suit for any injury that results from
            71846     the exercise of a governmental function.
            71847         (2) Notwithstanding the waiver of immunity provisions of Section [ 63-30d-301 ]
            71848      63G-7-301 , a governmental entity, its officers, and its employees are immune from suit for any
            71849     injury or damage resulting from the implementation of or the failure to implement measures to:

            71850         (a) control the causes of epidemic and communicable diseases and other conditions
            71851     significantly affecting the public health or necessary to protect the public health as set out in
            71852     Title 26A, Chapter 1, Local Health Departments;
            71853         (b) investigate and control suspected bioterrorism and disease as set out in Title 26,
            71854     Chapter 23b, Detection of Public Health Emergencies Act; and
            71855         (c) respond to a national, state, or local emergency, a public health emergency as
            71856     defined in Section 26-23b-102 , or a declaration by the President of the United States or other
            71857     federal official requesting public health related activities.
            71858         Section 1494. Section 63G-7-202 , which is renumbered from Section 63-30d-202 is
            71859     renumbered and amended to read:
            71860          [63-30d-202].     63G-7-202. Act provisions not construed as admission or
            71861      denial of liability -- Effect of waiver of immunity -- Exclusive remedy -- Joinder of
            71862      employee -- Limitations on personal liability.
            71863         (1) (a) Nothing contained in this chapter, unless specifically provided, may be construed
            71864     as an admission or denial of liability or responsibility by or for a governmental entity or its
            71865     employees.
            71866         (b) If immunity from suit is waived by this chapter, consent to be sued is granted, and
            71867     liability of the entity shall be determined as if the entity were a private person.
            71868         (c) No cause of action or basis of liability is created by any waiver of immunity in this
            71869     chapter, nor may any provision of this chapter be construed as imposing strict liability or
            71870     absolute liability.
            71871         (2) Nothing in this chapter may be construed as adversely affecting any immunity from
            71872     suit that a governmental entity or employee may otherwise assert under state or federal law.
            71873         (3) (a) Except as provided in Subsection (3)(c), an action under this chapter against a
            71874     governmental entity for an injury caused by an act or omission that occurs during the
            71875     performance of an employee's duties, within the scope of employment, or under color of
            71876     authority is a plaintiff's exclusive remedy.
            71877         (b) Judgment under this chapter against a governmental entity is a complete bar to any

            71878     action by the claimant, based upon the same subject matter, against the employee whose act or
            71879     omission gave rise to the claim.
            71880         (c) A plaintiff may not bring or pursue any civil action or proceeding based upon the
            71881     same subject matter against the employee or the estate of the employee whose act or omission
            71882     gave rise to the claim, unless:
            71883         (i) the employee acted or failed to act through fraud or willful misconduct;
            71884         (ii) the injury or damage resulted from the employee driving a vehicle, or being in actual
            71885     physical control of a vehicle:
            71886         (A) with a blood alcohol content equal to or greater by weight than the established legal
            71887     limit;
            71888         (B) while under the influence of alcohol or any drug to a degree that rendered the
            71889     person incapable of safely driving the vehicle; or
            71890         (C) while under the combined influence of alcohol and any drug to a degree that
            71891     rendered the person incapable of safely driving the vehicle;
            71892         (iii) injury or damage resulted from the employee being physically or mentally impaired
            71893     so as to be unable to reasonably perform [his or her] the employee's job function because of:
            71894         (A) the use of alcohol;
            71895         (B) the nonprescribed use of a controlled substance as defined in Section 58-37-4 ; or
            71896         (C) the combined influence of alcohol and a nonprescribed controlled substance as
            71897     defined by Section 58-37-4 ; or
            71898         (iv) in a judicial or administrative proceeding, the employee intentionally or knowingly
            71899     gave, upon a lawful oath or in any form allowed by law as a substitute for an oath, false
            71900     testimony material to the issue or matter of inquiry under this section.
            71901         (4) Except as permitted in Subsection (3)(c), no employee may be joined or held
            71902     personally liable for acts or omissions occurring:
            71903         (a) during the performance of the employee's duties;
            71904         (b) within the scope of employment; or
            71905         (c) under color of authority.

            71906         Section 1495. Section 63G-7-203 , which is renumbered from Section 63-30d-203 is
            71907     renumbered and amended to read:
            71908          [63-30d-203].     63G-7-203. Exemptions for certain takings actions.
            71909         An action that involves takings law, as defined in Section [ 63-90-2 ] 63L-3-102 , is not
            71910     subject to the requirements of Sections [ 63-30d-401 ] 63G-7-401 , [ 63-30d-402 ] 63G-7-402 ,
            71911     [ 63-30d-403 ] 63G-7-403 , and [ 63-30d-601 ] 63G-7-601 .
            71912         Section 1496. Section 63G-7-301 , which is renumbered from Section 63-30d-301 is
            71913     renumbered and amended to read:
            71914     
Part 3. Waivers of Immunity

            71915          [63-30d-301].     63G-7-301. Waivers of immunity -- Exceptions.
            71916         (1) (a) Immunity from suit of each governmental entity is waived as to any contractual
            71917     obligation.
            71918         (b) Actions arising out of contractual rights or obligations are not subject to the
            71919     requirements of Sections [ 63-30d-401 ] 63G-7-401 , [ 63-30d-402 ] 63G-7-402 , [ 63-30d-403 ]
            71920      63G-7-403 , or [ 63-30d-601 ] 63G-7-601 .
            71921         (c) The Division of Water Resources is not liable for failure to deliver water from a
            71922     reservoir or associated facility authorized by Title 73, Chapter 26, Bear River Development Act,
            71923     if the failure to deliver the contractual amount of water is due to drought, other natural
            71924     condition, or safety condition that causes a deficiency in the amount of available water.
            71925         (2) Immunity from suit of each governmental entity is waived:
            71926         (a) as to any action brought to recover, obtain possession of, or quiet title to real or
            71927     personal property;
            71928         (b) as to any action brought to foreclose mortgages or other liens on real or personal
            71929     property, to determine any adverse claim on real or personal property, or to obtain an
            71930     adjudication about any mortgage or other lien that the governmental entity may have or claim
            71931     on real or personal property;
            71932         (c) as to any action based on the negligent destruction, damage, or loss of goods,
            71933     merchandise, or other property while it is in the possession of any governmental entity or

            71934     employee, if the property was seized for the purpose of forfeiture under any provision of state
            71935     law;
            71936         (d) subject to Subsection [ 63-30d-302 ] 63G-7-302 (1), as to any action brought under
            71937     the authority of Article I, Section 22, of the Utah Constitution, for the recovery of
            71938     compensation from the governmental entity when the governmental entity has taken or damaged
            71939     private property for public uses without just compensation;
            71940         (e) subject to Subsection [ 63-30d-302 ] 63G-7-302 (2), as to any action brought to
            71941     recover attorney fees under Sections [ 63-2-405 ] 63G-2-405 and [ 63-2-802 ] 63G-2-802 ;
            71942         (f) for actual damages under Title 67, Chapter 21, Utah Protection of Public Employees
            71943     Act; or
            71944         (g) as to any action brought to obtain relief from a land use regulation that imposes a
            71945     substantial burden on the free exercise of religion under [Title 63, Chapter 90b] Title 63L,
            71946     Chapter 5, Utah Religious Land Use Act.
            71947         (3) (a) Except as provided in Subsection (3)(b), immunity from suit of each
            71948     governmental entity is waived as to any injury caused by:
            71949         (i) a defective, unsafe, or dangerous condition of any highway, road, street, alley,
            71950     crosswalk, sidewalk, culvert, tunnel, bridge, viaduct, or other structure located on them; or
            71951         (ii) any defective or dangerous condition of a public building, structure, dam, reservoir,
            71952     or other public improvement.
            71953         (b) Immunity from suit of each governmental entity is not waived if the injury arises out
            71954     of, in connection with, or results from:
            71955         (i) a latent dangerous or latent defective condition of any highway, road, street, alley,
            71956     crosswalk, sidewalk, culvert, tunnel, bridge, viaduct, or other structure located on them; or
            71957         (ii) a latent dangerous or latent defective condition of any public building, structure,
            71958     dam, reservoir, or other public improvement.
            71959         (4) Immunity from suit of each governmental entity is waived as to any injury
            71960     proximately caused by a negligent act or omission of an employee committed within the scope
            71961     of employment.

            71962         (5) Immunity from suit of each governmental entity is not waived under Subsections (3)
            71963     and (4) if the injury arises out of, in connection with, or results from:
            71964         (a) the exercise or performance, or the failure to exercise or perform, a discretionary
            71965     function, whether or not the discretion is abused;
            71966         (b) assault, battery, false imprisonment, false arrest, malicious prosecution, intentional
            71967     trespass, abuse of process, libel, slander, deceit, interference with contract rights, infliction of
            71968     mental anguish, or violation of civil rights;
            71969         (c) the issuance, denial, suspension, or revocation of, or by the failure or refusal to
            71970     issue, deny, suspend, or revoke, any permit, license, certificate, approval, order, or similar
            71971     authorization;
            71972         (d) a failure to make an inspection or by making an inadequate or negligent inspection;
            71973         (e) the institution or prosecution of any judicial or administrative proceeding, even if
            71974     malicious or without probable cause;
            71975         (f) a misrepresentation by an employee whether or not it is negligent or intentional;
            71976         (g) riots, unlawful assemblies, public demonstrations, mob violence, and civil
            71977     disturbances;
            71978         (h) the collection of and assessment of taxes;
            71979         (i) the activities of the Utah National Guard;
            71980         (j) the incarceration of any person in any state prison, county or city jail, or other place
            71981     of legal confinement;
            71982         (k) any natural condition on publicly owned or controlled lands;
            71983         (l) any condition existing in connection with an abandoned mine or mining operation;
            71984         (m) any activity authorized by the School and Institutional Trust Lands Administration
            71985     or the Division of Forestry, Fire, and State Lands;
            71986         (n) the operation or existence of a pedestrian or equestrian trail that is along a ditch,
            71987     canal, stream, or river, regardless of ownership or operation of the ditch, canal, stream, or river,
            71988     if:
            71989         (i) the trail is designated under a general plan adopted by a municipality under Section

            71990      10-9a-401 or by a county under Section 17-27a-401 ;
            71991         (ii) the trail right-of-way or the right-of-way where the trail is located is open to public
            71992     use as evidenced by a written agreement between the owner or operator of the trail
            71993     right-of-way, or of the right-of-way where the trail is located, and the municipality or county
            71994     where the trail is located; and
            71995         (iii) the written agreement:
            71996         (A) contains a plan for operation and maintenance of the trail; and
            71997         (B) provides that an owner or operator of the trail right-of-way or of the right-of-way
            71998     where the trail is located has, at minimum, the same level of immunity from suit as the
            71999     governmental entity in connection with or resulting from the use of the trail.
            72000         (o) research or implementation of cloud management or seeding for the clearing of fog;
            72001         (p) the management of flood waters, earthquakes, or natural disasters;
            72002         (q) the construction, repair, or operation of flood or storm systems;
            72003         (r) the operation of an emergency vehicle, while being driven in accordance with the
            72004     requirements of Section [ 41-6a-208 ] 41-6a-212 ;
            72005         (s) the activities of:
            72006         (i) providing emergency medical assistance;
            72007         (ii) fighting fire;
            72008         (iii) regulating, mitigating, or handling hazardous materials or hazardous wastes;
            72009         (iv) emergency evacuations;
            72010         (v) transporting or removing injured persons to a place where emergency medical
            72011     assistance can be rendered or where the person can be transported by a licensed ambulance
            72012     service; or
            72013         (vi) intervening during dam emergencies;
            72014         (t) the exercise or performance, or the failure to exercise or perform, any function
            72015     pursuant to Title 73, Chapter 10, Board of Water Resources - Division of Water Resources; or
            72016         (u) unauthorized access to government records, data, or electronic information systems
            72017     by any person or entity.

            72018         Section 1497. Section 63G-7-302 , which is renumbered from Section 63-30d-302 is
            72019     renumbered and amended to read:
            72020          [63-30d-302].     63G-7-302. Specific remedies -- "Takings" actions --
            72021      Government Records Access and Management Actions.
            72022         (1) In any action brought under the authority of Article I, Section 22, of the Utah
            72023     Constitution for the recovery of compensation from the governmental entity when the
            72024     governmental entity has taken or damaged private property for public uses without just
            72025     compensation, compensation and damages shall be assessed according to the requirements of
            72026     Title 78, Chapter 34, Eminent Domain.
            72027         (2) (a) Notwithstanding Section [ 63-30d-401 ] 63G-7-401 , a notice of claim for
            72028     [attorneys'] attorney fees under Subsection [ 63-30d-301 ] 63G-7-301 (2)(e) may be filed
            72029     contemporaneously with a petition for review under Section [ 63-2-404 ] 63G-2-404 .
            72030         (b) The provisions of Subsection [ 63-30d-403 ] 63G-7-403 (1), relating to the
            72031     governmental entity's response to a claim, and the provisions of [ 63-30d-601 ] Section
            72032      63G-7-601 , requiring an undertaking, do not apply to a notice of claim for [attorneys'] attorney
            72033     fees filed contemporaneously with a petition for review under Section [ 63-2-404 ] 63G-2-404 .
            72034         (c) Any other claim under this chapter that is related to a claim for [attorneys'] attorney
            72035     fees under Subsection [ 63-30d-301 ] 63G-7-301 (2)(e) may be brought contemporaneously with
            72036     the claim for attorneys' fees or in a subsequent action.
            72037         Section 1498. Section 63G-7-401 , which is renumbered from Section 63-30d-401 is
            72038     renumbered and amended to read:
            72039     
Part 4. Notice of Claim Against a Governmental Entity or a Government Employee

            72040          [63-30d-401].     63G-7-401. Claim for injury -- Notice -- Contents -- Service
            72041      -- Legal disability -- Appointment of guardian ad litem.
            72042         (1) (a) Except as provided in Subsection (1)(b), a claim arises when the statute of
            72043     limitations that would apply if the claim were against a private person begins to run.
            72044         (b) The statute of limitations does not begin to run until a claimant knew, or with the
            72045     exercise of reasonable diligence should have known:

            72046         (i) that the claimant had a claim against the governmental entity or its employee; and
            72047         (ii) the identity of the governmental entity or the name of the employee.
            72048         (c) The burden to prove the exercise of reasonable diligence is upon the claimant.
            72049         (2) Any person having a claim against a governmental entity, or against its employee for
            72050     an act or omission occurring during the performance of the employee's duties, within the scope
            72051     of employment, or under color of authority shall file a written notice of claim with the entity
            72052     before maintaining an action, regardless of whether or not the function giving rise to the claim is
            72053     characterized as governmental.
            72054         (3) (a) The notice of claim shall set forth:
            72055         (i) a brief statement of the facts;
            72056         (ii) the nature of the claim asserted;
            72057         (iii) the damages incurred by the claimant so far as they are known; and
            72058         (iv) if the claim is being pursued against a governmental employee individually as
            72059     provided in Subsection [ 63-30d-202 ] 63G-7-202 (3)(c), the name of the employee.
            72060         (b) The notice of claim shall be:
            72061         (i) signed by the person making the claim or that person's agent, attorney, parent, or
            72062     legal guardian; and
            72063         (ii) directed and delivered by hand or by mail according to the requirements of Section
            72064      68-3-8.5 to the office of:
            72065         (A) the city or town clerk, when the claim is against an incorporated city or town;
            72066         (B) the county clerk, when the claim is against a county;
            72067         (C) the superintendent or business administrator of the board, when the claim is against
            72068     a school district or board of education;
            72069         (D) the presiding officer or secretary/clerk of the board, when the claim is against a
            72070     local district or special service district;
            72071         (E) the attorney general, when the claim is against the State of Utah;
            72072         (F) a member of the governing board, the executive director, or executive secretary,
            72073     when the claim is against any other public board, commission, or body; or

            72074         (G) the agent authorized by a governmental entity to receive the notice of claim by the
            72075     governmental entity under Subsection (5)(e).
            72076         (4) (a) If an injury that may reasonably be expected to result in a claim against a
            72077     governmental entity is sustained by a claimant who is under the age of majority or mentally
            72078     incompetent, that governmental entity may file a request with the court for the appointment of a
            72079     guardian ad litem for the potential claimant.
            72080         (b) If a guardian ad litem is appointed, the time for filing a claim under Section
            72081     [ 63-30d-402 ] 63G-7-402 begins when the order appointing the guardian is issued.
            72082         (5) (a) Each governmental entity subject to suit under this chapter shall file a statement
            72083     with the Division of Corporations and Commercial Code within the Department of Commerce
            72084     containing:
            72085         (i) the name and address of the governmental entity;
            72086         (ii) the office or agent designated to receive a notice of claim; and
            72087         (iii) the address at which it is to be directed and delivered.
            72088         (b) Each governmental entity shall update its statement as necessary to ensure that the
            72089     information is accurate.
            72090         (c) The Division of Corporations and Commercial Code shall develop a form for
            72091     governmental entities to complete that provides the information required by Subsection (5)(a).
            72092         (d) (i) Newly incorporated municipalities shall file the statement required by Subsection
            72093     (5)(a) at the time that the statement of incorporation and boundaries is filed with the lieutenant
            72094     governor under Section 10-1-106 .
            72095         (ii) Newly incorporated local districts shall file the statement required by Subsection
            72096     (5)(a) at the time that the written notice is filed with the lieutenant governor under Section
            72097      17B-1-215 .
            72098         (e) A governmental entity may, in its statement, identify an agent authorized by the
            72099     entity to accept notices of claim on its behalf.
            72100         (6) The Division of Corporations and Commercial Code shall:
            72101         (a) maintain an index of the statements required by this section arranged both

            72102     alphabetically by entity and by county of operation; and
            72103         (b) make the indices available to the public both electronically and via hard copy.
            72104         (7) A governmental entity may not challenge the validity of a notice of claim on the
            72105     grounds that it was not directed and delivered to the proper office or agent if the error is caused
            72106     by the governmental entity's failure to file or update the statement required by Subsection (5).
            72107         Section 1499. Section 63G-7-402 , which is renumbered from Section 63-30d-402 is
            72108     renumbered and amended to read:
            72109          [63-30d-402].     63G-7-402. Time for filing notice of claim.
            72110         A claim against a governmental entity, or against an employee for an act or omission
            72111     occurring during the performance of the employee's duties, within the scope of employment, or
            72112     under color of authority, is barred unless notice of claim is filed with the person and according
            72113     to the requirements of Section [ 63-30d-401 ] 63G-7-401 within one year after the claim arises
            72114     regardless of whether or not the function giving rise to the claim is characterized as
            72115     governmental.
            72116         Section 1500. Section 63G-7-403 , which is renumbered from Section 63-30d-403 is
            72117     renumbered and amended to read:
            72118          [63-30d-403].     63G-7-403. Notice of claim -- Approval or denial by
            72119      governmental entity or insurance carrier within 60 days -- Remedies for denial of claim.
            72120         (1) (a) Within 60 days of the filing of a notice of claim, the governmental entity or its
            72121     insurance carrier shall inform the claimant in writing that the claim has either been approved or
            72122     denied.
            72123         (b) A claim is considered to be denied if, at the end of the 60-day period, the
            72124     governmental entity or its insurance carrier has failed to approve or deny the claim.
            72125         (2) (a) If the claim is denied, a claimant may institute an action in the district court
            72126     against the governmental entity or an employee of the entity.
            72127         (b) The claimant shall begin the action within one year after denial of the claim or within
            72128     one year after the denial period specified in this chapter has expired, regardless of whether or
            72129     not the function giving rise to the claim is characterized as governmental.

            72130         Section 1501. Section 63G-7-501 , which is renumbered from Section 63-30d-501 is
            72131     renumbered and amended to read:
            72132     
Part 5. Legal Actions Under This Chapter - Jurisdiction and Venue

            72133          [63-30d-501].     63G-7-501. Jurisdiction of district courts over actions.
            72134         (1) The district courts have exclusive, original jurisdiction over any action brought
            72135     under this chapter.
            72136         (2) An action brought under this chapter may not be tried as a small claims action.
            72137         Section 1502. Section 63G-7-502 , which is renumbered from Section 63-30d-502 is
            72138     renumbered and amended to read:
            72139          [63-30d-502].     63G-7-502. Venue of actions.
            72140         (1) Actions against the state may be brought in the county in which the claim arose or in
            72141     Salt Lake County.
            72142         (2) (a) Actions against a county may be brought in the county in which the claim arose,
            72143     or in the defendant county, or, upon leave granted by a district court judge of the defendant
            72144     county, in any county contiguous to the defendant county.
            72145         (b) Leave may be granted ex parte.
            72146         (3) Actions against all other political subdivisions, including cities and towns, shall be
            72147     brought in the county in which the political subdivision is located or in the county in which the
            72148     claim arose.
            72149         Section 1503. Section 63G-7-601 , which is renumbered from Section 63-30d-601 is
            72150     renumbered and amended to read:
            72151     
Part 6. Legal Actions Under This Chapter - Procedures,

            72152     
Requirements, Damages, and Limitations on Judgments

            72153          [63-30d-601].     63G-7-601. Actions governed by Utah Rules of Civil
            72154      Procedure -- Undertaking required.
            72155         (1) An action brought under this chapter shall be governed by the Utah Rules of Civil
            72156     Procedure to the extent that they are consistent with this chapter.
            72157         (2) At the time the action is filed, the plaintiff shall file an undertaking in a sum fixed by

            72158     the court that is:
            72159         (a) not less than $300; and
            72160         (b) conditioned upon payment by the plaintiff of taxable costs incurred by the
            72161     governmental entity in the action if the plaintiff fails to prosecute the action or fails to recover
            72162     judgment.
            72163         Section 1504. Section 63G-7-602 , which is renumbered from Section 63-30d-602 is
            72164     renumbered and amended to read:
            72165          [63-30d-602].     63G-7-602. Compromise and settlement of claims.
            72166         (1) A political subdivision, after conferring with its legal officer or other legal counsel if
            72167     it does not have a legal officer, may compromise and settle any action as to the damages or
            72168     other relief sought.
            72169         (2) The risk manager in the Department of Administrative Services may compromise
            72170     and settle any action against the state for which the Risk Management Fund may be liable:
            72171         (a) on the risk manager's own authority, if the amount of the settlement is $25,000 or
            72172     less;
            72173         (b) with the concurrence of the attorney general or the attorney general's representative
            72174     and the executive director of the Department of Administrative Services if the amount of the
            72175     settlement is $25,000.01 to $100,000; or
            72176         (c) by complying with the procedures and requirements of [Title 63, Chapter 38b] Title
            72177     63G, Chapter 10, State Settlement Agreements, if the amount of the settlement is more than
            72178     $100,000.
            72179         Section 1505. Section 63G-7-603 , which is renumbered from Section 63-30d-603 is
            72180     renumbered and amended to read:
            72181          [63-30d-603].     63G-7-603. Exemplary or punitive damages prohibited --
            72182      Governmental entity exempt from execution, attachment, or garnishment.
            72183         (1) (a) A judgment may not be rendered against a governmental entity for exemplary or
            72184     punitive damages.
            72185         (b) If a governmental entity would be required to pay the judgment under Section

            72186     [ 63-30d-902 ] 63G-7-902 or [ 63-30d-903 ] 63G-7-903 , the governmental entity shall pay any
            72187     judgment or portion of any judgment entered against its employee in the employee's personal
            72188     capacity even if the judgment is for or includes exemplary or punitive damages.
            72189         (2) Execution, attachment, or garnishment may not issue against a governmental entity.
            72190         Section 1506. Section 63G-7-604 , which is renumbered from Section 63-30d-604 is
            72191     renumbered and amended to read:
            72192          [63-30d-604].     63G-7-604. Limitation of judgments against governmental
            72193      entity or employee -- Process for adjustment of limits.
            72194         (1) (a) Except as provided in Subsection (2) and subject to Subsection (3), if a
            72195     judgment for damages for personal injury against a governmental entity, or an employee whom
            72196     a governmental entity has a duty to indemnify, exceeds $583,900 for one person in any one
            72197     occurrence, the court shall reduce the judgment to that amount.
            72198         (b) A court may not award judgment of more than the amount in effect under
            72199     Subsection (1)(a) for injury or death to one person regardless of whether or not the function
            72200     giving rise to the injury is characterized as governmental.
            72201         (c) Except as provided in Subsection (2) and subject to Subsection (3), if a judgment
            72202     for property damage against a governmental entity, or an employee whom a governmental entity
            72203     has a duty to indemnify, exceeds $233,600 in any one occurrence, the court shall reduce the
            72204     judgment to that amount, regardless of whether or not the function giving rise to the damage is
            72205     characterized as governmental.
            72206         (d) Subject to Subsection (3), there is a $2,000,000 limit to the aggregate amount of
            72207     individual awards that may be awarded in relation to a single occurrence.
            72208         (2) The damage limits established in this section do not apply to damages awarded as
            72209     compensation when a governmental entity has taken or damaged private property for public use
            72210     without just compensation.
            72211         (3) The limitations of judgments established in Subsection (1) shall be adjusted
            72212     according to the methodology set forth in Subsection (4).
            72213         (4) (a) Each even-numbered year, the risk manager shall:

            72214         (i) calculate the consumer price index as provided in Sections 1(f)(4) and 1(f)(5),
            72215     Internal Revenue Code;
            72216         (ii) calculate the increase or decrease in the limitation of judgment amounts established
            72217     in this section as a percentage equal to the percentage change in the Consumer Price Index since
            72218     the previous adjustment made by the risk manager or the Legislature; and
            72219         (iii) after making an increase or decrease under Subsection (4)(a)(ii), round up the
            72220     limitation of judgment amounts established in Subsection (1) to the nearest $100.
            72221         (b) Each even-numbered year, the risk manager shall make rules, which become
            72222     effective no later than July 1, that establish the new limitation of judgment amounts calculated
            72223     under Subsection (4)(a).
            72224         (c) Adjustments made by the risk manager to the limitation of judgment amounts
            72225     established by this section have prospective effect only from the date the rules establishing the
            72226     new limitation of judgment take effect and those adjusted limitations of judgment apply only to
            72227     claims for injuries or losses that occur after the effective date of the rules that establish those
            72228     new limitations of judgment.
            72229         Section 1507. Section 63G-7-701 , which is renumbered from Section 63-30d-701 is
            72230     renumbered and amended to read:
            72231     
Part 7. Payment Process and Sources for Paying Proved

            72232     
Claims Against Governmental Entities

            72233          [63-30d-701].     63G-7-701. Payment of claim or judgment against state --
            72234      Presentment for payment.
            72235         (1) (a) Each claim, as defined by Subsection [ 63-30d-102 ] 63G-7-102 (1), that is
            72236     approved by the state or any final judgment obtained against the state shall be presented for
            72237     payment to:
            72238         (i) the state risk manager; or
            72239         (ii) the office, agency, institution, or other instrumentality involved, if payment by that
            72240     instrumentality is otherwise permitted by law.
            72241         (b) If payment of the claim is not authorized by law, the judgment or claim shall be

            72242     presented to the board of examiners for action as provided in Section [ 63-6-10 ] 63G-9-301 .
            72243         (c) If a judgment against the state is reduced by the operation of Section [ 63-30d-604 ]
            72244      63G-7-604 , the claimant may submit the excess claim to the board of examiners.
            72245         Section 1508. Section 63G-7-702 , which is renumbered from Section 63-30d-702 is
            72246     renumbered and amended to read:
            72247          [63-30d-702].     63G-7-702. Payment of claim or judgment against political
            72248      subdivision -- Procedure by governing body -- Payment options.
            72249         (1) (a) Each claim approved by a political subdivision or any final judgment obtained
            72250     against a political subdivision shall be submitted to the governing body of the political
            72251     subdivision.
            72252         (b) The governing body shall pay the claim immediately from the general funds of the
            72253     political subdivision unless:
            72254         (i) the funds are appropriated to some other use or restricted by law or contract for
            72255     other purposes; or
            72256         (ii) the political subdivision opts to pay the claim or award in installments under
            72257     Subsection (2).
            72258         (2) If the subdivision is unable to pay the claim or award during the current fiscal year,
            72259     it may pay the claim or award in not more than ten ensuing annual installments of equal size or
            72260     in whatever other installments that are agreeable to the claimant.
            72261         Section 1509. Section 63G-7-703 , which is renumbered from Section 63-30d-703 is
            72262     renumbered and amended to read:
            72263          [63-30d-703].     63G-7-703. Reserve funds for payment of claims or purchase
            72264      of insurance created by political subdivisions.
            72265         Any political subdivision may create and maintain a reserve fund or, may jointly with one
            72266     or more other political subdivisions, make contributions to a joint reserve fund, for the purpose
            72267     of:
            72268         (1) making payment of claims against the cooperating subdivisions when they become
            72269     payable under this chapter; or

            72270         (2) for the purpose of purchasing liability insurance to protect the cooperating
            72271     subdivisions from any or all risks created by this chapter.
            72272         Section 1510. Section 63G-7-704 , which is renumbered from Section 63-30d-704 is
            72273     renumbered and amended to read:
            72274          [63-30d-704].     63G-7-704. Tax levy by political subdivisions for payment of
            72275      claims, judgments, or insurance premiums.
            72276         (1) Notwithstanding any provision of law to the contrary, a political subdivision may
            72277     levy an annual property tax sufficient to pay:
            72278         (a) any claim, settlement, or judgment;
            72279         (b) the costs to defend against any claim, settlement, or judgment; or
            72280         (c) for the establishment and maintenance of a reserve fund for the payment of claims,
            72281     settlements, or judgments that may be reasonably anticipated.
            72282         (2) (a) The payments authorized to pay for punitive damages or to pay the premium for
            72283     authorized insurance is money spent for a public purpose within the meaning of this section and
            72284     Article XIII, Sec. 5, Utah Constitution, even though, as a result of the levy, the maximum levy
            72285     as otherwise restricted by law is exceeded.
            72286         (b) No levy under this section may exceed .0001 per dollar of taxable value of taxable
            72287     property.
            72288         (c) The revenues derived from this levy may not be used for any purpose other than
            72289     those specified in this section.
            72290         Section 1511. Section 63G-7-801 , which is renumbered from Section 63-30d-801 is
            72291     renumbered and amended to read:
            72292     
Part 8. Self-Insurance and Purchase of Liability Insurance by Governmental Entities

            72293          [63-30d-801].     63G-7-801. Insurance -- Self-insurance or purchase of
            72294      liability insurance by governmental entity authorized -- Establishment of trust accounts
            72295      for self-insurance.
            72296         (1) Any governmental entity within the state may self-insure, purchase commercial
            72297     insurance, or self-insure and purchase excess commercial insurance in excess of the statutory

            72298     limits of this chapter against:
            72299         (a) any risk created or recognized by this chapter; or
            72300         (b) any action for which a governmental entity or its employee may be held liable.
            72301         (2) (a) In addition to any other reasonable means of self-insurance, a governmental
            72302     entity may self-insure with respect to specified classes of claims by establishing a trust account.
            72303         (b) In creating the trust account, the governmental entity shall ensure that:
            72304         (i) the trust account is managed by an independent private trustee; and
            72305         (ii) the independent private trustee has authority, with respect to claims covered by the
            72306     trust, to:
            72307         (A) expend both principal and earnings of the trust account solely to pay the costs of
            72308     investigation, discovery, and other pretrial and litigation expenses including attorneys' fees; and
            72309         (B) pay all sums for which the governmental entity may be adjudged liable or for which
            72310     a compromise settlement may be agreed upon.
            72311         (c) Notwithstanding any law to the contrary, the trust agreement between the
            72312     governmental entity and the trustee may authorize the trustee to:
            72313         (i) employ counsel to defend actions against the entity and its employees;
            72314         (ii) protect and safeguard the assets of the trust;
            72315         (iii) provide for claims investigation and adjustment services;
            72316         (iv) employ expert witnesses and consultants; and
            72317         (v) provide other services and functions that are necessary and proper to carry out the
            72318     purposes of the trust.
            72319         (d) The monies and interest earned on the trust fund may be invested by following the
            72320     procedures and requirements of Title 51, Chapter 7, State Money Management Act, and are
            72321     subject to audit by the state auditor.
            72322         Section 1512. Section 63G-7-802 , which is renumbered from Section 63-30d-802 is
            72323     renumbered and amended to read:
            72324          [63-30d-802].     63G-7-802. Insurance -- Liability insurance -- Government
            72325      vehicles operated by employees outside scope of employment.

            72326         (1) A governmental entity that owns vehicles driven by an employee of the
            72327     governmental entity with the express or implied consent of the entity, but which, at the time
            72328     liability is incurred as a result of an automobile accident, is not being driven and used within the
            72329     course and scope of the driver's employment is, subject to Subsection (2), considered to provide
            72330     the driver with the insurance coverage required by Title 41, Chapter 12a, Financial
            72331     Responsibility of Motor Vehicle Owners and Operators Act.
            72332         (2) The liability coverages considered provided are the minimum limits under Section
            72333      31A-22-304 .
            72334         Section 1513. Section 63G-7-803 , which is renumbered from Section 63-30d-803 is
            72335     renumbered and amended to read:
            72336          [63-30d-803].     63G-7-803. Liability insurance -- Construction of policy not
            72337      in compliance with act.
            72338         (1) If any insurance policy, rider, or endorsement issued after June 30, 2004 that was
            72339     purchased to insure against any risk that may arise as a result of the application of this chapter
            72340     contains any condition or provision not in compliance with the requirements of this chapter, that
            72341     policy, rider, or endorsement is not invalid, but shall be construed and applied according to the
            72342     conditions and provisions that would have applied had the policy, rider, or endorsement been in
            72343     full compliance with this chapter, provided that the policy is otherwise valid.
            72344         (2) If any insurance policy, rider, or endorsement issued after June 30, 1966 and before
            72345     July 1, 2004 that was purchased to insure against any risk that may arise as a result of the
            72346     application of this chapter contains any condition or provision not in compliance with the
            72347     requirements of the chapter, that policy, rider, or endorsement is not invalid, but shall be
            72348     construed and applied according to the conditions and provisions that would have applied had
            72349     the policy, rider, or endorsement been in full compliance with this chapter, provided that the
            72350     policy is otherwise valid.
            72351         Section 1514. Section 63G-7-804 , which is renumbered from Section 63-30d-804 is
            72352     renumbered and amended to read:
            72353          [63-30d-804].     63G-7-804. Liability insurance -- Methods for purchase or

            72354      renewal.
            72355         (1) Except as provided in Subsection (2), a contract or policy of insurance may be
            72356     purchased or renewed under this chapter only upon public bid to be let to the lowest and best
            72357     bidder.
            72358         (2) The purchase or renewal of insurance by the state shall be conducted in accordance
            72359     with the provisions of [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code.
            72360         Section 1515. Section 63G-7-805 , which is renumbered from Section 63-30d-805 is
            72361     renumbered and amended to read:
            72362          [63-30d-805].     63G-7-805. Liability insurance -- Insurance for employees
            72363      authorized -- No right to indemnification or contribution from governmental agency.
            72364         (1) (a) A governmental entity may insure any or all of its employees against liability, in
            72365     whole or in part, for injury or damage resulting from an act or omission occurring during the
            72366     performance of an employee's duties, within the scope of employment, or under color of
            72367     authority, regardless of whether or not that entity is immune from suit for that act or omission.
            72368         (b) Any expenditure for that insurance is for a public purpose.
            72369         (c) Under any contract or policy of insurance providing coverage on behalf of a
            72370     governmental entity or employee for any liability defined by this section, regardless of the
            72371     source of funding for the coverage, the insurer has no right to indemnification or contribution
            72372     from the governmental entity or its employee for any loss or liability covered by the contract or
            72373     policy.
            72374         (2) Any surety covering a governmental entity or its employee under any faithful
            72375     performance surety bond has no right to indemnification or contribution from the governmental
            72376     entity or its employee for any loss covered by that bond based on any act or omission for which
            72377     the governmental entity would be obligated to defend or indemnify under the provisions of
            72378     Section [ 63-30d-902 ] 63G-7-902 .
            72379         Section 1516. Section 63G-7-901 , which is renumbered from Section 63-30d-901 is
            72380     renumbered and amended to read:
            72381     
Part 9. Coverage and Representation of State Entities and Employees

            72382          [63-30d-901].     63G-7-901. Expenses of attorney general, general counsel for
            72383      state judiciary, and general counsel for the Legislature in representing the state, its
            72384      branches, members, or employees.
            72385         (1) (a) The Office of the Attorney General has primary responsibility to provide legal
            72386     representation to the judicial, executive, and legislative branches of state government in cases
            72387     where coverage under the Risk Management Fund created by Section 63A-4-201 applies.
            72388         (b) When the attorney general has primary responsibility to provide legal representation
            72389     to the judicial or legislative branches, the attorney general shall consult with the general counsel
            72390     for the state judiciary and with the general counsel for the Legislature, to solicit their assistance
            72391     in defending their respective branch, and in determining strategy and making decisions
            72392     concerning the disposition of those claims.
            72393         (c) Notwithstanding Subsection (1)(b), the decision for settlement of monetary claims in
            72394     those cases lies with the attorney general and the state risk manager.
            72395         (2) (a) If the Judicial Council, after consultation with the general counsel for the state
            72396     judiciary, determines that the Office of the Attorney General cannot adequately defend the state
            72397     judiciary, its members, or employees because of a conflict of interest, separation of powers
            72398     concerns, or other political or legal differences, the Judicial Council may direct its general
            72399     counsel to separately represent and defend it.
            72400         (b) If the general counsel for the state judiciary undertakes independent legal
            72401     representation of the state judiciary, its members, or employees, the general counsel shall notify
            72402     the state risk manager and the attorney general in writing before undertaking that
            72403     representation.
            72404         (c) If the state judiciary elects to be represented by its own counsel under this section,
            72405     the decision for settlement of claims against the state judiciary, its members, or employees,
            72406     where Risk Management Fund coverage applies, lies with the general counsel for the state
            72407     judiciary and the state risk manager.
            72408         (3) (a) If the Legislative Management Committee, after consultation with the general
            72409     counsel for the Legislature, determines that the Office of the Attorney General cannot

            72410     adequately defend the legislative branch, its members, or employees because of a conflict of
            72411     interest, separation of powers concerns, or other political or legal differences, the Legislative
            72412     Management Committee may direct its general counsel to separately represent and defend it.
            72413         (b) If the general counsel for the Legislature undertakes independent legal
            72414     representation of the Legislature, its members, or employees, the general counsel shall notify the
            72415     state risk manager and the attorney general in writing before undertaking that representation.
            72416         (c) If the legislative branch elects to be represented by its own counsel under this
            72417     section, the decision for settlement of claims against the legislative branch, its members, or
            72418     employees, where Risk Management Fund coverage applies, lies with the general counsel for
            72419     the Legislature and the state risk manager.
            72420         (4) (a) Notwithstanding the provisions of Section 67-5-3 or any other provision of the
            72421     Utah Code, the attorney general, the general counsel for the state judiciary, and the general
            72422     counsel for the Legislature may bill the Department of Administrative Services for all costs and
            72423     legal fees expended by their respective offices, including attorneys' and secretarial salaries, in
            72424     representing the state or any indemnified employee against any claim for which the Risk
            72425     Management Fund may be liable and in advising state agencies and employees regarding any of
            72426     those claims.
            72427         (b) The risk manager shall draw funds from the Risk Management Fund for this
            72428     purpose.
            72429         Section 1517. Section 63G-7-902 , which is renumbered from Section 63-30d-902 is
            72430     renumbered and amended to read:
            72431          [63-30d-902].     63G-7-902. Defending government employee -- Request --
            72432      Cooperation -- Payment of judgment.
            72433         (1) Except as provided in Subsections (2) and (3), a governmental entity shall defend
            72434     any action brought against its employee arising from an act or omission occurring:
            72435         (a) during the performance of the employee's duties;
            72436         (b) within the scope of the employee's employment; or
            72437         (c) under color of authority.

            72438         (2) (a) Before a governmental entity may defend its employee against a claim, the
            72439     employee shall make a written request to the governmental entity to defend [him] the employee:
            72440         (i) within ten days after service of process upon [him] the employee; or
            72441         (ii) within a longer period that would not prejudice the governmental entity in
            72442     maintaining a defense on [his] the employee's behalf; or
            72443         (iii) within a period that would not conflict with notice requirements imposed on the
            72444     entity in connection with insurance carried by the entity relating to the risk involved.
            72445         (b) If the employee fails to make a request, or fails to reasonably cooperate in the
            72446     defense, including the making of an offer of judgment under Rule 68, Utah Rules of Civil
            72447     Procedure, Offers of Judgment, the governmental entity need not defend or continue to defend
            72448     the employee, nor pay any judgment, compromise, or settlement against the employee in respect
            72449     to the claim.
            72450         (3) The governmental entity may decline to defend, or, subject to any court rule or
            72451     order, decline to continue to defend, an action against an employee if it determines:
            72452         (a) that the act or omission in question did not occur:
            72453         (i) during the performance of the employee's duties;
            72454         (ii) within the scope of [his] the employee's employment; or
            72455         (iii) under color of authority; or
            72456         (b) that the injury or damage on which the claim was based resulted from conditions set
            72457     forth in Subsection [ 63-30d-202 ] 63G-7-202 (3)(c).
            72458         (4) (a) Within ten days of receiving a written request to defend an employee, the
            72459     governmental entity shall inform the employee whether or not it shall provide a defense, and, if
            72460     it refuses to provide a defense, the basis for its refusal.
            72461         (b) A refusal by the entity to provide a defense is not admissible for any purpose in the
            72462     action in which the employee is a defendant.
            72463         (5) Except as provided in Subsection (6), if a governmental entity conducts the defense
            72464     of an employee, the governmental entity shall pay any judgment based upon the claim.
            72465         (6) A governmental entity may conduct the defense of an employee under a reservation

            72466     of rights under which the governmental entity reserves the right not to pay a judgment if any of
            72467     the conditions set forth in Subsection (3) are established.
            72468         (7) (a) Nothing in this section or Section [ 63-30d-903 ] 63G-7-903 affects the obligation
            72469     of a governmental entity to provide insurance coverage according to the requirements of
            72470     Subsection 41-12a-301 (3) and Section [ 63-30d-802 ] 63G-7-802 .
            72471         (b) When a governmental entity declines to defend, or declines to continue to defend,
            72472     an action against its employee under any of the conditions set forth in Subsection (3), it shall
            72473     still provide coverage up to the amount specified in Section 31A-22-304 .
            72474         Section 1518. Section 63G-7-903 , which is renumbered from Section 63-30d-903 is
            72475     renumbered and amended to read:
            72476          [63-30d-903].     63G-7-903. Recovery of judgment paid and defense costs by
            72477      government employee.
            72478         (1) Subject to Subsection (2), if an employee pays a judgment entered against him, or
            72479     any portion of it, that the governmental entity is required to pay under Section [ 63-30d-902 ]
            72480      63G-7-902 , the employee may recover from the governmental entity the amount of the payment
            72481     and the reasonable costs incurred in the employee's defense.
            72482         (2) (a) If a governmental entity does not conduct the defense of an employee against a
            72483     claim, or conducts the defense under a reservation of rights as provided in Subsection
            72484     [ 63-30d-902 ] 63G-7-902 (6), the employee may recover from the governmental entity under
            72485     Subsection (1) if the employee can prove that none of the conditions set forth in Subsection
            72486     [ 63-30d-202 ] 63G-7-202 (3)(c) applied.
            72487         (b) The employee has the burden of proof that none of the conditions set forth in
            72488     Subsection [ 63-30d-202 ] 63G-7-202 (3)(c) applied.
            72489         Section 1519. Section 63G-7-904 , which is renumbered from Section 63-30d-904 is
            72490     renumbered and amended to read:
            72491          [63-30d-904].     63G-7-904. Indemnification of governmental entity by
            72492      employee not required.
            72493         If a governmental entity pays all or part of a judgment, compromise, or settlement based

            72494     on a claim against the governmental entity or an employee, the employee is not required to
            72495     indemnify the governmental entity for the payment.
            72496         Section 1520. Section 63G-8-101 is enacted to read:
            72497     
CHAPTER 8. IMMUNITY FOR PERSONS PERFORMING

            72498     
VOLUNTARY SERVICES ACT

            72499     
Part 1. General Provisions

            72500          63G-8-101. Title.
            72501         This chapter is known as the "Immunity for Persons Performing Voluntary Services
            72502     Act."
            72503         Section 1521. Section 63G-8-102 , which is renumbered from Section 63-30b-1 is
            72504     renumbered and amended to read:
            72505          [63-30b-1].     63G-8-102. Definitions.
            72506         As used in this act:
            72507         (1) "Public entity" means the state or any political subdivision of it, or any office,
            72508     department, division, board, agency, commission, council, authority, institution, hospital,
            72509     school, college, university, or other instrumentality of the state or any political subdivision.
            72510         (2) "Compensation" means payment for services in any form whatsoever, whether per
            72511     diem or otherwise, except where the payment is solely for the purpose of paying subsistence,
            72512     travel, or other expenses incurred by the person performing those services.
            72513         Section 1522. Section 63G-8-201 , which is renumbered from Section 63-30b-2 is
            72514     renumbered and amended to read:
            72515     
Part 2. Immunity for Voluntary Services

            72516          [63-30b-2].     63G-8-201. Voluntary services -- Immunity from liability --
            72517      Exceptions.
            72518         Any person performing services on a voluntary basis, without compensation, under the
            72519     general supervision of, and on behalf of any public entity, shall be immune from liability with
            72520     respect to any decisions or actions, other than in connection with the operation of a motor
            72521     vehicle, taken during the course of those services, unless it is established that such decisions or

            72522     actions were grossly negligent, not made in good faith, or were made maliciously.
            72523         Section 1523. Section 63G-8-202 , which is renumbered from Section 63-30b-3 is
            72524     renumbered and amended to read:
            72525          [63-30b-3].     63G-8-202. Action under Governmental Immunity Act of Utah
            72526      permitted.
            72527         Nothing in this chapter shall preclude legal action against a public entity for any injury
            72528     occurring as a result of the decisions or actions taken by a person performing services on a
            72529     voluntary basis for that entity, where such action would otherwise be permitted under [Title 63,
            72530     Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah.
            72531         Section 1524. Section 63G-8-301 , which is renumbered from Section 63-30b-4 is
            72532     renumbered and amended to read:
            72533     
Part 3. Application

            72534          [63-30b-4].     63G-8-301. Applicability of act.
            72535         This act shall apply to any actions or decisions taken subsequent to the effective date of
            72536     this act.
            72537         Section 1525. Section 63G-9-101 is enacted to read:
            72538     
CHAPTER 9. BOARD OF EXAMINERS ACT

            72539     
Part 1. General Provisions

            72540          63G-9-101. Title.
            72541         This chapter is known as the "Board of Examiners Act."
            72542         Section 1526. Section 63G-9-201 , which is renumbered from Section 63-6-1 is
            72543     renumbered and amended to read:
            72544     
Part 2. Board of Examiners

            72545          [63-6-1].     63G-9-201. Members -- Functions.
            72546         (1) As used in this chapter:
            72547         (a) "Political subdivision" means any county, city, town, school district, community
            72548     development and renewal agency, special improvement or taxing district, local district, special
            72549     service district, an entity created by an interlocal agreement adopted under Title 11, Chapter 13,

            72550     Interlocal Cooperation Act, or other governmental subdivision or public corporation.
            72551         (b) "State" means the state of Utah, and includes each office, department, division,
            72552     agency, authority, commission, board, institution, college, university, Children's Justice Center,
            72553     or other instrumentality of the state.
            72554         (2) The governor, the state auditor, and the attorney general shall constitute a Board of
            72555     Examiners, with power to examine all claims against the state or a political subdivision, for the
            72556     payment of which funds appropriated by the Legislature or derived from any other source are
            72557     not available.
            72558         (3) No claim against the state or a political subdivision, for the payment of which
            72559     specifically designated funds are required to be appropriated by the Legislature shall be passed
            72560     upon by the Legislature without having been considered and acted upon by the Board of
            72561     Examiners.
            72562         (4) The governor shall be the president, and the state auditor shall be the secretary of
            72563     the board, and in the absence of either an officer pro tempore may be elected from among the
            72564     members of the board.
            72565         Section 1527. Section 63G-9-202 , which is renumbered from Section 63-6-1.5 is
            72566     renumbered and amended to read:
            72567          [63-6-1.5].     63G-9-202. Procedures -- Adjudicative proceedings.
            72568         The Board of Examiners shall comply with the procedures and requirements of [Title 63,
            72569     Chapter 46b,] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
            72570     proceedings.
            72571         Section 1528. Section 63G-9-203 , which is renumbered from Section 63-6-2 is
            72572     renumbered and amended to read:
            72573          [63-6-2].     63G-9-203. Meetings.
            72574         The meetings of the board shall be held upon the call of the president or any two
            72575     members.
            72576         Section 1529. Section 63G-9-204 , which is renumbered from Section 63-6-3 is
            72577     renumbered and amended to read:

            72578          [63-6-3].     63G-9-204. Record of proceedings.
            72579         The board must keep a record of all its proceedings, and any member may cause [his]
            72580     the member's dissent to the action of a majority upon any matter to be entered upon such
            72581     record. An abstract of all claims must be entered upon the minutes of the board before the same
            72582     are acted upon.
            72583         Section 1530. Section 63G-9-205 , which is renumbered from Section 63-6-4 is
            72584     renumbered and amended to read:
            72585          [63-6-4].     63G-9-205. Rules and regulations.
            72586         The board may, in writing, establish rules and regulations not inconsistent with law for
            72587     its government.
            72588         Section 1531. Section 63G-9-206 , which is renumbered from Section 63-6-5 is
            72589     renumbered and amended to read:
            72590          [63-6-5].     63G-9-206. Witnesses -- Subpoena -- Examination -- Fees.
            72591         The president of the board may issue subpoenas and compel the attendance of witnesses
            72592     and the production of books and papers before the board or any member thereof; and any
            72593     member of the board may administer oaths and may examine witnesses. Whenever a witness is
            72594     subpoenaed before the board to testify against any claim pending before it, the board may allow
            72595     a reasonable fee to such witness for attendance, which fee must not exceed the fees allowed by
            72596     law to witnesses in civil cases, and must be paid out of the appropriation for the contingent
            72597     expenses of the board; provided, that in no instance shall a fee be allowed to a witness who has
            72598     appeared in behalf of a claimant.
            72599         Section 1532. Section 63G-9-207 , which is renumbered from Section 63-6-6 is
            72600     renumbered and amended to read:
            72601          [63-6-6].     63G-9-207. Depositions.
            72602         Each member of the board may take depositions to be used before it.
            72603         Section 1533. Section 63G-9-301 , which is renumbered from Section 63-6-10 is
            72604     renumbered and amended to read:
            72605     
Part 3. Review of Claims

            72606          [63-6-10].     63G-9-301. Audit and approval of claims -- Overexpenditure by
            72607      agencies.
            72608         (1) (a) The Board of Examiners shall audit any claim presented to it, if the settlement of
            72609     the claim is required by law.
            72610         (b) If the claim is approved, the board shall transmit it to the Legislature with a
            72611     statement of the reasons for the approval.
            72612         (2) When an agency's line item appropriation has been overexpended and a written
            72613     report is submitted to the board as required by Section [ 63-38-10 ] 63J-1-405 , the board shall
            72614     review the report and either:
            72615         (a) recommend and submit to the Legislature any supplemental appropriations or
            72616     corrective legislation that may be needed; or
            72617         (b) recommend other internal procedures or policies that will make an overexpenditure
            72618     in the future unlikely.
            72619         Section 1534. Section 63G-9-302 , which is renumbered from Section 63-6-11 is
            72620     renumbered and amended to read:
            72621          [63-6-11].     63G-9-302. Form for presentment of claim against the state or
            72622      political subdivision.
            72623         Any person having a claim against the state or a political subdivision, for which funds
            72624     have not been provided for the payment thereof, or the settlement of which is not otherwise
            72625     provided for by law, must present the same to the Board of Examiners, accompanied by a
            72626     statement showing the facts constituting the claim.
            72627         Section 1535. Section 63G-9-303 , which is renumbered from Section 63-6-12 is
            72628     renumbered and amended to read:
            72629          [63-6-12].     63G-9-303. Meeting to examine claims -- Notice of meeting.
            72630         At least 60 days preceding the meeting of each Legislature the board must hold a session
            72631     for the purpose of examining the claims referred to in Section [ 63-6-11 ] 63G-9-302 , and may
            72632     adjourn from time to time until the work is completed. The board must cause notice of such
            72633     meeting or meetings to be published in some newspaper at the seat of government and such

            72634     other newspapers as may be determined by the board for such time as the board may prescribe.
            72635         Section 1536. Section 63G-9-304 , which is renumbered from Section 63-6-13 is
            72636     renumbered and amended to read:
            72637          [63-6-13].     63G-9-304. Adjustment of claims -- Recommendations to
            72638      Legislature.
            72639         (1) The board must, at the time designated, proceed to examine and adjust all claims
            72640     referred to in Section [ 63-6-11 ] 63G-9-302 , and may hear evidence in support of or against
            72641     them, and shall report to the Legislature the facts and recommendations concerning them as it
            72642     may think proper.
            72643         (2) In making its recommendations, the board may state and use any official or personal
            72644     knowledge which any member of the board may have touching such claims.
            72645         (3) The board shall not pass upon or send to the Legislature any claim for which the
            72646     state or a political subdivision would not otherwise be liable were it not for its sovereign
            72647     immunity.
            72648         (4) Notwithstanding Subsection (3), claims wherein the state or a political subdivision
            72649     would be liable, were it not for its sovereign immunity, whether recommended by the board for
            72650     approval or disapproval, shall be reported by the board to the Legislature with appropriate
            72651     findings and recommendations as above provided.
            72652         Section 1537. Section 63G-9-305 , which is renumbered from Section 63-6-14 is
            72653     renumbered and amended to read:
            72654          [63-6-14].     63G-9-305. Publication of abstract of claims allowed and rejected.
            72655         The board must make up its report and recommendations at least thirty days before the
            72656     meeting of the Legislature; and a brief abstract of the report, showing the claims rejected, and
            72657     those allowed and the amounts thereof, must be published in a newspaper published at the seat
            72658     of government before the meeting of the Legislature for such time as the board may prescribe.
            72659         Section 1538. Section 63G-9-306 , which is renumbered from Section 63-6-16 is
            72660     renumbered and amended to read:
            72661          [63-6-16].     63G-9-306. Reconsideration of rejected claims.

            72662         The board shall not entertain for a third time a demand against the state or a political
            72663     subdivision once rejected by it or by the Legislature, unless the facts or reasons are presented to
            72664     the board as in actions between private parties would furnish sufficient ground for granting a
            72665     new trial.
            72666         Section 1539. Section 63G-9-401 , which is renumbered from Section 63-6-17 is
            72667     renumbered and amended to read:
            72668     
Part 4. Appeal of Claim Reviews

            72669          [63-6-17].     63G-9-401. Appeal to Legislature.
            72670         Any person interested who is aggrieved by the disapproval of a claim by the board may
            72671     appeal from its decision to the Legislature by filing with the board a notice thereof, and upon
            72672     the receipt of such notice the board must transmit the demand and all the papers accompanying
            72673     the same, with a statement of the evidence taken before it, to the Legislature.
            72674         Section 1540. Section 63G-10-101 is enacted to read:
            72675     
CHAPTER 10. STATE SETTLEMENT AGREEMENTS ACT

            72676     
Part 1. General Provisions

            72677          63G-10-101. Title.
            72678         This chapter is known as the "State Settlement Agreements Act."
            72679         Section 1541. Section 63G-10-102 , which is renumbered from Section 63-38b-101 is
            72680     renumbered and amended to read:
            72681          [63-38b-101].     63G-10-102. Definitions.
            72682         As used in this chapter:
            72683         (1) (a) "Action settlement agreement" includes a stipulation, consent decree, settlement
            72684     agreement, or any other legally binding document or representation that resolves a threatened or
            72685     pending lawsuit between the state and another party by requiring the state to take legally
            72686     binding action.
            72687         (b) "Action settlement agreement" includes stipulations, consent decrees, settlement
            72688     agreements, and other legally binding documents or representations resolving a dispute between
            72689     the state and another party when the state is required to pay money and required to take legally

            72690     binding action.
            72691         (c) "Action settlement agreement" does not include:
            72692         (i) the internal process established by the Department of Transportation to resolve
            72693     construction contract claims;
            72694         (ii) any resolution of an employment dispute or claim made by an employee of the state
            72695     of Utah against the state as employer;
            72696         (iii) adjudicative orders issued by the State Tax Commission, the Public Service
            72697     Commission, the Labor Commission, or the Department of Workforce Services; or
            72698         (iv) the settlement of disputes arising from audits, defaults, or breaches of permits,
            72699     contracts of sale, easements, or leases by the School and Institutional Trust Lands
            72700     Administration.
            72701         (2) (a) "Agency" means each department, commission, board, council, agency,
            72702     institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
            72703     unit, bureau, panel, or other administrative unit of the state.
            72704         (b) "Agency" includes the legislative branch, the judicial branch, the attorney general's
            72705     office, the State Office of Education, the Board of Regents, the institutional councils of each
            72706     higher education institution, and each higher education institution.
            72707         (3) (a) "Financial settlement agreement" includes a stipulation, consent decree,
            72708     settlement agreement, and any other legally binding document or representation that resolves a
            72709     dispute between the state and another party exclusively by requiring the payment of money from
            72710     one party to the other.
            72711         (b) "Financial settlement agreement" does not include:
            72712         (i) agreements made under the internal process established by the Department of
            72713     Transportation to resolve construction contract claims;
            72714         (ii) adjudicative orders issued by the State Tax Commission, Public Service
            72715     Commission, Labor Commission, or the Department of Workforce Services;
            72716         (iii) the settlement of disputes arising from audits, defaults, or breaches of permits,
            72717     contracts of sale, easements, or leases by the School and Institutional Trust Lands

            72718     Administration; or
            72719         (iv) agreements made under the internal processes established by the Division of
            72720     Facilities Construction and Management or by law to resolve construction contract claims made
            72721     against the state by contractors or subcontractors.
            72722         (4) "Government entities" means the state and its political subdivisions.
            72723         Section 1542. Section 63G-10-103 , which is renumbered from Section 63-38b-102 is
            72724     renumbered and amended to read:
            72725          [63-38b-102].     63G-10-103. Notice of voidableness of settlement agreements.
            72726         Each financial settlement agreement that might cost government entities more than
            72727     $100,000 that is executed by an agency in violation of this chapter, and each action settlement
            72728     agreement that is executed by an agency in violation of this chapter, is voidable by the governor
            72729     or the Legislature as provided in this chapter.
            72730         Section 1543. Section 63G-10-201 , which is renumbered from Section 63-38b-201 is
            72731     renumbered and amended to read:
            72732     
Part 2. Financial Settlement Agreements

            72733          [63-38b-201].     63G-10-201. Governor to approve financial settlement
            72734      agreements.
            72735         (1) Before legally binding the state by executing a financial settlement agreement that
            72736     might cost government entities more than $100,000 to implement, an agency shall submit the
            72737     proposed financial settlement agreement to the governor for [his] the governor's approval or
            72738     rejection.
            72739         (2) The governor shall approve or reject each financial settlement agreement.
            72740         (3) (a) If the governor approves the financial settlement agreement, the agency may
            72741     execute the agreement.
            72742         (b) If the governor rejects the financial settlement agreement, the agency may not
            72743     execute the agreement.
            72744         (4) If an agency executes a financial settlement agreement without obtaining the
            72745     governor's approval under this section, the governor may issue an executive order declaring the

            72746     settlement agreement void.
            72747         Section 1544. Section 63G-10-202 , which is renumbered from Section 63-38b-202 is
            72748     renumbered and amended to read:
            72749          [63-38b-202].     63G-10-202. Legislative review and approval of financial
            72750      settlement agreements.
            72751         (1) (a) Before legally binding the state by executing a financial settlement agreement
            72752     that might cost government entities more than $500,000 to implement, an agency shall:
            72753         (i) submit the proposed financial settlement agreement to the governor for [his] the
            72754     governor's approval or rejection as required by Section [ 63-38b-201 ] 63G-10-201 ; and
            72755         (ii) if the governor approves the financial settlement agreement, submit the financial
            72756     settlement agreement to the Legislative Management Committee for its review and
            72757     recommendations.
            72758         (b) The Legislative Management Committee shall review the financial settlement
            72759     agreement and may:
            72760         (i) recommend that the agency execute the financial settlement agreement;
            72761         (ii) recommend that the agency reject the financial settlement agreement; or
            72762         (iii) recommend to the governor that [he] the governor call a special session of the
            72763     Legislature to review and approve or reject the financial settlement agreement.
            72764         (2) (a) Before legally binding the state by executing a financial settlement agreement
            72765     that might cost government entities more than $1,000,000 to implement, an agency shall:
            72766         (i) submit the proposed financial settlement agreement to the governor for [his] the
            72767     governor's approval or rejection as required by Section [ 63-38b-201 ] 63G-10-201 ; and
            72768         (ii) if the governor approves the financial settlement agreement, submit the financial
            72769     settlement agreement to the Legislature for its approval in an annual general session or a special
            72770     session.
            72771         (b) (i) If the Legislature approves the financial settlement agreement, the agency may
            72772     execute the agreement.
            72773         (ii) If the Legislature rejects the financial settlement agreement, the agency may not

            72774     execute the agreement.
            72775         (c) If an agency executes a financial settlement agreement without obtaining the
            72776     Legislature's approval under this Subsection (2):
            72777         (i) the governor may issue an executive order declaring the settlement agreement void;
            72778     or
            72779         (ii) the Legislature may pass a joint resolution declaring the settlement agreement void.
            72780         Section 1545. Section 63G-10-301 , which is renumbered from Section 63-38b-301 is
            72781     renumbered and amended to read:
            72782     
Part 3. Action Settlement Agreements

            72783          [63-38b-301].     63G-10-301. Cost evaluation of action settlement
            72784      agreements.
            72785         (1) Before legally binding the state to an action settlement agreement that might cost
            72786     the state a total of $100,000 or more to implement, an agency shall estimate the cost of
            72787     implementing the action settlement agreement and submit that cost estimate to the governor and
            72788     the Legislative Management Committee.
            72789         (2) The Legislative Management Committee may:
            72790         (a) direct its staff to make an independent cost estimate of the cost of implementing the
            72791     action settlement agreement; and
            72792         (b) affirmatively adopt a cost estimate as the benchmark for determining which
            72793     authorizations established by this part are necessary.
            72794         Section 1546. Section 63G-10-302 , which is renumbered from Section 63-38b-302 is
            72795     renumbered and amended to read:
            72796          [63-38b-302].     63G-10-302. Governor to approve action settlement
            72797      agreements.
            72798         (1) Before legally binding the state by executing an action settlement agreement that
            72799     might cost government entities more than $100,000 to implement, an agency shall submit the
            72800     proposed settlement agreement to the governor for [his] the governor's approval or rejection.
            72801         (2) The governor shall approve or reject each action settlement agreement.

            72802         (3) (a) If the governor approves the action settlement agreement, the agency may
            72803     execute the agreement.
            72804         (b) If the governor rejects the action settlement agreement, the agency may not execute
            72805     the agreement.
            72806         (4) If an agency executes an action settlement agreement without obtaining the
            72807     governor's approval under this section, the governor may issue an executive order declaring the
            72808     settlement agreement void.
            72809         Section 1547. Section 63G-10-303 , which is renumbered from Section 63-38b-303 is
            72810     renumbered and amended to read:
            72811          [63-38b-303].     63G-10-303. Legislative review and approval of action
            72812      settlement agreements.
            72813         (1) (a) Before legally binding the state by executing an action settlement agreement that
            72814     might cost government entities more than $500,000 to implement, an agency shall:
            72815         (i) submit the proposed action settlement agreement to the governor for [his] the
            72816     governor's approval or rejection as required by Section [ 63-38b-302 ] 63G-10-302 ; and
            72817         (ii) if the governor approves the action settlement agreement, submit the action
            72818     settlement agreement to the Legislative Management Committee for its review and
            72819     recommendations.
            72820         (b) The Legislative Management Committee shall review the action settlement
            72821     agreement and may:
            72822         (i) recommend that the agency execute the settlement agreement;
            72823         (ii) recommend that the agency reject the settlement agreement; or
            72824         (iii) recommend to the governor that [he] the governor call a special session of the
            72825     Legislature to review and approve or reject the settlement agreement.
            72826         (2) (a) Before legally binding the state by executing an action settlement agreement that
            72827     might cost government entities more than $1,000,000 to implement, an agency shall:
            72828         (i) submit the proposed action settlement agreement to the governor for [his] the
            72829     governor's approval or rejection as required by Section [ 63-38b-302 ] 63G-10-302 ; and

            72830         (ii) if the governor approves the action settlement agreement, submit the action
            72831     settlement agreement to the Legislature for its approval in an annual general session or a special
            72832     session.
            72833         (b) (i) If the Legislature approves the action settlement agreement, the agency may
            72834     execute the agreement.
            72835         (ii) If the Legislature rejects the action settlement agreement, the agency may not
            72836     execute the agreement.
            72837         (c) If an agency executes an action settlement agreement without obtaining the
            72838     Legislature's approval under this Subsection (2):
            72839         (i) the governor may issue an executive order declaring the action settlement agreement
            72840     void; or
            72841         (ii) the Legislature may pass a joint resolution declaring the action settlement agreement
            72842     void.
            72843         Section 1548. Section 63G-10-401 , which is renumbered from Section 63-38b-401 is
            72844     renumbered and amended to read:
            72845     
Part 4. Condemnation and Inverse Condemnation Settlement Agreements

            72846          [63-38b-401].     63G-10-401. Condemnation, inverse condemnation
            72847      settlements involving the Department of Transportation.
            72848         (1) Notwithstanding the provisions of this chapter, the Department of Transportation
            72849     need not obtain the approval of the governor or the Legislature for financial or action settlement
            72850     agreements that resolve condemnation or inverse condemnation cases.
            72851         (2) Financial settlement agreements involving condemnation or inverse condemnation
            72852     cases for $1,000,000 to $2,000,000 over the Department of Transportation's original appraisal
            72853     shall be presented to the Transportation Commission for approval or rejection.
            72854         (3) (a) Financial settlement agreements involving condemnation or inverse condemnation
            72855     cases for more than $2,000,000 over the Department of Transportation's original appraisal and
            72856     all action settlement agreements that resolve condemnation or inverse condemnation cases shall
            72857     be presented:

            72858         (i) to the Transportation Commission for approval or rejection; and
            72859         (ii) if the financial or action settlement agreement is approved by the Transportation
            72860     Commission, to the Legislative Management Committee.
            72861         (b) The Legislative Management Committee may recommend approval or rejection of
            72862     the financial or action settlement agreement.
            72863         (4) (a) The Department of Transportation may not enter into a financial settlement
            72864     agreement that resolves a condemnation or inverse condemnation case and requires payment of
            72865     $1,000,000 to $2,000,000 over the Department of Transportation's original appraisal until the
            72866     Transportation Commission has approved the agreement.
            72867         (b) The Department of Transportation may not enter into a financial settlement
            72868     agreement that resolves a condemnation or inverse condemnation case and requires payment of
            72869     more than $2,000,000 over the Department of Transportation's original appraisal or enter into
            72870     an action settlement agreement that resolves a condemnation or inverse condemnation case
            72871     until:
            72872         (i) the Transportation Commission has approved the agreement; and
            72873         (ii) the Legislative Management Committee has reviewed the agreement.
            72874         Section 1549. Section 63I-1-101 , which is renumbered from Section 63-55-101 is
            72875     renumbered and amended to read:
            72876     
TITLE 63I. OVERSIGHT

            72877     
CHAPTER 1. LEGISLATIVE OVERSIGHT AND SUNSET ACT

            72878     
Part 1. General Provisions

            72879          [63-55-101].     63I-1-101. Title.
            72880         (1) This title is known as "Oversight."
            72881         (2) This chapter is known as the "Legislative Oversight and Sunset Act."
            72882         Section 1550. Section 63I-1-102 , which is renumbered from Section 63-55-102 is
            72883     renumbered and amended to read:
            72884          [63-55-102].     63I-1-102. Agency defined -- Periodic termination of statutes
            72885      and agencies -- Legislative review.

            72886         (1) As used in this chapter, "agency" means any state authority, board, commission,
            72887     department, division, office, or other agency, and the statute that established it.
            72888         (2) The Legislature finds that the state should not regulate any area unless the
            72889     regulation is necessary to protect the health, safety, and welfare of the public.
            72890         (3) In order to make state government more productive and responsive to the people, it
            72891     is necessary to place many of the statutes and agencies of state government under Part 2 of this
            72892     chapter on a reauthorization schedule. Any statute or agency scheduled for termination under
            72893     this chapter is terminated unless the Legislature through affirmative act reauthorizes its
            72894     existence. The continued existence of a statute or agency subject to this chapter may not be
            72895     reauthorized for a period of more than ten years.
            72896         (4) It is the purpose of this chapter to terminate any statute or agency that is not
            72897     meeting a clear public purpose, and to improve the ability of state government to meet and fulfill
            72898     legitimate public purposes.
            72899         Section 1551. Section 63I-1-103 , which is renumbered from Section 63-55-103 is
            72900     renumbered and amended to read:
            72901          [63-55-103].     63I-1-103. Guidelines for conduct of review.
            72902         (1) (a) Any statute or agency scheduled for termination may be reviewed by an interim
            72903     committee at the direction of:
            72904         (i) Legislative Management Committee;
            72905         (ii) the chairs of an interim committee; or
            72906         (iii) an interim committee as approved by motion and majority vote of its membership.
            72907         (b) The review shall begin not later than one year before scheduled termination and end
            72908     before January 1 of the year in which termination is scheduled.
            72909         (2) In determining whether to reauthorize the statute or agency, the agency overseeing
            72910     the statute or agency scheduled for termination shall clearly identify for the interim committee
            72911     the public purpose and interest for which each statute or agency was originally created and
            72912     clearly identify whether that public purpose and interest is still relevant.
            72913         (3) The interim committee shall then consider:

            72914         (a) the extent to which the statute or agency has operated in the public interest and any
            72915     areas in which the statute or agency needs to improve its ability to operate in the public interest;
            72916         (b) the extent to which existing statutes interfere with or assist the legitimate functions
            72917     of the statute or agency, and any other circumstances including budgetary, resource, and
            72918     personnel matters that have a bearing on the capacity of the statute or agency to serve the public
            72919     interest;
            72920         (c) the extent to which the public has been encouraged to participate in the adoption of
            72921     the rules established in connection with the statute or agency;
            72922         (d) the extent to which the statute's provisions or agency's programs and services are
            72923     duplicative of those offered by other statutes or state agencies;
            72924         (e) the extent to which the objectives of the statute or agency have been accomplished
            72925     and their public benefit;
            72926         (f) the adverse effect on the public of termination of the statute or agency; and
            72927         (g) any other matter relevant to the review.
            72928         (4) It is the responsibility of any agency scheduled for termination or any agency which
            72929     has oversight responsibilities for a statute scheduled for termination to seek its reauthorization
            72930     with the Legislature.
            72931         Section 1552. Section 63I-1-104 , which is renumbered from Section 63-55-104 is
            72932     renumbered and amended to read:
            72933          [63-55-104].     63I-1-104. Terminated authority -- Winding up of affairs.
            72934         Any agency terminated under this chapter may continue in existence, if necessary to
            72935     wind up its affairs, until July 1 of the year next succeeding the year of termination.
            72936         Section 1553. Section 63I-1-105 , which is renumbered from Section 63-55-105 is
            72937     renumbered and amended to read:
            72938          [63-55-105].     63I-1-105. Reviewing committee -- Report of
            72939      recommendations.
            72940         The reviewing committee shall submit a report of its recommendations, including
            72941     proposed legislation and recommendations concerning the statute or agency, to the Legislature

            72942     before January 1 of the year in which the agency is scheduled for termination.
            72943         Section 1554. Section 63I-1-106 , which is renumbered from Section 63-55-106 is
            72944     renumbered and amended to read:
            72945          [63-55-106].     63I-1-106. Legislative reauthorization of statute or agency.
            72946         If the Legislature determines that the public interest requires the continued existence of
            72947     the statute or agency, it shall reauthorize the existence of the statute or agency in this chapter.
            72948         Section 1555. Section 63I-1-209 , which is renumbered from Section 63-55-209 is
            72949     renumbered and amended to read:
            72950          [63-55-209].     63I-1-209. Repeal dates, Title 9.
            72951         (1) Title 9, Chapter 1, Part 8, Commission on National and Community Service Act, is
            72952     repealed July 1, 2014.
            72953         (2) Title 9, Chapter 3, Part 3, Heber Valley Historic Railroad Authority, is repealed July
            72954     1, 2009.
            72955         (3) Title 9, Chapter 4, Part 9, Utah Housing Corporation Act, is repealed July 1, 2016.
            72956         Section 1556. Section 63I-1-210 , which is renumbered from Section 63-55-210 is
            72957     renumbered and amended to read:
            72958          [63-55-210].     63I-1-210. Repeal dates, Title 10.
            72959     
            72960         Section 1557. Section 63I-1-213 , which is renumbered from Section 63-55-213 is
            72961     renumbered and amended to read:
            72962          [63-55-213].     63I-1-213. Repeal dates, Title 13.
            72963         Title 13, Chapter 16, Motor Fuel Marketing Act, is repealed July 1, 2012.
            72964         Section 1558. Section 63I-1-219 , which is renumbered from Section 63-55-219 is
            72965     renumbered and amended to read:
            72966          [63-55-219].     63I-1-219. Repeal dates, Title 19.
            72967         (1) Title 19, Chapter 2, Air Conservation Act, is repealed July 1, 2009.
            72968         (2) Title 19, Chapter 3, Radiation Control Act, is repealed July 1, 2012.
            72969         (3) Title 19, Chapter 4, Safe Drinking Water Act, is repealed July 1, 2009.

            72970         (4) Title 19, Chapter 5, Water Quality Act, is repealed July 1, 2009.
            72971         (5) Title 19, Chapter 6, Part 1, Solid and Hazardous Waste Act, is repealed July 1,
            72972     2009.
            72973         (6) Title 19, Chapter 6, Part 3, Hazardous Substances Mitigation Act, is repealed July
            72974     1, 2010.
            72975         (7) Title 19, Chapter 6, Part 4, Underground Storage Tank Act, is repealed July 1,
            72976     2008.
            72977         (8) Title 19, Chapter 6, Part 6, Lead Acid Battery Disposal, is repealed July 1, 2016.
            72978         (9) Title 19, Chapter 6, Part 7, Used Oil Management Act, is repealed July 1, 2009.
            72979         (10) Title 19, Chapter 6, Part 8, Waste Tire Recycling Act, is repealed July 1, 2010.
            72980         (11) Title 19, Chapter 6, Part 10, Mercury Switch Removal Act, is repealed July 1,
            72981     2012.
            72982         Section 1559. Section 63I-1-220 , which is renumbered from Section 63-55-220 is
            72983     renumbered and amended to read:
            72984          [63-55-220].     63I-1-220. Repeal dates, Title 20A.
            72985     
            72986         Section 1560. Section 63I-1-223 , which is renumbered from Section 63-55-223 is
            72987     renumbered and amended to read:
            72988          [63-55-223].     63I-1-223. Repeal dates, Title 23.
            72989     
            72990         Section 1561. Section 63I-1-226 , which is renumbered from Section 63-55-226 is
            72991     renumbered and amended to read:
            72992          [63-55-226].     63I-1-226. Repeal dates, Title 26.
            72993         (1) Title 26, Chapter 9f, Utah Digital Health Service Commission Act, is repealed July
            72994     1, 2015.
            72995         (2) Title 26, Chapter 23b, Detection of Public Health Emergencies Act, is repealed July
            72996     1, 2009.
            72997         (3) Title 26, Chapter 33a, Utah Health Data Authority Act, is repealed July 1, 2014.

            72998         (4) Section 26-21-23 , Licensing of non-Medicaid nursing care facility beds, is repealed
            72999     July 1, 2009.
            73000         Section 1562. Section 63I-1-230 , which is renumbered from Section 63-55-230 is
            73001     renumbered and amended to read:
            73002          [63-55-230].     63I-1-230. Repeal dates, Title 30.
            73003     
            73004         Section 1563. Section 63I-1-231 , which is renumbered from Section 63-55-231 is
            73005     renumbered and amended to read:
            73006          [63-55-231].     63I-1-231. Repeal dates, Title 31A.
            73007         (1) Section 31A-2-208.5 , Comparison tables, is repealed July 1, 2010.
            73008         (2) Section 31A-2-217 , Coordination with other states, is repealed July 1, 2013.
            73009         (3) Section 31A-22-315 , Motor vehicle insurance reporting -- Penalty, is repealed July
            73010     1, 2010.
            73011         (4) Section 31A-22-625 , Catastrophic coverage of mental health conditions, is repealed
            73012     July 1, 2011.
            73013         Section 1564. Section 63I-1-232 , which is renumbered from Section 63-55-232 is
            73014     renumbered and amended to read:
            73015          [63-55-232].     63I-1-232. Repeal dates, Title 32A.
            73016     
            73017         Section 1565. Section 63I-1-234 , which is renumbered from Section 63-55-234 is
            73018     renumbered and amended to read:
            73019          [63-55-234].     63I-1-234. Repeal dates, Title 34A.
            73020         (1) Section 34A-2-202.5 is repealed December 31, 2010.
            73021         (2) Title 34A, Chapter 8, Utah Injured Worker Reemployment Act, is repealed July 1,
            73022     2009.
            73023         Section 1566. Section 63I-1-235 , which is renumbered from Section 63-55-235 is
            73024     renumbered and amended to read:
            73025          [63-55-235].     63I-1-235. Repeal dates, Title 35A.

            73026         (1) Title 35A, Utah Workforce Services Code, is repealed July 1, 2015.
            73027         (2) Section 35A-3-114 , the Displaced Homemaker Program, together with the
            73028     provision for funding that program contained in Subsection 17-16-21 (2)(b), is repealed July 1,
            73029     2012.
            73030         Section 1567. Section 63I-1-236 , which is renumbered from Section 63-55-236 is
            73031     renumbered and amended to read:
            73032          [63-55-236].     63I-1-236. Repeal dates, Title 36.
            73033         Sections 36-26-101 through 36-26-104 are repealed December 31, 2017.
            73034         Section 1568. Section 63I-1-238 , which is renumbered from Section 63-55-238 is
            73035     renumbered and amended to read:
            73036          [63-55-238].     63I-1-238. Repeal dates, Title 38.
            73037         Section 38-1-27 and Sections 38-1-30 through 38-1-37 are repealed July 1, 2008.
            73038         Section 1569. Section 63I-1-241 , which is renumbered from Section 63-55-241 is
            73039     renumbered and amended to read:
            73040          [63-55-241].     63I-1-241. Repeal dates, Title 41.
            73041         The following provisions of Title 41 are repealed on the following dates:
            73042         (1) Title 41, Chapter 12a, Part 8, Uninsured Motorist Identification Database Program,
            73043     is repealed July 1, 2010.
            73044         (2) The HOV lane exception in Subsection 41-6a-702 (5) is repealed December 31,
            73045     2010.
            73046         Section 1570. Section 63I-1-253 , which is renumbered from Section 63-55-253 is
            73047     renumbered and amended to read:
            73048          [63-55-253].     63I-1-253. Repeal dates, Titles 53, 53A, and 53B.
            73049         The following provisions of Title 53A are repealed on the following dates:
            73050         (1) Title 53A, Chapter 1a, Part 6, Public Education Job Enhancement Program is
            73051     repealed July 1, 2010.
            73052         (2) Title 53A, Chapter 1a, Part 9, Voluntary Extended-day Kindergarten Program, is
            73053     repealed July 1, 2011.

            73054         (3) The State Instructional Materials Commission, created in Section 53A-14-101 , is
            73055     repealed July 1, 2011.
            73056         (4) Title 53A, Chapter 20a, Public Education Revenue Bond Act, is repealed July 1,
            73057     2007.
            73058         (5) Section 53-3-232 , Conditional licenses, is repealed July 1, 2015.
            73059         Section 1571. Section 63I-1-254 , which is renumbered from Section 63-55-254 is
            73060     renumbered and amended to read:
            73061          [63-55-254].     63I-1-254. Repeal dates, Title 54.
            73062     
            73063         Section 1572. Section 63I-1-258 , which is renumbered from Section 63-55-258 is
            73064     renumbered and amended to read:
            73065          [63-55-258].     63I-1-258. Repeal dates, Title 58.
            73066         (1) Title 58, Chapter 9, Funeral Services Licensing Act, is repealed July 1, 2008.
            73067         (2) Title 58, Chapter 13, Health Care Providers Immunity from Liability Act, is
            73068     repealed July 1, 2016.
            73069         (3) Title 58, Chapter 15, Health Facility Administrator Act, is repealed July 1, 2015.
            73070         (4) Title 58, Chapter 20a, Environmental Health Scientist Act, is repealed July 1, 2013.
            73071         (5) Title 58, Chapter 40, Recreational Therapy Practice Act, is repealed July 1, 2013.
            73072         (6) Title 58, Chapter 41, Speech-language Pathology and Audiology Licensing Act, is
            73073     repealed July 1, 2009.
            73074         (7) Title 58, Chapter 42a, Occupational Therapy Practice Act, is repealed July 1, 2015.
            73075         (8) Title 58, Chapter 46a, Hearing Instrument Specialist Licensing Act, is repealed July
            73076     1, 2013.
            73077         (9) Title 58, Chapter 47b, Massage Therapy Practice Act, is repealed July 1, 2014.
            73078         (10) Title 58, Chapter 49, Dietitian Certification Act, is repealed July 1, 2015.
            73079         (11) Title 58, Chapter 72, Acupuncture Licensing Act, is repealed July 1, 2017.
            73080         Section 1573. Section 63I-1-259 , which is renumbered from Section 63-55-259 is
            73081     renumbered and amended to read:

            73082          [63-55-259].     63I-1-259. Repeal dates, Title 59.
            73083         Section 59-9-102.5 is repealed December 31, 2010.
            73084         Section 1574. Section 63I-1-261 , which is renumbered from Section 63-55-261 is
            73085     renumbered and amended to read:
            73086          [63-55-261].     63I-1-261. Repeal dates, Title 61.
            73087         Title 61, Chapter 1, Utah Uniform Securities Act, is repealed July 1, 2009.
            73088         Section 1575. Section 63I-1-262 , which is renumbered from Section 63-55-262 is
            73089     renumbered and amended to read:
            73090          [63-55-262].     63I-1-262. Repeal dates, Title 62A.
            73091         (1) Section 62A-5-103.1 , Pilot program for provision of supported employment
            73092     services, is repealed July 1, 2008.
            73093         (2) Section 62A-5-103.2 , Pilot program for family preservation services, is repealed
            73094     July 1, 2009.
            73095         Section 1576. Section 63I-1-263 , which is renumbered from Section 63-55-263 is
            73096     renumbered and amended to read:
            73097          [63-55-263].     63I-1-263. Repeal dates, Titles 63 to 63E.
            73098         (1) [Title 63, Chapter 25a, Part 3,] Title 63M, Chapter 7, Part 4, Sentencing
            73099     Commission, is repealed January 1, 2012.
            73100         (2) The Crime Victims' Reparations Board, created in Section [ 63-25a-404 ]
            73101      63M-7-504 , is repealed July 1, 2017.
            73102         (3) The Resource Development Coordinating Committee, created in Section
            73103     [ 63-38d-501 ] 63J-4-501 , is repealed July 1, 2015.
            73104         (4) [Title 63, Chapter 38f] Title 63M, Chapter 1, Part 4, Enterprise Zone Act, is
            73105     repealed July 1, 2008.
            73106         (5) (a) [Title 63, Chapter 38f] Title 63M, Chapter 1, Part 11, Recycling Market
            73107     Development Zone Act, is repealed July 1, 2010.
            73108         (b) Sections 59-7-610 and 59-10-1007 regarding tax credits for certain persons in
            73109     recycling market development zones, are repealed for taxable years beginning on or after

            73110     January 1, 2011.
            73111         (c) Notwithstanding Subsection (5)(b), a person may not claim a tax credit under
            73112     Section 59-7-610 or 59-10-1007 :
            73113         (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
            73114      59-10-1007 , if the machinery or equipment is purchased on or after July 1, 2010; or
            73115         (ii) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), if
            73116     the expenditure is made on or after July 1, 2010.
            73117         (d) Notwithstanding Subsections (5)(b) and (c), a person may carry forward a tax credit
            73118     in accordance with Section 59-7-610 or 59-10-1007 if:
            73119         (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007 ; and
            73120         (ii) (A) for the purchase price of machinery or equipment described in Section 59-7-610
            73121     or 59-10-1007 , the machinery or equipment is purchased on or before June 30, 2010; or
            73122         (B) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), the
            73123     expenditure is made on or before June 30, 2010.
            73124         (6) [Title 63, Chapter 47] Title 63M, Chapter 8, Utah Commission for Women and
            73125     Families, is repealed July 1, 2011.
            73126         (7) [Title 63, Chapter 75] Title 63M, Chapter 9, Families, Agencies, and Communities
            73127     Together for Children and Youth At Risk Act, is repealed July 1, 2016.
            73128         (8) [Title 63, Chapter 88] Title 51, Chapter 9, Part 5, Navajo Trust Fund, is repealed
            73129     July 1, 2008.
            73130         (9) [Title 63, Chapter 99] Title 63M, Chapter 11, Utah Commission on Aging, is
            73131     repealed July 1, 2009.
            73132         (10) Section 63A-4-204 , authorizing the Risk Management Fund to provide coverage
            73133     to any public school district that chooses to participate, is repealed July 1, 2016.
            73134         (11) Section 63C-8-106 , Rural residency training program, is repealed July 1, 2015.
            73135         Section 1577. Section 63I-1-267 , which is renumbered from Section 63-55-267 is
            73136     renumbered and amended to read:
            73137          [63-55-267].     63I-1-267. Repeal dates, Title 67.

            73138         (1) Section 67-1-15 is repealed December 31, 2017.
            73139         (2) Sections 67-1a-10 and 67-1a-11 creating the Commission on Civic and Character
            73140     Education and establishing its duties are repealed on July 1, 2011.
            73141         Section 1578. Section 63I-1-269 , which is renumbered from Section 63-55-269 is
            73142     renumbered and amended to read:
            73143          [63-55-269].     63I-1-269. Repeal dates, Title 69.
            73144         Section 69-2-5.6 , Emergency services telephone charge to fund statewide unified E-911
            73145     emergency service, is repealed July 1, 2011.
            73146         Section 1579. Section 63I-1-272 , which is renumbered from Section 63-55-272 is
            73147     renumbered and amended to read:
            73148          [63-55-272].     63I-1-272. Repeal dates, Title 72.
            73149     
            73150         Section 1580. Section 63I-1-273 , which is renumbered from Section 63-55-273 is
            73151     renumbered and amended to read:
            73152          [63-55-273].     63I-1-273. Repeal dates, Title 73.
            73153         Title 73, Chapter 27, State Water Development Commission, is repealed December 31,
            73154     2008.
            73155         Section 1581. Section 63I-1-277 , which is renumbered from Section 63-55-277 is
            73156     renumbered and amended to read:
            73157          [63-55-277].     63I-1-277. Repeal dates, Title 77.
            73158     
            73159         Section 1582. Section 63I-1-278 , which is renumbered from Section 63-55-278 is
            73160     renumbered and amended to read:
            73161          [63-55-278].     63I-1-278. Repeal dates, Title 78.
            73162         (1) The Office of the Court Administrator, created in Section 78-3-23 , is repealed July
            73163     1, 2008.
            73164         (2) Foster care citizen review boards and steering committee, created in Title 78,
            73165     Chapter 3g, is repealed July 1, 2012.

            73166         (3) Alternative Dispute Resolution Act, created in Title 78, Chapter 31b, is repealed
            73167     July 1, 2016.
            73168         (4) Section 78-14-17 , regarding medical malpractice arbitration agreements, is repealed
            73169     July 1, 2009.
            73170         (5) The case management program coordinator in Subsection 78-3-25 (4) is repealed
            73171     July 1, 2009.
            73172         Section 1583. Section 63I-2-101 is enacted to read:
            73173     
CHAPTER 2. REPEAL DATES BY TITLE ACT

            73174     
Part 1. General Provisions

            73175          63I-2-101. Title.
            73176         This chapter is known as the "Repeal Dates By Title Act."
            73177         Section 1584. Section 63I-2-210 , which is renumbered from Section 63-55b-110 is
            73178     renumbered and amended to read:
            73179     
Part 2. Repeal Dates by Title

            73180          [63-55b-110].     63I-2-210. Repeal dates -- Title 10.
            73181         Section 10-2-427 is repealed July 1, 2010.
            73182         Section 1585. Section 63I-2-220 , which is renumbered from Section 63-55b-120 is
            73183     renumbered and amended to read:
            73184          [63-55b-120].     63I-2-220. Repeal dates, Title 20A.
            73185         Section 20A-2-107.5 is repealed July 1, 2008.
            73186         Section 1586. Section 63I-2-223 , which is renumbered from Section 63-55b-123 is
            73187     renumbered and amended to read:
            73188          [63-55b-123].     63I-2-223. Repeal dates -- Title 23.
            73189         
            73190         Section 1587. Section 63I-2-226 , which is renumbered from Section 63-55b-126 is
            73191     renumbered and amended to read:
            73192          [63-55b-126].     63I-2-226. Repeal dates -- Title 26.
            73193         (1) Section 26-38-4 is repealed January 1, 2009.

            73194         (2) Title 26, Chapter 46, Utah Health Care Workforce Financial Assistance Program, is
            73195     repealed July 1, 2017.
            73196         Section 1588. Section 63I-2-231 , which is renumbered from Section 63-55b-131 is
            73197     renumbered and amended to read:
            73198          [63-55b-131].     63I-2-231. Repeal dates, Title 31A.
            73199         Section 31A-23a-415 is repealed July 1, 2011.
            73200         Section 1589. Section 63I-2-232 , which is renumbered from Section 63-55b-132 is
            73201     renumbered and amended to read:
            73202          [63-55b-132].     63I-2-232. Repeal dates -- Title 32A.
            73203         
            73204         Section 1590. Section 63I-2-234 , which is renumbered from Section 63-55b-134 is
            73205     renumbered and amended to read:
            73206          [63-55b-134].     63I-2-234. Repeal dates -- Title 34A.
            73207         
            73208         Section 1591. Section 63I-2-253 , which is renumbered from Section 63-55b-153 is
            73209     renumbered and amended to read:
            73210          [63-55b-153].     63I-2-253. Repeal dates -- Titles 53, 53A, and 53B.
            73211         (1) Section 53-3-210 is repealed February 1, 2007.
            73212         (2) Section 53A-1-403.5 is repealed July 1, 2012.
            73213         (3) Subsection 53A-1a-511 (7)(c) is repealed July 1, 2007.
            73214         (4) Section 53A-3-702 is repealed July 1, 2008.
            73215         (5) Section 53A-6-112 is repealed July 1, 2009.
            73216         (6) Section 53A-17a-152 is repealed July 1, 2010.
            73217         Section 1592. Section 63I-2-254 , which is renumbered from Section 63-55b-154 is
            73218     renumbered and amended to read:
            73219          [63-55b-154].     63I-2-254. Repeal dates -- Title 54.
            73220         
            73221         Section 1593. Section 63I-2-258 , which is renumbered from Section 63-55b-158 is

            73222     renumbered and amended to read:
            73223          [63-55b-158].     63I-2-258. Repeal dates -- Title 58.
            73224         Section 58-31b-301.6 , Medication Aide Certified Pilot Program, is repealed May 15,
            73225     2010.
            73226         Section 1594. Section 63I-2-259 , which is renumbered from Section 63-55b-159 is
            73227     renumbered and amended to read:
            73228          [63-55b-159].     63I-2-259. Repeal dates -- Title 59.
            73229         
            73230         Section 1595. Section 63I-2-263 , which is renumbered from Section 63-55b-163 is
            73231     renumbered and amended to read:
            73232          [63-55b-163].     63I-2-263. Repeal dates, Title 63 to Title 63B.
            73233         (1) Section 63-38a-105 is repealed July 1, 2007.
            73234         (2) Sections 63-63b-101 and 63-63b-102 are repealed on July 1, 2007.
            73235         (3) Section 63B-14-101 is repealed December 31, 2008.
            73236         Section 1596. Section 63I-2-264 , which is renumbered from Section 63-55b-164 is
            73237     renumbered and amended to read:
            73238          [63-55b-164].     63I-2-264. Repeal dates -- Title 64.
            73239         
            73240         Section 1597. Section 63I-2-267 , which is renumbered from Section 63-55b-167 is
            73241     renumbered and amended to read:
            73242          [63-55b-167].     63I-2-267. Repeal dates -- Title 67.
            73243         
            73244         Section 1598. Section 63I-2-272 , which is renumbered from Section 63-55b-172 is
            73245     renumbered and amended to read:
            73246          [63-55b-172].     63I-2-272. Repeal dates -- Title 72.
            73247         Section 72-3-113 is repealed January 1, 2020.
            73248         Section 1599. Section 63I-2-276 , which is renumbered from Section 63-55b-176 is
            73249     renumbered and amended to read:

            73250          [63-55b-176].     63I-2-276. Repeal dates -- Title 76.
            73251         
            73252         Section 1600. Section 63I-2-277 , which is renumbered from Section 63-55b-177 is
            73253     renumbered and amended to read:
            73254          [63-55b-177].     63I-2-277. Repeal dates, Title 77.
            73255         Section 77-2a-3.1 is repealed June 30, 2008.
            73256         Section 1601. Section 63I-2-278 , which is renumbered from Section 63-55b-178 is
            73257     renumbered and amended to read:
            73258          [63-55b-178].     63I-2-278. Repeal dates, Title 78.
            73259         (1) Section 78-9-101 , Practicing law without a license, is repealed May 3, 2012.
            73260         (2) Subsection 78-45-7.14 (1) is repealed January 1, 2010.
            73261         Section 1602. Section 63I-3-101 , which is renumbered from Section 63-54-101 is
            73262     renumbered and amended to read:
            73263     
CHAPTER 3. CONSTITUTIONAL REVISION COMMISSION ACT

            73264     
Part 1. General Provisions

            73265          [63-54-101].     63I-3-101. Title.
            73266         This chapter is known as the "Constitutional Revision Commission Act."
            73267         Section 1603. Section 63I-3-102 , which is renumbered from Section 63-54-102 is
            73268     renumbered and amended to read:
            73269          [63-54-102].     63I-3-102. Definitions.
            73270         As used in this chapter, "commission" means the Utah Constitutional Revision
            73271     Commission created under Section [ 63-54-103 ] 63I-3-201 .
            73272         Section 1604. Section 63I-3-201 , which is renumbered from Section 63-54-103 is
            73273     renumbered and amended to read:
            73274     
Part 2. Commission and Duties

            73275          [63-54-103].     63I-3-201. Creation -- Members -- Appointment --
            73276      Qualifications -- Term of office -- Maximum length of service.
            73277         (1) There is created a state commission to be known as the Utah Constitutional

            73278     Revision Commission, composed of 15 members.
            73279         (2) (a) The speaker of the House of Representatives shall appoint three members from
            73280     the House of Representatives, not more than two of whom may be from the same political
            73281     party.
            73282         (b) The president of the Senate shall appoint three members from the Senate, not more
            73283     than two of whom may be from the same political party.
            73284         (c) The governor shall appoint three members, not more than two of whom may be
            73285     from the same political party.
            73286         (3) (a) The nine members appointed under Subsection (2) shall select six additional
            73287     members.
            73288         (b) In selecting the six additional members, consideration shall be given to achieving
            73289     representation from the major geographical areas of the state and to achieving as closely as
            73290     possible equal bipartisan representation.
            73291         (4) The term for each commission member shall be six years.
            73292         (5) A commission member may not serve on the commission more than 12 consecutive
            73293     years.
            73294         Section 1605. Section 63I-3-202 , which is renumbered from Section 63-54-104 is
            73295     renumbered and amended to read:
            73296          [63-54-104].     63I-3-202. Vacancies -- Person filling a vacancy begins
            73297      serving new term.
            73298         (1) If a member appointed by the speaker of the House resigns, is unable to serve, or is
            73299     no longer a member of the House of Representatives, the vacancy shall be filled by the speaker
            73300     of the House, as provided in Subsection [ 63-54-103 ] 63I-3-201 (2)(a).
            73301         (2) If a member appointed by the president of the Senate resigns, is unable to serve, or
            73302     is no longer a member of the Senate, the vacancy shall be filled by the president of the Senate,
            73303     as provided in Subsection [ 63-54-103 ] 63I-3-201 (2)(b).
            73304         (3) If a member appointed by the governor resigns or is unable to serve, the vacancy
            73305     shall be filled by the governor, as provided in Subsection [ 63-54-103 ] 63I-3-201 (2)(c).

            73306         (4) If a member appointed by the nine commission members appointed under
            73307     Subsection [ 63-54-103 ] 63I-3-201 (3) resigns or is unable to serve, the vacancy shall be filled by
            73308     those nine commission members as provided in Subsection [ 63-54-103 ] 63I-3-201 (3).
            73309         (5) A person appointed to fill a vacancy under this section does not serve the remaining
            73310     unexpired term of the member that the person is replacing but begins serving a new term.
            73311         Section 1606. Section 63I-3-203 , which is renumbered from Section 63-54-105 is
            73312     renumbered and amended to read:
            73313          [63-54-105].     63I-3-203. Duties.
            73314         (1) Subject to Subsection (2), the Utah Constitutional Revision Commission shall:
            73315         (a) conduct a comprehensive examination of the Utah Constitution, as amended, and
            73316     make recommendations to the governor and the Legislature as to specific proposed
            73317     constitutional amendments to implement the commission's recommendations for changes in the
            73318     constitution; and
            73319         (b) upon request of the governor, president of the Senate, speaker of the House of
            73320     Representatives, minority leader of the Senate, minority leader of the House, or the legislative
            73321     sponsor of a resolution to amend the Utah Constitution, advise the governor and the Legislature
            73322     on any proposed constitutional amendment or revision.
            73323         (2) The commission may not make a recommendation on a proposed constitutional
            73324     amendment after both houses of the Legislature have taken final action on it.
            73325         (3) The commission shall select a chair and a vice chair from among its members.
            73326         Section 1607. Section 63I-3-204 , which is renumbered from Section 63-54-106 is
            73327     renumbered and amended to read:
            73328          [63-54-106].     63I-3-204. The commission may invite testimony.
            73329         In performing its duties and responsibilities, the commission may invite testimony from
            73330     the governor, state agencies, members of the Utah Legislature, and responsible members of the
            73331     public.
            73332         Section 1608. Section 63I-3-205 , which is renumbered from Section 63-54-107 is
            73333     renumbered and amended to read:

            73334          [63-54-107].     63I-3-205. Public hearings -- Purpose.
            73335         The commission may hold public hearings that it considers advisable and in locations
            73336     within the state that it chooses in order to afford any interested person who is a citizen of this
            73337     state an opportunity to appear and present views in respect to any subject relating to the work
            73338     of the commission.
            73339         Section 1609. Section 63I-3-206 , which is renumbered from Section 63-54-108 is
            73340     renumbered and amended to read:
            73341          [63-54-108].     63I-3-206. Per diem and expenses of members.
            73342         (1) (a) A member who is not a government employee may not receive compensation or
            73343     benefits for the member's service, but may receive per diem and expenses incurred in the
            73344     performance of the member's official duties at the rates established by the Division of Finance
            73345     under Sections 63A-3-106 and 63A-3-107 .
            73346         (b) A member who is not a government employee may decline to receive per diem and
            73347     expenses for the member's service.
            73348         (2) (a) A state government officer or employee member who does not receive salary,
            73349     per diem, or expenses from the member's agency for the member's service may receive per diem
            73350     and expenses incurred in the performance of the member's official duties from the commission at
            73351     the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            73352         (b) A state government officer or employee member may decline to receive per diem
            73353     and expenses for the member's service.
            73354         (3) Each legislator on the committee shall receive compensation and expenses as
            73355     provided by law and legislative rule.
            73356         Section 1610. Section 63I-3-207 , which is renumbered from Section 63-54-109 is
            73357     renumbered and amended to read:
            73358          [63-54-109].     63I-3-207. Appointment of staff.
            73359         The Office of Legislative Research and General Counsel shall, in consultation with the
            73360     chair and vice chair, provide staffing for the commission. The office shall employ other staff
            73361     members as the commission considers desirable or necessary.

            73362         Section 1611. Section 63I-4-101 is enacted to read:
            73363     
CHAPTER 4. PRIVATIZATION POLICY BOARD ACT

            73364     
Part 1. General Provisions

            73365          63I-4-101. Title.
            73366         This chapter is known as the "Privatization Policy Board Act."
            73367         Section 1612. Section 63I-4-102 , which is renumbered from Section 63-55a-1 is
            73368     renumbered and amended to read:
            73369          [63-55a-1].     63I-4-102. Definitions.
            73370         (1) (a) "Agency" means a department, division, office, bureau, board, commission, or
            73371     other administrative unit of the state.
            73372         (b) "Agency" includes departments, divisions, offices, bureaus, boards, commissions,
            73373     and other administrative units of the state's counties and municipalities.
            73374         (2) "Agency head" means the chief administrative officer of an agency.
            73375         (3) "Privatization" means action by a state agency to contract with the private sector or
            73376     with another state agency to perform functions or services currently being performed by it.
            73377         Section 1613. Section 63I-4-201 , which is renumbered from Section 63-55a-2 is
            73378     renumbered and amended to read:
            73379     
Part 2. Board Membership and Duties

            73380          [63-55a-2].     63I-4-201. Privatization Policy Board -- Created -- Membership --
            73381      Operations -- Expenses.
            73382         (1) (a) There is created a Privatization Policy Board composed of 15 members.
            73383         (b) The governor shall appoint:
            73384         (i) two senators, one each from the majority and minority political parties, from names
            73385     recommended by the president of the Senate;
            73386         (ii) two representatives, one each from the majority and minority political parties, from
            73387     names recommended by the speaker of the House;
            73388         (iii) two members representing public employees, from names recommended by the
            73389     largest public employees' association;

            73390         (iv) one member from state management;
            73391         (v) five members from the private business community;
            73392         (vi) one member representing education;
            73393         (vii) one member representing the Utah League of Cities and Towns from names
            73394     recommended by the league; and
            73395         (viii) one member representing the Utah Association of Counties from names
            73396     recommended by the association.
            73397         (2) (a) Except as required by Subsection (2)(b), board members shall serve four-year
            73398     terms.
            73399         (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
            73400     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
            73401     board members are staggered so that approximately half of the board is appointed every two
            73402     years.
            73403         (3) (a) Each board member shall hold office until [his] the board member's successor
            73404     has been appointed and qualified.
            73405         (b) When a vacancy occurs in the membership for any reason, the replacement shall be
            73406     appointed for the unexpired term.
            73407         (c) Eight members of the board are a quorum for the purpose of organizing the board
            73408     and conducting the business of the board.
            73409         (d) The vote of a majority of members voting when a quorum is present is necessary for
            73410     the board to take action.
            73411         (4) (a) At the initial meeting of the board, the board shall select one of their number to
            73412     serve as chair of the board.
            73413         (b) The chief procurement officer or [his] the chief procurement officer's designee is the
            73414     nonvoting secretary to the board and is responsible for scheduling quarterly meetings.
            73415         (c) The board shall meet at least quarterly and at the call of the chair.
            73416         (5) (a) (i) Members who are not government employees shall receive no compensation
            73417     or benefits for their services, but may receive per diem and expenses incurred in the

            73418     performance of the member's official duties at the rates established by the Division of Finance
            73419     under Sections 63A-3-106 and 63A-3-107 .
            73420         (ii) Members may decline to receive per diem and expenses for their service.
            73421         (b) (i) State government officer and employee members who do not receive salary, per
            73422     diem, or expenses from their agency for their service may receive per diem and expenses
            73423     incurred in the performance of their official duties from the board at the rates established by the
            73424     Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            73425         (ii) State government officer and employee members may decline to receive per diem
            73426     and expenses for their service.
            73427         (c) Legislators on the committee shall receive compensation and expenses as provided
            73428     by law and legislative rule.
            73429         Section 1614. Section 63I-4-202 , which is renumbered from Section 63-55a-3 is
            73430     renumbered and amended to read:
            73431          [63-55a-3].     63I-4-202. Privatization Policy Board -- Duties.
            73432         (1) Except as otherwise provided in Subsection (5), the board shall:
            73433         (a) review whether or not certain services performed by existing state agencies could be
            73434     privatized to provide the same types and quality of services that would result in cost savings;
            73435         (b) review particular requests for privatization of services and issues concerning agency
            73436     competition with the private sector and determine whether privatization would be feasible and
            73437     would result in cost savings and ways to eliminate any unfair competition;
            73438         (c) recommend privatization to the agency head when the proposed privatization is
            73439     demonstrated to provide a more cost efficient and effective manner of providing existing
            73440     governmental services;
            73441         (d) comply with the provisions of [Title 63, Chapter 46a, the] Title 63G, Chapter 3,
            73442     Utah Administrative Rulemaking Act, in making rules establishing privatization standards,
            73443     procedures, and requirements;
            73444         (e) maintain communication with and access information from, other entities promoting
            73445     privatization;

            73446         (f) prepare an annual report that contains:
            73447         (i) information about the board's activities; and
            73448         (ii) recommendations on privatizing government services; and
            73449         (g) submit the annual report to the Legislature and the governor.
            73450         (2) In addition to filing copies of its recommendations for privatization with the relevant
            73451     agency head, the board shall file copies of its recommendations for privatization with:
            73452         (a) the governor's office; and
            73453         (b) the Office of Legislative Fiscal Analyst for submission to the relevant Legislative
            73454     Appropriation Subcommittee.
            73455         (3) (a) The board may appoint advisory groups to conduct studies, research, analyses,
            73456     and make reports and recommendations with respect to subjects or matters within the
            73457     jurisdiction of the board.
            73458         (b) At least one member of the board shall serve on each advisory group.
            73459         (4) This chapter does not preclude any agency from privatizing any service or function
            73460     independently of the board if, as part of the contract that privatizes the function, the contractor
            73461     assumes all liability to perform the privatizated function.
            73462         (5) The board may not exercise its authority under Subsection (1) over an agency
            73463     referred to in Subsection [ 63-55a-1 ] 63I-4-102 (1)(b), unless requested by the agency.
            73464         Section 1615. Section 63I-5-101 , which is renumbered from Section 63-91-101 is
            73465     renumbered and amended to read:
            73466     
CHAPTER 5. UTAH INTERNAL AUDIT ACT

            73467     
Part 1. General Provisions

            73468          [63-91-101].     63I-5-101. Title.
            73469         This chapter is known as the "Utah Internal Audit Act."
            73470         Section 1616. Section 63I-5-102 , which is renumbered from Section 63-91-102 is
            73471     renumbered and amended to read:
            73472          [63-91-102].     63I-5-102. Definitions.
            73473         As used in this chapter:

            73474         (1) "Agency head" means a cabinet officer, an elected official, an executive director, or
            73475     a board or commission vested with responsibility to administer or make policy for a state
            73476     agency.
            73477         (2) "Agency internal audit director" or "audit director" means the person appointed by
            73478     the agency head, with the approval of the audit committee if one has been established, to direct
            73479     the internal audit function for the state agency.
            73480         (3) "Appointing authority" means:
            73481         (a) the governor, for state agencies;
            73482         (b) the Judicial Council, for judicial branch agencies;
            73483         (c) the Board of Regents, for higher education entities; and
            73484         (d) the State Board of Education, for the State Office of Education.
            73485         (4) "Audit committee" means a standing committee whose members are appointed by
            73486     an appointing authority:
            73487         (a) from members of the agency governing board; and
            73488         (b) from individuals who do not have administrative responsibilities within the agency
            73489     who have the expertise to provide effective oversight of and advice about internal audit
            73490     activities and services.
            73491         (5) "Audit plan" means a list of audits to be performed by the internal audit organization
            73492     within a specified period of time.
            73493         (6) "Agency governing board" is any board or commission that has policy making and
            73494     oversight responsibility over the agency, including the authority to appoint and remove the
            73495     agency director.
            73496         (7) "Higher education entity" means the board of regents, the institutional councils of
            73497     each higher education institution, and each higher education institution.
            73498         (8) "Internal audit" means an independent appraisal activity established within a state
            73499     agency as a control system to examine and evaluate the adequacy and effectiveness of other
            73500     control systems within the agency.
            73501         (9) "Judicial branch agency" means each administrative entity of the judicial branch.

            73502         (10) (a) "State agency" means:
            73503         (i) each department, commission, board, council, agency, institution, officer,
            73504     corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau, panel,
            73505     or other administrative unit of the state; and
            73506         (ii) each state public education entity.
            73507         (b) "State agency" does not mean:
            73508         (i) a legislative branch agency;
            73509         (ii) an independent agency;
            73510         (iii) a county, municipality, school district, local district, or special service district; or
            73511         (iv) any administrative subdivision of a county, municipality, school district, local
            73512     district, or special service district.
            73513         Section 1617. Section 63I-5-201 , which is renumbered from Section 63-91-201 is
            73514     renumbered and amended to read:
            73515     
Part 2. Internal Auditing Programs

            73516          [63-91-201].     63I-5-201. Internal auditing programs -- State agencies.
            73517         (1) (a) The Departments of Administrative Services, Agriculture, Commerce,
            73518     Community and Culture, Corrections, Workforce Services, Environmental Quality, Health,
            73519     Human Services, Natural Resources, Public Safety, and Transportation; and the State Tax
            73520     Commission shall conduct various types of auditing procedures as determined by the agency
            73521     head or governor.
            73522         (b) The governor may, by executive order, require other state agencies to establish an
            73523     internal audit program.
            73524         (c) An agency head may establish an internal audit program for [his] the agency head's
            73525     agency if the agency administers programs that:
            73526         (i) might pose a high liability risk to the state; or
            73527         (ii) are essential to the health, safety, and welfare of the citizens of Utah.
            73528         (2) (a) The Office of the Court Administrator shall conduct various types of auditing
            73529     procedures as determined by the Judicial Council, including auditing procedures for courts not

            73530     of record.
            73531         (b) The Judicial Council may, by rule, require other judicial agencies to establish an
            73532     internal audit program.
            73533         (c) An agency head within the judicial branch may establish an internal audit program
            73534     for [his] the agency head's agency if the agency administers programs that:
            73535         (i) might pose a high liability risk to the state; or
            73536         (ii) are essential to the health, safety, and welfare of the citizens of Utah.
            73537         (3) (a) The University of Utah, Utah State University, Salt Lake Community College,
            73538     Utah Valley University, and Weber State University shall conduct various types of auditing
            73539     procedures as determined by the Board of Regents.
            73540         (b) The Board of Regents may issue policies requiring other higher education entities or
            73541     programs to establish an internal audit program.
            73542         (c) An agency head within higher education may establish an internal audit program for
            73543     [his] the agency head's agency if the agency administers programs that:
            73544         (i) might pose a high liability risk to the state; or
            73545         (ii) are essential to the health, safety, and welfare of the citizens of Utah.
            73546         (4) The State Office of Education shall conduct various types of auditing procedures as
            73547     determined by the State Board of Education.
            73548         Section 1618. Section 63I-5-301 , which is renumbered from Section 63-91-301 is
            73549     renumbered and amended to read:
            73550     
Part 3. Audit Committee

            73551          [63-91-301].     63I-5-301. Audit committee -- Powers and duties.
            73552         (1) Each appointing authority may establish an audit committee to monitor the activities
            73553     of the agency internal audit organization.
            73554         (2) The appointing authority shall ensure that audit committee members have the
            73555     expertise to provide effective oversight of and advice about internal audit activities and services.
            73556         (3) If an audit committee has been established, the audit committee shall:
            73557         (a) consent to the appointment or removal of the agency internal audit director as

            73558     proposed by the agency head;
            73559         (b) consent to the internal auditing policies proposed by the agency head;
            73560         (c) review and approve the annual internal audit plan and budget;
            73561         (d) review internal and external audit reports, follow-up reports, and quality assurance
            73562     reviews of the internal audit office; and
            73563         (e) periodically meet with the agency internal audit director to discuss pertinent matters,
            73564     including whether there are any restrictions on the scope of audits.
            73565         Section 1619. Section 63I-5-302 , which is renumbered from Section 63-91-302 is
            73566     renumbered and amended to read:
            73567          [63-91-302].     63I-5-302. Agency head -- Powers and duties.
            73568         (1) For each agency that establishes an internal audit program, the agency head shall:
            73569         (a) prepare and adopt, or if an audit committee has been established, propose to the
            73570     audit committee, a formal policy that defines:
            73571         (i) the purpose of the agency's internal audit program;
            73572         (ii) the authority and responsibility of the agency's internal auditors; and
            73573         (b) ensure that the policy:
            73574         (i) places no limitations on the scope of the internal audit department's work; and
            73575         (ii) declares that auditors are to have no authority or responsibility for the activities they
            73576     audit.
            73577         (2) The agency head shall appoint or employ an agency internal audit director with the
            73578     consent of the audit committee, if an audit committee has been established.
            73579         (3) The agency head shall ensure that:
            73580         (a) the audit director is allowed to employ a sufficient number of professional and
            73581     support staff to implement an effective program of internal auditing;
            73582         (b) compensation, training, job tenure, and advancement of internal auditing staff is
            73583     based upon job performance;
            73584         (c) the audit director and staff collectively possess the knowledge, skills, and experience
            73585     essential to the practices of the profession and are proficient in applying internal auditing

            73586     standards, procedures, and techniques;
            73587         (d) the internal audit organization has employees who are qualified in disciplines such as
            73588     accounting, business management, public administration, human resource management,
            73589     economics, finance, statistics, electronic data processing, engineering, and law as needed to
            73590     meet the audit responsibilities;
            73591         (e) internal audit staff are free of operational and management responsibilities that
            73592     would impair their ability to make independent audits of any aspects of the agency's operations;
            73593         (f) the audit director and the internal audit staff have access to all personnel and any
            73594     records, data, and other information of the state agency that they consider necessary to carry
            73595     out their assigned duties; and
            73596         (g) the agency internal audit director reports to the agency head and to the audit
            73597     committee, if one has been established, and has freedom of access to the agency head to ensure
            73598     that the director is responsive to the agency head's specific requests, directions, and needs.
            73599         (4) The agency internal audit director may, within budgetary constraints, contract with
            73600     consultants to assist with audits.
            73601         (5) The agency head shall either:
            73602         (a) approve the annual internal audit plan and budget prepared by the agency internal
            73603     audit director; or
            73604         (b) if an audit committee has been established, review the plan and budget and submit
            73605     them to the audit committee for approval.
            73606         Section 1620. Section 63I-5-401 , which is renumbered from Section 63-91-401 is
            73607     renumbered and amended to read:
            73608     
Part 4. Duties of Director

            73609          [63-91-401].     63I-5-401. Duties of the agency internal audit director.
            73610         (1) The agency internal audit director may:
            73611         (a) furnish independent analyses, appraisals, and recommendations that may, depending
            73612     upon the audit scope, identify:
            73613         (i) the adequacy of the state agency's systems of internal control;

            73614         (ii) the efficiency and effectiveness of agency management in carrying out assigned
            73615     responsibilities; and
            73616         (iii) the agency's compliance with applicable laws, rules, and regulations;
            73617         (b) submit audit reports directly to the agency head and to the audit committee, if one
            73618     has been established;
            73619         (c) conduct internal audits of state agency programs, activities, and functions that may
            73620     consist of one or more of the following objectives:
            73621         (i) to verify the accuracy and reliability of agency records;
            73622         (ii) to assess compliance with management policies, plans, procedures, and regulations;
            73623         (iii) to assess compliance with applicable laws, rules, and regulations;
            73624         (iv) to evaluate the efficient and effective use of agency resources; and
            73625         (v) to verify the appropriate protection of agency assets;
            73626         (d) prepare audit reports of findings;
            73627         (e) review and evaluate internal controls over the state agency's accounting systems,
            73628     administrative systems, electronic data processing systems, and all other major systems
            73629     necessary to ensure the fiscal and administrative accountability of the state agency;
            73630         (f) develop audit plans containing the information required by Subsection (2) to be
            73631     based on the findings of periodic risk assessments;
            73632         (g) upon request, make a copy of the approved audit plan available to the state auditor,
            73633     legislative auditor, or other appropriate external auditor to assist in planning and coordination of
            73634     any external financial, compliance, electronic data processing, or performance audit;
            73635         (h) determine the scope and assignment of the audits;
            73636         (i) perform an audit of a special program, activity, function, or organizational unit at the
            73637     direction of the agency head;
            73638         (j) maintain the classification of any public records consistent with [Title 63, Chapter 2]
            73639     Title 63G, Chapter 2, Government Records Access and Management Act;
            73640         (k) be subject to the same penalties as the custodian of those public records for
            73641     violating [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and

            73642     Management Act; and
            73643         (l) identify in the audit report any abuse, illegal acts, errors and omissions, or conflicts
            73644     of interest.
            73645         (2) (a) The audit plan required by this section shall:
            73646         (i) identify the individual audits to be conducted during each year;
            73647         (ii) identify the related resources to be devoted to each of the respective audits;
            73648         (iii) ensure that internal controls are reviewed periodically as determined by the agency
            73649     head or the audit committee, if one has been established; and
            73650         (iv) ensure that audits that evaluate the efficient and effective use of agency resources
            73651     are adequately represented in the plan.
            73652         (b) The agency internal audit director shall submit the audit plan to the agency head and
            73653     the audit committee, if one has been established, for approval.
            73654         (3) The agency internal audit director shall ensure that:
            73655         (a) audits are conducted in accordance with professional auditing standards such as
            73656     those published by the Institute of Internal Auditors, Inc., the American Institute of Certified
            73657     Public Accountants and, when required by other law, regulation, agreement, contract, or policy,
            73658     in accordance with Government Auditing Standards, issued by the Comptroller General of the
            73659     United States;
            73660         (b) all reports of audit findings issued by internal audit staff shall include a statement
            73661     that the audit was conducted according to the appropriate standards;
            73662         (c) public release of reports of audit findings comply with the conditions specified by
            73663     the state laws and rules governing the state agency;
            73664         (d) copies of all reports of audit findings issued by the internal audit staff are available
            73665     to the Offices of the Legislative Auditor General and the State Auditor upon request; and
            73666         (e) significant audit matters that cannot be appropriately addressed by the agency
            73667     internal audit office are referred to either the Office of Legislative Auditor General or the Office
            73668     of the State Auditor.
            73669         Section 1621. Section 63J-1-101 , which is renumbered from Section 63-38-1 is

            73670     renumbered and amended to read:
            73671     
TITLE 63J. BUDGETING

            73672     
CHAPTER 1. BUDGETARY PROCEDURES ACT

            73673     
Part 1. General Provisions

            73674          [63-38-1].     63J-1-101. Title.
            73675         (1) This title is known as "Budgeting."
            73676         (2) This [act shall be known and may be cited] chapter is known as the "Budgetary
            73677     Procedures Act."
            73678         Section 1622. Section 63J-1-103 , which is renumbered from Section 63-38-9.5 is
            73679     renumbered and amended to read:
            73680          [63-38-9.5].     63J-1-103. Agency exempt from act.
            73681         The Utah Housing Corporation is exempt from this act.
            73682         Section 1623. Section 63J-1-201 , which is renumbered from Section 63-38-2 is
            73683     renumbered and amended to read:
            73684     
Part 2. Budget and Funds

            73685          [63-38-2].     63J-1-201. Governor to submit budget to Legislature -- Contents --
            73686      Preparation -- Appropriations based on current tax laws and not to exceed estimated
            73687      revenues.
            73688         (1) (a) The governor shall, within three days after the convening of the Legislature in
            73689     the annual general session, submit a budget for the ensuing fiscal year by delivering it to the
            73690     presiding officer of each house of the Legislature together with a schedule for all of the
            73691     proposed appropriations of the budget, clearly itemized and classified.
            73692         (b) The budget message shall include:
            73693         (i) a projection of estimated revenues and expenditures for the next fiscal year; and
            73694         (ii) the source of all direct, indirect, or in-kind matching funds for all federal grants or
            73695     assistance programs included in the budget.
            73696         (2) At least 34 days before the submission of any budget, the governor shall deliver a
            73697     confidential draft copy of [his] the governor's proposed budget recommendations to the Office

            73698     of the Legislative Fiscal Analyst.
            73699         (3) (a) The budget shall contain a complete plan of proposed expenditures and
            73700     estimated revenues for the next fiscal year based upon the current fiscal year state tax laws and
            73701     rates.
            73702         (b) The budget may be accompanied by a separate document showing proposed
            73703     expenditures and estimated revenues based on changes in state tax laws or rates.
            73704         (4) The budget shall be accompanied by a statement showing:
            73705         (a) the revenues and expenditures for the last fiscal year;
            73706         (b) the current assets, liabilities, and reserves, surplus or deficit, and the debts and funds
            73707     of the state;
            73708         (c) an estimate of the state's financial condition as of the beginning and the end of the
            73709     period covered by the budget;
            73710         (d) a complete analysis of lease with an option to purchase arrangements entered into
            73711     by state agencies;
            73712         (e) the recommendations for each state agency for new full-time employees for the next
            73713     fiscal year; which recommendation should be provided also to the State Building Board under
            73714     Subsection 63A-5-103 (2);
            73715         (f) any explanation the governor may desire to make as to the important features of the
            73716     budget and any suggestion as to methods for the reduction of expenditures or increase of the
            73717     state's revenue; and
            73718         (g) the information detailing certain regulatory fee increases required by Section
            73719     [ 63-38-3.2 ] 63J-1-303 .
            73720         (5) The budget shall include an itemized estimate of the appropriations for:
            73721         (a) the Legislative Department as certified to the governor by the president of the
            73722     Senate and the speaker of the House;
            73723         (b) the Executive Department;
            73724         (c) the Judicial Department as certified to the governor by the state court administrator;
            73725         (d) payment and discharge of the principal and interest of the indebtedness of the state;

            73726         (e) the salaries payable by the state under the Utah Constitution or under law for the
            73727     lease agreements planned for the next fiscal year;
            73728         (f) other purposes that are set forth in the Utah Constitution or under law; and
            73729         (g) all other appropriations.
            73730         (6) Deficits or anticipated deficits shall be included in the budget.
            73731         (7) (a) (i) For the purpose of preparing and reporting the budget, the governor shall
            73732     require from the proper state officials, including public and higher education officials, all heads
            73733     of executive and administrative departments and state institutions, bureaus, boards,
            73734     commissions, and agencies expending or supervising the expenditure of the state moneys, and
            73735     all institutions applying for state moneys and appropriations, itemized estimates of revenues and
            73736     expenditures.
            73737         (ii) (A) The governor may also require other information under these guidelines and at
            73738     times as the governor may direct.
            73739         (B) These guidelines may include a requirement for program productivity and
            73740     performance measures, where appropriate, with emphasis on outcome indicators.
            73741         (b) The estimate for the Legislative Department as certified by the presiding officers of
            73742     both houses shall be included in the budget without revision by the governor.
            73743         (c) The estimate for the Judicial Department, as certified by the state court
            73744     administrator, shall also be included in the budget without revision, but the governor may make
            73745     separate recommendations on it.
            73746         (d) The governor may require the attendance at budget meetings of representatives of
            73747     public and higher education, state departments and institutions, and other institutions or
            73748     individuals applying for state appropriations.
            73749         (e) The governor may revise all estimates, except those relating to the Legislative
            73750     Department, the Judicial Department, and those providing for the payment of principal and
            73751     interest to the state debt and for the salaries and expenditures specified by the Utah Constitution
            73752     or under the laws of the state.
            73753         (8) The total appropriations requested for expenditures authorized by the budget may

            73754     not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing
            73755     fiscal year.
            73756         (9) If any item of the budget as enacted is held invalid upon any ground, the invalidity
            73757     does not affect the budget itself or any other item in it.
            73758         (10) (a) In submitting the budgets for the Departments of Health and Human Services
            73759     and the Office of the Attorney General, the governor shall consider a separate recommendation
            73760     in [his] the governor's budget for funds to be contracted to:
            73761         (i) local mental health authorities under Section 62A-15-110 ;
            73762         (ii) local substance abuse authorities under Section 62A-15-110 ;
            73763         (iii) area agencies under Section 62A-3-104.2 ;
            73764         (iv) programs administered directly by and for operation of the Divisions of Substance
            73765     Abuse and Mental Health and Aging and Adult Services;
            73766         (v) local health departments under Title 26A, Chapter 1, Local Health Departments;
            73767     and
            73768         (vi) counties for the operation of Children's Justice Centers under Section 67-5b-102 .
            73769         (b) In [his] the governor's budget recommendations under Subsections (10)(a)(i), (ii),
            73770     and (iii), the governor shall consider an amount sufficient to grant local health departments,
            73771     local mental health authorities, local substance abuse authorities, and area agencies the same
            73772     percentage increase for wages and benefits that [he] the governor includes in [his] the
            73773     governor's budget for persons employed by the state.
            73774         (c) If the governor does not include in [his] the governor's budget an amount sufficient
            73775     to grant the increase described in Subsection (10)(b), [he] the governor shall include a message
            73776     to the Legislature regarding [his] the governor's reason for not including that amount.
            73777         (11) (a) In submitting the budget for the Department of Agriculture, the governor shall
            73778     consider an amount sufficient to grant local conservation districts and Utah Association of
            73779     Conservation District employees the same percentage increase for wages and benefits that [he]
            73780     the governor includes in [his] the governor's budget for persons employed by the state.
            73781         (b) If the governor does not include in [his] the governor's budget an amount sufficient

            73782     to grant the increase described in Subsection (11)(a), [he] the governor shall include a message
            73783     to the Legislature regarding [his] the governor's reason for not including that amount.
            73784         (12) (a) In submitting the budget for the Utah State Office of Rehabilitation and the
            73785     Division of Services for People with Disabilities, the Division of Child and Family Services, and
            73786     the Division of Juvenile Justice Services within the Department of Human Services, the
            73787     governor shall consider an amount sufficient to grant employees of corporations that provide
            73788     direct services under contract with those divisions, the same percentage increase for
            73789     cost-of-living that [he] the governor includes in [his] the governor's budget for persons
            73790     employed by the state.
            73791         (b) If the governor does not include in [his] the governor's budget an amount sufficient
            73792     to grant the increase described in Subsection (12)(a), [he] the governor shall include a message
            73793     to the Legislature regarding [his] the governor's reason for not including that amount.
            73794         (13) (a) The Families, Agencies, and Communities Together Council may propose to
            73795     the governor under Subsection [ 63-75-4 ] 63M-9-201 (4)(e) a budget recommendation for
            73796     collaborative service delivery systems operated under Section [ 63-75-6.5 ] 63M-9-402 .
            73797         (b) The Legislature may, through a specific program schedule, designate funds
            73798     appropriated for collaborative service delivery systems operated under Section [ 63-75-6.5 ]
            73799      63M-9-402 .
            73800         (14) The governor shall include in [his] the governor's budget the state's portion of the
            73801     budget for the Utah Communications Agency Network established in Title 63C, Chapter 7,
            73802     Utah Communications Agency Network Act.
            73803         (15) (a) The governor shall include a separate recommendation in the governor's budget
            73804     for funds to maintain the operation and administration of the Utah Comprehensive Health
            73805     Insurance Pool.
            73806         (b) In making the recommendation the governor may consider:
            73807         (i) actuarial analysis of growth or decline in enrollment projected over a period of at
            73808     least three years;
            73809         (ii) actuarial analysis of the medical and pharmacy claims costs projected over a period

            73810     of at least three years;
            73811         (iii) the annual Medical Care Consumer Price Index;
            73812         (iv) the annual base budget for the pool established by the Commerce and Revenue
            73813     Appropriations Subcommittee for each fiscal year;
            73814         (v) the growth or decline in insurance premium taxes and fees collected by the tax
            73815     commission and the insurance department; and
            73816         (vi) the availability of surplus General Fund revenue under Section [ 63-38-2.5 ]
            73817      63J-1-202 and Subsection 59-14-204 (5)(b).
            73818         (16) In adopting a budget for each fiscal year, the Legislature shall consider an amount
            73819     sufficient to grant local health departments, local mental health authorities, local substance
            73820     abuse authorities, area agencies on aging, conservation districts, and Utah Association of
            73821     Conservation District employees the same percentage increase for wages and benefits that is
            73822     included in the budget for persons employed by the state.
            73823         (17) (a) In adopting a budget each year for the Utah Comprehensive Health Insurance
            73824     Pool, the Legislature shall determine an amount that is sufficient to fund the pool for each fiscal
            73825     year.
            73826         (b) When making a determination under Subsection (17)(a), the Legislature shall
            73827     consider factors it determines are appropriate, which may include:
            73828         (i) actuarial analysis of growth or decline in enrollment projected over a period of at
            73829     least three years;
            73830         (ii) actuarial analysis of the medical and pharmacy claims costs projected over a period
            73831     of at least three years;
            73832         (iii) the annual Medical Care Consumer Price Index;
            73833         (iv) the annual base budget for the pool established by the Commerce and Revenue
            73834     Appropriations Subcommittee for each fiscal year;
            73835         (v) the growth or decline in insurance premium taxes and fees collected by the tax
            73836     commission and the insurance department from the previous fiscal year; and
            73837         (vi) the availability of surplus General Fund revenue under Section [ 63-38-2.5 ]

            73838      63J-1-202 and Subsection 59-14-204 (5)(b).
            73839         (c) The funds appropriated by the Legislature to fund the Utah Comprehensive Health
            73840     Insurance Pool as determined under Subsection (17)(a):
            73841         (i) shall be deposited into the enterprise fund established by Section 31A-29-120 ; and
            73842         (ii) are restricted and are to be used to maintain the operation, administration, and
            73843     management of the Utah Comprehensive Health Insurance Pool created by Section
            73844      31A-29-104 .
            73845         (18) In considering the factors in Subsections (15)(b)(i), (ii), and (iii) and Subsections
            73846     (17)(b)(i), (ii), and (iii), the governor and the Legislature may consider the actuarial data and
            73847     projections prepared for the board of the Utah Comprehensive Health Insurance Pool as it
            73848     develops its financial statements and projections for each fiscal year.
            73849         Section 1624. Section 63J-1-202 , which is renumbered from Section 63-38-2.5 is
            73850     renumbered and amended to read:
            73851          [63-38-2.5].     63J-1-202. Establishing a General Fund Budget Reserve Account --
            73852      Providing for deposits and expenditures from the account.
            73853         (1) There is created within the General Fund a restricted account to be known as the
            73854     General Fund Budget Reserve Account, which is designated to receive the surplus revenue
            73855     required by this section.
            73856         (2) (a) (i) At the end of any fiscal year in which the Division of Finance, in conjunction
            73857     with the completion of the annual audit by the state auditor, determines that there is a General
            73858     Fund surplus, 25% of the surplus shall be transferred to the General Fund Budget Reserve
            73859     Account, except that the amount in the combined totals of the General Fund Budget Reserve
            73860     Account and the Education Budget Reserve Account created in Section [ 63-38-2.6 ] 63J-1-203
            73861     may not exceed 6% of the total of the General Fund appropriation amount and the Uniform
            73862     School Fund appropriation amount for the fiscal year in which the surplus occurred.
            73863         (ii) In addition to Subsection (2)(a)(i), if a surplus exists and if, within the last ten years,
            73864     the Legislature has appropriated any money from the General Fund Budget Reserve Account
            73865     that has not been replaced by appropriation or as provided in this Subsection (2)(a)(ii), the

            73866     Division of Finance shall, before any contingent appropriations or other transfers required by
            73867     law are made, transfer up to 25% more of the surplus to the General Fund Budget Reserve
            73868     Account to replace the amounts appropriated until transfers of the surplus under this Subsection
            73869     (2)(a)(ii) have replaced the appropriations from the fund.
            73870         (b) The amount to be transferred to the General Fund Budget Reserve Account shall be
            73871     determined before any other contingency appropriation using surplus funds.
            73872         (3) (a) If, at the close of any fiscal year, there appear to be insufficient monies to pay
            73873     additional debt service for any bonded debt authorized by the Legislature, the Division of
            73874     Finance may hold back monies from any General Fund surplus sufficient to pay the additional
            73875     debt service requirements resulting from issuance of bonded debt that was authorized by the
            73876     Legislature.
            73877         (b) The Division of Finance may not spend the hold back amount for debt service under
            73878     Subsection (3)(a) unless and until it is appropriated by the Legislature.
            73879         (c) If, after calculating the amount for transfers to the General Fund Budget Reserve
            73880     Account, the remaining surplus is insufficient to cover the hold back for debt service required by
            73881     Subsection (3)(a), the Division of Finance shall reduce the transfer to the General Fund Budget
            73882     Reserve Account by the amount necessary to cover the debt service hold back.
            73883         (d) Notwithstanding Subsection (2), the Division of Finance shall hold back the General
            73884     Fund balance for debt service authorized by this Subsection (3) before making any transfers to
            73885     the General Fund Budget Reserve Account or any other designation or allocation of surplus.
            73886         (4) (a) Any appropriation made by the Legislature from the General Fund Budget
            73887     Reserve Account may only be used to cover operating deficits, state settlement agreements
            73888     approved under [Title 63, Chapter 38b] Title 63G, Chapter 10, State Settlement Agreements, or
            73889     retroactive tax refunds.
            73890         (b) The General Fund Budget Reserve Account is available for appropriation to fund
            73891     operating deficits in public education appropriations.
            73892         (5) All interest generated from investments of money in the General Fund Budget
            73893     Reserve Account shall be deposited into the account.

            73894         Section 1625. Section 63J-1-203 , which is renumbered from Section 63-38-2.6 is
            73895     renumbered and amended to read:
            73896          [63-38-2.6].     63J-1-203. Establishing an Education Budget Reserve Account --
            73897      Providing for deposits and expenditures from the account.
            73898         (1) There is created within the Education Fund a restricted account to be known as the
            73899     Education Budget Reserve Account, which is designated to receive the surplus revenue required
            73900     by this section.
            73901         (2) (a) (i) At the end of any fiscal year in which the Division of Finance, in conjunction
            73902     with the completion of the annual audit by the state auditor, determines that there is a surplus in
            73903     the Education Fund, the Uniform School Fund or both, 25% of the cumulative surplus shall be
            73904     transferred to the Education Budget Reserve Account, except that the amount in the combined
            73905     totals of the Education Budget Reserve Account and the General Fund Budget Reserve
            73906     Account created in Section [ 63-38-2.5 ] 63J-1-202 may not exceed 6% of the total combined
            73907     appropriations from the Education Fund and the General Fund for the fiscal year in which the
            73908     surplus occurred.
            73909         (ii) In addition to Subsection (2)(a)(i), if a surplus exists and if, within the last ten years,
            73910     the Legislature has appropriated any money from the Education Budget Reserve Account that
            73911     has not been replaced by appropriation or as provided in this Subsection (2)(a)(ii), the Division
            73912     of Finance shall, before any contingent appropriations or other transfers required by law are
            73913     made, transfer up to 25% more of the surplus to the Education Budget Reserve Account to
            73914     replace the amounts appropriated until transfers of the surplus under this Subsection (2)(a)(ii)
            73915     have replaced the appropriations from the fund.
            73916         (b) The amount to be transferred to the Education Budget Reserve Account shall be
            73917     determined before any other contingency appropriation using surplus funds.
            73918         (3) Any appropriation made by the Legislature from the Education Budget Reserve
            73919     Account may only be used to cover operating deficits in the state's public and higher education
            73920     system.
            73921         (4) All interest generated from investments of money in the Education Budget Reserve

            73922     Account shall be deposited into the account.
            73923         Section 1626. Section 63J-1-204 , which is renumbered from Section 63-38-2.7 is
            73924     renumbered and amended to read:
            73925          [63-38-2.7].     63J-1-204. Deposits related to the Disaster Recovery Funding Act.
            73926         Beginning with the fiscal year ending June 30, 2007, at the end of each fiscal year and
            73927     after the transfer of surplus General Fund revenues has been made to the General Fund Budget
            73928     Reserve Account as provided in Section [ 63-38-2.5 ] 63J-1-202 , the Division of Finance shall
            73929     deposit an amount into the State Disaster Recovery Restricted Account, created in Section
            73930      53-2-403 , calculated by:
            73931         (1) determining the amount of surplus General Fund revenues after the transfer to the
            73932     General Fund Budget Reserve Account under Section [ 63-38-2.5 ] 63J-1-202 that is unrestricted
            73933     and undesignated;
            73934         (2) calculating an amount equal to the lesser of:
            73935         (a) 25% of the amount determined under Subsection (1); or
            73936         (b) 6% of the total of the General Fund appropriation amount and the Uniform School
            73937     Fund appropriation amount for the fiscal year in which the surplus occurs; and
            73938         (3) adding to the amount calculated under Subsection (2) an amount equal to the lesser
            73939     of:
            73940         (a) 25% more of the amount described in Subsection (1); or
            73941         (b) the amount necessary to replace in accordance with this Subsection (3) any amount
            73942     appropriated from the State Disaster Recovery Restricted Account within ten fiscal years before
            73943     the fiscal year in which the surplus occurs if:
            73944         (i) a surplus exists; and
            73945         (ii) the Legislature appropriates money from the State Disaster Recovery Restricted
            73946     Account that is not replaced by appropriation or as provided in this Subsection (3).
            73947         Section 1627. Section 63J-1-301 , which is renumbered from Section 63-38-3 is
            73948     renumbered and amended to read:
            73949     
Part 3. Appropriations and Expenditures

            73950          [63-38-3].     63J-1-301. Appropriations governed by chapter -- Restrictions on
            73951      expenditures -- Transfer of funds.
            73952         (1) All moneys appropriated by the Legislature are appropriated upon the terms and
            73953     conditions set forth in this chapter, and any department, agency, or institution, except the
            73954     Legislature and its committees, or where specifically exempted by the appropriating act, which
            73955     accepts moneys appropriated by the Legislature, does so subject to this chapter.
            73956         (2) (a) In providing that certain appropriations are to be expended in accordance with a
            73957     schedule or other restrictions, if any, set forth after each appropriations item, it is the intent of
            73958     the Legislature to limit the amount of money to be expended from each appropriations item for
            73959     certain specified purposes.
            73960         (b) Each schedule:
            73961         (i) is a restriction or limitation upon the expenditure of the respective appropriation
            73962     made;
            73963         (ii) does not itself appropriate any money; and
            73964         (iii) is not itself an item of appropriation.
            73965         (c) An appropriation or any surplus of any appropriation may not be diverted from any
            73966     department, agency, institution, or division to any other department, agency, institution, or
            73967     division.
            73968         (d) The money appropriated subject to a schedule or restriction may be used only for
            73969     the purposes authorized.
            73970         (e) (i) If any department, agency, or institution for which money is appropriated
            73971     requests the transfer of moneys appropriated to it from one purpose or function to another
            73972     purpose or function within an item of appropriation, the director of the Governor's Office of
            73973     Planning and Budget shall require a new work program to be submitted for the fiscal year
            73974     involved setting forth the purpose and necessity for such transfer.
            73975         (ii) The director and fiscal officer shall review the proposed change and submit their
            73976     findings and recommendations to the governor, who may permit the transfer.
            73977         (iii) The state fiscal officer shall notify the Legislature through the Office of the

            73978     Legislative Fiscal Analyst of action taken by the governor.
            73979         (f) Monies may not be transferred from one item of appropriation to any other item of
            73980     appropriation.
            73981         (3) This section does not apply to the Investigation Account of the Water Resources
            73982     Construction Fund. The investigation account shall continue to be governed by Section
            73983      73-10-8 .
            73984         Section 1628. Section 63J-1-302 , which is renumbered from Section 63-38-3.1 is
            73985     renumbered and amended to read:
            73986          [63-38-3.1].     63J-1-302. Restrictions on agency expenditures of monies --
            73987      Lobbyists.
            73988         (1) As used in this section:
            73989         (a) (i) "Agency" means each department, commission, board, council, agency,
            73990     institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
            73991     unit, bureau, panel, or other administrative unit of the state.
            73992         (ii) "Agency" includes the legislative branch, the judicial branch, the Board of Regents,
            73993     the board of trustees of each higher education institution, each higher education institution, or a
            73994     public education entity.
            73995         (b) "Executive action" means action undertaken by the governor, including signing or
            73996     vetoing legislation, and action undertaken by any official in the executive branch of government.
            73997         (c) "Legislative action" means action undertaken by the Utah Legislature or any part of
            73998     it.
            73999         (d) "Lobbyist" means a person who is not an employee of an agency who is hired as an
            74000     independent contractor by the agency to communicate with legislators or the governor for the
            74001     purpose of influencing the passage, defeat, amendment, or postponement of legislative or
            74002     executive action.
            74003         (2) A state agency or entity to which monies are appropriated by the Legislature may
            74004     not expend any monies to pay a lobbyist.
            74005         Section 1629. Section 63J-1-303 , which is renumbered from Section 63-38-3.2 is

            74006     renumbered and amended to read:
            74007          [63-38-3.2].     63J-1-303. Fees -- Adoption, procedure, and approval --
            74008      Establishing and assessing fees without legislative approval.
            74009         (1) As used in this section:
            74010         (a) (i) "Agency" means each department, commission, board, council, agency,
            74011     institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
            74012     unit, bureau, panel, or other administrative unit of the state.
            74013         (ii) "Agency" does not mean the Legislature or its committees.
            74014         (b) "Fee agency" means any agency that is authorized to establish regulatory fees.
            74015         (c) "Fee schedule" means the complete list of regulatory fees charged by a fee agency
            74016     and the amount of those fees.
            74017         (d) "Regulatory fees" means fees established for licensure, registration, or certification.
            74018         (2) Each fee agency shall:
            74019         (a) adopt a schedule of fees assessed for services provided by the fee agency that are:
            74020         (i) reasonable, fair, and reflect the cost of services provided; and
            74021         (ii) established according to a cost formula determined by the director of the Governor's
            74022     Office of Planning and Budget and the director of the Division of Finance in conjunction with
            74023     the agency seeking to establish the regulatory fee;
            74024         (b) conduct a public hearing on any proposed regulatory fee and increase or decrease
            74025     the proposed regulatory fee based upon the results of the public hearing;
            74026         (c) except as provided in Subsection (6), submit the fee schedule to the Legislature as
            74027     part of the agency's annual appropriations request;
            74028         (d) where necessary, modify the fee schedule to implement the Legislature's actions; and
            74029         (e) deposit all regulatory fees collected under the fee schedule into the General Fund.
            74030         (3) A fee agency may not:
            74031         (a) set regulatory fees by rule; or
            74032         (b) charge or collect any regulatory fee without approval by the Legislature unless the
            74033     fee agency has complied with the procedures and requirements of Subsection (5).

            74034         (4) The Legislature may approve, increase or decrease and approve, or reject any
            74035     regulatory fee submitted to it by a fee agency.
            74036         (5) (a) After the public hearing required by this section, a fee agency may establish and
            74037     assess regulatory fees without legislative approval if:
            74038         (i) the Legislature creates a new program that is to be funded by regulatory fees to be
            74039     set by the Legislature; and
            74040         (ii) the new program's effective date is before the Legislature's next annual general
            74041     session; or
            74042         (iii) the Division of Occupational and Professional licensing makes a special assessment
            74043     against qualified beneficiaries under the Residence Lien Restriction and Lien Recovery Fund Act
            74044     as provided in Subsection 38-11-206 (1).
            74045         (b) Each fee agency shall submit its fee schedule or special assessment amount to the
            74046     Legislature for its approval at a special session, if allowed in the governor's call, or at the next
            74047     annual general session of the Legislature, whichever is sooner.
            74048         (c) Unless the fee schedule is approved by the Legislature, the fee agency may not
            74049     collect a regulatory fee set according to this subsection after the adjournment of the annual
            74050     general session following the session that established the new program.
            74051         (6) (a) Each fee agency that wishes to increase any regulatory fee by 5% or more shall
            74052     obtain legislative approval for the fee increase as provided in this subsection before assessing
            74053     the new regulatory fee.
            74054         (b) Each fee agency that wishes to increase any regulatory fee by 5% or more shall
            74055     submit to the governor as part of the agency's annual appropriation request a list that identifies:
            74056         (i) the title or purpose of the regulatory fee;
            74057         (ii) the present amount of the regulatory fee;
            74058         (iii) the proposed new amount of the regulatory fee;
            74059         (iv) the percent that the regulatory fee will have increased if the Legislature approves
            74060     the higher fee; and
            74061         (v) the reason for the increase in the regulatory fee.

            74062         (c) (i) The governor may review and approve, modify and approve, or reject the
            74063     regulatory fee increases.
            74064         (ii) The governor shall transmit the list required by Subsection (6)(b), with any
            74065     modifications, to the Legislative Fiscal Analyst with the governor's budget recommendations.
            74066         (d) Bills approving any regulatory fee increases of 5% or more shall be filed before the
            74067     beginning of the Legislature's annual general session, if possible.
            74068         Section 1630. Section 63J-1-304 , which is renumbered from Section 63-38-3.3 is
            74069     renumbered and amended to read:
            74070          [63-38-3.3].     63J-1-304. Payment of fees prerequisite to service -- Exception.
            74071         (1) (a) State and county officers required by law to charge fees may not perform any
            74072     official service unless the fees prescribed for that service are paid in advance.
            74073         (b) When the fee is paid, the officer shall perform the services required.
            74074         (c) An officer is liable upon the officer's official bond for every failure or refusal to
            74075     perform an official duty when the fees are tendered.
            74076         (2) (a) Except as provided in Subsection (2)(b), no fees may be charged:
            74077         (i) to the officer's state, or any county or subdivision of the state;
            74078         (ii) to any public officer acting for the state, county, or subdivision;
            74079         (iii) in cases of habeas corpus;
            74080         (iv) in criminal causes before final judgment;
            74081         (v) for administering and certifying the oath of office;
            74082         (vi) for swearing pensioners and their witnesses; or
            74083         (vii) for filing and recording bonds of public officers.
            74084         (b) Fees may be charged for payment:
            74085         (i) of recording fees for assessment area recordings in compliance with Section
            74086      11-42-205 ;
            74087         (ii) of recording fees for judgments recorded in compliance with Sections 57-3-106 and
            74088      78-5-119 ; and
            74089         (iii) to the state engineer under Section 73-2-14 .

            74090         Section 1631. Section 63J-1-305 , which is renumbered from Section 63-38-3.4 is
            74091     renumbered and amended to read:
            74092          [63-38-3.4].     63J-1-305. Parking fees at court buildings.
            74093         (1) State-owned or leased court facilities may not charge or collect fees for parking
            74094     without prior approval by the Legislature.
            74095         (2) The Legislature may approve, increase, decrease and approve, or reject any parking
            74096     fee submitted to it by the courts.
            74097         Section 1632. Section 63J-1-306 , which is renumbered from Section 63-38-3.5 is
            74098     renumbered and amended to read:
            74099          [63-38-3.5].     63J-1-306. Internal service funds -- Governance and review.
            74100         (1) For purposes of this section:
            74101         (a) "Agency" means a department, division, office, bureau, or other unit of state
            74102     government, and includes any subdivision of an agency.
            74103         (b) "Do not replace vehicles" means a vehicle accounted for in the Division of Fleet
            74104     Operations for which charges to an agency for its use do not include amounts to cover
            74105     depreciation or to accumulate assets to replace the vehicle at the end of its useful life.
            74106         (c) "Internal service fund agency" means an agency that provides goods or services to
            74107     other agencies of state government or to other governmental units on a capital maintenance and
            74108     cost reimbursement basis, and which recovers costs through interagency billings.
            74109         (d) "Revolving loan fund" means each of the revolving loan funds defined in Section
            74110      63A-3-205 .
            74111         (2) An internal service fund agency is not subject to this section with respect to its
            74112     administration of a revolving loan fund.
            74113         (3) An internal service fund agency may not bill another agency for services that it
            74114     provides, unless the Legislature has:
            74115         (a) reviewed and approved the internal service fund agency's budget request;
            74116         (b) reviewed and approved the internal service fund agency's rates, fees, and other
            74117     amounts that it charges those who use its services and included those rates, fees, and amounts in

            74118     an appropriation act;
            74119         (c) approved the number of full-time, permanent positions of the internal service fund
            74120     agency as part of the annual appropriation process; and
            74121         (d) appropriated to the internal service fund agency the internal service fund's estimated
            74122     revenue based upon the rates and fee structure that are the basis for the estimate.
            74123         (4) (a) Except as provided in Subsection (4)(b), an internal service fund agency may not
            74124     charge rates, fees, and other amounts that exceed the rates, fees, and amounts established by the
            74125     Legislature in the appropriations act.
            74126         (b) (i) An internal service fund agency that begins a new service or introduces a new
            74127     product between annual general sessions of the Legislature may establish and charge an interim
            74128     rate or amount for that service or product.
            74129         (ii) The internal service fund agency shall submit that interim rate or amount to the
            74130     Legislature for approval at the next annual general session.
            74131         (5) The internal service fund agency budget request shall separately identify the capital
            74132     needs and the related capital budget.
            74133         (6) In the fiscal year that the accounting change referred to in Subsection 51-5-6 (2) is
            74134     implemented by the Division of Finance, the Division of Finance shall transfer equity created by
            74135     that accounting change to any internal service fund agency up to the amount needed to eliminate
            74136     any long-term debt and deficit working capital in the fund.
            74137         (7) No new internal service fund agency may be established unless reviewed and
            74138     approved by the Legislature.
            74139         (8) (a) Except as provided in Subsection (8)(f), an internal service fund agency may not
            74140     acquire capital assets unless legislative approval for acquisition of the assets has been included
            74141     in an appropriations act for the internal service fund agency.
            74142         (b) An internal service fund agency may not acquire capital assets after the transfer
            74143     mandated by Subsection (6) has occurred unless the internal service fund agency has adequate
            74144     working capital.
            74145         (c) The internal service fund agency shall provide working capital from the following

            74146     sources in the following order:
            74147         (i) first, from operating revenues to the extent allowed by state rules and federal
            74148     regulations;
            74149         (ii) second, from long-term debt, subject to the restrictions of this section; and
            74150         (iii) last, from an appropriation.
            74151         (d) (i) To eliminate negative working capital, an internal service fund agency may incur
            74152     long-term debt from the General Fund or Special Revenue Funds to acquire capital assets.
            74153         (ii) The internal service fund agency shall repay all long-term debt borrowed from the
            74154     General Fund or Special Revenue Funds by making regular payments over the useful life of the
            74155     asset according to the asset's depreciation schedule.
            74156         (e) (i) The Division of Finance may not allow an internal service fund agency's
            74157     borrowing to exceed 90% of the net book value of the agency's capital assets as of the end of
            74158     the fiscal year.
            74159         (ii) If an internal service fund agency wishes to purchase authorized assets or enter into
            74160     equipment leases that would increase its borrowing beyond 90% of the net book value of the
            74161     agency's capital assets, the agency may purchase those assets only with monies appropriated
            74162     from another fund, such as the General Fund or a special revenue fund.
            74163         (f) (i) Except as provided in Subsection (8)(f)(ii), capital assets acquired through
            74164     agency appropriation may not be transferred to any internal service fund agency without
            74165     legislative approval.
            74166         (ii) Vehicles acquired by agencies from appropriated funds or monies appropriated to
            74167     agencies to be used for vehicle purchases may be transferred to the Division of Fleet Operations
            74168     and, when transferred, become part of the Fleet Operations Internal Service Fund.
            74169         (iii) Vehicles acquired with funding from sources other than state appropriations or
            74170     acquired through the federal surplus property donation program may be transferred to the
            74171     Division of Fleet Operations and, when transferred, become part of the Fleet Operations
            74172     Internal Service Fund.
            74173         (iv) Unless otherwise approved by the Legislature, vehicles acquired under Subsection

            74174     (8)(f)(iii) shall be accounted for as "do not replace" vehicles.
            74175         (9) The Division of Finance shall adopt policies and procedures related to the
            74176     accounting for assets, liabilities, equity, revenues, expenditures, and transfers of internal service
            74177     funds agencies.
            74178         Section 1633. Section 63J-1-307 , which is renumbered from Section 63-38-3.6 is
            74179     renumbered and amended to read:
            74180          [63-38-3.6].     63J-1-307. Appropriating from restricted accounts.
            74181         (1) As used in this section, "operating deficit" means that estimated General Fund or
            74182     Uniform School Fund revenues are less than budgeted for the current or next fiscal year.
            74183         (2) Notwithstanding any other statute that limits the Legislature's power to appropriate
            74184     from a restricted account, if the Legislature determines that an operating deficit exists, unless
            74185     prohibited by federal law or court order, the Legislature may, in eliminating the deficit,
            74186     appropriate monies from a restricted account into the General Fund.
            74187         Section 1634. Section 63J-1-308 , which is renumbered from Section 63-38-4 is
            74188     renumbered and amended to read:
            74189          [63-38-4].     63J-1-308. Duplicate payment of claims prohibited.
            74190         No claim against the state, the payment of which is provided for, shall be duplicated, and
            74191     the amount of any appropriation for the payment of any such claim shall be withheld if it is
            74192     covered by any other appropriation.
            74193         Section 1635. Section 63J-1-309 , which is renumbered from Section 63-38-5 is
            74194     renumbered and amended to read:
            74195          [63-38-5].     63J-1-309. Appropriations from special funds or accounts --
            74196      Transfer by proper official only.
            74197          Whenever appropriations are made from special funds, or a fund account, the transfer
            74198     of moneys from such funds, or accounts, to the General Fund or any other fund for budgetary
            74199     purposes shall be made by the proper state fiscal officer.
            74200         Section 1636. Section 63J-1-310 , which is renumbered from Section 63-38-6 is
            74201     renumbered and amended to read:

            74202          [63-38-6].     63J-1-310. Warrants -- Not to be drawn until claim processed --
            74203      Redemption.
            74204         (1) No warrant to cover any claim against any appropriation or fund shall be drawn until
            74205     such claim has been processed as provided by law.
            74206         (2) The state treasurer shall return all redeemed warrants to the state fiscal officer for
            74207     purposes of reconciliation, post-audit and verification of the state treasurer's fund balances.
            74208         Section 1637. Section 63J-1-311 , which is renumbered from Section 63-38-7 is
            74209     renumbered and amended to read:
            74210          [63-38-7].     63J-1-311. Cash funds -- Petty cash, application for -- Cash
            74211      advances -- Revolving fund established by law excepted.
            74212         (1) Before any new petty cash funds may be established, the commission, department,
            74213     or agency requesting the fund or funds shall apply in writing to the state fiscal officer, setting
            74214     out the reasons for which it is needed and the amount requested.
            74215         (2) The state fiscal officer shall review the application and submit it to the governor
            74216     with [his] the state fiscal officer's recommendations, and the governor may establish the fund or
            74217     funds from moneys in the state treasury.
            74218         (3) The state fiscal officer may, in lieu of establishing petty cash, imprest cash, or
            74219     revolving funds for state institutions of higher education, permit advances to be made from
            74220     allotments to the institutions in sufficient amounts to provide necessary working bank balances
            74221     to facilitate an orderly management of institutional affairs. The institutions shall make reports as
            74222     required by the state fiscal officer for the expenditure of funds included in any advances.
            74223         (4) Revolving funds established by law are not subject to the provisions of this section.
            74224         Section 1638. Section 63J-1-401 , which is renumbered from Section 63-38-8 is
            74225     renumbered and amended to read:
            74226     
Part 4. Unused Balances

            74227          [63-38-8].     63J-1-401. End of fiscal year -- Unexpended balances -- Funds not
            74228      to be closed out -- Pending claims -- Transfer of amounts from item of appropriation.
            74229         (1) As used in this section, "transaction control number" means the unique numerical

            74230     identifier established by the Department of Health to track each medical claim, which indicates
            74231     the date upon which the claim is entered.
            74232         (2) On or before August 31 of each fiscal year, the director of the Division of Finance
            74233     shall close out to the proper fund or account all remaining unexpended and unencumbered
            74234     balances of appropriations made by the Legislature, except:
            74235         (a) those funds classified under Title 51, Chapter 5, Funds Consolidation Act as:
            74236         (i) enterprise funds;
            74237         (ii) internal service funds;
            74238         (iii) trust and agency funds;
            74239         (iv) capital projects funds;
            74240         (v) college and university funds;
            74241         (vi) debt service funds; and
            74242         (vii) permanent funds;
            74243         (b) appropriations made to the Legislature and its committees;
            74244         (c) restricted special revenue funds, unless specifically directed to close out the fund in
            74245     the fund's enabling legislation;
            74246         (d) acquisition and development funds appropriated to the Division of Parks and
            74247     Recreation;
            74248         (e) funds encumbered to pay purchase orders issued prior to May 1 for capital
            74249     equipment if delivery is expected before June 30;
            74250         (f) unexpended and unencumbered balances of appropriations that meet the
            74251     requirements of Section [ 63-38-8.1 ] 63J-1-402 ; and
            74252         (g) any other appropriations excepted by statute or by an annual appropriations act.
            74253         (3) (a) Liabilities and related expenses for goods and services received on or before
            74254     June 30 shall be recognized as expenses due and payable from appropriations made prior to
            74255     June 30.
            74256         (b) The liability and related expense shall be recognized within time periods established
            74257     by the Division of Finance but shall be recognized not later than August 31.

            74258         (c) Liabilities and expenses not so recognized may be paid from regular departmental
            74259     appropriations for the subsequent fiscal year, if these claims do not exceed unexpended and
            74260     unencumbered balances of appropriations for the years in which the obligation was incurred.
            74261         (d) No amounts may be transferred from an item of appropriation of any department,
            74262     institution, or agency into the Capital Projects Fund or any other fund without the prior express
            74263     approval of the Legislature.
            74264         (4) (a) For purposes of this chapter, claims processed under the authority of Title 26,
            74265     Chapter 18, Medical Assistance Act:
            74266         (i) may not be considered a liability or expense to the state for budgetary purposes
            74267     unless they are received by the Division of Health Care Financing within the time periods
            74268     established by the Division of Finance under Subsection (3)(b); and
            74269         (ii) are not subject to the requirements of Subsection (3)(c).
            74270         (b) The transaction control number recorded on each claim invoice by the division is
            74271     considered the date of receipt.
            74272         Section 1639. Section 63J-1-402 , which is renumbered from Section 63-38-8.1 is
            74273     renumbered and amended to read:
            74274          [63-38-8.1].     63J-1-402. Nonlapsing authority.
            74275         (1) As used in this section:
            74276         (a) (i) "Agency" means each department, commission, board, council, agency,
            74277     institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
            74278     unit, bureau, panel, or other administrative unit of the state.
            74279         (ii) "Agency" does not include those entities whose unappropriated and unencumbered
            74280     balances are made nonlapsing by the operation of Subsection [ 63-38-8 ] 63J-1-401 (2).
            74281         (b) "Appropriation balance" means the unexpended and unencumbered balance of a line
            74282     item appropriation made by the Legislature to an agency that exists at the end of a fiscal year.
            74283         (c) "Nonlapsing" means that an agency's appropriation balance is not closed out to the
            74284     appropriate fund at the end of a fiscal year as required by Section [ 63-38-8 ] 63J-1-401 .
            74285         (d) "One-time project" means a project or program that can be completed with the

            74286     appropriation balance and includes such items as employee incentive awards and bonuses,
            74287     purchase of equipment, and one-time training.
            74288         (e) "One-time projects list" means:
            74289         (i) a prioritized list of one-time projects, upon which an agency would like to spend any
            74290     appropriation balance; and
            74291         (ii) for each project, the maximum amount the agency is estimating for the project.
            74292         (f) "Program" means a service provided by an agency to members of the public, other
            74293     agencies, or to employees of the agency.
            74294         (2) Notwithstanding the requirements of Section [ 63-38-8 ] 63J-1-401 , an agency may,
            74295     by following the procedures and requirements of this section, retain and expend any
            74296     appropriation balance.
            74297         (3) (a) Each agency that wishes to preserve any part or all of its appropriation balance
            74298     as nonlapsing shall include a one-time projects list as part of the budget request that it submits
            74299     to the governor and the Legislature at the annual general session of the Legislature immediately
            74300     before the end of the fiscal year in which the agency may have an appropriation balance.
            74301         (b) An agency may not include a proposed expenditure on its one-time projects list if:
            74302         (i) the expenditure creates a new program;
            74303         (ii) the expenditure enhances the level of an existing program; or
            74304         (iii) the expenditure will require a legislative appropriation in the next fiscal year.
            74305         (c) The governor:
            74306         (i) may approve some or all of the items from an agency's one-time projects list; and
            74307         (ii) shall identify and prioritize any approved one-time projects in the budget that [he]
            74308     the governor submits to the Legislature.
            74309         (4) The Legislature:
            74310         (a) may approve some or all of the specific items from an agency's one-time projects list
            74311     as authorized expenditures of an agency's appropriation balance;
            74312         (b) shall identify any authorized one-time projects in the appropriate line item
            74313     appropriation; and

            74314         (c) may prioritize one-time projects in intent language.
            74315         Section 1640. Section 63J-1-403 , which is renumbered from Section 63-38-8.2 is
            74316     renumbered and amended to read:
            74317          [63-38-8.2].     63J-1-403. Internal service funds -- End of fiscal year -- Unused
            74318      authority for capital acquisition.
            74319         (1) An internal service fund agency's authority to acquire capital assets under
            74320     Subsection [ 63-38-3.5 ] 63J-1-306 (8)(a) shall lapse if the acquisition of the capital asset does
            74321     not occur in the fiscal year in which the authorization is included in the appropriations act,
            74322     unless the Legislature identifies the authority to acquire the capital asset as nonlapsing authority:
            74323         (a) for a specific one-time project and a limited period of time in the Legislature's initial
            74324     appropriation to the agency; or
            74325         (b) in a supplemental appropriation in accordance with Subsection (2).
            74326         (2) (a) An internal service fund agency's authority to acquire capital assets may be
            74327     retained as nonlapsing authorization if the internal service fund agency includes a one-time
            74328     project's list as part of the budget request that it submits to the governor and the Legislature at
            74329     the annual general session of the Legislature immediately before the end of the fiscal year in
            74330     which the agency may have unused capital acquisition authority.
            74331         (b) The governor:
            74332         (i) may approve some or all of the items from an agency's one-time project's list; and
            74333         (ii) shall identify and prioritize any approved one-time projects in the budget that [he]
            74334     the governor submits to the Legislature.
            74335         (c) The Legislature:
            74336         (i) may approve some or all of the specific items from an agency's one-time project's list
            74337     as an approved capital acquisition for an agency's appropriation balance;
            74338         (ii) shall identify any authorized one-time projects in the appropriate line item
            74339     appropriation; and
            74340         (iii) may prioritize one-time projects in intent language.
            74341         (3) An internal service fund agency shall submit a status report of outstanding

            74342     nonlapsing authority to acquire capital assets and associated one-time projects to the Governor's
            74343     Office of Planning and Budget and the Legislative Fiscal Analyst's Office with the proposed
            74344     budget required by Section [ 63-38-2 ] 63J-1-201 .
            74345         Section 1641. Section 63J-1-404 , which is renumbered from Section 63-38-9 is
            74346     renumbered and amended to read:
            74347          [63-38-9].     63J-1-404. Revenue types -- Disposition of funds collected or
            74348      credited by a state agency.
            74349         (1) (a) The revenues enumerated in this section are established as major revenue types.
            74350         (b) The Division of Finance shall:
            74351         (i) account for revenues in accordance with generally accepted accounting principles;
            74352     and
            74353         (ii) use the major revenue types in internal accounting.
            74354         (c) Each agency shall:
            74355         (i) use the major revenue types enumerated in this section to account for revenues;
            74356         (ii) deposit revenues and other public funds received by them by following the
            74357     procedures and requirements of Title 51, Chapter 7, State Money Management Act; and
            74358         (iii) expend revenues and public funds as required by this chapter.
            74359         (2) The major revenue types are:
            74360         (a) free revenue;
            74361         (b) restricted revenue;
            74362         (c) dedicated credits; and
            74363         (d) fixed collections.
            74364         (3) (a) Free revenue includes:
            74365         (i) collections that are required by law to be deposited in the General Fund, the
            74366     Education Fund, the Uniform School Fund, or the Transportation Fund;
            74367         (ii) collections that are not otherwise designated by law;
            74368         (iii) collections that are not externally restricted; and
            74369         (iv) collections that are not included in an approved work program.

            74370         (b) Each agency shall deposit its free revenues into the appropriate fund.
            74371         (c) An agency may expend free revenues up to the amount specifically appropriated by
            74372     the Legislature.
            74373         (d) Any free revenue funds appropriated by the Legislature to an agency that remain
            74374     unexpended at the end of the fiscal year lapse to the source fund unless the Legislature provides
            74375     by law that those funds are nonlapsing.
            74376         (4) (a) Restricted revenues are collections deposited by law into a separate fund or
            74377     subfund that are designated for a specific program or purpose.
            74378         (b) Each agency shall deposit its restricted revenues into a restricted fund.
            74379         (c) The Legislature may appropriate restricted revenues from a restricted fund for the
            74380     specific purpose or program designated by law.
            74381         (d) If the fund equity of a restricted fund is insufficient to provide the funds
            74382     appropriated from it by the Legislature, the Division of Finance may reduce the appropriation to
            74383     a level that ensures that the fund equity is not less than zero.
            74384         (e) Any restricted revenue funds appropriated by the Legislature to an agency that
            74385     remain unexpended at the end of the fiscal year lapse to the restricted fund unless the
            74386     Legislature provides by law that those funds, or the program or line item financed by those
            74387     funds, are nonlapsing.
            74388         (5) (a) Dedicated credits and federal revenues are collections by an agency that are
            74389     deposited directly into an account for expenditure on a separate line item and program.
            74390         (b) An agency may expend dedicated credits for any purpose within the program or line
            74391     item.
            74392         (c) (i) An agency may expend dedicated credits in excess of the amount appropriated as
            74393     dedicated credits by the Legislature by following the procedures contained in this Subsection
            74394     (5)(c).
            74395         (ii) The agency shall develop a new work program and the justification for the work
            74396     program and submit it to the Division of Finance and the director of the Governor's Office of
            74397     Planning and Budget. Except for monies deposited as dedicated credits in the Drug Stamp Tax

            74398     Fund under Section 59-19-105 or line items covering tuition and federal vocational funds at
            74399     institutions of higher learning, any expenditure of dedicated credits in excess of amounts
            74400     appropriated as dedicated credits by the Legislature may not be used to permanently increase
            74401     personnel within the agency unless approved by the Legislature.
            74402         (iii) The Division of Finance and the director of the Governor's Office of Planning and
            74403     Budget shall review the program and submit their findings and recommendations to the
            74404     governor.
            74405         (iv) The governor may authorize the agency to expend its excess dedicated credits by
            74406     approving the submitted work program.
            74407         (v) The state's fiscal officer shall notify the Legislature by providing notice of the
            74408     governor's action to the Office of Legislative Fiscal Analyst.
            74409         (d) (i) All excess dedicated credits lapse to the appropriate fund at the end of the fiscal
            74410     year unless the Legislature has designated the entire program or line item that is partially or fully
            74411     funded from dedicated credits as nonlapsing.
            74412         (ii) The Division of Finance shall determine the appropriate fund into which the
            74413     dedicated credits lapse.
            74414         (6) (a) Fixed collections are collections:
            74415         (i) fixed by law or by the appropriation act at a specific amount; and
            74416         (ii) required by law to be deposited into a separate line item and program.
            74417         (b) The Legislature may establish by law the maximum amount of fixed collections that
            74418     an agency may expend.
            74419         (c) If an agency receives less than the maximum amount of expendable fixed collections
            74420     established by law, the agency's authority to expend is limited to the amount of fixed collections
            74421     that it receives.
            74422         (d) If an agency receives fixed collections greater than the maximum amount of
            74423     expendable fixed collections established by law, those excess amounts lapse to the General
            74424     Fund, the Education Fund, the Uniform School Fund, or the Transportation Fund as designated
            74425     by the director of the Division of Finance at the end of the fiscal year.

            74426         (7) (a) Unless otherwise specifically provided by law, when an agency has a program or
            74427     line item that is funded by more than one major revenue type, the agency shall expend its
            74428     dedicated credits and fixed collections first.
            74429         (b) Unless otherwise specifically provided by law, when programs or line items are
            74430     funded by more than one major revenue type and include both free revenue and restricted
            74431     revenue, an agency shall expend those sources based upon a proration of the amounts
            74432     appropriated from each of those major revenue types.
            74433         Section 1642. Section 63J-1-405 , which is renumbered from Section 63-38-10 is
            74434     renumbered and amended to read:
            74435          [63-38-10].     63J-1-405. Overexpenditure of budget by agency -- Prorating
            74436      budget income shortfall.
            74437         (1) In providing for appropriations, the Legislature intends that expenditures of
            74438     departments, agencies, and institutions of state government be kept within revenues available
            74439     for such expenditures.
            74440         (2) (a) The Legislature also intends that line items of appropriation not be
            74441     overexpended.
            74442         (b) If an agency's line item is overexpended at the close of a fiscal year:
            74443         (i) the director of the Division of Finance may make payments from the line item to
            74444     vendors for goods or services that were received on or before June 30; and
            74445         (ii) the director of the Division of Finance shall immediately reduce the agency's line
            74446     item budget in the current year by the amount of the overexpenditure.
            74447         (c) Each agency with an overexpended line item shall produce a written report
            74448     explaining the reasons for the overexpenditure and shall present the report to the Board of
            74449     Examiners as required by Section [ 63-6-10 ] 63G-9-301 .
            74450         (3) If the total of all revenues accruing in any given fiscal year to the General Fund, or
            74451     any other major fund type, collections, or dedicated credits, from which appropriations are
            74452     made, are not sufficient to cover the appropriations made for that period, the governor shall
            74453     reduce the budgetary allotments and transfer of funds by the amount of the deficiency.

            74454         (4) (a) No department may receive any advance allotment, or allotments in excess of
            74455     regular monthly allotments, that cannot be covered by anticipated revenue within the work
            74456     program of the fiscal year, unless the governor allocates moneys from [his] the governor's
            74457     emergency appropriations.
            74458         (b) All allocations made from the governor's emergency appropriations shall be reported
            74459     to the budget subcommittee of the Legislative Management Committee by notifying the Office
            74460     of the Legislative Fiscal Analyst at least 15 days before the effective date of the allocation.
            74461         (c) Emergency appropriations shall be allocated only to support activities having
            74462     existing legislative approval and appropriation, and may not be allocated to any activity or
            74463     function rejected directly or indirectly by the Legislature.
            74464         Section 1643. Section 63J-1-406 , which is renumbered from Section 63-38-11 is
            74465     renumbered and amended to read:
            74466          [63-38-11].     63J-1-406. Director of finance to exercise accounting control --
            74467      Work programs -- Allotments and expenditures.
            74468         (1) The director of finance shall exercise accounting control over all state departments,
            74469     institutions, and agencies other than the Legislature and legislative committees.
            74470         (2) (a) The director shall require the head of each department to submit, by May 15 of
            74471     each year, a work program for the next fiscal year.
            74472         (b) The director may require any department to submit a work program for any other
            74473     period.
            74474         (3) The work program shall include appropriations and all other funds from any source
            74475     made available to the department for its operation and maintenance for the period and program
            74476     authorized by the appropriation act.
            74477         (4) The director of finance shall, upon request from the governor, revise, alter,
            74478     decrease, or change work programs.
            74479         (5) Notwithstanding the requirements of [Title 63, Chapter 38a] Title 63J, Chapter 2,
            74480     Revenue Procedures and Control Act, the aggregate of the work program changes may not
            74481     exceed the total appropriations or other funds from any source that are available to the

            74482     department line item for the fiscal year in question.
            74483         (6) The director of finance shall transmit a copy of the changes when approved by the
            74484     governor to the head of the department concerned and also a copy to the legislative analyst.
            74485         (7) Upon request, review, and approval by the governor, the director of finance shall
            74486     permit all expenditures to be made from the appropriations or other funds from any source on
            74487     the basis of those work programs.
            74488         (8) (a) Except as provided by Subsection (8)(c), the director shall, through statistical
            74489     sampling methods or other means, examine and approve or disapprove all requisitions and
            74490     requests for proposed expenditures of the departments.
            74491         (b) No requisitions of any of the departments shall be allowed nor shall any obligation
            74492     be created without the approval and the certification of the director.
            74493         (c) Notwithstanding the requirements of Subsection (8)(a), the director need only
            74494     certify the availability of funds when the requisitions or proposed expenditures are for the
            74495     judicial branch or to pay the salaries or compensation of officers fixed by law.
            74496         Section 1644. Section 63J-1-407 , which is renumbered from Section 63-38-11.5 is
            74497     renumbered and amended to read:
            74498          [63-38-11.5].     63J-1-407. Reduction in federal funds -- Agencies to reduce
            74499      budgets.
            74500         (1) In any fiscal year in which federal grants to be received by state agencies,
            74501     departments, divisions, or institutions are reduced below the level estimated in the
            74502     appropriations acts for that year, the programs supported by those grants must be reduced
            74503     commensurate with the amount of the federal reduction unless the Legislature appropriates state
            74504     funds to offset the loss in federal funding.
            74505         (2) This program modification shall be reported to the Legislature through the
            74506     Executive Appropriations Committee and the Office of the Legislative Fiscal Analyst.
            74507         Section 1645. Section 63J-1-408 , which is renumbered from Section 63-38-12 is
            74508     renumbered and amended to read:
            74509          [63-38-12].     63J-1-408. Uniform School Fund -- Appropriations.

            74510         Appropriations made from the General Fund to the Uniform School Fund to assist in
            74511     financing the state's portion of the minimum school program as provided by law, shall be
            74512     conditioned upon available revenue.
            74513         If revenues to the General Fund are not sufficient to permit transfers to the Uniform
            74514     School Fund as provided by appropriation, the state fiscal officers, with the approval of the
            74515     governor, shall withhold such transfers during the fiscal period, as in their judgment the
            74516     available revenues justify, after other appropriations made by law have been provided for, and
            74517     after any modifications in department and agency work program and allotments have been
            74518     made; and provided further, that transfers to the Uniform School Fund shall be made at such
            74519     times as required to equalize the property levy for each fiscal year.
            74520         Section 1646. Section 63J-1-409 , which is renumbered from Section 63-38-13 is
            74521     renumbered and amended to read:
            74522          [63-38-13].     63J-1-409. Conditions on appropriations binding.
            74523         Any and all conditions as may be attached to items of appropriation made by the
            74524     appropriations act not inconsistent with law shall be binding upon the recipient of any such
            74525     appropriation.
            74526         Section 1647. Section 63J-1-501 , which is renumbered from Section 63-38-14 is
            74527     renumbered and amended to read:
            74528     
Part 5. Budget Review

            74529          [63-38-14].     63J-1-501. Request for in-depth budget review of agency or
            74530      program -- Form of budget submitted.
            74531         The Legislative Management Committee, upon recommendation of an appropriations
            74532     subcommittee of the Legislature, may request of the governor for any designated fiscal year, an
            74533     in-depth budget review of any state department, agency, institution or program. When
            74534     responding to a request for an in-depth budget review, the governor shall submit for the
            74535     department, agency, institution or program for the fiscal year indicated a budget prepared in
            74536     accordance with Section [ 63-38-15 ] 63J-1-502 and using the format and procedures developed
            74537     by the director of the Governor's Office of Planning and Budget in cooperation with the

            74538     legislative fiscal analyst. This format shall be constructed to assist the analyst and the
            74539     Legislature in reviewing the justification for selected departments, agencies, and institutions or
            74540     any of their programs and activities.
            74541         Section 1648. Section 63J-1-502 , which is renumbered from Section 63-38-15 is
            74542     renumbered and amended to read:
            74543          [63-38-15].     63J-1-502. Purpose of review -- Information submitted.
            74544         The purpose of an in-depth budget review is to determine whether each department,
            74545     agency, institution or program warrants continuation of its current level of expenditure or at a
            74546     different level, or if it should be terminated. The budget for a state department, agency,
            74547     institution or program subject to an in-depth budget review shall be a detailed plan in which
            74548     programs and activities within programs are organized and budgeted after analysis and
            74549     evaluation are made of all proposed expenditures. In the presentation of the budget of a
            74550     department, agency, institution or program subject to in-depth budget review, the governor
            74551     shall include the following:
            74552         (1) a statement of agency and program objectives, effectiveness measures, and program
            74553     size indicators;
            74554         (2) alternative funding levels for each program with effectiveness measures and
            74555     program size indicators detailed for each alternative funding level. Alternative funding levels
            74556     shall be determined as percentages of the appropriations level authorized by the Legislature for
            74557     the current fiscal year. The percentages shall be determined for each in-depth budget review by
            74558     the director of the Governor's Office of Planning and Budget in consultation with the legislative
            74559     fiscal analyst;
            74560         (3) a priority ranking of all programs and activities in successively increasing levels of
            74561     performance and funding;
            74562         (4) other budgetary information requested by the legislative fiscal analyst; and
            74563         (5) a statement containing further recommendations of the governor as appropriate.
            74564         Section 1649. Section 63J-1-503 , which is renumbered from Section 63-38-16 is
            74565     renumbered and amended to read:

            74566          [63-38-16].     63J-1-503. Selection of activities for review -- Coordination with
            74567      audits.
            74568         The legislative auditor general shall consult with the Legislative Management Committee
            74569     to determine the programs or activities to audit which will best assist the executive branch in
            74570     preparing the in-depth budget and the Legislature in reviewing the in-depth budget for funding.
            74571     The scope of the audits shall be determined by the legislative auditor general based upon need,
            74572     manpower considerations and other audit priorities. It is the intent of the Legislature that the
            74573     legislative fiscal analyst and the legislative auditor general coordinate the in-depth budget
            74574     reviews insofar as possible with the audits performed by the legislative auditor general.
            74575         Section 1650. Section 63J-2-101 , which is renumbered from Section 63-38a-101 is
            74576     renumbered and amended to read:
            74577     
CHAPTER 2. REVENUE PROCEDURES AND CONTROL ACT

            74578     
Part 1. General Provisions

            74579          [63-38a-101].     63J-2-101. Title.
            74580         This chapter [shall be] is known as the "Revenue Procedures and Control Act."
            74581         Section 1651. Section 63J-2-102 , which is renumbered from Section 63-38a-102 is
            74582     renumbered and amended to read:
            74583          [63-38a-102].     63J-2-102. Definitions.
            74584         As used in this chapter:
            74585         (1) (a) "Agency" means each department, commission, board, council, agency,
            74586     institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
            74587     unit, bureau, panel, or other administrative unit of the state.
            74588         (b) "Agency" does not include the legislative branch, the board of regents, the Utah
            74589     Higher Education Assistance Authority, the board of trustees of each higher education
            74590     institution, each higher education institution and its associated branches, centers, divisions,
            74591     institutes, foundations, hospitals, colleges, schools, or departments, a public education entity, or
            74592     an independent agency.
            74593         (2) (a) "Dedicated credits revenues" means revenues from collections by an agency that

            74594     are deposited directly into an account for expenditure on a separate line item and program.
            74595         (b) "Dedicated credits" does not mean:
            74596         (i) federal revenues and the related pass through or the related state match paid by one
            74597     agency to another;
            74598         (ii) revenues that are not deposited in governmental funds;
            74599         (iii) revenues from any contracts; and
            74600         (iv) revenues received by the Attorney General's Office from billings for professional
            74601     services.
            74602         (3) "Fees" means revenue collected by an agency for performing a service or providing
            74603     a function that the agency deposits or accounts for as dedicated credits or fixed collections.
            74604         (4) (a) "Fixed collections revenues" means revenue from collections:
            74605         (i) fixed by law or by the appropriation act at a specific amount; and
            74606         (ii) required by law to be deposited into a separate line item and program.
            74607         (b) "Fixed collections" does not mean:
            74608         (i) federal revenues and the related pass through or the related state match paid by one
            74609     agency to another;
            74610         (ii) revenues that are not deposited in governmental funds;
            74611         (iii) revenues from any contracts; and
            74612         (iv) revenues received by the Attorney General's Office from billings for professional
            74613     services.
            74614         (5) (a) "Governmental fund" means funds used to account for the acquisition, use, and
            74615     balances of expendable financial resources and related liabilities using a measurement focus that
            74616     emphasizes the flow of financial resources.
            74617         (b) "Governmental fund" does not include internal service funds, enterprise funds,
            74618     capital projects funds, debt service funds, or trust and agency funds as established in Section
            74619      51-5-4 .
            74620         (6) "Independent agency" means the Utah State Retirement Office, the Utah Housing
            74621     Corporation, and the Workers' Compensation Fund.

            74622         (7) "Program" means the function or service provided by an agency for which the
            74623     agency collects fees.
            74624         (8) "Revenue types" means the categories established by the Division of Finance under
            74625     the authority of this chapter that classify revenue according to the purpose for which it is
            74626     collected.
            74627         Section 1652. Section 63J-2-201 , which is renumbered from Section 63-38a-103 is
            74628     renumbered and amended to read:
            74629     
Part 2. Procedures

            74630          [63-38a-103].     63J-2-201. Accounting for fee revenues.
            74631         (1) The Division of Finance shall:
            74632         (a) establish revenue types;
            74633         (b) develop a computerized master file of revenue types containing, for each revenue
            74634     type:
            74635         (i) the definition of each revenue type;
            74636         (ii) if available, a historical record of the amount collected for the revenue type for each
            74637     of the five years;
            74638         (iii) the agency that collected the revenue;
            74639         (iv) the program, organization, and fund into which the revenue was originally recorded
            74640     each year;
            74641         (v) a general description of the function where the largest portion of the revenue was
            74642     spent each year;
            74643         (vi) the specific legal authority that authorizes the agency to collect the revenue;
            74644         (vii) the rates charged to the individuals or entities that pay the revenue;
            74645         (viii) the general methodology used to determine the rate charged to individuals or
            74646     entities that pay the revenue;
            74647         (ix) for dedicated credits revenues and fixed collections revenues, the revenue estimate
            74648     used by the agency to prepare their budget;
            74649         (x) the amount appropriated as dedicated credits revenues and fixed collections

            74650     revenues in the annual appropriation act; and
            74651         (xi) for revenues other than dedicated credits revenues and fixed collections revenues,
            74652     an estimate of the amount of revenue, if available or reasonably calculable; and
            74653         (c) make the computerized file available to the Budget Office and the Office of
            74654     Legislative Fiscal Analyst upon request.
            74655         (2) Each agency shall provide the Division of Finance with the information required by
            74656     this section.
            74657         Section 1653. Section 63J-2-202 , which is renumbered from Section 63-38a-104 is
            74658     renumbered and amended to read:
            74659          [63-38a-104].     63J-2-202. Disposition of revenues.
            74660         (1) (a) Each agency shall include in its annual budget request estimates of dedicated
            74661     credits revenues and fixed collections revenues that are identified by, collected for, or set by the
            74662     agency.
            74663         (b) If the Legislature or the Division of Finance establishes a new revenue type by law,
            74664     the agency shall include that new revenue type in its budget request for the next fiscal year.
            74665         (c) (i) Except as provided in Subsection (1)(c)(ii), if any agency fails to include the
            74666     estimates of a revenue type in its annual budget request, the Division of Finance shall deposit
            74667     the monies collected in that revenue type into the General Fund or other appropriate fund as
            74668     free or restricted revenue.
            74669         (ii) The Division of Finance may not deposit the monies collected from a revenue type
            74670     not included in an agency's annual budget request into the General Fund or other appropriate
            74671     fund if the agency did not include the estimates of the revenue type in its annual budget request
            74672     because the Legislature had not yet established or authorized the new revenue type by law.
            74673         (2) (a) (i) Except as provided in Subsection (2)(b), each agency that receives dedicated
            74674     credits and fixed collections revenues greater than the amount appropriated to them by the
            74675     Legislature in the annual appropriations act may expend the excess up to 25% of the amount
            74676     appropriated if the expenditure is authorized by an amended work program approved as
            74677     provided in Section [ 63-38-11 ] 63J-1-406 . However, except for monies deposited as dedicated

            74678     credits in the Illegal Drug Stamp Tax Fund under Section 59-19-105 or line items covering
            74679     tuition and federal vocational funds at institutions of higher learning, any expenditure of
            74680     dedicated credits in excess of amounts appropriated by the Legislature may not be used to
            74681     permanently increase personnel within the agency unless approved by the Legislature.
            74682         (ii) The Division of Finance shall deposit the balance of that excess into the General
            74683     Fund or other appropriate fund as free or restricted revenue.
            74684         (b) Notwithstanding the requirements of Subsection (2)(a), when an agency's dedicated
            74685     credits and fixed collections revenues represent over 90% of the budget of the program for
            74686     which they are collected, the agency may expend 100% of the excess of the amount
            74687     appropriated if the expenditure is authorized by an amended work program approved as
            74688     provided in Section [ 63-38-11 ] 63J-1-406 .
            74689         Section 1654. Section 63J-3-101 , which is renumbered from Section 63-38c-101 is
            74690     renumbered and amended to read:
            74691     
CHAPTER 3. STATE APPROPRIATIONS AND TAX LIMITATION ACT

            74692     
Part 1. General Provisions

            74693          [63-38c-101].     63J-3-101. Title.
            74694         This chapter is known as the "State Appropriations and Tax Limitation Act."
            74695         Section 1655. Section 63J-3-102 , which is renumbered from Section 63-38c-102 is
            74696     renumbered and amended to read:
            74697          [63-38c-102].     63J-3-102. Purpose of chapter -- Limitations on state
            74698      mandated property tax, state appropriations, and state debt.
            74699         (1) (a) It is the purpose of this chapter to:
            74700         (i) place a limitation on the state mandated property tax rate under Title 53A, Chapter
            74701     17a, Minimum School Program Act;
            74702         (ii) place limitations on state government appropriations based upon the combined
            74703     changes in population and inflation; and
            74704         (iii) place a limitation on the state's outstanding general obligation debt.
            74705         (b) The limitations imposed by this chapter are in addition to limitations on tax levies,

            74706     rates, and revenues otherwise provided for by law.
            74707         (2) (a) This chapter may not be construed as requiring the state to collect the full
            74708     amount of tax revenues permitted to be appropriated by this chapter.
            74709         (b) This chapter's purpose is to provide a ceiling, not a floor, limitation on the
            74710     appropriations of state government.
            74711         (3) The recommendations and budget analysis prepared by the Governor's Office of
            74712     Planning and Budget and the Office of the Legislative Fiscal Analyst, as required by Title 36,
            74713     Chapter 12, Legislative Organization, shall be in strict compliance with the limitations imposed
            74714     under this chapter.
            74715         Section 1656. Section 63J-3-103 , which is renumbered from Section 63-38c-103 is
            74716     renumbered and amended to read:
            74717          [63-38c-103].     63J-3-103. Definitions.
            74718         As used in this chapter:
            74719         (1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
            74720     from unrestricted General Fund sources and from non-Uniform School Fund income tax
            74721     revenues as presented in the governor's executive budgets.
            74722         (b) Appropriations includes appropriations that are contingent upon available surpluses
            74723     in the General Fund.
            74724         (c) "Appropriations" does not mean:
            74725         (i) debt service expenditures;
            74726         (ii) emergency expenditures;
            74727         (iii) expenditures from all other fund or subfund sources presented in the executive
            74728     budgets;
            74729         (iv) transfers or appropriations from the Education Fund to the Uniform School Fund;
            74730         (v) transfers into, or appropriations made to, the General Fund Budget Reserve
            74731     Account established in Section [ 63-38-2.5 ] 63J-1-202 ;
            74732         (vi) transfers into, or appropriations made to, the Education Budget Reserve Account
            74733     established in Section [ 63-38-2.6 ] 63J-1-203 ;

            74734         (vii) transfers in accordance with Section [ 63-38-2.7 ] 63J-1-204 into, or appropriations
            74735     made to the State Disaster Recovery Restricted Account created in Section 53-2-403 ;
            74736         (viii) monies appropriated to fund the total one-time project costs for the construction
            74737     of capital developments as defined in Section 63A-5-104 ;
            74738         (ix) transfers or deposits into or appropriations made to the Centennial Highway Fund
            74739     Restricted Account created by Section 72-2-118 ;
            74740         (x) transfers or deposits into or appropriations made to the Transportation Investment
            74741     Fund of 2005 created by Section 72-2-124 ; or
            74742         (xi) transfers or deposits into or appropriations made to:
            74743         (A) the Department of Transportation from any source; or
            74744         (B) any transportation-related account or fund from any source.
            74745         (2) "Base year real per capita appropriations" means the result obtained for the state by
            74746     dividing the fiscal year 1985 actual appropriations of the state less debt monies by:
            74747         (a) the state's July 1, 1983 population; and
            74748         (b) the fiscal year 1983 inflation index divided by 100.
            74749         (3) "Calendar year" means the time period beginning on January 1 of any given year and
            74750     ending on December 31 of the same year.
            74751         (4) "Fiscal emergency" means an extraordinary occurrence requiring immediate
            74752     expenditures and includes the settlement under Chapter 4, Laws of Utah 1988, Fourth Special
            74753     Session.
            74754         (5) "Fiscal year" means the time period beginning on July 1 of any given year and
            74755     ending on June 30 of the subsequent year.
            74756         (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual
            74757     capital and operations appropriations from General Fund and non-Uniform School Fund income
            74758     tax revenue sources, less debt monies.
            74759         (7) "Inflation index" means the change in the general price level of goods and services
            74760     as measured by the Gross National Product Implicit Price Deflator of the Bureau of Economic
            74761     Analysis, U.S. Department of Commerce calculated as provided in Section [ 63-38c-202 ]

            74762      63J-3-202 .
            74763         (8) (a) "Maximum allowable appropriations limit" means the appropriations that could
            74764     be, or could have been, spent in any given year under the limitations of this chapter.
            74765         (b) "Maximum allowable appropriations limit" does not mean actual appropriations
            74766     spent or actual expenditures.
            74767         (9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two
            74768     fiscal years previous to the fiscal year for which the maximum allowable inflation and population
            74769     appropriations limit is being computed under this chapter.
            74770         (10) "Most recent fiscal year's population" means the fiscal year population two fiscal
            74771     years previous to the fiscal year for which the maximum allowable inflation and population
            74772     appropriations limit is being computed under this chapter.
            74773         (11) "Population" means the number of residents of the state as of July 1 of each year as
            74774     calculated by the Governor's Office of Planning and Budget according to the procedures and
            74775     requirements of Section [ 63-38c-202 ] 63J-3-202 .
            74776         (12) "Revenues" means the revenues of the state from every tax, penalty, receipt, and
            74777     other monetary exaction and interest connected with it that are recorded as unrestricted revenue
            74778     of the General Fund and from non-Uniform School Fund income tax revenues, except as
            74779     specifically exempted by this chapter.
            74780         (13) "Security" means any bond, note, warrant, or other evidence of indebtedness,
            74781     whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
            74782     "indebtedness" within the meaning of any provision of the constitution or laws of this state.
            74783         Section 1657. Section 63J-3-201 , which is renumbered from Section 63-38c-201 is
            74784     renumbered and amended to read:
            74785     
Part 2. Appropriations Limit

            74786          [63-38c-201].     63J-3-201. Appropriations limit -- Formula.
            74787         (1) There is established a state appropriations limit for each fiscal year beginning after
            74788     June 30, 1988.
            74789         (2) For each of these fiscal years, the annual legislative appropriations for this state, its

            74790     agencies, departments, and institutions may not exceed that sum determined by applying the
            74791     formula B* P* (I/100) in which:
            74792         (a) "B" equals the base year real per capita appropriations for the state, its agencies,
            74793     departments, and institutions;
            74794         (b) "P" equals the most recent fiscal year's population; and
            74795         (c) "I" equals the most recent fiscal year's inflation index adjusted to reflect fiscal year
            74796     1989 as having an index value of 100.
            74797         (3) The revenues specified in Section [ 63-38c-205 ] 63J-3-205 are not subject to the
            74798     limitation in this section.
            74799         Section 1658. Section 63J-3-202 , which is renumbered from Section 63-38c-202 is
            74800     renumbered and amended to read:
            74801          [63-38c-202].     63J-3-202. Computing formula elements.
            74802         (1) For purposes of calculating fiscal year inflation indexes for the previous fiscal year,
            74803     the Governor's Office of Planning and Budget shall use:
            74804         (a) the actual quarterly data released by the U.S. Department of Commerce as of
            74805     January 31 of each year; and
            74806         (b) the most recent U.S. Bureau of Census population estimates as of January 31 of
            74807     each year.
            74808         (2) (a) For purposes of computing the inflation index, the Governor's Office of Planning
            74809     and Budget shall:
            74810         (i) assign the bureau's 1982 calendar year inflation index value of 100 to fiscal year
            74811     1989 for purposes of computing fiscal year index values;
            74812         (ii) compute all subsequent fiscal year inflation indexes after having assigned the fiscal
            74813     year 1989 inflation index a value of 100; and
            74814         (iii) use the quarterly index values published by the Bureau of Economic Analysis, U.S.
            74815     Department of Commerce, to compute fiscal year index values.
            74816         (b) If the bureau changes its calendar base year, appropriate adjustments are to be made
            74817     in this chapter to accommodate those changes.

            74818         (3) (a) For purposes of computing the most recent fiscal year's population, the
            74819     Governor's Office of Planning and Budget shall convert the April 1 decennial census estimate to
            74820     a July 1 estimate, unless otherwise estimated by the Bureau of Census.
            74821         (b) If the bureau changes the state's July 1, 1983 base year population after it conducts
            74822     the 1990 Census, appropriate adjustments shall be made in this chapter to accommodate those
            74823     changes.
            74824         Section 1659. Section 63J-3-203 , which is renumbered from Section 63-38c-203 is
            74825     renumbered and amended to read:
            74826          [63-38c-203].     63J-3-203. Program and service adjustments to the
            74827      limitation -- Funding level.
            74828         (1) If the state transfers partial or total responsibility of a program or service to another
            74829     unit of government, the appropriations limitations shall be decreased by the amount of the
            74830     transfer.
            74831         (2) If the state accepts partial or total responsibility for a program or service from
            74832     another unit of government, the appropriations limit shall be increased by the amount of the
            74833     transfer.
            74834         (3) If funding exempted under this chapter for a program or service administered by the
            74835     state is reduced or eliminated and the Legislature elects to fund the program or service with tax
            74836     revenue, the appropriations limitations shall be increased by the amount the Legislature elects to
            74837     fund.
            74838         (4) If the state transfers the funding source of a program or service from taxes to user
            74839     charges or other exempted revenue sources specified in this chapter, the maximum allowable
            74840     appropriations limitations shall be decreased by the amount of the transfer.
            74841         (5) If the Legislature transfers the funding source of a program or service from user
            74842     charges or other exempted revenue sources as specified in this chapter to tax revenues,
            74843     appropriations limitations shall be increased by the amount of the transfer.
            74844         (6) If the state transfers revenues from sources exempt under this chapter to funds
            74845     containing revenues from nonexempt sources, the revenues transferred shall be part of and

            74846     subject to the appropriations limits of this chapter.
            74847         Section 1660. Section 63J-3-204 , which is renumbered from Section 63-38c-204 is
            74848     renumbered and amended to read:
            74849          [63-38c-204].     63J-3-204. Exceptions to limitation -- Fiscal emergency --
            74850      Requirements -- Limits modified or exceeded by vote of the people.
            74851         (1) (a) The limits as provided in this chapter may be exceeded if a fiscal emergency is
            74852     declared.
            74853         (b) A fiscal emergency for the state shall be declared by the governor and confirmed by
            74854     more than two-thirds of both houses of the Legislature.
            74855         (2) (a) Funding for fiscal emergencies may not be included in the appropriations base
            74856     for computing the maximum allowable appropriations in subsequent years.
            74857         (b) Fiscal emergency appropriations shall remain separate from appropriations subject
            74858     to limits imposed by this chapter and shall be assigned expiration dates.
            74859         (3) Any limit in this chapter may be exceeded or modified by a majority vote of the
            74860     people in a statewide election.
            74861         Section 1661. Section 63J-3-205 , which is renumbered from Section 63-38c-205 is
            74862     renumbered and amended to read:
            74863          [63-38c-205].     63J-3-205. Monies excluded from the limitation.
            74864         Monies from the following sources are excluded from the revenues appropriated and
            74865     used in determining a limitation:
            74866         (1) monies received from the government of the United States including federal mineral
            74867     lease payments;
            74868         (2) monies received by the state from another unit of government, except the proceeds
            74869     of taxes, fees, or penalties imposed by the state and collected by the other unit of government;
            74870         (3) monies derived from the issuance of, or to pay interest, principal, or redemption
            74871     premiums on, any security;
            74872         (4) monies received from the sale of fixed assets or gains on fixed asset transfers;
            74873         (5) the proceeds of contracts, grants, gifts, donations, and bequests made to the state

            74874     for a purpose specified by the contractor or donor;
            74875         (6) user charges derived by the state from the sale of a product or service pledged or
            74876     legally available to repay any security or for which the quantity of the product or level of service
            74877     provided to a user is at the discretion of the user; and
            74878         (7) monies raised to meet fiscal emergencies.
            74879         Section 1662. Section 63J-3-301 , which is renumbered from Section 63-38c-301 is
            74880     renumbered and amended to read:
            74881     
Part 3. State Auditor's Responsibilities

            74882          [63-38c-301].     63J-3-301. State auditor's responsibilities with respect to the
            74883      limitation -- Correction of deficiencies.
            74884         The state auditor shall notify the state through the appropriate officer or officers of
            74885     necessary corrective action if upon audit or examination of the results of an independent audit
            74886     or a budget document of the state, the state auditor determines that:
            74887         (1) funds have been improperly accounted or budgeted for in order to avoid the
            74888     limitations imposed by this chapter;
            74889         (2) funds have been improperly exempted from the limitations as provided in this
            74890     chapter;
            74891         (3) general government functions have been improperly financed by user or service
            74892     charges; or
            74893         (4) the limitations imposed by this chapter have been exceeded.
            74894         Section 1663. Section 63J-3-401 , which is renumbered from Section 63-38c-401 is
            74895     renumbered and amended to read:
            74896     
Part 4. Property Tax Limitation

            74897          [63-38c-401].     63J-3-401. State mandated property tax limitation -- Vote
            74898      requirement needed to exceed limitation.
            74899         The state mandated property tax rate in Title 53A, Chapter 17a, Minimum School
            74900     Program Act, as of July 1, 1989, may not be increased without more than a two-thirds vote of
            74901     both houses of the Legislature.

            74902         Section 1664. Section 63J-3-402 , which is renumbered from Section 63-38c-402 is
            74903     renumbered and amended to read:
            74904          [63-38c-402].     63J-3-402. Debt limitation -- Vote requirement needed to
            74905      exceed limitation -- Exceptions.
            74906         (1) (a) Except as provided in Subsection (1)(b), the outstanding general obligation debt
            74907     of the state may not exceed 45% of the maximum allowable appropriations limit unless
            74908     approved by more than a two-thirds vote of both houses of the Legislature.
            74909         (b) Notwithstanding the limitation contained in Subsection (1)(a), debt issued under the
            74910     authority of the following parts or sections is not subject to the debt limitation established by
            74911     this section:
            74912         (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond Authorization;
            74913         (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note Authorization;
            74914         (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond
            74915     Authorization;
            74916         (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note Authorization;
            74917         (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond
            74918     Authorization;
            74919         (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note Authorization;
            74920         (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond;
            74921         (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation Bond;
            74922         (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond Anticipation
            74923     Notes;
            74924         (x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation Bond for Salt
            74925     Lake County;
            74926         (xi) Title 63B, Chapter 11, Part 6, 2002 Highway General Obligation Bond Anticipation
            74927     Notes for Salt Lake County Authorization;
            74928         (xii) Section 63B-13-102 ;
            74929         (xiii) Section 63B-16-101 ; and

            74930         (xiv) Section 63B-16-102 .
            74931         (2) This section does not apply if contractual rights will be impaired.
            74932         Section 1665. Section 63J-4-101 , which is renumbered from Section 63-38d-101 is
            74933     renumbered and amended to read:
            74934     
CHAPTER 4. GOVERNOR'S OFFICE OF PLANNING AND BUDGET

            74935     
Part 1. General Provisions

            74936          [63-38d-101].     63J-4-101. Title.
            74937         This chapter is known as the "Governor's Office of Planning and Budget."
            74938         Section 1666. Section 63J-4-102 , which is renumbered from Section 63-38d-102 is
            74939     renumbered and amended to read:
            74940          [63-38d-102].     63J-4-102. Definitions.
            74941         As used in this chapter:
            74942         (1) "Committee" means the Resource Development Coordinating Committee created by
            74943     this chapter.
            74944         (2) "Director" means the chief administrative officer of the Governor's Office of
            74945     Planning and Budget appointed as provided in this chapter.
            74946         (3) "Office" means the Governor's Office of Planning and Budget created by this
            74947     chapter.
            74948         (4) "Political subdivision" means a county, municipality, local district, special service
            74949     district, school district, interlocal cooperation agreement entity, or any administrative subunit of
            74950     them.
            74951         (5) "State planning coordinator" means the person appointed as planning coordinator as
            74952     provided in this chapter.
            74953         Section 1667. Section 63J-4-201 , which is renumbered from Section 63-38d-201 is
            74954     renumbered and amended to read:
            74955     
Part 2. Creation - Appointments

            74956          [63-38d-201].     63J-4-201. Creation.
            74957         There is created within the governor's office the Governor's Office of Planning and

            74958     Budget to be administered by a director.
            74959         Section 1668. Section 63J-4-202 , which is renumbered from Section 63-38d-202 is
            74960     renumbered and amended to read:
            74961          [63-38d-202].     63J-4-202. Appointment of director, state planning
            74962      coordinator.
            74963         (1) (a) The governor shall appoint, to serve at the governor's pleasure:
            74964         (i) a director of the Governor's Office of Planning and Budget; and
            74965         (ii) a state planning coordinator.
            74966         (b) The state planning coordinator is considered part of the office for purposes of
            74967     administration.
            74968         (2) The governor shall establish the director's salary within the salary range fixed by the
            74969     Legislature in Title 67, Chapter 22, State Officer Compensation.
            74970         Section 1669. Section 63J-4-301 , which is renumbered from Section 63-38d-301 is
            74971     renumbered and amended to read:
            74972     
Part 3. Budget Duties

            74973          [63-38d-301].     63J-4-301. Budget duties of the director and office.
            74974         (1) The director and the office shall:
            74975         (a) comply with the procedures and requirements of [Title 63, Chapter 38] Title 63J,
            74976     Chapter 1, Budgetary Procedures Act;
            74977         (b) under the direct supervision of the governor, assist the governor in the preparation
            74978     of the governor's budget recommendations;
            74979         (c) advise the governor with regard to approval or revision of agency work programs as
            74980     specified in Section [ 63-38-11 ] 63J-1-406 ; and
            74981         (d) perform other duties and responsibilities as assigned by the governor.
            74982         (2) (a) The director of the Governor's Office of Planning and Budget or the director's
            74983     designee is the Federal Assistance Management Officer.
            74984         (b) In acting as the Federal Assistance Management Officer, the director or designee
            74985     shall:

            74986         (i) study the administration and effect of federal assistance programs in the state and
            74987     advise the governor and the Legislature, through the Office of Legislative Fiscal Analyst and the
            74988     Executive Appropriations Committee, of alternative recommended methods and procedures for
            74989     the administration of these programs;
            74990         (ii) assist in the coordination of federal assistance programs that involve or are
            74991     administered by more than one state agency; and
            74992         (iii) analyze and advise on applications for new federal assistance programs submitted to
            74993     the governor for approval as required by Chapter 38e, Federal Funds Procedures.
            74994         Section 1670. Section 63J-4-401 , which is renumbered from Section 63-38d-401 is
            74995     renumbered and amended to read:
            74996     
Part 4. Planning

            74997          [63-38d-401].     63J-4-401. Planning duties of the planning coordinator and
            74998      office.
            74999         (1) The state planning coordinator shall:
            75000         (a) act as the governor's adviser on state, regional, metropolitan, and local
            75001     governmental planning matters relating to public improvements and land use;
            75002         (b) counsel with the authorized representatives of the Department of Transportation,
            75003     the State Building Board, the Department of Health, the Department of Workforce Services, the
            75004     Labor Commission, the Department of Natural Resources, the School and Institutional Trust
            75005     Lands Administration, and other proper persons concerning all state planning matters;
            75006         (c) when designated to do so by the governor, receive funds made available to Utah by
            75007     the federal government;
            75008         (d) receive and review plans of the various state agencies and political subdivisions
            75009     relating to public improvements and programs;
            75010         (e) when conflicts occur between the plans and proposals of state agencies, prepare
            75011     specific recommendations for the resolution of the conflicts and submit the recommendations to
            75012     the governor for a decision resolving the conflict;
            75013         (f) when conflicts occur between the plans and proposals of a state agency and a

            75014     political subdivision or between two or more political subdivisions, advise these entities of the
            75015     conflict and make specific recommendations for the resolution of the conflict;
            75016         (g) act as the governor's planning agent in planning public improvements and land use
            75017     and, in this capacity, undertake special studies and investigations;
            75018         (h) provide information and cooperate with the Legislature or any of its committees in
            75019     conducting planning studies;
            75020         (i) cooperate and exchange information with federal agencies and local, metropolitan,
            75021     or regional agencies as necessary to assist with federal, state, regional, metropolitan, and local
            75022     programs; and
            75023         (j) make recommendations to the governor that the planning coordinator considers
            75024     advisable for the proper development and coordination of plans for state government and
            75025     political subdivisions.
            75026         (2) The state planning coordinator may:
            75027         (a) perform regional and state planning and assist state government planning agencies in
            75028     performing state planning;
            75029         (b) provide planning assistance to Indian tribes regarding planning for Indian
            75030     reservations; and
            75031         (c) assist city, county, metropolitan, and regional planning agencies in performing local,
            75032     metropolitan, and regional planning, provided that the state planning coordinator and [his] the
            75033     state planning coordinator's agents and designees recognize and promote the plans, policies,
            75034     programs, processes, and desired outcomes of each planning agency whenever possible.
            75035         (3) When preparing or assisting in the preparation of plans, policies, programs, or
            75036     processes related to the management or use of federal lands or natural resources on federal
            75037     lands in Utah, the state planning coordinator shall:
            75038         (a) incorporate the plans, policies, programs, processes, and desired outcomes of the
            75039     counties where the federal lands or natural resources are located, to the maximum extent
            75040     consistent with state and federal law, provided that this requirement shall not be interpreted to
            75041     infringe upon the authority of the governor;

            75042         (b) identify inconsistencies or conflicts between the plans, policies, programs,
            75043     processes, and desired outcomes prepared under Subsection (3)(a) and the plans, programs,
            75044     processes, and desired outcomes of local government as early in the preparation process as
            75045     possible, and seek resolution of the inconsistencies through meetings or other conflict resolution
            75046     mechanisms involving the necessary and immediate parties to the inconsistency or conflict;
            75047         (c) present to the governor the nature and scope of any inconsistency or other conflict
            75048     that is not resolved under the procedures in Subsection (3)(b) for the governor's decision about
            75049     the position of the state concerning the inconsistency or conflict;
            75050         (d) develop, research, and use factual information, legal analysis, and statements of
            75051     desired future condition for the state, or subregion of the state, as necessary to support the
            75052     plans, policies, programs, processes, and desired outcomes of the state and the counties where
            75053     the federal lands or natural resources are located;
            75054         (e) establish and coordinate agreements between the state and federal land management
            75055     agencies, federal natural resource management agencies, and federal natural resource regulatory
            75056     agencies to facilitate state and local participation in the development, revision, and
            75057     implementation of land use plans, guidelines, regulations, other instructional memoranda, or
            75058     similar documents proposed or promulgated for lands and natural resources administered by
            75059     federal agencies; and
            75060         (f) work in conjunction with political subdivisions to establish agreements with federal
            75061     land management agencies, federal natural resource management agencies, and federal natural
            75062     resource regulatory agencies to provide a process for state and local participation in the
            75063     preparation of, or coordinated state and local response to, environmental impact analysis
            75064     documents and similar documents prepared pursuant to law by state or federal agencies.
            75065         (4) The state planning coordinator shall comply with the requirements of Subsection
            75066      63C-4-102 (7) before submitting any comments on a draft environmental impact statement or on
            75067     an environmental assessment for a proposed land management plan.
            75068         (5) The state planning coordinator shall cooperate with and work in conjunction with
            75069     appropriate state agencies and political subdivisions to develop policies, plans, programs,

            75070     processes, and desired outcomes authorized by this section by coordinating the development of
            75071     positions:
            75072         (a) through the Resource Development Coordinating Committee;
            75073         (b) in conjunction with local government officials concerning general local government
            75074     plans;
            75075         (c) by soliciting public comment through the Resource Development Coordinating
            75076     Committee; and
            75077         (d) by working with the Public Lands Policy Coordinating Office.
            75078         (6) The state planning coordinator shall recognize and promote the following principles
            75079     when preparing any policies, plans, programs, processes, or desired outcomes relating to federal
            75080     lands and natural resources on federal lands pursuant to this section:
            75081         (a) (i) the citizens of the state are best served by applying multiple-use and
            75082     sustained-yield principles in public land use planning and management; and
            75083         (ii) multiple-use and sustained-yield management means that federal agencies should
            75084     develop and implement management plans and make other resource-use decisions that:
            75085         (A) achieve and maintain in perpetuity a high-level annual or regular periodic output of
            75086     mineral and various renewable resources from public lands;
            75087         (B) support valid existing transportation, mineral, and grazing privileges at the highest
            75088     reasonably sustainable levels;
            75089         (C) support the specific plans, programs, processes, and policies of state agencies and
            75090     local governments;
            75091         (D) are designed to produce and provide the desired vegetation for the watersheds,
            75092     timber, food, fiber, livestock forage, and wildlife forage, and minerals that are necessary to meet
            75093     present needs and future economic growth and community expansion without permanent
            75094     impairment of the productivity of the land;
            75095         (E) meet the recreational needs and the personal and business-related transportation
            75096     needs of the citizens of the state by providing access throughout the state;
            75097         (F) meet the recreational needs of the citizens of the state;

            75098         (G) meet the needs of wildlife;
            75099         (H) provide for the preservation of cultural resources, both historical and
            75100     archaeological;
            75101         (I) meet the needs of economic development;
            75102         (J) meet the needs of community development; and
            75103         (K) provide for the protection of water rights;
            75104         (b) managing public lands for "wilderness characteristics" circumvents the statutory
            75105     wilderness process and is inconsistent with the multiple-use and sustained-yield management
            75106     standard that applies to all Bureau of Land Management and U.S. Forest Service lands that are
            75107     not wilderness areas or wilderness study areas;
            75108         (c) all waters of the state are:
            75109         (i) owned exclusively by the state in trust for its citizens;
            75110         (ii) are subject to appropriation for beneficial use; and
            75111         (iii) are essential to the future prosperity of the state and the quality of life within the
            75112     state;
            75113         (d) the state has the right to develop and use its entitlement to interstate rivers;
            75114         (e) all water rights desired by the federal government must be obtained through the
            75115     state water appropriation system;
            75116         (f) land management and resource-use decisions which affect federal lands should give
            75117     priority to and support the purposes of the compact between the state and the United States
            75118     related to school and institutional trust lands;
            75119         (g) development of the solid, fluid, and gaseous mineral resources of the state is an
            75120     important part of the economy of the state, and of local regions within the state;
            75121         (h) the state should foster and support industries that take advantage of the state's
            75122     outstanding opportunities for outdoor recreation;
            75123         (i) wildlife constitutes an important resource and provides recreational and economic
            75124     opportunities for the state's citizens;
            75125         (j) proper stewardship of the land and natural resources is necessary to ensure the

            75126     health of the watersheds, timber, forage, and wildlife resources to provide for a continuous
            75127     supply of resources for the people of the state and the people of the local communities who
            75128     depend on these resources for a sustainable economy;
            75129         (k) forests, rangelands, timber, and other vegetative resources:
            75130         (i) provide forage for livestock;
            75131         (ii) provide forage and habitat for wildlife;
            75132         (iii) provide resources for the state's timber and logging industries;
            75133         (iv) contribute to the state's economic stability and growth; and
            75134         (v) are important for a wide variety of recreational pursuits;
            75135         (l) management programs and initiatives that improve watersheds, forests, and increase
            75136     forage for the mutual benefit of wildlife species and livestock, logging, and other agricultural
            75137     industries by utilizing proven techniques and tools are vital to the state's economy and the
            75138     quality of life in Utah; and
            75139         (m) (i) land management plans, programs, and initiatives should provide that the
            75140     amount of domestic livestock forage, expressed in animal unit months, for permitted, active use
            75141     as well as the wildlife forage included in that amount, be no less than the maximum number of
            75142     animal unit months sustainable by range conditions in grazing allotments and districts, based on
            75143     an on-the-ground and scientific analysis;
            75144         (ii) the state opposes the relinquishment or retirement of grazing animal unit months in
            75145     favor of conservation, wildlife, and other uses;
            75146         (iii) (A) the state favors the best management practices that are jointly sponsored by
            75147     cattlemen's, sportsmen's, and wildlife management groups such as chaining, logging, seeding,
            75148     burning, and other direct soil and vegetation prescriptions that are demonstrated to restore
            75149     forest and rangeland health, increase forage, and improve watersheds in grazing districts and
            75150     allotments for the mutual benefit of domestic livestock and wildlife;
            75151         (B) when practices described in Subsection (6)(m)(iii)(A) increase a grazing allotment's
            75152     forage beyond the total permitted forage use that was allocated to that allotment in the last
            75153     federal land use plan or allotment management plan still in existence as of January 1, 2005, a

            75154     reasonable and fair portion of the increase in forage beyond the previously allocated total
            75155     permitted use should be allocated to wildlife as recommended by a joint, evenly balanced
            75156     committee of livestock and wildlife representatives that is appointed and constituted by the
            75157     governor for that purpose;
            75158         (C) the state favors quickly and effectively adjusting wildlife population goals and
            75159     population census numbers in response to variations in the amount of available forage caused by
            75160     drought or other climatic adjustments, and state agencies responsible for managing wildlife
            75161     population goals and population census numbers will give due regard to both the needs of the
            75162     livestock industry and the need to prevent the decline of species to a point where listing under
            75163     the terms of the Endangered Species Act when making such adjustments;
            75164         (iv) the state opposes the transfer of grazing animal unit months to wildlife for
            75165     supposed reasons of rangeland health;
            75166         (v) reductions in domestic livestock animal unit months must be temporary and
            75167     scientifically based upon rangeland conditions;
            75168         (vi) policies, plans, programs, initiatives, resource management plans, and forest plans
            75169     may not allow the placement of grazing animal unit months in a suspended use category unless
            75170     there is a rational and scientific determination that the condition of the rangeland allotment or
            75171     district in question will not sustain the animal unit months sought to be placed in suspended use;
            75172         (vii) any grazing animal unit months that are placed in a suspended use category should
            75173     be returned to active use when range conditions improve;
            75174         (viii) policies, plans, programs, and initiatives related to vegetation management should
            75175     recognize and uphold the preference for domestic grazing over alternate forage uses in
            75176     established grazing districts while upholding management practices that optimize and expand
            75177     forage for grazing and wildlife in conjunction with state wildlife management plans and
            75178     programs in order to provide maximum available forage for all uses; and
            75179         (ix) in established grazing districts, animal unit months that have been reduced due to
            75180     rangeland health concerns should be restored to livestock when rangeland conditions improve,
            75181     and should not be converted to wildlife use.

            75182         (7) The state planning coordinator shall recognize and promote the following findings in
            75183     the preparation of any policies, plans, programs, processes, or desired outcomes relating to
            75184     federal lands and natural resources on federal lands under this section:
            75185         (a) as a coholder of R.S. 2477 rights-of-way with the counties, the state supports its
            75186     recognition by the federal government and the public use of R.S. 2477 rights-of-way and urges
            75187     the federal government to fully recognize the rights-of-way and their use by the public as
            75188     expeditiously as possible;
            75189         (b) it is the policy of the state to use reasonable administrative and legal measures to
            75190     protect and preserve valid existing rights-of-way granted by Congress under R.S. 2477, and to
            75191     support and work in conjunction with counties to redress cases where R.S. 2477 rights-of-way
            75192     are not recognized or are impaired; and
            75193         (c) transportation and access routes to and across federal lands, including all
            75194     rights-of-way vested under R.S. 2477, are vital to the state's economy and to the quality of life
            75195     in the state, and must provide, at a minimum, a network of roads throughout the resource
            75196     planning area that provides for:
            75197         (i) movement of people, goods, and services across public lands;
            75198         (ii) reasonable access to a broad range of resources and opportunities throughout the
            75199     resource planning area, including:
            75200         (A) livestock operations and improvements;
            75201         (B) solid, fluid, and gaseous mineral operations;
            75202         (C) recreational opportunities and operations, including motorized and nonmotorized
            75203     recreation;
            75204         (D) search and rescue needs;
            75205         (E) public safety needs; and
            75206         (F) access for transportation of wood products to market;
            75207         (iii) access to federal lands for people with disabilities and the elderly; and
            75208         (iv) access to state lands and school and institutional trust lands to accomplish the
            75209     purposes of those lands.

            75210         (8) The state planning coordinator shall recognize and promote the following findings in
            75211     the preparation of any plans, policies, programs, processes, or desired outcomes relating to
            75212     federal lands and natural resources on federal lands pursuant to this section:
            75213         (a) the state's support for the addition of a river segment to the National Wild and
            75214     Scenic Rivers System, 16 U.S.C. Sec. 1271 et seq., will be withheld until:
            75215         (i) it is clearly demonstrated that water is present and flowing at all times;
            75216         (ii) it is clearly demonstrated that the required water-related value is considered
            75217     outstandingly remarkable within a region of comparison consisting of one of the three
            75218     physiographic provinces in the state, and that the rationale and justification for the conclusions
            75219     are disclosed;
            75220         (iii) it is clearly demonstrated that the inclusion of each river segment is consistent with
            75221     the plans and policies of the state and the county or counties where the river segment is located
            75222     as those plans and policies are developed according to Subsection (3);
            75223         (iv) the effects of the addition upon the local and state economies, agricultural and
            75224     industrial operations and interests, outdoor recreation, water rights, water quality, water
            75225     resource planning, and access to and across river corridors in both upstream and downstream
            75226     directions from the proposed river segment have been evaluated in detail by the relevant federal
            75227     agency;
            75228         (v) it is clearly demonstrated that the provisions and terms of the process for review of
            75229     potential additions have been applied in a consistent manner by all federal agencies;
            75230         (vi) the rationale and justification for the proposed addition, including a comparison
            75231     with protections offered by other management tools, is clearly analyzed within the multiple-use
            75232     mandate, and the results disclosed;
            75233         (vii) it is clearly demonstrated that the federal agency with management authority over
            75234     the river segment, and which is proposing the segment for inclusion in the National Wild and
            75235     Scenic River System will not use the actual or proposed designation as a basis to impose
            75236     management standards outside of the federal land management plan;
            75237         (viii) it is clearly demonstrated that the terms and conditions of the federal land and

            75238     resource management plan containing a recommendation for inclusion in the National Wild and
            75239     Scenic River System:
            75240         (A) evaluates all eligible river segments in the resource planning area completely and
            75241     fully for suitability for inclusion in the National Wild and Scenic River System;
            75242         (B) does not suspend or terminate any studies for inclusion in the National Wild and
            75243     Scenic River System at the eligibility phase;
            75244         (C) fully disclaims any interest in water rights for the recommended segment as a result
            75245     of the adoption of the plan; and
            75246         (D) fully disclaims the use of the recommendation for inclusion in the National Wild and
            75247     Scenic River System as a reason or rationale for an evaluation of impacts by proposals for
            75248     projects upstream, downstream, or within the recommended segment;
            75249         (ix) it is clearly demonstrated that the agency with management authority over the river
            75250     segment commits not to use an actual or proposed designation as a basis to impose Visual
            75251     Resource Management Class I or II management prescriptions that do not comply with the
            75252     provisions of Subsection (8)(t); and
            75253         (x) it is clearly demonstrated that including the river segment and the terms and
            75254     conditions for managing the river segment as part of the National Wild and Scenic River System
            75255     will not prevent, reduce, impair, or otherwise interfere with:
            75256         (A) the state and its citizens' enjoyment of complete and exclusive water rights in and to
            75257     the rivers of the state as determined by the laws of the state; or
            75258         (B) local, state, regional, or interstate water compacts to which the state or any county
            75259     is a party;
            75260         (b) the conclusions of all studies related to potential additions to the National Wild and
            75261     Scenic River System, 16 U.S.C. Sec. 1271 et seq., are submitted to the state for review and
            75262     action by the Legislature and governor, and the results, in support of or in opposition to, are
            75263     included in any planning documents or other proposals for addition and are forwarded to the
            75264     United States Congress;
            75265         (c) the state's support for designation of an Area of Critical Environmental Concern

            75266     (ACEC), as defined in 43 U.S.C. Sec. 1702, within federal land management plans will be
            75267     withheld until:
            75268         (i) it is clearly demonstrated that the proposed area satisfies all the definitional
            75269     requirements of the Federal Land Policy and Management Act of 1976, 43 U.S.C. Sec. 1702(a);
            75270         (ii) it is clearly demonstrated that the area proposed for designation as an ACEC is
            75271     limited in geographic size and that the proposed management prescriptions are limited in scope
            75272     to the minimum necessary to specifically protect and prevent irreparable damage to the relevant
            75273     and important values identified, or limited in geographic size and management prescriptions to
            75274     the minimum required to specifically protect human life or safety from natural hazards;
            75275         (iii) it is clearly demonstrated that the proposed area is limited only to areas that are
            75276     already developed or used or to areas where no development is required;
            75277         (iv) it is clearly demonstrated that the proposed area contains relevant and important
            75278     historic, cultural or scenic values, fish or wildlife resources, or natural processes which are
            75279     unique or substantially significant on a regional basis, or contain natural hazards which
            75280     significantly threaten human life or safety;
            75281         (v) the federal agency has analyzed regional values, resources, processes, or hazards for
            75282     irreparable damage and its potential causes resulting from potential actions which are consistent
            75283     with the multiple-use, sustained-yield principles, and the analysis describes the rationale for any
            75284     special management attention required to protect, or prevent irreparable damage to the values,
            75285     resources, processes, or hazards;
            75286         (vi) it is clearly demonstrated that the proposed designation is consistent with the plans
            75287     and policies of the state and of the county where the proposed designation is located as those
            75288     plans and policies are developed according to Subsection (3);
            75289         (vii) it is clearly demonstrated that the proposed ACEC designation will not be applied
            75290     redundantly over existing protections provided by other state and federal laws for federal lands
            75291     or resources on federal lands, and that the federal statutory requirement for special management
            75292     attention for a proposed ACEC will discuss and justify any management requirements needed in
            75293     addition to those specified by the other state and federal laws;

            75294         (viii) the difference between special management attention required for an ACEC and
            75295     normal multiple-use management has been identified and justified, and that any determination of
            75296     irreparable damage has been analyzed and justified for short and long-term horizons;
            75297         (ix) it is clearly demonstrated that the proposed designation:
            75298         (A) is not a substitute for a wilderness suitability recommendation;
            75299         (B) is not a substitute for managing areas inventoried for wilderness characteristics after
            75300     1993 under the BLM interim management plan for valid wilderness study areas; and
            75301         (C) it is not an excuse or justification to apply de facto wilderness management
            75302     standards; and
            75303         (x) the conclusions of all studies are submitted to the state, as a cooperating agency, for
            75304     review, and the results, in support of or in opposition to, are included in all planning documents;
            75305         (d) sufficient federal lands are made available for government-to-government exchanges
            75306     of school and institutional trust lands and federal lands without regard for a
            75307     resource-to-resource correspondence between the surface or mineral characteristics of the
            75308     offered trust lands and the offered federal lands;
            75309         (e) federal agencies should support government-to-government exchanges of land with
            75310     the state based on a fair process of valuation which meets the fiduciary obligations of both the
            75311     state and federal governments toward trust lands management, and which assures that revenue
            75312     authorized by federal statute to the state from mineral or timber production, present or future, is
            75313     not diminished in any manner during valuation, negotiation, or implementation processes;
            75314         (f) agricultural and grazing lands should continue to produce the food and fiber needed
            75315     by the citizens of the state and the nation, and the rural character and open landscape of rural
            75316     Utah should be preserved through a healthy and active agricultural and grazing industry,
            75317     consistent with private property rights and state fiduciary duties;
            75318         (g) the resources of the forests and rangelands of the state should be integrated as part
            75319     of viable, robust, and sustainable state and local economies, and available forage should be
            75320     evaluated for the full complement of herbivores the rangelands can support in a sustainable
            75321     manner, and forests should contain a diversity of timber species, and disease or insect

            75322     infestations in forests should be controlled using logging or other best management practices;
            75323         (h) the state opposes any additional evaluation of national forest service lands as
            75324     "roadless" or "unroaded" beyond the forest service's second roadless area review evaluation and
            75325     opposes efforts by agencies to specially manage those areas in a way that:
            75326         (i) closes or declassifies existing roads unless multiple side by side roads exist running
            75327     to the same destination and state and local governments consent to close or declassify the extra
            75328     roads;
            75329         (ii) permanently bars travel on existing roads;
            75330         (iii) excludes or diminishes traditional multiple-use activities, including grazing and
            75331     proper forest harvesting;
            75332         (iv) interferes with the enjoyment and use of valid, existing rights, including water
            75333     rights, local transportation plan rights, R.S. 2477 rights, grazing allotment rights, and mineral
            75334     leasing rights; or
            75335         (v) prohibits development of additional roads reasonably necessary to pursue traditional
            75336     multiple-use activities;
            75337         (i) the state's support for any forest plan revision or amendment will be withheld until
            75338     the appropriate plan revision or plan amendment clearly demonstrates that:
            75339         (i) established roads are not referred to as unclassified roads or a similar classification;
            75340         (ii) lands in the vicinity of established roads are managed under the multiple-use,
            75341     sustained-yield management standard; and
            75342         (iii) no roadless or unroaded evaluations or inventories are recognized or upheld beyond
            75343     those that were recognized or upheld in the forest service's second roadless area review
            75344     evaluation;
            75345         (j) the state's support for any recommendations made under the statutory requirement to
            75346     examine the wilderness option during the revision of land and resource management plans by
            75347     the U.S. Forest Service will be withheld until it is clearly demonstrated that:
            75348         (i) the duly adopted transportation plans of the state and county or counties within the
            75349     planning area are fully and completely incorporated into the baseline inventory of information

            75350     from which plan provisions are derived;
            75351         (ii) valid state or local roads and rights-of-way are recognized and not impaired in any
            75352     way by the recommendations;
            75353         (iii) the development of mineral resources by underground mining is not affected by the
            75354     recommendations;
            75355         (iv) the need for additional administrative or public roads necessary for the full use of
            75356     the various multiple-uses, including recreation, mineral exploration and development, forest
            75357     health activities, and grazing operations is not unduly affected by the recommendations;
            75358         (v) analysis and full disclosure is made concerning the balance of multiple-use
            75359     management in the proposed areas, and that the analysis compares the full benefit of
            75360     multiple-use management to the recreational, forest health, and economic needs of the state and
            75361     the counties to the benefits of the requirements of wilderness management; and
            75362         (vi) the conclusions of all studies related to the requirement to examine the wilderness
            75363     option are submitted to the state for review and action by the Legislature and governor, and the
            75364     results, in support of or in opposition to, are included in any planning documents or other
            75365     proposals that are forwarded to the United States Congress;
            75366         (k) the invasion of noxious weeds and undesirable invasive plant species into the state
            75367     should be reversed, their presence eliminated, and their return prevented;
            75368         (l) management and resource-use decisions by federal land management and regulatory
            75369     agencies concerning the vegetative resources within the state should reflect serious
            75370     consideration of the proper optimization of the yield of water within the watersheds of the state;
            75371         (m) (i) it is the policy of the state that:
            75372         (A) mineral and energy production and environmental protection are not mutually
            75373     exclusive;
            75374         (B) it is technically feasible to permit appropriate access to mineral and energy
            75375     resources while preserving nonmineral and nonenergy resources;
            75376         (C) resource management planning should seriously consider all available mineral and
            75377     energy resources;

            75378         (D) the development of the solid, fluid, and gaseous mineral resources of the state and
            75379     the renewable resources of the state should be encouraged;
            75380         (E) the waste of fluid and gaseous minerals within developed areas should be
            75381     prohibited; and
            75382         (F) requirements to mitigate or reclaim mineral development projects should be based
            75383     on credible evidence of significant impacts to natural or cultural resources;
            75384         (ii) the state's support for mineral development provisions within federal land
            75385     management plans will be withheld until the appropriate land management plan environmental
            75386     impact statement clearly demonstrates:
            75387         (A) that the authorized planning agency has:
            75388         (I) considered and evaluated the mineral and energy potential in all areas of the planning
            75389     area as if the areas were open to mineral development under standard lease agreements; and
            75390         (II) evaluated any management plan prescription for its impact on the area's baseline
            75391     mineral and energy potential;
            75392         (B) that the development provisions do not unduly restrict access to public lands for
            75393     energy exploration and development;
            75394         (C) that the authorized planning agency has supported any closure of additional areas to
            75395     mineral leasing and development or any increase of acres subject to no surface occupancy
            75396     restrictions by adhering to:
            75397         (I) the relevant provisions of the Federal Land Policy and Management Act of 1976, 43
            75398     U.S.C. Sec. 1701 et seq.;
            75399         (II) other controlling mineral development laws; and
            75400         (III) the controlling withdrawal and reporting procedures set forth in the Federal Land
            75401     Policy and Management Act of 1976, 43 U.S.C. Sec. 1701 et seq.;
            75402         (D) that the authorized planning agency evaluated whether to repeal any moratorium
            75403     that may exist on the issuance of additional mining patents and oil and gas leases;
            75404         (E) that the authorized planning agency analyzed all proposed mineral lease stipulations
            75405     and considered adopting the least restrictive necessary to protect against damage to other

            75406     significant resource values;
            75407         (F) that the authorized planning agency evaluated mineral lease restrictions to determine
            75408     whether to waive, modify, or make exceptions to the restrictions on the basis that they are no
            75409     longer necessary or effective;
            75410         (G) that the authorized federal agency analyzed all areas proposed for no surface
            75411     occupancy restrictions, and that the analysis evaluated:
            75412         (I) whether directional drilling is economically feasible and ecologically necessary for
            75413     each proposed no surface occupancy area;
            75414         (II) whether the directional drilling feasibility analysis, or analysis of other management
            75415     prescriptions, demonstrates that the proposed no surface occupancy prescription, in effect,
            75416     sterilizes the mineral and energy resources beneath the area; and
            75417         (III) whether, if the minerals are effectively sterilized, the area must be reported as
            75418     withdrawn under the provisions of the Federal Land Policy and Management Act; and
            75419         (H) that the authorized planning agency has evaluated all directional drilling
            75420     requirements in no surface occupancy areas to determine whether directional drilling is feasible
            75421     from an economic, ecological, and engineering standpoint;
            75422         (n) motorized, human, and animal-powered outdoor recreation should be integrated
            75423     into a fair and balanced allocation of resources within the historical and cultural framework of
            75424     multiple-uses in rural Utah, and outdoor recreation should be supported as part of a balanced
            75425     plan of state and local economic support and growth;
            75426         (o) off-highway vehicles should be used responsibly, the management of off-highway
            75427     vehicles should be uniform across all jurisdictions, and laws related to the use of off-highway
            75428     vehicles should be uniformly applied across all jurisdictions;
            75429         (p) (i) rights-of-way granted and vested under the provisions of R.S. 2477 should be
            75430     preserved and acknowledged;
            75431         (ii) land use management plans, programs, and initiatives should be consistent with both
            75432     state and county transportation plans developed according to Subsection (3) in order to provide
            75433     a network of roads throughout the planning area that provides for:

            75434         (A) movement of people, goods, and services across public lands;
            75435         (B) reasonable access to a broad range of resources and opportunities throughout the
            75436     planning area, including access to livestock, water, and minerals;
            75437         (C) economic and business needs;
            75438         (D) public safety;
            75439         (E) search and rescue;
            75440         (F) access for people with disabilities and the elderly;
            75441         (G) access to state lands; and
            75442         (H) recreational opportunities;
            75443         (q) transportation and access provisions for all other existing routes, roads, and trails
            75444     across federal, state, and school trust lands within the state should be determined and identified,
            75445     and agreements should be executed and implemented, as necessary to fully authorize and
            75446     determine responsibility for maintenance of all routes, roads, and trails;
            75447         (r) the reasonable development of new routes and trails for motorized, human, and
            75448     animal-powered recreation should be implemented;
            75449         (s) (i) forests, rangelands, and watersheds, in a healthy condition, are necessary and
            75450     beneficial for wildlife, livestock grazing, and other multiple-uses;
            75451         (ii) management programs and initiatives that are implemented to increase forage for
            75452     the mutual benefit of the agricultural industry, livestock operations, and wildlife species should
            75453     utilize all proven techniques and tools;
            75454         (iii) the continued viability of livestock operations and the livestock industry should be
            75455     supported on the federal lands within the state by management of the lands and forage
            75456     resources, by the proper optimization of animal unit months for livestock, in accordance with
            75457     the multiple-use provisions of the Federal Land Policy and Management Act of 1976, 43 U.S.C.
            75458     1701 et seq., the provisions of the Taylor Grazing Act of 1934, 43 U.S.C. 315 et seq., and the
            75459     provisions of the Public Rangelands Improvement Act of 1978, 43 U.S.C. 1901 et seq.;
            75460         (iv) provisions for predator control initiatives or programs under the direction of state
            75461     and local authorities should be implemented; and

            75462         (v) resource-use and management decisions by federal land management and regulatory
            75463     agencies should support state-sponsored initiatives or programs designed to stabilize wildlife
            75464     populations that may be experiencing a scientifically demonstrated decline in those populations;
            75465     and
            75466         (t) management and resource use decisions by federal land management and regulatory
            75467     agencies concerning the scenic resources of the state must balance the protection of scenery
            75468     with the full management requirements of the other authorized uses of the land under
            75469     multiple-use management, and should carefully consider using Visual Resource Management
            75470     Class I protection only for areas of inventoried Class A scenery or equivalent.
            75471         (9) Nothing contained in this section may be construed to restrict or supersede the
            75472     planning powers conferred upon state departments, agencies, instrumentalities, or advisory
            75473     councils of the state or the planning powers conferred upon political subdivisions by any other
            75474     existing law.
            75475         (10) Nothing in this section may be construed to affect any lands withdrawn from the
            75476     public domain for military purposes, which are administered by the United States Army, Air
            75477     Force, or Navy.
            75478         Section 1671. Section 63J-4-501 , which is renumbered from Section 63-38d-501 is
            75479     renumbered and amended to read:
            75480     
Part 5. Resource Development Coordinating Committee

            75481          [63-38d-501].     63J-4-501. Creation.
            75482         There is created the Resource Development Coordinating Committee within the
            75483     Governor's Office of Planning and Budget to:
            75484         (1) assist the state planning coordinator in fulfilling the responsibilities of reviewing and
            75485     coordinating technical and policy actions that may affect the physical resources of the state; and
            75486         (2) facilitate the exchange of information on those actions among state agencies and
            75487     other levels of government.
            75488         Section 1672. Section 63J-4-502 , which is renumbered from Section 63-38d-502 is
            75489     renumbered and amended to read:

            75490          [63-38d-502].     63J-4-502. Membership -- Terms -- Chair -- Expenses.
            75491         (1) The Resource Development Coordinating Committee shall consist of the following
            75492     25 members:
            75493         (a) the state science advisor;
            75494         (b) a representative from the Department of Agriculture and Food appointed by the
            75495     executive director;
            75496         (c) a representative from the Department of Community and Culture appointed by the
            75497     executive director;
            75498         (d) a representative from the Department of Environmental Quality appointed by the
            75499     executive director;
            75500         (e) a representative from the Department of Natural Resources appointed by the
            75501     executive director;
            75502         (f) a representative from the Department of Transportation appointed by the executive
            75503     director;
            75504         (g) a representative from the Governor's Office of Economic Development appointed by
            75505     the director;
            75506         (h) a representative from the Division of Housing and Community Development
            75507     appointed by the director;
            75508         (i) a representative from the Division of State History appointed by the director;
            75509         (j) a representative from the Division of Air Quality appointed by the director;
            75510         (k) a representative from the Division of Drinking Water appointed by the director;
            75511         (l) a representative from the Division of Environmental Response and Remediation
            75512     appointed by the director;
            75513         (m) a representative from the Division of Radiation appointed by the director;
            75514         (n) a representative from the Division of Solid and Hazardous Waste appointed by the
            75515     director;
            75516         (o) a representative from the Division of Water Quality appointed by the director;
            75517         (p) a representative from the Division of Oil, Gas, and Mining appointed by the

            75518     director;
            75519         (q) a representative from the Division of Parks and Recreation appointed by the
            75520     director;
            75521         (r) a representative from the Division of Forestry, Fire and State Lands appointed by
            75522     the director;
            75523         (s) a representative from the Utah Geological Survey appointed by the director;
            75524         (t) a representative from the Division of Water Resources appointed by the director;
            75525         (u) a representative from the Division of Water Rights appointed by the director;
            75526         (v) a representative from the Division of Wildlife Resources appointed by the director;
            75527         (w) a representative from the School and Institutional Trust Lands Administration
            75528     appointed by the director;
            75529         (x) a representative from the Division of Facilities Construction and Management
            75530     appointed by the director; and
            75531         (y) a representative from the Division of Homeland Security appointed by the director.
            75532         (2) (a) As particular issues require, the committee may, by majority vote of the
            75533     members present, and with the concurrence of the state planning coordinator, appoint additional
            75534     temporary members to serve as ex officio voting members.
            75535         (b) Those ex officio members may discuss and vote on the issue or issues for which they
            75536     were appointed.
            75537         (3) A chair shall be selected by a majority vote of committee members with the
            75538     concurrence of the state planning coordinator.
            75539         (4) (a) (i) Members who are not government employees shall receive no compensation
            75540     or benefits for their services, but may receive per diem and expenses incurred in the
            75541     performance of the member's official duties at the rates established by the Division of Finance
            75542     under Sections 63A-3-106 and 63A-3-107 .
            75543         (ii) Members may decline to receive per diem and expenses for their service.
            75544         (b) (i) State government officer and employee members who do not receive salary, per
            75545     diem, or expenses from their agency for their service may receive per diem and expenses

            75546     incurred in the performance of their official duties from the council at the rates established by
            75547     the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            75548         (ii) State government officer and employee members may decline to receive per diem
            75549     and expenses for their service.
            75550         Section 1673. Section 63J-4-503 , which is renumbered from Section 63-38d-503 is
            75551     renumbered and amended to read:
            75552          [63-38d-503].     63J-4-503. Planning coordinator responsibilities.
            75553         The state planning coordinator shall:
            75554         (1) administer this part;
            75555         (2) subject to the direction and approval of the governor, take necessary action for its
            75556     implementation; and
            75557         (3) inform political subdivision representatives, in advance, of all committee meetings.
            75558         Section 1674. Section 63J-4-504 , which is renumbered from Section 63-38d-504 is
            75559     renumbered and amended to read:
            75560          [63-38d-504].     63J-4-504. Duties.
            75561         (1) The committee shall assist the state planning coordinator:
            75562         (a) in the review of:
            75563         (i) proposed state actions affecting physical resources;
            75564         (ii) federal and federally assisted actions for which state review is provided by federal
            75565     law, regulation, or policy; and
            75566         (iii) proposed federal regulations and policies pertaining to natural resource issues; and
            75567         (b) in the development and implementation of a procedure that will expedite the review
            75568     of proposed energy and industrial facilities that require permits to be issued by more than one
            75569     state agency.
            75570         (2) The state planning coordinator shall review and forward the comments and
            75571     recommendations of the committee to:
            75572         (a) the governor;
            75573         (b) the initiating state agency, in the case of a proposed state action; and

            75574         (c) the Office of Legislative Research and General Counsel.
            75575         Section 1675. Section 63J-4-505 , which is renumbered from Section 63-38d-505 is
            75576     renumbered and amended to read:
            75577          [63-38d-505].     63J-4-505. Powers of state agencies and local governments
            75578      not limited.
            75579         This part does not limit powers conferred upon state departments, agencies, or
            75580     instrumentalities of the state or political subdivisions by existing law.
            75581         Section 1676. Section 63J-4-601 , which is renumbered from Section 63-38d-601 is
            75582     renumbered and amended to read:
            75583     
Part 6. Public Lands Policy Coordination

            75584          [63-38d-601].     63J-4-601. Definitions.
            75585         As used in this part:
            75586         (1) "Coordinator" means the public lands policy coordinator appointed in this part.
            75587         (2) "Council" means the Public Lands Policy Coordinating Council created by this part.
            75588         (3) "Office" means the Public Lands Policy Coordinating Office created by this part.
            75589         (4) "Political subdivision" means a county, municipality, local district, special service
            75590     district, school district, interlocal cooperation agreement entity, or any administrative subunit of
            75591     them.
            75592         (5) "State planning coordinator" means the person appointed under Subsection
            75593     [ 63-38d-202 ] 63J-4-202 (1)(a)(ii).
            75594         Section 1677. Section 63J-4-602 , which is renumbered from Section 63-38d-602 is
            75595     renumbered and amended to read:
            75596          [63-38d-602].     63J-4-602. Public Lands Policy Coordinating Office --
            75597      Coordinator -- Appointment -- Qualifications -- Compensation.
            75598         (1) There is created within state government the Public Lands Policy Coordinating
            75599     Office. The office shall be administered by a public lands policy coordinator.
            75600         (2) The coordinator shall be appointed by the governor with the consent of the Senate
            75601     and shall serve at the pleasure of the governor.

            75602         (3) The coordinator shall have demonstrated the necessary administrative and
            75603     professional ability through education and experience to efficiently and effectively manage the
            75604     office's affairs.
            75605         (4) The coordinator and employees of the office shall receive compensation as provided
            75606     in Title 67, Chapter 19, Utah State Personnel Management Act.
            75607         Section 1678. Section 63J-4-603 , which is renumbered from Section 63-38d-603 is
            75608     renumbered and amended to read:
            75609          [63-38d-603].     63J-4-603. Powers and duties of coordinator and office.
            75610         (1) The coordinator and the office shall:
            75611         (a) assist the state planning coordinator in fulfilling the duties outlined in Section
            75612     [ 63-38d-401 ] 63J-4-401 as those duties relate to the development of public lands policies by:
            75613         (i) developing cooperative contracts and agreements between the state, political
            75614     subdivisions, and agencies of the federal government for involvement in the development of
            75615     public lands policies;
            75616         (ii) producing research, documents, maps, studies, analysis, or other information that
            75617     supports the state's participation in the development of public lands policy;
            75618         (iii) preparing comments to ensure that the positions of the state and political
            75619     subdivisions are considered in the development of public lands policy;
            75620         (iv) partnering with state agencies and political subdivisions in an effort to:
            75621         (A) prepare coordinated public lands policies;
            75622         (B) develop consistency reviews and responses to public lands policies;
            75623         (C) develop management plans that relate to public lands policies; and
            75624         (D) develop and maintain a statewide land use plan that is based on cooperation and in
            75625     conjunction with political subdivisions; and
            75626         (v) providing other information or services related to public lands policies as requested
            75627     by the state planning coordinator; and
            75628         (b) facilitate and coordinate the exchange of information, comments, and
            75629     recommendations on public lands policies between and among:

            75630         (i) state agencies;
            75631         (ii) political subdivisions;
            75632         (iii) the Rural Development Program created under Section [ 63-38f-1602 ]
            75633      63M-1-1602 ;
            75634         (iv) the Resource Development Coordinating Committee created under Section
            75635     [ 63-38d-501 ] 63J-4-501 ;
            75636         (v) School and Institutional Trust Lands Administration created under Section
            75637      53C-1-201 ;
            75638         (vi) the committee created under Section 63F-1-508 to award grants to counties to
            75639     inventory and map R.S. 2477 rights-of-way, associated structures, and other features; and
            75640         (vii) the Constitutional Defense Council created under Section 63C-4-101 ;
            75641         (c) perform the duties established in Title 9, Chapter 8, Part 3, Antiquities, and Title 9,
            75642     Chapter 8, Part 4, Historic Sites; and
            75643         (d) consistent with other statutory duties, encourage agencies to responsibly preserve
            75644     archaeological resources.
            75645         (2) In providing assistance to the state planning coordinator under Subsection (1)(a),
            75646     the coordinator and office shall take into consideration the:
            75647         (a) findings provided under Subsections [ 63-38d-401 ] 63J-4-401 (6) and (7); and
            75648         (b) recommendations of the council.
            75649         Section 1679. Section 63J-4-604 , which is renumbered from Section 63-38d-604 is
            75650     renumbered and amended to read:
            75651          [63-38d-604].     63J-4-604. Public Lands Policy Coordinating Council --
            75652      Creation -- Membership -- Funding.
            75653         (1) There is created the Public Lands Policy Coordinating Council composed of the
            75654     following seven members:
            75655         (a) one individual, appointed by the governor, who shall serve as chair of the council;
            75656         (b) one member of the Senate appointed by the president of the Senate;
            75657         (c) one member of the House of Representatives appointed by the speaker of the House

            75658     of Representatives;
            75659         (d) two individuals appointed by the Utah Association of Counties; and
            75660         (e) the executive director of the Department of Natural Resources and the director of
            75661     the School and Institutional Trust Lands Administration as ex officio, nonvoting members.
            75662         (2) Members shall be appointed for four-year terms.
            75663         (3) When a vacancy occurs in the membership for any reason, the replacement shall be
            75664     appointed for the unexpired term in the same manner as the original appointment.
            75665         (4) (a) (i) State government officer and employee members who do not receive salary,
            75666     per diem, or expenses from their agency for their service may receive per diem and expenses
            75667     incurred in the performance of their official duties from the council at the rates established by
            75668     the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            75669         (ii) State government officer and employee members may decline to receive per diem
            75670     and expenses for their service.
            75671         (b) (i) Local government members who do not receive salary, per diem, or expenses
            75672     from the entity that they represent for their service may receive per diem and expenses incurred
            75673     in the performance of their official duties at the rates established by the Division of Finance
            75674     under Sections 63A-3-106 and 63A-3-107 .
            75675         (ii) Local government members may decline to receive per diem and expenses for their
            75676     service.
            75677         (c) Legislators on the committee shall receive compensation and expenses as provided
            75678     by law and legislative rule.
            75679         (5) The council shall be funded from the Constitutional Defense Restricted Account
            75680     created in Section 63C-4-103 .
            75681         Section 1680. Section 63J-4-605 , which is renumbered from Section 63-38d-605 is
            75682     renumbered and amended to read:
            75683          [63-38d-605].     63J-4-605. Council duties.
            75684         The council shall provide advice and recommendations on the development of public
            75685     lands policies to the:

            75686         (1) Public Lands Policy Coordinating office;
            75687         (2) state planning coordinator; and
            75688         (3) governor.
            75689         Section 1681. Section 63J-5-101 is enacted to read:
            75690     
CHAPTER 5. FEDERAL FUNDS PROCEDURES ACT

            75691     
Part 1. General Provisions

            75692          63J-5-101. Title.
            75693         This chapter is known as the "Federal Funds Procedures Act."
            75694         Section 1682. Section 63J-5-102 , which is renumbered from Section 63-38e-101 is
            75695     renumbered and amended to read:
            75696          [63-38e-101].     63J-5-102. Definitions.
            75697         (1) As used in this chapter:
            75698         (a) (i) "Agency" means a department, division, committee, commission, council, court,
            75699     or other administrative subunit of the state.
            75700         (ii) "Agency" includes executive branch entities and judicial branch entities.
            75701         (iii) "Agency" does not mean higher education institutions or political subdivisions.
            75702         (b) (i) "Federal funds" means cash or other monies received from the United States
            75703     government or from other individuals or entities for or on behalf of the United States and
            75704     deposited with the state treasurer or any agency of the state.
            75705         (ii) "Federal funds" includes federal assistance and federal assistance programs,
            75706     however described.
            75707         (iii) "Federal funds" does not include monies received from the United States
            75708     government to reimburse the state for monies expended by the state.
            75709         (c) "Federal funds reauthorization" means the formal submission from an agency to the
            75710     federal government:
            75711         (i) applying for or seeking reauthorization of federal funds; or
            75712         (ii) applying for or seeking reauthorization to participate in a federal program that will
            75713     result in federal funds being transferred to an agency.

            75714         (d) "Federal funds request summary" means a document detailing:
            75715         (i) the amount of money that is being requested or is available to be received by the
            75716     state from the federal government for each federal funds reauthorization or new federal funds
            75717     request;
            75718         (ii) those federal funds reauthorizations and new federal funds requests that are included
            75719     as part of the agency's proposed budget for the fiscal year, and the amount of those requests;
            75720         (iii) the amount of new state monies, if any, that will be required to receive the federal
            75721     funds or participate in the federal program;
            75722         (iv) the number of additional permanent full-time employees, additional permanent
            75723     part-time employees, or combination of additional permanent full-time employees and additional
            75724     permanent part-time employees, if any, that the state estimates are needed in order to receive
            75725     the federal funds or participate in the federal program; and
            75726         (v) any requirements that the state must meet as a condition for receiving the federal
            75727     funds or participating in the federal program.
            75728         (e) "Federal maintenance of effort requirements" means any matching, level of effort, or
            75729     earmarking requirements, as defined in Office of Management and Budget Circular A-133,
            75730     Compliance Requirement G, that are imposed on an agency as a condition of receiving federal
            75731     funds.
            75732         (f) "New federal funds" means:
            75733         (i) federal assistance or other federal funds that are available from the federal
            75734     government and that the state is not currently receiving;
            75735         (ii) a federal assistance program or other federal program in which the state is not
            75736     currently participating;
            75737         (iii) each federal funds reauthorization that would require the state, as a condition for
            75738     receiving the federal funds, to:
            75739         (A) add additional permanent full-time employees, permanent part-time employees, or
            75740     combination of additional permanent full-time employees and permanent part-time employees;
            75741         (B) increase the amount of state matching funds required to receive the federal funds or

            75742     participate in the federal program; or
            75743         (C) comply with new requirements in order to receive the federal funds or participate in
            75744     the federal program.
            75745         (g) "New federal funds request" means the formal submission from an agency to the
            75746     federal government:
            75747         (i) applying for or otherwise seeking to obtain new federal funds;
            75748         (ii) applying for or seeking to participate in a new federal program that will result in
            75749     federal funds being transferred to an agency.
            75750         (h) (i) "New state monies" means monies, whether specifically appropriated by the
            75751     legislature or not, that the federal government requires Utah to expend as a condition for
            75752     receiving the federal funds or participating in the federal program.
            75753         (ii) "New state monies" includes monies expended to meet federal maintenance of effort
            75754     requirements.
            75755         (i) "Pass-through federal funds" means federal funds provided to an agency that are
            75756     distributed to local governments or private entities without being used by the agency.
            75757         (j) "State" means the state of Utah and all of its agencies, and any administrative
            75758     subunits of those agencies.
            75759         (2) When this chapter describes an employee as a "permanent full-time employee" or a
            75760     "permanent part-time employee," it is not intended to, and may not be construed to, affect the
            75761     employee's status as an at-will employee.
            75762         Section 1683. Section 63J-5-103 , which is renumbered from Section 63-38e-102 is
            75763     renumbered and amended to read:
            75764          [63-38e-102].     63J-5-103. Scope and applicability of chapter.
            75765         (1) Except as provided in Subsection (2), and except as otherwise provided by a statute
            75766     superseding provisions of this chapter by explicit reference to this chapter, the provisions of this
            75767     chapter apply to each agency and govern each federal funds request.
            75768         (2) This chapter does not govern federal funds requests for:
            75769         (a) the Medical Assistance Program, commonly known as Medicaid;

            75770         (b) the Children's Health Insurance Program;
            75771         (c) the Women, Infant, and Children program;
            75772         (d) the Temporary Assistance to Needy Families program;
            75773         (e) Social Security Act monies;
            75774         (f) the Substance Abuse Prevention and Treatment program;
            75775         (g) Child Care Block grants;
            75776         (h) Food Stamp Administration and Training monies;
            75777         (i) Unemployment Insurance Operations monies;
            75778         (j) Federal Highway Administration monies;
            75779         (k) the Utah National Guard; or
            75780         (l) pass-through federal funds.
            75781         (3) The governor need not seek legislative review or approval of federal funds received
            75782     by the state when the governor has declared a state of emergency and the federal funds are
            75783     received to assist disaster victims under Subsection [ 63-5a-3 ] 63K-4-201 (2).
            75784         Section 1684. Section 63J-5-201 , which is renumbered from Section 63-38e-201 is
            75785     renumbered and amended to read:
            75786     
Part 2. Federal Funds Review and Approval

            75787          [63-38e-201].     63J-5-201. Legislative Appropriation Subcommittees to
            75788      review certain federal funds reauthorizations -- Executive Appropriations review --
            75789      Legislative approval.
            75790         (1) The Governor's Office of Planning and Budget shall annually prepare and submit a
            75791     federal funds request summary for each agency to the Legislative Fiscal Analyst at the same
            75792     time the governor submits the confidential draft budget under Section [ 63-38-2 ] 63J-1-201 .
            75793         (2) (a) The Legislative Fiscal Analyst shall submit a federal funds request summary for
            75794     each agency to the legislative appropriations subcommittee responsible for that agency's budget
            75795     for review during each annual general session.
            75796         (b) Each legislative appropriations subcommittee shall review the federal funds request
            75797     summary and may:

            75798         (i) recommend that the agency accept the federal funds or participate in the federal
            75799     program for the fiscal year under consideration; or
            75800         (ii) recommend that the agency not accept the federal funds or not participate in the
            75801     federal program for the fiscal year under consideration.
            75802         (3) The Legislative Executive Appropriations Committee shall:
            75803         (a) review each subcommittee's recommendation;
            75804         (b) determine whether or not the agency should be authorized to accept the federal
            75805     funds or participate in the federal program; and
            75806         (c) direct the Legislative Fiscal Analyst to include those federal funds and federal
            75807     programs that the committee approves in the annual appropriations act for approval by the
            75808     Legislature.
            75809         Section 1685. Section 63J-5-202 , which is renumbered from Section 63-38e-202 is
            75810     renumbered and amended to read:
            75811          [63-38e-202].     63J-5-202. Governor to approve certain new federal funds
            75812      requests.
            75813         (1) (a) Before obligating the state to accept or receive new federal funds or to
            75814     participate in a new federal program, and no later than three months after submitting a new
            75815     federal funds request, and, where possible, before formally submitting the new federal funds
            75816     request, an executive branch agency shall submit a federal funds request summary to the
            75817     governor or the governor's designee for approval or rejection when:
            75818         (i) the state will receive total payments of $1,000,000 or less per year if the new federal
            75819     funds request is approved;
            75820         (ii) receipt of the new federal funds will require no additional permanent full-time
            75821     employees, permanent part-time employees, or combination of additional permanent full-time
            75822     employees and permanent part-time employees; and
            75823         (iii) no new state monies will be required to match the new federal funds or to
            75824     implement the new federal program for which the grant is issued.
            75825         (b) The Governor's Office of Planning and Budget shall report each new federal funds

            75826     request that is approved by the governor or the governor's designee and each new federal funds
            75827     request granted by the federal government to:
            75828         (i) the Legislature's Executive Appropriations Committee;
            75829         (ii) the Office of the Legislative Fiscal Analyst; and
            75830         (iii) the Office of Legislative Research and General Counsel.
            75831         (2) The governor or the governor's designee shall approve or reject each new federal
            75832     funds request submitted under the authority of this section.
            75833         (3) (a) If the governor or the governor's designee approves the new federal funds
            75834     request, the executive branch agency may accept the new federal funds or participate in the new
            75835     federal program.
            75836         (b) If the governor or the governor's designee rejects the new federal funds request, the
            75837     executive branch agency may not accept the new federal funds or participate in the new federal
            75838     program.
            75839         (4) If an executive branch agency fails to obtain the governor's or the governor's
            75840     designee's approval under this section, the governor may require the agency to:
            75841         (a) withdraw the new federal funds request;
            75842         (b) return the federal funds;
            75843         (c) withdraw from the federal program; or
            75844         (d) any combination of Subsections (4)(a), (4)(b), and (4)(c).
            75845         Section 1686. Section 63J-5-203 , which is renumbered from Section 63-38e-203 is
            75846     renumbered and amended to read:
            75847          [63-38e-203].     63J-5-203. Judicial council to approve certain new federal
            75848      funds requests.
            75849         (1) (a) Before obligating the state to accept or receive new federal funds or to
            75850     participate in a new federal program, and no later than three months after submitting a new
            75851     federal funds request, and, where possible, before formally submitting the new federal funds
            75852     request, a judicial branch agency shall submit a federal funds request summary to the Judicial
            75853     Council for its approval or rejection when:

            75854         (i) the state will receive total payments of $1,000,000 or less per year if the new federal
            75855     funds request is approved;
            75856         (ii) receipt of the new federal funds will require no additional permanent full-time
            75857     employees, additional permanent part-time employees, or combination of additional permanent
            75858     full-time employees and permanent part-time employees; and
            75859         (iii) no new state monies will be required to match the new federal funds or to
            75860     implement the new federal program for which the grant is issued.
            75861         (b) The Judicial Council shall report each new federal funds request that is approved by
            75862     it and each new federal funds request granted by the federal government to:
            75863         (i) the Legislature's Executive Appropriations Committee;
            75864         (ii) the Office of the Legislative Fiscal Analyst; and
            75865         (iii) the Office of Legislative Research and General Counsel.
            75866         (2) The Judicial Council shall approve or reject each new federal funds request
            75867     submitted to it under the authority of this section.
            75868         (3) (a) If the Judicial Council approves the new federal funds request, the judicial
            75869     branch agency may accept the new federal funds or participate in the new federal program.
            75870         (b) If the Judicial Council rejects the new federal funds request, the judicial branch
            75871     agency may not accept the new federal funds or participate in the new federal program.
            75872         (4) If a judicial branch agency fails to obtain the Judicial Council's approval under this
            75873     section, the Judicial Council may require the agency to:
            75874         (a) withdraw the new federal funds request;
            75875         (b) return the federal funds;
            75876         (c) withdraw from the federal program; or
            75877         (d) any combination of Subsections (4)(a), (4)(b), and (4)(c).
            75878         Section 1687. Section 63J-5-204 , which is renumbered from Section 63-38e-204 is
            75879     renumbered and amended to read:
            75880          [63-38e-204].     63J-5-204. Legislative review and approval of certain new
            75881      federal funds requests.

            75882         (1) As used in this section:
            75883         (a) "High impact federal funds request" means a new federal funds request that will or
            75884     could:
            75885         (i) result in the state receiving total payments of $10,000,000 or more per year from the
            75886     federal government;
            75887         (ii) require the state to add 11 or more permanent full-time employees, 11 or more
            75888     permanent part-time employees, or combination of permanent full-time and permanent part-time
            75889     employees equal to 11 or more in order to receive the new federal funds or participate in the
            75890     new federal program; or
            75891         (iii) require the state to expend more than $1,000,000 of new state monies in a fiscal
            75892     year in order to receive or administer the new federal funds or participate in the new federal
            75893     program.
            75894         (b) "Medium impact federal funds request" means a new federal funds request that will
            75895     or could:
            75896         (i) result in the state receiving total payments of more than $1,000,000 but less than
            75897     $10,000,000 per year from the federal government;
            75898         (ii) require the state to add more than zero but less than 11 permanent full-time
            75899     employees, more than zero but less than 11 permanent part-time employees, or a combination of
            75900     permanent full-time employees and permanent part-time employees equal to more than zero but
            75901     less than 11 in order to receive or administer the new federal funds or participate in the new
            75902     federal program; or
            75903         (iii) require the state to expend $1 to $1,000,000 of new state monies in a fiscal year in
            75904     order to receive or administer the new federal funds or participate in the new federal program.
            75905         (2) (a) Before obligating the state to accept or receive new federal funds or to
            75906     participate in a new federal program under a medium impact federal funds request, and no later
            75907     than three months after submitting a medium impact federal funds request, and, where possible,
            75908     before formally submitting the medium impact federal funds request, an agency shall:
            75909         (i) submit the federal funds request summary to the governor or the Judicial Council, as

            75910     appropriate, for approval or rejection; and
            75911         (ii) if the governor or Judicial Council approves the new federal funds request, submit
            75912     the federal funds request summary to the Legislative Executive Appropriations Committee for
            75913     its review and recommendations.
            75914         (b) The Legislative Executive Appropriations Committee shall review the federal funds
            75915     request summary and may:
            75916         (i) recommend that the agency accept the new federal funds;
            75917         (ii) recommend that the agency not accept the new federal funds; or
            75918         (iii) recommend to the governor that the governor call a special session of the
            75919     Legislature to review and approve or reject the acceptance of the new federal funds.
            75920         (3) (a) Before obligating the state to accept or receive new federal funds or to
            75921     participate in a new federal program under a high impact federal funds request, and no later than
            75922     three months after submitting a high impact federal funds request, and, where possible, before
            75923     formally submitting the high impact federal funds request, an agency shall:
            75924         (i) submit the federal funds request summary to the governor or Judicial Council, as
            75925     appropriate, for approval or rejection; and
            75926         (ii) if the governor or Judicial Council approves the new federal funds request, submit
            75927     the federal funds request summary to the Legislature for its approval or rejection in an annual
            75928     general session or a special session.
            75929         (b) (i) If the Legislature approves the new federal funds request, the agency may accept
            75930     the new federal funds or participate in the new federal program.
            75931         (ii) If the Legislature fails to approve the new federal funds request, the agency may not
            75932     accept the new federal funds or participate in the new federal program.
            75933         (c) If an agency fails to obtain the Legislature's approval under this Subsection (3):
            75934         (i) the governor or Judicial Council, as appropriate, may require the agency to withdraw
            75935     the new federal funds request or refuse or return the new federal funds;
            75936         (ii) the Legislature may, if federal law allows, opt out or decline to participate in the
            75937     new federal program or decline to receive the new federal funds; or

            75938         (iii) the Legislature may reduce the agency's General Fund appropriation in an amount
            75939     less than, equal to, or greater than the amount of federal funds received by the agency.
            75940         Section 1688. Section 63J-6-101 is enacted to read:
            75941     
CHAPTER 6. TAX ANTICIPATION NOTES ACT

            75942     
Part 1. General Provisions

            75943          63J-6-101. Title.
            75944         This chapter is known as the "Tax Anticipation Notes Act."
            75945         Section 1689. Section 63J-6-201 , which is renumbered from Section 63-61-1 is
            75946     renumbered and amended to read:
            75947     
Part 2. Procedures

            75948          [63-61-1].     63J-6-201. Borrowing authorized -- Limitation -- Issuance of notes
            75949      -- Maximum term.
            75950         The state treasurer may borrow money for the state in anticipation of (a) income or
            75951     revenue from taxes, whether the taxes are specific, ad valorem, excise, sales, income, franchise,
            75952     or fees for the current fiscal year, or that portion of the taxes not collected or previously
            75953     anticipated at the time of borrowing, and (b) other non-tax revenues of the state, in a principal
            75954     sum not greater than 75% of such income or revenue which the director of the Division of
            75955     Finance certifies to the state treasurer are to be reasonably anticipated to be collected during the
            75956     current fiscal year. Each loan shall be evidenced by the issuance and sale of tax and revenue
            75957     anticipation notes of the state, for fixed periods not to exceed 12 months or the end of the
            75958     current fiscal year, whichever is sooner.
            75959         Section 1690. Section 63J-6-202 , which is renumbered from Section 63-61-2 is
            75960     renumbered and amended to read:
            75961          [63-61-2].     63J-6-202. Issuance -- Financing plan required -- Contents -- Order
            75962      setting terms of notes -- Recitations in notes -- Report of sales -- Disposition of proceeds.
            75963         (1) If the state treasurer considers it to be in the best interests of the state to issue tax
            75964     and revenue anticipation notes under Section [ 63-61-1 ] 63J-6-201 , the state treasurer shall issue
            75965     the notes in accordance with this chapter.

            75966         (2) (a) Prior to the issuance and sale of any tax or revenue anticipation note to other
            75967     than a state fund or account, the state treasurer shall prepare a written plan of financing which
            75968     shall be filed with the governor. The plan of financing shall provide for the terms and conditions
            75969     under which the notes will be issued, sold, and delivered, the taxes or revenues to be
            75970     anticipated, the maximum amount of notes which may be outstanding at any one time under the
            75971     plan of financing, the sources of payment of the notes issued pursuant to the plan of financing,
            75972     and all other details relating to the issuance, sale, and delivery of the notes. The sources of
            75973     payment of the notes issued pursuant to the plan of financing may include the proceeds of sale
            75974     of notes issued to refund outstanding tax or revenue anticipation notes and to pay accrued
            75975     interest on them.
            75976         (b) The plan of financing shall specify the rates of interest, if any, on the notes or a
            75977     method, formula, or index pursuant to which the interest rates on the notes may be determined
            75978     during the time the notes are outstanding.
            75979         (c) The state treasurer may include in the plan of financing the terms and conditions of
            75980     arrangements entered into by the state treasurer on behalf of the state with financial and other
            75981     institutions for letters of credit, standby letters of credit, reimbursement agreements, and
            75982     remarketing, indexing, and tender agent agreements to secure the tax anticipation notes,
            75983     including payment from any legally available source of fees, charges, or other amounts coming
            75984     due under the agreements entered into by the treasurer.
            75985         (3) The interest, form, manner of execution, payment, manner of sale, prices at, above,
            75986     or below face value, and all details of issuance of the notes shall be set forth in an order of the
            75987     state treasurer. The order and the details set forth in the order shall conform with any
            75988     applicable plan of financing and with this chapter.
            75989         (4) Each note shall recite that it is a valid obligation of the state and that the faith and
            75990     credit of the state are pledged for the payment of the principal of and interest on the note from
            75991     the revenues of the fiscal year in which the note is issued in accordance with its terms and the
            75992     constitution and laws of Utah.
            75993         (5) Immediately upon the completion of any sale, the state treasurer shall make a

            75994     verified return of the sale to the state auditor, specifying the amount of notes sold, the persons
            75995     to whom the notes were sold, and the price, terms, and conditions of the sale. Immediately
            75996     upon the sale of any notes, the state treasurer shall credit the proceeds of sale, other than
            75997     accrued interest, to the General Fund.
            75998         Section 1691. Section 63J-6-203 , which is renumbered from Section 63-61-3 is
            75999     renumbered and amended to read:
            76000          [63-61-3].     63J-6-203. Redemption fund -- Creation -- Sources -- Use --
            76001      Investment -- Income.
            76002         (1) There is created a special fund to be known as the "Tax and Revenue Anticipation
            76003     Note Redemption Fund," referred to in this chapter as the "redemption fund." When any notes
            76004     have been issued in anticipation of income or revenue under this chapter, not less than two days
            76005     before the principal and interest on the notes comes due, income or revenue realized from the
            76006     tax or nontax sources specified in the approved plan of financing to be anticipated or from any
            76007     other source or sources of monies legally available for such purpose shall be placed in the
            76008     redemption fund so that the amount in the redemption fund is sufficient to pay the principal
            76009     amount of all notes outstanding, together with interest on them.
            76010         (2) The money in the redemption fund is appropriated solely for the payment of the
            76011     principal of and interest on the notes issued under this chapter. The payment of the principal
            76012     and interest on the notes issued under this chapter is not limited solely to the income and
            76013     revenues from the specific tax or nontax sources in anticipation of which the notes were issued.
            76014     Accrued interest received upon the sale of the notes shall be deposited by the state treasurer in
            76015     the redemption fund.
            76016         (3) The state treasurer may invest all money in the redemption fund in accordance with
            76017     Title 51, Chapter 7, State Money Management Act of 1974, maturing at a time which will
            76018     permit payment of the principal of and interest on the notes in a timely manner when due. The
            76019     state treasurer may covenant with the purchasers of the notes as to the manner of holding
            76020     money in the redemption fund, the investment of money in the redemption fund, and the
            76021     disposition of any investment income therefrom by retaining investment income in the

            76022     redemption fund to be used to pay principal of and interest on notes when due or by paying the
            76023     investment income to the state treasurer for deposit into the General Fund. If there is sufficient
            76024     money in the redemption fund to pay all principal of and interest on all outstanding notes
            76025     payable therefrom, all investment income on it shall be paid to the state treasurer for deposit
            76026     into the General Fund.
            76027         Section 1692. Section 63J-6-204 , which is renumbered from Section 63-61-4 is
            76028     renumbered and amended to read:
            76029          [63-61-4].     63J-6-204. Expenses of notes paid from proceeds.
            76030         All expenses incident to the issuance of tax and revenue anticipation notes under this
            76031     chapter shall be paid from the proceeds of sale of the notes credited to the General Fund.
            76032         Section 1693. Section 63K-1-101 , which is renumbered from Section 63-5b-101 is
            76033     renumbered and amended to read:
            76034     
TITLE 63K. EMERGENCY MANAGEMENT

            76035     
CHAPTER 1. EMERGENCY INTERIM SUCCESSION ACT

            76036     
Part 1. General Provisions

            76037          [63-5b-101].     63K-1-101. Title.
            76038         (1) This title is known as "Emergency Management."
            76039         (2) This chapter is known as the "Emergency Interim Succession Act."
            76040         Section 1694. Section 63K-1-102 , which is renumbered from Section 63-5b-102 is
            76041     renumbered and amended to read:
            76042          [63-5b-102].     63K-1-102. Definitions.
            76043         (1) (a) "Absent" means:
            76044         (i) not physically present or not able to be communicated with for 48 hours; or
            76045         (ii) for local government officers, as defined by local ordinances.
            76046         (b) "Absent" does not include a person who can be communicated with via telephone,
            76047     radio, or telecommunications.
            76048         (2) "Attack" means a nuclear, conventional, biological, or chemical warfare action
            76049     against the United States of America or this state.

            76050         (3) "Department" means the Department of Administrative Services, the Department of
            76051     Agriculture and Food, the Alcoholic Beverage Control Commission, the Department of
            76052     Commerce, the Department of Community and Culture, the Department of Corrections, the
            76053     Department of Environmental Quality, the Department of Financial Institutions, the Department
            76054     of Health, the Department of Human Resource Management, the Department of Workforce
            76055     Services, the Labor Commission, the National Guard, the Department of Insurance, the
            76056     Department of Natural Resources, the Department of Public Safety, the Public Service
            76057     Commission, the Department of Human Services, the State Tax Commission, the Department of
            76058     Technology Services, the Department of Transportation, any other major administrative
            76059     subdivisions of state government, the State Board of Education, the State Board of Regents, the
            76060     Utah Housing Corporation, the Workers' Compensation Fund, the State Retirement Board, and
            76061     each institution of higher education within the system of higher education.
            76062         (4) "Disaster" means a situation causing, or threatening to cause, widespread damage,
            76063     social disruption, or injury or loss of life or property resulting from attack, internal disturbance,
            76064     natural phenomenon, or technological hazard.
            76065         (5) "Division" means the Division of Homeland Security established in Title 53, Chapter
            76066     2, Part 1, Homeland Security Act.
            76067         (6) "Emergency interim successor" means a person designated by this chapter to
            76068     exercise the powers and discharge the duties of an office when the person legally exercising the
            76069     powers and duties of the office is unavailable.
            76070         (7) "Executive director" means the person with ultimate responsibility for managing and
            76071     overseeing the operations of each department, however denominated.
            76072         (8) "Internal disturbance" means a riot, prison break, disruptive terrorism, or strike.
            76073         (9) "Natural phenomenon" means any earthquake, tornado, storm, flood, landslide,
            76074     avalanche, forest or range fire, drought, epidemic, or other catastrophic event.
            76075         (10) (a) "Office" includes all state and local offices, the powers and duties of which are
            76076     defined by constitution, statutes, charters, optional plans, ordinances, articles, or by-laws.
            76077         (b) "Office" does not include the office of governor or the legislative or judicial offices.

            76078         (11) "Place of governance" means the physical location where the powers of an office
            76079     are being exercised.
            76080         (12) "Political subdivision" includes counties, cities, towns, townships, districts,
            76081     authorities, and other public corporations and entities whether organized and existing under
            76082     charter or general law.
            76083         (13) "Political subdivision officer" means a person holding an office in a political
            76084     subdivision.
            76085         (14) "State officer" means the attorney general, the state treasurer, the state auditor,
            76086     and the executive director of each department.
            76087         (15) "Technological hazard" means any hazardous materials accident, mine accident,
            76088     train derailment, air crash, radiation incident, pollution, structural fire, or explosion.
            76089         (16) "Unavailable" means:
            76090         (a) absent from the place of governance during a disaster that seriously disrupts normal
            76091     governmental operations, whether or not that absence or inability would give rise to a vacancy
            76092     under existing constitutional or statutory provisions; or
            76093         (b) as otherwise defined by local ordinance.
            76094         Section 1695. Section 63K-1-201 , which is renumbered from Section 63-5b-201 is
            76095     renumbered and amended to read:
            76096     
Part 2. Executive Branch Succession

            76097          [63-5b-201].     63K-1-201. Emergency interim successor to office of
            76098      governor.
            76099         (1) If the governor is unavailable, and if the lieutenant governor, president of the
            76100     Senate, and the speaker of the House of Representatives are unavailable to exercise the powers
            76101     and duties of the office of governor, the attorney general, state auditor, or state treasurer shall,
            76102     in the order named, exercise the powers and duties of the office of governor until:
            76103         (a) the governor, lieutenant governor, president of the Senate, or speaker of the House
            76104     of Representatives becomes available; or
            76105         (b) a new governor is elected and qualified.

            76106         (2) Notwithstanding the provisions of Subsection (1), no emergency interim successor
            76107     to the lieutenant governor, president of the Senate, speaker of the House of Representatives,
            76108     attorney general, state auditor, or state treasurer may serve as governor.
            76109         Section 1696. Section 63K-1-202 , which is renumbered from Section 63-5b-202 is
            76110     renumbered and amended to read:
            76111          [63-5b-202].     63K-1-202. Emergency interim successors for state officers.
            76112         (1) By July 1 of each year, each state officer shall:
            76113         (a) designate three qualified emergency interim successors from within [his] the state
            76114     officer's department who meet the constitutional qualifications for the office, if any;
            76115         (b) specify their order of succession;
            76116         (c) provide a list of those designated successors to the division; and
            76117         (d) notify emergency interim successors within 30 days of designation.
            76118         (2) (a) If any state officer is unavailable following a disaster, and if [his] the state
            76119     officer's deputy, if any, is also unavailable, a designated emergency interim successor shall
            76120     exercise the powers and duties of the office according to the order of succession specified by
            76121     the state officer.
            76122         (b) An emergency interim successor other than the attorney general, state auditor, or
            76123     state treasurer shall exercise the state officer's powers and duties only until:
            76124         (i) the person exercising the powers and duties of the office of governor appoints a
            76125     successor to fill the vacancy;
            76126         (ii) a permanent successor is appointed or elected and qualified as provided by law; or
            76127         (iii) the state officer, [his] the state officer's deputy, or an emergency interim successor
            76128     earlier in the order of succession becomes available to exercise or resume the exercise of the
            76129     powers and duties of the office.
            76130         (c) An emergency interim successor of the attorney general, state auditor, or state
            76131     treasurer shall exercise the powers and duties of those offices only until:
            76132         (i) a permanent successor is appointed or elected and qualified as provided by law; or
            76133         (ii) the attorney general, state auditor, or state treasurer, their deputy, or an emergency

            76134     interim successor earlier in the order of succession becomes available to exercise or resume the
            76135     exercise of the powers and duties of the office.
            76136         Section 1697. Section 63K-1-301 , which is renumbered from Section 63-5b-301 is
            76137     renumbered and amended to read:
            76138     
Part 3. Legislative and Judicial Branch Succession

            76139          [63-5b-301].     63K-1-301. Division to consult with legislative and judicial
            76140      branch.
            76141         The Division of Homeland Security may consult with the Legislative Management
            76142     Committee, the Judicial Council, and legislative and judicial staff offices to assist them in
            76143     preparing emergency succession plans and procedures.
            76144         Section 1698. Section 63K-1-302 , which is renumbered from Section 63-5b-302 is
            76145     renumbered and amended to read:
            76146          [63-5b-302].     63K-1-302. Place of legislative session.
            76147         (1) (a) If the governor or [his] the governor's interim successor declares a state of
            76148     emergency, the governor shall call the Legislature into session as soon as practicable.
            76149         (b) Each legislator shall proceed to the place of session as expeditiously as practicable.
            76150         (2) If the governor or [his] the governor's interim successor declares a state of
            76151     emergency or finds that a state of emergency is imminent, and the governor or the interim
            76152     successor determines that the prescribed place of session is unsafe, [he] the governor may
            76153     change the place of session to any place in Utah that [he] the governor considers safe and
            76154     convenient.
            76155         Section 1699. Section 63K-1-401 , which is renumbered from Section 63-5b-401 is
            76156     renumbered and amended to read:
            76157     
Part 4. Local Succession

            76158          [63-5b-401].     63K-1-401. Emergency interim successors for local officers.
            76159         (1) By July 1 of each year, each political subdivision officer shall:
            76160         (a) designate three emergency interim successors;
            76161         (b) specify their order of succession; and

            76162         (c) provide a list of those designated successors to the division.
            76163         (2) In the event that a political subdivision does not designate emergency interim
            76164     successors as required under Subsection (1), the order of succession shall be as follows:
            76165         (a) the chief executive officer of the political subdivision;
            76166         (b) the chief deputy executive officer of the political subdivision;
            76167         (c) the chair of the legislative body of the political subdivision; and
            76168         (d) the chief law enforcement officer of the political subdivision.
            76169         (3) (a) Notwithstanding any other provision of law:
            76170         (i) if any political subdivision officer or [his] the political subdivision officer's legal
            76171     deputy, if any, is unavailable, a designated emergency interim successor shall exercise the
            76172     powers and duties of the office according to the order of succession specified by the political
            76173     subdivision officer; or
            76174         (ii) counties may provide by ordinance that one member of the county legislative body
            76175     may act as the county legislative body if the other members are absent.
            76176         (b) An emergency interim successor shall exercise the powers and duties of the office
            76177     only until:
            76178         (i) the vacancy is filled in accordance with the constitution or statutes; or
            76179         (ii) the political subdivision officer, [his] the political subdivision officer's deputy, or an
            76180     emergency interim successor earlier in the order of succession becomes available to exercise the
            76181     powers and duties of the office.
            76182         (4) The legislative bodies of each political subdivision may enact resolutions or
            76183     ordinances consistent with this chapter and also provide for emergency interim successors to
            76184     officers of the political subdivision not governed by this section.
            76185         Section 1700. Section 63K-1-501 , which is renumbered from Section 63-5b-501 is
            76186     renumbered and amended to read:
            76187     
Part 5. Succession Process

            76188          [63-5b-501].     63K-1-501. Formalities of taking office.
            76189         (1) At the time that they are appointed as emergency interim successors or special

            76190     emergency judges, emergency interim successors and special emergency judges shall sign
            76191     prospectively whatever oath is required to enable them to exercise the powers and duties of the
            76192     office to which they may succeed.
            76193         (2) Notwithstanding any other provision of law, no person is required to comply with
            76194     any other provision of law relative to taking office as a prerequisite to the exercise of the
            76195     powers or discharge of the duties of an office to which [he] the person succeeds.
            76196         Section 1701. Section 63K-1-502 , which is renumbered from Section 63-5b-502 is
            76197     renumbered and amended to read:
            76198          [63-5b-502].     63K-1-502. Period in which authority may be exercised.
            76199         (1) Persons authorized to act as governor, emergency interim successors, and special
            76200     emergency judges shall exercise the powers and duties of the office to which they succeed only
            76201     when a disaster has occurred.
            76202         (2) (a) Emergency interim successors serve for 30 days after the date the governor or
            76203     the governor's emergency successor calls the Legislature into special session, unless the
            76204     unavailability of the elected official ends or an emergency interim successor earlier in the order
            76205     of succession becomes available before expiration of the 30-day period.
            76206         (b) Notwithstanding the provisions of Subsection (2)(a), if the emergency interim
            76207     successor is serving for a legislator who is killed or resigns, the emergency interim successor
            76208     shall serve until the legislator's legal replacement is sworn in.
            76209         (3) The Legislature, by concurrent resolution, may:
            76210         (a) terminate the authority of any or all emergency interim successors and special
            76211     emergency judges to exercise the powers and duties of their office at any time; and
            76212         (b) extend the time during which any or all emergency interim successors and special
            76213     emergency judges may exercise the powers and duties of their office.
            76214         Section 1702. Section 63K-1-503 , which is renumbered from Section 63-5b-503 is
            76215     renumbered and amended to read:
            76216          [63-5b-503].     63K-1-503. Removal of designees.
            76217         Until the persons designated as emergency interim successors or special emergency

            76218     judges succeed to the exercise of the powers and duties of an office, they shall serve as
            76219     emergency interim successors or special emergency judges at the pleasure of the designating
            76220     authority and may be removed and replaced by the designating authority at any time, with or
            76221     without cause.
            76222         Section 1703. Section 63K-1-504 , which is renumbered from Section 63-5b-504 is
            76223     renumbered and amended to read:
            76224          [63-5b-504].     63K-1-504. Disputes.
            76225         Except for factual disputes concerning the office of governor, the governor shall
            76226     adjudicate any dispute concerning a question of fact arising under this chapter concerning a
            76227     state officer. [His] The governor's decision is final.
            76228         Section 1704. Section 63K-1-601 , which is renumbered from Section 63-5b-601 is
            76229     renumbered and amended to read:
            76230     
Part 6. Emergency Seat of Government

            76231          [63-5b-601].     63K-1-601. Governor to declare location of emergency seat
            76232      of government.
            76233         (1) Whenever, due to an emergency resulting from the effects of a disaster, it becomes
            76234     imprudent, inexpedient, or impossible to conduct the affairs of the state government in Salt
            76235     Lake City, Utah, the governor shall:
            76236         (a) by proclamation, declare an emergency temporary location for the seat of
            76237     government in Utah; and
            76238         (b) take whatever action and issue whatever orders are necessary for an orderly
            76239     transition of the affairs of the state government to that emergency temporary location.
            76240         (2) That emergency temporary location shall remain as the seat of government until the
            76241     Legislature establishes a new location by law, or until the emergency is declared to be ended by
            76242     the governor and the seat of government is returned to its normal location.
            76243         (3) Local governments may provide, by ordinance, for temporary emergency locations
            76244     for the seat of government.
            76245         Section 1705. Section 63K-1-602 , which is renumbered from Section 63-5b-602 is

            76246     renumbered and amended to read:
            76247          [63-5b-602].     63K-1-602. Official acts at emergency seat of government --
            76248      Validity.
            76249         During the time when the seat of government remains at an emergency location, all
            76250     official acts required by law to be performed at the seat of government by any officer, agency,
            76251     department, or authority of this state or local government, including the convening and meeting
            76252     of the Legislature in regular, extraordinary, or emergency session, shall be as valid and binding
            76253     as when performed at the normal location of the seat of government.
            76254         Section 1706. Section 63K-2-101 is enacted to read:
            76255     
CHAPTER 2. ENERGY EMERGENCY POWERS OF THE GOVERNOR ACT

            76256     
Part 1. General Provisions

            76257          63K-2-101. Title.
            76258         This chapter is known as the "Energy Emergency Powers of the Governor Act."
            76259         Section 1707. Section 63K-2-102 , which is renumbered from Section 63-53a-2 is
            76260     renumbered and amended to read:
            76261          [63-53a-2].     63K-2-102. Legislative findings and purpose.
            76262         (1) The Legislature finds that the lack of energy resources and other energy resource
            76263     emergencies may threaten the availability of essential services and transportation and the
            76264     operation of the economy, jeopardizing the peace, health, safety, and welfare of the people of
            76265     this state.
            76266         (2) The Legislature further finds that it is necessary to provide an orderly procedure for
            76267     anticipating and responding to energy resource shortages and disruptions and to grant, under
            76268     conditions prescribed in this act, emergency powers to the governor to order involuntary
            76269     curtailments in the use of energy resources.
            76270         (3) The Legislature further finds and declares that it is the policy of this state to assist
            76271     the United States in effective management and control of such factors and situations as
            76272     contribute to an emergency affecting or likely to affect this state; to cooperate with other states
            76273     in matters related to an emergency affecting or likely to affect this state; to meet extraordinary

            76274     conditions in this state arising out of the crisis by taking such steps as are necessary and
            76275     appropriate; and generally to protect the peace, health, safety, and welfare of the people of this
            76276     state.
            76277         Section 1708. Section 63K-2-103 , which is renumbered from Section 63-53a-1 is
            76278     renumbered and amended to read:
            76279          [63-53a-1].     63K-2-103. "Energy resources" defined.
            76280         As used in this act, "energy resources" includes electricity, natural gas, gasoline and
            76281     middle distillates, coal, wood fuels, geothermal sources, radioactive materials, and any other
            76282     resource yielding energy.
            76283         Section 1709. Section 63K-2-201 , which is renumbered from Section 63-53a-3 is
            76284     renumbered and amended to read:
            76285     
Part 2. Energy Emergency Powers

            76286          [63-53a-3].     63K-2-201. Information-gathering powers -- Subpoena power --
            76287      Coordination with other regulatory authorities.
            76288         (1) On a continuing basis the governor may obtain all necessary information from energy
            76289     resource producers, manufacturers, suppliers, and consumers doing business within, and from
            76290     political subdivisions in, this state as necessary to determine whether shortages or an emergency
            76291     will require energy resource conservation measures. This information may include, but shall not
            76292     be limited to:
            76293         (a) sales volumes;
            76294         (b) forecasts of energy resource requirements;
            76295         (c) from manufacturers, suppliers, and consumers, an inventory of energy resources;
            76296     and
            76297         (d) local distribution patterns of the information described in Subsections (1)(a), (1)(b),
            76298     and (1)(c).
            76299         (2) In obtaining information at any time from energy resource producers,
            76300     manufacturers, suppliers, or consumers under Subsection (1)(c) and in obtaining any other
            76301     information under Subsection (1) during a state of emergency proclaimed, the governor may

            76302     subpoena witnesses, material and relevant books, papers, accounts, records, and memoranda,
            76303     administer oaths, and cause the depositions of persons residing within or without the state to be
            76304     taken in the manner prescribed for depositions in civil actions in district courts, to obtain
            76305     information relevant to energy resources that are the subject of the proclaimed emergency.
            76306         (3) In obtaining information under this section the governor shall:
            76307         (a) seek to avoid eliciting information already furnished by a person or political
            76308     subdivision in this state to a federal, state, or local regulatory authority that is available for [his]
            76309     the governor's study; and
            76310         (b) cause reporting procedures, including forms, to conform to existing requirements of
            76311     federal, state, and local regulatory authorities wherever possible.
            76312         Section 1710. Section 63K-2-202 , which is renumbered from Section 63-53a-4 is
            76313     renumbered and amended to read:
            76314          [63-53a-4].     63K-2-202. Confidential nature of information preserved -- Relief
            76315      from subpoena -- Unauthorized disclosure as misdemeanor -- Removal from office.
            76316         (1) Information furnished pursuant to Section [ 63-53a-3 ] 63K-2-201 and designated by
            76317     that person as confidential shall be maintained as confidential by the governor and any person
            76318     who obtains information which [he] the person knows to be confidential under this act. The
            76319     governor shall not make known in any manner any particulars of such information to persons
            76320     other than those specified in Subsection (4). No subpoena or judicial order may be issued
            76321     compelling the governor or any other person to divulge or make known such confidential
            76322     information, except when relevant to a prosecution for violation of Subsection (5).
            76323         (2) Nothing in this section shall prohibit the use of confidential information to prepare
            76324     statistics or other general data for publication, so presented as to prevent identification of
            76325     particular persons.
            76326         (3) Any person who is served with a subpoena to give testimony orally or in writing, or
            76327     to produce books, papers, correspondence, memoranda, agreements, or other documents or
            76328     records pursuant to this act may apply to any district court of this state for protection against
            76329     abuse or hardship in the manner provided by law.

            76330         (4) References to the governor in this section include the governor and any other
            76331     individuals designated for this purpose in writing by the governor.
            76332         (5) Any person who wilfully discloses confidential information in violation of this
            76333     section is guilty of a class A misdemeanor and, in addition, may be subject to removal from
            76334     office or immediate dismissal from public employment.
            76335         Section 1711. Section 63K-2-203 , which is renumbered from Section 63-53a-5 is
            76336     renumbered and amended to read:
            76337          [63-53a-5].     63K-2-203. Curtailment of energy use -- Standby priorities --
            76338      Restriction on involuntary curtailment.
            76339         In consultation with appropriate federal and state officials and officials of political
            76340     subdivisions in this state, the governor shall cause to be established, and revised as appropriate,
            76341     standby priorities for curtailment in the use of energy resources. Involuntary curtailments,
            76342     however, may be ordered only by means of executive orders issued pursuant to this act.
            76343         Section 1712. Section 63K-2-204 , which is renumbered from Section 63-53a-6 is
            76344     renumbered and amended to read:
            76345          [63-53a-6].     63K-2-204. Proclamation of emergency -- Effective period --
            76346      Extension of renewal by Legislature.
            76347         (1) (a) The governor may issue a proclamation declaring that a state of emergency
            76348     exists with regard to one or more energy resources if the governor determines that an existing
            76349     or imminent severe disruption or impending shortage in the supply of one or more energy
            76350     resources, in this state or elsewhere:
            76351         (i) threatens:
            76352         (A) the availability of essential services or transportation; or
            76353         (B) the operation of the economy; and
            76354         (ii) because of the threats described in Subsection (1)(a)(i), jeopardizes the peace,
            76355     health, safety, and welfare of the people of this state.
            76356         (b) The proclamation declaring a state of emergency described in Subsection (1)(a) shall
            76357     state with specificity the nature of the disruption or shortage in an energy resource.

            76358         (c) (i) Within seven calendar days of the day on which the governor issues a
            76359     proclamation declaring a state of emergency under this section, the Legislative Management
            76360     Committee shall:
            76361         (A) review the proclamation; and
            76362         (B) advise the governor on the proclamation.
            76363         (ii) The failure of the Legislative Management Committee to meet as required by
            76364     Subsection (1)(c)(i) does not affect the validity of the proclamation declaring a state of
            76365     emergency.
            76366         (2) (a) A proclamation issued under this section, and any order or rule issued as a result
            76367     of the proclamation shall continue in effect until 60 days from the date of the proclamation of
            76368     the state of emergency unless the governor rescinds the proclamation and declares the
            76369     emergency ended prior to the expiration of this 60-day period.
            76370         (b) A proclamation issued within 30 days of the expiration of a prior proclamation for
            76371     the same emergency shall be considered a renewal or extension subject to Subsection (3).
            76372         (3) A proclamation may be renewed or extended only by joint resolution of the
            76373     Legislature.
            76374         Section 1713. Section 63K-2-205 , which is renumbered from Section 63-53a-7 is
            76375     renumbered and amended to read:
            76376          [63-53a-7].     63K-2-205. Curtailment, adjustment and allocation of energy use
            76377      by executive orders -- Limitations and considerations in issuance and application.
            76378         (1) Upon issuance of a proclamation pursuant to Section [ 63-53a-6 ] 63K-2-204 , the
            76379     governor in addition may by executive order:
            76380         (a) require reduction in energy resource usage and the application of conservation,
            76381     prevention of waste, and the salvaging of energy resources and the materials, services, and
            76382     facilities derived therefrom or dependent thereon, by state agencies and political subdivisions in
            76383     this state;
            76384         (b) direct the establishment by state agencies and political subdivisions in this state of
            76385     programs necessary to implement and comply with federal energy conservation programs where

            76386     these programs have not theretofore been so established, including, but not limited to, allocation
            76387     or rationing of energy resources and the distribution of the state's discretionary allotments;
            76388         (c) require involuntary curtailments, adjustments, or allocations in the supply and
            76389     consumption of energy resources applicable to all suppliers and consumers including, but not
            76390     limited to, specification of the times and manner in which these resources are supplied or
            76391     consumed; or
            76392         (d) prescribe and direct activities promoting the conservation, prevention of waste, and
            76393     salvage of energy resources and the materials, services, and facilities derived therefrom or
            76394     dependent thereon, including, but not limited to, the modification of transportation routes and
            76395     schedules, or the suspension of weight limits or other restrictions from the transportation of
            76396     energy resources, to the extent permissible under federal law and regulations.
            76397         (2) Any restrictions, curtailments, adjustments, or allocations pursuant to Subsection
            76398     (1) shall:
            76399         (a) be ordered and continue only so long as demonstrably necessary for the maintenance
            76400     of essential services or transportation, or the continued operation of the economy but no longer
            76401     than the duration of the proclamation;
            76402         (b) be applied as uniformly as practicable within each class of suppliers and consumers
            76403     and without discrimination within a class; and
            76404         (c) give due consideration to the needs of commercial, retail, professional, and service
            76405     establishments whose normal function is to supply goods or services or both of an essential
            76406     nature, including, but not limited to, food, lodging, fuel, or medical care facilities during times
            76407     of the day other than conventional daytime working hours.
            76408         Section 1714. Section 63K-2-206 , which is renumbered from Section 63-53a-10 is
            76409     renumbered and amended to read:
            76410          [63-53a-10].     63K-2-206. Other emergency powers of governor unaffected.
            76411         The powers vested in the governor under this act shall be in addition to, and not in lieu
            76412     of, any other emergency powers otherwise constitutionally or statutorily vested in the governor.
            76413         Section 1715. Section 63K-2-301 , which is renumbered from Section 63-53a-8 is

            76414     renumbered and amended to read:
            76415     
Part 3. Implementation and Orders

            76416          [63-53a-8].     63K-2-301. Existing agencies to be used in implementation.
            76417         The governor shall use, to the extent practicable, existing state boards, commissions, or
            76418     agencies or officers or employees for the purpose of carrying out the provisions of this act.
            76419         Section 1716. Section 63K-2-302 , which is renumbered from Section 63-53a-9 is
            76420     renumbered and amended to read:
            76421          [63-53a-9].     63K-2-302. Enforcement of orders and rules.
            76422         The governor may apply to any district court for appropriate equitable relief against any
            76423     person violating or failing to carry out the provisions of this act or any order or rule issued
            76424     pursuant to this act.
            76425         Section 1717. Section 63K-2-303 , which is renumbered from Section 63-53a-11 is
            76426     renumbered and amended to read:
            76427          [63-53a-11].     63K-2-303. Rules and regulations -- Approval by
            76428      Legislature.
            76429         The board, commission, or agency designated by the governor for carrying out the
            76430     provisions of this act is authorized to promulgate such rules and regulations as are necessary for
            76431     effective administration of this act with approval of the Legislature.
            76432         Section 1718. Section 63K-3-101 is enacted to read:
            76433     
CHAPTER 3. EMERGENCY MANAGEMENT ACT

            76434     
Part 1. General Provisions

            76435          63K-3-101. Title.
            76436         This chapter is known as the "Emergency Management Act."
            76437         Section 1719. Section 63K-3-102 , which is renumbered from Section 63-5-2 is
            76438     renumbered and amended to read:
            76439          [63-5-2].     63K-3-102. Definitions.
            76440         As used in this chapter:
            76441         (1) "Disaster" means a situation causing, or threatening to cause, widespread damage,

            76442     social disruption, or injury or loss of life or property resulting from attack, internal disturbance,
            76443     natural phenomena or technological hazard.
            76444         (2) "Attack" means a nuclear, conventional, biological, or chemical warfare action
            76445     against the United States of America or this state.
            76446         (3) "Internal disturbance" means a riot, prison break, disruptive terrorism or strike.
            76447         (4) "Natural phenomena" means any earthquake, tornado, storm, flood, landslide,
            76448     avalanche, forest or range fire, drought, or epidemic.
            76449         (5) "Technological hazard" means any hazardous materials accident, mine accident,
            76450     train derailment, air crash, radiation incident, pollution, structural fire or explosion.
            76451         Section 1720. Section 63K-3-201 , which is renumbered from Section 63-5-4 is
            76452     renumbered and amended to read:
            76453     
Part 2. Advisory Counsel

            76454          [63-5-4].     63K-3-201. Disaster Emergency Advisory Council created --
            76455      Function -- Composition -- Expenses.
            76456         (1) A Disaster Emergency Advisory Council is created to provide advice to the
            76457     governor on matters relating to state government emergency disaster response and recovery
            76458     actions and activities.
            76459         (2) The council shall meet at the call of the governor.
            76460         (3) The Disaster Emergency Advisory Council comprises the:
            76461         (a) lieutenant governor;
            76462         (b) attorney general;
            76463         (c) president of the Senate;
            76464         (d) speaker of the House of Representatives;
            76465         (e) heads of the following state agencies:
            76466         (i) Public Safety;
            76467         (ii) Division of Homeland Security;
            76468         (iii) Building Board; and
            76469         (iv) Governor's Office of Planning and Budget;

            76470         (f) executive directors of the following departments:
            76471         (i) Transportation;
            76472         (ii) Human Services;
            76473         (iii) Health;
            76474         (iv) Environmental Quality;
            76475         (v) Community and Economic Development; and
            76476         (vi) Natural Resources;
            76477         (g) representative of the National Guard appointed by the governor with the consent of
            76478     the Senate;
            76479         (h) commissioner of agriculture and food;
            76480         (i) state planning coordinator; and
            76481         (j) representatives from two statewide, nongovernmental service organizations
            76482     appointed by the governor with the consent of the Senate.
            76483         (4) The commissioner of Public Safety shall serve as the chair of the council.
            76484         (5) (a) (i) State government officer and employee members who do not receive salary,
            76485     per diem, or expenses from their agency for their service may receive per diem and expenses
            76486     incurred in the performance of their official duties from the council at the rates established by
            76487     the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            76488         (ii) State government officer and employee members may decline to receive per diem
            76489     and expenses for their service.
            76490         (b) Legislators on the committee shall receive compensation and expenses as provided
            76491     by law and legislative rule.
            76492         Section 1721. Section 63K-3-301 , which is renumbered from Section 63-5-5 is
            76493     renumbered and amended to read:
            76494     
Part 3. Hazardous Chemical Emergency Response Commission

            76495          [63-5-5].     63K-3-301. Hazardous Chemical Emergency Response Commission
            76496      -- Allocation of responsibilities -- Local planning committees -- Specified federal law
            76497      considered law of state -- Application to federal agencies and facilities.

            76498         (1) (a) The commissioner of the Department of Public Safety and the executive director
            76499     of the Department of Environmental Quality, or their respective designees, are designated as the
            76500     state's Hazardous Chemical Emergency Response Commission for purposes of carrying out all
            76501     requirements of the federal Emergency Planning and Community Right To Know Act of 1986.
            76502         (b) (i) State government officer and employee members who do not receive salary, per
            76503     diem, or expenses from their agency for their service may receive per diem and expenses
            76504     incurred in the performance of their official duties from the commission at the rates established
            76505     by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            76506         (ii) State government officer and employee members may decline to receive per diem
            76507     and expenses for their service.
            76508         (2) The Department of Public Safety has primary responsibility for all emergency
            76509     planning activities under the federal Emergency Planning and Community Right To Know Act
            76510     of 1986, and shall prepare policy and procedure and make rules necessary for implementation of
            76511     that act in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
            76512     Rulemaking Act.
            76513         (3) The Department of Environmental Quality has primary responsibility for receiving,
            76514     processing, and managing hazardous chemical information and notifications under the federal
            76515     Emergency Planning and Community Right To Know Act of 1986, including preparation of
            76516     policy and procedure, and promulgation of rules necessary for implementation of that act.
            76517     Funding for this program must be from the appropriation acts.
            76518         (4) The Department of Public Safety and the Department of Environmental Quality shall
            76519     enter into an interagency agreement providing for exchange of information and coordination of
            76520     their respective duties and responsibilities under this section.
            76521         (5) (a) The Hazardous Chemical Emergency Response Commission shall appoint a local
            76522     planning committee for each local planning district that it establishes, as required by the federal
            76523     Emergency Planning and Community Right To Know Act of 1986, and to the extent possible,
            76524     shall use an existing local governmental organization as the local planning committee.
            76525         (b) (i) Local government members who do not receive salary, per diem, or expenses

            76526     from the entity that they represent for their service may receive per diem and expenses incurred
            76527     in the performance of their official duties at the rates established by the Division of Finance
            76528     under Sections 63A-3-106 and 63A-3-107 .
            76529         (ii) Local government members may decline to receive per diem and expenses for their
            76530     service.
            76531         (6) Requirements of the federal Emergency Planning and Community Right To Know
            76532     Act of 1986 pertaining to notification and submission of information are the law of this state,
            76533     and apply equally to federal agencies, departments, installations, and facilities located in this
            76534     state, as well as to other facilities that are subject to that act.
            76535         Section 1722. Section 63K-4-101 is enacted to read:
            76536     
CHAPTER 4. DISASTER RESPONSE AND RECOVERY ACT

            76537     
Part 1. General Provisions

            76538          63K-4-101. Title.
            76539         This chapter is known as the "Disaster Response and Recovery Act."
            76540         Section 1723. Section 63K-4-102 , which is renumbered from Section 63-5a-1 is
            76541     renumbered and amended to read:
            76542          [63-5a-1].     63K-4-102. Legislative findings -- Purpose -- Short title.
            76543         (1) The legislature finds that existing and increasing threats of the occurrence of
            76544     destructive disasters resulting from attack, internal disturbance, natural phenomenon or
            76545     technological hazard could greatly affect the health, safety and welfare of the people of this
            76546     state, and it is therefore necessary to grant to the governor of this state and its political
            76547     subdivisions special emergency disaster authority.
            76548         (2) It is the purpose of this act to assist the governor of this state and its political
            76549     subdivisions to effectively provide emergency disaster response and recovery assistance in order
            76550     to protect the lives and property of the people. This act shall be known and cited as the
            76551     "Disaster Response and Recovery Act."
            76552         Section 1724. Section 63K-4-103 , which is renumbered from Section 63-5a-2 is
            76553     renumbered and amended to read:

            76554          [63-5a-2].     63K-4-103. Definitions.
            76555         (1) "Attack" means a nuclear, conventional, biological, or chemical warfare action
            76556     against the United States of America or this state.
            76557         (2) "Chief executive officer" means:
            76558         (a) for a municipality:
            76559         (i) the mayor for a municipality operating under all forms of municipal government
            76560     except the council-manager form of government; or
            76561         (ii) the city manager for a municipality operating under the council-manager form of
            76562     government; or
            76563         (b) for a county:
            76564         (i) the chair of the county commission for a county operating under the county
            76565     commission or expanded county commission form of government;
            76566         (ii) the county executive officer for a county operating under the county-executive
            76567     council form of government; or
            76568         (iii) the county manager for a county operating under the council-manager form of
            76569     government.
            76570         (3) "Disaster" means a situation causing, or threatening to cause, widespread damage,
            76571     social disruption, or injury or loss of life or property resulting from attack, internal disturbance,
            76572     natural phenomenon or technological hazard.
            76573         (4) "Internal disturbance" means a riot, prison break, disruptive terrorism or strike.
            76574         (5) "Local emergency" means a condition in any political subdivision of the state which
            76575     requires that emergency assistance be provided by the affected political subdivision to save lives
            76576     and protect property within its jurisdiction in response to a disaster, or to avoid or reduce the
            76577     threat of a disaster.
            76578         (6) "Natural phenomenon" means any earthquake, tornado, storm, flood, landslide,
            76579     avalanche, forest or range fire, drought, or epidemic.
            76580         (7) "Political subdivision" means municipality or county.
            76581         (8) "State of emergency" means a condition in any part of this state which requires state

            76582     government emergency assistance to supplement the local efforts of the affected political
            76583     subdivision to save lives and to protect property, public health, welfare, and safety in the event
            76584     of a disaster or to avoid or reduce the threat of a disaster.
            76585         (9) "Technological hazard" means any hazardous materials accident, mine accident,
            76586     train derailment, truck wreck, air crash, radiation incident, pollution, structural fire or explosion.
            76587         Section 1725. Section 63K-4-201 , which is renumbered from Section 63-5a-3 is
            76588     renumbered and amended to read:
            76589     
Part 2. States of Emergency

            76590          [63-5a-3].     63K-4-201. Authority of governor -- Federal assistance -- Fraud in
            76591      application for financial assistance -- Penalty.
            76592         (1) In addition to any other authorities conferred upon the governor, the governor
            76593     during the declared state of emergency is authorized and empowered to:
            76594         (a) utilize all available resources of state government as reasonably necessary to cope
            76595     with a "state of emergency";
            76596         (b) employ measures and give direction to state and local officers and agencies which
            76597     are reasonable and necessary for the purpose of securing compliance with the provisions of this
            76598     act and with orders, rules and regulations made pursuant to this act;
            76599         (c) recommend and advise the evacuation of all or part of the population from any
            76600     stricken or threatened area within the state if necessary for the preservation of life;
            76601         (d) recommend routes, modes of transportation, and destination in connection with
            76602     evacuation;
            76603         (e) in connection with evacuation suspend or limit the sale, dispensing, or transportation
            76604     of alcoholic beverages, explosives, and combustibles, not to include the lawful bearing of arms;
            76605         (f) control ingress and egress to and from a disaster area, the movement of persons
            76606     within the area, and recommend the occupancy or evacuation of premises in a disaster area;
            76607         (g) clear or remove from publicly or privately owned land or water through the use of
            76608     state departments or agencies, debris or wreckage which may threaten public health, public
            76609     safety, or private property as hereinafter provided:

            76610         (i) whenever the governor provides for clearance of debris or wreckage pursuant to this
            76611     subsection, employees of the designated state agencies are authorized to enter upon private land
            76612     or waters and perform any tasks necessary for the removal or clearance operation;
            76613         (ii) authority under this subsection shall not be exercised unless the affected political
            76614     subdivision, corporation, organization or individual shall first present an unconditional
            76615     authorization for removal of such debris or wreckage from private property and agree to
            76616     indemnify the state government against any claim arising from such removal;
            76617         (h) recommend to the legislature additional action [he] the governor deems necessary to
            76618     carry out the provisions of this act.
            76619         (2) When the governor has proclaimed a "state of emergency" under this act and when
            76620     the president of the United States, at the request of the governor, has declared an "emergency"
            76621     or a "major disaster" to exist in this state, the governor is authorized:
            76622         (a) to enter into agreement with any agency of the United States for temporary housing
            76623     units to be occupied by disaster victims and to make such units available to any political
            76624     subdivision of this state;
            76625         (b) to assist any political subdivision of this state to acquire sites and utilities necessary
            76626     for such temporary housing by passing through any funds made available to the governor by an
            76627     agency of the United States for this purpose;
            76628         (c) to temporarily suspend or modify by proclamation, during the period of the
            76629     emergency, any public health, safety, zoning, transportation or other requirement of the law or
            76630     regulation within this state if such action is essential to provide temporary housing for disaster
            76631     victims;
            76632         (d) upon determination that a political subdivision of the state will suffer a substantial
            76633     loss of tax and other revenues because of a disaster and the political subdivision so affected has
            76634     demonstrated a need for financial assistance to perform its governmental functions, in
            76635     accordance with the provisions of the Utah Constitution, Article XIV, Sections 3 and 4, and
            76636     Section 10-8-6 , to apply to the federal government for a loan on behalf of the political
            76637     subdivision, and to receive and disburse the proceeds to the applicant political subdivision. No

            76638     application amount shall exceed 25% of the annual operating budget of the applicant political
            76639     subdivision for the fiscal year in which the disaster occurs;
            76640         (e) to accept funds from the federal government and make grants to any political
            76641     subdivision for the purpose of removing debris or wreckage from publicly owned land or water;
            76642         (f) upon determination that financial assistance is essential to meet disaster related
            76643     expenses of individuals or families adversely affected by a disaster which cannot be sufficiently
            76644     met from other means of assistance, to apply for, accept and expend a grant by the federal
            76645     government to fund such financial assistance, subject to the terms and conditions imposed upon
            76646     the grant.
            76647         (3) Any person who fraudulently or willfully makes a misstatement of fact in connection
            76648     with an application for financial assistance under this section shall, upon conviction of each
            76649     offense, be subject to a fine of not more than $5,000 or imprisonment for not more than one
            76650     year, or both.
            76651         Section 1726. Section 63K-4-202 , which is renumbered from Section 63-5a-4 is
            76652     renumbered and amended to read:
            76653          [63-5a-4].     63K-4-202. Authority of chief executive officers of political
            76654      subdivisions -- Ordering of evacuations.
            76655         (1) (a) In order to protect life and property when a state of emergency or local
            76656     emergency has been declared, the chief executive officer of each political subdivision of the
            76657     state is authorized to:
            76658         (i) carry out, in the chief executive officer's jurisdiction, the measures as may be ordered
            76659     by the governor under this chapter; and
            76660         (ii) take any additional measures the chief executive officer may consider necessary,
            76661     subject to the limitations and provisions of this chapter.
            76662         (b) The chief executive officer may not take an action that is inconsistent with any
            76663     order, rule, regulation, or action of the governor.
            76664         (2) When a state of emergency or local emergency is declared, the authority of the chief
            76665     executive officer includes:

            76666         (a) utilizing all available resources of the political subdivision as reasonably necessary to
            76667     manage a state of emergency or local emergency;
            76668         (b) employing measures and giving direction to local officers and agencies which are
            76669     reasonable and necessary for the purpose of securing compliance with the provisions of this
            76670     chapter and with orders, rules, and regulations made under this chapter;
            76671         (c) if necessary for the preservation of life, issuing an order for the evacuation of all or
            76672     part of the population from any stricken or threatened area within the political subdivision;
            76673         (d) recommending routes, modes of transportation, and destinations in relation to an
            76674     evacuation;
            76675         (e) suspending or limiting the sale, dispensing, or transportation of alcoholic beverages,
            76676     explosives, and combustibles in relation to an evacuation, except that the chief executive officer
            76677     may not restrict the lawful bearing of arms;
            76678         (f) controlling ingress and egress to and from a disaster area, controlling the movement
            76679     of persons within a disaster area, and ordering the occupancy or evacuation of premises in a
            76680     disaster area;
            76681         (g) clearing or removing debris or wreckage that may threaten public health, public
            76682     safety, or private property from publicly or privately owned land or waters, except that where
            76683     there is no immediate threat to public health or safety, the chief executive officer shall not
            76684     exercise this authority in relation to privately owned land or waters unless:
            76685         (i) the owner authorizes the employees of designated local agencies to enter upon the
            76686     private land or waters to perform any tasks necessary for the removal or clearance; and
            76687         (ii) the owner provides an unconditional authorization for removal of the debris or
            76688     wreckage and agrees to indemnify the local and state government against any claim arising from
            76689     the removal; and
            76690         (h) invoking the provisions of any mutual aid agreement entered into by the political
            76691     subdivision.
            76692         (3) (a) If the chief executive is unavailable to issue an order for evacuation under
            76693     Subsection (2)(c), the chief law enforcement officer having jurisdiction for the area may issue an

            76694     urgent order for evacuation, for a period not to exceed 36 hours, if the order is necessary for
            76695     the preservation of life.
            76696         (b) The chief executive officer may ratify, modify, or revoke the chief law enforcement
            76697     officer's order.
            76698         (4) Notice of an order or the ratification, modification, or revocation of an order issued
            76699     under this section shall be:
            76700         (a) given to the persons within the jurisdiction by the most effective and reasonable
            76701     means available; and
            76702         (b) filed in accordance with Subsection [ 63-5a-7 ] 63K-4-401 (1).
            76703         Section 1727. Section 63K-4-203 , which is renumbered from Section 63-5a-5 is
            76704     renumbered and amended to read:
            76705          [63-5a-5].     63K-4-203. State of emergency -- Declaration -- Termination --
            76706      Commander-in-chief of military forces.
            76707         (1) A "state of emergency" may be declared by proclamation of the governor after a
            76708     proclamation of local emergency as provided under Section [ 63-5a-6 ] 63K-4-301 if the
            76709     governor finds a disaster has occurred or the occurrence or threat of a disaster is imminent in
            76710     any area of the state in which state government assistance is required to supplement the
            76711     response and recovery efforts of the affected political subdivision or political subdivisions. The
            76712     "state of emergency" shall continue until the governor finds the threat or danger has passed or
            76713     the disaster reduced to the extent that emergency conditions no longer exist. No "state of
            76714     emergency" may continue for longer than 30 days unless extended by joint resolution of the
            76715     Legislature, which may also terminate a "state of emergency" by joint resolution at any time.
            76716     The governor shall issue an executive order or proclamation ending the "state of emergency" on
            76717     receipt of the Legislature's resolution. All executive orders or proclamations issued under this
            76718     subsection shall state:
            76719         (a) the nature of the "state of emergency";
            76720         (b) the area or areas threatened;
            76721         (c) the conditions creating such an emergency or those conditions allowing termination

            76722     of the "state of emergency."
            76723         (2) During the continuance of any "state of emergency" the governor is
            76724     commander-in-chief of the military forces of the state in accordance with the provisions of
            76725     Article VII, Section 4, of the Constitution of Utah, and Title 39, Chapter 1.
            76726         Section 1728. Section 63K-4-301 , which is renumbered from Section 63-5a-6 is
            76727     renumbered and amended to read:
            76728     
Part 3. Local Emergencies

            76729          [63-5a-6].     63K-4-301. Local emergency -- Declarations.
            76730         (1) (a) A local emergency may be declared by proclamation of the chief executive
            76731     officer of a political subdivision.
            76732         (b) A local emergency shall not be continued or renewed for a period in excess of 30
            76733     days except by or with the consent of the governing body of the political subdivision.
            76734         (c) Any order or proclamation declaring, continuing, or terminating a local emergency
            76735     shall be filed promptly with the office of the clerk of the affected political subdivision.
            76736         (2) A declaration of a local emergency:
            76737         (a) constitutes an official recognition that a disaster situation exists within the affected
            76738     political subdivision;
            76739         (b) provides a legal basis for requesting and obtaining state or federal government
            76740     disaster assistance;
            76741         (c) activates the response and recovery aspects of any and all applicable local disaster
            76742     emergency plans; and
            76743         (d) authorizes the furnishing of aid and assistance in relation to the proclamation.
            76744         (3) A local emergency proclamation issued under this section shall state:
            76745         (a) the nature of the local emergency;
            76746         (b) the area or areas that are affected or threatened; and
            76747         (c) the conditions which caused the emergency.
            76748         Section 1729. Section 63K-4-401 , which is renumbered from Section 63-5a-7 is
            76749     renumbered and amended to read:

            76750     
Part 4. Powers and Orders

            76751          [63-5a-7].     63K-4-401. Orders, rules, and regulations having force of law --
            76752      Filing requirements -- Suspension of state agency rules.
            76753         (1) All orders, rules, and regulations promulgated by the governor, a political
            76754     subdivision, or other agency authorized by this act to make orders, rules, and regulations, not in
            76755     conflict with existing laws except as specifically provided herein, shall have the full force and
            76756     effect of law during the state of emergency, when a copy of the order, rule, or regulation is filed
            76757     with:
            76758         (a) the Division of Administrative Rules, if issued by the governor or a state agency; or
            76759         (b) the office of the clerk of the political subdivision, if issued by the chief executive
            76760     officer of a political subdivision of the state or agency of the state.
            76761         (2) The governor may suspend the provisions of any order, rule, or regulation of any
            76762     state agency, if the strict compliance with the provisions of the order, rule, or regulation would
            76763     substantially prevent, hinder, or delay necessary action in coping with the emergency or disaster.
            76764         Section 1730. Section 63K-4-402 , which is renumbered from Section 63-5a-8 is
            76765     renumbered and amended to read:
            76766          [63-5a-8].     63K-4-402. Acquisition of property for public use -- Compensation
            76767      of owners.
            76768         (1) (a) Upon proclamation of a state of emergency, the governor may purchase or lease
            76769     public or private property for public use including:
            76770         (i) food and medical supplies;
            76771         (ii) clothing;
            76772         (iii) shelter;
            76773         (iv) means of transportation;
            76774         (v) fuels;
            76775         (vi) oils; or
            76776         (vii) buildings or lands.
            76777         (b) The governor may not purchase private home storage nor privately owned arms.

            76778         (2) (a) The governor may use property purchased under authority of this section for any
            76779     purpose to meet the needs of an emergency, including its use to relieve want, distress, and
            76780     disease.
            76781         (b) Any property used by the governor to meet the needs of an emergency is a public
            76782     use.
            76783         (3) (a) The governor shall compensate the owner of property taken or used under
            76784     authority of this section by complying with the procedures established in Title 78, Chapter 34,
            76785     Eminent Domain.
            76786         (b) The governor shall pay for those purchases or leases from the funds available to the
            76787     Division of Homeland Security under:
            76788         (i) this chapter; or
            76789         (ii) Title 53, Chapter 2, Part 4, Disaster Recovery Funding Act, to the extent provided
            76790     for in that chapter.
            76791         (4) Nothing in this section applies to or authorizes compensation for the destruction or
            76792     damage of standing timber or other property in order to provide a fire break or to the release of
            76793     waters or the breach of impoundments in order to reduce pressure or other danger from actual
            76794     or threatened flood.
            76795         Section 1731. Section 63K-4-403 , which is renumbered from Section 63-5a-9 is
            76796     renumbered and amended to read:
            76797          [63-5a-9].     63K-4-403. Interstate agreements authorized -- Termination --
            76798      Mutual-aid compacts between subdivisions.
            76799         (1) The governor is authorized to execute an interstate agreement or compact on behalf
            76800     of this state with any other state or states only consistent with the powers herein granted
            76801     concerning matters relating to a disaster affecting or likely to affect this state.
            76802         (2) The agreement or compact shall continue in force and remain binding on each party
            76803     state until the Legislature or the governor of such party state takes action to withdraw
            76804     therefrom. Such action shall not be effective until 30 days after notice thereof has been sent by
            76805     the governor of such party state desiring to withdraw to the governors of all other party states.

            76806         (3) Political subdivisions are authorized to enter into mutual-aid compacts with other
            76807     political subdivisions within the state of Utah concerning matters involving cooperative disaster
            76808     response and recovery assistance support, consistent with this act.
            76809         Section 1732. Section 63K-4-404 , which is renumbered from Section 63-5a-11 is
            76810     renumbered and amended to read:
            76811          [63-5a-11].     63K-4-404. Authority additional to other emergency authority.
            76812         The special disaster emergency authority vested in the governor and political
            76813     subdivisions of the state pursuant to this act shall be in addition to, and not in lieu of, any other
            76814     emergency authority otherwise constitutionally or statutorily vested in the governor and political
            76815     subdivisions of the state.
            76816         Section 1733. Section 63L-1-101 is enacted to read:
            76817     
TITLE 63L. LANDS

            76818     
CHAPTER 1. FEDERAL JURISDICTION

            76819     
Part 1. General Provisions

            76820          63L-1-101. Title.
            76821         (1) This title is known as "Lands."
            76822         (2) This chapter is known as "Federal Jurisdiction."
            76823         Section 1734. Section 63L-1-201 , which is renumbered from Section 63-8-1 is
            76824     renumbered and amended to read:
            76825     
Part 2. Federal and State Jurisdiction

            76826          [63-8-1].     63L-1-201. Jurisdiction over land acquired by United States --
            76827      Reservations by state -- Duration of jurisdiction.
            76828         Jurisdiction is hereby ceded to the United States in, to and over any and all lands or
            76829     territory within this state which have heretofore been acquired by the United States by purchase,
            76830     condemnation or otherwise for military or naval purposes and for forts, magazines, arsenals,
            76831     dockyards and other needful buildings of every kind whenever authorized by Act of Congress,
            76832     and in, to and over any and all lands or territory within this state now held by the United States
            76833     under lease, use permit, or reserved from the public domain for any of the purposes aforesaid;

            76834     this state, however, reserving the right to execute its process, both criminal and civil, within
            76835     such territory. The jurisdiction so ceded shall continue so long as the United States shall own,
            76836     hold or reserve land for any of the aforesaid purposes, or in connection therewith, and no
            76837     longer.
            76838         Section 1735. Section 63L-1-202 , which is renumbered from Section 63-8-2 is
            76839     renumbered and amended to read:
            76840          [63-8-2].     63L-1-202. Governor to execute conveyances.
            76841         The governor is hereby authorized and empowered to execute all proper conveyances in
            76842     the cession herein granted, upon request of the United States or the proper officers thereof,
            76843     whenever any land shall have been acquired, leased, used, or reserved from the public domain
            76844     for such purposes.
            76845         Section 1736. Section 63L-1-203 , which is renumbered from Section 63-8-3 is
            76846     renumbered and amended to read:
            76847          [63-8-3].     63L-1-203. Jurisdiction over certain military reservations ceded --
            76848      Reservation.
            76849         Jurisdiction is ceded to the United States in and over all lands comprised within the
            76850     limits of the military reservations of Fort Douglas and Fort Duchesne in this state, to continue
            76851     so long as the United States shall hold and own the same for military purposes or in connection
            76852     therewith, and no longer; reserving, however, to this state the right to serve all civil process and
            76853     such criminal process as may lawfully issue under the authority of this state against persons
            76854     charged with crimes against the laws of this state committed within or without said reservations.
            76855         Section 1737. Section 63L-1-204 , which is renumbered from Section 63-8-4 is
            76856     renumbered and amended to read:
            76857          [63-8-4].     63L-1-204. Concurrent jurisdiction with United States -- Taxation
            76858      of businesses on federal lands.
            76859         (1) The state of Utah retains concurrent jurisdiction, both civil and criminal, with the
            76860     United States over all lands affected by this act.
            76861         (2) The state and all of its political subdivisions also reserve the right to impose taxes

            76862     on individuals, partnerships, corporations, associations, and all other business entities doing
            76863     business on the lands affected by this chapter in respect to such business or on any property of
            76864     these entities situated on these lands.
            76865         Section 1738. Section 63L-1-205 , which is renumbered from Section 63-8-5 is
            76866     renumbered and amended to read:
            76867          [63-8-5].     63L-1-205. Concurrent jurisdiction over certain minor violations at
            76868      Dugway Proving Ground.
            76869         The state of Utah hereby cedes to the United States, retaining also the same to itself,
            76870     concurrent jurisdiction over class B and C misdemeanors and traffic violations no more serious
            76871     than a class B misdemeanor within the following described boundaries in the Counties of Tooele
            76872     and Juab, State of Utah, in the Salt Lake Meridian:
            76873         BEGINNING at the NE corner of Section 1, T8S, R9W;
            76874         1. Thence, South along the Range line between R8W and R9W, 9 miles and 2.57 chains
            76875     to the SE corner of Section 13, T9S, R9W;
            76876         2. Thence, West, along the South line of Sections 13, 14, 15 and 16, T9S, R9W, 4
            76877     miles to the NE corner of Section 20, T9S, R9W;
            76878         3. Thence, South, along the East line of said Section 20 to the SE corner of said
            76879     Section 20;
            76880         4. Thence, Southwesterly in a straight line to the Southwest corner of Section 31,
            76881     T10S, R10W;
            76882         5. Thence, continuing Southwesterly along said line to a point in Section 1, T11S,
            76883     R11W, said point bears 0.7 mile along said Southwesterly line from the SW corner of said
            76884     Section 31;
            76885         6. Thence, Northwesterly, in a straight line from said point, to the SW corner of Section
            76886     34, T9S, R11W;
            76887         7. Thence, North along the West line of said Section 34 to the NW corner of said
            76888     Section 34;
            76889         8. Thence, West along the South line of Sections 28 and 29, T9S, R11W, to the SE

            76890     corner of Section 30, T9S, R11W;
            76891         9. Thence, Northwest in a straight line to the NE corner of Section 23, T9S, R12W;
            76892         10. Thence, West along the North line of Sections 23, 22, and projected Sections 21,
            76893     20 and 19 to the Range line between R12W and R13W;
            76894         11. Thence, South along said Range line to the South line of T10S;
            76895         12. Thence, West along last said Township line to the Range line common to R16W
            76896     and R17W;
            76897         13. Thence, North along last said Range line to the West quarter corner of Section 6,
            76898     T10S, R16W;
            76899         14. Thence, East along the East-West centerline of said Section 6 to the North-South
            76900     centerline of said Section 6;
            76901         15. Thence, North along said North-South centerline to the North quarter corner of
            76902     said Section 6;
            76903         16. Thence, East along the North line of said Section 6 to the NE corner of said Section
            76904     6;
            76905         17. Thence, North along the East line of Section 31, T9S, R16W, to the NE corner of
            76906     the SE 1/4 SE 1/4 of said Section 31;
            76907         18. Thence, West along the North line of the S 1/2 S 1/2 of last said Section 31, T9S,
            76908     R16W, to the West line of said Section 31;
            76909         19. Thence, North along said West line to the East-West line of last said Section 31;
            76910         20. Thence, East along said East-West line to the SE corner of the SW 1/4 NW 1/4 of
            76911     last said Section 31;
            76912         21. Thence, North along the East line of said SW 1/4 NW 1/4 to the NE corner of SW
            76913     1/4 NW 1/4 of last said Section 31;
            76914         22. Thence, West along the North line of said SW 1/4 NW 1/4 to the NW corner of
            76915     said SW 1/4 NW 1/4 of last said Section 31, said corner also being on the Range line common
            76916     to R16W and R17W;
            76917         23. Thence, North along last said Range line to the NW corner of Section 6, T6S,

            76918     R16W;
            76919         24. Thence, East along the North line of T6S to the NE corner of Section 1, T6S,
            76920     R13W;
            76921         25. Thence, North along the West line of R13W to the NW corner of Section 6, T6S,
            76922     R12W;
            76923         26. Thence, East along the North line of T6S to the NE corner of Section 1, T6S,
            76924     R12W;
            76925         27. Thence, North along the Range line between R11W and R12W, 5 miles and 37.68
            76926     chains to the closing corner of T5S, R11W and T5S, R12W, said corner bears East 10.97 chains
            76927     from the standard corner of T4S, R11W and T4S, R12W;
            76928         28. Thence, East along the Township line common to T4S and T5S, 6 miles and 74.49
            76929     chains to the divide crest of the Cedar Mountain Range;
            76930         29. Thence, Southeasterly, along or near the crest of the Cedar Mountain Range
            76931     through T5S, R10W, T6S, R10W, and T6S, R9W, the following courses:
            76932         30. Thence, S 1° 29' W, 69.63 chains;
            76933         31. Thence, S 4° 18' E, 94.83 chains;
            76934         32. Thence, S 5° 21' E, 87.44 chains;
            76935         33. Thence, S 63° 27' E, 26.60 chains;
            76936         34. Thence, S 17° 15' E, 70.51 chains;
            76937         35. Thence, S 55° 37' E, 132.09 chains;
            76938         36. Thence, S 56° 22' E, 108.71 chains;
            76939         37. Thence, S 24° 31' E, 20.92 chains; to a point which bears West, 125.29 chains from
            76940     the SW corner of T5S, R9W;
            76941         38. Thence, S 28° 06' E, 70.05 chains;
            76942         39. Thence, S 69° 15' E, 26.73 chains;
            76943         40. Thence, S 41° 32' E, 55.35 chains;
            76944         41. Thence, N 89° 19' E, 30.79 chains;
            76945         42. Thence, S 25° 40' E, 36.19 chains;

            76946         43. Thence, N 66° 24' E, 56.38 chains;
            76947         44. Thence, S 63° 17' E, 76.05 chains;
            76948         45. Thence, S 38° 48' E, 29.84 chains;
            76949         46. Thence, S 82° 20' E, 71.44 chains;
            76950         47. Thence, S 35° 07' E, 32.82 chains;
            76951         48. Thence, S 36° 24' W, 18.77 chains;
            76952         49. Thence, S 01° 41' W, 61.73 chains;
            76953         50. Thence, N 65° 19' E, 25.68 chains;
            76954         51. Thence, S 52° 59' E, 41.19 chains;
            76955         52. Thence, N 85° 57' E, 44.22 chains;
            76956         53. Thence, S 58° 52' E, 69.09 chains;
            76957         54. Thence, S 82° 14' E, 46.21 chains;
            76958         55. Thence, S 26° 06' E, 74.82 chains;
            76959         56. Thence, S 88° 42' E, 14.59 chains to a point on the Range line common to R8W
            76960     and R9W, said point bears South 12.78 chains from the NW corner of Section 31, T6S, R8W;
            76961         57. Thence, leaving the Cedar Mountain Crest, South along said Range line common to
            76962     R8W and R9W, 68.85 chains to the SW corner of T6S, R8W;
            76963         58. Thence, East along the Township line between Ts. 6 and 7 S., 4 miles, 9.5 chains,
            76964     to the closing corner of Sections 2 and 3, T7S, R8W;
            76965         59. Thence, South, along Section line, 3 miles, 73.37 chains, to the corner of Sections
            76966     22, 23, 26 and 27, T7S, R8W;
            76967         60. Thence, West, along Section lines, 4 miles 0.45 chains, to the closing corner of
            76968     Sections 19 and 30, on the West boundary of T7S, R8W;
            76969         61. Thence, South, along the Range lines between Rs. 8 and 9 W, 1 mile 37.14 chains
            76970     to the Northeast corner of T8S, R9W, and the POINT OF BEGINNING.
            76971         TOGETHER with all that land in Section 36, T10S, R11W lying Southwesterly of the
            76972     line described in Course No. 6 of this description.
            76973         EXCEPTING THEREFROM: NW 1/4 of Section 9, T8S, R13W; and the NE 1/4 SW

            76974     1/4 of Section 30, T10S, R16W.
            76975         The operative provisions of this section also apply to the property within the following
            76976     described boundaries:
            76977         Township 6 South, Range 4 West, Salt Lake Meridian, Section 4, S 1/2; Section 5, Lots
            76978     3 and 4, S 1/2 NW 1/4 and S 1/2; Sections 6 to 9, inclusive; Section 15, W 1/2; Sections 16 to
            76979     21, inclusive; Section 22, W 1/2; Section 27, W 1/2; Sections 28 to 30.
            76980         Township 6 South, Range 5 West, Salt Lake Meridian, Sections 1 to 3, inclusive;
            76981     Sections 11 to 14, inclusive; Sections 23 to 26, inclusive; those portions of Sections 4, 9, 10,
            76982     15, 22, and 27 lying East of the Union Pacific Railroad Right-of-Way, and situated within the
            76983     boundary of the Deseret Chemical Depot (formerly St. John Ordnance Depot) County of
            76984     Tooele, State of Utah, which lands were withdrawn from all forms of appropriation under the
            76985     public land laws, including the mining and mineral leasing laws and reserved for use by the
            76986     Department of Army (formerly War Department) as an Ordnance Storage Depot by the Public
            76987     Land Order No. 15 dated July 21, 1942, and Public Land Order No. 66 dated November 30,
            76988     1942; and which are within the Rush Valley Unit of the Bonneville Grazing District No. 2,
            76989     Utah.
            76990         Section 1739. Section 63L-1-206 , which is renumbered from Section 63-8-6 is
            76991     renumbered and amended to read:
            76992          [63-8-6].     63L-1-206. Concurrent jurisdiction.
            76993         The state of Utah hereby accepts from the United States concurrent jurisdiction, both
            76994     civil and criminal, with the United States over the following described boundaries in the county
            76995     of Weber, state of Utah, in the Salt Lake Meridian:
            76996         (1) As described more particularly in Subsection (2), a part of Section 7 in Township 6
            76997     North, Range 1 West and a part of Section 12 in Township 6 North, Range 2 West.
            76998         (2) Beginning at a point South 0 degrees 46 minutes 27 seconds West 1540.37 feet and
            76999     North 89 degrees 03 minutes 15 seconds West 258.80 feet and North 3 degrees 57 minutes 30
            77000     seconds West 10,877.85 feet and North 86 degrees 11 minutes 50 seconds East 80.74 feet and
            77001     North 3 degrees 52 minutes 20 seconds West 655.22 feet from the Northeast corner of the

            77002     Northwest Quarter of Section 19 in said Township 6 North, Range 1 West; said point also being
            77003     North 89 degrees 03 minutes 15 seconds West 253.25 feet and North 3 degrees 57 minutes 30
            77004     seconds West 10,945.10 feet and North 86 degrees 11 minutes 50 seconds East 80.74 feet and
            77005     North 3 degrees 52 minutes 20 seconds West 655.22 feet from the Ogden City survey
            77006     monument at the intersection of the monument line of 12th Street and the East line of the
            77007     Northwest Quarter of said Section 19; said point also being North 86 degrees 11 minutes 50
            77008     seconds East and North 3 degrees 52 minutes 20 seconds West 655.22 from the Southwest
            77009     corner of the Ogden City property (parcel 11-023-0029):
            77010         (a) thence South 86 degrees 03 minutes 22 seconds West 2398.03 feet more or less
            77011     along an existing fenceline separating properties used by Defense Depot Ogden and the U. S.
            77012     Army Reserve to a point on the East line of 1200 West Street;
            77013         (b) thence North 1 degree 16 minutes 15 seconds East 66.27 feet along said East line of
            77014     1200 West Street;
            77015         (c) thence North 86 degrees 03 minutes 22 seconds East 2392.09 feet more or less to a
            77016     point on the West line of the Weber-Ogden Fairgrounds Complex; and
            77017         (d) thence South 3 degrees 52 minutes 20 seconds East 66.00 feet along said West line
            77018     of the Weber-Ogden Fairgrounds Complex to the point of beginning.
            77019         Section 1740. Section 63L-1-207 , which is renumbered from Section 63-8-7 is
            77020     renumbered and amended to read:
            77021          [63-8-7].     63L-1-207. Concurrent jurisdiction -- Utah Test and Training
            77022      Range.
            77023         The state of Utah cedes to the United States, retaining also the same to itself, concurrent
            77024     jurisdiction within the following described boundaries in the county of Tooele, state of Utah, in
            77025     the Salt Lake Base and Meridian, to continue so long as the United States owns, holds, or
            77026     reserves the land for military purposes or in connection with military purposes, and no longer:
            77027         (1) Township 2 North, Range 15 West, all of:
            77028         (a) Section 16;
            77029         (b) Section 32;

            77030         (c) Section 36; and
            77031         (d) Section 2, Lots 1-4, S 1/2 N 1/2, S 1/2;
            77032         (2) Township 2 South, Range 14 West, all of:
            77033         (a) Section 32; and
            77034         (b) Section 36;
            77035         (3) Township 2 South, Range 15 West, all of:
            77036         (a) Section 36; and
            77037         (b) Section 32, W 1/2;
            77038         (4) Township 3 South, Range 15 West, all of:
            77039         (a) Section 16;
            77040         (b) Section 32;
            77041         (c) Section 36; and
            77042         (d) Section 2, Lots 1-4, S 1/2 N 1/2, S 1/2;
            77043         (5) Township 2 South, Range 16 West, all of:
            77044         (a) Section 32; and
            77045         (b) Section 36;
            77046         (6) Township 2 South, Range 17 West, all of:
            77047         (a) Section 32; and
            77048         (b) Section 36;
            77049         (7) Township 2 South, Range 18 West, all of Section 36;
            77050         (8) Township 3 South, Range 18 West, all of:
            77051         (a) Section 16;
            77052         (b) Section 32;
            77053         (c) Section 36; and
            77054         (d) Section 2, Lots 1-4, S 1/2 N 1/2, S 1/2;
            77055         (9) Township 3 South, Range 19 West, all of:
            77056         (a) Section 16;
            77057         (b) Section 32;

            77058         (c) Section 36; and
            77059         (d) Section 2, Lots 1-4, S 1/2 N 1/2, S 1/2; and
            77060         (10) Township 4 South, Range 19 West, all of:
            77061         (a) Section 16;
            77062         (b) Section 32;
            77063         (c) Section 36; and
            77064         (d) Section 2, Lots 1-4, S 1/2 N 1/2, S 1/2.
            77065         Section 1741. Section 63L-2-101 is enacted to read:
            77066     
CHAPTER 2. TRANSFER OF STATE LANDS TO

            77067     
UNITED STATES GOVERNMENT ACT

            77068     
Part 1. General Provisions

            77069          63L-2-101. Title.
            77070         This chapter is known as the "Transfer of State Lands to United States Government
            77071     Act."
            77072         Section 1742. Section 63L-2-201 , which is renumbered from Section 63-34b-101 is
            77073     renumbered and amended to read:
            77074     
Part 2. Procedures for Acquisition of Property

            77075          [63-34b-101].     63L-2-201. Federal government acquisition of real property
            77076      in the state.
            77077         (1) As used in this section:
            77078         (a) "Agency" is defined in Section [ 63-38b-101 ] 63G-10-102 .
            77079         (b) "Agency" includes:
            77080         (i) the School and Institutional Trust Lands Administration created in Section
            77081      53C-1-201 ; and
            77082         (ii) the School and Institutional Trust Lands Board of Trustees created in Section
            77083      53C-1-202 .
            77084         (2) (a) Before legally binding the state by executing an agreement to sell or transfer to
            77085     the United States government 10,000 or more acres of any state lands or school and

            77086     institutional trust lands, an agency shall submit the agreement or proposal:
            77087         (i) to the Legislature for its approval or rejection; or
            77088         (ii) in the interim, to the Legislative Management Committee for review of the
            77089     agreement or proposal.
            77090         (b) The Legislative Management Committee may:
            77091         (i) recommend that the agency execute the agreement or proposal;
            77092         (ii) recommend that the agency reject the agreement or proposal; or
            77093         (iii) recommend to the governor that [he] the governor call a special session of the
            77094     Legislature to review and approve or reject the agreement or proposal.
            77095         (3) Before legally binding the state by executing an agreement to sell or transfer to the
            77096     United States government less than 10,000 acres of any state lands or school and institutional
            77097     trust lands, an agency shall report to the Natural Resources, Agriculture, and Environment
            77098     Interim Committee.
            77099         (4) Notwithstanding Subsections (2) and (3), the Legislature approves all conveyances
            77100     of school trust lands to the United States government made for the purpose of completing the
            77101     Red Cliffs Desert Reserve in Washington County.
            77102         Section 1743. Section 63L-3-101 , which is renumbered from Section 63-90-1 is
            77103     renumbered and amended to read:
            77104     
CHAPTER 3. PRIVATE PROPERTY PROTECTION ACT

            77105     
Part 1. General Provisions

            77106          [63-90-1].     63L-3-101. Title.
            77107         This chapter [shall be] is known as the "Private Property Protection Act."
            77108         Section 1744. Section 63L-3-102 , which is renumbered from Section 63-90-2 is
            77109     renumbered and amended to read:
            77110          [63-90-2].     63L-3-102. Definitions.
            77111         As used in this chapter:
            77112         (1) "Constitutional taking" or "taking" means a governmental action that results in a
            77113     taking of private property so that compensation to the owner of the property is required by:

            77114         (a) the Fifth or Fourteenth Amendment of the Constitution of the United States; or
            77115         (b) Utah Constitution Article I, Section 22.
            77116         (2) (a) "Governmental action" or "action" means:
            77117         (i) proposed rules and emergency rules by a state agency that if adopted and enforced
            77118     may limit the use of private property unless:
            77119         (A) its provisions are in accordance with applicable state or federal statutes; and
            77120         (B) the agency has adopted and implemented the guidelines required by Section
            77121     [ 63-90-3 ] 63L-3-201 ;
            77122         (ii) proposed or implemented licensing or permitting conditions, requirements, or
            77123     limitations to the use of private property unless:
            77124         (A) its provisions are in accordance with applicable state or federal statutes, rules, or
            77125     regulations; and
            77126         (B) the agency has adopted and implemented the guidelines required by Section
            77127     [ 63-90-3 ] 63L-3-201 ;
            77128         (iii) required dedications or exactions from owners of private property; or
            77129         (iv) statutes and rules.
            77130         (b) "Governmental action" or "action" does not mean:
            77131         (i) activity in which the power of eminent domain is exercised formally;
            77132         (ii) repealing rules discontinuing governmental programs or amending rules in a manner
            77133     that lessens interference with the use of private property;
            77134         (iii) law enforcement activity involving seizure or forfeiture of private property for
            77135     violations of law or as evidence in criminal proceedings;
            77136         (iv) school and institutional trust land management activities and disposal of land and
            77137     interests in land conducted pursuant to Title 53C, Schools and Institutional Trust Lands
            77138     Management Act;
            77139         (v) orders and enforcement actions that are issued by a state agency in accordance with
            77140     [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, and applicable
            77141     federal or state statutes; or

            77142         (vi) orders and enforcement actions that are issued by a court of law in accordance with
            77143     applicable federal or state statutes.
            77144         (3) "Private property" means any school or institutional trust lands and any real or
            77145     personal property in this state that is protected by:
            77146         (a) the Fifth or Fourteenth Amendment of the Constitution of the United States; or
            77147         (b) Utah Constitution Article I, Section 22.
            77148         (4) (a) "State agency" means an officer or administrative unit of the executive branch of
            77149     state government that is authorized by law to adopt rules.
            77150         (b) "State agency" does not include the legislative or judicial branches of state
            77151     government.
            77152         (5) "Takings law" means the provisions of the federal and state constitutions, the case
            77153     law interpreting those provisions, and any relevant statutory provisions that require a
            77154     governmental unit to compensate a private property owner for a constitutional taking.
            77155         Section 1745. Section 63L-3-201 , which is renumbered from Section 63-90-3 is
            77156     renumbered and amended to read:
            77157     
Part 2. Requirements for State Agencies

            77158          [63-90-3].     63L-3-201. State agencies to adopt guidelines.
            77159         (1) Each state agency shall adopt guidelines to assist them in the identification of
            77160     actions that have constitutional taking implications.
            77161         (2) In creating the guidelines, the state agency shall take into consideration recent court
            77162     rulings on the taking of private property.
            77163         (3) Each state agency shall complete the guidelines on or before January 1, 1999, and
            77164     review and update the guidelines annually to maintain consistency with court rulings.
            77165         Section 1746. Section 63L-3-202 , which is renumbered from Section 63-90-4 is
            77166     renumbered and amended to read:
            77167          [63-90-4].     63L-3-202. Agency actions.
            77168         (1) Using the guidelines prepared under Section [ 63-90-3 ] 63L-3-201 , each state
            77169     agency shall:

            77170         (a) determine whether an action has constitutional taking implications; and
            77171         (b) prepare an assessment of constitutional taking implications that includes an analysis
            77172     of the following:
            77173         (i) the likelihood that the action may result in a constitutional taking, including a
            77174     description of how the taking affects the use or value of private property;
            77175         (ii) alternatives to the proposed action that may:
            77176         (A) fulfill the government's legal obligations of the state agency;
            77177         (B) reduce the impact on the private property owner; and
            77178         (C) reduce the risk of a constitutional taking; and
            77179         (iii) an estimate of financial cost to the state for compensation and the source of
            77180     payment within the agency's budget if a constitutional taking is determined.
            77181         (2) In addition to the guidelines prepared under Section [ 63-90-3 ] 63L-3-201 , each
            77182     state agency shall adhere, to the extent permitted by law, to the following criteria if
            77183     implementing or enforcing actions that have constitutional taking implications:
            77184         (a) If an agency requires a person to obtain a permit for a specific use of private
            77185     property, any conditions imposed on issuing the permit shall directly relate to the purpose for
            77186     which the permit is issued and shall substantially advance that purpose.
            77187         (b) Any restriction imposed on the use of private property shall be proportionate to the
            77188     extent the use contributes to the overall problem that the restriction is to redress.
            77189         (c) If an action involves a permitting process or any other decision-making process that
            77190     will interfere with, or otherwise prohibit, the use of private property pending the completion of
            77191     the process, the duration of the process shall be kept to the minimum necessary.
            77192         (d) Before taking an action restricting private property use for the protection of public
            77193     health or safety, the state agency, in internal deliberative documents, shall:
            77194         (i) clearly identify, with as much specificity as possible, the public health or safety risk
            77195     created by the private property use;
            77196         (ii) establish that the action substantially advances the purpose of protecting public
            77197     health and safety against the specifically identified risk;

            77198         (iii) establish, to the extent possible, that the restrictions imposed on the private
            77199     property are proportionate to the extent the use contributes to the overall risk; and
            77200         (iv) estimate, to the extent possible, the potential cost to the government if a court
            77201     determines that the action constitutes a constitutional taking.
            77202         (3) If there is an immediate threat to health and safety that constitutes an emergency
            77203     and requires an immediate response, the analysis required by Paragraph (2)(b) of this section
            77204     may be made when the response is completed.
            77205         (4) Before the state agency implements an action that has constitutional taking
            77206     implications, the state agency shall submit a copy of the assessment of constitutional taking
            77207     implications to the governor and the Legislative Management Committee.
            77208         Section 1747. Section 63L-4-101 is enacted to read:
            77209     
CHAPTER 4. CONSTITUTIONAL TAKINGS ISSUES ACT

            77210     
Part 1. General Provisions

            77211          63L-4-101. Title.
            77212         This chapter is known as the "Constitutional Takings Issues Act."
            77213         Section 1748. Section 63L-4-102 , which is renumbered from Section 63-90a-1 is
            77214     renumbered and amended to read:
            77215          [63-90a-1].     63L-4-102. Definitions.
            77216         As used in this chapter:
            77217         (1) "Constitutional taking issues" means actions involving the physical taking or
            77218     exaction of private real property by a political subdivision that might require compensation to a
            77219     private real property owner because of:
            77220         (a) the Fifth or Fourteenth Amendment of the Constitution of the United States;
            77221         (b) Article I, Section 22 of the Utah Constitution; or
            77222         (c) any recent court rulings governing the physical taking or exaction of private real
            77223     property by a government entity.
            77224         (2) "Political subdivision" means a county, municipality, local district, special service
            77225     district, school district, or other local government entity.

            77226         Section 1749. Section 63L-4-103 , which is renumbered from Section 63-90a-2 is
            77227     renumbered and amended to read:
            77228          [63-90a-2].     63L-4-103. Applicability of chapter.
            77229         This chapter does not apply when a political subdivision formally exercises its power of
            77230     eminent domain.
            77231         Section 1750. Section 63L-4-201 , which is renumbered from Section 63-90a-3 is
            77232     renumbered and amended to read:
            77233     
Part 2. Requirements for Political Subdivisions

            77234          [63-90a-3].     63L-4-201. Political subdivisions to adopt guidelines.
            77235         (1) Each political subdivision shall enact an ordinance establishing guidelines to assist
            77236     them in identifying actions involving the physical taking or exaction of private real property that
            77237     may have constitutional taking issues.
            77238         (2) Each political subdivision shall consider the guidelines required by this section when
            77239     taking any action that might result in the physical taking or exaction of private real property.
            77240         (3) (a) The guidelines adopted under the authority of this section are advisory.
            77241         (b) A court may not impose liability upon a political subdivision for failure to comply
            77242     with the guidelines required by this section.
            77243         (c) The guidelines neither expand nor limit the scope of any political subdivision's
            77244     liability for a constitutional taking.
            77245         Section 1751. Section 63L-4-301 , which is renumbered from Section 63-90a-4 is
            77246     renumbered and amended to read:
            77247     
Part 3. Appeals

            77248          [63-90a-4].     63L-4-301. Appeals of decisions.
            77249         (1) Each political subdivision shall enact an ordinance that:
            77250         (a) establishes a procedure for review of actions that may have constitutional taking
            77251     issues; and
            77252         (b) meets the requirements of this section.
            77253         (2) (a) (i) Any owner of private property whose interest in the property is subject to a

            77254     physical taking or exaction by a political subdivision may appeal the political subdivision's
            77255     decision within 30 days after the decision is made.
            77256         (ii) The legislative body of the political subdivision, or an individual or body designated
            77257     by them, shall hear and approve or reject the appeal within 14 days after it is submitted.
            77258         (iii) If the legislative body of the political subdivision fails to hear and decide the appeal
            77259     within 14 days, the decision is presumed to be approved.
            77260         (b) The private property owner need not file the appeal authorized by this section
            77261     before bringing an action in any court to adjudicate claims that are eligible for appeal.
            77262         (c) A property owner's failure to appeal the action of a political subdivision does not
            77263     constitute, and may not be interpreted as constituting, a failure to exhaust available
            77264     administrative remedies or as a bar to bringing legal action.
            77265         Section 1752. Section 63L-5-101 , which is renumbered from Section 63-90b-101 is
            77266     renumbered and amended to read:
            77267     
CHAPTER 5. UTAH RELIGIOUS LAND USE ACT

            77268     
Part 1. General Provisions

            77269          [63-90b-101].     63L-5-101. Title.
            77270         This chapter is known as the "Utah Religious Land Use Act."
            77271         Section 1753. Section 63L-5-102 , which is renumbered from Section 63-90b-102 is
            77272     renumbered and amended to read:
            77273          [63-90b-102].     63L-5-102. Definitions.
            77274         As used in this chapter:
            77275         (1) "Free exercise of religion" means an act or refusal to act that is substantially
            77276     motivated by sincere religious belief, whether or not the act or refusal is compulsory or central
            77277     to a larger system of religious belief, and includes the use, building, or conversion of real
            77278     property for the purpose of religious exercise.
            77279         (2) "Government entity" means the state, a county, a municipality, a higher education
            77280     institution, a local district, a special service district, any other political subdivision of the state,
            77281     or any administrative subunit of any of them.

            77282         (3) "Land use regulation" means any state or local law or ordinance, whether statutory
            77283     or otherwise, that limits or restricts a person's use or development of land or a structure affixed
            77284     to land.
            77285         (4) "Person" means any individual, partnership, corporation, or other legal entity that
            77286     owns an interest in real property.
            77287         Section 1754. Section 63L-5-201 , which is renumbered from Section 63-90b-201 is
            77288     renumbered and amended to read:
            77289     
Part 2. Legal Standard

            77290          [63-90b-201].     63L-5-201. Protection of land use as religious exercise.
            77291         (1) Except as provided in Subsection (2), a government entity may not impose or
            77292     implement a land use regulation in a manner that imposes a substantial burden on a person's free
            77293     exercise of religion.
            77294         (2) A government entity may impose or implement a land use regulation in a manner
            77295     that imposes a substantial burden on a person's free exercise of religion if the government can
            77296     establish that the imposition of the burden on that person:
            77297         (a) is in furtherance of a compelling governmental interest; and
            77298         (b) is the least restrictive means of furthering that compelling governmental interest.
            77299         (3) A government entity that meets the requirements of Subsection (2) need not
            77300     separately prove that the remedy and penalty provisions of the land use regulation are the least
            77301     restrictive means to ensure compliance or to punish the failure to comply.
            77302         (4) This act shall not impair the ability of local government to impose costs and fees
            77303     reasonably necessary to mitigate the off-site impacts of development.
            77304         Section 1755. Section 63L-5-301 , which is renumbered from Section 63-90b-301 is
            77305     renumbered and amended to read:
            77306     
Part 3. Remedies and Procedures

            77307          [63-90b-301].     63L-5-301. Remedies.
            77308         (1) A person whose free exercise of religion has been substantially burdened by a
            77309     government entity in violation of Section [ 63-90b-201 ] 63L-5-201 may bring an action in the

            77310     district court of the county where the largest portion of the property subject to the land use
            77311     regulation is located.
            77312         (2) Any person who asserts a claim or defense against a government entity under this
            77313     chapter may request:
            77314         (a) declaratory relief;
            77315         (b) temporary or permanent injunctive relief to prevent the threatened or continued
            77316     violation; or
            77317         (c) a combination of declaratory and injunctive relief.
            77318         (3) A person may not bring an action under this chapter against an individual, other than
            77319     an action against an individual acting in the individual's official capacity as an officer of a
            77320     government entity.
            77321         Section 1756. Section 63L-5-302 , which is renumbered from Section 63-90b-302 is
            77322     renumbered and amended to read:
            77323          [63-90b-302].     63L-5-302. Notice of claim -- Government's right to
            77324      accommodate.
            77325         (1) A person may not bring an action under Section [ 63-90b-301 ] 63L-5-301 unless, 60
            77326     days before bringing the action, the person sends written notice of the intent to bring an action.
            77327         (2) The notice shall be addressed to the government entity imposing the land use
            77328     regulation, and shall be prepared and delivered according to the requirements of Subsection
            77329     [ 63-30d-401 ] 63G-7-401 (3).
            77330         (3) Mailing of the notice required by Subsection (1) tolls the limitation period for
            77331     bringing an action under this chapter for a period of 75 days, starting on the day the notice was
            77332     mailed.
            77333         (4) Notwithstanding Subsection (1), a person may bring an action under Section
            77334     [ 63-90b-301 ] 63L-5-301 before the expiration of the 60-day notice period if:
            77335         (a) the imposition of a substantial burden on the person's free exercise of religion by the
            77336     land use regulation is imminent; and
            77337         (b) the person was not informed of and did not otherwise have knowledge of the land

            77338     use regulation in time to reasonably provide 60 days notice.
            77339         (5) (a) A government entity provided with the notice required by Subsection (2) may
            77340     remedy the substantial burden on the person's free exercise of religion:
            77341         (i) before the expiration of the 60-day notice period; or
            77342         (ii) in the case of an action properly brought according to Subsection (4), before the
            77343     adjudication of a court hearing on the action.
            77344         (b) Nothing in this section prevents a government entity from providing a remedy after
            77345     these time periods.
            77346         (6) The court may not award compensatory damages, attorney's fees, costs, or other
            77347     expenses to a person if the substantial burden has been cured by a remedy implemented by the
            77348     government entity according to Subsection (5)(a).
            77349         Section 1757. Section 63L-5-401 , which is renumbered from Section 63-90b-401 is
            77350     renumbered and amended to read:
            77351     
Part 4. Application

            77352          [63-90b-401].     63L-5-401. Burden on exercise of religion as defense.
            77353         A person whose free exercise of religion has been substantially burdened in violation of
            77354     this chapter may assert that violation as a defense in a judicial or administrative proceeding
            77355     without regard to whether the proceeding is brought in the name of the state or by any other
            77356     person.
            77357         Section 1758. Section 63L-5-402 , which is renumbered from Section 63-90b-402 is
            77358     renumbered and amended to read:
            77359          [63-90b-402].     63L-5-402. Establishment clause unaffected.
            77360         (1) This chapter does not authorize government to burden a person's free exercise of
            77361     religion.
            77362         (2) The protection of religious freedom afforded by this chapter is in addition to the
            77363     protections provided under federal law and the constitutions of Utah and the United States.
            77364         (3) Nothing in this chapter may be construed to affect, interpret, or in any way address
            77365     that portion of the First Amendment to the United States Constitution prohibiting laws

            77366     respecting an establishment of religion.
            77367         Section 1759. Section 63L-5-403 , which is renumbered from Section 63-90b-403 is
            77368     renumbered and amended to read:
            77369          [63-90b-403].     63L-5-403. Application to certain cases.
            77370         This chapter does not affect and is not intended to affect the authority of government
            77371     entities to adopt or apply land use regulations that do not involve the free exercise of religion.
            77372         Section 1760. Section 63M-1-101 , which is renumbered from Section 63-38f-101 is
            77373     renumbered and amended to read:
            77374     
TITLE 63M. GOVERNOR'S PROGRAMS

            77375     
CHAPTER 1. GOVERNOR'S OFFICE OF ECONOMIC DEVELOPMENT

            77376     
Part 1. General Provisions

            77377          [63-38f-101].     63M-1-101. Title.
            77378         (1) This title is known as "Governor's Programs."
            77379         (2) This chapter is known as the "Governor's Office of Economic Development."
            77380         Section 1761. Section 63M-1-102 , which is renumbered from Section 63-38f-102 is
            77381     renumbered and amended to read:
            77382          [63-38f-102].     63M-1-102. Definitions.
            77383         As used in this chapter:
            77384         (1) "Board" means the Board of Business and Economic Development.
            77385         (2) "Director" means the director of the office.
            77386         (3) "Office" means the Governor's Office of Economic Development.
            77387         Section 1762. Section 63M-1-201 , which is renumbered from Section 63-38f-201 is
            77388     renumbered and amended to read:
            77389     
Part 2. Organization and Duties of the Governor's Office of Economic Development

            77390          [63-38f-201].     63M-1-201. Creation of office.
            77391         (1) There is created the Governor's Office of Economic Development.
            77392         (2) The office shall:
            77393         (a) be responsible for economic development within the state;

            77394         (b) perform economic development planning for the state;
            77395         (c) administer and coordinate all state or federal grant programs which are, or become
            77396     available, for economic development;
            77397         (d) administer any other programs over which the office is given administrative
            77398     supervision by the governor;
            77399         (e) annually submit a report to the Legislature by October 1; and
            77400         (f) perform any other duties as provided by the Legislature.
            77401         (3) The office may solicit and accept contributions of moneys, services, and facilities
            77402     from any other source, public or private, but may not use the moneys for publicizing the
            77403     exclusive interest of the donor.
            77404         (4) Moneys received under Subsection (3) shall be deposited in the General Fund as
            77405     dedicated credits of the office.
            77406         Section 1763. Section 63M-1-202 , which is renumbered from Section 63-38f-202 is
            77407     renumbered and amended to read:
            77408          [63-38f-202].     63M-1-202. Director of office -- Appointment -- Removal --
            77409      Compensation.
            77410         (1) The office shall be administered, directed, controlled, organized, and managed by a
            77411     director appointed by the governor.
            77412         (2) The director serves at the pleasure of the governor.
            77413         (3) The salary of the director shall be established by the governor within the salary
            77414     range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
            77415         Section 1764. Section 63M-1-203 , which is renumbered from Section 63-38f-203 is
            77416     renumbered and amended to read:
            77417          [63-38f-203].     63M-1-203. Powers and duties of director.
            77418         (1) The director, with the approval of the governor, may:
            77419         (a) by following the procedures and requirements of [Title 63, Chapter 38e] Title 63J,
            77420     Chapter 5, Federal Funds Procedures, seek federal grants, loans, or participation in federal
            77421     programs;

            77422         (b) enter into lawful contracts or agreements with other states, any chamber of
            77423     commerce organization, and any service club; and
            77424         (c) annually prepare and submit to the governor a budget of the office's financial
            77425     requirements.
            77426         (2) If any federal program requires the expenditure of state funds as a condition to
            77427     participation by the state in any fund, property, or service, with the governor's approval, the
            77428     director shall expend whatever funds are necessary out of the money provided by the
            77429     Legislature for the use of the office.
            77430         Section 1765. Section 63M-1-204 , which is renumbered from Section 63-38f-204 is
            77431     renumbered and amended to read:
            77432          [63-38f-204].     63M-1-204. Organization of office -- Jurisdiction of director.
            77433         (1) Unless otherwise expressly provided by statute, the director may organize the office
            77434     in any fashion considered appropriate, including the appointment of deputy directors of the
            77435     office.
            77436         (2) The director may make consolidations of personnel and service functions to
            77437     effectuate efficiency and economy within the office.
            77438         Section 1766. Section 63M-1-205 , which is renumbered from Section 63-38f-205 is
            77439     renumbered and amended to read:
            77440          [63-38f-205].     63M-1-205. Interface with Public Service Commission.
            77441         (1) The director or the director's designee shall:
            77442         (a) become generally informed of significant rate cases and policy proceedings before
            77443     the Public Service Commission; and
            77444         (b) monitor and study the potential economic development impact of these proceedings
            77445     before the Public Service Commission.
            77446         (2) In the discretion of the director or the director's designee, the office may appear in
            77447     any proceeding before the Public Service Commission to testify, advise, or present argument
            77448     regarding the economic development impact of any matter that is the subject of the proceeding.
            77449         Section 1767. Section 63M-1-301 , which is renumbered from Section 63-38f-301 is

            77450     renumbered and amended to read:
            77451     
Part 3. Board of Business and Economic Development

            77452          [63-38f-301].     63M-1-301. Board of Business and Economic Development.
            77453         There is created within the office the Board of Business and Economic Development
            77454     which shall advise the office.
            77455         Section 1768. Section 63M-1-302 , which is renumbered from Section 63-38f-302 is
            77456     renumbered and amended to read:
            77457          [63-38f-302].     63M-1-302. Members -- Meetings -- Expenses.
            77458         (1) (a) The board shall consist of 15 members appointed by the governor to four-year
            77459     terms of office with the consent of the Senate.
            77460         (b) Notwithstanding the requirements of Subsection (1)(a), the governor shall, at the
            77461     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
            77462     board members are staggered so that approximately half of the board is appointed every two
            77463     years.
            77464         (c) The members may not serve more than two full consecutive terms except where the
            77465     governor determines that an additional term is in the best interest of the state.
            77466         (2) Not more than eight members of the board may be from one political party.
            77467         (3) The members shall be representative of all areas of the state.
            77468         (4) When a vacancy occurs in the membership for any reason, the replacement shall be
            77469     appointed for the unexpired term.
            77470         (5) Eight members of the board constitute a quorum for conducting board business and
            77471     exercising board power.
            77472         (6) The governor shall select one of the board members as its chair.
            77473         (7) (a) Members shall receive no compensation or benefits for their services, but may
            77474     receive per diem and expenses incurred in the performance of the member's official duties at the
            77475     rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            77476         (b) Members may decline to receive per diem and expenses for their service.
            77477         Section 1769. Section 63M-1-303 , which is renumbered from Section 63-38f-303 is

            77478     renumbered and amended to read:
            77479          [63-38f-303].     63M-1-303. Board duties and powers.
            77480         (1) The board shall:
            77481         (a) promote and encourage the economic, commercial, financial, industrial, agricultural,
            77482     and civic welfare of the state;
            77483         (b) do all lawful acts for the development, attraction, and retention of businesses,
            77484     industries, and commerce within the state;
            77485         (c) promote and encourage the expansion and retention of businesses, industries, and
            77486     commerce located in the state;
            77487         (d) support the efforts of local government and regional nonprofit economic
            77488     development organizations to encourage expansion or retention of businesses, industries, and
            77489     commerce located in the state;
            77490         (e) do other acts not specifically enumerated in this chapter, if the acts are for the
            77491     betterment of the economy of the state;
            77492         (f) work in conjunction with companies and individuals located or doing business within
            77493     the state to secure favorable rates, fares, tolls, charges, and classification for transportation of
            77494     persons or property by:
            77495         (i) railroad;
            77496         (ii) motor carrier; or
            77497         (iii) other common carriers;
            77498         (g) recommend policies, priorities, and objectives to the office regarding the assistance,
            77499     retention, or recruitment of business, industries, and commerce in the state; and
            77500         (h) recommend how any money or program administered by the office or its divisions
            77501     for the assistance, retention, or recruitment of businesses, industries, and commerce in the state
            77502     shall be administered, so that the money or program is equitably available to all areas of the
            77503     state unless federal or state law requires or authorizes the geographic location of a recipient of
            77504     the money or program to be considered in the distribution of the money or administration of the
            77505     program.

            77506         (2) The board may:
            77507         (a) in furtherance of the authority granted under Subsection (1)(f), appear as a party
            77508     litigant on behalf of individuals or companies located or doing business within the state in
            77509     proceedings before regulatory commissions of the state, other states, or the federal government
            77510     having jurisdiction over such matters; and
            77511         (b) make, amend, or repeal rules for the conduct of its business consistent with this part
            77512     and in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
            77513     Rulemaking Act.
            77514         Section 1770. Section 63M-1-304 , which is renumbered from Section 63-38f-304 is
            77515     renumbered and amended to read:
            77516          [63-38f-304].     63M-1-304. Governor's Office of Economic Development --
            77517      Powers and duties of office -- Consulting with board on funds or services provided by
            77518      office.
            77519         (1) For the purposes of this section:
            77520         (a) "National recruitment" means the recruitment to the state of business, industry, or
            77521     commerce if, at the time of the recruitment, the business, industry, or commerce is principally
            77522     located in the United States.
            77523         (b) "Private entity" means a private person, corporation, company, or organization.
            77524         (2) (a) The office shall obtain the advice of the board prior to an imposition of or
            77525     change to a policy, priority, or objective under which the office operates.
            77526         (b) Subsection (2)(a) does not apply to the routine administration by the office of funds
            77527     or services related to assistance, retention, or recruitment of business, industry, or commerce in
            77528     this state.
            77529         (3) The office shall:
            77530         (a) be the industrial promotion authority of the state;
            77531         (b) promote and encourage the economic, commercial, financial, industrial, agricultural,
            77532     and civic welfare of the state;
            77533         (c) do all lawful acts to create, develop, attract, and retain business, industry, and

            77534     commerce within the state; and
            77535         (d) do other acts that enhance the economy of the state.
            77536         (4) The office may:
            77537         (a) enter into contracts or agreements with, or make grants to, public or private entities,
            77538     including municipalities, in the furtherance of its duties where the contracts or agreements are
            77539     not in violation of the Constitution or statutes of the state; and
            77540         (b) receive and expend funds available from any source, public or private, in any manner
            77541     and for any lawful purpose in the best interest of the state in the discharge of their obligations
            77542     under this part.
            77543         (5) The director or the director's designee shall consult with the board at each meeting
            77544     of the board regarding the administration by the office of funds or services related to assistance,
            77545     retention, or recruitment of business, industry, or commerce in the state.
            77546         Section 1771. Section 63M-1-401 , which is renumbered from Section 63-38f-401 is
            77547     renumbered and amended to read:
            77548     
Part 4. Enterprise Zone Act

            77549          [63-38f-401].     63M-1-401. Title.
            77550         This part is known as the "Enterprise Zone Act."
            77551         Section 1772. Section 63M-1-402 , which is renumbered from Section 63-38f-402 is
            77552     renumbered and amended to read:
            77553          [63-38f-402].     63M-1-402. Definitions.
            77554         As used in this part:
            77555         (1) "Business entity" means an entity:
            77556         (a) including a claimant, estate, or trust; and
            77557         (b) under which business is conducted or transacted.
            77558         (2) (a) "Claimant" means a resident or nonresident person that has:
            77559         (i) Utah taxable income as defined in Section 59-7-101 ; or
            77560         (ii) state taxable income under Title 59, Chapter 10, Part 1, Determination and
            77561     Reporting of Tax Liability or Information.

            77562         (b) "Claimant" does not include an estate or trust.
            77563         (3) "County applicant" means the governing authority of a county that meets the
            77564     requirements for designation as an enterprise zone under Section [ 63-38f-404 ] 63M-1-404 .
            77565         (4) "Estate" means a nonresident estate or a resident estate that has state taxable
            77566     income under Title 59, Chapter 10, Part 2, Trusts and Estates.
            77567         (5) "Municipal applicant" means the governing authority of a city or town that meets
            77568     the requirements for designation as an enterprise zone under Section [ 63-38f-404 ] 63M-1-404 .
            77569         (6) "Nonrefundable tax credit" or "tax credit" means a tax credit that a claimant, estate,
            77570     or trust may:
            77571         (a) claim:
            77572         (i) as provided by statute; and
            77573         (ii) in an amount that does not exceed the claimant's, estate's, or trust's tax liability for a
            77574     taxable year under:
            77575         (A) Title 59, Chapter 7, Corporate Franchise and Income Taxes; or
            77576         (B) Title 59, Chapter 10, Individual Income Tax Act; and
            77577         (b) carry forward or carry back:
            77578         (i) if allowed by statute; and
            77579         (ii) to the extent that the amount of the tax credit exceeds the claimant's, estate's, or
            77580     trust's tax liability for a taxable year under:
            77581         (A) Title 59, Chapter 7, Corporate Franchise and Income Taxes; or
            77582         (B) Title 59, Chapter 10, Individual Income Tax Act.
            77583         (7) "Tax incentives" or "tax benefits" means the nonrefundable tax credits described in
            77584     Section [ 63-38f-413 ] 63M-1-413 .
            77585         (8) "Trust" means a nonresident trust or a resident trust that has state taxable income
            77586     under Title 59, Chapter 10, Part 2, Trusts and Estates.
            77587         Section 1773. Section 63M-1-403 , which is renumbered from Section 63-38f-403 is
            77588     renumbered and amended to read:
            77589          [63-38f-403].     63M-1-403. Powers of the office.

            77590         The office shall:
            77591         (1) monitor the implementation and operation of this part and conduct a continuing
            77592     evaluation of the progress made in the enterprise zones;
            77593         (2) evaluate an application from a county applicant or a municipal applicant to be
            77594     designated an enterprise zone and determine if the applicant qualifies for that designation;
            77595         (3) provide technical assistance to county applicants and municipal applicants in
            77596     developing applications for designation as enterprise zones;
            77597         (4) assist county applicants and municipal applicants designated as enterprise zones in
            77598     obtaining assistance from the federal government and agencies of the state;
            77599         (5) assist a qualified business in obtaining the benefits of an incentive or inducement
            77600     program authorized by this part; and
            77601         (6) prepare an annual evaluation based, in part, on data provided by the State Tax
            77602     Commission:
            77603         (a) evaluating the effectiveness of the program and any suggestions for legislation; and
            77604         (b) that is available upon request to the governor and to the Revenue and Taxation
            77605     Interim Committee of the Legislature by November 1 of each year.
            77606         Section 1774. Section 63M-1-404 , which is renumbered from Section 63-38f-404 is
            77607     renumbered and amended to read:
            77608          [63-38f-404].     63M-1-404. Criteria for designation of enterprise zones --
            77609      Application.
            77610         (1) A county applicant seeking designation as an enterprise zone shall file an application
            77611     with the office that, in addition to complying with other requirements of this part:
            77612         (a) verifies that the entire county is not located in a metropolitan statistical area that is
            77613     entirely located within Utah, except that this requirement does not apply to a third, fourth, fifth,
            77614     or sixth class county as classified under Section 17-50-501 ;
            77615         (b) verifies that the county has a population of 50,000 or less; and
            77616         (c) provides clear evidence of the need for development in the county.
            77617         (2) A municipal applicant seeking designation as an enterprise zone shall file an

            77618     application with the office that, in addition to complying with other requirements of this part:
            77619         (a) verifies that the municipality is a city of the fifth class or a town;
            77620         (b) verifies that the municipality is within a county that has a population of 50,000 or
            77621     less; and
            77622         (c) provides clear evidence of the need for development in the municipality.
            77623         (3) An application filed under Subsection (1) or (2) shall be in a form and in accordance
            77624     with procedures approved by the office, and shall include the following information:
            77625         (a) a plan developed by the county applicant or municipal applicant that identifies local
            77626     contributions meeting the requirements of Section [ 63-38f-405 ] 63M-1-405 ;
            77627         (b) the county applicant or municipal applicant has a development plan that outlines:
            77628         (i) the types of investment and development within the zone that the county applicant or
            77629     municipal applicant expects to take place if the incentives specified in this part are provided;
            77630         (ii) the specific investment or development reasonably expected to take place;
            77631         (iii) any commitments obtained from businesses;
            77632         (iv) the projected number of jobs that will be created and the anticipated wage level of
            77633     those jobs;
            77634         (v) any proposed emphasis on the type of jobs created, including any affirmative action
            77635     plans; and
            77636         (vi) a copy of the county applicant's or municipal applicant's economic development
            77637     plan to demonstrate coordination between the zone and overall county or municipal goals;
            77638         (c) the county applicant's or municipal applicant's proposed means of assessing the
            77639     effectiveness of the development plan or other programs to be implemented within the zone
            77640     once they have been implemented;
            77641         (d) any additional information required by the office; and
            77642         (e) any additional information the county applicant or municipal applicant considers
            77643     relevant to its designation as an enterprise zone.
            77644         Section 1775. Section 63M-1-405 , which is renumbered from Section 63-38f-405 is
            77645     renumbered and amended to read:

            77646          [63-38f-405].     63M-1-405. Qualifying local contributions.
            77647         (1) An area may be designated as an enterprise zone only if the county applicant or
            77648     municipal applicant agrees to make a qualifying local contribution.
            77649         (2) The qualifying local contribution may vary depending on available resources, and
            77650     may include such elements as:
            77651         (a) simplified procedures for obtaining permits;
            77652         (b) dedication of available government grants;
            77653         (c) dedication of training funds;
            77654         (d) waiver of business license fees;
            77655         (e) infrastructure improvements;
            77656         (f) private contributions;
            77657         (g) utility rate concessions;
            77658         (h) small business incubator programs; or
            77659         (i) management assistance programs.
            77660         Section 1776. Section 63M-1-406 , which is renumbered from Section 63-38f-406 is
            77661     renumbered and amended to read:
            77662          [63-38f-406].     63M-1-406. Eligibility review.
            77663         (1) (a) The office shall review and evaluate the applications submitted under Section
            77664     [ 63-38f-404 ] 63M-1-404 and shall determine whether each county applicant or municipal
            77665     applicant is eligible for designation as an enterprise zone.
            77666         (b) In determining whether a county applicant or municipal applicant is eligible, if
            77667     unemployment, income, population, or other necessary data are not available for the county
            77668     applicant or municipal applicant from the federal departments of labor or commerce or a state
            77669     agency, the office may rely upon other data submitted by the applicant, if the office determines
            77670     that it is statistically reliable or accurate.
            77671         (2) (a) The office shall designate enterprise zones.
            77672         (b) The office shall consider and evaluate an application using the following criteria:
            77673         (i) the pervasiveness of poverty, unemployment, and general distress in the proposed

            77674     zone;
            77675         (ii) the extent of chronic abandonment, deterioration, or reduction in value of
            77676     commercial, industrial, or residential structures in the proposed zone, and the extent of property
            77677     tax arrearages in the proposed zone;
            77678         (iii) the potential for new investment and economic development in the proposed zone;
            77679         (iv) the county applicant's or municipal applicant's proposed use of other state and
            77680     federal development funds or programs to increase the probability of new investment and
            77681     development occurring;
            77682         (v) the extent to which the projected development in the zone will provide employment
            77683     to residents of the county and particularly individuals who are unemployed or who are
            77684     economically disadvantaged;
            77685         (vi) the degree to which the county applicant's or municipal applicant's application
            77686     promotes innovative solutions to economic development problems and demonstrates local
            77687     initiative; and
            77688         (vii) other relevant factors that the office specifies in its recommendation.
            77689         Section 1777. Section 63M-1-407 , which is renumbered from Section 63-38f-407 is
            77690     renumbered and amended to read:
            77691          [63-38f-407].     63M-1-407. Quarterly consideration.
            77692         The office shall consider designating enterprise zones quarterly.
            77693         Section 1778. Section 63M-1-408 , which is renumbered from Section 63-38f-408 is
            77694     renumbered and amended to read:
            77695          [63-38f-408].     63M-1-408. Duration of designation.
            77696         Each enterprise zone has a duration of five years, at the end of which the county may
            77697     reapply for the designation.
            77698         Section 1779. Section 63M-1-409 , which is renumbered from Section 63-38f-409 is
            77699     renumbered and amended to read:
            77700          [63-38f-409].     63M-1-409. Contingent designations.
            77701         (1) The office may accept applications for, and may at any time grant, a contingent

            77702     designation of any county as an enterprise zone for purposes of seeking a designation of the
            77703     county as a federally designated zone.
            77704         (2) This designation does not entitle a business operating in that county to the tax
            77705     incentives under this part.
            77706         Section 1780. Section 63M-1-410 , which is renumbered from Section 63-38f-410 is
            77707     renumbered and amended to read:
            77708          [63-38f-410].     63M-1-410. Revocation of designations.
            77709         (1) The office may revoke the designation of an enterprise zone, if no businesses utilize
            77710     the tax incentives during any calendar year.
            77711         (2) Prior to that action, the office shall conduct a public hearing to determine reasons
            77712     for inactivity and explore possible alternative actions.
            77713         Section 1781. Section 63M-1-411 , which is renumbered from Section 63-38f-411 is
            77714     renumbered and amended to read:
            77715          [63-38f-411].     63M-1-411. Disqualifying transfers.
            77716         Except in counties of the first or second class, tax incentives provided by this part are
            77717     not available to companies that close or permanently curtail operations in another part of the
            77718     state in connection with a transfer of any part of its business operations to an enterprise zone, if
            77719     the closure or permanent curtailment is reasonably expected to diminish employment in that part
            77720     of the state.
            77721         Section 1782. Section 63M-1-412 , which is renumbered from Section 63-38f-412 is
            77722     renumbered and amended to read:
            77723          [63-38f-412].     63M-1-412. Business entities qualifying for tax incentives.
            77724         The tax incentives described in this part are available only to a business entity for which
            77725     at least 51% of the employees employed at facilities of the business entity located in the
            77726     enterprise zone are individuals who, at the time of employment, reside in the county in which
            77727     the enterprise zone is located.
            77728         Section 1783. Section 63M-1-413 , which is renumbered from Section 63-38f-413 is
            77729     renumbered and amended to read:

            77730          [63-38f-413].     63M-1-413. State tax credits.
            77731         (1) Subject to the limitations of Subsections (2) through (4), the following
            77732     nonrefundable tax credits against a tax under Title 59, Chapter 7, Corporate Franchise and
            77733     Income Taxes, or Title 59, Chapter 10, Individual Income Tax Act, are applicable in an
            77734     enterprise zone:
            77735         (a) a tax credit of $750 may be claimed by a business entity for each new full-time
            77736     position filled for not less than six months during a given tax year;
            77737         (b) an additional $500 tax credit may be claimed if the new position pays at least 125%
            77738     of:
            77739         (i) the county average monthly nonagricultural payroll wage for the respective industry
            77740     as determined by the Department of Workforce Services; or
            77741         (ii) if the county average monthly nonagricultural payroll wage is not available for the
            77742     respective industry, the total average monthly nonagricultural payroll wage in the respective
            77743     county where the enterprise zone is located;
            77744         (c) an additional tax credit of $750 may be claimed if the new position is in a business
            77745     entity that adds value to agricultural commodities through manufacturing or processing;
            77746         (d) an additional tax credit of $200 may be claimed for two consecutive years for each
            77747     new employee who is insured under an employer-sponsored health insurance program if the
            77748     employer pays at least 50% of the premium cost for two consecutive years;
            77749         (e) a tax credit of 50% of the value of a cash contribution to a private nonprofit
            77750     corporation, except that the credit claimed may not exceed $100,000:
            77751         (i) that is exempt from federal income taxation under Section 501(c)(3), Internal
            77752     Revenue Code;
            77753         (ii) whose primary purpose is community and economic development; and
            77754         (iii) that has been accredited by the board of directors of the Utah Rural Development
            77755     Council;
            77756         (f) a tax credit of 25% of the first $200,000 spent on rehabilitating a building in the
            77757     enterprise zone that has been vacant for two years or more; and

            77758         (g) an annual investment tax credit of 10% of the first $250,000 in investment, and 5%
            77759     of the next $1,000,000 qualifying investment in plant, equipment, or other depreciable property.
            77760         (2) (a) Subject to the limitations of Subsection (2)(b), a business entity claiming a tax
            77761     credit under Subsections (1)(a) through (d) may claim the tax credit for 30 full-time employee
            77762     positions or less in each of its taxable years.
            77763         (b) A business entity that received a tax credit for its full-time employee positions under
            77764     Subsections (1)(a) through (d) may claim an additional tax credit for a full-time employee
            77765     position under Subsections (1)(a) through (d) if:
            77766         (i) the business entity creates a new full-time employee position;
            77767         (ii) the total number of full-time employee positions at the business entity is greater than
            77768     the number of full-time employee positions previously claimed by the business entity under
            77769     Subsections (1)(a) through (d); and
            77770         (iii) the total number of tax credits the business entity has claimed for its current taxable
            77771     year, including the new full-time employee position for which the claimant, estate, or trust that
            77772     is a business entity is claiming a tax credit, is less than or equal to 30.
            77773         (c) A business entity existing in an enterprise zone on the date of its designation shall
            77774     calculate the number of full-time positions based on the average number of employees reported
            77775     to the Department of Workforce Services.
            77776         (d) Construction jobs are not eligible for the tax credits under Subsections (1)(a)
            77777     through (d).
            77778         (3) If the amount of a tax credit under this section exceeds a business entity's tax
            77779     liability under this chapter for a taxable year, the amount of the tax credit exceeding the liability
            77780     may be carried forward for a period that does not exceed the next three taxable years.
            77781         (4) (a) If a business entity is located in a county that met the requirements of
            77782     Subsections [ 63-38f-404 ] 63M-1-404 (1)(b) and (c) but did not qualify as an enterprise zone
            77783     prior to January 1, 1998, because the county was located in a metropolitan statistical area in
            77784     more than one state, the business entity:
            77785         (i) shall qualify for tax credits for a taxable year beginning on or after January 1, 1997,

            77786     but beginning before December 31, 1997;
            77787         (ii) may claim a tax credit as described in Subsection (4)(a) in a taxable year beginning
            77788     on or after January 1, 1997, but beginning before December 31, 1997; and
            77789         (iii) may qualify for tax credits for any taxable year beginning on or after January 1,
            77790     1998, if the county is designated as an enterprise zone in accordance with this part.
            77791         (b) If a business entity claims a tax credit under Subsection (4)(a)(ii), the business
            77792     entity:
            77793         (i) may claim the tax credit by filing for the taxable year beginning on or after January 1,
            77794     1997, but beginning before December 31, 1997:
            77795         (A) a return under Title 59, Chapter 7, Corporate Franchise and Income Taxes;
            77796         (B) an amended return under Title 59, Chapter 7, Corporate Franchise and Income
            77797     Taxes;
            77798         (C) a return under Title 59, Chapter 10, Individual Income Tax Act; or
            77799         (D) an amended return under Title 59, Chapter 10, Individual Income Tax Act; and
            77800         (ii) may carry forward the tax credit to a taxable year beginning on or after January 1,
            77801     1998, in accordance with Subsection (3).
            77802         (5) The tax credits under Subsections (1)(a) through (g) may not be claimed by a
            77803     business entity engaged in retail trade or by a public utilities business.
            77804         (6) A business entity may not claim or carry forward a tax credit available under this
            77805     part for a taxable year during which the business entity has claimed the targeted business income
            77806     tax credit available under Section [ 63-38f-503 ] 63M-1-504 .
            77807         Section 1784. Section 63M-1-414 , which is renumbered from Section 63-38f-414 is
            77808     renumbered and amended to read:
            77809          [63-38f-414].     63M-1-414. Annual report.
            77810         (1) Each county applicant or municipal applicant designated as an enterprise zone shall
            77811     annually report to the office regarding the economic activity that has occurred in the zone
            77812     following the designation.
            77813         (2) This information shall include:

            77814         (a) the number of jobs created in the zone;
            77815         (b) the number of economically disadvantaged individuals receiving public job training
            77816     assistance in the zone;
            77817         (c) the average wage level of the jobs created;
            77818         (d) descriptions of any affirmative action programs undertaken by the county applicant
            77819     or municipal applicant in connection with the enterprise zone;
            77820         (e) the amount of the county applicant's or municipal applicant's local contribution; and
            77821         (f) the number of businesses qualifying for, or directly benefiting from, the local
            77822     contribution.
            77823         Section 1785. Section 63M-1-415 , which is renumbered from Section 63-38f-415 is
            77824     renumbered and amended to read:
            77825          [63-38f-415].     63M-1-415. Indian tribes -- Application.
            77826         (1) For purposes of this section:
            77827         (a) "Indian reservation" is as defined in Section 9-9-210 .
            77828         (b) "Indian tribe" is as defined in Subsection 9-9-402 (4).
            77829         (c) "Tribal applicant" means the governing authority of a tribe that meets the
            77830     requirements for designation as an enterprise zone under Subsection (3).
            77831         (2) Indian tribes may apply for designation of an area within an Indian reservation as an
            77832     enterprise zone.
            77833         (3) The tribal applicant shall follow the application procedure for a municipal applicant
            77834     in this part except for the population requirement in Subsections [ 63-38f-404 ] 63M-1-404 (2)(a)
            77835     and (b).
            77836         Section 1786. Section 63M-1-416 , which is renumbered from Section 63-38f-416 is
            77837     renumbered and amended to read:
            77838          [63-38f-416].     63M-1-416. Technology-based service contracts within
            77839      enterprise zones.
            77840         (1) For purposes of this section:
            77841         (a) "Smart site enterprise" means a technology-based entity located within an enterprise

            77842     zone that is eligible to receive financial support under the office's smart site program.
            77843         (b) "Smart site program" means a program of the office dedicated to the development
            77844     of technology-based industry in rural Utah in which services that might otherwise be performed
            77845     by state agencies are outsourced to a smart site enterprise.
            77846         (c) "State agency" means the:
            77847         (i) Department of Commerce;
            77848         (ii) Department of Workforce Services;
            77849         (iii) Department of Transportation;
            77850         (iv) Department of Health;
            77851         (v) Department of Administrative Services;
            77852         (vi) Department of Public Safety;
            77853         (vii) Utah State Tax Commission; and
            77854         (viii) Governor's Office of Economic Development.
            77855         (d) "Technology-based contract" means a contract between a state agency and a smart
            77856     site enterprise for the smart site enterprise to provide the following services:
            77857         (i) software development and computer programming;
            77858         (ii) website design;
            77859         (iii) systems integration;
            77860         (iv) AutoCad/GIS mapping;
            77861         (v) help desk support, customer relationship management, and telephone or Internet
            77862     surveys;
            77863         (vi) computer graphics, animation, or illustration;
            77864         (vii) medical billing, coding, transcription, and related medical informatics services;
            77865         (viii) data entry, data conversion, and imaging;
            77866         (ix) information technology training and e-learning;
            77867         (x) network development, management, service, and support;
            77868         (xi) telecommunications technologies;
            77869         (xii) database development and applications;

            77870         (xiii) multimedia and digital technologies, including DVD;
            77871         (xiv) technical writing;
            77872         (xv) insurance and benefits administration;
            77873         (xvi) data warehousing and storage or web hosting;
            77874         (xvii) billing services; and
            77875         (xviii) information technology consulting.
            77876         (2) The office has the following responsibilities for the smart site program authorized
            77877     under this section:
            77878         (a) to provide market incentives identified in Subsection (4) to eligible state agencies
            77879     and provide technical assistance as appropriate;
            77880         (b) to administer funding and initiate interagency transfers consistent with the
            77881     provisions of this section;
            77882         (c) to provide state agencies with a listing of smart site enterprises;
            77883         (d) to designate a smart site program director and notify state agencies of the
            77884     designation; and
            77885         (e) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            77886     Administrative Rulemaking Act, make rules necessary to administer this section.
            77887         (3) A state agency has the following responsibilities if participating in the smart site
            77888     program offered under this section:
            77889         (a) to enter into a memorandum of understanding with the office indicating the steps the
            77890     agency shall take to encourage smart site enterprises to submit bids for technology-based
            77891     contracts; and
            77892         (b) to submit to the office by no later than July 30, an accounting of all
            77893     technology-based contracts awarded to smart site enterprises by the agency in the prior fiscal
            77894     year.
            77895         (4) (a) A state agency is eligible for an interagency transfer from the office for up to
            77896     10% of all technology-based contracts awarded to a smart site enterprise under the office's
            77897     smart site program.

            77898         (b) The office shall determine the amount of the interagency transfer as follows:
            77899         (i) if the total number of requests for interagency transfers under the program does not
            77900     exceed the legislative appropriation for the fiscal year, each eligible agency shall receive a full
            77901     10% transfer; or
            77902         (ii) if the total number of requests for interagency transfers under the program exceeds
            77903     the appropriation for the fiscal year, the office shall prorate the amount of each transfer based
            77904     on the respective percentage of all technology-based contracts submitted to the office by all
            77905     eligible state agencies.
            77906         (c) (i) After determining the amount of each agency's interagency transfer as required
            77907     under Subsection (4)(b), the office shall transfer the amount to each agency's budget.
            77908         (ii) The office shall make the transfer no later than August 15 to supplement the
            77909     agency's budget for the fiscal year beginning just prior to the interagency transfer.
            77910         (iii) An agency may use the interagency transfer it receives under this Subsection (4)(c)
            77911     for any purpose related to the agency's mission or its duties and responsibilities, including the
            77912     payment of incentives and award bonuses for participating in the smart site program.
            77913         (d) Funding for the interagency transfer under Subsection (4)(c) shall come from the
            77914     prior fiscal year appropriation to the office.
            77915         (e) The appropriation to fund this section is nonlapsing to provide for the distribution
            77916     process outlined in this Subsection (4).
            77917         Section 1787. Section 63M-1-501 , which is renumbered from Section 63-38f-501 is
            77918     renumbered and amended to read:
            77919     
Part 5. Targeted Business Income Tax Credits Within an Enterprise Zone

            77920          [63-38f-501].     63M-1-501. Definitions.
            77921         As used in this part:
            77922         (1) "Allocated cap amount" means the total amount of the targeted business income tax
            77923     credit that a business applicant is allowed to claim for a taxable year that represents a pro rata
            77924     share of the total amount of $300,000 for each fiscal year allowed under Subsection
            77925     [ 63-38f-503 ] 63M-1-504 (2).

            77926         (2) "Business applicant" means a business that:
            77927         (a) is a:
            77928         (i) claimant;
            77929         (ii) estate; or
            77930         (iii) trust; and
            77931         (b) meets the criteria established in Section [ 63-38f-502 ] 63M-1-503 .
            77932         (3) (a) Except as provided in Subsection (3)(b), "claimant" means a resident or
            77933     nonresident person.
            77934         (b) "Claimant" does not include an estate or trust.
            77935         (4) "Community investment project" means a project that includes one or more of the
            77936     following criteria in addition to the normal operations of the business applicant:
            77937         (a) substantial new employment;
            77938         (b) new capital development; or
            77939         (c) a combination of both Subsections (4)(a) and (b).
            77940         (5) "Community investment project period" means the total number of years that the
            77941     office determines a business applicant is eligible for a targeted business income tax credit for
            77942     each community investment project.
            77943         (6) "Enterprise zone" means an area within a county or municipality that has been
            77944     designated as an enterprise zone by the office under Part 4, Enterprise Zone Act.
            77945         (7) "Estate" means a nonresident estate or a resident estate.
            77946         (8) "Local zone administrator" means a person:
            77947         (a) designated by the governing authority of the county or municipal applicant as the
            77948     local zone administrator in an enterprise zone application; and
            77949         (b) approved by the office as the local zone administrator.
            77950         (9) "Refundable tax credit" or "tax credit" means a tax credit that a claimant, estate, or
            77951     trust may claim:
            77952         (a) as provided by statute; and
            77953         (b) regardless of whether, for the taxable year for which the claimant, estate, or trust

            77954     claims the tax credit, the claimant, estate, or trust has a tax liability under:
            77955         (i) Title 59, Chapter 7, Corporate Franchise and Income Taxes; or
            77956         (ii) Title 59, Chapter 10, Individual Income Tax Act.
            77957         (10) "Targeted business income tax credit" means a refundable tax credit available
            77958     under Section [ 63-38f-503 ] 63M-1-504 .
            77959         (11) "Targeted business income tax credit eligibility form" means a document provided
            77960     annually to the business applicant by the office that complies with the requirements of
            77961     Subsection [ 63-38f-503 ] 63M-1-504 (8).
            77962         (12) "Trust" means a nonresident trust or a resident trust.
            77963         Section 1788. Section 63M-1-502 , which is renumbered from Section 63-38f-501.5 is
            77964     renumbered and amended to read:
            77965          [63-38f-501.5].     63M-1-502. Rulemaking authority.
            77966         In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
            77967     Rulemaking Act, and for purposes of this section, the office shall make rules:
            77968         (1) to determine what constitutes:
            77969         (a) substantial new employment;
            77970         (b) new capital development; and
            77971         (c) a project; and
            77972         (2) to establish a formula for determining the allocated cap amount for each business
            77973     applicant.
            77974         Section 1789. Section 63M-1-503 , which is renumbered from Section 63-38f-502 is
            77975     renumbered and amended to read:
            77976          [63-38f-502].     63M-1-503. Application for targeted business income tax
            77977      credits.
            77978         (1) (a) For taxable years beginning on or after January 1, 2002, a business applicant
            77979     may elect to claim a targeted business income tax credit available under Section [ 63-38f-503 ]
            77980      63M-1-504 if the business applicant:
            77981         (i) is located in:

            77982         (A) an enterprise zone; and
            77983         (B) a county with:
            77984         (I) a population of less than 25,000; and
            77985         (II) an unemployment rate that for six months or more of each calendar year is at least
            77986     one percentage point higher than the state average;
            77987         (ii) meets the requirements of Section [ 63-38f-412 ] 63M-1-412 ;
            77988         (iii) provides:
            77989         (A) a community investment project within the enterprise zone; and
            77990         (B) a portion of the community investment project during each taxable year for which
            77991     the business applicant claims the targeted business tax incentive; and
            77992         (iv) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            77993     Administrative Rulemaking Act, is not engaged in the following, as defined by the State Tax
            77994     Commission by rule:
            77995         (A) construction;
            77996         (B) retail trade; or
            77997         (C) public utility activities.
            77998         (b) For a taxable year for which a business applicant claims a targeted business income
            77999     tax credit available under this part, the business applicant may not claim or carry forward a tax
            78000     credit available under Section [ 63-38f-413 ] 63M-1-413 , 59-7-610 , or 59-10-1007 .
            78001         (2) (a) A business applicant seeking to claim a targeted business income tax credit
            78002     under this part shall file an application as provided in Subsection (2)(b) with the local zone
            78003     administrator by no later than June 1 of the year in which the business applicant is seeking to
            78004     claim a targeted business income tax credit.
            78005         (b) The application described in Subsection (2)(a) shall include:
            78006         (i) any documentation required by the local zone administrator to demonstrate that the
            78007     business applicant meets the requirements of Subsection (1);
            78008         (ii) a plan developed by the business applicant that outlines:
            78009         (A) if the community investment project includes substantial new employment, the

            78010     projected number and anticipated wage level of the jobs that the business applicant plans to
            78011     create as the basis for qualifying for a targeted business income tax credit;
            78012         (B) if the community investment project includes new capital development, a
            78013     description of the capital development the business applicant plans to make as the basis for
            78014     qualifying for a targeted business income tax credit; and
            78015         (C) a description of how the business applicant's plan coordinates with:
            78016         (I) the goals of the enterprise zone in which the business applicant is providing a
            78017     community investment project; and
            78018         (II) the overall economic development goals of the county or municipality in which the
            78019     business applicant is providing a community investment project; and
            78020         (iii) any additional information required by the local zone administrator.
            78021         (3) (a) The local zone administrator shall:
            78022         (i) evaluate an application filed under Subsection (2); and
            78023         (ii) determine whether the business applicant is eligible for a targeted business income
            78024     tax credit.
            78025         (b) If the local zone administrator determines that the business applicant is eligible for a
            78026     targeted business income tax credit, the local zone administrator shall:
            78027         (i) certify that the business applicant is eligible for the targeted business income tax
            78028     credit;
            78029         (ii) structure the targeted business income tax credit for the business applicant in
            78030     accordance with Section [ 63-38f-503 ] 63M-1-504 ; and
            78031         (iii) monitor a business applicant to ensure compliance with this section.
            78032         (4) A local zone administrator shall report to the office by no later than June 30 of each
            78033     year:
            78034         (a) (i) any application approved by the local zone administrator during the last fiscal
            78035     year; and
            78036         (ii) the information established in Subsections [ 63-38f-503 ] 63M-1-504 (4)(a) through
            78037     (d) for each new business applicant; and

            78038         (b) (i) the status of any existing business applicants that the local zone administrator
            78039     monitors; and
            78040         (ii) any information required by the office to determine the status of an existing business
            78041     applicant.
            78042         (5) (a) By July 15 of each year, the department shall notify the local zone administrator
            78043     of the allocated cap amount that each business applicant that the local zone administrator
            78044     monitors is eligible to claim.
            78045         (b) By September 15 of each year, the local zone administrator shall notify, in writing,
            78046     each business applicant that the local zone administrator monitors of the allocated cap amount
            78047     determined by the office under Subsection (5)(a) that the business applicant is eligible to claim
            78048     for a taxable year.
            78049         Section 1790. Section 63M-1-504 , which is renumbered from Section 63-38f-503 is
            78050     renumbered and amended to read:
            78051          [63-38f-503].     63M-1-504. Targeted business income tax credit structure --
            78052      Duties of the local zone administrator -- Duties of the State Tax Commission.
            78053         (1) For taxable years beginning on or after January 1, 2002, a business applicant that is
            78054     certified under Subsection [ 63-38f-502 ] 63M-1-503 (3) and issued a targeted business tax credit
            78055     eligibility form by the office under Subsection (8) may claim a refundable tax credit:
            78056         (a) against the business applicant's tax liability under:
            78057         (i) Title 59, Chapter 7, Corporate Franchise and Income Taxes; or
            78058         (ii) Title 59, Chapter 10, Individual Income Tax Act; and
            78059         (b) subject to requirements and limitations provided by this part.
            78060         (2) The total amount of the targeted business income tax credits allowed under this part
            78061     for all business applicants may not exceed $300,000 in any fiscal year.
            78062         (3) (a) A targeted business income tax credit allowed under this part for each
            78063     community investment project provided by a business applicant may not:
            78064         (i) be claimed by a business applicant for more than seven consecutive taxable years
            78065     from the date the business applicant first qualifies for a targeted business income tax credit on

            78066     the basis of a community investment project;
            78067         (ii) be carried forward or carried back;
            78068         (iii) exceed $100,000 in total amount for the community investment project period
            78069     during which the business applicant is eligible to claim a targeted business income tax credit; or
            78070         (iv) exceed in any year that the targeted business income tax credit is claimed the lesser
            78071     of:
            78072         (A) 50% of the maximum amount allowed by the local zone administrator; or
            78073         (B) the allocated cap amount determined by the office under Subsection [ 63-38f-502 ]
            78074      63M-1-503 (5).
            78075         (b) A business applicant may apply to the local zone administrator to claim a targeted
            78076     business income tax credit allowed under this part for each community investment project
            78077     provided by the business applicant as the basis for its eligibility for a targeted business income
            78078     tax credit.
            78079         (4) Subject to other provisions of this section, the local zone administrator shall
            78080     establish for each business applicant that qualifies for a targeted business income tax credit:
            78081         (a) criteria for maintaining eligibility for the targeted business income tax credit that are
            78082     reasonably related to the community investment project that is the basis for the business
            78083     applicant's targeted business income tax credit;
            78084         (b) the maximum amount of the targeted business income tax credit the business
            78085     applicant is allowed for the community investment project period;
            78086         (c) the time period over which the total amount of the targeted business income tax
            78087     credit may be claimed;
            78088         (d) the maximum amount of the targeted business income tax credit that the business
            78089     applicant will be allowed to claim each year; and
            78090         (e) requirements for a business applicant to report to the local zone administrator
            78091     specifying:
            78092         (i) the frequency of the business applicant's reports to the local zone administrator,
            78093     which shall be made at least quarterly; and

            78094         (ii) the information needed by the local zone administrator to monitor the business
            78095     applicant's compliance with this Subsection (4) or Section [ 63-38f-502 ] 63M-1-503 that shall be
            78096     included in the report.
            78097         (5) In accordance with Subsection (4)(e), a business applicant allowed a targeted
            78098     business income tax credit under this part shall report to the local zone administrator.
            78099         (6) The amount of a targeted business income tax credit that a business applicant is
            78100     allowed to claim for a taxable year shall be reduced by 25% for each quarter in which the office
            78101     or the local zone administrator determines that the business applicant has failed to comply with
            78102     a requirement of Subsection (3) or Section [ 63-38f-502 ] 63M-1-503 .
            78103         (7) The office or local zone administrator may audit a business applicant to ensure:
            78104         (a) eligibility for a targeted business income tax credit; or
            78105         (b) compliance with Subsection (3) or Section [ 63-38f-502 ] 63M-1-503 .
            78106         (8) The office shall issue a targeted business income tax credit eligibility form in a form
            78107     jointly developed by the State Tax Commission and the office no later than 30 days after the last
            78108     day of the business applicant's taxable year showing:
            78109         (a) the maximum amount of the targeted business income tax credit that the business
            78110     applicant is eligible for that taxable year;
            78111         (b) any reductions in the maximum amount of the targeted business income tax credit
            78112     because of failure to comply with a requirement of Subsection (3) or Section [ 63-38f-502 ]
            78113      63M-1-503 ;
            78114         (c) the allocated cap amount that the business applicant may claim for that taxable year;
            78115     and
            78116         (d) the actual amount of the targeted business income tax credit that the business
            78117     applicant may claim for that taxable year.
            78118         (9) (a) A business applicant shall retain the targeted business income tax credit
            78119     eligibility form provided by the office under this Subsection (9).
            78120         (b) The State Tax Commission may audit a business applicant to ensure:
            78121         (i) eligibility for a targeted business income tax credit; or

            78122         (ii) compliance with Subsection (3) or Section [ 63-38f-502 ] 63M-1-503 .
            78123         Section 1791. Section 63M-1-601 , which is renumbered from Section 63-38f-601 is
            78124     renumbered and amended to read:
            78125     
Part 6. State Advisory Council on Science and Technology

            78126          [63-38f-601].     63M-1-601. Purpose.
            78127         The purpose of this part is to establish an advisory council on science and technology to
            78128     assist in the development of programs, communication, and use of science and technology in
            78129     governmental organizations in the state.
            78130         Section 1792. Section 63M-1-602 , which is renumbered from Section 63-38f-602 is
            78131     renumbered and amended to read:
            78132          [63-38f-602].     63M-1-602. Definition of terms.
            78133         As used in this part:
            78134         (1) "Adviser" means the state science adviser appointed under this part.
            78135         (2) "Council" means the State Advisory Council on Science and Technology created
            78136     under this part.
            78137         (3) "Director" means the governor's director for economic development.
            78138         Section 1793. Section 63M-1-603 , which is renumbered from Section 63-38f-603 is
            78139     renumbered and amended to read:
            78140          [63-38f-603].     63M-1-603. Creation.
            78141         There is created the State Advisory Council on Science and Technology within the
            78142     Governor's Office of Economic Development, which shall perform the functions and duties
            78143     provided in this part.
            78144         Section 1794. Section 63M-1-604 , which is renumbered from Section 63-38f-604 is
            78145     renumbered and amended to read:
            78146          [63-38f-604].     63M-1-604. Members -- Appointment -- Terms --
            78147      Qualifications -- Vacancies -- Chair and vice chair -- Executive secretary -- Executive
            78148      committee -- Quorum -- Expenses.
            78149         (1) The council comprises the following nonvoting members or their designees:

            78150         (a) the adviser;
            78151         (b) the executive director of the Department of Natural Resources;
            78152         (c) the executive director of the Department of Community and Culture;
            78153         (d) the executive director of the Department of Health;
            78154         (e) the executive director of the Department of Environmental Quality;
            78155         (f) the commissioner of agriculture and food;
            78156         (g) the commissioner of higher education;
            78157         (h) the state planning coordinator; and
            78158         (i) the executive director of the Department of Transportation.
            78159         (2) The governor may appoint other voting members, not to exceed 12.
            78160         (3) (a) Except as required by Subsection (3)(b), as terms of current council members
            78161     expire, the governor shall appoint each new member or reappointed member to a four-year
            78162     term.
            78163         (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
            78164     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
            78165     council members are staggered so that approximately half of the council is appointed every two
            78166     years.
            78167         (4) The governor shall consider all institutions of higher education in the state in the
            78168     appointment of council members.
            78169         (5) The voting members of the council shall be experienced or knowledgeable in the
            78170     application of science and technology to business, industry, or public problems and have
            78171     demonstrated their interest in and ability to contribute to the accomplishment of the purposes of
            78172     this part.
            78173         (6) When a vacancy occurs in the membership for any reason, the replacement shall be
            78174     appointed for the unexpired term.
            78175         (7) (a) Each year the council shall select from its membership a chair and a vice chair.
            78176         (b) The chair and vice chair shall hold office for one year or until a successor is
            78177     appointed and qualified.

            78178         (8) The adviser serves as executive secretary of the council.
            78179         (9) An executive committee shall be established consisting of the chair, vice chair, and
            78180     the adviser.
            78181         (10) (a) In order to conduct business matters of the council at regularly convened
            78182     meetings, a quorum consisting of a simple majority of the total voting membership of the
            78183     council is required.
            78184         (b) All matters of business affecting public policy require not less than a simple majority
            78185     of affirmative votes of the total membership.
            78186         (11) (a) (i) Members who are not government employees shall receive no compensation
            78187     or benefits for their services, but may receive per diem and expenses incurred in the
            78188     performance of the member's official duties at the rates established by the Division of Finance
            78189     under Sections 63A-3-106 and 63A-3-107 .
            78190         (ii) Members may decline to receive per diem and expenses for their service.
            78191         (b) (i) State government officer and employee members who do not receive salary, per
            78192     diem, or expenses from their agency for their service may receive per diem and expenses
            78193     incurred in the performance of their official duties from the council at the rates established by
            78194     the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            78195         (ii) State government officer and employee members may decline to receive per diem
            78196     and expenses for their service.
            78197         (c) (i) Higher education members who do not receive salary, per diem, or expenses
            78198     from the entity that they represent for their service may receive per diem and expenses incurred
            78199     in the performance of their official duties from the committee at the rates established by the
            78200     Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            78201         (ii) Higher education members may decline to receive per diem and expenses for their
            78202     service.
            78203         Section 1795. Section 63M-1-605 , which is renumbered from Section 63-38f-605 is
            78204     renumbered and amended to read:
            78205          [63-38f-605].     63M-1-605. Duties and powers.

            78206         (1) The council shall:
            78207         (a) encourage the use of science and technology in the administration of state and local
            78208     government;
            78209         (b) develop programs whereby state agencies and the several public and private
            78210     institutions of higher education and technical colleges within the state may assist business and
            78211     industry in the utilization of science and technology;
            78212         (c) further communication between agencies of federal, state, and local government
            78213     who wish to utilize science and technology;
            78214         (d) develop programs of cooperation on matters of science and technology between:
            78215         (i) state and local government agencies;
            78216         (ii) the several public and private institutions of higher education and technical colleges
            78217     within the state; and
            78218         (iii) business and industry within the state; or
            78219         (iv) between any combination of these;
            78220         (e) provide a means whereby government, business, industry, and higher education may
            78221     be represented in the formulation and implementation of state policies and programs on matters
            78222     of science and technology;
            78223         (f) review, catalog, and compile the research and development uses by the state
            78224     universities of the revenue derived from mineral lease funds on state and federal lands;
            78225         (g) provide to the Legislature an annual report on the expenditure and utilization of
            78226     these mineral lease funds;
            78227         (h) make recommendations to the Legislature on the further uses of these mineral lease
            78228     funds in order to stimulate research and development directed toward the more effective
            78229     utilization of the state's natural resources; and
            78230         (i) prepare and lodge an annual report with the governor and with the Legislature.
            78231         (2) The council may:
            78232         (a) in accordance with [Title 63, Chapter 40, Federal Assistance Management Program]
            78233     Title 63J, Chapter 5, Federal Funds Procedures, apply for, receive, and disburse funds,

            78234     contributions, or grants from whatever source for the purposes set forth in this part;
            78235         (b) employ, compensate, and prescribe the duties and powers of those individuals,
            78236     subject to the provisions of this part relating to the adviser, necessary to execute the duties and
            78237     powers of the council; and
            78238         (c) enter into contracts for the purposes of this part.
            78239         Section 1796. Section 63M-1-606 , which is renumbered from Section 63-38f-606 is
            78240     renumbered and amended to read:
            78241          [63-38f-606].     63M-1-606. Adviser -- Duties and powers.
            78242         (1) The adviser shall be appointed by the governor.
            78243         (2) The adviser shall be experienced or knowledgeable in the application of science and
            78244     technology to business, industry, or public problems and shall have demonstrated interest in or
            78245     ability to contribute to the accomplishment of the purposes of this part.
            78246         (3) The adviser shall be compensated pursuant to the wage and salary classification plan
            78247     for appointed officers of the state currently in effect.
            78248         (4) (a) The adviser shall have those duties and powers the council assigns.
            78249         (b) The adviser, with the advice of the council, may enter into contracts and agreements
            78250     and may incur expenses necessary to fulfill the purposes of this part.
            78251         (5) The adviser shall be administratively responsible to the director of the office.
            78252         Section 1797. Section 63M-1-607 , which is renumbered from Section 63-38f-607 is
            78253     renumbered and amended to read:
            78254          [63-38f-607].     63M-1-607. Request for information.
            78255         All departments, divisions, boards, commissions, agencies, institutions, and all other
            78256     instrumentalities of the state shall, upon request of the council, provide the council with any
            78257     information that these instrumentalities have concerning research in science and technology.
            78258         Section 1798. Section 63M-1-608 , which is renumbered from Section 63-38f-608 is
            78259     renumbered and amended to read:
            78260          [63-38f-608].     63M-1-608. Science education program.
            78261         (1) (a) There is established an informal science and technology education program

            78262     within the Governor's Office of Economic Development.
            78263         (b) The state science advisor shall act as the executive director of the program.
            78264         (c) The State Advisory Council on Science and Technology shall advise the program,
            78265     including:
            78266         (i) approving all monies expended by the science and technology education program;
            78267         (ii) approving all operations of the program; and
            78268         (iii) making policies and procedures to govern the program.
            78269         (2) The program may:
            78270         (a) provide informal science and technology-based education to elementary and
            78271     secondary students;
            78272         (b) expose public education students to college level science and technology disciplines;
            78273         (c) administer a science and technology camp program; and
            78274         (d) provide other informal promotion of science and technology education in this state,
            78275     including the direct sponsorship of science fairs and science olympiads.
            78276         (3) The science and technology camp program described under Subsection (2)(c) shall
            78277     be:
            78278         (a) provided exclusively for elementary and secondary students and their teachers;
            78279         (b) established as a grant program for camp providers; and
            78280         (c) administered based upon annual requests for proposals, a documented review
            78281     process, and grant awards.
            78282         Section 1799. Section 63M-1-701 , which is renumbered from Section 63-38f-702 is
            78283     renumbered and amended to read:
            78284     
Part 7. Centers for Excellence

            78285          [63-38f-702].     63M-1-701. Title.
            78286         This part is known as the "Centers of Excellence Act."
            78287         Section 1800. Section 63M-1-702 , which is renumbered from Section 63-38f-701 is
            78288     renumbered and amended to read:
            78289          [63-38f-701].     63M-1-702. Purpose.

            78290         (1) (a) The Legislature recognizes that the growth of new industry and expansion of
            78291     existing industry requires a strong technology base, new ideas, concepts, innovations, and
            78292     prototypes.
            78293         (b) These generally come from strong research colleges and universities.
            78294         (c) Technical research in Utah's colleges and universities should be enhanced and
            78295     expanded, particularly in those areas targeted by the state for economic development.
            78296         (d) Most states are enhancing their research base by direct funding, usually on a
            78297     matching basis.
            78298         (e) The purpose of this part is to catalyze and enhance the growth of these technologies
            78299     by encouraging interdisciplinary research activities in targeted areas and by facilitating the
            78300     transition of these technologies out of the university environment into industry where the
            78301     technologies can be used to enhance job creation.
            78302         (f) The Legislature recognizes that one source of funding is in matching state funds with
            78303     federal funds and industrial support to provide the needed new technologies.
            78304         (2) The Legislature recommends that the governor consider the allocation of economic
            78305     development funds for Centers of Excellence to be matched by industry and federal grants on at
            78306     least a two-for-one basis for colleges and universities in the state that offer any doctoral
            78307     degrees.
            78308         (3) (a) The Legislature recommends that the funds be allocated on a competitive basis
            78309     to the various colleges and universities in the state and to companies working in partnership
            78310     with colleges and universities to commercialize their technologies.
            78311         (b) The funds made available should be used to support interdisciplinary research in
            78312     specialized Centers of Excellence in technologies that are considered to have potential for
            78313     economic development in this state and to help transition these technologies out of the colleges
            78314     and universities into industry.
            78315         Section 1801. Section 63M-1-703 , which is renumbered from Section 63-38f-703 is
            78316     renumbered and amended to read:
            78317          [63-38f-703].     63M-1-703. Definitions.

            78318         As used in this part:
            78319         (1) "Business team consultant" means an experienced technology executive,
            78320     entrepreneur, or business person who:
            78321         (a) is recruited by the office through a request for proposal process to work directly
            78322     with a college or university in the Centers for Excellence program; and
            78323         (b) works with the institution to facilitate the transition of its technology into industry
            78324     by assisting the institution in developing strategies, including spin out strategies when
            78325     appropriate, and go-to-market plans, and identifying and working with potential customers and
            78326     partners.
            78327         (2) "Centers of excellence" means university-based, federal and industry-supported,
            78328     cooperative research and development programs.
            78329         (3) "Direct license" means the licensing between a company and a Utah college or
            78330     university of technology developed at the college or university for the intent of commercializing
            78331     the technology or facilitating its transition into industry.
            78332         (4) "Licensee" means:
            78333         (a) a company that executes or is in the process of executing a direct license; or
            78334         (b) a sublicensee of the technology from a direct license.
            78335         Section 1802. Section 63M-1-704 , which is renumbered from Section 63-38f-704 is
            78336     renumbered and amended to read:
            78337          [63-38f-704].     63M-1-704. Administration -- Grants.
            78338         (1) The Governor's Office of Economic Development shall administer this part.
            78339         (2) (a) The office may award Centers of Excellence grants to the various colleges,
            78340     universities, and licensees in the state for the purposes of this part.
            78341         (b) The governor's Office of Economic Development shall develop a process to
            78342     determine whether a college or university that receives a grant under this part must return the
            78343     grant proceeds or a portion of the grant proceeds if the technology that is developed with the
            78344     grant proceeds is licensed to a licensee that:
            78345         (i) does not maintain a manufacturing or service location in the state from which the

            78346     licensee or a sublicensee exploits the technology; or
            78347         (ii) initially maintains a manufacturing or service location in the state from which the
            78348     licensee or a sublicensee exploits the technology, but within five years after issuance of the
            78349     license the licensee or sublicensee transfers the manufacturing or service location for the
            78350     technology to a location out of the state.
            78351         (c) A repayment by a college or university of grant proceeds or a portion of the grant
            78352     proceeds shall come only from the proceeds of the license established between the licensee and
            78353     the college or university.
            78354         (d) (i) A licensee that receives a grant under this part shall return the grant proceeds or
            78355     a portion of the grant proceeds to the office if the licensee:
            78356         (A) does not maintain a manufacturing or service location in the state from which the
            78357     licensee exploits the technology; or
            78358         (B) initially maintains a manufacturing or service location in the state from which the
            78359     licensee exploits the technology, but within five years after issuance of the grant the licensee
            78360     transfers the manufacturing or service location for the technology to an out of state location.
            78361         (ii) A repayment by a licensee that receives a grant shall come only from the proceeds
            78362     of the license to that licensee.
            78363         (iii) A repayment by a licensee shall be prorated based only on the number of full years
            78364     the licensee operated in the state from the date of the awarded grant.
            78365         (3) (a) Funding allocations shall be made by the office with the advice of the State
            78366     Advisory Council for Science and Technology and the board.
            78367         (b) Each proposal shall receive the best available outside review.
            78368         (4) (a) In considering each proposal, the office shall weigh technical merit, the level of
            78369     matching funds from private and federal sources, and the potential for job creation and
            78370     economic development.
            78371         (b) Proposals or consortia that combine and coordinate related research at two or more
            78372     colleges and universities shall be encouraged.
            78373         (5) The State Advisory Council on Science and Technology shall review the activities

            78374     and progress of grant recipients on a regular basis and assist the office in preparing an annual
            78375     report on the accomplishments and direction of the Centers of Excellence Program.
            78376         Section 1803. Section 63M-1-705 , which is renumbered from Section 63-38f-705 is
            78377     renumbered and amended to read:
            78378          [63-38f-705].     63M-1-705. Business team consultants.
            78379         (1) The office may enter into work agreements with business team consultants through
            78380     a request for proposal process to participate in the Centers for Excellence program.
            78381         (2) Under a work agreement, a business team consultant shall assist a college or
            78382     university in facilitating the transition of its technology into industry.
            78383         Section 1804. Section 63M-1-801 , which is renumbered from Section 63-38f-801 is
            78384     renumbered and amended to read:
            78385     
Part 8. Shared Foreign Sales Corporations

            78386          [63-38f-801].     63M-1-801. Creation of shared foreign sales corporations.
            78387         The office may create one or more shared foreign sales corporations, qualifying as such
            78388     under Section 927(g), Internal Revenue Code of 1986, and may name directors or managers of
            78389     these corporations at its discretion.
            78390         Section 1805. Section 63M-1-802 , which is renumbered from Section 63-38f-802 is
            78391     renumbered and amended to read:
            78392          [63-38f-802].     63M-1-802. Management fees.
            78393         (1) All expenses incurred in establishing and maintaining shared foreign sales
            78394     corporations shall be initially paid for by the office but shall be reimbursed to the office by the
            78395     participants in each shared foreign sales corporation created under Section [ 63-38f-801 ]
            78396      63M-1-801 on a pro rata basis determined by the office.
            78397         (2) The office may charge the participants management fees that are reasonable to
            78398     maintain and manage each of the shared foreign sales corporations.
            78399         (3) All monies obtained by the office in excess of office expenditures in connection with
            78400     the management of shared foreign sales corporations may be used at the discretion of the office
            78401     for the office's other activities in promoting exporting.

            78402         (4) The fees collected and the expenditures made shall be reported to the Legislature
            78403     each year.
            78404         Section 1806. Section 63M-1-901 , which is renumbered from Section 63-38f-901 is
            78405     renumbered and amended to read:
            78406     
Part 9. Industrial Assistance Fund

            78407          [63-38f-901].     63M-1-901. Purpose statement.
            78408         The Legislature finds and declares that the fostering and development of industry in
            78409     Utah is a state public purpose necessary to assure the welfare of its citizens, the growth of its
            78410     economy, and adequate employment for its citizens.
            78411         Section 1807. Section 63M-1-902 , which is renumbered from Section 63-38f-902 is
            78412     renumbered and amended to read:
            78413          [63-38f-902].     63M-1-902. Definitions.
            78414         As used in this part:
            78415         (1) "Administrator" means the director or the director's designee.
            78416         (2) "Board" means the Board of Business and Economic Development.
            78417         (3) "Company creating an economic impediment" means a company that discourages
            78418     economic development within a reasonable radius of its location because of:
            78419         (a) odors;
            78420         (b) noise;
            78421         (c) pollution;
            78422         (d) health hazards; or
            78423         (e) other activities similar to those described in Subsections (3)(a) through (d).
            78424         (4) "Economic opportunities" means unique business situations or community
            78425     circumstances which lend themselves to the furtherance of the economic interests of the state by
            78426     providing a catalyst or stimulus to the growth or retention, or both, of commerce and industry
            78427     in the state.
            78428         (5) "Economically disadvantaged rural area" means a geographic area designated by the
            78429     board under Section [ 63-38f-909 ] 63M-1-910 .

            78430         (6) "Fund" means the restricted account known as the Industrial Assistance Fund
            78431     created in Section [ 63-38f-903 ] 63M-1-903 .
            78432         (7) "Replacement company" means a company locating its business or part of its
            78433     business in a location vacated by a company creating an economic impediment.
            78434         (8) "Targeted industry" means an industry or group of industries targeted by the board
            78435     under Section [ 63-38f-909 ] 63M-1-910 , for economic development in the state.
            78436         Section 1808. Section 63M-1-903 , which is renumbered from Section 63-38f-903 is
            78437     renumbered and amended to read:
            78438          [63-38f-903].     63M-1-903. Industrial Assistance Fund created.
            78439         (1) There is created within the General Fund a restricted account known as the
            78440     Industrial Assistance Fund of which:
            78441         (a) up to 50% shall be used in economically disadvantaged rural areas; and
            78442         (b) up to 20% may be used to take timely advantage of economic opportunities as they
            78443     arise.
            78444         (2) The fund shall be administered by the administrator under the policy direction of the
            78445     board.
            78446         (3) The administrator may hire appropriate support staff.
            78447         (4) The cost of administering the fund shall be paid from monies in the fund.
            78448         (5) Interest accrued from investment of monies in the fund shall remain in the fund.
            78449         Section 1809. Section 63M-1-904 , which is renumbered from Section 63-38f-903.5 is
            78450     renumbered and amended to read:
            78451          [63-38f-903.5].     63M-1-904. Rural Fast Track Program -- Creation --
            78452      Funding -- Qualifications for program participation -- Awards -- Reports.
            78453         (1) (a) There is created the Rural Fast Track Program, hereafter referred to in this
            78454     section as "the program."
            78455         (b) The program is a funded component of the economically disadvantaged rural areas
            78456     designation in Subsection [ 63-38f-903 ] 63M-1-903 (1)(a).
            78457         (2) The purpose of the program is to provide an efficient way for small companies in

            78458     rural Utah to receive incentives for creating high paying jobs in the rural areas of the state and
            78459     to further promote business and economic development in rural Utah.
            78460         (3) (a) Twenty percent of the money in the Industrial Assistance Fund at the beginning
            78461     of each fiscal year shall be used to fund the program.
            78462         (b) The 20% referred to in Subsection (3)(a) is not in addition to but is a part of the up
            78463     to 50% designation for economically disadvantaged rural areas referred to in Subsection
            78464     [ 63-38f-903 ] 63M-1-903 (1)(a).
            78465         (c) If any of the 20% allocation referred to in Subsection (3)(a) has not been used in the
            78466     program by the end of the third quarter of each fiscal year, that money may be used for any
            78467     other loan, grant, or assistance program offered through the Industrial Assistance Fund during
            78468     the fiscal year.
            78469         (4) (a) To qualify for participation in the program a company shall:
            78470         (i) complete and file with the office an application for participation in the program,
            78471     signed by an officer of the company;
            78472         (ii) be located and conduct its business operations in a county in the state that has:
            78473         (A) a population of less than 30,000; and
            78474         (B) an average household income of less than $60,000 as reflected in the most recently
            78475     available data collected and reported by the United States Census Bureau;
            78476         (iii) have been in business in the state for at least two years; and
            78477         (iv) have at least two employees.
            78478         (b) (i) Office staff shall verify an applicant's qualifications under Subsection (4)(a).
            78479         (ii) The application must be approved by the administrator in order for a company to
            78480     receive an incentive or other assistance under this section.
            78481         (c) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            78482     Administrative Rulemaking Act, the administrator may make rules governing:
            78483         (i) the content of the application form referred to in Subsection (4)(a)(i);
            78484         (ii) who qualifies as an employee under Subsection (4)(a)(iv); and
            78485         (iii) the verification procedure referred to in Subsection (4)(b).

            78486         (5) (a) The administrator shall make incentive cash awards to small companies under
            78487     this section based on the following criteria:
            78488         (i) $1,000 for each new incremental job that pays over 110% of the county's average
            78489     annual wage;
            78490         (ii) $1,250 for each incremental job that pays over 115% of the county's average annual
            78491     wage; and
            78492         (iii) $1,500 for each incremental job that pays over 125% of the county's average annual
            78493     wage.
            78494         (b) The administrator shall make a cash award under Subsection (5)(a) when a new
            78495     incremental job has been in place for at least 12 months.
            78496         (c) The creation of a new incremental job by a company is based on the number of
            78497     employees at the company during the previous 24 months.
            78498         (d) (i) A small company may also apply for grants, loans, or other financial assistance
            78499     under the program to help develop its business in rural Utah and may receive up to $50,000
            78500     under the program if approved by the administrator.
            78501         (ii) The board must approve a distribution that exceeds the $50,000 cap under
            78502     Subsection (5)(d)(i).
            78503         (6) The administrator shall make a quarterly report to the board of the awards made by
            78504     the administrator under this section and an annual report to the Legislative Workforce Services
            78505     and Community and Economic Development Interim Committee as to the awards and their
            78506     impact on economic development in the state's rural areas.
            78507         Section 1810. Section 63M-1-905 , which is renumbered from Section 63-38f-904 is
            78508     renumbered and amended to read:
            78509          [63-38f-904].     63M-1-905. Loans, grants, and assistance -- Repayment --
            78510      Earned credits.
            78511         (1) (a) A company that qualifies under Section [ 63-38f-905 ] 63M-1-906 may receive
            78512     loans, grants, or other financial assistance from the fund for expenses related to establishment,
            78513     relocation, or development of industry in Utah.

            78514         (b) A company creating an economic impediment that qualifies under Section
            78515     [ 63-38f-907 ] 63M-1-908 may in accordance with this part receive loans, grants, or other
            78516     financial assistance from the fund for the expenses of the company creating an economic
            78517     impediment related to:
            78518         (i) relocation to a rural area in Utah of the company creating an economic impediment;
            78519     and
            78520         (ii) the siting of a replacement company.
            78521         (c) An entity offering an economic opportunity that qualifies under Section
            78522     [ 63-38f-908 ] 63M-1-909 may:
            78523         (i) receive loans, grants, or other financial assistance from the fund for expenses related
            78524     to the establishment, relocation, retention, or development of industry in the state; and
            78525         (ii) include infrastructure or other economic development precursor activities that act as
            78526     a catalyst and stimulus for economic activity likely to lead to the maintenance or enlargement of
            78527     the state's tax base.
            78528         (2) (a) Subject to Subsection (2)(b), the administrator has authority to determine the
            78529     structure, amount, and nature of any loan, grant, or other financial assistance from the fund.
            78530         (b) Loans made under Subsection (2)(a) shall be structured so the intended repayment
            78531     or return to the state, including cash or credit, equals at least the amount of the assistance
            78532     together with an annual interest charge as negotiated by the administrator.
            78533         (c) Payments resulting from grants awarded from the fund shall be made only after the
            78534     administrator has determined that the company has satisfied the conditions upon which the
            78535     payment or earned credit was based.
            78536         (3) (a) (i) Except as provided in Subsection (3)(b), the administrator may provide for a
            78537     system of earned credits that may be used to support grant payments or in lieu of cash
            78538     repayment of a fund loan obligation.
            78539         (ii) The value of the credits described in Subsection (3)(a)(i) shall be based on factors
            78540     determined by the administrator, including:
            78541         (A) the number of Utah jobs created;

            78542         (B) the increased economic activity in Utah; or
            78543         (C) other events and activities that occur as a result of the fund assistance.
            78544         (b) (i) The administrator shall provide for a system of credits to be used to support
            78545     grant payments or in lieu of cash repayment of a fund loan when loans are made to a company
            78546     creating an economic impediment.
            78547         (ii) The value of the credits described in Subsection (3)(b)(i) shall be based on factors
            78548     determined by the administrator, including:
            78549         (A) the number of Utah jobs created;
            78550         (B) the increased economic activity in Utah; or
            78551         (C) other events and activities that occur as a result of the fund assistance.
            78552         (4) (a) A cash loan repayment or other cash recovery from a company receiving
            78553     assistance under this section, including interest, shall be deposited into the fund.
            78554         (b) The administrator and the Division of Finance shall determine the manner of
            78555     recognizing and accounting for the earned credits used in lieu of loan repayments or to support
            78556     grant payments as provided in Subsection (3).
            78557         (5) (a) At the end of each fiscal year, the unrestricted, undesignated General Fund
            78558     balance after the transfers of surplus of General Fund revenues described in this Subsection
            78559     (5)(a) shall be earmarked to the Industrial Assistance Fund in an amount equal to any credit that
            78560     has accrued under this part. The earmark required by this Subsection (5)(a) shall be made after
            78561     the transfer of surplus General Fund revenues is made:
            78562         (i) to the General Fund Budget Reserve Account as provided in Section [ 63-38-2.5 ]
            78563      63J-1-202 ; and
            78564         (ii) beginning with the fiscal year ending June 30, 2007, as provided in Section
            78565     [ 63-38-2.7 ] 63J-1-204 .
            78566         (b) These credit amounts may not be used for purposes of the fund as provided in this
            78567     part until appropriated by the Legislature.
            78568         Section 1811. Section 63M-1-906 , which is renumbered from Section 63-38f-905 is
            78569     renumbered and amended to read:

            78570          [63-38f-905].     63M-1-906. Qualification for assistance.
            78571         (1) Except as provided in Section [ 63-38f-907 ] 63M-1-908 or [Section 63-38f-908 ]
            78572      63M-1-909 , the administrator shall determine which industries, companies, and individuals
            78573     qualify to receive monies from the fund. Except as provided by Subsection (2), to qualify for
            78574     financial assistance from the fund, an applicant shall:
            78575         (a) demonstrate to the satisfaction of the administrator that the applicant will expend
            78576     funds in Utah with employees, vendors, subcontractors, or other businesses in an amount
            78577     proportional with monies provided from the fund at a minimum ratio of 2 to 1 per year or other
            78578     more stringent requirements as established from time to time by the board for a minimum period
            78579     of five years beginning with the date the loan or grant was approved;
            78580         (b) demonstrate to the satisfaction of the administrator the applicant's ability to sustain
            78581     economic activity in the state sufficient to repay, by means of cash or appropriate credits, the
            78582     loan provided by the fund; and
            78583         (c) satisfy other criteria the administrator considers appropriate.
            78584         (2) (a) The administrator may exempt an applicant from the requirements of Subsection
            78585     (1)(a) or (b) if:
            78586         (i) the financial assistance is provided to an applicant for the purpose of locating all or
            78587     any portion of its operations to an economically disadvantaged rural area;
            78588         (ii) the applicant is part of a targeted industry;
            78589         (iii) the applicant is a quasi-public corporation organized under Title 16, Chapter 6a,
            78590     Utah Revised Nonprofit Corporation Act, or Title 63E, Chapter 2, Independent Corporations
            78591     Act, and its operations, as demonstrated to the satisfaction of the administrator, will provide
            78592     significant economic stimulus to the growth of commerce and industry in the state; or
            78593         (iv) the applicant is an entity offering an economic opportunity under Section
            78594     [ 63-38f-908 ] 63M-1-909 .
            78595         (b) The administrator may not exempt the applicant from the requirement under
            78596     Subsection [ 63-38f-904 ] 63M-1-905 (2)(b) that the loan be structured so that the repayment or
            78597     return to the state equals at least the amount of the assistance together with an annual interest

            78598     charge.
            78599         (3) The administrator shall:
            78600         (a) for applicants not described in Subsection (2)(a):
            78601         (i) make findings as to whether or not each applicant has satisfied each of the conditions
            78602     set forth in Subsection (1); and
            78603         (ii) monitor the continued compliance by each applicant with each of the conditions set
            78604     forth in Subsection (1) for five years;
            78605         (b) for applicants described in Subsection (2)(a), make findings as to whether the
            78606     economic activities of each applicant has resulted in the creation of new jobs on a per capita
            78607     basis in the economically disadvantaged rural area or targeted industry in which the applicant is
            78608     located;
            78609         (c) monitor the compliance by each applicant with the provisions of any contract or
            78610     agreement entered into between the applicant and the state as provided in Section [ 63-38f-906 ]
            78611      63M-1-907 ; and
            78612         (d) make funding decisions based upon appropriate findings and compliance.
            78613         Section 1812. Section 63M-1-907 , which is renumbered from Section 63-38f-906 is
            78614     renumbered and amended to read:
            78615          [63-38f-906].     63M-1-907. Agreements.
            78616         The administrator shall enter into agreements with each successful applicant that have
            78617     specific terms and conditions for each loan or assistance, including:
            78618         (1) repayment schedules;
            78619         (2) interest rates;
            78620         (3) specific economic activity required to qualify for the loan or assistance or for
            78621     repayment credits;
            78622         (4) collateral or security, if any; and
            78623         (5) other terms and conditions considered appropriate by the administrator.
            78624         Section 1813. Section 63M-1-908 , which is renumbered from Section 63-38f-907 is
            78625     renumbered and amended to read:

            78626          [63-38f-907].     63M-1-908. Financial assistance to companies that create
            78627      economic impediments.
            78628         (1) (a) The administrator may provide monies from the fund to a company creating an
            78629     economic impediment if that company:
            78630         (i) applies to the administrator;
            78631         (ii) relocates to a rural area in Utah; and
            78632         (iii) meets the qualifications of Subsection (1)(b).
            78633         (b) Except as provided by Subsection (2), to qualify for financial assistance from the
            78634     fund, a company creating an economic impediment shall:
            78635         (i) demonstrate to the satisfaction of the administrator that the company creating an
            78636     economic impediment, its replacement company, or in the aggregate the company creating the
            78637     economic impediment and its replacement company:
            78638         (A) will expend funds in Utah with employees, vendors, subcontractors, or other
            78639     businesses in an amount proportional with monies provided from the fund at a minimum ratio of
            78640     2 to 1 per year or other more stringent requirements as established from time to time by the
            78641     board for a minimum period of five years beginning with the date the loan or grant was
            78642     approved; and
            78643         (B) can sustain economic activity in the state sufficient to repay, by means of cash or
            78644     appropriate credits, the loan provided by the fund; and
            78645         (ii) satisfy other criteria the administrator considers appropriate.
            78646         (2) (a) The administrator may exempt a company creating an economic impediment
            78647     from the requirements of Subsection (1)(b)(i)(A) if:
            78648         (i) the financial assistance is provided to a company creating an economic impediment
            78649     for the purpose of locating all or any portion of its operations to an economically disadvantaged
            78650     rural area; or
            78651         (ii) its replacement company is part of a targeted industry.
            78652         (b) The administrator may not exempt a company creating an economic impediment
            78653     from the requirement under Subsection [ 63-38f-904 ] 63M-1-905 (2)(b) that the loan be

            78654     structured so that the repayment or return to the state equals at least the amount of the
            78655     assistance together with an annual interest charge.
            78656         (3) The administrator shall:
            78657         (a) make findings as to whether or not a company creating an economic impediment, its
            78658     replacement company, or both, have satisfied each of the conditions set forth in Subsection (1);
            78659         (b) monitor the compliance by a company creating an economic impediment, its
            78660     replacement company, or both, with:
            78661         (i) each of the conditions set forth in Subsection (1); and
            78662         (ii) any contract or agreement under Section [ 63-38f-906 ] 63M-1-907 entered into
            78663     between:
            78664         (A) the company creating an economic impediment; and
            78665         (B) the state; and
            78666         (c) make funding decisions based upon appropriate findings and compliance.
            78667         Section 1814. Section 63M-1-909 , which is renumbered from Section 63-38f-908 is
            78668     renumbered and amended to read:
            78669          [63-38f-908].     63M-1-909. Financial assistance to entities offering economic
            78670      opportunities.
            78671         (1) Subject to the duties and powers of the board under Section [ 63-38f-303 ]
            78672      63M-1-303 , the administrator may provide monies from the fund to an entity offering an
            78673     economic opportunity if that entity:
            78674         (a) applies to the administrator; and
            78675         (b) meets the qualifications of Subsection (2).
            78676         (2) The applicant shall:
            78677         (a) demonstrate to the satisfaction of the administrator the nature of the economic
            78678     opportunity and the related benefit to the economic well-being of the state by providing
            78679     evidence documenting the logical and compelling linkage, either direct or indirect, between the
            78680     expenditure of monies necessitated by the economic opportunity and the likelihood that the
            78681     state's tax base will be maintained or enlarged;

            78682         (b) demonstrate how the funding request will act in concert with other state, federal, or
            78683     local agencies to achieve the economic benefit;
            78684         (c) demonstrate how the funding request will act in concert with free market principles;
            78685         (d) satisfy other criteria the administrator considers appropriate; and
            78686         (e) be either:
            78687         (i) an entity whose purpose is to exclusively or substantially promote, develop, or
            78688     maintain the economic welfare and prosperity of the state as a whole, regions of the state, or
            78689     specific components of the state; or
            78690         (ii) a company or individual that does not otherwise qualify under Section [ 63-38f-905 ]
            78691      63M-1-906 .
            78692         (3) Subject to the duties and powers of the board under Section [ 63-38f-303 ]
            78693      63M-1-303 , the administrator shall:
            78694         (a) make findings as to whether an applicant has satisfied each of the conditions set
            78695     forth in Subsection (2);
            78696         (b) establish benchmarks and timeframes in which progress toward the completion of
            78697     the agreed upon activity is to occur;
            78698         (c) monitor compliance by an applicant with any contract or agreement entered into by
            78699     the applicant and the state as provided by Section [ 63-38f-906 ] 63M-1-907 ; and
            78700         (d) make funding decisions based upon appropriate findings and compliance.
            78701         Section 1815. Section 63M-1-910 , which is renumbered from Section 63-38f-909 is
            78702     renumbered and amended to read:
            78703          [63-38f-909].     63M-1-910. Annual policy considerations.
            78704         (1) The board shall determine annually which industries or groups of industries shall be
            78705     targeted industries as defined in Section [ 63-38f-902 ] 63M-1-902 .
            78706         (2) In designating an economically disadvantaged rural area, the board shall consider
            78707     the average agricultural and nonagricultural wage, personal income, unemployment, and
            78708     employment in the area.
            78709         (3) In evaluating the economic impact of applications for assistance, the board shall use

            78710     an econometric cost-benefit model or models adopted by the Governor's Office of Planning and
            78711     Budget.
            78712         (4) The board may establish:
            78713         (a) minimum interest rates to be applied to loans granted that reflect a fair social rate of
            78714     return to the state comparable to prevailing market-based rates such as the prime rate, U.S.
            78715     Government T-bill rate, or bond coupon rate as paid by the state, adjusted by social indicators
            78716     such as the rate of unemployment; and
            78717         (b) minimum applicant expense ratios, as long as they are at least equal to those
            78718     required under Subsection [ 63-38f-905 ] 63M-1-906 (1)(a) or [ 63-38f-907 ]
            78719      63M-1-908 (1)(b)(i)(A).
            78720         Section 1816. Section 63M-1-1001 , which is renumbered from Section 63-38f-1001 is
            78721     renumbered and amended to read:
            78722     
Part 10. Biotechnology Regulation

            78723          [63-38f-1001].     63M-1-1001. Definitions.
            78724         As used in this part, "biotechnology" is:
            78725         (1) the modification of living organisms by recombinant DNA techniques; and
            78726         (2) a means to accomplish, through genetic engineering, the same kinds of
            78727     modifications accomplished through traditional genetic techniques such as crossbreeding.
            78728         Section 1817. Section 63M-1-1002 , which is renumbered from Section 63-38f-1002 is
            78729     renumbered and amended to read:
            78730          [63-38f-1002].     63M-1-1002. Confidential information.
            78731         (1) A state agency having access under federal law to biotechnology trade secrets and
            78732     related confidential information shall manage the trade secrets and related confidential records
            78733     as protected records under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
            78734     Access and Management Act.
            78735         (2) The records described in this section may be disclosed under the balancing
            78736     provisions of [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
            78737     Management Act, when a determination is made that disclosure is essential for the protection of

            78738     the public's health or environment.
            78739         Section 1818. Section 63M-1-1003 , which is renumbered from Section 63-38f-1003 is
            78740     renumbered and amended to read:
            78741          [63-38f-1003].     63M-1-1003. Preemption of local regulation.
            78742         (1) A county, city, town, or other political subdivision may not regulate the
            78743     technological processes relating to the development and use of biotechnologically created
            78744     materials and organisms.
            78745         (2) This preemption does not affect the powers of a county, city, town, or other
            78746     political subdivision, including the power to regulate land use, business, industry, construction,
            78747     and public utilities, to protect the public health or environment, or to provide fire protection and
            78748     other public safety services.
            78749         Section 1819. Section 63M-1-1101 , which is renumbered from Section 63-38f-1101 is
            78750     renumbered and amended to read:
            78751     
Part 11. Recycling Market Development Zone Act

            78752          [63-38f-1101].     63M-1-1101. Title.
            78753         This part is known as the "Recycling Market Development Zone Act."
            78754         Section 1820. Section 63M-1-1102 , which is renumbered from Section 63-38f-1102 is
            78755     renumbered and amended to read:
            78756          [63-38f-1102].     63M-1-1102. Definitions.
            78757         As used in this part:
            78758         (1) "Composting" means the controlled decay of landscape waste or sewage sludge and
            78759     organic industrial waste, or a mixture of these, by the action of bacteria, fungi, molds, and other
            78760     organisms.
            78761         (2) "Postconsumer waste material" means any product generated by a business or
            78762     consumer that has served its intended end use, and that has been separated from solid waste for
            78763     the purposes of collection, recycling, and disposition and that does not include secondary waste
            78764     material.
            78765         (3) (a) "Recovered materials" means waste materials and by-products that have been

            78766     recovered or diverted from solid waste.
            78767         (b) "Recovered materials" does not include those materials and by-products generated
            78768     from, and commonly reused within, an original manufacturing process.
            78769         (4) (a) "Recycling" means the diversion of materials from the solid waste stream and the
            78770     beneficial use of the materials and includes a series of activities by which materials that would
            78771     become or otherwise remain waste are diverted from the waste stream for collection,
            78772     separation, and processing, and are used as raw materials or feedstocks in lieu of or in addition
            78773     to virgin materials in the manufacture of goods sold or distributed in commerce or the reuse of
            78774     the materials as substitutes for goods made from virgin materials.
            78775         (b) "Recycling" does not include burning municipal solid waste for energy recovery.
            78776         (5) "Recycling market development zone" or "zone" means an area designated by the
            78777     office as meeting the requirements of this part.
            78778         (6) (a) "Secondary waste material" means industrial by-products that go to disposal
            78779     facilities and waste generated after completion of a manufacturing process.
            78780         (b) "Secondary waste material" does not include internally generated scrap commonly
            78781     returned to industrial or manufacturing processes, such as home scrap and mill broke.
            78782         (7) "State tax incentives," "tax incentives," or "tax benefits" means the nonrefundable
            78783     tax credits available under Sections 59-7-608 and 59-10-1007 .
            78784         Section 1821. Section 63M-1-1103 , which is renumbered from Section 63-38f-1103 is
            78785     renumbered and amended to read:
            78786          [63-38f-1103].     63M-1-1103. Duties of the office.
            78787         The office shall:
            78788         (1) facilitate recycling development zones through state support of county incentives
            78789     which encourage development of manufacturing enterprises that use recycling materials
            78790     currently collected;
            78791         (2) evaluate an application from a county or municipality executive authority to be
            78792     designated as a recycling market development zone and determine if the county or municipality
            78793     qualifies for that designation;

            78794         (3) provide technical assistance to municipalities and counties in developing applications
            78795     for designation as a recycling market development zone;
            78796         (4) assist counties and municipalities designated as recycling market development zones
            78797     in obtaining assistance from the federal government and agencies of the state;
            78798         (5) assist any qualified business in obtaining the benefits of any incentive or inducement
            78799     program authorized by this part;
            78800         (6) monitor the implementation and operation of this part and conduct a continuing
            78801     evaluation of the progress made in the recycling market development zone; and
            78802         (7) submit an annual written report evaluating the effectiveness of the program and
            78803     providing recommendations for legislation to the Workforce Services and Economic
            78804     Development Interim Committee and Natural Resources, Agriculture, and Environment Interim
            78805     Committee not later than November 1 of each year.
            78806         Section 1822. Section 63M-1-1104 , which is renumbered from Section 63-38f-1104 is
            78807     renumbered and amended to read:
            78808          [63-38f-1104].     63M-1-1104. Criteria for recycling market development zone
            78809      -- Application process and fees.
            78810         (1) An area may be designated as a recycling market development zone only if:
            78811         (a) the county or municipality agrees to make a qualifying local contribution under
            78812     Section [ 63-38f-1105 ] 63M-1-1105 ; and
            78813         (b) the county or municipality provides for postconsumer waste collection for recycling
            78814     within the county or municipality.
            78815         (2) The executive authority of any municipality or county desiring to be designated as a
            78816     recycling market development zone shall:
            78817         (a) obtain the written approval of the municipality or county's legislative body; and
            78818         (b) file an application with the office demonstrating the county or municipality meets
            78819     the requirements of this part.
            78820         (3) The application shall be in a form prescribed by the office, and shall include:
            78821         (a) a plan developed by the county or municipality that identifies local contributions

            78822     meeting the requirements of Section [ 63-38f-1105 ] 63M-1-1105 ;
            78823         (b) a county or municipality development plan that outlines:
            78824         (i) the specific investment or development reasonably expected to take place;
            78825         (ii) any commitments obtained from businesses to participate, and in what capacities
            78826     regarding recycling markets;
            78827         (iii) the county's or municipality's economic development plan and demonstration of
            78828     coordination between the zone and the county or municipality in overall development goals;
            78829         (iv) zoning requirements demonstrating that sufficient portions of the proposed zone
            78830     area are zoned as appropriate for the development of commercial, industrial, or manufacturing
            78831     businesses;
            78832         (v) the county's or municipality's long-term waste management plan and evidence that
            78833     the zone will be adequately served by the plan; and
            78834         (vi) the county or municipality postconsumer waste collection infrastructure;
            78835         (c) the county's or municipality's proposed means of assessing the effectiveness of the
            78836     development plan or other programs implemented within the zone;
            78837         (d) state whether within the zone either of the following will be established:
            78838         (i) commercial manufacturing or industrial processes that will produce end products
            78839     that consist of not less than 50% recovered materials, of which not less than 25% is
            78840     postconsumer waste material; or
            78841         (ii) commercial composting;
            78842         (e) any additional information required by the office; and
            78843         (f) any additional information the county or municipality considers relevant to its
            78844     designation as a recycling market development zone.
            78845         (4) A county or municipality applying for designation as a recycling market
            78846     development zone shall pay to the office an application fee determined under Section
            78847     [ 63-38-3.2 ] 63J-1-303 .
            78848         Section 1823. Section 63M-1-1105 , which is renumbered from Section 63-38f-1105 is
            78849     renumbered and amended to read:

            78850          [63-38f-1105].     63M-1-1105. Qualifying local contributions.
            78851         Qualifying local contributions to the recycling market development zone may vary
            78852     depending on available resources, and may include:
            78853         (1) simplified procedures for obtaining permits;
            78854         (2) dedication of available government grants;
            78855         (3) waiver of business license or permit fees;
            78856         (4) infrastructure improvements;
            78857         (5) private contributions;
            78858         (6) utility rate concessions;
            78859         (7) suspension or relaxation of locally originated zoning laws or general plans; and
            78860         (8) other proposed local contributions as the office finds promote the purposes of this
            78861     part.
            78862         Section 1824. Section 63M-1-1106 , which is renumbered from Section 63-38f-1106 is
            78863     renumbered and amended to read:
            78864          [63-38f-1106].     63M-1-1106. Eligibility review.
            78865         (1) The office shall:
            78866         (a) review and evaluate an application submitted under Section [ 63-38f-1104 ]
            78867      63M-1-1104 ; and
            78868         (b) determine whether the municipality or county is eligible for designation as a
            78869     recycling market development zone.
            78870         (2) In designating recycling market development zones, the office shall consider:
            78871         (a) whether the current waste management practices and conditions of the county or
            78872     municipality are favorable to the development of postconsumer waste material markets;
            78873         (b) whether the creation of the zone is necessary to assist in attracting private sector
            78874     recycling investments to the area; and
            78875         (c) the amount of available landfill capacity to serve the zone.
            78876         Section 1825. Section 63M-1-1107 , which is renumbered from Section 63-38f-1107 is
            78877     renumbered and amended to read:

            78878          [63-38f-1107].     63M-1-1107. Quarterly consideration.
            78879         The office shall take action quarterly on any application requesting designation as a
            78880     recycling market development zone.
            78881         Section 1826. Section 63M-1-1108 , which is renumbered from Section 63-38f-1108 is
            78882     renumbered and amended to read:
            78883          [63-38f-1108].     63M-1-1108. Duration of designation.
            78884         A recycling market development zone designation ends five years from the date the
            78885     office designates the area as a recycling market development zone, at the end of which the
            78886     county or municipality may reapply for the designation.
            78887         Section 1827. Section 63M-1-1109 , which is renumbered from Section 63-38f-1109 is
            78888     renumbered and amended to read:
            78889          [63-38f-1109].     63M-1-1109. Revocation of designations.
            78890         (1) The office may revoke the designation of a recycling market development zone if no
            78891     businesses utilize the tax incentives during any calendar year.
            78892         (2) Before revocation of the zone, the office shall conduct a public hearing within a
            78893     reasonable distance of the zone to determine reasons for inactivity and explore possible
            78894     alternative actions.
            78895         Section 1828. Section 63M-1-1110 , which is renumbered from Section 63-38f-1110 is
            78896     renumbered and amended to read:
            78897          [63-38f-1110].     63M-1-1110. Recycling market development zones credit.
            78898         For a taxpayer within a recycling market development zone, there are allowed the
            78899     nonrefundable credits against tax as provided by Sections 59-7-610 and 59-10-1007 .
            78900         Section 1829. Section 63M-1-1111 , which is renumbered from Section 63-38f-1111 is
            78901     renumbered and amended to read:
            78902          [63-38f-1111].     63M-1-1111. Annual report.
            78903         (1) A county or municipality designated as a recycling market development zone shall
            78904     report by no later than July 31 of each year to the office regarding the economic activity that has
            78905     occurred in the zone following the designation.

            78906         (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            78907     Administrative Rulemaking Act, the office may make rules providing for the form and content
            78908     of the annual reports.
            78909         Section 1830. Section 63M-1-1112 , which is renumbered from Section 63-38f-1112 is
            78910     renumbered and amended to read:
            78911          [63-38f-1112].     63M-1-1112. Centers of excellence.
            78912         In accordance with Part 6, the office may award grants to the Centers of Excellence, as
            78913     defined by Section [ 63-38f-703 ] 63M-1-703 , to fund development of new technology for
            78914     recycling if the program funded is a cooperative effort between the Centers of Excellence and
            78915     one or more recycling market development zones created under this part.
            78916         Section 1831. Section 63M-1-1201 , which is renumbered from Section 63-38f-1201 is
            78917     renumbered and amended to read:
            78918     
Part 12. Utah Venture Capital Enhancement Act

            78919          [63-38f-1201].     63M-1-1201. Title.
            78920         This part is known as the "Utah Venture Capital Enhancement Act."
            78921         Section 1832. Section 63M-1-1202 , which is renumbered from Section 63-38f-1202 is
            78922     renumbered and amended to read:
            78923          [63-38f-1202].     63M-1-1202. Findings -- Purpose.
            78924         (1) The Legislature finds that:
            78925         (a) fundamental changes have occurred in national and international financial markets
            78926     and in the state's financial markets;
            78927         (b) a critical shortage of seed and venture capital resources exists in the state, and that
            78928     shortage is impairing the growth of commerce in the state;
            78929         (c) a need exists to increase the availability of venture equity capital for emerging,
            78930     expanding, and restructuring enterprises in Utah, including enterprises in the life sciences,
            78931     advanced manufacturing, and information technology;
            78932         (d) increased venture equity capital investments in emerging, expanding, and
            78933     restructuring enterprises in Utah will:

            78934         (i) create new jobs in the state; and
            78935         (ii) help to diversify the state's economic base; and
            78936         (e) a well-trained work force is critical for the maintenance and development of Utah's
            78937     economy.
            78938         (2) This part is enacted to:
            78939         (a) mobilize private investment in a broad variety of venture capital partnerships in
            78940     diversified industries and locales;
            78941         (b) retain the private-sector culture of focusing on rate of return in the investing
            78942     process;
            78943         (c) secure the services of the best managers in the venture capital industry, regardless of
            78944     location;
            78945         (d) facilitate the organization of the Utah fund of funds to seek private investments and
            78946     to serve as a catalyst in those investments by offering state incentives for private persons to
            78947     make investments in the Utah fund of funds;
            78948         (e) enhance the venture capital culture and infrastructure in the state so as to increase
            78949     venture capital investment within the state and to promote venture capital investing within the
            78950     state;
            78951         (f) accomplish the purposes referred to in Subsections (2)(a) through (e) in a manner
            78952     that would maximize the direct economic impact for the state; and
            78953         (g) authorize the issuance and use of contingent tax credits to accomplish the purposes
            78954     referred to in Subsections (2)(a) through (e) while protecting the interests of the state by
            78955     limiting the manner in which contingent tax credits are issued, registered, transferred, claimed as
            78956     an offset to the payment of state income tax, and redeemed.
            78957         Section 1833. Section 63M-1-1203 , which is renumbered from Section 63-38f-1203 is
            78958     renumbered and amended to read:
            78959          [63-38f-1203].     63M-1-1203. Definitions.
            78960         As used in this part:
            78961         (1) "Board" means the Utah Capital Investment Board.

            78962         (2) "Certificate" means a contract between the board and a designated investor under
            78963     which a contingent tax credit is available and issued to the designated investor.
            78964         (3) (a) Except as provided in Subsection (3)(b), "claimant" means a resident or
            78965     nonresident person.
            78966         (b) "Claimant" does not include an estate or trust.
            78967         (4) "Commitment" means a written commitment by a designated purchaser to purchase
            78968     from the board certificates presented to the board for redemption by a designated investor.
            78969     Each commitment shall state the dollar amount of contingent tax credits that the designated
            78970     purchaser has committed to purchase from the board.
            78971         (5) "Contingent tax credit" means a contingent tax credit issued under this part that is
            78972     available against tax liabilities imposed by Title 59, Chapter 7, Corporate Franchise and Income
            78973     Taxes, or Title 59, Chapter 10, Individual Income Tax Act, if there are insufficient funds in the
            78974     redemption reserve and the board has not exercised other options for redemption under
            78975     Subsection [ 63-38f-1220 ] 63M-1-1220 (3)(b).
            78976         (6) "Corporation" means the Utah Capital Investment Corporation created under
            78977     Section [ 63-38f-1207 ] 63M-1-1207 .
            78978         (7) "Designated investor" means:
            78979         (a) a person who purchases an equity interest in the Utah fund of funds; or
            78980         (b) a transferee of a certificate or contingent tax credit.
            78981         (8) "Designated purchaser" means:
            78982         (a) a person who enters into a written undertaking with the board to purchase a
            78983     commitment; or
            78984         (b) a transferee who assumes the obligations to make the purchase described in the
            78985     commitment.
            78986         (9) "Estate" means a nonresident estate or a resident estate.
            78987         (10) "Person" means an individual, partnership, limited liability company, corporation,
            78988     association, organization, business trust, estate, trust, or any other legal or commercial entity.
            78989         (11) "Redemption reserve" means the reserve established by the corporation to facilitate

            78990     the cash redemption of certificates.
            78991         (12) "Taxpayer" means a taxpayer:
            78992         (a) of an investor; and
            78993         (b) if that taxpayer is a:
            78994         (i) claimant;
            78995         (ii) estate; or
            78996         (iii) trust.
            78997         (13) "Trust" means a nonresident trust or a resident trust.
            78998         (14) "Utah fund of funds" means a limited partnership or limited liability company
            78999     established under Section [ 63-38f-1213 ] 63M-1-1213 in which a designated investor purchases
            79000     an equity interest.
            79001         Section 1834. Section 63M-1-1204 , which is renumbered from Section 63-38f-1204 is
            79002     renumbered and amended to read:
            79003          [63-38f-1204].     63M-1-1204. Utah Capital Investment Board.
            79004         (1) There is created within the office the Utah Capital Investment Board to exercise the
            79005     powers conferred by this part.
            79006         (2) The purpose of the board is to mobilize venture equity capital for investment in a
            79007     manner that will result in a significant potential to create jobs and to diversify and stabilize the
            79008     economy of the state.
            79009         (3) In the exercise of its powers and duties, the board is considered to be performing an
            79010     essential public purpose.
            79011         Section 1835. Section 63M-1-1205 , which is renumbered from Section 63-38f-1205 is
            79012     renumbered and amended to read:
            79013          [63-38f-1205].     63M-1-1205. Board members -- Meetings -- Expenses.
            79014         (1) (a) The board shall consist of five members.
            79015         (b) Of the five members:
            79016         (i) one shall be the state treasurer;
            79017         (ii) one shall be the director or the director's designee; and

            79018         (iii) three shall be appointed by the governor and confirmed by the Senate.
            79019         (c) The three members appointed by the governor shall serve four-year staggered terms
            79020     with the initial terms of the first three members to be four years for one member, three years for
            79021     one member, and two years for one member.
            79022         (2) When a vacancy occurs in the membership of the board for any reason, the vacancy
            79023     shall be:
            79024         (a) filled in the same manner as the appointment of the original member; and
            79025         (b) for the unexpired term of the board member being replaced.
            79026         (3) Appointed members of the board may not serve more than two full consecutive
            79027     terms except where the governor determines that an additional term is in the best interest of the
            79028     state.
            79029         (4) Three members of the board constitute a quorum for conducting business and
            79030     exercising board power, provided that a minimum of three affirmative votes is required for
            79031     board action and at least one of the affirmative votes is cast by either the director or the
            79032     director's designee or the state treasurer.
            79033         (5) (a) Members of the board may not receive compensation or benefits for their
            79034     services, but may receive per diem and expenses incurred in the performance of the members'
            79035     official duties at rates established by the Division of Finance under Sections 63A-3-106 and
            79036      63A-3-107 .
            79037         (b) Members of the board may decline to receive per diem and expenses for their
            79038     services.
            79039         (6) Members of the board shall be selected on the basis of demonstrated expertise and
            79040     competence in:
            79041         (a) the supervision of investment managers;
            79042         (b) the fiduciary management of investment funds; or
            79043         (c) the management and administration of tax credit allocation programs.
            79044         (7) The board and its members are considered to be a governmental entity with all of
            79045     the rights, privileges, and immunities of a governmental entity of the state, including all of the

            79046     rights and benefits conferred under [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental
            79047     Immunity Act of Utah.
            79048         (8) Meetings of the board, except to the extent necessary to protect confidential
            79049     information with respect to investments in the Utah fund of funds, are subject to Title 52,
            79050     Chapter 4, Open and Public Meetings Act.
            79051         Section 1836. Section 63M-1-1206 , which is renumbered from Section 63-38f-1206 is
            79052     renumbered and amended to read:
            79053          [63-38f-1206].     63M-1-1206. Board duties and powers.
            79054         (1) The board shall:
            79055         (a) establish criteria and procedures for the allocation and issuance of contingent tax
            79056     credits to designated investors by means of certificates issued by the board, provided that a
            79057     contingent tax credit may not be issued unless the Utah fund of funds:
            79058         (i) first agrees to treat the amount of the tax credit redeemed by the state as a loan from
            79059     the state to the Utah fund of funds; and
            79060         (ii) agrees to repay the loan upon terms and conditions established by the board;
            79061         (b) establish criteria and procedures for assessing the likelihood of future certificate
            79062     redemptions by designated investors, including:
            79063         (i) criteria and procedures for evaluating the value of investments made by the Utah
            79064     fund of funds; and
            79065         (ii) the returns from the Utah fund of funds;
            79066         (c) establish criteria and procedures for registering and redeeming contingent tax credits
            79067     by designated investors holding certificates issued by the board;
            79068         (d) establish a target rate of return or range of returns on venture capital investments of
            79069     the Utah fund of funds;
            79070         (e) establish criteria and procedures governing commitments obtained by the board
            79071     from designated purchasers including:
            79072         (i) entering into commitments with designated purchasers; and
            79073         (ii) drawing on commitments to redeem certificates from designated investors;

            79074         (f) have power to:
            79075         (i) expend funds;
            79076         (ii) invest funds;
            79077         (iii) enter into contracts;
            79078         (iv) insure against loss; and
            79079         (v) perform any other act necessary to carry out its purpose; and
            79080         (g) make, amend, and repeal rules for the conduct of its affairs, consistent with this part
            79081     and in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
            79082     Rulemaking Act.
            79083         (2) (a) All rules made by the board under Subsection (1)(g) are subject to review by the
            79084     Legislative Management Committee:
            79085         (i) whenever made, modified, or repealed; and
            79086         (ii) in each even-numbered year.
            79087         (b) Subsection (2)(a) does not preclude the legislative Administrative Rules Review
            79088     Committee from reviewing and taking appropriate action on any rule made, amended, or
            79089     repealed by the board.
            79090         (3) (a) The criteria and procedures established by the board for the allocation and
            79091     issuance of contingent tax credits shall:
            79092         (i) include the contingencies that must be met for a certificate and its related tax credits
            79093     to be:
            79094         (A) issued by the board;
            79095         (B) transferred by a designated investor; and
            79096         (C) redeemed by a designated investor in order to receive a contingent tax credit; and
            79097         (ii) tie the contingencies for redemption of certificates to the targeted rates of return
            79098     and scheduled redemptions of equity interests purchased by designated investors in the Utah
            79099     fund of funds.
            79100         (b) The board may not issue contingent tax credits under this part prior to July 1, 2004.
            79101         (4) (a) The board may charge a placement fee to the Utah fund of funds for the issuance

            79102     of a certificate and related contingent tax credit to a designated investor.
            79103         (b) The fee shall:
            79104         (i) be charged only to pay for reasonable and necessary costs of the board; and
            79105         (ii) not exceed .5% of the equity investment of the designated investor.
            79106         (5) The board's criteria and procedures for redeeming certificates:
            79107         (a) shall give priority to the redemption amount from the available funds in the
            79108     redemption reserve; and
            79109         (b) to the extent there are insufficient funds in the redemption reserve to redeem
            79110     certificates, shall grant the board the option to redeem certificates:
            79111         (i) by certifying a contingent tax credit to the designated investor; or
            79112         (ii) by making demand on designated purchasers consistent with the requirements of
            79113     Section [ 63-38f-1221 ] 63M-1-1221 .
            79114         (6) (a) The board shall, in consultation with the corporation, publish an annual report of
            79115     the activities conducted by the Utah fund of funds, and present the report to the governor and
            79116     the Executive Appropriations Committee of the Legislature.
            79117         (b) The annual report shall:
            79118         (i) include a copy of the audit of the Utah fund of funds and a valuation of the assets of
            79119     the Utah fund of funds;
            79120         (ii) review the progress of the investment fund allocation manager in implementing its
            79121     investment plan; and
            79122         (iii) describe any redemption or transfer of a certificate issued under this part.
            79123         (c) The annual report may not identify any specific designated investor who has
            79124     redeemed or transferred a certificate.
            79125         (d) (i) Beginning July 1, 2006, and thereafter every two years, the board shall publish a
            79126     progress report which shall evaluate the progress of the state in accomplishing the purposes
            79127     stated in Section [ 63-38f-1202 ] 63M-1-1202 .
            79128         (ii) The board shall give a copy of the report to the Legislature.
            79129         Section 1837. Section 63M-1-1207 , which is renumbered from Section 63-38f-1207 is

            79130     renumbered and amended to read:
            79131          [63-38f-1207].     63M-1-1207. Utah Capital Investment Corporation --
            79132      Powers and purposes.
            79133         (1) (a) There is created an independent quasi-public nonprofit corporation known as the
            79134     Utah Capital Investment Corporation.
            79135         (b) The corporation:
            79136         (i) may exercise all powers conferred on independent corporations under Section
            79137      63E-2-106 ;
            79138         (ii) is subject to the prohibited participation provisions of Section 63E-2-107 ; and
            79139         (iii) is subject to the other provisions of Title 63E, Chapter 2, Independent
            79140     Corporations Act, except as otherwise provided in this part.
            79141         (c) The corporation shall file with the Division of Corporations and Commercial Code:
            79142         (i) articles of incorporation; and
            79143         (ii) any amendment to its articles of incorporation.
            79144         (d) In addition to the articles of incorporation, the corporation may adopt bylaws and
            79145     operational policies that are consistent with this chapter.
            79146         (e) Except as otherwise provided in this part, this part does not exempt the corporation
            79147     from the requirements under state law which apply to other corporations organized under Title
            79148     63E, Chapter 2, Independent Corporations Act.
            79149         (2) The purposes of the corporation are to:
            79150         (a) organize the Utah fund of funds;
            79151         (b) select a venture capital investment fund allocation manager to make venture capital
            79152     fund investments by the Utah fund of funds;
            79153         (c) negotiate the terms of a contract with the venture capital investment fund allocation
            79154     manager;
            79155         (d) execute the contract with the selected venture capital investment fund manager on
            79156     behalf of the Utah fund of funds;
            79157         (e) receive funds paid by designated investors for the issuance of certificates by the

            79158     board for investment in the Utah fund of funds;
            79159         (f) receive investment returns from the Utah fund of funds; and
            79160         (g) establish the redemption reserve to be used by the corporation to redeem
            79161     certificates.
            79162         (3) The corporation may not:
            79163         (a) exercise governmental functions;
            79164         (b) have members;
            79165         (c) pledge the credit or taxing power of the state or any political subdivision of the
            79166     state; or
            79167         (d) make its debts payable out of any moneys except those of the corporation.
            79168         (4) The obligations of the corporation are not obligations of the state or any political
            79169     subdivision of the state within the meaning of any constitutional or statutory debt limitations,
            79170     but are obligations of the corporation payable solely and only from the corporation's funds.
            79171         (5) The corporation may:
            79172         (a) engage consultants and legal counsel;
            79173         (b) expend funds;
            79174         (c) invest funds;
            79175         (d) enter into contracts;
            79176         (e) insure against loss;
            79177         (f) hire employees; and
            79178         (g) perform any other act necessary to carry out its purposes.
            79179         Section 1838. Section 63M-1-1208 , which is renumbered from Section 63-38f-1208 is
            79180     renumbered and amended to read:
            79181          [63-38f-1208].     63M-1-1208. Incorporator -- Appointment committee.
            79182         (1) To facilitate the organization of the corporation, the director or the director's
            79183     designee shall serve as the incorporator as provided in Section 16-6a-201 .
            79184         (2) To assist in the organization of the corporation, the Utah Board of Business and
            79185     Economic Development shall appoint three individuals to serve on an appointment committee.

            79186         (3) The appointment committee shall:
            79187         (a) elect the initial board of directors of the corporation;
            79188         (b) exercise due care to assure that persons elected to the initial board of directors have
            79189     the requisite financial experience necessary in order to carry out the duties of the corporation as
            79190     established in this part, including in areas related to:
            79191         (i) venture capital investment;
            79192         (ii) investment management; and
            79193         (iii) supervision of investment managers and investment funds; and
            79194         (c) terminate its existence upon the election of the initial board of directors of the
            79195     corporation.
            79196         (4) The office shall assist the incorporator and the appointment committee in any
            79197     manner determined necessary and appropriate by the incorporator and appointment committee
            79198     in order to administer this section.
            79199         Section 1839. Section 63M-1-1209 , which is renumbered from Section 63-38f-1209 is
            79200     renumbered and amended to read:
            79201          [63-38f-1209].     63M-1-1209. Board of directors.
            79202         (1) The initial board of directors of the corporation shall consist of five members.
            79203         (2) The persons elected to the initial board of directors by the appointment committee
            79204     shall include persons who have an expertise, as considered appropriate by the appointment
            79205     committee, in the areas of:
            79206         (a) the selection and supervision of investment managers;
            79207         (b) fiduciary management of investment funds; and
            79208         (c) other areas of expertise as considered appropriate by the appointment committee.
            79209         (3) After the election of the initial board of directors, vacancies in the board of directors
            79210     of the corporation shall be filled by election by the remaining directors of the corporation.
            79211         (4) (a) Board members shall serve four-year terms, except that of the five initial
            79212     members:
            79213         (i) two shall serve four-year terms;

            79214         (ii) two shall serve three-year terms; and
            79215         (iii) one shall serve a two-year term.
            79216         (b) Board members shall serve until their successors are elected and qualified and may
            79217     serve successive terms.
            79218         (c) A majority of the board members may remove a board member for cause.
            79219         (d) (i) The board shall select a chair by majority vote.
            79220         (ii) The chair's term is for one year.
            79221         (5) Three members of the board are a quorum for the transaction of business.
            79222         (6) Members of the board of directors:
            79223         (a) are subject to any restrictions on conflicts of interest specified in the organizational
            79224     documents of the corporation; and
            79225         (b) may have no interest in any:
            79226         (i) venture capital investment fund allocation manager selected by the corporation under
            79227     this part; or
            79228         (ii) investments made by the Utah fund of funds.
            79229         (7) Directors of the corporation:
            79230         (a) shall be compensated for direct expenses and mileage; and
            79231         (b) may not receive a director's fee or salary for service as directors.
            79232         Section 1840. Section 63M-1-1210 , which is renumbered from Section 63-38f-1210 is
            79233     renumbered and amended to read:
            79234          [63-38f-1210].     63M-1-1210. Investment manager.
            79235         (1) After incorporation, the corporation shall conduct a national solicitation for
            79236     investment plan proposals from qualified venture capital investment fund allocation managers
            79237     for the raising and investing of capital by the Utah fund of funds in accordance with the
            79238     requirements of this part.
            79239         (2) Any proposed investment plan shall address the applicant's:
            79240         (a) level of:
            79241         (i) experience; and

            79242         (ii) quality of management;
            79243         (b) investment philosophy and process;
            79244         (c) probability of success in fund-raising;
            79245         (d) prior investment fund results; and
            79246         (e) plan for achieving the purposes of this part.
            79247         (3) The selected venture capital investment fund allocation manager shall have
            79248     substantial, successful experience in the design, implementation, and management of seed and
            79249     venture capital investment programs and in capital formation.
            79250         (4) The corporation shall only select a venture capital investment fund allocation
            79251     manager:
            79252         (a) with demonstrated expertise in the management and fund allocation of investments
            79253     in venture capital funds; and
            79254         (b) considered best qualified to:
            79255         (i) invest the capital of the Utah fund of funds; and
            79256         (ii) generate the amount of capital required by this part.
            79257         Section 1841. Section 63M-1-1211 , which is renumbered from Section 63-38f-1211 is
            79258     renumbered and amended to read:
            79259          [63-38f-1211].     63M-1-1211. Management fee -- Additional financial
            79260      assistance.
            79261         (1) The corporation may charge a management fee on assets under management in the
            79262     Utah fund of funds.
            79263         (2) The fee shall:
            79264         (a) be in addition to any fee charged to the Utah fund of funds by the venture capital
            79265     investment fund allocation manager selected by the corporation; and
            79266         (b) be charged only to pay for reasonable and necessary costs of the corporation.
            79267         (3) The corporation may apply for and, when qualified, receive financial assistance from
            79268     the Industrial Assistance Fund under [Title 63, Chapter 38f] Title 63M, Chapter 1, Part 9,
            79269     Industrial Assistance Fund, and under rules made by the Board of Business and Economic

            79270     Development in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            79271     Administrative Rulemaking Act, to help establish the program authorized under this part.
            79272         Section 1842. Section 63M-1-1212 , which is renumbered from Section 63-38f-1212 is
            79273     renumbered and amended to read:
            79274          [63-38f-1212].     63M-1-1212. Dissolution.
            79275         (1) Upon the dissolution of the Utah fund of funds, the corporation shall be liquidated
            79276     and dissolved.
            79277         (2) Upon dissolution or privatization of the corporation, any assets owned by the
            79278     corporation shall be distributed to one or more Utah nonprofit tax exempt organizations to be
            79279     designated by the Legislature for the purposes listed in Section [ 63-38f-1202 ] 63M-1-1202 as
            79280     provided in Title 63E, Chapter 1, Independent Entities Act.
            79281         Section 1843. Section 63M-1-1213 , which is renumbered from Section 63-38f-1213 is
            79282     renumbered and amended to read:
            79283          [63-38f-1213].     63M-1-1213. Organization of Utah fund of funds.
            79284         (1) The corporation shall organize the Utah fund of funds.
            79285         (2) The Utah fund of funds shall make investments in private seed and venture capital
            79286     partnerships or entities in a manner and for the following purposes:
            79287         (a) to encourage the availability of a wide variety of venture capital in the state;
            79288         (b) to strengthen the economy of the state;
            79289         (c) to help business in the state gain access to sources of capital;
            79290         (d) to help build a significant, permanent source of capital available to serve the needs
            79291     of businesses in the state; and
            79292         (e) to accomplish all these benefits in a way that minimizes the use of contingent tax
            79293     credits.
            79294         (3) The Utah fund of funds shall be organized:
            79295         (a) as a limited partnership or limited liability company under Utah law having the
            79296     corporation as the general partner or manager; and
            79297         (b) to provide for equity interests for designated investors which provide for a

            79298     designated scheduled rate of return and a scheduled redemption in accordance with rules made
            79299     by the board pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
            79300     Rulemaking Act.
            79301         (4) Public money may not be invested in the Utah fund of funds.
            79302         Section 1844. Section 63M-1-1214 , which is renumbered from Section 63-38f-1214 is
            79303     renumbered and amended to read:
            79304          [63-38f-1214].     63M-1-1214. Compensation from the Utah fund of funds to
            79305      the corporation -- Redemption reserve.
            79306         (1) The corporation shall be compensated for its involvement in the Utah fund of funds
            79307     through the payment of the management fee described in Section [ 63-38f-1211 ] 63M-1-1211 .
            79308         (2) (a) Any returns in excess of those payable to designated investors shall be deposited
            79309     in the redemption reserve and held by the corporation as a first priority reserve for the
            79310     redemption of certificates.
            79311         (b) Any returns received by the corporation from investment of amounts held in the
            79312     redemption reserve shall be added to the redemption reserve until it has reached a total of
            79313     $100,000,000.
            79314         (c) If at the end of any calendar year the redemption reserve exceeds the $100,000,000
            79315     limitation referred to in Subsection (2)(b), the excess shall be reinvested in the Utah fund of
            79316     funds.
            79317         (3) Funds held by the corporation in the redemption reserve shall be invested in
            79318     accordance with Title 51, Chapter 7, State Money Management Act.
            79319         Section 1845. Section 63M-1-1215 , which is renumbered from Section 63-38f-1215 is
            79320     renumbered and amended to read:
            79321          [63-38f-1215].     63M-1-1215. Investments by Utah fund of funds.
            79322         (1) The Utah fund of funds shall invest funds:
            79323         (a) principally in high-quality venture capital funds managed by investment managers
            79324     who have:
            79325         (i) made a commitment to equity investments in businesses located within the state; and

            79326         (ii) have committed to maintain a physical presence within the state;
            79327         (b) in private venture capital funds and not in direct investments in individual
            79328     businesses; and
            79329         (c) in venture capital funds with experienced managers or management teams with
            79330     demonstrated expertise and a successful history in the investment of venture capital funds.
            79331         (2) (a) The Utah fund of funds shall give priority to investments in private seed and
            79332     venture capital partnerships and entities that have demonstrated a commitment to the state as
            79333     evidenced by:
            79334         (i) the investments they have made in Utah-based entities;
            79335         (ii) the correspondent relationships they have established with Utah-based venture
            79336     capital funds; or
            79337         (iii) the commitment they have made to expand the reach of expertise within the state
            79338     by adding additional investment areas of expertise.
            79339         (b) The manager of the Utah fund of funds may waive the priorities under Subsection
            79340     (2)(a) only if necessary to achieve the targeted investment returns required to attract designated
            79341     investors.
            79342         (3) The Utah fund of funds may invest funds in a newly created venture capital fund
            79343     only if the managers or management team of the fund have the experience, expertise, and a
            79344     successful history in the investment of venture capital funds as described in Subsection (1)(c).
            79345         (4) (a) An investment or investments by the Utah fund of funds in any venture capital
            79346     fund may comprise no more than 20% of the total committed capital in the venture capital fund.
            79347         (b) (i) No more than 50% of the funds invested by the Utah fund of funds may be made
            79348     with venture capital entities with offices in the state established prior to July 1, 2002.
            79349         (ii) The restriction under Subsection (4)(b)(i) shall remain in place until three additional
            79350     venture capital entities open new offices in the state.
            79351         Section 1846. Section 63M-1-1216 , which is renumbered from Section 63-38f-1216 is
            79352     renumbered and amended to read:
            79353          [63-38f-1216].     63M-1-1216. Powers of Utah fund of funds.

            79354         (1) The Utah fund of funds may:
            79355         (a) engage consultants and legal counsel;
            79356         (b) expend funds;
            79357         (c) invest funds;
            79358         (d) enter into contracts;
            79359         (e) insure against loss;
            79360         (f) hire employees;
            79361         (g) issue equity interests to designated investors that have purchased certificates from
            79362     the board; and
            79363         (h) perform any other act necessary to carry out its purposes.
            79364         (2) (a) The Utah fund of funds shall engage a venture capital investment fund allocation
            79365     manager.
            79366         (b) The compensation paid to the fund manager shall be in addition to the management
            79367     fee paid to the corporation under Section [ 63-38f-1211 ] 63M-1-1211 .
            79368         (3) The Utah fund of funds may:
            79369         (a) issue debt and borrow the funds needed to accomplish its goals;
            79370         (b) not secure its debt with contingent tax credits issued by the board;
            79371         (c) open and manage bank and short-term investment accounts as considered necessary
            79372     by the venture capital investment fund allocation manager; and
            79373         (d) expend moneys to secure investment ratings for investments by designated investors
            79374     in the Utah fund of funds.
            79375         Section 1847. Section 63M-1-1217 , which is renumbered from Section 63-38f-1217 is
            79376     renumbered and amended to read:
            79377          [63-38f-1217].     63M-1-1217. Annual audits.
            79378         (1) Each calendar year, an audit of the activities of the Utah fund of funds shall be made
            79379     as described in this section.
            79380         (2) (a) The audit shall be conducted by:
            79381         (i) the state auditor; or

            79382         (ii) an independent auditor engaged by the state auditor.
            79383         (b) An independent auditor used under Subsection (2)(a)(ii) must have no business,
            79384     contractual, or other connection to:
            79385         (i) the corporation; or
            79386         (ii) the Utah fund of funds.
            79387         (3) The corporation shall pay the costs associated with the annual audit.
            79388         (4) The annual audit report shall:
            79389         (a) be delivered to:
            79390         (i) the corporation; and
            79391         (ii) the board; and
            79392         (b) include a valuation of the assets owned by the Utah fund of funds as of the end of
            79393     the reporting year.
            79394         Section 1848. Section 63M-1-1218 , which is renumbered from Section 63-38f-1218 is
            79395     renumbered and amended to read:
            79396          [63-38f-1218].     63M-1-1218. Certificates and contingent tax credits.
            79397         (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            79398     Administrative Rulemaking Act, the board, in consultation with the State Tax Commission, shall
            79399     make rules governing the form, issuance, transfer, and redemption of certificates.
            79400         (2) The board's issuance of certificates and related contingent tax credits to designated
            79401     investors shall be subject to the following:
            79402         (a) the aggregate outstanding certificates may not exceed a total of $100,000,000 of
            79403     contingent tax credits;
            79404         (b) the certificates shall be issued contemporaneously with an investment in the Utah
            79405     fund of funds by a designated investor;
            79406         (c) contingent tax credits shall be issued in a manner that not more than $20,000,000 of
            79407     contingent tax credits may be initially redeemable in any fiscal year; and
            79408         (d) the credits are certifiable if there are insufficient funds in the redemption reserve to
            79409     make a cash redemption and the board does not exercise its other options under Subsection

            79410     [ 63-38f-1220 ] 63M-1-1220 (3)(b).
            79411         (3) In determining the $100,000,000 maximum limit in Subsection (2)(a) and the
            79412     $20,000,000 limitation in Subsection (2)(c):
            79413         (a) the board shall use the cumulative amount of scheduled aggregate returns on
            79414     certificates issued by the board to designated investors;
            79415         (b) certificates and related contingent tax credits which have expired may not be
            79416     included; and
            79417         (c) certificates and related contingent tax credits which have been redeemed shall be
            79418     included only to the extent of tax credits actually allowed.
            79419         (4) Contingent tax credits are subject to the following:
            79420         (a) a contingent tax credit may not be redeemed except by a designated investor in
            79421     accordance with the terms of a certificate from the board;
            79422         (b) a contingent tax credit may not be redeemed prior to the time the Utah fund of
            79423     funds receives full payment from the designated investor for the certificate;
            79424         (c) a contingent tax credit shall be claimed for a tax year that begins during the calendar
            79425     year maturity date stated on the certificate;
            79426         (d) an investor who redeems a certificate and the related contingent tax credit shall
            79427     allocate the amount of the contingent tax credit to the taxpayers of the investor based on the
            79428     taxpayer's pro rata share of the investor's earnings; and
            79429         (e) a contingent tax credit shall be claimed as a refundable credit.
            79430         (5) In calculating the amount of a contingent tax credit:
            79431         (a) a contingent tax credit shall be certified by the board only if the actual return to the
            79432     designated investor is less than the return that was targeted at the issuance of the certificate;
            79433         (b) the amount of the contingent tax credit may not exceed the difference between:
            79434         (i) the sum of:
            79435         (A) the initial equity investment of the designated investor in the Utah fund of funds;
            79436     and
            79437         (B) the scheduled aggregate return to the designated investor at rates of return

            79438     authorized by the board at the issuance of the certificate; and
            79439         (ii) the aggregate actual return received by the designated investor and any predecessor
            79440     in interest of the initial equity investment and interest on the initial equity investment; and
            79441         (c) the rates, whether fixed rates or variable rates, shall be determined by a formula
            79442     stipulated in the certificate.
            79443         (6) The board shall clearly indicate on the certificate:
            79444         (a) the targeted return on the invested capital;
            79445         (b) the amount of the initial equity investment;
            79446         (c) the calculation formula for determining the scheduled aggregate return on the initial
            79447     equity investment; and
            79448         (d) the calculation formula for determining the amount of the contingent tax credit that
            79449     may be claimed.
            79450         (7) Once moneys are invested by a designated investor, the certificate:
            79451         (a) shall be binding on the board; and
            79452         (b) may not be modified, terminated, or rescinded.
            79453         (8) Funds invested by a designated investor for a certificate shall be paid to the
            79454     corporation for placement in the Utah fund of funds.
            79455         (9) The State Tax Commission may, in accordance with [Title 63, Chapter 46a] Title
            79456     63G, Chapter 3, Utah Administrative Rulemaking Act, and in consultation with the board, make
            79457     rules to help implement this section.
            79458         Section 1849. Section 63M-1-1219 , which is renumbered from Section 63-38f-1219 is
            79459     renumbered and amended to read:
            79460          [63-38f-1219].     63M-1-1219. Transfer and registration of certificates.
            79461         (1) A certificate and the related contingent tax credit may be transferred by the
            79462     designated investor.
            79463         (2) The board, in conjunction with the State Tax Commission, shall develop:
            79464         (a) a system for registration of any certificate and related contingent tax credit issued or
            79465     transferred under this part; and

            79466         (b) a system that permits verification that:
            79467         (i) any contingent tax credit claimed is valid; and
            79468         (ii) any transfers of the certificate and related contingent tax credit are made in
            79469     accordance with the requirements of this part.
            79470         (3) A certificate or contingent tax credit issued or transferred under this part may not be
            79471     considered a security under Title 61, Chapter 1, Utah Uniform Securities Act.
            79472         Section 1850. Section 63M-1-1220 , which is renumbered from Section 63-38f-1220 is
            79473     renumbered and amended to read:
            79474          [63-38f-1220].     63M-1-1220. Redemption of certificates.
            79475         (1) If a designated investor elects to redeem a certificate, the certificate shall be
            79476     presented to the board for redemption no later than June 30 of the calendar year maturity date
            79477     stated on the certificate.
            79478         (2) Upon presentment to the board, it shall determine and certify the amount of the
            79479     contingent tax credit that may be claimed by the designated investor based on:
            79480         (a) the limitations in Section [ 63-38f-1218 ] 63M-1-1218 ; and
            79481         (b) rules made by the board in accordance with [Title 63, Chapter 46a] Title 63G,
            79482     Chapter 3, Utah Administrative Rulemaking Act.
            79483         (3) (a) If there are sufficient funds in the redemption reserve, the board shall direct the
            79484     corporation to make a cash redemption of the certificate.
            79485         (b) If there are insufficient funds in the redemption reserve, the board may elect to
            79486     redeem the certificate:
            79487         (i) by certifying a contingent tax credit to the designated investor; or
            79488         (ii) by making demand on designated purchasers to purchase certificates in accordance
            79489     with Section [ 63-38f-1221 ] 63M-1-1221 .
            79490         (4) The board shall certify to the State Tax Commission the contingent tax credit which
            79491     can be claimed by the designated investor with respect to the redemption of the certificate.
            79492         (5) The board shall cancel all redeemed certificates.
            79493         Section 1851. Section 63M-1-1221 , which is renumbered from Section 63-38f-1221 is

            79494     renumbered and amended to read:
            79495          [63-38f-1221].     63M-1-1221. Use of commitments to redeem certificates.
            79496         (1) The board may elect to draw on a commitment to redeem a certificate from a
            79497     designated investor.
            79498         (2) If the board makes an election under Subsection (1), it shall:
            79499         (a) inform the designated purchaser of the amount of the contingent tax credit that must
            79500     be purchased from the board;
            79501         (b) specify the date on which the purchase must be consummated; and
            79502         (c) use the funds delivered to the board by the designated purchaser to redeem the
            79503     certificate from the designated investor.
            79504         (3) The board has discretion in determining which commitment or commitments and
            79505     what portion of those commitments to use to redeem certificates.
            79506         (4) The contingent tax credits acquired by a designated purchaser under this section are
            79507     subject to Section [ 63-38f-1218 ] 63M-1-1218 .
            79508         Section 1852. Section 63M-1-1222 , which is renumbered from Section 63-38f-1222 is
            79509     renumbered and amended to read:
            79510          [63-38f-1222].     63M-1-1222. Powers and effectiveness.
            79511         (1) This part may not be construed as a restriction or limitation upon any power which
            79512     the board might otherwise have under any other law of this state and the provisions of this part
            79513     are cumulative to those powers.
            79514         (2) This part shall be construed to provide a complete, additional, and alternative
            79515     method for performing the duties authorized and shall be regarded as supplemental and
            79516     additional powers to those conferred by any other laws.
            79517         (3) The provisions of any contract entered into by the board or the Utah fund of funds
            79518     may not be compromised, diminished, invalidated, or affected by the:
            79519         (a) level, timing, or degree of success of the Utah fund of funds or the investment funds
            79520     in which the Utah fund of funds invests; or
            79521         (b) extent to which the investment funds are:

            79522         (i) invested in Utah venture capital projects; or
            79523         (ii) successful in accomplishing any economic development objectives.
            79524         Section 1853. Section 63M-1-1223 , which is renumbered from Section 63-38f-1223 is
            79525     renumbered and amended to read:
            79526          [63-38f-1223].     63M-1-1223. Permissible investments.
            79527         Investments by designated investors in the Utah fund of funds are permissible
            79528     investments under applicable laws of the state for:
            79529         (1) state-chartered banks;
            79530         (2) state-chartered savings and loan associations;
            79531         (3) state-chartered credit unions;
            79532         (4) state-chartered industrial banks; and
            79533         (5) domestic insurance companies.
            79534         Section 1854. Section 63M-1-1224 , which is renumbered from Section 63-38f-1224 is
            79535     renumbered and amended to read:
            79536          [63-38f-1224].     63M-1-1224. Exemption from certain statutes.
            79537         (1) Except as otherwise provided in this part, the corporation is exempt from statutes
            79538     governing state agencies, as provided in Section 63E-2-109 .
            79539         (2) The corporation shall be subject to:
            79540         (a) Title 52, Chapter 4, Open and Public Meetings Act; and
            79541         (b) except as provided in Subsection (3), [Title 63, Chapter 2] Title 63G, Chapter 2,
            79542     Government Records Access and Management Act.
            79543         (3) The corporation and the board are exempt from the requirement to report fund
            79544     performance of venture firms and private equity firms set forth in [Title 63, Chapter 2] Title
            79545     63G, Chapter 2, Government Records Access and Management Act.
            79546         Section 1855. Section 63M-1-1301 , which is renumbered from Section 63-38f-1301 is
            79547     renumbered and amended to read:
            79548     
Part 13. Aerospace and Aviation Zone

            79549          [63-38f-1301].     63M-1-1301. Purpose.

            79550         (1) The Legislature finds that:
            79551         (a) the fostering and development of industry in Utah is a state public purpose necessary
            79552     to assure the welfare of its citizens, the growth of its economy, and adequate employment for its
            79553     citizens; and
            79554         (b) Utah loses prospective high paying jobs, economic impacts, and corresponding
            79555     incremental new state revenues to competing states due to a wide variety of competing
            79556     economic development incentives offered by those states.
            79557         (2) This part is enacted to address the loss of new economic growth in Utah and the
            79558     corresponding loss of incremental new state revenues by providing tax increment financial
            79559     incentives to attract new commercial projects in development zones located on or contiguous to
            79560     airports in the state.
            79561         Section 1856. Section 63M-1-1302 , which is renumbered from Section 63-38f-1302 is
            79562     renumbered and amended to read:
            79563          [63-38f-1302].     63M-1-1302. Definitions.
            79564         As used in this part:
            79565         (1) "Development zone" means the Aerospace and Aviation Development Zone created
            79566     under Section [ 63-38f-1303 ] 63M-1-1303 .
            79567         (2) "Indirect state revenues" means the imputed use of a generally accepted indirect
            79568     economic multiplier as defined by a fiscal impact model approved by the Governor's Office of
            79569     Planning and Budget to quantify by estimate the indirect state tax revenues that are in addition
            79570     to direct state tax revenues.
            79571         (3) "New state revenues" means incremental new state tax revenues that are generated
            79572     as a result of new economic commercial projects in a development zone, to include the state's
            79573     portion of sales taxes, and company and employee income taxes derived from the projects,
            79574     together with indirect state revenues generated by the projects, but not to include any portion of
            79575     sales taxes earmarked for local governments or other taxing jurisdictions eligible for sales tax
            79576     revenues.
            79577         (4) "Office" means the Governor's Office of Economic Development acting through its

            79578     director.
            79579         (5) "Partial rebates" means returning a portion of the new state revenues generated by
            79580     new commercial projects to companies or individuals that have created new economic growth
            79581     within a development zone.
            79582         Section 1857. Section 63M-1-1303 , which is renumbered from Section 63-38f-1303 is
            79583     renumbered and amended to read:
            79584          [63-38f-1303].     63M-1-1303. Creation of development zones.
            79585         The office, with advice from the board, may create an Aerospace and Aviation
            79586     Development Zone at or around any airport in the state that has land available for commercial
            79587     development on, or contiguous to, the airport.
            79588         Section 1858. Section 63M-1-1304 , which is renumbered from Section 63-38f-1304 is
            79589     renumbered and amended to read:
            79590          [63-38f-1304].     63M-1-1304. Development incentives.
            79591         (1) The office, with advice from the board, may enter into agreements providing for
            79592     partial rebates of new state revenues generated by new commercial projects to companies or
            79593     individuals that create new economic growth within the development zone.
            79594         (2) In no event may the partial rebates be in excess of 50% of the new state revenues in
            79595     any given year.
            79596         (3) (a) The partial rebates may not exceed 30% of the new state revenues generated
            79597     over the life of a new commercial project.
            79598         (b) For purposes of this part, the life of a new commercial project is limited to 20 years.
            79599         (4) Partial rebates are subject to any other limitations adopted by board rule made in
            79600     accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
            79601     Act.
            79602         Section 1859. Section 63M-1-1305 , which is renumbered from Section 63-38f-1305 is
            79603     renumbered and amended to read:
            79604          [63-38f-1305].     63M-1-1305. Qualifications for credits and rebates.
            79605         The office shall set standards to qualify for partial rebates under this part, subject to the

            79606     following:
            79607         (1) no partial rebates may be paid prior to verification, by the office, of the new state
            79608     revenues upon which the tax rebate is based;
            79609         (2) partial rebates can only be paid on projects that are within the development zone;
            79610         (3) partial rebates can only be paid on projects that bring new, incremental jobs to the
            79611     state;
            79612         (4) qualifying projects must involve direct investment within the geographic boundaries
            79613     of the development zone;
            79614         (5) only aerospace and aviation industry projects, as defined by board rule made in
            79615     accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
            79616     Act, are eligible for partial rebates; and
            79617         (6) in order to claim payments representing partial rebates of new state revenues, a
            79618     person must:
            79619         (a) enter into an office-approved agreement with the office and affirm by contractual
            79620     agreement to keep supporting records for at least four years after final payment of partial
            79621     rebates under this part;
            79622         (b) submit to audits for verification of the amounts claimed; and
            79623         (c) comply with other conditions as are required by the office.
            79624         Section 1860. Section 63M-1-1306 , which is renumbered from Section 63-38f-1306 is
            79625     renumbered and amended to read:
            79626          [63-38f-1306].     63M-1-1306. Payment procedure.
            79627         Any payment of partial rebates of new state revenues shall be made in accordance with
            79628     procedures adopted by the office with the advice of the board, to include the following:
            79629         (1) within 90 days of the end of each calendar year, any company or individual that has
            79630     entered into an agreement with the office under this part shall provide the office with
            79631     documentation of the new state revenues it claims to have generated during that calendar year,
            79632     the documentation to include the types of taxes and corresponding amounts of taxes paid
            79633     directly to the Utah State Tax Commission, and sales taxes paid to Utah vendors and suppliers

            79634     that are indirectly paid to the Utah State Tax Commission;
            79635         (2) the office shall audit or review the documentation, make a determination of the
            79636     amount of partial rebates earned under the agreement, and forward an office-approved request
            79637     for payment of that amount to the Division of Finance, together with information regarding the
            79638     name and address of the payee and any other information reasonably requested by the office;
            79639     and
            79640         (3) the Division of Finance shall pay a partial rebate from the Economic Incentive
            79641     Restricted Account created in Section [ 63-38f-1309 ] 63M-1-1309 upon receipt of
            79642     documentation and the office-approved request from the office under Subsection (2).
            79643         Section 1861. Section 63M-1-1307 , which is renumbered from Section 63-38f-1307 is
            79644     renumbered and amended to read:
            79645          [63-38f-1307].     63M-1-1307. Office's authority.
            79646         (1) The office, with the advice of the board and within the limitations of this part, may
            79647     determine:
            79648         (a) the structure and amount of any partial rebates offered under this part;
            79649         (b) the economic impacts and job creation necessary to qualify for the incentive; and
            79650         (c) the other terms and conditions of any agreement entered into under this part.
            79651         (2) In reviewing claims for partial rebates of new state revenues, the office may accept:
            79652         (a) as the amount of employee income taxes paid, the amount of employee income taxes
            79653     withheld and transmitted to the Utah State Tax Commission as evidenced by payroll records
            79654     rather than adjusting for the difference between taxes withheld and taxes actually paid through
            79655     filing by employees' annual income tax statements; and
            79656         (b) as the amount of company income taxes paid, the amount of corporate franchise and
            79657     income taxes estimated and transmitted to the Utah State Tax Commission as evidenced by
            79658     quarterly payment records rather than adjusting for the difference between estimated taxes paid
            79659     quarterly and taxes actually paid through the filing of the corporation's annual income tax
            79660     statement.
            79661         (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah

            79662     Administrative Rulemaking Act, the board may make, amend, and repeal rules regarding the
            79663     development zone and partial rebates offered within it, provided the rules are consistent with
            79664     state and federal law.
            79665         Section 1862. Section 63M-1-1308 , which is renumbered from Section 63-38f-1308 is
            79666     renumbered and amended to read:
            79667          [63-38f-1308].     63M-1-1308. Coordination with Industrial Assistance Fund.
            79668         Projects that qualify for partial rebates of new state revenues under this part and enter
            79669     into agreements with the office under this part are ineligible to qualify for additional financial
            79670     assistance from the Industrial Assistance Fund under Section [ 63-38f-904 ] 63M-1-905 .
            79671         Section 1863. Section 63M-1-1309 , which is renumbered from Section 63-38f-1309 is
            79672     renumbered and amended to read:
            79673          [63-38f-1309].     63M-1-1309. Establishment of the Economic Incentive
            79674      Restricted Account.
            79675         (1) There is created a restricted account in the General Fund known as the Economic
            79676     Incentive Restricted Account.
            79677         (2) The account shall be used to make payments as required under Sections
            79678     [ 63-38f-1306 ] 63M-1-1306 and [ 63-38f-1705 ] 63M-1-1705 .
            79679         (3) (a) The Division of Finance shall transfer from the General Fund the amount
            79680     estimated by the office from new state revenues needed to make the partial rebates as allowed in
            79681     Sections [ 63-38f-1306 ] 63M-1-1306 and [ 63-38f-1705 ] 63M-1-1705 .
            79682         (b) The amount transferred into the account shall be reduced by any unencumbered
            79683     balances in the account.
            79684         (4) Not withstanding Subsections 51-5-3 (23)(b) and [ 63-38-9 ] 63J-1-404 (4)(c), after
            79685     receiving a request for payment, in accordance with Subsection [ 63-38f-1306 ] 63M-1-1306 (2)
            79686     or [ 63-38f-1705 ] 63M-1-1705 (2), the Division of Finance shall pay the partial rebates as
            79687     allowed in Section [ 63-38f-1306 ] 63M-1-1306 or [ 63-38f-1705 ] 63M-1-1705 , from the
            79688     account.
            79689         (5) (a) Prior to the beginning of each fiscal year, the office shall notify the Governor's

            79690     Office of Planning and Budget, the Office of Legislative Fiscal Analyst, and the Division of
            79691     Finance of:
            79692         (i) the estimated amount of new state revenues created from economic growth in the
            79693     development zones, the estimate detailed by the amounts from:
            79694         (A) sales tax;
            79695         (B) income tax; and
            79696         (C) corporate franchise and income tax; and
            79697         (ii) the estimated amount partial rebates projected to be paid in the upcoming fiscal
            79698     year, the estimates detailed by the amounts from:
            79699         (A) sales tax;
            79700         (B) income tax; and
            79701         (C) corporate franchise and income tax.
            79702         (b) The office shall update the estimates required by Subsections (5)(a)(i) and (ii) within
            79703     30 days of the signing of each new agreement entered into under this part or [Title 63, Chapter
            79704     38f] Title 63M, Chapter 1, Part 17, Economic Development Incentives Act.
            79705         Section 1864. Section 63M-1-1401 , which is renumbered from Section 63-38f-1406 is
            79706     renumbered and amended to read:
            79707     
Part 14. Board of Tourism Development

            79708          [63-38f-1406].     63M-1-1401. Board of Tourism Development.
            79709         (1) There is created within the office the Board of Tourism Development.
            79710         (2) The board shall advise the office on the office's planning, policies, and strategies and
            79711     on trends and opportunities for tourism development that may exist in the various areas of the
            79712     state.
            79713         (3) The board shall perform other duties as required by Section [ 63-38f-1408 ]
            79714      63M-1-1403 .
            79715         Section 1865. Section 63M-1-1402 , which is renumbered from Section 63-38f-1407 is
            79716     renumbered and amended to read:
            79717          [63-38f-1407].     63M-1-1402. Members -- Meetings -- Expenses.

            79718         (1) (a) The board shall consist of 13 members appointed by the governor to four-year
            79719     terms of office with the consent of the Senate.
            79720         (b) Notwithstanding the requirements of Subsection (1)(a), the governor shall, at the
            79721     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
            79722     board members are staggered so that approximately half of the board is appointed every two
            79723     years.
            79724         (2) The members may not serve more than two full consecutive terms unless the
            79725     governor determines that an additional term is in the best interest of the state.
            79726         (3) Not more than seven members of the board may be of the same political party.
            79727         (4) (a) The members shall be representative of:
            79728         (i) all areas of the state with six being appointed from separate geographical areas as
            79729     provided in Subsection (4)(b); and
            79730         (ii) a diverse mix of business ownership or executive management of tourism related
            79731     industries.
            79732         (b) The geographical representatives shall be appointed as follows:
            79733         (i) one member from Salt Lake, Tooele, or Morgan County;
            79734         (ii) one member from Davis, Weber, Box Elder, Cache, or Rich County;
            79735         (iii) one member from Utah, Summit, Juab, or Wasatch County;
            79736         (iv) one member from Carbon, Emery, Grand, Duchesne, Daggett, or Uintah County;
            79737         (v) one member from San Juan, Piute, Wayne, Garfield, or Kane County; and
            79738         (vi) one member from Washington, Iron, Beaver, Sanpete, Sevier, or Millard County.
            79739         (c) The tourism industry representatives of ownership or executive management shall be
            79740     appointed as follows:
            79741         (i) one member from ownership or executive management of the lodging industry, as
            79742     recommended by the lodging industry for the governor's consideration;
            79743         (ii) one member from ownership or executive management of the restaurant industry, as
            79744     recommended by the restaurant industry for the governor's consideration;
            79745         (iii) one member from ownership or executive management of the ski industry, as

            79746     recommended by the ski industry for the governor's consideration; and
            79747         (iv) one member from ownership or executive management of the motor vehicle rental
            79748     industry, as recommended by the motor vehicle rental industry for the governor's consideration.
            79749         (d) One member shall be appointed at large from ownership or executive management
            79750     of business, finance, economic policy, or the academic media marketing community.
            79751         (e) One member shall be appointed from the Utah Tourism Industry Coalition as
            79752     recommended by the coalition for the governor's consideration.
            79753         (f) One member shall be appointed to represent the state's counties as recommended by
            79754     the Utah Association of Counties for the governor's consideration.
            79755         (g) (i) The governor may choose to disregard a recommendation made for a board
            79756     member under Subsections (4)(c), (e), and (f).
            79757         (ii) The governor shall request additional recommendations if recommendations are
            79758     disregarded under Subsection (4)(g)(i).
            79759         (5) When a vacancy occurs in the membership for any reason, the replacement shall be
            79760     appointed for the unexpired term from the same geographic area or industry representation as
            79761     the member whose office was vacated.
            79762         (6) Seven members of the board constitute a quorum for conducting board business and
            79763     exercising board powers.
            79764         (7) The governor shall select one of the board members as chair and one of the board
            79765     members as vice chair, each for a four-year term as recommended by the board for the
            79766     governor's consideration.
            79767         (8) (a) Members shall receive no compensation or benefits for their services, but may
            79768     receive per diem and expenses incurred in the performance of the member's official duties at the
            79769     rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            79770         (b) Members may decline to receive per diem and expenses for their service.
            79771         (9) The board shall meet monthly or as often as the board determines to be necessary at
            79772     various locations throughout the state.
            79773         (10) Members who may have a potential conflict of interest in consideration of fund

            79774     allocation decisions shall identify the potential conflict prior to voting on the issue.
            79775         (11) (a) The board shall determine attendance requirements for maintaining a
            79776     designated board seat.
            79777         (b) If a board member fails to attend according to the requirements established pursuant
            79778     to Subsection (11)(a), the board member shall be replaced upon written certification from the
            79779     board chair or vice chair to the governor.
            79780         (c) A replacement appointed by the governor under Subsection (11)(b) shall serve for
            79781     the remainder of the board member's unexpired term.
            79782         (12) The board's office shall be in Salt Lake City.
            79783         Section 1866. Section 63M-1-1403 , which is renumbered from Section 63-38f-1408 is
            79784     renumbered and amended to read:
            79785          [63-38f-1408].     63M-1-1403. Board duties.
            79786         (1) The board shall:
            79787         (a) have authority to approve a tourism program of out-of-state advertising, marketing,
            79788     and branding, taking into account the long-term strategic plan, economic trends, and
            79789     opportunities for tourism development on a statewide basis, as a condition of the distribution of
            79790     funds to the office from the Tourism Marketing Performance Account under Section
            79791     [ 63-38f-1411 ] 63M-1-1406 ;
            79792         (b) review the office programs for coordination and integration of advertising and
            79793     branding themes to be used whenever possible in all office programs, including recreational,
            79794     scenic, historic, and tourist attractions of the state at large;
            79795         (c) encourage and assist in coordination of the activities of persons, firms, associations,
            79796     corporations, civic groups, and governmental agencies engaged in publicizing, developing, and
            79797     promoting the scenic attractions and tourist advantages of the state; and
            79798         (d) (i) advise the office in establishing a Cooperative Program from the monies in the
            79799     Tourism Marketing Performance Account under Section [ 63-38f-1411 ] 63M-1-1406 for use by
            79800     cities, counties, nonprofit destination marketing organizations, and similar public entities for the
            79801     purpose of supplementing monies committed by these entities for advertising and promotion to

            79802     and for out-of-state residents to attract them to visit sites advertised by and attend events
            79803     sponsored by these entities;
            79804         (ii) the Cooperative Program shall be allocated 20% of the revenues appropriated to the
            79805     office from the Tourism Marketing Performance Account;
            79806         (iii) the office, with approval from the board, shall establish eligibility, advertising, and
            79807     timing requirements and criteria and provide for an approval process for applications;
            79808         (iv) an application from an eligible applicant to receive monies from the Cooperative
            79809     Program must be submitted on or before the appropriate date established by the office; and
            79810         (v) Cooperative Program monies not used in each fiscal year shall be returned to the
            79811     Tourism Marketing Performance Account.
            79812         (2) The board may:
            79813         (a) solicit and accept contributions of moneys, services, and facilities from any other
            79814     sources, public or private and shall use these funds for promoting the general interest of the
            79815     state in tourism; and
            79816         (b) establish subcommittees for the purpose of assisting the board in an advisory role
            79817     only.
            79818         (3) The board may not, except as otherwise provided in Subsection (1)(a), make policy
            79819     related to the management or operation of the office.
            79820         Section 1867. Section 63M-1-1404 , which is renumbered from Section 63-38f-1409 is
            79821     renumbered and amended to read:
            79822          [63-38f-1409].     63M-1-1404. Powers and duties of office related to tourism
            79823      development plan -- Annual report and survey.
            79824         (1) The office shall:
            79825         (a) be the tourism development authority of the state;
            79826         (b) develop a tourism advertising, marketing, and branding program for the state;
            79827         (c) receive approval from the Board of Tourism Development under Subsection
            79828     [ 63-38f-1408 ] 63M-1-1403 (1)(a) before implementing the out-of-state advertising, marketing,
            79829     and branding campaign;

            79830         (d) develop a plan to increase the economic contribution by tourists visiting the state;
            79831         (e) plan and conduct a program of information, advertising, and publicity relating to the
            79832     recreational, scenic, historic, and tourist advantages and attractions of the state at large; and
            79833         (f) encourage and assist in the coordination of the activities of persons, firms,
            79834     associations, corporations, travel regions, counties, and governmental agencies engaged in
            79835     publicizing, developing, and promoting the scenic attractions and tourist advantages of the state.
            79836         (2) Any plan provided for under Subsection (1) shall address, but not be limited to,
            79837     enhancing the state's image, promoting Utah as a year-round destination, encouraging
            79838     expenditures by visitors to the state, and expanding the markets where the state is promoted.
            79839         (3) The office shall conduct a regular and ongoing research program to identify
            79840     statewide economic trends and conditions in the tourism sector of the economy and to provide
            79841     an annual evaluation of the economic efficiency of the advertising and branding campaigns
            79842     conducted under this part to the Legislature's Workforce Services and Community and
            79843     Economic Development Interim Committee and the Economic Development and Human
            79844     Resources Appropriations Subcommittee.
            79845         Section 1868. Section 63M-1-1405 , which is renumbered from Section 63-38f-1410 is
            79846     renumbered and amended to read:
            79847          [63-38f-1410].     63M-1-1405. Agreements with other governmental entities.
            79848         The office may enter into agreements with state or federal agencies to accept services,
            79849     quarters, or facilities as a contribution in carrying out the duties and functions of the office.
            79850         Section 1869. Section 63M-1-1406 , which is renumbered from Section 63-38f-1411 is
            79851     renumbered and amended to read:
            79852          [63-38f-1411].     63M-1-1406. Tourism Marketing Performance Account.
            79853         (1) There is created within the General Fund a restricted account known as the Tourism
            79854     Marketing Performance Account.
            79855         (2) The account shall be administered by the office for the purposes listed in Subsection
            79856     (5).
            79857         (3) (a) The account shall earn interest.

            79858         (b) All interest earned on account monies shall be deposited into the account.
            79859         (c) Monies in the account are nonlapsing.
            79860         (4) The account shall be funded by appropriations made to the account by the
            79861     Legislature in accordance with this section.
            79862         (5) The director may use account monies appropriated to the office to pay for the
            79863     statewide advertising, marketing, and branding campaign for promotion of the state as
            79864     conducted by the office.
            79865         (6) (a) For the fiscal year beginning July 1, 2007, the director shall allocate 10% of the
            79866     account monies appropriated to the office to be distributed to a sports organization for
            79867     advertising, marketing, branding, and promoting Utah in attracting sporting events into the state
            79868     as determined by the office.
            79869         (b) For a fiscal year beginning on or after July 1, 2008, the amount distributed under
            79870     Subsection (6)(a) shall be indexed from the July 1, 2007 fiscal year to reflect a percent increase
            79871     or decrease of monies set aside into the account as compared to the previous fiscal year.
            79872         (c) The monies distributed under Subsections (6)(a) and (b) are nonlapsing.
            79873         (d) The office shall provide for an annual accounting to the office by a sports
            79874     organization of the use of monies it receives under Subsection (6)(a) or (b).
            79875         (e) For purposes of this Subsection (6), "sports organization" means an organization
            79876     that is:
            79877         (i) exempt from federal income taxation in accordance with Section 501(c)(3), Internal
            79878     Revenue Code; and
            79879         (ii) created to foster national and international amateur sports competitions to be held in
            79880     the state and sports tourism throughout the state, to include advertising, marketing, branding,
            79881     and promoting Utah for the purpose of attracting sporting events into the state.
            79882         (7) (a) Monies set aside into the account shall be as follows:
            79883         (i) for the fiscal year beginning July 1, 2005 only, an amount appropriated in Section 7
            79884     of this bill;
            79885         (ii) for the fiscal year beginning July 1, 2006:

            79886         (A) the beginning nonlapsing appropriation balances, if any, in the Tourism Marketing
            79887     Performance Account;
            79888         (B) any legislative appropriation from the sales and use tax revenue increases identified
            79889     in Subsection (8); and
            79890         (C) any appropriation made by the Legislature from the General Fund to the account in
            79891     an appropriations bill; and
            79892         (iii) for the fiscal year beginning July 1, 2007, and for each fiscal year thereafter, a
            79893     $1,000,000 reduction in the prior year's appropriation sources other than the sales and use tax
            79894     revenue increases identified in Subsection (8), plus a legislative appropriation from the
            79895     cumulative sales and use tax revenue increases identified in Subsection (8).
            79896         (b) Monies in the account are nonlapsing.
            79897         (8) (a) In fiscal years 2006 through 2015, a portion of the state sales and use tax
            79898     revenues determined under this Subsection (8) shall be certified as a set-aside for the account by
            79899     the State Tax Commission and reported to the Office of Legislative Fiscal Analyst.
            79900         (b) The State Tax Commission shall determine the set-aside under this Subsection (8) in
            79901     each fiscal year by applying the following formula: if the increase in the state sales and use tax
            79902     revenues derived from the retail sales of tourist-oriented goods and services in the fiscal year
            79903     two years prior to the fiscal year in which the set-aside is to be made for the account is at least
            79904     3% over the state sales and use tax revenues derived from the retail sales of tourist-oriented
            79905     goods and services generated in the fiscal year three years prior to the fiscal year in which the
            79906     set-aside is to be made, an amount equal to 1/2 of the state sales and use tax revenues generated
            79907     above the 3% increase shall be calculated by the commission and set aside by the state treasurer
            79908     for appropriation to the account.
            79909         (c) Total monies to be appropriated to the account in any fiscal year under Subsections
            79910     (8)(a) and (b) may not exceed the amount in the account under this section in the fiscal year
            79911     immediately preceding the current fiscal year by more than $3,000,000.
            79912         (d) As used in this Subsection (8), "sales of tourism-oriented goods and services" are
            79913     those sales by businesses registered with the State Tax Commission under the following codes

            79914     of the 1997 North American Industry Classification System of the federal Executive Office of
            79915     the President, Office of Management and Budget:
            79916         (i) NAICS Code 453 Miscellaneous Store Retailers;
            79917         (ii) NAICS Code 481 Passenger Air Transportation;
            79918         (iii) NAICS Code 487 Scenic and Sightseeing Transportation;
            79919         (iv) NAICS Code 711 Performing Arts, Spectator Sports and Related Industries;
            79920         (v) NAICS Code 712 Museums, Historical Sites and Similar Institutions;
            79921         (vi) NAICS Code 713 Amusement, Gambling and Recreation Industries;
            79922         (vii) NAICS Code 721 Accommodations;
            79923         (viii) NAICS Code 722 Food Services and Drinking Places;
            79924         (ix) NAICS Code 4483 Jewelry, Luggage, and Leather Goods Stores;
            79925         (x) NAICS Code 4853 Taxi and Limousine Service;
            79926         (xi) NAICS Code 4855 Charter Bus;
            79927         (xii) NAICS Code 5615 Travel Arrangement and Reservation Services;
            79928         (xiii) NAICS Code 44611 Pharmacies and Drug Stores;
            79929         (xiv) NAICS Code 45111 Sporting Goods Stores;
            79930         (xv) NAICS Code 45112 Hobby Toy and Game Stores;
            79931         (xvi) NAICS Code 45121 Book Stores and News Dealers;
            79932         (xvii) NAICS Code 445120 Convenience Stores without Gas Pumps;
            79933         (xviii) NAICS Code 447110 Gasoline Stations with Convenience Stores;
            79934         (xix) NAICS Code 447190 Other Gasoline Stations;
            79935         (xx) NAICS Code 532111 Passenger Car Rental; and
            79936         (xxi) NAICS Code 532292 Recreational Goods Rental.
            79937         Section 1870. Section 63M-1-1501 , which is renumbered from Section 63-38f-1501 is
            79938     renumbered and amended to read:
            79939     
Part 15. Utah Pioneer Communities Program Act

            79940          [63-38f-1501].     63M-1-1501. Title.
            79941         This part [shall be] is known as the "Utah Pioneer Communities Program Act."

            79942         Section 1871. Section 63M-1-1502 , which is renumbered from Section 63-38f-1502 is
            79943     renumbered and amended to read:
            79944          [63-38f-1502].     63M-1-1502. Definitions.
            79945         As used in this part:
            79946         (1) "Advisory board" means the Utah Pioneer Communities Program Advisory Board
            79947     created in Section [ 63-38f-1503 ] 63M-1-1503 within the office.
            79948         (2) "Community" means a city, county, town, or any combination of these.
            79949         (3) "Revitalization" means the process of engaging in activities to increase economic
            79950     activity while preserving and building upon a location's historically significant characteristics.
            79951         Section 1872. Section 63M-1-1503 , which is renumbered from Section 63-38f-1503 is
            79952     renumbered and amended to read:
            79953          [63-38f-1503].     63M-1-1503. Advisory board.
            79954         (1) (a) There is created within the office the Utah Pioneer Communities Advisory
            79955     Board.
            79956         (b) The Permanent Community Impact Fund Board created in Section 9-4-304 shall act
            79957     as the advisory board.
            79958         (2) The advisory board shall have the powers and duties described in Section
            79959     [ 63-38f-1504 ] 63M-1-1504 and shall operate the Utah Pioneer Communities Program in
            79960     accordance with Section [ 63-38f-1505 ] 63M-1-1505 .
            79961         (3) The director shall designate an employee of the office to serve as a nonvoting
            79962     secretary for the advisory board.
            79963         (4) (a) (i) Members who are not government employees shall receive no compensation
            79964     or benefits for their services, but may receive per diem and expenses incurred in the
            79965     performance of the member's official duties at the rates established by the Division of Finance
            79966     under Sections 63A-3-106 and 63A-3-107 .
            79967         (ii) Members may decline to receive per diem and expenses for their service.
            79968         (b) (i) State government officer and employee members who do not receive salary, per
            79969     diem, or expenses from their agency for their service may receive per diem and expenses

            79970     incurred in the performance of their official duties from the board at the rates established by the
            79971     Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            79972         (ii) State government officer and employee members may decline to receive per diem
            79973     and expenses for their service.
            79974         (c) (i) Higher education members who do not receive salary, per diem, or expenses
            79975     from the entity that they represent for their service may receive per diem and expenses incurred
            79976     in the performance of their official duties from the committee at the rates established by the
            79977     Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            79978         (ii) Higher education members may decline to receive per diem and expenses for their
            79979     service.
            79980         (d) (i) Local government members who do not receive salary, per diem, or expenses
            79981     from the entity that they represent for their service may receive per diem and expenses incurred
            79982     in the performance of their official duties at the rates established by the Division of Finance
            79983     under Sections 63A-3-106 and 63A-3-107 .
            79984         (ii) Local government members may decline to receive per diem and expenses for their
            79985     service.
            79986         Section 1873. Section 63M-1-1504 , which is renumbered from Section 63-38f-1504 is
            79987     renumbered and amended to read:
            79988          [63-38f-1504].     63M-1-1504. Advisory board duties.
            79989         (1) The advisory board shall:
            79990         (a) establish and administer a Utah Pioneer Communities Program to assist communities
            79991     in planning, managing, and implementing programs for the revitalization of business districts and
            79992     the preservation of their distinct history, heritage, and culture as a basis for promoting stable,
            79993     sustained economic growth through business expansion and tourism;
            79994         (b) select, upon application by the community, communities to participate in the Utah
            79995     Pioneer Communities Program;
            79996         (c) enter into contracts to obtain services related to community preservation and
            79997     tourism development;

            79998         (d) with help from interested communities, individuals, and organizations, develop a
            79999     plan describing the objectives of the Utah Pioneer Communities Program and the methods by
            80000     which the advisory board shall:
            80001         (i) coordinate the activities of that program with the private and public sector; and
            80002         (ii) solicit and use private sector funding to revitalize business districts and provide
            80003     services related to community preservation, tourism, and business development; and
            80004         (e) coordinate and consult with other state and local or public and private entities that
            80005     provide services to communities undertaking projects to provide services related to community
            80006     preservation, tourism, and business development.
            80007         (2) The advisory board shall provide training, technical assistance, and information on
            80008     services related to community preservation, tourism, and business development.
            80009         Section 1874. Section 63M-1-1505 , which is renumbered from Section 63-38f-1505 is
            80010     renumbered and amended to read:
            80011          [63-38f-1505].     63M-1-1505. Criteria for participation -- Report.
            80012         (1) The advisory board shall develop objective criteria including the following:
            80013         (a) a three year commitment by the applicant to provide a project manager with a travel
            80014     and operating budget;
            80015         (b) evidence that both the business community and the local government support the
            80016     Utah Pioneer Communities Program approach philosophically and financially;
            80017         (c) capacity for economic change as a result of being a participant in the program;
            80018         (d) geographic location, population, and economic base diversity;
            80019         (e) evidence of past preservation efforts; and
            80020         (f) a population of less than 50,000.
            80021         (2) The advisory board shall provide to the governor and to the presiding officer of
            80022     each house of the Legislature an annual report on the effects of the Utah Pioneer Communities
            80023     Program.
            80024         Section 1875. Section 63M-1-1601 , which is renumbered from Section 63-38f-1601 is
            80025     renumbered and amended to read:

            80026     
Part 16. Rural Development Act

            80027          [63-38f-1601].     63M-1-1601. Title -- Definitions.
            80028         (1) This part is known as the "Rural Development Act."
            80029         (2) As used in this part:
            80030         (a) "Office" means the Governor's Office of Economic Development.
            80031         (b) "Program" means the Rural Development Program.
            80032         Section 1876. Section 63M-1-1602 , which is renumbered from Section 63-38f-1602 is
            80033     renumbered and amended to read:
            80034          [63-38f-1602].     63M-1-1602. Rural Development Program -- Supervision by
            80035      office.
            80036         (1) There is created within the office the Rural Development Program.
            80037         (2) The program is under the administration and general supervision of the office.
            80038         Section 1877. Section 63M-1-1603 , which is renumbered from Section 63-38f-1603 is
            80039     renumbered and amended to read:
            80040          [63-38f-1603].     63M-1-1603. Purpose of the program.
            80041         The program is established to:
            80042         (1) foster and support economic development programs and activities for the benefit of
            80043     rural counties and communities;
            80044         (2) foster and support community, county, and resource management planning
            80045     programs and activities for the benefit of rural counties and communities;
            80046         (3) foster and support leadership training programs and activities for the benefit of:
            80047         (a) rural leaders in both the public and private sectors;
            80048         (b) economic development and planning personnel; and
            80049         (c) rural government officials;
            80050         (4) foster and support efforts to coordinate and focus the technical and other resources
            80051     of appropriate institutions of higher education, local governments, private sector interests,
            80052     associations, nonprofit organizations, federal agencies, and others, in ways that address the
            80053     economic development, planning, and leadership challenges and priorities of rural Utah as

            80054     identified in the strategic plan required under Subsection 63C-10-103 (2);
            80055         (5) work to enhance the capacity of the office to address rural economic development,
            80056     planning, and leadership training challenges and opportunities by establishing partnerships and
            80057     positive working relationships with appropriate public and private sector entities, individuals,
            80058     and institutions; and
            80059         (6) foster government-to-government collaboration and good working relations
            80060     between state and rural government regarding economic development and planning issues.
            80061         Section 1878. Section 63M-1-1604 , which is renumbered from Section 63-38f-1604 is
            80062     renumbered and amended to read:
            80063          [63-38f-1604].     63M-1-1604. Duties.
            80064         (1) The program shall:
            80065         (a) provide, in conjunction with the Rural Coordinating Committee, staff support to the
            80066     Governor's Rural Partnership board;
            80067         (b) facilitate within the department implementation of the strategic plan prepared under
            80068     Subsection 63C-10-103 (2);
            80069         (c) work to enhance the capacity of the office to address rural economic development,
            80070     planning, and leadership training challenges and opportunities by establishing partnerships and
            80071     positive working relationships with appropriate public and private sector entities, individuals,
            80072     and institutions;
            80073         (d) work with the Rural Coordinating Committee to coordinate and focus available
            80074     resources in ways that address the economic development, planning, and leadership training
            80075     challenges and priorities in rural Utah; and
            80076         (e) in accordance with economic development and planning policies set by state
            80077     government, coordinate relations between:
            80078         (i) the state;
            80079         (ii) rural governments;
            80080         (iii) other public and private groups engaged in rural economic planning and
            80081     development; and

            80082         (iv) federal agencies.
            80083         (2) (a) The program may:
            80084         (i) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            80085     Administrative Rulemaking Act, make rules necessary to carry out the duties of the office;
            80086         (ii) accept gifts, grants, devises, and property, in cash or in kind, for the benefit of rural
            80087     Utah citizens; and
            80088         (iii) use those gifts, grants, devises, and property received under Subsection (2)(a)(ii)
            80089     for the use and benefit of rural citizens within the state.
            80090         (b) All resources received under Subsection (2)(a)(ii) shall be deposited in the General
            80091     Fund as dedicated credits to be used as directed in Subsection (2)(a)(iii).
            80092         (c) All funding for the benefit of rural Utah as defined in this section is nonlapsing.
            80093         Section 1879. Section 63M-1-1605 , which is renumbered from Section 63-38f-1605 is
            80094     renumbered and amended to read:
            80095          [63-38f-1605].     63M-1-1605. Program manager.
            80096         (1) The director of the office shall appoint a manager for the program with the approval
            80097     of the governor.
            80098         (2) The manager shall be a person knowledgeable in the field of rural economic
            80099     development and planning and experienced in administration.
            80100         (3) Upon change of the director, the manager of the program may not be dismissed
            80101     without cause for at least 180 days.
            80102         (4) The manager shall be a member of the Rural Coordinating Committee's Steering
            80103     Committee created in Subsection 63C-10-202 (3).
            80104         Section 1880. Section 63M-1-1606 , which is renumbered from Section 63-38f-1606 is
            80105     renumbered and amended to read:
            80106          [63-38f-1606].     63M-1-1606. Annual report.
            80107         The office shall submit an annual report of the program's operations and
            80108     recommendations to:
            80109         (1) the governor; and

            80110         (2) the Rural Development Legislative Liaison Committee created in Section
            80111      36-25-102 .
            80112         Section 1881. Section 63M-1-1701 , which is renumbered from Section 63-38f-1701 is
            80113     renumbered and amended to read:
            80114     
Part 17. Economic Development Incentives Act

            80115          [63-38f-1701].     63M-1-1701. Title.
            80116         This part is known as the "Economic Development Incentives Act."
            80117         Section 1882. Section 63M-1-1702 , which is renumbered from Section 63-38f-1702 is
            80118     renumbered and amended to read:
            80119          [63-38f-1702].     63M-1-1702. Findings.
            80120         (1) The Legislature finds that:
            80121         (a) to foster and develop industry in Utah is a public purpose necessary to assure
            80122     adequate employment for, and the welfare of, Utah's citizens and the growth of the state's
            80123     economy;
            80124         (b) Utah loses prospective high paying jobs, economic impacts, and corresponding
            80125     incremental new state and local revenues to competing states because of a wide variety of
            80126     competing economic incentives offered by those states; and
            80127         (c) economic development initiatives and interests of state and local economic
            80128     development officials should be aligned and united in the creation of higher paying jobs that will
            80129     lift the wage levels of the communities in which those jobs will be created.
            80130         (2) This part is enacted to:
            80131         (a) address the loss of new economic growth in Utah and the corresponding loss of
            80132     incremental new state and local revenues by providing tax incremental financial incentives to
            80133     attract new commercial projects in economic development zones in the state; and
            80134         (b) provide a cooperative and unified working relationship between state and local
            80135     economic development efforts.
            80136         Section 1883. Section 63M-1-1703 , which is renumbered from Section 63-38f-1703 is
            80137     renumbered and amended to read:

            80138          [63-38f-1703].     63M-1-1703. Definitions.
            80139         As used in this part:
            80140         (1) "Development zone" means an economic development zone created under Section
            80141     [ 63-38f-1704 ] 63M-1-1704 .
            80142         (2) "High paying jobs" means the annual wages of employment positions that compare
            80143     favorably against the median wage of a community in which the jobs will exist.
            80144         (3) "Local incentives" means financial and other assistance provided by local taxing
            80145     authorities within a development zone, which may include:
            80146         (a) partial rebates of new local revenues; and
            80147         (b) other sources of funds under authority of state law or local ordinances, or both state
            80148     law and local ordinances.
            80149         (4) "New incremental jobs" means jobs that are:
            80150         (a) not shifted from one jurisdiction in the state to another jurisdiction in the state; and
            80151         (b) created in addition to the baseline count of jobs already in existence within a
            80152     company or employed by an individual.
            80153         (5) "New local revenues" mean incremental new local tax revenues that are generated
            80154     as a result of new economic commercial projects in a development zone, to include the local
            80155     government's portion of sales taxes, property taxes, impact fees, and other taxes or fees, or both
            80156     taxes and fees, derived from the projects, together with indirect local government revenues
            80157     generated by the projects, but not to include any portion of sales taxes earmarked for state
            80158     government or other taxing jurisdictions eligible for sales tax revenues.
            80159         (6) "New state revenues" means incremental new state tax revenues that are generated
            80160     as a result of new economic commercial projects in a development zone, to include the state's
            80161     portion of sales taxes, and company and employee income taxes derived from the projects,
            80162     together with indirect state revenues generated by the projects, but not to include any portion of
            80163     sales taxes earmarked for local governments or other taxing jurisdictions eligible for sales tax
            80164     revenues.
            80165         (7) "Office" means the Governor's Office of Economic Development.

            80166         (8) "Partial rebates" means returning a portion of the new local revenues and new state
            80167     revenues generated by new commercial projects to companies or individuals that have created
            80168     new economic growth within a development zone.
            80169         Section 1884. Section 63M-1-1704 , which is renumbered from Section 63-38f-1704 is
            80170     renumbered and amended to read:
            80171          [63-38f-1704].     63M-1-1704. Creation of economic development zones --
            80172      Incentives.
            80173         (1) The office, with advice from the board, may create an economic development zone
            80174     in the state that satisfies all of the following requirements:
            80175         (a) the area is zoned commercial, industrial, manufacturing, business park, research
            80176     park, or other appropriate use in a community approved master plan; and
            80177         (b) the request to create a development zone has been forwarded to the office after first
            80178     being approved by an appropriate local government entity that has committed or will commit to
            80179     provide local incentives.
            80180         (2) (a) The office, with advice from the board, may enter into agreements providing for
            80181     partial rebates of new state revenues generated by new commercial projects to companies or
            80182     individuals that create new economic growth within a development zone under the same
            80183     restrictions and limitations as provided in Section [ 63-38f-1304 ] 63M-1-1304 .
            80184         (b) The limitations and restrictions applied to partial rebates of new state revenues in
            80185     Section [ 63-38f-1304 ] 63M-1-1304 also apply to partial rebates of new local revenues under
            80186     this part.
            80187         Section 1885. Section 63M-1-1705 , which is renumbered from Section 63-38f-1705 is
            80188     renumbered and amended to read:
            80189          [63-38f-1705].     63M-1-1705. Qualifications for rebates -- Payment
            80190      procedure.
            80191         (1) The office shall set standards to qualify for partial rebates under this part, subject to
            80192     the following:
            80193         (a) the qualification criteria established in Subsections [ 63-38f-1305 ] 63M-1-1305 (1),

            80194     (2), (3), (4), and (6); and
            80195         (b) only projects that include significant capital investment, the creation of high paying
            80196     jobs, or significant purchases from Utah vendors and providers, or any combination of these
            80197     three economic factors are eligible for partial rebates.
            80198         (2) A payment of partial rebates of new state revenues shall be made in accordance with
            80199     procedures adopted by the office, with advice from the board, to include the payment
            80200     procedures described in Section [ 63-38f-1306 ] 63M-1-1306 as applied to partial rebates
            80201     authorized under this part.
            80202         Section 1886. Section 63M-1-1706 , which is renumbered from Section 63-38f-1706 is
            80203     renumbered and amended to read:
            80204          [63-38f-1706].     63M-1-1706. Office's authority -- Report to Legislature.
            80205         (1) The office, with advice from the board, and within the limitations of this part, may
            80206     determine:
            80207         (a) the structure and amount of any partial rebates offered under this part;
            80208         (b) the economic impacts and job creation necessary to qualify for the incentive; and
            80209         (c) the other terms and conditions of an agreement entered into under this part.
            80210         (2) In reviewing claims for partial rebates of new state revenues, the office may accept
            80211     the same type of information and evidence allowed under Subsections [ 63-38f-1307 ]
            80212      63M-1-1307 (2)(a) and (b).
            80213         (3) (a) The office shall make a report to the Legislature's Workforce Services and
            80214     Community and Economic Development Interim Committee on:
            80215         (i) the success of attracting new commercial projects to development zones under this
            80216     part and the corresponding increase in new incremental jobs;
            80217         (ii) the period of time over which partial rebates of new state revenues shall be granted
            80218     under this part; and
            80219         (iii) the economic impact on the state related to generating new state revenues and
            80220     rebating a portion of those revenues under this part.
            80221         (b) The office shall make the report prior to the 2006 General Session of the Legislature

            80222     to enable the committee to determine whether this part should be modified during the 2006
            80223     General Session.
            80224         Section 1887. Section 63M-1-1801 , which is renumbered from Section 63-38f-1801 is
            80225     renumbered and amended to read:
            80226     
Part 18. Motion Picture Incentive Fund

            80227          [63-38f-1801].     63M-1-1801. Purpose.
            80228         (1) The Legislature finds that:
            80229         (a) the state's natural beauty, scenic wonders, and diverse topography provide a variety
            80230     of magnificent settings from which the motion picture industry can choose to film part or all of
            80231     major or independent motion pictures, made-for-television movies, and television series;
            80232         (b) the state has an abundance of resources, including a skilled and able workforce, the
            80233     required infrastructure, and a friendly and hospitable populace that have been instrumental in the
            80234     filming of several successful motion pictures and television series; and
            80235         (c) further development of the motion picture industry in Utah is a state public purpose
            80236     that will significantly impact growth in the state's economy and contribute to the fiscal well
            80237     being of the state and its people.
            80238         (2) The purpose of this part is to:
            80239         (a) encourage the use of Utah as a site for the production of motion pictures, television
            80240     series, and made-for-television movies;
            80241         (b) provide a financial incentive to the film industry so that Utah might compete
            80242     successfully with other states and countries for filming locations; and
            80243         (c) help develop a strong motion picture industry presence in the state that will
            80244     contribute substantially to improving the state's economy.
            80245         Section 1888. Section 63M-1-1802 , which is renumbered from Section 63-38f-1802 is
            80246     renumbered and amended to read:
            80247          [63-38f-1802].     63M-1-1802. Definitions.
            80248         As used in this part:
            80249         (1) "Administrator" means the director of the Governor's Office of Economic

            80250     Development or the director's designee.
            80251         (2) "Board" means the Board of Business and Economic Development.
            80252         (3) "Fund" means the restricted account known as the Motion Picture Incentive Fund
            80253     created in Section [ 63-38f-1803 ] 63M-1-1803 .
            80254         (4) "Motion picture company" means a company engaged in the production of motion
            80255     pictures, television series, or made-for-television movies.
            80256         (5) "State-approved production" means a motion picture, television series, or
            80257     made-for-television movie approved by the administrator and ratified by the board that is
            80258     produced in the state by a motion picture company.
            80259         Section 1889. Section 63M-1-1803 , which is renumbered from Section 63-38f-1803 is
            80260     renumbered and amended to read:
            80261          [63-38f-1803].     63M-1-1803. Motion Picture Incentive Fund created.
            80262         (1) There is created within the General Fund a restricted account known as the Motion
            80263     Picture Incentive Fund, which shall be used to provide incentives for within-the-state production
            80264     of television series, made-for-television movies, and motion pictures, including feature films and
            80265     independent films.
            80266         (2) (a) The fund shall be administered by the administrator with advice from the board.
            80267         (b) The administrator, with advice from the board, shall approve fund policies and
            80268     qualification criteria to receive an incentive award consistent with the provisions of this part.
            80269         (3) All interest generated from investment of money in the fund shall be deposited in the
            80270     fund.
            80271         (4) The fund shall consist of an annual appropriation by the Legislature.
            80272         Section 1890. Section 63M-1-1804 , which is renumbered from Section 63-38f-1804 is
            80273     renumbered and amended to read:
            80274          [63-38f-1804].     63M-1-1804. Financial incentives for motion picture
            80275      productions.
            80276         (1) A motion picture company that has a state-approved production under this section
            80277     may receive a financial incentive from the fund as provided in this section.

            80278         (2) (a) The administrator has authority to determine the structure, amount, and nature
            80279     of the incentive given to a motion picture company, subject to the limitations and considerations
            80280     set out in Subsections (3) and (4).
            80281         (b) A financial incentive shall be paid to a motion picture company from the fund only
            80282     after the administrator has determined with advice from the board that the motion picture
            80283     company has satisfied the conditions upon which the incentive is to be given.
            80284         (3) (a) In each fiscal year, the money in the fund shall be used for incentives to motion
            80285     picture companies for state-approved productions that are either television series,
            80286     made-for-television movies, or motion pictures, which may include both feature films and
            80287     independent films.
            80288         (b) An incentive awarded under Subsection (3)(a) for a motion picture production may
            80289     not exceed $500,000 per production.
            80290         (4) (a) The administrator shall enter into agreements with motion picture companies
            80291     that represent postperformance incentive grants that take into consideration:
            80292         (i) the fact that financing has been obtained and is in place for the production;
            80293         (ii) distribution is in place, except that the administrator may make allowances for an
            80294     independent filmmaker who plans to shop the production on a film festival circuit;
            80295         (iii) the economic impact of the production on the state; and
            80296         (iv) the production represents new incremental economic activity in the state as
            80297     opposed to existing economic activity.
            80298         (b) The administrator may also consider giving preference to a production that
            80299     stimulates economic activity in rural areas of the state or that has Utah content, such as
            80300     recognizing that the production was made in the state or uses Utah as Utah in the production.
            80301         Section 1891. Section 63M-1-1805 , which is renumbered from Section 63-38f-1805 is
            80302     renumbered and amended to read:
            80303          [63-38f-1805].     63M-1-1805. Annual report.
            80304         (1) The administrator shall prepare an annual report for the board on the economic
            80305     impact of this part.

            80306         (2) The board shall present the report to the Legislature's Workforce Services and
            80307     Community and Economic Development Interim Committee and the Economic Development
            80308     and Human Resources Appropriations Subcommittee, together with any proposed
            80309     recommendations for modifications in this part or the annual ongoing appropriation for the
            80310     fund.
            80311         Section 1892. Section 63M-1-1901 , which is renumbered from Section 63-38f-1901 is
            80312     renumbered and amended to read:
            80313     
Part 19. Economic Development on Military Installations

            80314          [63-38f-1901].     63M-1-1901. Military installation projects for economic
            80315      development -- Funding -- Criteria -- Dispersal -- Report.
            80316         (1) The Legislature recognizes that significant growth in the state's economy can be
            80317     achieved by state and local support of the continuing expansion and development of federal
            80318     military installations throughout the state.
            80319         (2) The office, through its director, may receive and distribute legislative appropriations
            80320     and public and private grants and donations for military installation projects that:
            80321         (a) have a strong probability of increasing the growth and development of a military
            80322     facility within the state, thereby providing significant economic benefits to the state;
            80323         (b) will provide a significant number of new jobs within the state that should remain
            80324     within the state for a period of several years; and
            80325         (c) involve a partnership between the military and private industry or local government
            80326     or the military and private industry and local government.
            80327         (3) (a) The director may distribute monies under this section to:
            80328         (i) a regional or statewide nonprofit economic development organization; or
            80329         (ii) a federal military partnership that has the mission of promoting the economic
            80330     growth of a military installation.
            80331         (b) The director shall make a distribution under this section upon:
            80332         (i) receipt of an application on a form prescribed by the office that lists:
            80333         (A) the particulars of the proposed use of the monies requested, such as needed

            80334     equipment purchases and anticipated training costs;
            80335         (B) the estimated number of new jobs that will be created by the proposed project;
            80336         (C) pending contracts related to the project that are to be finalized from funding
            80337     anticipated under this section; and
            80338         (D) a projected date on which the applicant shall provide the director with a report on
            80339     the implementation and performance of the project, including the creation of new jobs; and
            80340         (ii) a determination by the director that the project satisfies the requirements listed in
            80341     Subsection (2).
            80342         (c) (i) The office shall monitor the activities of a recipient of monies under this section
            80343     to ensure that there is compliance with the terms and conditions imposed on the recipient under
            80344     this part.
            80345         (ii) The office shall make an annual report to the Legislature's Workforce Services and
            80346     Community and Economic Development Interim Committee and the Executive Appropriations
            80347     Committee on the use and impact of the monies distributed under this section, with the first
            80348     report to occur not later than September 1, 2005.
            80349         (4) For the fiscal year ending June 30, 2005, the director may disperse an amount not to
            80350     exceed $5,000,000 for projects referred to under this section.
            80351         Section 1893. Section 63M-1-2001 , which is renumbered from Section 63-38f-2001 is
            80352     renumbered and amended to read:
            80353     
Part 20. Business Development for Disadvantaged Rural Communities Act

            80354          [63-38f-2001].     63M-1-2001. Title.
            80355         This part is known as the "Business Development for Disadvantaged Rural Communities
            80356     Act."
            80357         Section 1894. Section 63M-1-2002 , which is renumbered from Section 63-38f-2002 is
            80358     renumbered and amended to read:
            80359          [63-38f-2002].     63M-1-2002. Definitions.
            80360         As used in this part:
            80361         (1) "Board" means the Board of Business and Economic Development created by

            80362     Section [ 63-38f-301 ] 63M-1-301 .
            80363         (2) "Business incubator expense" means an expense relating to funding a program that
            80364     is:
            80365         (a) designed to provide business support services and resources to one or more business
            80366     entities within a project area during the business entities' early stages of development; and
            80367         (b) determined to be a business incubator by the board.
            80368         (3) "Business rehabilitation expense" means an expense relating to the renovation or
            80369     rehabilitation of an existing building within a project area as determined by the board.
            80370         (4) "Debt service" means the payment of debt service on a bond issued to pay a:
            80371         (a) business rehabilitation expense relating to a project; or
            80372         (b) public infrastructure expense relating to a project.
            80373         (5) "Eligible county" means a county of the third, fourth, fifth, or sixth class.
            80374         (6) "Eligible expense" means an expense:
            80375         (a) incurred by an eligible county;
            80376         (b) relating to a project; and
            80377         (c) that is:
            80378         (i) a business incubator expense;
            80379         (ii) debt service; or
            80380         (iii) a public infrastructure expense.
            80381         (7) "Project" means an economic development project:
            80382         (a) as determined by the board; and
            80383         (b) for which an eligible county applies to the board in accordance with this part for a
            80384     loan or grant to assist the eligible county in paying an eligible expense.
            80385         (8) "Project area" means the geographic area within which a project is implemented by
            80386     an eligible county.
            80387         (9) "Public infrastructure expense" means an expense relating to a publicly owned
            80388     improvement located within a project area if:
            80389         (a) the expense is:

            80390         (i) incurred for:
            80391         (A) construction;
            80392         (B) demolition;
            80393         (C) design;
            80394         (D) engineering;
            80395         (E) an environmental impact study;
            80396         (F) environmental remediation; or
            80397         (G) rehabilitation; or
            80398         (ii) similar to an expense described in Subsection (9)(a)(i) as determined by the board;
            80399     and
            80400         (b) the publicly owned improvement is:
            80401         (i) not a building as determined by the board; and
            80402         (ii) necessary to support a project as determined by the board.
            80403         (10) "Publicly owned improvement" means an improvement to real property if:
            80404         (a) the real property is owned by:
            80405         (i) the United States;
            80406         (ii) the state; or
            80407         (iii) a political subdivision:
            80408         (A) as defined in Section 17B-1-102 ; and
            80409         (B) of the state; and
            80410         (b) the improvement relates to:
            80411         (i) a sewage system including a system for collection, transport, storage, treatment,
            80412     dispersal, effluent use, or discharge;
            80413         (ii) a drainage or flood control system, including a system for collection, transport,
            80414     diversion, storage, detention, retention, dispersal, use, or discharge;
            80415         (iii) a water system including a system for production, collection, storage, treatment,
            80416     transport, delivery, connection, or dispersal;
            80417         (iv) a highway, street, or road system for vehicular use for travel, ingress, or egress;

            80418         (v) a rail transportation system;
            80419         (vi) a system for pedestrian use for travel, ingress, or egress;
            80420         (vii) a public utility system including a system for electricity, gas, or
            80421     telecommunications; or
            80422         (viii) a system or device that is similar to a system or device described in Subsections
            80423     (10)(b)(i) through (vii) as determined by the board.
            80424         (11) "Restricted account" means the Business Development for Disadvantaged Rural
            80425     Communities Restricted Account created by Section [ 63-38f-2003 ] 63M-1-2003 .
            80426         Section 1895. Section 63M-1-2003 , which is renumbered from Section 63-38f-2003 is
            80427     renumbered and amended to read:
            80428          [63-38f-2003].     63M-1-2003. Creation of Business Development for
            80429      Disadvantaged Rural Communities Restricted Account -- Interest -- Costs of
            80430      administering the restricted account -- Monies and interest nonlapsing -- Deposit of
            80431      certain monies and interest into General Fund.
            80432         (1) There is created within the General Fund the Business Development for
            80433     Disadvantaged Rural Communities Restricted Account.
            80434         (2) The restricted account shall be funded by:
            80435         (a) monies appropriated to the account by the Legislature;
            80436         (b) monies received by the office as:
            80437         (i) repayment of a loan that the board grants to an eligible county under this part; and
            80438         (ii) interest on a loan described in Subsection (2)(b)(i); and
            80439         (c) the interest described in Subsection (3).
            80440         (3) (a) The restricted account shall earn interest.
            80441         (b) The interest described in Subsection (3)(a) shall be deposited into the account.
            80442         (4) Upon appropriation by the Legislature, the monies and interest deposited into the
            80443     restricted account in accordance with this section may be expended:
            80444         (a) by the board to award grants or loans to eligible counties as provided in this part;
            80445     and

            80446         (b) to cover the costs of administering this part:
            80447         (i) in an amount not to exceed $5,000 in any fiscal year; and
            80448         (ii) including the costs of providing staff support to administer this part.
            80449         (5) (a) Except as provided in Subsection (5)(b), the monies and interest deposited into
            80450     the restricted account in accordance with this section are nonlapsing.
            80451         (b) Notwithstanding Subsection (5)(a), the Division of Finance shall deposit any monies
            80452     and interest in the restricted account on July 1, 2015 into the General Fund.
            80453         Section 1896. Section 63M-1-2004 , which is renumbered from Section 63-38f-2004 is
            80454     renumbered and amended to read:
            80455          [63-38f-2004].     63M-1-2004. Board authority to award a grant or loan to an
            80456      eligible county -- Interest on a loan -- Eligible county proposal process -- Process for
            80457      awarding a grant or loan.
            80458         (1) (a) Subject to the provisions of this section, beginning on July 1, 2005, through June
            80459     30, 2015, the board may make an award to an eligible county:
            80460         (i) of one or more of the following to assist in paying an eligible expense relating to a
            80461     project:
            80462         (A) a grant; or
            80463         (B) a loan; and
            80464         (ii) from amounts or interest deposited into the restricted account in accordance with
            80465     Section [ 63-38f-2003 ] 63M-1-2003 to the extent that there is a balance in the restricted account
            80466     sufficient to cover the amount of the award.
            80467         (b) The total amount of grants and loans that the board may award in accordance with
            80468     this section relating to one project is $75,000.
            80469         (c) If the board awards a loan to an eligible county in accordance with this section, the
            80470     loan shall be subject to interest as provided by the procedures and methods referred to in
            80471     Subsection (6).
            80472         (2) (a) Before the board may award an eligible county a grant or loan in accordance
            80473     with this section, the eligible county shall submit a written proposal to the board in accordance

            80474     with Subsection (2)(b).
            80475         (b) The proposal described in Subsection (2)(a) shall:
            80476         (i) describe the project area;
            80477         (ii) describe the characteristics of the project including a description of how the project
            80478     will be implemented;
            80479         (iii) provide an economic development plan for the project including a description of
            80480     any eligible expenses that will be incurred as part of implementing the project;
            80481         (iv) describe the characteristics of the community within which the project area is
            80482     located;
            80483         (v) establish that the community within which the project area is located is a
            80484     disadvantaged community on the basis of one or more of the following factors:
            80485         (A) median income per capita within the community;
            80486         (B) median property tax revenues generated within the community;
            80487         (C) median sales and use tax revenues generated within the community; or
            80488         (D) unemployment rates within the community;
            80489         (vi) demonstrate that there is a need for the project in the community within which the
            80490     project area is located;
            80491         (vii) describe the short-term and long-term benefits of the project to the community
            80492     within which the project area is located;
            80493         (viii) demonstrate that there is a need for assistance in paying eligible expenses relating
            80494     to the project;
            80495         (ix) indicate the amount of any revenues that will be pledged to match any funds the
            80496     board may award as a loan or grant under this section; and
            80497         (x) indicate whether there is support for the implementation of the project from:
            80498         (A) the community within which the project area is located; and
            80499         (B) any cities or towns within which the project area is located.
            80500         (3) At the request of the board, representatives from an eligible county shall appear
            80501     before the board to:

            80502         (a) present a proposal submitted in accordance with Subsection (2)(b); and
            80503         (b) respond to any questions or issues raised by the board relating to eligibility to
            80504     receive a grant or loan under this section.
            80505         (4) The board shall:
            80506         (a) consider a proposal submitted to the board in accordance with Subsection (2);
            80507         (b) make written findings as to whether the proposal described in Subsection (4)(a)
            80508     meets the requirements of Subsection (2)(b);
            80509         (c) make written findings as to whether to award the eligible county that submitted the
            80510     proposal described in Subsection (4)(a) one or more grants or loans:
            80511         (i) on the basis of the factors established in Subsection (5);
            80512         (ii) in consultation with the director; and
            80513         (iii) in accordance with the procedures established for prioritizing which projects may
            80514     be awarded a grant or loan by the board under this section;
            80515         (d) if the board determines to award an eligible county a grant or loan in accordance
            80516     with this section, make written findings in consultation with the director specifying the:
            80517         (i) amount of the grant or loan;
            80518         (ii) time period for distributing the grant or loan;
            80519         (iii) terms and conditions that the eligible county shall meet to receive the grant or loan;
            80520         (iv) structure of the grant or loan; and
            80521         (v) eligible expenses for which the eligible county may expend the grant or loan;
            80522         (e) if the board determines to award an eligible county a loan in accordance with this
            80523     section, make written findings stating:
            80524         (i) the method of calculating interest applicable to the loan; and
            80525         (ii) procedures for:
            80526         (A) applying interest to the loan; and
            80527         (B) paying interest on the loan; and
            80528         (f) provide the written findings required by Subsections (4)(b) through (e) to the eligible
            80529     county.

            80530         (5) For purposes of Subsection (4)(c), the board shall consider the following factors in
            80531     determining whether to award an eligible county one or more grants or loans authorized by this
            80532     part:
            80533         (a) whether the project is likely to result in economic development in the community
            80534     within which the project area is located;
            80535         (b) whether the community within which the project area is located is a disadvantaged
            80536     community on the basis of one or more of the following factors:
            80537         (i) median income per capita within the community;
            80538         (ii) median property tax revenues generated within the community;
            80539         (iii) median sales and use tax revenues generated within the community; or
            80540         (iv) unemployment rates within the community;
            80541         (c) whether there is a need for the project in the community within which the project
            80542     area is located;
            80543         (d) whether the project is likely to produce short-term and long-term benefits to the
            80544     community within which the project area is located;
            80545         (e) whether the project would be successfully implemented without the board awarding
            80546     a grant or a loan to the eligible county;
            80547         (f) whether any revenues will be pledged to match any funds the board may award as a
            80548     grant or loan under this section;
            80549         (g) whether there is support for the implementation of the project from:
            80550         (i) the community within which the project area is located; and
            80551         (ii) any cities or towns within which the project area is located; and
            80552         (h) any other factor as determined by the board.
            80553         (6) The office shall establish procedures:
            80554         (a) for prioritizing which projects may be awarded a grant or loan by the board under
            80555     this section; and
            80556         (b) for loans awarded in accordance with this section:
            80557         (i) the methods of calculating interest applicable to the loans; and

            80558         (ii) procedures for:
            80559         (A) applying interest to the loans; and
            80560         (B) paying interest on the loans.
            80561         Section 1897. Section 63M-1-2005 , which is renumbered from Section 63-38f-2005 is
            80562     renumbered and amended to read:
            80563          [63-38f-2005].     63M-1-2005. Agreement between the executive director and
            80564      an eligible county -- Failure to meet or violation of a term or condition of an agreement.
            80565         (1) Before an eligible county that has been awarded a grant or loan in accordance with
            80566     Section [ 63-38f-2004 ] 63M-1-2004 may receive the grant or loan, the eligible county shall enter
            80567     into a written agreement with the director.
            80568         (2) The written agreement described in Subsection (1):
            80569         (a) shall:
            80570         (i) specify the amount of the grant or loan;
            80571         (ii) specify the time period for distributing the grant or loan;
            80572         (iii) specify the terms and conditions that the eligible county shall meet to receive the
            80573     grant or loan;
            80574         (iv) specify the structure of the grant or loan;
            80575         (v) specify the eligible expenses for which the eligible county may expend the grant or
            80576     loan;
            80577         (vi) if the eligible county has been awarded a loan:
            80578         (A) specify the repayment schedule for the loan;
            80579         (B) specify the method of calculating interest applicable to the loan; and
            80580         (C) specify procedures for:
            80581         (I) applying interest to the loan; and
            80582         (II) paying interest on the loan; and
            80583         (vii) subject to Subsection (3), contain provisions governing the failure to meet or the
            80584     violation of a term or condition of the agreement; and
            80585         (b) may contain any other provision as determined by the director.

            80586         (3) (a) Except as provided in Subsection (3)(b), and subject to Subsection (3)(c), if an
            80587     eligible county fails to meet or violates any provision of the agreement described in Subsection
            80588     (2), the board shall impose one or more of the following penalties:
            80589         (i) require the eligible county to repay all or a portion of the amount of any grant or
            80590     loan the eligible county received in an amount determined by the board;
            80591         (ii) provide that an eligible county may not receive any amounts of a grant or loan that
            80592     the eligible county has been awarded in accordance with Section [ 63-38f-2004 ] 63M-1-2004
            80593     but has not received; or
            80594         (iii) provide that an eligible county may not be awarded a grant or loan under this part
            80595     for a time period determined by the board.
            80596         (b) Notwithstanding Subsection (3)(a), the board may waive, reduce, or compromise a
            80597     penalty described in Subsection (3)(a) if an eligible county demonstrates that reasonable cause
            80598     exists for the eligible county failing to meet or violating a provision of the agreement described
            80599     in Subsection (2).
            80600         (c) If the board imposes a penalty in accordance with this Subsection (3) on an eligible
            80601     county, the board shall provide written notice of the penalty to the eligible county within ten
            80602     calendar days after the day on which the board determines to impose the penalty.
            80603         Section 1898. Section 63M-1-2006 , which is renumbered from Section 63-38f-2006 is
            80604     renumbered and amended to read:
            80605          [63-38f-2006].     63M-1-2006. Report to Workforce Services and Community
            80606      and Economic Development Interim Committee.
            80607         The board shall annually report to the Workforce Services and Community and
            80608     Economic Development Interim Committee on or before the November interim meeting:
            80609         (1) the total amount of grants and loans the board awarded to eligible counties under
            80610     this part during the fiscal year that ended on the June 30 immediately preceding the November
            80611     interim meeting;
            80612         (2) a description of the projects with respect to which the board awarded a grant or
            80613     loan under this part;

            80614         (3) the total amount of outstanding debt service that is being repaid by a grant or loan
            80615     awarded under this part;
            80616         (4) on whether the grants and loans awarded under this part have resulted in economic
            80617     development within project areas;
            80618         (5) on whether the board recommends:
            80619         (a) that the grants and loans authorized by this part should be continued; or
            80620         (b) any modifications to this part; and
            80621         (6) on any other issue relating to this part as determined by the Workforce Services and
            80622     Community and Economic Development Interim Committee.
            80623         Section 1899. Section 63M-1-2101 , which is renumbered from Section 63-38f-2101 is
            80624     renumbered and amended to read:
            80625     
Part 21. Economic Development - Government Procurement Contracts

            80626          [63-38f-2101].     63M-1-2101. Projects to assist companies secure new
            80627      business with federal, state, and local governments.
            80628         (1) The Legislature recognizes that:
            80629         (a) many Utah companies provide products and services which are routinely procured
            80630     by a myriad of governmental entities at all levels of government, but that attempting to
            80631     understand and comply with the numerous certification, registration, proposal, and contract
            80632     requirements associated with government procurement often raises significant barriers for those
            80633     companies with no government contracting experience;
            80634         (b) the costs associated with obtaining a government contract for products or services
            80635     often prevent most small businesses from working in the governmental procurement market;
            80636         (c) currently a majority of federal procurement opportunities are contracted to
            80637     businesses located outside of the state;
            80638         (d) the Governor's Office of Economic Development currently administers programs
            80639     and initiatives that help create and grow companies in Utah and recruit companies to Utah
            80640     through the use of state employees, public-private partnerships, and contractual services; and
            80641         (e) there exists a significant opportunity for Utah companies to secure new business

            80642     with federal, state, and local governments.
            80643         (2) The office, through its director:
            80644         (a) shall manage and direct the administration of state and federal programs and
            80645     initiatives whose purpose is to procure federal, state, and local governmental contracts;
            80646         (b) may require program accountability measures; and
            80647         (c) may receive and distribute legislative appropriations and public and private grants
            80648     for projects and programs that:
            80649         (i) are focused on growing Utah companies and positively impacting statewide revenues
            80650     by helping these companies secure new business with federal, state, and local governments;
            80651         (ii) provide guidance to Utah companies interested in obtaining new business with
            80652     federal, state, and local governmental entities;
            80653         (iii) would facilitate marketing, business development, and expansion opportunities for
            80654     Utah companies in cooperation with the Governor's Office of Economic Development's
            80655     Procurement Technical Assistance Center Program and with public, non-profit, or private sector
            80656     partners such as local chambers of commerce, trade associations, or private contractors as
            80657     determined by the office's director to successfully match Utah businesses with government
            80658     procurement opportunities; and
            80659         (iv) may include the following components:
            80660         (A) recruitment, individualized consultation, and an introduction to government
            80661     contracting;
            80662         (B) specialized contractor training for companies located in Utah;
            80663         (C) a Utah contractor matching program for government requirements;
            80664         (D) experienced proposal and bid support; and
            80665         (E) specialized support services.
            80666         (3) (a) The office, through its director, shall make any distribution referred to in
            80667     Subsection (2) on a semiannual basis.
            80668         (b) A recipient of monies distributed under this section shall provide the office with a
            80669     set of standard monthly reports, the content of which shall be determined by the office to

            80670     include at least the following information:
            80671         (i) consultive meetings with Utah companies;
            80672         (ii) seminars or training meetings held;
            80673         (iii) government contracts awarded to Utah companies;
            80674         (iv) increased revenues generated by Utah companies from new government contracts;
            80675         (v) jobs created;
            80676         (vi) salary ranges of new jobs; and
            80677         (vii) the value of contracts generated.
            80678         Section 1900. Section 63M-1-2201 , which is renumbered from Section 63-38f-2201 is
            80679     renumbered and amended to read:
            80680     
Part 22. Transient Room Tax Fund Act

            80681          [63-38f-2201].     63M-1-2201. Title.
            80682         This part is known as the "Transient Room Tax Fund Act."
            80683         Section 1901. Section 63M-1-2202 , which is renumbered from Section 63-38f-2202 is
            80684     renumbered and amended to read:
            80685          [63-38f-2202].     63M-1-2202. Definitions.
            80686         As used in this part, "fund" means the Transient Room Tax Fund created by Section
            80687     [ 63-38f-2203 ] 63M-1-2203 .
            80688         Section 1902. Section 63M-1-2203 , which is renumbered from Section 63-38f-2203 is
            80689     renumbered and amended to read:
            80690          [63-38f-2203].     63M-1-2203. Transient Room Tax Fund -- Source of
            80691      revenues -- Interest -- Expenditure or pledge of revenues.
            80692         (1) There is created a restricted special revenue fund known as the Transient Room Tax
            80693     Fund.
            80694         (2) (a) The fund shall be funded by the portion of the sales and use tax described in
            80695     Subsection 59-12-301 (2).
            80696         (b) (i) The fund shall earn interest.
            80697         (ii) Any interest earned on fund monies shall be deposited into the fund.

            80698         (3) (a) Subject to Subsection (3)(b), the director shall expend or pledge the monies
            80699     deposited into the fund:
            80700         (i) to mitigate the impacts of traffic and parking relating to a convention facility within a
            80701     county of the first class;
            80702         (ii) for a purpose listed in Section 17-31-2 , except that any requirements in Section
            80703      17-31-2 for the expenditure of monies do not apply; or
            80704         (iii) for a combination of Subsections (3)(a)(i) and (ii).
            80705         (b) The director may not expend more than $20,000,000 in total to mitigate the impacts
            80706     of traffic and parking relating to a convention facility within a county of the first class.
            80707         Section 1903. Section 63M-1-2301 , which is renumbered from Section 63-38f-2301 is
            80708     renumbered and amended to read:
            80709     
Part 23. Rural Broadband Service Fund Act

            80710          [63-38f-2301].     63M-1-2301. Title.
            80711         This part is known as the "Rural Broadband Service Fund Act."
            80712         Section 1904. Section 63M-1-2302 , which is renumbered from Section 63-38f-2302 is
            80713     renumbered and amended to read:
            80714          [63-38f-2302].     63M-1-2302. Definitions.
            80715         As used in this part:
            80716         (1) "Broadband service" means any wire line technology identified by the director as
            80717     having the capacity to transmit data from and to a subscriber's computer to the Internet or
            80718     Internet-related services at a minimum rate of data transmission of 256 kilobits per second.
            80719         (2) "Fund" means the restricted account known as the Rural Broadband Service Fund
            80720     created in Section [ 63-38f-2303 ] 63M-1-2303 .
            80721         (3) "Provider" means a person who will provide retail broadband service to subscribers
            80722     in a rural area.
            80723         (4) "Rural area" means any territory in the state:
            80724         (a) within a city, town, or unincorporated area with a population of 10,000 or less
            80725     based on the most recently published data of the United States Census Bureau; and

            80726         (b) in which broadband service is not available.
            80727         Section 1905. Section 63M-1-2303 , which is renumbered from Section 63-38f-2303 is
            80728     renumbered and amended to read:
            80729          [63-38f-2303].     63M-1-2303. Rural Broadband Service Fund created --
            80730      Interest -- Costs -- Deposits to the General Fund.
            80731         (1) There is created within the General Fund a restricted account known as the Rural
            80732     Broadband Service Fund.
            80733         (2) The fund shall be funded by:
            80734         (a) monies appropriated to the fund by the Legislature; and
            80735         (b) the interest described in Subsection (3).
            80736         (3) (a) The fund shall earn interest.
            80737         (b) The interest described in Subsection (3)(a) shall be deposited into the fund.
            80738         (4) Upon appropriation by the Legislature, the monies and interest deposited into the
            80739     fund in accordance with this section may be expended:
            80740         (a) by the director with the advice of the board to award grants to providers as
            80741     provided in this part; and
            80742         (b) to cover the costs of administering this part in an amount during any fiscal year not
            80743     to exceed 2% of the fund balance at the start of any fiscal year.
            80744         (5) (a) Except as provided in Subsection (5)(b), the monies and interest deposited into
            80745     the fund in accordance with this section shall be nonlapsing.
            80746         (b) Notwithstanding Subsection (5)(a), the Division of Finance shall deposit any monies
            80747     and interest in the fund into the General Fund on July 1, 2010.
            80748         Section 1906. Section 63M-1-2304 , which is renumbered from Section 63-38f-2304 is
            80749     renumbered and amended to read:
            80750          [63-38f-2304].     63M-1-2304. Grants for rural broadband deployment.
            80751         (1) (a) A provider that wishes to deploy broadband service in a rural area may file an
            80752     application for a grant with the office.
            80753         (b) An application shall:

            80754         (i) be accompanied by an affidavit executed by the provider under oath; and
            80755         (ii) provide information prescribed in rules adopted by the director.
            80756         (2) The director shall:
            80757         (a) provide reasonable public notice of an application;
            80758         (b) allow public comment on the application for a reasonable period of time;
            80759         (c) allow any other provider a reasonable opportunity to file an application to provide
            80760     broadband service in all or part of the rural area specified in the application filed under
            80761     Subsection (1); and
            80762         (d) make rules concerning the method of providing public notice, the time period for
            80763     public comment, and the manner of filing a competing application.
            80764         (3) (a) The office shall review all applications submitted in accordance with Subsections
            80765     (1) and (2) to provide broadband service in a rural area.
            80766         (b) In reviewing any application, the office may obtain information from the provider or
            80767     others and conduct its own analysis of any issue relevant to the application, including economic
            80768     development.
            80769         (4) After review of all applications for any rural area in accordance with Subsection (3),
            80770     the director may approve an application and enter into a written agreement with a provider to
            80771     provide a grant from the fund if the director, with the advice of the board, is satisfied that the
            80772     provider's application establishes that:
            80773         (a) the provider has the financial, managerial, and technical ability to deploy broadband
            80774     service in the rural area in accordance with the application;
            80775         (b) the territory in which the provider proposes to deploy broadband service is a rural
            80776     area;
            80777         (c) the cost of deployment of broadband service in the rural area is reasonable;
            80778         (d) the initial terms and conditions on which broadband service will be made available
            80779     to potential subscribers in the rural area are reasonable;
            80780         (e) the provider has a viable business plan to continue providing broadband service to
            80781     all or some subscribers within the rural area;

            80782         (f) if a competitive application was filed for the rural area, the provider's application is
            80783     the most advantageous application to potential subscribers or the state; and
            80784         (g) the application otherwise meets the requirements of this part and any rules adopted
            80785     by the director concerning broadband service deployment.
            80786         (5) (a) The director may, with the advice of the board, require the provider to make
            80787     adjustments to the application or agree to reasonable conditions consistent with the purposes of
            80788     this part before approving the application.
            80789         (b) Any adjustments and conditions required by the director shall be included in the
            80790     written agreement entered into with the provider.
            80791         (6) The amount of any grant provided from the fund shall be no greater than the lesser
            80792     of 1/2 of:
            80793         (a) the actual cost of deployment of broadband service in the rural area as established
            80794     by verified accounts filed with the office after completion of deployment; or
            80795         (b) the projected amount established during the application process by the director and
            80796     board for the deployment of broadband service in the rural area as provided in the verified
            80797     application.
            80798         (7) Upon completion of deployment of broadband service by a provider in accordance
            80799     with the terms of an agreement as provided in Subsection (4), the director shall pay the amount
            80800     of the grant agreed upon consistent with Subsection (6) to the provider from the fund.
            80801         (8) In making any determination required under this section, the director, the office, and
            80802     the board:
            80803         (a) may not discriminate against any accepted technology for provision of broadband
            80804     service other than for reasons of cost or the terms and conditions upon which the provider
            80805     proposes to provide broadband service to potential subscribers; and
            80806         (b) may consult with the Division of Public Utilities created in Section 13-1-2 .
            80807         Section 1907. Section 63M-1-2305 , which is renumbered from Section 63-38f-2305 is
            80808     renumbered and amended to read:
            80809          [63-38f-2305].     63M-1-2305. Annual report.

            80810         (1) The office shall make a report to the Legislature's Workforce Services and
            80811     Community and Economic Development Interim Committee by October 1 of each year until the
            80812     fund is terminated under Subsection [ 63-38f-2303 ] 63M-1-2303 (5)(b).
            80813         (2) The report required by Subsection (1) shall provide information concerning
            80814     deployment of broadband service using grants from the fund, pending applications, the balance
            80815     remaining in the fund, and suggested appropriations to the fund to achieve the purposes of this
            80816     part.
            80817         Section 1908. Section 63M-1-2306 , which is renumbered from Section 63-38f-2306 is
            80818     renumbered and amended to read:
            80819          [63-38f-2306].     63M-1-2306. Rules.
            80820         The director, with the advice of the board, may, makes rules in accordance with [Title
            80821     63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer this
            80822     part.
            80823         Section 1909. Section 63M-2-101 , which is renumbered from Section 63-38g-101 is
            80824     renumbered and amended to read:
            80825     
CHAPTER 2. UTAH SCIENCE TECHNOLOGY AND

            80826     
RESEARCH GOVERNING AUTHORITY ACT

            80827     
Part 1. General Provisions

            80828          [63-38g-101].     63M-2-101. Title.
            80829         This chapter is known as the "Utah Science Technology and Research Governing
            80830     Authority Act."
            80831         Section 1910. Section 63M-2-102 , which is renumbered from Section 63-38g-102 is
            80832     renumbered and amended to read:
            80833          [63-38g-102].     63M-2-102. Definitions.
            80834         As used in this chapter:
            80835         (1) "Commercialization revenues " means dividends, realized capital gains, license fees,
            80836     royalty fees, and other revenues received by a university as a result of commercial applications
            80837     developed from the project, less:

            80838         (a) the portion of those revenues allocated to the inventor; and
            80839         (b) expenditures incurred by the university to legally protect the intellectual property.
            80840         (2) "Executive director" means the person appointed by the governing authority under
            80841     Section [ 63-38g-301 ] 63M-2-301 .
            80842         (3) "Governing authority" means the Utah Science Technology and Research
            80843     Governing Authority created in Section [ 63-38g-301 ] 63M-2-301 .
            80844         (4) "Project" means the Utah Science Technology and Research Project.
            80845         (5) "Research buildings" means any of the buildings listed in Section [ 63-38g-201 ]
            80846      63M-2-201 .
            80847         (6) "Research universities" means the University of Utah and Utah State University.
            80848         (7) "Technology outreach program" means the program required by Section
            80849     [ 63-38g-202 ] 63M-2-202 .
            80850         (8) "Utah Science Technology and Research Project" means the buildings and activities
            80851     described in Part 2, Utah Science Technology and Research Project.
            80852         Section 1911. Section 63M-2-201 , which is renumbered from Section 63-38g-201 is
            80853     renumbered and amended to read:
            80854     
Part 2. Utah Science Technology and Research Project

            80855          [63-38g-201].     63M-2-201. Science technology research buildings.
            80856         (1) As funding becomes available from the Legislature or other sources, the Utah
            80857     Science Technology and Research Governing Authority created in Part 3 shall:
            80858         (a) construct at Utah State University:
            80859         (i) a Bio Innovations Research Institute;
            80860         (ii) an Infectious Disease Research Center; and
            80861         (iii) an Informatics/Computing Research Center; and
            80862         (b) construct at the University of Utah:
            80863         (i) a Neuroscience and Biomedical Technology Research Building; and
            80864         (ii) an Information Technology and Bioinformatics Research Center.
            80865         (2) The governing authority shall, subject to any restrictions or directions established by

            80866     the Legislature, plan, design, and construct the buildings.
            80867         (3) (a) Utah State University shall provide the land for the construction of science
            80868     technology and research buildings on its campus.
            80869         (b) The University of Utah shall provide the land for the construction of science
            80870     technology and research buildings on its campus.
            80871         (4) The governing authority shall hold title to the research buildings.
            80872         (5) The governing authority may:
            80873         (a) lease the buildings to Utah State University and the University of Utah;
            80874         (b) require research teams to generate a certain amount of revenue from grants or other
            80875     sources to contribute to the project; and
            80876         (c) unless prohibited by law, deposit lease payments and other monies received from the
            80877     universities and research teams with the state treasurer for deposit into the sinking funds created
            80878     under Section 63B-1a-301 for debt service on the bonds issued to fund planning, design, and
            80879     construction of the research buildings.
            80880         Section 1912. Section 63M-2-202 , which is renumbered from Section 63-38g-202 is
            80881     renumbered and amended to read:
            80882          [63-38g-202].     63M-2-202. Technology outreach program.
            80883         (1) As funding becomes available from the Legislature or other sources, the Utah
            80884     Science Technology and Research Governing Authority created in Part 3 shall establish a
            80885     technology outreach program at up to five locations distributed strategically throughout Utah.
            80886         (2) (a) The governing authority shall ensure that the technology outreach program acts
            80887     as a resource to:
            80888         (i) broker ideas, new technologies, and services to entrepreneurs and businesses
            80889     throughout a defined service area;
            80890         (ii) engage local entrepreneurs and professors at applied technology centers, colleges,
            80891     and universities by connecting them to Utah's research universities;
            80892         (iii) screen business ideas and new technologies to ensure that the ones with the highest
            80893     growth potential receive the most targeted services and attention;

            80894         (iv) connect market ideas and technologies in new or existing businesses or industries or
            80895     in regional colleges and universities with the expertise of Utah's research universities;
            80896         (v) assist businesses, applied technology centers, colleges, and universities in developing
            80897     commercial applications for their research; and
            80898         (vi) disseminate and share discoveries and technologies emanating from Utah's research
            80899     universities to local entrepreneurs, businesses, applied technology centers, colleges, and
            80900     universities.
            80901         (b) In designing and operating the technology outreach program, the governing
            80902     authority shall work cooperatively with the Technology Commercialization Offices at Utah
            80903     State University and the University of Utah.
            80904         Section 1913. Section 63M-2-203 , which is renumbered from Section 63-38g-203 is
            80905     renumbered and amended to read:
            80906          [63-38g-203].     63M-2-203. Research teams.
            80907         As funding becomes available from the Legislature or other sources, and subject to any
            80908     restrictions or directions established by the Legislature, the governing authority shall allocate
            80909     monies to Utah State University and the University of Utah to provide funding for research
            80910     teams to conduct science and technology research.
            80911         Section 1914. Section 63M-2-204 , which is renumbered from Section 63-38g-204 is
            80912     renumbered and amended to read:
            80913          [63-38g-204].     63M-2-204. Financial participation agreement.
            80914         (1) In consideration of the monies and services provided or agreed to be provided, the
            80915     state of Utah, Utah State University, and the University of Utah covenant and agree that they
            80916     will allocate commercialization revenues as follows:
            80917         (a) for the first $15,000,000 received:
            80918         (i) $10,000,000 to Utah State University and the University of Utah, with the monies
            80919     distributed proportionately based upon which university conducted the research that generated
            80920     the commercialization revenues; and
            80921         (ii) $5,000,000 to the Governor's Office of Economic Development for the Centers of

            80922     Excellence program created by Chapter 38f, Part 7, Centers of Excellence Act; and
            80923         (b) for all subsequent monies received:
            80924         (i) 50% to Utah State University and the University of Utah, with the monies
            80925     distributed proportionately based upon which university conducted the research that generated
            80926     the commercialization revenues; and
            80927         (ii) 50% to the governing authority or other entity designated by the state to be used
            80928     for:
            80929         (A) the Centers of Excellence program created by Chapter 38f, Part 7, Centers of
            80930     Excellence Act;
            80931         (B) replacement of equipment in the research buildings;
            80932         (C) recruiting and paying additional research teams; and
            80933         (D) construction of additional research buildings.
            80934         (2) The Governor's Office of Economic Development shall:
            80935         (a) distribute that portion of the $5,000,000 allocated to the Centers of Excellence
            80936     program by Subsection (1)(a)(ii) to Utah State University and the University of Utah based
            80937     upon which institution performed the research that generated the commercialization revenues;
            80938     and
            80939         (b) credit those amounts to the universities as matching funds under Subsection
            80940     [ 63-38f-701 ] 63M-1-702 (2).
            80941         Section 1915. Section 63M-2-301 , which is renumbered from Section 63-38g-301 is
            80942     renumbered and amended to read:
            80943     
Part 3. Utah Science Technology and Research Governing Authority

            80944          [63-38g-301].     63M-2-301. The Utah Science Technology and Research
            80945      Governing Authority -- Creation -- Membership -- Meetings -- Staff.
            80946         (1) There is created the Utah Science Technology and Research Governing Authority
            80947     consisting of the state treasurer and the following eight members appointed as follows with the
            80948     consent of the Senate:
            80949         (a) three appointed by the governor;

            80950         (b) two appointed by the president of the Senate;
            80951         (c) two appointed by the speaker of the House of Representatives; and
            80952         (d) one appointed by the commissioner of higher education.
            80953         (2) (a) (i) The eight appointed members shall serve four-year staggered terms.
            80954         (ii) The appointed members may not serve more than two full consecutive terms.
            80955         (b) Notwithstanding Subsection (2)(a)(i), the terms of the first members of the
            80956     governing authority shall be staggered by lot so that half of the initial members serve two-year
            80957     terms and half serve four-year terms.
            80958         (3) Vacancies in the appointed positions on the governing authority shall be filled by the
            80959     appointing authority with consent of the Senate for the unexpired term.
            80960         (4) (a) The governor shall select the chair of the governing authority to serve a one-year
            80961     term.
            80962         (b) The president of the Senate and the speaker of the House of Representatives shall
            80963     jointly select the vice chair of the governing authority to serve a one-year term.
            80964         (5) The governing authority shall meet at least monthly and may meet more frequently
            80965     at the request of a majority of the members of the governing authority.
            80966         (6) Five members of the governing authority are a quorum.
            80967         (7) (a) Members who are not government employees shall receive no compensation or
            80968     benefits for their services, but may receive per diem and expenses incurred in the performance
            80969     of the member's official duties at the rates established by the Division of Finance under Sections
            80970      63A-3-106 and 63A-3-107 .
            80971         (b) Members may decline to receive per diem and expenses for their service.
            80972         (8) (a) (i) The governing authority shall hire a full-time executive director to provide
            80973     staff support for the governing authority.
            80974         (ii) The executive director is an at-will employee who may be terminated without cause
            80975     by the governor or by majority vote of the governing authority.
            80976         (b) The Governor's Office of Economic Development shall provide office space and
            80977     administrative support for the executive director.

            80978         Section 1916. Section 63M-2-302 , which is renumbered from Section 63-38g-302 is
            80979     renumbered and amended to read:
            80980          [63-38g-302].     63M-2-302. Governing authority powers.
            80981         (1) The governing authority shall:
            80982         (a) ensure that funds appropriated and received for research and development at the
            80983     research universities and for the technology outreach program are used appropriately,
            80984     effectively, and efficiently in accordance with the intent of the Legislature;
            80985         (b) in cooperation with the universities' administrations, expand key research at the two
            80986     research universities;
            80987         (c) enhance technology transfer and commercialization of research and technologies
            80988     developed at the research universities to create high-quality jobs and new industries in the
            80989     private sector in Utah;
            80990         (d) review state and local economic development plans and appropriations to ensure
            80991     that the project and appropriations do not duplicate existing or planned programs;
            80992         (e) establish economic development objectives for the project;
            80993         (f) by following the procedures and requirements of [Title 63, Chapter 46a] Title 63G,
            80994     Chapter 3, Utah Administrative Rulemaking Act, make rules for allocating monies appropriated
            80995     to it for research teams and for the commercialization of new technology between Utah State
            80996     University and the University of Utah;
            80997         (g) verify that the project is being enhanced by research grants and that it is meeting the
            80998     governing authority's economic development objectives;
            80999         (h) monitor all research plans that are part of the project at the research universities to
            81000     determine that appropriations are being spent in accordance with legislative intent and to
            81001     maximize the benefit and return to the state;
            81002         (i) develop methods and incentives to encourage investment in and contributions to the
            81003     project from the private sector; and
            81004         (j) annually report and make recommendations to:
            81005         (i) the governor;

            81006         (ii) the Executive Appropriations Committee; and
            81007         (iii) the Economic Development Appropriations Subcommittee.
            81008         (2) The governing authority may:
            81009         (a) in addition to monies received by it from the Legislature, receive contributions from
            81010     any source in the form of money, property, labor, or other things of value for the project;
            81011         (b) subject to any restrictions imposed by the donation, appropriations, or bond
            81012     authorizations, allocate monies received by it among the research universities, technology
            81013     outreach program, and technology transfer offices to support commercialization and technology
            81014     transfer to the private sector; or
            81015         (c) enter into agreements necessary to obtain private equity investment in the project.
            81016         Section 1917. Section 63M-2-303 , which is renumbered from Section 63-38g-303 is
            81017     renumbered and amended to read:
            81018          [63-38g-303].     63M-2-303. Utah Science Technology and Research
            81019      Governing Authority Advisory Council -- Chair -- Meetings.
            81020         (1) There is created the Utah Science Technology and Research Governing Authority
            81021     Advisory Council consisting of 12 members appointed as follows:
            81022         (a) one member appointed by the director of the Governor's Office of Economic
            81023     Development;
            81024         (b) one member appointed by the Utah Information Technology Association;
            81025         (c) one member appointed by the Utah Nanotechnology Initiative;
            81026         (d) one member appointed by the Economic Development Corporation of Utah;
            81027         (e) one member appointed by the Utah Life Science Association;
            81028         (f) one member appointed by the Salt Lake Area Chamber of Commerce;
            81029         (g) one member appointed by the Provo-Orem Chamber of Commerce;
            81030         (h) one member appointed by the Davis Area Chamber of Commerce;
            81031         (i) one member appointed by the Ogden-Weber Chamber of Commerce;
            81032         (j) one member appointed by the Cache Chamber of Commerce;
            81033         (k) one member appointed by the St. George Area Chamber of Commerce; and

            81034         (l) one member appointed by the Vernal Chamber of Commerce.
            81035         (2) The governing authority shall consult with the advisory council about the project.
            81036         (3) The advisory council shall select a chair from among its members to serve a
            81037     two-year term.
            81038         (4) The advisory council shall convene whenever the governing authority requests a
            81039     meeting for consultation.
            81040         (5) (a) (i) Members who are not government employees shall receive no compensation
            81041     or benefits for their services, but may receive per diem and expenses incurred in the
            81042     performance of the member's official duties at the rates established by the Division of Finance
            81043     under Sections 63A-3-106 and 63A-3-107 .
            81044         (ii) Members may decline to receive per diem and expenses for their service.
            81045         (b) (i) State government officer and employee members who do not receive salary, per
            81046     diem, or expenses from their agency for their service may receive per diem and expenses
            81047     incurred in the performance of their official duties from the committee at the rates established by
            81048     the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            81049         (ii) State government officer and employee members may decline to receive per diem
            81050     and expenses for their service.
            81051         Section 1918. Section 63M-3-101 is enacted to read:
            81052     
CHAPTER 3. TAR SANDS PILOT PLANT ACT

            81053     
Part 1. General Provisions

            81054          63M-3-101. Title.
            81055         This chapter is known as the "Tar Sands Pilot Plant Act."
            81056         Section 1919. Section 63M-3-102 , which is renumbered from Section 63-45a-1 is
            81057     renumbered and amended to read:
            81058          [63-45a-1].     63M-3-102. Legislative findings -- Purpose of act.
            81059         (1) The Legislature finds that:
            81060         (a) Substantial deposits of tar sands exist within lands located in various places within
            81061     the state of Utah, but this is primarily a Utah phenomenon, there being no similar significant

            81062     deposits within lands located elsewhere in the United States.
            81063         (b) While large known deposits of tar sands exist outside the United States, primarily in
            81064     South America and Canada, only those in Canada produce commercial quantities of
            81065     hydrocarbons, this having come about only after years of research and experimentation and
            81066     substantial private and public investment.
            81067         (c) Significant laboratory research has been conducted, including research by the
            81068     University of Utah, which demonstrates a potential for commercial production of the tar sands
            81069     deposits located in the state of Utah, which potential remains to be established by the scale-up
            81070     of laboratory research to a pilot plant development stage.
            81071         (d) Successful demonstration of a hydrocarbon recovery process from Utah tar sands as
            81072     commercially viable at the pilot plant level of production could form the basis for the
            81073     development by private industry of commercial production of a substantial volume of
            81074     hydrocarbon energy fuel, thereby commensurately reducing the amount of petroleum products
            81075     which are required to be imported at exorbitant cost from foreign sources to meet the needs of
            81076     the citizens of this state and the United States.
            81077         (2) The purpose of this act is to stimulate and encourage the development and
            81078     commercial production by private industry of hydrocarbons from the tar sands deposits lying
            81079     within the state of Utah for the public good and economic well-being of the citizens of this state
            81080     and the United States, and to so do by providing for the design, construction, and operation of a
            81081     pilot plant to be employed for the purpose of demonstrating the commercial viability of
            81082     processes for the recovery of hydrocarbons from the tar sands deposits of the state through
            81083     certain funding by the state in conjunction with funding furnished from other sources, both
            81084     public and private.
            81085         Section 1920. Section 63M-3-103 , which is renumbered from Section 63-45a-2 is
            81086     renumbered and amended to read:
            81087          [63-45a-2].     63M-3-103. Definitions.
            81088         As used in this act:
            81089         (1) "Contractor" means the parties from private industry who design, construct, or

            81090     operate the pilot plant.
            81091         (2) "Council" means the state advisory council on science and technology.
            81092         (3) "Intellectual property" means the sum of knowledge contained in patents,
            81093     know-how, copyrights, trade secrets, and technical information relating to the pilot plant and
            81094     the research which has preceded it.
            81095         (4) "Objective period" means that period of time required for the pilot plant to achieve
            81096     its design objectives.
            81097         (5) "Pilot plant" means the tar sands pilot plant which is the subject of this act.
            81098         (6) "Station" means the Utah engineering experiment station, University of Utah.
            81099         Section 1921. Section 63M-3-201 , which is renumbered from Section 63-45a-3 is
            81100     renumbered and amended to read:
            81101     
Part 2. Contracts and Intellectual Property

            81102          [63-45a-3].     63M-3-201. Contract for pilot plant -- Contents -- Financing --
            81103      Termination of contract.
            81104         (1) The council is authorized to enter into contracts with contractors to provide for the
            81105     design, construction, and operation of a pilot plant to fulfill the purposes of this act.
            81106         (2) The contracts provided for in Subsection (1) shall provide, among other things, for
            81107     the following:
            81108         (a) The plans and specifications for and the processes to be used in the pilot plant must
            81109     be approved by the council.
            81110         (b) The station is to be the project engineer in respect to the pilot plant and is to
            81111     represent the council in respect to it. As the project engineer the station has the responsibility of
            81112     monitoring performance by the contractors, gathering data pertinent to the purpose for which
            81113     the pilot plant is to be constructed and operated, and performing such administrative,
            81114     accounting, and other duties assigned to it in respect to the pilot plant by the council. As
            81115     compensation for its services the station is to receive its costs, direct and indirect, calculated in
            81116     accordance with standard accounting procedures followed by the University of Utah in
            81117     contracts with the United States government and its agencies; and the amount to be so paid to

            81118     the station is to be considered part of the costs of design, construction, and operation of the
            81119     pilot plant.
            81120         (c) The contractor shall provide all funds necessary to the design, construction, and
            81121     operation of the pilot plant for the objective period which are not provided by the appropriation
            81122     made to the council for purposes of this act under Section 5. To provide its portion of these
            81123     funds the contractor may use both private and public sources, but that from public sources can
            81124     only be used with prior approval by the council.
            81125         (d) The site for the pilot plant is subject to prior approval by the council.
            81126         (e) The pilot plant and any production from it shall be owned by the state of Utah in the
            81127     proportion that its appropriation for purposes of this act under Section 5 bears to the total cost
            81128     of designing, constructing, and operating the pilot plant for the objective period. This total cost
            81129     does not include the cost or value of the site for the pilot plant or tar sand feedstock for the
            81130     objective period.
            81131         (f) The council shall have the exclusive right to determine when the end of the objective
            81132     period has been reached, at which time any contracts between the council and the contractor
            81133     regarding the pilot plant shall terminate. The pilot plant is then to be sold for cash pursuant to
            81134     law at competitive bidding when the sale of the pilot plant equipment is determined to be
            81135     practicable by the council. The gross proceeds from the sale shall be paid to the state but not in
            81136     excess of the amount of the appropriation made under Section 5 plus an interest factor of 10%
            81137     per year from the date of the contracts to the sale date.
            81138         Section 1922. Section 63M-3-202 , which is renumbered from Section 63-45a-4 is
            81139     renumbered and amended to read:
            81140          [63-45a-4].     63M-3-202. Intellectual properties discovered or developed --
            81141      Ownership -- Patenting -- Licensing.
            81142         (1) To the extent not inconsistent with the patent laws of the United States, the
            81143     intellectual properties which are newly discovered or newly developed in the course of the
            81144     design, construction, and operation of the pilot plant during the objective period:
            81145         (a) shall be owned by the state of Utah to the same extent as the pilot plant and

            81146     production from it as provided for in Subsection [ 63-45a-3 ] 63M-3-201 (2)(e); and
            81147         (b) shall, if patentable, be patented in a manner appropriate to this ownership by the
            81148     state and the other owners.
            81149         (2) Any intellectual properties described in Subsection (1) insofar as they are so owned
            81150     by the state may be licensed for the objective period upon such terms as are approved by the
            81151     council.
            81152         Section 1923. Section 63M-4-101 , which is renumbered from Section 63-53b-101 is
            81153     renumbered and amended to read:
            81154     
CHAPTER 4. UTAH ENERGY ACT

            81155     
Part 1. General Provisions

            81156          [63-53b-101].     63M-4-101. Title.
            81157         This chapter is known as the "Utah Energy Act."
            81158         Section 1924. Section 63M-4-102 , which is renumbered from Section 63-53b-102 is
            81159     renumbered and amended to read:
            81160          [63-53b-102].     63M-4-102. Definitions.
            81161         As used in this chapter, "state agency" means an executive branch:
            81162         (1) department;
            81163         (2) agency;
            81164         (3) board;
            81165         (4) commission;
            81166         (5) division; or
            81167         (6) state educational institution.
            81168         Section 1925. Section 63M-4-201 , which is renumbered from Section 63-53b-201 is
            81169     renumbered and amended to read:
            81170     
Part 2. Governor's Energy Advisor

            81171          [63-53b-201].     63M-4-201. Governor's energy advisor -- Duties.
            81172         (1) (a) The governor shall appoint an energy advisor.
            81173         (b) The governor's energy advisor serves at the pleasure of the governor.

            81174         (2) The governor's energy advisor shall:
            81175         (a) advise the governor on energy-related matters;
            81176         (b) annually review and propose updates to the state's energy policy, as contained in
            81177     Section [ 63-53b-301 ] 63M-4-301 ;
            81178         (c) promote as the governor's energy advisor considers necessary:
            81179         (i) the development of cost-effective energy resources both renewable and
            81180     nonrenewable; and
            81181         (ii) educational programs, including programs supporting conservation and energy
            81182     efficiency measures;
            81183         (d) coordinate across state agencies to assure consistency with state energy policy,
            81184     including:
            81185         (i) working with the State Energy Program to promote access to federal assistance for
            81186     energy-related projects for state agencies and members of the public;
            81187         (ii) working with the Division of Homeland Security to assist the governor in carrying
            81188     out the governor's energy emergency powers under [Title 63, Chapter 53a] Title 63K, Chapter
            81189     2, Energy Emergency Powers of Governor;
            81190         (iii) participating in the annual review of the energy emergency plan and the
            81191     maintenance of the energy emergency plan and a current list of contact persons required by
            81192     Section 53-2-110 ; and
            81193         (iv) identifying and proposing measures necessary to facilitate low-income consumers'
            81194     access to energy services;
            81195         (e) coordinate with the Division of Homeland Security ongoing activities designed to
            81196     test an energy emergency plan to ensure coordination and information sharing among state
            81197     agencies and political subdivisions in the state, public utilities and other energy suppliers, and
            81198     other relevant public sector persons as required by Sections 53-2-110 , [ 63-53a-3 ] 63K-2-201 ,
            81199     [ 63-53a-7 ] 63K-2-205 , and [ 63-53a-8 ] 63K-2-301 ;
            81200         (f) coordinate with requisite state agencies to study:
            81201         (i) the creation of a centralized state repository for energy-related information;

            81202         (ii) methods for streamlining state review and approval processes for energy-related
            81203     projects; and
            81204         (iii) the development of multistate energy transmission and transportation
            81205     infrastructure;
            81206         (g) coordinate energy-related regulatory processes within the state;
            81207         (h) compile, and make available to the public, information about federal, state, and local
            81208     approval requirements for energy-related projects;
            81209         (i) act as the state's advocate before federal and local authorities for energy-related
            81210     infrastructure projects or coordinate with the appropriate state agency; and
            81211         (j) help promote the Division of Facilities Construction and Management's measures to
            81212     improve energy efficiency in state buildings.
            81213         Section 1926. Section 63M-4-202 , which is renumbered from Section 63-53b-202 is
            81214     renumbered and amended to read:
            81215          [63-53b-202].     63M-4-202. Agency cooperation.
            81216         A state agency shall provide the state energy officer with any energy-related information
            81217     requested by the governor's energy advisor if the governor's energy advisor's request is
            81218     consistent with other law.
            81219         Section 1927. Section 63M-4-203 , which is renumbered from Section 63-53b-203 is
            81220     renumbered and amended to read:
            81221          [63-53b-203].     63M-4-203. Reports.
            81222         (1) The governor's energy advisor shall report annually to:
            81223         (a) the governor;
            81224         (b) the Natural Resources, Agriculture, and Environment Interim Committee; and
            81225         (c) the Public Utilities and Technology Interim Committee.
            81226         (2) The report required in Subsection (1) shall:
            81227         (a) summarize the status and development of the state's energy resources;
            81228         (b) address the governor's energy advisor's activities under this part; and
            81229         (c) recommend any energy-related executive or legislative action the governor's energy

            81230     advisor considers beneficial to the state, including updates to the state energy policy under
            81231     Section [ 63-53b-301 ] 63M-4-301 .
            81232         Section 1928. Section 63M-4-301 , which is renumbered from Section 63-53b-301 is
            81233     renumbered and amended to read:
            81234     
Part 3. State Energy Policy

            81235          [63-53b-301].     63M-4-301. State energy policy.
            81236         (1) It is the policy of the state that:
            81237         (a) Utah have adequate, reliable, affordable, sustainable, and clean energy resources;
            81238         (b) Utah will promote the development of:
            81239         (i) nonrenewable energy resources, including natural gas, coal, oil, oil shale, and tar
            81240     sands; and
            81241         (ii) renewable energy resources, including geothermal, solar, wind, biomass, biodiesel,
            81242     hydroelectric, and ethanol;
            81243         (c) Utah will promote the study of nuclear power generation;
            81244         (d) Utah will promote the development of resources and infrastructure sufficient to
            81245     meet the state's growing demand, while contributing to the regional and national energy supply,
            81246     thus reducing dependence on international energy sources;
            81247         (e) Utah will allow market forces to drive prudent use of energy resources, although
            81248     incentives and other methods may be used to ensure the state's optimal development and use of
            81249     energy resources in the short- and long-term;
            81250         (f) Utah will pursue energy conservation, energy efficiency, and environmental quality;
            81251         (g) (i) state regulatory processes should be streamlined to balance economic costs with
            81252     the level of review necessary to ensure protection of the state's various interests; and
            81253         (ii) where federal action is required, Utah will encourage expedited federal action and
            81254     will collaborate with federal agencies to expedite review;
            81255         (h) Utah will maintain an environment that provides for stable consumer prices that are
            81256     as low as possible while providing producers and suppliers a fair return on investment,
            81257     recognizing that:

            81258         (i) economic prosperity is linked to the availability, reliability, and affordability of
            81259     consumer energy supplies; and
            81260         (ii) investment will occur only when adequate financial returns can be realized; and
            81261         (i) Utah will promote training and education programs focused on developing a
            81262     comprehensive understanding of energy, including programs addressing:
            81263         (i) energy conservation;
            81264         (ii) energy efficiency;
            81265         (iii) supply and demand; and
            81266         (iv) energy related workforce development.
            81267         (2) State agencies are encouraged to conduct agency activities consistent with
            81268     Subsection (1).
            81269         (3) A person may not file suit to challenge a state agency's action that is inconsistent
            81270     with Subsection (1).
            81271         Section 1929. Section 63M-4-302 , which is renumbered from Section 63-53b-302 is
            81272     renumbered and amended to read:
            81273          [63-53b-302].     63M-4-302. Legislative committee review.
            81274         The Natural Resources, Agriculture, and Environment Interim Committee and the Public
            81275     Utilities and Technology Interim Committee shall review the state energy policy annually and
            81276     propose any changes to the Legislature.
            81277         Section 1930. Section 63M-5-101 is enacted to read:
            81278     
CHAPTER 5. RESOURCE DEVELOPMENT ACT

            81279     
Part 1. General Provisions

            81280          63M-5-101. Title.
            81281         This chapter is known as the "Resource Development Act."
            81282         Section 1931. Section 63M-5-102 , which is renumbered from Section 63-51-1 is
            81283     renumbered and amended to read:
            81284          [63-51-1].     63M-5-102. Policy -- Legislative recognition.
            81285         (1) The Legislature declares that the policy of this state is:

            81286         (a) to encourage industrial development and the development and utilization of the
            81287     natural resources in this state in order to promote the economic development of this state and to
            81288     provide benefits to the citizens of this state and other states; and
            81289         (b) to encourage co-operation between the state and its agencies and political
            81290     subdivisions with individuals, firms, and business organizations to provide for industrial
            81291     development and the development and utilization of the natural resources of this state.
            81292         (2) The Legislature recognizes that:
            81293         (a) industrial development and the development and utilization of the natural resources
            81294     in this state, particularly in rural areas, may have a significant financial impact on state agencies
            81295     and units of local government unless adequate financing is made available to these state agencies
            81296     and units of local government to enable them to provide necessary public works and
            81297     improvements and public services prior to completion of natural resource and industrial
            81298     facilities; and
            81299         (b) because of the time lag between the financial impact on affected units of government
            81300     and the normal beginning of the receipt of additional tax revenues from this development
            81301     normally begins, it may be necessary and in the public interest of this state and its political
            81302     subdivisions to provide through utilization of ad valorem taxes funds for these necessary public
            81303     works and improvements; and
            81304         (c) these necessary public works and improvements may in part be of benefit primarily
            81305     to the industrial developer or the person developing or utilizing the natural resources in this
            81306     state.
            81307         Section 1932. Section 63M-5-103 , which is renumbered from Section 63-51-2 is
            81308     renumbered and amended to read:
            81309          [63-51-2].     63M-5-103. Definitions.
            81310         As used in this chapter:
            81311         (1) "Commencement of construction" means any clearing of land, excavation, or
            81312     construction but does not include preliminary site review, including soil tests, topographical
            81313     surveys, exploratory drilling, boring or mining, or other preliminary tests.

            81314         (2) "Developer" means any person engaged or to be engaged in industrial development
            81315     or the development or utilization of natural resources in this state through a natural resource or
            81316     industrial facility, including owners, contract purchases of owners, and persons who, as a lessee
            81317     or under an agreement, are engaged or to be engaged in industrial development or the
            81318     development or utilization of natural resources in this state through a natural resource or
            81319     industrial facility.
            81320         (3) "Major developer" means any developer whose proposed new or additional natural
            81321     resource facility or industrial facility is projected:
            81322         (a) To employ more than 500 people; or
            81323         (b) To cause the population of an affected unit of local government to increase by more
            81324     than 5%, the increase to include the primary work force of the facility and their dependents and
            81325     the work force and dependents attributable to commercial and public service employment
            81326     created by the presence of the facility.
            81327         (4) "Natural resource facility" or "industrial facility" means any land, structure, building,
            81328     plant, mine, road, installation, excavation, machinery, equipment, or device, or any addition to,
            81329     reconstruction, replacement, or improvement of, land or an existing structure, building, plant,
            81330     mine, road, installation, excavation, machinery, or device reasonably used, erected, constructed,
            81331     acquired, or installed by any person, if a substantial purpose of or result of the use, erection,
            81332     construction, acquisition, rental, lease, or installation is related to industrial development or the
            81333     development or utilization of the natural resources in this state.
            81334         (5) "Person" includes any individual, firm, co-partnership, joint venture, corporation,
            81335     estate, trust, business trust, syndicate, or any group or combination acting as a unit.
            81336         (6) "Unit of local government" means any county, municipality, school district, local
            81337     district, special service district, or any other political subdivision of the state.
            81338         Section 1933. Section 63M-5-201 , which is renumbered from Section 63-51-3 is
            81339     renumbered and amended to read:
            81340     
Part 2. Prepayments

            81341          [63-51-3].     63M-5-201. Prepayment of ad valorem property taxes on natural

            81342      resources or industrial facility.
            81343         The developer also may prepay, with the consent of the governing bodies of the units of
            81344     local government affected, to the county treasurer, or to other persons authorized by the
            81345     governing body of a unit of local government under Section [ 63-51-10 ] 63M-5-306 , a portion
            81346     of the ad valorem property taxes which the developer anticipates will be imposed by the unit of
            81347     local government under Title 59, Chapter 2, Part 9, in connection with the natural resources or
            81348     industrial facility. Ad valorem property taxes prepaid under this chapter may not act as an
            81349     abatement of the ad valorem property tax but rather shall be construed as a prepayment for
            81350     which, notwithstanding Section 59-2-1321 or any statute of limitations to the contrary, a credit
            81351     will be given the developer making the prepayment at the time the ad valorem property taxes
            81352     become due and otherwise payable.
            81353         Section 1934. Section 63M-5-202 , which is renumbered from Section 63-51-4 is
            81354     renumbered and amended to read:
            81355          [63-51-4].     63M-5-202. Prepaid Sales and Use Tax Construction Account -- Use
            81356      of account funds.
            81357         There is created a Prepaid Sales and Use Tax Construction Account as a special
            81358     suspense account within the state General Fund. All revenues collected or received by the State
            81359     Tax Commission from the prepayment of sales or use taxes under this chapter shall be deposited
            81360     with the state treasurer daily and credited by the state treasurer to the Prepaid Sales and Use
            81361     Tax Construction Account. This account shall be used to finance state-related public
            81362     improvements, including but not limited to highways and related facilities and schools and
            81363     related facilities. Funds from this account shall only be disbursed or drawn upon after proper
            81364     authorization and only after appropriation of these funds by the Legislature.
            81365         Section 1935. Section 63M-5-301 , which is renumbered from Section 63-51-5 is
            81366     renumbered and amended to read:
            81367     
Part 3. Use of Funds

            81368          [63-51-5].     63M-5-301. State Board of Education and Department of
            81369      Transportation to prepare budget and submit to governor.

            81370         The State Board of Education and the Department of Transportation shall prepare and
            81371     submit to the governor, to be included in [his] the governor's budget to the Legislature, a
            81372     budget of the requirements for carrying out the provisions of this chapter.
            81373         Section 1936. Section 63M-5-302 , which is renumbered from Section 63-51-6 is
            81374     renumbered and amended to read:
            81375          [63-51-6].     63M-5-302. Appropriations for use of funds -- Board of Education
            81376      and Department of Transportation -- Repayment by Board of Education -- Board of
            81377      Education and Transportation Commission requirements.
            81378         (1) The funds needed for construction of schools and highways and any of their related
            81379     facilities as a result of industrial development or as a result of development or utilization of
            81380     natural resources in this state through natural resource or industrial facilities shall be made
            81381     available from the Prepaid Sales and Use Tax Construction Account through appropriations by
            81382     the Legislature.
            81383         (2) Appropriations will be made to the State Board of Education and the Department of
            81384     Transportation for specific public facilities related to a specific natural resource or industrial
            81385     facility.
            81386         (3) (a) Appropriations made to the State Board of Education for schools and related
            81387     facilities shall be repaid to the General Fund through property tax assessments by the school
            81388     district within whose boundary the natural resource or industrial facility is located.
            81389         (b) The repayment shall be made within a period of six years from the date of
            81390     substantial completion of the natural resource or industrial facility or from the date the school
            81391     district has a taxable value exceeding $50,000,000, whichever occurs first.
            81392         (c) A refund shall be made to the developer of the natural resource or industrial facility
            81393     to the extent of sales and use taxes prepaid by the developer in accordance with this chapter and
            81394     appropriated by the Legislature for the specific public school facility, which have not been
            81395     credited against sales and use taxes imposed by Title 59, Chapter 12, Sales and Use Tax Act.
            81396         (4) The State Board of Education shall:
            81397         (a) determine school facility needs as respective communities develop by consulting

            81398     with the school district within whose boundary the development project is located; and
            81399         (b) recommend to the Legislature the amount to be appropriated at each session of the
            81400     Legislature.
            81401         (5) The Transportation Commission shall:
            81402         (a) determine highway needs in the area of the natural resource or industrial facility;
            81403         (b) determine whether the highway should be a part of the state highway system; and
            81404         (c) recommend to the Legislature the amounts to be appropriated to the Department of
            81405     Transportation for use on the highways.
            81406         (6) (a) The State Board of Education and the Department of Transportation shall assess
            81407     and determine in connection with each public facility the portion of each facility of benefit
            81408     primarily to the industrial developer or the person developing or utilizing the natural resources.
            81409         (b) The assessment shall be reported to the Legislature to be used in determining the
            81410     amount to be appropriated subject to this chapter.
            81411         Section 1937. Section 63M-5-303 , which is renumbered from Section 63-51-7 is
            81412     renumbered and amended to read:
            81413          [63-51-7].     63M-5-303. Public facility -- Prepayment of sales and use tax in
            81414      installments.
            81415         Notwithstanding anything to the contrary contained in this chapter, prepaid sales or use
            81416     taxes sufficient to construct a particular public facility need not be prepaid in one sum but may
            81417     be prepaid in installments as may be required by the state or any of its agencies or political
            81418     subdivisions in fulfilling contractual commitments for the construction of the public facility if the
            81419     state receives assurance that the funds for the agreed project will be prepaid to the State Tax
            81420     Commission at the time or times for which the state or any of its agencies or political
            81421     subdivisions have made contractual commitments for the disbursement of these funds for the
            81422     public facility. In no event shall the total accumulated prepayment be less than the amount of
            81423     sales and use taxes due for the calendar quarters for which returns are required to be filed under
            81424     Section 59-12-107 .
            81425         Section 1938. Section 63M-5-304 , which is renumbered from Section 63-51-8 is

            81426     renumbered and amended to read:
            81427          [63-51-8].     63M-5-304. Department of Transportation and county executives --
            81428      Cooperation in development or utilization -- Written agreements authorized -- Survey
            81429      and location work.
            81430         (1) The Department of Transportation and county executives shall cooperate with
            81431     persons engaged in industrial development or the development of or utilization of natural
            81432     resources in this state through a natural resource or industrial facility who desire to assist this
            81433     state or its counties in obtaining financing through prepaid sales or use taxes for improvements
            81434     to existing state or county roads or the construction of new state or county roads which are
            81435     necessary to provide access to areas of natural resource or industrial facilities.
            81436         (2) Where it is determined that the improvements or construction referred to cannot be
            81437     financed with existing public funds or when the necessary improvement or construction would
            81438     be unduly delayed by postponing the improvements or construction until funds are otherwise
            81439     available and the Legislature has appropriated the necessary funds pursuant to Section
            81440     [ 63-51-6 ] 63M-5-302 , the Department of Transportation or any county executive may enter
            81441     into written agreements with the person engaged or to be engaged in industrial development or
            81442     the development or utilization of natural resources through a natural resource or industrial
            81443     facility providing for the necessary improvements or construction if that person agrees to the
            81444     prepayment of sales or use taxes as provided in this chapter to the extent necessary to provide
            81445     the funds needed to finance the necessary improvements or construction.
            81446         (3) The agreements shall include the assurances necessary to provide the state or the
            81447     county adequate funds for the payment of all obligations incurred by the state or county for the
            81448     necessary improvements or construction and for the transfer of funds and all necessary
            81449     adjustments, if the funds prepaid exceed the actual expenditures made for the improvements or
            81450     construction.
            81451         (4) If the actual expenditures made by the state, its agencies, or political subdivisions
            81452     for the improvements or construction exceed the amount of prepaid sales and use taxes actually
            81453     imposed by Title 59, Chapter 12, Sales and Use Tax Act, then no refund shall be allowed for the

            81454     excess amount prepaid as sales or use taxes.
            81455         (5) Initial survey and location work by the Department of Transportation or a county
            81456     may proceed prior to the execution of any agreements if otherwise authorized and funded.
            81457         Section 1939. Section 63M-5-305 , which is renumbered from Section 63-51-9 is
            81458     renumbered and amended to read:
            81459          [63-51-9].     63M-5-305. Tax Commission -- Rules and regulations.
            81460         For the purpose of more efficiently administering this act the State Tax Commission is
            81461     authorized in its discretion to formulate, amend, or cancel rules and regulations establishing
            81462     procedures regarding matters pertaining to the prepayment of sales or use taxes as provided in
            81463     this act and the credit against sales or use taxes as the same become due and otherwise payable.
            81464         Section 1940. Section 63M-5-306 , which is renumbered from Section 63-51-10 is
            81465     renumbered and amended to read:
            81466          [63-51-10].     63M-5-306. Financial impact statement -- Alleviation plan -- Filing
            81467      required -- Contents -- Payments credited against tax -- Provisions neither exclusive nor
            81468      mandatory.
            81469         (1) (a) A developer desiring to prepay ad valorem property taxes under Section
            81470     [ 63-51-3 ] 63M-5-201 shall first prepare and file with the Governor's Office of Economic
            81471     Development and all units of local government likely to be affected with a significant financial
            81472     impact due to a natural resource or industrial facility a financial impact statement together with
            81473     a plan for alleviating these impacts.
            81474         (b) The impact statement and the alleviation plan shall be prepared in cooperation with
            81475     and after consultation with the Governor's Office of Economic Development and the affected
            81476     units of local government.
            81477         (c) The financial impact statement shall assess the projected financial impact on state
            81478     agencies and units of local government, including the impact on transportation systems, culinary
            81479     water systems, waste treatment facilities, public safety, schools, public health, housing, planning
            81480     and zoning, and general government administration.
            81481         (d) The alleviation plan shall set out proposals for alleviating the impact and may

            81482     include payments to local units of government or direct expenditures by the developer to
            81483     alleviate the impact.
            81484         (e) The impact statement and the alleviation plan may be amended by the developer in
            81485     cooperation with and after consultation with the Governor's Office of Economic Development
            81486     and those units of local government affected by the amendment.
            81487         (2) At least 90 days prior to commencement of construction of an industrial facility or
            81488     natural resources facility by a major developer, an impact statement and alleviation plan as
            81489     described in Subsection (1) shall be filed by the major developer whether or not the major
            81490     developer desires to prepay ad valorem property taxes.
            81491         (3) (a) Upon the filing of the financial impact statement and alleviation plan, a developer
            81492     may apply to the governing body of the affected unit of local government for authorization to
            81493     prepay a portion of the anticipated ad valorem property taxes to be expended consistent with
            81494     the alleviation plan.
            81495         (b) This authorization may provide that only a portion of the amounts so prepaid can be
            81496     applied against the ad valorem property taxes due in any given year.
            81497         (c) In addition to payments directly to the affected unit of local government, an affected
            81498     unit of local government may authorize a tax credit on anticipated ad valorem property taxes for
            81499     expenditures made by the developer to other persons so long as the expenditure is consistent
            81500     with the alleviation plan.
            81501         (4) (a) This chapter is designed to provide an additional mechanism for the alleviation
            81502     of impacts on units of local government and is not intended to discourage the use of other
            81503     mechanisms as may be available.
            81504         (b) Nothing in this chapter requires a developer to prepay ad valorem property taxes or
            81505     to make any other expenditure not otherwise required by law.
            81506         Section 1941. Section 63M-6-101 is enacted to read:
            81507     
CHAPTER 6. MILITARY BASE EASEMENTS ACT

            81508     
Part 1. General Provisions

            81509          63M-6-101. Title.

            81510         This chapter is known as the "Military Base Easements Act."
            81511         Section 1942. Section 63M-6-201 , which is renumbered from Section 63-49a-1 is
            81512     renumbered and amended to read:
            81513     
Part 2. Easements and Improvements

            81514          [63-49a-1].     63M-6-201. Acquisition of easements -- Restrictions -- Resale.
            81515         (1) (a) The Governor's Office of Economic Development shall acquire, by purchase or
            81516     condemnation, easements for the establishment, maintenance, and operation of a restrictive use
            81517     area for the operation of aircraft to and from Hill Air Force Base because:
            81518         (i) Hill Air Force Base is a military installation of vital importance to security of the
            81519     United States of America and to the economic well-being of the citizens of Utah;
            81520         (ii) there are certain portions of land around the entire base that are being developed for
            81521     residential and other uses that are incompatible with current and future operations of the base
            81522     because of noise, health, safety, and accident reasons; and
            81523         (iii) it is the purpose of this chapter for the state to acquire those easements restricting
            81524     the use of those lands and the air space above them in order to assure the continued operation
            81525     of Hill Air Force Base as an active military base and to protect the health, safety, and economic
            81526     well-being of the citizens of Utah.
            81527         (b) The Governor's Office of Economic Development may delegate its power to
            81528     purchase or condemn easements under this subsection to other state agencies if the department
            81529     ensures that those agencies comply with the procedures and requirements of this chapter.
            81530         (2) (a) The Governor's Office of Economic Development shall ensure that the
            81531     easements restrict the land from those uses identified in the Hill Air Force Base AICUZ Land
            81532     Use Compatibility Guidelines Study, as amended, dated October, 1982, as not being acceptable.
            81533         (b) The Governor's Office of Economic Development may allow certain other uses not
            81534     prohibited by those guidelines if those uses are consistent with the purpose of this chapter.
            81535         (c) Nothing in this chapter may be construed to authorize the Governor's Office of
            81536     Economic Development or any other state agency to:
            81537         (i) acquire any ownership interest in real property other than an easement restricting the

            81538     land from future uses inconsistent with the Hill Air Force Base AICUZ Land Use Compatibility
            81539     Guidelines Study, as amended, dated October 1982;
            81540         (ii) purchase businesses; or
            81541         (iii) require people to relocate or move from their property.
            81542         (d) To calculate the purchase price for the easements, the Governor's Office of
            81543     Economic Development shall subtract the market value of the real property and its
            81544     improvements after the acquisition of the easements from the market value of the real property
            81545     and its improvements before the acquisition of the easements.
            81546         (e) When the Hill Air Force Base runways have not been used for seven years to
            81547     accommodate the arrival and departure of airplanes, the Governor's Office of Economic
            81548     Development shall:
            81549         (i) notify by certified mail each current owner of the property to which each easement is
            81550     attached;
            81551         (ii) inform that owner that the owner may purchase the easement from the state for the
            81552     same price that the state paid for it originally or for the market value of the easement at the time
            81553     of the buyback, whichever is smaller; and
            81554         (iii) sell the easement to the owner of the property to which the easement is attached if
            81555     the owner tenders the purchase price.
            81556         (f) In addition to purchasing the easements required by this chapter, the Governor's
            81557     Office of Economic Development may provide reasonable relocation expenses to all churches,
            81558     businesses, and schools that, as of March 1, 1994, were located either within the north Hill Air
            81559     Force Base accident potential zone (APZ) identified in Subsection [ 63-49a-2 ] 63M-6-202 (1)(a)
            81560     or within the south Hill Air Force Base accident potential zone (APZ) identified in Subsection
            81561     [ 63-49a-2 ] 63M-6-202 (1)(b) if those churches, businesses, and schools can reasonably
            81562     demonstrate that expansion of the use would have been permitted before acquisition of the
            81563     easements but is now prohibited because of the easement.
            81564         (3) (a) The Governor's Office of Economic Development may take action to enforce the
            81565     provisions of this chapter.

            81566         (b) The attorney general shall represent the Governor's Office of Economic
            81567     Development in that action.
            81568         Section 1943. Section 63M-6-202 , which is renumbered from Section 63-49a-2 is
            81569     renumbered and amended to read:
            81570          [63-49a-2].     63M-6-202. Location of easements.
            81571         (1) The Governor's Office of Economic Development or its designees may acquire
            81572     easements on the land within the following boundaries:
            81573         (a) beginning on the north Hill Air Force Base accident potential zone (APZ) at a point
            81574     which is North 1,089,743.170 meters and East 459,346.946 meters based on the North zone,
            81575     State of Utah, NAD 83 coordinates and runs north to North 63 degrees 10 minutes 44 seconds,
            81576     East 457.109 meters, North 26 degrees 49 minutes 16 seconds, West 3,352.129 meters, South
            81577     63 degrees 10 minutes 44 seconds, West 914.217 meters, South 26 degrees 49 minutes 16
            81578     seconds, East 3,352.129 meters, North 63 degrees 10 minutes 44 seconds, East 457.109 meters
            81579     back to the point of beginning; and
            81580         (b) beginning on the south Hill Air Force Base APZ which is North 1,086,065.786
            81581     meters and East 461,206.222 meters based on the North zone, State of Utah, NAD 83
            81582     coordinates and runs South 63 degrees 10 minutes 44 seconds, West 457.109 meters, South 26
            81583     degrees 49 minutes 16 seconds, East 502.179 meters, South 0 degrees 20 minutes 35 seconds,
            81584     West 1,722.227 meters, South 89 degrees 39 minutes 25 seconds, East 883.743 meters, North
            81585     63 degrees 10 minutes 44 seconds, East 914.217 meters, North 26 degrees 49 minutes 16
            81586     seconds, West 2,437.912 meters, South 63 degrees 10 minutes 44 seconds, West 457.109
            81587     meters back to the point of beginning.
            81588         (2) The Governor's Office of Economic Development or its designees may acquire
            81589     easements on the following land that is located inside the 75 and 80 level day-night (LDN) noise
            81590     contour as identified in the Hill Air Force Base AICUZ Land Use Compatibility Guidelines
            81591     Study, as amended, dated October, 1982:
            81592         (a) in the west half of Section 3, T4NR1W;
            81593         (b) in the east half of Section 4, T4NR1W;

            81594         (c) in the northeast quarter of Section 8, T4NR1W;
            81595         (d) within all of Section 9, T4NR1W;
            81596         (e) in the northwest quarter of Section 10, T4NR1W;
            81597         (f) within the southwest quarter of Section 19, T5NR1W;
            81598         (g) in the south half of Section 20, T5NR1W;
            81599         (h) within the southwest quarter of Section 28, T5NR1W; and
            81600         (i) within Section 29, T5NR1W.
            81601         Section 1944. Section 63M-6-203 , which is renumbered from Section 63-49a-3 is
            81602     renumbered and amended to read:
            81603          [63-49a-3].     63M-6-203. Certain improvements, alterations, and expansions
            81604      prohibited.
            81605         (1) A person or entity may not begin to develop, or authorize development, on any land
            81606     identified in this chapter until the Governor's Office of Economic Development has affirmatively
            81607     authorized the development of the land because the development is consistent with those uses
            81608     identified in the Hill Air Force Base AICUZ Land Use Compatibility Guidelines Study, as
            81609     amended, dated October 1982.
            81610         (2) Nothing in this chapter prohibits any property owner from improving, altering, or
            81611     expanding any existing residential or commercial use of [his] the property owner's property so
            81612     long as the improvement, alteration, or expansion does not materially increase the human
            81613     density of that present use.
            81614         Section 1945. Section 63M-7-101 is enacted to read:
            81615     
CHAPTER 7. CRIMINAL JUSTICE AND SUBSTANCE ABUSE

            81616     
Part 1. General Provisions

            81617          63M-7-101. Title.
            81618         This chapter is known as "Criminal Justice and Substance Abuse."
            81619         Section 1946. Section 63M-7-201 , which is renumbered from Section 63-25a-101 is
            81620     renumbered and amended to read:
            81621     
Part 2. Commission on Criminal and Juvenile Justice

            81622          [63-25a-101].     63M-7-201. Creation -- Purpose.
            81623         (1) The State Commission on Criminal and Juvenile Justice is created within the
            81624     governor's office.
            81625         (2) The commission's purpose is to:
            81626         (a) promote broad philosophical agreement concerning the objectives of the criminal
            81627     and juvenile justice system in Utah;
            81628         (b) provide a mechanism for coordinating the functions of the various branches and
            81629     levels of government concerned with criminal and juvenile justice to achieve those objectives;
            81630         (c) coordinate statewide efforts to reduce crime and victimization in Utah; and
            81631         (d) accomplish the duties enumerated in Section [ 63-25a-104 ] 63M-7-204 .
            81632         Section 1947. Section 63M-7-202 , which is renumbered from Section 63-25a-102 is
            81633     renumbered and amended to read:
            81634          [63-25a-102].     63M-7-202. Composition -- Appointments -- Ex officio
            81635      members -- Terms -- U.S. Attorney as nonvoting member.
            81636         (1) The commission on criminal and juvenile justice shall be composed of 21 voting
            81637     members as follows:
            81638         (a) the chief justice of the supreme court, as the presiding officer of the judicial council,
            81639     or a judge designated by the chief justice;
            81640         (b) the state court administrator;
            81641         (c) the executive director of the Department of Corrections;
            81642         (d) the director of the Division of Juvenile Justice Services;
            81643         (e) the commissioner of the Department of Public Safety;
            81644         (f) the attorney general;
            81645         (g) the president of the chiefs of police association or a chief of police designated by the
            81646     association's president;
            81647         (h) the president of the sheriffs' association or a sheriff designated by the association's
            81648     president;
            81649         (i) the chair of the Board of Pardons and Parole or a member designated by the chair;

            81650         (j) the chair of the Utah Sentencing Commission;
            81651         (k) the chair of the Utah Substance Abuse and Anti-Violence Coordinating Council;
            81652         (l) the chair of the Utah Board of Juvenile Justice;
            81653         (m) the chair of the Utah Council on Victims of Crime or the chair's designee;
            81654         (n) the director of the Division of Substance Abuse and Mental Health; and
            81655         (o) the following members designated to serve four-year terms:
            81656         (i) a juvenile court judge, appointed by the chief justice, as presiding officer of the
            81657     Judicial Council;
            81658         (ii) a representative of the statewide association of public attorneys designated by the
            81659     association's officers;
            81660         (iii) one member of the House of Representatives who is appointed by the speaker of
            81661     the House of Representatives; and
            81662         (iv) one member of the Senate who is appointed by the president of the Senate.
            81663         (2) The governor shall appoint the remaining three members to four-year staggered
            81664     terms as follows:
            81665         (a) one criminal defense attorney appointed from a list of three nominees submitted by
            81666     the Utah State Bar Association;
            81667         (b) one representative of public education; and
            81668         (c) one citizen representative.
            81669         (3) In addition to the members designated under Subsections (1) and (2), the United
            81670     States Attorney for the district of Utah may serve as a nonvoting member.
            81671         (4) In appointing the members under Subsection (2), the governor shall take into
            81672     account the geographical makeup of the commission.
            81673         Section 1948. Section 63M-7-203 , which is renumbered from Section 63-25a-103 is
            81674     renumbered and amended to read:
            81675          [63-25a-103].     63M-7-203. Executive director -- Qualifications --
            81676      Compensation -- Appointment -- Functions.
            81677         (1) The governor, with the consent of the Senate, shall appoint a person experienced in

            81678     the field of criminal justice and in administration as the executive director of the Commission on
            81679     Criminal and Juvenile Justice. The governor shall establish the executive director's salary within
            81680     the salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
            81681         (2) (a) The executive director, under the direction of the commission, shall administer
            81682     the duties of the commission and act as the governor's advisor on national, state, regional,
            81683     metropolitan, and local government planning as it relates to criminal justice.
            81684         (b) This chapter does not derogate the planning authority conferred on state, regional,
            81685     metropolitan, and local governments by existing law.
            81686         Section 1949. Section 63M-7-204 , which is renumbered from Section 63-25a-104 is
            81687     renumbered and amended to read:
            81688          [63-25a-104].     63M-7-204. Duties of commission.
            81689         The State Commission on Criminal and Juvenile Justice administration shall:
            81690         (1) promote the commission's purposes as enumerated in Section [ 63-25a-101 ]
            81691      63M-7-201 ;
            81692         (2) promote the communication and coordination of all criminal and juvenile justice
            81693     agencies;
            81694         (3) study, evaluate, and report on the status of crime in the state and on the
            81695     effectiveness of criminal justice policies, procedures, and programs that are directed toward the
            81696     reduction of crime in the state;
            81697         (4) study, evaluate, and report on policies, procedures, and programs of other
            81698     jurisdictions which have effectively reduced crime;
            81699         (5) identify and promote the implementation of specific policies and programs the
            81700     commission determines will significantly reduce crime in Utah;
            81701         (6) provide analysis and recommendations on all criminal and juvenile justice legislation,
            81702     state budget, and facility requests, including program and fiscal impact on all components of the
            81703     criminal and juvenile justice system;
            81704         (7) provide analysis, accountability, recommendations, and supervision for state and
            81705     federal criminal justice grant monies;

            81706         (8) provide public information on the criminal and juvenile justice system and give
            81707     technical assistance to agencies or local units of government on methods to promote public
            81708     awareness;
            81709         (9) promote research and program evaluation as an integral part of the criminal and
            81710     juvenile justice system;
            81711         (10) provide a comprehensive criminal justice plan annually;
            81712         (11) review agency forecasts regarding future demands on the criminal and juvenile
            81713     justice systems, including specific projections for secure bed space;
            81714         (12) promote the development of criminal and juvenile justice information systems that
            81715     are consistent with common standards for data storage and are capable of appropriately sharing
            81716     information with other criminal justice information systems by:
            81717         (a) developing and maintaining common data standards for use by all state criminal
            81718     justice agencies;
            81719         (b) annually performing audits of criminal history record information maintained by
            81720     state criminal justice agencies to assess their accuracy, completeness, and adherence to
            81721     standards;
            81722         (c) defining and developing state and local programs and projects associated with the
            81723     improvement of information management for law enforcement and the administration of justice;
            81724     and
            81725         (d) establishing general policies concerning criminal and juvenile justice information
            81726     systems and making rules as necessary to carry out the duties under this Subsection (12) and
            81727     Subsection (10);
            81728         (13) allocate and administer grants, from monies made available, for approved
            81729     education programs to help prevent the sexual exploitation of children; and
            81730         (14) allocate and administer grants funded from monies from the Law Enforcement
            81731     Operations Account created in Section [ 63-63a-10 ] 51-9-411 for law enforcement operations
            81732     and programs related to reducing illegal drug activity and related criminal activity.
            81733         Section 1950. Section 63M-7-205 , which is renumbered from Section 63-25a-104.5 is

            81734     renumbered and amended to read:
            81735          [63-25a-104.5].     63M-7-205. Annual report by the commission.
            81736         (1) The commission shall annually prepare and publish a report directed to the
            81737     governor, the Legislature, and the Judicial Council.
            81738         (2) The report shall describe how the commission fulfilled its statutory purposes and
            81739     duties during the year.
            81740         Section 1951. Section 63M-7-206 , which is renumbered from Section 63-25a-105 is
            81741     renumbered and amended to read:
            81742          [63-25a-105].     63M-7-206. Election of chair -- Meetings.
            81743         The membership of the Commission on Criminal and Juvenile Justice by simple majority
            81744     vote of those in attendance shall annually elect one of their number to serve as chair. The chair
            81745     is responsible for the call and conduct of meetings. Meetings shall be called and held at least
            81746     bimonthly. One of the bimonthly meetings shall be held while the Legislature is convened in its
            81747     annual session. Additional meetings may be called upon request by a majority of the
            81748     commission's members.
            81749         Section 1952. Section 63M-7-207 , which is renumbered from Section 63-25a-106 is
            81750     renumbered and amended to read:
            81751          [63-25a-106].     63M-7-207. Members serve without pay -- Reimbursement
            81752      for expenses.
            81753         (1) (a) (i) Members who are not government employees shall receive no compensation
            81754     or benefits for their services, but may receive per diem and expenses incurred in the
            81755     performance of the member's official duties at the rates established by the Division of Finance
            81756     under Sections 63A-3-106 and 63A-3-107 .
            81757         (ii) Members may decline to receive per diem and expenses for their service.
            81758         (b) (i) State government officer and employee members who do not receive salary, per
            81759     diem, or expenses from their agency for their service may receive per diem and expenses
            81760     incurred in the performance of their official duties from the commission at the rates established
            81761     by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .

            81762         (ii) State government officer and employee members may decline to receive per diem
            81763     and expenses for their service.
            81764         (2) Legislators on the committee shall receive compensation and expenses as provided
            81765     by law and legislative rule.
            81766         Section 1953. Section 63M-7-301 , which is renumbered from Section 63-25a-201 is
            81767     renumbered and amended to read:
            81768     
Part 3. Utah Substance Abuse and Anti-Violence Coordinating Council

            81769          [63-25a-201].     63M-7-301. Creation of council -- Membership -- Terms.
            81770         (1) There is created within the governor's office the Utah Substance Abuse and
            81771     Anti-Violence Coordinating Council.
            81772         (2) The Utah Substance Abuse and Anti-Violence Coordinating Council comprises 25
            81773     voting members as follows:
            81774         (a) the attorney general or the attorney general's designee;
            81775         (b) a county commissioner designated by the Utah Association of Counties;
            81776         (c) the commissioner of public safety or the commissioner's designee;
            81777         (d) the director of the Division of Substance Abuse and Mental Health or the director's
            81778     designee;
            81779         (e) the state superintendent of public instruction or the superintendent's designee;
            81780         (f) the director of the Department of Health or the director's designee;
            81781         (g) the executive director of the Commission on Criminal and Juvenile Justice or the
            81782     executive director's designee;
            81783         (h) the governor or the governor's designee;
            81784         (i) the executive director of the Department of Corrections or the executive director's
            81785     designee;
            81786         (j) the director of the Division of Juvenile Justice Services or the director's designee;
            81787         (k) the chair of the Domestic Violence Advisory Council or the chair's designee;
            81788         (l) the following members designated to serve four-year terms:
            81789         (i) a member of the House of Representatives designated by the speaker;

            81790         (ii) a member of the Senate designated by the president;
            81791         (iii) a member of the judiciary designated by the chief justice of the Utah Supreme
            81792     Court;
            81793         (iv) a representative designated by the Utah League of Cities and Towns; and
            81794         (v) a representative from the offices of minority affairs designated by the directors of
            81795     those offices or a designee;
            81796         (m) the following members appointed by the governor to serve four-year terms:
            81797         (i) a representative of the Utah National Guard, appointed by the governor;
            81798         (ii) one resident of the state who has been personally affected by domestic violence;
            81799         (iii) one resident of the state who has been personally affected by gang violence;
            81800         (iv) one resident of the state who has been personally affected by alcohol or other drug
            81801     abuse; and
            81802         (v) one citizen representative; and
            81803         (n) the following members appointed by the members in Subsections (2)(a) through
            81804     (2)(m) to serve four-year terms:
            81805         (i) a person knowledgeable in criminal justice issues;
            81806         (ii) a person knowledgeable in substance abuse treatment issues;
            81807         (iii) a person knowledgeable in substance abuse prevention issues; and
            81808         (iv) a person knowledgeable in judiciary issues.
            81809         Section 1954. Section 63M-7-302 , which is renumbered from Section 63-25a-202 is
            81810     renumbered and amended to read:
            81811          [63-25a-202].     63M-7-302. Chair -- Vacancies -- Quorum -- Expenses.
            81812         (1) The Utah Substance Abuse and Anti-Violence Coordinating Council shall annually
            81813     select one of its members to serve as chair.
            81814         (2) When a vacancy occurs in the membership for any reason, the replacement shall be
            81815     appointed for the unexpired term in the same manner as the position was originally filled.
            81816         (3) A majority of the members of the council constitutes a quorum.
            81817         (4) (a) (i) Members who are not government employees shall receive no compensation

            81818     or benefits for their services, but may receive per diem and expenses incurred in the
            81819     performance of the member's official duties at the rates established by the Division of Finance
            81820     under Sections 63A-3-106 and 63A-3-107 .
            81821         (ii) Members may decline to receive per diem and expenses for their service.
            81822         (b) (i) State government officer and employee members who do not receive salary, per
            81823     diem, or expenses from their agency for their service may receive per diem and expenses
            81824     incurred in the performance of their official duties from the council at the rates established by
            81825     the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            81826         (ii) State government officer and employee members may decline to receive per diem
            81827     and expenses for their service.
            81828         (c) Legislators on the council shall receive compensation and expenses as provided by
            81829     law and legislative rule.
            81830         (d) (i) Local government members who do not receive salary, per diem, or expenses
            81831     from the entity that they represent for their service may receive per diem and expenses incurred
            81832     in the performance of their official duties at the rates established by the Division of Finance
            81833     under Sections 63A-3-106 and 63A-3-107 .
            81834         (ii) Local government members may decline to receive per diem and expenses for their
            81835     service.
            81836         (5) The council may establish subcommittees as needed to assist in accomplishing its
            81837     duties under Section [ 63-25a-203 ] 63M-7-303 .
            81838         Section 1955. Section 63M-7-303 , which is renumbered from Section 63-25a-203 is
            81839     renumbered and amended to read:
            81840          [63-25a-203].     63M-7-303. Duties of council.
            81841         (1) The Utah Substance Abuse and Anti-Violence Coordinating Council shall:
            81842         (a) provide leadership and generate unity for Utah's ongoing efforts to combat
            81843     substance abuse and community violence;
            81844         (b) recommend and coordinate the creation, dissemination, and implementation of a
            81845     statewide substance abuse and anti-violence policy;

            81846         (c) facilitate planning for a balanced continuum of substance abuse and community
            81847     violence prevention, treatment, and justice services;
            81848         (d) promote collaboration and mutually beneficial public and private partnerships;
            81849         (e) coordinate recommendations made by any subcommittees created under Section
            81850     [ 63-25a-202 ] 63M-7-302 ;
            81851         (f) analyze and provide an objective assessment of all proposed legislation concerning
            81852     alcohol and other drug issues and community violence issues; and
            81853         (g) coordinate the implementation of Section 77-18-1.1 and related provisions in
            81854     Subsections 77-18-1 (5)(d) and (e) and 77-27-9 (2)(g), as provided in Section [ 63-25a-205.5 ]
            81855      63M-7-305 .
            81856         (2) The council shall meet quarterly or more frequently as determined necessary by the
            81857     chair.
            81858         (3) The council shall report its recommendations annually to the commission, governor,
            81859     the Legislature, and the Judicial Council.
            81860         Section 1956. Section 63M-7-304 , which is renumbered from Section 63-25a-205 is
            81861     renumbered and amended to read:
            81862          [63-25a-205].     63M-7-304. Chair -- Vacancies -- Quorum -- Expenses.
            81863         (1) The members of any subcommittees established by the council shall each annually
            81864     select one of their members as chairs.
            81865         (2) When a vacancy occurs in the membership for any reason, the replacement shall be
            81866     appointed for the unexpired term in the same manner as the position was originally filled.
            81867         (3) A majority of the members of a subcommittee constitutes a quorum for the
            81868     transaction of business by the subcommittee.
            81869         (4) (a) (i) Members who are not government employees shall receive no compensation
            81870     or benefits for their services, but may receive per diem and expenses incurred in the
            81871     performance of the member's official duties at the rates established by the Division of Finance
            81872     under Sections 63A-3-106 and 63A-3-107 .
            81873         (ii) Members may decline to receive per diem and expenses for their service.

            81874         (b) (i) State government officer and employee members who do not receive salary, per
            81875     diem, or expenses from their agency for their service may receive per diem and expenses
            81876     incurred in the performance of their official duties from the committee at the rates established by
            81877     the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            81878         (ii) State government officer and employee members may decline to receive per diem
            81879     and expenses for their service.
            81880         (c) Legislators on the subcommittee shall receive compensation and expenses as
            81881     provided by law and legislative rule.
            81882         (d) Members from higher education may not receive per diem or expenses for their
            81883     service.
            81884         (e) (i) Local government members who do not receive salary, per diem, or expenses
            81885     from the entity that they represent for their service may receive per diem and expenses incurred
            81886     in the performance of their official duties at the rates established by the Division of Finance
            81887     under Sections 63A-3-106 and 63A-3-107 .
            81888         (ii) Local government members may decline to receive per diem and expenses for their
            81889     service.
            81890         Section 1957. Section 63M-7-305 , which is renumbered from Section 63-25a-205.5 is
            81891     renumbered and amended to read:
            81892          [63-25a-205.5].     63M-7-305. Drug Offender Reform Act -- Coordination.
            81893         (1) As used in this section:
            81894         (a) "Council" means the Utah Substance Abuse and Anti-Violence Coordinating
            81895     Council.
            81896         (b) "Drug Offender Reform Act" and "act" mean the screening, assessment, and
            81897     substance abuse treatment provided to:
            81898         (i) convicted offenders under Subsection 77-18-1.1 (2) with funds appropriated by the
            81899     Legislature under Subsection 77-18-1.1 (4); and
            81900         (ii) offenders released on parole under Subsection 77-27-9 (2)(g)(iv).
            81901         (c) "Substance abuse authority" has the same meaning as in Section 17-43-201 .

            81902         (2) The council shall provide ongoing oversight of the implementation and functions of
            81903     the Drug Offender Reform Act.
            81904         (3) The council shall evaluate the impact and results of the Drug Offender Reform Act.
            81905         (4) The council shall develop an implementation plan for the Drug Offender Reform
            81906     Act. The plan shall:
            81907         (a) include guidelines on how funds appropriated under the act should be used;
            81908         (b) require that treatment plans under the act are appropriate for criminal offenders;
            81909         (c) include guidelines on the membership of local planning groups; and
            81910         (d) include guidelines on the membership of the Department of Corrections' planning
            81911     group under Subsection (6).
            81912         (5) (a) Each local substance abuse authority shall establish a local planning group and
            81913     shall submit a plan to the council detailing how the authority proposes to use the Drug Offender
            81914     Reform Act funds. The uses shall be in accordance with the guidelines established by the
            81915     council under Subsection (4).
            81916         (b) Upon approval of the plan by the council, the Department of Human Services shall
            81917     allocate the funds.
            81918         (c) Local substance abuse authorities shall annually submit to the Department of Human
            81919     Services and to the council reports detailing use of the funds and the impact and results of the
            81920     use of the funds.
            81921         (6) (a) The Department of Corrections shall establish a planning group and shall submit
            81922     a plan to the council detailing how the department proposes to use the Drug Offender Reform
            81923     Act funds. The uses shall be in accordance with the guidelines established by the council under
            81924     Subsection (4).
            81925         (b) The Department of Corrections shall annually submit to the council a report
            81926     detailing use of the funds and the impact and results of the use of the funds.
            81927         Section 1958. Section 63M-7-306 , which is renumbered from Section 63-25a-207 is
            81928     renumbered and amended to read:
            81929          [63-25a-207].     63M-7-306. Staffing.

            81930         The Commission on Criminal and Juvenile Justice shall provide staff to the council and
            81931     any subcommittees established by the council.
            81932         Section 1959. Section 63M-7-401 , which is renumbered from Section 63-25a-301 is
            81933     renumbered and amended to read:
            81934     
Part 4. Sentencing Commission

            81935          [63-25a-301].     63M-7-401. Creation -- Members -- Appointment --
            81936      Qualifications.
            81937         (1) There is created a state commission to be known as the Sentencing Commission
            81938     composed of 27 members. The commission shall develop by-laws and rules in compliance with
            81939     [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and elect its
            81940     officers.
            81941         (2) The commission's members shall be:
            81942         (a) two members of the House of Representatives, appointed by the speaker of the
            81943     House and not of the same political party;
            81944         (b) two members of the Senate, appointed by the president of the Senate and not of the
            81945     same political party;
            81946         (c) the executive director of the Department of Corrections or a designee appointed by
            81947     the executive director;
            81948         (d) the director of the Division of Juvenile Justice Services or a designee appointed by
            81949     the director;
            81950         (e) the executive director of the Commission on Criminal and Juvenile Justice or a
            81951     designee appointed by the executive director;
            81952         (f) the chair of the Board of Pardons and Parole or a designee appointed by the chair;
            81953         (g) the chair of the Youth Parole Authority or a designee appointed by the chair;
            81954         (h) two trial judges and an appellate judge appointed by the chair of the Judicial
            81955     Council;
            81956         (i) two juvenile court judges designated by the chair of the Judicial Council;
            81957         (j) an attorney in private practice who is a member of the Utah State Bar, experienced

            81958     in criminal defense, and appointed by the Utah Bar Commission;
            81959         (k) an attorney who is a member of the Utah State Bar, experienced in the defense of
            81960     minors in juvenile court, and appointed by the Utah Bar Commission;
            81961         (l) the director of Salt Lake Legal Defenders or a designee appointed by the director;
            81962         (m) the attorney general or a designee appointed by the attorney general;
            81963         (n) a criminal prosecutor appointed by the Statewide Association of Public Attorneys;
            81964         (o) a juvenile court prosecutor appointed by the Statewide Association of Public
            81965     Attorneys;
            81966         (p) a representative of the Utah Sheriff's Association appointed by the governor;
            81967         (q) a chief of police appointed by the governor;
            81968         (r) a licensed professional appointed by the governor who assists in the rehabilitation of
            81969     adult offenders;
            81970         (s) a licensed professional appointed by the governor who assists in the rehabilitation of
            81971     juvenile offenders;
            81972         (t) two members from the public appointed by the governor who exhibit sensitivity to
            81973     the concerns of victims of crime and the ethnic composition of the population; and
            81974         (u) one member from the public at large appointed by the governor.
            81975         Section 1960. Section 63M-7-402 , which is renumbered from Section 63-25a-302 is
            81976     renumbered and amended to read:
            81977          [63-25a-302].     63M-7-402. Terms of members -- Vacancies --
            81978      Reappointment.
            81979         (1) (a) Except as required by Subsection (1)(b), as terms of current commission
            81980     members expire, the appointing authority shall appoint each new member or reappointed
            81981     member to a four-year term.
            81982         (b) Notwithstanding the requirements of Subsection (1)(a), the appointing authority
            81983     shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the
            81984     terms of commission members are staggered so that approximately half of the commission is
            81985     appointed every two years.

            81986         (2) When a vacancy occurs in the membership for any reason, the replacement shall be
            81987     appointed for the unexpired term.
            81988         (3) All members of the commission, including those appointed before July 1, 1995, shall
            81989     be eligible for reappointment one time.
            81990         Section 1961. Section 63M-7-403 , which is renumbered from Section 63-25a-303 is
            81991     renumbered and amended to read:
            81992          [63-25a-303].     63M-7-403. Vacancies.
            81993         If a commission member no longer holds a qualifying position, resigns, or is unable to
            81994     serve, the vacancy shall be filled by the appointing authority.
            81995         Section 1962. Section 63M-7-404 , which is renumbered from Section 63-25a-304 is
            81996     renumbered and amended to read:
            81997          [63-25a-304].     63M-7-404. Purpose -- Duties.
            81998         The purpose of the commission shall be to develop guidelines and propose
            81999     recommendations to the Legislature, the governor, and the Judicial Council about the
            82000     sentencing and release of juvenile and adult offenders in order to:
            82001         (1) respond to public comment;
            82002         (2) relate sentencing practices and correctional resources;
            82003         (3) increase equity in criminal sentencing;
            82004         (4) better define responsibility in criminal sentencing; and
            82005         (5) enhance the discretion of sentencing judges while preserving the role of the Board
            82006     of Pardons and Parole and the Youth Parole Authority.
            82007         Section 1963. Section 63M-7-405 , which is renumbered from Section 63-25a-305 is
            82008     renumbered and amended to read:
            82009          [63-25a-305].     63M-7-405. Compensation of members -- Reports to the
            82010      Legislature, the courts, and the governor.
            82011         (1) (a) (i) Members who are not government employees shall receive no compensation
            82012     or benefits for their services, but may receive per diem and expenses incurred in the
            82013     performance of the member's official duties at the rates established by the Division of Finance

            82014     under Sections 63A-3-106 and 63A-3-107 .
            82015         (ii) Members may decline to receive per diem and expenses for their service.
            82016         (b) (i) State government officer and employee members who do not receive salary, per
            82017     diem, or expenses from their agency for their service may receive per diem and expenses
            82018     incurred in the performance of their official duties from the commission at the rates established
            82019     by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            82020         (ii) State government officer and employee members may decline to receive per diem
            82021     and expenses for their service.
            82022         (2) The commission shall submit to the Legislature, the courts, and to the governor at
            82023     least 60 days prior to the annual general session of the Legislature its reports and
            82024     recommendations for sentencing guidelines and amendments. It is intended that the commission
            82025     utilize existing data and resources from state criminal justice agencies. The commission is
            82026     authorized to employ professional assistance and other staff members as it considers necessary
            82027     or desirable.
            82028         (3) The commission shall be responsive to all three branches of government, but be part
            82029     of the Commission on Criminal and Juvenile Justice for coordination on criminal and juvenile
            82030     justice issues, budget, and administrative support.
            82031         Section 1964. Section 63M-7-406 , which is renumbered from Section 63-25a-306 is
            82032     renumbered and amended to read:
            82033          [63-25a-306].     63M-7-406. Publication of reports.
            82034         The commission shall also be authorized to prepare, publish, and distribute from time to
            82035     time reports of its studies, recommendations, and statements.
            82036         Section 1965. Section 63M-7-501 , which is renumbered from Section 63-25a-401 is
            82037     renumbered and amended to read:
            82038     
Part 5. Crime Victims' Reparations Act

            82039          [63-25a-401].     63M-7-501. Title.
            82040         This part is known as the "Crime Victims' Reparations Act" and may be abbreviated as
            82041     the "CVRA."

            82042         Section 1966. Section 63M-7-502 , which is renumbered from Section 63-25a-402 is
            82043     renumbered and amended to read:
            82044          [63-25a-402].     63M-7-502. Definitions.
            82045         As used in this chapter:
            82046         (1) "Accomplice" means a person who has engaged in criminal conduct as defined in
            82047     Section 76-2-202 .
            82048         (2) "Board" means the Crime Victims' Reparations Board created under Section
            82049     [ 63-25a-404 ] 63M-7-504 .
            82050         (3) "Bodily injury" means physical pain, illness, or any impairment of physical condition.
            82051         (4) "Claim" means:
            82052         (a) the victim's application or request for a reparations award; and
            82053         (b) the formal action taken by a victim to apply for reparations pursuant to Sections
            82054     [ 63-25a-401 ] 63M-7-501 through [ 63-25a-428 ] 63M-7-525 .
            82055         (5) "Claimant" means any of the following claiming reparations under this chapter:
            82056         (a) a victim;
            82057         (b) a dependent of a deceased victim;
            82058         (c) a representative other than a collateral source; or
            82059         (d) the person or representative who files a claim on behalf of a victim.
            82060         (6) "Child" means an unemancipated person who is under 18 years of age.
            82061         (7) "Collateral source" means the definition as provided in Section [ 63-25a-413 ]
            82062      63M-7-513 .
            82063         (8) "Contested case" means a case which the claimant contests, claiming the award was
            82064     either inadequate or denied, or which a county attorney, a district attorney, a law enforcement
            82065     officer, or other individual related to the criminal investigation proffers reasonable evidence of
            82066     the claimant's lack of cooperation in the prosecution of a case after an award has already been
            82067     given.
            82068         (9) (a) "Criminally injurious conduct" other than acts of war declared or not declared
            82069     means conduct that:

            82070         (i) is or would be subject to prosecution in this state under Section 76-1-201 ;
            82071         (ii) occurs or is attempted;
            82072         (iii) causes, or poses a substantial threat of causing, bodily injury or death;
            82073         (iv) is punishable by fine, imprisonment, or death if the person engaging in the conduct
            82074     possessed the capacity to commit the conduct; and
            82075         (v) does not arise out of the ownership, maintenance, or use of a motor vehicle, aircraft,
            82076     or water craft, unless the conduct is intended to cause bodily injury or death, or is conduct
            82077     which is or would be punishable under Title 76, Chapter 5, Offenses Against the Person, or as
            82078     any offense chargeable as driving under the influence of alcohol or drugs.
            82079         (b) "Criminally injurious conduct" includes an act of terrorism, as defined in 18 U.S.C.
            82080     2331 committed outside of the United States against a resident of this state. "Terrorism" does
            82081     not include an "act of war" as defined in 18 U.S.C. 2331.
            82082         (10) "Dependent" means a natural person to whom the victim is wholly or partially
            82083     legally responsible for care or support and includes a child of the victim born after [his] the
            82084     victim's death.
            82085         (11) "Dependent's economic loss" means loss after the victim's death of contributions of
            82086     things of economic value to [his] the victim's dependent, not including services the dependent
            82087     would have received from the victim if [he] the victim had not suffered the fatal injury, less
            82088     expenses of the dependent avoided by reason of victim's death.
            82089         (12) "Dependent's replacement services loss" means loss reasonably and necessarily
            82090     incurred by the dependent after the victim's death in obtaining services in lieu of those the
            82091     decedent would have performed for [his] the victim's benefit if [he] the victim had not suffered
            82092     the fatal injury, less expenses of the dependent avoided by reason of the victim's death and not
            82093     subtracted in calculating the dependent's economic loss.
            82094         (13) "Director" means the director of the Reparations Office.
            82095         (14) "Disposition" means the sentencing or determination of penalty or punishment to
            82096     be imposed upon a person:
            82097         (a) convicted of a crime;

            82098         (b) found delinquent; or
            82099         (c) against whom a finding of sufficient facts for conviction or finding of delinquency is
            82100     made.
            82101         (15) "Economic loss" means economic detriment consisting only of allowable expense,
            82102     work loss, replacement services loss, and if injury causes death, dependent's economic loss and
            82103     dependent's replacement service loss. Noneconomic detriment is not loss, but economic
            82104     detriment is loss although caused by pain and suffering or physical impairment.
            82105         (16) "Elderly victim" means a person 60 years of age or older who is a victim.
            82106         (17) "Fraudulent claim" means a filed claim based on material misrepresentation of fact
            82107     and intended to deceive the reparations staff for the purpose of obtaining reparation funds for
            82108     which the claimant is not eligible as provided in Section [ 63-25a-410 ] 63M-7-510 .
            82109         (18) "Fund" means the Crime Victim Reparation Fund created in Section [ 63-63a-4 ]
            82110      51-9-404 .
            82111         (19) "Law enforcement officer" means a law enforcement officer as defined in Section
            82112      53-13-103 .
            82113         (20) "Medical examination" means a physical examination necessary to document
            82114     criminally injurious conduct but does not include mental health evaluations for the prosecution
            82115     and investigation of a crime.
            82116         (21) "Mental health counseling" means outpatient and inpatient counseling necessitated
            82117     as a result of criminally injurious conduct. The definition of mental health counseling is subject
            82118     to rules promulgated by the board pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3,
            82119     Utah Administrative Rulemaking Act.
            82120         (22) "Misconduct" as provided in Subsection [ 63-25a-412 ] 63M-7-512 (1)(b) means
            82121     conduct by the victim which was attributable to the injury or death of the victim as provided by
            82122     rules promulgated by the board pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            82123     Administrative Rulemaking Act.
            82124         (23) "Noneconomic detriment" means pain, suffering, inconvenience, physical
            82125     impairment, and other nonpecuniary damage, except as provided in this chapter.

            82126         (24) "Pecuniary loss" does not include loss attributable to pain and suffering except as
            82127     otherwise provided in this chapter.
            82128         (25) "Offender" means a person who has violated the criminal code through criminally
            82129     injurious conduct regardless of whether [he] the person is arrested, prosecuted, or convicted.
            82130         (26) "Offense" means a violation of the criminal code.
            82131         (27) "Perpetrator" means the person who actually participated in the criminally injurious
            82132     conduct.
            82133         (28) "Personal property" has the same definition as provided in Section 68-3-12 .
            82134         (29) "Reparations Office" means the office of the reparations staff for the purpose of
            82135     carrying out this chapter.
            82136         (30) "Reparations officer" means a person employed by the Reparations Office to
            82137     investigate claims of victims and award reparations under this chapter, and includes the director
            82138     when [he] the director is acting as a reparations officer.
            82139         (31) "Reparations staff" means the director, the reparations officers, and any other staff
            82140     employed to administer the Crime Victims' Reparations Act.
            82141         (32) "Replacement service loss" means expenses reasonably and necessarily incurred in
            82142     obtaining ordinary and necessary services in lieu of those the injured person would have
            82143     performed, not for income but the benefit of [himself] the injured person or [his] the injured
            82144     person's dependents if [he] the injured person had not been injured.
            82145         (33) "Representative" means the victim, immediate family member, legal guardian,
            82146     attorney, conservator, executor, or an heir of a person but does not include service providers.
            82147         (34) "Restitution" means money or services an appropriate authority orders an offender
            82148     to pay or render to a victim of the offender's conduct.
            82149         (35) "Secondary victim" means a person who is traumatically affected by the criminally
            82150     injurious conduct subject to rules promulgated by the board pursuant to [Title 63, Chapter 46a]
            82151     Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
            82152         (36) "Service provider" means a person or agency who provides a service to crime
            82153     victims for a monetary fee except attorneys as provided in Section [ 63-25a-424 ] 63M-7-524 .

            82154         (37) (a) "Victim" means a person who suffers bodily or psychological injury or death as
            82155     a direct result of criminally injurious conduct or of the production of pornography in violation
            82156     of Sections 76-5a-1 through 76-5a-4 if the person is a minor.
            82157         (b) "Victim" does not include a person who participated in or observed the judicial
            82158     proceedings against an offender unless otherwise provided by statute or rule.
            82159         (c) "Victim" includes a resident of this state who is injured or killed by an act of
            82160     terrorism, as defined in 18 U.S.C. 2331, committed outside of the United States.
            82161         (38) "Work loss" means loss of income from work the injured victim would have
            82162     performed if [he] the injured victim had not been injured and expenses reasonably incurred by
            82163     [him] the injured victim in obtaining services in lieu of those [he] the injured victim would have
            82164     performed for income, reduced by any income from substitute work [he] the injured victim was
            82165     capable of performing but unreasonably failed to undertake.
            82166         Section 1967. Section 63M-7-503 , which is renumbered from Section 63-25a-403 is
            82167     renumbered and amended to read:
            82168          [63-25a-403].     63M-7-503. Restitution -- Reparations not to supplant
            82169      restitution -- Assignment of claim for restitution judgment to Reparations Office.
            82170         (1) A reparations award shall not supplant restitution as established under Title 77,
            82171     Chapter 38a, Crime Victims Restitution Act, or as established by any other provisions.
            82172         (2) The court shall not consider a reparations award when determining the order of
            82173     restitution nor when enforcing restitution.
            82174         (3) If, due to reparation payments to a victim, the Reparations Office is assigned under
            82175     Section [ 63-25a-419 ] 63M-7-519 a claim for the victim's judgment for restitution or a portion
            82176     of the restitution, the Reparations Office may file with the sentencing court a notice of the
            82177     assignment. The notice of assignment shall be signed by the victim and a Reparations Officer
            82178     and shall state the amount of the claim assigned.
            82179         (4) Upon conviction and sentencing of the defendant, the court shall enter a civil
            82180     judgment for complete restitution as provided in Section 77-38a-401 and identify the
            82181     Reparations Office as the assignee of the assigned portion of the judgment.

            82182         (5) If the notice of assignment is filed after sentencing, the court shall modify the civil
            82183     judgment for restitution to identify the Reparations Office as the assignee of the assigned
            82184     portion of the judgment.
            82185         Section 1968. Section 63M-7-504 , which is renumbered from Section 63-25a-404 is
            82186     renumbered and amended to read:
            82187          [63-25a-404].     63M-7-504. Crime Victims' Reparations Board -- Members.
            82188         (1) (a) A Crime Victims' Reparations Board is created, consisting of seven members
            82189     appointed by the governor with the consent of the Senate.
            82190         (b) The membership of the board shall consist of:
            82191         (i) a member of the bar of this state;
            82192         (ii) a victim of criminally injurious conduct;
            82193         (iii) a licensed physician;
            82194         (iv) a representative of law enforcement;
            82195         (v) a mental health care provider; and
            82196         (vi) two other private citizens.
            82197         (c) The governor may appoint a chair of the board who shall serve for a period of time
            82198     prescribed by the governor, not to exceed the length of the chair's term. The board may elect a
            82199     vice chair to serve in the absence of the chair.
            82200         (d) The board may hear appeals from administrative decisions as provided in rules
            82201     adopted pursuant to Section [ 63-25a-415 ] 63M-7-515 .
            82202         (2) (a) Except as required by Subsection (2)(b), as terms of current board members
            82203     expire, the governor shall appoint each new member or reappointed member to a four-year
            82204     term.
            82205         (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
            82206     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
            82207     board members are staggered so that approximately half of the board is appointed every two
            82208     years.
            82209         (c) A member may be reappointed to one successive term.

            82210         (3) (a) When a vacancy occurs in the membership for any reason, the replacement shall
            82211     be appointed for the unexpired term.
            82212         (b) A member resigning from the board shall serve until [his] the member's successor is
            82213     appointed and qualified.
            82214         (4) (a) (i) Members who are not government employees shall receive no compensation
            82215     or benefits for their services, but may receive per diem and expenses incurred in the
            82216     performance of the member's official duties at the rates established by the Division of Finance
            82217     under Sections 63A-3-106 and 63A-3-107 .
            82218         (ii) Members may decline to receive per diem and expenses for their service.
            82219         (b) (i) State government officer and employee members who do not receive salary, per
            82220     diem, or expenses from their agency for their service may receive per diem and expenses
            82221     incurred in the performance of their official duties from the board at the rates established by the
            82222     Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            82223         (ii) State government officer and employee members may decline to receive per diem
            82224     and expenses for their service.
            82225         (5) The board shall meet at least once quarterly but may meet more frequently as
            82226     necessary.
            82227         Section 1969. Section 63M-7-505 , which is renumbered from Section 63-25a-405 is
            82228     renumbered and amended to read:
            82229          [63-25a-405].     63M-7-505. Board and office within Commission on
            82230      Criminal and Juvenile Justice.
            82231         (1) The Crime Victims' Reparations Board and Reparations Office are placed within the
            82232     Commission on Criminal and Juvenile Justice for the provision by the commission of
            82233     administrative and support services to the Reparations Office.
            82234         (2) The board or the director may request assistance from the Commission on Criminal
            82235     and Juvenile Justice, the Department of Public Safety, and other state agencies in conducting
            82236     research or monitoring victims' programs.
            82237         (3) The fund shall appear as a separate line item in the Commission on Criminal and

            82238     Juvenile Justice budget.
            82239         Section 1970. Section 63M-7-506 , which is renumbered from Section 63-25a-406 is
            82240     renumbered and amended to read:
            82241          [63-25a-406].     63M-7-506. Functions of board.
            82242         (1) The Crime Victim Reparations Board shall:
            82243         (a) adopt a description of the organization and prescribe the general operation of the
            82244     board;
            82245         (b) prescribe policy for the Office of Crime Victim Reparations;
            82246         (c) adopt rules to implement and administer Sections [ 63-25a-401 ] 63M-7-501 through
            82247     [ 63-25a-428 ] 63M-7-525 pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            82248     Administrative Rulemaking Act, which may include setting of ceilings on reparations, defining
            82249     of terms not specifically stated in this chapter, and establishing of rules governing attorney fees;
            82250         (d) prescribe forms for applications for reparations;
            82251         (e) review all awards made by the reparations staff, although the board may not reverse
            82252     or modify awards authorized by the reparations staff;
            82253         (f) render an annual report to the governor and the Legislature regarding the staff's and
            82254     the board's activities;
            82255         (g) cooperate with the director and [his] the director's staff in formulating standards for
            82256     the uniform application of Section [ 63-25a-409 ] 63M-7-509 , taking into consideration the rates
            82257     and amounts of reparation payable for injuries and death under other laws of this state and the
            82258     United States;
            82259         (h) allocate monies available in the Crime Victim Reparations Fund to victims of
            82260     criminally injurious conduct for reparations claims; and
            82261         (i) allocate monies available to other victim services as provided by administrative rule
            82262     once a sufficient reserve has been established for reparation claims.
            82263         (2) All rules, or other statements of policy, along with application forms specified by the
            82264     board, are binding upon the director, the reparations officers, and other staff.
            82265         Section 1971. Section 63M-7-507 , which is renumbered from Section 63-25a-407 is

            82266     renumbered and amended to read:
            82267          [63-25a-407].     63M-7-507. Director -- Appointment and functions.
            82268         The executive director of the Commission on Criminal and Juvenile Justice, after
            82269     consulting with the board, shall appoint a director to carry out the provisions of this chapter.
            82270     The director shall be an experienced administrator with a background in at least one of the
            82271     following fields: social work, psychology, criminal justice, law, or a related field. The director
            82272     shall demonstrate an understanding of the needs of crime victims and of services to victims.
            82273     The director shall devote [his] the director's time and capacity to [his] the director's duties. The
            82274     director shall:
            82275         (1) hire staff, including reparations officers, as necessary;
            82276         (2) act when necessary as a reparations officer in deciding initial claims;
            82277         (3) possess the same investigation and decision-making authority as the reparations
            82278     officers;
            82279         (4) hear appeals from the decisions of the reparations officers, unless [he] the director
            82280     acted as a reparations officer on the initial claim;
            82281         (5) serve as a liaison between the reparations staff and the Reparations Office;
            82282         (6) serve as the public relations representative of the Reparations Office;
            82283         (7) provide for payment of all administrative salaries, fees, and expenses incurred by the
            82284     staff of the board, to be paid out of appropriations from the fund;
            82285         (8) cooperate with the state treasurer and the state Division of Finance in causing the
            82286     funds in the trust fund to be invested and its investments sold or exchanged and the proceeds
            82287     and income collected;
            82288         (9) apply for, receive, allocate, disburse, and account for grants of funds made available
            82289     by the United States, the state, foundations, corporations, and other businesses, agencies, or
            82290     individuals;
            82291         (10) obtain and utilize the services of other governmental agencies upon request; and
            82292         (11) act in any other capacity or perform any other acts necessary for the Reparations
            82293     Office or board to successfully fulfill its statutory objectives.

            82294         Section 1972. Section 63M-7-508 , which is renumbered from Section 63-25a-408 is
            82295     renumbered and amended to read:
            82296          [63-25a-408].     63M-7-508. Reparations officers.
            82297         The reparations officers shall in addition to any assignments made by the director of the
            82298     Reparations Office:
            82299         (1) hear and determine all matters relating to claims for reparations and reinvestigate or
            82300     reopen claims without regard to statutes of limitation or periods of prescription;
            82301         (2) obtain from prosecuting attorneys, law enforcement officers, and other criminal
            82302     justice agencies, investigations and data to enable the reparations officer to determine whether
            82303     and to what extent a claimant qualifies for reparations;
            82304         (3) hold hearings, administer oaths or affirmations, examine any person under oath or
            82305     affirmation, issue subpoenas requiring the attendance and giving of testimony of witnesses,
            82306     require the production of any books, papers, documents, or other evidence which may
            82307     contribute to the reparations officer's ability to determine particular reparation awards;
            82308         (4) determine who is a victim or dependent;
            82309         (5) award reparations or other benefits determined to be due under this chapter and the
            82310     rules of the board;
            82311         (6) take notice of judicially recognized facts and general, technical, and scientific facts
            82312     within their specialized knowledge;
            82313         (7) advise and assist the board in developing policies recognizing the rights, needs, and
            82314     interests of crime victims;
            82315         (8) render periodic reports as requested by the board concerning:
            82316         (a) the officers' activities; and
            82317         (b) the manner in which the rights, needs, and interests of crime victims are being
            82318     addressed by the state's criminal justice system;
            82319         (9) establish priorities for assisting elderly victims of crime or those victims facing
            82320     extraordinary hardships;
            82321         (10) cooperate with the Commission on Criminal and Juvenile Justice to develop

            82322     information regarding crime victims' problems and programs; and
            82323         (11) assist the director in publicizing the provisions of the Crime Victims' Reparations
            82324     Act, including the procedures for obtaining reparation, and in encouraging law enforcement
            82325     agencies, health providers, and other related officials to take reasonable care to ensure that
            82326     victims are informed about the provisions of this chapter and the procedure for applying for
            82327     reparation.
            82328         Section 1973. Section 63M-7-509 , which is renumbered from Section 63-25a-409 is
            82329     renumbered and amended to read:
            82330          [63-25a-409].     63M-7-509. Grounds for eligibility.
            82331         In order to be eligible for a reparations award under this chapter:
            82332         (1) The claimant shall be:
            82333         (a) a victim of criminally injurious conduct;
            82334         (b) a dependent of a deceased victim of criminally injurious conduct; or
            82335         (c) a representative acting on behalf of one of the above.
            82336         (2) The victim shall be either a resident of Utah or the criminally injurious conduct shall
            82337     have occurred in Utah.
            82338         (3) The application shall be made in writing in a form that conforms substantially to that
            82339     prescribed by the board.
            82340         (4) The criminally injurious conduct shall be reported to a law enforcement officer, in
            82341     [his] the law enforcement officer's capacity as a law enforcement officer, or other federal or
            82342     state investigative agencies.
            82343         (5) (a) The claimant or victim shall cooperate with the appropriate law enforcement
            82344     agencies in their efforts to apprehend or convict the perpetrator of the alleged offense.
            82345         (b) An award to a victim may be made whether any person is arrested, prosecuted, or
            82346     convicted of the criminally injurious conduct giving rise to the claim.
            82347         (6) The criminally injurious conduct shall have occurred after December 31, 1986.
            82348         Section 1974. Section 63M-7-510 , which is renumbered from Section 63-25a-410 is
            82349     renumbered and amended to read:

            82350          [63-25a-410].     63M-7-510. Ineligible persons -- Fraudulent claims --
            82351      Penalties.
            82352         (1) The following individuals shall not be eligible to receive an award of reparations:
            82353         (a) persons who do not meet all of the provisions set forth in Section [ 63-25a-409 ]
            82354      63M-7-509 ;
            82355         (b) the offender;
            82356         (c) an accomplice of the offender;
            82357         (d) any person whose receipt of an award would unjustly benefit the offender,
            82358     accomplice, or other person reasonably suspected of participating in the offense;
            82359         (e) the victim of a motor vehicle injury who was the owner or operator of the motor
            82360     vehicle and was not at the time of the injury in compliance with the state motor vehicle
            82361     insurance laws;
            82362         (f) any convicted offender serving a sentence of imprisonment for that conviction or
            82363     residing in any other institution which provides for the maintenance of convicted persons; and
            82364         (g) residents of halfway houses or any other correctional facilities and all persons who
            82365     are on probation or parole if the circumstances surrounding the offense of which they are
            82366     victims constitute a violation of their parole or probation.
            82367         (2) A person who knowingly submits a fraudulent claim for reparations or who
            82368     knowingly misrepresents material facts in making a claim, and who receives an award based on
            82369     that claim, is guilty of an offense, based on the following award amounts:
            82370         (a) for value under $300, a class B misdemeanor;
            82371         (b) for value equal to or greater than $300, but less than $1,000, a class A
            82372     misdemeanor;
            82373         (c) for value equal to or greater than $1,000, but less than $5,000, a third degree felony;
            82374     and
            82375         (d) for value equal to or greater than $5,000, a second degree felony.
            82376         (3) A person who submits a claim described in Subsection (2) but receives no award
            82377     based on that claim is guilty of a class B misdemeanor.

            82378         (4) The state attorney general may prosecute violations under this section or may make
            82379     arrangements with county attorneys for the prosecution of violations under this section when
            82380     the attorney general cannot conveniently prosecute.
            82381         (5) The state may also bring a civil action against a claimant who receives reparation
            82382     payments that are later found to be unjustified and who does not return to the board the
            82383     unjustified amount.
            82384         Section 1975. Section 63M-7-511 , which is renumbered from Section 63-25a-411 is
            82385     renumbered and amended to read:
            82386          [63-25a-411].     63M-7-511. Compensable losses and amounts.
            82387         A reparations award under this chapter may be made if:
            82388         (1) the reparations officer finds the claim satisfies the requirements for the award under
            82389     the provisions of this chapter and the rules of the board;
            82390         (2) monies are available in the fund;
            82391         (3) the person for whom the award of reparations is to be paid is otherwise eligible
            82392     under this act;
            82393         (4) the claim is for an allowable expense incurred by the victim, as follows:
            82394         (a) reasonable and necessary charges incurred for products, services, and
            82395     accommodations;
            82396         (b) inpatient and outpatient medical treatment and physical therapy, subject to rules
            82397     promulgated by the board pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            82398     Administrative Rulemaking Act;
            82399         (c) mental health counseling which:
            82400         (i) is set forth in a mental health treatment plan which has been approved prior to any
            82401     payment by a reparations officer; and
            82402         (ii) qualifies within any further rules promulgated by the board pursuant to [Title 63,
            82403     Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
            82404         (d) actual loss of past earnings and anticipated loss of future earnings because of a
            82405     death or disability resulting from the personal injury at a rate not to exceed 66-2/3% of the

            82406     person's weekly gross salary or wages or the maximum amount allowed under the state workers'
            82407     compensation statute;
            82408         (e) care of minor children enabling a victim or spouse of a victim, but not both of them,
            82409     to continue gainful employment at a rate per child per week as determined under rules
            82410     established by the board;
            82411         (f) funeral and burial expenses for death caused by the criminally injurious conduct,
            82412     subject to rules promulgated by the board pursuant to [Title 63, Chapter 46a] Title 63G,
            82413     Chapter 3, Utah Administrative Rulemaking Act;
            82414         (g) loss of support to the dependent or dependents not otherwise compensated for a
            82415     pecuniary loss for personal injury, for as long as the dependence would have existed had the
            82416     victim survived, at a rate not to exceed 66-2/3% of the person's weekly salary or wages or the
            82417     maximum amount allowed under the state workers' compensation statute, whichever is less;
            82418         (h) personal property necessary and essential to the health or safety of the victim as
            82419     defined by rules promulgated by the board pursuant to [Title 63, Chapter 46a] Title 63G,
            82420     Chapter 3, Utah Administrative Rulemaking Act; and
            82421         (i) medical examinations as defined in Section [ 63-25a-402 ] 63M-7-502 , subject to
            82422     rules promulgated by the board pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            82423     Administrative Rulemaking Act, which may allow for exemptions from Sections [ 63-25a-409 ]
            82424      63M-7-509 , [ 63-25a-412 ] 63M-7-512 , and [ 63-25a-413 ] 63M-7-513 .
            82425         (5) If a Utah resident suffers injury or death as a result of criminally injurious conduct
            82426     inflicted in a state, territory, or country that does not provide a reciprocal crime victims'
            82427     compensation program, the Utah resident has the same rights under this chapter as if the
            82428     injurious conduct occurred in this state.
            82429         (6) An award of reparations shall not exceed $25,000 in the aggregate unless the victim
            82430     is entitled to proceeds in excess of that amount as provided in Subsection 77-38a-403 (2).
            82431     However, reparations for actual medical expenses incurred as a result of homicide, attempted
            82432     homicide, aggravated assault, or DUI offenses, may be awarded up to $50,000 in the aggregate.
            82433         Section 1976. Section 63M-7-512 , which is renumbered from Section 63-25a-412 is

            82434     renumbered and amended to read:
            82435          [63-25a-412].     63M-7-512. Reparations reduction.
            82436         (1) Reparations otherwise payable to a claimant may be reduced or denied as follows:
            82437         (a) the economic loss upon which the claim is based has been or could be recouped
            82438     from other persons, including collateral sources, and the victim was not entitled to nor receiving
            82439     monies prior to the criminally injurious conduct giving rise to the claim under this chapter;
            82440         (b) the reparations officer considers the claim unreasonable because of the misconduct
            82441     of the claimant or of a victim through whom [he] the claimant claims; or
            82442         (c) the victim had not used a facility or health care provider that would be covered by a
            82443     collateral source.
            82444         (2) When two or more dependents are entitled to an award as a result of a victim's
            82445     death, the award shall be apportioned by the reparations officer among the dependents.
            82446         Section 1977. Section 63M-7-513 , which is renumbered from Section 63-25a-413 is
            82447     renumbered and amended to read:
            82448          [63-25a-413].     63M-7-513. Collateral sources.
            82449         (1) Collateral source shall include any source of benefits or advantages for economic
            82450     loss otherwise reparable under this chapter which the victim or claimant has received, or which
            82451     is readily available to the victim from:
            82452         (a) the offender;
            82453         (b) the insurance of the offender;
            82454         (c) the United States government or any of its agencies, a state or any of its political
            82455     subdivisions, or an instrumentality of two or more states, except in the case on nonobligatory
            82456     state-funded programs;
            82457         (d) social security, Medicare, and Medicaid;
            82458         (e) state-required temporary nonoccupational income replacement insurance or
            82459     disability income insurance;
            82460         (f) workers' compensation;
            82461         (g) wage continuation programs of any employer;

            82462         (h) proceeds of a contract of insurance payable to the victim for the loss [he] the victim
            82463     sustained because of the criminally injurious conduct;
            82464         (i) a contract providing prepaid hospital and other health care services or benefits for
            82465     disability; or
            82466         (j) veteran's benefits, including veteran's hospitalization benefits.
            82467         (2) (a) An order of restitution shall not be considered readily available as a collateral
            82468     source.
            82469         (b) Receipt of an award of reparations under this chapter shall be considered an
            82470     assignment of the victim's rights to restitution from the offender.
            82471         (3) The victim shall not discharge a claim against a person or entity without the state's
            82472     written permission and shall fully cooperate with the state in pursuing its right of
            82473     reimbursement, including providing the state with any evidence in [his] the victim's possession.
            82474         (4) The state's right of reimbursement applies regardless of whether the victim has been
            82475     fully compensated for [his] the victim's losses.
            82476         (5) Notwithstanding the collateral source provisions in Subsection (1) and Subsection
            82477     [ 63-25a-412 ] 63M-7-512 (1)(a), a victim of a sexual offense who requests testing of himself may
            82478     be reimbursed for the costs of the HIV test only as provided in Subsection 76-5-503 (4).
            82479         Section 1978. Section 63M-7-514 , which is renumbered from Section 63-25a-414 is
            82480     renumbered and amended to read:
            82481          [63-25a-414].     63M-7-514. Notification of claimant -- Suspension of
            82482      proceedings.
            82483         (1) The Reparations Office shall immediately notify the claimant in writing of any
            82484     decision and shall forward to the Division of Finance a certified copy of the decision and a
            82485     warrant request for the amount of the claim. The Division of Finance shall pay the claimant the
            82486     amount submitted to the division, out of the fund. If monies in the fund are temporarily
            82487     depleted, claimants entitled to receive awards shall be placed on a waiting list and shall receive
            82488     their awards as funds are available in the order in which their claims were awarded.
            82489         (2) The reparations officer may suspend the proceedings pending disposition of a

            82490     criminal prosecution that has been commenced or is imminent.
            82491         Section 1979. Section 63M-7-515 , which is renumbered from Section 63-25a-415 is
            82492     renumbered and amended to read:
            82493          [63-25a-415].     63M-7-515. Rules for contested claims -- Exemption from
            82494      Administrative Procedures Act.
            82495         (1) Rules for procedures for contested determinations by a reparations officer shall be
            82496     adopted pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
            82497     Rulemaking Act.
            82498         (2) Crime Victims' Reparations is exempt from [Title 63, Chapter 46b] Title 63G,
            82499     Chapter 4, Administrative Procedures Act.
            82500         Section 1980. Section 63M-7-516 , which is renumbered from Section 63-25a-416 is
            82501     renumbered and amended to read:
            82502          [63-25a-416].     63M-7-516. Waiver of privilege.
            82503         (1) A victim filing a claim under the provisions of this chapter shall be considered to
            82504     have waived any privilege as to communications or records relevant to an issue of the physical,
            82505     mental, or emotional conditions of the victim except for the attorney-client privilege. The
            82506     waiver shall apply only to reparations officers, the director of reparations, the board, and legal
            82507     counsel.
            82508         (2) The claimant may be required to supply any additional medical or psychological
            82509     reports available relating to the injury or death for which compensation is claimed.
            82510         (3) The reparations officer hearing a claim or an appeal from a claim shall make
            82511     available to the claimant a copy of the report. If the victim is deceased, the director or [his] the
            82512     director's appointee, on request, shall furnish the claimant a copy of the report unless
            82513     dissemination of that copy is prohibited by law.
            82514         Section 1981. Section 63M-7-517 , which is renumbered from Section 63-25a-417 is
            82515     renumbered and amended to read:
            82516          [63-25a-417].     63M-7-517. Additional testing.
            82517         (1) If the mental, physical, or emotional condition of a victim is material to a claim, the

            82518     reparations officer, director, or chair of the board who hears the claim or the appeal may order
            82519     the claimant to submit to a mental or physical examination by a physician or psychologist and
            82520     may recommend to the court to order an autopsy of a deceased victim.
            82521         (2) Any order for additional examination shall be for good cause shown and shall
            82522     provide notice to the person to be examined and [his] the person's representative.
            82523         (3) All reports from additional examinations shall set out findings, including results of
            82524     all tests made, diagnoses, prognoses, other conclusions, and reports of earlier examinations of
            82525     the same conditions.
            82526         (4) A copy of the report shall be made available to the victim or the representative of
            82527     the victim unless dissemination of that copy is prohibited by law.
            82528         Section 1982. Section 63M-7-518 , which is renumbered from Section 63-25a-418 is
            82529     renumbered and amended to read:
            82530          [63-25a-418].     63M-7-518. Failure to comply.
            82531         If a person refuses to comply with an order under this chapter or asserts a privilege,
            82532     except privileges arising from the attorney-client relationship, to withhold or suppress evidence
            82533     relevant to a claim, the director or reparations officer may make any appropriate determination
            82534     including denial of the claim.
            82535         Section 1983. Section 63M-7-519 , which is renumbered from Section 63-25a-419 is
            82536     renumbered and amended to read:
            82537          [63-25a-419].     63M-7-519. Assignment of recovery -- Reimbursement.
            82538         (1) By accepting an award of reparations, the victim automatically assigns to the state,
            82539     subject to the provisions of Subsection (2), all claims against any third party to the lesser of:
            82540         (a) the amount paid by the state; or
            82541         (b) the amount recovered from the third party.
            82542         (2) The board, with the concurrence of the director, may reduce the state's right of
            82543     reimbursement if it is determined that the reduction will benefit the fund.
            82544         (3) The state reserves the right to make a claim for reimbursement on behalf of the
            82545     victim and the victim shall not impair the state's claim or the state's right of reimbursement.

            82546         Section 1984. Section 63M-7-520 , which is renumbered from Section 63-25a-420 is
            82547     renumbered and amended to read:
            82548          [63-25a-420].     63M-7-520. Special verdict -- Allocation of damages.
            82549         In an action in a court of this state arising out of criminally injurious conduct, the judge,
            82550     on timely motion, shall direct the jury to return a special verdict, indicating separately the
            82551     awards to noneconomic detriment, punitive damages, and economic loss.
            82552         Section 1985. Section 63M-7-521 , which is renumbered from Section 63-25a-421 is
            82553     renumbered and amended to read:
            82554          [63-25a-421].     63M-7-521. Award -- Payment methods -- Claims against
            82555      the award.
            82556         (1) The reparations officer may provide for the payment of an award in a lump sum or
            82557     in installments. The part of an award equal to the amount of economic loss accrued to the date
            82558     of the award shall be paid in a lump sum. An award of allowable expense that would accrue
            82559     after an initial award is made may not be paid in a lump sum. Except as provided in Subsection
            82560     (2), the part of an award that may not be paid in a lump sum shall be paid in installments.
            82561         (2) At the request of the claimant, the reparations officer may convert future economic
            82562     loss installment payments, other than allowable expense, to a lump sum payment, discounted to
            82563     present value, but only upon a finding by the officer that the award in a lump sum will promote
            82564     the interests of the claimant.
            82565         (3) An award for future economic loss payable in installments may be made only for a
            82566     period for which the reparations officer can reasonably determine future economic loss. The
            82567     reparations officer may reconsider and modify an award for future economic loss payable in
            82568     installments, upon [his] the reparations officer's finding that a material and substantial change of
            82569     circumstances has occurred.
            82570         (4) An award is not subject to execution, attachment, or garnishment, except that an
            82571     award for allowable expense is not exempt from a claim of a creditor to the extent that [he] the
            82572     creditor provided products, services, or accommodations, the costs of which are included in the
            82573     award.

            82574         (5) An assignment or agreement to assign a right to reparations for loss accruing in the
            82575     future is unenforceable, except:
            82576         (a) an assignment of a right to reparations for work loss to secure payment of alimony,
            82577     maintenance, or child support;
            82578         (b) an assignment of a right to reparations for allowable expense to the extent that the
            82579     benefits are for the cost of products, services, or accommodations necessitated by the injury or
            82580     death on which the claim is based and are provided or to be provided by the assignee; or
            82581         (c) an assignment to repay a loan obtained to pay for the obligations or expenses
            82582     described in Subsection (5) (a) or (b).
            82583         Section 1986. Section 63M-7-522 , which is renumbered from Section 63-25a-422 is
            82584     renumbered and amended to read:
            82585          [63-25a-422].     63M-7-522. Emergency award.
            82586         If the reparations officer determines that the claimant will suffer financial hardship unless
            82587     an emergency award is made, and it appears likely that a final award will be made, an amount
            82588     may be paid to the claimant, to be deducted from the final award or repaid by and recoverable
            82589     from the claimant to the extent that it exceeds the final award. The board may limit emergency
            82590     awards to any amount it considers necessary.
            82591         Section 1987. Section 63M-7-523 , which is renumbered from Section 63-25a-423 is
            82592     renumbered and amended to read:
            82593          [63-25a-423].     63M-7-523. Review of award decision.
            82594         The reparations officer shall review at least annually every award being paid in
            82595     installments. An order on review of an award does not require refund of amounts previously
            82596     paid unless the award was obtained by fraud or a material mistake of fact.
            82597         Section 1988. Section 63M-7-524 , which is renumbered from Section 63-25a-424 is
            82598     renumbered and amended to read:
            82599          [63-25a-424].     63M-7-524. Attorney fees.
            82600         (1) The claims procedures shall be sufficiently simple that the assistance of an attorney
            82601     is unnecessary, and no attorney fees shall be paid for the assistance of an attorney or any other

            82602     representative in filing the claim or providing information to the reparations officer.
            82603         (2) Attorney fees may be granted in the following circumstances and shall be paid out of
            82604     the reparations award not to exceed 15% of the amount of the reparations award:
            82605         (a) when an award has been denied and, after a hearing, the decision to deny is
            82606     overturned; or
            82607         (b) when minor dependents of a deceased victim require assistance in establishing a
            82608     trust or determining a guardian.
            82609         (3) An attorney or any other person providing assistance in a reparations claim, who
            82610     contracts for or receives sums not allowed under this chapter, is guilty of a class B
            82611     misdemeanor. This provision shall not extend to attorneys who assist the victim in filing a civil
            82612     action against the perpetrator.
            82613         Section 1989. Section 63M-7-525 , which is renumbered from Section 63-25a-428 is
            82614     renumbered and amended to read:
            82615          [63-25a-428].     63M-7-525. Purpose -- Not entitlement program.
            82616         (1) Crime Victims' Reparations is a program with the purpose to assist victims of
            82617     criminally injurious conduct. Reparation to a victim is limited to the monies available in the
            82618     fund.
            82619         (2) This program is not an entitlement program. Awards may be limited or denied as
            82620     determined appropriate by the board. Failure to grant an award does not create a cause of
            82621     action against Crime Victims' Reparations, the state, or any of its subdivisions. There is no right
            82622     to judicial review over the decision whether or not to grant an award.
            82623         (3) A cause of action based on a failure to give or receive the notice required by this
            82624     chapter does not accrue to any person against the state, any of its agencies or local subdivisions,
            82625     any of their law enforcement officers or other agents or employees, or any health care or
            82626     medical provider or its agents or employees. The failure does not affect or alter any
            82627     requirement for filing or payment of a claim.
            82628         Section 1990. Section 63M-7-601 , which is renumbered from Section 63-25a-601 is
            82629     renumbered and amended to read:

            82630     
Part 6. Utah Council on Victims of Crime

            82631          [63-25a-601].     63M-7-601. Creation -- Members -- Chair.
            82632         (1) There is created within the governor's office the Utah Council on Victims of Crime.
            82633         (2) The Utah Council on Victims of Crime shall be composed of 24 voting members as
            82634     follows:
            82635         (a) a representative of the Commission on Criminal and Juvenile Justice appointed by
            82636     the executive director;
            82637         (b) a representative of the Department of Corrections appointed by the executive
            82638     director;
            82639         (c) a representative of the Board of Pardons and Parole appointed by the chair;
            82640         (d) a representative of the Department of Public Safety appointed by the commissioner;
            82641         (e) a representative of the Division of Juvenile Justice Services appointed by the
            82642     director;
            82643         (f) a representative of the Office of Crime Victim Reparations appointed by the director;
            82644         (g) a representative of the Office of the Attorney General appointed by the attorney
            82645     general;
            82646         (h) a representative of the United States Attorney for the district of Utah appointed by
            82647     the United States Attorney;
            82648         (i) a
            82649     professional or volunteer working in the area of violence against women and families appointed
            82650     by the governor;
            82651         (j) the chair of each judicial district's victims' rights committee;
            82652         (k) the following members appointed to serve four-year terms:
            82653         (i) a representative of the Statewide Association of Public Attorneys appointed by that
            82654     association;
            82655         (ii) a representative of the Utah Chiefs of Police Association appointed by the president
            82656     of that association;
            82657         (iii) a representative of the Utah Sheriffs' Association appointed by the president of that

            82658     association;
            82659         (iv) a representative of a Children's Justice Center appointed by the Advisory Board on
            82660     Children's Justice; and
            82661         (v) a citizen representative appointed by the governor; and
            82662         (l) the following members appointed by the members in Subsections (2)(a) through
            82663     (2)(k) to serve four-year terms:
            82664         (i) an individual who works professionally with victims of crime; and
            82665         (ii) a victim of crime.
            82666         (3) The council shall annually elect one member to serve as chair.
            82667         Section 1991. Section 63M-7-602 , which is renumbered from Section 63-25a-602 is
            82668     renumbered and amended to read:
            82669          [63-25a-602].     63M-7-602. Reappointment -- Vacancies.
            82670         (1) Members appointed to serve four-year terms shall be eligible for reappointment one
            82671     time.
            82672         (2) When a vacancy occurs in the membership for any reason, the replacement shall be
            82673     appointed for the unexpired term.
            82674         Section 1992. Section 63M-7-603 , which is renumbered from Section 63-25a-603 is
            82675     renumbered and amended to read:
            82676          [63-25a-603].     63M-7-603. Duties.
            82677         (1) The council shall:
            82678         (a) make recommendations to the Legislature, the governor, and the Judicial Council on
            82679     the following:
            82680         (i) enforcing existing rights of victims of crime;
            82681         (ii) enhancing rights of victims of crime;
            82682         (iii) the role of victims of crime in the criminal justice system;
            82683         (iv) victim restitution;
            82684         (v) educating and training criminal justice professionals on the rights of victims of
            82685     crime; and

            82686         (vi) enhancing services to victims of crimes;
            82687         (b) provide training on the rights of victims of crime; and
            82688         (c) establish a subcommittee to consider complaints not resolved by the Victims' Rights
            82689     Committee established in Section 77-37-5 .
            82690         (2) The council shall advocate the adoption, repeal, or modification of laws or proposed
            82691     legislation in the interest of victims of crime.
            82692         (3) The council may establish additional subcommittees to assist in accomplishing its
            82693     duties.
            82694         Section 1993. Section 63M-7-604 , which is renumbered from Section 63-25a-604 is
            82695     renumbered and amended to read:
            82696          [63-25a-604].     63M-7-604. Compensation of members.
            82697         (1) (a) Members who are not government employees shall receive no compensation or
            82698     benefits for their services, but may receive per diem and expenses incurred in the performance
            82699     of the member's official duties at the rates established by the Division of Finance under Sections
            82700      63A-3-106 and 63A-3-107 .
            82701         (b) Members may decline to receive per diem and expenses for their services.
            82702         (2) (a) State government officer and employee members who do not receive salary, per
            82703     diem, or expenses from their agency for their service may receive per diem and expenses
            82704     incurred in the performance of their official duties at the rates established by the Division of
            82705     Finance under Sections 63A-3-106 and 63A-3-107 .
            82706         (b) State government officer and employee members may decline to receive per diem
            82707     and expenses for their service.
            82708         Section 1994. Section 63M-7-605 , which is renumbered from Section 63-25a-605 is
            82709     renumbered and amended to read:
            82710          [63-25a-605].     63M-7-605. Staffing.
            82711         The Commission on Criminal and Juvenile Justice shall provide staff to the council and
            82712     any subcommittees established by the council.
            82713         Section 1995. Section 63M-8-101 is enacted to read:

            82714     
CHAPTER 8. UTAH COMMISSION FOR WOMEN AND FAMILIES ACT

            82715     
Part 1. General Provisions

            82716          63M-8-101. Title.
            82717         This chapter is known as the "Utah Commission for Women and Families Act."
            82718         Section 1996. Section 63M-8-201 , which is renumbered from Section 63-47-1 is
            82719     renumbered and amended to read:
            82720     
Part 2. Commission Members

            82721          [63-47-1].     63M-8-201. Creation -- Purpose.
            82722         (1) There is established the Utah Commission for Women and Families.
            82723         (2) The governor's office shall provide administrative support for the commission.
            82724         Section 1997. Section 63M-8-202 , which is renumbered from Section 63-47-2 is
            82725     renumbered and amended to read:
            82726          [63-47-2].     63M-8-202. Members -- Appointment -- Terms -- Vacancies --
            82727      Expenses.
            82728         (1) (a) Except as required by Subsection (1)(b), the commission shall consist of up to
            82729     15 members to be appointed by the governor for a four-year term.
            82730         (b) Notwithstanding the requirements of Subsection (1)(a), the governor shall, at the
            82731     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
            82732     commission members are staggered so that approximately half of the commission is appointed
            82733     every two years.
            82734         (c) Members may serve two consecutive appointments.
            82735         (d) In making appointments, the governor shall insure that no more than one more than
            82736     half the membership is from the same political party.
            82737         (2) When a vacancy occurs in the membership for any reason, the replacement shall be
            82738     appointed by the governor for the remainder of the unexpired term.
            82739         (3) (a) Members shall receive no compensation or benefits for their services, but may
            82740     receive per diem and expenses incurred in the performance of the member's official duties at the
            82741     rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .

            82742         (b) Members may decline to receive per diem and expenses for their service.
            82743         Section 1998. Section 63M-8-203 , which is renumbered from Section 63-47-3 is
            82744     renumbered and amended to read:
            82745          [63-47-3].     63M-8-203. Qualifications of members.
            82746         
            82747         (1) Members appointed to the commission shall have the following qualifications:
            82748         (a) a demonstrated record of leadership and involvement; and
            82749         (b) a willingness to make a commitment to the furtherance of the purposes of the
            82750     commission.
            82751         (2) The commission may make recommendations to the governor concerning
            82752     appointment of members.
            82753         Section 1999. Section 63M-8-204 , which is renumbered from Section 63-47-4 is
            82754     renumbered and amended to read:
            82755          [63-47-4].     63M-8-204. Election of chairman -- Meetings.
            82756         Commission members shall elect a chairman, and may appoint such other officers from
            82757     its membership as is deemed necessary. The commission shall meet in regular meetings and may
            82758     meet at special meetings at the request of the chairman or the governor.
            82759         Section 2000. Section 63M-8-301 , which is renumbered from Section 63-47-5 is
            82760     renumbered and amended to read:
            82761     
Part 3. Commission Duties and Activities

            82762          [63-47-5].     63M-8-301. Duties.
            82763         The commission shall:
            82764         (1) confer with state agencies and advise the governor, through the governor's program
            82765     director, concerning programs of importance to women and families;
            82766         (2) conduct studies, workshops, or fact-finding hearings to develop recommendations
            82767     for constructive action in all areas of interest to women and families;
            82768         (3) conduct or participate in educational programs concerning issues of importance to
            82769     women and families; and

            82770         (4) act as a liaison between the governor and national advisory organizations on the
            82771     status of women or families.
            82772         Section 2001. Section 63M-8-302 , which is renumbered from Section 63-47-7 is
            82773     renumbered and amended to read:
            82774          [63-47-7].     63M-8-302. Authority to accept funds, gifts, and donations.
            82775         The commission may, subject to [Title 63, Chapter 38e] Title 63J, Chapter 5, Federal
            82776     Funds Procedures, receive and accept federal funds, and receive and accept private gifts,
            82777     donations, or funds from any source.
            82778         Section 2002. Section 63M-8-303 , which is renumbered from Section 63-47-8 is
            82779     renumbered and amended to read:
            82780          [63-47-8].     63M-8-303. Enactment of bylaws and rules.
            82781         The commission may enact bylaws or other rules for its own governance.
            82782         Section 2003. Section 63M-9-101 , which is renumbered from Section 63-75-1 is
            82783     renumbered and amended to read:
            82784     
CHAPTER 9. FAMILIES, AGENCIES, AND COMMUNITIES

            82785     
TOGETHER FOR CHILDREN AND YOUTH AT RISK ACT

            82786     
Part 1. General Provisions

            82787          [63-75-1].     63M-9-101. Title.
            82788         This chapter is known as the "Families, Agencies, and Communities Together for
            82789     Children and Youth At Risk Act."
            82790         Section 2004. Section 63M-9-102 , which is renumbered from Section 63-75-2 is
            82791     renumbered and amended to read:
            82792          [63-75-2].     63M-9-102. Purpose of chapter.
            82793         (1) It is declared that the policy of the state is to unite the Department of Human
            82794     Services, the State Office of Education, the Department of Health, the Office of the Court
            82795     Administrator, and the Department of Workforce Services, community-based service
            82796     organizations, and parents to develop and implement comprehensive systems of services and
            82797     supports for children and youth at risk and their families.

            82798         (2) It is the intent of the Legislature that service delivery systems developed under this
            82799     chapter shall require collaboration between existing state and local agencies and between public,
            82800     private, and voluntary agencies to enhance their capacity to meet community needs.
            82801         Section 2005. Section 63M-9-103 , which is renumbered from Section 63-75-3 is
            82802     renumbered and amended to read:
            82803          [63-75-3].     63M-9-103. Definitions.
            82804         As used in this chapter:
            82805         (1) "Children and youth at risk" means:
            82806         (a) disabled persons age 18 to 22; or
            82807         (b) persons in the custody of the Division of Juvenile Justice Services within the
            82808     Department of Human Services age 18 to 21; and
            82809         (c) minors who may at times require appropriate and uniquely designed intervention to:
            82810         (i) achieve literacy;
            82811         (ii) advance through the schools;
            82812         (iii) achieve commensurate with their ability; and
            82813         (iv) participate in society in a meaningful way as competent, productive, caring, and
            82814     responsible citizens.
            82815         (2) "Council" means the Families, Agencies, and Communities Together Council
            82816     established under Section [ 63-75-4 ] 63M-9-201 .
            82817         (3) "Local interagency council" means a council established under Section [ 63-75-5.7 ]
            82818      63M-9-301 .
            82819         (4) "Steering committee" means the Families, Agencies, and Communities Together
            82820     Steering Committee established under Section [ 63-75-5 ] 63M-9-202 .
            82821         (5) (a) "Child and family centered service delivery system" means services provided to
            82822     children and youth at risk and their families that may be delivered by teams and within a
            82823     supportive community environment.
            82824         (b) "Community" includes, when available, parents of children and youth at risk;
            82825     directors of geographical service delivery areas designated by state agencies; local government

            82826     elected officials; appointed county officials who are responsible for providing substance abuse,
            82827     mental health, or public health services; educators; school districts; parent-teacher
            82828     organizations; child and family advocacy groups; religious and community-based service
            82829     organizations; individuals; and private sector entities who come together to develop, adopt, and
            82830     administer a plan for a collaborative service delivery system for children and youth at risk.
            82831         (c) "Community resources" means time, money, services, and other contributions
            82832     provided by individuals, private sector entities, religious organizations, community-based
            82833     service organizations, school districts, municipal governments, and county governments.
            82834         (d) "Individualized and coordinated service plan" means a plan for services and supports
            82835     that is comprehensive in its scope, is the product of a collaborative process between public and
            82836     private service providers, and is specifically tailored to the unique needs of each child or youth
            82837     served under this chapter.
            82838         (e) "Performance monitoring system" means a process to regularly collect and analyze
            82839     performance information including performance indicators and performance goals:
            82840         (i) "performance indicators" means actual performance information regarding a program
            82841     or activity; and
            82842         (ii) "performance goals" means a target level of performance or an expected level of
            82843     performance against which actual performance is measured.
            82844         (f) "Plan for a collaborative service delivery system," "plan," or "plans" means a written
            82845     document describing how a community proposes to deliver services and supports to children
            82846     and youth at risk that effectively bring to bear all needed resources, including community
            82847     resources, to enable them to achieve the outcomes described in Subsection (1)(c).
            82848         Section 2006. Section 63M-9-104 , which is renumbered from Section 63-75-8 is
            82849     renumbered and amended to read:
            82850          [63-75-8].     63M-9-104. Relationship to political subdivisions.
            82851         Nothing in this chapter affects the power of a political subdivision to carry out its
            82852     responsibilities as otherwise provided by law.
            82853         Section 2007. Section 63M-9-201 , which is renumbered from Section 63-75-4 is

            82854     renumbered and amended to read:
            82855     
Part 2. State Council and Steering Committee

            82856          [63-75-4].     63M-9-201. Families, Agencies, and Communities Together State
            82857      Council -- Composition -- Duties -- Interagency case management team.
            82858         (1) (a) There is created within state government the Families, Agencies, and
            82859     Communities Together State Council composed of:
            82860         (i) the state superintendent of public instruction;
            82861         (ii) the executive director of the Department of Health;
            82862         (iii) the executive director of the Department of Human Services;
            82863         (iv) the state court administrator; and
            82864         (v) the executive director of the Department of Workforce Services.
            82865         (b) The council members listed in Subsection (1)(a) shall appoint to a four-year term the
            82866     following nonvoting members:
            82867         (i) a representative of community-based service organizations appointed to a four-year
            82868     term;
            82869         (ii) a parent representative from a rural community; and
            82870         (iii) a parent representative from an urban community.
            82871         (c) If a vacancy occurs with respect to a council member appointed under Subsection
            82872     (1)(b), council members listed in Subsection (1)(a) shall appoint a replacement for the unexpired
            82873     term.
            82874         (d) Appointments and reappointments under Subsection (1)(b) and (c) shall be made
            82875     within 60 days of a vacancy.
            82876         (2) (a) The council shall annually elect a chair from its membership.
            82877         (b) All voting members of the council are necessary to constitute a quorum at any
            82878     meeting.
            82879         (c) The action of a majority of a quorum is the action of the council, except that a
            82880     unanimous vote of the council is required to appoint or remove a nonvoting council member.
            82881         (d) The council shall meet quarterly or more frequently as determined by the chair.

            82882         (3) (a) State government officer and employee members who do not receive salary, per
            82883     diem, or expenses from their agency for their service may receive per diem and expenses
            82884     incurred in the performance of their official duties from the council at the rates established by
            82885     the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            82886         (b) Members who are not government employees may not receive compensation or
            82887     benefits for their services, but may receive per diem and expenses incurred in the performance
            82888     of the member's official duties from the council at rates established by the Division of Finance
            82889     under Sections 63A-3-106 and 63A-3-107 .
            82890         (c) Council members may decline to receive per diem and expenses for their service.
            82891         (4) The council shall:
            82892         (a) provide leadership to increase and enhance efficient and effective services to Utah's
            82893     children and youth at risk by:
            82894         (i) cooperatively planning, funding, monitoring, evaluating, and marketing innovative
            82895     and individualized service delivery and funding strategies;
            82896         (ii) recommending legislative, executive, and judicial policy and procedural changes,
            82897     including joint budget proposals as described in Section [ 63-38-2 ] 63J-1-201 ;
            82898         (iii) developing incentives and strategies to increase family involvement, collaboration,
            82899     and public-private partnerships in the planning and delivery of services at the state and local
            82900     level;
            82901         (iv) promoting prevention and early intervention services;
            82902         (v) increasing public understanding of and advocating for the needs of Utah's children
            82903     and youth who are at risk; and
            82904         (vi) establishing policies to remove administrative barriers to collaboration in
            82905     communities;
            82906         (b) compile and disseminate information regarding effective service delivery and funding
            82907     strategies for replication;
            82908         (c) receive and act upon recommendations of the steering committee;
            82909         (d) approve the establishment of collaborative service delivery systems under Section

            82910     [ 63-75-6.5 ] 63M-9-402 and adopt performance goals for those systems;
            82911         (e) recommend to the governor for each fiscal year funds contained in an agency's base
            82912     budget and building block request that can be identified for collaborative service delivery
            82913     systems established under Section [ 63-75-6.5 ] 63M-9-402 ;
            82914         (f) (i) develop model administrative and governance structures to be established by
            82915     communities that at least:
            82916         (A) ensure accountability for public funds;
            82917         (B) are voluntarily adopted and modified by communities, based on community needs;
            82918         (C) ensure collaboration on matters of policy and administrative processes in operating
            82919     programs under this chapter between the state, school districts, and counties;
            82920         (D) establish a board consisting of heads of state and local government agencies, private
            82921     agencies, and school districts that provide services under this chapter; and
            82922         (E) ensure equity in the scope, duration, and level of services throughout a prescribed
            82923     geographical area;
            82924         (ii) the council may, through contracts that provide funding for programs under this
            82925     chapter, give incentives to communities to establish an administrative and governance structure
            82926     that meets the requirements of Subsection (4)(f)(i) and to designate the geographical area within
            82927     which that administrative and governance structure will operate;
            82928         (g) review the structure and function of the steering committee before December 1,
            82929     1999, to determine the effectiveness of the steering committee in:
            82930         (i) achieving the purposes and carrying out the responsibilities of the committee; and
            82931         (ii) assisting communities to establish collaborative service delivery systems;
            82932         (h) forward to the Legislature for the 2000 General Session recommendations for
            82933     restructuring the size, membership, and function of the steering committee based on the review
            82934     conducted under Subsection (4)(g); and
            82935         (i) report to the governor and the Legislature on an annual basis.
            82936         (5) The council shall ensure that projects selected under Section [ 63-75-6 ] 63M-9-401
            82937     have outcomes that:

            82938         (a) focus all project activities on the prevention of academic failure and social
            82939     misbehaviors;
            82940         (b) involve parents in planning, implementation, and evaluation of services;
            82941         (c) allow frequent opportunities for planning between teachers, parents, school
            82942     administrators, and representatives of agencies and community-based service organizations that
            82943     provide services; and
            82944         (d) provide frequent monitoring and assessment of each child's and youth's progress.
            82945         (6) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            82946     Administrative Rulemaking Act, the council shall make rules to ensure cooperative development
            82947     of individualized and coordinated service plans by local interagency councils and case
            82948     management teams for children or youth at risk and their families who receive services under
            82949     this chapter.
            82950         (b) For purposes of developing and implementing individualized and coordinated plans,
            82951     the members of the local interagency councils and case management teams shall be considered
            82952     to be employees of each agency represented on the team and entitled to review and discuss
            82953     agency records as necessary in planning and providing services under a plan.
            82954         (c) Records shared by the teams remain the property of the supplying agency and may
            82955     not be incorporated in the records of another agency unless transferred in accordance with
            82956     standard procedures for transfer of records of the type in question.
            82957         Section 2008. Section 63M-9-202 , which is renumbered from Section 63-75-5 is
            82958     renumbered and amended to read:
            82959          [63-75-5].     63M-9-202. Steering committee -- Membership -- Duties.
            82960         (1) As used in this section, "Council of Mental Health Programs" means a council
            82961     consisting of all of the directors of Utah public mental health centers.
            82962         (2) There is established a Families, Agencies, and Communities Together Steering
            82963     Committee.
            82964         (3) The steering committee shall include at least 18 voting members as follows:
            82965         (a) the director of the Division of Health Care Financing within the Department of

            82966     Health;
            82967         (b) a representative annually designated by the Council of Mental Health Programs;
            82968         (c) the director of the Division of Substance Abuse and Mental Health within the
            82969     Department of Human Services;
            82970         (d) the director of the Division of Juvenile Justice Services within the Department of
            82971     Human Services;
            82972         (e) the state director of special education;
            82973         (f) the person responsible for programs for at risk students within the Utah State Office
            82974     of Education, if that person is not the state director of special education;
            82975         (g) the Juvenile Court Administrator;
            82976         (h) a representative annually designated by substance abuse directors;
            82977         (i) the director of the Division of Child and Family Services within the Department of
            82978     Human Services;
            82979         (j) the director of family health services programs;
            82980         (k) a representative annually designated by the Utah School Superintendents
            82981     Association;
            82982         (l) a juvenile court judge designated by the presiding officer of the state Judicial
            82983     Council;
            82984         (m) a representative annually designated by the local health officers;
            82985         (n) a representative annually designated by the executive director of the Department of
            82986     Workforce Services;
            82987         (o) three at-large members appointed by a majority of the committee to four-year terms,
            82988     who represent a statewide perspective on children and youth issues; and
            82989         (p) parent representatives appointed by members specified in Subsections (3)(a)
            82990     through (o).
            82991         (4) Additional members may be selected by a majority of the committee to serve as
            82992     voting members for four-year terms.
            82993         (5) (a) Except as required by Subsection (5)(b), as terms of current at-large committee

            82994     members expire, the committee shall appoint each new member or reappointed member to a
            82995     four-year term.
            82996         (b) Notwithstanding the requirements of Subsection (5)(a), the committee shall, at the
            82997     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
            82998     at-large committee members are staggered so that approximately half of the at-large committee
            82999     members are appointed every two years.
            83000         (6) When a vacancy occurs in the membership for any reason, the replacement shall be
            83001     appointed for the unexpired term.
            83002         (7) The members shall annually elect a chair and vice chair.
            83003         (8) A majority of committee members are necessary to constitute a quorum and to
            83004     transact the business of the committee.
            83005         (9) (a) (i) Members who are not government employees may not receive compensation
            83006     or benefits for their services, but may receive per diem and expenses incurred in the
            83007     performance of the member's official duties at the rates established by the Division of Finance
            83008     under Sections 63A-3-106 and 63A-3-107 .
            83009         (ii) Members may decline to receive per diem and expenses for their service.
            83010         (b) (i) State government officer and employee members who do not receive salary, per
            83011     diem, or expenses from their agency for their service may receive per diem and expenses
            83012     incurred in the performance of their official duties from the committee at the rates established by
            83013     the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            83014         (ii) State government officer and employee members may decline to receive per diem
            83015     and expenses for their service.
            83016         (c) (i) Local government members who do not receive salary, per diem, or expenses
            83017     from the entity that they represent for their service may receive per diem and expenses incurred
            83018     in the performance of their official duties at the rates established by the Division of Finance
            83019     under Sections 63A-3-106 and 63A-3-107 .
            83020         (ii) Local government members may decline to receive per diem and expenses for their
            83021     service.

            83022         (10) The committee shall:
            83023         (a) assist the council in fulfilling its duties set out in Section [ 63-75-4 ] 63M-9-201 ;
            83024         (b) monitor, solicit input for policy changes, and provide technical assistance to local
            83025     collaborative programs; and
            83026         (c) report any formal recommendations to the council.
            83027         Section 2009. Section 63M-9-203 , which is renumbered from Section 63-75-5.5 is
            83028     renumbered and amended to read:
            83029          [63-75-5.5].     63M-9-203. Staffing.
            83030         The Department of Human Services, the Department of Health, the State Office of
            83031     Education, and the Office of the Court Administrator shall provide staff for the state council and
            83032     steering committee.
            83033         Section 2010. Section 63M-9-301 , which is renumbered from Section 63-75-5.7 is
            83034     renumbered and amended to read:
            83035     
Part 3. Local Councils

            83036          [63-75-5.7].     63M-9-301. Local interagency council -- Composition -- Duties.
            83037         (1) Communities shall establish local interagency councils to improve service delivery to
            83038     children and youth at risk, who are experiencing multiple problems and require services from
            83039     more than one agency.
            83040         (2) Each local interagency council shall consist of representatives from each agency
            83041     serving children and youth who are at risk and their families within the community.
            83042         (a) At a minimum the council shall consist of a family advocate and a local
            83043     representative from the following:
            83044         (i) child welfare;
            83045         (ii) developmental disabilities;
            83046         (iii) education;
            83047         (iv) health;
            83048         (v) juvenile justice;
            83049         (vi) mental health;

            83050         (vii) parents;
            83051         (viii) substance abuse; and
            83052         (ix) youth corrections.
            83053         (b) The members of the local interagency council specified in Subsections (a)(i) through
            83054     (ix) shall select three parents from the local community to serve on the local interagency
            83055     council, representative of families with children.
            83056         (3) The local interagency council shall:
            83057         (a) provide general staffing for individual at risk cases which require services from more
            83058     than one agency;
            83059         (b) provide services to meet the needs of individual cases or create new services to fill
            83060     gaps in current service continuum;
            83061         (c) develop an individualized and coordinated service plan for each child or youth at
            83062     risk and [his] the child or youth's family; and
            83063         (d) establish a case management process to implement individualized and coordinated
            83064     service plans.
            83065         (4) Each local interagency council shall integrate into its operational procedures a
            83066     method to involve parents in the staffing and service planning process.
            83067         (5) (a) Each local interagency council shall operate in accordance with a written
            83068     agreement entered into by the participating agencies.
            83069         (b) The agreement shall include a provision that the participating agencies agree to
            83070     implement the service recommendations in the individualized and coordinated service plan when
            83071     not inconsistent with federal law.
            83072         Section 2011. Section 63M-9-401 , which is renumbered from Section 63-75-6 is
            83073     renumbered and amended to read:
            83074     
Part 4. Service Programs

            83075          [63-75-6].     63M-9-401. Prevention and early intervention programs --
            83076      Applicants -- Selection process.
            83077         (1) Within appropriations from the Legislature, the council shall implement prevention

            83078     and early intervention programs for children and youth at risk.
            83079         (2) The council shall select a limited number of participants for programs described in
            83080     Subsection (1) through applications submitted by local entities.
            83081         (3) (a) (i) The written consent of a parent or guardian is necessary for a child or youth
            83082     at risk to participate in a program operated under Subsection (1).
            83083         (ii) Programs for children who are enrolled in public schools shall also be subject to the
            83084     disclosure and written consent provisions of Section 53A-13-301 and Section 53A-13-302 .
            83085         (iii) A parent or guardian may withdraw consent at any time.
            83086         (b) Notwithstanding Subsection (3)(a), a court may order a child's participation in a
            83087     prevention and early intervention program.
            83088         (4) The prevention and early intervention services provided under this section shall:
            83089         (a) be comprehensive and collaborative;
            83090         (b) seek to strengthen and preserve families;
            83091         (c) be culturally sensitive, family focused, and community based;
            83092         (d) protect children and youth at risk;
            83093         (e) prevent abuse and neglect;
            83094         (f) provide access to health care; and
            83095         (g) prevent academic failure as defined in Subsection 78-3a-316 (2)(a).
            83096         (5) (a) A case management team shall be established at each participating site.
            83097         (b) The case management team shall include at least the following:
            83098         (i) parents who represent a community perspective on children and youth at risk;
            83099         (ii) an educator at the school if the child receiving services is enrolled in a public school;
            83100         (iii) the principal if the child receiving services is enrolled in a public school;
            83101         (iv) a public health nurse;
            83102         (v) a representative of the local mental health authority;
            83103         (vi) a representative from the Division of Child and Family Services within the
            83104     Department of Human Services;
            83105         (vii) a representative from the Employment Development Division; and

            83106         (viii) other persons considered appropriate by those persons specified in Subsections
            83107     (5)(b)(i) through (vii), based on the needs of the child or youth and [his] the child or youth's
            83108     family.
            83109         (6) (a) Nothing in this chapter shall be construed to waive the civil, constitutional, or
            83110     parental rights of any child, youth, parent, or guardian.
            83111         (b) The case management team shall recommend that children or youth be evaluated for
            83112     at risk intervention.
            83113         Section 2012. Section 63M-9-402 , which is renumbered from Section 63-75-6.5 is
            83114     renumbered and amended to read:
            83115          [63-75-6.5].     63M-9-402. Plans for collaborative service delivery systems.
            83116         (1) The council shall provide incentives for communities to develop collaborative
            83117     service delivery systems. If a community desires to enter into a contract with the council under
            83118     this section, it shall submit to the council a plan for a collaborative service delivery system.
            83119     That plan shall be in a form prescribed by the council and shall include at least the following:
            83120         (a) the community's designation of a state agency, school district, political subdivision,
            83121     or private entity that will act as fiscal agent for the plan;
            83122         (b) an assurance that the plan was developed through an inclusive process involving,
            83123     when available, parents of children and youth at risk, representatives of state agencies and local
            83124     governments, educators, school districts, child and family advocacy groups, religious and
            83125     service organizations, and parent-teacher associations;
            83126         (c) a description of how the collaborative service delivery system will be administered,
            83127     including the membership, powers, and duties of any board, commission, or council that will
            83128     direct the service delivery system;
            83129         (d) a budget for the proposed collaborative service delivery system, including funds
            83130     requested from the council;
            83131         (e) a description of a performance monitoring system to be used by the community,
            83132     including the community's performance goals and performance indicators; and
            83133         (f) any waivers to the rules of the State Board of Education, Department of Human

            83134     Services, Department of Health, or rule of judicial administration necessary to carry out the
            83135     community initiative.
            83136         (2) In awarding an application under this section, the council shall consider the extent to
            83137     which the proposed community initiative:
            83138         (a) promotes early intervention and prevention;
            83139         (b) employs a collaborative method of delivering services;
            83140         (c) is endorsed by all public and private service delivery agencies that are anticipated to
            83141     provide services to at-risk children and youth under the proposed collaborative service delivery
            83142     system;
            83143         (d) is accountable for results;
            83144         (e) utilizes private community resources, including resources provided by religious and
            83145     service organizations;
            83146         (f) utilizes the resources of the at risk child's immediate and extended family;
            83147         (g) leverages county, municipal and school district funding sources to enhance the
            83148     scope, extent, and availability of services;
            83149         (h) leverages private funding sources within the community to enhance the scope,
            83150     extent, and availability of services;
            83151         (i) employs individualized and coordinated service plans;
            83152         (j) establishes a single point of entry for children, youth, and their families who require
            83153     services;
            83154         (k) provides comprehensive services for children and youth at risk through grade 12
            83155     and appropriate prenatal care; and
            83156         (l) exhibits innovation in delivering services or addressing needs.
            83157         (3) (a) On or before July 1, 1996, the council shall adopt a prospectus to solicit
            83158     proposals for the submission of plans.
            83159         (b) From among the proposals for plans received under Subsection (3)(a), the council
            83160     may award grants to communities to partially or fully pay for the development of plans.
            83161         (c) From the plans received under Subsection (3)(b), the council may contract with the

            83162     fiscal agent designated in the plan. That contract shall contain at least the following provisions:
            83163         (i) a description of the scope of work and program narrative;
            83164         (ii) a description of the community's performance monitoring system which shall
            83165     coordinate with existing performance monitoring systems, including the community's
            83166     performance goals and performance indicators;
            83167         (iii) an enumeration of the dollar amount that will be provided by the council to the
            83168     fiscal agent; and
            83169         (iv) a waiver to an administrative rule, if any, granted by the agency that adopted the
            83170     rule.
            83171         (d) For fiscal year 1996-97, a contract under Subsection (3)(c) is for the period of time
            83172     between April 1, 1997, and June 30, 1997. For each fiscal year thereafter, a contract may not
            83173     exceed the period of the fiscal year.
            83174         Section 2013. Section 63M-9-501 , which is renumbered from Section 63-75-7 is
            83175     renumbered and amended to read:
            83176     
Part 5. Evaluations and Reports

            83177          [63-75-7].     63M-9-501. Evaluation of programs -- Report to legislative interim
            83178      committee.
            83179         (1) At the end of each fiscal year, a final report shall be submitted to the council
            83180     summarizing the outcome of each project under this chapter.
            83181         (2) (a) The council may conduct an independent evaluation of any or all of the projects
            83182     to assess the status of services provided and identified outcomes.
            83183         (b) The council shall prepare and deliver a report on the program to the Legislature's
            83184     Education, Health and Human Services, and Judiciary Interim Committees before October 1,
            83185     2005.
            83186         (c) The report shall include a recommendation by the council as to whether the program
            83187     should be terminated, continued, or expanded.
            83188         Section 2014. Section 63M-10-101 , which is renumbered from Section 63-92-1 is
            83189     renumbered and amended to read:

            83190     
CHAPTER 10. SERIOUS HABITUAL OFFENDER

            83191     
COMPREHENSIVE ACTION PROGRAM (SHOCAP) ACT

            83192     
Part 1. General Provisions

            83193          [63-92-1].     63M-10-101. Title.
            83194         This chapter is known as the "Serious Habitual Offender Comprehensive Action
            83195     Program (SHOCAP) Act."
            83196         Section 2015. Section 63M-10-201 , which is renumbered from Section 63-92-2 is
            83197     renumbered and amended to read:
            83198     
Part 2. Serious Habitual Offender Comprehensive Action Program

            83199          [63-92-2].     63M-10-201. Creation -- Purpose -- Administration -- Access.
            83200         (1) There is created the Serious Habitual Offender Comprehensive Action Program
            83201     (SHOCAP) to establish a SHOCAP Database to identify and track youthful offenders in order
            83202     to assist agencies in providing collaborative and comprehensive services to them.
            83203         (2) The database shall be administered by the Administrative Office of the Courts with
            83204     information contributed by the following agencies:
            83205         (a) the State Office of Education, including all school districts;
            83206         (b) the Department of Health;
            83207         (c) the Department of Human Services, including all county mental health agencies;
            83208         (d) the Department of Public Safety;
            83209         (e) all county and municipal law enforcement agencies; and
            83210         (f) all county and district attorney offices.
            83211         (3) The database shall be maintained in accordance with guidelines established by the
            83212     Administrative Office of the Courts so that the agencies listed in Subsection (2) can efficiently
            83213     access the database.
            83214         (4) Information provided by schools in compliance with the provisions of this chapter is
            83215     authorized under the Family Educational Rights and Privacy Act Regulations, 34 CFR Part 99.
            83216         (5) Information in the database provided by an agency to the database is considered to
            83217     be the property of the agency providing the information and retains any classification given it

            83218     under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
            83219     Management Act.
            83220         (6) Any person who knowingly releases or discloses information from the database for a
            83221     purpose other than authorized by this chapter or to a person who is not entitled to it is guilty of
            83222     a class B misdemeanor.
            83223         (7) Neither the state nor the courts are liable to any person for gathering, managing, or
            83224     using the information in the database as provided in this chapter.
            83225         Section 2016. Section 63M-10-202 , which is renumbered from Section 63-92-3 is
            83226     renumbered and amended to read:
            83227          [63-92-3].     63M-10-202. Establishment of local oversight committees --
            83228      Interagency information sharing.
            83229         (1) The Commission on Criminal and Juvenile Justice shall administer the statewide
            83230     SHOCAP oversight committee and provide periodic review of the programs.
            83231         (2) Counties or municipalities implementing SHOCAP shall form a local oversight
            83232     committee composed of the following persons, or their designees:
            83233         (a) the district juvenile court administrator;
            83234         (b) the superintendent of the local school district;
            83235         (c) the local county attorney;
            83236         (d) a member of the local county or municipal legislative body;
            83237         (e) the local county sheriff;
            83238         (f) a local chief of police;
            83239         (g) the local chief of probation for the Juvenile Court;
            83240         (h) the regional director of the Division of Juvenile Justice Services;
            83241         (i) the regional director of the Division of Child and Family Services;
            83242         (j) a representative of a local public mental health provider; and
            83243         (k) any additional members considered appropriate by the local oversight committee.
            83244         (3) The local oversight committee shall develop, implement, and periodically review the
            83245     following:

            83246         (a) standardized criteria as developed by the statewide SHOCAP oversight committee
            83247     for determining who is a serious habitual offender (SHO);
            83248         (b) what information is needed on each offender for inclusion in the program;
            83249         (c) who will have access to the database;
            83250         (d) who will maintain the database and manage the information in the program;
            83251         (e) what the information in the database is to be used for; and
            83252         (f) penalties for improper use of the information in the database.
            83253         (4) The local oversight committee shall develop a written interagency information
            83254     sharing agreement to be signed by the chief executive officer of each of the agencies represented
            83255     on the oversight committee. The sharing agreement shall include the provisions requiring that:
            83256         (a) all records pertaining to a SHO be kept confidential;
            83257         (b) when a SHO is included in the SHOCAP program for the purposes of tracking and
            83258     providing coordinated services, the local law enforcement agency or an agency designated by
            83259     the interagency agreement shall as soon as reasonably possible notify the SHO and the parent or
            83260     guardian of the SHO;
            83261         (c) the disclosure of information to other staff members of signatory agencies be made
            83262     only to those staff members who provide direct services or supervision to the SHO; and
            83263         (d) all staff members of signatory agencies receiving confidential information
            83264     concerning a SHO be subject to the confidentiality requirements of this chapter.
            83265         (5) Notwithstanding any other statutory provision, staff members of signatory agencies
            83266     who provide direct services or supervision to SHOCAP youth may distribute photographs of
            83267     SHOCAP youth to other staff members of signatory agencies who provide direct services or
            83268     supervision to SHOCAP youth.
            83269         (6) The local oversight committee shall develop a program capable of maintaining the
            83270     information determined to be necessary under Subsection (3).
            83271         Section 2017. Section 63M-11-101 , which is renumbered from Section 63-99-101 is
            83272     renumbered and amended to read:
            83273     
CHAPTER 11. UTAH COMMISSION ON AGING

            83274     
Part 1. General Provisions

            83275          [63-99-101].     63M-11-101. Title.
            83276         This chapter is known as "Utah Commission on Aging."
            83277         Section 2018. Section 63M-11-102 , which is renumbered from Section 63-99-103 is
            83278     renumbered and amended to read:
            83279          [63-99-103].     63M-11-102. Creation -- Purpose.
            83280         (1) In accordance with this chapter, there is created within the governor's office the
            83281     Utah Commission on Aging.
            83282         (2) The commission's purpose is to:
            83283         (a) increase public and government understanding of the current and future needs of the
            83284     state's aging population and how those needs may be most effectively and efficiently met;
            83285         (b) study, evaluate, and report on the projected impact that the state's increasing aging
            83286     population will have on:
            83287         (i) government services;
            83288         (ii) health services;
            83289         (iii) social services;
            83290         (iv) the economy; and
            83291         (v) society in general;
            83292         (c) identify and recommend implementation of specific policies, procedures, and
            83293     programs to respond to the needs and impact of the aging population relating to:
            83294         (i) government services;
            83295         (ii) health services;
            83296         (iii) social services;
            83297         (iv) the economy; and
            83298         (v) society in general;
            83299         (d) facilitate coordination of the functions of public and private entities concerned with
            83300     the aging population; and
            83301         (e) accomplish the duties enumerated in Section [ 63-99-106 ] 63M-11-203 .

            83302         Section 2019. Section 63M-11-103 , which is renumbered from Section 63-99-102 is
            83303     renumbered and amended to read:
            83304          [63-99-102].     63M-11-103. Definitions.
            83305         As used in this chapter:
            83306         (1) "Aging" and "aged" are as defined in Section 62A-3-101 .
            83307         (2) "Center on Aging" means the Center on Aging within the University of Utah.
            83308         (3) "Commission" means the Utah Commission on Aging, created in Section
            83309     [ 63-99-103 ] 63M-11-102 .
            83310         Section 2020. Section 63M-11-201 , which is renumbered from Section 63-99-104 is
            83311     renumbered and amended to read:
            83312     
Part 2. Commission

            83313          [63-99-104].     63M-11-201. Composition -- Appointments -- Terms --
            83314      Removal.
            83315         (1) The commission shall be composed of 21 voting members as follows:
            83316         (a) one senator, appointed by the president of the Senate;
            83317         (b) one representative, appointed by the speaker of the House of Representatives;
            83318         (c) the executive director of the Department of Health;
            83319         (d) the executive director of the Department of Human Services;
            83320         (e) the executive director of the Governor's Office of Economic Development;
            83321         (f) the executive director of the Department of Workforce Services; and
            83322         (g) 15 voting members, appointed by the governor, representing each of the following:
            83323         (i) the Utah Association of Area Agencies on Aging;
            83324         (ii) higher education in Utah;
            83325         (iii) the business community;
            83326         (iv) the Utah Association of Counties;
            83327         (v) the Utah League of Cities and Towns;
            83328         (vi) charitable organizations;
            83329         (vii) the health care provider industry;

            83330         (viii) financial institutions;
            83331         (ix) the legal profession;
            83332         (x) the public safety sector;
            83333         (xi) public transportation;
            83334         (xii) ethnic minorities;
            83335         (xiii) the industry that provides long-term care for the elderly;
            83336         (xiv) organizations or associations that advocate for the aging population; and
            83337         (xv) the general public.
            83338         (2) (a) A member appointed under Subsection (1)(g) shall serve a two-year term.
            83339         (b) Notwithstanding the term requirements of Subsection (2)(a), the governor may
            83340     adjust the length of the initial commission members' terms to ensure that the terms are staggered
            83341     so that approximately 1/2 of the members appointed under Subsection (1)(g) are appointed each
            83342     year.
            83343         (c) When, for any reason, a vacancy occurs in a position appointed by the governor
            83344     under Subsection (1)(g), the governor shall appoint a person to fill the vacancy for the
            83345     unexpired term of the commission member being replaced.
            83346         (d) Members appointed under Subsection (1)(g) may be removed by the governor for
            83347     cause.
            83348         (e) A member appointed under Subsection (1)(g) shall be removed from the commission
            83349     and replaced by the governor if the member is absent for three consecutive meetings of the
            83350     commission without being excused by the chair of the commission.
            83351         (3) In appointing the members under Subsection (1)(g), the governor shall:
            83352         (a) take into account the geographical makeup of the commission; and
            83353         (b) strive to appoint members who are knowledgeable or have an interest in issues
            83354     relating to the aging population.
            83355         Section 2021. Section 63M-11-202 , which is renumbered from Section 63-99-105 is
            83356     renumbered and amended to read:
            83357          [63-99-105].     63M-11-202. Executive director -- Qualifications --

            83358      Appointment -- Functions.
            83359         (1) (a) Subject to Subsections (1)(b) and (c), the executive director of the Center on
            83360     Aging shall appoint an executive director of the commission.
            83361         (b) The executive director appointed under Subsection (1)(a) shall be a person
            83362     knowledgeable and experienced in matters relating to:
            83363         (i) management; and
            83364         (ii) the aging population.
            83365         (c) The appointment described in Subsection (1)(a) is not effective until ratified by the
            83366     governor.
            83367         (2) The executive director of the commission, under the direction of the commission
            83368     and the executive director of the Center on Aging, shall administer the duties of the
            83369     commission.
            83370         Section 2022. Section 63M-11-203 , which is renumbered from Section 63-99-106 is
            83371     renumbered and amended to read:
            83372          [63-99-106].     63M-11-203. Duties and powers of commission.
            83373         (1) The commission shall:
            83374         (a) fulfill the commission's purposes as listed in Section [ 63-99-103 ] 63M-11-102 ;
            83375         (b) facilitate the communication and coordination of public and private entities that
            83376     provide services to the aging population;
            83377         (c) study, evaluate, and report on the status and effectiveness of policies, procedures,
            83378     and programs that provide services to the aging population;
            83379         (d) study and evaluate the policies, procedures, and programs implemented by other
            83380     states that address the needs of the aging population;
            83381         (e) facilitate and conduct the research and study of issues related to aging;
            83382         (f) provide a forum for public comment on issues related to aging;
            83383         (g) provide public information on the aging population and the services available to the
            83384     aging population;
            83385         (h) facilitate the provision of services to the aging population from the public and

            83386     private sectors; and
            83387         (i) encourage state and local governments to analyze, plan, and prepare for the impacts
            83388     of the aging population on services and operations.
            83389         (2) To accomplish its duties, the commission may:
            83390         (a) request and receive from any state or local governmental agency or institution,
            83391     summary information relating to the aging population, including:
            83392         (i) reports;
            83393         (ii) audits;
            83394         (iii) projections; and
            83395         (iv) statistics;
            83396         (b) apply for and accept grants or donations for uses consistent with the duties of the
            83397     commission from public or private sources; and
            83398         (c) appoint special committees to advise and assist the commission.
            83399         (3) All funds received under Subsection (2)(b) shall be:
            83400         (a) accounted for and expended in compliance with the requirements of federal and
            83401     state law; and
            83402         (b) continuously available to the commission to carry out the commission's duties.
            83403         (4) (a) Members of a special committee described in Subsection (2)(c):
            83404         (i) shall be appointed by the commission;
            83405         (ii) may be:
            83406         (A) members of the commission; or
            83407         (B) individuals from the private or public sector; and
            83408         (iii) notwithstanding Section [ 63-99-109 ] 63M-11-206 , shall not receive any
            83409     reimbursement or pay for any work done in relation to the special committee.
            83410         (b) A special committee described in Subsection (2)(c) shall report to the commission
            83411     on the progress of the special committee.
            83412         (5) This chapter does not diminish the planning authority conferred on state, regional,
            83413     and local governments by existing law.

            83414         Section 2023. Section 63M-11-204 , which is renumbered from Section 63-99-107 is
            83415     renumbered and amended to read:
            83416          [63-99-107].     63M-11-204. Annual report by the commission.
            83417         (1) The commission shall annually prepare and publish a report directed to the:
            83418         (a) governor; and
            83419         (b) Executive Appropriations Committee of the Legislature.
            83420         (2) The report described in Subsection (1) shall:
            83421         (a) describe how the commission fulfilled its statutory purposes and duties during the
            83422     year; and
            83423         (b) contain recommendations on how the state should act to address issues relating to
            83424     the aging population.
            83425         Section 2024. Section 63M-11-205 , which is renumbered from Section 63-99-108 is
            83426     renumbered and amended to read:
            83427          [63-99-108].     63M-11-205. Appointment of chair -- Meetings.
            83428         (1) The governor shall appoint a member of the commission to serve as chair.
            83429         (2) (a) Subject to the other provisions of this Subsection (2), the chair is responsible for
            83430     the call and conduct of meetings.
            83431         (b) The chair shall call and hold meetings of the commission at least bimonthly.
            83432         (c) One of the bimonthly meetings described in Subsection (2)(b) shall be held while the
            83433     Legislature is convened in its annual session.
            83434         (d) One or more additional meetings may be called upon request by a majority of the
            83435     commission's members.
            83436         (3) (a) A majority of the members of the commission constitute a quorum.
            83437         (b) The action of a majority of a quorum constitutes the action of the commission.
            83438         Section 2025. Section 63M-11-206 , which is renumbered from Section 63-99-109 is
            83439     renumbered and amended to read:
            83440          [63-99-109].     63M-11-206. Members serve without pay -- Reimbursement
            83441      for expenses.

            83442         (1) A member of the commission who is not a government employee shall receive no
            83443     compensation or benefits for the member's services, but may:
            83444         (a) receive per diem and expenses incurred in the performance of the member's official
            83445     duties at the rates established by the Division of Finance under Sections 63A-3-106 and
            83446      63A-3-107 ; or
            83447         (b) decline to receive per diem and expenses for the member's service.
            83448         (2) A member of the commission who is a state government officer or employee and
            83449     who does not receive salary, per diem, or expenses from the member's agency for the member's
            83450     service may:
            83451         (a) receive per diem and expenses incurred in the performance of the member's official
            83452     duties from the commission at the rates established by the Division of Finance under Sections
            83453      63A-3-106 and 63A-3-107 ; or
            83454         (b) decline to receive per diem and expenses for the member's service.
            83455         (3) A legislator on the commission shall receive compensation and expenses as provided
            83456     by law and legislative rule.
            83457         Section 2026. Section 63M-11-207 , which is renumbered from Section 63-99-110 is
            83458     renumbered and amended to read:
            83459          [63-99-110].     63M-11-207. Oversight -- Executive director salary -- Staff
            83460      support -- Use of funds.
            83461         (1) The Center on Aging shall:
            83462         (a) pay the salary, and oversee the performance of, the executive director of the
            83463     commission;
            83464         (b) provide staff support for the executive director of the commission and the
            83465     commission; and
            83466         (c) provide office space, furnishings, and supplies to the commission, the executive
            83467     director of the commission, and support staff.
            83468         (2) The funds appropriated by the Legislature for the commission may only be used for
            83469     the purposes described in this chapter.

            83470         Section 2027. Section 64-9b-6 is amended to read:
            83471          64-9b-6. Rules.
            83472         The department is authorized to promulgate rules in accordance with [Title 63, Chapter
            83473     46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, as necessary to carry out the
            83474     purposes of this chapter.
            83475         Section 2028. Section 64-13-10 is amended to read:
            83476          64-13-10. Department duties -- Rulemaking authority.
            83477         (1) The department shall provide probation supervision programs, parole supervision
            83478     programs, correctional facilities, community correctional centers, and other programs or
            83479     facilities as necessary and as required to accomplish its purposes.
            83480         (2) The department may make rules in accordance with [Title 63, Chapter 46a] Title
            83481     63G, Chapter 3, Utah Administrative Rulemaking Act, to carry out the provisions of this
            83482     chapter.
            83483         Section 2029. Section 64-13-14.7 is amended to read:
            83484          64-13-14.7. Victim notification of offender's release.
            83485         (1) As used in this section:
            83486         (a) "Offender" means a person who committed an act of criminally injurious conduct
            83487     against the victim and has been sentenced to incarceration in the custody of the department.
            83488         (b) "Victim" means a person against whom an offender committed criminally injurious
            83489     conduct as defined in Section [ 63-25a-402 ] 63M-7-502 , and who is entitled to notice of
            83490     hearings regarding the offender's parole under Section 77-27-9.5 . "Victim" includes the legal
            83491     guardian of a victim, or the representative of the family of a victim who is deceased.
            83492         (2) (a) A victim shall be notified of an offender's release under Sections 64-13-14.5 and
            83493      64-13-14.7 , or any other release to or from a half-way house, to a program outside of the prison
            83494     such as a rehabilitation program, state hospital, community center other than a release on
            83495     parole, commutation or termination for which notice is provided under Sections 77-27-9.5 and
            83496      77-27-9.7 , transfer of the offender to an out-of-state facility, or an offender's escape, upon
            83497     submitting a signed written request of notification to the Department of Corrections. The

            83498     request shall include a current mailing address and may include current telephone numbers if the
            83499     victim chooses.
            83500         (b) The department shall advise the victim of an offender's release or escape under
            83501     Subsection (2)(a), in writing. However, if written notice is not feasible because the release is
            83502     immediate or the offender escapes, the department shall make a reasonable attempt to notify the
            83503     victim by telephone if the victim has provided a telephone number under Subsection (2)(a) and
            83504     shall follow up with a written notice.
            83505         (3) Notice of victim rights under this section shall be provided to the victim in the
            83506     notice of hearings regarding parole under Section 77-27-9.5 . The department shall coordinate
            83507     with the Board of Pardons and Parole to ensure the notice is implemented.
            83508         (4) A victim's request for notification under this section and any notification to a victim
            83509     under this section is private information that the department may not release:
            83510         (a) to the offender under any circumstances; or
            83511         (b) to any other party without the written consent of the victim.
            83512         (5) The department may make rules as necessary to implement this section.
            83513         (6) The department or its employees acting within the scope of their employment are
            83514     not civilly or criminally liable for failure to provide notice or improper notice under this section
            83515     unless the failure or impropriety is willful or grossly negligent.
            83516         Section 2030. Section 64-13-17 is amended to read:
            83517          64-13-17. Visitors to correctional facilities -- Correspondence.
            83518         (1) (a) The following persons may visit correctional facilities without the consent of the
            83519     department:
            83520         (i) the governor;
            83521         (ii) the attorney general;
            83522         (iii) a justice or judge of the courts of record;
            83523         (iv) members of the Board of Pardons and Parole;
            83524         (v) members of the Legislature;
            83525         (vi) the sheriff, district attorney, and county attorney for the county in which the

            83526     correctional facility is located; and
            83527         (vii) any other persons authorized under rules prescribed by the department or court
            83528     order.
            83529         (b) Any person acting under a court order may visit or correspond with any inmate
            83530     without the consent of the department provided the department has received notice of, and is
            83531     permitted to respond to, the court order. The court shall consider department policy when
            83532     making its order.
            83533         (c) The department may limit access to correctional facilities when the department or
            83534     governor declares an emergency or when there is a riot or other disturbance.
            83535         (2) (a) A person may not visit with any offender at any correctional facility, other than
            83536     under Subsection (1), without the consent of the department.
            83537         (b) Offenders and all visitors, including those listed in Subsection (1), may be required
            83538     to submit to a search or inspection of their persons and properties as a condition of visitation.
            83539         (3) The department shall make rules under [Title 63, Chapter 46a] Title 63G, Chapter
            83540     3, Utah Administrative Rulemaking Act, establishing guidelines for providing written notice to
            83541     visitors regarding prohibited items and regarding the fact that under state law all visitors may be
            83542     required to submit to a search of their persons and properties as a condition of visitation.
            83543         (4) Offenders housed at any correctional facility may send and receive correspondence,
            83544     subject to the rules of the department. All correspondence is subject to search, consistent with
            83545     department rules.
            83546         Section 2031. Section 64-13-20 is amended to read:
            83547          64-13-20. Investigative services -- Presentence investigations and diagnostic
            83548      evaluations.
            83549         (1) The department shall:
            83550         (a) provide investigative and diagnostic services and prepare reports to:
            83551         (i) assist the courts in sentencing;
            83552         (ii) assist the Board of Pardons and Parole in its decisionmaking responsibilities
            83553     regarding offenders;

            83554         (iii) assist the department in managing offenders; and
            83555         (iv) assure the professional and accountable management of the department;
            83556         (b) establish standards for providing investigative and diagnostic services based on
            83557     available resources, giving priority to felony cases;
            83558         (c) employ staff for the purpose of conducting:
            83559         (i) thorough presentence investigations of the social, physical, and mental conditions
            83560     and backgrounds of offenders;
            83561         (ii) examinations when required by the court or the Board of Pardons and Parole; and
            83562         (iii) thorough diagnostic evaluations of offenders as the court finds necessary to
            83563     supplement the presentence investigation report under Section 76-3-404 .
            83564         (2) The department may provide recommendations concerning appropriate measures to
            83565     be taken regarding offenders.
            83566         (3) (a) The presentence diagnostic evaluation and investigation reports prepared by the
            83567     department are protected as defined in Section [ 63-2-304 ] 63G-2-305 and after sentencing may
            83568     not be released except by express court order or by rules made by the Department of
            83569     Corrections.
            83570         (b) The reports are intended only for use by:
            83571         (i) the court in the sentencing process;
            83572         (ii) the Board of Pardons and Parole in its decisionmaking responsibilities; and
            83573         (iii) the department in the supervision, confinement, and treatment of the offender.
            83574         (4) Presentence diagnostic evaluation and investigation reports shall be made available
            83575     upon request to other correctional programs within the state if the offender who is the subject
            83576     of the report has been committed or is being evaluated for commitment to the facility for
            83577     treatment as a condition of probation or parole.
            83578         (5) (a) The presentence investigation reports shall include a victim impact statement in
            83579     all felony cases and in misdemeanor cases if the defendant caused bodily harm or death to the
            83580     victim.
            83581         (b) Victim impact statements shall:

            83582         (i) identify the victim of the offense;
            83583         (ii) itemize any economic loss suffered by the victim as a result of the offense;
            83584         (iii) identify any physical, mental, or emotional injuries suffered by the victim as a result
            83585     of the offense, and the seriousness and permanence;
            83586         (iv) describe any change in the victim's personal welfare or familial relationships as a
            83587     result of the offense;
            83588         (v) identify any request for mental health services initiated by the victim or the victim's
            83589     family as a result of the offense; and
            83590         (vi) contain any other information related to the impact of the offense upon the victim
            83591     or the victim's family that the court requires.
            83592         (6) If the victim is deceased; under a mental, physical, or legal disability; or otherwise
            83593     unable to provide the information required under this section, the information may be obtained
            83594     from the personal representative, guardian, or family members, as necessary.
            83595         (7) The department shall employ staff necessary to pursue investigations of complaints
            83596     from the public, staff, or offenders regarding the management of corrections programs.
            83597         Section 2032. Section 64-13-21 is amended to read:
            83598          64-13-21. Supervision of sentenced offenders placed in community -- Rulemaking
            83599      -- POST certified parole or probation officers and peace officers -- Duties -- Supervision
            83600      fee.
            83601         (1) (a) The department, except as otherwise provided by law, shall supervise sentenced
            83602     offenders placed in the community on probation by the courts, on parole by the Board of
            83603     Pardons and Parole, or upon acceptance for supervision under the terms of the Interstate
            83604     Compact for the Supervision of Parolees and Probationers.
            83605         (b) Standards for the supervision of offenders shall be established by the department in
            83606     accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
            83607     Act, giving priority, based on available resources, to felony offenders.
            83608         (2) Employees of the department who are POST certified as law enforcement officers
            83609     or correctional officers and who are designated as parole and probation officers by the executive

            83610     director have the following duties:
            83611         (a) monitoring, investigating, and supervising a parolee's or probationer's compliance
            83612     with the conditions of the parole or probation agreement;
            83613         (b) investigating or apprehending any offender who has escaped from the custody of the
            83614     department or absconded from supervision;
            83615         (c) providing investigative services for the courts, the department, or the Board of
            83616     Pardons and Parole;
            83617         (d) supervising any offender during transportation; or
            83618         (e) collecting DNA specimens when the specimens are required under Section
            83619      53-10-404 .
            83620         (3) (a) A monthly supervision fee of $30 shall be collected from each offender on
            83621     probation or parole. The fee may be suspended or waived by the department upon a showing
            83622     by the offender that imposition would create a substantial hardship or if the offender owes
            83623     restitution to a victim.
            83624         (b) (i) The department shall make rules in accordance with [Title 63, Chapter 46a] Title
            83625     63G, Chapter 3, Utah Administrative Rulemaking Act, specifying the criteria for suspension or
            83626     waiver of the supervision fee and the circumstances under which an offender may request a
            83627     hearing.
            83628         (ii) In determining whether the imposition of the supervision fee would constitute a
            83629     substantial hardship, the department shall consider the financial resources of the offender and
            83630     the burden that the fee would impose, with regard to the offender's other obligations.
            83631         Section 2033. Section 64-13-25 is amended to read:
            83632          64-13-25. Standards for programs -- Audits.
            83633         (1) To promote accountability and to ensure safe and professional operation of
            83634     correctional programs, the department shall establish minimum standards for the organization
            83635     and operation of its programs.
            83636         (a) The standards shall be promulgated according to state rulemaking provisions.
            83637     Those standards that apply to offenders are exempt from the provisions of [Title 63, Chapter

            83638     46a] Title 63G, Chapter 3, the Utah Administrative Rulemaking Act. Offenders are not a class
            83639     of persons under that act.
            83640         (b) Standards shall provide for inquiring into and processing offender complaints.
            83641         (2) There shall be an audit for compliance with standards according to policies and
            83642     procedures established by the department, for continued operation of correctional programs.
            83643         (a) At least every three years, the department shall internally audit all programs for
            83644     compliance with established standards.
            83645         (b) All financial statements and accounts of the department shall be reviewed during the
            83646     audit. Written review shall be provided to the managers of the programs and the executive
            83647     director of the department.
            83648         (c) The reports shall be classified as confidential internal working papers and access is
            83649     available at the discretion of the executive director or the governor, or upon court order.
            83650         Section 2034. Section 64-13-38 is amended to read:
            83651          64-13-38. Emergency release due to overcrowding.
            83652         (1) When the executive director of the department finds that the inmate population of
            83653     the Utah State Prison has exceeded physical capacity for at least 45 calendar days, [he] the
            83654     executive director may:
            83655         (a) notify the governor that an overcrowding emergency exists and provide him with
            83656     information relevant to that determination; and
            83657         (b) notify the Board of Pardons and Parole of the existence of the overcrowding
            83658     emergency so that the board may commence emergency releases pursuant to Subsection (2).
            83659         (2) Upon the governor's receipt of notification of the existence of an emergency release,
            83660     the department shall:
            83661         (a) notify the board of the number of inmates who need to be released in order to
            83662     eliminate the overcrowding emergency;
            83663         (b) in cooperation and consultation with the board, compile a list of inmates by
            83664     chronological order according to their existing parole release dates, sufficient to eliminate the
            83665     overcrowding emergency; and

            83666         (c) for each inmate listed in accordance with Subsection (2)(b), notify the board if the
            83667     department has any reason to believe that the inmate has violated a disciplinary rule or for some
            83668     other reason recommends that the inmate's existing parole date be rescinded.
            83669         (3) Unless the board has identified a reason to believe that the inmate's existing parole
            83670     date should be rescinded, the parole release date of each inmate identified in Subsection (2)(b)
            83671     may be advanced a sufficient number of days to allow for release.
            83672         (4) When the process described in Subsections (2) and (3) has been completed, the
            83673     board may order the release of the eligible inmates.
            83674         (5) The department shall:
            83675         (a) send to the Commission on Criminal and Juvenile Justice a list of names of the
            83676     inmates released under this section; and
            83677         (b) provide the name and address of each inmate to the local law enforcement agency
            83678     for the political subdivision in which the inmate intends to reside.
            83679         (6) The department shall inform the governor when the emergency release has been
            83680     completed.
            83681         (7) The board shall make rules in accordance with [Title 63, Chapter 46a] Title 63G,
            83682     Chapter 3, Utah Administrative Rulemaking Act, to carry out the provisions of this section.
            83683         Section 2035. Section 64-13-39.5 is amended to read:
            83684          64-13-39.5. Definitions -- Health care for chronically or terminally ill offenders --
            83685      Notice to health care facility.
            83686         (1) As used in this section:
            83687         (a) "Department or agency" means the Utah Department of Corrections or a department
            83688     of corrections or government entity responsible for placing an offender in a facility located in
            83689     Utah.
            83690         (b) "Chronically ill" has the same meaning as in Section 31A-36-102 .
            83691         (c) "Facility" means an assisted living facility as defined in Subsection 26-21-2 (5) and a
            83692     nursing care facility as defined in Subsection 26-21-2 (17), except that transitional care units and
            83693     other long term care beds owned or operated on the premises of acute care hospitals or critical

            83694     care hospitals are not facilities for the purpose of this section.
            83695         (d) "Offender" means an inmate whom the department or agency has given an early
            83696     release, pardon, or parole due to a chronic or terminal illness.
            83697         (e) "Terminally ill" has the same meaning as in Subsection 31A-36-102 (11).
            83698         (2) If an offender from Utah or any other state is admitted as a resident of a facility due
            83699     to the chronic or terminal illness, the department or agency placing the offender shall:
            83700         (a) provide written notice to the administrator of the facility no later than 15 days prior
            83701     to the offender's admission as a resident of a facility, stating:
            83702         (i) the offense for which the offender was convicted and a description of the actual
            83703     offense;
            83704         (ii) the offender's status with the department or agency;
            83705         (iii) that the information provided by the department or agency regarding the offender
            83706     shall be provided to employees of the facility no later than ten days prior to the offender's
            83707     admission to the facility; and
            83708         (iv) the contact information for:
            83709         (A) the offender's parole officer and also a point of contact within the department or
            83710     agency, if the offender is on parole; and
            83711         (B) a point of contact within the department or agency, if the offender is not under
            83712     parole supervision but was given an early release or pardon due to a chronic or terminal illness;
            83713         (b) make available to the public on the Utah Department of Corrections' website and
            83714     upon request:
            83715         (i) the name and address of the facility where the offender resides; and
            83716         (ii) the date the offender was placed at the facility; and
            83717         (c) provide a training program for employees who work in a facility where offenders
            83718     reside, and if the offender is placed at the facility by:
            83719         (i) the Utah Department of Corrections, the department shall provide the training
            83720     program for the employees; and
            83721         (ii) by a department or agency from another state, that state's department or agency

            83722     shall arrange with the Utah Department of Corrections to provide the training required by this
            83723     Subsection (2), if training has not already been provided by the Utah Department of
            83724     Corrections, and shall provide to the Utah Department of Corrections any necessary
            83725     compensation for this service.
            83726         (3) The administrator of the facility shall:
            83727         (a) provide residents of the facility or their guardians notice that a convicted felon is
            83728     being admitted to the facility no later than ten days prior to the offender's admission to the
            83729     facility;
            83730         (b) advise potential residents or their guardians of persons under Subsection (2) who
            83731     are current residents of the facility; and
            83732         (c) provide training, offered by the Utah Department of Corrections, in the safe
            83733     management of offenders for all employees.
            83734         (4) The Utah Department of Corrections shall make rules under [Title 63, Chapter 46a]
            83735     Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing:
            83736         (a) a consistent format and procedure for providing notification to facilities and
            83737     information to the public in compliance with Subsection (2); and
            83738         (b) a training program, in compliance with Subsection (3) for employees, who work at
            83739     facilities where offenders reside to ensure the safety of facility residents and employees.
            83740         Section 2036. Section 64-13-41 is amended to read:
            83741          64-13-41. Limitations on offender access to sexually explicit material.
            83742         (1) As used in this section:
            83743         (a) (i) "Commercially published information or material" means any book, booklet,
            83744     pamphlet, magazine, periodical, newsletter, or similar document, including stationery and
            83745     greeting cards, and video and audio tapes, disks, or other recording, that is distributed or made
            83746     available through any means or media for a commercial purpose.
            83747         (ii) "Commercially published information or material" includes an extraction,
            83748     photocopy, clipping, or electronically created copy made from any of the items under
            83749     Subsection (1)(a)(i).

            83750         (b) (i) "Features nudity" means the information or material:
            83751         (A) that, in the case of a one-time publication or issue, promotes itself based upon
            83752     depictions of nudity or sexually explicit conduct; or
            83753         (B) that, in the case of information or material other than under Subsection (1)(b)(i)(A),
            83754     contains depictions of nudity or sexually explicit conduct on a routine or regular basis.
            83755         (ii) The department may by rule, pursuant to [Title 63, Chapter 46a] Title 63G, Chapter
            83756     3, Utah Administrative Rulemaking Act, exclude from the definition in Subsection (1)(b)(i)
            83757     information or material containing nudity that is illustrative of medical, educational, or
            83758     anthropological content.
            83759         (c) "Nudity" means a pictorial depiction where genitalia or female breasts are exposed.
            83760         (d) "Offender" means any person who has been convicted of a crime and is housed in a
            83761     prison, jail, youth detention facility, or community correctional center.
            83762         (e) "Sexually explicit" means a pictorial depiction of actual or simulated sexual acts,
            83763     including sexual intercourse, sodomy, or masturbation.
            83764         (f) "State funds" means state or local funding provided to the department, and includes
            83765     legislative appropriations to the department, dedicated credits, grants, and monies for jail
            83766     reimbursement to county correctional facilities under Title 64, Chapter 13, Department of
            83767     Corrections - State Prison, private providers, and contractors.
            83768         (2) State funds may not be used to distribute or make available any commercially
            83769     published information or material to an offender when the state employee, contractor, or private
            83770     provider who has the authority to expend the funds knows that the commercially published
            83771     information or material is sexually explicit or features nudity.
            83772         (3) (a) When the department rejects commercially published information or material for
            83773     distribution to an offender under this section, the department shall advise the publisher or sender
            83774     that it may request reconsideration by the department of the decision to reject the material.
            83775     However, the department need advise the publisher or sender only once in the case of
            83776     information or material that on a routine or regular basis either depicts sexually explicit material
            83777     or features nudity.

            83778         (b) The department shall make rules pursuant to [Title 63, Chapter 46a] Title 63G,
            83779     Chapter 3, Utah Administrative Rulemaking Act, to establish an administrative reconsideration
            83780     process.
            83781         (c) For purposes of extraordinary relief under Rule 65B, Utah Rules of Civil Procedure,
            83782     this administrative reconsideration process is a plain, speedy, and adequate legal remedy that
            83783     must be exhausted before extraordinary relief is available.
            83784         (d) There is no right to judicial review of the department's decision under this section to
            83785     reject material for distribution.
            83786         (4) This section does not apply to sexually explicit material used under Section
            83787      76-10-1207.5 for the assessment or treatment of an offender.
            83788         Section 2037. Section 64-13a-13 is amended to read:
            83789          64-13a-13. Purchases of material -- Exemption.
            83790         (1) The Division of Correctional Industries is exempt from the provisions of [Title 63,
            83791     Chapter 56] Title 63G, Chapter 6, Utah Procurement Code, in respect to goods or services
            83792     purchased by or sold to the department.
            83793         (2) The purchase of raw materials for use by the division in manufacturing or
            83794     processing products for resale is exempt from the powers and duties of the state purchasing
            83795     agent.
            83796         Section 2038. Section 65A-1-4 is amended to read:
            83797          65A-1-4. Division of Forestry, Fire and State Lands -- Creation -- Power and
            83798      authority.
            83799         (1) (a) The Division of Forestry, Fire and State Lands is created within the Department
            83800     of Natural Resources under the administration and general supervision of the executive director
            83801     of the department.
            83802         (b) The division is the executive authority for the management of sovereign lands, and
            83803     the state's mineral estates on lands other than school and institutional trust lands, and shall
            83804     provide for forestry and fire control activities as required in Section 65A-8-101 .
            83805         (2) The division shall adopt rules under [Title 63, Chapter 46a] Title 63G, Chapter 3,

            83806     Utah Administrative Rulemaking Act, necessary to fulfill the purposes of this title.
            83807         (3) The director of the Division of Forestry, Fire and State Lands is the executive and
            83808     administrative head of the division and shall be a person experienced in administration and
            83809     management of natural resources.
            83810         (4) The director shall inform the council:
            83811         (a) in an annual meeting of the division's plans, policies, and budget; and
            83812         (b) of policy changes and developing conflicts.
            83813         (5) The director shall give the council an opportunity to advise on the changes and
            83814     conflicts.
            83815         (6) (a) An aggrieved party to a final action by the director may appeal that action to the
            83816     executive director of the Department of Natural Resources within 20 days after the action.
            83817         (b) The executive director shall rule on the director's action within 20 days after receipt
            83818     of the appeal.
            83819         Section 2039. Section 65A-8-105 is amended to read:
            83820          65A-8-105. Urban and community forestry program.
            83821         (1) An urban and community forestry program is created within the division.
            83822         (2) The purpose of the program is to encourage the planting and maintenance of trees
            83823     within municipalities and unincorporated communities.
            83824         (3) The division may:
            83825         (a) advise and assist municipalities, counties, and other public and private entities in
            83826     developing and coordinating policies, programs, and activities promoting urban and community
            83827     forestry;
            83828         (b) receive, by following the procedures and requirements of [Title 63, Chapter 38e]
            83829     Title 63J, Chapter 5, Federal Funds Procedures, federal funds for the urban and community
            83830     forestry program; and
            83831         (c) provide grants to municipalities and counties for urban and community forestry
            83832     programs and cooperative projects.
            83833         (4) The division shall:

            83834         (a) develop a public education program to inform tree care professionals and citizens of
            83835     the hazards involved with the planting of new trees and the maintenance of existing trees near
            83836     overhead power lines and highways; and
            83837         (b) develop and implement a program of public awareness to inform citizens about the
            83838     benefits of planting trees in urban areas and how to maintain trees.
            83839         Section 2040. Section 65A-8-207 is amended to read:
            83840          65A-8-207. Division to administer Wildland Fire Suppression Fund --
            83841      Rulemaking -- Procedures.
            83842         (1) By following the procedures and requirements of [Title 63, Chapter 46a] Title 63G,
            83843     Chapter 3, Utah Administrative Rulemaking Act, the division shall make rules to administer the
            83844     Wildland Fire Suppression Fund, including rules:
            83845         (a) requiring documentation for:
            83846         (i) the number of acres of privately or county-owned land in the unincorporated area of
            83847     a participating county; and
            83848         (ii) an acre or real property exempt in Subsection 65A-8-205 (2)(b);
            83849         (b) describing the method or formula for determining:
            83850         (i) normal fire suppression costs; and
            83851         (ii) equity payments required by Section 65A-8-205 ; and
            83852         (c) specifying fire suppression and presuppression costs that may be paid with
            83853     disbursements from the fund.
            83854         (2) By following the procedures and requirements of [Title 63, Chapter 46b] Title 63G,
            83855     Chapter 4, Administrative Procedures Act, the division shall determine whether an acre or real
            83856     property is eligible for the exemption provided in Subsection 65A-8-205 (2)(b).
            83857         Section 2041. Section 65A-8a-103 is amended to read:
            83858          65A-8a-103. Registration of operators.
            83859         (1) An operator intending to conduct forest practices in Utah, except a landowner
            83860     conducting forest practices on [his or her] the landowner's own land, shall register with the
            83861     division.

            83862         (2) The operator shall submit the following information to the division:
            83863         (a) the name of the company;
            83864         (b) the name of the state where the company is incorporated; and
            83865         (c) the name, telephone number, and address of a company officer and an
            83866     on-the-ground supervisor.
            83867         (3) In consultation with industry representatives, the division may establish, by rule,
            83868     minimum requirements for registration of operators in accordance with [Title 63, Chapter 46a]
            83869     Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
            83870         (4) The division shall make available to landowners a list of registered operators.
            83871         Section 2042. Section 67-1-2 is amended to read:
            83872          67-1-2. Sending list of gubernatorial nominees to Senate and to Office of
            83873      Legislative Research and General Counsel.
            83874         (1) Unless waived by a majority of the president of the Senate, the Senate majority
            83875     leader, and the Senate minority leader, 15 days before any Senate session to confirm any
            83876     gubernatorial nominee, except a judicial appointment, the governor shall send to each member
            83877     of the Senate and to the Office of Legislative Research and General Counsel:
            83878         (a) a list of each nominee for an office or position made by the governor in accordance
            83879     with the Utah Constitution and state law; and
            83880         (b) any information that may support or provide biographical information about the
            83881     nominee, including resumes and curriculum vitae.
            83882         (2) When the governor makes a judicial appointment, the governor shall immediately
            83883     provide to the president of the Senate and the Office of Legislative Research and General
            83884     Counsel:
            83885         (a) the name of the judicial appointee; and
            83886         (b) the judicial appointee's:
            83887         (i) resume;
            83888         (ii) complete file of all the application materials the governor received from the Judicial
            83889     Nominating Commission; and

            83890         (iii) any other related documents, including any letters received by the governor about
            83891     the appointee, unless the letter specifically directs that it may not be shared.
            83892         (3) The governor shall inform the president of the Senate and the Office of Legislative
            83893     Research and General Counsel of the number of letters withheld pursuant to Subsection
            83894     (2)(b)(iii).
            83895         (4) (a) Letters of inquiry submitted by any judge at the request of any judicial
            83896     nominating commission shall be classified as private in accordance with Section [ 63-2-302 ]
            83897      63G-2-302 .
            83898         (b) All other records received from the governor pursuant to this Subsection (4) may be
            83899     classified as private in accordance with Section [ 63-2-302 ] 63G-2-302 .
            83900         (5) The Senate shall consent or refuse to give its consent to the nomination or judicial
            83901     appointment.
            83902         Section 2043. Section 67-1a-2.5 is amended to read:
            83903          67-1a-2.5. Fees of lieutenant governor.
            83904         In addition to the fees prescribed by Title 16, Chapter 6a, Utah Revised Nonprofit
            83905     Corporation Act, and Title 16, Chapter 10a, Utah Revised Business Corporation Act, the
            83906     lieutenant governor shall receive and determine fees pursuant to Section [ 63-38-3.2 ] 63J-1-303
            83907     for the following:
            83908         (1) for a copy of any law, resolution, record, or other document or paper on file in the
            83909     lieutenant governor's office, other than documents or papers filed under Title 16, Chapter 6a,
            83910     Utah Revised Nonprofit Corporation Act, and Title 16, Chapter 10a, Utah Revised Business
            83911     Corporation Act;
            83912         (2) for affixing certificate and the Great Seal of the state, except on documents filed
            83913     under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, and Title 16, Chapter
            83914     10a, Utah Revised Business Corporation Act;
            83915         (3) for each commission signed by the governor, except that no charge may be made for
            83916     commissions to public officers serving without compensation;
            83917         (4) for each warrant of arrest issued by the governor and attested by the lieutenant

            83918     governor upon the requisition of any other state or territory;
            83919         (5) for recording miscellaneous papers or documents;
            83920         (6) for filing any paper or document not otherwise provided for; and
            83921         (7) for searching records and archives of the state, except that no member of the
            83922     Legislature or other state or county officer may be charged for any search relative to matters
            83923     appertaining to the duties of [his] the member or officer's office or for a certified copy of any
            83924     law or resolution relative to [his] the member or officer's official duties passed by the
            83925     Legislature.
            83926         Section 2044. Section 67-3-1 is amended to read:
            83927          67-3-1. Functions and duties.
            83928         (1) (a) The state auditor is the auditor of public accounts and is independent of any
            83929     executive or administrative officers of the state.
            83930         (b) The state auditor is not limited in the selection of personnel or in the determination
            83931     of the reasonable and necessary expenses of [his] the state auditor's office.
            83932         (2) The state auditor shall examine and certify annually in respect to each fiscal year,
            83933     financial statements showing:
            83934         (a) the condition of the state's finances;
            83935         (b) the revenues received or accrued;
            83936         (c) expenditures paid or accrued;
            83937         (d) the amount of unexpended or unencumbered balances of the appropriations to the
            83938     agencies, departments, divisions, commissions, and institutions; and
            83939         (e) the cash balances of the funds in the custody of the state treasurer.
            83940         (3) (a) The state auditor shall:
            83941         (i) audit each permanent fund, each special fund, the General Fund, and the accounts of
            83942     any department of state government or any independent agency or public corporation as the law
            83943     requires, as the auditor determines is necessary, or upon request of the governor or the
            83944     Legislature;
            83945         (ii) perform the audits in accordance with generally accepted auditing standards and

            83946     other auditing procedures as promulgated by recognized authoritative bodies;
            83947         (iii) as the auditor determines is necessary, conduct the audits to determine:
            83948         (A) honesty and integrity in fiscal affairs;
            83949         (B) accuracy and reliability of financial statements;
            83950         (C) effectiveness and adequacy of financial controls; and
            83951         (D) compliance with the law.
            83952         (b) If any state entity receives federal funding, the state auditor shall ensure that the
            83953     audit is performed in accordance with federal audit requirements.
            83954         (c) (i) The costs of the federal compliance portion of the audit may be paid from an
            83955     appropriation to the state auditor from the General Fund.
            83956         (ii) If an appropriation is not provided, or if the federal government does not specifically
            83957     provide for payment of audit costs, the costs of the federal compliance portions of the audit
            83958     shall be allocated on the basis of the percentage that each state entity's federal funding bears to
            83959     the total federal funds received by the state.
            83960         (iii) The allocation shall be adjusted to reflect any reduced audit time required to audit
            83961     funds passed through the state to local governments and to reflect any reduction in audit time
            83962     obtained through the use of internal auditors working under the direction of the state auditor.
            83963         (4) (a) Except as provided in Subsection (4)(b), the state auditor shall, in addition to
            83964     financial audits, and as the auditor determines is necessary, conduct performance and special
            83965     purpose audits, examinations, and reviews of any entity that receives public funds, including a
            83966     determination of any or all of the following:
            83967         (i) the honesty and integrity of all its fiscal affairs;
            83968         (ii) whether or not its administrators have faithfully complied with legislative intent;
            83969         (iii) whether or not its operations have been conducted in an efficient, effective, and
            83970     cost-efficient manner;
            83971         (iv) whether or not its programs have been effective in accomplishing the intended
            83972     objectives; and
            83973         (v) whether or not its management, control, and information systems are adequate and

            83974     effective.
            83975         (b) The auditor may not conduct performance and special purpose audits, examinations,
            83976     and reviews of any entity that receives public funds if the entity:
            83977         (i) has an elected auditor; and
            83978         (ii) has, within the entity's last budget year, had its financial statements or performance
            83979     formally reviewed by another outside auditor.
            83980         (5) The state auditor shall administer any oath or affirmation necessary to the
            83981     performance of the duties of the auditor's office, and may subpoena witnesses and documents,
            83982     whether electronic or otherwise, and examine into any matter that the auditor considers
            83983     necessary.
            83984         (6) The state auditor may require all persons who have had the disposition or
            83985     management of any property of this state or its political subdivisions to submit statements
            83986     regarding it at the time and in the form that the auditor requires.
            83987         (7) The state auditor shall:
            83988         (a) except where otherwise provided by law, institute suits in Salt Lake County in
            83989     relation to the assessment, collection, and payment of its revenues against:
            83990         (i) persons who by any means have become entrusted with public monies or property
            83991     and have failed to pay over or deliver those monies or property; and
            83992         (ii) all debtors of the state;
            83993         (b) collect and pay into the state treasury all fees received by the state auditor;
            83994         (c) perform the duties of a member of all boards of which the state auditor is a member
            83995     by the constitution or laws of the state, and any other duties that are prescribed by the
            83996     constitution and by law;
            83997         (d) stop the payment of the salary of any state official or state employee who:
            83998         (i) refuses to settle accounts or provide required statements about the custody and
            83999     disposition of public funds or other state property;
            84000         (ii) refuses, neglects, or ignores the instruction of the state auditor or any controlling
            84001     board or department head with respect to the manner of keeping prescribed accounts or funds;

            84002     or
            84003         (iii) fails to correct any delinquencies, improper procedures, and errors brought to the
            84004     official's or employee's attention;
            84005         (e) establish accounting systems, methods, and forms for public accounts in all taxing or
            84006     fee-assessing units of the state in the interest of uniformity, efficiency, and economy;
            84007         (f) superintend the contractual auditing of all state accounts;
            84008         (g) subject to Subsection (8), withhold state allocated funds or the disbursement of
            84009     property taxes from any state taxing or fee-assessing unit, if necessary, to ensure that officials
            84010     and employees in those taxing units of the state comply with state laws and procedures in the
            84011     budgeting, expenditures, and financial reporting of public funds; and
            84012         (h) subject to Subsection (9), withhold the disbursement of tax monies from any county,
            84013     if necessary, to ensure that officials and employees in the county comply with Section
            84014      59-2-303.1 .
            84015         (8) Except as otherwise provided by law, the state auditor may not withhold funds
            84016     under Subsection (7)(g) until a taxing or fee-assessing unit has received formal written notice of
            84017     noncompliance from the auditor and has been given 60 days to make the specified corrections.
            84018         (9) The state auditor may not withhold funds under Subsection (7)(h) until a county has
            84019     received formal written notice of noncompliance from the auditor and has been given 60 days to
            84020     make the specified corrections.
            84021         (10) The state auditor shall:
            84022         (a) establish audit guidelines and procedures for audits of local mental health and
            84023     substance abuse authorities and their contract providers, conducted pursuant to Title 17,
            84024     Chapter 43, Parts 2, Local Substance Abuse Authorities and 3, Local Mental Health
            84025     Authorities, Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal
            84026     Organizations, and Other Local Entities Act, and Title 62A, Chapter 15, Substance Abuse and
            84027     Mental Health Act; and
            84028         (b) ensure that those guidelines and procedures provide assurances to the state that:
            84029         (i) state and federal funds appropriated to local mental health authorities are used for

            84030     mental health purposes;
            84031         (ii) a private provider under an annual or otherwise ongoing contract to provide
            84032     comprehensive mental health programs or services for a local mental health authority is in
            84033     compliance with state and local contract requirements, and state and federal law;
            84034         (iii) state and federal funds appropriated to local substance abuse authorities are used
            84035     for substance abuse programs and services; and
            84036         (iv) a private provider under an annual or otherwise ongoing contract to provide
            84037     comprehensive substance abuse programs or services for a local substance abuse authority is in
            84038     compliance with state and local contract requirements, and state and federal law.
            84039         (11) The state auditor may, in accordance with the auditor's responsibilities for political
            84040     subdivisions of the state as provided in Title 51, Chapter 2a, Accounting Reports from Political
            84041     Subdivisions, Interlocal Organizations, and Other Local Entities Act, initiate audits or
            84042     investigations of any political subdivision that are necessary to determine honesty and integrity
            84043     in fiscal affairs, accuracy and reliability of financial statements, effectiveness, and adequacy of
            84044     financial controls and compliance with the law.
            84045         (12) (a) The state auditor may not audit work that the state auditor performed before
            84046     becoming state auditor.
            84047         (b) If the state auditor has previously been a responsible official in state government
            84048     whose work has not yet been audited, the Legislature shall:
            84049         (i) designate how that work shall be audited; and
            84050         (ii) provide additional funding for those audits, if necessary.
            84051         (13) The state auditor shall:
            84052         (a) with the assistance, advice, and recommendations of an advisory committee
            84053     appointed by the state auditor from among local district boards of trustees, officers, and
            84054     employees and special service district boards, officers, and employees:
            84055         (i) prepare a Uniform Accounting Manual for Local Districts that:
            84056         (A) prescribes a uniform system of accounting and uniform budgeting and reporting
            84057     procedures for local districts under Title 17B, Limited Purpose Local Government Entities -

            84058     Local Districts, and special service districts under Title 17A, Chapter 2, Part 13, Utah Special
            84059     Service District Act;
            84060         (B) conforms with generally accepted accounting principles; and
            84061         (C) prescribes reasonable exceptions and modifications for smaller districts to the
            84062     uniform system of accounting, budgeting, and reporting;
            84063         (ii) maintain the manual under Subsection (13)(a) so that it continues to reflect
            84064     generally accepted accounting principles;
            84065         (iii) conduct a continuing review and modification of procedures in order to improve
            84066     them;
            84067         (iv) prepare and supply each district with suitable budget and reporting forms; and
            84068         (v) prepare instructional materials, conduct training programs, and render other services
            84069     considered necessary to assist local districts and special service districts in implementing the
            84070     uniform accounting, budgeting, and reporting procedures; and
            84071         (b) continually analyze and evaluate the accounting, budgeting, and reporting practices
            84072     and experiences of specific local districts and special service districts selected by the state
            84073     auditor and make the information available to all districts.
            84074         (14) (a) The following records in the custody or control of the state auditor are
            84075     protected records under [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
            84076     Access and Management Act:
            84077         (i) records that would disclose information relating to allegations of personal
            84078     misconduct, gross mismanagement, or illegal activity of a past or present governmental
            84079     employee if the information or allegation cannot be corroborated by the state auditor through
            84080     other documents or evidence, and the records relating to the allegation are not relied upon by
            84081     the state auditor in preparing a final audit report;
            84082         (ii) records and audit workpapers to the extent they would disclose the identity of a
            84083     person who during the course of an audit, communicated the existence of any waste of public
            84084     funds, property, or manpower, or a violation or suspected violation of a law, rule, or regulation
            84085     adopted under the laws of this state, a political subdivision of the state, or any recognized entity

            84086     of the United States, if the information was disclosed on the condition that the identity of the
            84087     person be protected;
            84088         (iii) before an audit is completed and the final audit report is released, records or drafts
            84089     circulated to a person who is not an employee or head of a governmental entity for their
            84090     response or information;
            84091         (iv) records that would disclose an outline or part of any audit survey plans or audit
            84092     program; and
            84093         (v) requests for audits, if disclosure would risk circumvention of an audit.
            84094         (b) The provisions of Subsections (14)(a)(i), (ii), and (iii) do not prohibit the disclosure
            84095     of records or information that relate to a violation of the law by a governmental entity or
            84096     employee to a government prosecutor or peace officer.
            84097         (c) The provisions of this Subsection (14) do not limit the authority otherwise given to
            84098     the state auditor to classify a document as public, private, controlled, or protected under [Title
            84099     63, Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act.
            84100         Section 2045. Section 67-4a-703 is amended to read:
            84101          67-4a-703. Interest and penalties.
            84102         (1) A person who fails to pay or deliver property within the time required by this
            84103     chapter shall pay interest to the administrator at the rate of 12% per annum on the property or
            84104     value of the property from the date the property should have been paid or delivered.
            84105         (2) (a) A person who willfully fails to file any report, or perform a duty required by this
            84106     chapter, or to pay or deliver property to the administrator as required by this chapter shall pay a
            84107     civil penalty equal to 20% of the value of the property that should have been paid or delivered.
            84108         (b) The administrator shall comply with the procedures and requirements of [Title 63,
            84109     Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in imposing civil penalties
            84110     under this section.
            84111         (3) (a) It is unlawful for any person to willfully refuse to pay or deliver property to the
            84112     administrator after written demand by the administrator as required by this chapter.
            84113         (b) Any person who violates this Subsection (3) is guilty of a class B misdemeanor.

            84114         (4) The administrator may, in appropriate circumstances:
            84115         (a) waive the payment of civil penalties;
            84116         (b) waive the payment of interest; or
            84117         (c) reduce the amount of the interest.
            84118         Section 2046. Section 67-5-15 is amended to read:
            84119          67-5-15. Records of the attorney general.
            84120         (1) A record provided to the Office of the Attorney General by a client governmental
            84121     entity shall be considered a record of the client governmental entity for purposes of [Title 63,
            84122     Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act, if the
            84123     client governmental entity retains a copy of the record.
            84124         (2) Notwithstanding Subsection [ 63-2-201 ] 63G-2-201 (5), records may be exchanged
            84125     between the Office of the Attorney General and a client governmental entity, without meeting
            84126     the requirements of Section [ 63-2-206 ] 63G-2-206 provided that they are used only for the
            84127     purpose of representing the client governmental entity.
            84128         Section 2047. Section 67-5-18 is amended to read:
            84129          67-5-18. Obscenity and Pornography Complaints Ombudsman -- Powers.
            84130         (1) As used in this section, "pornography" means material or a performance that meets
            84131     the requirements of Subsection 76-10-1203 (1).
            84132         (2) (a) There is created an Obscenity and Pornography Complaints Ombudsman in the
            84133     Office of the Attorney General.
            84134         (b) The attorney general shall hire an attorney licensed to practice law in Utah who has
            84135     knowledge of obscenity and pornography law and, if possible, who has a background or
            84136     expertise in investigating and prosecuting obscenity and pornography law violations to fill the
            84137     position.
            84138         (c) The person hired to fill the position is an exempt employee.
            84139         (d) The attorney general may hire clerks, interns, or other personnel to assist the
            84140     pornography complaints ombudsman.
            84141         (3) The Obscenity and Pornography Complaints Ombudsman shall:

            84142         (a) develop and maintain expertise in and understanding of laws designed to control or
            84143     eliminate obscenity and pornography and the legal standards governing the regulation or
            84144     elimination of obscenity and pornography;
            84145         (b) advise citizens and local governments about remedies to address instances of
            84146     obscenity and pornography in their communities;
            84147         (c) advise local governments about ways to strengthen local laws and ordinances
            84148     addressing obscenity and pornography;
            84149         (d) advise local governments about strategies to restrict, suppress, or eliminate
            84150     obscenity and pornography in their communities;
            84151         (e) at the request of the attorney general or a local government, assist a local
            84152     government in investigating and prosecuting state and local laws and ordinances addressing
            84153     obscenity or pornography;
            84154         (f) before beginning an investigation:
            84155         (i) contact the county, district, or city attorney within whose jurisdiction an
            84156     investigation by the Obscenity and Pornography Complaints Ombudsman will take place and
            84157     inform that county, district, or city attorney of the investigation; and
            84158         (ii) coordinate efforts and share records, in accordance with Section [ 63-2-206 ]
            84159      63G-2-206 , with the county, district, or city's attorney referred to in Subsection (3)(f)(i)
            84160     throughout the investigation;
            84161         (g) advise citizens about their options to address specific complaints about obscenity or
            84162     pornography in their communities;
            84163         (h) when requested by a citizen or local government official, arbitrate between citizens
            84164     and businesses to resolve complaints about obscenity or pornography;
            84165         (i) provide information to private citizens, civic groups, government entities, and other
            84166     interested parties about the dangers of obscenity and pornography, the current laws to restrict,
            84167     suppress, or eliminate pornography, and their rights and responsibilities under those laws;
            84168         (j) draft model ordinances that contain:
            84169         (i) various degrees of regulation of sexually-oriented businesses; and

            84170         (ii) options for local communities that can be used to regulate pornography and
            84171     obscenity;
            84172         (k) assist political subdivisions in:
            84173         (i) drafting model rules, regulations, and policies; and
            84174         (ii) providing recommendations for enforcing those rules, regulations, and policies;
            84175         (l) in conjunction with Utah's county and municipal prosecuting attorneys:
            84176         (i) review Utah's and Idaho's moral nuisance law;
            84177         (ii) draft a comprehensive moral nuisance law for Utah and a model ordinance for
            84178     municipalities and counties to provide an effective mechanism to abate and discourage obscenity
            84179     and pornography; and
            84180         (iii) present the draft to the Legislature's Judiciary Interim Committee before October
            84181     25, 2001; and
            84182         (m) establish a program to combat Internet pornography and to assist parents in
            84183     protecting their children from Internet pornography.
            84184         Section 2048. Section 67-5a-8 is amended to read:
            84185          67-5a-8. Administration.
            84186         (1) (a) The administration costs of this chapter, including council staff compensation,
            84187     shall be funded from appropriations made by the Legislature to the Office of the Attorney
            84188     General for the support of the council from the Public Safety Support Account established in
            84189     Section [ 63-63a-4 ] 51-9-404 .
            84190         (b) Funds available from other sources may also be appropriated by the Legislature to
            84191     the Office of the Attorney General for the administration of this chapter.
            84192         (2) In exercising its duties, the council shall minimize costs of administration and utilize
            84193     existing training facilities and resources where possible so the greatest portion of the funds
            84194     available are expended for training prosecuting attorneys.
            84195         (3) The council may reimburse council staff for travel and per diem expenses from the
            84196     appropriations made from the Public Safety Support Account to the Office of the Attorney
            84197     General for the support of the council, in an amount not to exceed the amounts approved by the

            84198     director of the Division of Finance.
            84199         Section 2049. Section 67-5b-107 is amended to read:
            84200          67-5b-107. Immunity -- Limited liability.
            84201         (1) Officers and employees performing services for two or more public agencies
            84202     pursuant to contracts executed under the provisions of this part are considered to be officers
            84203     and employees of the public agency employing their services, even though performing those
            84204     functions outside of the territorial limits of any one of the contracting public agencies, and are
            84205     considered to be officers and employees of public agencies in accordance with [Title 63,
            84206     Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah.
            84207         (2) The officers and employees of the center, while acting within the scope of their
            84208     authority, are not subject to any personal or civil liability resulting from carrying out any of the
            84209     purposes of a center under the provisions of [Title 63, Chapter 30d] Title 63G, Chapter 7,
            84210     Governmental Immunity Act of Utah.
            84211         (3) A volunteer is considered a government employee in accordance with Section
            84212      67-20-3 and entitled to immunity under the provisions of [Title 63, Chapter 30d] Title 63G,
            84213     Chapter 7, Governmental Immunity Act of Utah.
            84214         (4) A volunteer, other than one considered a government employee in accordance with
            84215     Section 67-20-3 , may not incur any personal financial liability for any tort claim or other action
            84216     seeking damage for an injury arising from any act or omission of the volunteer while providing
            84217     services for the nonprofit organization if:
            84218         (a) the individual was acting in good faith and reasonably believed he was acting within
            84219     the scope of [his] the individual's official functions and duties with the center; and
            84220         (b) the damage or injury was not caused by an intentional or knowing act by the
            84221     volunteer which constitutes illegal or wanton misconduct.
            84222         (5) The center is not liable for the acts or omissions of its volunteers in any
            84223     circumstance where the acts of its volunteers are not as described in Subsection (4) unless:
            84224         (a) the center had, or reasonably should have had, reasonable notice of the volunteer's
            84225     unfitness to provide services to the center under circumstances that make the center's use of the

            84226     volunteer reckless or wanton in light of that notice; or
            84227         (b) a business employer would be liable under the laws of this state if the act or
            84228     omission were the act or omission of one of its employees.
            84229         Section 2050. Section 67-16-3 is amended to read:
            84230          67-16-3. Definitions.
            84231         As used in this chapter:
            84232         (1) "Agency" means any department, division, agency, commission, board, council,
            84233     committee, authority, or any other institution of the state or any of its political subdivisions.
            84234         (2) "Agency head" means the chief executive or administrative officer of any agency.
            84235         (3) "Assist" means to act, or offer or agree to act, in such a way as to help, represent,
            84236     aid, advise, furnish information to, or otherwise provide assistance to a person or business
            84237     entity, believing that such action is of help, aid, advice, or assistance to such person or business
            84238     entity and with the intent to assist such person or business entity.
            84239         (4) "Business entity" means a sole proprietorship, partnership, association, joint
            84240     venture, corporation, firm, trust, foundation, or other organization or entity used in carrying on
            84241     a business.
            84242         (5) "Compensation" means anything of economic value, however designated, which is
            84243     paid, loaned, granted, given, donated, or transferred to any person or business entity by anyone
            84244     other than the governmental employer for or in consideration of personal services, materials,
            84245     property, or any other thing whatsoever.
            84246         (6) "Controlled, private, or protected information" means information classified as
            84247     controlled, private, or protected in [Title 63, Chapter 2] Title 63G, Chapter 2, Government
            84248     Records Access and Management Act, or other applicable provision of law.
            84249         (7) "Governmental action" means any action on the part of the state, a political
            84250     subdivision, or an agency, including:
            84251         (a) any decision, determination, finding, ruling, or order; and
            84252         (b) any grant, payment, award, license, contract, subcontract, transaction, decision,
            84253     sanction, or approval, or the denial thereof, or the failure to act in respect to.

            84254         (8) "Improper disclosure" means disclosure of controlled, private, or protected
            84255     information to any person who does not have the right to receive the information.
            84256         (9) "Legislative employee" means any officer or employee of the Legislature, or any
            84257     committee of the Legislature, who is appointed or employed to serve, either with or without
            84258     compensation, for an aggregate of less than 800 hours during any period of 365 days.
            84259     "Legislative employee" does not include legislators.
            84260         (10) "Legislator" means a member or member-elect of either house of the Legislature of
            84261     the state of Utah.
            84262         (11) "Political subdivision" means a district, county, school district, or any other
            84263     political subdivision of the state that is not an agency, but does not include municipalities.
            84264         (12) "Public employee" means a person who is not a public officer who is employed on
            84265     a full-time, part-time, or contract basis by the state or any of its political subdivisions. "Public
            84266     employee" does not include legislators or legislative employees.
            84267         (13) "Public officer" means all elected or appointed officers of the state or any of its
            84268     political subdivisions who occupy policymaking posts. "Public officer" does not include
            84269     legislators or legislative employees.
            84270         (14) "State" means the state of Utah.
            84271         (15) "Substantial interest" means the ownership, either legally or equitably, by an
            84272     individual, [his] the individual's spouse, or [his] the individual's minor children, of at least 10%
            84273     of the outstanding capital stock of a corporation or a 10% interest in any other business entity.
            84274         Section 2051. Section 67-16-4 is amended to read:
            84275          67-16-4. Improperly disclosing or using private, controlled, or protected
            84276      information -- Using position to secure privileges or exemptions -- Accepting employment
            84277      which would impair independence of judgment or ethical performance -- Exceptions.
            84278         (1) Except as provided in Subsection (3), it is an offense for a public officer, public
            84279     employee, or legislator, under circumstances not amounting to a violation of Section
            84280     [ 63-56-1001 ] 63G-6-1001 or 76-8-105 , to:
            84281         (a) accept employment or engage in any business or professional activity that he might

            84282     reasonably expect would require or induce him to improperly disclose controlled information
            84283     that he has gained by reason of his official position;
            84284         (b) disclose or improperly use controlled, private, or protected information acquired by
            84285     reason of his official position or in the course of official duties in order to further substantially
            84286     the officer's or employee's personal economic interest or to secure special privileges or
            84287     exemptions for himself or others;
            84288         (c) use or attempt to use his official position to:
            84289         (i) further substantially the officer's or employee's personal economic interest; or
            84290         (ii) secure special privileges or exemptions for himself or others;
            84291         (d) accept other employment that he might expect would impair his independence of
            84292     judgment in the performance of his public duties; or
            84293         (e) accept other employment that he might expect would interfere with the ethical
            84294     performance of his public duties.
            84295         (2) (a) Subsection (1) does not apply to the provision of education-related services to
            84296     public school students by public education employees acting outside their regular employment.
            84297         (b) The conduct referred to in Subsection (2)(a) is subject to Section 53A-1-402.5 .
            84298         (3) A county legislative body member who does not participate in the process of
            84299     selecting a mental health or substance abuse service provider does not commit an offense under
            84300     Subsection (1)(a) or (b) by:
            84301         (a) serving also as a member of the governing board of the provider of mental health or
            84302     substance abuse services under contract with the county; or
            84303         (b) discharging, in good faith, the duties and responsibilities of each position.
            84304         Section 2052. Section 67-16-5 is amended to read:
            84305          67-16-5. Accepting gift, compensation, or loan -- When prohibited.
            84306         (1) As used in this section, "economic benefit tantamount to a gift" includes:
            84307         (a) a loan at an interest rate that is substantially lower than the commercial rate then
            84308     currently prevalent for similar loans; and
            84309         (b) compensation received for private services rendered at a rate substantially exceeding

            84310     the fair market value of the services.
            84311         (2) It is an offense for a public officer or public employee, under circumstances not
            84312     amounting to a violation of Section [ 63-56-1001 ] 63G-6-1001 or 76-8-105 , to knowingly
            84313     receive, accept, take, seek, or solicit, directly or indirectly for himself or another a gift of
            84314     substantial value or a substantial economic benefit tantamount to a gift:
            84315         (a) that would tend improperly to influence a reasonable person in the person's position
            84316     to depart from the faithful and impartial discharge of the person's public duties;
            84317         (b) that the [person] public officer or public employee knows or that a reasonable
            84318     person in that position should know under the circumstances is primarily for the purpose of
            84319     rewarding the [person] public officer or public employee for official action taken; or
            84320         (c) if [he] the public officer or public employee recently has been, is now, or in the near
            84321     future may be involved in any governmental action directly affecting the donor or lender, unless
            84322     a disclosure of the gift, compensation, or loan and other relevant information has been made in
            84323     the manner provided in Section 67-16-6 .
            84324         (3) Subsection (2) does not apply to:
            84325         (a) an occasional nonpecuniary gift, having a value of not in excess of $50;
            84326         (b) an award publicly presented in recognition of public services;
            84327         (c) any bona fide loan made in the ordinary course of business; or
            84328         (d) a political campaign contribution.
            84329         Section 2053. Section 67-16-5.3 is amended to read:
            84330          67-16-5.3. Requiring donation, payment, or service to government agency in
            84331      exchange for approval -- When prohibited.
            84332         (1) It is an offense for a public officer, public employee, or legislator, under
            84333     circumstances not amounting to a violation of Section [ 63-56-1001 ] 63G-6-1001 or 76-8-105 ,
            84334     to demand from any person as a condition of granting any application or request for a permit,
            84335     approval, or other authorization, that the person donate personal property, money, or services
            84336     to any agency.
            84337         (2) (a) Subsection (1) does not apply to any donation of property, funds, or services to

            84338     an agency that is:
            84339         (i) expressly required by statute, ordinance, or agency rule;
            84340         (ii) mutually agreed to between the applicant and the entity issuing the permit, approval,
            84341     or other authorization;
            84342         (iii) made voluntarily by the applicant; or
            84343         (iv) a condition of a consent decree, settlement agreement, or other binding instrument
            84344     entered into to resolve, in whole or in part, an actual or threatened agency enforcement action.
            84345         (b) If a person donates property, funds, or services to an agency, the agency shall, as
            84346     part of the permit or other written authorization:
            84347         (i) identify that a donation has been made;
            84348         (ii) describe the donation;
            84349         (iii) certify, in writing, that the donation was voluntary; and
            84350         (iv) place that information in its files.
            84351         Section 2054. Section 67-16-6 is amended to read:
            84352          67-16-6. Receiving compensation for assistance in transaction involving an
            84353      agency -- Filing sworn statement.
            84354         (1) It is an offense for a public officer or public employee, under circumstances not
            84355     amounting to a violation of Section [ 63-56-1001 ] 63G-6-1001 or 76-8-105 , to receive or agree
            84356     to receive compensation for assisting any person or business entity in any transaction involving
            84357     an agency unless the public officer or public employee files a sworn, written statement
            84358     containing the information required by Subsection (2) with:
            84359         (a) the head of [his] the officer or employee's own agency;
            84360         (b) the agency head of the agency with which the transaction is being conducted; and
            84361         (c) the state attorney general.
            84362         (2) The statement shall contain:
            84363         (a) the name and address of the public officer or public employee involved;
            84364         (b) the name of the public officer's or public employee's agency;
            84365         (c) the name and address of the person or business entity being or to be assisted; and

            84366         (d) a brief description of:
            84367         (i) the transaction as to which service is rendered or is to be rendered; and
            84368         (ii) the nature of the service performed or to be performed.
            84369         (3) The statement required to be filed under Subsection (1) shall be filed within ten
            84370     days after the date of any agreement between the public officer or public employee and the
            84371     person or business entity being assisted or the receipt of compensation, whichever is earlier.
            84372         (4) The statement is public information and shall be available for examination by the
            84373     public.
            84374         Section 2055. Section 67-18-5 is amended to read:
            84375          67-18-5. Confidential, private, or protected documents excepted.
            84376         The right to examine and copy documents in an employee's personnel file is subject to
            84377     access provisions in [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access
            84378     and Management Act.
            84379         Section 2056. Section 67-19-5 is amended to read:
            84380          67-19-5. Department of Human Resource Management created -- Executive
            84381      director -- Compensation -- Staff.
            84382         (1) There is created the Department of Human Resource Management.
            84383         (2) (a) The department shall be administered by an executive director appointed by the
            84384     governor with the consent of the Senate.
            84385         (b) The executive director shall be a person with experience in human resource
            84386     management and shall be accountable to the governor for the executive director's performance
            84387     in office.
            84388         (3) The executive director may:
            84389         (a) appoint a personal secretary and a deputy director, both of whom shall be exempt
            84390     from career service; and
            84391         (b) appoint division directors and program managers who may be career service
            84392     exempt.
            84393         (4) (a) The executive director shall have full responsibility and accountability for the

            84394     administration of the statewide human resource management system.
            84395         (b) Except as provided in Section 67-19-6.1 , an agency may not perform human
            84396     resource functions without the consent of the executive director.
            84397         (5) Statewide human resource management rules adopted by the Department of Human
            84398     Resource Management in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            84399     Administrative Rulemaking Act, shall take precedence if there is a conflict with agency rules,
            84400     policies, or practices.
            84401         (6) The department may operate as an internal service fund agency in accordance with
            84402     Section [ 63-38-3.5 ] 63J-1-306 for the human resource functions the department provides.
            84403         Section 2057. Section 67-19-6 is amended to read:
            84404          67-19-6. Responsibilities of the executive director.
            84405         (1) The executive director shall:
            84406         (a) develop, implement, and administer a statewide program of human resource
            84407     management that will:
            84408         (i) aid in the efficient execution of public policy;
            84409         (ii) foster careers in public service for qualified employees; and
            84410         (iii) render assistance to state agencies in performing their missions;
            84411         (b) design and administer the state pay plan;
            84412         (c) design and administer the state classification system and procedures for determining
            84413     schedule assignments;
            84414         (d) design and administer the state recruitment and selection system;
            84415         (e) administer agency human resource practices and ensure compliance with federal law,
            84416     state law, and state human resource rules, including equal employment opportunity;
            84417         (f) consult with agencies on decisions concerning employee corrective action and
            84418     discipline;
            84419         (g) maintain central personnel records;
            84420         (h) perform those functions necessary to implement this chapter unless otherwise
            84421     assigned or prohibited;

            84422         (i) perform duties assigned by the governor or statute;
            84423         (j) adopt rules for human resource management according to the procedures of [Title
            84424     63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
            84425         (k) establish and maintain a management information system that will furnish the
            84426     governor, the Legislature, and agencies with current information on authorized positions,
            84427     payroll, and related matters concerning state human resources;
            84428         (l) conduct research and planning activities to:
            84429         (i) determine and prepare for future state human resource needs;
            84430         (ii) develop methods for improving public human resource management; and
            84431         (iii) propose needed policy changes to the governor;
            84432         (m) study the character, causes, and extent of discrimination in state employment and
            84433     develop plans for its elimination through programs consistent with federal and state laws
            84434     governing equal employment opportunity in employment;
            84435         (n) when requested by counties, municipalities, and other political subdivisions of the
            84436     state, provide technical service and advice on human resource management at a charge
            84437     determined by the executive director;
            84438         (o) establish compensation policies and procedures for early voluntary retirement;
            84439         (p) confer with the heads of other agencies about human resource policies and
            84440     procedures;
            84441         (q) submit an annual report to the governor and the Legislature; and
            84442         (r) (i) develop a procedure by which each agency will:
            84443         (A) identify funded vacant positions; and
            84444         (B) report those funded vacant positions to the department;
            84445         (ii) identify all funded employee positions in each agency that have been vacant for
            84446     more than 180 consecutive days during the 18-month period prior to July 1 of each year; and
            84447         (iii) by no later than September 1 of each year, provide a report of all funded employee
            84448     positions in each agency identified in Subsections (1)(r)(i) and (ii) to:
            84449         (A) the Governor's Office of Planning and Budget; and

            84450         (B) the Office of the Legislative Fiscal Analyst.
            84451         (2) (a) After consultation with the governor and the heads of other agencies, the
            84452     executive director shall establish and coordinate statewide training programs.
            84453         (b) The programs developed under this Subsection (2) shall have application to more
            84454     than one agency.
            84455         (c) The department may not establish training programs that train employees to perform
            84456     highly specialized or technical jobs and tasks.
            84457         (3) (a) (i) The department may collect fees for training as authorized by this Subsection
            84458     (3).
            84459         (ii) Training funded from General Fund appropriations shall be treated as a separate
            84460     program within the department budget.
            84461         (iii) All money received from fees under this section will be accounted for by the
            84462     department as a separate user driven training program.
            84463         (iv) The user training program includes the costs of developing, procuring, and
            84464     presenting training and development programs, and other associated costs for these programs.
            84465         (b) (i) Funds remaining at the end of the fiscal year in the user training program are
            84466     nonlapsing.
            84467         (ii) Each year, as part of the appropriations process, the Legislature shall review the
            84468     amount of nonlapsing funds remaining at the end of the fiscal year and may, by statute, require
            84469     the department to lapse a portion of the funds.
            84470         Section 2058. Section 67-19-6.7 is amended to read:
            84471          67-19-6.7. Overtime policies for state employees.
            84472         (1) As used in this section:
            84473         (a) "Accrued overtime hours" means:
            84474         (i) for nonexempt employees, overtime hours earned during a fiscal year that, at the end
            84475     of the fiscal year, have not been paid and have not been taken as time off by the nonexempt
            84476     state employee who accrued them; and
            84477         (ii) for exempt employees, overtime hours earned during an overtime year.

            84478         (b) "Appointed official" means:
            84479         (i) each department executive director and deputy director, each division director, and
            84480     each member of a board or commission; and
            84481         (ii) any other person employed by a department who is appointed by, or whose
            84482     appointment is required by law to be approved by, the governor and who:
            84483         (A) is paid a salary by the state; and
            84484         (B) who exercises managerial, policy-making, or advisory responsibility.
            84485         (c) "Department" means the Department of Administrative Services, the Department of
            84486     Corrections, the Department of Financial Institutions, the Department of Alcoholic Beverage
            84487     Control, the Insurance Department, the Public Service Commission, the Labor Commission, the
            84488     Department of Agriculture and Food, the Department of Human Services, the State Board of
            84489     Education, the Department of Natural Resources, the Department of Technology Services, the
            84490     Department of Transportation, the Department of Commerce, the Department of Workforce
            84491     Services, the State Tax Commission, the Department of Community and Culture, the
            84492     Department of Health, the National Guard, the Department of Environmental Quality, the
            84493     Department of Public Safety, the Department of Human Resource Management, the
            84494     Commission on Criminal and Juvenile Justice, all merit employees except attorneys in the Office
            84495     of the Attorney General, merit employees in the Office of the State Treasurer, and merit
            84496     employees in the Office of the State Auditor.
            84497         (d) "Elected official" means any person who is an employee of the state because [he]
            84498     the person was elected by the registered voters of Utah to a position in state government.
            84499         (e) "Exempt employee" means a state employee who is exempt as defined by the Fair
            84500     Labor Standards Act of 1978, 29 U.S.C. Section 201 et seq.
            84501         (f) "FLSA" means the Fair Labor Standards Act of 1978, 29 U.S.C. Section 201 et seq.
            84502         (g) "FLSA agreement" means the agreement authorized by the Fair Labor Standards
            84503     Act of 1978, 29 U.S.C. Section 201 et seq., by which a nonexempt employee elects the form of
            84504     compensation [he] the nonexempt employee will receive for overtime.
            84505         (h) "Nonexempt employee" means a state employee who is nonexempt as defined by the

            84506     Department of Human Resource Management applying FLSA requirements.
            84507         (i) "Overtime" means actual time worked in excess of the employee's defined work
            84508     period.
            84509         (j) "Overtime year" means the year determined by a department under Subsection (4)(b)
            84510     at the end of which an exempt employee's accrued overtime lapses.
            84511         (k) (i) "State employee" means every person employed by a department who is not an
            84512     appointed official or an elected official.
            84513         (ii) "State employee" does not mean:
            84514         (A) certificated employees of the State Board of Education; and
            84515         (B) employees of the Department of Community and Culture or the Governor's Office
            84516     of Economic Development, whose positions are designated as schedule AM exempt employees
            84517     under Section 67-19-15 .
            84518         (l) "Uniform annual date" means the date when an exempt employee's accrued overtime
            84519     lapses.
            84520         (m) "Work period" means:
            84521         (i) for all nonexempt employees, except law enforcement and hospital employees, a
            84522     consecutive seven day 24 hour work period of 40 hours;
            84523         (ii) for all exempt employees, a 14 day, 80 hour payroll cycle; and
            84524         (iii) for nonexempt law enforcement and hospital employees, the period established by
            84525     each department by rule for those employees according to the requirements of the Fair Labor
            84526     Standards Act of 1978, 29 U.S.C. Section 201 et seq.
            84527         (2) Each department shall compensate each state employee who works overtime by
            84528     complying with the requirements of this section.
            84529         (3) (a) Each department shall negotiate and obtain a signed FLSA agreement from each
            84530     nonexempt employee.
            84531         (b) In the FLSA agreement, the nonexempt employee shall elect either to be
            84532     compensated for overtime by:
            84533         (i) taking time off work at the rate of one and one-half hour off for each overtime hour

            84534     worked; or
            84535         (ii) being paid for the overtime worked at the rate of one and one-half times the rate per
            84536     hour that the state employee receives for nonovertime work.
            84537         (c) Any nonexempt employee who elects to take time off under this Subsection (3) shall
            84538     be paid for any overtime worked in excess of the cap established by the Department of Human
            84539     Resource Management.
            84540         (d) Before working any overtime, each nonexempt employee shall obtain authorization
            84541     to work overtime from the employee's immediate supervisor.
            84542         (e) Each department shall:
            84543         (i) for employees who elect to be compensated with time off for overtime, allow
            84544     overtime earned during a fiscal year to be accumulated; and
            84545         (ii) for employees who elect to be paid for overtime worked, pay them for overtime
            84546     worked in the paycheck for the pay period in which the employee worked the overtime.
            84547         (f) If the department pays a nonexempt employee for overtime, the department shall
            84548     charge that payment to the department's budget.
            84549         (g) At the end of each fiscal year, the Division of Finance shall total all the accrued
            84550     overtime hours for nonexempt employees and charge that total against the appropriate fund or
            84551     subfund.
            84552         (4) (a) (i) Except as provided in Subsection (4)(a)(ii), each department shall
            84553     compensate exempt employees who work overtime by granting them time off at the rate of one
            84554     hour off for each hour of overtime worked.
            84555         (ii) The executive director of the Department of Human Resource Management may
            84556     grant limited exceptions to this requirement, where work circumstances dictate, by authorizing a
            84557     department to pay employees for overtime worked at the rate per hour that the employee
            84558     receives for nonovertime work, if the department has funds available.
            84559         (b) (i) Each department shall:
            84560         (A) establish in its written human resource policies a uniform annual date for each
            84561     division that is at the end of any pay period; and

            84562         (B) communicate the uniform annual date to its employees.
            84563         (ii) If any department fails to establish a uniform annual date as required by this
            84564     Subsection (4), the executive director of the Department of Human Resource Management, in
            84565     conjunction with the director of the Division of Finance, shall establish the date for that
            84566     department.
            84567         (c) (i) Any overtime earned under this Subsection (4) is not an entitlement, is not a
            84568     benefit, and is not a vested right.
            84569         (ii) A court may not construe the overtime for exempt employees authorized by this
            84570     Subsection (4) as an entitlement, a benefit, or as a vested right.
            84571         (d) At the end of the overtime year, upon transfer to another department at any time,
            84572     and upon termination, retirement, or other situations where the employee will not return to
            84573     work before the end of the overtime year:
            84574         (i) any of an exempt employee's overtime that is more than the maximum established by
            84575     the Department of Human Resource Management rule lapses; and
            84576         (ii) unless authorized by the executive director of the Department of Human Resource
            84577     Management under Subsection (4)(a)(ii), a department may not compensate the exempt
            84578     employee for that lapsed overtime by paying the employee for the overtime or by granting the
            84579     employee time off for the lapsed overtime.
            84580         (e) Before working any overtime, each exempt employee shall obtain authorization to
            84581     work overtime from the exempt employee's immediate supervisor.
            84582         (f) If the department pays an exempt employee for overtime under authorization from
            84583     the executive director of the Department of Human Resource Management, the department
            84584     shall charge that payment to the department's budget in the pay period earned.
            84585         (5) The Department of Human Resource Management shall:
            84586         (a) ensure that the provisions of the FLSA and this section are implemented throughout
            84587     state government;
            84588         (b) determine, for each state employee, whether that employee is exempt, nonexempt,
            84589     law enforcement, or has some other status under the FLSA;

            84590         (c) in coordination with modifications to the systems operated by the Division of
            84591     Finance, make rules:
            84592         (i) establishing procedures for recording overtime worked that comply with FLSA
            84593     requirements;
            84594         (ii) establishing requirements governing overtime worked while traveling and
            84595     procedures for recording that overtime that comply with FLSA requirements;
            84596         (iii) establishing requirements governing overtime worked if the employee is "on call"
            84597     and procedures for recording that overtime that comply with FLSA requirements;
            84598         (iv) establishing requirements governing overtime worked while an employee is being
            84599     trained and procedures for recording that overtime that comply with FLSA requirements;
            84600         (v) subject to the FLSA, establishing the maximum number of hours that a nonexempt
            84601     employee may accrue before a department is required to pay the employee for the overtime
            84602     worked;
            84603         (vi) subject to the FLSA, establishing the maximum number of overtime hours for an
            84604     exempt employee that do not lapse; and
            84605         (vii) establishing procedures for adjudicating appeals of any FLSA determinations made
            84606     by the Department of Human Resource Management as required by this section;
            84607         (d) monitor departments for compliance with the FLSA; and
            84608         (e) recommend to the Legislature and the governor any statutory changes necessary
            84609     because of federal government action.
            84610         (6) In coordination with the procedures for recording overtime worked established in
            84611     rule by the Department of Human Resource Management, the Division of Finance shall modify
            84612     its payroll and human resource systems to accommodate those procedures.
            84613         (a) Notwithstanding the procedures and requirements of [Title 63, Chapter 46b] Title
            84614     63G, Chapter 4, Administrative Procedures Act, Section 67-19-31 , and Section 67-19a-301 ,
            84615     any employee who is aggrieved by the FLSA designation made by the Department of Human
            84616     Resource Management as required by this section may appeal that determination to the
            84617     executive director of the Department of Human Resource Management by following the

            84618     procedures and requirements established in Department of Human Resource Management rule.
            84619         (b) Upon receipt of an appeal under this section, the executive director shall notify the
            84620     executive director of the employee's department that the appeal has been filed.
            84621         (c) If the employee is aggrieved by the decision of the executive director of the
            84622     Department of Human Resource Management, [he] the employee shall appeal that
            84623     determination to the Department of Labor, Wage and Hour Division, according to the
            84624     procedures and requirements of federal law.
            84625         Section 2059. Section 67-19-11 is amended to read:
            84626          67-19-11. Use of department facilities -- Field office facilities cost allocation --
            84627      Funding for department.
            84628         (1) (a) All officers and employees of the state and its political subdivisions shall allow
            84629     the department to use public buildings under their control, and furnish heat, light, and furniture,
            84630     for any examination, hearing, or investigation authorized by this chapter.
            84631         (b) The cost of the department's use of facilities shall be paid by the agency housing a
            84632     field office staff.
            84633         (2) The executive director shall:
            84634         (a) prepare an annual budget request for the department;
            84635         (b) submit the budget request to the governor and the Legislature; and
            84636         (c) except for fiscal year 2007, before charging a fee for services provided by the
            84637     department's internal service fund to an executive branch agency, the executive director shall:
            84638         (i) submit the proposed rates, fees, and cost analysis to the Rate Committee established
            84639     under Subsection (3); and
            84640         (ii) obtain the approval of the Legislature as required under Section [ 63-38-3.5 ]
            84641      63J-1-306 .
            84642         (3) (a) There is created a Rate Committee which shall consist of:
            84643         (i) the director of the Governor's Office of Planning and Budget, or a designee;
            84644         (ii) the executive directors of three state agencies that use services and pay rates to one
            84645     of the department internal service funds, or their designee, appointed by the governor for a

            84646     two-year term;
            84647         (iii) the director of the Division of Finance, or a designee; and
            84648         (iv) the executive director of the Department of Human Resource Management, or a
            84649     designee.
            84650         (b) (i) The committee shall elect a chair from its members.
            84651         (ii) Members of the committee who are state government employees and who do not
            84652     receive salary, per diem, or expenses from their agency for their service on the committee shall
            84653     receive no compensation, benefits, per diem, or expenses for the members' service on the
            84654     committee.
            84655         (c) The Department of Human Resource Management shall provide staff services to the
            84656     committee.
            84657         (4) (a) The department shall submit to the committee a proposed rate and fee schedule
            84658     for services rendered.
            84659         (b) The committee shall:
            84660         (i) conduct meetings in accordance with Title 52, Chapter 4, Open and Public Meetings
            84661     Act;
            84662         (ii) review the proposed rate and fee schedules and may approve, increase, or decrease
            84663     the rate and fee;
            84664         (iii) recommend a proposed rate and fee schedule for the internal service fund to:
            84665         (A) the Governor's Office of Planning and Budget; and
            84666         (B) the legislative appropriations subcommittees that, in accordance with Section
            84667     [ 63-38-3.5 ] 63J-1-306 , approve the internal service fund rates, fees, and budget; and
            84668         (iv) review and approve, increase or decrease an interim rate, fee, or amount when the
            84669     department begins a new service or introduces a new product between annual general sessions
            84670     of the Legislature.
            84671         (c) The committee may in accordance with Subsection [ 63-38-3.5 ] 63J-1-306 (4)
            84672     decrease a rate, fee, or amount that has been approved by the Legislature.
            84673         Section 2060. Section 67-19-12.5 is amended to read:

            84674          67-19-12.5. Creation of Flexible Benefit Program -- Rulemaking power granted to
            84675      establish program.
            84676         (1) The department shall establish for calendar year 1990 and thereafter a Flexible
            84677     Benefit Program under Section 125 of the Internal Revenue Code of 1986.
            84678         (2) The department shall establish accounts for all employees eligible for benefits which
            84679     meet the nondiscrimination requirements of the Internal Revenue Code of 1986.
            84680         (3) (a) Each account established under this section shall include employee paid
            84681     premiums for health and dental services.
            84682         (b) The account may also include, at the option of the employee, out-of-pocket
            84683     employee medical and dependent care expenses.
            84684         (c) Accounts may also include other expenses allowed under the Internal Revenue Code
            84685     of 1986.
            84686         (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            84687     Administrative Rulemaking Act, the department may make rules to implement the program
            84688     established under this section.
            84689         Section 2061. Section 67-19-14 is amended to read:
            84690          67-19-14. Sick leave -- Definitions -- Unused sick days retirement programs --
            84691      Rulemaking.
            84692         (1) As used in Sections 67-19-14 through 67-19-14.4 :
            84693         (a) "Continuing medical and life insurance benefits" means the state provided policy of
            84694     medical insurance and the state provided portion of a policy of life insurance, each offered at the
            84695     same:
            84696         (i) benefit level and the same proportion of state/member participation in the total
            84697     premium costs as an active member as defined in Section 49-11-102 ; and
            84698         (ii) coverage level for a member, two person, or family policy as provided to the
            84699     member at the time of retirement.
            84700         (b) "Converted sick leave" means leave that has been converted from unused sick leave
            84701     in accordance with Section 67-19-14.1 which may be used by an employee in the same manner

            84702     as:
            84703         (i) annual leave;
            84704         (ii) sick leave; or
            84705         (iii) unused accumulated sick leave after the employee's retirement for the purchase of
            84706     continuing medical and life insurance benefits under Sections 67-19-14.2 , 67-19-14.3 , and
            84707      67-19-14.4 .
            84708         (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            84709     Administrative Rulemaking Act, the executive director shall make rules for the procedures to
            84710     implement the provisions of Sections 67-19-14 through 67-19-14.4 .
            84711         (3) For purposes of Sections 67-19-14 through 67-19-14.4 the most recently earned
            84712     converted sick leave or sick leave hours shall be used first when an employee uses converted
            84713     sick leave or sick leave hours.
            84714         (4) The Division of Finance shall develop and maintain a system of accounting for
            84715     employee sick leave and converted sick leave as necessary to implement the provisions of
            84716     Sections 67-19-14 through 67-19-14.4 .
            84717         Section 2062. Section 67-19-30 is amended to read:
            84718          67-19-30. Grievance resolution -- Jurisdiction.
            84719         (1) Employees shall comply with the procedural and jurisdictional requirements of this
            84720     section, [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, and Title
            84721     67, Chapter 19a, Grievance and Appeal Procedures, in seeking resolution of grievances.
            84722         (2) All grievances based upon a claim or charge of injustice or oppression, including
            84723     dismissal from employment, resulting from an act, occurrence, commission, or condition shall be
            84724     governed by Title 67, Chapter 19a, Grievance and Appeal Procedures, and [Title 63, Chapter
            84725     46b] Title 63G, Chapter 4, Administrative Procedures Act.
            84726         (3) All grievances involving classification shall be governed by Section 67-19-31 and
            84727     are designated as informal adjudicative proceedings as defined by [Title 63, Chapter 46b] Title
            84728     63G, Chapter 4, Administrative Procedures Act.
            84729         (4) All grievances by applicants for positions in state government involving an alleged

            84730     discriminatory or prohibited employment practice shall be governed by Section 67-19-32 and
            84731     [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
            84732         (5) A "grievance" under this chapter is a request for agency action for purposes of
            84733     [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
            84734         Section 2063. Section 67-19-31 is amended to read:
            84735          67-19-31. Position classification grievances -- Scope -- Procedure.
            84736         (1) (a) For the purpose of position classification grievances, the process that culminates
            84737     in assigning a career service position to an appropriate class specification is a matter of position
            84738     classification and may be grieved.
            84739         (b) The process that culminates in assigning a salary range to the class specification is
            84740     not a position classification and may not be grieved as a classification grievance.
            84741         (2) (a) Upon receipt of a position classification grievance, the executive director shall
            84742     refer the grievance to a classification panel of three or more impartial persons trained in state
            84743     classification procedures.
            84744         (b) The classification panel shall determine whether or not the classification assignment
            84745     for career service positions was appropriate by applying the statutes, rules, and procedures
            84746     adopted by the department that were in effect at the time of the classification change.
            84747         (c) The classification panel may:
            84748         (i) obtain access to previous audits, classification decisions, and reports;
            84749         (ii) request new or additional audits by human resource analysts; and
            84750         (iii) consider new or additional information.
            84751         (d) The classification panel may sustain or modify the original decision and, if
            84752     applicable, recommend a new classification.
            84753         (e) The classification panel shall report its recommendation to the executive director,
            84754     who shall make the classification decision and notify the grievant.
            84755         (3) (a) Either party may appeal the executive director's decision to an impartial hearing
            84756     officer trained in state classification procedures selected through a public bid process by a panel
            84757     consisting of the following members:

            84758         (i) the executive director of the Department of Human Resource Management;
            84759         (ii) two department executive directors;
            84760         (iii) a private sector human resources executive appointed by the governor; and
            84761         (iv) a representative of the Utah Public Employees Association.
            84762         (b) The successful bid shall serve under contract for no more than three years. At the
            84763     end of that time, the Department of Human Resource Management shall reissue the bid.
            84764         (c) The hearing officer shall review the classification and make the final decision. The
            84765     final decision is subject to judicial review pursuant to the provisions of Section [ 63-46b-15 ]
            84766      63G-4-402 .
            84767         Section 2064. Section 67-19-34 is amended to read:
            84768          67-19-34. Rulemaking power to executive director.
            84769         In accordance with this chapter and [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            84770     Administrative Rulemaking Act, the executive director shall make rules regulating:
            84771         (1) disciplinary actions for employees subject to discipline under Section 67-19-37 ;
            84772         (2) the testing of employees for the use of controlled substances or alcohol as provided
            84773     in Section 67-19-36 ;
            84774         (3) the confidentiality of drug testing and test results performed under Section 67-19-36
            84775     in accordance with [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records Access and
            84776     Management Act; and
            84777         (4) minimum blood levels of alcohol or drug content for work effectiveness of an
            84778     employee.
            84779         Section 2065. Section 67-19a-202 is amended to read:
            84780          67-19a-202. Powers -- Jurisdiction.
            84781         (1) (a) The board shall serve as the final administrative body to review appeals from
            84782     career service employees and agencies of decisions about promotions, dismissals, demotions,
            84783     suspensions, written reprimands, wages, salary, violations of personnel rules, issues concerning
            84784     the equitable administration of benefits, reductions in force, and disputes concerning
            84785     abandonment of position that have not been resolved at an earlier stage in the grievance

            84786     procedure.
            84787         (b) The board has no jurisdiction to review or decide any other personnel matters.
            84788         (2) The time limits established in this chapter supersede the procedural time limits
            84789     established in [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
            84790         (3) In conjunction with any inquiry, investigation, hearing, or other proceeding, any
            84791     member of the board may:
            84792         (a) administer oaths;
            84793         (b) certify official acts;
            84794         (c) subpoena witnesses, documents, and other evidence; and
            84795         (d) grant continuances pursuant to board rule.
            84796         Section 2066. Section 67-19a-203 is amended to read:
            84797          67-19a-203. Rulemaking authority.
            84798         The board may make rules governing:
            84799         (1) definitions of terms, phrases, and words used in the grievance process established by
            84800     this chapter;
            84801         (2) what matters constitute excusable neglect for purposes of the waiver of time limits
            84802     established by this chapter;
            84803         (3) the application for and service of subpoenas, the service and filing of pleadings, and
            84804     the issuance of rulings, orders, determinations, summary judgments, transcripts, and other legal
            84805     documents necessary in grievance proceedings;
            84806         (4) the use, calling, attendance, participation, and fees of witnesses in grievance
            84807     proceedings;
            84808         (5) continuances of grievance proceedings;
            84809         (6) procedures in jurisdictional and evidentiary hearings, unless governed by [Title 63,
            84810     Chapter 46b, the] Title 63G, Chapter 4, Administrative Procedures Act;
            84811         (7) the presence of media representatives at grievance proceedings; and
            84812         (8) procedures for sealing files or making data pertaining to a grievance unavailable to
            84813     the public.

            84814         Section 2067. Section 69-2-5.6 is amended to read:
            84815          69-2-5.6. Emergency services telephone charge to fund statewide unified E-911
            84816      emergency service.
            84817         (1) Subject to Subsection 69-2-5 (3)(g), there is imposed a statewide unified E-911
            84818     emergency service charge on each local exchange service switched access line and each revenue
            84819     producing radio communications access line that is subject to an emergency services telephone
            84820     charge levied by a county, city, or town under Section 69-2-5 or 69-2-5.5 at:
            84821         (a) 13 cents per month until June 30, 2007; and
            84822         (b) 8 cents per month on and after July 1, 2007.
            84823         (2) The emergency services telephone charge imposed under this section shall be:
            84824         (a) subject to Subsection 69-2-5 (3)(g);
            84825         (b) billed and collected by the person that provides:
            84826         (i) local exchange service switched access line services;
            84827         (ii) radio communications access line services; or
            84828         (iii) service described in Subsection 69-2-5 (3)(a)(iii).
            84829         (c) except for costs retained under Subsection (3), remitted to the State Tax
            84830     Commission at the same time as the person remits to the State Tax Commission monies
            84831     collected by the person under Title 59, Chapter 12, Sales and Use Tax Act; and
            84832         (d) deposited into the Statewide Unified E-911 Emergency Service Fund restricted
            84833     account in the General Fund created by Section 53-10-603 .
            84834         (3) The person that bills and collects the charges levied by this section pursuant to
            84835     Subsections (2)(b) and (c) may:
            84836         (a) bill the charge imposed by this section in combination with the charge levied under
            84837     Section 69-2-5 as one line item charge; and
            84838         (b) retain an amount not to exceed 1.5% of the charges collected under this section as
            84839     reimbursement for the cost of billing, collecting, and remitting the levy.
            84840         (4) The State Tax Commission shall collect, enforce, and administer the charges
            84841     imposed under Subsection (1) using the same procedures used in the administration, collection,

            84842     and enforcement of the emergency services telephone charge to fund the Poison Control Center
            84843     under Section 69-2-5.5 .
            84844         (5) This section sunsets in accordance with Section [ 63-55-269 ] 63I-1-269 .
            84845         Section 2068. Section 70-3a-201 is amended to read:
            84846          70-3a-201. Rulemaking authority of division.
            84847         In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
            84848     Rulemaking Act, the division may by rule:
            84849         (1) pursuant to Subsection 70-3a-302 (1), establish the filing requirements for an
            84850     application for a registration of a mark;
            84851         (2) pursuant to Subsection 70-3a-303 (2), establish what information in addition to the
            84852     information contained in the application shall be submitted by an applicant for registration under
            84853     Section 70-3a-302 ;
            84854         (3) pursuant to Subsection 70-3a-303 (3), establish the requirements for an applicant or
            84855     registrant to disclaim an unregistrable component of a mark that is otherwise registrable;
            84856         (4) pursuant to Section 70-3a-305 , establish the filing requirements for an application to
            84857     renew a registration of a mark; and
            84858         (5) establish the filing requirements for a filing under Section 70-3a-306 .
            84859         Section 2069. Section 70-3a-203 is amended to read:
            84860          70-3a-203. Fees.
            84861         (1) (a) A regulatory fee, as defined in Section [ 63-38-3.2 ] 63J-1-303 , shall be
            84862     determined by the division in accordance with Section [ 63-38-3.2 ] 63J-1-303 , but may not
            84863     exceed $250 annually for registration of an electronic registration mark in a single class.
            84864         (b) A person who pays the annual regulatory fee for the registration of an electronic
            84865     registration mark may register additional classes for the same mark for an additional fee not to
            84866     exceed $25 annually.
            84867         (2) (a) For a fee authorized by this chapter that is not a regulatory fee, the division may
            84868     adopt a schedule of fees provided that each fee in the schedule of fees is:
            84869         (i) reasonable and fair; and

            84870         (ii) submitted to the Legislature as part of the Department of Commerce's annual
            84871     appropriations request.
            84872         (b) When a fee schedule described in Subsection (2)(a) is submitted as part of the
            84873     annual appropriations request, the Legislature, in a manner substantially similar to Section
            84874     [ 63-38-3.2 ] 63J-1-303 , may for any fee in the fee schedule:
            84875         (i) approve the fee;
            84876         (ii) (A) increase or decrease the fee; and
            84877         (B) approve the fee as changed by the Legislature; or
            84878         (iii) reject the fee.
            84879         (c) A fee approved by the Legislature pursuant to this section shall be deposited in a
            84880     restricted account within the General Fund known as the Commerce Service Fund.
            84881         Section 2070. Section 70-3a-303 is amended to read:
            84882          70-3a-303. Filing of applications.
            84883         (1) The division may examine an application to determine whether the application
            84884     conforms with this chapter if:
            84885         (a) the application for registration is filed under Section 70-3a-302 ; and
            84886         (b) the regulatory fee required by Section 70-3a-203 is paid.
            84887         (2) If reasonably requested by the division or considered by the applicant to be
            84888     advisable to respond to any rejection or objection, the applicant:
            84889         (a) shall provide any additional information requested by rule by the division, including
            84890     a description of a design mark; and
            84891         (b) may make, or authorize the division to make, amendments to the application.
            84892         (3) (a) The division may require the applicant to disclaim an unregistrable component of
            84893     a mark otherwise registrable.
            84894         (b) An applicant may voluntarily disclaim a component of a mark for which the
            84895     applicant has filed a registration application.
            84896         (c) A disclaimer under this Subsection (3) may not prejudice or affect the applicant's or
            84897     registrant's rights:

            84898         (i) in the disclaimed matter:
            84899         (A) existing at the time of the disclaimer; or
            84900         (B) arising after the disclaimer; or
            84901         (ii) of registration on another application if the disclaimed matter is or has become
            84902     distinctive of the applicant's or registrant's goods or services.
            84903         (d) The division may make rules consistent with this Subsection (3) to establish the
            84904     requirements for an applicant to disclaim an unregistrable component of a mark that is otherwise
            84905     registrable.
            84906         (4) The division may:
            84907         (a) amend an application filed by the applicant if the applicant agrees in writing to the
            84908     amendment; or
            84909         (b) require the applicant to file a new application.
            84910         (5) (a) If the division determines that the applicant is not qualified to register a mark,
            84911     the division shall notify the applicant of:
            84912         (i) the refusal; and
            84913         (ii) the reasons for the refusal.
            84914         (b) The applicant shall have a reasonable period of time specified by the division, but
            84915     not more than 60 days from the date of the notice under this Subsection (5) to:
            84916         (i) reply to the refusal; or
            84917         (ii) amend the application for reexamination.
            84918         (c) The procedure described in Subsections (5)(a) and (b) may be repeated until:
            84919         (i) the division finally refuses registration of the mark; or
            84920         (ii) the applicant fails to reply or amend within the time period specified under
            84921     Subsection (5)(b).
            84922         (d) If the applicant fails to reply or to amend within the time period specified under
            84923     Subsection (5)(b), the application is considered abandoned.
            84924         (6) If the division finally refuses registration of the mark, the refusal shall:
            84925         (a) be in writing; and

            84926         (b) notify the applicant of the applicant's right to a review of the agency action in
            84927     accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
            84928         (7) (a) An applicant may file an action to compel registration by obtaining judicial
            84929     review of the final agency action in accordance with [Title 63, Chapter 46b] Title 63G, Chapter
            84930     4, Administrative Procedures Act.
            84931         (b) The division is not liable for damages in an action to compel registration.
            84932         (c) An action to compel registration shall only be granted on proof that:
            84933         (i) all the statements in the application for registration are true; and
            84934         (ii) the mark is otherwise entitled to registration.
            84935         (8) (a) If more than one application is concurrently being processed by the division
            84936     seeking registration of the same or confusingly similar marks for the same or related goods or
            84937     services, the division shall grant priority to the applications in order of filing.
            84938         (b) If a prior-filed application is granted a registration, the division shall refuse an
            84939     application filed after the prior-filed application.
            84940         (c) An applicant refused under this Subsection (8) may bring an action for cancellation
            84941     of the registration upon grounds of prior or superior rights to the mark.
            84942         Section 2071. Section 70A-9a-526 is amended to read:
            84943          70A-9a-526. Filing-office rules.
            84944         (1) The Division of Corporations and Commercial Code shall adopt and publish rules to
            84945     implement this chapter that apply to a filing office described in Subsection 70A-9a-501 (1)(b).
            84946     The filing-office rules must be:
            84947         (a) consistent with this chapter; and
            84948         (b) adopted and published in accordance with [Title 63, Chapter 46a] Title 63G,
            84949     Chapter 3, Utah Administrative Rulemaking Act.
            84950         (2) To keep the filing-office rules and practices of the filing office in harmony with the
            84951     rules and practices of filing offices in other jurisdictions that enact substantially this part, and to
            84952     keep the technology used by the filing office compatible with the technology used by filing
            84953     offices in other jurisdictions that enact substantially this part, the Division of Corporations and

            84954     Commercial Code, so far as is consistent with the purposes, policies, and provisions of this
            84955     chapter, in adopting, amending, and repealing filing-office rules, shall:
            84956         (a) consult with filing offices in other jurisdictions that enact substantially this part;
            84957         (b) consult the most recent version of the Model Rules promulgated by the International
            84958     Association of Corporate Administrators or any successor organization; and
            84959         (c) take into consideration the rules and practices of, and the technology used by, filing
            84960     offices in other jurisdictions that enact substantially this part.
            84961         Section 2072. Section 70C-8-104 is amended to read:
            84962          70C-8-104. Enforcement proceedings.
            84963         (1) (a) The department may take an action described in Subsection (1)(b) if the
            84964     department determines that any party engaging in activities subject to this title is violating or has
            84965     violated or the department has reasonable cause to believe is about to violate:
            84966         (i) any applicable provision of this title;
            84967         (ii) any rule or order under this title;
            84968         (iii) any condition imposed in writing in connection with the granting of any application
            84969     or other request by the party; or
            84970         (iv) any federal statute or regulation pertaining to consumer credit in effect at the time
            84971     of the determination described in Subsection (1)(a).
            84972         (b) If the department makes a determination described in Subsection (1)(a), the
            84973     department may:
            84974         (i) order the party to cease and desist from committing any further violations; and
            84975         (ii) in the most serious instances, prohibit a party from making further extensions of
            84976     credit to consumers.
            84977         (c) The department shall by rule, made in accordance with [Title 63, Chapter 46a] Title
            84978     63G, Chapter 3, Utah Administrative Rulemaking Act, and consistent with this chapter,
            84979     designate which one or more federal statutes or regulations are federal statutes or regulations
            84980     pertaining to consumer credit for purposes of this Subsection (1).
            84981         (2) The department shall afford an opportunity for hearing upon request of any party

            84982     described in Subsection (1)(a) if the request is filed with the department within 30 days after the
            84983     party requesting the hearing first receives notice of the allegations.
            84984         (3) (a) If the department determines that a practice that it has alleged is unlawful should
            84985     be enjoined during the pendency of any proceedings incident to that allegation, the department
            84986     may issue a temporary order:
            84987         (i) at the commencement of the proceedings; or
            84988         (ii) at any time after commencement of the proceeding.
            84989         (b) The temporary order described in this Subsection (3) is fully binding on the party to
            84990     whom the temporary order is directed until:
            84991         (i) the proceedings are concluded; or
            84992         (ii) the temporary order is modified or dissolved by the department.
            84993         (c) Any party to whom a temporary order is directed may request a hearing concerning
            84994     the order, which shall be held:
            84995         (i) at the earliest mutually convenient time, but in no event more than ten days, after the
            84996     party's request is received by the department; or
            84997         (ii) at any other time the parties may mutually agree upon.
            84998         (d) Every temporary order shall include findings and conclusions in support of the
            84999     order.
            85000         (e) A temporary order may not be issued unless the department finds from specific facts
            85001     supported by sworn statement or the records of a party subject to the order that consumers are
            85002     otherwise likely to suffer immediate and irreparable injury, loss, or damage before proceedings,
            85003     incident to a final order, can be completed.
            85004         (4) The department may not award damages or penalties against a creditor.
            85005         (5) (a) Any order issued by the department under authority of this title shall:
            85006         (i) be in writing;
            85007         (ii) be delivered to or served upon the party affected; and
            85008         (iii) specify its effective date, which may be immediate or at a later date.
            85009         (b) An order described in Subsection (5)(a) shall remain in effect until:

            85010         (i) withdrawn by the department; or
            85011         (ii) terminated by a court order.
            85012         (c) (i) An order of the department, upon application made on or after the effective date
            85013     of the order by the department to a court of general jurisdiction in the county in which an office
            85014     or the residence of the party is located, may be enforced ex parte and without notice by an order
            85015     to comply entered by the court.
            85016         (ii) If the proceeding involves more than one party and each of the parties do not have
            85017     an office or residence in one county, the department may file its application in any county of this
            85018     state where one of the parties has an office or residence.
            85019         (iii) If no party to the proceeding has an office or residence in the state, the
            85020     department's application shall be filed in the Third District Court.
            85021         Section 2073. Section 70D-1-14 is amended to read:
            85022          70D-1-14. Enforcement by department -- Rulemaking -- Federal loan.
            85023         (1) The department has the power, within the limitations provided by [Title 63, Chapter
            85024     46b] Title 63G, Chapter 4, Administrative Procedures Act, to:
            85025         (a) (i) receive and act on complaints;
            85026         (ii) take action designed to obtain voluntary compliance with this chapter; or
            85027         (iii) commence proceedings on its own initiative to enforce compliance with this
            85028     chapter;
            85029         (b) counsel persons and groups on their rights and duties under this chapter;
            85030         (c) adopt, amend, and repeal rules to:
            85031         (i) restrict or prohibit lending or servicing practices which are misleading, unfair, or
            85032     abusive;
            85033         (ii) promote or assure fair and full disclosure of the terms and conditions of agreements
            85034     and communications between mortgage lenders or servicers and borrowers; or
            85035         (iii) promote or assure uniform application of or to resolve ambiguities in applicable
            85036     state or federal laws or federal regulations; and
            85037         (d) employ hearing examiners, clerks, and other employees and agents as necessary to

            85038     perform its duties under this chapter.
            85039         (2) A rule or any part of a rule adopted by the department pursuant to this chapter may
            85040     not be determined by any judicial or other authority to be invalid in whole or in part unless the
            85041     judicial or other authority expressly finds that the rule or a part of it:
            85042         (a) is arbitrary, capricious, constitutes an abuse of discretion;
            85043         (b) exceeds the authority granted to the department by this chapter; or
            85044         (c) is otherwise unlawful.
            85045         (3) (a) A person subject to this chapter violates this chapter if the person violates a
            85046     federal law:
            85047         (i) that is applicable to the person because of the activities that make the person subject
            85048     to this chapter; and
            85049         (ii) pursuant to the terms of the federal law in effect on the day the person violates the
            85050     federal law.
            85051         (b) The department shall by rule, made in accordance with [Title 63, Chapter 46a] Title
            85052     63G, Chapter 3, Utah Administrative Rulemaking Act, and consistent with this chapter,
            85053     designate which one or more federal laws are applicable to a person described in Subsection
            85054     (3)(a).
            85055         (c) (i) Notwithstanding the other provisions of this chapter, only the department may
            85056     enforce or bring an action under this chapter for a violation described in this Subsection (3).
            85057         (ii) The department may bring an action under this Subsection (3) in state court.
            85058         Section 2074. Section 70D-1-16 is amended to read:
            85059          70D-1-16. Department orders.
            85060         (1) If the department determines that any person engaging in business as a mortgage
            85061     lender, broker, or servicer is violating, has violated, or the department has reasonable cause to
            85062     believe is about to violate any provision of this chapter or any rule of the department made
            85063     under this chapter, the department may order the person to cease and desist from committing
            85064     any further violations, and in the most serious instances may prohibit the person from continuing
            85065     to engage in business as a mortgage lender, broker, or servicer.

            85066         (2) The department shall afford an opportunity for hearing upon request of any person
            85067     alleged to have violated this chapter if the request is filed with the department within 30 days
            85068     after the person requesting the hearing first receives notice of the allegations.
            85069         (3) (a) If the department determines that a practice which it has alleged is unlawful
            85070     should be enjoined during the pendency of any proceedings incident to that allegation, it may
            85071     issue a temporary order at the commencement of the proceedings or at any time thereafter
            85072     which is fully binding on the person to whom the temporary order is directed until the
            85073     proceedings are concluded or the temporary order is modified or dissolved by the department.
            85074         (b) Any person to whom a temporary order is directed may request a hearing
            85075     concerning the order, which shall be held at the earliest mutually convenient time, but in no
            85076     event more that ten days after the person's request is received by the department unless the
            85077     department and the person requesting the hearing mutually agree to a later time.
            85078         (c) Every temporary order shall include findings and conclusions in support of it.
            85079         (d) For purposes of Section [ 63-46b-20 ] 63G-4-502 , an immediate and significant
            85080     danger to the public health, safety, or welfare exists if the department finds from specific facts
            85081     supported by sworn statement or the records of a person subject to the order that loan
            85082     applicants or mortgagors are otherwise likely to suffer immediate and irreparable injury, loss, or
            85083     damage before proceedings incident to a final order can be completed.
            85084         (4) The department may not award damages or penalties against a mortgage lender,
            85085     broker, or servicer.
            85086         (5) (a) Any order issued by the department under authority of this chapter shall be in
            85087     writing, be delivered to or served upon the person affected, and specify its effective date, which
            85088     may be immediate or at a later date.
            85089         (b) Orders shall remain in effect until withdrawn by the department or until terminated
            85090     by a court order. The order of the department, upon application made on or after its effective
            85091     date to the Third District Court, or in any other district court, may be enforced ex parte and
            85092     without notice by an order to comply entered by the court.
            85093         Section 2075. Section 70D-1-17 is amended to read:

            85094          70D-1-17. Relief from department order.
            85095         Any person aggrieved by any rule, order, temporary order, decision, ruling, or other act
            85096     or failure to act by the department under this chapter is entitled to judicial review as provided
            85097     under [Title 63, Chapter 46b, the] Title 63G, Chapter 4, Administrative Procedures Act.
            85098         Section 2076. Section 71-7-3 is amended to read:
            85099          71-7-3. Development, operation, and maintenance of Utah Veterans' Cemetery
            85100      and Memorial Park -- Responsibilities of Department of Veterans' Affairs -- Costs --
            85101      Definition.
            85102         (1) The Department of Veterans' Affairs, in consultation with the Veterans' Memorial
            85103     Park Board, shall develop, operate, and maintain a veterans' cemetery and memorial park.
            85104         (2) To help pay the costs of developing, constructing, operating, and maintaining a
            85105     veterans' cemetery and memorial park, the Department of Veterans' Affairs may:
            85106         (a) by following the procedures and requirements of [Title 63, Chapter 38e] Title 63J,
            85107     Chapter 5, Federal Funds Procedures, receive federal funds, and may receive state funds,
            85108     contributions from veterans' organizations, and other private donations; and
            85109         (b) charge fees for at least the cost of the burial of veterans' spouses and other persons,
            85110     whom the department and the Veterans' Memorial Park Board determines are eligible to be
            85111     buried in a veterans' cemetery established by the state.
            85112         (3) As used in this chapter, "veteran" has the same meaning as in Section 71-8-1 .
            85113         Section 2077. Section 71-8-2 is amended to read:
            85114          71-8-2. Department of Veterans' Affairs created -- Appointment of executive
            85115      director -- Department responsibilities.
            85116         (1) There is created the Department of Veterans' Affairs.
            85117         (2) The governor shall appoint an executive director for the department, subject to
            85118     Senate confirmation, from a list of qualified veterans provided by the Veterans' Advisory
            85119     Council. Any veteran or veteran's group may submit names to the council for consideration.
            85120         (3) The department shall:
            85121         (a) conduct and supervise all veteran activities as provided in this title; and

            85122         (b) adopt rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85123     Administrative Rulemaking Act, to carry out the provisions of this title.
            85124         Section 2078. Section 71-11-5 is amended to read:
            85125          71-11-5. Operation of homes -- Rulemaking authority -- Selection of
            85126      administrator.
            85127         (1) The department shall, subject to the approval of the executive director:
            85128         (a) establish appropriate criteria for the admission and discharge of residents for each
            85129     home, subject to the requirements in Section 71-11-6 and criteria set by the U.S. Department of
            85130     Veterans' Affairs;
            85131         (b) establish a schedule of charges for each home in cases where residents have
            85132     available resources;
            85133         (c) establish standards for the operation of the homes not inconsistent with standards
            85134     set by the United States Department of Veterans Affairs;
            85135         (d) make rules to implement this chapter in accordance with [Title 63, Chapter 46a]
            85136     Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
            85137         (e) ensure that the homes are licensed in accordance with Title 26, Chapter 21, Health
            85138     Care Facility Licensing and Inspection Act, and 38 U.S.C. Sec. 1742(a).
            85139         (2) The department shall, after reviewing recommendations of the board, appoint an
            85140     administrator for each home.
            85141         Section 2079. Section 72-1-201 is amended to read:
            85142          72-1-201. Creation of Department of Transportation -- Functions, powers, duties,
            85143      rights, and responsibilities.
            85144         There is created the Department of Transportation which shall:
            85145         (1) have the general responsibility for planning, research, design, construction,
            85146     maintenance, security, and safety of state transportation systems;
            85147         (2) provide administration for state transportation systems and programs;
            85148         (3) implement the transportation policies of the state;
            85149         (4) plan, develop, construct, and maintain state transportation systems that are safe,

            85150     reliable, environmentally sensitive, and serve the needs of the traveling public, commerce, and
            85151     industry;
            85152         (5) establish standards and procedures regarding the technical details of administration
            85153     of the state transportation systems as established by statute and administrative rule;
            85154         (6) advise the governor and the Legislature about state transportation systems needs;
            85155         (7) coordinate with utility companies for the reasonable, efficient, and cost-effective
            85156     installation, maintenance, operation, relocation, and upgrade of utilities within state highway
            85157     rights-of-way; and
            85158         (8) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85159     Administrative Rulemaking Act, make policy and rules for the administration of the department,
            85160     state transportation systems, and programs.
            85161         Section 2080. Section 72-1-211 is amended to read:
            85162          72-1-211. Department to develop strategic initiatives -- Report -- Rulemaking.
            85163         (1) The executive director shall develop strategic initiatives for the department.
            85164         (2) The strategic initiatives developed under Subsection (1) shall include consideration
            85165     of the following factors:
            85166         (a) corridor preservation;
            85167         (b) development of new transportation capacity projects;
            85168         (c) long-term maintenance and operations of the transportation system;
            85169         (d) safety;
            85170         (e) incident management; and
            85171         (f) homeland security.
            85172         (3) (a) The executive director or the executive director's designee shall report the
            85173     strategic initiatives of the department developed under Subsection (1) to the Transportation
            85174     Commission.
            85175         (b) The report required under Subsection (3)(a) shall include the measure that will be
            85176     used to determine whether the strategic initiatives have been achieved.
            85177         (4) After compliance with Subsection (3) and in accordance with [Title 63, Chapter

            85178     46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department shall make
            85179     rules establishing the strategic initiatives developed under this part.
            85180         Section 2081. Section 72-1-303 is amended to read:
            85181          72-1-303. Duties of commission.
            85182         The commission has the following duties:
            85183         (1) determining priorities and funding levels of projects in the state transportation
            85184     systems for each fiscal year based on project lists compiled by the department;
            85185         (2) determining additions and deletions to state highways under Chapter 4, Designation
            85186     of State Highways Act;
            85187         (3) holding public hearings and otherwise providing for public input in transportation
            85188     matters;
            85189         (4) making policies and rules in accordance with [Title 63, Chapter 46a] Title 63G,
            85190     Chapter 3, Utah Administrative Rulemaking Act, necessary to perform the commission's duties
            85191     described under this section;
            85192         (5) in accordance with Section [ 63-46b-12 ] 63G-4-301 , reviewing orders issued by the
            85193     executive director in adjudicative proceedings held in accordance with [Title 63, Chapter 46b]
            85194     Title 63G, Chapter 4, Administrative Procedures Act;
            85195         (6) advising the department in state transportation systems policy;
            85196         (7) approving settlement agreements of condemnation cases subject to Section
            85197     [ 63-38b-401 ] 63G-10-401 ;
            85198         (8) in accordance with Section 17B-2a-807 , appointing a commissioner to serve as a
            85199     nonvoting, ex officio member on the board of trustees of a public transit district;
            85200         (9) in accordance with Section 17B-2a-808 , reviewing, at least annually, the short-term
            85201     and long-range public transit plans; and
            85202         (10) reviewing administrative rules made, amended, or repealed by the department.
            85203         Section 2082. Section 72-1-304 is amended to read:
            85204          72-1-304. Written project prioritization process for new transportation capacity
            85205      projects -- Rulemaking.

            85206         (1) The Transportation Commission, in consultation with the department and the
            85207     metropolitan planning organizations as defined in Section 72-1-208.5 , shall develop a written
            85208     prioritization process for the prioritization of new transportation capacity projects that are or
            85209     will be part of the state highway system under Chapter 4, Part 1, State Highways.
            85210         (2) The following shall be included in the written prioritization process under
            85211     Subsection (1):
            85212         (a) a description of how the strategic initiatives of the department adopted under
            85213     Section 72-1-211 are advanced by the written prioritization process;
            85214         (b) a definition of the type of projects to which the written prioritization process
            85215     applies;
            85216         (c) specification of a weighted criteria system that is used to rank proposed projects and
            85217     how it will be used to determine which projects will be prioritized;
            85218         (d) specification of the data that is necessary to apply the weighted ranking criteria; and
            85219         (e) any other provisions the commission considers appropriate.
            85220         (3) In developing the written prioritization process, the commission:
            85221         (a) shall seek and consider public comment by holding public meetings at locations
            85222     throughout the state; and
            85223         (b) may not consider local matching dollars as provided under Section 72-2-123 unless
            85224     the state provides an equal opportunity to raise local matching dollars for state highway
            85225     improvements within each county.
            85226         (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85227     Administrative Rulemaking Act, the Transportation Commission, in consultation with the
            85228     department, shall make rules establishing the written prioritization process under Subsection (1).
            85229         (5) The commission shall submit the proposed rules under this section to a committee
            85230     or task force designated by the Legislative Management Committee for review prior to taking
            85231     final action on the proposed rules or any proposed amendment to the rules described in
            85232     Subsection (4).
            85233         Section 2083. Section 72-2-109 is amended to read:

            85234          72-2-109. Rules for uniform accounting -- Apportionment and use of class B and
            85235      class C road funds -- Compliance with federal-aid provisions -- Duties of department.
            85236         (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85237     Administrative Rulemaking Act, the department shall make rules providing for uniform
            85238     accounting of funds to be expended upon class B and C roads as required by the federal
            85239     government under Title 23, United States Code Annotated, relating to federal aid for highway
            85240     purposes together with all amendatory acts.
            85241         (2) The department shall cooperate with the county governing bodies and the governing
            85242     officials of the cities and towns in the apportionment and use of class B and C road funds.
            85243         Section 2084. Section 72-2-111 is amended to read:
            85244          72-2-111. Assent to federal acts on federal aid for highway purposes --
            85245      Department to represent state -- Pledge of funds -- Rulemaking authority -- Contracts for
            85246      energy conservation.
            85247         (1) (a) The Legislature assents to all the provisions of Title 23, Highways, U.S.C.,
            85248     relating to federal aid for highway purposes, and all amendatory acts.
            85249         (b) The department may:
            85250         (i) enter into a contract or agreement with the United States government relating to the
            85251     survey, construction, and maintenance of highways under a federal act;
            85252         (ii) submit a scheme or program of construction and maintenance required by a federal
            85253     agency; and
            85254         (iii) do any other thing necessary to fully carry out the cooperation contemplated and
            85255     provided for by a federal act.
            85256         (c) The good faith of the state is pledged to make available sufficient funds to match the
            85257     sums apportioned to the state by the United States government:
            85258         (i) for the construction of federal-aid highways; and
            85259         (ii) to provide adequate maintenance for federal-aid highways.
            85260         (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85261     Administrative Rulemaking Act, the department may make rules to encourage car pools and van

            85262     pools in order to save energy.
            85263         (3) The department may contract with individuals, associations, or corporations to
            85264     accomplish energy conservation and encouragement of car and van pooling.
            85265         Section 2085. Section 72-2-113 is amended to read:
            85266          72-2-113. Rulemaking for cost limitations on contracts -- Auditing for
            85267      compliance -- Federal accounting and audit standards.
            85268         (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85269     Administrative Rulemaking Act, the department may make rules for determining the allowability
            85270     of costs included in contracts entered into by the department for engineering and design
            85271     services. The rules shall comply with the provisions of 23 U.S.C. Section 112.
            85272         (2) The department may require a provider of engineering or design services to submit
            85273     annual audits or to submit to audits to determine compliance with the rules made under
            85274     Subsection (1). The audits may not be duplicative of federal audits under the Federal
            85275     Acquisition Regulations System, 48 C.F.R. Part 31.
            85276         (3) All engineering and design contracts and subcontracts entered into by the
            85277     department shall be accounted for and audited in compliance with the Federal Acquisition
            85278     Regulations System, 48 C.F.R. Part 31.
            85279         Section 2086. Section 72-2-117 is amended to read:
            85280          72-2-117. Transportation Corridor Preservation Revolving Loan Fund --
            85281      Distribution -- Repayment -- Rulemaking.
            85282         (1) There is created the Transportation Corridor Preservation Revolving Loan Fund
            85283     within the Transportation Fund.
            85284         (2) The fund shall be funded from the following sources:
            85285         (a) motor vehicle rental tax imposed under Section 59-12-1201 ;
            85286         (b) appropriations made to the fund by the Legislature;
            85287         (c) contributions from other public and private sources for deposit into the fund;
            85288         (d) interest earnings on cash balances;
            85289         (e) all monies collected for repayments and interest on fund monies;

            85290         (f) all monies collected from rents and sales of real property acquired with fund monies;
            85291     and
            85292         (g) proceeds from general obligation bonds, revenue bonds, or other obligations as
            85293     authorized by Title 63B, Bonds.
            85294         (3) All monies appropriated to the Transportation Corridor Preservation Revolving
            85295     Loan Fund are nonlapsing.
            85296         (4) (a) The commission shall authorize the expenditure of fund monies to allow the
            85297     department to acquire real property or any interests in real property for state, county, and
            85298     municipal transportation corridors subject to:
            85299         (i) monies available in the fund;
            85300         (ii) rules made under Subsection (7); and
            85301         (iii) Subsection (9).
            85302         (b) Fund monies may be used to pay interest on debts incurred in accordance with this
            85303     section.
            85304         (5) Administrative costs for transportation corridor preservation shall be paid from the
            85305     fund.
            85306         (6) The department:
            85307         (a) may apply to the commission under this section for monies from the Transportation
            85308     Corridor Preservation Revolving Loan Fund for a specified transportation corridor project,
            85309     including for county and municipal projects; and
            85310         (b) shall repay the fund monies authorized for the project to the fund as required under
            85311     Subsection (7).
            85312         (7) The commission shall:
            85313         (a) administer the Transportation Corridor Preservation Revolving Loan Fund to:
            85314         (i) preserve transportation corridors;
            85315         (ii) promote long-term statewide transportation planning;
            85316         (iii) save on acquisition costs; and
            85317         (iv) promote the best interests of the state in a manner which minimizes impact on

            85318     prime agricultural land;
            85319         (b) prioritize fund monies based on considerations, including:
            85320         (i) areas with rapidly expanding population;
            85321         (ii) the willingness of local governments to complete studies and impact statements that
            85322     meet department standards;
            85323         (iii) the preservation of corridors by the use of local planning and zoning processes;
            85324         (iv) the availability of other public and private matching funds for a project; and
            85325         (v) the cost-effectiveness of the preservation projects;
            85326         (c) designate high priority corridor preservation projects in cooperation with a
            85327     metropolitan planning organization;
            85328         (d) administer the program for the purposes provided in this section;
            85329         (e) prioritize fund monies in accordance with this section; and
            85330         (f) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85331     Administrative Rulemaking Act, establishing:
            85332         (i) the procedures for the awarding of fund monies;
            85333         (ii) the procedures for the department to apply for transportation corridor preservation
            85334     monies for projects; and
            85335         (iii) repayment conditions of the monies to the fund from the specified project funds.
            85336         (8) (a) The proceeds from any bonds or other obligations secured by revenues of the
            85337     Transportation Corridor Preservation Revolving Loan Fund shall be used for:
            85338         (i) the acquisition of real property in hardship cases; and
            85339         (ii) any of the purposes authorized for funds in the Transportation Corridor
            85340     Preservation Revolving Loan Fund under this section.
            85341         (b) The commission shall pledge the necessary part of the revenues of the
            85342     Transportation Corridor Preservation Revolving Loan Fund to the payment of principal of and
            85343     interest on the bonds or other obligations.
            85344         (9) (a) The department may not apply for monies under this section unless the highway
            85345     authority has an access management policy or ordinance in effect that meets the requirements

            85346     under Subsection (9)(b).
            85347         (b) The access management policy or ordinance shall:
            85348         (i) be for the purpose of balancing the need for reasonable access to land uses with the
            85349     need to preserve the smooth flow of traffic on the highway system in terms of safety, capacity,
            85350     and speed; and
            85351         (ii) include provisions:
            85352         (A) limiting the number of conflict points at driveway locations;
            85353         (B) separating conflict areas;
            85354         (C) reducing the interference of through traffic;
            85355         (D) spacing at-grade signalized intersections; and
            85356         (E) providing for adequate on-site circulation and storage.
            85357         (c) The department shall develop a model access management policy or ordinance that
            85358     meets the requirements of this Subsection (9) for the benefit of a county or municipality under
            85359     this section.
            85360         (10) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85361     Administrative Rulemaking Act, the commission shall make rules establishing a corridor
            85362     preservation advisory council.
            85363         (b) The corridor preservation advisory council shall:
            85364         (i) assist with and help coordinate the corridor preservation efforts of the department
            85365     and local governments;
            85366         (ii) provide recommendations and priorities concerning corridor preservation and the
            85367     use of fund monies to the department and to the commission; and
            85368         (iii) include members designated by each metropolitan planning organization in the state
            85369     to represent local governments that are involved with corridor preservation through official
            85370     maps and planning.
            85371         Section 2087. Section 72-2-122 is amended to read:
            85372          72-2-122. Aeronautics Construction Revolving Loan Fund -- Distribution --
            85373      Repayment -- Rulemaking.

            85374         (1) There is created the Aeronautics Construction Revolving Loan Fund within the
            85375     Transportation Fund.
            85376         (2) The fund shall include monies from the following sources:
            85377         (a) appropriations made to the fund by the Legislature;
            85378         (b) contributions from other public and private sources for deposit into the fund;
            85379         (c) interest earnings on cash balances;
            85380         (d) all monies collected for repayments and interest on fund monies; and
            85381         (e) proceeds from revenue bonds or other obligations issued in accordance with [Title
            85382     63, Chapter 9a, State Building Ownership Act] Title 63B, Chapter 1, Part 3, State Building
            85383     Ownership Authority Act, and Title 63B, Bonds.
            85384         (3) All monies appropriated to the Aeronautics Construction Revolving Loan Fund are
            85385     nonlapsing.
            85386         (4) (a) The commission shall authorize the expenditure of fund monies for construction,
            85387     major reconstruction, major renovation, or property acquisition of airports and airport runways
            85388     for state, county, and municipal airports subject to:
            85389         (i) monies available in the fund; and
            85390         (ii) rules made under Subsection (7).
            85391         (b) Fund monies may be used to pay interest on debts incurred in accordance with this
            85392     section.
            85393         (5) Administrative costs of the Aeronautics Construction Revolving Loan Fund shall be
            85394     paid from the fund.
            85395         (6) The Operations Division:
            85396         (a) may apply to the commission under this section for monies from the Aeronautics
            85397     Construction Revolving Loan Fund for a specified aeronautics project, including for county and
            85398     municipal projects; and
            85399         (b) shall repay the fund monies authorized for the project to the fund as required under
            85400     Subsection (7).
            85401         (7) The commission shall:

            85402         (a) administer the Aeronautics Construction Revolving Loan Fund to promote
            85403     long-term statewide aeronautics transportation;
            85404         (b) prioritize fund monies based on considerations, including:
            85405         (i) areas with rapidly expanding population;
            85406         (ii) the willingness of local governments to:
            85407         (A) complete studies and impact statements that meet department standards; and
            85408         (B) preserve long-term airport operations by the use of local planning and zoning
            85409     processes;
            85410         (iii) the availability of other public and private matching funds for a project; and
            85411         (iv) the cost-effectiveness of the projects; and
            85412         (c) make rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85413     Administrative Rulemaking Act, establishing:
            85414         (i) the procedures for the awarding of fund monies;
            85415         (ii) the procedures for the Operations Division to apply for Aeronautics Construction
            85416     Revolving Loan Fund monies for projects; and
            85417         (iii) repayment schedules and conditions of replacing the monies back into the fund.
            85418         (8) For loans made under this section to a county or municipal airport, the Division of
            85419     Finance shall:
            85420         (a) collect and account for a loan made in accordance with this section; and
            85421         (b) have custody of all loan documents evidencing indebtedness of the Aeronautics
            85422     Construction Revolving Loan Fund, including all:
            85423         (i) notes; and
            85424         (ii) contracts.
            85425         (9) (a) The proceeds from the revenue bonds or other obligations issued on revenues of
            85426     the Aeronautics Construction Revolving Loan Fund shall be used for the purposes authorized
            85427     for funds under this section.
            85428         (b) The commission shall pledge the necessary part of the revenues of the Aeronautics
            85429     Construction Revolving Loan Fund to the payment of principal of and interest on the revenue

            85430     bonds or other obligations.
            85431         Section 2088. Section 72-2-123 is amended to read:
            85432          72-2-123. Rules adopting guidelines -- Partnering to finance state highway
            85433      capacity improvements -- Partnering proposals.
            85434         (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85435     Administrative Rulemaking Act, the commission, in consultation with representatives of local
            85436     government, shall make rules adopting guidelines for partnering with counties and municipalities
            85437     for their help to finance state highway improvement projects through:
            85438         (a) local matching dollars; or
            85439         (b) other local participation methods.
            85440         (2) The guidelines shall encourage partnering to help finance state highway
            85441     improvement projects and provide for:
            85442         (a) consideration of factors relevant to a decision to make a program adjustment
            85443     including the potential to:
            85444         (i) extend department resources to other needed projects;
            85445         (ii) alleviate significant existing or future congestion or hazards to the traveling public;
            85446     and
            85447         (iii) address a need that is widely recognized by the public, elected officials, and
            85448     transportation planners;
            85449         (b) a process for submitting, evaluating, and hearing partnering proposals; and
            85450         (c) keeping a public record of each proposal from initial submission to final disposition.
            85451         (3) The commission shall submit the proposed rules under this section to a committee
            85452     or task force designated by the Legislative Management Committee for review prior to taking
            85453     final action on the proposed rules or any proposed amendment to the rules.
            85454         Section 2089. Section 72-2-202 is amended to read:
            85455          72-2-202. Transportation Infrastructure Loan Fund -- Creation -- Use of monies.
            85456         (1) There is created a revolving loan fund entitled the Transportation Infrastructure
            85457     Loan Fund.

            85458         (2) The fund consists of monies generated from the following revenue sources:
            85459         (a) appropriations made to the fund by the Legislature;
            85460         (b) federal monies and grants that are deposited in the fund;
            85461         (c) monies transferred to the fund by the commission from other monies available to the
            85462     department;
            85463         (d) state grants that are deposited in the fund;
            85464         (e) contributions or grants from any other private or public sources for deposit into the
            85465     fund; and
            85466         (f) all monies collected from repayments of fund monies used for infrastructure loans or
            85467     infrastructure assistance.
            85468         (3) (a) The fund shall earn interest.
            85469         (b) All interest earned on fund monies shall be deposited into the fund.
            85470         (4) Monies in the fund shall be used by the department, as prioritized by the
            85471     commission, only to:
            85472         (a) provide infrastructure loans or infrastructure assistance; and
            85473         (b) pay the department for the costs of administering the fund, providing infrastructure
            85474     loans or infrastructure assistance, monitoring transportation projects, and obtaining repayments
            85475     of infrastructure loans or infrastructure assistance.
            85476         (5) (a) The department may establish separate accounts in the fund for infrastructure
            85477     loans, infrastructure assistance, administrative and operating expenses, or any other purpose to
            85478     implement this part.
            85479         (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85480     Administrative Rulemaking Act, the department may make rules governing how the fund and its
            85481     accounts may be held by an escrow agent.
            85482         (6) Fund monies shall be invested by the state treasurer as provided in Title 51, Chapter
            85483     7, State Money Management Act, and the earnings from the investments shall be credited to the
            85484     fund.
            85485         Section 2090. Section 72-2-203 is amended to read:

            85486          72-2-203. Loans and assistance -- Authority -- Rulemaking.
            85487         (1) Monies in the fund may be used by the department, as prioritized by the
            85488     commission, to make infrastructure loans or to provide infrastructure assistance to any public
            85489     entity for any purpose consistent with any applicable constitutional limitation.
            85490         (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85491     Administrative Rulemaking Act, the commission shall make rules providing procedures and
            85492     standards for making infrastructure loans and providing infrastructure assistance.
            85493         Section 2091. Section 72-2-204 is amended to read:
            85494          72-2-204. Loan program procedures -- Repayment.
            85495         (1) A public entity may obtain an infrastructure loan from the department, upon
            85496     approval by the commission, by entering into a loan contract with the department secured by
            85497     legally issued bonds, notes, or other evidence of indebtedness validly issued under state law,
            85498     including pledging all or any portion of a revenue source to the repayment of the loan.
            85499         (2) The public entity shall repay the infrastructure loan in accordance with the loan
            85500     contract from any of the following sources:
            85501         (a) transportation project revenues, including special assessment revenues;
            85502         (b) general funds of the public entity;
            85503         (c) monies withheld under Subsection (5); or
            85504         (d) any other legally available revenues.
            85505         (3) An infrastructure loan contract with a public entity may provide that a portion of the
            85506     proceeds of the loan may be applied to fund a reserve fund to secure the repayment of the loan.
            85507         (4) Before obtaining an infrastructure loan, a county or municipality shall:
            85508         (a) publish its intention to obtain an infrastructure loan at least once in accordance with
            85509     the publication of notice requirements under Section 11-14-316 ; and
            85510         (b) adopt an ordinance or resolution authorizing the infrastructure loan.
            85511         (5) (a) If a public entity fails to comply with the terms of its infrastructure loan contract,
            85512     the department may seek any legal or equitable remedy to obtain compliance or payment of
            85513     damages.

            85514         (b) If a public entity fails to make infrastructure loan payments when due, the state
            85515     shall, at the request of the department, withhold an amount of monies due to the public entity
            85516     and deposit the withheld monies in the fund to pay the amounts due under the contract.
            85517         (c) The department may elect when to request the withholding of monies under this
            85518     Subsection (5).
            85519         (6) All loan contracts, bonds, notes, or other evidence of indebtedness securing the loan
            85520     contracts shall be held, collected, and accounted for in accordance with Section [ 63-65-4 ]
            85521      63B-1b-202 .
            85522         Section 2092. Section 72-3-109 is amended to read:
            85523          72-3-109. Division of responsibility with respect to state highways in cities and
            85524      towns.
            85525         (1) Except as provided in Subsection (3), the jurisdiction and responsibility of the
            85526     department and the municipalities for state highways within municipalities is as follows:
            85527         (a) The department has jurisdiction over and is responsible for the construction and
            85528     maintenance of:
            85529         (i) the portion of the state highway located between the back of the curb on either side
            85530     of the state highway; or
            85531         (ii) if there is no curb, the traveled way, its contiguous shoulders, and appurtenances.
            85532         (b) The department may widen or improve state highways within municipalities.
            85533         (c) (i) A municipality has jurisdiction over all other portions of the right-of-way and is
            85534     responsible for construction and maintenance of the right-of-way.
            85535         (ii) If a municipality grants permission for the installation of any pole, pipeline, conduit,
            85536     sewer, ditch, culvert, billboard, advertising sign, or any other structure or object of any kind or
            85537     character within the portion of the right-of-way under its jurisdiction:
            85538         (A) the permission shall contain the condition that any installation will be removed from
            85539     the right-of-way at the request of the municipality; and
            85540         (B) the municipality shall cause any installation to be removed at the request of the
            85541     department when the department finds the removal necessary:

            85542         (I) to eliminate a hazard to traffic safety;
            85543         (II) for the construction and maintenance of the state highway; or
            85544         (III) to meet the requirements of federal regulations.
            85545         (d) If it is necessary that a utility, as defined in Section 72-6-116 , be relocated,
            85546     reimbursement shall be made for the relocation as provided for in Section 72-6-116 .
            85547         (e) (i) The department shall construct curbs, gutters, and sidewalks on the state
            85548     highways if necessary for the proper control of traffic, driveway entrances, or drainage.
            85549         (ii) If a state highway is widened or altered and existing curbs, gutters, or sidewalks are
            85550     removed, the department shall replace the curbs, gutters, or sidewalks.
            85551         (f) The department may furnish and install street lighting systems for state highways,
            85552     but their operation and maintenance is the responsibility of the municipality.
            85553         (g) If new storm sewer facilities are necessary in the construction and maintenance of
            85554     the state highways, the cost of the storm sewer facilities shall be borne by the state and the
            85555     municipality in a proportion mutually agreed upon between the department and the municipality.
            85556         (2) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85557     Administrative Rulemaking Act, the department shall make rules governing the location and
            85558     construction of approach roads and driveways entering the state highway. The rules shall:
            85559         (i) include criteria for the design, location, and spacing of approach roads and
            85560     driveways based on the functional classification of the adjacent highway, including the urban or
            85561     rural nature of the area;
            85562         (ii) be consistent with the "Manual on Uniform Traffic Control Devices" and the model
            85563     access management policy or ordinance developed by the department under Subsection
            85564      72-2-117 (9);
            85565         (iii) include procedures for:
            85566         (A) the application and review of a permit for approach roads and driveways including
            85567     review of related site plans that have been recommended according to local ordinances; and
            85568         (B) approving, modifying, denying, or appealing the modification or denial of a permit
            85569     for approach roads and driveways within 45 days of receipt of the application; and

            85570         (iv) require written justifications for modifying or denying a permit.
            85571         (b) The department may delegate the administration of the rules to the highway
            85572     authorities of a municipality.
            85573         (c) In accordance with this section and Section 72-7-104 , an approach road or driveway
            85574     may not be constructed on a state highway without a permit issued under this section.
            85575         (3) The department has jurisdiction and control over the entire right-of-way of
            85576     interstate highways within municipalities and is responsible for the construction, maintenance,
            85577     and regulation of the interstate highways within municipalities.
            85578         Section 2093. Section 72-3-207 is amended to read:
            85579          72-3-207. State Park Access Highways Improvement Program -- Distribution --
            85580      Rulemaking.
            85581         (1) There is created the State Park Access Highways Improvement Program within the
            85582     department.
            85583         (2) The program shall be funded from the following revenue sources:
            85584         (a) any voluntary contributions received for improvements to state park access
            85585     highways; and
            85586         (b) appropriations made to the program by the Legislature.
            85587         (3) The department may use the program monies as matching grants to a county or
            85588     municipality for the improvement of class B or class C roads specified as state park access
            85589     highways under this part subject to:
            85590         (a) monies available in the program;
            85591         (b) prioritization of the program monies by the commission;
            85592         (c) a county or municipality providing at least 50% of the cost of each improvement
            85593     project in matching funds; and
            85594         (d) rules made under Subsection (4).
            85595         (4) The department shall make rules in accordance with [Title 63, Chapter 46a] Title
            85596     63G, Chapter 3, Utah Administrative Rulemaking Act, necessary to administer the program and
            85597     to establish the procedures for a county or municipality to apply for a grant of program monies.

            85598         (5) All appropriations made to the program by the Legislature are nonlapsing.
            85599         (6) The department shall commit funds for state park access highway projects for the
            85600     amount of funding currently programmed in a funded year in the 2007 Statewide Transportation
            85601     Improvement Program.
            85602         Section 2094. Section 72-4-102 is amended to read:
            85603          72-4-102. Additions to or deletions from state highway system -- Designation of
            85604      highways as state highways between sessions.
            85605         (1) (a) The Legislature may add to or delete highways or sections of highways from the
            85606     state highway system.
            85607         (b) The department shall annually submit to the Legislature a list of highways or
            85608     sections of highways the commission recommends for addition to or deletion from the state
            85609     highway system.
            85610         (c) All recommendations under Subsection (1)(b) shall be based on:
            85611         (i) the criteria for state highways under Section 72-4-102.5 ;
            85612         (ii) funding and operational considerations identified under Subsection (3);
            85613         (iii) efficiency of highway operations and maintenance; and
            85614         (iv) other factors the commission determines are appropriate, in consultation with the
            85615     department and the highway authorities involved in the transfer.
            85616         (2) Between general sessions of the Legislature, highways may be designated as state
            85617     highways or deleted from the state highway system if:
            85618         (a) approved by the commission in accordance with:
            85619         (i) the criteria for state highways under Section 72-4-102.5 ;
            85620         (ii) funding and operational considerations identified under Subsection (3);
            85621         (iii) efficiency of highway operations and maintenance; and
            85622         (iv) other factors the commission determines are appropriate, in consultation with the
            85623     department and the highway authorities involved in the transfer;
            85624         (b) a deletion is agreed upon by all highway authorities involved in the transfer; and
            85625         (c) the highways are included in the list of recommendations submitted to the

            85626     Legislature in the next year for legislative approval or disapproval.
            85627         (3) All highway authorities involved in a highway transfer under this section shall
            85628     consider available highway financing levels and operational abilities for the maintenance and
            85629     construction of a transferred highway.
            85630         (4) (a) The department shall no later than June 30 report to the Transportation Interim
            85631     Committee of the Legislature any proposed additions to or deletions from the state highway
            85632     system whether proposed by the department or another highway authority.
            85633         (b) The commission shall submit to the Transportation Interim Committee of the
            85634     Legislature on or before November 1 of each year:
            85635         (i) the list of highways recommended for transfer under Subsection (1);
            85636         (ii) a list of potential additions to or deletions from the state highway system that are
            85637     currently under consideration; and
            85638         (iii) a list of additions to or deletions from the state highway system that were proposed
            85639     but not agreed to by the affected highway authorities.
            85640         (c) The recommendations shall include:
            85641         (i) any fiscal and funding recommendations of each highway authority involved in the
            85642     transfer of a highway or section of a highway; and
            85643         (ii) a cost estimate, fiscal analysis, and funding recommendation, or recommendation for
            85644     further study from the Office of the Legislative Fiscal Analyst.
            85645         (5) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85646     Administrative Rulemaking Act, the commission shall make rules, in consultation with the
            85647     department and local highway authorities, establishing a process for a highway authority to
            85648     propose an addition to or deletion from the state highway system.
            85649         (b) The rules established under Subsection (5)(a) shall include provisions for:
            85650         (i) notification to highway authorities of the department's intent to:
            85651         (A) collect proposed additions to or deletions from the state highway system; and
            85652         (B) report the proposals to the Transportation Interim Committee as required under
            85653     Subsection (4)(a);

            85654         (ii) public comment regarding a proposed addition to or deletion from the state highway
            85655     system under this section during a commission meeting held under Section 72-1-302 ;
            85656         (iii) notification to any affected highway authority of an addition to or deletion from the
            85657     state highway system under consideration prior to the meeting held under Subsection (5)(b)(ii);
            85658     and
            85659         (iv) opportunity for a highway authority to initiate consideration of additions to or
            85660     deletions from the state highway system by the commission.
            85661         Section 2095. Section 72-4-102.5 is amended to read:
            85662          72-4-102.5. Definitions -- Rulemaking -- Criteria for state highways.
            85663         (1) As used in this section:
            85664         (a) "arterial highway" has the same meaning as provided under the Federal Highway
            85665     Administration Functional Classification Guidelines;
            85666         (b) "collector highway," "collector road," or "collector street" has the same meaning as
            85667     provided under the Federal Highway Administration Functional Classification Guidelines;
            85668         (c) "local street" or "local road" means a highway that is not an arterial highway or a
            85669     collector highway and that is under the jurisdiction of a county or municipality;
            85670         (d) "major collector highway," "major collector road," or "major collector street" has
            85671     the same meaning as provided under the Federal Highway Administration Functional
            85672     Classification Guidelines;
            85673         (e) "minor collector road" or "minor collector street" has the same meaning as provided
            85674     under the Federal Highway Administration Functional Classification Guidelines;
            85675         (f) "minor arterial highway" or "minor arterial street" has the same meaning as provided
            85676     under the Federal Highway Administration Functional Classification Guidelines;
            85677         (g) "principal arterial highway" has the same meaning as provided under the Federal
            85678     Highway Administration Functional Classification Guidelines;
            85679         (h) "rural area" has the same meaning as provided under the Federal Highway
            85680     Administration Functional Classification Guidelines;
            85681         (i) "tourist area" means an area of the state frequented by tourists for the purpose of

            85682     visiting national parks, national recreation areas, national monuments, or state parks; and
            85683         (j) "urban area" has the same meaning as provided under the Federal Highway
            85684     Administration Functional Classification Guidelines.
            85685         (2) (a) Subject to the provisions of Title 72, Chapter 3, Highway Jurisdiction and
            85686     Classification Act, and this chapter, a state highway shall meet the criteria provided under this
            85687     section.
            85688         (b) The highway authorities of this state or their representatives shall cooperate to
            85689     match the criteria provided under this section with the state highways designated under this title.
            85690         (c) The primary function of state highways is to provide for the safe and efficient
            85691     movement of traffic, while providing access to property is a secondary function.
            85692         (d) The primary function of county and municipal highways is to provide access to
            85693     property.
            85694         (e) For purposes of this section, if a highway is within ten miles of a location identified
            85695     under this section, the location is considered to be served by that highway.
            85696         (3) A state highway shall:
            85697         (a) serve a statewide purpose by accommodating interstate movement of traffic or
            85698     interregion movement of traffic within the state;
            85699         (b) primarily move higher traffic volumes over longer distances than highways under
            85700     local jurisdiction;
            85701         (c) connect major population centers;
            85702         (d) be spaced so that:
            85703         (i) all developed areas in the state are within a reasonable distance of a state highway;
            85704     and
            85705         (ii) duplicative state routes are avoided;
            85706         (e) provide state highway system continuity and efficiency of state highway system
            85707     operation and maintenance activities;
            85708         (f) include all interstate routes, all expressways, and all highways on the National
            85709     Highway System as designated by the Federal Highway Administration under 23 C.F.R. Section

            85710     470, Subpart A, as of January 1, 2005; and
            85711         (g) exclude parking lots, driving ranges, and campus roads.
            85712         (4) In addition to the provisions of Subsection (3), in rural areas a state highway shall:
            85713         (a) include all minor arterial highways;
            85714         (b) include a major collector highway that:
            85715         (i) serves a county seat;
            85716         (ii) serves a municipality with a population of 1,000 or more;
            85717         (iii) serves a major industrial, commercial, or recreation areas that generate traffic
            85718     volumes equivalent to a population of 1,000 or more;
            85719         (iv) provides continuity for the state highway system by providing major connections
            85720     between other state highways;
            85721         (v) provides service between two or more counties; or
            85722         (vi) serves a compelling statewide public safety interest; and
            85723         (c) exclude all minor collector streets and local roads.
            85724         (5) In addition to the provisions of Subsection (3), in urban areas a state highway shall:
            85725         (a) include all principal arterial highways;
            85726         (b) include a minor arterial highway that:
            85727         (i) provides continuity for the state highway system by providing major connections
            85728     between other state highways;
            85729         (ii) is a route that is expected to be a principal arterial highway within ten years; or
            85730         (iii) is needed to provide access to state highways; and
            85731         (c) exclude all collector highways and local roads.
            85732         (6) In addition to the provisions of Subsections (3) and (4), in tourist areas, a state
            85733     highway:
            85734         (a) shall include a highway that:
            85735         (i) serves a national park or a national recreational area; or
            85736         (ii) serves a national monument with visitation greater than 100,000 per year; or
            85737         (b) may include a highway that:

            85738         (i) serves a state park with visitation greater than 100,000 per year; or
            85739         (ii) serves a recreation site with visitation greater than 100,000 per year.
            85740         (7) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85741     Administrative Rulemaking Act, the department shall make rules:
            85742         (i) establishing and defining a functional classification of highways for the purpose of
            85743     implementing this section;
            85744         (ii) defining and designating regionally significant arterial highways; and
            85745         (iii) establishing an access management policy consistent with the functional
            85746     classification of roadways.
            85747         (b) The definitions under Subsection (7)(a) shall provide a separate functional
            85748     classification system for urban and rural highways recognizing the unique differences in the
            85749     character of services provided by urban and rural highways.
            85750         (c) The rules under Subsection (7)(a):
            85751         (i) shall conform as nearly as practical to the Federal Highway Administration
            85752     Functional Classification Guidelines; and
            85753         (ii) may incorporate by reference, in whole or in part, the federal guidelines under
            85754     Subsection (7)(c)(i).
            85755         Section 2096. Section 72-4-303 is amended to read:
            85756          72-4-303. Powers and duties of the Utah State Scenic Byway Committee --
            85757      Rulemaking authority -- Designation on state maps -- Outdoor advertising.
            85758         (1) The committee shall have the responsibility to:
            85759         (a) administer a coordinated scenic byway program within the state that:
            85760         (i) preserves and protects the intrinsic qualities described in Subsection (1)(b) unique to
            85761     scenic byways;
            85762         (ii) enhances recreation; and
            85763         (iii) promotes economic development through tourism and education;
            85764         (b) ensure that a highway nominated for a scenic byway designation possesses at least
            85765     one of the following six intrinsic qualities:

            85766         (i) scenic quality;
            85767         (ii) natural quality;
            85768         (iii) historic quality;
            85769         (iv) cultural quality;
            85770         (v) archaeological quality; or
            85771         (vi) recreational quality;
            85772         (c) designate highways as state scenic byways from nominated highways within the
            85773     state if the committee determines that the highway possesses the criteria for a state scenic
            85774     byway; and
            85775         (d) remove the designation of a highway as a scenic byway if the committee determines
            85776     that the highway no longer meets the criteria under which it was designated.
            85777         (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85778     Administrative Rulemaking Act, the department shall make rules in consultation with the
            85779     committee:
            85780         (a) for the administration of a scenic byway program;
            85781         (b) establishing the criteria that a highway shall possess to be designated as a scenic
            85782     byway, including the criteria described in Subsection (1)(b);
            85783         (c) establishing the process for nominating a highway to be designated as a state scenic
            85784     byway;
            85785         (d) specifying the process for hearings to be conducted in the area of proposed
            85786     designation prior to the highway being designated as a scenic byway;
            85787         (e) identifying the highways within the state designated as scenic byways; and
            85788         (f) establishing the process and criteria for removing the designation of a highway as a
            85789     scenic byway.
            85790         (3) The department shall designate scenic byway routes on future state highway maps.
            85791         (4) A highway within the state designated as a scenic byway is subject to federal
            85792     outdoor advertising regulations in accordance with 23 U.S.C. Sec. 131.
            85793         Section 2097. Section 72-5-203 is amended to read:

            85794          72-5-203. Public easement or right of entry -- Grant -- Application -- Conditions.
            85795         (1) (a) (i) Subject to Section 53C-1-302 and Subsection 53C-1-204 (1), a temporary
            85796     public easement or right of entry is granted for each highway existing prior to January 1, 1992,
            85797     that terminates at or within or traverses any state lands and that has been constructed and
            85798     maintained or used by a responsible authority.
            85799         (ii) The temporary public easement or right of entry granted under Subsection (1)(a)(i)
            85800     is 100 feet wide for each class A and B highway.
            85801         (b) Each easement shall remain in effect through June 30, 2004, or until a permanent
            85802     easement or right of entry has been established under Subsection (2), whichever is greater.
            85803         (2) (a) The School and Institutional Trust Lands Administration and the Division of
            85804     Forestry, Fire and State Lands shall make rules in accordance with [Title 63, Chapter 46a] Title
            85805     63G, Chapter 3, Utah Administrative Rulemaking Act, establishing an application process for a
            85806     responsible authority to obtain a permanent easement or right of entry over any temporary
            85807     public easement granted under Subsection (1), subject to the provisions of Subsections (2)(b),
            85808     (c), and (d).
            85809         (b) A grant of a permanent easement or right of entry across sovereign lands shall be
            85810     made upon a showing to the Division of Forestry, Fire and State Lands that continued use of
            85811     the easement will provide a public benefit commensurate with the value of the permanent
            85812     easement or right of entry.
            85813         (c) A grant of a permanent easement or right of entry across trust lands shall be made
            85814     upon a showing to the School and Institutional Trust Lands Administration that the grant is
            85815     consistent with the state's fiduciary responsibilities under Section 53C-1-302 and Subsection
            85816      53C-1-204 (1).
            85817         (d) A grant of a permanent easement or right of entry across state lands other than
            85818     sovereign and trust lands shall be made upon a showing to the managing unit of state
            85819     government that the continued use will provide a public benefit commensurate with the value of
            85820     the easement and will not unreasonably interfere with the purposes for which the land was
            85821     obtained or is now held.

            85822         (3) The grant of the temporary public easement or right of entry under Subsection (1) is
            85823     consistent with the trust responsibilities of the state and in the best interest of the state.
            85824         (4) A responsible authority that has been granted a permanent easement or right of
            85825     entry over state lands may maintain the permanent easement or right of entry for the uses to
            85826     which the permanent easement or right of entry was put prior to and including January 1, 1992,
            85827     subject to the right of the managing unit of state government or private party to relocate the
            85828     permanent easement or right of entry.
            85829         (5) The grant of a permanent easement or right of entry under this section is effective
            85830     on the date the highway was originally constructed or established for public use.
            85831         Section 2098. Section 72-5-306 is amended to read:
            85832          72-5-306. Assumption of risk -- Immunity -- Public safety.
            85833         (1) An R.S. 2477 right-of-way not designated under Section 72-3-102 , 72-3-103 , or
            85834      72-3-104 as a Class A, B, or C road is traveled at the risk of the user.
            85835         (2) The state and its political subdivisions do not waive immunity under [Title 63,
            85836     Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah, for injuries or
            85837     damages occurring in or associated with any R.S. 2477 right-of-way.
            85838         (3) The state and its political subdivisions assume no liability for injury or damage
            85839     resulting from a failure to maintain any:
            85840         (a) R.S. 2477 right-of-way for vehicular travel; or
            85841         (b) highway sign on an R.S. 2477 right-of-way.
            85842         (4) If the state or any political subdivision of the state chooses to maintain an R.S. 2477
            85843     right-of-way, the basic governmental objective involved in providing the improvements is the
            85844     consistent promotion of public safety.
            85845         (5) (a) The state recognizes that there are limited funds available to upgrade all R.S.
            85846     2477 rights-of-way to applicable safety standards.
            85847         (b) A decision by the state or a political subdivision of the state to allocate funds for
            85848     maintaining an R.S. 2477 right-of-way is the result of evaluation and assigning of priorities for
            85849     the promotion of public safety.

            85850         (c) The state or a political subdivision of the state must use its judgment and expertise
            85851     to evaluate which safety feature improvements should be made first. In making this policy
            85852     determination the state or a political subdivision of the state may:
            85853         (i) perform on-site inspections and weigh all factors relating to safety, including the
            85854     physical characteristics and configuration of the R.S. 2477 right-of-way and the volume and
            85855     type of traffic on the R.S. 2477 right-of-way; and
            85856         (ii) consult with transportation experts who have expertise to make an evaluation of the
            85857     relative dangerousness of R.S. 2477 rights-of-way within their jurisdiction.
            85858         Section 2099. Section 72-5-309 is amended to read:
            85859          72-5-309. Acceptance of rights-of-way -- Notice of acknowledgment required.
            85860         (1) The governor or the governor's designee may assess whether the grant of the R.S.
            85861     2477 has been accepted with regard to any right-of-way so as to vest title of the right-of-way in
            85862     the state and the applicable political subdivision as provided for in Section 72-5-103 .
            85863         (2) If the governor or governor's designee concludes that the grant has been accepted as
            85864     to any right-of-way, the governor or a designee shall issue a notice of acknowledgment of the
            85865     acceptance of the R.S. 2477 grant as to that right-of-way.
            85866         (3) A notice of acknowledgment of the R.S. 2477 grant shall include:
            85867         (a) a statement of reasons for the acknowledgment;
            85868         (b) a general description of the right-of-way or rights-of-way subject to the notice of
            85869     acknowledgment, including the county in which it is located, and notice of where a center-line
            85870     description derived from Global Positioning System data may be viewed or obtained;
            85871         (c) a statement that the owner of the servient estate in the land over which the
            85872     right-of-way or rights-of-way subject to the notice runs or any person with a competing
            85873     dominant estate ownership claim may file a petition with the district court for a decision
            85874     regarding the correctness or incorrectness of the acknowledgment; and
            85875         (d) a statement of the time limit provided in Section 72-5-310 for filing a petition.
            85876         (4) (a) (i) A notice of acknowledgment may be recorded in the office of the county
            85877     recorder in the county where the right-of-way or rights-of-way exist.

            85878         (ii) (A) A notice of acknowledgment recorded in the county recorder's office is not
            85879     required to be accompanied by a paper copy of the center-line description.
            85880         (B) A paper copy of each center-line description together with the notice of
            85881     acknowledgment shall be placed in the state archives created in Section [ 63-2-901 ] 63A-12-101
            85882     and made available to the public upon request in accordance with [Title 63, Chapter 2] Title
            85883     63G, Chapter 2, Government Records Access and Management Act.
            85884         (C) An electronic copy of the center-line description identified in a notice of
            85885     acknowledgment shall be available upon request at:
            85886         (I) the county recorder's office; or
            85887         (II) the Automated Geographic Reference Center created in Section 63F-1-506 .
            85888         (b) A notice of acknowledgment recorded in the county recorder's office is conclusive
            85889     evidence of acceptance of the R.S. 2477 grant upon:
            85890         (i) expiration of the 60-day period for filing a petition under Section 72-5-310 without
            85891     the filing of a petition; or
            85892         (ii) a final court decision that the notice of acknowledgment was not incorrect.
            85893         Section 2100. Section 72-5-405 is amended to read:
            85894          72-5-405. Private owner rights.
            85895         (1) The department, counties, and municipalities shall observe all protections conferred
            85896     on private property rights, including [Title 63, Chapter 90] Title 63L, Chapter 3, Private
            85897     Property Protection Act, [Title 63, Chapter 90a] Title 63L, Chapter 4, Constitutional Taking
            85898     Issues, and compensation for takings.
            85899         (2) Private property owners from whom less than fee simple rights are obtained for
            85900     transportation corridors or transportation corridor preservation have the right to petition the
            85901     department, a county, or a municipality to acquire the entire fee simple interest in the affected
            85902     property.
            85903         (3) (a) A private property owner whose property's development is limited or restricted
            85904     by a power granted under this part may petition the county or municipality that adopted the
            85905     official map to acquire less than or the entire fee simple interest in the affected property, at the

            85906     option of the property owner.
            85907         (b) If the county or municipality petitioned under Subsection (3)(a) does not acquire the
            85908     interest in the property requested by the property owner, then the county or municipality may
            85909     not exercise any of the powers granted under this part to limit or restrict the affected property's
            85910     development.
            85911         Section 2101. Section 72-5-406 is amended to read:
            85912          72-5-406. Rulemaking.
            85913         In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
            85914     Rulemaking Act, the department shall make rules providing for private property owner petition
            85915     procedures described in Section 72-5-405 .
            85916         Section 2102. Section 72-6-107 is amended to read:
            85917          72-6-107. Construction or improvement of highway -- Contracts -- Retainage.
            85918         (1) (a) The department shall make plans, specifications, and estimates prior to the
            85919     construction or improvement of any state highway.
            85920         (b) Except as provided in Section [ 63-56-502 ] 63G-6-502 and except for construction
            85921     or improvements performed with state prison labor, a construction or improvement project with
            85922     an estimated cost exceeding the bid limit as defined in Section 72-6-109 for labor and materials
            85923     shall be performed under contract awarded to the lowest responsible bidder.
            85924         (c) The advertisement for bids shall be published in a newspaper of general circulation
            85925     in the county in which the work is to be performed, at least once a week for two consecutive
            85926     weeks, with the last publication at least ten days before bids are opened.
            85927         (d) The department shall receive sealed bids and open the bids at the time and place
            85928     designated in the advertisement. The department may then award the contract but may reject
            85929     any and all bids.
            85930         (e) If the department's estimates are substantially lower than any responsible bid
            85931     received, the department may perform any work by force account.
            85932         (2) If any payment on a contract with a private contractor for construction or
            85933     improvement of a state highway is retained or withheld, the payment shall be retained or

            85934     withheld and released as provided in Section 13-8-5 .
            85935         (3) If the department performs a construction or improvement project by force account,
            85936     the department shall:
            85937         (a) provide an accounting of the costs and expenditures of the improvement including
            85938     material and labor;
            85939         (b) disclose the costs and expenditures to any person upon request and allow the person
            85940     to make a copy and pay for the actual cost of the copy; and
            85941         (c) perform the work using the same specifications and standards that would apply to a
            85942     private contractor.
            85943         (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85944     Administrative Rulemaking Act, the department shall establish procedures for:
            85945         (a) hearing evidence that a region within the department violated this section; and
            85946         (b) administering sanctions against the region if the region is found in violation.
            85947         Section 2103. Section 72-6-108 is amended to read:
            85948          72-6-108. Class B and C roads -- Improvement projects -- Contracts -- Retainage.
            85949         (1) A county executive for class B roads and the municipal executive for class C roads
            85950     shall cause plans, specifications, and estimates to be made prior to the construction of any
            85951     improvement project, as defined in Section 72-6-109 , on a class B or C road if the estimated
            85952     cost for any one project exceeds the bid limit as defined in Section 72-6-109 for labor,
            85953     equipment, and materials.
            85954         (2) (a) All projects in excess of the bid limit shall be performed under contract to be let
            85955     to the lowest responsible bidder.
            85956         (b) If the estimated cost of the improvement project exceeds the bid limit for labor,
            85957     equipment, and materials, the project may not be divided to permit the construction in parts,
            85958     unless each part is done by contract.
            85959         (3) The advertisement on bids shall be published in a newspaper of general circulation in
            85960     the county in which the work is to be performed at least once a week for three consecutive
            85961     weeks. If there is no newspaper of general circulation, the notice shall be posted for at least 20

            85962     days in at least five public places in the county.
            85963         (4) The county or municipal executive or their designee shall receive sealed bids and
            85964     open the bids at the time and place designated in the advertisement. The county or municipal
            85965     executive or their designee may then award the contract but may reject any and all bids.
            85966         (5) The person, firm, or corporation that is awarded a contract under this section is
            85967     subject to the provisions of [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement
            85968     Code.
            85969         (6) If any payment on a contract with a private contractor for construction or
            85970     improvement of a class B or C road is retained or withheld, the payment shall be retained or
            85971     withheld and released as provided in Section 13-8-5 .
            85972         Section 2104. Section 72-6-111 is amended to read:
            85973          72-6-111. Construction and maintenance of appurtenances -- Noise abatement
            85974      measures.
            85975         (1) The department is authorized to construct and maintain appurtenances along the
            85976     state highway system necessary for public safety, welfare, and information. Appurtenances
            85977     include highway illumination, sidewalks, curbs, gutters, steps, driveways, retaining walls, fire
            85978     hydrants, guard rails, noise abatement measures, storm sewers, and rest areas.
            85979         (2) A noise abatement measure may only be constructed by the department along a
            85980     highway when:
            85981         (a) the department is constructing a new state highway or performing major
            85982     reconstruction on an existing state highway;
            85983         (b) the Legislature provides an appropriation or the federal government provides
            85984     funding for construction of retrofit noise abatement along an existing state highway; or
            85985         (c) the cost for the noise abatement measure is provided by citizens, adjacent property
            85986     owners, developers, or local governments.
            85987         (3) In addition to the requirements under Subsection (2), the department may only
            85988     construct noise abatement measures within the unincorporated area of a county or within a
            85989     municipality that has an ordinance or general plan that requires:

            85990         (a) a study to be conducted to determine the noise levels along new development
            85991     adjacent to an existing state highway or a dedicated right-of-way; and
            85992         (b) the construction of noise abatement measures at the expense of the developer if
            85993     required to be constructed under standards established by a rule of the department.
            85994         (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            85995     Administrative Rulemaking Act, the department shall make rules establishing:
            85996         (a) when noise abatement measures are required to be constructed, including standards
            85997     for decibel levels of traffic noise;
            85998         (b) the decibel level of traffic noise which identifies the projects to be programmed by
            85999     the commission for the earliest construction of retrofit noise abatement measures funded under
            86000     Subsection (2)(b) based on availability of funding; and
            86001         (c) a priority system for the construction of other retrofit noise abatement measures that
            86002     meet or exceed the standards established under this section and are funded under Subsection
            86003     (2)(b) which includes:
            86004         (i) the number of residential dwellings adversely affected by the traffic noise;
            86005         (ii) the cost effectiveness of mitigating the traffic noise; and
            86006         (iii) the length of time the decibel level of traffic noise has met or exceeded the
            86007     standards established under this section.
            86008         Section 2105. Section 72-6-116 is amended to read:
            86009          72-6-116. Regulation of utilities -- Relocation of utilities.
            86010         (1) As used in this section:
            86011         (a) "Cost of relocation" includes the entire amount paid by the utility company properly
            86012     attributable to the relocation of the utility after deducting any increase in the value of the new
            86013     utility and any salvage value derived from the old utility.
            86014         (b) "Utility" includes telecommunication, gas, electricity, cable television, water, sewer,
            86015     data, and video transmission lines, drainage and irrigation systems, and other similar utilities
            86016     located in, on, along, across, over, through, or under any state highway.
            86017         (c) "Utility company" means a privately, cooperatively, or publicly owned utility,

            86018     including utilities owned by political subdivisions.
            86019         (2) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86020     Administrative Rulemaking Act, the department may make rules for the installation,
            86021     construction, maintenance, repair, renewal, system upgrade, and relocation of all utilities.
            86022         (b) If the department determines under the rules established in this section that it is
            86023     necessary that any utilities should be relocated, the utility company owning or operating the
            86024     utilities shall relocate the utilities in accordance with this section and the order of the
            86025     department.
            86026         (3) (a) The department shall pay 100% of the cost of relocation of a utility on a state
            86027     highway if the:
            86028         (i) utility is owned or operated by a political subdivision of the state; or
            86029         (ii) utility company owns the easement or fee title to the right-of-way in which the
            86030     utility is located.
            86031         (b) Except as provided in Subsection (3)(a) or (c), the department shall pay 50% of the
            86032     cost of relocation of a utility on a state highway and the utility company shall pay the remainder
            86033     of the cost of relocation.
            86034         (c) This Subsection (3) does not affect the provisions of Subsection 72-7-108 (5).
            86035         (4) If a utility is relocated, the utility company owning or operating the utility, its
            86036     successors or assigns, may maintain and operate the utility, with the necessary appurtenances, in
            86037     the new location.
            86038         (5) In accordance with this section, the cost of relocating a utility in connection with
            86039     any project on a highway is a cost of highway construction.
            86040         (6) (a) The department shall notify affected utility companies whenever the relocation of
            86041     utilities is likely to be necessary because of a reconstruction project.
            86042         (b) The notification shall be made during the preliminary design of the project or as
            86043     soon as practical in order to minimize the number, costs, and delays of utility relocations.
            86044         (c) A utility company notified under this Subsection (6) shall coordinate with the
            86045     department and the department's contractor on the utility relocations, including the scheduling

            86046     of the utility relocations.
            86047         Section 2106. Section 72-6-118 is amended to read:
            86048          72-6-118. Definitions -- Establishment and operation of tollways -- Imposition
            86049      and collection of tolls -- Amount of tolls -- Rulemaking.
            86050         (1) As used in this section:
            86051         (a) "High occupancy toll lane" means a high occupancy vehicle lane designated under
            86052     Section 41-6a-702 that may be used by an operator of a vehicle carrying less than the number of
            86053     persons specified for the high occupancy vehicle lane if the operator of the vehicle pays a toll or
            86054     fee.
            86055         (b) "Toll" means any tax, fee, or charge assessed for the specific use of a tollway.
            86056         (c) "Toll lane" means a designated new highway or additional lane capacity that is
            86057     constructed, operated, or maintained for which a toll is charged for its use.
            86058         (d) (i) "Tollway" means a highway, highway lane, bridge, path, tunnel, or right-of-way
            86059     designed and used as a transportation route that is constructed, operated, or maintained through
            86060     the use of toll revenues.
            86061         (ii) "Tollway" includes a high occupancy toll lane and a toll lane.
            86062         (e) "Tollway development agreement" has the same meaning as defined in Section
            86063      72-6-202 .
            86064         (2) Subject to the provisions of Subsection (3), the department may:
            86065         (a) establish, expand, and operate tollways and related facilities for the purpose of
            86066     funding in whole or in part the acquisition of right-of-way and the design, construction,
            86067     reconstruction, operation, enforcement, and maintenance of or impacts from a transportation
            86068     route for use by the public;
            86069         (b) enter into contracts, agreements, licenses, franchises, tollway development
            86070     agreements, or other arrangements to implement this section;
            86071         (c) impose and collect tolls on any tollway established under this section; and
            86072         (d) grant exclusive or nonexclusive rights to a private entity to impose and collect tolls
            86073     pursuant to the terms and conditions of a tollway development agreement.

            86074         (3) (a) Except as provided under Subsection (3)(d), the department or other entity may
            86075     not establish or operate a tollway on an existing state highway, except as approved by the
            86076     commission and the Legislature.
            86077         (b) Between sessions of the Legislature, a state tollway may be designated or deleted if:
            86078         (i) approved by the commission in accordance with the standards made under this
            86079     section; and
            86080         (ii) the tollways are submitted to the Legislature in the next year for legislative approval
            86081     or disapproval.
            86082         (c) In conjunction with a proposal submitted under Subsection (3)(b)(ii), the
            86083     department shall provide a description of the tollway project, projected traffic, the anticipated
            86084     amount of tolls to be charged, and projected toll revenue.
            86085         (d) If approved by the commission, the department may:
            86086         (i) establish high occupancy toll lanes on existing state highways; and
            86087         (ii) establish tollways on new state highways or additional capacity lanes.
            86088         (4) (a) Except as provided in Subsection (4)(b), in accordance with [Title 63, Chapter
            86089     46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall:
            86090         (i) set the amount of any toll imposed or collected on a tollway on a state highway; and
            86091         (ii) for tolls established under Subsection (4)(b), set:
            86092         (A) an increase in a toll rate or user fee above an increase specified in a tollway
            86093     development agreement; or
            86094         (B) an increase in a toll rate or user fee above a maximum toll rate specified in a tollway
            86095     development agreement.
            86096         (b) A toll or user fee and an increase to a toll or user fee imposed or collected on a
            86097     tollway on a state highway that is the subject of a tollway development agreement shall be set in
            86098     the tollway development agreement.
            86099         (5) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86100     Administrative Rulemaking Act, the department shall make rules:
            86101         (i) necessary to establish and operate tollways on state highways; and

            86102         (ii) that establish standards and specifications for automatic tolling systems.
            86103         (b) The rules shall:
            86104         (i) include minimum criteria for having a tollway; and
            86105         (ii) conform to regional and national standards for automatic tolling.
            86106         (6) (a) The commission may provide funds for public or private tollway pilot projects or
            86107     high occupancy toll lanes from General Fund monies appropriated by the Legislature to the
            86108     commission for that purpose.
            86109         (b) The commission may determine priorities and funding levels for tollways designated
            86110     under this section.
            86111         (7) (a) Except as provided in Subsection (7)(b), all revenue generated from a tollway on
            86112     a state highway shall be deposited into the Tollway Restricted Special Revenue Fund created in
            86113     Section 72-2-120 and used for acquisition of right-of-way and the design, construction,
            86114     reconstruction, operation, maintenance, enforcement of transportation facilities, and other
            86115     facilities used exclusively for the operation of a tollway facility within the corridor served by the
            86116     tollway.
            86117         (b) Revenue generated from a tollway that is the subject of a tollway development
            86118     agreement shall be deposited into the Tollway Restricted Special Revenue Fund and used in
            86119     accordance with Subsection (7)(a) unless:
            86120         (i) the revenue is to a private entity through the tollway development agreement; or
            86121         (ii) the revenue is identified for a different purpose under the tollway development
            86122     agreement.
            86123         Section 2107. Section 72-6-119 is amended to read:
            86124          72-6-119. "511" Traveler information services -- Lead agency -- Implementation
            86125      -- Cooperation -- Rulemaking -- Costs.
            86126         (1) As used in this section, "511" or "511 service" means three-digit
            86127     telecommunications dialing to access intelligent transportation system -- traveler information
            86128     service provided in the state in accordance with the Federal Communications Commission and
            86129     United States Department of Transportation.

            86130         (2) The department is the state's lead agency for implementing 511 service and is the
            86131     state's point of contact for coordinating 511 service with telecommunications service providers.
            86132         (3) The department shall:
            86133         (a) implement and administer 511 service in the state;
            86134         (b) coordinate with the highway authorities and public transit districts to provide
            86135     advanced multimodal traveler information through 511 service and other means; and
            86136         (c) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86137     Administrative Rulemaking Act, make rules as necessary to implement this section.
            86138         (4) (a) In accordance with Title 11, Chapter 13, Interlocal Cooperation Act, the
            86139     department shall enter into agreements or contracts with highway authorities and public transit
            86140     districts to share the costs of implementing and administering 511 service in the state.
            86141         (b) The department shall enter into other agreements or contracts relating to the 511
            86142     service to offset the costs of implementing and administering 511 service in the state.
            86143         Section 2108. Section 72-6-120 is amended to read:
            86144          72-6-120. Department authorized to participate in federal program assuming
            86145      responsibility for environmental review of categorically excluded projects -- Rulemaking
            86146      authority.
            86147         (1) The department may:
            86148         (a) assume responsibilities under 23 U.S.C. Sec. 326 for:
            86149         (i) determining whether state highway design and construction projects are categorically
            86150     excluded from requirements for environmental assessments or environmental impact statements;
            86151     and
            86152         (ii) environmental review, consultation, or other actions required under federal law for
            86153     categorically excluded projects;
            86154         (b) enter one or more memoranda of understanding with the United States Department
            86155     of Transportation related to federal highway programs as provided in 23 U.S.C. Sec. 326
            86156     subject to the requirements of Subsection 72-1-207 (5);
            86157         (c) accept, receive, and administer grants, other money, or gifts from public and private

            86158     agencies, including the federal government, for the purpose of carrying out the programs
            86159     authorized under this section; and
            86160         (d) cooperate with the federal government in implementing this section and any
            86161     memorandum of understanding entered into under Subsection 72-1-207 (5).
            86162         (2) Notwithstanding any other provision of law, in implementing a program under this
            86163     section that is approved by the United States Department of Transportation, the department is
            86164     authorized to:
            86165         (a) perform or conduct any of the activities described in a memorandum of
            86166     understanding entered into under Subsection 72-1-207 (5);
            86167         (b) take actions necessary to implement the program; and
            86168         (c) adopt relevant federal environmental standards as the standards for this state for
            86169     categorically excluded projects.
            86170         (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86171     Administrative Rulemaking Act, the department may makes rules to implement the provisions of
            86172     this section.
            86173         Section 2109. Section 72-6-204 is amended to read:
            86174          72-6-204. Minimum requirements for a tollway development agreement proposal.
            86175         (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86176     Administrative Rulemaking Act, the department and the commission shall make rules
            86177     establishing minimum guidelines for tollway development agreement proposals.
            86178         (2) The guidelines under Subsection (1) shall require the proposal to include:
            86179         (a) a map indicating the location of the tollway facility;
            86180         (b) a description of the tollway facility;
            86181         (c) a list of the major permits and approvals required for developing or operating
            86182     improvements to the tollway facility from local, state, or federal agencies and a projected
            86183     schedule for obtaining the permits and approvals;
            86184         (d) a description of the types of public utility facilities, if any, that will be crossed by the
            86185     tollway facility and a statement of the plans to accommodate the crossing;

            86186         (e) an estimate of the design and construction costs of the tollway facility;
            86187         (f) a statement setting forth the private entity's general plans for developing or operating
            86188     the tollway facility, including identification of any revenue, public or private, or proposed debt
            86189     or equity investment proposed by the private entity;
            86190         (g) a statement of the estimated level of funding, if any, required to be provided by the
            86191     state;
            86192         (h) the name and addresses of the persons who may be contacted for further
            86193     information concerning the tollway development agreement proposal; and
            86194         (i) any other material or information that the department requires by rules made under
            86195     this section.
            86196         (3) The department is not required to review a tollway development agreement
            86197     proposal if it determines that the proposal does not meet the guidelines established under this
            86198     section.
            86199         Section 2110. Section 72-6-205 is amended to read:
            86200          72-6-205. Solicited and unsolicited tollway development agreement proposals.
            86201         (1) In accordance with this section, the department may:
            86202         (a) accept unsolicited tollway development agreement proposals; or
            86203         (b) solicit tollway development agreement proposals for a proposed project.
            86204         (2) The department shall solicit tollway development agreement proposals in
            86205     accordance with Section [ 63-56-502.5 ] 63G-6-503 .
            86206         (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86207     Administrative Rulemaking Act, the department and the commission shall establish rules and
            86208     procedures for accepting unsolicited proposals that require the:
            86209         (a) private entity that submits the unsolicited proposal to comply with the minimum
            86210     requirements for tollway development agreement proposals under Section 72-6-204 ;
            86211         (b) department to issue a request for competing proposals and qualifications that
            86212     includes:
            86213         (i) a description of the proposed tollway development facility and the terms and

            86214     conditions of a tollway development agreement;
            86215         (ii) submittal requirements;
            86216         (iii) the criteria to be used to evaluate the proposals;
            86217         (iv) the relative weight given to the criteria; and
            86218         (v) the deadline by which competing proposals must be received; and
            86219         (c) department to publish a notice advertising the request for competing proposals and
            86220     providing information regarding how to obtain a copy of the request.
            86221         (4) (a) The department may establish a fee in accordance with Section [ 63-38-3.2 ]
            86222      63J-1-303 for reviewing unsolicited proposals and competing proposals submitted under this
            86223     section.
            86224         (b) The department may waive the fee under Subsection (4)(a) if it determines that it is
            86225     reasonable and in the best interest of the state.
            86226         Section 2111. Section 72-7-102 is amended to read:
            86227          72-7-102. Excavations, structures, or objects prohibited within right-of-way
            86228      except in accordance with law -- Permit and fee requirements -- Rulemaking -- Penalty
            86229      for violation.
            86230         (1) As used in this section, "management costs" means the reasonable, direct, and actual
            86231     costs a highway authority incurs in exercising authority over the highways under its jurisdiction.
            86232         (2) Except as provided in Subsection (3) and Section 54-4-15 , a person may not:
            86233         (a) dig or excavate, within the right-of-way of any state highway, county road, or city
            86234     street; or
            86235         (b) place, construct, or maintain any approach road, driveway, pole, pipeline, conduit,
            86236     sewer, ditch, culvert, billboard, advertising sign, or any other structure or object of any kind or
            86237     character within the right-of-way.
            86238         (3) (a) A highway authority having jurisdiction over the right-of-way may allow
            86239     excavating, installation of utilities and other facilities or access under rules made by the highway
            86240     authority and in compliance with federal, state, and local law as applicable.
            86241         (b) (i) The rules may require a permit for any excavation or installation and may require

            86242     a surety bond or other security.
            86243         (ii) The application for a permit for excavation or installation on a state highway shall
            86244     be accompanied by a fee established under Subsection (4)(f).
            86245         (iii) The permit may be revoked and the surety bond or other security may be forfeited
            86246     for cause.
            86247         (4) (a) Except as provided in Section 72-7-108 with respect to the department
            86248     concerning the interstate highway system, a highway authority may require compensation from
            86249     a utility service provider for access to the right-of-way of a highway only as provided in this
            86250     section.
            86251         (b) A highway authority may recover from a utility service provider, only those
            86252     management costs caused by the utility service provider's activities in the right-of-way of a
            86253     highway under the jurisdiction of the highway authority.
            86254         (c) (i) A fee or other compensation under this Subsection (4) shall be imposed on a
            86255     competitively neutral basis.
            86256         (ii) If a highway authority's management costs cannot be attributed to only one entity,
            86257     the management costs shall be allocated among all privately owned and government agencies
            86258     using the highway right-of-way for utility service purposes, including the highway authority
            86259     itself. The allocation shall reflect proportionately the management costs incurred by the
            86260     highway authority as a result of the various utility uses of the highway.
            86261         (d) A highway authority may not use the compensation authority granted under this
            86262     Subsection (4) as a basis for generating revenue for the highway authority that is in addition to
            86263     its management costs.
            86264         (e) (i) A utility service provider that is assessed management costs or a franchise fee by
            86265     a highway authority is entitled to recover those management costs.
            86266         (ii) If the highway authority that assesses the management costs or franchise fees is a
            86267     political subdivision of the state and the utility service provider serves customers within the
            86268     boundaries of that highway authority, the management costs may be recovered from those
            86269     customers.

            86270         (f) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86271     Administrative Rulemaking Act, the department shall adopt a schedule of fees to be assessed for
            86272     management costs incurred in connection with issuing and administering a permit on a state
            86273     highway under this section.
            86274         (g) In addition to the requirements of this Subsection (4), a telecommunications tax or
            86275     fee imposed by a municipality on a telecommunications provider, as defined in Section
            86276      10-1-402 , is subject to Section 10-1-406 .
            86277         (5) Permit fees collected by the department under this section shall be deposited with
            86278     the state treasurer and credited to the Transportation Fund.
            86279         (6) Nothing in this section shall affect the authority of a municipality under:
            86280         (a) Section 10-1-203 ;
            86281         (b) Section 11-26-1 ;
            86282         (c) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act; or
            86283         (d) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
            86284         (7) A person who violates the provisions of Subsection (2) is guilty of a class B
            86285     misdemeanor.
            86286         Section 2112. Section 72-7-104 is amended to read:
            86287          72-7-104. Installations constructed in violation of rules -- Rights of highway
            86288      authorities to remove or require removal.
            86289         (1) If any person, firm, or corporation installs, places, constructs, alters, repairs, or
            86290     maintains any approach road, driveway, pole, pipeline, conduit, sewer, ditch, culvert, outdoor
            86291     advertising sign, or any other structure or object of any kind or character within the
            86292     right-of-way of any highway without complying with this title, the highway authority having
            86293     jurisdiction over the right-of-way may:
            86294         (a) remove the installation from the right-of-way or require the person, firm, or
            86295     corporation to remove the installation; or
            86296         (b) give written notice to the person, firm, or corporation to remove the installation
            86297     from the right-of-way.

            86298         (2) Notice under Subsection (1)(b) may be served by:
            86299         (a) personal service; or
            86300         (b) (i) mailing the notice to the person, firm, or corporation by certified mail; and
            86301         (ii) posting a copy on the installation for ten days.
            86302         (3) If the installation is not removed within ten days after the notice is complete, the
            86303     highway authority may remove the installation at the expense of the person, firm, or
            86304     corporation.
            86305         (4) A highway authority may recover:
            86306         (a) the costs and expenses incurred in removing the installation, serving notice, and the
            86307     costs of a lawsuit if any; and
            86308         (b) $10 for each day the installation remained within the right-of-way after notice was
            86309     complete.
            86310         (5) (a) If the person, firm, or corporation disputes or denies the existence, placement,
            86311     construction, or maintenance of the installation, or refuses to remove or permit its removal, the
            86312     highway authority may bring an action to abate the installation as a public nuisance.
            86313         (b) If the highway authority is granted a judgment, the highway authority may recover
            86314     the costs of having the public nuisance abated as provided in Subsection (4).
            86315         (6) The department, its agents, or employees, if acting in good faith, incur no liability
            86316     for causing removal of an installation within a right-of-way of a highway as provided in this
            86317     section.
            86318         (7) The actions of the department under this section are not subject to the provisions of
            86319     [Title 63, Chapter 46b, the] Title 63G, Chapter 4, Administrative Procedures Act.
            86320         Section 2113. Section 72-7-107 is amended to read:
            86321          72-7-107. Public safety program signs -- Permits.
            86322         (1) As used in this section, "public safety program sign" means a sign, placed on or
            86323     adjacent to a highway, that is promoting a highway safety program or highway safety practice,
            86324     or a crime or drug abuse prevention program that is being sponsored by the department, the
            86325     Department of Public Safety, or a local law enforcement agency.

            86326         (2) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86327     Administrative Rulemaking Act, the department shall make rules to allow public safety program
            86328     signs on state highways by permit. The rules shall contain reasonable terms and conditions:
            86329         (a) that are no more restrictive than motorist service signing requirements of the
            86330     Manual on Uniform Traffic Control Devices for Streets and Highways adopted under Section
            86331      41-6a-301 ; and
            86332         (b) for granting and maintaining a permit.
            86333         Section 2114. Section 72-7-108 is amended to read:
            86334          72-7-108. Longitudinal telecommunication access in the interstate highway
            86335      system -- Definitions -- Agreements -- Compensation -- Restrictions -- Rulemaking.
            86336         (1) As used in this section:
            86337         (a) "Longitudinal access" means access to or use of any part of a right-of-way of a
            86338     highway on the interstate system that extends generally parallel to the right-of-way for a total of
            86339     30 or more linear meters.
            86340         (b) "Statewide telecommunications purposes" means the further development of the
            86341     statewide network that meets the telecommunications needs of state agencies and enhances the
            86342     learning purposes of higher and public education.
            86343         (c) "Telecommunication facility" means any telecommunication cable, line, fiber, wire,
            86344     conduit, innerduct, access manhole, handhole, tower, hut, pedestal, pole, box, transmitting
            86345     equipment, receiving equipment, power equipment, or other equipment, system, and device
            86346     used to transmit, receive, produce, or distribute via wireless, wireline, electronic, or optical
            86347     signal for communication purposes.
            86348         (2) (a) Except as provided in Subsection (4), the department may allow a
            86349     telecommunication facility provider longitudinal access to the right-of-way of a highway on the
            86350     interstate system for the installation, operation, and maintenance of a telecommunication facility.
            86351         (b) The department shall enter into an agreement with a telecommunication facility
            86352     provider and issue a permit before granting it any longitudinal access under this section.
            86353         (i) Except as specifically provided by the agreement, a property interest in a

            86354     right-of-way may not be granted under the provisions of this section.
            86355         (ii) An agreement entered into by the department under this section shall:
            86356         (A) specify the terms and conditions for the renegotiation of the agreement;
            86357         (B) specify maintenance responsibilities for each telecommunication facility;
            86358         (C) be nonexclusive; and
            86359         (D) be limited to a maximum term of 30 years.
            86360         (3) (a) The department shall require compensation from a telecommunication facility
            86361     provider under this section for longitudinal access to the right-of-way of a highway on the
            86362     interstate system.
            86363         (b) The compensation charged shall be:
            86364         (i) fair and reasonable;
            86365         (ii) competitively neutral;
            86366         (iii) nondiscriminatory;
            86367         (iv) open to public inspection;
            86368         (v) established to promote access by multiple telecommunication facility providers;
            86369         (vi) established for zones of the state, with zones determined based upon factors that
            86370     include population density, distance, numbers of telecommunication subscribers, and the impact
            86371     upon private right-of-way users;
            86372         (vii) established to encourage the deployment of digital infrastructure within the state;
            86373         (viii) set after the department conducts a market analysis to determine the fair and
            86374     reasonable values of the right-of-way based upon adjacent property values;
            86375         (ix) a lump sum payment or annual installment, at the option of the telecommunications
            86376     facility provider; and
            86377         (x) set in accordance with Subsection (3)(f).
            86378         (c) (i) The compensation charged may be cash, in-kind compensation, or a combination
            86379     of cash and in-kind compensation.
            86380         (ii) In-kind compensation requires the agreement of both the telecommunication facility
            86381     provider and the department.

            86382         (iii) The department shall, in consultation with the Telecommunications Advisory
            86383     Council created in Section 72-7-109 , determine the present value of any in-kind compensation
            86384     based upon the incremental cost to the telecommunication facility provider.
            86385         (iv) The value of in-kind compensation or a combination of cash and in-kind
            86386     compensation shall be equal to or greater than the amount of cash compensation that would be
            86387     charged if the compensation is cash only.
            86388         (d) (i) The department shall provide for the proportionate sharing of costs among the
            86389     department and telecommunications providers for joint trenching or trench sharing based on the
            86390     amount of conduit innerduct space that is authorized in the agreement for the trench.
            86391         (ii) If two or more telecommunications facility providers are required to share a single
            86392     trench, each telecommunications facility provider in the trench shall share the cost and benefits
            86393     of the trench in accordance with Subsection (3)(d)(i) on a fair, reasonable, competitively
            86394     neutral, and nondiscriminatory basis.
            86395         (e) The market analysis under Subsection (3)(b)(viii) shall be conducted at least every
            86396     five years and any adjustments warranted shall apply only to agreements entered after the date
            86397     of the new market analysis.
            86398         (f) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86399     Administrative Rulemaking Act, the department shall establish a schedule of rates of
            86400     compensation for any longitudinal access granted under this section.
            86401         (4) The department may not grant any longitudinal access under this section that results
            86402     in a significant compromise of the safe, efficient, and convenient use of the interstate system for
            86403     the traveling public.
            86404         (5) The department may not pay any cost of relocation of a telecommunication facility
            86405     granted longitudinal access to the right-of-way of a highway on the interstate system under this
            86406     section.
            86407         (6) (a) Monetary compensation collected by the department in accordance with this
            86408     section shall be deposited with the state treasurer and credited to the Transportation Fund.
            86409         (b) Any telecommunications capacity acquired as in-kind compensation shall be used:

            86410         (i) exclusively for statewide telecommunications purposes and may not be sold or leased
            86411     in competition with telecommunication or Internet service providers; and
            86412         (ii) as determined by the department after consultation with the Telecommunications
            86413     Advisory Council created in Section 72-7-109 .
            86414         (7) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86415     Administrative Rulemaking Act, the department shall make rules:
            86416         (a) governing the installation, operation, and maintenance of a telecommunication
            86417     facility granted longitudinal access under this section;
            86418         (b) specifying the procedures for establishing an agreement for longitudinal access for a
            86419     telecommunication facility provider;
            86420         (c) providing for the relocation or removal of a telecommunication facility for:
            86421         (i) needed changes to a highway on the interstate system;
            86422         (ii) expiration of an agreement; or
            86423         (iii) a breach of an agreement; and
            86424         (d) providing an opportunity for all interested providers to apply for access within open
            86425     right-of-way segments.
            86426         (8) (a) Except for a right-of-way of a highway on the interstate system, nothing in this
            86427     section shall be construed to allow a highway authority to require compensation from a
            86428     telecommunication facility provider for longitudinal access to the right-of-way of a highway
            86429     under the highway authority's jurisdiction.
            86430         (b) Nothing in this section shall affect the authority of a municipality under:
            86431         (i) Section 10-1-203 ;
            86432         (ii) Section 11-26-1 ;
            86433         (iii) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act; or
            86434         (iv) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
            86435         (9) Compensation paid to the department under Subsection (3) may not be used by any
            86436     person as evidence of the market or other value of the access for any other purpose, including
            86437     condemnation proceedings, other litigation, or the application of rates of taxation or the

            86438     establishment of franchise fees relating to longitudinal access rights.
            86439         Section 2115. Section 72-7-203 is amended to read:
            86440          72-7-203. License required.
            86441         (1) A person may not establish, operate, or maintain a junkyard, any portion of which is
            86442     within 1,000 feet of the nearest edge of the right-of-way of any interstate or federal-aid primary
            86443     highway, without obtaining a license from the department under this part.
            86444         (2) A municipality may adopt ordinances, not in conflict with this part, to regulate the
            86445     creation or maintenance of junkyards of any type within 660 feet of the right-of-way of
            86446     designated state and federal highways within the jurisdictional limits of the adopting
            86447     municipality.
            86448         (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86449     Administrative Rulemaking Act, the department may make rules, not in conflict with this part,
            86450     to regulate the creation and maintenance of junkyards within 660 feet of the right-of-way of
            86451     designated federal and state highways outside the jurisdictional limits of a municipality.
            86452         Section 2116. Section 72-7-205 is amended to read:
            86453          72-7-205. Conditions for licensing of junkyard within 1,000 feet of highway.
            86454         (1) The department may not grant a license for the establishment, maintenance, or
            86455     operation of a junkyard within 1,000 feet of the nearest edge of the right-of-way of any highway
            86456     on the interstate or primary systems unless the junkyard is:
            86457         (a) screened by natural objects, plantings, fences, or other appropriate means so the
            86458     junkyard is not visible from the main-traveled-way of the system; and
            86459         (b) (i) located within areas that are zoned for industrial use under county or municipal
            86460     ordinances; or
            86461         (ii) located within unzoned industrial areas, determined by actual land uses as defined by
            86462     rules made by the department in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
            86463     Utah Administrative Rulemaking Act.
            86464         (2) A junkyard controlled by this part may not be expanded or have its use extended
            86465     except by permission of the department under rules made by the department.

            86466         Section 2117. Section 72-7-206 is amended to read:
            86467          72-7-206. Screening of existing junkyards.
            86468         (1) The department shall screen any junkyard lawfully in existence on May 9, 1967,
            86469     which is located within 1,000 feet of the nearest edge of the right-of-way and visible from the
            86470     main-traveled-way of any highway on the interstate or primary system.
            86471         (2) The screening shall be at locations on the right-of-way or in areas outside the
            86472     right-of-way acquired for that purpose and may not be visible from the main-traveled-way of the
            86473     interstate or federal-aid primary systems.
            86474         (3) The department may not install junkyard screening under this section unless:
            86475         (a) the necessary federal funds for participation have been appropriated by the federal
            86476     government and are immediately available to the state; and
            86477         (b) the department has received approval to seek federal grants, loans, or participation
            86478     in federal programs under [Title 63, Chapter 38e] Title 63J, Chapter 5, Federal Funds
            86479     Procedures.
            86480         Section 2118. Section 72-7-207 is amended to read:
            86481          72-7-207. Junkyards not adaptable to screening -- Authority of department to
            86482      acquire land -- Compensation.
            86483         (1) If the department determines that the topography of the land adjoining the interstate
            86484     and primary systems will not permit adequate screening of junkyards or that screening would
            86485     not be economically feasible, the department may acquire by gift, purchase, exchange, or
            86486     eminent domain the interests in lands necessary to secure the relocation, removal, or disposal of
            86487     the junkyards.
            86488         (2) If the department determines that it is in the best interests of the state, it may
            86489     acquire lands, or interests in lands, necessary to provide adequate screening of junkyards.
            86490         (3) The acquisitions provided for in this section may not be undertaken unless:
            86491         (a) the necessary federal funds for participation have been appropriated by the federal
            86492     government and are immediately available to the state; and
            86493         (b) the department has received approval to seek federal grants, loans, or participation

            86494     in federal programs under [Title 63, Chapter 38e] Title 63J, Chapter 5, Federal Funds
            86495     Procedures.
            86496         (4) Damages resulting from any taking of property in eminent domain shall be
            86497     ascertained in the manner provided by law.
            86498         (5) Just compensation shall be paid the owner for the relocation, removal, or disposal of
            86499     a junkyard lawfully established under the laws of this state and which must be relocated,
            86500     removed, or disposed of under this part.
            86501         Section 2119. Section 72-7-209 is amended to read:
            86502          72-7-209. Enforcement authority -- Agreements with United States.
            86503         (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86504     Administrative Rulemaking Act, the department may make rules:
            86505         (a) governing the materials that may be used for screening and the location,
            86506     construction, and maintenance of screening for junkyards; and
            86507         (b) implementing and enforcing this part.
            86508         (2) The department may:
            86509         (a) enter into agreements with the secretary pursuant to Title 23, United States Code as
            86510     amended, relating to the control of junkyards in areas adjacent to the interstate and primary
            86511     systems; and
            86512         (b) take action in the name of the state to comply with the terms of the agreements.
            86513         Section 2120. Section 72-7-402 is amended to read:
            86514          72-7-402. Limitations as to vehicle width, height, length, and load extensions.
            86515         (1) (a) Except as provided by statute, all state or federally approved safety devices and
            86516     any other lawful appurtenant devices, including refrigeration units, hitches, air line connections,
            86517     and load securing devices related to the safe operation of a vehicle are excluded for purposes of
            86518     measuring the width and length of a vehicle under the provisions of this part, if the devices are
            86519     not designed or used for carrying cargo.
            86520         (b) Load-induced tire bulge is excluded for purposes of measuring the width of vehicles
            86521     under the provisions of this part.

            86522         (c) Appurtenances attached to the sides or rear of a recreational vehicle that is not a
            86523     commercial motor vehicle are excluded for purposes of measuring the width and length of the
            86524     recreational vehicle if the additional width or length of the appurtenances does not exceed six
            86525     inches.
            86526         (2) A vehicle unladen or with a load may not exceed a width of 8-1/2 feet.
            86527         (3) A vehicle unladen or with a load may not exceed a height of 14 feet.
            86528         (4) (a) (i) A single-unit vehicle, unladen or with a load, may not exceed a length of 45
            86529     feet including front and rear bumpers.
            86530         (ii) In this section, a truck tractor coupled to one or more semitrailers or trailers is not
            86531     considered a single-unit vehicle.
            86532         (b) (i) Except as provided under Subsection (4)(b)(iii), a semitrailer, unladen or with a
            86533     load, may not exceed a length of 48 feet excluding refrigeration units, hitches, air line
            86534     connections, and safety appurtenances.
            86535         (ii) There is no overall length limitation on a truck tractor and semitrailer combination
            86536     when the semitrailer length is 48 feet or less.
            86537         (iii) A semitrailer that exceeds a length of 48 feet but does not exceed a length of 53
            86538     feet may operate on a route designated by the department or within one mile of that route.
            86539         (c) (i) Two trailers coupled together, unladen or with a load, may not exceed an overall
            86540     length of 61 feet, measured from the front of the first trailer to the rear of the second trailer.
            86541         (ii) There is no overall length limitation on a truck tractor and double trailer
            86542     combination when the trailers coupled together measure 61 feet or less.
            86543         (d) All other combinations of vehicles, unladen or with a load, when coupled together,
            86544     may not exceed a total length of 65 feet, except the length limitations do not apply to
            86545     combinations of vehicles operated at night by a public utility when required for emergency
            86546     repair of public service facilities or properties, or when operated under a permit under Section
            86547      72-7-406 .
            86548         (5) (a) Subject to Subsection (4), a vehicle or combination of vehicles may not carry
            86549     any load extending more than three feet beyond the front of the body of the vehicle or more

            86550     than six feet beyond the rear of the bed or body of the vehicle.
            86551         (b) A passenger vehicle may not carry any load extending beyond the line of the fenders
            86552     on the left side of the vehicle nor extending more than six inches beyond the line of the fenders
            86553     on the right side of the vehicle.
            86554         (6) Any exception to this section must be authorized by a permit as provided under
            86555     Section 72-7-406 .
            86556         (7) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86557     Administrative Rulemaking Act, the department shall make rules designating routes where a
            86558     semitrailer that exceeds a length of 48 feet but that does not exceed a length of 53 feet may
            86559     operate as provided under Subsection (4)(b)(iii).
            86560         (8) Any person who violates this section is guilty of a class B misdemeanor.
            86561         Section 2121. Section 72-7-406 is amended to read:
            86562          72-7-406. Oversize permits and oversize and overweight permits for vehicles of
            86563      excessive size or weight -- Applications -- Restrictions -- Fees -- Rulemaking provisions --
            86564      Penalty.
            86565         (1) (a) The department may, upon receipt of an application and good cause shown,
            86566     issue in writing an oversize permit or an oversize and overweight permit. The oversize permit
            86567     or oversize and overweight permit may authorize the applicant to operate or move upon a
            86568     highway:
            86569         (i) a vehicle or combination of vehicles, unladen or with a load weighing more than the
            86570     maximum weight specified in Section 72-7-404 for any wheel, axle, group of axles, or total
            86571     gross weight; or
            86572         (ii) a vehicle or combination of vehicles that exceeds the vehicle width, height, or length
            86573     provisions under Section 72-7-402 .
            86574         (b) Except as provided under Subsection (8), an oversize and overweight permit may
            86575     not be issued under this section to allow the transportation of a load that is reasonably divisible.
            86576         (c) The maximum size or weight authorized by a permit under this section shall be
            86577     within limits that do not impair the state's ability to qualify for federal-aid highway funds.

            86578         (d) The department may deny or issue a permit under this section to protect the safety
            86579     of the traveling public and to protect highway foundation, surfaces, or structures from undue
            86580     damage by one or more of the following:
            86581         (i) limiting the number of trips the vehicle may make;
            86582         (ii) establishing seasonal or other time limits within which the vehicle may operate or
            86583     move on the highway indicated;
            86584         (iii) requiring security in addition to the permit to compensate for any potential damage
            86585     by the vehicle to any highway; and
            86586         (iv) otherwise limiting the conditions of operation or movement of the vehicle.
            86587         (e) Prior to granting a permit under this section, the department shall approve the route
            86588     of any vehicle or combination of vehicles.
            86589         (2) An application for a permit under this section shall state:
            86590         (a) the proposed maximum wheel loads, maximum axle loads, all axle spacings of each
            86591     vehicle or combination of vehicles;
            86592         (b) the proposed maximum load size and maximum size of each vehicle or combination
            86593     of vehicles;
            86594         (c) the specific roads requested to be used under authority of the permit; and
            86595         (d) if the permit is requested for a single trip or if other seasonal limits or time limits
            86596     apply.
            86597         (3) Each oversize permit or oversize and overweight permit shall be carried in the
            86598     vehicle or combination of vehicles to which it refers and shall be available for inspection by any
            86599     peace officer, special function officer, port of entry agent, or other personnel authorized by the
            86600     department.
            86601         (4) A permit under this section may not be issued or is not valid unless the vehicle or
            86602     combination of vehicles is:
            86603         (a) properly registered for the weight authorized by the permit; or
            86604         (b) registered for a gross laden weight of 78,001 pounds or over, if the gross laden
            86605     weight authorized by the permit exceeds 80,000 pounds.

            86606         (5) (a) (i) An oversize permit may be issued under this section for a vehicle or
            86607     combination of vehicles that exceeds one or more of the maximum width, height, or length
            86608     provisions under Section 72-7-402 .
            86609         (ii) Except for an annual oversize permit for an implement of husbandry under Section
            86610      72-7-407 or for an annual oversize permit issued under Subsection (5)(a)(iii), only a single trip
            86611     oversize permit may be issued for a vehicle or combination of vehicles that is more than 14 feet
            86612     6 inches wide, 14 feet high, or 105 feet long.
            86613         (iii) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86614     Administrative Rulemaking Act, the department shall make rules for the issuance of an annual
            86615     oversize permit for a vehicle or combination of vehicles that is more than 14 feet 6 inches wide,
            86616     14 feet high, or 105 feet long if the department determines that the permit is needed to
            86617     accommodate highway transportation needs for multiple trips on a specified route.
            86618         (b) The fee is $25 for a single trip oversize permit under this Subsection (5). This
            86619     permit is valid for not more than 96 continuous hours.
            86620         (c) The fee is $60 for a semiannual oversize permit under this Subsection (5). This
            86621     permit is valid for not more than 180 continuous days.
            86622         (d) The fee is $75 for an annual oversize permit under this Subsection (5). This permit
            86623     is valid for not more than 365 continuous days.
            86624         (6) (a) An oversize and overweight permit may be issued under this section for a vehicle
            86625     or combination of vehicles carrying a nondivisible load that exceeds one or more of the
            86626     maximum weight provisions of Section 72-7-404 by not more than 25%, except that the gross
            86627     weight may not exceed 125,000 pounds.
            86628         (b) The fee is $50 for a single trip oversize and overweight permit under this Subsection
            86629     (6). This permit is valid for not more than 96 continuous hours.
            86630         (c) A semiannual oversize and overweight permit under this Subsection (6) is valid for
            86631     not more than 180 continuous days. The fee for this permit is:
            86632         (i) $150 for a vehicle or combination of vehicles with gross vehicle weight of more than
            86633     80,000 pounds, but not exceeding 84,000 pounds;

            86634         (ii) $260 for a vehicle or combination of vehicles with gross vehicle weight of more
            86635     than 84,000 pounds, but not exceeding 112,000 pounds; and
            86636         (iii) $350 for a vehicle or combination of vehicles with gross vehicle weight of more
            86637     than 112,000 pounds, but not exceeding 125,000 pounds.
            86638         (d) An annual oversize and overweight permit under this Subsection (6) is valid for not
            86639     more than 365 continuous days. The fee for this permit is:
            86640         (i) $200 for a vehicle or combination of vehicles with gross vehicle weight of more than
            86641     80,000 pounds, but not exceeding 84,000 pounds;
            86642         (ii) $400 for a vehicle or combination of vehicles with gross vehicle weight of more
            86643     than 84,000 pounds, but not exceeding 112,000 pounds; and
            86644         (iii) $450 for a vehicle or combination of vehicles with gross vehicle weight of more
            86645     than 112,000 pounds, but not exceeding 125,000 pounds.
            86646         (7) (a) A single trip oversize and overweight permit may be issued under this section for
            86647     a vehicle or combination of vehicles carrying a nondivisible load that exceeds one or more of the
            86648     maximum weight provisions of Section 72-7-404 by more than 25% or that exceeds a gross
            86649     weight of 125,000 pounds.
            86650         (b) (i) The fee for a single trip oversize and overweight permit under this Subsection
            86651     (7), which is valid for not more than 96 continuous hours, is $.01 per mile for each 1,000
            86652     pounds above 80,000 pounds subject to the rounding described in Subsection (7)(c).
            86653         (ii) The minimum fee that may be charged under this Subsection (7) is $65.
            86654         (iii) The maximum fee that may be charged under this Subsection (7) is $450.
            86655         (c) (i) The miles used to calculate the fee under this Subsection (7) shall be rounded up
            86656     to the nearest 50 mile increment.
            86657         (ii) The pounds used to calculate the fee under this Subsection (7) shall be rounded up
            86658     to the nearest 25,000 pound increment.
            86659         (8) (a) An oversize and overweight permit may be issued under this section for a vehicle
            86660     or combination of vehicles carrying a divisible load if:
            86661         (i) the bridge formula under Subsection 72-7-404 (3) is not exceeded; and

            86662         (ii) the length of the vehicle or combination of vehicles is:
            86663         (A) more than the limitations specified under Subsections 72-7-402 (4)(c) and (d) but
            86664     not exceeding 81 feet in cargo carrying length and the application is for a single trip,
            86665     semiannual trip, or annual trip permit; or
            86666         (B) more than 81 feet in cargo carrying length but not exceeding 95 feet in cargo
            86667     carrying length and the application is for an annual trip permit.
            86668         (b) The fee is $50 for a single trip oversize and overweight permit under this Subsection
            86669     (8). The permit is valid for not more than 96 continuous hours.
            86670         (c) The fee for a semiannual oversize and overweight permit under this Subsection (8),
            86671     which permit is valid for not more than 180 continuous days is:
            86672         (i) $150 for a vehicle or combination of vehicles with gross vehicle weight of more than
            86673     80,000 pounds, but not exceeding 84,000 pounds;
            86674         (ii) $260 for a vehicle or combination of vehicles with gross vehicle weight of more
            86675     than 84,000 pounds, but not exceeding 112,000 pounds; and
            86676         (iii) $350 for a vehicle or combination of vehicles with gross vehicle weight of more
            86677     than 112,000 pounds, but not exceeding 129,000 pounds.
            86678         (d) The fee for an annual oversize and overweight permit under this Subsection (8),
            86679     which permit is valid for not more than 365 continuous days is:
            86680         (i) $200 for a vehicle or combination of vehicles with gross vehicle weight of more than
            86681     80,000 pounds, but not exceeding 84,000 pounds;
            86682         (ii) $400 for a vehicle or combination of vehicles with gross vehicle weight of more
            86683     than 84,000 pounds, but not exceeding 112,000 pounds; and
            86684         (iii) $450 for a vehicle or combination of vehicles with gross vehicle weight of more
            86685     than 112,000 pounds, but not exceeding 129,000 pounds.
            86686         (9) Permits under Subsections (7) and (8) may be issued only upon authorization of the
            86687     commission.
            86688         (10) Permit fees collected under this section shall be credited monthly to the
            86689     Transportation Fund.

            86690         (11) The department shall prepare maps, drawings, and instructions as guidance when
            86691     issuing permits under this section.
            86692         (12) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86693     Administrative Rulemaking Act, the department shall make rules governing the issuance and
            86694     revocation of all permits under this section and Section 72-7-407 .
            86695         (13) Any person who violates any of the terms or conditions of a permit issued under
            86696     this section:
            86697         (a) may have [his] the person's permit revoked; and
            86698         (b) is guilty of a class B misdemeanor.
            86699         Section 2122. Section 72-7-407 is amended to read:
            86700          72-7-407. Implements of husbandry -- Escort vehicle requirements -- Oversize
            86701      permit -- Rulemaking -- Penalty.
            86702         (1) As used in this section, "escort vehicle" means a motor vehicle, as defined under
            86703     Section 41-1a-102 , that has its emergency warning lights operating, and that is being used to
            86704     warn approaching motorists by either preceding or following a slow or oversized vehicle,
            86705     object, or implement of husbandry being moved on the highway.
            86706         (2) An implement of husbandry being moved on a highway shall be accompanied by:
            86707         (a) front and rear escort vehicles when the implement of husbandry is 16 feet in width
            86708     or greater unless the implement of husbandry is moved by a farmer or rancher or [his] the
            86709     farmer or rancher's employees in connection with an agricultural operation; or
            86710         (b) one or more escort vehicles when the implement of husbandry is traveling on a
            86711     highway where special hazards exist related to weather, pedestrians, other traffic, or highway
            86712     conditions.
            86713         (3) In addition to the requirements of Subsection (2), a person may not move an
            86714     implement of husbandry on a highway during hours of darkness without lights and reflectors as
            86715     required under Section 41-6a-1608 or 41-6a-1609 .
            86716         (4) (a) Except for an implement of husbandry moved by a farmer or rancher or the
            86717     farmer's or rancher's employees in connection with an agricultural operation, a person may not

            86718     move an implement of husbandry on the highway without:
            86719         (i) an oversize permit obtained under Section 72-7-406 if required;
            86720         (ii) trained escort vehicle drivers and approved escort vehicles when required under
            86721     Subsection (2); and
            86722         (iii) compliance with the vehicle weight requirements of Section 72-7-404 .
            86723         (b) (i) The department shall issue an annual oversize permit for the purpose of allowing
            86724     the movement of implements of husbandry on the highways in accordance with this chapter.
            86725         (ii) The permit shall require the applicant to obtain verbal permission from the
            86726     department for each trip involving the movement of an implement of husbandry 16 feet or
            86727     greater in width.
            86728         (c) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86729     Administrative Rulemaking Act, the department shall make rules specifying training for escort
            86730     vehicle drivers and equipment requirements for escort vehicles as provided in Subsection (4)(a).
            86731         (5) Any person who violates this section is guilty of a class B misdemeanor.
            86732         Section 2123. Section 72-7-504 is amended to read:
            86733          72-7-504. Advertising prohibited near interstate or primary system -- Exceptions
            86734      -- Logo advertising -- Department rules.
            86735         (1) Outdoor advertising that is capable of being read or comprehended from any place
            86736     on the main-traveled way of an interstate or primary system may not be erected or maintained,
            86737     except:
            86738         (a) directional and other official signs and notices authorized or required by law,
            86739     including signs and notices pertaining to natural wonders and scenic and historic attractions,
            86740     informational or directional signs regarding utility service, emergency telephone signs, buried or
            86741     underground utility markers, and above ground utility closure signs;
            86742         (b) signs advertising the sale or lease of property upon which they are located;
            86743         (c) signs advertising activities conducted on the property where they are located,
            86744     including signs on the premises of a public assembly facility as provided in Section 72-7-504.5 ;
            86745         (d) signs located in a commercial or industrial zone;

            86746         (e) signs located in unzoned industrial or commercial areas as determined from actual
            86747     land uses; and
            86748         (f) logo advertising under Subsection (2).
            86749         (2) (a) The department may itself or by contract erect, administer, and maintain
            86750     informational signs on the main-traveled way of an interstate or primary system for the display
            86751     of logo advertising and information of interest to the traveling public if:
            86752         (i) the department complies with [Title 63, Chapter 56] Title 63G, Chapter 6, Utah
            86753     Procurement Code, in the lease or other contract agreement with a private party for the sign or
            86754     sign space; and
            86755         (ii) the private party for the lease of the sign or sign space pays an amount set by the
            86756     department to be paid to the department or the party under contract with the department under
            86757     this Subsection (2).
            86758         (b) The amount shall be sufficient to cover the costs of erecting, administering, and
            86759     maintaining the signs or sign spaces.
            86760         (c) The department may consult the Governor's Office of Economic Development in
            86761     carrying out this Subsection (2).
            86762         (3) (a) Revenue generated under Subsection (2) shall be:
            86763         (i) applied first to cover department costs under Subsection (2); and
            86764         (ii) deposited in the Transportation Fund.
            86765         (b) Revenue in excess of costs under Subsection (2)(a) shall be deposited in the General
            86766     Fund as a dedicated credit for use by the Governor's Office of Economic Development no later
            86767     than the following fiscal year.
            86768         (4) Outdoor advertising under Subsections (1)(a), (d), (e), and (f) shall conform to the
            86769     rules made by the department under Sections 72-7-506 and 72-7-507 .
            86770         Section 2124. Section 72-7-506 is amended to read:
            86771          72-7-506. Advertising -- Regulatory power of department -- Notice requirements.
            86772         (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86773     Administrative Rulemaking Act, the department may make rules no more restrictive than this

            86774     chapter to:
            86775         (a) control the erection and maintenance of outdoor advertising along the interstate and
            86776     primary highway systems;
            86777         (b) provide for enforcement of this chapter;
            86778         (c) establish the form, content, and submittal of applications to erect outdoor
            86779     advertising; and
            86780         (d) establish administrative procedures.
            86781         (2) In addition to all other statutory notice requirements:
            86782         (a) the department shall give reasonably timely written notice to all outdoor advertising
            86783     permit holders of any changes or proposed changes in administrative rules made under authority
            86784     of this part; and
            86785         (b) any county, municipality, or governmental entity shall, upon written request, give
            86786     reasonably timely written notice to all outdoor advertising permit holders within its jurisdiction
            86787     of any change or proposed change to the outdoor or off-premise advertising provisions of its
            86788     zoning provisions, codes, or ordinances.
            86789         Section 2125. Section 72-7-507 is amended to read:
            86790          72-7-507. Advertising -- Permits -- Application requirements -- Duration -- Fees.
            86791         (1) (a) Outdoor advertising may not be maintained without a current permit.
            86792         (b) Applications for permits shall be made to the department on forms furnished by it.
            86793         (c) A permit must be obtained prior to installing each outdoor sign.
            86794         (d) The application for a permit shall be accompanied by an initial fee established under
            86795     Section [ 63-38-3.2 ] 63J-1-303 .
            86796         (2) (a) Each permit issued by the department is valid for a period of up to five years and
            86797     shall expire on June 30 of the fifth year of the permit, or upon the expiration or termination of
            86798     the right to use the property, whichever is sooner.
            86799         (b) Upon renewal, each permit may be renewed for periods of up to five years upon the
            86800     filing of a renewal application and payment of a renewal fee established under Section
            86801     [ 63-38-3.2 ] 63J-1-303 .

            86802         (3) Sign owners residing outside the state shall provide the department with a
            86803     continuous performance bond in the amount of $2,500.
            86804         (4) Fees may not be prorated for fractions of the permit period. Advertising copy may
            86805     be changed at any time without payment of an additional fee.
            86806         (5) (a) Each sign shall have its permit continuously affixed to the sign in a position
            86807     visible from the nearest traveled portion of the highway.
            86808         (b) The permit shall be affixed to the sign structure within 30 days after delivery by the
            86809     department to the permit holder, or within 30 days of the installation date of the sign structure.
            86810         (c) Construction of the sign structure shall begin within 180 days after delivery of the
            86811     permit by the department to the permit holder and construction shall be completed within 365
            86812     days after delivery of the permit.
            86813         (6) The department may not accept any applications for a permit or issue any permit to
            86814     erect or maintain outdoor advertising within 500 feet of a permitted sign location except to the
            86815     permit holder or the permit holder's assigns until the permit has expired or has been terminated
            86816     pursuant to the procedures under Section 72-7-508 .
            86817         (7) Permits are transferrable if the ownership of the permitted sign is transferred.
            86818         (8) Conforming, permitted sign structures may be altered, changed, remodeled, and
            86819     relocated subject to the provisions of Subsection (6).
            86820         Section 2126. Section 72-7-508 is amended to read:
            86821          72-7-508. Unlawful outdoor advertising -- Adjudicative proceedings -- Judicial
            86822      review -- Costs of removal -- Civil and criminal liability for damaging regulated signs --
            86823      Immunity for Department of Transportation.
            86824         (1) Outdoor advertising is unlawful when:
            86825         (a) erected after May 9, 1967, contrary to the provisions of this chapter;
            86826         (b) a permit is not obtained as required by this part;
            86827         (c) a false or misleading statement has been made in the application for a permit that
            86828     was material to obtaining the permit; or
            86829         (d) the sign for which a permit was issued is not in a reasonable state of repair, is

            86830     unsafe, or is otherwise in violation of this part.
            86831         (2) The establishment, operation, repair, maintenance, or alteration of any sign contrary
            86832     to this chapter is also a public nuisance.
            86833         (3) Except as provided in Subsection (4), in its enforcement of this section, the
            86834     department shall comply with the procedures and requirements of [Title 63, Chapter 46b] Title
            86835     63G, Chapter 4, Administrative Procedures Act.
            86836         (4) (a) The district courts shall have jurisdiction to review by trial de novo all final
            86837     orders of the department under this part resulting from formal and informal adjudicative
            86838     proceedings.
            86839         (b) Venue for judicial review of final orders of the department shall be in the county in
            86840     which the sign is located.
            86841         (5) If the department is granted a judgment, the department is entitled to have any
            86842     nuisance abated and recover from the responsible person, firm, or corporation, jointly and
            86843     severally:
            86844         (a) the costs and expenses incurred in removing the sign; and
            86845         (b) $100 for each day the sign was maintained following the expiration of ten days after
            86846     notice of agency action was filed and served under Section [ 63-46b-3 ] 63G-4-201 .
            86847         (6) (a) Any person, partnership, firm, or corporation who vandalizes, damages, defaces,
            86848     destroys, or uses any sign controlled under this chapter without the owner's permission is liable
            86849     to the owner of the sign for treble the amount of damage sustained and all costs of court,
            86850     including a reasonable attorney's fee, and is guilty of a class C misdemeanor.
            86851         (b) This Subsection (6) does not apply to the department, its agents, or employees if
            86852     acting to enforce this part.
            86853         Section 2127. Section 72-9-103 is amended to read:
            86854          72-9-103. Rulemaking -- Adjudicative proceedings.
            86855         (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86856     Administrative Rulemaking Act, the department shall make rules:
            86857         (a) adopting by reference in whole or in part the Federal Motor Carrier Safety

            86858     Regulations including minimum security requirements for motor carriers;
            86859         (b) specifying the equipment required to be carried in each tow truck, including limits
            86860     on loads that may be moved based on equipment capacity and load weight;
            86861         (c) specifying collection procedures, in conjunction with the administration and
            86862     enforcement of the safety or security requirements, for the motor carrier fee under Section
            86863      72-9-706 ; and
            86864         (d) providing for the necessary administration and enforcement of this chapter.
            86865         (2) The department shall comply with [Title 63, Chapter 46b] Title 63G, Chapter 4,
            86866     Administrative Procedures Act, in its adjudicative proceedings.
            86867         Section 2128. Section 72-9-502 is amended to read:
            86868          72-9-502. Motor vehicles to stop at ports-of-entry -- Signs -- Exceptions --
            86869      Rulemaking -- By-pass permits.
            86870         (1) Except under Subsection (3), a motor carrier operating a motor vehicle with a gross
            86871     vehicle weight of 10,001 pounds or more or any motor vehicle carrying livestock as defined in
            86872     Section 4-24-2 shall stop at a port-of-entry as required under this section.
            86873         (2) The department may erect and maintain signs directing motor vehicles to a
            86874     port-of-entry as provided in this section.
            86875         (3) A motor vehicle required to stop at a port-of-entry under Subsection (1) is exempt
            86876     from this section if:
            86877         (a) the total one-way trip distance for the motor vehicle would be increased by more
            86878     than 5% or three miles, whichever is greater if diverted to a port-of-entry; or
            86879         (b) the motor vehicle is operating under a temporary port-of-entry by-pass permit
            86880     issued under Subsection (4).
            86881         (4) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86882     Administrative Rulemaking Act, the department shall make rules for the issuance of a temporary
            86883     port-of-entry by-pass permit exempting a motor vehicle from the provisions of Subsection (1) if
            86884     the department determines that the permit is needed to accommodate highway transportation
            86885     needs due to multiple daily or weekly trips in the proximity of a port-of-entry.

            86886         (b) The rules under Subsection (4)(a) shall provide that one permit may be issued to a
            86887     motor carrier for multiple motor vehicles.
            86888         Section 2129. Section 72-9-602 is amended to read:
            86889          72-9-602. Towing inspections, investigations, and certification -- Equipment
            86890      requirements -- Consumer information.
            86891         (1) (a) The department shall inspect, investigate, and certify tow truck motor carriers,
            86892     tow trucks, and tow truck drivers to ensure compliance with this chapter and compliance with
            86893     Sections 41-6a-1406 and 41-6a-1407 .
            86894         (b) The inspection, investigation, and certification shall be conducted prior to any tow
            86895     truck operation and at least every two years thereafter.
            86896         (c) (i) The department shall issue an authorized towing certificate for each tow truck
            86897     motor carrier, tow truck, and driver that complies with this part.
            86898         (ii) The certificate shall expire two years from the month of issuance.
            86899         (d) The department may charge a biennial fee established under Section [ 63-38-3.2 ]
            86900      63J-1-303 to cover the cost of the inspection, investigation, and certification required under this
            86901     part.
            86902         (2) The department shall make consumer protection information available to the public
            86903     that may use a tow truck motor carrier.
            86904         Section 2130. Section 72-9-603 is amended to read:
            86905          72-9-603. Towing notice requirements -- Cost responsibilities -- Abandoned
            86906      vehicle title restrictions -- Rules for maximum rates and certification.
            86907         (1) Except for tow truck service that was ordered by a peace officer, or a person acting
            86908     on behalf of a law enforcement agency, or a highway authority, as defined in Section 72-1-102 ,
            86909     after performing a tow truck service that is being done without the vehicle, vessel, or outboard
            86910     motor owner's knowledge, the tow truck operator or the tow truck motor carrier shall:
            86911         (a) immediately upon arriving at the place of storage or impound of the vehicle, vessel,
            86912     or outboard motor, contact the law enforcement agency having jurisdiction over the area where
            86913     the vehicle, vessel, or outboard motor was picked up and notify the agency of the:

            86914         (i) location of the vehicle, vessel, or outboard motor;
            86915         (ii) date, time, and location from which the vehicle, vessel, or outboard motor was
            86916     removed;
            86917         (iii) reasons for the removal of the vehicle, vessel, or outboard motor;
            86918         (iv) person who requested the removal of the vehicle, vessel, or outboard motor; and
            86919         (v) vehicle, vessel, or outboard motor's description, including its identification number
            86920     and license number or other identification number issued by a state agency; and
            86921         (b) within two business days of performing the tow truck service, send a certified letter
            86922     to the last-known address of the registered owner and lien holder of the vehicle, vessel, or
            86923     outboard motor obtained from the Motor Vehicle Division or if the person has actual
            86924     knowledge of the owner's address to the current address, notifying him of the:
            86925         (i) location of the vehicle, vessel, or outboard motor;
            86926         (ii) date, time, location from which the vehicle, vessel, or outboard motor was removed;
            86927         (iii) reasons for the removal of the vehicle, vessel, or outboard motor;
            86928         (iv) person who requested the removal of the vehicle, vessel, or outboard motor;
            86929         (v) a description, including its identification number and license number or other
            86930     identification number issued by a state agency; and
            86931         (vi) costs and procedures to retrieve the vehicle, vessel, or outboard motor.
            86932         (2) Until the tow truck operator or tow truck motor carrier reports the removal as
            86933     required under Subsection (1)(a), a tow truck motor carrier or impound yard may not:
            86934         (a) collect any fee associated with the removal; and
            86935         (b) begin charging storage fees.
            86936         (3) The owner of a vehicle, vessel, or outboard motor lawfully removed is only
            86937     responsible for paying:
            86938         (a) the tow truck service and storage fees set in accordance with Subsection (7); and
            86939         (b) the administrative impound fee set in Section 41-6a-1406 , if applicable.
            86940         (4) The fees under Subsection (3) are a possessory lien on the vehicle, vessel, or
            86941     outboard motor until paid.

            86942         (5) A person may not request a transfer of title to an abandoned vehicle until at least 30
            86943     days after notice has been sent under Subsection (1)(b).
            86944         (6) A tow truck motor carrier or impound yard shall clearly and conspicuously post and
            86945     disclose all its current fees and rates for tow truck service and storage of a vehicle in accordance
            86946     with rules established under Subsection (7).
            86947         (7) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86948     Administrative Rulemaking Act, the Department of Transportation shall:
            86949         (a) set maximum rates that:
            86950         (i) tow truck motor carriers may charge for the tow truck service of a vehicle, vessel, or
            86951     outboard motor that are transported in response to:
            86952         (A) a peace officer dispatch call;
            86953         (B) a motor vehicle division call; and
            86954         (C) any other call where the owner of the vehicle, vessel, or outboard motor has not
            86955     consented to the removal; and
            86956         (ii) impound yards may charge for the storage of a vehicle, vessel, or outboard motor
            86957     stored as a result of one of the conditions listed under Subsection (7)(a)(i);
            86958         (b) establish authorized towing certification requirements, not in conflict with federal
            86959     law, related to incident safety, clean-up, and hazardous material handling; and
            86960         (c) specify the form and content of the posting and disclosure of fees and rates charged
            86961     by a tow truck motor carrier or impound yard.
            86962         Section 2131. Section 72-10-103 is amended to read:
            86963          72-10-103. Rulemaking requirement.
            86964         (1) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            86965     Administrative Rulemaking Act, the department shall make rules:
            86966         (a) governing the establishment, location, and use of air navigation facilities;
            86967         (b) regulating the use, licensing, and supervision of airports;
            86968         (c) establishing minimum standards with which all air navigation facilities, flying clubs,
            86969     aircraft, gliders, pilots, and airports must comply; and

            86970         (d) safeguarding from accident and protecting the safety of persons operating or using
            86971     aircraft and persons and property on the ground.
            86972         (2) The rules may:
            86973         (a) require that any device or accessory that forms part of any aircraft or its equipment
            86974     be certified as complying with this chapter;
            86975         (b) limit the use of any device or accessory as necessary for safety; and
            86976         (c) develop and promote aeronautics within this state.
            86977         (3) (a) To avoid the danger of accident incident to confusion arising from conflicting
            86978     rules governing aeronautics, the rules shall conform as nearly as possible with federal legislation,
            86979     rules, regulations, and orders on aeronautics.
            86980         (b) The rules may not be inconsistent with paramount federal legislation, rules,
            86981     regulations, and orders on the subject.
            86982         (4) The department may not require any pilot, aircraft, or mechanic who has procured a
            86983     license under the Civil Aeronautics Authority of the United States to obtain a license from this
            86984     state, other than required by this chapter.
            86985         (5) The department may not make rules that conflict with the regulations of:
            86986         (a) the Civil Aeronautics Authority; or
            86987         (b) other federal agencies authorized to regulate the particular activity.
            86988         (6) All schedules of charges, tolls, and fees established by the division shall be approved
            86989     and adopted by the department.
            86990         (7) The department shall comply with the procedures and requirements of [Title 63,
            86991     Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
            86992     proceedings.
            86993         Section 2132. Section 72-10-107 is amended to read:
            86994          72-10-107. Procedures -- Adjudicative proceedings.
            86995         The division shall conduct adjudicative proceedings in accordance with [Title 63,
            86996     Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
            86997         Section 2133. Section 72-10-116 is amended to read:

            86998          72-10-116. Airport license required -- Issuance by division -- Restrictions on use
            86999      of lands or waters of another -- Annual fee.
            87000         (1) (a) An airport open to public use may not be used or operated unless it is duly
            87001     licensed by the division.
            87002         (b) Any person who owns or operates an airport open to public use shall file an
            87003     application with the division for a license for the facility.
            87004         (2) (a) A license shall be granted whenever it is reasonably necessary for the
            87005     accommodation and convenience of the public and may be granted in other cases in the
            87006     discretion of the division.
            87007         (b) The division may not issue a license if the division finds that the facility is not
            87008     constructed, equipped, and operated in accordance with the standards set by the department.
            87009         (3) (a) The landing or taking off of aircraft on or from the lands or waters of another
            87010     without consent is unlawful, except in the case of a forced landing.
            87011         (b) For damages caused by a takeoff or landing, the owner, lessee of the aircraft,
            87012     operator, or any of them is liable.
            87013         (4) (a) A student pilot may not land on any area without the knowledge of the operator,
            87014     instructor, or school from which the student is flying.
            87015         (b) The use of private landing fields must not impose a hazard upon the person or
            87016     property of others.
            87017         (5) A certificate of registration is not required of, and the rules made under this title do
            87018     not apply to an airport owned or operated by the government of the United States.
            87019         (6) The division, with the approval of the commission, may charge a fee determined by
            87020     the division pursuant to Section [ 63-38-3.2 ] 63J-1-303 for the issuance of an annual airport
            87021     license.
            87022         Section 2134. Section 72-10-117 is amended to read:
            87023          72-10-117. Aircraft landing permits -- Eligible aircraft -- Special licenses -- Rules
            87024      -- Proof of insurance -- Bonds.
            87025         (1) (a) The county executive of any county may issue permits authorizing aircraft to

            87026     land on or take off from designated county roads.
            87027         (b) Permits may be issued to aircraft operated:
            87028         (i) as air ambulances;
            87029         (ii) as pesticide applicators; or
            87030         (iii) by or under contract with public utilities and used in connection with inspection,
            87031     maintenance, installation, operation, construction, or repair of property owned or operated by
            87032     the public utility.
            87033         (2) Permits may also be issued by the county executive to other aircraft under rules
            87034     made by the division.
            87035         (3) (a) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            87036     Administrative Rulemaking Act, the division shall make rules for issuing a special license to:
            87037         (i) an aircraft permitted by a county executive to land on a county road; and
            87038         (ii) a pilot permitted to operate an aircraft licensed under this subsection from a county
            87039     road.
            87040         (b) The rules made under this subsection shall include provisions for the safety of the
            87041     flying and motoring public.
            87042         (4) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            87043     Administrative Rulemaking Act, the department shall make rules for the landing and taking off
            87044     of aircraft to which permits have been issued, which may include annual reports of activities of
            87045     the aircraft.
            87046         (5) Prior to obtaining a permit or license to any aircraft, the applicant shall file with the
            87047     county executive and the division a certificate of insurance executed by an insurance company
            87048     or association authorized to transact business in this state upon a form prescribed by the division
            87049     that there is in full force and effect a policy of insurance covering the aircraft for liability
            87050     against:
            87051         (a) personal injury or death for any one person in an amount of $50,000 or more;
            87052         (b) any one accident in an amount of $100,000 or more; and
            87053         (c) property damage in an amount of $50,000 or more.

            87054         (6) In addition to the insurance required under this section, either the county executive
            87055     or the division may require the posting of a bond to indemnify the county or division against
            87056     liability resulting from issuing the permit or license.
            87057         Section 2135. Section 72-11-203 is amended to read:
            87058          72-11-203. Procedures -- Adjudicative proceedings.
            87059         The committee shall comply with the procedures and requirements of [Title 63, Chapter
            87060     46b] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative proceedings.
            87061         Section 2136. Section 72-11-208 is amended to read:
            87062          72-11-208. Passenger ropeways -- Registration fee.
            87063         The application for registration, or supplemental application, shall be accompanied by an
            87064     annual fee adopted by the committee in accordance with Section [ 63-38-3.2 ] 63J-1-303 .
            87065         Section 2137. Section 72-11-210 is amended to read:
            87066          72-11-210. Passenger ropeways -- Additional powers and duties of committee.
            87067         The committee may:
            87068         (1) in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            87069     Administrative Rulemaking Act, make rules establishing:
            87070         (a) public safety in the design, construction, and operation of passenger ropeways that:
            87071         (i) adopt the American National Standard for Passenger Ropeways;
            87072         (ii) modify the standard under Subsection (1)(a)(i); or
            87073         (iii) establish an equivalent standard; and
            87074         (b) the annual registration date;
            87075         (2) hold hearings and take evidence in all matters relating to the exercise and
            87076     performance of the powers and duties vested in the committee;
            87077         (3) subpoena witnesses;
            87078         (4) administer oaths;
            87079         (5) compel the testimony of witnesses and the production of books, papers, and records
            87080     relevant to any inquiry;
            87081         (6) approve, deny, revoke, and renew the registrations provided for in this chapter;

            87082         (7) cause the prosecution and enjoinder of all persons violating the provisions of this
            87083     chapter and incur the necessary expenses;
            87084         (8) elect officers and adopt a seal which may be affixed to all registrations issued by the
            87085     committee; and
            87086         (9) employ, within the funds available, and prescribe the duties of a secretary and other
            87087     personnel as the committee considers necessary.
            87088         Section 2138. Section 73-1-4 is amended to read:
            87089          73-1-4. Reversion to the public by abandonment or forfeiture for nonuse within
            87090      five years -- Extension of time.
            87091         (1) (a) In order to further the state policy of securing the maximum use and benefit of
            87092     its scarce water resources, a person entitled to the use of water has a continuing obligation to
            87093     place all of a water right to beneficial use.
            87094         (b) The forfeiture of all or part of any right to use water for failure to place all or part of
            87095     the water to beneficial use makes possible the allocation and use of water consistent with long
            87096     established beneficial use concepts.
            87097         (c) The provisions of Subsections (2) through (6) shall be construed to carry out the
            87098     purposes and policies set forth in this Subsection (1).
            87099         (2) As used in this section, "public water supply entity" means an entity that supplies
            87100     water as a utility service or for irrigation purposes and is also:
            87101         (a) a municipality, water conservancy district, metropolitan water district, irrigation
            87102     district, or other public agency;
            87103         (b) a water company regulated by the Public Service Commission; or
            87104         (c) any other owner of a community water system.
            87105         (3) (a) When an appropriator or the appropriator's successor in interest abandons or
            87106     ceases to use all or a portion of a water right for a period of five years, the water right or the
            87107     unused portion of that water right ceases and the water reverts to the public, unless, before the
            87108     expiration of the five-year period, the appropriator or the appropriator's successor in interest
            87109     files a verified nonuse application with the state engineer.

            87110         (b) (i) A nonuse application may be filed on all or a portion of the water right, including
            87111     water rights held by mutual irrigation companies.
            87112         (ii) Public water supply entities that own stock in a mutual water company, after giving
            87113     written notice to the water company, may file nonuse applications with the state engineer on the
            87114     water represented by the stock.
            87115         (c) (i) A water right or a portion of the water right may not be forfeited unless a judicial
            87116     action to declare the right forfeited is commenced within 15 years from the end of the latest
            87117     period of nonuse of at least five years.
            87118         (ii) If forfeiture is asserted in an action for general determination of rights in
            87119     conformance with the provisions of Chapter 4, Determination of Water Rights, the 15-year
            87120     limitation period shall commence to run back in time from the date the state engineer's
            87121     proposed determination of rights is served upon each claimant.
            87122         (iii) A decree entered in an action for general determination of rights under Chapter 4,
            87123     Determination of Water Rights, shall bar any claim of forfeiture for prior nonuse against any
            87124     right determined to be valid in the decree, but shall not bar a claim for periods of nonuse that
            87125     occur after the entry of the decree.
            87126         (iv) A proposed determination by the state engineer in an action for general
            87127     determination of rights under Chapter 4, Determination of Water Rights, shall bar any claim of
            87128     forfeiture for prior nonuse against any right proposed to be valid, unless a timely objection has
            87129     been filed within the time allowed in Chapter 4, Determination of Water Rights.
            87130         (d) The extension of time to resume the use of that water may not exceed five years
            87131     unless the time is further extended by the state engineer.
            87132         (e) The provisions of this section are applicable whether the unused or abandoned water
            87133     or a portion of the water is permitted to run to waste or is used by others without right with the
            87134     knowledge of the water right holder, provided that the use of water pursuant to a lease or other
            87135     agreement with the appropriator or the appropriator's successor shall be considered to
            87136     constitute beneficial use.
            87137         (f) The provisions of this section shall not apply:

            87138         (i) to those periods of time when a surface water source fails to yield sufficient water to
            87139     satisfy the water right, or when groundwater is not available because of a sustained drought;
            87140         (ii) to water stored in reservoirs pursuant to an existing water right, where the stored
            87141     water is being held in storage for present or future use; or
            87142         (iii) when a water user has beneficially used substantially all of a water right within a
            87143     five-year period, provided that this exemption shall not apply to the adjudication of a water right
            87144     in a general determination of water rights under Chapter 4, Determination of Water Rights.
            87145         (g) Groundwater rights used to supplement the quantity or quality of other water
            87146     supplies may not be subject to loss or reduction under this section if not used during periods
            87147     when the other water source delivers sufficient water so as to not require use of the
            87148     supplemental groundwater.
            87149         (4) (a) The state engineer shall furnish an application requiring the following
            87150     information:
            87151         (i) the name and address of the applicant;
            87152         (ii) a description of the water right or a portion of the water right, including the point of
            87153     diversion, place of use, and priority;
            87154         (iii) the date the water was last diverted and placed to beneficial use;
            87155         (iv) the quantity of water;
            87156         (v) the period of use;
            87157         (vi) the extension of time applied for;
            87158         (vii) a statement of the reason for the nonuse of the water; and
            87159         (viii) any other information that the state engineer requires.
            87160         (b) Filing the application extends the time during which nonuse may continue until the
            87161     state engineer issues [his] the state engineer's order on the nonuse application.
            87162         (c) (i) Upon receipt of the application, the state engineer shall publish a notice of the
            87163     application once a week for two successive weeks in a newspaper of general circulation in the
            87164     county in which the source of the water supply is located and where the water is to be used.
            87165         (ii) The notice shall:

            87166         (A) state that an application has been made; and
            87167         (B) specify where the interested party may obtain additional information relating to the
            87168     application.
            87169         (d) Any interested person may file a written protest with the state engineer against the
            87170     granting of the application:
            87171         (i) within 20 days after the notice is published, if the adjudicative proceeding is
            87172     informal; and
            87173         (ii) within 30 days after the notice is published, if the adjudicative proceeding is formal.
            87174         (e) In any proceedings to determine whether the application for extension should be
            87175     approved or rejected, the state engineer shall follow the procedures and requirements of [Title
            87176     63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
            87177         (f) After further investigation, the state engineer may approve or reject the application.
            87178         (5) (a) Nonuse applications on all or a portion of a water right shall be granted by the
            87179     state engineer for periods not exceeding five years each, upon a showing of reasonable cause for
            87180     nonuse.
            87181         (b) Reasonable causes for nonuse include:
            87182         (i) demonstrable financial hardship or economic depression;
            87183         (ii) the initiation of recognized water conservation or efficiency practices, or the
            87184     operation of a groundwater recharge recovery program approved by the state engineer;
            87185         (iii) operation of legal proceedings;
            87186         (iv) the holding of a water right or stock in a mutual water company without use by any
            87187     public water supply entity to meet the reasonable future requirements of the public;
            87188         (v) situations where, in the opinion of the state engineer, the nonuse would assist in
            87189     implementing an existing, approved water management plan;
            87190         (vi) situations where all or part of the land on which water is used is contracted under
            87191     an approved state agreement or federal conservation fallowing program;
            87192         (vii) the loss of capacity caused by deterioration of the water supply or delivery
            87193     equipment if the applicant submits, with the application, a specific plan to resume full use of the

            87194     water right by replacing, restoring, or improving the equipment; or
            87195         (viii) any other reasonable cause.
            87196         (6) (a) Sixty days before the expiration of any extension of time, the state engineer shall
            87197     notify the applicant by mail or by any form of electronic communication through which receipt
            87198     is verifiable, of the date when the extension period will expire.
            87199         (b) Before the date of expiration, the applicant shall either:
            87200         (i) file a verified statement with the state engineer setting forth the date on which use of
            87201     the water was resumed, and whatever additional information is required by the state engineer; or
            87202         (ii) apply for a further extension of time in which to resume use of the water according
            87203     to the procedures and requirements of this section.
            87204         (c) Upon receipt of the applicant's properly completed, verified statement, the state
            87205     engineer shall conduct investigations necessary to verify that beneficial use has resumed and, if
            87206     so, shall issue a certificate of resumption of use of the water as evidenced by the resumed
            87207     beneficial use.
            87208         (7) The appropriator's water right or a portion of the water right ceases and the water
            87209     reverts to the public if the:
            87210         (a) appropriator or the appropriator's successor in interest fails to apply for an
            87211     extension of time;
            87212         (b) state engineer denies the nonuse application; or
            87213         (c) appropriator or the appropriator's successor in interest fails to apply for a further
            87214     extension of time.
            87215         Section 2139. Section 73-2-1 is amended to read:
            87216          73-2-1. State engineer -- Term -- Powers and duties -- Qualification for duties.
            87217         (1) There shall be a state engineer.
            87218         (2) The state engineer shall:
            87219         (a) be appointed by the governor with the consent of the Senate;
            87220         (b) hold office for the term of four years and until a successor is appointed; and
            87221         (c) have five years experience as a practical engineer or the theoretical knowledge,

            87222     practical experience, and skill necessary for the position.
            87223         (3) (a) The state engineer shall be responsible for the general administrative supervision
            87224     of the waters of the state and the measurement, appropriation, apportionment, and distribution
            87225     of those waters.
            87226         (b) The state engineer may secure the equitable apportionment and distribution of the
            87227     water according to the respective rights of appropriators.
            87228         (4) The state engineer shall make rules, in accordance with [Title 63, Chapter 46a] Title
            87229     63G, Chapter 3, Utah Administrative Rulemaking Act, consistent with the purposes and
            87230     provisions of this title, regarding:
            87231         (a) reports of water right conveyances;
            87232         (b) the construction of water wells and the licensing of water well drillers;
            87233         (c) dam construction and safety;
            87234         (d) the alteration of natural streams;
            87235         (e) sewage effluent reuse;
            87236         (f) geothermal resource conservation; and
            87237         (g) enforcement orders and the imposition of fines and penalties.
            87238         (5) The state engineer may make rules, in accordance with [Title 63, Chapter 46a] Title
            87239     63G, Chapter 3, Utah Administrative Rulemaking Act, consistent with the purposes and
            87240     provisions of this title, governing:
            87241         (a) water distribution systems and water commissioners;
            87242         (b) water measurement and reporting;
            87243         (c) ground-water recharge and recovery;
            87244         (d) the determination of water rights; and
            87245         (e) the form and content of applications and related documents, maps, and reports.
            87246         (6) The state engineer may bring suit in courts of competent jurisdiction to:
            87247         (a) enjoin the unlawful appropriation, diversion, and use of surface and underground
            87248     water without first seeking redress through the administrative process;
            87249         (b) prevent theft, waste, loss, or pollution of those waters;

            87250         (c) enable him to carry out the duties of [his] the state engineer's office; and
            87251         (d) enforce administrative orders and collect fines and penalties.
            87252         (7) The state engineer may:
            87253         (a) upon request from the board of trustees of an irrigation district under Title 17B,
            87254     Chapter 2a, Part 5, Irrigation District Act, or another local district under Title 17B, Limited
            87255     Purpose Local Government Entities - Local Districts, or a special service district under Title
            87256     17A, Chapter 2, Part 13, Utah Special Service District Act, that operates an irrigation water
            87257     system, cause a water survey to be made of all lands proposed to be annexed to the district in
            87258     order to determine and allot the maximum amount of water that could be beneficially used on
            87259     the land, with a separate survey and allotment being made for each 40-acre or smaller tract in
            87260     separate ownership; and
            87261         (b) upon completion of the survey and allotment under Subsection (7)(a), file with the
            87262     district board a return of the survey and report of the allotment.
            87263         (8) (a) The state engineer may establish water distribution systems and define their
            87264     boundaries.
            87265         (b) The water distribution systems shall be formed in a manner that:
            87266         (i) secures the best protection to the water claimants; and
            87267         (ii) is the most economical for the state to supervise.
            87268         Section 2140. Section 73-2-1.5 is amended to read:
            87269          73-2-1.5. Procedures -- Adjudicative proceedings.
            87270         Except as provided in Sections [ 63-46b-1 ] 63G-4-102 and 73-2-25 , the state engineer
            87271     and the Division of Water Rights shall comply with the procedures and requirements of [Title
            87272     63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in their adjudicative
            87273     proceedings.
            87274         Section 2141. Section 73-2-14 is amended to read:
            87275          73-2-14. Fees of state engineer -- Deposited as a dedicated credit.
            87276         (1) The state engineer shall charge fees pursuant to Section [ 63-38-3.2 ] 63J-1-303 for
            87277     the following:

            87278         (a) applications to appropriate water;
            87279         (b) applications to temporarily appropriate water;
            87280         (c) applications for permanent or temporary change;
            87281         (d) applications for exchange;
            87282         (e) applications for an extension of time in which to resume use of water;
            87283         (f) applications to appropriate water, or make a permanent or temporary change, for
            87284     use outside the state filed pursuant to Title 73, Chapter 3a, Water Exports;
            87285         (g) groundwater recovery permits;
            87286         (h) diligence claims for surface or underground water filed pursuant to Section 73-5-13 ;
            87287         (i) republication of notice to water users after amendment of application where required
            87288     by this title;
            87289         (j) applications to segregate;
            87290         (k) requests for an extension of time in which to submit proof of appropriation not to
            87291     exceed 14 years after the date of approval of the application;
            87292         (l) requests for an extension of time in which to submit proof of appropriation 14 years
            87293     or more after the date of approval of the application;
            87294         (m) groundwater recharge permits;
            87295         (n) applications for a well driller's license, annual renewal of a well driller's license, and
            87296     late annual renewal of a well driller's license;
            87297         (o) certification of copies;
            87298         (p) preparing copies of documents; and
            87299         (q) reports of water right conveyance.
            87300         (2) Fees for the services specified in Subsections (1)(a) through (i) shall be based upon
            87301     the rate of flow or volume of water. If it is proposed to appropriate by both direct flow and
            87302     storage, the fee shall be based upon either the rate of flow or annual volume of water stored,
            87303     whichever fee is greater.
            87304         (3) Fees collected under this section:
            87305         (a) shall be deposited in the General Fund as a dedicated credit to be used by the

            87306     Division of Water Rights; and
            87307         (b) may only be used by the Division of Water Rights to:
            87308         (i) meet the publication of notice requirements under this title; and
            87309         (ii) process reports of water right conveyance.
            87310         Section 2142. Section 73-2-25 is amended to read:
            87311          73-2-25. State engineer enforcement powers.
            87312         (1) For purposes of this section, "initial order" means one of the following issued by the
            87313     state engineer:
            87314         (a) a notice of violation; or
            87315         (b) a cease and desist order.
            87316         (2) (a) The state engineer may commence an enforcement action under this section if
            87317     the state engineer finds that a person:
            87318         (i) is diverting, impounding, or using water for which no water right has been
            87319     established;
            87320         (ii) is diverting, impounding, or using water in violation of an existing water right;
            87321         (iii) violates Section 73-5-4 ;
            87322         (iv) violates Section 73-5-9 ;
            87323         (v) violates a written distribution order from the state engineer;
            87324         (vi) violates an order issued under Section 73-3-29 regarding the alteration of the bed
            87325     or bank of a natural stream channel; or
            87326         (vii) violates a notice or order regarding dam safety issued under Chapter 5a, Dam
            87327     Safety.
            87328         (b) To commence an enforcement action under this section, the state engineer shall
            87329     issue an initial order, which shall include:
            87330         (i) a description of the violation;
            87331         (ii) notice of any penalties to which a person may be subject under Section 73-2-26 ; and
            87332         (iii) notice that the state engineer may treat each day's violation of the provisions listed
            87333     in Subsection (2)(a) as a separate violation under Subsection 73-2-26 (1)(d).

            87334         (c) The state engineer's issuance and enforcement of an initial order is exempt from
            87335     [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act.
            87336         (3) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            87337     Administrative Rulemaking Act, the state engineer shall make rules necessary to enforce an
            87338     initial order, which shall include:
            87339         (a) provisions consistent with this section and Section 73-2-26 for enforcement of the
            87340     initial order if a person to whom an initial order is issued fails to respond to the order or abate
            87341     the violation;
            87342         (b) the right to a hearing, upon request by a person against whom an initial order is
            87343     issued; and
            87344         (c) provisions for timely issuance of a final order after:
            87345         (i) the person to whom the initial order is issued fails to respond to the order or abate
            87346     the violation; or
            87347         (ii) a hearing held under Subsection (3)(b).
            87348         (4) A person may not intervene in an enforcement action commenced under this section.
            87349         (5) After issuance of a final order under rules made pursuant to Subsection (3)(c), the
            87350     state engineer shall serve a copy of the final order on the person against whom the order is
            87351     issued by:
            87352         (a) personal service under Utah Rules of Civil Procedure 5; or
            87353         (b) certified mail.
            87354         (6) (a) The state engineer's final order may be reviewed by trial de novo by the district
            87355     court in:
            87356         (i) Salt Lake County; or
            87357         (ii) the county where the violation occurred.
            87358         (b) A person shall file a petition for judicial review of the state engineer's final order
            87359     issued under this section within 20 days from the day on which the final order was served on
            87360     that person.
            87361         (7) The state engineer may bring suit in a court of competent jurisdiction to enforce a

            87362     final order issued under this section.
            87363         (8) If the state engineer prevails in an action brought under Subsection (6)(b) or (7), the
            87364     state may recover all court costs and a reasonable attorney fee.
            87365         Section 2143. Section 73-3-14 is amended to read:
            87366          73-3-14. Judicial review -- State engineer as defendant.
            87367         (1) (a) Any person aggrieved by an order of the state engineer may obtain judicial
            87368     review by following the procedures and requirements of [Title 63, Chapter 46b] Title 63G,
            87369     Chapter 4, Administrative Procedures Act.
            87370         (b) Venue for judicial review of informal adjudicative proceedings shall be in the county
            87371     in which the stream or water source, or some part of it, is located.
            87372         (2) The state engineer shall be joined as a defendant in all suits to review [his] the state
            87373     engineer's decisions, but no judgment for costs or expenses of the litigation may be rendered
            87374     against [him] the state engineer.
            87375         Section 2144. Section 73-3-25 is amended to read:
            87376          73-3-25. Well driller's license -- Bond -- Revocation or suspension for
            87377      noncompliance.
            87378         (1) (a) Every person that constructs a well in the state shall obtain a license from the
            87379     state engineer.
            87380         (b) The state engineer shall enact rules defining the form, the expiration date, and the
            87381     renewal cycle of the application for a license.
            87382         (c) Well drillers' licenses are not transferable. The state engineer shall enact rules for
            87383     well construction according to the procedures and requirements of [Title 63, Chapter 46a] Title
            87384     63G, Chapter 3, Utah Administrative Rulemaking Act.
            87385         (2) (a) (i) A person who constructs a well in this state must first obtain a license as
            87386     provided in this section.
            87387         (ii) Before a well driller's license will be issued, the applicant must file a well driller
            87388     bond with the state engineer.
            87389         (iii) The bond shall be made payable to the Office of the State Engineer.

            87390         (iv) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            87391     Administrative Rulemaking Act, the state engineer may make rules to set the amount, form, and
            87392     general administrative requirements of a well driller bond. Proper compliance with the
            87393     provisions of this section and the rules enacted under the authority of this section are required
            87394     to obtain or renew a license.
            87395         (b) (i) Well drillers shall comply with the rules enacted by the state engineer under this
            87396     chapter.
            87397         (ii) If the state engineer determines, following an investigation, that the licensee has
            87398     failed to comply with these rules, the state engineer may revoke or suspend the license, and
            87399     exact the bond and deposit the money as a nonlapsing dedicated credit.
            87400         (iii) The state engineer may expend the funds to investigate or correct any deficiencies
            87401     which could adversely affect the public interest resulting from noncompliance with the rules
            87402     promulgated under this chapter by any well driller.
            87403         (iv) The state engineer may refuse to issue a license to a well driller if it appears that
            87404     there has been a violation of the rules or a failure to comply with Section 73-3-22 .
            87405         Section 2145. Section 73-3-29 is amended to read:
            87406          73-3-29. Relocation of natural streams -- Written permit required -- Emergency
            87407      work -- Violations.
            87408         (1) Except as provided in Subsection (2), a state agency, county, city, corporation, or
            87409     person may not relocate any natural stream channel or alter the beds and banks of any natural
            87410     stream without first obtaining the written approval of the state engineer.
            87411         (2) (a) The state engineer may issue an emergency permit or order to relocate a natural
            87412     stream channel or alter the beds and banks of a natural stream as provided by this Subsection
            87413     (2) and Section [ 63-46b-20 ] 63G-4-502 .
            87414         (b) If an emergency situation arises which involves immediate or actual flooding and
            87415     threatens injury or damage to persons or property, steps reasonably necessary to alleviate or
            87416     mitigate the threat may be taken before a written permit is issued subject to the requirements of
            87417     this section.

            87418         (c) (i) If the threat occurs during normal working hours, the state engineer or [his] the
            87419     state engineer's representative must be notified immediately of the threat. After receiving
            87420     notification of the threat, the state engineer or [his] the state engineer's representative may
            87421     orally approve action to alleviate or mitigate the threat.
            87422         (ii) If the threat does not occur during normal working hours, action may be taken to
            87423     alleviate or mitigate the threat and the state engineer or [his] the state engineer's representative
            87424     shall be notified of the action taken on the first working day following the work.
            87425         (d) A written application outlining the action taken or the action proposed to be taken
            87426     to alleviate or mitigate the threat shall be submitted to the state engineer within two working
            87427     days following notification of the threat to the state engineer or [his] the state engineer's
            87428     representative.
            87429         (e) (i) The state engineer shall inspect in a timely manner the site where the emergency
            87430     action was taken.
            87431         (ii) After inspection, additional requirements, including mitigation measures, may be
            87432     imposed.
            87433         (f) Adjudicative proceedings following the emergency work shall be informal unless
            87434     otherwise designated by the state engineer.
            87435         (3) An application to relocate any natural stream channel or alter the beds and banks of
            87436     any natural stream shall be in writing and shall contain the following:
            87437         (a) the name and address of the applicant;
            87438         (b) a complete and detailed statement of the location, nature, and type of relocation or
            87439     alteration;
            87440         (c) the methods to be employed;
            87441         (d) the purposes of the application; and
            87442         (e) any additional information that the state engineer considers necessary, including, but
            87443     not limited to, plans and specifications of the proposed construction of works.
            87444         (4) (a) The state engineer shall, without undue delay, conduct investigations that may
            87445     be reasonably necessary to determine whether the proposed relocation or alteration will:

            87446         (i) impair vested water rights;
            87447         (ii) unreasonably or unnecessarily affect any recreational use or the natural stream
            87448     environment;
            87449         (iii) unreasonably or unnecessarily endanger aquatic wildlife; or
            87450         (iv) unreasonably or unnecessarily diminish the natural channel's ability to conduct high
            87451     flows.
            87452         (b) The application shall be approved unless the proposed relocation or alteration will:
            87453         (i) impair vested water rights;
            87454         (ii) unreasonably or unnecessarily adversely affect any public recreational use or the
            87455     natural stream environment;
            87456         (iii) unreasonably or unnecessarily endanger aquatic wildlife; or
            87457         (iv) unreasonably or unnecessarily diminish the natural channel's ability to conduct high
            87458     flows.
            87459         (c) The state engineer may approve the application, in whole or in part, with any
            87460     reasonable terms to protect vested water rights, any public recreational use, the natural stream
            87461     environment, or aquatic wildlife.
            87462         (5) No cost incurred by the applicant, including any cost incurred to comply with the
            87463     terms imposed by the state engineer, is reimbursable by the Division of Water Rights.
            87464         (6) Except as provided in Subsection (2), a person who knowingly or intentionally
            87465     relocates any natural stream channel, or alters the bed or bank of any natural stream channel
            87466     without first obtaining the written approval of the state engineer is guilty of a crime punishable
            87467     under Section 73-2-27 .
            87468         Section 2146. Section 73-3a-104 is amended to read:
            87469          73-3a-104. Rulemaking power of state engineer.
            87470         In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
            87471     Rulemaking Act, the state engineer may make rules necessary to administer this chapter.
            87472         Section 2147. Section 73-3a-105 is amended to read:
            87473          73-3a-105. Procedures -- Adjudicative proceedings.

            87474         (1) Except where inconsistent with the provisions of this chapter, the procedures to be
            87475     followed by the state engineer in processing and considering applications filed under this
            87476     chapter, and the rights and duties of the applicants, are the same as the procedures, rights, and
            87477     duties specified in Title 73, Chapter 3, relating to appropriations of water or changes in the
            87478     point of diversion, place of use, or purpose of use of water.
            87479         (2) Adjudicative proceedings relating to applications made under this chapter shall be
            87480     conducted in accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
            87481     Procedures Act.
            87482         Section 2148. Section 73-3b-104 is amended to read:
            87483          73-3b-104. Rulemaking power of state engineer.
            87484         The state engineer may make rules to administer this chapter in accordance with [Title
            87485     63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
            87486         Section 2149. Section 73-3b-105 is amended to read:
            87487          73-3b-105. Administrative procedures.
            87488         The administrative procedures applicable to the issuance, modification, suspension, or
            87489     revocation of recharge and recovery permits are those set forth in [Title 63, Chapter 46b] Title
            87490     63G, Chapter 4, Administrative Procedures Act, and Sections 73-3-6 , 73-3-7 , 73-3-14 , and
            87491      73-3-15 .
            87492         Section 2150. Section 73-3b-201 is amended to read:
            87493          73-3b-201. Application for a recharge permit -- Required information -- Filing
            87494      fee.
            87495         (1) The application for obtaining a groundwater recharge permit shall include the
            87496     following information:
            87497         (a) the name and mailing address of the applicant;
            87498         (b) the name of the groundwater basin or groundwater sub-basin in which the applicant
            87499     proposes to operate the project;
            87500         (c) the name and mailing address of the owner of the land on which the applicant
            87501     proposes to operate the project;

            87502         (d) a legal description of the location of the proposed project;
            87503         (e) the source and annual quantity of water proposed to be stored underground;
            87504         (f) evidence of a water right or an agreement to use the water proposed to be stored
            87505     underground;
            87506         (g) the quality of the water proposed to be stored underground and the water quality of
            87507     the receiving groundwater aquifer;
            87508         (h) evidence that the applicant has applied for all applicable water quality permits;
            87509         (i) a plan of operation for the proposed recharge and recovery project which shall
            87510     include:
            87511         (i) a description of the proposed project;
            87512         (ii) its design capacity;
            87513         (iii) a detailed monitoring program; and
            87514         (iv) the proposed duration of the project;
            87515         (j) a copy of a study demonstrating[;]:
            87516         (i) the area of hydrologic impact of the project;
            87517         (ii) that the project is hydrologically feasible;
            87518         (iii) that the project will not:
            87519         (A) cause unreasonable harm to land; or
            87520         (B) impair any existing water right within the area of hydrologic impact; and
            87521         (iv) the percentage of anticipated recoverable water;
            87522         (k) evidence of financial and technical capability; and
            87523         (l) any other information that the state engineer requires.
            87524         (2) (a) A filing fee must be submitted with the application.
            87525         (b) The state engineer shall establish the filing fee in accordance with Section
            87526     [ 63-38-3.2 ] 63J-1-303 .
            87527         Section 2151. Section 73-3b-204 is amended to read:
            87528          73-3b-204. Application for a recovery permit -- Required information.
            87529         (1) If a person intends to recharge and recover water, the recovery application and

            87530     permit may be filed and processed with the groundwater recharge application and permit.
            87531         (2) The application for obtaining a recovery permit shall include the following
            87532     information:
            87533         (a) the name and mailing address of the applicant;
            87534         (b) a legal description of the location of the existing well or proposed new well from
            87535     which the applicant intends to recover stored water;
            87536         (c) a written consent from the owner of the recharge permit;
            87537         (d) the name and mailing address of the owner of the land from which the applicant
            87538     proposes to recover stored water;
            87539         (e) the name or description of the artificially recharged groundwater aquifer which is
            87540     the source of supply;
            87541         (f) the purpose for which the stored water will be recovered;
            87542         (g) the depth and diameter of the existing well or proposed new well;
            87543         (h) a legal description of the area where the stored water is proposed to be used;
            87544         (i) the design pumping capacity of the existing well or proposed new well; and
            87545         (j) any other information including maps, drawings, and data that the state engineer
            87546     requires.
            87547         (3) (a) A filing fee must be submitted with the application.
            87548         (b) The state engineer shall establish the filing fee in accordance with Section
            87549     [ 63-38-3.2 ] 63J-1-303 .
            87550         Section 2152. Section 73-3b-302 is amended to read:
            87551          73-3b-302. Fee.
            87552         (1) The state engineer shall assess an annual fee, in accordance with Section
            87553     [ 63-38-3.2 ] 63J-1-303 , on each person who holds a groundwater recharge or recovery permit.
            87554         (2) The fee shall reflect the division's costs to administer and monitor groundwater
            87555     recharge and recovery projects.
            87556         Section 2153. Section 73-3c-301 is amended to read:
            87557          73-3c-301. Application to the Water Quality Board.

            87558         (1) A public agency proposing a water reuse project shall apply to the Water Quality
            87559     Board created by Section 19-1-106 .
            87560         (2) The Water Quality Board may make rules, in accordance with [Title 63, Chapter
            87561     46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, governing the consideration
            87562     and approval of water reuse applications and administration of water reuse construction and
            87563     operating permits.
            87564         (3) Rules created under Subsection (2) shall require that water reuse meet standards
            87565     and requirements for water quality set by the Water Quality Board in accordance with Title 19,
            87566     Chapter 5, Water Quality Act.
            87567         (4) The Water Quality Board shall issue a written decision for each water reuse
            87568     application.
            87569         Section 2154. Section 73-3c-302 is amended to read:
            87570          73-3c-302. Application to the state engineer.
            87571         (1) A public agency proposing water reuse shall apply to the state engineer.
            87572         (2) An application for water reuse under Subsection (1) shall be made upon forms
            87573     furnished by the state engineer and shall include:
            87574         (a) the name of the applicant;
            87575         (b) a description of the underlying water right;
            87576         (c) an evaluation of the underlying water right's diversion, depletion, and return flow
            87577     requirements;
            87578         (d) the estimated quantity of water to be reused;
            87579         (e) the location of the POTW;
            87580         (f) the place, purpose, and extent of the proposed water reuse;
            87581         (g) an evaluation of depletion from the hydrologic system caused by the water reuse;
            87582     and
            87583         (h) any other information consistent with this chapter that is requested by the state
            87584     engineer.
            87585         (3) An application under Subsection (1) shall include a copy of a reuse authorization

            87586     contract for water reuse proposed by a public agency for any underlying water right not owned
            87587     by the public agency.
            87588         (4) In considering an application for water reuse, the state engineer shall comply with:
            87589         (a) Section 73-3-6 ;
            87590         (b) Section 73-3-7 ;
            87591         (c) Section 73-3-10 ; and
            87592         (d) Section 73-3-14 .
            87593         (5) In determining whether a proposed water reuse is consistent with the underlying
            87594     water right, the state engineer shall conclude that a proposed water reuse is consistent with the
            87595     underlying water right if:
            87596         (a) the use of the reuse water does not enlarge the underlying water right; and
            87597         (b) any return flow requirement of the underlying water right is satisfied.
            87598         (6) (a) The state engineer shall approve a water reuse application if the state engineer
            87599     concludes that the proposed water reuse is consistent with the underlying water right.
            87600         (b) The state engineer may:
            87601         (i) deny an application for water reuse if the proposed water reuse is inconsistent with
            87602     the underlying water right; or
            87603         (ii) approve the application in part or with conditions to assure consistency with the
            87604     underlying water right.
            87605         (7) A public agency with an approved reuse application shall submit a report, as
            87606     directed by the state engineer, concerning the ongoing water reuse operation.
            87607         (8) The state engineer may make rules in accordance with [Title 63, Chapter 46a] Title
            87608     63G, Chapter 3, Utah Administrative Rulemaking Act, to implement the provisions of this
            87609     chapter.
            87610         Section 2155. Section 73-5-15 is amended to read:
            87611          73-5-15. Groundwater management plan.
            87612         (1) As used in this section:
            87613         (a) "Critical management area" means a groundwater basin in which the groundwater

            87614     withdrawals consistently exceed the safe yield.
            87615         (b) "Safe yield" means the amount of groundwater that can be withdrawn from a
            87616     groundwater basin over a period of time without exceeding the long-term recharge of the basin
            87617     or unreasonably affecting the basin's physical and chemical integrity.
            87618         (2) (a) The state engineer may regulate groundwater withdrawals within a specific
            87619     groundwater basin by adopting a groundwater management plan in accordance with this section
            87620     for any groundwater basin or aquifer or combination of hydrologically connected groundwater
            87621     basins or aquifers.
            87622         (b) The objectives of a groundwater management plan are to:
            87623         (i) limit groundwater withdrawals to safe yield;
            87624         (ii) protect the physical integrity of the aquifer; and
            87625         (iii) protect water quality.
            87626         (c) The state engineer shall adopt a groundwater management plan for a groundwater
            87627     basin if more than 1/3 of the water right owners in the groundwater basin request that the state
            87628     engineer adopt a groundwater management plan.
            87629         (3) (a) In developing a groundwater management plan, the state engineer may consider:
            87630         (i) the hydrology of the groundwater basin;
            87631         (ii) the physical characteristics of the groundwater basin;
            87632         (iii) the relationship between surface water and groundwater, including whether the
            87633     groundwater should be managed in conjunction with hydrologically connected surface waters;
            87634         (iv) the geographic spacing and location of groundwater withdrawals;
            87635         (v) water quality;
            87636         (vi) local well interference; and
            87637         (vii) other relevant factors.
            87638         (b) The state engineer shall base the provisions of a groundwater management plan on
            87639     the principles of prior appropriation.
            87640         (c) (i) The state engineer shall use the best available scientific method to determine safe
            87641     yield.

            87642         (ii) As hydrologic conditions change or additional information becomes available, safe
            87643     yield determinations made by the state engineer may be revised by following the procedures
            87644     listed in Subsection (5).
            87645         (4) (a) (i) Except as provided in Subsection (4)(b), the withdrawal of water from a
            87646     groundwater basin shall be limited to the basin's safe yield.
            87647         (ii) Before limiting withdrawals in a groundwater basin to safe yield, the state engineer
            87648     shall:
            87649         (A) determine the groundwater basin's safe yield; and
            87650         (B) adopt a groundwater management plan for the groundwater basin.
            87651         (iii) If the state engineer determines that groundwater withdrawals in a groundwater
            87652     basin exceed the safe yield, the state engineer shall regulate groundwater rights in that
            87653     groundwater basin based on the priority date of the water rights under the groundwater
            87654     management plan, unless a voluntary arrangement exists under Subsection (4)(c) that requires a
            87655     different distribution.
            87656         (b) When adopting a groundwater management plan for a critical management area, the
            87657     state engineer shall, based on economic and other impacts to an individual water user or a local
            87658     community caused by the implementation of safe yield limits on withdrawals, allow gradual
            87659     implementation of the groundwater management plan.
            87660         (c) (i) In consultation with the state engineer, water users in a groundwater basin may
            87661     agree to participate in a voluntary arrangement for managing withdrawals at any time, either
            87662     before or after a determination that groundwater withdrawals exceed the groundwater basin's
            87663     safe yield.
            87664         (ii) A voluntary arrangement under Subsection (4)(c)(i) shall be consistent with other
            87665     law.
            87666         (iii) The adoption of a voluntary arrangement under this Subsection (4)(c) by less than
            87667     all of the water users in a groundwater basin does not affect the rights of water users who do
            87668     not agree to the voluntary arrangement.
            87669         (5) To adopt a groundwater management plan, the state engineer shall:

            87670         (a) give notice as specified in Subsection (7) at least 30 days before the first public
            87671     meeting held in accordance with Subsection (5)(b):
            87672         (i) that the state engineer proposes to adopt a groundwater management plan;
            87673         (ii) describing generally the land area proposed to be included in the groundwater
            87674     management plan; and
            87675         (iii) stating the location, date, and time of each public meeting to be held in accordance
            87676     with Subsection (5)(b);
            87677         (b) hold one or more public meetings in the geographic area proposed to be included
            87678     within the groundwater management plan to:
            87679         (i) address the need for a groundwater management plan;
            87680         (ii) present any data, studies, or reports that the state engineer intends to consider in
            87681     preparing the groundwater management plan;
            87682         (iii) address safe yield and any other subject that may be included in the groundwater
            87683     management plan;
            87684         (iv) outline the estimated administrative costs, if any, that groundwater users are likely
            87685     to incur if the plan is adopted; and
            87686         (v) receive any public comments and other information presented at the public meeting,
            87687     including comments from any of the entities listed in Subsection (7)(a)(iii);
            87688         (c) receive and consider written comments concerning the proposed groundwater
            87689     management plan from any person for a period determined by the state engineer of not less than
            87690     60 days after the day on which the notice required by Subsection (5)(a) is given;
            87691         (d) (i) at least 60 days prior to final adoption of the groundwater management plan,
            87692     publish notice:
            87693         (A) that a draft of the groundwater management plan has been proposed; and
            87694         (B) specifying where a copy of the draft plan may be reviewed; and
            87695         (ii) promptly provide a copy of the draft plan in printed or electronic form to each of the
            87696     entities listed in Subsection (7)(a)(iii) that makes written request for a copy; and
            87697         (e) provide notice of the adoption of the groundwater management plan.

            87698         (6) A groundwater management plan shall become effective on the date notice of
            87699     adoption is completed under Subsection (7), or on a later date if specified in the plan.
            87700         (7) (a) A notice required by this section shall be:
            87701         (i) published once a week for two successive weeks in a newspaper of general
            87702     circulation in each county that encompasses a portion of the land area proposed to be included
            87703     within the groundwater management plan;
            87704         (ii) published conspicuously on the state engineer's Internet website; and
            87705         (iii) mailed to each of the following that has within its boundaries a portion of the land
            87706     area to be included within the proposed groundwater management plan:
            87707         (A) county;
            87708         (B) incorporated city or town;
            87709         (C) improvement district under Title 17B, Chapter 2a, Part 4, Improvement District
            87710     Act;
            87711         (D) service area, under Title 17B, Chapter 2a, Part 9, Service Area Act;
            87712         (E) drainage district, under Title 17B, Chapter 2a, Part 2, Drainage District Act;
            87713         (F) irrigation district, under Title 17B, Chapter 2a, Part 5, Irrigation District Act;
            87714         (G) metropolitan water district, under Title 17B, Chapter 2a, Part 6, Metropolitan
            87715     Water District Act;
            87716         (H) special service district providing water, sewer, drainage, or flood control services,
            87717     under Title 17A, Chapter 2, Part 13, Utah Special Service District Act;
            87718         (I) water conservancy district, under Title 17B, Chapter 2a, Part 10, Water
            87719     Conservancy District Act; and
            87720         (J) conservation district, under Title 17A, Chapter 3, Part 8, Conservation Districts.
            87721         (b) A notice required by this section is effective upon substantial compliance with
            87722     Subsections (7)(a)(i) through (iii).
            87723         (8) A groundwater management plan may be amended in the same manner as a
            87724     groundwater management plan may be adopted under this section.
            87725         (9) The existence of a groundwater management plan does not preclude any otherwise

            87726     eligible person from filing any application or challenging any decision made by the state engineer
            87727     within the affected groundwater basin.
            87728         (10) (a) A person aggrieved by a groundwater management plan may challenge any
            87729     aspect of the groundwater management plan by filing a complaint within 60 days after the
            87730     adoption of the groundwater management plan in the district court for any county in which the
            87731     groundwater basin is found.
            87732         (b) Notwithstanding Subsection (9), a person may challenge the components of a
            87733     groundwater management plan only in the manner provided by Subsection (10)(a).
            87734         (c) An action brought under this Subsection (10) is reviewed de novo by the district
            87735     court.
            87736         (d) A person challenging a groundwater management plan under this Subsection (10)
            87737     shall join the state engineer as a defendant in the action challenging the groundwater
            87738     management plan.
            87739         (e) (i) Within 30 days after the day on which a person files an action challenging any
            87740     aspect of a groundwater management plan under Subsection (10)(a), the person filing the action
            87741     shall publish notice of the action in a newspaper of general circulation in the county in which the
            87742     district court is located.
            87743         (ii) The notice required by Subsection (10)(e)(i) shall be published once a week for two
            87744     consecutive weeks.
            87745         (iii) The notice required by Subsection (10)(e)(i) shall:
            87746         (A) identify the groundwater management plan the person is challenging;
            87747         (B) identify the case number assigned by the district court;
            87748         (C) state that a person affected by the groundwater management plan may petition the
            87749     district court to intervene in the action challenging the groundwater management plan; and
            87750         (D) list the address for the clerk of the district court in which the action is filed.
            87751         (iv) (A) Any person affected by the groundwater management plan may petition to
            87752     intervene in the action within 60 days after the day on which notice is last published under
            87753     Subsections (10)(e)(i) and (ii).

            87754         (B) The district court's treatment of a petition to intervene under this Subsection
            87755     (10)(e)(iv) is governed by the Utah Rules of Civil Procedure.
            87756         (v) A district court in which an action is brought under Subsection (10)(a) shall
            87757     consolidate all actions brought under that Subsection and include in the consolidated action any
            87758     person whose petition to intervene is granted.
            87759         (11) A groundwater management plan adopted or amended in accordance with this
            87760     section is exempt from the requirements in [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            87761     Administrative Rulemaking Act.
            87762         (12) Recharge and recovery projects permitted under Chapter 3b, Groundwater
            87763     Recharge and Recovery Act, are exempted from this section.
            87764         (13) Nothing in this section may be interpreted to require the development,
            87765     implementation, or consideration of a groundwater management plan as a prerequisite or
            87766     condition to the exercise of the state engineer's enforcement powers under other law, including
            87767     powers granted under Section 73-2-25 .
            87768         (14) A groundwater management plan adopted in accordance with this section may not
            87769     apply to the dewatering of a mine.
            87770         (15) (a) A groundwater management plan adopted by the state engineer before May 1,
            87771     2006, remains in force and has the same legal effect as it had on the day on which it was
            87772     adopted by the state engineer.
            87773         (b) If a groundwater management plan that existed before May 1, 2006, is amended on
            87774     or after May 1, 2006, the amendment is subject to this section's provisions.
            87775         Section 2156. Section 73-10-27 is amended to read:
            87776          73-10-27. Project priorities -- Considerations -- Determinations of feasibility --
            87777      Bids and contracts -- Definitions -- Retainage.
            87778         (1) In considering the priorities for projects to be built with funds made available under
            87779     Section 73-10-24 , the board shall give preference to those projects which:
            87780         (a) are sponsored by the state or a political subdivision of the state;
            87781         (b) meet a critical local need;

            87782         (c) have greater economic feasibility;
            87783         (d) will yield revenue to the state within a reasonable time or will return a reasonable
            87784     rate of interest, based on financial feasibility; and
            87785         (e) meet other considerations deemed necessary by the board, including, but not limited
            87786     to, wildlife management and recreational needs.
            87787         (2) In determining the economic feasibility the board shall establish a benefit-to-cost
            87788     ratio for each project, using a uniform standard of procedure for all projects. In considering
            87789     whether a project should be built, the benefit-to-cost ratio for each project shall be weighted
            87790     based on the relative cost of the project. A project, when considered in total with all other
            87791     projects constructed under this chapter and still the subject of a repayment contract, may not
            87792     cause the accumulative benefit-to-cost ratio of the projects to be less than one to one.
            87793         (3) Under no circumstances may a project be built that is not in the public interest as
            87794     determined by the Board of Water Resources, and no project may be built which is not
            87795     adequately designed based on sound engineering and geologic considerations.
            87796         (4) The board in the preparation of a project for construction shall comply with the
            87797     following:
            87798         (a) All flood control projects involving cities and counties costing in excess of $35,000,
            87799     and all contracts for the construction of a storage reservoir in excess of 100 acre-feet or for the
            87800     construction of a hydroelectric generating facility, shall be awarded on the basis of competitive
            87801     bid. Advertisement for competitive bids shall be published by the board at least once a week for
            87802     three consecutive weeks in a newspaper with general circulation in the state. The advertisement
            87803     shall indicate that the board will award the contract to the lowest responsible bidder but that it
            87804     reserves to itself the right to reject any and all bids. The date of last publication shall appear at
            87805     least five days before the scheduled bid opening.
            87806         (b) If all initial bids on the project are rejected, the board shall readvertise the project in
            87807     the manner specified in Subsection (4)(a). If no satisfactory bid is received by the board upon
            87808     the readvertisement of the project, it may proceed to construct the project but only in
            87809     accordance with the plans and specifications used to calculate the estimated cost of the project.

            87810         (c) The board shall keep an accurate record of all facts and representations relied upon
            87811     in preparing its estimated cost for any project which is subject to the competitive bidding
            87812     requirements of this section.
            87813         (d) For the purposes of this Subsection (4):
            87814         (i) "Estimated cost" means the cost of all labor, material, and equipment necessary for
            87815     construction of the contemplated project.
            87816         (ii) "Lowest responsible bidder" means any licensed contractor who submits the lowest
            87817     bid, whose bid is in compliance with the invitation for bids, whose bid meets the plans and
            87818     specifications, and who furnishes bonds under Sections 14-1-18 and [ 63-56-504 ] 63G-6-505 .
            87819         (5) If any payment on a contract with a private contractor for construction of projects
            87820     under this section is retained or withheld, it shall be retained or withheld and released as
            87821     provided in Section 13-8-5 .
            87822         Section 2157. Section 73-10c-4.1 is amended to read:
            87823          73-10c-4.1. Wastewater projects -- Loan criteria and requirements -- Process for
            87824      approval.
            87825         (1) The Water Quality Board shall review the plans and specifications for a wastewater
            87826     project before approval of any loan and may condition approval on the availability of loan funds
            87827     and on assurances that the Water Quality Board considers necessary to ensure that loan funds
            87828     are used to pay the wastewater project costs and that the wastewater project is completed.
            87829         (2) (a) Each loan shall specify the terms for repayment, with the term, interest rate or
            87830     rates, including a variable rate, and security as determined by the Water Quality Board.
            87831         (b) The loan may be evidenced by general obligation or revenue bonds or other
            87832     obligations of the political subdivision.
            87833         (c) Loan payments made by a political subdivision shall be deposited in the Water
            87834     Quality Security Subaccount as described in Section 73-10c-5 .
            87835         (d) The loans are subject to the provisions of [Title 63, Chapter 65] Title 63B, Chapter
            87836     1b, State Financing Consolidation Act.
            87837         (3) In determining the priority for a wastewater project loan, the Water Quality Board

            87838     shall consider:
            87839         (a) the ability of the political subdivision to obtain monies for the wastewater project
            87840     from other sources or to finance the project from its own resources;
            87841         (b) the ability of the political subdivision to repay the loan;
            87842         (c) whether or not a good faith effort to secure all or part of the services needed from
            87843     the private sector of the economy has been made; and
            87844         (d) whether or not the wastewater project:
            87845         (i) meets a critical local or state need;
            87846         (ii) is cost effective;
            87847         (iii) will protect against present or potential health hazards;
            87848         (iv) is needed to comply with minimum standards of the federal Water Pollution Control
            87849     Act, Title 33, Chapter 26, United States Code, or any similar or successor statute;
            87850         (v) is needed to comply with the minimum standards of Title 19, Chapter 5, Water
            87851     Quality Act, or any similar or successor statute;
            87852         (vi) is designed to reduce the pollution of the waters of this state; and
            87853         (vii) meets any other consideration considered necessary by the Water Quality Board.
            87854         (4) In determining the cost effectiveness of a wastewater project the Water Quality
            87855     Board shall:
            87856         (a) require the preparation of a cost-effective analysis of feasible wastewater treatment
            87857     or conveyance alternatives capable of meeting state and federal water quality and public health
            87858     requirements;
            87859         (b) consider monetary costs, including the present worth or equivalent annual value of
            87860     all capital costs and operation, maintenance, and replacement costs; and
            87861         (c) ensure that the alternative selected is the most economical means of meeting
            87862     applicable state and federal wastewater and water quality or public health requirements over the
            87863     useful life of the facility while recognizing environmental and other nonmonetary considerations.
            87864         (5) A loan may not be made for a wastewater project that is not in the public interest as
            87865     determined by the Water Quality Board.

            87866         Section 2158. Section 73-10c-4.2 is amended to read:
            87867          73-10c-4.2. Drinking water projects -- Loan criteria and requirements -- Process
            87868      for approval.
            87869         (1) The Drinking Water Board shall review the plans and specifications for a drinking
            87870     water project before approval of any loan and may condition approval on the availability of loan
            87871     funds and on the assurances that the Drinking Water Board considers necessary to ensure that
            87872     loan funds are used to pay the drinking water project costs and that the drinking water project is
            87873     completed.
            87874         (2) (a) Each loan shall specify the terms for repayment, with the term, interest rate or
            87875     rates, including a variable rate, and security as determined by the Drinking Water Board.
            87876         (b) The loan may be evidenced by general obligation or revenue bonds or other
            87877     obligations of the political subdivision.
            87878         (c) Loan payments made by a political subdivision shall be deposited in the Drinking
            87879     Water Security Subaccount as described in Section 73-10c-5 .
            87880         (d) The loans are subject to the provisions of [Title 63, Chapter 65] Title 63B, Chapter
            87881     1b, State Financing Consolidation Act.
            87882         (3) In determining the priority for a drinking water project loan, the Drinking Water
            87883     Board shall consider:
            87884         (a) the ability of the political subdivision to obtain monies for the drinking water project
            87885     from other sources or to finance such project from its own resources;
            87886         (b) the ability of the political subdivision to repay the loan;
            87887         (c) whether or not a good faith effort to secure all or part of the services needed from
            87888     the private sector of the economy has been made; and
            87889         (d) whether or not the drinking water project:
            87890         (i) meets a critical local or state need;
            87891         (ii) is cost effective;
            87892         (iii) will protect against present or potential health hazards;
            87893         (iv) is needed to comply with minimum standards of the federal Safe Drinking Water

            87894     Act, or any similar or successor statute;
            87895         (v) is needed to comply with the minimum standards of Title 19, Chapter 4, Safe
            87896     Drinking Water Act, or any similar or successor statute; and
            87897         (vi) meets any other consideration considered necessary by the Drinking Water Board.
            87898         (4) In determining the cost effectiveness of a drinking water project the Drinking Water
            87899     Board shall:
            87900         (a) require the preparation of a cost-effective analysis of feasible drinking water
            87901     projects;
            87902         (b) consider monetary costs, including the present worth or equivalent annual value of
            87903     all capital costs and operation, maintenance, and replacement cost; and
            87904         (c) ensure that the alternative selected is the most economical means of meeting
            87905     applicable water quality or public health requirements over the useful life of the facility while
            87906     recognizing environmental and other nonmonetary considerations.
            87907         (5) A loan may not be made for a drinking water project that is not in the public interest
            87908     as determined by the Drinking Water Board.
            87909         Section 2159. Section 73-10c-4.5 is amended to read:
            87910          73-10c-4.5. Nonpoint source project loans and grants -- Project objectives --
            87911      Water Quality Board duties.
            87912         (1) The Water Quality Board may make a loan from the Utah Wastewater Loan
            87913     Program Subaccount created in Subsection 73-10c-5 (2)(a) or from the Utah State Revolving
            87914     Fund for Wastewater Projects Subaccount created in Subsection 73-10c-5 (2)(b) or a grant from
            87915     the Hardship Grant Program for Wastewater Projects Subaccount created in Subsection
            87916      73-10c-5 (2)(c) to a political subdivision, individual, corporation, association, state or federal
            87917     agency, or other private entity to acquire, construct, or implement a nonpoint source project.
            87918         (2) The Water Quality Board may only award a loan or grant for a nonpoint source
            87919     project that will achieve one or more of the following objectives:
            87920         (a) abate or reduce raw sewage discharges;
            87921         (b) repair or replace failing individual on-site wastewater disposal systems;

            87922         (c) abate or reduce untreated or uncontrolled runoff;
            87923         (d) improve critical aquatic habitat resources;
            87924         (e) conserve soil, water, or other natural resources;
            87925         (f) protect and improve ground water quality;
            87926         (g) preserve and protect the beneficial uses of waters of the state;
            87927         (h) reduce the number of water bodies not achieving water quality standards;
            87928         (i) improve watershed management; or
            87929         (j) prepare and implement total maximum daily load (TMDL) assessments.
            87930         (3) The Water Quality Board shall:
            87931         (a) determine the amount, term, and interest rate for each loan made under this section;
            87932         (b) assure that adequate security is obtained for each loan;
            87933         (c) establish criteria and procedures for determining priority nonpoint source projects
            87934     and award loans in accordance with those priorities; and
            87935         (d) make rules to implement this section in accordance with [Title 63, Chapter 46a]
            87936     Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
            87937         Section 2160. Section 73-10c-8 is amended to read:
            87938          73-10c-8. Rules.
            87939         The board shall make rules in accordance with [Title 63, Chapter 46a] Title 63G,
            87940     Chapter 3, Utah Administrative Rulemaking Act, as necessary to administer this chapter,
            87941     including the application by political subdivisions for the securing of their drinking water or
            87942     wastewater project obligations, the approval of obligations to be secured, the verification of
            87943     notices with respect to inabilities of political subdivisions to pay principal and interest, and the
            87944     credit enhancement agreements with political subdivisions setting forth the terms and conditions
            87945     under which obligations may be secured under this chapter.
            87946         Section 2161. Section 73-10c-10 is amended to read:
            87947          73-10c-10. Origination fee.
            87948         (1) The Drinking Water Board and the Water Quality Board may establish an
            87949     origination fee for a loan to fund the administration of the programs created by this chapter by

            87950     following the procedures and requirements of Section [ 63-38-3.2 ] 63J-1-303 .
            87951         (2) The origination fee shall be part of the department fee schedule established under
            87952     Section 19-1-201 .
            87953         (3) Notwithstanding Subsection [ 63-38-3.2 ] 63J-1-303 (2)(e), the board shall deposit
            87954     the fee in the origination fee subaccount created in Section 73-10c-5 and use the fee to
            87955     administer this chapter.
            87956         (4) The loan recipient may pay the origination fee from the loan proceeds.
            87957         Section 2162. Section 73-18-4 is amended to read:
            87958          73-18-4. Board may promulgate rules and set fees.
            87959         (1) The board may promulgate rules:
            87960         (a) creating a uniform waterway marking system which shall be obeyed by all vessel
            87961     operators;
            87962         (b) regulating the placement of waterway markers and other permanent or anchored
            87963     objects on the waters of this state;
            87964         (c) zoning certain waters of this state for the purpose of prohibiting the operation of
            87965     vessels or motors for safety and health purposes only; and
            87966         (d) regulating vessel operators who carry passengers for hire and outfitting companies.
            87967         (2) (a) The board may set fees for licensing vessel operators who carry passengers for
            87968     hire and registering outfitting companies in accordance with Section [ 63-38-3.2 ] 63J-1-303 .
            87969         (b) The license and registration fees imposed pursuant to Subsection (2)(a) shall be
            87970     deposited into the Boating Account created in Section 73-18-22 .
            87971         Section 2163. Section 73-18-7 is amended to read:
            87972          73-18-7. Registration requirements -- Exemptions -- Fee -- Agents -- Records --
            87973      Period of registration and renewal -- Expiration -- Notice of transfer of interest or change
            87974      of address -- Duplicate registration card -- Invalid registration -- Powers of board.
            87975         (1) (a) Except as provided by Section 73-18-9 , the owner of each motorboat and
            87976     sailboat on the waters of this state shall register it with the division as provided in this chapter.
            87977         (b) A person may not place, give permission for the placement of, operate, or give

            87978     permission for the operation of a motorboat or sailboat on the waters of this state, unless the
            87979     motorboat or sailboat is registered as provided in this chapter.
            87980         (2) (a) The owner of a motorboat or sailboat required to be registered shall file an
            87981     application for registration with the division on forms approved by the division.
            87982         (b) The owner of the motorboat or sailboat shall sign the application and pay the fee set
            87983     by the board in accordance with Section [ 63-38-3.2 ] 63J-1-303 .
            87984         (c) Before receiving a registration card and registration decals, the applicant shall
            87985     provide the division with a certificate from the county assessor of the county in which the
            87986     motorboat or sailboat has situs for taxation, stating that:
            87987         (i) the property tax on the motorboat or sailboat for the current year has been paid;
            87988         (ii) in the county assessor's opinion, the property tax is a lien on real property sufficient
            87989     to secure the payment of the property tax; or
            87990         (iii) the motorboat or sailboat is exempt by law from payment of property tax for the
            87991     current year.
            87992         (d) If the board modifies the fee under Subsection (2)(b), the modification shall take
            87993     effect on the first day of the calendar quarter after 90 days from the day on which the board
            87994     provides the State Tax Commission:
            87995         (i) notice from the board stating that the board will modify the fee; and
            87996         (ii) a copy of the fee modification.
            87997         (3) (a) Upon receipt of the application in the approved form, the division shall record
            87998     the receipt and issue to the applicant registration decals and a registration card that state the
            87999     number assigned to the motorboat or sailboat and the name and address of the owner.
            88000         (b) The registration card shall be available for inspection on the motorboat or sailboat
            88001     for which it was issued, whenever that motorboat or sailboat is in operation.
            88002         (4) The assigned number shall:
            88003         (a) be painted or permanently attached to each side of the forward half of the motorboat
            88004     or sailboat;
            88005         (b) consist of plain vertical block characters not less than three inches in height;

            88006         (c) contrast with the color of the background and be distinctly visible and legible;
            88007         (d) have spaces or hyphens equal to the width of a letter between the letter and numeral
            88008     groupings; and
            88009         (e) read from left to right.
            88010         (5) A motorboat or sailboat with a valid marine document issued by the United States
            88011     Coast Guard is exempt from the number display requirements of Subsection (4).
            88012         (6) The nonresident owner of any motorboat or sailboat already covered by a valid
            88013     number that has been assigned to it according to federal law or a federally approved numbering
            88014     system of the owner's resident state is exempt from registration while operating the motorboat
            88015     or sailboat on the waters of this state unless the owner is operating in excess of the reciprocity
            88016     period provided for in Subsection 73-18-9 (1).
            88017         (7) (a) If the ownership of a motorboat or sailboat changes, the new owner shall file a
            88018     new application form and fee with the division, and the division shall issue a new registration
            88019     card and registration decals in the same manner as provided for in Subsections (2) and (3).
            88020         (b) The division shall reassign the current number assigned to the motorboat or sailboat
            88021     to the new owner to display on the motorboat or sailboat.
            88022         (8) If the United States Coast Guard has in force an overall system of identification
            88023     numbering for motorboats or sailboats within the United States, the numbering system
            88024     employed under this chapter by the board shall conform with that system.
            88025         (9) (a) The division may authorize any person to act as its agent for the registration of
            88026     motorboats and sailboats.
            88027         (b) A number assigned, a registration card, and registration decals issued by an agent of
            88028     the division in conformity with this chapter and rules of the board are valid.
            88029         (10) (a) The Motor Vehicle Division shall classify all records of the division made or
            88030     kept according to this section in the same manner that motor vehicle records are classified under
            88031     Section 41-1a-116 .
            88032         (b) Division records are available for inspection in the same manner as motor vehicle
            88033     records pursuant to Section 41-1a-116 .

            88034         (11) (a) (i) Each registration, registration card, and decal issued under this chapter shall
            88035     continue in effect for 12 months, beginning with the first day of the calendar month of
            88036     registration.
            88037         (ii) A registration may be renewed by the owner in the same manner provided for in the
            88038     initial application.
            88039         (iii) The division shall reassign the current number assigned to the motorboat or sailboat
            88040     when the registration is renewed.
            88041         (b) Each registration, registration card, and registration decal expires the last day of the
            88042     month in the year following the calendar month of registration.
            88043         (c) If the last day of the registration period falls on a day in which the appropriate state
            88044     or county offices are not open for business, the registration of the motorboat or sailboat is
            88045     extended to 12 midnight of the next business day.
            88046         (d) The division may receive applications for registration renewal and issue new
            88047     registration cards at any time before the expiration of the registration, subject to the availability
            88048     of renewal materials.
            88049         (e) The new registration shall retain the same expiration month as recorded on the
            88050     original registration even if the registration has expired.
            88051         (f) The year of registration shall be changed to reflect the renewed registration period.
            88052         (g) If the registration renewal application is an application generated by the division
            88053     through its automated system, the owner is not required to surrender the last registration card
            88054     or duplicate.
            88055         (12) (a) An owner shall notify the division of:
            88056         (i) the transfer of all or any part of the owner's interest, other than creation of a security
            88057     interest, in a motorboat or sailboat registered in this state under Subsections (2) and (3); and
            88058         (ii) the destruction or abandonment of the owner's motorboat or sailboat.
            88059         (b) Notification must take place within 15 days of the transfer, destruction, or
            88060     abandonment.
            88061         (c) (i) The transfer, destruction, or abandonment of a motorboat or sailboat terminates

            88062     its registration.
            88063         (ii) Notwithstanding Subsection (12)(c)(i), a transfer of a part interest that does not
            88064     affect the owner's right to operate a motorboat or sailboat does not terminate the registration.
            88065         (13) (a) A registered owner shall notify the division within 15 days if the owner's
            88066     address changes from the address appearing on the registration card and shall, as a part of this
            88067     notification, furnish the division with [his] the owner's new address.
            88068         (b) The board may provide in its rules for:
            88069         (i) the surrender of the registration card bearing the former address; and
            88070         (ii) (A) the replacement of the card with a new registration card bearing the new
            88071     address; or
            88072         (B) the alteration of an existing registration card to show the owner's new address.
            88073         (14) (a) If a registration card is lost or stolen, the division may collect a fee of $4 for
            88074     the issuance of a duplicate card.
            88075         (b) If a registration decal is lost or stolen, the division may collect a fee of $3 for the
            88076     issuance of a duplicate decal.
            88077         (15) A number other than the number assigned to a motorboat or sailboat or a number
            88078     for a motorboat or sailboat granted reciprocity under this chapter may not be painted, attached,
            88079     or otherwise displayed on either side of the bow of a motorboat or sailboat.
            88080         (16) A motorboat or sailboat registration and number are invalid if obtained by
            88081     knowingly falsifying an application for registration.
            88082         (17) The board may designate the suffix to assigned numbers, and by following the
            88083     procedures and requirements of [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            88084     Administrative Rulemaking Act, make rules for:
            88085         (a) the display of registration decals;
            88086         (b) the issuance and display of dealer numbers and registrations; and
            88087         (c) the issuance and display of temporary registrations.
            88088         Section 2164. Section 73-18-13.5 is amended to read:
            88089          73-18-13.5. Motorboat accidents -- Investigation and report of operator security

            88090      -- Agency action if no security -- Surrender of registration materials.
            88091         (1) Upon request of a peace officer investigating an accident involving a motorboat as
            88092     defined in Section 73-18c-102 , the operator of the motorboat shall provide evidence of the
            88093     owner's or operator's security required under Section 73-18c-301 .
            88094         (2) The peace officer shall record on a form approved by the division:
            88095         (a) the information provided by the operator;
            88096         (b) whether the operator provided insufficient or no information; and
            88097         (c) whether the peace officer finds reasonable cause to believe that any information
            88098     given is not correct.
            88099         (3) The peace officer shall deposit all completed forms with the peace officer's agency,
            88100     which shall forward the forms to the division no later than ten days after receipt.
            88101         (4) (a) The division shall revoke the registration of a motorboat as defined in Section
            88102      73-18c-102 involved in an accident unless the owner or operator can demonstrate to the
            88103     division compliance with the owner's or operator's security requirement of Section 73-18c-301
            88104     at the time of the accident.
            88105         (b) Any registration revoked may not be renewed for a period of one year following the
            88106     date of revocation.
            88107         (5) A person may appeal a revocation issued under Subsection (4) in accordance with
            88108     procedures established by the board by rule that are consistent with [Title 63, Chapter 46b] Title
            88109     63G, Chapter 4, Administrative Procedures Act.
            88110         (6) (a) Any person whose registration is revoked under Subsection (4) shall return the
            88111     registration card and decals for the motorboat to the division.
            88112         (b) If the person fails to return the registration materials as required, they shall be
            88113     confiscated under Section 73-18-13.6 .
            88114         (7) The board may make rules for the enforcement of this section.
            88115         (8) In this section, "evidence of owner's or operator's security" includes any one of the
            88116     following:
            88117         (a) the operator's:

            88118         (i) insurance policy;
            88119         (ii) binder notice;
            88120         (iii) renewal notice; or
            88121         (iv) card issued by an insurance company as evidence of insurance;
            88122         (b) a copy of a surety bond, certified by the surety, which conforms to Section
            88123      73-18c-102 ;
            88124         (c) a certificate of the state treasurer issued under Section 73-18c-305 ; or
            88125         (d) a certificate of self-funded coverage issued under Section 73-18c-306 .
            88126         Section 2165. Section 73-18-19 is amended to read:
            88127          73-18-19. Publication of rules and regulations.
            88128         The rules promulgated under this chapter shall be published as required by [Title 63,
            88129     Chapter 46a] Title 63G, Chapter 3, the Utah Administrative Rulemaking Act.
            88130         Section 2166. Section 73-18-25 is amended to read:
            88131          73-18-25. Fees to cover the costs of electronic payments.
            88132         (1) As used in this section:
            88133         (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221 .
            88134         (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221 .
            88135         (2) (a) The Motor Vehicle Division may collect an electronic payment fee on all
            88136     registrations and renewals of registration under Section 73-18-7 .
            88137         (b) The fee described under Subsection (2)(a) shall be imposed regardless of the method
            88138     of payment for a particular transaction.
            88139         (3) The Motor Vehicle Division shall establish the fee according to the procedures and
            88140     requirements of Section [ 63-38-3.2 ] 63J-1-303 .
            88141         (4) A fee imposed under this section:
            88142         (a) shall be used by the Motor Vehicle Division as a dedicated credit to cover the costs
            88143     of electronic payments;
            88144         (b) is nonlapsing;
            88145         (c) is not subject to Subsection [ 63-38a-104 ] 63J-2-202 (2); and

            88146         (d) need not be separately identified from the fees imposed on registrations and
            88147     renewals of registration under Section 73-18-7 .
            88148         Section 2167. Section 73-18a-4 is amended to read:
            88149          73-18a-4. Marine toilets -- Pollution control devices required -- Rules established
            88150      by board.
            88151         (1) Every marine toilet on a vessel used or operated upon the waters of this state shall
            88152     be equipped with an approved pollution control device in operative condition.
            88153         (2) The board shall make rules in accordance with [Title 63, Chapter 46a] Title 63G,
            88154     Chapter 3, Utah Administrative Rulemaking Act, as provided in this chapter, establishing
            88155     criteria or standards for definition and approval of acceptable pollution control devices for
            88156     vessels.
            88157         Section 2168. Section 73-18a-5 is amended to read:
            88158          73-18a-5. Chemical treatment of marine toilet contents -- Rules established by
            88159      board and Department of Environmental Quality.
            88160         The board shall establish by rule, in accordance with [Title 63, Chapter 46a] Title 63G,
            88161     Chapter 3, Utah Administrative Rulemaking Act, with approval by the Department of
            88162     Environmental Quality, as provided in this chapter, standards relating to chemical treatment of
            88163     marine toilet contents.
            88164         Section 2169. Section 73-18a-12 is amended to read:
            88165          73-18a-12. Rules promulgated by board -- Subject to approval by Department of
            88166      Environmental Quality.
            88167         The board may promulgate rules under [Title 63, Chapter 46a] Title 63G, Chapter 3,
            88168     Utah Administrative Rulemaking Act, which are necessary for the carrying out of duties,
            88169     obligations, and powers conferred on the division by this chapter. These rules shall be subject
            88170     to review and approval by the Department of Environmental Quality. This approval shall be
            88171     recorded as part of the rules.
            88172         Section 2170. Section 73-18c-201 is amended to read:
            88173          73-18c-201. Division to administer and enforce chapter -- Board may adopt

            88174      rules.
            88175         (1) The division shall administer and enforce the provisions of this chapter.
            88176         (2) The board may adopt rules as necessary for the administration of this chapter in
            88177     accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking
            88178     Act.
            88179         Section 2171. Section 73-18c-306 is amended to read:
            88180          73-18c-306. Certificate of self-funded coverage as proof of owner's or operator's
            88181      security.
            88182         (1) The division may, upon the application of any person, issue a certificate of
            88183     self-funded coverage when it is satisfied that the person has:
            88184         (a) more than 24 motorboats; and
            88185         (b) on deposit, in a form approved by the division, cash or securities in an amount of
            88186     $200,000 plus $100 for each motorboat up to and including 1,000 motorboats and $50 for each
            88187     motorboat over 1,000 motorboats.
            88188         (2) Persons holding a certificate of self-funded coverage under this chapter shall pay
            88189     benefits to persons injured from the self-funded person's operation, maintenance, and use of
            88190     motorboats as would an insurer issuing a policy to the self-funded person containing the
            88191     coverages under Sections 31A-22-1502 and 31A-22-1503 .
            88192         (3) In accordance with [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
            88193     Procedures Act, the division may, upon reasonable grounds, cancel the certificate. Failure to
            88194     pay any judgment up to the limit under Subsection 31A-22-1503 (2) within 30 days after the
            88195     judgment is final is a reasonable ground to cancel the certificate.
            88196         (4) Any government entity with self-funded coverage for government-owned
            88197     motorboats under [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of
            88198     Utah, meets the requirements of this section.
            88199         Section 2172. Section 73-22-5 is amended to read:
            88200          73-22-5. Jurisdiction of division -- Hearings -- Subpoena power -- Restraining
            88201      violations -- Actions for damages against violators unaffected.

            88202         (1) The division has jurisdiction and authority over all persons and property, public and
            88203     private, necessary to enforce the provisions of this chapter and may enact, issue, and enforce
            88204     necessary rules and orders to carry out the requirements of this chapter.
            88205         (2) (a) Any affected person may apply for a hearing before the division, or the division
            88206     may initiate proceedings upon any question relating to the administration of this chapter by
            88207     following the procedures and requirements of [Title 63, Chapter 46b] Title 63G, Chapter 4,
            88208     Administrative Procedures Act.
            88209         (b) The Division of Water Rights shall comply with the procedures and requirements of
            88210     [Title 63, Chapter 46b,] Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative
            88211     proceedings.
            88212         (3) The division shall have the power to summon witnesses, to administer oaths, and to
            88213     require the production of records, books, and documents for examination at any hearing or
            88214     investigation conducted by it.
            88215         (4) (a) If any person fails or refuses to comply with a subpoena issued by the division,
            88216     or if any witness fails or refuses to testify about any matter regarding which [he] the witness
            88217     may be interrogated, the division may petition any district court in the state to issue an order
            88218     compelling the person to:
            88219         (i) comply with the subpoena and attend before the division;
            88220         (ii) produce any records, books, and documents covered by the subpoena; or
            88221         (iii) to give testimony.
            88222         (b) The court may punish failure to comply with the order as contempt.
            88223         (5) (a) Whenever it appears that any person is violating or threatening to violate any
            88224     provision of this chapter, or any rule or order made under this chapter, the division may file suit
            88225     in the name of the state to restrain that person from continuing the violation or from carrying
            88226     out the threat of violation.
            88227         (b) Venue for the action is in the district court in the county where any defendant
            88228     resides or in the county where the violation is alleged to have occurred.
            88229         (6) (a) Nothing in this chapter, no suit by or against the division, and no violation

            88230     charged or asserted against any person under this chapter, or any rule or order issued under it,
            88231     shall impair, abridge, or delay any cause of action for damages that any person may have or
            88232     assert against any person violating this chapter, or any rule or order issued under it.
            88233         (b) Any person so damaged by the violation may sue for and recover whatever damages
            88234     that [he] the person is otherwise entitled to receive.
            88235         Section 2173. Section 73-23-3 is amended to read:
            88236          73-23-3. Duties and powers of Division of Water Resources.
            88237         For purposes of this chapter, the Division of Water Resources:
            88238         (1) shall provide for the construction, operation, and maintenance of the West Desert
            88239     Pumping Project;
            88240         (2) may enter into agreements as necessary to provide for all or any portion of the West
            88241     Desert Pumping Project, including any indemnification agreements required by the federal
            88242     government;
            88243         (3) may acquire land or any other property right by any lawful means, including eminent
            88244     domain;
            88245         (4) is exempt from [Title 63, Chapter 56] Title 63G, Chapter 6, the Utah Procurement
            88246     Code; and
            88247         (5) may proceed without obtaining water right approval from the state engineer.
            88248         Section 2174. Section 73-26-402 is amended to read:
            88249          73-26-402. Rulemaking power of the board.
            88250         In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah Administrative
            88251     Rulemaking Act, the board may make rules to:
            88252         (1) determine water charges as provided in Section 73-26-506 ;
            88253         (2) administer and operate the reservoirs and associated facilities constructed in
            88254     accordance with Section 73-26-301 ;
            88255         (3) establish procedures for reviewing offers to contract for the sale or lease of
            88256     developed water; and
            88257         (4) set the interest rate for repayment of construction and environmental mitigation

            88258     costs.
            88259         Section 2175. Section 73-26-403 is amended to read:
            88260          73-26-403. Immunity from suit -- Exception.
            88261         Activities engaged in under authority of this chapter are governmental functions. The
            88262     state and its officers and employees are immune from suit for any injury or damage resulting
            88263     from those activities, except as provided in Section [ 63-30d-301 ] 63G-7-301 .
            88264         Section 2176. Section 73-28-104 is amended to read:
            88265          73-28-104. Powers of the board.
            88266         (1) The board may contract with:
            88267         (a) a district for the sale of developed water;
            88268         (b) a qualified entity for the development or construction of the project; or
            88269         (c) a district or other qualified entity for the operation, maintenance, repair, or
            88270     replacement of the project.
            88271         (2) By following the procedures and requirements of [Title 63, Chapter 46a] Title 63G,
            88272     Chapter 3, Utah Administrative Rulemaking Act, the board may make rules to:
            88273         (a) establish prices, in consultation with the committee and in accordance with Section
            88274      73-28-403 , for:
            88275         (i) developed water sold to the districts; and
            88276         (ii) electricity made available by the project;
            88277         (b) establish procedures for reviewing offers to contract for the sale of developed water
            88278     and electricity;
            88279         (c) establish the interest rate for repayment of preconstruction and construction costs;
            88280         (d) establish a reasonable time period for the districts to offer to purchase water; and
            88281         (e) administer and operate the project.
            88282         (3) The board may exercise eminent domain, as provided in Title 78, Chapter 34,
            88283     Eminent Domain, to construct the project.
            88284         Section 2177. Section 73-28-404 is amended to read:
            88285          73-28-404. Repayments returned to Water Resources Conservation and

            88286      Development Fund -- Establishment of an enterprise fund.
            88287         (1) The board shall deposit, in accordance with Section 51-4-1 , into the Water
            88288     Resources Conservation and Development Fund:
            88289         (a) repayments of preconstruction and construction costs; and
            88290         (b) the interest charged.
            88291         (2) (a) There is created an enterprise fund, as defined in Subsection 51-5-4 (8), entitled
            88292     the "Lake Powell Pipeline Project Operation and Maintenance Fund."
            88293         (b) The fund consists of:
            88294         (i) revenues received from the sale of developed water that is designated for project
            88295     operation, maintenance, repair, and replacement costs;
            88296         (ii) revenues received from the sale of electricity that are deposited in the fund in
            88297     accordance with Subsection 73-28-203 (3); and
            88298         (iii) all interest earned by the fund.
            88299         (3) (a) Any unexpended monies remaining in the fund at the end of the fiscal year are
            88300     nonlapsing.
            88301         (b) Notwithstanding Section [ 63-38-3.6 ] 63J-1-307 , the Legislature may not
            88302     appropriate any monies from the Lake Powell Pipeline Project Operation and Maintenance
            88303     Fund.
            88304         (4) The state treasurer shall:
            88305         (a) invest the monies in the enterprise fund by following the procedures and
            88306     requirements of Title 51, Chapter 7, State Money Management Act; and
            88307         (b) deposit all interest or other earnings derived from those investments into the Lake
            88308     Powell Pipeline Operation and Maintenance Fund.
            88309         (5) The committee shall approve the expenditure of fund monies to cover the project
            88310     operation, maintenance, repair, and replacement costs, subject to:
            88311         (a) monies available in the fund; and
            88312         (b) rules established by the board under Subsection 73-28-104 (2).
            88313         (6) If title to the project is transferred under Section 73-28-405 , the agreement shall

            88314     direct the disposition of the monies remaining in the fund.
            88315         Section 2178. Section 75-2a-106 is amended to read:
            88316          75-2a-106. Emergency medical services -- Physician order to withhold life
            88317      sustaining procedures.
            88318         (1) (a) The following persons may direct an emergency medical service provider
            88319     licensed or certified under Title 26, Chapter 8a, Utah Emergency Medical Services System Act,
            88320     who responds to a call to provide emergency medical services as defined in Section 26-8a-102 ,
            88321     to withhold all life sustaining procedures:
            88322         (i) an individual over the age of 18;
            88323         (ii) an emancipated minor; or
            88324         (iii) the following person, if the person has a physician's order to withhold life sustaining
            88325     procedures that is issued in compliance with this section:
            88326         (A) a parent or legal guardian of a minor;
            88327         (B) a legal guardian appointed for an individual; or
            88328         (C) a surrogate.
            88329         (b) A person described in Subsection (1)(a)(iii) may direct an emergency service
            88330     provider to withhold life sustaining procedures if the person has a physician's order:
            88331         (i) made in compliance with Subsection (4); and
            88332         (ii) if the physician's order applies to a minor, it must include a certification by two
            88333     physicians that in their clinical judgment an order to withhold life sustaining treatment is in the
            88334     best interest of the individual.
            88335         (c) The physician order is binding upon emergency medical services providers only if
            88336     the physician order is in compliance with Subsections (2) and (4).
            88337         (2) (a) The Department of Health shall by administrative rule establish a uniform system
            88338     to allow emergency medical service providers to readily identify persons who have obtained a
            88339     physician order under this section.
            88340         (b) The system may provide for:
            88341         (i) personal, tamper-proof identifying bracelets;

            88342         (ii) forms;
            88343         (iii) the presence of the physician's orders on a form in compliance with Subsection (4)
            88344     and approved by the Department of Health; or
            88345         (iv) some other system approved by the Department of Health which clearly identifies
            88346     the individual as one who has a continued intent to be readily identified as a person with a
            88347     physician's order to withhold life sustaining procedures.
            88348         (3) An emergency medical services provider is not bound to act in accordance with a
            88349     physician order issued under this section unless the physician order complies with the
            88350     administrative rules adopted by the Department of Health in accordance with this section.
            88351         (4) A physician order made under this section shall be:
            88352         (a) in writing and on a form approved by the Department of Health;
            88353         (b) signed by:
            88354         (i) the declarant;
            88355         (ii) a person in the declarant's presence and by the declarant's expressed direction;
            88356         (iii) the parent or legal guardian of a minor; or
            88357         (iv) if the declarant does not have the ability to give current directions concerning the
            88358     declarant's care and treatment, the surrogate or class of surrogates with the highest priority
            88359     under Section 75-2a-111 ;
            88360         (c) dated;
            88361         (d) signed, completed, and certified by the declarant's licensed health care professional,
            88362     acting within the scope of practice; and
            88363         (e) if for a minor, in compliance with Subsection (1)(b).
            88364         (5) A physician order made under this section takes precedence over a directive made
            88365     under Section 75-2a-107 , but only to the extent of a conflict.
            88366         (6) An individual who wishes to revoke a physician order made under this section may
            88367     do so by:
            88368         (a) orally informing emergency service personnel;
            88369         (b) writing "void" across the form, or burning, tearing, or otherwise destroying or

            88370     defacing the document, bracelet, or other evidence of the physician order, or by asking another
            88371     person to do the same on the individual's behalf;
            88372         (c) signing or directing another person to sign a written revocation on the individual's
            88373     behalf;
            88374         (d) stating that the individual wishes to revoke the order in the presence of a witness
            88375     who is age 18 or older; or
            88376         (e) signing a new physician order.
            88377         (7) (a) The Department of Health shall adopt rules in accordance with [Title 63,
            88378     Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to:
            88379         (i) create the forms and systems required by Subsections (2) and (4); and
            88380         (ii) develop uniform instructions for the form established in Section 75-2a-117 .
            88381         (b) The Department of Health may assist others with training of health care
            88382     professionals regarding this chapter.
            88383         Section 2179. Section 76-6-513 is amended to read:
            88384          76-6-513. Definitions -- Unlawful dealing of property by a fiduciary -- Penalties.
            88385         (1) As used in this section:
            88386         (a) "Fiduciary" is as defined in Section 22-1-1 .
            88387         (b) "Financial institution" means "depository institution" and "trust company" as defined
            88388     in Section 7-1-103 .
            88389         (c) "Governmental entity" is as defined in Section [ 63-30d-102 ] 63G-7-102 .
            88390         (d) "Person" does not include a financial institution whose fiduciary functions are
            88391     supervised by the Department of Financial Institutions or a federal regulatory agency.
            88392         (e) "Property" is as defined in Section 76-6-401 .
            88393         (f) "Public monies" is as defined in Section 76-8-401 .
            88394         (2) A person is guilty of unlawfully dealing with property by a fiduciary if [he] the
            88395     person deals with property that has been entrusted to him as a fiduciary, or property of a
            88396     governmental entity, public monies, or of a financial institution, in a manner which [he] the
            88397     person knows is a violation of [his] the person's duty and which involves substantial risk of loss

            88398     or detriment to the owner or to a person for whose benefit the property was entrusted. A
            88399     violation of this Subsection (2) is punishable under Section 76-6-412 .
            88400         (3) (a) A person acting as a fiduciary is guilty of a violation of this subsection if,
            88401     without permission of the owner of the property or some other person with authority to give
            88402     permission, [he] the person pledges as collateral for a personal loan, or as collateral for the
            88403     benefit of some party, other than the owner or the person for whose benefit the property was
            88404     entrusted, the property that has been entrusted to the fiduciary.
            88405         (b) An offense under Subsection (3)(a) is punishable as:
            88406         (i) a felony of the second degree if the value of the property wrongfully pledged is or
            88407     exceeds $5,000;
            88408         (ii) a felony of the third degree if the value of the property wrongfully pledged is or
            88409     exceeds $1,000 but is less than $5,000;
            88410         (iii) a class A misdemeanor if the value of the property is or exceeds $300, but is less
            88411     than $1,000 or the actor has been twice before convicted of theft, robbery, burglary with intent
            88412     to commit theft, or unlawful dealing with property by a fiduciary; or
            88413         (iv) a class B misdemeanor if the value of the property is less than $300.
            88414         Section 2180. Section 76-7-317.1 is amended to read:
            88415          76-7-317.1. Creation of Abortion Litigation Trust Account.
            88416         (1) (a) There is created in the General Fund a restricted account known as the Abortion
            88417     Litigation Trust Account. All money received by the state from private sources for litigation
            88418     expenses connected with the defense of Senate Bill 23, passed in the 1991 Annual General
            88419     Session, shall be deposited in that account.
            88420         (b) On behalf of the Abortion Litigation Trust Account, the Division of Finance may
            88421     accept grants, gifts, bequests, or any money made available from any private sources to
            88422     implement this section.
            88423         (2) Money shall be appropriated by the Legislature from the account to the Office of the
            88424     Attorney General under [Title 63, Chapter 38] Title 63J, Chapter 1, Budgetary Procedures Act.
            88425         (3) The Abortion Litigation Trust Account may be used only for costs, expenses, and

            88426     attorneys fees connected with the defense of the abortion law identified in Subsection (1).
            88427         (4) Any funds remaining in the abortion litigation trust account after final appellate
            88428     procedures shall revert to the General Fund, to be first used to offset the monies expended by
            88429     the state in connection with litigation regarding Senate Bill 23.
            88430         Section 2181. Section 76-8-311.3 is amended to read:
            88431          76-8-311.3. Items prohibited in correctional and mental health facilities --
            88432      Penalties.
            88433         (1) As used in this section:
            88434         (a) "Contraband" means any item not specifically prohibited for possession by offenders
            88435     under this section or Title 58, Chapter 37, Utah Controlled Substances Act.
            88436         (b) "Controlled substance" means any substance defined as a controlled substance under
            88437     Title 58, Chapter 37, Utah Controlled Substances Act.
            88438         (c) "Correctional facility" means:
            88439         (i) any facility operated by or contracting with the Department of Corrections to house
            88440     offenders in either a secure or nonsecure setting;
            88441         (ii) any facility operated by a municipality or a county to house or detain criminal
            88442     offenders;
            88443         (iii) any juvenile detention facility; and
            88444         (iv) any building or grounds appurtenant to the facility or lands granted to the state,
            88445     municipality, or county for use as a correctional facility.
            88446         (d) "Medicine" means any prescription drug as defined in Title 58, Chapter 17b,
            88447     Pharmacy Practice Act, but does not include any controlled substances as defined in Title 58,
            88448     Chapter 37, Utah Controlled Substances Act.
            88449         (e) "Mental health facility" has the same meaning as defined in Section 62A-15-602 .
            88450         (f) "Offender" means a person in custody at a correctional facility.
            88451         (g) "Secure area" has the same meaning as provided in Section 76-8-311.1 .
            88452         (2) Notwithstanding Section 76-10-500 , a correctional or mental health facility may
            88453     provide by rule that no firearm, ammunition, dangerous weapon, implement of escape,

            88454     explosive, controlled substance, spirituous or fermented liquor, medicine, or poison in any
            88455     quantity may be:
            88456         (a) transported to or upon a correctional or mental health facility;
            88457         (b) sold or given away at any correctional or mental health facility;
            88458         (c) given to or used by any offender at a correctional or mental health facility; or
            88459         (d) knowingly or intentionally possessed at a correctional or mental health facility.
            88460         (3) It is a defense to any prosecution under this section if the accused in committing the
            88461     act made criminal by this section:
            88462         (a) with respect to a correctional facility operated by the Department of Corrections,
            88463     acted in conformity with departmental rule or policy;
            88464         (b) with respect to a correctional facility operated by a municipality, acted in conformity
            88465     with the policy of the municipality;
            88466         (c) with respect to a correctional facility operated by a county, acted in conformity with
            88467     the policy of the county; or
            88468         (d) with respect to a mental health facility, acted in conformity with the policy of the
            88469     mental health facility.
            88470         (4) (a) Any person who transports to or upon a correctional facility, or into a secure
            88471     area of a mental health facility, any firearm, ammunition, dangerous weapon, or implement of
            88472     escape with intent to provide or sell it to any offender, is guilty of a second degree felony.
            88473         (b) Any person who provides or sells to any offender at a correctional facility, or any
            88474     detainee at a secure area of a mental health facility, any firearm, ammunition, dangerous
            88475     weapon, or implement of escape is guilty of a second degree felony.
            88476         (c) Any offender who possesses at a correctional facility, or any detainee who possesses
            88477     at a secure area of a mental health facility, any firearm, ammunition, dangerous weapon, or
            88478     implement of escape is guilty of a second degree felony.
            88479         (d) Any person who, without the permission of the authority operating the correctional
            88480     facility or the secure area of a mental health facility, knowingly possesses at a correctional
            88481     facility or a secure area of a mental health facility any firearm, ammunition, dangerous weapon,

            88482     or implement of escape is guilty of a third degree felony.
            88483         (e) Any person violates Section 76-10-306 who knowingly or intentionally transports,
            88484     possesses, distributes, or sells any explosive in a correctional facility or mental health facility.
            88485         (5) (a) A person is guilty of a third degree felony who, without the permission of the
            88486     authority operating the correctional facility or secure area of a mental health facility, knowingly
            88487     transports to or upon a correctional facility or into a secure area of a mental health facility any:
            88488         (i) spirituous or fermented liquor;
            88489         (ii) medicine, whether or not lawfully prescribed for the offender; or
            88490         (iii) poison in any quantity.
            88491         (b) A person is guilty of a third degree felony who knowingly violates correctional or
            88492     mental health facility policy or rule by providing or selling to any offender at a correctional
            88493     facility or detainee within a secure area of a mental health facility any:
            88494         (i) spirituous or fermented liquor;
            88495         (ii) medicine, whether or not lawfully prescribed for the offender; or
            88496         (iii) poison in any quantity.
            88497         (c) An inmate is guilty of a third degree felony who, in violation of correctional or
            88498     mental health facility policy or rule, possesses at a correctional facility or in a secure area of a
            88499     mental health facility any:
            88500         (i) spirituous or fermented liquor;
            88501         (ii) medicine, other than medicine provided by the facility's health care providers in
            88502     compliance with facility policy; or
            88503         (iii) poison in any quantity.
            88504         (d) A person is guilty of a class A misdemeanor who, with the intent to directly or
            88505     indirectly provide or sell any tobacco product to an offender, directly or indirectly:
            88506         (i) transports, delivers, or distributes any tobacco product to an offender or on the
            88507     grounds of any correctional facility;
            88508         (ii) solicits, requests, commands, coerces, encourages, or intentionally aids another
            88509     person to transport any tobacco product to an offender or on any correctional facility, if the

            88510     person is acting with the mental state required for the commission of an offense; or
            88511         (iii) facilitates, arranges, or causes the transport of any tobacco product in violation of
            88512     this section to an offender or on the grounds of any correctional facility.
            88513         (e) A person is guilty of a class A misdemeanor who, without the permission of the
            88514     authority operating the correctional or mental health facility, fails to declare or knowingly
            88515     possesses at a correctional facility or in a secure area of a mental health facility any:
            88516         (i) spirituous or fermented liquor;
            88517         (ii) medicine; or
            88518         (iii) poison in any quantity.
            88519         (f) A person is guilty of a class B misdemeanor who, without the permission of the
            88520     authority operating the correctional facility, knowingly engages in any activity that would
            88521     facilitate the possession of any contraband by an offender in a correctional facility. The
            88522     provisions of Subsection (5)(d) regarding any tobacco product take precedence over this
            88523     Subsection (5)(f).
            88524         (g) Exemptions may be granted for worship for Native American inmates pursuant to
            88525     Section 64-13-40 .
            88526         (6) The possession, distribution, or use of a controlled substance at a correctional
            88527     facility or in a secure area of a mental health facility shall be prosecuted in accordance with Title
            88528     58, Chapter 37, Utah Controlled Substances Act.
            88529         (7) The department shall make rules under [Title 63, Chapter 46a] Title 63G, Chapter
            88530     3, Utah Administrative Rulemaking Act, to establish guidelines for providing written notice to
            88531     visitors that providing any tobacco product to offenders is a class A misdemeanor.
            88532         Section 2182. Section 76-8-317 is amended to read:
            88533          76-8-317. Refusal to comply with order to evacuate or other orders issued in a
            88534      local or state emergency -- Penalties.
            88535         (1) A person may not refuse to comply with an order to evacuate issued under this
            88536     chapter or refuse to comply with any other order issued by the governor in a state of an
            88537     emergency or by a chief executive officer in a local emergency under Sections [ 63-5a-3 ]

            88538      63K-4-201 or [ 63-5a-4 ] 63K-4-202 , if notice of the order has been given to that person.
            88539         (2) A person who violates this section is guilty of a class B misdemeanor.
            88540         Section 2183. Section 76-8-1101 is amended to read:
            88541          76-8-1101. Criminal offenses and penalties relating to revenue and taxation --
            88542      Rulemaking authority -- Statute of limitations.
            88543         (1) (a) As provided in Section 59-1-401 , criminal offenses and penalties are as provided
            88544     in Subsections (1)(b) through (e).
            88545         (b) (i) Any person who is required by Title 59, Revenue and Taxation, or any laws the
            88546     State Tax Commission administers or regulates to register with or obtain a license or permit
            88547     from the State Tax Commission, who operates without having registered or secured a license or
            88548     permit, or who operates when the registration, license, or permit is expired or not current, is
            88549     guilty of a class B misdemeanor.
            88550         (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (1)(b)(i), the
            88551     penalty may not:
            88552         (A) be less than $500; or
            88553         (B) exceed $1,000.
            88554         (c) (i) Any person who, with intent to evade any tax or requirement of Title 59,
            88555     Revenue and Taxation, or any lawful requirement of the State Tax Commission, fails to make,
            88556     render, sign, or verify any return or to supply any information within the time required by law,
            88557     or who makes, renders, signs, or verifies any false or fraudulent return or statement, or who
            88558     supplies any false or fraudulent information, is guilty of a third degree felony.
            88559         (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (1)(c)(i), the penalty
            88560     may not:
            88561         (A) be less than $1,000; or
            88562         (B) exceed $5,000.
            88563         (d) (i) Any person who intentionally or willfully attempts to evade or defeat any tax or
            88564     the payment of a tax is, in addition to other penalties provided by law, guilty of a second degree
            88565     felony.

            88566         (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (1)(d)(i), the penalty
            88567     may not:
            88568         (A) be less than $1,500; or
            88569         (B) exceed $25,000.
            88570         (e) (i) A person is guilty of a second degree felony if that person commits an act:
            88571         (A) described in Subsection (1)(e)(ii) with respect to one or more of the following
            88572     documents:
            88573         (I) a return;
            88574         (II) an affidavit;
            88575         (III) a claim; or
            88576         (IV) a document similar to Subsections (1)(e)(i)(A)(I) through (III); and
            88577         (B) subject to Subsection (1)(e)(iii), with knowledge that the document described in
            88578     Subsection (1)(e)(i)(A):
            88579         (I) is false or fraudulent as to any material matter; and
            88580         (II) could be used in connection with any material matter administered by the State Tax
            88581     Commission.
            88582         (ii) The following acts apply to Subsection (1)(e)(i):
            88583         (A) preparing any portion of a document described in Subsection (1)(e)(i)(A);
            88584         (B) presenting any portion of a document described in Subsection (1)(e)(i)(A);
            88585         (C) procuring any portion of a document described in Subsection (1)(e)(i)(A);
            88586         (D) advising in the preparation or presentation of any portion of a document described
            88587     in Subsection (1)(e)(i)(A);
            88588         (E) aiding in the preparation or presentation of any portion of a document described in
            88589     Subsection (1)(e)(i)(A);
            88590         (F) assisting in the preparation or presentation of any portion of a document described
            88591     in Subsection (1)(e)(i)(A); or
            88592         (G) counseling in the preparation or presentation of any portion of a document
            88593     described in Subsection (1)(e)(i)(A).

            88594         (iii) This Subsection (1)(e) applies:
            88595         (A) regardless of whether the person for which the document described in Subsection
            88596     (1)(e)(i)(A) is prepared or presented:
            88597         (I) knew of the falsity of the document described in Subsection (1)(e)(i)(A); or
            88598         (II) consented to the falsity of the document described in Subsection (1)(e)(i)(A); and
            88599         (B) in addition to any other penalty provided by law.
            88600         (iv) Notwithstanding Section 76-3-301 , for purposes of this Subsection (1)(e), the
            88601     penalty may not:
            88602         (A) be less than $1,500; or
            88603         (B) exceed $25,000.
            88604         (v) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            88605     Administrative Rulemaking Act, the State Tax Commission may make rules prescribing the
            88606     documents that are similar to Subsections (1)(e)(i)(A)(I) through (III).
            88607         (2) The statute of limitations for prosecution for a violation of this section is the later of
            88608     six years:
            88609         (a) from the date the tax should have been remitted; or
            88610         (b) after the day on which the person commits the criminal offense.
            88611         Section 2184. Section 76-10-526 is amended to read:
            88612          76-10-526. Criminal background check prior to purchase of a firearm -- Fee --
            88613      Exemption for concealed firearm permit holders.
            88614         (1) For purposes of this section, "valid permit to carry a concealed firearm" does not
            88615     include a temporary permit issued pursuant to Section 53-5-705 .
            88616         (2) To establish personal identification and residence in this state for purposes of this
            88617     part, a dealer shall require an individual receiving a firearm to present one photo identification
            88618     on a form issued by a governmental agency of the state.
            88619         (3) A criminal history background check is required for the sale of a firearm by a
            88620     licensed firearm dealer in the state.
            88621         (4) (a) An individual, except a dealer, purchasing a firearm from a dealer shall consent

            88622     in writing to a criminal background check, on a form provided by the division.
            88623         (b) The form shall contain the following information:
            88624         (i) the dealer identification number;
            88625         (ii) the name and address of the individual receiving the firearm;
            88626         (iii) the date of birth, height, weight, eye color, and hair color of the individual receiving
            88627     the firearm; and
            88628         (iv) the Social Security number or any other identification number of the individual
            88629     receiving the firearm.
            88630         (5) (a) The dealer shall send the form required by Subsection (4) to the division
            88631     immediately upon its completion.
            88632         (b) No dealer shall sell or transfer any firearm to an individual until the dealer has
            88633     provided the division with the information in Subsection (4) and has received approval from the
            88634     division under Subsection (7).
            88635         (6) The dealer shall make a request for criminal history background information by
            88636     telephone or other electronic means to the division and shall receive approval or denial of the
            88637     inquiry by telephone or other electronic means.
            88638         (7) When the dealer calls for or requests a criminal history background check, the
            88639     division shall:
            88640         (a) review the criminal history files, including juvenile court records, to determine if the
            88641     individual is prohibited from purchasing, possessing, or transferring a firearm by state or federal
            88642     law;
            88643         (b) inform the dealer that:
            88644         (i) the records indicate the individual is so prohibited; or
            88645         (ii) the individual is approved for purchasing, possessing, or transferring a firearm;
            88646         (c) provide the dealer with a unique transaction number for that inquiry; and
            88647         (d) provide a response to the requesting dealer during the call for a criminal
            88648     background, or by return call, or other electronic means, without delay, except in case of
            88649     electronic failure or other circumstances beyond the control of the division, the division shall

            88650     advise the dealer of the reason for the delay and give the dealer an estimate of the length of the
            88651     delay.
            88652         (8) (a) The division shall not maintain any records of the criminal history background
            88653     check longer than 20 days from the date of the dealer's request if the division determines that
            88654     the individual receiving the gun is not prohibited from purchasing, possessing, or transferring
            88655     the firearm under state or federal law.
            88656         (b) However, the division shall maintain a log of requests containing the dealer's federal
            88657     firearms number, the transaction number, and the transaction date for a period of 12 months.
            88658         (9) If the criminal history background check discloses information indicating that the
            88659     individual attempting to purchase the firearm is prohibited from purchasing, possessing, or
            88660     transferring a firearm, the division shall inform the law enforcement agency in the jurisdiction
            88661     where the person resides.
            88662         (10) If an individual is denied the right to purchase a firearm under this section, the
            88663     individual may review [his] the individual's criminal history information and may challenge or
            88664     amend the information as provided in Section 53-10-108 .
            88665         (11) The division shall make rules as provided in [Title 63, Chapter 46a] Title 63G,
            88666     Chapter 3, Utah Administrative Rulemaking Act, to ensure the identity, confidentiality, and
            88667     security of all records provided by the division pursuant to this part are in conformance with the
            88668     requirements of the Brady Handgun Violence Prevention Act, Pub. L. No. 103-159, 107 Stat.
            88669     1536 (1993).
            88670         (12) (a) (i) All dealers shall collect a criminal history background check fee which is
            88671     $7.50.
            88672         (ii) This fee remains in effect until changed by the division through the process under
            88673     Section [ 63-38-3.2 ] 63J-1-303 .
            88674         (b) (i) The dealer shall forward at one time all fees collected for criminal history
            88675     background checks performed during the month to the division by the last day of the month
            88676     following the sale of a firearm.
            88677         (ii) The division shall deposit the fees in the General Fund as dedicated credits to cover

            88678     the cost of administering and conducting the criminal history background check program.
            88679         (13) An individual with a concealed firearm permit issued pursuant to Title 53, Chapter
            88680     5, Part 7, Concealed Weapon Act, shall be exempt from the background check and
            88681     corresponding fee required in this section for the purchase of a firearm if:
            88682         (a) the individual presents [his] the individual's concealed firearm permit to the dealer
            88683     prior to purchase of the firearm; and
            88684         (b) the dealer verifies with the division that the individual's concealed firearm permit is
            88685     valid.
            88686         Section 2185. Section 76-10-1209 is amended to read:
            88687          76-10-1209. Injunctive relief -- Jurisdiction -- Consent to be sued -- Service of
            88688      process.
            88689         (1) The district courts of this state shall have full power, authority, and jurisdiction,
            88690     upon application by any county attorney or city attorney within their respective jurisdictions or
            88691     the attorney general, to issue any and all proper restraining orders, preliminary and permanent
            88692     injunctions, and any other writs and processes appropriate to carry out and enforce the
            88693     provisions of this part. No restraining order or injunction, however, shall issue except upon
            88694     notice to the person sought to be enjoined. That person shall be entitled to a trial of the issues
            88695     commencing within three days after filing of an answer to the complaint and a decision shall be
            88696     rendered by the court within two days after the conclusion of the trial. If a final order or
            88697     judgment of injunction is entered against the person sought to be enjoined, this final order or
            88698     judgment shall contain a provision directing the person to surrender to the sheriff of the county
            88699     in which the action was brought any pornographic material in [his] the person's possession
            88700     which is subject to the injunction; and the sheriff shall be directed to seize and destroy this
            88701     material.
            88702         (2) Any person not qualified to do business in the state who sends or brings any
            88703     pornographic material into the state with the intent to distribute or exhibit it to others in this
            88704     state thereby consents that [he] the person may be sued in any proceedings commenced under
            88705     this section and therefor appoints the director of the Division of Corporations and Commercial

            88706     Code to be the agent upon whom may be served all legal process against that person. Service of
            88707     process shall be made by serving a copy of same upon the director of the Division of
            88708     Corporations and Commercial Code or by filing the copy in that office, together with payment
            88709     of a fee determined by the division pursuant to Section [ 63-38-3.2 ] 63J-1-303 . This service
            88710     shall be sufficient service upon the defendant if:
            88711         (a) notice of the service and a copy of the process are within ten days thereafter sent by
            88712     mail by the prosecuting attorney to the defendant at the address of the defendant that appears
            88713     on any material exhibited or distributed, and if no address appears, then the last known address
            88714     of the defendant; and
            88715         (b) the prosecuting attorney's affidavit of compliance with the provisions of this
            88716     subsection are attached to the summons. The Division of Corporations and Commercial Code
            88717     shall keep a record of all the process served upon it under this section, showing the day and
            88718     hour of the service. Nothing in this subsection shall be construed to limit the operation of Rule
            88719     17(e) of the Utah Rules of Civil Procedure.
            88720         (3) This section shall not be construed in any way to limit the district courts in the
            88721     exercise of their jurisdiction under any other provision of law.
            88722         Section 2186. Section 76-10-1231 is amended to read:
            88723          76-10-1231. Data service providers -- Internet content harmful to minors.
            88724         (1) (a) Upon request by a consumer, a service provider shall filter content to prevent
            88725     the transmission of material harmful to minors to the consumer.
            88726         (b) A service provider complies with Subsection (1)(a) if it uses a generally accepted
            88727     and commercially reasonable method of filtering.
            88728         (2) At the time of a consumer's subscription to a service provider's service, or at the
            88729     time this section takes effect if the consumer subscribes to the service provider's service at the
            88730     time this section takes effect, the service provider shall notify the consumer in a conspicuous
            88731     manner that the consumer may request to have material harmful to minors blocked under
            88732     Subsection (1).
            88733         (3) (a) A service provider may comply with Subsection (1) by:

            88734         (i) providing in-network filtering to prevent receipt of material harmful to minors,
            88735     provided that the filtering does not affect or interfere with access to Internet content for
            88736     consumers who do not request filtering under Subsection (1); or
            88737         (ii) providing software, or engaging a third party to provide software, for
            88738     contemporaneous installation on the consumer's computer that blocks, in an easy-to-enable and
            88739     commercially reasonable manner, receipt of material harmful to minors.
            88740         (b) A service provider may charge a consumer for providing filtering under Subsection
            88741     (3)(a).
            88742         (4) If the attorney general determines that a service provider violates Subsection (1) or
            88743     (2), the attorney general shall:
            88744         (a) notify the service provider that the service provider is in violation of Subsection (1)
            88745     or (2); and
            88746         (b) notify the service provider that the service provider has 30 days to comply with the
            88747     provision being violated or be subject to Subsection (5).
            88748         (5) A service provider that violates Subsection (1) or (2) is:
            88749         (a) subject to a civil fine of $2,500 for each separate violation of Subsection (1) or (2),
            88750     up to $10,000 per day; and
            88751         (b) guilty of a class A misdemeanor if:
            88752         (i) the service provider knowingly or intentionally fails to comply with Subsection (1);
            88753     or
            88754         (ii) the service provider fails to provide the notice required by Subsection (2).
            88755         (6) A proceeding to impose a civil fine under Subsection (5)(a) may only be brought by
            88756     the attorney general in a court of competent jurisdiction.
            88757         (7) (a) The Division of Consumer Protection within the Department of Commerce shall,
            88758     in consultation with other entities as the Division of Consumer Protection considers appropriate,
            88759     test the effectiveness of a service provider's system for blocking material harmful to minors
            88760     under Subsection (1) at least annually.
            88761         (b) The results of testing by the Division of Consumer Protection under Subsection

            88762     (7)(a) shall be made available to:
            88763         (i) the service provider that is the subject of the test; and
            88764         (ii) the public.
            88765         (c) The Division of Consumer Protection shall make rules in accordance with [Title 63,
            88766     Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to fulfil its duties
            88767     under this section.
            88768         Section 2187. Section 76-10-1234 is amended to read:
            88769          76-10-1234. Rulemaking authority.
            88770         The Division of Consumer Protection shall make rules in accordance with [Title 63,
            88771     Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish
            88772     acceptable rating methods to be implemented by a content provider under Subsection
            88773      76-10-1233 (1).
            88774         Section 2188. Section 76-10-1311 is amended to read:
            88775          76-10-1311. Mandatory testing -- Retention of offender medical file -- Civil
            88776      liability.
            88777         (1) A person who has entered a plea of guilty, a plea of no contest, a plea of guilty and
            88778     mentally ill, or been found guilty for violation of Section 76-10-1302 , 76-10-1303 , or
            88779      76-10-1313 shall be required to submit to a mandatory test to determine if the offender is an
            88780     HIV positive individual. The mandatory test shall be required and conducted prior to
            88781     sentencing.
            88782         (2) If the mandatory test has not been conducted prior to sentencing, and the convicted
            88783     offender is already confined in a county jail or state prison, such person shall be tested while in
            88784     confinement.
            88785         (3) The local law enforcement agency shall cause the blood specimen of the offender as
            88786     defined in Subsection (1) confined in county jail to be taken and tested.
            88787         (4) The Department of Corrections shall cause the blood specimen of the offender
            88788     defined in Subsection (1) confined in any state prison to be taken and tested.
            88789         (5) The local law enforcement agency shall collect and retain in the offender's medical

            88790     file the following data:
            88791         (a) the HIV infection test results;
            88792         (b) a copy of the written notice as provided in Section 76-10-1312 ;
            88793         (c) photographic identification; and
            88794         (d) fingerprint identification.
            88795         (6) The local law enforcement agency shall classify the medical file as a private record
            88796     pursuant to Subsection [ 63-2-302 ] 63G-2-302 (1)(b) or a controlled record pursuant to Section
            88797     [ 63-2-303 ] 63G-2-304 .
            88798         (7) The person tested shall be responsible for the costs of testing, unless the person is
            88799     indigent. The costs will then be paid by the local law enforcement agency or the Department of
            88800     Corrections from the General Fund.
            88801         (8) (a) The laboratory performing testing shall report test results to only designated
            88802     officials in the Department of Corrections, the Department of Health, and the local law
            88803     enforcement agency submitting the blood specimen.
            88804         (b) Each department or agency shall designate those officials by written policy.
            88805         (c) Designated officials may release information identifying an offender under Section
            88806      76-10-1302 , 76-10-1303 , or 76-10-1313 who has tested HIV positive as provided under
            88807     Subsection [ 63-2-202 ] 63G-2-202 (1) and for purposes of prosecution pursuant to Section
            88808      76-10-1309 .
            88809         (9) (a) An employee of the local law enforcement agency, the Department of
            88810     Corrections, or the Department of Health who discloses the HIV test results under this section
            88811     is not civilly liable except when disclosure constitutes fraud or willful misconduct as provided in
            88812     Section [ 63-30d-202 ] 63G-7-202 .
            88813         (b) An employee of the local law enforcement agency, the Department of Corrections,
            88814     or the Department of Health who discloses the HIV test results under this section is not civilly
            88815     or criminally liable, except when disclosure constitutes a knowing violation of Section
            88816     [ 63-2-801 ] 63G-2-801 .
            88817         (10) When the medical file is released as provided in Section [ 63-2-803 ] 63G-2-803 ,

            88818     the local law enforcement agency, the Department of Corrections, or the Department of Health
            88819     or its officers or employees are not liable for damages for release of the medical file.
            88820         Section 2189. Section 76-10-1602 is amended to read:
            88821          76-10-1602. Definitions.
            88822         As used in this part:
            88823         (1) "Enterprise" means any individual, sole proprietorship, partnership, corporation,
            88824     business trust, association, or other legal entity, and any union or group of individuals
            88825     associated in fact although not a legal entity, and includes illicit as well as licit entities.
            88826         (2) "Pattern of unlawful activity" means engaging in conduct which constitutes the
            88827     commission of at least three episodes of unlawful activity, which episodes are not isolated, but
            88828     have the same or similar purposes, results, participants, victims, or methods of commission, or
            88829     otherwise are interrelated by distinguishing characteristics. Taken together, the episodes shall
            88830     demonstrate continuing unlawful conduct and be related either to each other or to the
            88831     enterprise. At least one of the episodes comprising a pattern of unlawful activity shall have
            88832     occurred after July 31, 1981. The most recent act constituting part of a pattern of unlawful
            88833     activity as defined by this part shall have occurred within five years of the commission of the
            88834     next preceding act alleged as part of the pattern.
            88835         (3) "Person" includes any individual or entity capable of holding a legal or beneficial
            88836     interest in property, including state, county, and local governmental entities.
            88837         (4) "Unlawful activity" means to directly engage in conduct or to solicit, request,
            88838     command, encourage, or intentionally aid another person to engage in conduct which would
            88839     constitute any offense described by the following crimes or categories of crimes, or to attempt
            88840     or conspire to engage in an act which would constitute any of those offenses, regardless of
            88841     whether the act is in fact charged or indicted by any authority or is classified as a misdemeanor
            88842     or a felony:
            88843         (a) any act prohibited by the criminal provisions of Title 13, Chapter 10, Unauthorized
            88844     Recording Practices Act;
            88845         (b) any act prohibited by the criminal provisions of Title 19, Environmental Quality

            88846     Code, Sections 19-1-101 through 19-7-109 ;
            88847         (c) taking, destroying, or possessing wildlife or parts of wildlife for the primary purpose
            88848     of sale, trade, or other pecuniary gain, in violation of Title 23, Chapter 13, Wildlife Resources
            88849     Code of Utah, or Section 23-20-4 ;
            88850         (d) false claims for medical benefits, kickbacks, and any other act prohibited by False
            88851     Claims Act, Sections 26-20-1 through 26-20-12 ;
            88852         (e) any act prohibited by the criminal provisions of Title 32A, Chapter 12, Criminal
            88853     Offenses;
            88854         (f) any act prohibited by the criminal provisions of Title 57, Chapter 11, Utah Uniform
            88855     Land Sales Practices Act;
            88856         (g) any act prohibited by the criminal provisions of Title 58, Chapter 37, Utah
            88857     Controlled Substances Act, or Title 58, Chapter 37b, Imitation Controlled Substances Act, Title
            88858     58, Chapter 37c, Utah Controlled Substance Precursor Act, or Title 58, Chapter 37d,
            88859     Clandestine Drug Lab Act;
            88860         (h) any act prohibited by the criminal provisions of Title 61, Chapter 1, Utah Uniform
            88861     Securities Act;
            88862         (i) any act prohibited by the criminal provisions of [Title 63, Chapter 56] Title 63G,
            88863     Chapter 6, Utah Procurement Code;
            88864         (j) assault or aggravated assault, Sections 76-5-102 and 76-5-103 ;
            88865         (k) a terroristic threat, Section 76-5-107 ;
            88866         (l) criminal homicide, Sections 76-5-201 , 76-5-202 , and 76-5-203 ;
            88867         (m) kidnapping or aggravated kidnapping, Sections 76-5-301 and 76-5-302 ;
            88868         (n) sexual exploitation of a minor, Section 76-5a-3 ;
            88869         (o) arson or aggravated arson, Sections 76-6-102 and 76-6-103 ;
            88870         (p) causing a catastrophe, Section 76-6-105 ;
            88871         (q) burglary or aggravated burglary, Sections 76-6-202 and 76-6-203 ;
            88872         (r) burglary of a vehicle, Section 76-6-204 ;
            88873         (s) manufacture or possession of an instrument for burglary or theft, Section 76-6-205 ;

            88874         (t) robbery or aggravated robbery, Sections 76-6-301 and 76-6-302 ;
            88875         (u) theft, Section 76-6-404 ;
            88876         (v) theft by deception, Section 76-6-405 ;
            88877         (w) theft by extortion, Section 76-6-406 ;
            88878         (x) receiving stolen property, Section 76-6-408 ;
            88879         (y) theft of services, Section 76-6-409 ;
            88880         (z) forgery, Section 76-6-501 ;
            88881         (aa) fraudulent use of a credit card, Sections 76-6-506.1 , 76-6-506.2 , and 76-6-506.4 ;
            88882         (bb) deceptive business practices, Section 76-6-507 ;
            88883         (cc) bribery or receiving bribe by person in the business of selection, appraisal, or
            88884     criticism of goods, Section 76-6-508 ;
            88885         (dd) bribery of a labor official, Section 76-6-509 ;
            88886         (ee) defrauding creditors, Section 76-6-511 ;
            88887         (ff) acceptance of deposit by insolvent financial institution, Section 76-6-512 ;
            88888         (gg) unlawful dealing with property by fiduciary, Section 76-6-513 ;
            88889         (hh) bribery or threat to influence contest, Section 76-6-514 ;
            88890         (ii) making a false credit report, Section 76-6-517 ;
            88891         (jj) criminal simulation, Section 76-6-518 ;
            88892         (kk) criminal usury, Section 76-6-520 ;
            88893         (ll) fraudulent insurance act, Section 76-6-521 ;
            88894         (mm) retail theft, Section 76-6-602 ;
            88895         (nn) computer crimes, Section 76-6-703 ;
            88896         (oo) identity fraud, Section 76-6-1102 ;
            88897         (pp) sale of a child, Section 76-7-203 ;
            88898         (qq) bribery to influence official or political actions, Section 76-8-103 ;
            88899         (rr) threats to influence official or political action, Section 76-8-104 ;
            88900         (ss) receiving bribe or bribery by public servant, Section 76-8-105 ;
            88901         (tt) receiving bribe or bribery for endorsement of person as public servant, Section

            88902      76-8-106 ;
            88903         (uu) official misconduct, Sections 76-8-201 and 76-8-202 ;
            88904         (vv) obstruction of justice, Section 76-8-306 ;
            88905         (ww) acceptance of bribe or bribery to prevent criminal prosecution, Section 76-8-308 ;
            88906         (xx) false or inconsistent material statements, Section 76-8-502 ;
            88907         (yy) false or inconsistent statements, Section 76-8-503 ;
            88908         (zz) written false statements, Section 76-8-504 ;
            88909         (aaa) tampering with a witness or soliciting or receiving a bribe, Section 76-8-508 ;
            88910         (bbb) retaliation against a witness, victim, or informant, Section 76-8-508.3 ;
            88911         (ccc) extortion or bribery to dismiss criminal proceeding, Section 76-8-509 ;
            88912         (ddd) public assistance fraud in violation of Section 76-8-1203 , 76-8-1204 , or
            88913      76-8-1205 ;
            88914         (eee) unemployment insurance fraud, Section 76-8-1301 ;
            88915         (fff) intentionally or knowingly causing one animal to fight with another, Subsection
            88916      76-9-301 (1)(f);
            88917         (ggg) possession, use, or removal of explosives, chemical, or incendiary devices or
            88918     parts, Section 76-10-306 ;
            88919         (hhh) delivery to common carrier, mailing, or placement on premises of an incendiary
            88920     device, Section 76-10-307 ;
            88921         (iii) possession of a deadly weapon with intent to assault, Section 76-10-507 ;
            88922         (jjj) unlawful marking of pistol or revolver, Section 76-10-521 ;
            88923         (kkk) alteration of number or mark on pistol or revolver, Section 76-10-522 ;
            88924         (lll) forging or counterfeiting trademarks, trade name, or trade device, Section
            88925      76-10-1002 ;
            88926         (mmm) selling goods under counterfeited trademark, trade name, or trade devices,
            88927     Section 76-10-1003 ;
            88928         (nnn) sales in containers bearing registered trademark of substituted articles, Section
            88929      76-10-1004 ;

            88930         (ooo) selling or dealing with article bearing registered trademark or service mark with
            88931     intent to defraud, Section 76-10-1006 ;
            88932         (ppp) gambling, Section 76-10-1102 ;
            88933         (qqq) gambling fraud, Section 76-10-1103 ;
            88934         (rrr) gambling promotion, Section 76-10-1104 ;
            88935         (sss) possessing a gambling device or record, Section 76-10-1105 ;
            88936         (ttt) confidence game, Section 76-10-1109 ;
            88937         (uuu) distributing pornographic material, Section 76-10-1204 ;
            88938         (vvv) inducing acceptance of pornographic material, Section 76-10-1205 ;
            88939         (www) dealing in harmful material to a minor, Section 76-10-1206 ;
            88940         (xxx) distribution of pornographic films, Section 76-10-1222 ;
            88941         (yyy) indecent public displays, Section 76-10-1228 ;
            88942         (zzz) prostitution, Section 76-10-1302 ;
            88943         (aaaa) aiding prostitution, Section 76-10-1304 ;
            88944         (bbbb) exploiting prostitution, Section 76-10-1305 ;
            88945         (cccc) aggravated exploitation of prostitution, Section 76-10-1306 ;
            88946         (dddd) communications fraud, Section 76-10-1801 ;
            88947         (eeee) any act prohibited by the criminal provisions of Title 76, Chapter 10, Part 19,
            88948     Money Laundering and Currency Transaction Reporting Act;
            88949         (ffff) any act prohibited by the criminal provisions of the laws governing taxation in this
            88950     state; and
            88951         (gggg) any act illegal under the laws of the United States and enumerated in Title 18,
            88952     Section 1961 (1)(B), (C), and (D) of the United States Code.
            88953         Section 2190. Section 77-2-4.2 is amended to read:
            88954          77-2-4.2. Compromise of traffic charges -- Limitations.
            88955         (1) As used in this section:
            88956         (a) "Compromise" means referral of a person charged with a traffic violation to traffic
            88957     school or other school, class, or remedial or rehabilitative program.

            88958         (b) "Traffic violation" means any charge for which bail may be forfeited in lieu of
            88959     appearance, by citation or information, of a violation of:
            88960         (i) Title 41, Chapter 6a, Traffic Code, amounting to:
            88961         (A) a class B misdemeanor;
            88962         (B) a class C misdemeanor; or
            88963         (C) an infraction; or
            88964         (ii) any local traffic ordinance.
            88965         (2) Any compromise of a traffic violation shall be done pursuant to a plea in abeyance
            88966     agreement as provided in Title 77, Chapter 2a, Pleas in Abeyance, except:
            88967         (a) when the criminal prosecution is dismissed pursuant to Section 77-2-4 ; or
            88968         (b) when there is a plea by the defendant to and entry of a judgment by a court for the
            88969     offense originally charged or for an amended charge.
            88970         (3) In all cases which are compromised pursuant to the provisions of Subsection (2):
            88971         (a) the court, taking into consideration the offense charged, shall collect a plea in
            88972     abeyance fee which shall:
            88973         (i) be subject to the same surcharge as if imposed on a criminal fine;
            88974         (ii) be allocated subject to the surcharge as if paid as a criminal fine under Section
            88975      78-3-14.5 and a surcharge under [Title 63, Chapter 63a] Title 51, Chapter 9, Part 4, Crime
            88976     Victim Reparation Trust, Public Safety Support Funds, Substance Abuse Prevention Account,
            88977     and Services for Victims of Domestic Violence Account; and
            88978         (iii) be not more than $25 greater than the bail designated in the Uniform Bail Schedule;
            88979     or
            88980         (b) if no plea in abeyance fee is collected, a surcharge on the fee charged for the traffic
            88981     school or other school, class, or rehabilitative program shall be collected, which surcharge shall:
            88982         (i) be computed, assessed, collected, and remitted in the same manner as if the traffic
            88983     school fee and surcharge had been imposed as a criminal fine and surcharge; and
            88984         (ii) be subject to the financial requirements contained in [Title 63, Chapter 63a] Title
            88985     51, Chapter 9, Part 4, Crime Victim Reparation Trust, Public Safety Support Funds, Substance

            88986     Abuse Prevention Account, and Services for Victims of Domestic Violence Account.
            88987         (4) If a written plea in abeyance agreement is provided, or the defendant requests a
            88988     written accounting, an itemized statement of all amounts assessed by the court shall be
            88989     provided, including:
            88990         (a) the Uniform Bail Schedule amount;
            88991         (b) the amount of any surcharges being assessed; and
            88992         (c) the amount of the plea in abeyance fee.
            88993         Section 2191. Section 77-2a-3 is amended to read:
            88994          77-2a-3. Manner of entry of plea -- Powers of court.
            88995         (1) (a) Acceptance of any plea in anticipation of a plea in abeyance agreement shall be
            88996     done in full compliance with the provisions of Rule 11, Utah Rules of Criminal Procedure.
            88997         (b) In cases charging offenses for which bail may be forfeited, a plea in abeyance
            88998     agreement may be entered into without a personal appearance before a magistrate.
            88999         (2) A plea in abeyance agreement may provide that the court may, upon finding that the
            89000     defendant has successfully completed the terms of the agreement:
            89001         (a) reduce the degree of the offense and enter judgment of conviction and impose
            89002     sentence for a lower degree of offense; or
            89003         (b) allow withdrawal of defendant's plea and order the dismissal of the case.
            89004         (3) Upon finding that a defendant has successfully completed the terms of a plea in
            89005     abeyance agreement, the court may reduce the degree of the offense or dismiss the case only as
            89006     provided in the plea in abeyance agreement or as agreed to by all parties. Upon sentencing a
            89007     defendant for any lesser offense pursuant to a plea in abeyance agreement, the court may not
            89008     invoke Section 76-3-402 to further reduce the degree of the offense.
            89009         (4) The court may require the Department of Corrections to assist in the administration
            89010     of the plea in abeyance agreement as if the defendant were on probation to the court under
            89011     Section 77-18-1 .
            89012         (5) The terms of a plea in abeyance agreement may include:
            89013         (a) an order that the defendant pay a nonrefundable plea in abeyance fee, with a

            89014     surcharge based on the amount of the plea in abeyance fee, both of which shall be allocated in
            89015     the same manner as if paid as a fine for a criminal conviction under Section 78-3-14.5 and a
            89016     surcharge under [Title 63, Chapter 63a] Title 51, Chapter 9, Part 4, Crime Victim Reparation
            89017     Trust, Public Safety Support Funds, Substance Abuse Prevention Account, and Services for
            89018     Victims of Domestic Violence Account, and which may not exceed in amount the maximum fine
            89019     and surcharge which could have been imposed upon conviction and sentencing for the same
            89020     offense;
            89021         (b) an order that the defendant pay restitution to the victims of [his] the defendant's
            89022     actions as provided in Title 77, Chapter 38a, Crime Victims Restitution Act;
            89023         (c) an order that the defendant pay the costs of any remedial or rehabilitative program
            89024     required by the terms of the agreement; and
            89025         (d) an order that the defendant comply with any other conditions which could have been
            89026     imposed as conditions of probation upon conviction and sentencing for the same offense.
            89027         (6) A court may not hold a plea in abeyance without the consent of both the
            89028     prosecuting attorney and the defendant. A decision by a prosecuting attorney not to agree to a
            89029     plea in abeyance is final.
            89030         (7) No plea may be held in abeyance in any case involving a sexual offense against a
            89031     victim who is under the age of 14.
            89032         (8) Beginning on July 1, 2008, no plea may be held in abeyance in any case involving a
            89033     driving under the influence violation under Section 41-6a-502 .
            89034         Section 2192. Section 77-10a-5 is amended to read:
            89035          77-10a-5. Grand jurors -- Qualification and selection -- Limits on disclosure.
            89036         (1) Grand jurors shall meet the qualifications provided for jurors generally in Title 78,
            89037     Chapter 46, Jury Selection and Service Act. Grand jurors shall be selected from the qualified
            89038     jury list as provided in Section 78-46-12 .
            89039         (2) The names of grand jurors are classified as protected records under [Title 63,
            89040     Chapter 2] Title 63G, Chapter 2, Government Records and Access Management Act.
            89041         Section 2193. Section 77-18-1 is amended to read:

            89042          77-18-1. Suspension of sentence -- Pleas held in abeyance -- Probation --
            89043      Supervision -- Presentence investigation -- Standards -- Confidentiality -- Terms and
            89044      conditions -- Termination, revocation, modification, or extension -- Hearings -- Electronic
            89045      monitoring.
            89046         (1) On a plea of guilty or no contest entered by a defendant in conjunction with a plea
            89047     in abeyance agreement, the court may hold the plea in abeyance as provided in Title 77, Chapter
            89048     2a, Pleas in Abeyance, and under the terms of the plea in abeyance agreement.
            89049         (2) (a) On a plea of guilty, guilty and mentally ill, no contest, or conviction of any crime
            89050     or offense, the court may, after imposing sentence, suspend the execution of the sentence and
            89051     place the defendant on probation. The court may place the defendant:
            89052         (i) on probation under the supervision of the Department of Corrections except in cases
            89053     of class C misdemeanors or infractions;
            89054         (ii) on probation with an agency of local government or with a private organization; or
            89055         (iii) on bench probation under the jurisdiction of the sentencing court.
            89056         (b) (i) The legal custody of all probationers under the supervision of the department is
            89057     with the department.
            89058         (ii) The legal custody of all probationers under the jurisdiction of the sentencing court is
            89059     vested as ordered by the court.
            89060         (iii) The court has continuing jurisdiction over all probationers.
            89061         (3) (a) The department shall establish supervision and presentence investigation
            89062     standards for all individuals referred to the department. These standards shall be based on:
            89063         (i) the type of offense;
            89064         (ii) the demand for services;
            89065         (iii) the availability of agency resources;
            89066         (iv) the public safety; and
            89067         (v) other criteria established by the department to determine what level of services shall
            89068     be provided.
            89069         (b) Proposed supervision and investigation standards shall be submitted to the Judicial

            89070     Council and the Board of Pardons and Parole on an annual basis for review and comment prior
            89071     to adoption by the department.
            89072         (c) The Judicial Council and the department shall establish procedures to implement the
            89073     supervision and investigation standards.
            89074         (d) The Judicial Council and the department shall annually consider modifications to the
            89075     standards based upon criteria in Subsection (3)(a) and other criteria as they consider
            89076     appropriate.
            89077         (e) The Judicial Council and the department shall annually prepare an impact report and
            89078     submit it to the appropriate legislative appropriations subcommittee.
            89079         (4) Notwithstanding other provisions of law, the department is not required to
            89080     supervise the probation of persons convicted of class B or C misdemeanors or infractions or to
            89081     conduct presentence investigation reports on class C misdemeanors or infractions. However,
            89082     the department may supervise the probation of class B misdemeanants in accordance with
            89083     department standards.
            89084         (5) (a) Prior to the imposition of any sentence, the court may, with the concurrence of
            89085     the defendant, continue the date for the imposition of sentence for a reasonable period of time
            89086     for the purpose of obtaining a presentence investigation report from the department or
            89087     information from other sources about the defendant.
            89088         (b) The presentence investigation report shall include a victim impact statement
            89089     according to guidelines set in Section 77-38a-203 describing the effect of the crime on the
            89090     victim and the victim's family.
            89091         (c) The presentence investigation report shall include a specific statement of pecuniary
            89092     damages, accompanied by a recommendation from the department regarding the payment of
            89093     restitution with interest by the defendant in accordance with Title 77, Chapter 38a, Crime
            89094     Victims Restitution Act.
            89095         (d) The presentence investigation report shall include:
            89096         (i) findings from any screening and any assessment of the offender conducted under
            89097     Section 77-18-1.1 ; and

            89098         (ii) recommendations for treatment of the offender.
            89099         (e) The contents of the presentence investigation report, including any diagnostic
            89100     evaluation report ordered by the court under Section 76-3-404 , are protected and are not
            89101     available except by court order for purposes of sentencing as provided by rule of the Judicial
            89102     Council or for use by the department.
            89103         (6) (a) The department shall provide the presentence investigation report to the
            89104     defendant's attorney, or the defendant if not represented by counsel, the prosecutor, and the
            89105     court for review, three working days prior to sentencing. Any alleged inaccuracies in the
            89106     presentence investigation report, which have not been resolved by the parties and the
            89107     department prior to sentencing, shall be brought to the attention of the sentencing judge, and
            89108     the judge may grant an additional ten working days to resolve the alleged inaccuracies of the
            89109     report with the department. If after ten working days the inaccuracies cannot be resolved, the
            89110     court shall make a determination of relevance and accuracy on the record.
            89111         (b) If a party fails to challenge the accuracy of the presentence investigation report at
            89112     the time of sentencing, that matter shall be considered to be waived.
            89113         (7) At the time of sentence, the court shall receive any testimony, evidence, or
            89114     information the defendant or the prosecuting attorney desires to present concerning the
            89115     appropriate sentence. This testimony, evidence, or information shall be presented in open court
            89116     on record and in the presence of the defendant.
            89117         (8) While on probation, and as a condition of probation, the court may require that the
            89118     defendant:
            89119         (a) perform any or all of the following:
            89120         (i) pay, in one or several sums, any fine imposed at the time of being placed on
            89121     probation;
            89122         (ii) pay amounts required under Title 77, Chapter 32a, Defense Costs;
            89123         (iii) provide for the support of others for whose support [he] the defendant is legally
            89124     liable;
            89125         (iv) participate in available treatment programs, including any treatment program in

            89126     which the defendant is currently participating, if the program is acceptable to the court;
            89127         (v) serve a period of time, not to exceed one year, in a county jail designated by the
            89128     department, after considering any recommendation by the court as to which jail the court finds
            89129     most appropriate;
            89130         (vi) serve a term of home confinement, which may include the use of electronic
            89131     monitoring;
            89132         (vii) participate in compensatory service restitution programs, including the
            89133     compensatory service program provided in Section 78-11-20.7 ;
            89134         (viii) pay for the costs of investigation, probation, and treatment services;
            89135         (ix) make restitution or reparation to the victim or victims with interest in accordance
            89136     with Title 77, Chapter 38a, Crime Victims Restitution Act; and
            89137         (x) comply with other terms and conditions the court considers appropriate; and
            89138         (b) if convicted on or after May 5, 1997:
            89139         (i) complete high school classwork and obtain a high school graduation diploma, a GED
            89140     certificate, or a vocational certificate at the defendant's own expense if the defendant has not
            89141     received the diploma, GED certificate, or vocational certificate prior to being placed on
            89142     probation; or
            89143         (ii) provide documentation of the inability to obtain one of the items listed in Subsection
            89144     (8)(b)(i) because of:
            89145         (A) a diagnosed learning disability; or
            89146         (B) other justified cause.
            89147         (9) The department shall collect and disburse the account receivable as defined by
            89148     Section 76-3-201.1 , with interest and any other costs assessed under Section 64-13-21 during:
            89149         (a) the parole period and any extension of that period in accordance with Subsection
            89150      77-27-6 (4); and
            89151         (b) the probation period in cases for which the court orders supervised probation and
            89152     any extension of that period by the department in accordance with Subsection (10).
            89153         (10) (a) (i) Probation may be terminated at any time at the discretion of the court or

            89154     upon completion without violation of 36 months probation in felony or class A misdemeanor
            89155     cases, or 12 months in cases of class B or C misdemeanors or infractions.
            89156         (ii) (A) If, upon expiration or termination of the probation period under Subsection
            89157     (10)(a)(i), there remains an unpaid balance upon the account receivable as defined in Section
            89158      76-3-201.1 , the court may retain jurisdiction of the case and continue the defendant on bench
            89159     probation for the limited purpose of enforcing the payment of the account receivable.
            89160         (B) In accordance with Section 77-18-6 , the court shall record in the registry of civil
            89161     judgments any unpaid balance not already recorded and immediately transfer responsibility to
            89162     collect the account to the Office of State Debt Collection.
            89163         (iii) Upon motion of the Office of State Debt Collection, prosecutor, victim, or upon its
            89164     own motion, the court may require the defendant to show cause why [his] the defendant's
            89165     failure to pay should not be treated as contempt of court.
            89166         (b) (i) The department shall notify the sentencing court, the Office of State Debt
            89167     Collection, and the prosecuting attorney in writing in advance in all cases when termination of
            89168     supervised probation will occur by law.
            89169         (ii) The notification shall include a probation progress report and complete report of
            89170     details on outstanding accounts receivable.
            89171         (11) (a) (i) Any time served by a probationer outside of confinement after having been
            89172     charged with a probation violation and prior to a hearing to revoke probation does not
            89173     constitute service of time toward the total probation term unless the probationer is exonerated
            89174     at a hearing to revoke the probation.
            89175         (ii) Any time served in confinement awaiting a hearing or decision concerning
            89176     revocation of probation does not constitute service of time toward the total probation term
            89177     unless the probationer is exonerated at the hearing.
            89178         (b) The running of the probation period is tolled upon the filing of a violation report
            89179     with the court alleging a violation of the terms and conditions of probation or upon the issuance
            89180     of an order to show cause or warrant by the court.
            89181         (12) (a) (i) Probation may not be modified or extended except upon waiver of a hearing

            89182     by the probationer or upon a hearing and a finding in court that the probationer has violated the
            89183     conditions of probation.
            89184         (ii) Probation may not be revoked except upon a hearing in court and a finding that the
            89185     conditions of probation have been violated.
            89186         (b) (i) Upon the filing of an affidavit alleging with particularity facts asserted to
            89187     constitute violation of the conditions of probation, the court that authorized probation shall
            89188     determine if the affidavit establishes probable cause to believe that revocation, modification, or
            89189     extension of probation is justified.
            89190         (ii) If the court determines there is probable cause, it shall cause to be served on the
            89191     defendant a warrant for [his] the defendant's arrest or a copy of the affidavit and an order to
            89192     show cause why [his] the defendant's probation should not be revoked, modified, or extended.
            89193         (c) (i) The order to show cause shall specify a time and place for the hearing and shall
            89194     be served upon the defendant at least five days prior to the hearing.
            89195         (ii) The defendant shall show good cause for a continuance.
            89196         (iii) The order to show cause shall inform the defendant of a right to be represented by
            89197     counsel at the hearing and to have counsel appointed for him if [he] the defendant is indigent.
            89198         (iv) The order shall also inform the defendant of a right to present evidence.
            89199         (d) (i) At the hearing, the defendant shall admit or deny the allegations of the affidavit.
            89200         (ii) If the defendant denies the allegations of the affidavit, the prosecuting attorney shall
            89201     present evidence on the allegations.
            89202         (iii) The persons who have given adverse information on which the allegations are based
            89203     shall be presented as witnesses subject to questioning by the defendant unless the court for good
            89204     cause otherwise orders.
            89205         (iv) The defendant may call witnesses, appear and speak in [his] the defendant's own
            89206     behalf, and present evidence.
            89207         (e) (i) After the hearing the court shall make findings of fact.
            89208         (ii) Upon a finding that the defendant violated the conditions of probation, the court
            89209     may order the probation revoked, modified, continued, or that the entire probation term

            89210     commence anew.
            89211         (iii) If probation is revoked, the defendant shall be sentenced or the sentence previously
            89212     imposed shall be executed.
            89213         (13) The court may order the defendant to commit himself to the custody of the
            89214     Division of Substance Abuse and Mental Health for treatment at the Utah State Hospital as a
            89215     condition of probation or stay of sentence, only after the superintendent of the Utah State
            89216     Hospital or [his] the superintendent's designee has certified to the court that:
            89217         (a) the defendant is appropriate for and can benefit from treatment at the state hospital;
            89218         (b) treatment space at the hospital is available for the defendant; and
            89219         (c) persons described in Subsection 62A-15-610 (2)(g) are receiving priority for
            89220     treatment over the defendants described in this Subsection (13).
            89221         (14) Presentence investigation reports, including presentence diagnostic evaluations, are
            89222     classified protected in accordance with [Title 63, Chapter 2] Title 63G, Chapter 2, Government
            89223     Records Access and Management Act. Notwithstanding Sections [ 63-2-403 ] 63G-2-403 and
            89224     [ 63-2-404 ] 63G-2-404 , the State Records Committee may not order the disclosure of a
            89225     presentence investigation report. Except for disclosure at the time of sentencing pursuant to
            89226     this section, the department may disclose the presentence investigation only when:
            89227         (a) ordered by the court pursuant to Subsection [ 63-2-202 ] 63G-2-202 (7);
            89228         (b) requested by a law enforcement agency or other agency approved by the department
            89229     for purposes of supervision, confinement, and treatment of the offender;
            89230         (c) requested by the Board of Pardons and Parole;
            89231         (d) requested by the subject of the presentence investigation report or the subject's
            89232     authorized representative; or
            89233         (e) requested by the victim of the crime discussed in the presentence investigation
            89234     report or the victim's authorized representative, provided that the disclosure to the victim shall
            89235     include only information relating to statements or materials provided by the victim, to the
            89236     circumstances of the crime including statements by the defendant, or to the impact of the crime
            89237     on the victim or the victim's household.

            89238         (15) (a) The court shall consider home confinement as a condition of probation under
            89239     the supervision of the department, except as provided in Sections 76-3-406 and 76-5-406.5 .
            89240         (b) The department shall establish procedures and standards for home confinement,
            89241     including electronic monitoring, for all individuals referred to the department in accordance with
            89242     Subsection (16).
            89243         (16) (a) If the court places the defendant on probation under this section, it may order
            89244     the defendant to participate in home confinement through the use of electronic monitoring as
            89245     described in this section until further order of the court.
            89246         (b) The electronic monitoring shall alert the department and the appropriate law
            89247     enforcement unit of the defendant's whereabouts.
            89248         (c) The electronic monitoring device shall be used under conditions which require:
            89249         (i) the defendant to wear an electronic monitoring device at all times; and
            89250         (ii) that a device be placed in the home of the defendant, so that the defendant's
            89251     compliance with the court's order may be monitored.
            89252         (d) If a court orders a defendant to participate in home confinement through electronic
            89253     monitoring as a condition of probation under this section, it shall:
            89254         (i) place the defendant on probation under the supervision of the Department of
            89255     Corrections;
            89256         (ii) order the department to place an electronic monitoring device on the defendant and
            89257     install electronic monitoring equipment in the residence of the defendant; and
            89258         (iii) order the defendant to pay the costs associated with home confinement to the
            89259     department or the program provider.
            89260         (e) The department shall pay the costs of home confinement through electronic
            89261     monitoring only for those persons who have been determined to be indigent by the court.
            89262         (f) The department may provide the electronic monitoring described in this section
            89263     either directly or by contract with a private provider.
            89264         Section 2194. Section 77-18-11 is amended to read:
            89265          77-18-11. Petition -- Expungement of conviction -- Certificate of eligibility -- Fee

            89266      -- Notice -- Written evaluation -- Objections -- Hearing.
            89267         (1) A person convicted of a crime may petition the convicting court for an expungement
            89268     of the record of conviction.
            89269         (2) (a) The court shall require receipt of a certificate of eligibility issued by the division
            89270     under Section 77-18-12 .
            89271         (b) The fee for each certificate of eligibility is $25. This fee remains in effect until
            89272     changed by the division through the process under Section [ 63-38-3.2 ] 63J-1-303 .
            89273         (c) Funds generated under Subsection (2)(b) shall be deposited in the General Fund as a
            89274     dedicated credit by the department to cover the costs incurred in providing the information.
            89275         (3) The petition and certificate of eligibility shall be filed with the court and served upon
            89276     the prosecuting attorney and the Department of Corrections.
            89277         (4) A victim shall receive notice of a petition for expungement if, prior to the entry of
            89278     an expungement order, the victim or, in the case of a minor or a person who is incapacitated or
            89279     deceased, the victim's next of kin or authorized representative, submits a written and signed
            89280     request for notice to the office of the Department of Corrections in the judicial district in which
            89281     the crime occurred or judgment was entered.
            89282         (5) The Department of Corrections shall serve notice of the expungement request by
            89283     first-class mail to the victim at the most recent address of record on file with the department.
            89284     The notice shall include a copy of the petition, certificate of eligibility, and statutes and rules
            89285     applicable to the petition.
            89286         (6) The court in its discretion may request a written evaluation by Adult Parole and
            89287     Probation of the Department of Corrections.
            89288         (a) The evaluation shall include a recommendation concerning the petition for
            89289     expungement.
            89290         (b) If expungement is recommended, the evaluation shall include certification that the
            89291     petitioner has completed all requirements of sentencing and probation or parole and state any
            89292     rationale that would support or refute consideration for expungement.
            89293         (c) The conclusions and recommendations contained in the evaluation shall be provided

            89294     to the petitioner and the prosecuting attorney.
            89295         (7) If the prosecuting attorney or a victim submits a written objection to the court
            89296     concerning the petition within 30 days after service of the notice, or if the petitioner objects to
            89297     the conclusions and recommendations in the evaluation within 15 days after receipt of the
            89298     conclusions and recommendations, the court shall set a date for a hearing and notify the
            89299     prosecuting attorney for the jurisdiction, the petitioner, and the victim of the date set for the
            89300     hearing.
            89301         (8) Any person who has relevant information about the petitioner may testify at the
            89302     hearing.
            89303         (9) The prosecuting attorney may respond to the court with a recommendation or
            89304     objection within 30 days.
            89305         (10) If an objection is not received under Subsection (7), the expungement may be
            89306     granted without a hearing.
            89307         (11) A court may not expunge a conviction of:
            89308         (a) a capital felony;
            89309         (b) a first degree felony;
            89310         (c) a second degree forcible felony;
            89311         (d) any sexual act against a minor; or
            89312         (e) an offense for which a certificate of eligibility may not be issued under Section
            89313      77-18-12 .
            89314         Section 2195. Section 77-18-15 is amended to read:
            89315          77-18-15. Retention of expunged records -- Agencies.
            89316         (1) The division shall keep, index, and maintain all expunged records of arrests and
            89317     convictions.
            89318         (2) Employees of the division may not divulge any information contained in its index to
            89319     any person or agency without a court order, except to the following:
            89320         (a) the Board of Pardons and Parole;
            89321         (b) the Peace Officer Standards and Training;

            89322         (c) federal authorities, unless prohibited by federal law;
            89323         (d) the Division of Occupational and Professional Licensing; and
            89324         (e) the State Office of Education.
            89325         (3) The division may also use the information in its index for the purpose of establishing
            89326     good character for issuance of a concealed firearm permit as provided in Section 53-5-704 .
            89327         (4) A person whose records are released under Subsection (2) shall be given a
            89328     reasonable opportunity by the recipient agency to challenge and explain any information in the
            89329     records and to challenge the relevancy of that information before a final determination is made
            89330     by the agency.
            89331         (5) A court may permit inspection or release of an expunged record only upon petition
            89332     by the person who is the subject of the record and only to the persons named in the petition.
            89333         (6) (a) For judicial sentencing, a court may order any records sealed under this section
            89334     to be opened and admitted into evidence.
            89335         (b) The records are confidential and are available for inspection only by the court,
            89336     parties, counsel for the parties, and any other person who is authorized by the court to inspect
            89337     them.
            89338         (c) At the end of the action or proceeding, the court shall order the records sealed
            89339     again.
            89340         (7) Records released under this section are classified as protected under Section
            89341     [ 63-2-304 ] 63G-2-305 and are accessible only as provided under [Title 63, Chapter 2] Title
            89342     63G, Chapter 2, Part 2, Access to Records.
            89343         Section 2196. Section 77-19-6 is amended to read:
            89344          77-19-6. Judgment of death -- Warrant -- Delivery of warrant -- Determination of
            89345      execution time.
            89346         (1) (a) When judgment of death is rendered, a warrant, signed by the judge and attested
            89347     by the clerk under the seal of the court, shall be drawn and delivered to the sheriff of the county
            89348     where the conviction is had.
            89349         (b) The sheriff shall deliver the warrant and a certified copy of the judgment to the

            89350     executive director of the Department of Corrections or [his] the executive director's designee at
            89351     the time of delivering the defendant to the custody of the Department of Corrections.
            89352         (2) The warrant shall state the conviction, the judgment, the method of execution, and
            89353     the appointed day the judgment is to be executed, which may not be fewer than 30 days nor
            89354     more than 60 days from the date of issuance of the warrant, and may not be a Sunday, Monday,
            89355     or a legal holiday, as defined in Section [ 63-13-2 ] 63G-1-301 .
            89356         (3) The Department of Corrections shall determine the hour, within the appointed day,
            89357     at which the judgment is to be executed.
            89358         Section 2197. Section 77-19-9 is amended to read:
            89359          77-19-9. Judgment of death not executed -- Order for execution.
            89360         (1) If for any reason a judgment of death has not been executed and remains in force,
            89361     the court where the conviction was had, on application of the prosecuting attorney, shall order
            89362     the defendant to be brought before it or, if [he] the defendant is at large, issue a warrant for
            89363     [his] the defendant's apprehension.
            89364         (2) When the defendant is brought before the court, it shall inquire into the facts and, if
            89365     no legal reason exists against the execution of judgment, the court shall make an order requiring
            89366     the executive director of the Department of Corrections or [his] the executive director's
            89367     designee to ensure that the judgment is executed on a specified day, which may not be fewer
            89368     than 30 nor more than 60 days after the court's order, and may not be a Sunday, Monday, or a
            89369     legal holiday, as defined in Section [ 63-13-2 ] 63G-1-301 . The court shall also draw and have
            89370     delivered another warrant under Section 77-19-6 .
            89371         (3) The Department of Corrections shall determine the hour, within the appointed day,
            89372     at which the judgment is to be executed.
            89373         Section 2198. Section 77-19-202 is amended to read:
            89374          77-19-202. Incompetency or pregnancy of person sentenced to death --
            89375      Procedures.
            89376         (1) If, after judgment of death, the executive director of the Department of Corrections
            89377     has good reason to believe that an inmate sentenced to death is pregnant, or has good reason to

            89378     believe that an inmate's competency to be executed under this chapter should be addressed by a
            89379     court, the executive director of the Department of Corrections or [his] the executive director's
            89380     designee shall immediately give written notice to the court in which the judgment of death was
            89381     rendered, to the prosecuting attorney, and counsel for the inmate. The judgment shall be stayed
            89382     pending further order of the court.
            89383         (2) (a) On receipt of the notice under Subsection (1) of good reason for the court to
            89384     address an inmate's competency to be executed, the court shall order that the mental condition
            89385     of the inmate shall be examined under the provisions of Section 77-19-204 .
            89386         (b) If the inmate is found incompetent, the court shall immediately transmit a certificate
            89387     of the findings to the Board of Pardons and Parole and continue the stay of execution pending
            89388     further order of the court.
            89389         (c) If the inmate is subsequently found competent at any time, the judge shall
            89390     immediately transmit a certificate of the findings to the Board of Pardons and Parole, and shall
            89391     draw and have delivered another warrant under Section 77-19-6 , together with a copy of the
            89392     certificate of the findings. The warrant shall state an appointed day on which the judgment is to
            89393     be executed, which may not be fewer than 30 nor more than 60 days from the date of the
            89394     drawing of the warrant, and which may not be a Sunday, Monday, or a legal holiday, as defined
            89395     in Section [ 63-13-2 ] 63G-1-301 .
            89396         (3) (a) If the court finds the inmate is pregnant, it shall immediately transmit a certificate
            89397     of the finding to the Board of Pardons and Parole and to the executive director of the
            89398     Department of Corrections or [his] the executive director's designee, and the court shall issue an
            89399     order staying the execution of the judgment of death during the pregnancy.
            89400         (b) When the court determines the inmate is no longer pregnant, it shall immediately
            89401     transmit a certificate of the finding to the Board of Pardons and Parole and draw and have
            89402     delivered another warrant under Section 77-19-6 , with a copy of the certificate of the finding.
            89403     The warrant shall state an appointed day on which the judgment is to be executed, which may
            89404     not be fewer than 30 nor more than 60 days from the date of the drawing of the warrant, and
            89405     which may not be a Sunday, Monday, or a legal holiday, as defined in Section [ 63-13-2 ]

            89406      63G-1-301 .
            89407         (4) The Department of Corrections shall determine the hour, within the appointed day,
            89408     at which the judgment is to be executed.
            89409         Section 2199. Section 77-22-2 is amended to read:
            89410          77-22-2. Investigations -- Right to subpoena witnesses and require production of
            89411      evidence -- Contents of subpoena -- Rights of witnesses -- Interrogation before closed
            89412      court -- Disclosure of information.
            89413         (1) As used in this section, "prosecutor" means the attorney general, county attorney, or
            89414     district attorney.
            89415         (2) (a) In any matter involving the investigation of a crime or malfeasance in office, or
            89416     any criminal conspiracy or activity, the prosecutor may, upon application and approval of the
            89417     district court and for good cause shown, conduct a criminal investigation.
            89418         (b) The application and statement of good cause shall state whether or not any other
            89419     investigative order related to the investigation at issue has been filed in another court.
            89420         (3) (a) Subject to the conditions established in Subsection (3)(b), the prosecutor may:
            89421         (i) subpoena witnesses;
            89422         (ii) compel their attendance and testimony under oath to be recorded by a suitable
            89423     electronic recording device or to be given before any certified court reporter; and
            89424         (iii) require the production of books, papers, documents, recordings, and any other
            89425     items that constitute evidence or may be relevant to the investigation.
            89426         (b) The prosecutor shall:
            89427         (i) apply to the district court for each subpoena; and
            89428         (ii) show that the requested information is reasonably related to the criminal
            89429     investigation authorized by the court.
            89430         (4) (a) The prosecutor shall state in each subpoena:
            89431         (i) the time and place of the examination;
            89432         (ii) that the subpoena is issued in aid of a criminal investigation; and
            89433         (iii) the right of the person subpoenaed to have counsel present.

            89434         (b) The examination may be conducted anywhere within the jurisdiction of the
            89435     prosecutor issuing the subpoena.
            89436         (c) The subpoena need not disclose the names of possible defendants.
            89437         (d) Witness fees and expenses shall be paid as in a civil action.
            89438         (5) (a) At the beginning of each compelled interrogation, the prosecutor shall personally
            89439     inform each witness:
            89440         (i) of the general subject matter of the investigation;
            89441         (ii) of the privilege to, at any time during the proceeding, refuse to answer any question
            89442     or produce any evidence of a communicative nature that may result in self-incrimination;
            89443         (iii) that any information provided may be used against the witness in a subsequent
            89444     criminal proceeding; and
            89445         (iv) of the right to have counsel present.
            89446         (b) If the prosecutor has substantial evidence that the subpoenaed witness has
            89447     committed a crime that is under investigation, the prosecutor shall:
            89448         (i) inform the witness in person before interrogation of that witness's target status; and
            89449         (ii) inform the witness of the nature of the charges under consideration against the
            89450     witness.
            89451         (6) (a) (i) The prosecutor may make written application to any district court showing a
            89452     reasonable likelihood that publicly releasing information about the identity of a witness or the
            89453     substance of the evidence resulting from a subpoena or interrogation would pose a threat of
            89454     harm to a person or otherwise impede the investigation.
            89455         (ii) Upon a finding of reasonable likelihood, the court may order the:
            89456         (A) interrogation of a witness be held in secret;
            89457         (B) occurrence of the interrogation and other subpoenaing of evidence, the identity of
            89458     the person subpoenaed, and the substance of the evidence obtained be kept secret; and
            89459         (C) record of testimony and other subpoenaed evidence be kept secret unless the court
            89460     for good cause otherwise orders.
            89461         (b) After application, the court may by order exclude from any investigative hearing or

            89462     proceeding any persons except:
            89463         (i) the attorneys representing the state and members of their staffs;
            89464         (ii) persons who, in the judgment of the attorneys representing the state, are reasonably
            89465     necessary to assist in the investigative process;
            89466         (iii) the court reporter or operator of the electronic recording device; and
            89467         (iv) the attorney for the witness.
            89468         (c) This chapter does not prevent attorneys representing the state or members of their
            89469     staff from disclosing information obtained pursuant to this chapter for the purpose of furthering
            89470     any official governmental investigation.
            89471         (d) (i) If a secrecy order has been granted by the court regarding the interrogation or
            89472     disclosure of evidence by a witness under this subsection, and if the court finds a further
            89473     restriction on the witness is appropriate, the court may order the witness not to disclose the
            89474     substance of the witness's testimony or evidence given by the witness to others.
            89475         (ii) Any order to not disclose made under this subsection shall be served with the
            89476     subpoena.
            89477         (iii) In an appropriate circumstance the court may order that the witness not disclose the
            89478     existence of the investigation to others.
            89479         (iv) Any order under this Subsection (6)(d) must be based upon a finding by the court
            89480     that one or more of the following risks exist:
            89481         (A) disclosure by the witness would cause destruction of evidence;
            89482         (B) disclosure by the witness would taint the evidence provided by other witnesses;
            89483         (C) disclosure by the witness to a target of the investigation would result in flight or
            89484     other conduct to avoid prosecution;
            89485         (D) disclosure by the witness would damage a person's reputation; or
            89486         (E) disclosure by the witness would cause a threat of harm to any person.
            89487         (e) (i) If the court imposes an order under Subsection (6)(d) authorizing an instruction
            89488     to a witness not to disclose the substance of testimony or evidence provided and the prosecuting
            89489     agency proves by a preponderance of the evidence that a witness has violated that order, the

            89490     court may hold the witness in contempt.
            89491         (ii) An order of secrecy imposed on a witness under this Subsection (6)(e) may not
            89492     infringe on the attorney-client relationship between the witness and [his] the witness's attorney
            89493     or on any other legally recognized privileged relationship.
            89494         (7) (a) (i) The prosecutor may submit to any district court a separate written request
            89495     that the application, statement of good cause, and the court's order authorizing the investigation
            89496     be kept secret.
            89497         (ii) The request for secrecy is a public record under [Title 63, Chapter 2] Title 63G,
            89498     Chapter 2, Government Records Access and Management Act, but need not contain any
            89499     information that would compromise any of the interest listed in Subsection (7)(c).
            89500         (b) With the court's permission, the prosecutor may submit to the court, in camera, any
            89501     additional information to support the request for secrecy if necessary to avoid compromising the
            89502     interests listed in Subsection (7)(c).
            89503         (c) The court shall consider all information in the application and order authorizing the
            89504     investigation and any information received in camera and shall order that all information be
            89505     placed in the public file except information that, if disclosed, would pose:
            89506         (i) a substantial risk of harm to a person's safety;
            89507         (ii) a clearly unwarranted invasion of or harm to a person's reputation or privacy; or
            89508         (iii) a serious impediment to the investigation.
            89509         (d) Before granting an order keeping secret documents and other information received
            89510     under this section, the court shall narrow the secrecy order as much as reasonably possible in
            89511     order to preserve the openness of court records while protecting the interests listed in
            89512     Subsection (7)(c).
            89513         Section 2200. Section 77-27-7 is amended to read:
            89514          77-27-7. Parole or hearing dates -- Interview -- Hearings -- Report of alienists --
            89515      Mental competency.
            89516         (1) The Board of Pardons and Parole shall determine within six months after the date of
            89517     an offender's commitment to the custody of the Department of Corrections, for serving a

            89518     sentence upon conviction of a felony or class A misdemeanor offense, a date upon which the
            89519     offender shall be afforded a hearing to establish a date of release or a date for a rehearing, and
            89520     shall promptly notify the offender of the date.
            89521         (2) Before reaching a final decision to release any offender under this chapter, the chair
            89522     shall cause the offender to appear before the board, its panel, or any appointed hearing officer,
            89523     who shall personally interview the offender to consider [his] the offender's fitness for release
            89524     and verify as far as possible information furnished from other sources. Any offender may waive
            89525     a personal appearance before the board. Any offender outside of the state shall, if ordered by
            89526     the board, submit to a courtesy hearing to be held by the appropriate authority in the jurisdiction
            89527     in which the offender is housed in lieu of an appearance before the board. The offender shall be
            89528     promptly notified in writing of the board's decision.
            89529         (3) (a) In the case of an offender convicted of violating or attempting to violate any of
            89530     the provisions of Section 76-5-301.1 , Subsection 76-5-302 (1)(b)(vi), Section 76-5-402 ,
            89531      76-5-402.1 , 76-5-402.2 , 76-5-402.3 , 76-5-403 , 76-5-403.1 , 76-5-404 , 76-5-404.1 , or
            89532      76-5-405 , the chair may appoint one or more alienists who shall examine the offender within six
            89533     months prior to a hearing at which an original parole date is granted on any offense listed in this
            89534     Subsection (3).
            89535         (b) The alienists shall report in writing the results of the examination to the board prior
            89536     to the hearing. The report of the appointed alienists shall specifically address the question of the
            89537     offender's current mental condition and attitudes as they relate to any danger the offender may
            89538     pose to children or others if the offender is released on parole.
            89539         (4) The parolee may petition the board for termination of lifetime parole as provided in
            89540     Section 76-3-202 in the case of a person convicted of a first degree felony violation or
            89541     convicted of attempting to violate Section 76-5-301.1 , Subsection 76-5-302 (1)(b)(vi), Section
            89542      76-5-402 , 76-5-402.1 , 76-5-402.2 , 76-5-402.3 , 76-5-403 , 76-5-403.1 , 76-5-404.1 , or
            89543      76-5-405 .
            89544         (5) In any case where an offender's mental competency is questioned by the board, the
            89545     chair may appoint one or more alienists to examine the offender and report in writing to the

            89546     board, specifically addressing the issue of competency.
            89547         (6) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            89548     Administrative Rulemaking Act, the board shall make rules governing:
            89549         (a) the hearing process;
            89550         (b) alienist examination; and
            89551         (c) parolee petitions for termination of parole.
            89552         Section 2201. Section 77-27-9 is amended to read:
            89553          77-27-9. Parole proceedings.
            89554         (1) (a) The Board of Pardons and Parole may pardon or parole any offender or
            89555     commute or terminate the sentence of any offender committed to a penal or correctional facility
            89556     under the jurisdiction of the Department of Corrections for a felony or class A misdemeanor
            89557     except as provided in Subsection (2).
            89558         (b) The board may not release any offender before the minimum term has been served
            89559     unless the board finds mitigating circumstances which justify the release and unless the board
            89560     has granted a full hearing, in open session, after previous notice of the time and place of the
            89561     hearing, and recorded the proceedings and decisions of the board.
            89562         (c) The board may not pardon or parole any offender or commute or terminate the
            89563     sentence of any offender unless the board has granted a full hearing, in open session, after
            89564     previous notice of the time and place of the hearing, and recorded the proceedings and decisions
            89565     of the board.
            89566         (d) The release of an offender shall be at the initiative of the board, which shall consider
            89567     each case as the offender becomes eligible. However, a prisoner may submit [his] the prisoner's
            89568     own application, subject to the rules of the board promulgated in accordance with [Title 63,
            89569     Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
            89570         (2) (a) A person sentenced to prison prior to April 29, 1996, for a first degree felony
            89571     involving child kidnapping, a violation of Section 76-5-301.1 ; aggravated kidnapping, a
            89572     violation of Section 76-5-302 ; rape of a child, a violation of Section 76-5-402.1 ; object rape of
            89573     a child, a violation of Section 76-5-402.3 ; sodomy upon a child, a violation of Section

            89574      76-5-403.1 ; aggravated sexual abuse of a child, a violation of Subsection 76-5-404.1 (4);
            89575     aggravated sexual assault, a violation of Section 76-5-405 ; or a prior offense as described in
            89576     Section 76-3-407 , may not be eligible for release on parole by the Board of Pardons and Parole
            89577     until the offender has fully completed serving the minimum mandatory sentence imposed by the
            89578     court. This Subsection (2)(a) supersedes any other provision of law.
            89579         (b) The board may not parole any offender or commute or terminate the sentence of any
            89580     offender before the offender has served the minimum term for the offense, if the offender was
            89581     sentenced prior to April 29, 1996, and if:
            89582         (i) the offender was convicted of forcible sexual abuse, forcible sodomy, rape,
            89583     aggravated assault, kidnapping, aggravated kidnapping, or aggravated sexual assault as defined
            89584     in Title 76, Chapter 5, Offenses Against the Person; and
            89585         (ii) the victim of the offense was under 18 years of age at the time the offense was
            89586     committed.
            89587         (c) For a crime committed on or after April 29, 1996, the board may parole any
            89588     offender under Subsections (2)(b)(i) and (ii) for lifetime parole as provided in this section.
            89589         (d) The board may not pardon or parole any offender or commute or terminate the
            89590     sentence of any offender who is sentenced to life in prison without parole except as provided in
            89591     Subsection (6).
            89592         (e) On or after April 27, 1992, the board may commute a sentence of death only to a
            89593     sentence of life in prison without parole.
            89594         (f) The restrictions imposed in Subsections(2)(d) and (e) apply to all cases that come
            89595     before the Board of Pardons and Parole on or after April 27, 1992.
            89596         (g) (i) As used in this Subsection (2)(g):
            89597         (A) "Assessment" has the same meaning as in Section 41-6a-501 .
            89598         (B) "Screening" has the same meaning as in Section 41-6a-501 .
            89599         (C) "Substance abuse treatment" has the same meaning as in Section 77-18-1.1 .
            89600         (ii) Except as provided in Subsection (2)(g)(iii), the board may not parole any offender
            89601     who has not:

            89602         (A) participated in a screening within six months prior to the parole date; and
            89603         (B) participated in an assessment within six months prior to the parole date, if an
            89604     assessment is indicated to be appropriate by the screening.
            89605         (iii) The board may parole an offender who has not met the requirements of Subsection
            89606     (2)(g)(ii) upon the condition that the offender, within 45 days of being paroled:
            89607         (A) participates in a screening; and
            89608         (B) participates in an assessment if it is indicated to be appropriate by the screening.
            89609         (iv) When the board grants an offender parole, it shall order as a condition of parole
            89610     that the offender participate in substance abuse treatment if:
            89611         (A) the assessment conducted under this Subsection (2)(g) indicates substance abuse
            89612     treatment is appropriate; and
            89613         (B) the board finds the offender to be an appropriate candidate for community-based
            89614     supervision.
            89615         (v) Moneys appropriated by the Legislature for the funding of the screening,
            89616     assessment, and substance abuse treatment provided under this section are not subject to any
            89617     requirement regarding matching funds from a state or local governmental entity.
            89618         (3) (a) The board may issue subpoenas to compel the attendance of witnesses and the
            89619     production of evidence, to administer oaths, and to take testimony for the purpose of any
            89620     investigation by the board or any of its members or by a designated hearing examiner in the
            89621     performance of its duties.
            89622         (b) A person who willfully disobeys a properly served subpoena issued by the board is
            89623     guilty of a class B misdemeanor.
            89624         (4) (a) The board may adopt rules consistent with law for its government, meetings and
            89625     hearings, the conduct of proceedings before it, the parole and pardon of offenders, the
            89626     commutation and termination of sentences, and the general conditions under which parole may
            89627     be granted and revoked.
            89628         (b) The rules shall ensure an adequate opportunity for victims to participate at hearings
            89629     held under this chapter, as provided in Section 77-27-9.5 .

            89630         (c) The rules may allow the board to establish reasonable and equitable time limits on
            89631     the presentations by all participants in hearings held under this chapter.
            89632         (5) The board does not provide counseling or therapy for victims as a part of their
            89633     participation in any hearing under this chapter.
            89634         (6) The board may parole a person sentenced to life in prison without parole if the
            89635     board finds by clear and convincing evidence that the person is permanently incapable of being a
            89636     threat to the safety of society.
            89637         Section 2202. Section 77-27-10 is amended to read:
            89638          77-27-10. Conditions of parole -- Rulemaking -- Intensive early release parole
            89639      program.
            89640         (1) (a) When the Board of Pardons and Parole releases an offender on parole, it shall
            89641     issue to the parolee a certificate setting forth the conditions of parole which [he] the offender
            89642     shall accept and agree to as evidenced by [his] the offender's signature affixed to the agreement.
            89643         (b) A copy of the agreement shall be delivered to the Department of Corrections and a
            89644     copy shall be given to the parolee. The original shall remain with the board's file.
            89645         (2) If an offender convicted of violating or attempting to violate Section 76-5-301.1 ,
            89646     Subsection 76-5-302 (1), Section 76-5-402 , 76-5-402.1 , 76-5-402.2 , 76-5-402.3 , 76-5-403 ,
            89647      76-5-403.1 , 76-5-404 , 76-5-404.1 , or 76-5-405 , is released on parole, the board shall order
            89648     outpatient mental health counseling and treatment as a condition of parole. The board shall
            89649     develop standards and conditions of parole under this subsection in accordance with [Title 63,
            89650     Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act. This subsection does
            89651     not apply to intensive early release parole.
            89652         (3) (a) In addition to the conditions set out in Subsection (1), the board may place
            89653     offenders in an intensive early release parole program. The board shall determine the conditions
            89654     of parole which are reasonably necessary to protect the community as well as to protect the
            89655     interests of the offender and to assist the offender to lead a law-abiding life.
            89656         (b) The offender is eligible for this program only if [he] the offender:
            89657         (i) has not been convicted of a sexual offense; or

            89658         (ii) has not been sentenced pursuant to Section 76-3-406 .
            89659         (c) The department shall:
            89660         (i) promulgate rules in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
            89661     Utah Administrative Rulemaking Act, for operation of the program;
            89662         (ii) adopt and implement internal management policies for operation of the program;
            89663         (iii) determine whether or not to refer an offender into this program within 120 days
            89664     from the date the offender is committed to prison by the sentencing court; and
            89665         (iv) make the final recommendation to the board regarding the placement of an offender
            89666     into the program.
            89667         (d) The department shall not consider credit for time served in a county jail awaiting
            89668     trial or sentencing when calculating the 120 day period.
            89669         (e) The prosecuting attorney or sentencing court may refer an offender for
            89670     consideration by the department for participation in the program.
            89671         (f) The board shall determine whether or not to place an offender into this program
            89672     within 30 days of receiving the department's recommendation.
            89673         (4) This program shall be implemented by the department within the existing budget.
            89674         (5) During the time the offender is on parole, the department shall collect from the
            89675     offender the monthly supervision fee authorized by Section 64-13-21 .
            89676         Section 2203. Section 77-27-21.5 is amended to read:
            89677          77-27-21.5. Sex offender registration -- Information system -- Law enforcement
            89678      and courts to report -- Registration -- Penalty -- Effect of expungement.
            89679         (1) As used in this section:
            89680         (a) "Department" means the Department of Corrections.
            89681         (b) "Division" means the Division of Juvenile Justice Services.
            89682         (c) "Employed" or "carries on a vocation" includes employment that is full time or part
            89683     time, whether financially compensated, volunteered, or for the purpose of government or
            89684     educational benefit.
            89685         (d) "Notification" means a person's acquisition of information from the department

            89686     about a sex offender, including [his] the sex offender's place of habitation, physical description,
            89687     and other information as provided in Subsections (12) and (13).
            89688         (e) "Register" means to comply with the rules of the department made under this
            89689     section.
            89690         (f) "Sex offender" means any person:
            89691         (i) convicted by this state of:
            89692         (A) a felony or class A misdemeanor violation of Section 76-4-401 , enticing a minor
            89693     over the Internet;
            89694         (B) Section 76-5-301.1 , kidnapping of a child;
            89695         (C) a felony violation of Section 76-5-401 , unlawful sexual activity with a minor;
            89696         (D) Section 76-5-401.1 , sexual abuse of a minor;
            89697         (E) Section 76-5-401.2 , unlawful sexual conduct with a 16 or 17 year old;
            89698         (F) Section 76-5-402 , rape;
            89699         (G) Section 76-5-402.1 , rape of a child;
            89700         (H) Section 76-5-402.2 , object rape;
            89701         (I) Section 76-5-402.3 , object rape of a child;
            89702         (J) a felony violation of Section 76-5-403 , forcible sodomy;
            89703         (K) Section 76-5-403.1 , sodomy on a child;
            89704         (L) Section 76-5-404 , forcible sexual abuse;
            89705         (M) Section 76-5-404.1 , sexual abuse of a child or aggravated sexual abuse of a child;
            89706         (N) Section 76-5-405 , aggravated sexual assault;
            89707         (O) Section 76-5a-3 , sexual exploitation of a minor;
            89708         (P) Section 76-7-102 , incest;
            89709         (Q) Section 76-9-702.5 , lewdness involving a child;
            89710         (R) Section 76-10-1306 , aggravated exploitation of prostitution; or
            89711         (S) attempting, soliciting, or conspiring to commit any felony offense listed in
            89712     Subsection (1)(f)(i);
            89713         (ii) who has been convicted of any crime, or an attempt, solicitation, or conspiracy to

            89714     commit a crime in another state or by the United States government that is substantially
            89715     equivalent to the offenses listed in Subsection (1)(f)(i) and who is:
            89716         (A) a Utah resident; or
            89717         (B) not a Utah resident, but who is in the state for ten days, regardless of whether or
            89718     not the offender intends to permanently reside in this state;
            89719         (iii) who is required to register as a sex offender in any other state or United States
            89720     territory, is not a Utah resident, but who is in the state for ten days, regardless of whether or not
            89721     the offender intends to permanently reside in this state;
            89722         (iv) who is a nonresident regularly employed, working, or a student in this state and
            89723     was convicted of one or more offenses listed in Subsection (1)(f)(i), or any substantially
            89724     equivalent offense in another state or by the United States government, and as a result of the
            89725     conviction, is required to register in the person's state of residence;
            89726         (v) who is found not guilty by reason of insanity in this state, any other state, or by the
            89727     United States government of one or more offenses listed in Subsection (1)(f)(i); or
            89728         (vi) who is adjudicated delinquent based on one or more offenses listed in Subsection
            89729     (1)(f)(i) and who has been committed to the division for secure confinement and remains in the
            89730     division's custody 30 days prior to the person's 21st birthday.
            89731         (2) The department, to assist in investigating sex-related crimes and in apprehending
            89732     offenders, shall:
            89733         (a) develop and operate a system to collect, analyze, maintain, and disseminate
            89734     information on sex offenders and sex offenses; and
            89735         (b) make information collected and developed under this section available to the public.
            89736         (3) Any law enforcement agency shall, in the manner prescribed by the department,
            89737     inform the department of:
            89738         (a) the receipt of a report or complaint of an offense listed in Subsection (1)(f), within
            89739     three working days; and
            89740         (b) the arrest of a person suspected of any of the offenses listed in Subsection (1)(f),
            89741     within five working days.

            89742         (4) Upon convicting a person of any of the offenses listed in Subsection (1)(f), the
            89743     convicting court shall within three working days forward a copy of the judgment and sentence
            89744     to the department.
            89745         (5) A sex offender in the custody of the department shall be registered by agents of the
            89746     department upon:
            89747         (a) being placed on probation;
            89748         (b) commitment to a secure correctional facility operated by or under contract to the
            89749     department;
            89750         (c) release from confinement to parole status, termination or expiration of sentence, or
            89751     escape;
            89752         (d) entrance to and release from any community-based residential program operated by
            89753     or under contract to the department; or
            89754         (e) termination of probation or parole.
            89755         (6) A sex offender not in the custody of the department and who is confined in a
            89756     correctional facility not operated by or under contract to the department shall be registered with
            89757     the department by the sheriff of the county in which the offender is confined upon:
            89758         (a) commitment to the correctional facility; and
            89759         (b) release from confinement.
            89760         (7) A sex offender in the custody of the division shall be registered with the department
            89761     by the division prior to release from custody.
            89762         (8) A sex offender committed to a state mental hospital shall be registered with the
            89763     department by the hospital upon admission and upon discharge.
            89764         (9) A sex offender convicted by any other state or by the United States government is
            89765     required to register under Subsection (1)(f)(ii) and shall register with the department within ten
            89766     days of entering the state, regardless of the length of stay.
            89767         (10) (a) Except as provided in Subsections (10)(b), (c), and (d), a sex offender shall, for
            89768     the duration of the sentence and for ten years after termination of sentence or custody of the
            89769     division, register annually during the month of the offender's birth and again within five days of

            89770     every change of [his] the sex offender's place of habitation, vehicle information, or educational
            89771     information required to be submitted under Subsection (12).
            89772         (b) Except as provided Subsections (10)(c) and (d), a sex offender who is convicted of
            89773     an offense listed in Subsection (1)(f)(i) by another state shall register for the time period
            89774     required by the state where the offender was convicted if the state's registration period for the
            89775     offense that the offender was convicted of is in excess of the ten years from completion of the
            89776     sentence registration period that is required under Subsection (10)(a).
            89777         (c) (i) A sex offender convicted as an adult of any of the offenses listed in Subsection
            89778     (10)(c)(ii) shall, for the offender's lifetime, register annually during the month of the offender's
            89779     birth and again within five days of every change of the offender's place of habitation, vehicle
            89780     information, or educational information required to be submitted under Subsection (12). This
            89781     registration requirement is not subject to exemptions and may not be terminated or altered
            89782     during the offender's lifetime.
            89783         (ii) Offenses referred to in Subsection (10)(c)(i) are:
            89784         (A) any offense listed in Subsection (1)(f) if, at the time of the conviction, the offender
            89785     has previously been convicted of an offense listed in Subsection (1)(f) or has previously been
            89786     required to register as a sex offender for an offense committed as a juvenile;
            89787         (B) Section 76-4-401 , enticing a minor over the Internet, if the offense is a class A or
            89788     felony violation;
            89789         (C) Section 76-5-301.1 , child kidnapping;
            89790         (D) Section 76-5-402 , rape;
            89791         (E) Section 76-5-402.1 , rape of a child;
            89792         (F) Section 76-5-402.2 , object rape;
            89793         (G) Section 76-5-402.3 , object rape of a child;
            89794         (H) Section 76-5-403 , forcible sodomy;
            89795         (I) Section 76-5-403.1 , sodomy on a child;
            89796         (J) Section 76-5-404.1 , sexual abuse of a child;
            89797         (K) Subsection 76-5-404.1 (4), aggravated sexual abuse of a child;

            89798         (L) Section 76-5-405 , aggravated sexual assault;
            89799         (M) Section 76-5a-3 , sexual exploitation of a minor; or
            89800         (N) Section 76-7-102 , incest.
            89801         (d) Notwithstanding Subsections (10)(a), (b), and (c), a sex offender who is confined in
            89802     a secure facility or in a state mental hospital is not required to register annually.
            89803         (e) A sex offender that is required to register annually under this Subsection (10) shall
            89804     surrender the sex offender's license certificate or identification card as required under
            89805     Subsection 53-3-216 (3) or 53-3-807 (4) and may apply for a license certificate or identification
            89806     card as provided under Section 53-3-205 or 53-3-804 .
            89807         (11) An agency in the state that registers a sex offender on probation, a sex offender
            89808     who has been released from confinement to parole status or termination, or a sex offender
            89809     whose sentence has expired shall inform the offender of the duty to comply with:
            89810         (a) the continuing registration requirements of this section during the period of
            89811     registration required in Subsection (10), including:
            89812         (i) notification to the state agencies in the states where the registrant presently resides
            89813     and plans to reside when moving across state lines;
            89814         (ii) verification of address at least every 60 days pursuant to a parole agreement for
            89815     lifetime parolees; and
            89816         (iii) notification to the out-of-state agency where the offender is living, whether or not
            89817     the offender is a resident of that state; and
            89818         (b) the driver license certificate or identification card surrender requirement under
            89819     Subsection 53-3-216 (3) or 53-3-807 (4) and application provisions under Section 53-3-205 or
            89820      53-3-804 .
            89821         (12) A sex offender shall provide the department with the following information:
            89822         (a) all names or aliases the sex offender is or has been known by;
            89823         (b) the sex offender's name and residential address;
            89824         (c) a physical description, including the sex offender's age, height, weight, eye and hair
            89825     color;

            89826         (d) the type of vehicle or vehicles the sex offender drives;
            89827         (e) a current photograph of the sex offender; and
            89828         (f) each educational institution in Utah at which the sex offender is employed, carries on
            89829     a vocation, or is a student, and any change of enrollment or employment status of the sex
            89830     offender at any educational institution.
            89831         (13) The department shall:
            89832         (a) provide the following additional information when available:
            89833         (i) the crimes the sex offender was convicted of or adjudicated delinquent for; and
            89834         (ii) a description of the sex offender's primary and secondary targets; and
            89835         (b) ensure that the registration information collected regarding a sex offender's
            89836     enrollment or employment at an educational institution is:
            89837         (i) (A) promptly made available to any law enforcement agency that has jurisdiction
            89838     where the institution is located if the educational institution is an institution of higher education;
            89839     or
            89840         (B) promptly made available to the district superintendent of the school district where
            89841     the offender is enrolled if the educational institution is an institution of primary education; and
            89842         (ii) entered into the appropriate state records or data system.
            89843         (14) (a) A sex offender who knowingly fails to register under this section is guilty of:
            89844         (i) a third degree felony and shall be sentenced to serve a term of incarceration for not
            89845     less than 90 days and also at least one year of probation if:
            89846         (A) the sex offender is required to register for a felony conviction of an offense listed in
            89847     Subsection (1)(f)(i); or
            89848         (B) the sex offender is required to register for the offender's lifetime under Subsection
            89849     (10)(c); or
            89850         (ii) a class A misdemeanor and shall be sentenced to serve a term of incarceration for
            89851     not fewer than 90 days and also at least one year of probation if the sex offender is required to
            89852     register for a misdemeanor conviction of an offense listed in Subsection (1)(f)(i).
            89853         (b) Neither the court nor the Board of Pardons and Parole may release a person who

            89854     violates this section from serving the term required under Subsection (14)(a). This Subsection
            89855     (14)(b) supersedes any other provision of the law contrary to this section.
            89856         (15) Notwithstanding [Title 63, Chapter 2] Title 63G, Chapter 2, Government Records
            89857     Access and Management Act, information in Subsections (12) and (13) collected and released
            89858     under this section is public information.
            89859         (16) (a) If a sex offender is to be temporarily sent outside a secure facility in which [he]
            89860     the sex offender is confined on any assignment, including, without limitation, firefighting or
            89861     disaster control, the official who has custody of the offender shall, within a reasonable time
            89862     prior to removal from the secure facility, notify the local law enforcement agencies where the
            89863     assignment is to be filled.
            89864         (b) This Subsection (16) does not apply to any person temporarily released under guard
            89865     from the institution in which [he] the person is confined.
            89866         (17) Notwithstanding Sections 77-18-9 through 77-18-14 regarding expungement, a
            89867     person convicted of any offense listed in Subsection (1)(f) is not relieved from the responsibility
            89868     to register as required under this section.
            89869         (18) Notwithstanding Section 42-1-1 , a sex offender:
            89870         (a) may not change [his] the sex offender's name:
            89871         (i) while under the jurisdiction of the department; and
            89872         (ii) until the registration requirements of this statute have expired; or
            89873         (b) may not change [his] the sex offender's name at any time, if registration is under
            89874     Subsection (10)(c).
            89875         (19) The department may make rules necessary to implement this section, including:
            89876         (a) the method for dissemination of the information; and
            89877         (b) instructions to the public regarding the use of the information.
            89878         (20) Any information regarding the identity or location of a victim shall be redacted by
            89879     the department from information provided under Subsections (12) and (13).
            89880         (21) Nothing in this section shall be construed to create or impose any duty on any
            89881     person to request or obtain information regarding any sex offender from the department.

            89882         (22) The department shall post registry information on the Internet, and the website
            89883     shall contain a disclaimer informing the public of the following:
            89884         (a) the information contained on the site is obtained from sex offenders and the
            89885     department does not guarantee its accuracy;
            89886         (b) members of the public are not allowed to use the information to harass or threaten
            89887     sex offenders or members of their families; and
            89888         (c) harassment, stalking, or threats against sex offenders or their families are prohibited
            89889     and doing so may violate Utah criminal laws.
            89890         (23) The website shall be indexed by both the surname of the offender and by postal
            89891     codes.
            89892         (24) The department shall construct the website so that users, before accessing registry
            89893     information, must indicate that they have read the disclaimer, understand it, and agree to comply
            89894     with its terms.
            89895         (25) The department, its personnel, and any individual or entity acting at the request or
            89896     upon the direction of the department are immune from civil liability for damages for good faith
            89897     compliance with this section and will be presumed to have acted in good faith by reporting
            89898     information.
            89899         (26) The department shall redact information that, if disclosed, could reasonably
            89900     identify a victim.
            89901         (27) (a) Each sex offender required to register under Subsection (10), who is not
            89902     currently under the jurisdiction of the Department of Corrections, shall pay to the department an
            89903     annual fee of $75 each year the sex offender is subject to the registration requirements.
            89904         (b) The department shall deposit fees under this Subsection (27) in the General Fund as
            89905     a dedicated credit, to be used by the department for maintaining the sex offender registry under
            89906     this section and monitoring sex offender registration compliance, including the costs of:
            89907         (i) data entry;
            89908         (ii) processing registration packets;
            89909         (iii) updating registry information;

            89910         (iv) ensuring sex offender compliance with registration requirements under this section;
            89911     and
            89912         (v) apprehending offenders who are in violation of the sex offender registration
            89913     requirements under this section.
            89914         Section 2204. Section 77-28c-104 is amended to read:
            89915          77-28c-104. Definitions -- Compact transfer application fee.
            89916         (1) As used in this section:
            89917         (a) "Department" means the Department of Corrections.
            89918         (b) "Offender" has the same meaning as provided in Section 77-28c-103 , Article
            89919     II(a)(9).
            89920         (2) (a) Offenders desiring a transfer of supervision to another state under the Interstate
            89921     Compact for Adult Offender Supervision shall apply to the department for transfer.
            89922         (b) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            89923     Administrative Rulemaking Act, the department shall make rules governing the transfer of
            89924     supervision of an offender.
            89925         (3) The department shall collect a fee of $50 from each offender applying for transfer of
            89926     supervision to another state under the Interstate Compact for Adult Offender Supervision.
            89927         Section 2205. Section 77-37-3 is amended to read:
            89928          77-37-3. Bill of Rights.
            89929         (1) The bill of rights for victims and witnesses is:
            89930         (a) Victims and witnesses have a right to be informed as to the level of protection from
            89931     intimidation and harm available to them, and from what sources, as they participate in criminal
            89932     justice proceedings as designated by Section 76-8-508 , regarding witness tampering, and
            89933     Section 76-8-509 , regarding threats against a victim. Law enforcement, prosecution, and
            89934     corrections personnel have the duty to timely provide this information in a form that is useful to
            89935     the victim.
            89936         (b) Victims and witnesses, including children and their guardians, have a right to be
            89937     informed and assisted as to their role in the criminal justice process. All criminal justice

            89938     agencies have the duty to provide this information and assistance.
            89939         (c) Victims and witnesses have a right to clear explanations regarding relevant legal
            89940     proceedings; these explanations shall be appropriate to the age of child victims and witnesses.
            89941     All criminal justice agencies have the duty to provide these explanations.
            89942         (d) Victims and witnesses should have a secure waiting area that does not require them
            89943     to be in close proximity to defendants or the family and friends of defendants. Agencies
            89944     controlling facilities shall, whenever possible, provide this area.
            89945         (e) Victims are entitled to restitution or reparations, including medical costs, as
            89946     provided in [Title 63, Chapter 25a] Title 63M, Chapter 7, Criminal Justice and Substance
            89947     Abuse, and Sections 62A-7-109 , 77-38a-302 , and 77-27-6 . State and local government
            89948     agencies that serve victims have the duty to have a functional knowledge of the procedures
            89949     established by the Utah Crime Victims' Reparations Board and to inform victims of these
            89950     procedures.
            89951         (f) Victims and witnesses have a right to have any personal property returned as
            89952     provided in Sections 77-24-1 through 77-24-5 . Criminal justice agencies shall expeditiously
            89953     return the property when it is no longer needed for court law enforcement or prosecution
            89954     purposes.
            89955         (g) Victims and witnesses have the right to reasonable employer intercession services,
            89956     including pursuing employer cooperation in minimizing employees' loss of pay and other
            89957     benefits resulting from their participation in the criminal justice process. Officers of the court
            89958     shall provide these services and shall consider victims' and witnesses' schedules so that activities
            89959     which conflict can be avoided. Where conflicts cannot be avoided, the victim may request that
            89960     the responsible agency intercede with employers or other parties.
            89961         (h) Victims and witnesses, particularly children, should have a speedy disposition of the
            89962     entire criminal justice process. All involved public agencies shall establish policies and
            89963     procedures to encourage speedy disposition of criminal cases.
            89964         (i) Victims and witnesses have the right to timely notice of judicial proceedings they are
            89965     to attend and timely notice of cancellation of any proceedings. Criminal justice agencies have

            89966     the duty to provide these notifications. Defense counsel and others have the duty to provide
            89967     timely notice to prosecution of any continuances or other changes that may be required.
            89968         (j) Victims of sexual offenses have a right to be informed of their right to request
            89969     voluntary testing for themselves for HIV infection as provided in Section 76-5-503 and to
            89970     request mandatory testing of the convicted sexual offender for HIV infection as provided in
            89971     Section 76-5-502 . The law enforcement office where the sexual offense is reported shall have
            89972     the responsibility to inform victims of this right.
            89973         (2) Informational rights of the victim under this chapter are based upon the victim
            89974     providing [his] the victim's current address and telephone number to the criminal justice
            89975     agencies involved in the case.
            89976         Section 2206. Section 77-37-5 is amended to read:
            89977          77-37-5. Remedies -- Victims' Rights Committee.
            89978         (1) In each judicial district, the presiding district court judge shall appoint a person who
            89979     shall establish and chair a victims' rights committee consisting of:
            89980         (a) a county attorney or district attorney;
            89981         (b) a sheriff;
            89982         (c) a corrections field services administrator;
            89983         (d) an appointed victim advocate;
            89984         (e) a municipal attorney;
            89985         (f) a municipal chief of police; and
            89986         (g) other representatives as appropriate.
            89987         (2) The committee shall meet at least semiannually to review progress and problems
            89988     related to this chapter, Title 77, Chapter 38, Rights of Crime Victims Act, and Utah
            89989     Constitution Article I, Section 28. Victims and other interested parties may submit matters of
            89990     concern to the victims' rights committee. The committee may hold a hearing open to the public
            89991     on any appropriate matter of concern and may publish its findings. These matters shall also be
            89992     considered at the meetings of the victims' rights committee. The committee shall forward
            89993     minutes of all meetings to the Commission on Criminal and Juvenile Justice and the Office of

            89994     Crime Victim Reparations for review and other appropriate action.
            89995         (3) If a victims' rights committee is unable to resolve a complaint, it may refer the
            89996     complaint to the Utah Council on Victims of Crime, established in Section [ 63-25a-601 ]
            89997      63M-7-601 , for further consideration.
            89998         (4) The Office of Crime Victim Reparations shall provide materials to local law
            89999     enforcement to inform every victim of a sexual offense of the right to request testing of the
            90000     convicted sexual offender and of the victim as provided in Section 76-5-502 .
            90001         (5) If a person acting under color of state law willfully or wantonly fails to perform
            90002     duties so that the rights in this chapter are not provided, an action for injunctive relief may be
            90003     brought against the individual and the government entity that employs the individual. The
            90004     failure to provide the rights in this chapter or Title 77, Chapter 38, Rights of Crime Victims Act,
            90005     does not constitute cause for a judgment against the state or any government entity, or any
            90006     individual employed by the state or any government entity, for monetary damages, attorney's
            90007     fees, or the costs of exercising any rights under this chapter.
            90008         (6) The person accused of and subject to prosecution for the crime or the act which
            90009     would be a crime if committed by a competent adult, has no standing to make a claim
            90010     concerning any violation of the provisions of this chapter.
            90011         Section 2207. Section 77-38-3 is amended to read:
            90012          77-38-3. Notification to victims -- Initial notice, election to receive subsequent
            90013      notices -- Form of notice -- Protected victim information.
            90014         (1) Within seven days of the filing of felony criminal charges against a defendant, the
            90015     prosecuting agency shall provide an initial notice to reasonably identifiable and locatable victims
            90016     of the crime contained in the charges, except as otherwise provided in this chapter.
            90017         (2) The initial notice to the victim of a crime shall provide information about electing to
            90018     receive notice of subsequent important criminal justice hearings listed in Subsections
            90019      77-38-2 (5)(a) through (f) and rights under this chapter.
            90020         (3) The prosecuting agency shall provide notice to a victim of a crime for the important
            90021     criminal justice hearings, provided in Subsections 77-38-2 (5)(a) through (f) which the victim

            90022     has requested.
            90023         (4) (a) The responsible prosecuting agency may provide initial and subsequent notices
            90024     in any reasonable manner, including telephonically, electronically, orally, or by means of a letter
            90025     or form prepared for this purpose.
            90026         (b) In the event of an unforeseen important criminal justice hearing, listed in
            90027     Subsections 77-38-2 (5)(a) through (f) for which a victim has requested notice, a good faith
            90028     attempt to contact the victim by telephone shall be considered sufficient notice, provided that
            90029     the prosecuting agency subsequently notifies the victim of the result of the proceeding.
            90030         (5) (a) The court shall take reasonable measures to ensure that its scheduling practices
            90031     for the proceedings provided in Subsections 77-38-2 (5)(a) through (f) permit an opportunity for
            90032     victims of crimes to be notified.
            90033         (b) The court shall also consider whether any notification system that it might use to
            90034     provide notice of judicial proceedings to defendants could be used to provide notice of those
            90035     same proceedings to victims of crimes.
            90036         (6) A defendant or, if it is the moving party, Adult Probation and Parole, shall give
            90037     notice to the responsible prosecuting agency of any motion for modification of any
            90038     determination made at any of the important criminal justice hearings provided in Subsections
            90039      77-38-2 (5)(a) through (f) in advance of any requested court hearing or action so that the
            90040     prosecuting agency may comply with its notification obligation.
            90041         (7) (a) Notice to a victim of a crime shall be provided by the Board of Pardons and
            90042     Parole for the important criminal justice hearing provided in Subsection 77-38-2 (5)(g).
            90043         (b) The board may provide notice in any reasonable manner, including telephonically,
            90044     electronically, orally, or by means of a letter or form prepared for this purpose.
            90045         (8) Prosecuting agencies and the Board of Pardons and Parole are required to give
            90046     notice to a victim of a crime for the proceedings provided in Subsections 77-38-2 (5)(a) through
            90047     (f) only where the victim has responded to the initial notice, requested notice of subsequent
            90048     proceedings, and provided a current address and telephone number if applicable.
            90049         (9) (a) Law enforcement and criminal justice agencies shall refer any requests for notice

            90050     or information about crime victim rights from victims to the responsible prosecuting agency.
            90051         (b) In a case in which the Board of Pardons and Parole is involved, the responsible
            90052     prosecuting agency shall forward any request for notice that it has received from a victim to the
            90053     Board of Pardons and Parole.
            90054         (10) In all cases where the number of victims exceeds ten, the responsible prosecuting
            90055     agency may send any notices required under this chapter in its discretion to a representative
            90056     sample of the victims.
            90057         (11) (a) A victim's address, telephone number, and victim impact statement maintained
            90058     by a peace officer, prosecuting agency, Youth Parole Authority, Division of Juvenile Justice
            90059     Services, Department of Corrections, and Board of Pardons and Parole, for purposes of
            90060     providing notice under this section, is classified as protected as provided in Subsection
            90061     [ 63-2-304 ] 63G-2-305 (10).
            90062         (b) The victim's address, telephone number, and victim impact statement is available
            90063     only to the following persons or entities in the performance of their duties:
            90064         (i) a law enforcement agency, including the prosecuting agency;
            90065         (ii) a victims' right committee as provided in Section 77-37-5 ;
            90066         (iii) a governmentally sponsored victim or witness program;
            90067         (iv) the Department of Corrections;
            90068         (v) Office of Crime Victims' Reparations;
            90069         (vi) Commission on Criminal and Juvenile Justice; and
            90070         (vii) the Board of Pardons and Parole.
            90071         (12) The notice provisions as provided in this section do not apply to misdemeanors as
            90072     provided in Section 77-38-5 and to important juvenile justice hearings as provided in Section
            90073      77-38-2 .
            90074         Section 2208. Section 77-38a-401 is amended to read:
            90075          77-38a-401. Entry of judgment -- Interest -- Civil actions -- Lien.
            90076         (1) Upon the court determining that a defendant owes restitution, the clerk of the court
            90077     shall enter an order of complete restitution as defined in Section 77-38a-302 on the civil

            90078     judgment docket and provide notice of the order to the parties.
            90079         (2) The order shall be considered a legal judgment, enforceable under the Utah Rules of
            90080     Civil Procedure. In addition, the department may, on behalf of the person in whose favor the
            90081     restitution order is entered, enforce the restitution order as judgment creditor under the Utah
            90082     Rules of Civil Procedure.
            90083         (3) If the defendant fails to obey a court order for payment of restitution and the victim
            90084     or department elects to pursue collection of the order by civil process, the victim shall be
            90085     entitled to recover reasonable attorney's fees.
            90086         (4) A judgment ordering restitution when recorded in a registry of judgments docket
            90087     shall have the same affect and is subject to the same rules as a judgment in a civil action.
            90088     Interest shall accrue on the amount ordered from the time of sentencing, including prejudgment
            90089     interest.
            90090         (5) The department shall make rules permitting the restitution payments to be credited
            90091     to principal first and the remainder of payments credited to interest in accordance with [Title 63,
            90092     Chapter 46a] Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
            90093         Section 2209. Section 78-2-2 is amended to read:
            90094          78-2-2. Supreme Court jurisdiction.
            90095         (1) The Supreme Court has original jurisdiction to answer questions of state law
            90096     certified by a court of the United States.
            90097         (2) The Supreme Court has original jurisdiction to issue all extraordinary writs and
            90098     authority to issue all writs and process necessary to carry into effect its orders, judgments, and
            90099     decrees or in aid of its jurisdiction.
            90100         (3) The Supreme Court has appellate jurisdiction, including jurisdiction of interlocutory
            90101     appeals, over:
            90102         (a) a judgment of the Court of Appeals;
            90103         (b) cases certified to the Supreme Court by the Court of Appeals prior to final judgment
            90104     by the Court of Appeals;
            90105         (c) discipline of lawyers;

            90106         (d) final orders of the Judicial Conduct Commission;
            90107         (e) final orders and decrees in formal adjudicative proceedings originating with:
            90108         (i) the Public Service Commission;
            90109         (ii) the State Tax Commission;
            90110         (iii) the School and Institutional Trust Lands Board of Trustees;
            90111         (iv) the Board of Oil, Gas, and Mining;
            90112         (v) the state engineer; or
            90113         (vi) the executive director of the Department of Natural Resources reviewing actions of
            90114     the Division of Forestry, Fire and State Lands;
            90115         (f) final orders and decrees of the district court review of informal adjudicative
            90116     proceedings of agencies under Subsection (3)(e);
            90117         (g) a final judgment or decree of any court of record holding a statute of the United
            90118     States or this state unconstitutional on its face under the Constitution of the United States or the
            90119     Utah Constitution;
            90120         (h) interlocutory appeals from any court of record involving a charge of a first degree
            90121     or capital felony;
            90122         (i) appeals from the district court involving a conviction or charge of a first degree
            90123     felony or capital felony;
            90124         (j) orders, judgments, and decrees of any court of record over which the Court of
            90125     Appeals does not have original appellate jurisdiction; and
            90126         (k) appeals from the district court of orders, judgments, or decrees ruling on legislative
            90127     subpoenas.
            90128         (4) The Supreme Court may transfer to the Court of Appeals any of the matters over
            90129     which the Supreme Court has original appellate jurisdiction, except:
            90130         (a) capital felony convictions or an appeal of an interlocutory order of a court of record
            90131     involving a charge of a capital felony;
            90132         (b) election and voting contests;
            90133         (c) reapportionment of election districts;

            90134         (d) retention or removal of public officers;
            90135         (e) matters involving legislative subpoenas; and
            90136         (f) those matters described in Subsections (3)(a) through (d).
            90137         (5) The Supreme Court has sole discretion in granting or denying a petition for writ of
            90138     certiorari for the review of a Court of Appeals adjudication, but the Supreme Court shall review
            90139     those cases certified to it by the Court of Appeals under Subsection (3)(b).
            90140         (6) The Supreme Court shall comply with the requirements of [Title 63, Chapter 46b]
            90141     Title 63G, Chapter 4, Administrative Procedures Act, in its review of agency adjudicative
            90142     proceedings.
            90143         Section 2210. Section 78-2a-3 is amended to read:
            90144          78-2a-3. Court of Appeals jurisdiction.
            90145         (1) The Court of Appeals has jurisdiction to issue all extraordinary writs and to issue all
            90146     writs and process necessary:
            90147         (a) to carry into effect its judgments, orders, and decrees; or
            90148         (b) in aid of its jurisdiction.
            90149         (2) The Court of Appeals has appellate jurisdiction, including jurisdiction of
            90150     interlocutory appeals, over:
            90151         (a) the final orders and decrees resulting from formal adjudicative proceedings of state
            90152     agencies or appeals from the district court review of informal adjudicative proceedings of the
            90153     agencies, except the Public Service Commission, State Tax Commission, School and
            90154     Institutional Trust Lands Board of Trustees, Division of Forestry, Fire and State Lands actions
            90155     reviewed by the executive director of the Department of Natural Resources, Board of Oil, Gas,
            90156     and Mining, and the state engineer;
            90157         (b) appeals from the district court review of:
            90158         (i) adjudicative proceedings of agencies of political subdivisions of the state or other
            90159     local agencies; and
            90160         (ii) a challenge to agency action under Section [ 63-46a-12.1 ] 63G-3-602 ;
            90161         (c) appeals from the juvenile courts;

            90162         (d) interlocutory appeals from any court of record in criminal cases, except those
            90163     involving a charge of a first degree or capital felony;
            90164         (e) appeals from a court of record in criminal cases, except those involving a conviction
            90165     or charge of a first degree felony or capital felony;
            90166         (f) appeals from orders on petitions for extraordinary writs sought by persons who are
            90167     incarcerated or serving any other criminal sentence, except petitions constituting a challenge to
            90168     a conviction of or the sentence for a first degree or capital felony;
            90169         (g) appeals from the orders on petitions for extraordinary writs challenging the
            90170     decisions of the Board of Pardons and Parole except in cases involving a first degree or capital
            90171     felony;
            90172         (h) appeals from district court involving domestic relations cases, including, but not
            90173     limited to, divorce, annulment, property division, child custody, support, parent-time, visitation,
            90174     adoption, and paternity;
            90175         (i) appeals from the Utah Military Court; and
            90176         (j) cases transferred to the Court of Appeals from the Supreme Court.
            90177         (3) The Court of Appeals upon its own motion only and by the vote of four judges of
            90178     the court may certify to the Supreme Court for original appellate review and determination any
            90179     matter over which the Court of Appeals has original appellate jurisdiction.
            90180         (4) The Court of Appeals shall comply with the requirements of [Title 63, Chapter 46b]
            90181     Title 63G, Chapter 4, Administrative Procedures Act, in its review of agency adjudicative
            90182     proceedings.
            90183         Section 2211. Section 78-2a-6 is amended to read:
            90184          78-2a-6. Appellate Mediation Office -- Protected records and information --
            90185      Governmental immunity.
            90186         (1) Unless a more restrictive rule of court is adopted pursuant to Subsection [ 63-2-201 ]
            90187      63G-2-201 (3)(b), information and records relating to any matter on appeal received or
            90188     generated by the Chief Appellate Mediator or other staff of the Appellate Mediation Office as a
            90189     result of any party's participation or lack of participation in the settlement program shall be

            90190     maintained as protected records pursuant to Subsections [ 63-2-304 ] 63G-2-305 (16), (17), (18),
            90191     and (33).
            90192         (2) In addition to the access restrictions on protected records provided in Section
            90193     [ 63-2-202 ] 63G-2-202 , the information and records may not be disclosed to judges, staff, or
            90194     employees of any court of this state.
            90195         (3) The Chief Appellate Mediator may disclose statistical and other demographic
            90196     information as may be necessary and useful to report on the status and to allow supervision and
            90197     oversight of the Appellate Mediation Office.
            90198         (4) When acting as mediators, the Chief Appellate Mediator and other professional staff
            90199     of the Appellate Mediation Office shall be immune from liability pursuant to [Title 63, Chapter
            90200     30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah.
            90201         (5) Pursuant to Utah Constitution, Article VIII, Section 4, the Supreme Court may
            90202     exercise overall supervision of the Appellate Mediation Office as part of the appellate process.
            90203         Section 2212. Section 78-3-4 is amended to read:
            90204          78-3-4. Jurisdiction -- Appeals.
            90205         (1) The district court has original jurisdiction in all matters civil and criminal, not
            90206     excepted in the Utah Constitution and not prohibited by law.
            90207         (2) The district court judges may issue all extraordinary writs and other writs necessary
            90208     to carry into effect their orders, judgments, and decrees.
            90209         (3) The district court has jurisdiction over matters of lawyer discipline consistent with
            90210     the rules of the Supreme Court.
            90211         (4) The district court has jurisdiction over all matters properly filed in the circuit court
            90212     prior to July 1, 1996.
            90213         (5) The district court has appellate jurisdiction to adjudicate trials de novo of the
            90214     judgments of the justice court and of the small claims department of the district court.
            90215         (6) Appeals from the final orders, judgments, and decrees of the district court are under
            90216     Sections 78-2-2 and 78-2a-3 .
            90217         (7) The district court has jurisdiction to review:

            90218         (a) agency adjudicative proceedings as set forth in [Title 63, Chapter 46b] Title 63G,
            90219     Chapter 4, Administrative Procedures Act, and shall comply with the requirements of that
            90220     chapter, in its review of agency adjudicative proceedings; and
            90221         (b) municipal administrative proceedings in accordance with Section 10-3-703.7 .
            90222         (8) Notwithstanding Subsection (1), the district court has subject matter jurisdiction in
            90223     class B misdemeanors, class C misdemeanors, infractions, and violations of ordinances only if:
            90224         (a) there is no justice court with territorial jurisdiction;
            90225         (b) the matter was properly filed in the circuit court prior to July 1, 1996;
            90226         (c) the offense occurred within the boundaries of the municipality in which the district
            90227     courthouse is located and that municipality has not formed a justice court; or
            90228         (d) they are included in an indictment or information covering a single criminal episode
            90229     alleging the commission of a felony or a class A misdemeanor.
            90230         (9) The district court has jurisdiction of actions under Title 78, Chapter 3h, Child
            90231     Protective Orders, if the juvenile court transfers the case to the district court.
            90232         Section 2213. Section 78-3-24.1 is amended to read:
            90233          78-3-24.1. Grants to nonprofit legal assistance organization.
            90234         Subject to legislative appropriation, the state court administrator shall, in accordance
            90235     with [Title 63, Chapter 56] Title 63G, Chapter 6, Utah Procurement Code, solicit requests for
            90236     proposals and award grants to nonprofit legal assistance providers to provide legal assistance
            90237     throughout the state to:
            90238         (1) low to moderate income victims of domestic violence; and
            90239         (2) low to moderate income individuals in family law matters.
            90240         Section 2214. Section 78-3a-104 is amended to read:
            90241          78-3a-104. Jurisdiction of juvenile court -- Original -- Exclusive.
            90242         (1) Except as otherwise provided by law, the juvenile court has exclusive original
            90243     jurisdiction in proceedings concerning:
            90244         (a) a child who has violated any federal, state, or local law or municipal ordinance or a
            90245     person younger than 21 years of age who has violated any law or ordinance before becoming 18

            90246     years of age, regardless of where the violation occurred, excluding traffic laws and boating and
            90247     ordinances;
            90248         (b) a person 21 years of age or older who has failed or refused to comply with an order
            90249     of the juvenile court to pay a fine or restitution, if the order was imposed prior to the person's
            90250     21st birthday; however, the continuing jurisdiction is limited to causing compliance with existing
            90251     orders;
            90252         (c) a child who is an abused child, neglected child, or dependent child, as those terms
            90253     are defined in Section 78-3a-103 ;
            90254         (d) a protective order for a child pursuant to the provisions of Title 78, Chapter 3h,
            90255     Child Protective Orders, which the juvenile court may transfer to the district court if the juvenile
            90256     court has entered an ex parte protective order and finds that:
            90257         (i) the petitioner and the respondent are the natural parent, adoptive parent, or step
            90258     parent of the child who is the object of the petition;
            90259         (ii) the district court has a petition pending or an order related to custody or
            90260     parent-time entered under Title 30, Chapter 3, Divorce, Title 30, Chapter 6, Cohabitant Abuse
            90261     Act, or Title 78, Chapter 45g, Utah Uniform Parentage Act, in which the petitioner and the
            90262     respondent are parties; and
            90263         (iii) the best interests of the child will be better served in the district court;
            90264         (e) appointment of a guardian of the person or other guardian of a minor who comes
            90265     within the court's jurisdiction under other provisions of this section;
            90266         (f) the emancipation of a minor in accordance with Part 10, Emancipation;
            90267         (g) the termination of the legal parent-child relationship in accordance with Part 4,
            90268     Termination of Parental Rights Act, including termination of residual parental rights and duties;
            90269         (h) the treatment or commitment of a mentally retarded minor;
            90270         (i) a minor who is a habitual truant from school;
            90271         (j) the judicial consent to the marriage of a child under age 16 upon a determination of
            90272     voluntariness or where otherwise required by law, employment, or enlistment of a child when
            90273     consent is required by law;

            90274         (k) any parent or parents of a child committed to a secure youth corrections facility, to
            90275     order, at the discretion of the court and on the recommendation of a secure facility, the parent
            90276     or parents of a child committed to a secure facility for a custodial term, to undergo group
            90277     rehabilitation therapy under the direction of a secure facility therapist, who has supervision of
            90278     that parent's or parents' child, or any other therapist the court may direct, for a period directed
            90279     by the court as recommended by a secure facility;
            90280         (l) a minor under Title 55, Chapter 12, Interstate Compact for Juveniles;
            90281         (m) the treatment or commitment of a mentally ill child. The court may commit a child
            90282     to the physical custody of a local mental health authority in accordance with the procedures and
            90283     requirements of Title 62A, Chapter 15, Part 7, Commitment of Persons Under Age 18 to
            90284     Division of Substance Abuse and Mental Health. The court may not commit a child directly to
            90285     the Utah State Hospital;
            90286         (n) the commitment of a child in accordance with Section 62A-15-301 ;
            90287         (o) de novo review of final agency actions resulting from an informal adjudicative
            90288     proceeding as provided in Section [ 63-46b-15 ] 63G-4-402 ; and
            90289         (p) adoptions conducted in accordance with the procedures described in Title 78,
            90290     Chapter 30, Adoption, when the juvenile court has previously entered an order terminating the
            90291     rights of a parent and finds that adoption is in the best interest of the child.
            90292         (2) In addition to the provisions of Subsection (1)(a) the juvenile court has exclusive
            90293     jurisdiction over any traffic or boating offense committed by a person under 16 years of age and
            90294     concurrent jurisdiction over all other traffic or boating offenses committed by a person 16 years
            90295     of age or older, except that the court shall have exclusive jurisdiction over the following
            90296     offenses committed by a child:
            90297         (a) Section 76-5-207 , automobile homicide;
            90298         (b) Section 41-6a-502 , operating a vehicle while under the influence of alcohol or
            90299     drugs;
            90300         (c) Section 41-6a-528 , reckless driving or Section 73-18-12 , reckless operation;
            90301         (d) Section 41-1a-1314 , unauthorized control over a motor vehicle, trailer, or

            90302     semitrailer for an extended period of time; and
            90303         (e) Section 41-6a-210 or 73-18-20 , fleeing a peace officer.
            90304         (3) The court also has jurisdiction over traffic and boating offenses that are part of a
            90305     single criminal episode filed in a petition that contains an offense over which the court has
            90306     jurisdiction.
            90307         (4) The juvenile court has jurisdiction over an ungovernable or runaway child who is
            90308     referred to it by the Division of Child and Family Services or by public or private agencies that
            90309     contract with the division to provide services to that child where, despite earnest and persistent
            90310     efforts by the division or agency, the child has demonstrated that the child:
            90311         (a) is beyond the control of the child's parent, guardian, lawful custodian, or school
            90312     authorities to the extent that the child's behavior or condition endangers the child's own welfare
            90313     or the welfare of others; or
            90314         (b) has run away from home.
            90315         (5) This section does not restrict the right of access to the juvenile court by private
            90316     agencies or other persons.
            90317         (6) The juvenile court has jurisdiction of all magistrate functions relative to cases arising
            90318     under Section 78-3a-602 .
            90319         (7) The juvenile court has jurisdiction to make a finding of substantiated,
            90320     unsubstantiated, or without merit, in accordance with Section 78-3a-320 .
            90321         Section 2215. Section 78-3a-113 is amended to read:
            90322          78-3a-113. Minor taken into custody by peace officer, private citizen, or
            90323      probation officer -- Grounds -- Notice requirements -- Release or detention -- Grounds
            90324      for peace officer to take adult into custody.
            90325         (1) A minor may be taken into custody by a peace officer without order of the court if:
            90326         (a) in the presence of the officer the minor has violated a state law, federal law, local
            90327     law, or municipal ordinance;
            90328         (b) there are reasonable grounds to believe the minor has committed an act which if
            90329     committed by an adult would be a felony;

            90330         (c) the minor:
            90331         (i) (A) is seriously endangered in the minor's surroundings; or
            90332         (B) seriously endangers others; and
            90333         (ii) immediate removal appears to be necessary for the minor's protection or the
            90334     protection of others;
            90335         (d) there are reasonable grounds to believe the minor has run away or escaped from the
            90336     minor's parents, guardian, or custodian; or
            90337         (e) there is reason to believe that the minor is:
            90338         (i) subject to the state's compulsory education law; and
            90339         (ii) absent from school without legitimate or valid excuse, subject to Section
            90340      53A-11-105 .
            90341         (2) (a) A private citizen or a probation officer may take a minor into custody if under
            90342     the circumstances he could make a citizen's arrest if the minor was an adult.
            90343         (b) A probation officer may also take a minor into custody under Subsection (1) or if
            90344     the minor has violated the conditions of probation, if the minor is under the continuing
            90345     jurisdiction of the juvenile court or in emergency situations in which a peace officer is not
            90346     immediately available.
            90347         (3) (a) (i) If an officer or other person takes a minor into temporary custody, he shall
            90348     without unnecessary delay notify the parents, guardian, or custodian.
            90349         (ii) The minor shall then be released to the care of the minor's parent or other
            90350     responsible adult, unless the minor's immediate welfare or the protection of the community
            90351     requires the minor's detention.
            90352         (b) If the minor is taken into custody or detention for a violent felony, as defined in
            90353     Section 76-3-203.5 , or an offense in violation of Title 76, Chapter 10, Part 5, Weapons, the
            90354     officer or other law enforcement agent taking the minor into custody shall, as soon as
            90355     practicable or as established under Subsection 53A-11-1001 (2), notify the school
            90356     superintendent of the district in which the minor resides or attends school for the purposes of
            90357     the minor's supervision and student safety.

            90358         (i) The notice shall disclose only:
            90359         (A) the name of the minor;
            90360         (B) the offense for which the minor was taken into custody or detention; and
            90361         (C) if available, the name of the victim, if the victim:
            90362         (I) resides in the same school district as the minor; or
            90363         (II) attends the same school as the minor.
            90364         (ii) The notice shall be classified as a protected record under Section [ 63-2-304 ]
            90365      63G-2-305 .
            90366         (iii) All other records disclosures are governed by [Title 63, Chapter 2] Title 63G,
            90367     Chapter 2, Government Records Access and Management Act and the Federal Family
            90368     Educational Rights and Privacy Act.
            90369         (c) Employees of a governmental agency are immune from any criminal liability for
            90370     providing or failing to provide the information required by this section unless the person acts or
            90371     fails to act due to malice, gross negligence, or deliberate indifference to the consequences.
            90372         (d) Before the minor is released, the parent or other person to whom the minor is
            90373     released shall be required to sign a written promise on forms supplied by the court to bring the
            90374     minor to the court at a time set or to be set by the court.
            90375         (4) (a) A child may not be held in temporary custody by law enforcement any longer
            90376     than is reasonably necessary to obtain the child's name, age, residence, and other necessary
            90377     information and to contact the child's parents, guardian, or custodian.
            90378         (b) If the minor is not released under Subsection (3), the minor shall be taken to a place
            90379     of detention or shelter without unnecessary delay.
            90380         (5) (a) The person who takes a minor to a detention or shelter facility shall promptly file
            90381     with the detention or shelter facility a written report on a form provided by the division stating
            90382     the details of the presently alleged offense, the facts which bring the minor within the
            90383     jurisdiction of the juvenile court, and the reason the minor was not released by law enforcement.
            90384         (b) (i) The designated youth corrections facility staff person shall immediately review
            90385     the form and determine, based on the guidelines for detention admissions established by the

            90386     Division of Juvenile Justice Services under Section 62A-7-202 , whether to admit the minor to
            90387     secure detention, admit the minor to home detention, place the minor in a placement other than
            90388     detention, or return the minor home upon written promise to bring the minor to the court at a
            90389     time set, or without restriction.
            90390         (ii) If the designated youth corrections facility staff person determines to admit the
            90391     minor to home detention, that staff person shall notify the juvenile court of that determination.
            90392     The court shall order that notice be provided to the designated persons in the local law
            90393     enforcement agency and the school or transferee school, if applicable, which the minor attends
            90394     of the home detention. The designated persons may receive the information for purposes of the
            90395     minor's supervision and student safety.
            90396         (iii) Any employee of the local law enforcement agency and the school which the minor
            90397     attends who discloses the notification of home detention is not:
            90398         (A) civilly liable except when disclosure constitutes fraud or willful misconduct as
            90399     provided in Section [ 63-30d-202 ] 63G-7-202 ; and
            90400         (B) civilly or criminally liable except when disclosure constitutes a knowing violation of
            90401     Section [ 63-2-801 ] 63G-2-801 .
            90402         (c) A minor may not be admitted to detention unless the minor is detainable based on
            90403     the guidelines or the minor has been brought to detention pursuant to a judicial order or division
            90404     warrant pursuant to Section 62A-7-504 .
            90405         (d) If a minor taken to detention does not qualify for admission under the guidelines
            90406     established by the division under Section 62A-7-104 , detention staff shall arrange appropriate
            90407     placement.
            90408         (e) If a minor is taken into custody and admitted to a secure detention or shelter facility,
            90409     facility staff shall:
            90410         (i) immediately notify the minor's parents, guardian, or custodian; and
            90411         (ii) promptly notify the court of the placement.
            90412         (f) If the minor is admitted to a secure detention or shelter facility outside the county of
            90413     the minor's residence and it is determined in the hearing held under Subsection 78-3a-114 (3)

            90414     that detention shall continue, the judge or commissioner shall direct the sheriff of the county of
            90415     the minor's residence to transport the minor to a detention or shelter facility as provided in this
            90416     section.
            90417         (6) A person may be taken into custody by a peace officer without a court order if the
            90418     person is in apparent violation of a protective order or if there is reason to believe that a child is
            90419     being abused by the person and any of the situations outlined in Section 77-7-2 exist.
            90420         Section 2216. Section 78-3a-114 is amended to read:
            90421          78-3a-114. Placement of minor in detention or shelter facility -- Grounds --
            90422      Detention hearings -- Period of detention -- Notice -- Confinement for criminal
            90423      proceedings -- Bail laws inapplicable, exception.
            90424         (1) (a) A minor may not be placed or kept in a secure detention facility pending court
            90425     proceedings unless it is unsafe for the public to leave the minor with the minor's parents,
            90426     guardian, or custodian and the minor is detainable based on guidelines promulgated by the
            90427     Division of Juvenile Justice Services.
            90428         (b) A child who must be taken from the child's home but who does not require physical
            90429     restriction shall be given temporary care in a shelter facility and may not be placed in a detention
            90430     facility.
            90431         (c) A child may not be placed or kept in a shelter facility pending court proceedings
            90432     unless it is unsafe to leave the child with the child's parents, guardian, or custodian.
            90433         (2) After admission of a child to a detention facility pursuant to the guidelines
            90434     established by the Division of Juvenile Justice Services and immediate investigation by an
            90435     authorized officer of the court, the judge or the officer shall order the release of the child to the
            90436     child's parents, guardian, or custodian if it is found the child can be safely returned to their care,
            90437     either upon written promise to bring the child to the court at a time set or without restriction.
            90438         (a) If a child's parent, guardian, or custodian fails to retrieve the child from a facility
            90439     within 24 hours after notification of release, the parent, guardian, or custodian is responsible for
            90440     the cost of care for the time the child remains in the facility.
            90441         (b) The facility shall determine the cost of care.

            90442         (c) Any money collected under this Subsection (2) shall be retained by the Division of
            90443     Juvenile Justice Services to recover the cost of care for the time the child remains in the facility.
            90444         (3) (a) When a child is detained in a detention or shelter facility, the parents or guardian
            90445     shall be informed by the person in charge of the facility that they have the right to a prompt
            90446     hearing in court to determine whether the child is to be further detained or released.
            90447         (b) When a minor is detained in a detention facility, the minor shall be informed by the
            90448     person in charge of the facility that the minor has the right to a prompt hearing in court to
            90449     determine whether the minor is to be further detained or released.
            90450         (c) Detention hearings shall be held by the judge or by a commissioner.
            90451         (d) The court may, at any time, order the release of the minor, whether a detention
            90452     hearing is held or not.
            90453         (e) If a child is released, and the child remains in the facility, because the parents,
            90454     guardian, or custodian fails to retrieve the child, the parents, guardian, or custodian shall be
            90455     responsible for the cost of care as provided in Subsections (2)(a), (b), and (c).
            90456         (4) (a) A minor may not be held in a detention facility longer than 48 hours prior to a
            90457     detention hearing, excluding weekends and holidays, unless the court has entered an order for
            90458     continued detention.
            90459         (b) A child may not be held in a shelter facility longer than 48 hours prior to a shelter
            90460     hearing, excluding weekends and holidays, unless a court order for extended shelter has been
            90461     entered by the court after notice to all parties described in Section 78-3a-306 .
            90462         (c) A hearing for detention or shelter may not be waived. Detention staff shall provide
            90463     the court with all information received from the person who brought the minor to the detention
            90464     facility.
            90465         (d) If the court finds at a detention hearing that it is not safe to release the minor, the
            90466     judge or commissioner may order the minor to be held in the facility or be placed in another
            90467     appropriate facility, subject to further order of the court.
            90468         (e) (i) After a detention hearing has been held, only the court may release a minor from
            90469     detention. If a minor remains in a detention facility, periodic reviews shall be held pursuant to

            90470     the Utah State Juvenile Court Rules of Practice and Procedure to ensure that continued
            90471     detention is necessary.
            90472         (ii) After a detention hearing for a violent felony, as defined in Section 76-3-203.5 , or
            90473     an offense in violation of Title 76, Chapter 10, Part 5, Weapons, the court shall direct that
            90474     notice of its decision, including any disposition, order, or no contact orders, be provided to
            90475     designated persons in the appropriate local law enforcement agency and district superintendent
            90476     or the school or transferee school, if applicable, that the minor attends. The designated persons
            90477     may receive the information for purposes of the minor's supervision and student safety.
            90478         (iii) Any employee of the local law enforcement agency, school district, and the school
            90479     that the minor attends who discloses the court's order of probation is not:
            90480         (A) civilly liable except when the disclosure constitutes fraud or willful misconduct as
            90481     provided in Section [ 63-30d-202 ] 63G-7-202 ; and
            90482         (B) civilly or criminally liable except when disclosure constitutes a knowing violation of
            90483     Section [ 63-2-801 ] 63G-2-801 .
            90484         (5) A minor may not be held in a detention facility, following a dispositional order of
            90485     the court for nonsecure substitute care as defined in Section 62A-4a-101 , or for
            90486     community-based placement under Section 62A-7-101 for longer than 72 hours, excluding
            90487     weekends and holidays. The period of detention may be extended by the court for one period of
            90488     seven calendar days if:
            90489         (a) the Division of Juvenile Justice Services or another agency responsible for
            90490     placement files a written petition with the court requesting the extension and setting forth good
            90491     cause; and
            90492         (b) the court enters a written finding that it is in the best interests of both the minor and
            90493     the community to extend the period of detention.
            90494         (6) The agency requesting an extension shall promptly notify the detention facility that a
            90495     written petition has been filed.
            90496         (7) The court shall promptly notify the detention facility regarding its initial disposition
            90497     and any ruling on a petition for an extension, whether granted or denied.

            90498         (8) (a) A child under 16 years of age may not be held in a jail, lockup, or other place for
            90499     adult detention except as provided by Section 62A-7-201 or unless certified as an adult
            90500     pursuant to Section 78-3a-603 . The provisions of Section 62A-7-201 regarding confinement
            90501     facilities apply to this Subsection (8).
            90502         (b) A child 16 years of age or older whose conduct or condition endangers the safety or
            90503     welfare of others in the detention facility for children may, by court order that specifies the
            90504     reasons, be detained in another place of confinement considered appropriate by the court,
            90505     including a jail or other place of confinement for adults. However, a secure youth corrections
            90506     facility is not an appropriate place of confinement for detention purposes under this section.
            90507         (9) A sheriff, warden, or other official in charge of a jail or other facility for the
            90508     detention of adult offenders or persons charged with crime shall immediately notify the juvenile
            90509     court when a person who is or appears to be under 18 years of age is received at the facility and
            90510     shall make arrangements for the transfer of the person to a detention facility, unless otherwise
            90511     ordered by the juvenile court.
            90512         (10) This section does not apply to a minor who is brought to the adult facility under
            90513     charges pursuant to Section 78-3a-602 or by order of the juvenile court to be held for criminal
            90514     proceedings in the district court under Section 78-3a-603 .
            90515         (11) A minor held for criminal proceedings under Section 78-3a-602 or 78-3a-603 may
            90516     be detained in a jail or other place of detention used for adults charged with crime.
            90517         (12) Provisions of law regarding bail are not applicable to minors detained or taken into
            90518     custody under this chapter, except that bail may be allowed:
            90519         (a) if a minor who need not be detained lives outside this state; or
            90520         (b) when a minor who need not be detained comes within one of the classes in
            90521     Subsection 78-3a-503 (11).
            90522         (13) Section 76-8-418 is applicable to a child who willfully and intentionally commits an
            90523     act against a jail or other place of confinement, including a Division of Juvenile Justice Services
            90524     detention, shelter, or secure confinement facility which would be a third degree felony if
            90525     committed by an adult.

            90526         Section 2217. Section 78-3a-116 is amended to read:
            90527          78-3a-116. Hearings -- Record -- County attorney or district attorney
            90528      responsibilities -- Attorney general responsibilities -- Disclosure -- Admissibility of
            90529      evidence.
            90530         (1) (a) A verbatim record of the proceedings shall be taken by an official court reporter
            90531     or by means of a mechanical recording device in all cases that might result in deprivation of
            90532     custody as defined in this chapter. In all other cases a verbatim record shall also be made unless
            90533     dispensed with by the court.
            90534         (b) (i) Notwithstanding any other provision, including [Title 63, Chapter 2] Title 63G,
            90535     Chapter 2, Government Records Access and Management Act, a record of a proceeding made
            90536     under Subsection (1)(a) shall be released by the court to any person upon a finding on the
            90537     record for good cause.
            90538         (ii) Following a petition for a record of a proceeding made under Subsection (1)(a), the
            90539     court shall:
            90540         (A) provide notice to all subjects of the record that a request for release of the record
            90541     has been made; and
            90542         (B) allow sufficient time for the subjects of the record to respond before making a
            90543     finding on the petition.
            90544         (iii) A record of a proceeding may not be released under this Subsection (1)(b) if the
            90545     court's jurisdiction over the subjects of the proceeding ended more than 12 months prior to the
            90546     request.
            90547         (iv) For purposes of this Subsection (1)(b):
            90548         (A) "record of a proceeding" does not include documentary materials of any type
            90549     submitted to the court as part of the proceeding, including items submitted under Subsection
            90550     (4)(a); and
            90551         (B) "subjects of the record" includes the child's guardian ad litem, the child's legal
            90552     guardian, the Division of Child and Family Services, and any other party to the proceeding.
            90553         (v) This Subsection (1)(b) applies:

            90554         (A) to records of proceedings made on or after November 1, 2003 in districts selected
            90555     by the Judicial Council as pilot districts under Subsection 78-3-21 (15)(a); and
            90556         (B) to records of proceedings made on or after July 1, 2004 in all other districts.
            90557         (2) (a) Except as provided in Subsection (2)(b), the county attorney or, if within a
            90558     prosecution district, the district attorney shall represent the state in any proceeding in a minor's
            90559     case.
            90560         (b) The attorney general shall enforce all provisions of Title 62A, Chapter 4a, Child and
            90561     Family Services, and Title 78, Chapter 3a, Juvenile Court Act of 1996, relating to:
            90562         (i) protection or custody of an abused, neglected, or dependent child; and
            90563         (ii) petitions for termination of parental rights.
            90564         (c) The attorney general shall represent the Division of Child and Family Services in
            90565     actions involving a minor who is not adjudicated as abused or neglected, but who is otherwise
            90566     committed to the custody of that division by the juvenile court, and who is classified in the
            90567     division's management information system as having been placed in custody primarily on the
            90568     basis of delinquent behavior or a status offense. Nothing in this Subsection (2)(c) may be
            90569     construed to affect the responsibility of the county attorney or district attorney to represent the
            90570     state in those matters, in accordance with the provisions of Subsection (2)(a).
            90571         (3) The board may adopt special rules of procedure to govern proceedings involving
            90572     violations of traffic laws or ordinances, fish and game laws, and boating laws. However,
            90573     proceedings involving offenses under Section 78-3a-506 are governed by that section regarding
            90574     suspension of driving privileges.
            90575         (4) (a) For the purposes of determining proper disposition of the minor in dispositional
            90576     hearings and establishing the fact of abuse, neglect, or dependency in adjudication hearings and
            90577     in hearings upon petitions for termination of parental rights, written reports and other material
            90578     relating to the minor's mental, physical, and social history and condition may be received in
            90579     evidence and may be considered by the court along with other evidence. The court may require
            90580     that the person who wrote the report or prepared the material appear as a witness if the person
            90581     is reasonably available.

            90582         (b) For the purpose of determining proper disposition of a minor alleged to be or
            90583     adjudicated as abused, neglected, or dependent, dispositional reports prepared by Foster Care
            90584     Citizen Review Boards pursuant to Section 78-3g-103 may be received in evidence and may be
            90585     considered by the court along with other evidence. The court may require any person who
            90586     participated in preparing the dispositional report to appear as a witness, if the person is
            90587     reasonably available.
            90588         (5) (a) In an abuse, neglect, or dependency proceeding occurring after the
            90589     commencement of a shelter hearing under Section 78-3a-306 or the filing of a petition under
            90590     Section 78-3a-305 , each party to the proceeding shall provide in writing to the other parties or
            90591     their counsel any information which the party:
            90592         (i) plans to report to the court at the proceeding; or
            90593         (ii) could reasonably expect would be requested of the party by the court at the
            90594     proceeding.
            90595         (b) The disclosure required under Subsection (5)(a) shall be made:
            90596         (i) for dispositional hearings under Sections 78-3a-310 and 78-3a-311 , no less than five
            90597     days before the proceeding;
            90598         (ii) for proceedings under Title 78, Chapter 3a, Part 4, Termination of Parental Rights
            90599     Act, in accordance with Utah Rules of Civil Procedure; and
            90600         (iii) for all other proceedings, no less than five days before the proceeding.
            90601         (c) If a party to a proceeding obtains information after the deadline in Subsection (5)(b),
            90602     the information is exempt from the disclosure required under Subsection (5)(a) if the party
            90603     certifies to the court that the information was obtained after the deadline.
            90604         (d) Subsection (5)(a) does not apply to:
            90605         (i) pretrial hearings; and
            90606         (ii) the frequent, periodic review hearings held in a dependency drug court case to
            90607     assess and promote the parent's progress in substance abuse treatment.
            90608         (6) For the purpose of establishing the fact of abuse, neglect, or dependency, the court
            90609     may, in its discretion, consider evidence of statements made by a child under eight years of age

            90610     to a person in a trust relationship.
            90611         Section 2218. Section 78-3a-118 is amended to read:
            90612          78-3a-118. Adjudication of jurisdiction of juvenile court -- Disposition of cases --
            90613      Enumeration of possible court orders -- Considerations of court -- Obtaining DNA
            90614      sample.
            90615         (1) (a) When a minor is found to come within the provisions of Section 78-3a-104 , the
            90616     court shall so adjudicate. The court shall make a finding of the facts upon which it bases its
            90617     jurisdiction over the minor. However, in cases within the provisions of Subsection
            90618      78-3a-104 (1), findings of fact are not necessary.
            90619         (b) If the court adjudicates a minor for a crime of violence or an offense in violation of
            90620     Title 76, Chapter 10, Part 5, Weapons, it shall order that notice of the adjudication be provided
            90621     to the school superintendent of the district in which the minor resides or attends school. Notice
            90622     shall be made to the district superintendent within three days of the adjudication and shall
            90623     include:
            90624         (i) the specific offenses for which the minor was adjudicated; and
            90625         (ii) if available, if the victim:
            90626         (A) resides in the same school district as the minor; or
            90627         (B) attends the same school as the minor.
            90628         (2) Upon adjudication the court may make the following dispositions by court order:
            90629         (a) (i) The court may place the minor on probation or under protective supervision in
            90630     the minor's own home and upon conditions determined by the court, including compensatory
            90631     service as provided in Section 78-11-20.7 .
            90632         (ii) The court may place the minor in state supervision with the probation department of
            90633     the court, under the legal custody of:
            90634         (A) the minor's parent or guardian;
            90635         (B) the Division of Juvenile Justice Services; or
            90636         (C) the Division of Child and Family Services.
            90637         (iii) If the court orders probation or state supervision, the court shall direct that notice

            90638     of its order be provided to designated persons in the local law enforcement agency and the
            90639     school or transferee school, if applicable, that the minor attends. The designated persons may
            90640     receive the information for purposes of the minor's supervision and student safety.
            90641         (iv) Any employee of the local law enforcement agency and the school that the minor
            90642     attends who discloses the court's order of probation is not:
            90643         (A) civilly liable except when the disclosure constitutes fraud or willful misconduct as
            90644     provided in Section [ 63-30d-202 ] 63G-7-202 ; and
            90645         (B) civilly or criminally liable except when the disclosure constitutes a knowing
            90646     violation of Section [ 63-2-801 ] 63G-2-801 .
            90647         (b) The court may place the minor in the legal custody of a relative or other suitable
            90648     person, with or without probation or protective supervision, but the juvenile court may not
            90649     assume the function of developing foster home services.
            90650         (c) (i) The court may:
            90651         (A) vest legal custody of the minor in the Division of Child and Family Services,
            90652     Division of Juvenile Justice Services, or the Division of Substance Abuse and Mental Health;
            90653     and
            90654         (B) order the Department of Human Services to provide dispositional recommendations
            90655     and services.
            90656         (ii) For minors who may qualify for services from two or more divisions within the
            90657     Department of Human Services, the court may vest legal custody with the department.
            90658         (iii) (A) A minor who is committed to the custody of the Division of Child and Family
            90659     Services on grounds other than abuse or neglect is subject to the provisions of Title 78, Chapter
            90660     3a, Part 3A, Minors in Custody on Grounds Other Than Abuse or Neglect, and Title 62A,
            90661     Chapter 4a, Part 2A, Minors in Custody on Grounds Other Than Abuse or Neglect.
            90662         (B) Prior to the court entering an order to place a minor in the custody of the Division
            90663     of Child and Family Services on grounds other than abuse or neglect, the court shall provide the
            90664     division with notice of the hearing no later than five days before the time specified for the
            90665     hearing so the division may attend the hearing.

            90666         (C) Prior to committing a child to the custody of the Division of Child and Family
            90667     Services, the court shall make a finding as to what reasonable efforts have been attempted to
            90668     prevent the child's removal from the child's home.
            90669         (d) (i) The court may commit a minor to the Division of Juvenile Justice Services for
            90670     secure confinement.
            90671         (ii) A minor under the jurisdiction of the court solely on the ground of abuse, neglect,
            90672     or dependency under Subsection 78-3a-104 (1)(c) may not be committed to the Division of
            90673     Juvenile Justice Services.
            90674         (e) The court may commit a minor, subject to the court retaining continuing jurisdiction
            90675     over the minor, to the temporary custody of the Division of Juvenile Justice Services for
            90676     observation and evaluation for a period not to exceed 45 days, which period may be extended
            90677     up to 15 days at the request of the director of the Division of Juvenile Justice Services.
            90678         (f) (i) The court may commit a minor to a place of detention or an alternative to
            90679     detention for a period not to exceed 30 days subject to the court retaining continuing
            90680     jurisdiction over the minor. This commitment may be stayed or suspended upon conditions
            90681     ordered by the court.
            90682         (ii) This Subsection (2)(f) applies only to a minor adjudicated for:
            90683         (A) an act which if committed by an adult would be a criminal offense; or
            90684         (B) contempt of court under Section 78-3a-901 .
            90685         (g) The court may vest legal custody of an abused, neglected, or dependent minor in the
            90686     Division of Child and Family Services or any other appropriate person in accordance with the
            90687     requirements and procedures of Title 78, Chapter 3a, Part 3, Abuse, Neglect, and Dependency
            90688     Proceedings.
            90689         (h) The court may place a minor on a ranch or forestry camp, or similar facility for care
            90690     and also for work, if possible, if the person, agency, or association operating the facility has
            90691     been approved or has otherwise complied with all applicable state and local laws. A minor
            90692     placed in a forestry camp or similar facility may be required to work on fire prevention,
            90693     forestation and reforestation, recreational works, forest roads, and on other works on or off the

            90694     grounds of the facility and may be paid wages, subject to the approval of and under conditions
            90695     set by the court.
            90696         (i) (i) The court may order a minor to repair, replace, or otherwise make restitution for
            90697     damage or loss caused by the minor's wrongful act, including costs of treatment as stated in
            90698     Section 78-3a-318 and impose fines in limited amounts.
            90699         (ii) The court may also require a minor to reimburse an individual, entity, or
            90700     governmental agency who offered and paid a reward to a person or persons for providing
            90701     information resulting in a court adjudication that the minor is within the jurisdiction of the
            90702     juvenile court due to the commission of a criminal offense.
            90703         (iii) If a minor is returned to this state under the Interstate Compact on Juveniles, the
            90704     court may order the minor to make restitution for costs expended by any governmental entity
            90705     for the return.
            90706         (j) The court may issue orders necessary for the collection of restitution and fines
            90707     ordered by the court, including garnishments, wage withholdings, and executions.
            90708         (k) (i) The court may through its probation department encourage the development of
            90709     employment or work programs to enable minors to fulfill their obligations under Subsection
            90710     (2)(i) and for other purposes considered desirable by the court.
            90711         (ii) Consistent with the order of the court, the probation officer may permit a minor
            90712     found to be within the jurisdiction of the court to participate in a program of work restitution or
            90713     compensatory service in lieu of paying part or all of the fine imposed by the court.
            90714         (l) (i) In violations of traffic laws within the court's jurisdiction, the court may, in
            90715     addition to any other disposition authorized by this section:
            90716         (A) restrain the minor from driving for periods of time the court considers necessary;
            90717     and
            90718         (B) take possession of the minor's driver license.
            90719         (ii) The court may enter any other disposition under Subsection (2)(l)(i); however, the
            90720     suspension of driving privileges for an offense under Section 78-3a-506 are governed only by
            90721     Section 78-3a-506 .

            90722         (m) (i) When a minor is found within the jurisdiction of the juvenile court under Section
            90723      78-3a-104 because of violating Section 58-37-8 , Title 58, Chapter 37a, Utah Drug
            90724     Paraphernalia Act, or Title 58, Chapter 37b, Imitation Controlled Substances Act, the court
            90725     shall, in addition to any fines or fees otherwise imposed, order that the minor perform a
            90726     minimum of 20 hours, but no more than 100 hours, of compensatory service. Satisfactory
            90727     completion of an approved substance abuse prevention or treatment program may be credited
            90728     by the court as compensatory service hours.
            90729         (ii) When a minor is found within the jurisdiction of the juvenile court under Section
            90730      78-3a-104 because of a violation of Section 32A-12-209 or Subsection 76-9-701 (1), the court
            90731     may, upon the first adjudication, and shall, upon a second or subsequent adjudication, order that
            90732     the minor perform a minimum of 20 hours, but no more than 100 hours of compensatory
            90733     service, in addition to any fines or fees otherwise imposed. Satisfactory completion of an
            90734     approved substance abuse prevention or treatment program may be credited by the court as
            90735     compensatory service hours.
            90736         (n) (i) Subject to Subsection (2)(n)(iii), the court may order that a minor:
            90737         (A) be examined or treated by a physician, surgeon, psychiatrist, or psychologist; or
            90738         (B) receive other special care.
            90739         (ii) For purposes of receiving the examination, treatment, or care described in
            90740     Subsection (2)(n)(i), the court may place the minor in a hospital or other suitable facility.
            90741         (iii) In determining whether to order the examination, treatment, or care described in
            90742     Subsection (2)(n)(i), the court shall consider:
            90743         (A) the desires of the minor;
            90744         (B) if the minor is under the age of 18, the desires of the parents or guardian of the
            90745     minor; and
            90746         (C) whether the potential benefits of the examination, treatment, or care outweigh the
            90747     potential risks and side-effects, including behavioral disturbances, suicidal ideation, brain
            90748     function impairment, or emotional or physical harm resulting from the compulsory nature of the
            90749     examination, treatment, or care.

            90750         (o) (i) The court may appoint a guardian for the minor if it appears necessary in the
            90751     interest of the minor, and may appoint as guardian a public or private institution or agency in
            90752     which legal custody of the minor is vested.
            90753         (ii) In placing a minor under the guardianship or legal custody of an individual or of a
            90754     private agency or institution, the court shall give primary consideration to the welfare of the
            90755     minor. When practicable, the court may take into consideration the religious preferences of the
            90756     minor and of a child's parents.
            90757         (p) (i) In support of a decree under Section 78-3a-104 , the court may order reasonable
            90758     conditions to be complied with by a minor's parents or guardian, a minor, a minor's custodian,
            90759     or any other person who has been made a party to the proceedings. Conditions may include:
            90760         (A) parent-time by the parents or one parent;
            90761         (B) restrictions on the minor's associates;
            90762         (C) restrictions on the minor's occupation and other activities; and
            90763         (D) requirements to be observed by the parents or custodian.
            90764         (ii) A minor whose parents or guardians successfully complete a family or other
            90765     counseling program may be credited by the court for detention, confinement, or probation time.
            90766         (q) The court may order the child to be committed to the physical custody of a local
            90767     mental health authority, in accordance with the procedures and requirements of Title 62A,
            90768     Chapter 15, Part 7, Commitment of Persons Under Age 18 to Division of Substance Abuse and
            90769     Mental Health.
            90770         (r) (i) The court may make an order committing a minor within the court's jurisdiction
            90771     to the Utah State Developmental Center if the minor has mental retardation in accordance with
            90772     the provisions of Title 62A, Chapter 5, Part 3, Admission to Mental Retardation Facility.
            90773         (ii) The court shall follow the procedure applicable in the district courts with respect to
            90774     judicial commitments to the Utah State Developmental Center when ordering a commitment
            90775     under Subsection (2)(r)(i).
            90776         (s) The court may terminate all parental rights upon a finding of compliance with the
            90777     provisions of Title 78, Chapter 3a, Part 4, Termination of Parental Rights Act.

            90778         (t) The court may make any other reasonable orders for the best interest of the minor or
            90779     as required for the protection of the public, except that a child may not be committed to jail or
            90780     prison.
            90781         (u) The court may combine the dispositions listed in this section if they are compatible.
            90782         (v) Before depriving any parent of custody, the court shall give due consideration to the
            90783     rights of parents concerning their child. The court may transfer custody of a minor to another
            90784     person, agency, or institution in accordance with the requirements and procedures of Title 78,
            90785     Chapter 3a, Part 3, Abuse, Neglect, and Dependency Proceedings.
            90786         (w) Except as provided in Subsection (2)(y)(i), an order under this section for probation
            90787     or placement of a minor with an individual or an agency shall include a date certain for a review
            90788     of the case by the court. A new date shall be set upon each review.
            90789         (x) In reviewing foster home placements, special attention shall be given to making
            90790     adoptable children available for adoption without delay.
            90791         (y) (i) The juvenile court may enter an order of permanent custody and guardianship
            90792     with an individual or relative of a child where the court has previously acquired jurisdiction as a
            90793     result of an adjudication of abuse, neglect, or dependency. The juvenile court may enter an
            90794     order for child support on behalf of the child against the natural or adoptive parents of the child.
            90795         (ii) Orders under Subsection (2)(y)(i):
            90796         (A) shall remain in effect until the child reaches majority;
            90797         (B) are not subject to review under Section 78-3a-119 ; and
            90798         (C) may be modified by petition or motion as provided in Section 78-3a-903 .
            90799         (iii) Orders permanently terminating the rights of a parent, guardian, or custodian and
            90800     permanent orders of custody and guardianship do not expire with a termination of jurisdiction of
            90801     the juvenile court.
            90802         (3) In addition to the dispositions described in Subsection (2), when a minor comes
            90803     within the court's jurisdiction, the minor may be given a choice by the court to serve in the
            90804     National Guard in lieu of other sanctions, provided:
            90805         (a) the minor meets the current entrance qualifications for service in the National Guard

            90806     as determined by a recruiter, whose determination is final;
            90807         (b) the minor is not under the jurisdiction of the court for any act that:
            90808         (i) would be a felony if committed by an adult;
            90809         (ii) is a violation of Title 58, Chapter 37, Utah Controlled Substances Act; or
            90810         (iii) was committed with a weapon; and
            90811         (c) the court retains jurisdiction over the minor under conditions set by the court and
            90812     agreed upon by the recruiter or the unit commander to which the minor is eventually assigned.
            90813         (4) (a) A DNA specimen shall be obtained from a minor who is under the jurisdiction of
            90814     the court as described in Subsection 53-10-403 (3). The specimen shall be obtained by
            90815     designated employees of the court or, if the minor is in the legal custody of the Division of
            90816     Juvenile Justice Services, then by designated employees of the division under Subsection
            90817      53-10-404 (5)(b).
            90818         (b) The responsible agency shall ensure that employees designated to collect the saliva
            90819     DNA specimens receive appropriate training and that the specimens are obtained in accordance
            90820     with accepted protocol.
            90821         (c) Reimbursements paid under Subsection 53-10-404 (2)(a) shall be placed in the DNA
            90822     Specimen Restricted Account created in Section 53-10-407 .
            90823         (d) Payment of the reimbursement is second in priority to payments the minor is
            90824     ordered to make for restitution under this section and treatment under Section 78-3a-318 .
            90825         Section 2219. Section 78-3a-504 is amended to read:
            90826          78-3a-504. Minor held in detention -- Credit for good behavior.
            90827         (1) The judge may order whether a minor held in detention under Subsection
            90828      78-3a-118 (2)(f) or 78-3a-901 (3) is eligible to receive credit for good behavior against the
            90829     period of detention. The rate of credit is one day for every three days served. The Division of
            90830     Juvenile Justice Services shall, in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3,
            90831     Utah Administrative Rulemaking Act, establish rules describing good behavior for which credit
            90832     may be earned.
            90833         (2) Any disposition including detention under Subsection 78-3a-118 (2)(f) or

            90834      78-3a-901 (3) shall be concurrent with any other order of detention.
            90835         Section 2220. Section 78-3a-505 is amended to read:
            90836          78-3a-505. Dispositional report required in minor's cases -- Exceptions.
            90837         (1) The probation department or other agency designated by the court shall make a
            90838     dispositional report in writing in all minor's cases in which a petition has been filed, except that
            90839     the court may dispense with the study and report in cases involving violations of traffic laws or
            90840     ordinances, violations of fish and game laws, boating laws, and other minor cases.
            90841         (2) When preparing a dispositional report and recommendation in a delinquency action,
            90842     the probation department or other agency designated by the court shall consider the juvenile
            90843     sentencing guidelines developed in accordance with Section [ 63-25a-304 ] 63M-7-404 and any
            90844     aggravating or mitigating circumstances.
            90845         (3) Where the allegations of a petition filed under Subsection 78-3a-104 (1) are denied,
            90846     the investigation may not be made until the court has made an adjudication.
            90847         Section 2221. Section 78-3a-904 is amended to read:
            90848          78-3a-904. When photographs, fingerprints, or HIV infection tests may be taken
            90849      -- Distribution -- Expungement.
            90850         (1) Photographs may be taken of a minor 14 years of age or older who:
            90851         (a) is taken into custody for the alleged commission of an offense under Sections
            90852      78-3a-104 , 78-3a-601 , and 78-3a-602 that would also be an offense if the minor were 18 years
            90853     of age or older; or
            90854         (b) has been determined to be a serious habitual offender for tracking under Section
            90855     [ 63-92-2 ] 63M-10-201 and is under the continuing jurisdiction of the Juvenile Court or the
            90856     Division of Juvenile Justice Services.
            90857         (2) (a) Fingerprints may be taken of a minor 14 years of age or older who:
            90858         (i) is taken into custody for the alleged commission of an offense that would be a felony
            90859     if the minor were 18 years of age or older;
            90860         (ii) has been determined to be a serious habitual offender for tracking under Section
            90861     [ 63-92-2 ] 63M-10-201 and is under the continuing jurisdiction of the Juvenile Court or the

            90862     Division of Juvenile Justice Services; or
            90863         (iii) is required to provide a DNA specimen under Section 53-10-403 .
            90864         (b) Fingerprints shall be forwarded to the Bureau of Criminal Identification and may be
            90865     stored by electronic medium.
            90866         (3) HIV testing may be conducted on a minor who is taken into custody after having
            90867     been adjudicated to have violated state law prohibiting a sexual offense under Title 76, Chapter
            90868     5, Part 4, Sexual Offenses, upon the request of the victim or the parent or guardian of a child
            90869     victim.
            90870         (4) HIV tests, photographs, and fingerprints may not be taken of a child younger than
            90871     14 years of age without the consent of the court.
            90872         (5) (a) Photographs may be distributed or disbursed to individuals or agencies other
            90873     than state or local law enforcement agencies only when a minor 14 years of age or older is
            90874     charged with an offense which would be a felony if committed by an adult.
            90875         (b) Fingerprints may be distributed or disbursed to individuals or agencies other than
            90876     state or local law enforcement agencies.
            90877         (6) When a minor's juvenile record is expunged, all photographs and other records as
            90878     ordered shall upon court order be destroyed by the law enforcement agency. Fingerprint records
            90879     may not be destroyed.
            90880         Section 2222. Section 78-3a-912 is amended to read:
            90881          78-3a-912. Appointment of attorney guardian ad litem -- Right of refusal --
            90882      Duties and responsibilities -- Training -- Trained staff and court-appointed special
            90883      advocate volunteers -- Costs -- Immunity -- Annual report.
            90884         (1) (a) The court:
            90885         (i) may appoint an attorney guardian ad litem to represent the best interest of a minor
            90886     involved in any case before the court; and
            90887         (ii) shall consider the best interest of a minor, consistent with the provisions of Section
            90888      62A-4a-201 , in determining whether to appoint a guardian ad litem.
            90889         (b) In all cases where an attorney guardian ad litem is appointed, the court shall make a

            90890     finding that establishes the necessity of the appointment.
            90891         (2) An attorney guardian ad litem shall represent the best interest of each child who may
            90892     become the subject of a petition alleging abuse, neglect, or dependency, from the earlier of the
            90893     day that:
            90894         (a) the child is removed from the child's home by the division; or
            90895         (b) the petition is filed.
            90896         (3) The Office of the Guardian Ad Litem Director, through an attorney guardian ad
            90897     litem, shall:
            90898         (a) represent the best interest of the minor in all proceedings;
            90899         (b) prior to representing any minor before the court, be trained in:
            90900         (i) applicable statutory, regulatory, and case law; and
            90901         (ii) accordance with the United States Department of Justice National Court Appointed
            90902     Special Advocate Association guidelines;
            90903         (c) conduct or supervise an independent investigation in order to obtain first-hand, a
            90904     clear understanding of the situation and needs of the minor;
            90905         (d) (i) personally meet with the minor;
            90906         (ii) personally interview the minor if the minor is old enough to communicate;
            90907         (iii) determine the minor's goals and concerns regarding placement; and
            90908         (iv) personally assess or supervise an assessment of the appropriateness and safety of
            90909     the minor's environment in each placement;
            90910         (e) file written motions, responses, or objections at all stages of a proceeding when
            90911     necessary to protect the best interest of a minor;
            90912         (f) personally or through a trained volunteer, paralegal, or other trained staff, attend all
            90913     administrative and foster care citizen review board hearings pertaining to the minor's case;
            90914         (g) participate in all appeals unless excused by order of the court;
            90915         (h) be familiar with local experts who can provide consultation and testimony regarding
            90916     the reasonableness and appropriateness of efforts made by the Division of Child and Family
            90917     Services to:

            90918         (i) maintain a minor in the minor's home; or
            90919         (ii) reunify a child with the child's parent;
            90920         (i) to the extent possible, and unless it would be detrimental to the minor, personally or
            90921     through a trained volunteer, paralegal, or other trained staff, keep the minor advised of:
            90922         (i) the status of the minor's case;
            90923         (ii) all court and administrative proceedings;
            90924         (iii) discussions with, and proposals made by, other parties;
            90925         (iv) court action; and
            90926         (v) the psychiatric, medical, or other treatment or diagnostic services that are to be
            90927     provided to the minor;
            90928         (j) review proposed orders for, and as requested by the court;
            90929         (k) prepare proposed orders with clear and specific directions regarding services,
            90930     treatment, evaluation, assessment, and protection of the minor and the minor's family; and
            90931         (l) personally or through a trained volunteer, paralegal, or other trained staff, monitor
            90932     implementation of a minor's child and family plan and any dispositional orders to:
            90933         (i) determine whether services ordered by the court:
            90934         (A) are actually provided; and
            90935         (B) are provided in a timely manner; and
            90936         (ii) attempt to assess whether services ordered by the court are accomplishing the
            90937     intended goal of the services.
            90938         (4) (a) Consistent with this Subsection (4), an attorney guardian ad litem may use
            90939     trained volunteers, in accordance with Title 67, Chapter 20, Volunteer Government Workers
            90940     Act, trained paralegals, and other trained staff to assist in investigation and preparation of
            90941     information regarding the cases of individual minors before the court.
            90942         (b) The attorney guardian ad litem described in Subsection (4)(a) may not delegate the
            90943     attorney's responsibilities described in Subsection (3).
            90944         (c) All volunteers, paralegals, and staff utilized pursuant to this section shall be trained
            90945     in and follow, at a minimum, the guidelines established by the United States Department of

            90946     Justice Court Appointed Special Advocate Association.
            90947         (d) The court may use volunteers trained in accordance with the requirements of
            90948     Subsection (4)(c) to assist in investigation and preparation of information regarding the cases of
            90949     individual minors within the jurisdiction.
            90950         (e) When possible and appropriate, the court may use a volunteer who is a peer of the
            90951     minor appearing before the court, in order to provide assistance to that minor, under the
            90952     supervision of an attorney guardian ad litem or the attorney's trained volunteer, paralegal, or
            90953     other trained staff.
            90954         (5) The attorney guardian ad litem shall continue to represent the best interest of the
            90955     minor until released from that duty by the court.
            90956         (6) (a) Consistent with Subsection (6)(b), the juvenile court is responsible for:
            90957         (i) all costs resulting from the appointment of an attorney guardian ad litem; and
            90958         (ii) the costs of volunteer, paralegal, and other staff appointment and training.
            90959         (b) The court shall use funds appropriated by the Legislature for the guardian ad litem
            90960     program to cover the costs described in Subsection (6)(a).
            90961         (c) (i) When the court appoints an attorney guardian ad litem under this section, the
            90962     court may assess all or part of the attorney's fees, court costs, and paralegal, staff, and volunteer
            90963     expenses against the child's parents, parent, or legal guardian in a proportion that the court
            90964     determines to be just and appropriate.
            90965         (ii) The court may not assess those fees or costs against:
            90966         (A) a legal guardian, when that guardian is the state; or
            90967         (B) consistent with Subsection (6)(d), a parent who is found to be impecunious.
            90968         (d) For purposes of Subsection (6)(c)(ii)(B), if a person claims to be impecunious, the
            90969     court shall:
            90970         (i) require that person to submit an affidavit of impecuniosity as provided in Section
            90971      78-7-36 ; and
            90972         (ii) follow the procedures and make the determinations as provided in Section 78-7-37 .
            90973         (7) An attorney guardian ad litem appointed under this section, when serving in the

            90974     scope of the attorney guardian ad litem's duties as guardian ad litem is considered an employee
            90975     of the state for purposes of indemnification under [Title 63, Chapter 30d] Title 63G, Chapter 7,
            90976     Governmental Immunity Act of Utah.
            90977         (8) (a) An attorney guardian ad litem shall represent the best interest of a minor.
            90978         (b) If the minor's wishes differ from the attorney's determination of the minor's best
            90979     interest, the attorney guardian ad litem shall communicate the minor's wishes to the court in
            90980     addition to presenting the attorney's determination of the minor's best interest.
            90981         (c) A difference between the minor's wishes and the attorney's determination of best
            90982     interest may not be considered a conflict of interest for the attorney.
            90983         (d) The court may appoint one attorney guardian ad litem to represent the best interests
            90984     of more than one child of a marriage.
            90985         (9) An attorney guardian ad litem shall be provided access to all Division of Child and
            90986     Family Services records regarding the minor at issue and the minor's family.
            90987         (10) An attorney guardian ad litem shall maintain current and accurate records
            90988     regarding:
            90989         (a) the number of times the attorney has had contact with each minor; and
            90990         (b) the actions the attorney has taken in representation of the minor's best interest.
            90991         (11) (a) Except as provided in Subsection (11)(b), all records of an attorney guardian
            90992     ad litem are confidential and may not be released or made public upon subpoena, search
            90993     warrant, discovery proceedings, or otherwise. This subsection supersedes [Title 63, Chapter 2]
            90994     Title 63G, Chapter 2, Government Records Access and Management Act.
            90995         (b) Consistent with Subsection (11)(d), all records of an attorney guardian ad litem:
            90996         (i) are subject to legislative subpoena, under Title 36, Chapter 14, Legislative Subpoena
            90997     Powers; and
            90998         (ii) shall be released to the Legislature.
            90999         (c) (i) Except as provided in Subsection (11)(c)(ii), records released in accordance with
            91000     Subsection (11)(b) shall be maintained as confidential by the Legislature.
            91001         (ii) Notwithstanding Subsection (11)(c)(i), the Office of the Legislative Auditor General

            91002     may include summary data and nonidentifying information in its audits and reports to the
            91003     Legislature.
            91004         (d) (i) Subsection (11)(b) constitutes an exception to Rules of Professional Conduct,
            91005     Rule 1.6, as provided by Rule 1.6(b)(4), because of:
            91006         (A) the unique role of an attorney guardian ad litem described in Subsection (8); and
            91007         (B) the state's role and responsibility:
            91008         (I) to provide a guardian ad litem program; and
            91009         (II) as parens patriae, to protect minors.
            91010         (ii) A claim of attorney-client privilege does not bar access to the records of an attorney
            91011     guardian ad litem by the Legislature, through legislative subpoena.
            91012         (e) The Office of the Guardian Ad Litem shall present an annual report to the Child
            91013     Welfare Legislative Oversight Panel detailing:
            91014         (i) the development, policy, and management of the statewide guardian ad litem
            91015     program;
            91016         (ii) the training and evaluation of attorney guardians ad litem and volunteers; and
            91017         (iii) the number of minors served by the Office of the Guardian Ad Litem.
            91018         Section 2223. Section 78-3g-102 is amended to read:
            91019          78-3g-102. Foster Care Citizen Review Board Steering Committee -- Membership
            91020      -- Chair -- Compensation -- Duties.
            91021         (1) There is created within state government the Foster Care Citizen Review Board
            91022     Steering Committee composed of the following members:
            91023         (a) a member of the Board of Child and Family Services, within the Department of
            91024     Human Services, appointed by the chair of that board;
            91025         (b) the director of the division, or his designee;
            91026         (c) a juvenile court judge, appointed by the presiding officer of the Judicial Council;
            91027         (d) a juvenile court administrator, appointed by the administrator of the courts;
            91028         (e) a representative of the Utah Foster Parents Association, appointed by the president
            91029     of that organization;

            91030         (f) a representative of a statewide advocacy organization for children, appointed by the
            91031     chair of the committee;
            91032         (g) a representative of an agency or organization that provides services to children who
            91033     have been adjudicated to be under the jurisdiction of the juvenile court, appointed by the chair
            91034     of the committee;
            91035         (h) the guardian ad litem director, appointed pursuant to Section 78-3a-911 , or the
            91036     director's designee;
            91037         (i) the director or chief of the child protection unit within the Office of the Attorney
            91038     General, or his designee;
            91039         (j) one person from each region who is a member of a board, appointed by the chair of
            91040     the committee; and
            91041         (k) a private citizen, appointed by the chair of the committee.
            91042         (2) The persons described in Subsection (1) shall annually elect a chair of the committee
            91043     from among themselves.
            91044         (3) A majority of the members of the committee constitutes a quorum. The action of
            91045     the majority of a quorum represents the action of the committee.
            91046         (4) (a) Members of the committee who are not government employees shall receive no
            91047     compensation or benefits for their services, but may receive per diem and expenses incurred in
            91048     the performance of the member's official duties at the rates established by the Division of
            91049     Finance under Sections 63A-3-106 and 63A-3-107 .
            91050         (b) State government officer and employee members who do not receive salary, per
            91051     diem, or expenses from their agency for their service may receive per diem and expenses
            91052     incurred in the performance of their official duties from the board at the rates established by the
            91053     Division of Finance under Sections 63A-3-106 and 63A-3-107 .
            91054         (c) Local government members who do not receive salary, per diem, or expenses from
            91055     the entity that they represent for their service may receive per diem and expenses incurred in the
            91056     performance of their official duties at the rates established by the Division of Finance under
            91057     Sections 63A-3-106 and 63A-3-107 .

            91058         (d) Members of the committee may decline to receive per diem and expenses for their
            91059     services.
            91060         (5) The committee shall:
            91061         (a) within appropriations from the Legislature, appoint members of boards in each
            91062     juvenile court district;
            91063         (b) supervise the recruitment, training, and retention of board members;
            91064         (c) supervise and evaluate the boards;
            91065         (d) establish and approve policies for the boards; and
            91066         (e) submit a report detailing the results of the boards to the Child Welfare Legislative
            91067     Oversight Panel, the Judiciary Interim Committee, and the Board of Juvenile Court Judges on or
            91068     before December 31 of each year.
            91069         (6) (a) The Department of Human Services shall provide fiscal management services,
            91070     including payroll and accounting services, to the committee.
            91071         (b) Within appropriations from the Legislature, the committee may hire professional and
            91072     clerical staff as it considers necessary and appropriate.
            91073         (7) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            91074     Administrative Rulemaking Act, the committee may make rules necessary for:
            91075         (a) recruitment, appointment, and training of board members;
            91076         (b) supervision and evaluation of boards; and
            91077         (c) establishment of policy for boards.
            91078         (8) The committee may receive gifts, grants, devises, and donations. If the donor
            91079     designates a specific purpose or use for the gift, grant, devise, or donation, it shall be used
            91080     solely for that purpose. Undesignated gifts, grants, devises, and donations shall be used for
            91081     foster care citizen review boards in accordance with the requirements and provisions of this
            91082     chapter.
            91083         Section 2224. Section 78-5-116 is amended to read:
            91084          78-5-116. Disposition of fines.
            91085         (1) Except as otherwise specified by this section, fines and forfeitures collected by a

            91086     justice court shall be remitted, 1/2 to the treasurer of the local government responsible for the
            91087     court and 1/2 to the treasurer of the local government which prosecutes or which would
            91088     prosecute the violation.
            91089         (2) (a) For violation of Title 23, the court shall allocate 85% to the Division of Wildlife
            91090     Resources and 15% to the general fund of the city or county government responsible for the
            91091     justice court.
            91092         (b) For violation of Title 41, Chapter 22, Off-highway Vehicles, or Title 73, Chapter
            91093     18, State Boating Act, the court shall allocate 85% to the Division of Parks and Recreation and
            91094     15% to the general fund of the city or county government responsible for the justice court.
            91095         (3) The surcharge established by Section [ 63-63a-1 ] 51-9-401 shall be paid to the state
            91096     treasurer.
            91097         (4) Fines, fees, court costs, and forfeitures collected by a municipal or county justice
            91098     court for a violation of Section 72-7-404 or 72-7-406 regarding maximum weight limitations
            91099     and overweight permits, minus court costs not to exceed the schedule adopted by the Judicial
            91100     Council, shall be paid to the state treasurer and distributed to the class B and C road account.
            91101         (5) Revenue deposited in the class B and C road account pursuant to Subsection (4) is
            91102     supplemental to the money appropriated under Section 72-2-107 but shall be expended in the
            91103     same manner as other class B and C road funds.
            91104         (6) Until July 1, 2007, fines and forfeitures collected by the court for a violation of
            91105     Subsection 41-1a-1303 (2) related to registration of vehicles after establishing residency shall be
            91106     remitted:
            91107         (a) 50% to the state or local governmental entity which issued the citation for a
            91108     violation to be used for law enforcement purposes; and
            91109         (b) 50% in accordance with Subsection (1).
            91110         Section 2225. Section 78-5-116.5 is amended to read:
            91111          78-5-116.5. Security surcharge -- Application -- Deposit in restricted accounts.
            91112         (1) In addition to any fine, penalty, forfeiture, or other surcharge, a security surcharge
            91113     of $32 shall be assessed on all convictions for offenses listed in the uniform bail schedule

            91114     adopted by the Judicial Council and moving traffic violations.
            91115         (2) The security surcharge shall be collected and distributed pro rata with any fine
            91116     collected. A fine that would otherwise have been charged may not be reduced due to the
            91117     imposition of the security surcharge.
            91118         (3) The security surcharge shall be allocated as follows:
            91119         (a) the assessing court shall retain 20% of the amount collected for deposit into the
            91120     general fund of the governmental entity; and
            91121         (b) 80% shall be remitted to the state treasurer to be distributed as follows:
            91122         (i) 62.5% to the treasurer of the county in which the justice court which remitted the
            91123     amount is located;
            91124         (ii) 25% to the Court Security Account created in Section 63-63c-102 ; and
            91125         (iii) 12.5% to the Justice Court Technology, Security, and Training Account created in
            91126     Section 78-5-116.7 .
            91127         (4) The court shall remit money collected in accordance with Title 51, Chapter 7, State
            91128     Money Management Act.
            91129         Section 2226. Section 78-6-14 is amended to read:
            91130          78-6-14. Civil filing fees.
            91131         (1) Except as provided in this section, the fees for a small claims action in justice court
            91132     shall be the same as provided in Section 78-7-35 .
            91133         (2) Fees collected in small claims actions filed in municipal justice court are remitted to
            91134     the municipal treasurer. Fees collected in small claims actions filed in a county justice court are
            91135     remitted to the county treasurer.
            91136         (3) (a) Seven dollars and 50 cents shall be withheld from the fee for the small claims
            91137     affidavit and allocated to the Judges' Retirement Trust Fund. Five dollars shall be withheld from
            91138     the fee for a small claims counter affidavit and allocated to the Judges' Retirement Trust Fund.
            91139         (b) Two dollars withheld from the civil filing fee in a court of record as provided in
            91140     Subsection [ 63-63a-8 ] 51-9-408 (4)(b) shall not apply to the fees collected for small claims
            91141     actions in justice court.

            91142         (4) The fee in the justice court for filing a notice of appeal for trial de novo in a court of
            91143     record is $10. The fee covers all services of the justice court on appeal but does not satisfy the
            91144     trial de novo filing fee in the court of record.
            91145         Section 2227. Section 78-7-35 is amended to read:
            91146          78-7-35. Civil fees of the courts of record -- Courts complex design.
            91147         (1) (a) The fee for filing any civil complaint or petition invoking the jurisdiction of a
            91148     court of record not governed by another subsection is $155.
            91149         (b) The fee for filing a complaint or petition is:
            91150         (i) $50 if the claim for damages or amount in interpleader exclusive of court costs,
            91151     interest, and attorney fees is $2,000 or less;
            91152         (ii) $95 if the claim for damages or amount in interpleader exclusive of court costs,
            91153     interest, and attorney fees is greater than $2,000 and less than $10,000;
            91154         (iii) $155 if the claim for damages or amount in interpleader is $10,000 or more;
            91155         (iv) $155 if the petition is filed under Title 30, Chapter 3, Divorce, or Title 30, Chapter
            91156     4, Separate Maintenance; and
            91157         (v) $25 for a motion for temporary separation order filed under Section 30-3-4.5 .
            91158         (c) The fee for filing a small claims affidavit is:
            91159         (i) $45 if the claim for damages or amount in interpleader exclusive of court costs,
            91160     interest, and attorney fees is $2,000 or less; and
            91161         (ii) $70 if the claim for damages or amount in interpleader exclusive of court costs,
            91162     interest, and attorney fees is greater than $2,000.
            91163         (d) The fee for filing a counter claim, cross claim, complaint in intervention, third party
            91164     complaint, or other claim for relief against an existing or joined party other than the original
            91165     complaint or petition is:
            91166         (i) $45 if the claim for relief exclusive of court costs, interest, and attorney fees is
            91167     $2,000 or less;
            91168         (ii) $75 if the claim for relief exclusive of court costs, interest, and attorney fees is
            91169     greater than $2,000 and less than $10,000;

            91170         (iii) $105 if the original petition is filed under Subsection (1)(a), the claim for relief is
            91171     $10,000 or more, or the party seeks relief other than monetary damages; and
            91172         (iv) $85 if the original petition is filed under Title 30, Chapter 3, Divorce, or Title 30,
            91173     Chapter 4, Separate Maintenance.
            91174         (e) The fee for filing a small claims counter affidavit is:
            91175         (i) $35 if the claim for relief exclusive of court costs, interest, and attorney fees is
            91176     $2,000 or less; and
            91177         (ii) $50 if the claim for relief exclusive of court costs, interest, and attorney fees is
            91178     greater than $2,000.
            91179         (f) The fee for depositing funds under Section 57-1-29 when not associated with an
            91180     action already before the court is determined under Subsection (1)(b) based on the amount
            91181     deposited.
            91182         (g) The fee for filing a petition is:
            91183         (i) $75 for trial de novo of an adjudication of the justice court or of the small claims
            91184     department; and
            91185         (ii) $55 for an appeal of a municipal administrative determination in accordance with
            91186     Section 10-3-703.7 .
            91187         (h) The fee for filing a notice of appeal, petition for appeal of an interlocutory order, or
            91188     petition for writ of certiorari is $205.
            91189         (i) (i) Except for a petition filed under Subsection 77-18-10 (2), the fee for filing a
            91190     petition for expungement is $65.
            91191         (ii) There is no fee for a petition filed under Subsection 77-18-10 (2).
            91192         (j) (i) Fifteen dollars of the fees established by Subsections (1)(a) through (i) shall be
            91193     allocated to and between the Judges' Contributory Retirement Trust Fund and the Judges'
            91194     Noncontributory Retirement Trust Fund, as provided in Title 49, Chapter 17, Judges'
            91195     Contributory Retirement Act, and Title 49, Chapter 18, Judges' Noncontributory Retirement
            91196     Act.
            91197         (ii) Four dollars of the fees established by Subsections (1)(a) through (i) shall be

            91198     allocated by the state treasurer to be deposited in the restricted account, Children's Legal
            91199     Defense Account, as provided in Section [ 63-63a-8 ] 51-9-408 .
            91200         (iii) Three dollars of the fees established under Subsections (1)(a) through (e), (1)(g),
            91201     and (1)(r) shall be allocated to and deposited with the Dispute Resolution Fund as provided in
            91202     Section 78-31b-9 .
            91203         (iv) Fifteen dollars of the fees established by Subsections (1)(a), (1)(b)(iii) and (iv),
            91204     (1)(d)(iii) and (iv), (1)(g)(ii), (1)(h), and (1)(i) shall be allocated by the state treasurer to be
            91205     deposited in the restricted account, Court Security Account, as provided in Section 63-63c-102 .
            91206         (v) Five dollars of the fees established by Subsections (1)(b)(i) and (ii), (1)(d)(ii) and
            91207     (1)(g)(i) shall be allocated by the state treasurer to be deposited in the restricted account, Court
            91208     Security Account, as provided in Section 63-63c-102 .
            91209         (k) The fee for filing a judgment, order, or decree of a court of another state or of the
            91210     United States is $25.
            91211         (l) The fee for filing probate or child custody documents from another state is $25.
            91212         (m) (i) The fee for filing an abstract or transcript of judgment, order, or decree of the
            91213     Utah State Tax Commission is $30.
            91214         (ii) The fee for filing an abstract or transcript of judgment of a court of law of this state
            91215     or a judgment, order, or decree of an administrative agency, commission, board, council, or
            91216     hearing officer of this state or of its political subdivisions other than the Utah State Tax
            91217     Commission, is $40.
            91218         (n) The fee for filing a judgment by confession without action under Section 78-22-3 is
            91219     $25.
            91220         (o) The fee for filing an award of arbitration for confirmation, modification, or vacation
            91221     under Title 78, Chapter 31a, Utah Uniform Arbitration Act, that is not part of an action before
            91222     the court is $25.
            91223         (p) The fee for filing a petition or counter-petition to modify a decree of divorce is $40.
            91224         (q) The fee for filing any accounting required by law is:
            91225         (i) $10 for an estate valued at $50,000 or less;

            91226         (ii) $20 for an estate valued at $75,000 or less but more than $50,000;
            91227         (iii) $40 for an estate valued at $112,000 or less but more than $75,000;
            91228         (iv) $80 for an estate valued at $168,000 or less but more than $112,000; and
            91229         (v) $150 for an estate valued at more than $168,000.
            91230         (r) The fee for filing a demand for a civil jury is $75.
            91231         (s) The fee for filing a notice of deposition in this state concerning an action pending in
            91232     another state under Utah Rule of Civil Procedure 26 is $25.
            91233         (t) The fee for filing documents that require judicial approval but are not part of an
            91234     action before the court is $25.
            91235         (u) The fee for a petition to open a sealed record is $25.
            91236         (v) The fee for a writ of replevin, attachment, execution, or garnishment is $35 in
            91237     addition to any fee for a complaint or petition.
            91238         (w) (i) The fee for a petition for authorization for a minor to marry required by Section
            91239      30-1-9 is $5.
            91240         (ii) The fee for a petition for emancipation of a minor provided in Title 78, Chapter 3a,
            91241     Part 10, Emancipation, is $50.
            91242         (x) The fee for a certificate issued under Section 26-2-25 is $2.
            91243         (y) The fee for a certified copy of a document is $4 per document plus 50 cents per
            91244     page.
            91245         (z) The fee for an exemplified copy of a document is $6 per document plus 50 cents per
            91246     page.
            91247         (aa) The Judicial Council shall by rule establish a schedule of fees for copies of
            91248     documents and forms and for the search and retrieval of records under [Title 63, Chapter 2]
            91249     Title 63G, Chapter 2, Government Records Access and Management Act. Fees under this
            91250     Subsection (1)(aa) shall be credited to the court as a reimbursement of expenditures.
            91251         (bb) There is no fee for services or the filing of documents not listed in this section or
            91252     otherwise provided by law.
            91253         (cc) Except as provided in this section, all fees collected under this section are paid to

            91254     the General Fund. Except as provided in this section, all fees shall be paid at the time the clerk
            91255     accepts the pleading for filing or performs the requested service.
            91256         (dd) The filing fees under this section may not be charged to the state, its agencies, or
            91257     political subdivisions filing or defending any action. In judgments awarded in favor of the state,
            91258     its agencies, or political subdivisions, except the Office of Recovery Services, the court shall
            91259     order the filing fees and collection costs to be paid by the judgment debtor. The sums collected
            91260     under this Subsection (1)(dd) shall be applied to the fees after credit to the judgment, order,
            91261     fine, tax, lien, or other penalty and costs permitted by law.
            91262         (2) (a) (i) From March 17, 1994 until June 30, 1998, the administrator of the courts
            91263     shall transfer all revenues representing the difference between the fees in effect after May 2,
            91264     1994, and the fees in effect before February 1, 1994, as dedicated credits to the Division of
            91265     Facilities Construction and Management Capital Projects Fund.
            91266         (ii) (A) Except as provided in Subsection (2)(a)(ii)(B), the Division of Facilities
            91267     Construction and Management shall use up to $3,750,000 of the revenue deposited in the
            91268     Capital Projects Fund under this Subsection (2)(a) to design and take other actions necessary to
            91269     initiate the development of a courts complex in Salt Lake City.
            91270         (B) If the Legislature approves funding for construction of a courts complex in Salt
            91271     Lake City in the 1995 Annual General Session, the Division of Facilities Construction and
            91272     Management shall use the revenue deposited in the Capital Projects Fund under this Subsection
            91273     (2)(a)(ii) to construct a courts complex in Salt Lake City.
            91274         (C) After the courts complex is completed and all bills connected with its construction
            91275     have been paid, the Division of Facilities Construction and Management shall use any monies
            91276     remaining in the Capital Projects Fund under this Subsection (2)(a)(ii) to fund the Vernal
            91277     District Court building.
            91278         (iii) The Division of Facilities Construction and Management may enter into agreements
            91279     and make expenditures related to this project before the receipt of revenues provided for under
            91280     this Subsection (2)(a)(iii).
            91281         (iv) The Division of Facilities Construction and Management shall:

            91282         (A) make those expenditures from unexpended and unencumbered building funds
            91283     already appropriated to the Capital Projects Fund; and
            91284         (B) reimburse the Capital Projects Fund upon receipt of the revenues provided for
            91285     under this Subsection (2).
            91286         (b) After June 30, 1998, the administrator of the courts shall ensure that all revenues
            91287     representing the difference between the fees in effect after May 2, 1994, and the fees in effect
            91288     before February 1, 1994, are transferred to the Division of Finance for deposit in the restricted
            91289     account.
            91290         (c) The Division of Finance shall deposit all revenues received from the court
            91291     administrator into the restricted account created by this section.
            91292         (d) (i) From May 1, 1995 until June 30, 1998, the administrator of the courts shall
            91293     transfer $7 of the amount of a fine or bail forfeiture paid for a violation of Title 41, Motor
            91294     Vehicles, in a court of record to the Division of Facilities Construction and Management Capital
            91295     Projects Fund. The division of money pursuant to Section 78-3-14.5 shall be calculated on the
            91296     balance of the fine or bail forfeiture paid.
            91297         (ii) After June 30, 1998, the administrator of the courts or a municipality shall transfer
            91298     $7 of the amount of a fine or bail forfeiture paid for a violation of Title 41, Motor Vehicles, in a
            91299     court of record to the Division of Finance for deposit in the restricted account created by this
            91300     section. The division of money pursuant to Section 78-3-14.5 shall be calculated on the balance
            91301     of the fine or bail forfeiture paid.
            91302         (3) (a) There is created within the General Fund a restricted account known as the State
            91303     Courts Complex Account.
            91304         (b) The Legislature may appropriate monies from the restricted account to the
            91305     administrator of the courts for the following purposes only:
            91306         (i) to repay costs associated with the construction of the court complex that were
            91307     funded from sources other than revenues provided for under this Subsection (3)(b)(i); and
            91308         (ii) to cover operations and maintenance costs on the court complex.
            91309         Section 2228. Section 78-8-107 is amended to read:

            91310          78-8-107. Authority of Judicial Conduct Commission -- Disclosure of criminal
            91311      misconduct or information -- Procedure for reprimand, censure, suspension, removal, or
            91312      involuntary retirement -- Certain orders made public.
            91313         (1) (a) The commission shall receive and investigate any complaint against a judge.
            91314         (b) (i) If the commission receives a complaint that alleges conduct that may be a
            91315     misdemeanor or felony under state or federal law, it shall, unless the allegation is plainly
            91316     frivolous, immediately refer the allegation of criminal misconduct and any information relevant
            91317     to the potential criminal violation to the local prosecuting attorney having jurisdiction to
            91318     investigate and prosecute the crime.
            91319         (ii) If the local prosecuting attorney receiving the allegation of criminal misconduct of a
            91320     judge practices before that judge on a regular basis, or has a conflict of interest in investigating
            91321     the crime, the local prosecuting attorney shall refer this allegation of criminal misconduct to
            91322     another local or state prosecutor who would not have that same disability or conflict.
            91323         (iii) The commission may concurrently proceed with its investigation of the complaint
            91324     without waiting for the resolution of the criminal investigation by the prosecuting attorney.
            91325         (2) During the course of any investigation, the commission:
            91326         (a) shall refer any information relating to the criminal conduct alleged and any evidence
            91327     which relates to the allegation to which the judge has been accused, unless plainly frivolous, to
            91328     the local prosecuting attorney as provided in Subsection (1)(b); and
            91329         (b) may order a hearing to be held concerning the reprimand, censure, suspension,
            91330     removal, or involuntary retirement of a judge.
            91331         (3) The commission shall provide the judge with all information necessary to prepare an
            91332     adequate response or defense, which may include the identity of the complainant.
            91333         (4) (a) A hearing may be conducted before a quorum of the commission.
            91334         (b) Any finding or order shall be made upon a majority vote of the quorum.
            91335         (5) Alternatively, the commission may appoint three special masters, who are judges of
            91336     courts of record, to hear and take evidence in the matter and to report to the commission.
            91337         (6) (a) After the hearing or after considering the record and report of the masters, if the

            91338     commission finds by a preponderance of the evidence that misconduct occurred, it shall order
            91339     the reprimand, censure, suspension, removal, or involuntary retirement of the judge.
            91340         (b) When a commission order is sent to the Supreme Court, it shall also be:
            91341         (i) publicly disclosed; and
            91342         (ii) sent to the entity that appointed the judge.
            91343         (7) When the commission issues any order, including a stipulated order, that is sent to
            91344     the Supreme Court, the record shall include:
            91345         (a) the original complaint and any other information regarding violations, or potential
            91346     violations, of the Code of Judicial Conduct;
            91347         (b) the charges;
            91348         (c) all correspondence and other documents which passed between the commission and
            91349     the judge;
            91350         (d) all letters which may explain the charges;
            91351         (e) all affidavits, subpoenas, and testimony of witnesses;
            91352         (f) the commission's findings of fact and conclusions of law;
            91353         (g) a transcript of any proceedings, including hearings on motions;
            91354         (h) a copy of each exhibit admitted into evidence;
            91355         (i) a summary of all the complaints dismissed by the commission against the judge
            91356     which contained allegations or information similar in nature to the misconduct under review by
            91357     the Supreme Court;
            91358         (j) a summary of all the orders implemented, rejected, or modified by the Supreme
            91359     Court against the judge; and
            91360         (k) all information in the commission's files on any informal resolution, including any
            91361     letter of admonition, comment, or caution, that the commission issued against the judge prior to
            91362     May 1, 2000.
            91363         (8) (a) Before the implementation, rejection, or modification of any commission order
            91364     the Supreme Court shall:
            91365         (i) review the commission's proceedings as to both law and fact and may permit the

            91366     introduction of additional evidence; and
            91367         (ii) consider the number and nature of previous orders issued by the Supreme Court and
            91368     may increase the severity of the order based on a pattern or practice of misconduct or for any
            91369     other reason that the Supreme Court finds just and proper.
            91370         (b) In recommending any order, including stipulated orders, the commission may not
            91371     place, or attempt to place, any condition or limitation upon the Supreme Court's constitutional
            91372     power to:
            91373         (i) review the commission's proceedings as to both law and fact; or
            91374         (ii) implement, reject, or modify a commission order.
            91375         (c) After briefs have been submitted and any oral argument made, the Supreme Court
            91376     shall, within 90 days, issue its order implementing, rejecting, or modifying the commission's
            91377     order.
            91378         (9) (a) Upon an order for involuntary retirement, the judge shall retire with the same
            91379     rights and privileges as if the judge retired pursuant to statute.
            91380         (b) Upon an order for removal, the judge shall be removed from office and his salary or
            91381     compensation ceases from the date of the order.
            91382         (c) Upon an order for suspension from office, the judge may not perform any judicial
            91383     functions and may not receive a salary for the period of suspension.
            91384         (10) (a) The transmission, production, or disclosure of any complaints, papers, or
            91385     testimony in the course of proceedings before the commission, the masters appointed under
            91386     Subsection (5), or the Supreme Court may not be introduced in any civil action.
            91387         (b) The transmission, production, or disclosure of any complaints, papers, or testimony
            91388     in the course of proceedings before the commission or the masters appointed under Subsection
            91389     (5) may be introduced in any criminal action, consistent with the Utah Rules of Evidence. This
            91390     information shall be shared with the prosecutor conducting a criminal investigation or
            91391     prosecution of a judge as provided in Subsections (1) and (2).
            91392         (c) Complaints, papers, testimony, or the record of the commission's confidential
            91393     hearing may not be disclosed by the commission, masters, or any court until the Supreme Court

            91394     has entered its final order in accordance with this section, except:
            91395         (i) upon order of the Supreme Court;
            91396         (ii) upon the request of the judge who is the subject of the complaint;
            91397         (iii) as provided in Subsection (10)(d);
            91398         (iv) to aid in a criminal investigation or prosecution as provided in Subsections (1) and
            91399     (2); or
            91400         (v) this information is subject to audit by the Office of Legislative Auditor General, and
            91401     any records released to the Office of Legislative Auditor General shall be maintained as
            91402     confidential, except:
            91403         (A) for information that has already been made public; and
            91404         (B) the final written and oral audit report of the Legislative Auditor General may
            91405     present information about the commission as long as it contains no specific information that
            91406     would easily identify a judge, witness, or complainant.
            91407         (d) Upon the dismissal of a complaint or allegation against a judge, the dismissal shall
            91408     be disclosed without consent of the judge to the person who filed the complaint.
            91409         (11) The commission shall make rules in accordance with [Title 63, Chapter 46a] Title
            91410     63G, Chapter 3, Utah Administrative Rulemaking Act, outlining its procedures and the
            91411     appointment of masters.
            91412         (12) A judge who is a member of the commission or the Supreme Court may not
            91413     participate in any proceedings involving the judge's own removal or retirement.
            91414         (13) Retirement for involuntary retirement as provided in this chapter shall be processed
            91415     through the Utah State Retirement Office, and the judge retiring shall meet the requirements for
            91416     retirement as specified in this chapter.
            91417         Section 2229. Section 78-12-29 is amended to read:
            91418          78-12-29. Within one year.
            91419         An action may be brought within one year:
            91420         (1) for liability created by the statutes of a foreign state;
            91421         (2) upon a statute for a penalty or forfeiture where the action is given to an individual,

            91422     or to an individual and the state, except when the statute imposing it prescribes a different
            91423     limitation;
            91424         (3) upon a statute, or upon an undertaking in a criminal action, for a forfeiture or
            91425     penalty to the state;
            91426         (4) for libel, slander, false imprisonment, or seduction;
            91427         (5) against a sheriff or other officer for the escape of a prisoner arrested or imprisoned
            91428     upon either civil or criminal process;
            91429         (6) against a municipal corporation for damages or injuries to property caused by a mob
            91430     or riot;
            91431         (7) on a claim for relief or a cause of action under the following sections of Title 25,
            91432     Chapter 6, Uniform Fraudulent Transfer Act:
            91433         (a) Subsection 25-6-5 (1)(a), which in specific situations limits the time for action to
            91434     four years, under Section 25-6-10 ; or
            91435         (b) Subsection 25-6-6 (2);
            91436         (8) except as otherwise expressly provided by statute, against a county legislative body
            91437     or a county executive to challenge a decision of the county legislative body or county executive,
            91438     respectively; or
            91439         (9) on a claim for relief or a cause of action under [Title 63, Chapter 90b] Title 63L,
            91440     Chapter 5, Utah Religious Land Use Act.
            91441         Section 2230. Section 78-14-12 is amended to read:
            91442          78-14-12. Division to provide panel -- Exemption -- Procedures -- Statute of
            91443      limitations tolled -- Composition of panel -- Expenses -- Division authorized to set license
            91444      fees.
            91445         (1) (a) The division shall provide a hearing panel in alleged medical liability cases
            91446     against health care providers as defined in Section 78-14-3 , except dentists.
            91447         (b) (i) The division shall establish procedures for prelitigation consideration of medical
            91448     liability claims for damages arising out of the provision of or alleged failure to provide health
            91449     care.

            91450         (ii) The division may establish rules necessary to administer the process and procedures
            91451     related to prelitigation hearings and the conduct of prelitigation hearings in accordance with
            91452     Sections 78-14-12 through 78-14-16 .
            91453         (c) The proceedings are informal, nonbinding, and are not subject to [Title 63, Chapter
            91454     46b] Title 63G, Chapter 4, Administrative Procedures Act, but are compulsory as a condition
            91455     precedent to commencing litigation.
            91456         (d) Proceedings conducted under authority of this section are confidential, privileged,
            91457     and immune from civil process.
            91458         (2) (a) The party initiating a medical liability action shall file a request for prelitigation
            91459     panel review with the division within 60 days after the service of a statutory notice of intent to
            91460     commence action under Section 78-14-8 .
            91461         (b) The request shall include a copy of the notice of intent to commence action. The
            91462     request shall be mailed to all health care providers named in the notice and request.
            91463         (3) (a) The filing of a request for prelitigation panel review under this section tolls the
            91464     applicable statute of limitations until the earlier of 60 days following the division's issuance of an
            91465     opinion by the prelitigation panel, or 60 days following the termination of jurisdiction by the
            91466     division as provided in this subsection. The division shall send any opinion issued by the panel
            91467     to all parties by regular mail.
            91468         (b) (i) The division shall complete a prelitigation hearing under this section within 180
            91469     days after the filing of the request for prelitigation panel review, or within any longer period as
            91470     agreed upon in writing by all parties to the review.
            91471         (ii) If the prelitigation hearing has not been completed within the time limits established
            91472     in Subsection (3)(b)(i), the division has no further jurisdiction over the matter subject to review
            91473     and the claimant is considered to have complied with all conditions precedent required under
            91474     this section prior to the commencement of litigation.
            91475         (c) (i) The claimant and any respondent may agree by written stipulation that no useful
            91476     purpose would be served by convening a prelitigation panel under this section.
            91477         (ii) When the stipulation is filed with the division, the division shall within ten days after

            91478     receipt enter an order divesting itself of jurisdiction over the claim, as it concerns the stipulating
            91479     respondent, and stating that the claimant has complied with all conditions precedent to the
            91480     commencement of litigation regarding the claim.
            91481         (4) The division shall provide for and appoint an appropriate panel or panels to hear
            91482     complaints of medical liability and damages, made by or on behalf of any patient who is an
            91483     alleged victim of medical liability. The panels are composed of:
            91484         (a) one member who is a resident lawyer currently licensed and in good standing to
            91485     practice law in this state and who shall serve as chairman of the panel, who is appointed by the
            91486     division from among qualified individuals who have registered with the division indicating a
            91487     willingness to serve as panel members, and a willingness to comply with the rules of
            91488     professional conduct governing lawyers in the state of Utah, and who has completed division
            91489     training regarding conduct of panel hearings;
            91490         (b) (i) one member who is a licensed health care provider listed under Section 78-14-3 ,
            91491     who is practicing and knowledgeable in the same specialty as the proposed defendant, and who
            91492     is appointed by the division in accordance with Subsection (5); or
            91493         (ii) in claims against only hospitals or their employees, one member who is an individual
            91494     currently serving in a hospital administration position directly related to hospital operations or
            91495     conduct that includes responsibility for the area of practice that is the subject of the liability
            91496     claim, and who is appointed by the division; and
            91497         (c) a lay panelist who is not a lawyer, doctor, hospital employee, or other health care
            91498     provider, and who is a responsible citizen of the state, selected and appointed by the division
            91499     from among individuals who have completed division training with respect to panel hearings.
            91500         (5) (a) Each person listed as a health care provider in Section 78-14-3 and practicing
            91501     under a license issued by the state, is obligated as a condition of holding that license to
            91502     participate as a member of a medical liability prelitigation panel at reasonable times, places, and
            91503     intervals, upon issuance, with advance notice given in a reasonable time frame, by the division
            91504     of an Order to Participate as a Medical Liability Prelitigation Panel Member.
            91505         (b) A licensee may be excused from appearance and participation as a panel member

            91506     upon the division finding participation by the licensee will create an unreasonable burden or
            91507     hardship upon the licensee.
            91508         (c) A licensee whom the division finds failed to appear and participate as a panel
            91509     member when so ordered, without adequate explanation or justification and without being
            91510     excused for cause by the division, may be assessed an administrative fine not to exceed $5,000.
            91511         (d) A licensee whom the division finds intentionally or repeatedly failed to appear and
            91512     participate as a panel member when so ordered, without adequate explanation or justification
            91513     and without being excused for cause by the division, may be assessed an administrative fine not
            91514     to exceed $5,000, and is guilty of unprofessional conduct.
            91515         (e) All fines collected under Subsections (5)(c) and (d) shall be deposited in the
            91516     Physicians Education Fund created in Section 58-67a-1 .
            91517         (6) Each person selected as a panel member shall certify, under oath, that he has no bias
            91518     or conflict of interest with respect to any matter under consideration.
            91519         (7) Members of the prelitigation hearing panels shall receive per diem compensation and
            91520     travel expenses for attending panel hearings as established by rules of the division.
            91521         (8) (a) In addition to the actual cost of administering the licensure of health care
            91522     providers, the division may set license fees of health care providers within the limits established
            91523     by law equal to their proportionate costs of administering prelitigation panels.
            91524         (b) The claimant bears none of the costs of administering the prelitigation panel except
            91525     under Section 78-14-16 .
            91526         Section 2231. Section 78-17-3 is amended to read:
            91527          78-17-3. Liability imposed and limitations -- Defenses -- Limitations on damages.
            91528         (1) Except as provided in this section, any person who owns, holds under license,
            91529     transports, ships, stores, or disposes of nuclear material is liable, without regard to the conduct
            91530     of any other person, for harm from nuclear incidents arising in connection with or resulting from
            91531     such ownership, transportation, shipping, storage, or disposal.
            91532         (2) Except as provided in this section, any person who owns, designs, constructs,
            91533     operates, or maintains facilities, structures, vehicles, or equipment used for handling,

            91534     transportation, shipment, storage, or disposal of nuclear material is liable, without regard to the
            91535     conduct of any other person, for harm from nuclear incidents arising in connection with or
            91536     resulting from such ownership, design, construction, operation, and maintenance.
            91537         (3) Liability established by this chapter shall only be imposed if a court of competent
            91538     jurisdiction finds that:
            91539         (a) the nuclear incident which is the basis for the suit is covered by existing financial
            91540     protection undertaken pursuant to 42 U.S.C. Sec. 2210; and
            91541         (b) a person who is liable under this chapter is a person indemnified as defined in 42
            91542     U.S.C. Sec. 2014.
            91543         (4) Immunity of the state, its political subdivisions, or the agencies of either from suit
            91544     are only waived with respect to a suit arising from a nuclear incident:
            91545         (a) in accordance with [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental
            91546     Immunity Act of Utah; or
            91547         (b) when brought by a person suffering harm.
            91548         (5) The conduct of the person suffering harm is not a defense to liability, except that
            91549     this section does not preclude any defense based on:
            91550         (a) the claimant's knowing failure to mitigate damages related to any injury or damage
            91551     to the claimant or the claimant's property; or
            91552         (b) an incident involving nuclear material that is knowingly and wrongfully caused by
            91553     the claimant.
            91554         (6) No person may collect punitive or exemplary damages under this chapter.
            91555         Section 2232. Section 78-19-1 is amended to read:
            91556          78-19-1. Definitions.
            91557         As used in this chapter:
            91558         (1) "Damage or injury" includes physical, nonphysical, economic, and noneconomic
            91559     damage.
            91560         (2) "Financially secure source of recovery" means that, at the time of the incident, a
            91561     nonprofit organization:

            91562         (a) has an insurance policy in effect that covers the activities of the volunteer and has an
            91563     insurance limit of not less than the limits established under the Governmental Immunity Act of
            91564     Utah in Section [ 63-30d-604 ] 63G-7-604 ; or
            91565         (b) has established a qualified trust with a value not less than the combined limits for
            91566     property damage and single occurrence liability established under the Governmental Immunity
            91567     Act of Utah in Section [ 63-30d-604 ] 63G-7-604 .
            91568         (3) "Nonprofit organization" means any organization, other than a public entity,
            91569     described in Section 501 (c) of the Internal Revenue Code of 1986 and exempt from tax under
            91570     Section 501 (a) of that code.
            91571         (4) "Public entity" has the same meaning as defined in Section [ 63-30b-1 ] 63G-8-102 .
            91572         (5) "Qualified trust" means a trust held for the purpose of compensating claims for
            91573     damages or injury in a trust company licensed to do business in this state under the provisions of
            91574     Title 7, Chapter 5, Trust Business.
            91575         (6) "Reimbursements" means, with respect to each nonprofit organization:
            91576         (a) compensation or honoraria totaling less than $300 per calendar year; and
            91577         (b) payment of expenses actually incurred.
            91578         (7) (a) "Volunteer" means an individual performing services for a nonprofit organization
            91579     who does not receive anything of value from that nonprofit organization for those services
            91580     except reimbursements.
            91581         (b) "Volunteer" includes a volunteer serving as a director, officer, trustee, or direct
            91582     service volunteer.
            91583         (c) "Volunteer" does not include an individual performing services for a public entity to
            91584     the extent the services are within the scope of [Title 63, Chapter 30b] Title 63G, Chapter 8,
            91585     Immunity for Persons Performing Voluntary Services or Title 67, Chapter 20, Volunteer
            91586     Government Workers Act.
            91587         Section 2233. Section 78-27-37 is amended to read:
            91588          78-27-37. Definitions.
            91589         As used in Section 78-27-37 through Section 78-27-43 :

            91590         (1) "Defendant" means a person, other than a person immune from suit as defined in
            91591     Subsection (3), who is claimed to be liable because of fault to any person seeking recovery.
            91592         (2) "Fault" means any actionable breach of legal duty, act, or omission proximately
            91593     causing or contributing to injury or damages sustained by a person seeking recovery, including
            91594     negligence in all its degrees, comparative negligence, assumption of risk, strict liability, breach
            91595     of express or implied warranty of a product, products liability, and misuse, modification, or
            91596     abuse of a product.
            91597         (3) "Person immune from suit" means:
            91598         (a) an employer immune from suit under Title 34A, Chapter 2, Workers' Compensation
            91599     Act, or Chapter 3, Utah Occupational Disease Act; and
            91600         (b) a governmental entity or governmental employee immune from suit pursuant to
            91601     [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah.
            91602         (4) "Person seeking recovery" means any person seeking damages or reimbursement on
            91603     its own behalf, or on behalf of another for whom it is authorized to act as legal representative.
            91604         Section 2234. Section 78-27-43 is amended to read:
            91605          78-27-43. Effect on immunity, exclusive remedy, indemnity, contribution.
            91606         Nothing in Sections 78-27-37 through 78-27-42 affects or impairs any common law or
            91607     statutory immunity from liability, including, but not limited to, governmental immunity as
            91608     provided in [Title 63, Chapter 30d] Title 63G, Chapter 7, Governmental Immunity Act of Utah,
            91609     and the exclusive remedy provisions of Title 34A, Chapter 2, Workers' Compensation Act.
            91610     Nothing in Sections 78-27-37 through 78-27-42 affects or impairs any right to indemnity or
            91611     contribution arising from statute, contract, or agreement.
            91612         Section 2235. Section 78-27a-6 is amended to read:
            91613          78-27a-6. Payment of expenses awarded -- Statement required in agency's
            91614      budget.
            91615         Expenses awarded under this act shall be paid from funds in the regular operating
            91616     budget of the state entity. If sufficient funds are not available in the budget of the entity, the
            91617     expenses shall be considered a claim governed by the provisions of [Title 63, Chapter 6] Title

            91618     63G, Chapter 9, Board of Examiners Act. Every state entity against which litigation expenses
            91619     have been awarded under this act shall, at the time of submission of its proposed budget, submit
            91620     a report to the governmental body which appropriates its funds in which the amount of expenses
            91621     awarded and paid under this act during the fiscal year is stated.
            91622         Section 2236. Section 78-31b-8 is amended to read:
            91623          78-31b-8. Confidentiality.
            91624         (1) ADR proceedings shall be conducted in a manner that encourages informal and
            91625     confidential exchange among the persons present to facilitate resolution of the dispute or a part
            91626     of the dispute. ADR proceedings shall be closed unless the parties agree that the proceedings
            91627     be open. ADR proceedings shall not be recorded.
            91628         (2) No evidence concerning the fact, conduct, or result of an ADR proceeding may be
            91629     subject to discovery or admissible at any subsequent trial of the same case or same issues
            91630     between the same parties.
            91631         (3) No party to the case may introduce as evidence information obtained during an
            91632     ADR proceeding unless the information was discovered from a source independent of the ADR
            91633     proceeding.
            91634         (4) Unless all parties and the neutral agree, no person attending an ADR proceeding,
            91635     including the ADR provider or ADR organization, may disclose or be required to disclose any
            91636     information obtained in the course of an ADR proceeding, including any memoranda, notes,
            91637     records, or work product.
            91638         (5) Except as provided, an ADR provider or ADR organization may not disclose or
            91639     discuss any information about any ADR proceeding to anyone outside the proceeding, including
            91640     the judge or judges to whom the case may be assigned. An ADR provider or an ADR
            91641     organization may communicate information about an ADR proceeding with the director for the
            91642     purposes of training, program management, or program evaluation and when consulting with a
            91643     peer. In making those communications, the ADR provider or ADR organization shall render
            91644     anonymous all identifying information.
            91645         (6) Nothing in this section limits or affects the responsibility to report child abuse or

            91646     neglect in accordance with Section 62A-4a-403 .
            91647         (7) No records of ADR proceedings under this act or under Title 78, Chapter 31a, Utah
            91648     Uniform Arbitration Act, shall be subject to [Title 63, Chapter 2] Title 63G, Chapter 2,
            91649     Government Records Access and Management Act, except settlement agreements filed with the
            91650     court after conclusion of an ADR proceeding or awards filed with the court after the period for
            91651     filing a demand for trial de novo has expired.
            91652         Section 2237. Section 78-31c-106 is amended to read:
            91653          78-31c-106. Exceptions to privilege.
            91654         (1) There is no privilege under Section 78-31c-104 for a mediation communication that
            91655     is:
            91656         (a) in an agreement evidenced by a record signed by all parties to the agreement;
            91657         (b) available to the public under [Title 63, Chapter 2] Title 63G, Chapter 2,
            91658     Government Records Access and Management Act, or made during a mediation session which
            91659     is open, or is required by law to be open, to the public;
            91660         (c) a threat or statement of a plan to inflict bodily injury or commit a crime of violence;
            91661         (d) intentionally used to plan a crime, attempt to commit or commit a crime, or to
            91662     conceal an ongoing crime or ongoing criminal activity;
            91663         (e) sought or offered to prove or disprove a claim or complaint of professional
            91664     misconduct or malpractice filed against a mediator;
            91665         (f) except as otherwise provided in Subsection (3), sought or offered to prove or
            91666     disprove a claim or complaint of professional misconduct or malpractice filed against a
            91667     mediation party, nonparty participant, or representative of a party based on conduct occurring
            91668     during a mediation; or
            91669         (g) subject to the reporting requirements in Section 62A-3-305 or 62A-4a-403 .
            91670         (2) There is no privilege under Section 78-31c-104 if a court, administrative agency, or
            91671     arbitrator finds, after a hearing in camera, that the party seeking discovery or the proponent of
            91672     the evidence has shown that:
            91673         (a) the evidence is not otherwise available;

            91674         (b) there is a need for the evidence that substantially outweighs the interest in protecting
            91675     confidentiality; and
            91676         (c) the mediation communication is sought or offered in:
            91677         (i) a court proceeding involving a felony or misdemeanor; or
            91678         (ii) except as otherwise provided in Subsection (3), a proceeding to prove a claim to
            91679     rescind or reform or a defense to avoid liability on a contract arising out of the mediation.
            91680         (3) A mediator may not be compelled to provide evidence of a mediation
            91681     communication referred to in Subsection (1)(f) or (2)(c)(ii).
            91682         (4) If a mediation communication is not privileged under Subsection (1) or (2), only the
            91683     portion of the communication necessary for the application of the exception from nondisclosure
            91684     may be admitted. Admission of evidence under Subsection (1) or (2) does not render the
            91685     evidence, or any other mediation communication, discoverable or admissible for any other
            91686     purpose.
            91687         Section 2238. Section 78-31c-108 is amended to read:
            91688          78-31c-108. Confidentiality.
            91689         Unless subject to Title 52, Chapter 4, Open and Public Meetings Act, and [Title 63,
            91690     Chapter 2] Title 63G, Chapter 2, Government Records Access and Management Act, mediation
            91691     communications are confidential to the extent agreed by the parties or provided by other law or
            91692     rule of this state.
            91693         Section 2239. Section 78-32-17 is amended to read:
            91694          78-32-17. Noncompliance with child support order.
            91695         (1) When a court of competent jurisdiction, or the Office of Recovery Services pursuant
            91696     to an action under [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act,
            91697     makes an order requiring a parent to furnish support or necessary food, clothing, shelter,
            91698     medical care, or other remedial care for his child, and the parent fails to do so, proof of
            91699     noncompliance shall be prima facie evidence of contempt of court.
            91700         (2) Proof of noncompliance may be demonstrated by showing that:
            91701         (a) the order was made, and filed with the district court; and

            91702         (b) the parent knew of the order because:
            91703         (i) the order was mailed to the parent at his last-known address as shown on the court
            91704     records;
            91705         (ii) the parent was present in court at the time the order was pronounced;
            91706         (iii) the parent entered into a written stipulation and the parent or counsel for the parent
            91707     was sent a copy of the order;
            91708         (iv) counsel was present in court and entered into a stipulation which was accepted and
            91709     the order based upon the stipulation was then sent to counsel for the parent; or
            91710         (v) the parent was properly served and failed to answer.
            91711         (3) Upon establishment of a prima facie case of contempt under Subsection (2), the
            91712     obligor under the child support order has the burden of proving inability to comply with the
            91713     child support order.
            91714         (4) A court may, in addition to other available sanctions, withhold, suspend, or restrict
            91715     the use of driver's licenses, professional and occupational licenses, and recreational licenses and
            91716     impose conditions for reinstatement upon a finding that:
            91717         (a) an obligor has:
            91718         (i) made no payment for 60 days on a current obligation of support as set forth in an
            91719     administrative or court order and, thereafter, has failed to make a good faith effort under the
            91720     circumstances to make payment on the support obligation in accordance with the order; or
            91721         (ii) made no payment for 60 days on an arrearage obligation of support as set forth in a
            91722     payment schedule, written agreement with the Office of Recovery Services, or an administrative
            91723     or judicial order and, thereafter, has failed to make a good faith effort under the circumstances
            91724     to make payment on the arrearage obligation in accordance with the payment schedule,
            91725     agreement, or order; and
            91726         (iii) not obtained a judicial order staying enforcement of the support or arrearage
            91727     obligation for which the obligor would be otherwise delinquent;
            91728         (b) a custodial parent has:
            91729         (i) violated a parent-time order by denying contact for 60 days between a noncustodial

            91730     parent and a child and, thereafter, has failed to make a good faith effort under the circumstances
            91731     to comply with a parent-time order; and
            91732         (ii) not obtained a judicial order staying enforcement of the parent-time order; or
            91733         (c) an obligor or obligee, after receiving appropriate notice, has failed to comply with a
            91734     subpoena or order relating to a paternity or child support proceeding.
            91735         Section 2240. Section 78-35a-202 is amended to read:
            91736          78-35a-202. Appointment and payment of counsel in death penalty cases.
            91737         (1) A person who has been sentenced to death and whose conviction and sentence has
            91738     been affirmed on appeal shall be advised in open court, on the record, in a hearing scheduled no
            91739     less than 30 days prior to the signing of the death warrant, of the provisions of this chapter
            91740     allowing challenges to the conviction and death sentence and the appointment of counsel for
            91741     indigent defendants.
            91742         (2) (a) If a defendant requests the court to appoint counsel, the court shall determine
            91743     whether the defendant is indigent and make findings on the record regarding the defendant's
            91744     indigency. If the court finds that the defendant is indigent, it shall promptly appoint counsel
            91745     who is qualified to represent defendants in death penalty cases as required by Rule 8 of the Utah
            91746     Rules of Criminal Procedure.
            91747         (b) A defendant who wishes to reject the offer of counsel shall be advised on the record
            91748     by the court of the consequences of the rejection before the court may accept the rejection.
            91749         (c) Costs of counsel and other reasonable litigation expenses incurred in providing the
            91750     representation provided for in this section shall be paid from state funds by the Division of
            91751     Finance according to rules established pursuant to [Title 63, Chapter 46a] Title 63G, Chapter 3,
            91752     Utah Administrative Rulemaking Act.
            91753         Section 2241. Section 78-45-7.3 is amended to read:
            91754          78-45-7.3. Procedure -- Documentation -- Stipulation.
            91755         (1) In any matter in which child support is ordered, the moving party shall submit:
            91756         (a) a completed child support worksheet;
            91757         (b) the financial verification required by Subsection 78-45-7.5 (5);

            91758         (c) a written statement indicating whether or not the amount of child support requested
            91759     is consistent with the guidelines; and
            91760         (d) the information required under Subsection (3).
            91761         (2) (a) If the documentation of income required under Subsection (1) is not available, a
            91762     verified representation of the other party's income by the moving party, based on the best
            91763     evidence available, may be submitted.
            91764         (b) The evidence shall be in affidavit form and may only be offered after a copy has
            91765     been provided to the other party in accordance with Utah Rules of Civil Procedure or [Title 63,
            91766     Chapter 46b] Title 63G, Chapter 4, Administrative Procedures Act, in an administrative
            91767     proceeding.
            91768         (3) Upon the entry of an order in a proceeding to establish paternity or to establish,
            91769     modify, or enforce a support order, each party shall file identifying information and shall update
            91770     that information as changes occur with the court that conducted the proceeding.
            91771         (a) The required identifying information shall include the person's social security
            91772     number, driver's license number, residential and mailing addresses, telephone numbers, the
            91773     name, address and telephone number of employers, and any other data required by the United
            91774     States Secretary of Health and Human Services.
            91775         (b) Attorneys representing the office in child support services cases are not required to
            91776     file the identifying information required by Subsection (3)(a).
            91777         (4) A stipulated amount for child support or combined child support and alimony is
            91778     adequate under the guidelines if the stipulated child support amount or combined amount equals
            91779     or exceeds the base child support award required by the guidelines.
            91780         Section 2242. Section 78-45g-104 is amended to read:
            91781          78-45g-104. Adjudication -- Jurisdiction.
            91782         (1) The district court, the juvenile court, and the Office of Recovery Services in
            91783     accordance with Section 62A-11-304.2 and [Title 63, Chapter 46b] Title 63G, Chapter 4,
            91784     Administrative Procedures Act, are authorized to adjudicate parentage under Parts 1 through 6,
            91785     and Part 9 of this chapter.

            91786         (2) The district court and the juvenile court have jurisdiction over proceedings under
            91787     Parts 7 and 8.
            91788         Section 2243. Section 78-45g-313 is amended to read:
            91789          78-45g-313. Adoption of rules.
            91790         The Office of Vital Records may adopt rules in accordance with [Title 63, Chapter 46a]
            91791     Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this part.
            91792         Section 2244. Section 78-45g-407 is amended to read:
            91793          78-45g-407. Removal of registration.
            91794         The Office of Vital Records may remove a registration in accordance with rules adopted
            91795     by the office in accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            91796     Administrative Rulemaking Act.
            91797         Section 2245. Section 78-45g-511 is amended to read:
            91798          78-45g-511. Confidentiality of genetic testing.
            91799         Release of the report of genetic testing for parentage is controlled by [Title 63, Chapter
            91800     2] Title 63G, Chapter 2, Government Records Access and Management Act.
            91801         Section 2246. Section 78-45g-601 is amended to read:
            91802          78-45g-601. Proceeding authorized -- Definition.
            91803         (1) An adjudicative proceeding may be maintained to determine the parentage of a
            91804     child. A judicial proceeding is governed by the rules of civil procedure. An administrative
            91805     proceeding is governed by [Title 63, Chapter 46b] Title 63G, Chapter 4, Administrative
            91806     Procedures Act.
            91807         (2) For the purposes of this part, "divorce" also includes an annulment.
            91808         Section 2247. Section 78-57-108 is amended to read:
            91809          78-57-108. Youth Court Board -- Membership -- Responsibilities.
            91810         (1) The Utah attorney general's office shall provide staff support and assistance to a
            91811     Youth Court Board comprised of the following:
            91812         (a) the Utah attorney general or his designee;
            91813         (b) one member of the Utah Prosecution Council;

            91814         (c) one member from the Board of Juvenile Court Judges;
            91815         (d) the juvenile court administrator or his designee;
            91816         (e) one person from the Office of Juvenile Justice and Delinquency Prevention;
            91817         (f) the state superintendent of education or his designee;
            91818         (g) two representatives from Youth Courts based primarily in schools;
            91819         (h) two representatives from Youth Courts based primarily in communities;
            91820         (i) one member from the law enforcement community; and
            91821         (j) one member from the community at large.
            91822         (2) The members selected to fill the positions in Subsections (1)(a) through (f) shall
            91823     jointly select the members to fill the positions in Subsections (1)(g) through (j).
            91824         (3) Members shall serve two-year staggered terms beginning July 1, 1999, except the
            91825     initial terms of the members designated by Subsections (1)(a), (c), (e), and (i), and one of the
            91826     members from Subsections (1)(g) and (h) shall serve one-year terms, but may be reappointed
            91827     for a full two-year term upon the expiration of their initial term.
            91828         (4) The Youth Court Board shall meet at least quarterly to:
            91829         (a) set minimum standards for the establishment of Youth Courts, including an
            91830     application process, membership and training requirements, and the qualifications for the adult
            91831     coordinator;
            91832         (b) review certification applications; and
            91833         (c) provide for a process to recertify each Youth Court every three years.
            91834         (5) In accordance with [Title 63, Chapter 46a] Title 63G, Chapter 3, Utah
            91835     Administrative Rulemaking Act, the Youth Court Board shall make rules to accomplish the
            91836     requirements of Subsection (3).
            91837         (6) The Youth Court Board may deny certification or recertification, or withdraw the
            91838     certification of any Youth Court for failure to comply with program requirements.
            91839         (7) (a) Members shall receive no compensation or benefits for their services, but may
            91840     receive per diem and expenses incurred in the performance of the member's official duties at the
            91841     rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .

            91842         (b) Members may decline to receive per diem and expenses for their service.
            91843         (8) The Youth Court Board shall provide a list of certified Youth Courts to the Board
            91844     of Juvenile Court Judges, all law enforcement agencies in the state, all school districts, and the
            91845     Utah Prosecution Council by December 31 of each year.
            91846         Section 2248. Section 78-61-101 is amended to read:
            91847          78-61-101. Definitions.
            91848         As used in this chapter:
            91849         (1) "Conviction" means an adjudication by a federal or state court resulting from a trial
            91850     or plea, including a plea of no contest, nolo contendere, a finding of not guilty due to insanity,
            91851     or not guilty but mentally ill regardless of whether the sentence was imposed or suspended.
            91852         (2) "Fund" means the Crime Victim Reparation Fund created in Section [ 63-63a-4 ]
            91853      51-9-404 .
            91854         (3) "Memorabilia" means any tangible property of a person convicted of a first degree
            91855     or capital felony, the value of which is enhanced by the notoriety gained from the conviction.
            91856         (4) "Profit" means any income or benefit over and above the fair market value of the
            91857     property that is received upon the sale or transfer of memorabilia.
            91858         Section 2249. Repealer.
            91859         This bill repeals:
            91860         Section 63-46a-17, Electronic records and conversion of written records by
            91861      governmental agencies.
            91862         Section 63-97-101, Title.

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