S.B. 111

1

REVISOR'S STATUTE
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: John W. Hickman
5 House Sponsor: Stephen H. Urquhart
6
7 LONG TITLE
8 General Description:
9 This bill modifies parts of the Utah Code to make technical corrections including
10 eliminating references to repealed provisions, making minor wording changes, updating
11 cross references, and correcting numbering.
12 Highlighted Provisions:
13 This bill:
14 . modifies parts of the Utah Code to make technical corrections including eliminating
15 references to repealed provisions, making minor wording changes, updating cross
16 references, and correcting numbering.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 10-3-818, as last amended by Laws of Utah 1997, Chapter 10
24 11-13-103, as last amended by Laws of Utah 2007, Chapter 329
25 11-42-411, as enacted by Laws of Utah 2007, Chapter 329
26 11-42-605, as enacted by Laws of Utah 2007, Chapter 329
27 13-21-2, as last amended by Laws of Utah 2007, Chapter 61

28 13-43-206, as enacted by Laws of Utah 2006, Chapter 258
29 16-4-102, as enacted by Laws of Utah 2007, Chapter 367
30 16-6a-1702, as enacted by Laws of Utah 2000, Chapter 300
31 17-27a-103, as last amended by Laws of Utah 2007, Chapters 188, 199, and 329
32 17-27a-301, as renumbered and amended by Laws of Utah 2005, Chapter 254
33 17-27a-306, as last amended by Laws of Utah 2006, Chapter 78
34 17-27a-307, as renumbered and amended by Laws of Utah 2005, Chapter 254
35 17-27a-603, as last amended by Laws of Utah 2007, Chapters 160 and 188
36 17-52-201, as last amended by Laws of Utah 2001, Chapter 241
37 17-53-216, as renumbered and amended by Laws of Utah 2000, Chapter 133
38 19-2-103, as last amended by Laws of Utah 2002, Chapter 176
39 19-4-103, as last amended by Laws of Utah 2002, Chapter 176
40 19-5-103, as last amended by Laws of Utah 2002, Chapter 176
41 19-6-108.3, as enacted by Laws of Utah 2007, Chapter 72
42 31A-22-605.5, as last amended by Laws of Utah 2003, Chapter 8
43 31A-22-723, as last amended by Laws of Utah 2005, Chapter 78
44 31A-28-114, as last amended by Laws of Utah 2007, Chapter 309
45 31A-28-222, as last amended by Laws of Utah 2002, Chapter 308
46 34A-2-103, as last amended by Laws of Utah 2006, Chapter 295
47 41-8-1, as last amended by Laws of Utah 2006, Chapter 201
48 41-10-1, Utah Code Annotated 1953
49 49-11-701, as renumbered and amended by Laws of Utah 2002, Chapter 250
50 53-2-402, as enacted by Laws of Utah 2007, Chapter 328
51 53-2-403, as enacted by Laws of Utah 2007, Chapter 328
52 53-3-202, as last amended by Laws of Utah 2006, Chapter 201
53 53-3-204, as last amended by Laws of Utah 2006, Chapters 46, 201, and 293
54 53-3-227, as last amended by Laws of Utah 2007, Chapter 261
55 53-5-711, as last amended by Laws of Utah 1998, Chapter 13
56 53A-1-408, as enacted by Laws of Utah 2002, Chapter 259
57 53A-11-910, as enacted by Laws of Utah 2007, Chapter 161
58 53A-17a-131.16, as repealed and reenacted by Laws of Utah 2002, Chapter 258

59 53A-29-103, as enacted by Laws of Utah 1996, Chapter 73
60 53B-2-107, as enacted by Laws of Utah 2002, Chapter 315
61 54-7-12.9, as enacted by Laws of Utah 2006, Chapter 221
62 57-1-5, as last amended by Laws of Utah 2006, Chapter 236
63 57-1-21, as last amended by Laws of Utah 2004, Chapter 177
64 57-1-21.5, as last amended by Laws of Utah 2002, Chapter 209
65 58-1-501.5, as enacted by Laws of Utah 2007, Chapter 162
66 58-37-5.5, as last amended by Laws of Utah 2003, Chapter 33
67 58-67-302.5, as enacted by Laws of Utah 2002, Chapter 73
68 58-72-301, as repealed and reenacted by Laws of Utah 1998, Chapter 26
69 58-72-501, as last amended by Laws of Utah 2007, Chapter 90
70 59-2-405.2, as last amended by Laws of Utah 2006, Fifth Special Session, Chapter 3
71 59-7-116, as enacted by Laws of Utah 1993, Chapters 169 and 300
72 61-1-30, as last amended by Laws of Utah 1983, Chapter 284
73 62A-4a-207, as last amended by Laws of Utah 2006, Chapter 14
74 63-34-6, as last amended by Laws of Utah 1998, Chapter 282
75 63-38c-103, as last amended by Laws of Utah 2007, Chapters 122, 206, and 328
76 63-55-253, as last amended by Laws of Utah 2007, Chapter 386
77 63-55b-153, as last amended by Laws of Utah 2007, Chapter 216
78 63-55b-163, as last amended by Laws of Utah 2007, Chapter 306
79 63-63a-8, as last amended by Laws of Utah 2007, Chapter 326
80 63-97-201, as last amended by Laws of Utah 2005, Chapter 275
81 63A-5-222, as last amended by Laws of Utah 2000, Chapter 231
82 63B-6-502, as last amended by Laws of Utah 2001, Chapter 321
83 73-10f-1, as enacted by Laws of Utah 1990, Chapter 206
84 73-12a-1, Utah Code Annotated 1953
85 76-7-317.2, as enacted by Laws of Utah 1991, Chapter 288
86 78-3-21, as last amended by Laws of Utah 2003, Chapters 51 and 332
87 78-23-4, as enacted by Laws of Utah 1981, Chapter 111
88 78-30-8, as last amended by Laws of Utah 2007, Chapter 196
89 78-43-8, Utah Code Annotated 1953

90 REPEALS:
91 30-3-38, as last amended by Laws of Utah 2004, Chapter 352
92 53-2-102.5, as last amended by Laws of Utah 2007, Chapters 245 and 328
93
94 Be it enacted by the Legislature of the state of Utah:
95 Section 1. Section 10-3-818 is amended to read:
96 10-3-818. Salaries in municipalities.
97 (1) The elective and statutory officers of municipalities shall receive such
98 compensation for their services as the governing body may fix by ordinance adopting
99 compensation or compensation schedules enacted after public hearing.
100 (2) Upon its own motion the governing body may review or consider the compensation
101 of any officer or officers of the municipality or a salary schedule applicable to any officer or
102 officers of the city for the purpose of determining whether or not it should be adopted, changed,
103 or amended. In the event that the governing body decides that the compensation or
104 compensation schedules should be adopted, changed, or amended, it shall set a time and place
105 for a public hearing at which all interested persons shall be given an opportunity to be heard.
106 (3) Notice of the time, place, and purpose of the meeting shall be published at least
107 seven days prior thereto by publication at least once in a newspaper published in the county
108 within which the municipality is situated and generally circulated in the municipality. If there
109 is no such newspaper then notice shall be given by posting this notice in three public places in
110 the municipality.
111 (4) After the conclusion of the public hearing, the governing body may enact an
112 ordinance fixing, changing, or amending the compensation of any elective or appointive officer
113 of the municipality or adopting a compensation schedule applicable to any officer or officers.
114 (5) Any ordinance enacted before [Chapter 48,] Laws of Utah 1977, Chapter 48, by a
115 municipality establishing a salary or compensation schedule for its elective or appointive
116 officers and any salary fixed prior to [Chapter 48,] Laws of Utah 1977, Chapter 48, shall
117 remain effective until the municipality has enacted an ordinance pursuant to the provisions of
118 this chapter.
119 (6) The compensation of all municipal officers shall be paid at least monthly out of the
120 municipal treasury provided that municipalities having 1,000 or fewer population may by

121 ordinance provide for the payment of its statutory officers less frequently. None of the
122 provisions of this chapter shall be considered as limiting or restricting the authority to any
123 municipality that has adopted or does adopt a charter pursuant to Utah Constitution, Article XI,
124 Section 5, to determine the salaries of its elective and appointive officers or employees.
125 Section 2. Section 11-13-103 is amended to read:
126 11-13-103. Definitions.
127 As used in this chapter:
128 (1) "Additional project capacity" means electric generating capacity provided by a
129 generating unit that first produces electricity on or after May 6, 2002 and that is constructed or
130 installed at or adjacent to the site of a project that first produced electricity before May 6, 2002,
131 regardless of whether:
132 (a) the owners of the new generating unit are the same as or different from the owner of
133 the project; and
134 (b) the purchasers of electricity from the new generating unit are the same as or
135 different from the purchasers of electricity from the project.
136 (2) "Board" means the Permanent Community Impact Fund Board created by Section
137 9-4-304 , and its successors.
138 (3) "Candidate" means one or more of:
139 (a) the state;
140 (b) a county, municipality, school district, local district, special service district, or other
141 political subdivision of the state; and
142 (c) a prosecution district.
143 (4) "Commercial project entity" means a project entity, defined in Subsection (12),
144 that:
145 (a) has no taxing authority; and
146 (b) is not supported in whole or in part by and does not expend or disburse tax
147 revenues.
148 (5) "Direct impacts" means an increase in the need for public facilities or services that
149 is attributable to the project or facilities providing additional project capacity, except impacts
150 resulting from the construction or operation of a facility that is:
151 (a) owned by an owner other than the owner of the project or of the facilities providing

152 additional project capacity; and
153 (b) used to furnish fuel, construction, or operation materials for use in the project.
154 (6) "Electric interlocal entity" means an interlocal entity described in Subsection
155 11-13-203 (3).
156 (7) "Energy services interlocal entity" means an interlocal entity that is described in
157 Subsection 11-13-203 (4).
158 (8) (a) "Estimated electric requirements," when used with respect to a qualified energy
159 services interlocal entity, includes any of the following that meets the requirements of
160 Subsection (8)(b):
161 (i) generation capacity;
162 (ii) generation output; or
163 (iii) an electric energy production facility.
164 (b) An item listed in Subsection (8)(a) is included in "estimated electric requirements"
165 if it is needed by the qualified energy services interlocal entity to perform the qualified energy
166 services interlocal entity's contractual or legal obligations to any of its members.
167 (9) "Interlocal entity" means:
168 (a) a Utah interlocal entity, an electric interlocal entity, or an energy services interlocal
169 entity; or
170 (b) a separate legal or administrative entity created under Section 11-13-205 .
171 (10) "Out-of-state public agency" means a public agency as defined in Subsection
172 (13)(c), (d), or (e).
173 (11) (a) "Project":
174 (i) means an electric generation and transmission facility owned by a Utah interlocal
175 entity or an electric interlocal entity; and
176 (ii) includes fuel or fuel transportation facilities and water facilities owned by that Utah
177 interlocal entity or electric interlocal entity and required for the generation and transmission
178 facility.
179 (b) "Project" includes a project entity's ownership interest in:
180 (i) facilities that provide additional project capacity; and
181 (ii) additional generating, transmission, fuel, fuel transportation, water, or other
182 facilities added to a project.

183 (12) "Project entity" means a Utah interlocal entity or an electric interlocal entity that
184 owns a project.
185 (13) "Public agency" means:
186 (a) a city, town, county, school district, local district, special service district, or other
187 political subdivision of the state;
188 (b) the state or any department, division, or agency of the state;
189 (c) any agency of the United States;
190 (d) any political subdivision or agency of another state or the District of Columbia
191 including any interlocal cooperation or joint powers agency formed under the authority of the
192 law of the other state or the District of Columbia; and
193 (e) any Indian tribe, band, nation, or other organized group or community which is
194 recognized as eligible for the special programs and services provided by the United States to
195 Indians because of their status as Indians.
196 (14) "Qualified energy services interlocal entity" means an energy services interlocal
197 entity that at the time that the energy services interlocal entity acquires its interest in facilities
198 providing additional project capacity has at least five members that are Utah public agencies.
199 (15) "Utah interlocal entity":
200 (a) means an interlocal entity described in Subsection 11-13-203 (2); and
201 (b) includes a separate legal or administrative entity created under [Chapter 47,] Laws
202 of Utah 1977, Chapter 47, Section 3, as amended.
203 (16) "Utah public agency" means a public agency under Subsection (13)(a) or (b).
204 Section 3. Section 11-42-411 is amended to read:
205 11-42-411. Installment payment of assessments.
206 (1) (a) In an assessment resolution or ordinance, the governing body may, subject to
207 Subsection (1)(b), provide that some or all of the assessment be paid in installments over a
208 period not to exceed 20 years from the effective date of the resolution or ordinance.
209 (b) If an assessment resolution or ordinance provides that some or all of the assessment
210 be paid in installments for a period exceeding ten years from the effective date of the resolution
211 or ordinance, the governing body:
212 (i) shall make a determination that:
213 (A) the improvement for which the assessment is made has a reasonable useful life for

214 the full period during which installments are to be paid; or
215 (B) it would be in the best interests of the local entity and the property owners for
216 installments to be paid for more than ten years; and
217 (ii) may provide in the resolution or ordinance that no assessment is payable during
218 some or all of the period ending three years after the effective date of the resolution or
219 ordinance.
220 (2) An assessment resolution or ordinance that provides for the assessment to be paid
221 in installments may provide that the unpaid balance be paid over the period of time that
222 installments are payable:
223 (a) in substantially equal installments of principal; or
224 (b) in substantially equal installments of principal and interest.
225 (3) (a) Each assessment resolution or ordinance that provides for the assessment to be
226 paid in installments shall, subject to Subsections (3)(b) and (c), provide that the unpaid balance
227 of the assessment bear interest at a fixed rate, variable rate, or a combination of fixed and
228 variable rates, as determined by the governing body, from the effective date of the resolution or
229 ordinance or another date specified in the resolution or ordinance.
230 (b) If the assessment is for operation and maintenance costs or for the costs of
231 economic promotion activities:
232 (i) a local entity may charge interest only from the date each installment is due; and
233 (ii) the first installment of an assessment shall be due 15 days after the effective date of
234 the assessment resolution or ordinance.
235 (c) If an assessment resolution or ordinance provides for the unpaid balance of the
236 assessment to bear interest at a variable rate, the assessment resolution or ordinance shall
237 specify:
238 (i) the basis upon which the rate is to be determined from time to time;
239 (ii) the manner in which and schedule upon which the rate is to be adjusted; and
240 (iii) a maximum rate that the assessment may bear.
241 (4) Interest payable on assessments may include:
242 (a) interest on assessment bonds;
243 (b) ongoing local entity costs incurred for administration of the assessment area; and
244 (c) any costs incurred with respect to:

245 (i) securing a letter of credit or other instrument to secure payment or repurchase of
246 bonds; or
247 (ii) retaining a marketing agent or an indexing agent.
248 (5) Interest imposed in an assessment resolution or ordinance shall be paid in addition
249 to the amount of each installment annually or at more frequent intervals as provided in the
250 assessment resolution or ordinance.
251 (6) (a) Except for an assessment for operation and maintenance costs or for the costs of
252 economic promotion activities, a property owner may pay some or all of the entire assessment
253 without interest if paid within 25 days after the assessment resolution or ordinance takes effect.
254 (b) After the 25-day period stated in Subsection (6)(a), a property owner may at any
255 time prepay some or all of the assessment levied against the owner's property.
256 (c) A local entity may require a prepayment of an installment to include:
257 (i) an amount equal to the interest that would accrue on the assessment to the next date
258 on which interest is payable on bonds issued in anticipation of the collection of the assessment;
259 and
260 (ii) the amount necessary, in the governing body's opinion or the opinion of the officer
261 designated by the governing body, to assure the availability of money to pay:
262 (A) interest that becomes due and payable on those bonds; and
263 (B) any premiums that become payable on bonds that are called in order to use the
264 money from the prepaid assessment installment.
265 Section 4. Section 11-42-605 is amended to read:
266 11-42-605. Local entity may authorize the issuance of assessment bonds -- Limit
267 on amount of bonds -- Features of assessment bonds.
268 (1) After the 25-day prepayment period under Subsection 11-42-411 (6) has passed or,
269 if the 25-day prepayment period is waived under Section 11-42-104 , after the assessment
270 resolution or ordinance takes effect, a local entity may authorize the issuance of bonds to pay
271 the costs of improvements in an assessment area, and other related costs, against the funds that
272 the local entity will receive because of an assessment in an assessment area.
273 (2) The aggregate principal amount of bonds authorized under Subsection (1) may not
274 exceed the unpaid balance of assessments at the end of the 25-day prepayment period under
275 Subsection 11-42-411 [(5)](6).

276 (3) Assessment bonds issued under this section:
277 (a) are fully negotiable for all purposes;
278 (b) shall mature at a time that does not exceed the period that installments of
279 assessments in the assessment area are due and payable, plus one year;
280 (c) shall bear interest at the lowest rate or rates reasonably obtainable;
281 (d) may not be dated earlier than the effective date of the assessment ordinance;
282 (e) shall be payable at the place, shall be in the form, and shall be sold in the manner
283 and with the details that are provided in the resolution authorizing the issuance of the bonds;
284 (f) shall be issued, as the governing body determines:
285 (i) in bearer form, with or without interest coupons attached; or
286 (ii) in registered form as provided in Title 15, Chapter 7, Registered Public Obligations
287 Act; and
288 (g) provide that interest be paid semiannually, annually, or at another interval as
289 specified by the governing body.
290 (4) (a) A local entity may:
291 (i) (A) provide that assessment bonds be callable for redemption before maturity; and
292 (B) fix the terms and conditions of redemption, including the notice to be given and
293 any premium to be paid;
294 (ii) subject to Subsection (4)(b), require assessment bonds to bear interest at a fixed or
295 variable rate, or a combination of fixed and variable rates;
296 (iii) specify terms and conditions under which:
297 (A) assessment bonds bearing interest at a variable interest rate may be converted to
298 bear interest at a fixed interest rate; and
299 (B) the local entity agrees to repurchase the bonds; and
300 (iv) engage a remarketing agent and indexing agent, subject to the terms and conditions
301 that the governing body agrees to;
302 (v) include all costs associated with assessment bonds, including any costs resulting
303 from any of the actions the local entity is authorized to take under this section, in an assessment
304 levied under Section 11-42-401 .
305 (b) If assessment bonds carry a variable interest rate, the local entity shall specify:
306 (i) the basis upon which the variable rate is to be determined over the life of the bonds;

307 (ii) the manner in which and schedule upon which the rate is to be adjusted; and
308 (iii) a maximum rate that the bonds may carry.
309 (5) (a) Nothing in this part may be construed to authorize the issuance of assessment
310 bonds to pay for the cost of ordinary repairs to pavement, sewers, drains, curbing, gutters, or
311 sidewalks.
312 (b) Notwithstanding Subsection (5)(a), a local entity may issue assessment bonds to
313 pay for extraordinary repairs to pavement, sewers, drains, curbing, gutters, or sidewalk.
314 (c) A local entity's governing body may define by resolution or ordinance what
315 constitutes ordinary repairs and extraordinary repairs for purposes of this Subsection (5).
316 (d) Nothing in this Subsection (5) may be construed to limit a local entity from levying
317 an assessment within an assessment area to pay operation and maintenance costs as described
318 in a notice under Section 11-42-402 .
319 (6) If a local entity has issued bond anticipation notes under Section 11-42-602 in
320 anticipation of assessment bonds that the local entity issues under this part, the local entity
321 shall provide for the retirement of the bond anticipation notes contemporaneously with the
322 issuance of the assessment bonds.
323 Section 5. Section 13-21-2 is amended to read:
324 13-21-2. Definitions -- Exemptions.
325 As used in this chapter:
326 (1) "Buyer" means an individual who is solicited to purchase or who purchases the
327 services of a credit services organization.
328 (2) "Credit reporting agency" means a person who, for a monetary fee, dues, or on a
329 cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling
330 or evaluating consumer credit information or other information on consumers for the purpose
331 of furnishing consumer reports to third persons.
332 (3) (a) "Credit services organization" means a person who represents [oneself] that the
333 person or an employee [as] is a debt professional or credit counselor, or, with respect to the
334 extension of credit by others, sells, provides, or performs, or represents that the person can or
335 will sell, provide, or perform, in return for the payment of money or other valuable
336 consideration any of the following services:
337 (i) improving a buyer's credit record, history, or rating;

338 (ii) providing advice, assistance, instruction, or instructional materials to a buyer with
339 regard to Subsection (3)(a)(i); or
340 (iii) debt reduction or debt management plans.
341 (b) "Credit services organization" does not include:
342 (i) a person authorized to make loans or extensions of credit under the laws of this state
343 or the United States who is subject to regulation and supervision by this state or the United
344 States and who derives at least 35% of the person's income from making loans and extensions
345 of credit;
346 (ii) a depository institution:
347 (A) as defined in Section 7-1-103 ; or
348 (B) that is regulated or supervised by the Federal Deposit Insurance Corporation or the
349 National Credit Union Administration;
350 (iii) a person licensed as a real estate broker by this state if the person is acting within
351 the course and scope of that license;
352 (iv) a person licensed to practice law in this state if:
353 (A) the person renders the services described in Subsection (3)(a) within the course and
354 scope of the person's practice as an attorney; and
355 (B) the services described in Subsection (3)(a) are incidental to the person's practice as
356 an attorney;
357 (v) a broker-dealer registered with the Securities and Exchange Commission or the
358 Commodity Futures Trading Commission if the broker-dealer is acting within the course and
359 scope of that regulation;
360 (vi) a credit reporting agency if the services described in Subsection (3)(a) are
361 incidental to the credit reporting agency's services; or
362 (vii) a person who provides debt-management services and is required to be registered
363 under Title 13, Chapter 42, Uniform Debt-Management Services Act.
364 (4) "Extension of credit" means the right to defer payment of debt or to incur debt and
365 defer its payment, offered or granted primarily for personal, family, or household purposes.
366 Section 6. Section 13-43-206 is amended to read:
367 13-43-206. Advisory opinion -- Process.
368 (1) A request for an advisory opinion under Section 13-43-205 shall be:

369 (a) filed with the Office of the Property Rights Ombudsman; and
370 (b) accompanied by a filing fee of $150.
371 (2) The Office of the Property Rights Ombudsman may establish policies providing for
372 partial fee waivers for a person who is financially unable to pay the entire fee.
373 (3) A person requesting an advisory opinion need not exhaust administrative remedies,
374 including remedies described under Section 10-9a-801 or 17-27a-801 , before requesting an
375 advisory opinion.
376 (4) The Office of the Property Rights Ombudsman shall:
377 (a) deliver notice of the request to opposing parties indicated in the request;
378 (b) inquire of all parties if there are other necessary parties to the dispute; and
379 (c) deliver notice to all necessary parties.
380 (5) If a governmental entity is an opposing party, the Office of the Property Rights
381 Ombudsman shall deliver the request in the manner provided for in Section [ 63-30d-301 ]
382 63-30d-401 .
383 (6) (a) The Office of the Property Rights Ombudsman shall promptly determine if the
384 parties can agree to a neutral third party to issue an advisory opinion.
385 (b) If no agreement can be reached within four business days after notice is delivered
386 pursuant to Subsections (4) and (5), the Office of the Property Rights Ombudsman shall
387 appoint a neutral third party to issue an advisory opinion.
388 (7) All parties that are the subject of the request for advisory opinion shall:
389 (a) share equally in the cost of the advisory opinion; and
390 (b) provide financial assurance for payment that the neutral third party requires.
391 (8) The neutral third party shall comply with the provisions of Section 78-31a-109 , and
392 shall promptly:
393 (a) seek a response from all necessary parties to the issues raised in the request for
394 advisory opinion;
395 (b) investigate and consider all responses; and
396 (c) issue a written advisory opinion within 15 business days after the appointment of
397 the neutral third party under Subsection (6)(b), unless:
398 (i) the parties agree to extend the deadline; or
399 (ii) the neutral third party determines that the matter is complex and requires additional

400 time to render an opinion, which may not exceed 30 calendar days.
401 (9) An advisory opinion shall include a statement of the facts and law supporting the
402 opinion's conclusions.
403 (10) (a) Copies of any advisory opinion issued by the Office of the Property Rights
404 Ombudsman shall be delivered as soon as practicable to all necessary parties.
405 (b) A copy of the advisory opinion shall be delivered to the government entity in the
406 manner provided for in Section 63-30d-401 .
407 (11) An advisory opinion issued by the Office of the Property Rights Ombudsman is
408 not binding on any party to, nor admissible as evidence in, a dispute involving land use law
409 except as provided in Subsection (12).
410 (12) (a) If the same issue that is the subject of an advisory opinion is listed as a cause
411 of action in litigation, and that cause of action is litigated on the same facts and circumstances
412 and is resolved consistent with the advisory opinion, the substantially prevailing party on that
413 cause of action may collect reasonable attorney fees and court costs pertaining to the
414 development of that cause of action from the date of the delivery of the advisory opinion to the
415 date of the court's resolution.
416 (b) Nothing in this Subsection (12) is intended to create any new cause of action under
417 land use law.
418 (13) Unless filed by the local government, a request for an advisory opinion under
419 Section 13-43-205 does not stay the progress of a land use application, or the effect of a land
420 use decision.
421 Section 7. Section 16-4-102 is amended to read:
422 16-4-102. Definitions.
423 As used in this chapter:
424 (1) "Corporation" means a nonprofit corporation or a profit corporation.
425 (2) "Nonprofit corporation" means a nonprofit corporation as defined in Section
426 16-6a-102 .
427 (3) "Profit corporation" means a corporation as defined in Section 16-10a-102 .
428 (4) "Shares" means shares as defined in:
429 (a) Section 16-6a-102 for a nonprofit corporation; and
430 (b) Section 16-10a-102 for a profit corporation.

431 (5) "Water company" means a corporation in which a shareholder has the right, based
432 on the [shareholders] shareholder's shares, to receive a proportionate share of water delivered
433 by the corporation.
434 Section 8. Section 16-6a-1702 is amended to read:
435 16-6a-1702. Application to foreign nonprofit corporations.
436 (1) A foreign nonprofit corporation authorized to conduct affairs in this state on April
437 30, 2001, is subject to this chapter, but is not required to obtain a new certificate of authority to
438 conduct affairs under this chapter.
439 (2) A foreign nonprofit corporation that is qualified to do business in this state under
440 the provisions of Title 16, Chapter 8, which provisions were repealed by [Chapter 28,] Laws of
441 Utah 1961, Chapter 28, shall be authorized to transact business in this state subject to all of the
442 limitations, restrictions, liabilities, and duties prescribed in this chapter.
443 (3) This chapter shall apply to all foreign nonprofit corporations sole qualified to do
444 business in this state with respect to mergers and consolidations.
445 Section 9. Section 17-27a-103 is amended to read:
446 17-27a-103. Definitions.
447 As used in this chapter:
448 (1) "Affected entity" means a county, municipality, local district, special service
449 district under Title 17A, Chapter 2, Part 13, Utah Special Service District Act, school district,
450 interlocal cooperation entity established under Title 11, Chapter 13, Interlocal Cooperation Act,
451 specified property owner, property owners association, public utility, or the Utah Department
452 of Transportation, if:
453 (a) the entity's services or facilities are likely to require expansion or significant
454 modification because of an intended use of land;
455 (b) the entity has filed with the county a copy of the entity's general or long-range plan;
456 or
457 (c) the entity has filed with the county a request for notice during the same calendar
458 year and before the county provides notice to an affected entity in compliance with a
459 requirement imposed under this chapter.
460 (2) "Appeal authority" means the person, board, commission, agency, or other body
461 designated by ordinance to decide an appeal of a decision of a land use application or a

462 variance.
463 (3) "Billboard" means a freestanding ground sign located on industrial, commercial, or
464 residential property if the sign is designed or intended to direct attention to a business, product,
465 or service that is not sold, offered, or existing on the property where the sign is located.
466 (4) "Charter school" includes:
467 (a) an operating charter school;
468 (b) a charter school applicant that has its application approved by a chartering entity in
469 accordance with Title 53A, Chapter 1a, Part 5, The Utah Charter Schools Act; and
470 (c) an entity who is working on behalf of a charter school or approved charter applicant
471 to develop or construct a charter school building.
472 (5) "Chief executive officer" means the person or body that exercises the executive
473 powers of the county.
474 (6) "Conditional use" means a land use that, because of its unique characteristics or
475 potential impact on the county, surrounding neighbors, or adjacent land uses, may not be
476 compatible in some areas or may be compatible only if certain conditions are required that
477 mitigate or eliminate the detrimental impacts.
478 (7) "Constitutional taking" means a governmental action that results in a taking of
479 private property so that compensation to the owner of the property is required by the:
480 (a) Fifth or Fourteenth Amendment of the Constitution of the United States; or
481 (b) Utah Constitution Article I, Section 22.
482 (8) "Culinary water authority" means the department, agency, or public entity with
483 responsibility to review and approve the feasibility of the culinary water system and sources for
484 the subject property.
485 (9) (a) "Disability" means a physical or mental impairment that substantially limits one
486 or more of a person's major life activities, including a person having a record of such an
487 impairment or being regarded as having such an impairment.
488 (b) "Disability" does not include current illegal use of, or addiction to, any federally
489 controlled substance, as defined in Section 102 of the Controlled Substances Act, 21 U.S.C.
490 802.
491 (10) "Elderly person" means a person who is 60 years old or older, who desires or
492 needs to live with other elderly persons in a group setting, but who is capable of living

493 independently.
494 (11) "Fire authority" means the department, agency, or public entity with responsibility
495 to review and approve the feasibility of fire protection and suppression services for the subject
496 property.
497 (12) "Gas corporation" has the same meaning as defined in Section 54-2-1 .
498 (13) "General plan" means a document that a county adopts that sets forth general
499 guidelines for proposed future development of the unincorporated land within the county.
500 (14) "Identical plans" means building plans submitted to a county that are substantially
501 identical building plans that were previously submitted to and reviewed and approved by the
502 county and describe a building that is:
503 (a) located on land zoned the same as the land on which the building described in the
504 previously approved plans is located; and
505 (b) subject to the same geological and meteorological conditions and the same law as
506 the building described in the previously approved plans.
507 (15) "Interstate pipeline company" means a person or entity engaged in natural gas
508 transportation subject to the jurisdiction of the Federal Energy Regulatory Commission under
509 the Natural Gas Act, 15 U.S.C. Sec. 717 et seq.
510 (16) "Intrastate pipeline company" means a person or entity engaged in natural gas
511 transportation that is not subject to the jurisdiction of the Federal Energy Regulatory
512 Commission under the Natural Gas Act, 15 U.S.C. Sec. 717 et seq.
513 (17) "Land use application" means an application required by a county's land use
514 ordinance.
515 (18) "Land use authority" means a person, board, commission, agency, or other body
516 designated by the local legislative body to act upon a land use application.
517 (19) "Land use ordinance" means a planning, zoning, development, or subdivision
518 ordinance of the county, but does not include the general plan.
519 (20) "Land use permit" means a permit issued by a land use authority.
520 (21) "Legislative body" means the county legislative body, or for a county that has
521 adopted an alternative form of government, the body exercising legislative powers.
522 (22) "Local district" means any entity under Title 17B, Limited Purpose Local
523 Government Entities - Local Districts, and any other governmental or quasi-governmental

524 entity that is not a county, municipality, school district, or unit of the state.
525 (23) "Lot line adjustment" means the relocation of the property boundary line in a
526 subdivision between two adjoining lots with the consent of the owners of record.
527 (24) "Moderate income housing" means housing occupied or reserved for occupancy
528 by households with a gross household income equal to or less than 80% of the median gross
529 income for households of the same size in the county in which the housing is located.
530 (25) "Nominal fee" means a fee that reasonably reimburses a county only for time spent
531 and expenses incurred in:
532 (a) verifying that building plans are identical plans; and
533 (b) reviewing and approving those minor aspects of identical plans that differ from the
534 previously reviewed and approved building plans.
535 (26) "Noncomplying structure" means a structure that:
536 (a) legally existed before its current land use designation; and
537 (b) because of one or more subsequent land use ordinance changes, does not conform
538 to the setback, height restrictions, or other regulations, excluding those regulations that govern
539 the use of land.
540 (27) "Nonconforming use" means a use of land that:
541 (a) legally existed before its current land use designation;
542 (b) has been maintained continuously since the time the land use ordinance regulation
543 governing the land changed; and
544 (c) because of one or more subsequent land use ordinance changes, does not conform
545 to the regulations that now govern the use of the land.
546 (28) "Official map" means a map drawn by county authorities and recorded in the
547 county recorder's office that:
548 (a) shows actual and proposed rights-of-way, centerline alignments, and setbacks for
549 highways and other transportation facilities;
550 (b) provides a basis for restricting development in designated rights-of-way or between
551 designated setbacks to allow the government authorities time to purchase or otherwise reserve
552 the land; and
553 (c) has been adopted as an element of the county's general plan.
554 (29) "Person" means an individual, corporation, partnership, organization, association,

555 trust, governmental agency, or any other legal entity.
556 (30) "Plan for moderate income housing" means a written document adopted by a
557 county legislative body that includes:
558 (a) an estimate of the existing supply of moderate income housing located within the
559 county;
560 (b) an estimate of the need for moderate income housing in the county for the next five
561 years as revised biennially;
562 (c) a survey of total residential land use;
563 (d) an evaluation of how existing land uses and zones affect opportunities for moderate
564 income housing; and
565 (e) a description of the county's program to encourage an adequate supply of moderate
566 income housing.
567 (31) "Plat" means a map or other graphical representation of lands being laid out and
568 prepared in accordance with Section 17-27a-603 , 17-23-17 , or 57-8-13 .
569 (32) "Public hearing" means a hearing at which members of the public are provided a
570 reasonable opportunity to comment on the subject of the hearing.
571 (33) "Public meeting" means a meeting that is required to be open to the public under
572 Title 52, Chapter 4, Open and Public Meetings Act.
573 (34) "Receiving zone" means an unincorporated area of a county that the county's land
574 use authority designates as an area in which an owner of land may receive transferrable
575 development rights.
576 (35) "Record of survey map" means a map of a survey of land prepared in accordance
577 with Section 17-23-17 .
578 (36) "Residential facility for elderly persons" means a single-family or multiple-family
579 dwelling unit that meets the requirements of Section 17-27a-515 , but does not include a health
580 care facility as defined by Section 26-21-2 .
581 (37) "Residential facility for persons with a disability" means a residence:
582 (a) in which more than one person with a disability resides; and
583 (b) (i) is licensed or certified by the Department of Human Services under Title 62A,
584 Chapter 2, Licensure of Programs and Facilities; or
585 (ii) is licensed or certified by the Department of Health under Title 26, Chapter 21,

586 Health Care Facility Licensing and Inspection Act.
587 (38) "Sanitary sewer authority" means the department, agency, or public entity with
588 responsibility to review and approve the feasibility of sanitary sewer services or onsite
589 wastewater systems.
590 (39) "Sending zone" means an unincorporated area of a county that the county's land
591 use authority designates as an area from which an owner of land may transfer transferrable
592 development rights to an owner of land in a receiving zone.
593 (40) "Specified public utility" means an electrical corporation, gas corporation, or
594 telephone corporation, as those terms are defined in Section 54-2-1 .
595 (41) "Street" means a public right-of-way, including a highway, avenue, boulevard,
596 parkway, road, lane, walk, alley, viaduct, subway, tunnel, bridge, public easement, or other
597 way.
598 (42) (a) "Subdivision" means any land that is divided, resubdivided or proposed to be
599 divided into two or more lots, parcels, sites, units, plots, or other division of land for the
600 purpose, whether immediate or future, for offer, sale, lease, or development either on the
601 installment plan or upon any and all other plans, terms, and conditions.
602 (b) "Subdivision" includes:
603 (i) the division or development of land whether by deed, metes and bounds description,
604 devise and testacy, map, plat, or other recorded instrument; and
605 (ii) except as provided in Subsection (42)(c), divisions of land for residential and
606 nonresidential uses, including land used or to be used for commercial, agricultural, and
607 industrial purposes.
608 (c) "Subdivision" does not include:
609 (i) a bona fide division or partition of agricultural land for agricultural purposes;
610 (ii) a recorded agreement between owners of adjoining properties adjusting their
611 mutual boundary if:
612 (A) no new lot is created; and
613 (B) the adjustment does not violate applicable land use ordinances;
614 (iii) a recorded document, executed by the owner of record:
615 (A) revising the legal description of more than one contiguous unsubdivided parcel of
616 property into one legal description encompassing all such parcels of property; or

617 (B) joining a subdivided parcel of property to another parcel of property that has not
618 been subdivided, if the joinder does not violate applicable land use ordinances;
619 (iv) a bona fide division or partition of land in a county other than a first class county
620 for the purpose of siting, on one or more of the resulting separate parcels:
621 (A) an unmanned facility appurtenant to a pipeline owned or operated by a gas
622 corporation, interstate pipeline company, or intrastate pipeline company; or
623 (B) an unmanned telecommunications, microwave, fiber optic, electrical, or other
624 utility service regeneration, transformation, retransmission, or amplification facility; or
625 (v) a recorded agreement between owners of adjoining subdivided properties adjusting
626 their mutual boundary if:
627 (A) no new dwelling lot or housing unit will result from the adjustment; and
628 (B) the adjustment will not violate any applicable land use ordinance.
629 (d) The joining of a subdivided parcel of property to another parcel of property that has
630 not been subdivided does not constitute a subdivision under this Subsection (42) as to the
631 unsubdivided parcel of property or subject the unsubdivided parcel to the county's subdivision
632 ordinance.
633 (43) "Township" means a contiguous, geographically defined portion of the
634 unincorporated area of a county, established under this part or reconstituted or reinstated under
635 Section 17-27a-306 , with planning and zoning functions as exercised through the township
636 planning commission, as provided in this chapter, but with no legal or political identity
637 separate from the county and no taxing authority, except that "township" means a former
638 township under [Chapter 308,] Laws of Utah 1996, Chapter 308, where the context so
639 indicates.
640 (44) "Transferrable development right" means the entitlement to develop land within a
641 sending zone that would vest according to the county's existing land use ordinances on the date
642 that a completed land use application is filed seeking the approval of development activity on
643 the land.
644 (45) "Unincorporated" means the area outside of the incorporated area of a
645 municipality.
646 (46) "Zoning map" means a map, adopted as part of a land use ordinance, that depicts
647 land use zones, overlays, or districts.

648 Section 10. Section 17-27a-301 is amended to read:
649 17-27a-301. Ordinance establishing planning commission required -- Exception --
650 Ordinance requirements -- Township planning commission -- Compensation.
651 (1) (a) Except as provided in Subsection (1)(b), each county shall enact an ordinance
652 establishing a countywide planning commission for the unincorporated areas of the county not
653 within a township.
654 (b) Subsection (1)(a) does not apply if all of the county is included within any
655 combination of:
656 (i) municipalities; and
657 (ii) townships with their own planning commissions.
658 (2) The ordinance shall define:
659 (a) the number and terms of the members and, if the county chooses, alternate
660 members;
661 (b) the mode of appointment;
662 (c) the procedures for filling vacancies and removal from office;
663 (d) the authority of the planning commission; and
664 (e) other details relating to the organization and procedures of the planning
665 commission.
666 (3) (a) If the county establishes a township planning commission, the county legislative
667 body shall enact an ordinance defining appointment procedures, procedures for filling
668 vacancies and removing members from office, and other details relating to the organization and
669 procedures of each township planning commission.
670 (b) The planning commission for each township shall consist of seven members who,
671 except as provided in Subsection (3)(e), shall be appointed by:
672 (i) in a county operating under a form of government in which the executive and
673 legislative functions of the governing body are separated, the county executive with the advice
674 and consent of the county legislative body; or
675 (ii) in a county operating under a form of government in which the executive and
676 legislative functions of the governing body are not separated, the county legislative body.
677 (c) (i) Members shall serve four-year terms and until their successors are appointed or,
678 as provided in Subsection (3)(e), elected and qualified.

679 (ii) Notwithstanding the provisions of Subsection (3)(c)(i) and except as provided in
680 Subsection (3)(e), members of the first planning commissions shall be appointed so that, for
681 each commission, the terms of at least one member and no more than two members expire each
682 year.
683 (d) (i) Except as provided in Subsection (3)(d)(ii), each member of a township
684 planning commission shall be a registered voter residing within the township.
685 (ii) (A) Notwithstanding Subsection (3)(d)(i), one member of a planning commission
686 of a township reconstituted under [Chapter 389,] Laws of Utah 1997, Chapter 389, or
687 reinstated or established under Subsection 17-27a-306 (1)(e)(i) may be an appointed member
688 who is a registered voter residing outside the township if that member:
689 (I) is an owner of real property located within the township; and
690 (II) resides within the county in which the township is located.
691 (B) (I) Each appointee under Subsection (3)(d)(ii)(A) shall be chosen by the township
692 planning commission from a list of three persons submitted by the county legislative body.
693 (II) If the township planning commission has not notified the county legislative body of
694 its choice under Subsection (3)(d)(ii)(B)(I) within 60 days of the township planning
695 commission's receipt of the list, the county legislative body may appoint one of the three
696 persons on the list or a registered voter residing within the township as a member of the
697 township planning commission.
698 (e) (i) The legislative body of each county in which a township reconstituted under
699 [Chapter 389,] Laws of Utah 1997, Chapter 389, or reinstated or established under Subsection
700 17-27a-306 (1)(e)(i) is located shall enact an ordinance that provides for the election of at least
701 three members of the planning commission of that township.
702 (ii) The election of planning commission members under Subsection (3)(e)(i) shall
703 coincide with the election of other county officers during even-numbered years.
704 Approximately half the elected planning commission members shall be elected every four years
705 during elections held on even-numbered years, and the remaining elected members shall be
706 elected every four years on alternating even-numbered years.
707 (f) (i) (A) The legislative body of each county in which a township reconstituted under
708 [Chapter 389,] Laws of Utah 1997, Chapter 389, or reinstated or established under Subsection
709 17-27a-306 (1)(e)(i) is located shall enact an ordinance appointing each elected member of the

710 planning and zoning board of the former township, established under [Chapter 308,] Laws of
711 Utah 1996, Chapter 308, as a member of the planning commission of the reconstituted or
712 reinstated township. Each member appointed under this subsection shall be considered an
713 elected member.
714 (B) (I) Except as provided in Subsection (3)(f)(i)(B)(II), the term of each member
715 appointed under Subsection (3)(f)(i)(A) shall continue until the time that the member's term as
716 an elected member of the former township planning and zoning board would have expired.
717 (II) Notwithstanding Subsection (3)(f)(i)(B)(I), the county legislative body may adjust
718 the terms of the members appointed under Subsection (3)(f)(i)(A) so that the terms of those
719 members coincide with the schedule under Subsection (3)(e)(ii) for elected members.
720 (ii) Subject to Subsection (3)(f)(iii), the legislative body of a county in which a
721 township reconstituted under [Chapter 389,] Laws of Utah 1997, Chapter 389, or reinstated or
722 established under Subsection 17-27a-306 (1)(e)(i) is located may enact an ordinance allowing
723 each appointed member of the planning and zoning board of the former township, established
724 under [Chapter 308,] Laws of Utah 1996, Chapter 308, to continue to hold office as a member
725 of the planning commission of the reconstituted or reinstated township until the time that the
726 member's term as a member of the former township's planning and zoning board would have
727 expired.
728 (iii) If a planning commission of a township reconstituted under [Chapter 389,] Laws
729 of Utah 1997, Chapter 389, or reinstated or established under Subsection 17-27a-306 (1)(e)(i)
730 has more than one appointed member who resides outside the township, the legislative body of
731 the county in which that township is located shall, within 15 days of the effective date of this
732 Subsection (3)(f)(iii), dismiss all but one of the appointed members who reside outside the
733 township, and a new member shall be appointed under Subsection (3)(b) no later than August
734 16, 1997, to fill the position of each dismissed member.
735 (g) (i) Except as provided in Subsection (3)(g)(ii), upon the appointment or election of
736 all members of a township planning commission, each township planning commission under
737 this section shall begin to exercise the powers and perform the duties provided in Section
738 17-27a-302 with respect to all matters then pending that previously had been under the
739 jurisdiction of the countywide planning commission or township planning and zoning board.
740 (ii) Notwithstanding Subsection (3)(g)(i), if the members of a former township

741 planning and zoning board continue to hold office as members of the planning commission of
742 the township planning district under an ordinance enacted under Subsection (3)(f), the
743 township planning commission shall immediately begin to exercise the powers and perform the
744 duties provided in Section 17-27a-302 with respect to all matters then pending that had
745 previously been under the jurisdiction of the township planning and zoning board.
746 (4) The legislative body may fix per diem compensation for the members of the
747 planning commission, based on necessary and reasonable expenses and on meetings actually
748 attended.
749 Section 11. Section 17-27a-306 is amended to read:
750 17-27a-306. Townships.
751 (1) (a) (i) Subject to Subsection (1)(a)(ii), a county legislative body may, without
752 having received a petition under Subsection (1)(b), enact an ordinance establishing a township
753 within the unincorporated county or dividing the unincorporated county into townships.
754 (ii) Before enacting an ordinance under Subsection (1)(a)(i), the county legislative
755 body shall, after providing reasonable advance notice, hold a public hearing on the proposal to
756 establish a township or to divide the unincorporated county into townships.
757 (b) If 25% of the private real property owners in a contiguous area of the
758 unincorporated county petition the county legislative body to establish a township for that area,
759 the county legislative body shall:
760 (i) hold a public hearing to discuss the petition;
761 (ii) at least one week before the public hearing, publish notice of the petition and the
762 time, date, and place of the public hearing at least once in a newspaper of general circulation in
763 the county; and
764 (iii) at the public hearing, consider oral and written testimony from the public and vote
765 on the question of whether or not to establish a township.
766 (c) If the county legislative body establishes a township pursuant to a petition, the
767 members of the township planning commission shall be appointed as provided in Subsection
768 17-27a-301 (3)(b) to perform the duties established in this part for the township.
769 (d) Except as provided in Subsection (1)(e), each township shall:
770 (i) contain:
771 (A) at least 20% but not more than 80% of:

772 (I) the total private land area in the unincorporated county; or
773 (II) the total value of locally assessed taxable property in the unincorporated county; or
774 (B) (I) in a county of the first, second, or third class, at least 5% of the total population
775 of the unincorporated county; or
776 (II) in a county of the fourth, fifth, or sixth class, at least 25% of the total population of
777 the unincorporated county; or
778 (ii) have been declared by the United States Census Bureau as a census designated
779 place.
780 (e) (i) (A) A township that was dissolved under [Chapter 389,] Laws of Utah 1997,
781 Chapter 389, is reinstated as a township under this part with the same boundaries and name as
782 before the dissolution, if the former township consisted of a single, contiguous land area.
783 (B) Notwithstanding Subsection (1)(e)(i)(A), a county legislative body may enact an
784 ordinance establishing as a township under this part a former township that was dissolved
785 under [Chapter 389,] Laws of Utah 1997, Chapter 389, even though the former township does
786 not qualify to be reinstated under Subsection (1)(e)(i)(A).
787 (C) A township reinstated under Subsection (1)(e)(i)(A) or established under
788 Subsection (1)(e)(i)(B) shall be subject to the provisions of this part.
789 (ii) Each planning district established under [Chapter 225,] Laws of Utah 1995,
790 Chapter 225, and each township planning district established under [Chapter 389,] Laws of
791 Utah 1997, Chapter 389, shall continue in existence as a township, subject to the provisions of
792 this part.
793 (f) (i) After May 1, 2002, the legislative body of each county in which a township that
794 has been reconstituted under [Chapter 389,] Laws of Utah 1997, Chapter 389, or reinstated
795 under Subsection (1)(e)(i) is located shall review the township and determine whether its
796 continued existence is advisable.
797 (ii) In conducting the review required under Subsection (1)(f)(i), the county legislative
798 body shall hold a public hearing with reasonable, advance, published notice of the hearing and
799 the purpose of the hearing.
800 (iii) Each township that has been reconstituted under [Chapter 389,] Laws of Utah
801 1997, Chapter 389, or reinstated or established under Subsection (1)(e)(i) and its planning
802 commission shall continue in effect, unless, within 90 days after conducting the review and

803 public hearing required under Subsections (1)(f)(i) and (ii), the county legislative body by
804 ordinance dissolves the township and its planning commission.
805 (g) A township established under this section on or after May 5, 1997, may use the
806 word "township" in its name.
807 (2) (a) If the county legislative body establishes a township without having received a
808 petition, the county legislative body may:
809 (i) assign to the countywide planning commission the duties established in this part that
810 would have been assumed by a township planning commission designated under Subsection
811 (2)(a)(ii); or
812 (ii) designate a planning commission for the township.
813 (b) (i) If the county legislative body fails to designate a planning commission for a
814 township, 40% of the private real property owners in the area proposed to be included in the
815 township, as shown by the last county assessment roll, may petition the county legislative body
816 to designate and appoint a planning commission for the township.
817 (ii) If the county legislative body determines that the petition is validly signed by 40%
818 of the private real property owners in the township, as shown by the last county assessment
819 roll, it shall designate and appoint a planning commission for the township.
820 (3) (a) Except as provided in Subsection (1)(f)(iii), a county legislative body may
821 dissolve township planning commissions created under the authority of this section only by
822 following the procedures and requirements of this Subsection (3).
823 (b) If 20% of the private real property owners in the county petition the county
824 legislative body to dissolve township planning commissions and to appoint a countywide
825 planning commission, the county legislative body shall:
826 (i) hold a public hearing to discuss the petition;
827 (ii) at least one week before the public hearing, publish notice of the petition and the
828 time, date, and place of the public hearing at least once in a newspaper of general circulation in
829 the county; and
830 (iii) at the public hearing, consider oral and written testimony from the public and vote
831 on the question of whether or not to dissolve township planning commissions and to appoint a
832 countywide planning commission.
833 (c) (i) If the county legislative body fails to dissolve township planning commissions

834 and to appoint a countywide planning commission when petitioned to do so by private real
835 property owners under this Subsection (3), 40% of private real property owners in the county,
836 as shown by the last county assessment roll, may petition the county legislative body to
837 dissolve the township planning commissions and to appoint a countywide planning
838 commission.
839 (ii) If the county legislative body determines that the petition is validly signed by 40%
840 of private real property owners in the township, as shown by the last county assessment roll, it
841 shall dissolve the township planning commissions and appoint a countywide planning
842 commission.
843 Section 12. Section 17-27a-307 is amended to read:
844 17-27a-307. Certain township planning and zoning board dissolved.
845 Except as provided in Subsection 17-27a-306 (1)(f), the planning and zoning board of
846 each township formed before May 5, 1997, under [Chapter 308,] Laws of Utah 1996, Chapter
847 308, is dissolved.
848 Section 13. Section 17-27a-603 is amended to read:
849 17-27a-603. Plat required when land is subdivided -- Approval of plat --
850 Recording plat.
851 (1) Unless exempt under Section 17-27a-605 or excluded from the definition of
852 subdivision under Subsection 17-27a-103 [(39)](42), whenever any land is laid out and platted,
853 the owner of the land shall provide an accurate plat that describes or specifies:
854 (a) a name or designation of the subdivision that is distinct from any plat already
855 recorded in the county recorder's office;
856 (b) the boundaries, course, and dimensions of all of the parcels of ground divided, by
857 their boundaries, course, and extent, whether the owner proposes that any parcel of ground is
858 intended to be used as a street or for any other public use, and whether any such area is
859 reserved or proposed for dedication for a public purpose;
860 (c) the lot or unit reference, block or building reference, street or site address, street
861 name or coordinate address, acreage or square footage for all parcels, units, or lots, and length
862 and width of the blocks and lots intended for sale; and
863 (d) every existing right-of-way and easement grant of record for underground facilities,
864 as defined in Section 54-8a-2 , and for other utility facilities.

865 (2) (a) Subject to Subsections (3), (4), and (5), if the plat conforms to the county's
866 ordinances and this part and has been approved by the culinary water authority and the sanitary
867 sewer authority, the county shall approve the plat.
868 (b) Counties are encouraged to receive a recommendation from the fire authority before
869 approving a plat.
870 (3) The county may withhold an otherwise valid plat approval until the owner of the
871 land provides the legislative body with a tax clearance indicating that all taxes, interest, and
872 penalties owing on the land have been paid.
873 (4) (a) The owner of the land shall acknowledge the plat before an officer authorized
874 by law to take the acknowledgment of conveyances of real estate and shall obtain the signature
875 of each individual designated by the county.
876 (b) The surveyor making the plat shall certify that the surveyor:
877 (i) holds a license in accordance with Title 58, Chapter 22, Professional Engineers and
878 Professional Land Surveyors Licensing Act;
879 (ii) has completed a survey of the property described on the plat in accordance with
880 Section 17-23-17 and has verified all measurements; and
881 (iii) has placed monuments as represented on the plat.
882 (c) (i) As applicable, the owner or operator of the underground and utility facilities
883 shall approve the:
884 (A) boundary, course, dimensions, and intended use of the right-of-way and easement
885 grants of record;
886 (B) location of existing underground and utility facilities; and
887 (C) conditions or restrictions governing the location of the facilities within the
888 right-of-way, and easement grants of records, and utility facilities within the subdivision.
889 (ii) The approval of an owner or operator under Subsection (4)(c)(i):
890 (A) indicates only that the plat approximates the location of the existing underground
891 and utility facilities but does not warrant or verify their precise location; and
892 (B) does not affect a right that the owner or operator has under:
893 (I) Title 54, Chapter 8a, Damage to Underground Utility Facilities;
894 (II) a recorded easement or right-of-way;
895 (III) the law applicable to prescriptive rights; or

896 (IV) any other provision of law.
897 (5) (a) After the plat has been acknowledged, certified, and approved, the owner of the
898 land shall, within the time period designated by ordinance, record the plat in the county
899 recorder's office in the county in which the lands platted and laid out are situated.
900 (b) An owner's failure to record a plat within the time period designated by ordinance
901 renders the plat voidable.
902 Section 14. Section 17-52-201 is amended to read:
903 17-52-201. Procedure for initiating adoption of optional plan -- Limitations --
904 Pending proceedings.
905 (1) An optional plan proposing an alternate form of government for a county may be
906 adopted as provided in this chapter.
907 (2) The process to adopt an optional plan establishing an alternate form of county
908 government may be initiated by:
909 (a) the county legislative body as provided in Section 17-52-202 ; or
910 (b) registered voters of the county as provided in Section 17-52-203 .
911 (3) (a) If the process to adopt an optional plan has been initiated under [Chapter 26,]
912 Laws of Utah 1973, Chapter 26, Section 3, 4, or 5, or Section 17-52-202 or 17-52-203 , the
913 county legislative body may not initiate the process again under Section 17-52-202 unless the
914 earlier proceeding:
915 (i) has been concluded by an affirmative or negative vote of registered voters; or
916 (ii) has not been concluded but has been pending for at least two years.
917 (b) A county legislative body may not initiate the process to adopt an optional plan
918 under Section 17-52-202 within four years of an election at which voters approved or rejected
919 an optional plan proposed as a result of a process initiated by the county legislative body.
920 (c) Registered voters of a county may not initiate the process to adopt an optional plan
921 under Section 17-52-203 within four years of an election at which voters approved or rejected
922 an optional plan proposed as a result of a process initiated by registered voters.
923 Section 15. Section 17-53-216 is amended to read:
924 17-53-216. Business license fees and taxes -- Application information to be
925 transmitted to the county assessor.
926 (1) For the purpose of this section, "business" means any enterprise carried on for the

927 purpose of gain or economic profit, except that the acts of employees rendering services to
928 employers are not included in this definition.
929 (2) The legislative body of a county may by ordinance provide for the licensing of
930 businesses within the unincorporated areas of the county for the purpose of regulation and
931 revenue.
932 (3) All license fees and taxes shall be uniform in respect to the class upon which they
933 are imposed.
934 (4) The county business licensing agency shall transmit the information from each
935 approved business license application to the county assessor within 60 days following the
936 approval of the application.
937 (5) This section may not be construed to enhance, diminish, or otherwise alter the
938 taxing power of counties existing prior to the effective date of [Chapter 144,] Laws of Utah
939 1988, Chapter 144.
940 Section 16. Section 19-2-103 is amended to read:
941 19-2-103. Members of board -- Appointment -- Terms -- Organization -- Per diem
942 and expenses.
943 (1) The board comprises 11 members, one of whom shall be the executive director and
944 ten of whom shall be appointed by the governor with the consent of the Senate.
945 (2) The members shall be knowledgeable of air pollution matters and shall be:
946 (a) a practicing physician and surgeon licensed in the state not connected with industry;
947 (b) a registered professional engineer who is not from industry;
948 (c) a representative from municipal government;
949 (d) a representative from county government;
950 (e) a representative from agriculture;
951 (f) a representative from the mining industry;
952 (g) a representative from manufacturing;
953 (h) a representative from the fuel industry; and
954 (i) two representatives of the public not representing or connected with industry, at
955 least one of whom represents organized environmental interests.
956 (3) No more than five of the appointed members shall belong to the same political
957 party.

958 (4) The majority of the members may not derive any significant portion of their income
959 from persons subject to permits or orders under this chapter. Any potential conflict of interest
960 of any member or the executive secretary, relevant to the interests of the board, shall be
961 adequately disclosed.
962 (5) Members serving on the Air Conservation Committee created by [Chapter 126,]
963 Laws of Utah 1981, Chapter 126, as amended, shall serve as members of the board throughout
964 the terms for which they were appointed.
965 (6) (a) Except as required by Subsection (6)(b), members shall be appointed for a term
966 of four years.
967 (b) Notwithstanding the requirements of Subsection (6)(a), the governor shall, at the
968 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
969 board members are staggered so that approximately half of the board is appointed every two
970 years.
971 (7) [Members] A member may serve more than one term.
972 (8) [Members] A member shall hold office until the expiration of their terms and until
973 their successors are appointed, but not more than 90 days after the expiration of their terms.
974 (9) When a vacancy occurs in the membership for any reason, the replacement shall be
975 appointed for the unexpired term.
976 (10) The board shall elect annually a chair and a vice chair from its members.
977 (11) (a) The board shall meet at least quarterly, and special meetings may be called by
978 the chair upon his own initiative, upon the request of the executive secretary, or upon the
979 request of three members of the board.
980 (b) Three days' notice shall be given to each member of the board prior to any meeting.
981 (12) Six members constitute a quorum at any meeting, and the action of a majority of
982 members present is the action of the board.
983 (13) (a) (i) [Members] A member who [are] is not a government [employees] employee
984 shall receive no compensation or benefits for [their] the member's services, but may receive per
985 diem and expenses incurred in the performance of the member's official duties at the rates
986 established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
987 (ii) [Members] A member may decline to receive per diem and expenses for [their] the
988 member's service.

989 (b) (i) [State] A state government officer and employee [members] member who [do]
990 does not receive salary, per diem, or expenses from [their] the agency the member represents
991 for [their] the member's service may receive per diem and expenses incurred in the
992 performance of [their] the member's official duties from the board at the rates established by
993 the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
994 (ii) [State] A state government officer and employee [members] member may decline
995 to receive per diem and expenses for [their] the member's service.
996 (c) (i) [Local] A local government [members] member who [do] does not receive
997 salary, per diem, or expenses from the entity that [they represent] the member represents for
998 [their] the member's service may receive per diem and expenses incurred in the performance of
999 [their] the member's official duties at the rates established by the Division of Finance under
1000 Sections 63A-3-106 and 63A-3-107 .
1001 (ii) [Local] A local government [members] member may decline to receive per diem
1002 and expenses for [their] the member's service.
1003 Section 17. Section 19-4-103 is amended to read:
1004 19-4-103. Drinking Water Board -- Members -- Organization -- Meetings -- Per
1005 diem and expenses.
1006 (1) The board created under Section 19-1-106 comprises 11 members, one of whom is
1007 the executive director and the remainder of whom shall be appointed by the governor with the
1008 consent of the Senate.
1009 (2) No more than five appointed members shall be from the same political party.
1010 (3) The appointed members shall be knowledgeable about drinking water and public
1011 water systems and shall represent different geographical areas within the state insofar as
1012 practicable.
1013 (4) The ten appointed members shall be appointed from the following areas:
1014 (a) two elected officials of municipal government or their representatives involved in
1015 management or operation of public water systems;
1016 (b) two representatives of improvement districts, water conservancy districts, or
1017 metropolitan water districts;
1018 (c) one representative from an industry which manages or operates a public water
1019 system;

1020 (d) one registered professional engineer with expertise in civil or sanitary engineering;
1021 (e) one representative from the state water research community or from an institution
1022 of higher education which has comparable expertise in water research;
1023 (f) two representatives of the public who do not represent other interests named in this
1024 section and who do not receive, and have not received during the past two years, a significant
1025 portion of their income, directly or indirectly, from suppliers; and
1026 (g) one representative from a local health department.
1027 (5) (a) Members of the Utah Safe Drinking Water Committee created by [Chapter 126,]
1028 Laws of Utah 1981, Chapter 126, shall serve as members of the board throughout the terms for
1029 which they were appointed.
1030 (b) Except as required by Subsection (5)(c), as terms of current board members expire,
1031 the governor shall appoint each new member or reappointed member to a four-year term.
1032 (c) Notwithstanding the requirements of Subsection (5)(b), the governor shall, at the
1033 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
1034 board members are staggered so that approximately half of the board is appointed every two
1035 years.
1036 (6) When a vacancy occurs in the membership for any reason, the replacement shall be
1037 appointed for the unexpired term.
1038 (7) Each member holds office until the expiration of the member's term, and until a
1039 successor is appointed, but not for more than 90 days after the expiration of the term.
1040 (8) The board shall elect annually a chair and a vice chair from its members.
1041 (9) (a) The board shall meet at least quarterly.
1042 (b) Special meetings may be called by the chair upon his own initiative, upon the
1043 request of the executive secretary, or upon the request of three members of the board.
1044 (c) Reasonable notice shall be given each member of the board prior to any meeting.
1045 (10) Six members constitute a quorum at any meeting and the action of the majority of
1046 the members present is the action of the board.
1047 (11) (a) (i) [Members] A member who [are] is not a government [employees] employee
1048 shall receive no compensation or benefits for [their] the member's services, but may receive per
1049 diem and expenses incurred in the performance of the member's official duties at the rates
1050 established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .

1051 (ii) [Members] A member may decline to receive per diem and expenses for [their] the
1052 member's service.
1053 (b) (i) [State] A state government officer and employee [members] member who [do]
1054 does not receive salary, per diem, or expenses from [their] the agency the member represents
1055 for [their] the member's service may receive per diem and expenses incurred in the
1056 performance of [their] the member's official duties from the board at the rates established by
1057 the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
1058 (ii) [State] A state government officer and employee [members] member may decline
1059 to receive per diem and expenses for [their] the member's service.
1060 (c) (i) [Local] A local government [members] member who [do] does not receive
1061 salary, per diem, or expenses from the entity that [they represent] the member represents for
1062 [their] the member's service may receive per diem and expenses incurred in the performance of
1063 [their] the member's official duties at the rates established by the Division of Finance under
1064 Sections 63A-3-106 and 63A-3-107 .
1065 (ii) [Local] A local government [members] member may decline to receive per diem
1066 and expenses for [their] the member's service.
1067 Section 18. Section 19-5-103 is amended to read:
1068 19-5-103. Water Quality Board -- Members of board -- Appointment -- Terms --
1069 Organization -- Meetings -- Per diem and expenses.
1070 (1) Committee members currently serving on the Water Pollution Control Committee
1071 created under [Chapter 126,] Laws of Utah 1981, Chapter 126, shall serve on the board
1072 throughout the terms for which they were appointed.
1073 (2) The board comprises the executive director and ten members appointed by the
1074 governor with the consent of the Senate.
1075 (3) No more than five of the appointed members may be from the same political party.
1076 (4) The appointed members, insofar as practicable, shall include the following:
1077 (a) one member representing the mineral industries;
1078 (b) one member representing the food processing industries;
1079 (c) one member representing other manufacturing industries;
1080 (d) two members who are officials of municipal government or their representatives
1081 involved in the management or operation of wastewater treatment facilities;

1082 (e) one member representing agricultural and livestock interests;
1083 (f) one member representing fish, wildlife, and recreation interests;
1084 (g) one member representing improvement and service districts; and
1085 (h) two members at large, one of whom represents organized environmental interests,
1086 selected with due consideration of the areas of the state affected by water pollution and not
1087 representing other interests named in this Subsection (4).
1088 (5) When a vacancy occurs in the membership for any reason, the replacement shall be
1089 appointed for the unexpired term with the consent of the Senate.
1090 (6) (a) Except as required by Subsection (6)(b), [members] each member shall be
1091 appointed for [terms] a term of four years and [are] is eligible for reappointment.
1092 (b) Notwithstanding the requirements of Subsection (6)(a), the governor shall, at the
1093 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
1094 board members are staggered so that approximately half of the board is appointed every two
1095 years.
1096 (7) [Members] A member shall hold office until the expiration of [their] the member's
1097 terms and until [their successors are] that member's successor is appointed, not to exceed 90
1098 days after the formal expiration of [their terms] the member's term.
1099 (8) The board shall:
1100 (a) organize and annually select one of its members as chair and one of its members as
1101 vice chair;
1102 (b) hold at least four regular meetings each calendar year; and
1103 (c) keep minutes of its proceedings which shall be open to the public for inspection.
1104 (9) Special meetings may be called by the chair and must be called by him upon the
1105 request of three or more members of the board.
1106 (10) Each member of the board and the executive secretary shall be notified of the time
1107 and place of each meeting.
1108 (11) Six members of the board constitute a quorum for the transaction of business, and
1109 the action of a majority of members present is the action of the board.
1110 (12) (a) [Members] A member shall receive no compensation or benefits for [their] the
1111 member's services, but may receive per diem and expenses incurred in the performance of the
1112 member's official duties at the rates established by the Division of Finance under Sections

1113 63A-3-106 and 63A-3-107 .
1114 (b) [Members] A member may decline to receive per diem and expenses for [their] the
1115 member's service.
1116 (c) [Local] A local government [members] member who [do] does not receive salary,
1117 per diem, or expenses from the entity that [they represent] the member represents for [their] the
1118 member's service may receive per diem and expenses incurred in the performance of [their] the
1119 member's official duties at the rates established by the Division of Finance under Sections
1120 63A-3-106 and 63A-3-107 .
1121 (d) [Local] A local government [members] member may decline to receive per diem
1122 and expenses for [their] the member's service.
1123 Section 19. Section 19-6-108.3 is amended to read:
1124 19-6-108.3. Executive secretary to issue written assurances, make determinations,
1125 and partition operation plans -- Board to make rules.
1126 (1) Based upon risk to human health or the environment from potential exposure to
1127 hazardous waste, the executive secretary may:
1128 (a) even if corrective action is incomplete, issue an enforceable written assurance to a
1129 person acquiring an interest in real property covered by an operation plan that the person to
1130 whom the assurance is issued:
1131 (i) is not a permittee under the operation plan; and
1132 (ii) will not be subject to an enforcement action under this part for contamination that
1133 exists or for violations under this part that occurred before the person acquired the interest in
1134 the real property covered by the operation plan;
1135 (b) determine that corrective action to the real property covered by the operation plan
1136 is:
1137 (i) complete;
1138 (ii) incomplete;
1139 (iii) unnecessary with an environmental covenant; or
1140 (iv) unnecessary without an environmental covenant; and
1141 (c) partition from an operation plan a portion of real property subject to the operation
1142 plan after determining that corrective action for that portion of real property is:
1143 (i) complete;

1144 (ii) unnecessary with an environmental covenant; or
1145 (iii) unnecessary without an environmental covenant.
1146 (2) If the executive secretary determines that an environmental covenant is necessary
1147 under Subsection (1)(b) or (c), the executive secretary shall require that the real property be
1148 subject to an environmental covenant according to Title 57, Chapter 25, Uniform
1149 Environmental Covenants Act.
1150 (3) An assurance issued under Subsection (1) protects the person to whom the
1151 assurance is issued from any cost recovery and contribution action under state law.
1152 (4) By following the procedures and requirements of Title 63, Chapter [46b,] 46a, Utah
1153 Administrative [Procedures] Rulemaking Act, the board may adopt rules to administer this
1154 section.
1155 Section 20. Section 31A-22-605.5 is amended to read:
1156 31A-22-605.5. Application.
1157 (1) For purposes of this section "insurance mandate":
1158 (a) means a mandatory obligation with respect to coverage, benefits, or the number or
1159 types of providers imposed on policies of accident and health insurance; and
1160 (b) does not mean an administrative rule imposing a mandatory obligation with respect
1161 to coverage, benefits, or providers unless that mandatory obligation was specifically imposed
1162 on policies of accident and health insurance by statute.
1163 (2) (a) Notwithstanding the provisions of Subsection 31A-1-103 (3)(f), any law
1164 imposed under this title that becomes effective after January 1, 2002, which provides for an
1165 insurance mandate for policies of accident and health insurance shall also apply to health
1166 coverage offered to the state employees' risk pool under Subsection 49-20-202 (1)(a).
1167 (b) If health coverage offered to the state employees' risk pool under Subsection
1168 49-20-202 (1)(a) offers coverage in the same manner and to the same extent as the coverage
1169 required by the insurance mandate imposed under this title or coverage that is greater than the
1170 insurance mandate imposed under this title, the coverage offered to state employees under
1171 Subsection 49-20-202 (1)(a) will be considered in compliance with the insurance mandate.
1172 (c) The program regulated under Subsection 49-20-202 (1)(a) shall report to the
1173 Retirement and Independent Entities Committee created under Section [ 63E-1-102 ] 63E-1-201
1174 by November 30 of each year in which a mandate is imposed under the provisions of this

1175 section. The report shall include the costs and benefits of the particular mandatory obligation.
1176 Section 21. Section 31A-22-723 is amended to read:
1177 31A-22-723. Group and blanket conversion coverage.
1178 (1) Notwithstanding Subsection 31A-1-103 (3)(f), and except as provided in Subsection
1179 (3), all policies of accident and health insurance offered on a group basis under this title, or
1180 Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act, shall provide that
1181 a person whose insurance under the group policy has been terminated is entitled to choose a
1182 converted individual policy of similar accident and health insurance.
1183 (2) A person who has lost group coverage may elect conversion coverage with the
1184 insurer that provided prior group coverage if the person:
1185 (a) has been continuously covered for a period of six months by the group policy or the
1186 group's preceding policies immediately prior to termination;
1187 (b) has exhausted either Utah mini-COBRA coverage as required in Section
1188 31A-22-722 or federal COBRA coverage;
1189 (c) has not acquired or is not covered under any other group coverage that covers all
1190 preexisting conditions, including maternity, if the coverage exists; and
1191 (d) resides in the insurer's service area.
1192 (3) This section does not apply if the person's prior group coverage:
1193 (a) is a stand alone policy that only provides one of the following:
1194 (i) catastrophic benefits;
1195 (ii) aggregate stop loss benefits;
1196 (iii) specific stop loss benefits;
1197 (iv) benefits for specific diseases;
1198 (v) accidental injuries only;
1199 (vi) dental; or
1200 (vii) vision;
1201 (b) is an income replacement policy;
1202 (c) was terminated because the insured:
1203 (i) failed to pay any required individual contribution;
1204 (ii) performed an act or practice that constitutes fraud in connection with the coverage;
1205 or

1206 (iii) made intentional misrepresentation of material fact under the terms of coverage; or
1207 (d) was terminated pursuant to Subsection 31A-8-402.3 (2)(a), 31A-22-721 (2)(a), or
1208 31A-30-107 (2)(a).
1209 (4) (a) The employer shall provide written notification of the right to an individual
1210 conversion policy within 30 days of the insured's termination of coverage to:
1211 (i) the terminated insured;
1212 (ii) the ex-spouse; or
1213 (iii) in the case of the death of the insured:
1214 (A) the surviving spouse; and
1215 (B) the guardian of any dependents, if different from a surviving spouse.
1216 (b) The notification required by Subsection (4)(a) shall:
1217 (i) be sent by first class mail;
1218 (ii) contain the name, address, and telephone number of the insurer that will provide
1219 the conversion coverage; and
1220 (iii) be sent to the insured's last-known address as shown on the records of the
1221 employer of:
1222 (A) the insured;
1223 (B) the ex-spouse; and
1224 (C) if the policy terminates by reason of the death of the insured to:
1225 (I) the surviving spouse; and
1226 (II) the guardian of any dependents, if different from a surviving spouse.
1227 (5) (a) An insurer is not required to issue a converted policy which provides benefits in
1228 excess of those provided under the group policy from which conversion is made.
1229 (b) Except as provided in Subsection (5)(c), if the conversion is made from a health
1230 benefit plan, the employee or member must be offered at least the basic benefit plan as
1231 provided in Subsection 31A-22-613.5 (2)[(a)].
1232 (c) If the benefit levels required under Subsection (5)(b) exceed the benefit levels
1233 provided under the group policy, the conversion policy may offer benefits which are
1234 substantially similar to those provided under the group policy.
1235 (6) Written application for the converted policy shall be made and the first premium
1236 paid to the insurer no later than 60 days after termination of the group accident and health

1237 insurance.
1238 (7) The converted policy shall be issued without evidence of insurability.
1239 (8) (a) The initial premium for the converted policy for the first 12 months and
1240 subsequent renewal premiums shall be determined in accordance with premium rates
1241 applicable to age, class of risk of the person, and the type and amount of insurance provided.
1242 (b) The initial premium for the first 12 months may not be raised based on pregnancy
1243 of a covered insured.
1244 (c) The premium for converted policies shall be payable monthly or quarterly as
1245 required by the insurer for the policy form and plan selected, unless another mode or premium
1246 payment is mutually agreed upon.
1247 (9) The converted policy becomes effective at the time the insurance under the group
1248 policy terminates.
1249 (10) (a) A newly issued converted policy covers the employee or the member and must
1250 also cover all dependents covered by the group policy at the date of termination of the group
1251 coverage.
1252 (b) The only dependents that may be added after the policy has been issued are children
1253 and dependents as required by Section 31A-22-610 and Subsections 31A-22-610.5 (6) and (7).
1254 (c) At the option of the insurer, a separate converted policy may be issued to cover any
1255 dependent.
1256 (11) (a) To the extent the group policy provided maternity benefits, the conversion
1257 policy shall provide maternity benefits equal to the lesser of the maternity benefits of the group
1258 policy or the conversion policy until termination of a pregnancy that exists on the date of
1259 conversion if one of the following is pregnant on the date of the conversion:
1260 (i) the insured;
1261 (ii) a spouse of the insured; or
1262 (iii) a dependent of the insured.
1263 (b) The requirements of this Subsection (11) do not apply to a pregnancy that occurs
1264 after the date of conversion.
1265 (12) Except as provided in this Subsection (12), a converted policy is renewable with
1266 respect to all individuals or dependents at the option of the insured. An insured may be
1267 terminated from a converted policy for the following reasons:

1268 (a) a dependent is no longer eligible under the policy;
1269 (b) for a network plan, if the individual no longer lives, resides, or works in:
1270 (i) the insured's service area; or
1271 (ii) the area for which the covered carrier is authorized to do business; or
1272 (c) the individual fails to pay premiums or contributions in accordance with the terms
1273 of the converted policy, including any timeliness requirements;
1274 (d) the individual performs an act or practice that constitutes fraud in connection with
1275 the coverage;
1276 (e) the individual makes an intentional misrepresentation of material fact under the
1277 terms of the coverage; or
1278 (f) coverage is terminated uniformly without regard to any health status-related factor
1279 relating to any covered individual.
1280 (13) Conditions pertaining to health may not be used as a basis for classification under
1281 this section.
1282 Section 22. Section 31A-28-114 is amended to read:
1283 31A-28-114. Miscellaneous provisions.
1284 (1) Nothing in this part shall be construed to reduce the liability for unpaid assessments
1285 of the insureds of an impaired or insolvent insurer operating under a plan with assessment
1286 liability.
1287 (2) (a) Records shall be kept of all meetings of the board of directors to discuss the
1288 activities of the association in carrying out [it] its powers and duties under Section
1289 31A-28-108 .
1290 (b) Records of the association with respect to an impaired or insolvent insurer may not
1291 be disclosed before the earlier of:
1292 (i) the termination of a liquidation, rehabilitation, or conservation proceeding involving
1293 the impaired or insolvent insurer;
1294 (ii) the termination of the impairment or insolvency of the insurer; or
1295 (iii) upon the order of a court of competent jurisdiction.
1296 (c) Nothing in this Subsection (2) shall limit the duty of the association to render a
1297 report of its activities under Section 31A-28-115 .
1298 (3) (a) For the purpose of carrying out its obligations under this part, the association

1299 shall be considered to be a creditor of an impaired or insolvent insurer to the extent of assets
1300 attributable to covered policies reduced by any amounts to which the association is entitled as
1301 subrogee pursuant to Subsection 31A-28-108 (14).
1302 (b) Assets of the impaired or insolvent insurer attributable to covered policies shall be
1303 used to continue all covered policies and pay all contractual obligations of the impaired or
1304 insolvent insurer as required by this part.
1305 (c) As used in this Subsection (3), assets attributable to covered policies are that
1306 proportion of the assets which the reserves that should have been established for covered
1307 policies bear to the reserves that should have been established for all policies of insurance
1308 written by the impaired or insolvent insurer.
1309 (4) (a) As a creditor of the impaired or insolvent insurer under Subsection (3) and
1310 consistent with Section 31A-27a-701 , the association and any other similar association are
1311 entitled to receive a disbursement of assets out of the marshaled assets, from time to time as the
1312 assets become available to reimburse the association and any other similar association.
1313 (b) If, within 120 days of a final determination of insolvency of an insurer by the
1314 receivership court, the liquidator has not made an application to the court for the approval of a
1315 proposal to disburse assets out of marshaled assets to all guaranty associations having
1316 obligations because of the insolvency, the association is entitled to make application to the
1317 receivership court for approval of the association's proposal for disbursement of these assets.
1318 (5) (a) Prior to the termination of any liquidation, rehabilitation, or conservation
1319 proceeding, the court may take into consideration the contributions of the respective parties,
1320 including:
1321 (i) the association;
1322 (ii) the shareholders;
1323 (iii) policyowners of the insolvent insurer; and
1324 (iv) any other party with a bona fide interest in making an equitable distribution of the
1325 ownership rights of the insolvent insurer.
1326 (b) In making a determination under Subsection (5)(a), the court shall consider the
1327 welfare of the policyholders of the continuing or successor insurer.
1328 (c) A distribution to any stockholder of an impaired or insolvent insurer may not be
1329 made until and unless the total amount of valid claims of the association with interest has been

1330 fully recovered by the association for funds expended in carrying out its powers and duties
1331 under Section 31A-28-108 with respect to the insurer.
1332 (6) (a) If an order for liquidation or rehabilitation of an insurer domiciled in this state
1333 has been entered, the receiver appointed under the order shall have a right to recover on behalf
1334 of the insurer, from any affiliate that controlled the insurer, the amount of distributions, other
1335 than stock dividends paid by the insurer on its capital stock, made at any time during the five
1336 years preceding the petition for liquidation or rehabilitation subject to the limitations of
1337 Subsections (6)(b) through (d).
1338 (b) A distribution described in Subsection (6)(a) may not be recovered if the insurer
1339 shows that:
1340 (i) when paid the distribution was lawful and reasonable; and
1341 (ii) the insurer did not know and could not reasonably have known that the distribution
1342 might adversely affect the ability of the insurer to fulfill its contractual obligations.
1343 (c) (i) A person that was an affiliate that controlled the insurer at the time the
1344 distributions were paid shall be liable up to the amount of distributions received.
1345 (ii) A person that was an affiliate that controlled the insurer at the time the distributions
1346 were declared shall be liable up to the amount of distributions that would have been received if
1347 they had been paid immediately.
1348 (iii) If two or more persons are liable with respect to the same distributions, they shall
1349 be jointly and severally liable.
1350 (d) The maximum amount recoverable under this Subsection (6) shall be the amount
1351 needed in excess of all other available assets of the insolvent insurer to pay the contractual
1352 obligations of the insolvent insurer.
1353 (e) If any person liable under Subsection (6)(c) is insolvent, all of its affiliates that
1354 controlled it at the time the distribution was paid shall be jointly and severally liable for any
1355 resulting deficiency in the amount recovered from the insolvent affiliate.
1356 Section 23. Section 31A-28-222 is amended to read:
1357 31A-28-222. Application of amendments.
1358 (1) The amendments in [Chapter 363,] Laws of Utah 2001, Chapter 363, shall become
1359 effective on April 30, 2001 and apply to the association's obligations under policies of
1360 insolvent insurers as they exist on or after April 30, 2001.

1361 (2) Notwithstanding Subsection (1), the amendments to Subsections 31A-28-203 (3)
1362 and 31A-28-207 (1)(a) in [Chapter 363,] Laws of Utah 2001, Chapter 363, that add coverage for
1363 unearned premium claims shall apply only to insurers that become insolvent after April 30,
1364 2001.
1365 Section 24. Section 34A-2-103 is amended to read:
1366 34A-2-103. Employers enumerated and defined -- Regularly employed --
1367 Statutory employers.
1368 (1) (a) The state, and each county, city, town, and school district in the state are
1369 considered employers under this chapter and Chapter 3, Utah Occupational Disease Act.
1370 (b) For the purposes of the exclusive remedy in this chapter and Chapter 3, Utah
1371 Occupational Disease Act prescribed in Sections 34A-2-105 and 34A-3-102 , the state is
1372 considered to be a single employer and includes any office, department, agency, authority,
1373 commission, board, institution, hospital, college, university, or other instrumentality of the
1374 state.
1375 (2) (a) Except as provided in Subsection (4), each person, including each public utility
1376 and each independent contractor, who regularly employs one or more workers or operatives in
1377 the same business, or in or about the same establishment, under any contract of hire, express or
1378 implied, oral or written, is considered an employer under this chapter and Chapter 3, Utah
1379 Occupational Disease Act.
1380 (b) As used in this Subsection (2):
1381 (i) "Independent contractor" means any person engaged in the performance of any work
1382 for another who, while so engaged, is:
1383 (A) independent of the employer in all that pertains to the execution of the work;
1384 (B) not subject to the routine rule or control of the employer;
1385 (C) engaged only in the performance of a definite job or piece of work; and
1386 (D) subordinate to the employer only in effecting a result in accordance with the
1387 employer's design.
1388 (ii) "Regularly" includes all employments in the usual course of the trade, business,
1389 profession, or occupation of the employer, whether continuous throughout the year or for only a
1390 portion of the year.
1391 (3) (a) The client company in an employee leasing arrangement under Title 58, Chapter

1392 59, Professional Employer Organization Registration Act, is considered the employer of leased
1393 employees and shall secure workers' compensation benefits for them by complying with
1394 Subsection 34A-2-201 (1) or (2) and commission rules.
1395 (b) An insurance carrier may underwrite workers' compensation secured in accordance
1396 with Subsection (3)(a) showing the leasing company as the named insured and each client
1397 company as an additional insured by means of individual endorsements.
1398 (c) Endorsements shall be filed with the division as directed by commission rule.
1399 (d) The division shall promptly inform the Division of Occupation and Professional
1400 Licensing within the Department of Commerce if the division has reason to believe that an
1401 employee leasing company is not in compliance with Subsection 34A-2-201 (1) or (2) and
1402 commission rules.
1403 (4) A domestic employer who does not employ one employee or more than one
1404 employee at least 40 hours per week is not considered an employer under this chapter and
1405 Chapter 3, Utah Occupational Disease Act.
1406 (5) (a) As used in this Subsection (5):
1407 (i) (A) "agricultural employer" means a person who employs agricultural labor as
1408 defined in Subsections 35A-4-206 (1) and (2) and does not include employment as provided in
1409 Subsection 35A-4-206 (3); and
1410 (B) notwithstanding Subsection (5)(a)(i)(A), only for purposes of determining who is a
1411 member of the employer's immediate family under Subsection (5)(a)(ii), if the agricultural
1412 employer is a corporation, partnership, or other business entity, "agricultural employer" means
1413 an officer, director, or partner of the business entity;
1414 (ii) "employer's immediate family" means:
1415 (A) an agricultural employer's:
1416 (I) spouse;
1417 (II) grandparent;
1418 (III) parent;
1419 (IV) sibling;
1420 (V) child;
1421 (VI) grandchild;
1422 (VII) nephew; or

1423 (VIII) niece;
1424 (B) a spouse of any person provided in Subsection (5)(a)(ii)(A)(II) through (VIII); or
1425 (C) an individual who is similar to those listed in Subsections (5)(a)(ii)(A) or (B) as
1426 defined by rules of the commission; and
1427 (iii) "nonimmediate family" means a person who is not a member of the employer's
1428 immediate family.
1429 (b) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an
1430 agricultural employer is not considered an employer of a member of the employer's immediate
1431 family.
1432 (c) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an
1433 agricultural employer is not considered an employer of a nonimmediate family employee if:
1434 (i) for the previous calendar year the agricultural employer's total annual payroll for all
1435 nonimmediate family employees was less than $8,000; or
1436 (ii) (A) for the previous calendar year the agricultural employer's total annual payroll
1437 for all nonimmediate family employees was equal to or greater than $8,000 but less than
1438 $50,000; and
1439 (B) the agricultural employer maintains insurance that covers job-related injuries of the
1440 employer's nonimmediate family employees in at least the following amounts:
1441 (I) $300,000 liability insurance, as defined in Section 31A-1-301 ; and
1442 (II) $5,000 for health care benefits similar to benefits under health care insurance as
1443 defined in Section 31A-1-301 .
1444 (d) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an
1445 agricultural employer is considered an employer of a nonimmediate family employee if:
1446 (i) for the previous calendar year the agricultural employer's total annual payroll for all
1447 nonimmediate family employees is equal to or greater than $50,000; or
1448 (ii) (A) for the previous year the agricultural employer's total payroll for nonimmediate
1449 family employees was equal to or exceeds $8,000 but is less than $50,000; and
1450 (B) the agricultural employer fails to maintain the insurance required under Subsection
1451 (5)(c)(ii)(B).
1452 (6) An employer of agricultural laborers or domestic servants who is not considered an
1453 employer under this chapter and Chapter 3, Utah Occupational Disease Act, may come under

1454 this chapter and Chapter 3, Utah Occupational Disease Act, by complying with:
1455 (a) this chapter and Chapter 3, Utah Occupational Disease Act; and
1456 (b) the rules of the commission.
1457 (7) (a) If any person who is an employer procures any work to be done wholly or in
1458 part for the employer by a contractor over whose work the employer retains supervision or
1459 control, and this work is a part or process in the trade or business of the employer, the
1460 contractor, all persons employed by the contractor, all subcontractors under the contractor, and
1461 all persons employed by any of these subcontractors, are considered employees of the original
1462 employer for the purposes of this chapter and Chapter 3, Utah Occupational Disease Act.
1463 (b) Any person who is engaged in constructing, improving, repairing, or remodeling a
1464 residence that the person owns or is in the process of acquiring as the person's personal
1465 residence may not be considered an employee or employer solely by operation of Subsection
1466 (7)(a).
1467 (c) A partner in a partnership or an owner of a sole proprietorship is not considered an
1468 employee under Subsection (7)(a) if the employer who procures work to be done by the
1469 partnership or sole proprietorship obtains and relies on either:
1470 (i) a valid certification of the partnership's or sole proprietorship's compliance with
1471 Section 34A-2-201 indicating that the partnership or sole proprietorship secured the payment of
1472 workers' compensation benefits pursuant to Section 34A-2-201 ; or
1473 (ii) if a partnership or sole proprietorship with no employees other than a partner of the
1474 partnership or owner of the sole proprietorship, a workers' compensation policy issued by an
1475 insurer pursuant to Subsection 31A-21-104 [(8)](9) stating that:
1476 (A) the partnership or sole proprietorship is customarily engaged in an independently
1477 established trade, occupation, profession, or business; and
1478 (B) the partner or owner personally waives the partner's or owner's entitlement to the
1479 benefits of this chapter and Chapter 3, Utah Occupational Disease Act, in the operation of the
1480 partnership or sole proprietorship.
1481 (d) A director or officer of a corporation is not considered an employee under
1482 Subsection (7)(a) if the director or officer is excluded from coverage under Subsection
1483 34A-2-104 (4).
1484 (e) A contractor or subcontractor is not an employee of the employer under Subsection

1485 (7)(a), if the employer who procures work to be done by the contractor or subcontractor obtains
1486 and relies on either:
1487 (i) a valid certification of the contractor's or subcontractor's compliance with Section
1488 34A-2-201 ; or
1489 (ii) if a partnership, corporation, or sole proprietorship with no employees other than a
1490 partner of the partnership, officer of the corporation, or owner of the sole proprietorship, a
1491 workers' compensation policy issued by an insurer pursuant to Subsection 31A-21-104 [(8)](9)
1492 stating that:
1493 (A) the partnership, corporation, or sole proprietorship is customarily engaged in an
1494 independently established trade, occupation, profession, or business; and
1495 (B) the partner, corporate officer, or owner personally waives the partner's, corporate
1496 officer's, or owner's entitlement to the benefits of this chapter and Chapter 3, Utah
1497 Occupational Disease Act, in the operation of the partnership's, corporation's, or sole
1498 proprietorship's enterprise under a contract of hire for services.
1499 (f) (i) For purposes of this Subsection (7)(f), "eligible employer" means a person who:
1500 (A) is an employer; and
1501 (B) procures work to be done wholly or in part for the employer by a contractor,
1502 including:
1503 (I) all persons employed by the contractor;
1504 (II) all subcontractors under the contractor; and
1505 (III) all persons employed by any of these subcontractors.
1506 (ii) Notwithstanding the other provisions in this Subsection (7), if the conditions of
1507 Subsection (7)(f)(iii) are met, an eligible employer is considered an employer for purposes of
1508 Section 34A-2-105 of the contractor, subcontractor, and all persons employed by the contractor
1509 or subcontractor described in Subsection (7)(f)(i)(B).
1510 (iii) Subsection (7)(f)(ii) applies if the eligible employer:
1511 (A) under Subsection (7)(a) is liable for and pays workers' compensation benefits as an
1512 original employer under Subsection (7)(a) because the contractor or subcontractor fails to
1513 comply with Section 34A-2-201 ;
1514 (B) (I) secures the payment of workers' compensation benefits for the contractor or
1515 subcontractor pursuant to Section 34A-2-201 ;

1516 (II) procures work to be done that is part or process of the trade or business of the
1517 eligible employer; and
1518 (III) does the following with regard to a written workplace accident and injury
1519 reduction program that meets the requirements of Subsection 34A-2-111 (3)(d):
1520 (Aa) adopts the workplace accident and injury reduction program;
1521 (Bb) posts the workplace accident and injury reduction program at the work site at
1522 which the eligible employer procures work; and
1523 (Cc) enforces the workplace accident and injury reduction program according to the
1524 terms of the workplace accident and injury reduction program; or
1525 (C) (I) obtains and relies on:
1526 (Aa) a valid certification described in Subsection (7)(c)(i) or (7)(e)(i);
1527 (Bb) a workers' compensation policy described in Subsection (7)(c)(ii) or (7)(e)(ii); or
1528 (Cc) proof that a director or officer is excluded from coverage under Subsection
1529 34A-2-104 (4);
1530 (II) is liable under Subsection (7)(a) for the payment of workers' compensation benefits
1531 if the contractor or subcontractor fails to comply with Section 34A-2-201 ;
1532 (III) procures work to be done that is part or process in the trade or business of the
1533 eligible employer; and
1534 (IV) does the following with regard to a written workplace accident and injury
1535 reduction program that meets the requirements of Subsection 34A-2-111 (3)(d):
1536 (Aa) adopts the workplace accident and injury reduction program;