H.B. 263

1

TECHNICAL CROSS REFERENCE REVISIONS
2 2010 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Johnny Anderson
5 Senate Sponsor: Benjamin M. McAdams
6
7 LONG TITLE
8 General Description:
9 This bill modifies parts of the Utah Code to make technical corrections including
10 alphabetizing definitions, updating cross references, and correcting numbering.
11 Highlighted Provisions:
12 This bill:
13 . modifies parts of the Utah Code to make technical corrections including
14 alphabetizing definitions, updating cross references, and correcting numbering.
15 Monies Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 None
19 Utah Code Sections Affected:
20 AMENDS:
21 3-1-2, Utah Code Annotated 1953
22 3-1-4, Utah Code Annotated 1953
23 3-1-8, Utah Code Annotated 1953
24 3-1-19, Utah Code Annotated 1953
25 3-1-21, as last amended by Laws of Utah 1984, Chapter 66
26 3-1-45, as enacted by Laws of Utah 1994, Chapter 204
27 4-1-8, as last amended by Laws of Utah 2000, Chapter 18

28 4-8-4, as enacted by Laws of Utah 1979, Chapter 2
29 4-16-2, as last amended by Laws of Utah 1997, Chapter 81
30 4-16-7, as last amended by Laws of Utah 1997, Chapter 81
31 4-17-3.5, as last amended by Laws of Utah 1997, Chapter 82
32 4-19-2, as last amended by Laws of Utah 2009, Chapter 260
33 4-23-4, as last amended by Laws of Utah 1996, Chapter 243
34 4-24-4, as last amended by Laws of Utah 1996, Chapter 243
35 4-24-10, as last amended by Laws of Utah 1997, Chapter 302
36 4-32-4, as last amended by Laws of Utah 1997, Chapter 302
37 4-32-7, as last amended by Laws of Utah 2008, Chapter 382
38 4-38-8, as last amended by Laws of Utah 1993, Chapter 64
39 7-2-7, as last amended by Laws of Utah 2000, Chapter 260
40 7-7-15, as last amended by Laws of Utah 1989, Chapter 267
41 7-9-30, as last amended by Laws of Utah 1990, Chapter 93
42 7-9-43, as last amended by Laws of Utah 1996, Chapter 243
43 7-9-53, as last amended by Laws of Utah 2003, Chapter 327
44 7-15-2, as last amended by Laws of Utah 2007, Chapter 87
45 8-4-2, as last amended by Laws of Utah 2000, Chapter 167
46 9-3-410, as last amended by Laws of Utah 2008, Chapter 382
47 9-4-202, as last amended by Laws of Utah 2008, Chapter 382
48 9-6-305, as last amended by Laws of Utah 1996, Chapter 243
49 9-6-505, as renumbered and amended by Laws of Utah 1992, Chapter 241
50 9-7-204, as last amended by Laws of Utah 1996, Chapters 194 and 243
51 9-8-705, as enacted by Laws of Utah 1991, Chapter 121
52 11-32-3.5, as enacted by Laws of Utah 1995, Chapter 235
53 11-32-15, as enacted by Laws of Utah 1987, Chapter 143
54 13-11-21, as enacted by Laws of Utah 1973, Chapter 188
55 13-28-2, as enacted by Laws of Utah 1995, Chapter 196
56 16-10a-705, as enacted by Laws of Utah 1992, Chapter 277
57 16-10a-906, as enacted by Laws of Utah 1992, Chapter 277
58 16-10a-1325, as enacted by Laws of Utah 1992, Chapter 277

59 17-36-5, as last amended by Laws of Utah 1996, Chapters 212 and 243
60 19-2-109.2, as last amended by Laws of Utah 1996, Chapter 243
61 19-2-113, as renumbered and amended by Laws of Utah 1991, Chapter 112
62 19-5-115, as last amended by Laws of Utah 1998, Chapter 271
63 19-6-108.5, as enacted by Laws of Utah 1992, Chapter 282
64 19-6-316, as last amended by Laws of Utah 1995, Chapter 324
65 19-6-318, as last amended by Laws of Utah 1995, Chapter 324
66 19-6-325, as enacted by Laws of Utah 1991, Chapter 194
67 19-6-402, as last amended by Laws of Utah 2005, Chapter 200
68 19-6-703, as last amended by Laws of Utah 2000, Chapter 1
69 19-6-706, as enacted by Laws of Utah 1993, Chapter 283
70 20A-1-703, as last amended by Laws of Utah 1997, Chapter 296
71 20A-3-307, as enacted by Laws of Utah 1993, Chapter 1
72 20A-7-501, as renumbered and amended by Laws of Utah 1994, Chapter 272
73 23-14-2.6, as last amended by Laws of Utah 1997, Chapter 276
74 23-22-2, as last amended by Laws of Utah 1992, Chapter 86
75 26-18-102, as last amended by Laws of Utah 1996, Chapter 243
76 26A-1-111, as last amended by Laws of Utah 2002, Chapter 249
77 31A-5-217.5, as enacted by Laws of Utah 1992, Chapter 230
78 31A-8-103, as last amended by Laws of Utah 2004, Chapters 2 and 90
79 31A-15-202, as enacted by Laws of Utah 1992, Chapter 258
80 31A-16-106, as repealed and reenacted by Laws of Utah 1992, Chapter 258
81 31A-17-506, as last amended by Laws of Utah 2002, Chapter 308
82 36-20-2, as enacted by Laws of Utah 1993, Chapter 282
83 39-1-1, as last amended by Laws of Utah 1989, Chapter 15
84 40-6-6.5, as enacted by Laws of Utah 1992, Chapter 34
85 40-6-9, as last amended by Laws of Utah 1993, Chapter 151
86 40-10-3, as last amended by Laws of Utah 1997, Chapter 99
87 40-10-18, as last amended by Laws of Utah 1997, Chapter 49
88 41-1a-510, as enacted by Laws of Utah 1992, Chapter 1 and last amended by Laws of
89 Utah 1992, Chapter 218

90 41-1a-1001, as last amended by Laws of Utah 1994, Chapter 184
91 41-1a-1002, as last amended by Laws of Utah 1994, Chapter 184
92 41-3-106, as last amended by Laws of Utah 1996, Chapter 243
93 48-2a-402, as last amended by Laws of Utah 1991, Chapter 189
94 52-3-1, as last amended by Laws of Utah 1988, Chapter 25
95 53-3-213, as renumbered and amended by Laws of Utah 1993, Chapter 234
96 53-3-225, as last amended by Laws of Utah 1993, Second Special Session, Chapter 5
97 53-3-416, as renumbered and amended by Laws of Utah 1993, Chapter 234
98 53-3-908, as last amended by Laws of Utah 1996, Chapter 243
99 53-5-703, as last amended by Laws of Utah 1997, Chapters 10 and 280
100 53-6-108, as renumbered and amended by Laws of Utah 1993, Chapter 234
101 53-6-302, as enacted by Laws of Utah 1995, Chapter 134
102 53-7-102, as renumbered and amended by Laws of Utah 1993, Chapter 234
103 53-7-222, as last amended by Laws of Utah 1997, Chapter 82
104 53-7-309, as renumbered and amended by Laws of Utah 1993, Chapter 234
105 53-7-315, as renumbered and amended by Laws of Utah 1993, Chapter 234
106 53-10-211, as renumbered and amended by Laws of Utah 1998, Chapter 263
107 53A-26a-305, as enacted by Laws of Utah 1994, Chapter 306
108 53B-12-104, as enacted by Laws of Utah 1987, Chapter 167
109 53B-21-102, as last amended by Laws of Utah 1997, Chapter 58
110 54-7-13.6, as enacted by Laws of Utah 2009, Chapter 319
111 54-8b-13, as enacted by Laws of Utah 1990, Chapter 141
112 56-1-18.5, as last amended by Laws of Utah 1996, Chapter 122
113 57-11-7, as last amended by Laws of Utah 1995, Chapter 180
114 58-1-201, as last amended by Laws of Utah 1997, Chapter 10
115 58-41-4, as last amended by Laws of Utah 1993, Chapter 297
116 58-54-3, as last amended by Laws of Utah 1996, Chapters 232 and 243
117 58-57-7, as last amended by Laws of Utah 2006, Chapter 106
118 58-73-401, as last amended by Laws of Utah 1996, Chapter 175 and renumbered and
119 amended by Laws of Utah 1996, Chapter 253
120 59-2-1114, as last amended by Laws of Utah 2000, Chapter 47

121 59-10-503, as renumbered and amended by Laws of Utah 1987, Chapter 2
122 59-10-517, as renumbered and amended by Laws of Utah 1987, Chapter 2
123 59-11-114, as renumbered and amended by Laws of Utah 1987, Chapter 2
124 61-1-10, as last amended by Laws of Utah 1991, Chapter 161
125 62A-3-206, as last amended by Laws of Utah 1993, Chapter 176
126 63A-3-203, as renumbered and amended by Laws of Utah 1993, Chapter 212
127 63A-4-103, as renumbered and amended by Laws of Utah 1993, Chapter 212
128 63A-5-302, as last amended by Laws of Utah 2008, Chapter 382
129 63J-1-602, as enacted by Laws of Utah 2009, Chapter 368
130 63M-9-301, as renumbered and amended by Laws of Utah 2008, Chapter 382
131 67-1-8.1, as last amended by Laws of Utah 1996, Chapter 243
132 67-19a-201, as last amended by Laws of Utah 1996, Chapters 194 and 243
133 67-21-3, as last amended by Laws of Utah 1992, Chapter 187
134 70A-2a-219, as enacted by Laws of Utah 1990, Chapter 197
135 70A-2a-529, as last amended by Laws of Utah 1993, Chapter 237
136 70A-3-206, as repealed and reenacted by Laws of Utah 1993, Chapter 237
137 70A-3-307, as repealed and reenacted by Laws of Utah 1993, Chapter 237
138 70A-3-310, as enacted by Laws of Utah 1993, Chapter 237
139 70A-3-502, as repealed and reenacted by Laws of Utah 1993, Chapter 237
140 70A-4a-507, as last amended by Laws of Utah 1993, Chapter 237
141 70A-8-106, as repealed and reenacted by Laws of Utah 1996, Chapter 204
142 70A-8-202, as repealed and reenacted by Laws of Utah 1996, Chapter 204
143 75-2-103, as repealed and reenacted by Laws of Utah 1998, Chapter 39
144 75-2-302, as repealed and reenacted by Laws of Utah 1998, Chapter 39
145 75-2-603, as repealed and reenacted by Laws of Utah 1998, Chapter 39
146 75-2-606, as repealed and reenacted by Laws of Utah 1998, Chapter 39
147 75-5-410, as last amended by Laws of Utah 1997, Chapter 161
148 76-2-402, as last amended by Laws of Utah 1994, Chapter 26
149 76-9-301.1, as enacted by Laws of Utah 1987, Chapter 22
150 76-10-920, as last amended by Laws of Utah 1995, Chapter 291
151 76-10-1219, as last amended by Laws of Utah 1984, Chapter 66

152 76-10-2101, as enacted by Laws of Utah 1992, Chapter 245
153 77-7-5, as last amended by Laws of Utah 2002, Chapter 35
154 77-23a-4, as last amended by Laws of Utah 1994, Chapter 12
155 77-23a-10, as last amended by Laws of Utah 1994, Chapter 201
156 78B-7-113, as renumbered and amended by Laws of Utah 2008, Chapter 3
157
158 Be it enacted by the Legislature of the state of Utah:
159 Section 1. Section 3-1-2 is amended to read:
160 3-1-2. Definitions.
161 As used in this act, unless the context or subject matter requires otherwise:
162 [(a)] (1) "Agricultural products" includes floricultural, horticultural, viticultural,
163 forestry, nut, seed, ground stock, dairy, livestock, poultry, bee and any and all farm products.
164 [(k)] (2) "Articles" means the articles of incorporation.
165 [(b)] (3) "Association" means a corporation organized under this act, or a similar
166 domestic corporation, or a foreign association or corporation if authorized to do business in this
167 state, organized under any general or special act as a cooperative association for the mutual
168 benefit of its members, as agricultural producers, and which confines its operation to purposes
169 authorized by this act and restricts the return on the stock or membership capital and the
170 amount of its business with nonmembers to the limits placed thereon by this act for
171 associations organized hereunder.
172 [(j)] (4) "Board" means the board of directors.
173 [(c)] (5) "Domestic associations" means an association or corporation formed under the
174 laws of this state.
175 [(d)] (6) "Foreign association" means an association or corporation not formed under
176 the laws of this state.
177 [(g)] (7) "Member" includes the holder of a membership of which there shall be but
178 one class, in an association without stock and the holder of common stock in an association
179 organized with stock.
180 [(i)] (8) "Person" includes an individual, a partnership, a corporation and an
181 association.
182 [(h)] (9) "Producer" means a person who produces agricultural products, or an

183 association of such persons.
184 [(e)] (10) (a) "This act" means the "Uniform Agricultural Cooperative Association
185 Act."
186 [(f)] (b) Associations shall be classified as and deemed to be nonprofit corporations,
187 inasmuch as their primary object is not to pay dividends on invested capital, but to render
188 service and provide means and facilities by or through which the producers of agricultural
189 products may receive a reasonable and fair return for their products.
190 Section 2. Section 3-1-4 is amended to read:
191 3-1-4. Purposes.
192 Such association may be organized for the purpose of engaging in any cooperative
193 activity for producers of agricultural products in connection with:
194 [(a)] (1) producing, assembling, marketing, buying or selling agricultural products, or
195 harvesting, preserving, drying, processing, manufacturing, blending, canning, packing, ginning,
196 grading, storing, warehousing, handling, shipping, or utilizing such products, or manufacturing
197 or marketing the by-products thereof;
198 [(b)] (2) seed and crop improvement, and soil conservation and rehabilitation;
199 [(c)] (3) manufacturing, buying or supplying to its members and others, machinery,
200 equipment, feed, fertilizer, coal, gasoline and other fuels, oils and other lubricants, seeds, and
201 all other agricultural and household supplies;
202 [(d)] (4) generating and distributing electrical energy and furnishing telephone service
203 to its members and others;
204 [(e)] (5) performing or furnishing business or educational services, on a co-operative
205 basis, for or to its members; or
206 [(f)] (6) financing any of the above enumerated activities.
207 Section 3. Section 3-1-8 is amended to read:
208 3-1-8. Bylaws.
209 The members of the association shall adopt bylaws not inconsistent with law or the
210 articles, and they may alter and amend the same from time to time. Bylaws may be adopted,
211 amended or repealed, at any regular meeting, or at any special meeting called for that purpose,
212 by a majority vote of the members voting thereon. The bylaws may provide for:
213 [(a)] (1) the time, place and manner of calling and conducting meetings of the

214 members, and the number of members that shall constitute a quorum;
215 [(b)] (2) the manner of voting and the condition upon which members may vote at
216 general and special meetings and by mail or by delegates elected by district groups or other
217 associations;
218 [(c)] (3) subject to any provision thereon in the articles and in this act, the number,
219 qualifications, compensation, duties and terms of office of directors and officers; the time of
220 their election and the mode and manner of giving notice thereof;
221 [(d)] (4) the time, place and manner for calling and holding meetings of the directors
222 and executive committee, and the number that shall constitute a quorum;
223 [(e)] (5) rules consistent with law and the articles for the management of the
224 association, the establishment of voting districts, the making of contracts, the issuance,
225 retirement, and transfer of stock, and the relative rights, interests and preferences of members
226 and shareholders;
227 [(f)] (6) penalties for violations of the bylaws; and
228 [(g)] (7) such additional provisions as shall be deemed necessary for the carrying out of
229 the purposes of this act.
230 Section 4. Section 3-1-19 is amended to read:
231 3-1-19. Association not in restraint of trade -- Right to disseminate information.
232 [(a)] (1) No association complying with the terms hereof shall be deemed to be a
233 conspiracy, or a combination in restraint of trade, or an illegal monopoly; or be deemed to have
234 been formed for the purpose of lessening competition or fixing prices arbitrarily, nor shall the
235 contracts between the association and its members, or any agreement authorized in this act, be
236 construed as an unlawful restraint of trade, or as part of a conspiracy or combination to
237 accomplish an improper or illegal purpose or act.
238 [(b)] (2) An association may acquire, exchange, interpret and disseminate to its
239 members, to other cooperative associations, and otherwise, past, present, and prospective crop,
240 market, statistical, economic, and other similar information relating to the business of the
241 association, either directly or through an agent created or selected by it or by other associations
242 acting in conjunction with it.
243 [(c)] (3) An association may advise its members in respect to the adjustment of their
244 current and prospective production of agricultural commodities and its relation to the

245 prospective volume of consumption, selling prices and existing or potential surplus, to the end
246 that every market may be served from the most convenient productive areas under a program of
247 orderly marketing that will assure adequate supplies without undue enhancement of prices or
248 the accumulation of any undue surplus.
249 Section 5. Section 3-1-21 is amended to read:
250 3-1-21. Existing associations continued under chapter.
251 [(a)] (1) This act shall be applicable to any existing association formed under any law
252 of this state providing for the incorporation of agricultural cooperative associations, for a
253 purpose for which an association may be formed under this act, and particularly to associations
254 formed under the Agricultural Cooperative Association Act, and all such associations shall
255 have and may exercise and enjoy all the rights, privileges, authority, powers, and capacity
256 heretofore granted, and all such associations shall have and may also exercise and enjoy all the
257 rights, privileges, authority, powers, and capacity granted or afforded under and in pursuance of
258 this act to the same extent and effect as though organized hereunder.
259 [(b)] (2) Any cooperative association heretofore organized by producers of agricultural
260 products under [Title 3,] Chapter 1, General Provisions Relating to Agricultural Cooperative
261 Associations, for purposes in this act provided, may bring itself under and within the terms of
262 this act as if organized hereunder and may thereafter operate in pursuance of the terms hereof,
263 and may exercise and enjoy all the rights, privileges, authority, powers, and capacity afforded
264 and provided for under the terms of this act, by filing with the Division of Corporations and
265 Commercial Code, a sworn statement signed by the president and secretary of such association,
266 to the effect that by resolution of the board of directors of such association duly adopted, such
267 association has elected to bring itself within the terms of this act.
268 Section 6. Section 3-1-45 is amended to read:
269 3-1-45. Sale, mortgage, and lease of assets.
270 (1) (a) The association may sell, lease, exchange, mortgage, pledge, dispose of, or
271 repay a debt with any of the property and assets of an association, if this action is made in the
272 usual and regular course of business of the association.
273 (b) The action taken under Subsection (1)(a) may be made upon the terms and
274 conditions and for consideration as are authorized by the board of directors.
275 (2) Consideration may include money or property, real or personal, including shares of

276 any other association or corporation, domestic or foreign, as is authorized by the association's
277 board of directors.
278 (3) If the articles of incorporation provide for the mortgage or pledge of the property of
279 the association by its directors, then the mortgage or pledge of all, or substantially all, of the
280 property or assets, with or without the good will of an association, is considered to be made in
281 the usual and regular course of its business.
282 (4) If the action taken under Subsection (1) is not made in the usual regular course of
283 the association's business, the action may still be taken if the following requirements are
284 complied with:
285 (a) The board of directors shall adopt a resolution recommending the action, and the
286 members shall vote at an annual or special meeting of members.
287 (b) Written or printed notice of the meeting shall be given to each member entitled to
288 vote as provided in this chapter.
289 (c) (i) At the meeting in which the action is considered, the members may authorize the
290 action described in Subsection (1) and set the terms, or may authorize the board of directors to
291 set the terms, conditions, and consideration to be received by the association.
292 (ii) A two-thirds majority vote of the members is required to approve the action
293 specified in Subsection (1).
294 (d) The board of directors may abandon the action, even if approved by the members,
295 subject to the rights of third parties under any related contracts, without further action or
296 approval by members.
297 Section 7. Section 4-1-8 is amended to read:
298 4-1-8. General definitions.
299 Subject to additional definitions contained in the chapters of this title which are
300 applicable to specific chapters, as used in this title:
301 (1) "Agriculture" means the science and art of the production of plants and animals
302 useful to man including the preparation of plants and animals for human use and disposal by
303 marketing or otherwise.
304 (2) "Agricultural product" or "product of agriculture" means any product which is
305 derived from agriculture, including any product derived from aquaculture as defined in Section
306 4-37-103 .

307 (3) "Commissioner" means the commissioner of agriculture and food.
308 (4) "Department" means the Department of Agriculture and Food created [under Title
309 4,] in Chapter 2, Department - State Chemist - Enforcement.
310 (5) "Dietary supplement" has the meaning defined in the Federal Food, Drug, and
311 Cosmetic Act, 21 U.S.C. Sec. 301 et seq.
312 (6) "Livestock" means cattle, sheep, goats, swine, horses, mules, poultry, domesticated
313 elk as defined in Section 4-39-102 , or any other domestic animal or domestic furbearer raised
314 or kept for profit.
315 (7) "Organization" means a corporation, government or governmental subdivision or
316 agency, business trust, estate, trust, partnership, association, two or more persons having a joint
317 or common interest, or any other legal entity.
318 (8) "Person" means a natural person or individual, corporation, organization, or other
319 legal entity.
320 Section 8. Section 4-8-4 is amended to read:
321 4-8-4. Department functions, powers, and duties.
322 The department has and shall exercise the following functions, powers, and duties, in
323 addition to those specified in Chapter 1 [of this code], Short Title and General Provisions:
324 (1) general supervision over the marketing, sale, trade, advertising, storage, and
325 transportation practices, used in buying and selling products of agriculture in Utah;
326 (2) conduct and publish surveys and statistical analyses with its own resources or with
327 the resources of others through contract, regarding the cost of production for products of
328 agriculture, including transportation, processing, storage, advertising, and marketing costs;
329 regarding market locations, demands, and prices for such products; and regarding market
330 forecasts;
331 (3) assist and encourage producers of products of agriculture in controlling current and
332 prospective production and market deliveries in order to stabilize product prices at prices
333 which assure reasonable profits for producers and at the same time ensure adequate market
334 supplies; and
335 (4) actively solicit input from the public and from interested groups or associations,
336 through public hearings or otherwise, to assist in making fair determinations with respect to the
337 production, marketing, and consumption of products of agriculture.

338 Section 9. Section 4-16-2 is amended to read:
339 4-16-2. Definitions.
340 As used in this chapter:
341 (1) "Advertisement" means any representation made relative to seeds, plants, bulbs, or
342 ground stock other than those on the label of a seed container, disseminated in any manner.
343 (2) "Agricultural seeds" mean seeds of grass, forage plants, cereal crops, fiber crops,
344 sugar beets, seed potatoes, or any other kinds of seed or mixtures of seed commonly known
345 within this state as agricultural or field seeds.
346 (3) "Flower seeds" mean seeds of herbaceous plants grown for their blooms,
347 ornamental foliage, or other ornamental plants commonly known and sold under the name of
348 flower seeds in this state.
349 (4) "Foundation seed," "registered seed," or "certified seed" means seed that is
350 produced and labeled in accordance with procedures officially recognized by a seed certifying
351 agency approved and accredited in this state.
352 (5) (a) "Hybrid" means the first generation seed of a cross produced by controlling
353 pollination and by combining:
354 (i) two or more inbred lines;
355 (ii) one inbred or a single cross with an open-pollinated variety; or
356 (iii) two varieties or species, except open-pollinated varieties of corn, Zea mays.
357 (b) The second generation and subsequent generations from the crosses referred to in
358 Subsection (5)(a) are not to be regarded as hybrids.
359 (c) Hybrid designations shall be treated as variety names.
360 (6) "Kind" means one or more related species or subspecies of seed which singly or
361 collectively is known by one name, for example, corn, oats, alfalfa, and timothy.
362 (7) (a) "Label" means any written, printed, or graphic representation accompanying and
363 pertaining to any seeds, plants, bulbs, or ground stock whether in bulk or in containers.
364 (b) "Label" includes representations on invoices, bills, and letterheads.
365 (8) "Lot" means a definite quantity of seed identified by a number or other mark, every
366 part or bag of which is uniform within recognized tolerances.
367 (9) "Noxious-weed seeds" mean weed seeds declared noxious by the commissioner.
368 (10) "Pure seed," "germination," or other terms in common use for testing seeds for

369 purposes of labeling shall have ascribed to them the meaning set forth for such terms in the
370 most recent edition of "Rules for Seed Testing" published by the Association of Official Seed
371 Analysts.
372 (11) "Seeds for sprouting" means seeds sold for sprouting for salad or culinary
373 purposes.
374 (12) "Sowing" means the placement of agricultural seeds, vegetable seeds, flower
375 seeds, tree and shrub seeds, or seeds for sprouting in a selected environment for the purpose of
376 obtaining plant growth.
377 (13) "Treated" means seed that has received an application of a substance to reduce,
378 control, or repel certain disease organisms, fungi, insects or other pests which may attack the
379 seed or its seedlings, or has received some other treatment to improve its planting value.
380 (14) "Tree and shrub seeds" mean seeds of woody plants commonly known and sold
381 under the name of tree and shrub seeds in this state.
382 (15) "Variety" means a subdivision of a kind characterized by growth, yield, plant,
383 fruit, seed, or other characteristic, which differentiate it from other plants of the same kind.
384 (16) "Vegetable seeds" mean seeds of crops grown in gardens or on truck farms that
385 are generally known and sold under the name of vegetable seeds, plants, bulbs, and ground
386 stocks in this state.
387 (17) "Weed seeds" mean seeds of any plant generally recognized as a weed within this
388 state.
389 Section 10. Section 4-16-7 is amended to read:
390 4-16-7. Inspection -- Samples -- Analysis -- Seed testing facilities to be maintained
391 -- Rules to control offensive seeds -- Notice of offending seeds -- Warrants.
392 (1) (a) The department shall periodically enter public or private premises from which
393 seeds are distributed, offered, or exposed for sale to sample, inspect, analyze, and test
394 agricultural, vegetable, flower, or tree and shrub seeds or seeds for sprouting distributed within
395 this state to determine compliance with this chapter.
396 (b) To perform the duties specified in Subsection (1)(a), the department shall:
397 (i) establish and maintain facilities for testing the purity and germination of seeds;
398 (ii) prescribe by rule uniform methods for sampling and testing seeds; and
399 (iii) establish fees for rendering service.

400 (2) The department shall prescribe by rule weed seeds and noxious weed seeds and fix
401 the tolerances permitted for those offensive seeds.
402 (3) If a seed sample, upon analysis, fails to comply with this chapter, the department
403 shall give written notice to that effect to any person who is distributing, offering, or exposing
404 the seeds for sale. Nothing in this chapter, however, shall be construed as requiring the
405 department to refer minor violations for criminal prosecution or for the institution of
406 condemnation proceedings if it believes the public interest will best be served through informal
407 action.
408 (4) The department may proceed immediately, if admittance is refused, to obtain an ex
409 parte warrant from the nearest court of competent jurisdiction to allow entry upon the premises
410 for the purpose of making inspections and obtaining samples.
411 Section 11. Section 4-17-3.5 is amended to read:
412 4-17-3.5. Creation of State Weed Committee -- Membership -- Powers and duties
413 -- Expenses.
414 (1) There is created a State Weed Committee composed of five members, one member
415 representing each of the following:
416 (a) the Department of Agriculture and Food;
417 (b) the Utah State University Agricultural Experiment Station;
418 (c) the Utah State University Extension Service;
419 (d) the Utah Association of Counties; and
420 (e) private agricultural industry.
421 (2) The commissioner shall select the members of the committee from those nominated
422 by each of the respective groups or agencies following approval by the Agricultural Advisory
423 Board.
424 (3) (a) Except as required by Subsection (3)(b), as terms of current committee members
425 expire, the commissioner shall appoint each new member or reappointed member to a four-year
426 term.
427 (b) Notwithstanding the requirements of Subsection (3)(a), the commissioner shall, at
428 the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
429 committee members are staggered so that approximately half of the committee is appointed
430 every two years.

431 (4) (a) Members may be removed by the commissioner for cause.
432 (b) When a vacancy occurs in the membership for any reason, the replacement shall be
433 appointed for the unexpired term.
434 (5) The State Weed Committee shall:
435 (a) confer and advise on matters pertaining to the planning, implementation, and
436 administration of the state noxious weed program;
437 (b) recommend names for membership on the committee; and
438 (c) serve as members of the executive committee of the Utah Weed Control
439 Association.
440 (6) (a) (i) Members who are not government employees shall receive no compensation
441 or benefits for their services, but may receive per diem and expenses incurred in the
442 performance of the member's official duties at the rates established by the Division of Finance
443 under Sections 63A-3-106 and 63A-3-107 .
444 (ii) Members may decline to receive per diem and expenses for their service.
445 (b) (i) State government officer and employee members who do not receive salary, per
446 diem, or expenses from their agency for their service may receive per diem and expenses
447 incurred in the performance of their official duties from the committee at the rates established
448 by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
449 (ii) State government officer and employee members may decline to receive per diem
450 and expenses for their service.
451 (c) (i) Higher education members who do not receive salary, per diem, or expenses
452 from the entity that they represent for their service may receive per diem and expenses incurred
453 in the performance of their official duties from the committee at the rates established by the
454 Division of Finance under Sections 63A-3-106 and 63A-3-107 .
455 (ii) Higher education members may decline to receive per diem and expenses for their
456 service.
457 (d) (i) Local government members who do not receive salary, per diem, or expenses
458 from the entity that they represent for their service may receive per diem and expenses incurred
459 in the performance of their official duties at the rates established by the Division of Finance
460 under Sections 63A-3-106 and 63A-3-107 .
461 (ii) Local government members may decline to receive per diem and expenses for their

462 service.
463 Section 12. Section 4-19-2 is amended to read:
464 4-19-2. Department authorized to approve and make grants and loans, acquire
465 property, or lease or operate property.
466 The department, in conjunction with the administration of the rural rehabilitation
467 program, may:
468 (1) approve and make a loan to a farm or agricultural cooperative association regulated
469 under Title 3, [General Provisions Relating to Agricultural Associations] Uniform Agricultural
470 Cooperative Association Act, subject to Section 4-19-3 , including:
471 (a) taking security for the loan through a mortgage, trust deed, pledge, or other security
472 device;
473 (b) purchasing a promissory note, real estate contract, mortgage, trust deed, or other
474 instrument or evidence of indebtedness; and
475 (c) collecting, compromising, canceling, or adjusting a claim or obligation arising out
476 of the administration of the rural rehabilitation program;
477 (2) purchase or otherwise obtain property in which the department has acquired an
478 interest on account of a mortgage, trust deed, lien, pledge, assignment, judgment, or other
479 means at any execution or foreclosure sale;
480 (3) operate or lease, if necessary to protect its investment, property in which it has an
481 interest or sell or otherwise dispose of the property; and
482 (4) approve and make an education loan or an education grant to an individual for the
483 purpose of attending a vocational school, college, or university to obtain additional education,
484 qualifications, or skills.
485 Section 13. Section 4-23-4 is amended to read:
486 4-23-4. Agricultural and Wildlife Damage Prevention Board created --
487 Composition -- Appointment -- Terms -- Vacancies -- Compensation.
488 (1) There is created an Agricultural and Wildlife Damage Prevention Board composed
489 of the commissioner and the director of the Division of Wildlife Resources, who shall serve,
490 respectively, as the board's chair and vice chair, together with seven other members appointed
491 by the governor to four-year terms of office as follows:
492 (a) one sheep producer representing wool growers of the state;

493 (b) one cattle producer representing range cattle producers of the state;
494 (c) one person from the United States Department of Agriculture;
495 (d) one agricultural landowner representing agricultural landowners of the state;
496 (e) one person representing wildlife interests in the state;
497 (f) one person from the United States Forest Service; and
498 (g) one person from the United States Bureau of Land Management.
499 (2) Appointees' term of office shall commence June 1.
500 (3) (a) Except as required by Subsection (3)(b), as terms of current board members
501 expire, the governor shall appoint each new member or reappointed member to a four-year
502 term.
503 (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
504 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
505 board members are staggered so that approximately half of the board is appointed every two
506 years.
507 (4) When a vacancy occurs in the membership for any reason, the replacement shall be
508 appointed for the unexpired term.
509 (5) Attendance of five members at a duly called meeting shall constitute a quorum for
510 the transaction of official business. The board shall convene at the times and places prescribed
511 by the chair or vice chair.
512 (6) (a) (i) Members who are not government employees shall receive no compensation
513 or benefits for their services, but may receive per diem and expenses incurred in the
514 performance of the member's official duties at the rates established by the Division of Finance
515 under Sections 63A-3-106 and 63A-3-107 .
516 (ii) Members may decline to receive per diem and expenses for their service.
517 (b) (i) State government officer and employee members who do not receive salary, per
518 diem, or expenses from their agency for their service may receive per diem and expenses
519 incurred in the performance of their official duties from the board at the rates established by the
520 Division of Finance under Sections 63A-3-106 and 63A-3-107 .
521 (ii) State government officer and employee members may decline to receive per diem
522 and expenses for their service.
523 Section 14. Section 4-24-4 is amended to read:

524 4-24-4. Livestock Brand Board created -- Composition -- Terms -- Removal --
525 Quorum for transaction of business -- Compensation -- Duties.
526 (1) There is created the Livestock Brand Board consisting of seven members appointed
527 by the governor as follows:
528 (a) four cattle ranchers recommended by the Utah Cattlemen's Association, one of
529 whom shall be a feeder operator;
530 (b) one dairyman recommended by the Utah Dairymen's Association;
531 (c) one livestock market operator recommended jointly by the Utah Cattlemen's
532 Association and the Utah Dairymen's Association and the Livestock Market Association; and
533 (d) one horse breeder recommended by the Utah Horse Council.
534 (2) If a nominee is rejected by the governor, the recommending association shall
535 submit another nominee.
536 (3) (a) Except as required by Subsection (3)(b), as terms of current board members
537 expire, the governor shall appoint each new member or reappointed member to a four-year
538 term.
539 (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
540 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
541 board members are staggered so that approximately half of the board is appointed every two
542 years.
543 (4) (a) A member may, at the discretion of the governor, be removed at the request of
544 the association that recommended the appointment.
545 (b) When a vacancy occurs in the membership for any reason, the replacement shall be
546 appointed for the unexpired term.
547 (5) One member elected by the board shall serve as chair for a term of one year and be
548 responsible for the call and conduct of meetings of the Livestock Brand Board. Attendance of
549 a simple majority of the members at a duly called meeting shall constitute a quorum for the
550 transaction of official business.
551 (6) (a) Members shall receive no compensation or benefits for their services, but may
552 receive per diem and expenses incurred in the performance of the member's official duties at
553 the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
554 (b) Members may decline to receive per diem and expenses for their service.

555 (7) The Livestock Brand Board with the cooperation of the department shall direct the
556 procedures and policies to be followed in administering and enforcing this chapter.
557 Section 15. Section 4-24-10 is amended to read:
558 4-24-10. Livestock on open range or outside enclosure to be marked or branded
559 -- Cattle upon transfer of ownership to be marked or branded -- Exceptions.
560 (1) (a) Except as provided in Subsections (1)(b) and [(1)] (c), no livestock shall forage
561 upon an open range in this state or outside an enclosure unless they bear a brand or mark
562 recorded in accordance with this chapter.
563 (b) Swine, goats, and unweaned calves or colts are not required to bear a brand or mark
564 to forage upon open range or outside an enclosure.
565 (c) Domesticated elk may not forage upon open range or outside an enclosure under
566 any circumstances as provided in Chapter 39 [of this title], Domesticated Elk Act.
567 (2) (a) Except as provided in Subsection (2)(b), all cattle, upon sale or other transfer of
568 ownership, shall be branded or marked with the recorded brand or mark of the new owner
569 within 30 days after transfer of ownership.
570 (b) No branding or marking, upon change of ownership, is required within the 30-day
571 period for:
572 (i) unweaned calves;
573 (ii) registered or certified cattle;
574 (iii) youth project calves, if the number transferred is less than five; or
575 (iv) dairy cattle held on farms.
576 Section 16. Section 4-32-4 is amended to read:
577 4-32-4. License required to operate slaughterhouse -- Slaughtering livestock
578 except in slaughterhouse prohibited -- Exceptions -- Violation a misdemeanor.
579 (1) No person shall operate a slaughterhouse in this state without a license issued by
580 the department, nor shall any person, except in a licensed slaughterhouse, slaughter livestock as
581 a business or assist other persons in the slaughter of livestock except as otherwise provided in
582 Subsection (2) or (3).
583 (2) Except as provided in Subsection (3), a person who raises his own livestock or an
584 employee of that person may slaughter livestock without a farm custom slaughter permit if:
585 (a) the livestock is slaughtered on property owned by that person;

586 (b) the livestock product derived from the slaughtered animal is consumed exclusively
587 by that person or his immediate family, regular employees of that person, or nonpaying guests;
588 and
589 (c) the livestock product is marked "Not For Sale."
590 (3) Domesticated elk may only be slaughtered as provided in this chapter and in
591 Chapter 39 [of this title], Domesticated Elk Act.
592 (4) Farm custom slaughter may be performed by a person who holds a valid farm
593 custom slaughter permit.
594 (5) Any person who violates this section, except as otherwise provided in Subsection
595 [(5)] (6), is guilty of a class C misdemeanor.
596 (6) Any person who offers for sale or sells any uninspected livestock product is guilty
597 of a class B misdemeanor.
598 Section 17. Section 4-32-7 is amended to read:
599 4-32-7. Mandatory functions, powers, and duties of department prescribed.
600 The department shall make rules pursuant to Title 63G, Chapter 3, Utah Administrative
601 Rulemaking Act, regarding the following functions, powers, and duties, in addition to those
602 specified in [Title 4,] Chapter 1, [Utah Agricultural Code] Short Title and General Provisions,
603 for the administration and enforcement of this chapter:
604 (1) The department shall require antemortem and postmortem inspections, quarantine,
605 segregation, and reinspections by inspectors appointed for those purposes with respect to the
606 slaughter of livestock and poultry and the preparation of livestock and poultry products at
607 official establishments, except as provided in Subsection 4-32-8 (13).
608 (2) The department shall require that:
609 (a) livestock and poultry be identified for inspection purposes;
610 (b) livestock or poultry products, or their containers be marked or labeled as:
611 (i) "Utah Inspected and Passed" if, upon inspection, the products are found to be
612 unadulterated; and
613 (ii) "Utah Inspected and Condemned" if, upon inspection, the products are found to be
614 adulterated; and
615 (c) condemned products, which otherwise would be used for human consumption, be
616 destroyed under the supervision of an inspector.

617 (3) The department shall prohibit or limit livestock products, poultry products, or other
618 materials not prepared under inspection procedures provided in this chapter, from being
619 brought into official establishments.
620 (4) The department shall require that labels and containers for livestock and poultry
621 products:
622 (a) bear all information required under Section 4-32-3 if the product leaves the official
623 establishment; and
624 (b) be approved prior to sale or transportation.
625 (5) For official establishments required to be inspected under Subsection (1), the
626 department shall:
627 (a) prescribe sanitary standards;
628 (b) require experts in sanitation or other competent investigators to investigate sanitary
629 conditions; and
630 (c) refuse to provide inspection service if the sanitary conditions allow adulteration of
631 any livestock or poultry product.
632 (6) (a) The department shall require that any person engaged in a business referred to in
633 Subsection (6)(b) shall:
634 (i) keep accurate records disclosing all pertinent business transactions;
635 (ii) allow inspection of the business premises at reasonable times and examination of
636 inventory, records, and facilities; and
637 (iii) allow inventory samples to be taken after payment of their fair market value.
638 (b) Subsection (6)(a) shall refer to any person who:
639 (i) slaughters livestock or poultry;
640 (ii) prepares, freezes, packages, labels, buys, sells, transports, or stores any livestock or
641 poultry products for human or animal consumption;
642 (iii) renders livestock or poultry; or
643 (iv) buys, sells, or transports any dead, dying, disabled, or diseased livestock or poultry,
644 or parts of their carcasses that died by a method other than slaughter.
645 (7) (a) The department shall:
646 (i) adopt by reference rules and regulations under federal acts with changes that the
647 commissioner considers appropriate to make the rules and regulations applicable to operations

648 and transactions subject to this chapter; and
649 (ii) promulgate any other rules considered necessary for the efficient execution of the
650 provisions of this chapter, including rules of practice providing an opportunity for hearing in
651 connection with the issuance of orders under Subsection (5) or under Subsection 4-32-8 (1), (2),
652 or (3) and prescribing procedures for proceedings in these cases.
653 (b) These procedures shall not preclude requiring that a label or container be withheld
654 from use, or inspection be refused under Subsections (1) and (5), or Subsection 4-32-8 (3),
655 pending issuance of a final order in the proceeding.
656 (8) (a) To prevent the inhumane slaughtering of livestock and poultry, inspectors shall
657 be appointed to examine and inspect methods of handling and slaughtering livestock and
658 poultry.
659 (b) Inspection of new slaughtering establishments may be refused or temporarily
660 suspended if livestock or poultry have been slaughtered or handled by any method not in
661 accordance with the Humane Methods of Slaughter Act of 1978, Public Law 95-445.
662 (9) (a) The department shall require all livestock and poultry showing symptoms of
663 disease during antemortem inspection, performed by an inspector appointed for that purpose, to
664 be set apart and slaughtered separately from other livestock and poultry.
665 (b) When slaughtered, the carcasses of livestock and poultry shall be subject to careful
666 examination and inspection in accordance with rules prescribed by the commissioner.
667 Section 18. Section 4-38-8 is amended to read:
668 4-38-8. Stewards.
669 (1) (a) The commission may delegate authority to enforce its rules and this chapter to
670 three stewards employed by the commission at each recognized race meet. At least one of them
671 shall be selected by the commission.
672 (b) Stewards shall exercise reasonable and necessary authority as designated by rules of
673 the commission including the following:
674 (i) enforce rules of the commission;
675 (ii) rule on the outcome of events;
676 (iii) evict from an event any person who has been convicted of bookmaking, bribery, or
677 attempts to alter the outcome of any race through tampering with any animal that is not in
678 accordance with this chapter or the rules of the commission;

679 (iv) levy fines not to exceed $2,500 for violations of rules of the commission, which
680 fines shall be reported daily and paid to the commission within 48 hours of imposition and
681 notice;
682 (v) suspend licenses not to exceed one year for violations of rules of the commission,
683 which suspension shall be reported to the commission daily; and
684 (vi) recommend that the commission impose fines or suspensions greater than
685 permitted by Subsections (1)(b)(iv) and (v).
686 (2) If a majority of the stewards agree, they may impose fines or suspend licenses.
687 (3) (a) Any fine or license suspension imposed by a steward may be appealed in writing
688 to the commission within five days after its imposition. The commission may affirm or reverse
689 the decision of a steward or may increase or decrease any fine or suspension.
690 (b) A fine imposed by the commission under this section or Section 4-38-9 may not
691 exceed $10,000.
692 (c) Suspensions of a license may be for any period of time but shall be commensurate
693 with the seriousness of the offense.
694 Section 19. Section 7-2-7 is amended to read:
695 7-2-7. Stay of proceedings against institution -- Relief.
696 (1) Except as otherwise specified, a taking of an institution or other person by the
697 commissioner or a receiver or liquidator appointed by the commissioner under this chapter
698 operates as a stay of the commencement or continuation of the following with respect to the
699 institution:
700 (a) any judicial, administrative, or other proceeding, including service of process;
701 (b) the enforcement of any judgment;
702 (c) any act to obtain possession of property;
703 (d) any act to create, perfect, or enforce any lien against property of the institution;
704 (e) any act to collect, assess, or recover a claim against the institution; and
705 (f) the setoff of any debt owing to the institution against any claim against the
706 institution.
707 (2) Except as provided in Subsections (3), (4), (5), and (8):
708 (a) the stay of any action against property of the institution continues until the
709 institution has no interest in the property; and

710 (b) the stay of any other action continues until the earlier of when the case is:
711 (i) closed; or
712 (ii) dismissed.
713 (3) On the motion of any party in interest and after notice and a hearing, the court may
714 terminate, annul, modify, condition, or otherwise grant relief from the stay:
715 (a) for cause, including the lack of adequate protection of an interest in property of the
716 party in interest; or
717 (b) with respect to a stay of any action against property if:
718 (i) the institution does not have an equity interest in the property; and
719 (ii) the property would have no value in a reorganization or liquidation of the
720 institution.
721 (4) (a) Thirty days after a request under Subsection (3) for relief from the stay of any
722 act against property of the institution, the stay is terminated with respect to the party in interest
723 making the request unless the court, after notice and a hearing, orders the stay continued in
724 effect pending the conclusion of, or as a result of, a final hearing and determination under
725 Subsection (3).
726 (b) A hearing under this Subsection (4) may be:
727 (i) a preliminary hearing; or
728 (ii) consolidated with the final hearing under Subsection (3).
729 (c) The court shall order the stay continued in effect pending the conclusion of the final
730 hearing under Subsection (3) if there is a reasonable likelihood that the party opposing relief
731 from the stay will prevail at the conclusion of the final hearing.
732 (d) If the hearing under this Subsection (4) is a preliminary hearing, the final hearing
733 shall be commenced not later than 30 days after the conclusion of the preliminary hearing.
734 (5) Upon request of a party in interest, the court, with or without a hearing, may grant
735 relief from the stay provided under Subsection (1) to the extent necessary to prevent irreparable
736 damage to the interest of an entity in property, if the interest will or could be damaged before
737 there is an opportunity for notice and a hearing under Subsection (3) or (4).
738 (6) In any hearing under Subsection (3) or (4) concerning relief from the stay of any act
739 under Subsection (1):
740 (a) the party requesting relief has the burden of proof on the issue of the institution's

741 equity in property; and
742 (b) the party opposing relief has the burden of proof on all other issues.
743 (7) A person injured by any willful violation of a stay provided by this section shall
744 recover actual damages, including costs and attorneys' fees and, when appropriate, may recover
745 punitive damages.
746 (8) Nothing in this section prevents the holder or the trustee for any holder of any bond,
747 note, debenture, or other evidence of indebtedness issued by a city, county, municipal
748 corporation, commission, district, authority, agency, subdivision, or other public body pursuant
749 to Title 11, Chapter 17, Utah Industrial Facilities and Development Act, from exercising any
750 rights it may have to sell, take possession of, foreclose upon, or enforce a lien against or
751 security interest in property of an institution that has been pledged, assigned, or mortgaged as
752 collateral for that bond, note, debenture, or evidence of indebtedness, or as collateral for a letter
753 of credit or other instrument issued in support of that bond, note, debenture, or evidence of
754 indebtedness.
755 (9) Notice of any hearing under this section shall be served as provided in Subsection
756 7-2-9 (6).
757 Section 20. Section 7-7-15 is amended to read:
758 7-7-15. Fiduciary relationship of directors and officers to association --
759 Disclosure requirements -- Prohibitions -- Violations as misdemeanors.
760 (1) (a) Directors and officers occupy fiduciary relationships to the association of which
761 they are directors or officers. No director or officer may engage or participate, directly or
762 indirectly, in any business or transaction conducted on behalf of or involving the association,
763 which would result in a conflict of his own personal interests with those of the association
764 which he serves, unless:
765 (i) the business or transactions are conducted in good faith and are honest, fair, and
766 reasonable to the association;
767 (ii) a full disclosure of the business or transactions and the nature of the director's or
768 officer's interest is made to the board of directors;
769 (iii) the business or transactions are approved in good faith by the board of directors,
770 any interested director abstaining; and
771 (iv) the business or transactions do not represent a breach of the officer's or director's

772 fiduciary duty and are not fraudulent, illegal, or ultra vires.
773 (b) Without limitation by any of the specific provisions of this section, the supervisor
774 may require the disclosure by directors, officers and employees of their personal interest, direct
775 or indirect, in any business or transaction on behalf of or involving the association and of their
776 control of or active participation in enterprises having activities related to the business of the
777 association.
778 (2) The following express restrictions governing the conduct of directors and officers
779 of associations shall apply, but shall not be construed in any manner as excusing those persons
780 from the observance of any other aspect of the general fiduciary duty owed by them to the
781 association which they serve:
782 (a) No officer or director of an association may, without the prior written approval of
783 the commissioner, serve as a director or officer of another savings institution, the principal
784 office of which is located in the same community as an office of the association, unless he
785 served as director or officer of both institutions before the effective date of this act.
786 (b) A director may not receive remuneration as a director, except reasonable fees for
787 service as a director or for service as a member of a committee of directors. This Subsection
788 (2)(b) does not prohibit or in any way limit any right of a director who is also an officer,
789 employee, or attorney for the association to receive compensation for service as an officer,
790 employee, or attorney.
791 (c) No director or officer may have any interest, directly or indirectly, in the proceeds
792 of a loan or investment or of a purchase or sale made by the association, unless the loan,
793 investment, purchase, or sale is authorized expressly by resolution of the board of directors,
794 and unless the resolution is approved by vote of at least two-thirds of the directors authorized
795 of the association, any interested director taking no part in the vote.
796 (d) No director or officer may have any interest, direct or indirect, in the purchase at
797 less than its face value of any evidence of a savings account, deposit or other indebtedness
798 issued by the association.
799 (e) An association or a director, officer, or employee of an association may not require,
800 as a condition to the granting of any loan or the extension of any other service by the
801 association, that the borrower or any other person undertake a contract of insurance or any
802 other agreement or understanding with respect to the furnishing of any other goods or services,

803 with any specific company, agency, or individual.
804 (f) No officer or director acting as proxy for a member or stockholder of an association
805 may exercise, transfer, or delegate the proxy vote or votes in consideration of a private benefit
806 or advantage, direct or indirect, accruing to himself, nor may he surrender control or pass his
807 office to any other for any consideration of a private benefit or advantage, direct or indirect.
808 The voting rights of members and directors may not be the subject of sale, barter, exchange, or
809 similar transaction, either directly or indirectly. Any officer or director who violates this
810 Subsection (2)(f) shall be held accountable to the association for any increment.
811 (g) No director or officer may solicit, accept, or agree to accept, directly or indirectly,
812 from any person other than the association any gratuity, compensation or other personal benefit
813 for any action taken by the association or for endeavoring to procure any such action.
814 (h) Any person violating any of the specific prohibitions set forth in Subsections (2)(a)
815 through (g) is guilty of a class C misdemeanor.
816 Section 21. Section 7-9-30 is amended to read:
817 7-9-30. Reserve requirements -- "Risk assets" defined.
818 (1) As used in this section, the words "risk assets" means all assets except the
819 following:
820 (a) cash on hand;
821 (b) deposits and shares in federal or state banks, savings and loan associations, and
822 credit unions;
823 (c) assets which are insured by any agency of the federal government, the Federal
824 National Mortgage Association, or the Government Mortgage Association;
825 (d) loans to students insured under Title IV, Part B of the Higher Education Act of
826 1965, 20 U.S.C. Sections 1071 et seq. or similar state insurance programs;
827 (e) loans insured under Title 1 of the National Housing Act, 12 U.S.C. Sections 1702
828 et seq. by the Federal Housing Administration;
829 (f) shares or deposits in corporate credit unions as provided in Section 7-9-44 , or of any
830 other state act, or of the Federal Credit Union Act;
831 (g) accrued interest on nonrisk investments; and
832 (h) loans fully guaranteed by shares or deposits.
833 (2) At the end of each accounting period, after payment of any interest refunds, the

834 credit union shall determine the gross income from member loans and from this amount shall
835 set aside a regular reserve in accordance with Subsections (2)(a), (b), and (c).
836 (a) A credit union in operation for more than four years and having assets of $500,000
837 or more shall set aside a minimum of 10% of gross income from member loans until the
838 regular reserve equals at least 4% of the total of outstanding loans and risk assets, then a
839 minimum of 5% of gross income from member loans until the regular reserve equals at least
840 6% of the total of outstanding loans and risk assets.
841 (b) A credit union in operation for less than four years or having assets of less than
842 $500,000 shall set aside a minimum of 10% of gross income from member loans until the
843 regular reserve equals at least 7-1/2% of the total of outstanding loans and risk assets, then a
844 minimum of 5% of gross income from member loans until the regular reserve equals at least
845 10% of the total of outstanding loans and risk assets.
846 (c) The regular reserve belongs to the credit union and shall be used to build equity and
847 to meet contingencies or losses when authorized by the commissioner or the supervisor of
848 credit unions.
849 (d) The commissioner may temporarily reduce or waive the requirements for the
850 regular reserve placement if he finds it to be in the best interest of the credit union.
851 Section 22. Section 7-9-43 is amended to read:
852 7-9-43. Board of Credit Union Advisors.
853 There is created a Board of Credit Union Advisors of five members to be appointed by
854 the governor.
855 (1) Members of the board shall be individuals who are familiar with and associated in
856 the field of credit unions.
857 (2) At least three of the members shall be persons who have had three or more years of
858 experience as a credit union officer and shall be selected from a list submitted to the governor
859 by the Utah League of Credit Unions.
860 (3) The board shall meet quarterly.
861 (4) A chair of the advisory board shall be chosen each year from the membership of the
862 advisory board by a majority of the members present at the board's first meeting each year.
863 (5) (a) Except as required by Subsection (5)(b), as terms of current board members
864 expire, the governor shall appoint each new member or reappointed member to a four-year

865 term.
866 (b) Notwithstanding the requirements of Subsection (5)(a), the governor shall, at the
867 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
868 board members are staggered so that approximately half of the board is appointed every two
869 years.
870 (6) When a vacancy occurs in the membership for any reason, the replacement shall be
871 appointed for the unexpired term.
872 (7) All members shall serve until their successors are appointed and qualified.
873 (8) (a) Members shall receive no compensation or benefits for their services, but may
874 receive per diem and expenses incurred in the performance of the member's official duties at
875 the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
876 (b) Members may decline to receive per diem and expenses for their service.
877 (9) Meetings of the advisory board shall be held on the call of the chair. A majority of
878 the members of the board shall constitute a quorum.
879 (10) The Board of Credit Union Advisors has the duty to advise the governor and
880 commissioner on problems relating to credit unions and to foster the interest and cooperation of
881 credit unions in the improvement of their services to the people of the state of Utah.
882 Section 23. Section 7-9-53 is amended to read:
883 7-9-53. Grandfathering.
884 (1) As used in this section:
885 (a) "Association that resides in a domicile-county" means an association that:
886 (i) operates a place of business or other physical location in the domicile-county; or
887 (ii) has at least 100 members that are residents of the domicile-county.
888 (b) "Domicile-county" means the county:
889 (i) in the field of membership of the credit union as of January 1, 1999; and
890 (ii) in which the credit union has located the greatest number of branches as of January
891 1, 1999.
892 (c) "Grandfathered field of membership" means the field of membership as of May 3,
893 1999, of a credit union described in Subsection (2)(d).
894 (2) For each credit union formed before January 1, 1999, its field of membership as of
895 May 3, 1999, is determined as follows:

896 (a) if the field of membership stated in the bylaws of the credit union as of January 1,
897 1999, complies with Section 7-9-51 , the credit union's field of membership is the field of
898 membership indicated in its bylaws;
899 (b) (i) the field of membership of a credit union as of May 3, 1999, is as provided in
900 Subsection (2)(b)(ii) if:
901 (A) the field of membership stated in the bylaws of the credit union as of January 1,
902 1999, includes the residents of more than one county; and
903 (B) as of January 1, 1999, the credit union's main office and any of its branches are
904 located in only one county in its field of membership;
905 (ii) as of May 3, 1999, the field of membership of a credit union described in
906 Subsection (2)(b)(i) is:
907 (A) the immediate family of a member of the credit union;
908 (B) the employees of the credit union;
909 (C) residents of the one county in which the credit union has its main office or
910 branches as of January 1, 1999[,]; and
911 (D) any association that as of January 1, 1999, is in the field of membership of the
912 credit union;
913 (c) (i) the field of membership of a credit union as of May 3, 1999, is as provided in
914 Subsection (2)(c)(ii) if:
915 (A) the field of membership of a credit union stated in the bylaws of the credit union as
916 of January 1, 1999, includes residents of more than one county;
917 (B) as of January 1, 1999, the credit union has a main office or branch in more than one
918 county; and
919 (C) as a result of a merger pursuant to a supervisory action under Chapter 2, Possession
920 of Depository Institution by Commissioner, or Chapter 19, Acquisition of Failing Depository
921 Institutions or Holding Companies, that is effective on or after January 1, 1983, but before
922 January 1, 1994, the credit union acquired a branch in a county in the field of membership of
923 the credit union and the credit union did not have a branch in the county before the merger;
924 (ii) as of May 3, 1999, the field of membership of a credit union described in
925 Subsection (2)(c)(i) is the same field of membership that the credit union would have had
926 under Subsection (2)(d) except that the credit union:

927 (A) is not subject to Subsection (3); and
928 (B) is subject to Subsection (4)(b); and
929 (d) (i) the field of membership of a credit union as of May 3, 1999, is as provided in
930 Subsection (2)(d)(ii) if:
931 (A) the field of membership stated in the bylaws of the credit union as of January 1,
932 1999, includes the residents of more than one county; and
933 (B) as of January 1, 1999, the credit union has a main office or branch in more than one
934 county;
935 (ii) as of May 3, 1999, the field of membership of a credit union described in
936 Subsection (2)(d)(i) is:
937 (A) the immediate family of a member of the credit union;
938 (B) the employees of the credit union;
939 (C) residents of the credit union's domicile-county;
940 (D) the residents of any county other than the domicile-county:
941 (I) if, as of January 1, 1999, the county is in the field of membership of the credit
942 union; and
943 (II) in which, as of January 1, 1994, the credit union had located its main office or a
944 branch; and
945 (E) any association that as of January 1, 1999, is in the field of membership of the
946 credit union.
947 (3) If a credit union's field of membership is as described in Subsection (2)(d),
948 beginning May 3, 1999, the credit union:
949 (a) within the credit union's domicile-county, may establish, relocate, or otherwise
950 change the physical location of the credit union's:
951 (i) main office; or
952 (ii) branch;
953 (b) within a county other than a domicile-county that is in the credit union's
954 grandfathered field of membership, may not:
955 (i) establish a main office or branch that:
956 (A) was not located in the county as of January 1, 1999; or
957 (B) for which the credit union has not received by January 1, 1999, approval or

958 conditional approval of a site plan for the main office or branch from the planning commission
959 of the municipality where the main office or branch will be located;
960 (ii) participate in a service center in which it does not participate as of January 1, 1999;
961 (iii) relocate the credit union's main office or a branch located in the county as of
962 January 1, 1999, unless the commissioner finds that the main office or branch is relocated
963 within a three-mile radius of where it was originally located; or
964 (iv) after a voluntary merger under Section 7-9-39 , operate a branch in the county if:
965 (A) the effective date of the merger is on or after May 5, 2003;
966 (B) the credit union with the field of membership described in Subsection (2)(d) is the
967 surviving credit union after the merger; and
968 (C) the credit union did not own and operate the branch before the effective date of the
969 merger; and
970 (c) may only admit as a member:
971 (i) a person in the credit union's grandfathered field of membership; or
972 (ii) a person belonging to an association that:
973 (A) is added to the field of membership of the credit union; and
974 (B) resides in the domicile-county of the credit union.
975 (4) (a) If a credit union's field of membership is as described in Subsection (2)(b), as of
976 May 3, 1999, the credit union may operate as a credit union having a field of membership
977 under Section 7-9-51 .
978 (b) If a credit union's field of membership is as described in Subsection (2)(c), as of
979 May 3, 1999, the credit union:
980 (i) within the credit union's domicile-county, may establish, relocate, or otherwise
981 change the physical location of the credit union's:
982 (A) main office; or
983 (B) branch;
984 (ii) within a county other than its domicile-county that is in the credit union's field of
985 membership under Subsection (2)(c), may not:
986 (A) establish a main office or branch that was not located in the county as of January 1,
987 1999;
988 (B) participate in a service center in which it does not participate as of January 1, 1999;

989 or
990 (C) relocate the credit union's main office or a branch located in the county as of
991 January 1, 1999, unless the commissioner finds that the main office or branch is relocated
992 within a three-mile radius of where it was originally located; and
993 (iii) may only admit as a member:
994 (A) a person in the credit union's field of membership under Subsection (2)(c); or
995 (B) a person belonging to an association that is added to the field of membership of the
996 credit union, regardless of whether the association resides in the domicile-county of the credit
997 union.
998 (5) (a) Notwithstanding Subsections (1) through (4), after May 3, 1999, a credit union
999 described in Subsection (2)(c) or [(2)] (d) may:
1000 (i) operate an office or branch that is operated by the credit union on May 3, 1999, but
1001 that is not located in a county that is in the credit union's field of membership as of May 3,
1002 1999; and
1003 (ii) serve a member who is not in a credit union's field of membership as of May 3,
1004 1999, if the member is a member of the credit union as of March 15, 1999.
1005 (b) Subsection (5)(a) does not authorize a credit union to:
1006 (i) establish a branch in a county that is not in the credit union's field of membership as
1007 of May 3, 1999, unless the branch meets the requirements under this title for establishing a
1008 branch; or
1009 (ii) for a credit union described in Subsection (2)(d), include in its field of membership
1010 an association that:
1011 (A) as of January 1, 1999, is not included in the credit union's field of membership; and
1012 (B) does not reside within the credit union's domicile-county.
1013 (6) A credit union shall amend its bylaws in accordance with Section 7-9-11 by no later
1014 than August 3, 1999, to comply with this section.
1015 (7) In addition to any requirement under this section, a credit union shall comply with
1016 any requirement under this title for the establishment, relocation, or change in the physical
1017 location of a main office or branch of a credit union.
1018 Section 24. Section 7-15-2 is amended to read:
1019 7-15-2. Notice -- Form.

1020 (1) (a) "Notice" means notice given to the issuer of a check either orally or in writing.
1021 (b) Written notice may be given by United States mail that is:
1022 (i) first class; and
1023 (ii) postage prepaid.
1024 (c) Notwithstanding Subsection (1)(b), written notice is conclusively presumed to have
1025 been given when the notice is:
1026 (i) properly deposited in the United States mail;
1027 (ii) postage prepaid;
1028 (iii) certified or registered mail;
1029 (iv) return receipt requested; and
1030 (v) addressed to the signer at the signer's:
1031 (A) address as it appears on the check; or
1032 (B) last-known address.
1033 (2) Written notice under Subsection 7-15-1 (5) shall take substantially the following
1034 form:
1035 "Date: ____
1036 To: _____
1037 You are hereby notified that the check(s) described below issued by you has (have)
1038 been returned to us unpaid:
1039 Check date: ____
1040 Check number: ____
1041 Originating institution: ____
1042 Amount: ____
1043 Reason for dishonor (marked on check): ____
1044 In accordance with Section 7-15-1 , Utah Code Annotated, you are liable for this check
1045 together with a service charge of $20, which must be paid to the undersigned.
1046 If you do not pay the check amount and the $20 service charge within 15 calendar days
1047 from the day on which this notice was mailed, you are required to pay within 30 calendar days
1048 from the day on which this notice is mailed:
1049 (1) the check amount;
1050 (2) the $20 service charge; and

1051 (3) collection costs not to exceed $20.
1052 If you do not pay the check amount, the $20 service charge, and the collection costs
1053 within 30 calendar days from the day on which this notice is mailed, in accordance with
1054 Section 7-15-1 , Utah Code Annotated, an appropriate civil legal action may be filed against
1055 you for:
1056 (1) the check amount;
1057 (2) interest;
1058 (3) court costs;
1059 (4) attorneys' fees;
1060 (5) actual costs of collection as provided by law; and
1061 (6) damages in an amount equal to the greater of $100 or triple the check amount,
1062 except:
1063 (a) that damages recovered under this Subsection (6) may not exceed the check amount
1064 by more than $500; and
1065 (b) you are not liable for these damages for a check used to obtain a deferred deposit
1066 loan.
1067 In addition, the criminal code provides in Section 76-6-505 , Utah Code Annotated, that
1068 any person who issues or passes a check for the payment of money, for the purpose of
1069 obtaining from any person, firm, partnership, or corporation, any money, property, or other
1070 thing of value or paying for any services, wages, salary, labor, or rent, knowing it will not be
1071 paid by the drawee and payment is refused by the drawee, is guilty of issuing a bad check.
1072 The civil action referred to in this notice does not preclude the right to prosecute under
1073 the criminal code of the state.
1074 (Signed) ____________________________________________________
1075 Name of Holder: ____________________________________________________
1076 Address of Holder: ____________________________________________________
1077 Telephone Number: ___________________________________________________"
1078 (3) Notwithstanding the other provisions of this section, a holder exempt under
1079 Subsection 7-15-1 (9) is exempt from this section.
1080 Section 25. Section 8-4-2 is amended to read:
1081 8-4-2. Endowment care cemetery trust funds -- Deposits in endowment fund --

1082 Reports -- Penalties for failure to file -- Investment of trust fund monies -- Attestation.
1083 (1) An endowment care cemetery shall establish an endowment care trust fund
1084 pursuant to Title 75, Chapter 7, [Trust Administration] Utah Uniform Trust Code.
1085 (a) Any newly established endowment care cemetery or existing cemetery converting
1086 to an endowment care cemetery shall deposit a minimum of $25,000 in the endowment care
1087 trust fund.
1088 (b) Each endowment care cemetery shall deposit in the endowment care trust fund for
1089 each plot space sold or disposed of a minimum of:
1090 (i) $1.50 a square foot for each grave;
1091 (ii) $15 for each niche; and
1092 (iii) $60 for each crypt.
1093 (2) (a) An endowment care cemetery shall collect endowment care funds only pursuant
1094 to a written contract of sale signed by the endowment care cemetery and the purchaser.
1095 (b) The contract of sale shall specify the terms of the endowment care trust consistent
1096 with this section and the terms of payment.
1097 (c) If requested by the purchaser, a copy of the endowment care trust shall be provided
1098 to the purchaser.
1099 (3) (a) Each endowment care cemetery shall prepare an annual written report for the
1100 benefit of its trustor lot holders.
1101 (b) The report shall contain:
1102 (i) information determined to be reasonable and necessary to show compliance with the
1103 provisions of this chapter;
1104 (ii) the number and square feet of grave space;
1105 (iii) the number of crypts and niches sold or disposed of under endowment care during
1106 a specific period; and
1107 (iv) the dollar amount of sales, amounts paid, amounts receivable, and amounts
1108 deposited in endowment care funds for crypts, niches, and grave space during a specific period,
1109 set forth on the accrual basis as determined by the cemetery authority.
1110 (c) An officer of the endowment care cemetery authority shall verify the report.
1111 (d) The report shall be on file in the principal office of the endowment care cemetery
1112 and shall be made available upon request.

1113 (e) The report shall be completed by the 15th day of the third month following the end
1114 of the endowment care cemetery's fiscal year.
1115 (4) An officer, director, partner, proprietor, or other person having control of the
1116 records of an endowment care cemetery shall provide the reports and records necessary to
1117 comply with the provisions of this chapter.
1118 (5) A person is guilty of a class A misdemeanor who willfully and intentionally fails to:
1119 (a) deposit funds collected as endowment care funds into the endowment care trust
1120 within 30 days of receipt of the funds; or
1121 (b) prepare the report required by Subsection (3).
1122 (6) Endowment care funds may be invested separately or together. The investment
1123 income shall be divided between the funds in the proportion that each contributed to the
1124 invested amount.
1125 (7) Endowment care funds shall be invested in accordance with Section 31A-18-105
1126 and Title 75, Chapter 7, [Trust Administration] Utah Uniform Trust Code.
1127 (8) (a) An endowment care cemetery shall place endowment care funds with an
1128 independent trustee appointed by the endowment care cemetery.
1129 (b) A trustee may be independent even if it has common ownership with the cemetery.
1130 (c) The independent trustee shall be a depository institution, as defined by Section
1131 7-1-103 , or an insurer, as defined in Section 31A-1-301 .
1132 (9) (a) The trustee shall submit to the endowment care cemetery an annual independent
1133 attestation of the endowment care trust funds.
1134 (b) The attestation shall state:
1135 (i) the total amount of the general and special endowment care funds invested by law;
1136 (ii) the amount of cash on hand not invested;
1137 (iii) the location, description, and character of the investments in which the special
1138 endowment care funds are invested;
1139 (iv) the value of any securities held in the endowment care fund; and
1140 (v) the actual financial condition of the funds.
1141 (10) (a) A trustee may not receive compensation for services and expenses, including
1142 audits, in excess of 5% of the income derived from an endowment care fund in any year.
1143 (b) If there are insufficient funds from the income derived from the endowment care

1144 trust fund to pay for the attestation of the endowment care funds, the endowment care cemetery
1145 shall pay amounts due from funds other than the endowment care trust fund or income derived
1146 from that fund.
1147 (11) The income from an endowment care fund shall be used for the care, maintenance,
1148 and embellishment of the cemetery as determined by the endowment care cemetery, and to pay
1149 for administering the fund.
1150 Section 26. Section 9-3-410 is amended to read:
1151 9-3-410. Relation to certain acts.
1152 (1) The authority is exempt from:
1153 (a) Title 51, Chapter 5, Funds Consolidation Act;
1154 (b) Title 63A, Chapter 1, [Utah] Department of Administrative Services [Code];
1155 (c) Title 63G, Chapter 6, Utah Procurement Code;
1156 (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
1157 (e) Title 67, Chapter 19, Utah State Personnel Management Act.
1158 (2) The authority shall be subject to audit by:
1159 (a) the state auditor pursuant to Title 67, Chapter 3, Auditor; and
1160 (b) the legislative auditor general pursuant to Section 36-12-15 .
1161 (3) The authority shall annually report to the Retirement and Independent Entities
1162 Committee created under Section 63E-1-201 concerning the authority's implementation of this
1163 part.
1164 Section 27. Section 9-4-202 is amended to read:
1165 9-4-202. Powers and duties of division.
1166 (1) The division shall:
1167 (a) assist local governments and citizens in the planning, development, and
1168 maintenance of necessary public infrastructure and services;
1169 (b) cooperate with, and provide technical assistance to, counties, cities, towns, regional
1170 planning commissions, area-wide clearinghouses, zoning commissions, parks or recreation
1171 boards, community development groups, community action agencies, and other agencies
1172 created for the purpose of aiding and encouraging an orderly, productive, and coordinated
1173 development of the state and its political subdivisions;
1174 (c) assist the governor in coordinating the activities of state agencies which have an

1175 impact on the solution of community development problems and the implementation of
1176 community plans;
1177 (d) serve as a clearinghouse for information, data, and other materials which may be
1178 helpful to local governments in discharging their responsibilities and provide information on
1179 available federal and state financial and technical assistance;
1180 (e) carry out continuing studies and analyses of the problems faced by communities
1181 within the state and develop such recommendations for administrative or legislative action as
1182 appear necessary;
1183 (f) assist in funding affordable housing and addressing problems of homelessness;
1184 (g) support economic development activities through grants, loans, and direct programs
1185 financial assistance;
1186 (h) certify project funding at the local level in conformance with federal, state, and
1187 other requirements;
1188 (i) utilize the capabilities and facilities of public and private universities and colleges
1189 within the state in carrying out its functions;
1190 (j) assist and support local governments, community action agencies, and citizens in
1191 the planning, development, and maintenance of home weatherization, energy efficiency, and
1192 antipoverty activities; and
1193 (k) assist and support volunteer efforts in the state.
1194 (2) The division may:
1195 (a) by following the procedures and requirements of Title 63J, Chapter 5, Federal
1196 Funds Procedures Act, seek federal grants, loans, or participation in federal programs;
1197 (b) if any federal program requires the expenditure of state funds as a condition to
1198 participation by the state in any fund, property, or service, with the governor's approval, expend
1199 whatever funds are necessary out of the money provided by the Legislature for the use of the
1200 department;
1201 (c) in accordance with Part 13, Domestic Violence Shelters, assist in developing,
1202 constructing, and improving shelters for victims of domestic violence, as described in Section
1203 77-36-1 , through loans and grants to nonprofit and governmental entities; and
1204 (d) assist, when requested by a county or municipality, in the development of
1205 accessible housing.

1206 (3) (a) The division is recognized as an issuing authority as defined in Subsection
1207 9-4-502 (7), entitled to issue bonds from the Small Issue Bond Account created in Subsection
1208 9-4-506 (1)(c) as a part of the state's private activity bond volume cap authorized by the Internal
1209 Revenue Code of 1986 and computed under Section 146 of the code.
1210 (b) To promote and encourage the issuance of bonds from the Small Issue Bond
1211 Account for manufacturing projects, the division may:
1212 (i) develop campaigns and materials that inform qualified small manufacturing
1213 businesses about the existence of the program and the application process;
1214 (ii) assist small businesses in applying for and qualifying for these bonds; or
1215 (iii) develop strategies to lower the cost to small businesses of applying for and
1216 qualifying for these bonds, including making arrangements with financial advisors,
1217 underwriters, bond counsel, and other professionals involved in the issuance process to provide
1218 their services at a reduced rate when the division can provide them with a high volume of
1219 applicants or issues.
1220 Section 28. Section 9-6-305 is amended to read:
1221 9-6-305. Art collection committee.
1222 (1) The division shall appoint a committee of artists or judges of art to take charge of
1223 all works of art acquired under this chapter. This collection shall be known as the Utah State
1224 Alice Art Collection.
1225 (2) (a) Except as required by Subsection (2)(b), as terms of current board members
1226 expire, the division shall appoint each new member or reappointed member to a four-year term.
1227 (b) Notwithstanding the requirements of Subsection (2)(a), the division shall, at the
1228 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
1229 board members are staggered so that approximately half of the board is appointed every two
1230 years.
1231 (3) When a vacancy occurs in the membership for any reason, the replacement shall be
1232 appointed for the unexpired term.
1233 (4) (a) Members shall receive no compensation or benefits for their services, but may
1234 receive per diem and expenses incurred in the performance of the member's official duties at
1235 the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
1236 (b) Members may decline to receive per diem and expenses for their service.

1237 Section 29. Section 9-6-505 is amended to read:
1238 9-6-505. Eligibility requirements of qualifying arts organizations -- Allocation
1239 limitations -- Matching requirements.
1240 (1) Any qualifying organization may apply to receive moneys from the state fund to be
1241 deposited in an endowment fund it has created under Subsection 9-6-503 (1):
1242 (a) if it has received a grant from the board during one of the three years immediately
1243 before making application for state fund moneys under this Subsection (1); or
1244 (b) upon approval by the board if it has not received a grant from the board within the
1245 past three years.
1246 (2) (a) The maximum amount that may be allocated to each qualifying organization
1247 from the state fund shall be determined by the board by calculating the average cash income of
1248 the qualifying organization during the past three fiscal years as contained in the qualifying
1249 organization's final reports on file with the board. The board shall notify each qualifying
1250 organization of the maximum amount of moneys from the state fund for which it qualifies.
1251 (b) The minimum amount that may be allocated to each qualifying organization from
1252 the state fund is $2,500.
1253 (c) If the maximum amount for which the organization qualifies is less than $2,500, the
1254 organization may still apply for $2,500.
1255 (3) After the board determines that a qualifying organization is eligible to receive
1256 moneys from the state fund and before any money is allocated to the qualifying organization
1257 from the state fund, the qualifying organization shall match the amount qualified for by moneys
1258 raised and designated exclusively for that purpose. State moneys, in-kind contributions, and
1259 preexisting endowment gifts may not be used to match moneys from the state fund.
1260 (4) Endowment match moneys shall be based on a sliding scale as follows:
1261 (a) any amount requested not exceeding $100,000 shall be matched one-to-one;
1262 (b) any additional amount requested that makes the aggregate amount requested exceed
1263 $100,000 but not exceed $500,000 shall be matched two-to-one; and
1264 (c) any additional amount requested that makes the aggregate amount requested exceed
1265 $500,000 shall be matched three-to-one.
1266 (5) (a) Qualifying organizations shall raise the matching amount within three years
1267 after applying for moneys from the state fund by a date determined by the board.

1268 (b) Moneys from the state fund shall be released to the qualifying organization only
1269 upon verification by the board that the matching money has been received on or before the date
1270 determined under Subsection (5)(a). Verification of matching funds shall be made by a certified
1271 public accountant.
1272 (c) Moneys from the state fund shall be released to qualifying organizations with
1273 professional endowment management in increments not less than $20,000 as audited
1274 confirmation of matching funds is received by the board.
1275 (d) Moneys from the state fund shall be granted to each qualifying organization on the
1276 basis of the matching funds it has raised by the date determined under Subsection (5)(a).
1277 Section 30. Section 9-7-204 is amended to read:
1278 9-7-204. State Library Board -- Members -- Meetings -- Expenses.
1279 (1) There is created within the department the State Library Board.
1280 (2) (a) The board shall consist of nine members appointed by the governor.
1281 (b) One member shall be appointed on recommendation from each of the following
1282 agencies:
1283 (i) the State Office of Education;
1284 (ii) the Board of Control of the State Law Library;
1285 (iii) the Office of Legislative Research and General Counsel; and
1286 (iv) the Utah System of Higher Education.
1287 (c) Of the five remaining members at least two shall be appointed from rural areas.
1288 (3) (a) Except as required by Subsection (3)(b), as terms of current board members
1289 expire, the governor shall appoint each new member or reappointed member to a four-year
1290 term.
1291 (b) [Notwithstanding the requirements of Subsection (a), the] The governor shall, at the
1292 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
1293 board members are staggered so that approximately half of the board is appointed every two
1294 years.
1295 (4) The members may not serve more than two full consecutive terms.
1296 (5) When a vacancy occurs in the membership for any reason, the replacement shall be
1297 appointed for the unexpired term in the same manner as originally appointed.
1298 (6) Five members of the board constitute a quorum for conducting board business.

1299 (7) The governor shall select one of the board members as chair who shall serve for a
1300 period of two years.
1301 (8) The director of the State Library Division shall be executive officer of the board.
1302 (9) (a) (i) Members who are not government employees shall receive no compensation
1303 or benefits for their services, but may receive per diem and expenses incurred in the
1304 performance of the member's official duties at the rates established by the Division of Finance
1305 under Sections 63A-3-106 and 63A-3-107 .
1306 (ii) Members may decline to receive per diem and expenses for their service.
1307 (b) (i) State government officer and employee members who do not receive salary, per
1308 diem, or expenses from their agency for their service may receive per diem and expenses
1309 incurred in the performance of their official duties from the board at the rates established by the
1310 Division of Finance under Sections 63A-3-106 and 63A-3-107 .
1311 (ii) State government officer and employee members may decline to receive per diem
1312 and expenses for their service.
1313 (c) (i) Higher education members who do not receive salary, per diem, or expenses
1314 from the entity that they represent for their service may receive per diem and expenses incurred
1315 in the performance of their official duties from the committee at the rates established by the
1316 Division of Finance under Sections 63A-3-106 and 63A-3-107 .
1317 (ii) Higher education members may decline to receive per diem and expenses for their
1318 service.
1319 Section 31. Section 9-8-705 is amended to read:
1320 9-8-705. Eligibility requirements of qualifying history organizations -- Allocation
1321 limitations -- Matching requirements.
1322 (1) Any qualifying organization may apply to receive monies from the state fund to be
1323 deposited in an endowment fund it has created under Section 9-8-703 :
1324 (a) if it has received a grant from the division during one of the three years immediately
1325 before making application for state fund monies under this Subsection (1); or
1326 (b) if it has not received a grant from the division within the past three years, it may
1327 receive a grant upon approval by the division according to policy of the board.
1328 (2) (a) The maximum amount that may be allocated to each qualifying organization
1329 from the state fund shall be determined by the division in a format to be developed in

1330 consultation with the board.
1331 (b) The minimum amount that may be allocated to each qualifying organization from
1332 the state fund is $2,500.
1333 (3) After the division determines that a qualifying organization is eligible to receive
1334 monies from the state fund and before any money is allocated to the qualifying organization
1335 from the state fund, the qualifying organization shall match the amount qualified for by monies
1336 raised and designated exclusively for that purpose. State monies and in-kind contributions may
1337 not be used to match monies from the state fund.
1338 (4) Endowment match monies shall be based on a sliding scale as follows:
1339 (a) amounts requested up to $20,000 shall be matched one-to-one;
1340 (b) any additional amount requested that makes the aggregate amount requested exceed
1341 $20,000 but not exceed $50,000 shall be matched two-to-one; and
1342 (c) any additional amount requested that makes the aggregate amount requested exceed
1343 $50,000 shall be matched three-to-one.
1344 (5) (a) Qualifying organizations shall raise the matching amount by a date determined
1345 by the board.
1346 (b) Monies from the state fund shall be released to the qualifying organization only
1347 upon verification by the division that the matching money has been received on or before the
1348 date determined under Subsection (5)(a). Verification of matching funds shall be made by a
1349 certified public accountant.
1350 (c) Monies from the state fund shall be released to qualifying organizations with
1351 professional endowment management in increments not less than $2,500 as audited
1352 confirmation of matching funds is received by the board.
1353 (d) Monies from the state fund shall be granted to each qualifying organization on the
1354 basis of the matching funds it has raised by the date determined under Subsection (5)(a).
1355 Section 32. Section 11-32-3.5 is amended to read:
1356 11-32-3.5. Entry into an established interlocal finance authority -- Withdrawal
1357 from an interlocal finance authority -- Effect of outstanding debt -- Effect on
1358 organization.
1359 (1) The governing body of any public body, which is not at that time a member of a
1360 financing authority established in the county in which the public body is located, may, by

1361 resolution, elect to join the authority.
1362 (2) The resolution shall state the name of the public body and that the public body
1363 thereby petitions for membership in the authority. A certified copy of the resolution shall be
1364 delivered to the authority.
1365 (3) The public body shall become a participant member of the authority, upon receipt
1366 by the authority of the resolution, but only with respect to any financing initiated after the
1367 public body has become a member of the authority.
1368 (4) A participant member may elect to withdraw from an authority by resolution
1369 adopted by the governing body of the participant member following:
1370 (a) the payment of all outstanding bonds for which a participant member's delinquent
1371 tax receivables have been assigned;
1372 (b) the distribution of remaining amounts as provided in Section 11-32-15 ; and
1373 (c) satisfactory completion of any independent accounting audits requested by the
1374 authority or the county.
1375 (5) The resolution of the governing body of the public body which is withdrawing its
1376 membership shall state the name of the public body it represents and that the public body
1377 thereby petitions for withdrawal from the authority. A certified copy of the resolution shall be
1378 delivered to the authority. The membership of the public body in the authority shall terminate
1379 upon receipt of the resolution by the authority.
1380 (6) A public body which has withdrawn from membership in an authority may elect to
1381 join such authority to participate in future financings by the authority.
1382 (7) (a) By resolution of its governing body, a participant member may elect not to
1383 participate in future financings of the authority. Such election shall be effective upon delivery
1384 of a certified copy of the resolution to the authority.
1385 (b) In addition to the method outlined in Subsection (7)(a), a participant member may
1386 be considered to have elected not to participate in future financings in any reasonable manner
1387 selected by the authority.
1388 (8) For purposes of determining the presence of a quorum of the board of trustees or
1389 for other purposes, the board of trustees of an authority may treat participant members which
1390 have elected or are considered to have elected not to participate in a financing as not being
1391 participant members.

1392 (9) The composition organization of the authority shall change upon the entrance,
1393 election to participate, election not to participate, or withdrawal of a participant member.
1394 Section 33. Section 11-32-15 is amended to read:
1395 11-32-15. Special fund -- Apportionment of excess amounts.
1396 (1) The provisions of Title 59, Revenue and Taxation, otherwise notwithstanding,
1397 delinquent taxes paid to the county on behalf of the participant members shall be paid into the
1398 special fund created with respect to the bonds issued by any authority.
1399 (2) Following the payment of all bonds issued with respect to any delinquent tax
1400 receivables and all other amounts due and owing under any assignment agreement, amounts
1401 remaining on deposit with the authority or in the special fund created with respect to the
1402 issuance of the bonds shall be apportioned and distributed as follows:
1403 (a) Any amounts which represent the amount by which the delinquent taxes recovered
1404 exceed the amount originally paid by the authority at the time of transfer of the delinquent tax
1405 receivables to the authority shall be distributed to the respective participant members, including
1406 the county, in the proportion of their respective taxes.
1407 (b) Any amounts remaining following the distribution directed in Subsection (2)(a)
1408 shall be paid to the county.
1409 Section 34. Section 13-11-21 is amended to read:
1410 13-11-21. Settlement of class action -- Complaint in class action delivered to
1411 enforcing authority.
1412 (1) (a) A defendant in a class action may file a written offer of settlement. If it is not
1413 accepted within a reasonable time by a plaintiff class representative, the defendant may file an
1414 affidavit reciting the rejection. The court may determine that the offer has enough merit to
1415 present to the members of the class. If it so determines, it shall order a hearing to determine
1416 whether the offer should be approved. It shall give the best notice of the hearing that is
1417 practicable under the circumstances, including notice to each member who can be identified
1418 through reasonable effort. The notice shall specify the terms of the offer and a reasonable
1419 period within which members of the class who request it are entitled to be included in the class.
1420 The statute of limitations for those who are excluded pursuant to this Subsection (1) is tolled
1421 for the period the class action has been pending, plus an additional year.
1422 (b) If a member who has previously lost an opportunity to be excluded from the class is

1423 excluded at his request in response to notice of the offer of settlement during the period
1424 specified under Subsection (1)(a), he may not thereafter participate in a class action for
1425 damages respecting the same consumer transaction, unless the court later disapproves the offer
1426 of settlement or approves a settlement materially different from that proposed in the original
1427 offer of settlement. After the expiration of the period of limitations, a member of the class is
1428 not entitled to be excluded from it.
1429 (c) If the court later approves the offer of settlement, including changes, if any,
1430 required by the court in the interest of a just settlement of the action, it shall enter judgment,
1431 which is binding on all persons who are then members of the class. If the court disapproves the
1432 offer or approves a settlement materially different from that proposed in the original offer,
1433 notice shall be given to a person who was excluded from the action at his request in response to
1434 notice of the offer under Subsection (1)(a), and he is entitled to rejoin the class and, in the case
1435 of the approval, participate in the settlement.
1436 (2) On the commencement of a class action under Section 13-11-19 , the class
1437 representative shall mail by certified mail with return receipt requested or personally serve a
1438 copy of the complaint on the enforcing authority. Within 30 days after the receipt of a copy of
1439 the complaint, but not thereafter, the enforcing authority may intervene in the class action.
1440 Section 35. Section 13-28-2 is amended to read:
1441 13-28-2. Definitions.
1442 For the purpose of this part:
1443 (1) "Division" means the Division of Consumer Protection in the Department of
1444 Commerce.
1445 (2) "Prize" means a gift, award, or other item or service of value.
1446 (3) (a) "Prize notice" means a notice given to an individual in this state that satisfies all
1447 of the following:
1448 (i) is or contains a representation that the individual has been selected or may be
1449 eligible to receive a prize; and
1450 (ii) conditions receipt of a prize on a payment or donation from the individual or
1451 requires or invites the individual to make a contact to learn how to receive the prize or to obtain
1452 other information related to the notice.
1453 (b) "Prize notice" does not include:

1454 (i) a notice given at the request of the individual; or
1455 (ii) a notice informing the individual that he or she has been awarded a prize as a result
1456 of his actual prior entry in a game, drawing, sweepstakes, or other contest if the individual is
1457 awarded the prize stated in the notice.
1458 (4) "Solicitor" means a person who represents to an individual that the individual has
1459 been selected or may be eligible to receive a prize.
1460 (5) "Sponsor" means a person on whose behalf a solicitor gives a prize notice.
1461 (6) "Verifiable retail value" of a prize means:
1462 (a) a price at which the solicitor or sponsor can demonstrate that a substantial number
1463 of the prizes have been sold by a person other than the solicitor or sponsor in the trade area in
1464 which the prize notice is given; or
1465 (b) if the solicitor or sponsor is unable to satisfy Subsection (6)(a), no more than 1.5
1466 times the amount the solicitor or sponsor paid for the prize.
1467 Section 36. Section 16-10a-705 is amended to read:
1468 16-10a-705. Notice of meeting.
1469 (1) A corporation shall give notice to shareholders of the date, time, and place of each
1470 annual and special shareholders' meeting no fewer than 10 nor more than 60 days before the
1471 meeting date. Unless this chapter or the articles of incorporation require otherwise, the
1472 corporation is required to give notice only to shareholders entitled to vote at the meeting.
1473 (2) Unless this chapter or the articles of incorporation require otherwise, notice of an
1474 annual meeting need not include a description of the purpose or purposes for which the meeting
1475 is called.
1476 (3) Notice of a special meeting must include a description of the purpose or purposes
1477 for which the meeting is called.
1478 (4) (a) Subject to Subsection (4)(b), unless the bylaws require otherwise, if an annual
1479 or special shareholders' meeting is adjourned to a different date, time, or place, notice need not
1480 be given of the new date, time, or place if the new date, time, or place is announced at the
1481 meeting before adjournment.
1482 (b) If the adjournment is for more than 30 days, or if after the adjournment a new
1483 record date for the adjourned meeting is or must be fixed under Section 16-10a-707 , notice of
1484 the adjourned meeting must be given pursuant to the requirements of this section to

1485 shareholders of record who are entitled to vote at the meeting.
1486 (5) (a) Notwithstanding a requirement that notice be given under any provision of this
1487 chapter, the articles of incorporation, or bylaws of any corporation, notice shall not be required
1488 to be given to any shareholder to whom:
1489 (i) a notice of two consecutive annual meetings, and all notices of meetings or of the
1490 taking of action by written consent without a meeting during the period between the two
1491 consecutive annual meetings, have been mailed, addressed to the shareholder at the
1492 shareholder's address as shown on the records of the corporation, and have been returned
1493 undeliverable; or
1494 (ii) at least two payments, if sent by first class mail, of dividends or interest on
1495 securities during a 12 month period, have been mailed, addressed to the shareholder at the
1496 shareholder's address as shown on the records of the corporation, and have been returned
1497 undeliverable.
1498 (b) Any action taken or meeting held without notice to a shareholder to whom notice is
1499 excused under Subsection (5) has the same force and effect as if notice had been duly given. If
1500 a shareholder to whom notice is excused under Subsection (5) delivers to the corporation a
1501 written notice setting forth the shareholder's current address, or if another address for the
1502 shareholder is otherwise made known to the corporation, the requirement that notice be given
1503 to the shareholder is reinstated. In the event that the action taken by the corporation requires the
1504 filing of a certificate under any provision of this chapter, the certificate need not state that
1505 notice was not given to shareholders to whom notice was not required pursuant to this
1506 Subsection (5).
1507 Section 37. Section 16-10a-906 is amended to read:
1508 16-10a-906. Determination and authorization of indemnification of directors.
1509 (1) A corporation may not indemnify a director under Section 16-10a-902 unless
1510 authorized and a determination has been made in the specific case that indemnification of the
1511 director is permissible in the circumstances because the director has met the applicable
1512 standard of conduct set forth in Section 16-10a-902 . A corporation may not advance expenses
1513 to a director under Section 16-10a-904 unless authorized in the specific case after the written
1514 affirmation and undertaking required by Subsections 16-10a-904 (1)(a) and (b) are received and
1515 the determination required by Subsection 16-10a-904 (1)(c) has been made.

1516 (2) The determinations required by Subsection (1) shall be made:
1517 (a) by the board of directors by a majority vote of those present at a meeting at which a
1518 quorum is present, and only those directors not parties to the proceeding shall be counted in
1519 satisfying the quorum; or
1520 (b) if a quorum cannot be obtained as contemplated in Subsection (2)(a), by a majority
1521 vote of a committee of the board of directors designated by the board of directors, which
1522 committee shall consist of two or more directors not parties to the proceeding, except that
1523 directors who are parties to the proceeding may participate in the designation of directors for
1524 the committee;
1525 (c) by special legal counsel:
1526 (i) selected by the board of directors or its committee in the manner prescribed in
1527 Subsection (2)(a) or (b); or
1528 (ii) if a quorum of the board of directors cannot be obtained under Subsection (2)(a)
1529 and a committee cannot be designated under Subsection (2)(b), selected by a majority vote of
1530 the full board of directors, in which selection directors who are parties to the proceeding may
1531 participate; or
1532 (d) by the shareholders, by a majority of the votes entitled to be cast by holders of
1533 qualified shares present in person or by proxy at a meeting.
1534 (3) A majority of the votes entitled to be cast by the holders of all qualified shares
1535 constitutes a quorum for purposes of action that complies with this section. Shareholders'
1536 action that otherwise complies with this section is not affected by the presence of holders, or
1537 the voting, of shares that are not qualified shares.
1538 (4) Unless authorization is required by the bylaws, authorization of indemnification
1539 and advance of expenses shall be made in the same manner as the determination that
1540 indemnification or advance of expenses is permissible. However, if the determination that
1541 indemnification or advance of expenses is permissible is made by special legal counsel,
1542 authorization of indemnification and advance of expenses shall be made by a body entitled
1543 under Subsection (2)(c) to select legal counsel.
1544 Section 38. Section 16-10a-1325 is amended to read:
1545 16-10a-1325. Payment.
1546 (1) Except as provided in Section 16-10a-1327 , upon the later of the effective date of

1547 the corporate action creating dissenters' rights under Section 16-10a-1302 , and receipt by the
1548 corporation of each payment demand pursuant to Section 16-10a-1323 , the corporation shall
1549 pay the amount the corporation estimates to be the fair value of the dissenter's shares, plus
1550 interest to each dissenter who has complied with Section 16-10a-1323 , and who meets the
1551 requirements of Section 16-10a-1321 , and who has not yet received payment.